Document and Entity Information
Document and Entity Information - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Feb. 08, 2023 | |
Cover [Abstract] | ||
Entity Central Index Key | 0000933974 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-25434 | |
Entity Registrant Name | AZENTA, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 04-3040660 | |
Entity Address, Address Line One | 200 Summit Drive | |
Entity Address, Address Line Two | 6th Floor | |
Entity Address, City or Town | Burlington | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | 978 | |
Local Phone Number | 262-2626 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Entity Listing, Par Value Per Share | $ 0.01 | |
Trading Symbol | AZTA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 69,103,352 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Current assets | ||
Cash and cash equivalents | $ 608,304 | $ 658,274 |
Short-term marketable securities | 522,897 | 911,764 |
Accounts receivable, net of allowance for expected credit losses ($6,942 and $5,162, respectively) | 201,920 | 163,758 |
Inventories | 145,939 | 85,544 |
Derivative asset | 47,953 | 124,789 |
Short-term restricted cash | 7,070 | 382,596 |
Prepaid expenses and other current assets | 85,901 | 132,621 |
Total current assets | 1,619,984 | 2,459,346 |
Property, plant and equipment, net | 217,271 | 154,470 |
Long-term marketable securities | 304,675 | 352,020 |
Long-term deferred tax assets | 298 | 1,169 |
Goodwill | 761,153 | 513,623 |
Intangible assets, net | 327,106 | 178,401 |
Other assets | 61,929 | 57,093 |
Total assets | 3,292,416 | 3,716,122 |
Current liabilities | ||
Accounts payable | 55,259 | 38,654 |
Deferred revenue | 42,641 | 39,748 |
Accrued warranty and retrofit costs | 5,179 | 2,890 |
Accrued compensation and benefits | 34,524 | 41,898 |
Accrued income taxes payable | 24,529 | 28,419 |
Accrued expenses and other current liabilities | 86,894 | 78,937 |
Total current liabilities | 249,026 | 230,546 |
Long-term tax reserves | 1,696 | 1,684 |
Long-term deferred tax liabilities | 85,886 | 64,555 |
Long-term pension liabilities | 278 | 261 |
Long-term operating lease liabilities | 52,494 | 49,227 |
Contingent consideration liability | 18,462 | |
Other long-term liabilities | 13,185 | 6,463 |
Total liabilities | 421,027 | 352,736 |
Stockholders' equity | ||
Preferred stock, $0.01 par value - 1,000,000 shares authorized, no shares issued or outstanding | ||
Common stock, $0.01 par value - 125,000,000 shares authorized, 82,515,917 shares issued and 69,054,048 shares outstanding at December 31, 2022, 88,482,125 shares issued and 75,020,256 shares outstanding at September 30, 2022 | 824 | 885 |
Additional paid-in capital | 1,489,554 | 1,992,017 |
Accumulated other comprehensive loss | (62,074) | (83,916) |
Treasury stock, at cost - 13,461,869 shares at December 31, 2022 and September 30, 2022 | (200,956) | (200,956) |
Retained earnings | 1,644,041 | 1,655,356 |
Total stockholders' equity | 2,871,389 | 3,363,386 |
Total liabilities and stockholders' equity | $ 3,292,416 | $ 3,716,122 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Allowance for expected credit losses | $ 6,942 | $ 5,162 |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 125,000,000 | 125,000,000 |
Common stock, shares issued (in shares) | 82,515,917 | 88,482,125 |
Common stock, shares outstanding (in shares) | 69,054,048 | 75,020,256 |
Treasury Stock, Shares [Abstract] | ||
Treasury stock, shares (in shares) | 13,461,869 | 13,461,869 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue | ||
Total revenue | $ 178,366 | $ 139,652 |
Cost of revenue | ||
Total cost of revenue | 104,501 | 72,608 |
Gross profit | 73,865 | 67,044 |
Operating expenses | ||
Research and development | 7,536 | 6,485 |
Selling, general and administrative | 92,552 | 60,711 |
Restructuring charges | 1,461 | 173 |
Total operating expenses | 101,549 | 67,369 |
Operating loss | (27,685) | (325) |
Interest income | 10,708 | 35 |
Interest expense | (43) | (455) |
Other income (expense) | 1,145 | (1,077) |
Loss before income taxes | (15,875) | (1,822) |
Income tax provision benefit | (4,640) | (4,680) |
Income (loss) from continuing operations | (11,235) | 2,858 |
Income from discontinued operations, net of tax | 40,462 | |
Net income (loss) | $ (11,235) | $ 43,320 |
Basic net (loss) income per share: | ||
(Loss) / Income from continuing operations (in dollars per share) | $ (0.15) | $ 0.04 |
Income from discontinued operations, net of tax (in dollars per share) | 0.54 | |
Basic net income per share (in dollars per share) | (0.15) | 0.58 |
Diluted net income / (loss) per share: | ||
(Loss) / Income from continuing operations (in dollars per share) | (0.15) | 0.04 |
Income from discontinued operations, net of tax (in dollars per share) | 0.54 | |
Diluted net income (loss) per share (in dollars per share) | $ (0.15) | $ 0.58 |
Weighted average shares used in computing net income per share: | ||
Basic (in shares) | 72,543 | 74,630 |
Diluted (in shares) | 72,543 | 74,866 |
Products | ||
Revenue | ||
Total revenue | $ 85,798 | $ 45,869 |
Cost of revenue | ||
Total cost of revenue | 54,099 | 24,523 |
Services | ||
Revenue | ||
Total revenue | 92,568 | 93,783 |
Cost of revenue | ||
Total cost of revenue | $ 50,402 | $ 48,085 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ (11,235) | $ 43,320 |
Other comprehensive income / (loss), net of tax: | ||
Net investment hedge currency translation adjustment, net of tax effects of $19,708 and $0 for the three months ended December 31, 2022 and 2021 | (57,127) | |
Foreign currency translation adjustments | 77,414 | 4,801 |
Changes in unrealized losses on marketable securities, net of tax effects of $537 and $0 for the three months ended December 31, 2022 and 2021 | 1,555 | |
Actuarial gains (losses), net of tax effects of $0 and $0 for the three months ended December 31, 2022 and 2021 | (3) | |
Total other comprehensive (loss) income, net of tax | 21,842 | 4,798 |
Comprehensive income (loss) | $ 10,607 | $ 48,118 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosure [Abstract] | ||
Net investment hedge currency translation adjustment, tax | $ 19,708 | $ 0 |
Changes in unrealized losses on marketable securities, tax | 537 | 0 |
Actuarial gains (losses), tax | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income / (loss) | $ (11,235) | $ 43,320 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 20,181 | 12,883 |
Stock-based compensation | 2,105 | 7,891 |
Amortization of premium on marketable securities and deferred financing costs | (3,104) | 56 |
Deferred income taxes | (6,325) | (3,084) |
Purchase accounting impact on inventory | 2,869 | |
(Gain) loss on disposals of property, plant and equipment | 17 | (95) |
Changes in operating assets and liabilities, net of acquisitions and divestiture: | ||
Accounts receivable | (12,141) | 1,121 |
Inventories | (5,923) | (32,150) |
Accounts payable | 4,952 | (2,219) |
Deferred revenue | (59) | 4,056 |
Accrued warranty and retrofit costs | 504 | (103) |
Accrued compensation and tax withholdings | (14,015) | (5,371) |
Accrued restructuring costs | 1,139 | |
Other current assets and liabilities | (5,985) | (10,687) |
Net cash (used in) provided by operating activities | (27,020) | 15,618 |
Cash flows from investing activities | ||
Purchases of property, plant and equipment | (12,842) | (18,409) |
Purchases of marketable securities | (166,374) | (46) |
Sales and maturities of marketable securities | 607,205 | 30 |
Acquisitions, net of cash acquired | (371,633) | |
Net cash provided by (used in) investing activities | 56,356 | (18,425) |
Cash flows from financing activities | ||
Principal payments on debt | (186) | |
Common stock dividends paid | (7,494) | |
Payments of finance leases | (91) | |
Stock repurchase | (500,000) | |
Withholding tax payments on net share settlements on equity awards | (4,629) | |
Net cash used in financing activities | (504,720) | (7,680) |
Effects of exchange rate changes on cash and cash equivalents | 49,941 | (1,804) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (425,443) | (12,291) |
Cash, cash equivalents and restricted cash, beginning of period | 1,041,296 | 285,333 |
Cash, cash equivalents and restricted cash, end of period | 615,854 | 273,042 |
Supplemental disclosures: | ||
Cash paid for interest | 333 | |
Cash paid for income taxes, net | $ 7,291 | $ 10,911 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheets | ||
Cash and cash equivalents of continuing operations | $ 608,304 | $ 658,274 |
Short-term restricted cash | 7,070 | 382,596 |
Long-term restricted cash included in other assets | 479 | 426 |
Total cash, cash equivalents and restricted cash shown in the consolidated statements of cash flows | $ 615,854 | $ 1,041,296 |
Restricted Cash, Noncurrent, Statement of Financial Position | Other assets | Other assets |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings (Accumulated Deficit) | Treasury Stock | Total |
Beginning Balance at Sep. 30, 2021 | $ 878 | $ 1,976,112 | $ 19,351 | $ (470,051) | $ (200,956) | $ 1,325,334 |
Beginning Balance (in shares) at Sep. 30, 2021 | 87,808,922 | |||||
Increase (Decrease) in Stockholders' Equity | ||||||
Shares issued/ retired under restricted stock and purchase plans, net | $ 6 | (6) | ||||
Shares issued/ retired under restricted stock and purchase plans, net (in shares) | 566,488 | |||||
Stock-based compensation | 1,465 | 1,465 | ||||
Common stock dividends declared | (7,494) | (7,494) | ||||
Foreign currency translation adjustments | 4,801 | 4,801 | ||||
Actuarial loss, net of tax effects | (3) | (3) | ||||
Net income | 43,320 | 43,320 | ||||
Ending Balance at Dec. 31, 2021 | $ 884 | 1,977,571 | 24,149 | (434,225) | (200,956) | 1,367,423 |
Ending Balance (in shares) at Dec. 31, 2021 | 88,375,410 | |||||
Beginning Balance at Sep. 30, 2022 | $ 885 | 1,992,017 | (83,916) | 1,655,356 | (200,956) | $ 3,363,386 |
Beginning Balance (in shares) at Sep. 30, 2022 | 88,482,125 | 75,020,256 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||
Shares issued under restricted stock and purchase plans, net of shares withheld for employee taxes | (4,629) | $ (4,629) | ||||
Shares issued under restricted stock and purchase plans, net of shares withheld for employee taxes (in shares) | 123,926 | |||||
Accelerated share repurchase | (500,000) | (500,000) | ||||
Accelerated share repurchase (in shares) | (6,090,134) | |||||
Retirement of treasury shares | $ (61) | (504,568) | 504,629 | |||
Stock-based compensation | 2,105 | 2,105 | ||||
Net investment hedge currency translation adjustment | (57,127) | (57,127) | ||||
Foreign currency translation adjustments | 77,414 | 77,414 | ||||
Changes in unrealized gains (losses) on marketable securities, net of tax | 1,555 | 1,555 | ||||
Net income | (11,235) | (11,235) | ||||
Other | (81) | (81) | ||||
Ending Balance at Dec. 31, 2022 | $ 824 | $ 1,489,554 | $ (62,074) | $ 1,644,041 | $ (200,956) | $ 2,871,389 |
Ending Balance (in shares) at Dec. 31, 2022 | 82,515,917 | 69,054,048 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) $ in Thousands | 3 Months Ended |
Dec. 31, 2021 USD ($) $ / shares | |
Statement of Stockholders' Equity [Abstract] | |
Net investment hedge currency translation adjustment, tax | $ 0 |
Changes in unrealized losses on marketable securities, tax | $ 0 |
Dividend declared per share (in dollars per share) | $ / shares | $ 0.10 |
Actuarial gains (losses), tax | $ 0 |
Nature of the Operation
Nature of the Operation | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of the Operation | 1. Nature of Operation Azenta, Inc. (“Azenta”, or the “Company”) is a leading global provider of life sciences sample exploration and management solutions for the life sciences market. The Company supports its customers from research to clinical development with its sample management, automated storage, and genomic services expertise to help bring impactful therapies to market faster. Risks and Uncertainties The Company is subject to risks common to companies in the markets it serves, including, but not limited to, global economic and financial market conditions, fluctuations in customer demand, acceptance of new products, development by its of new technological innovations, risk of disruption in its supply chain, the implementation of tariffs and export controls, inflation, dependence on key personnel, protection of proprietary technology, and compliance with domestic and foreign regulatory authorities and agencies. The COVID-19 pandemic has had varying impacts on our financial results. In the first two years of the pandemic, any marginal adverse impact was more than offset by incremental orders related to virus research, COVID testing and vaccine development and commercialization in 2021 and through the first half of 2022. There has been limited COVID-related demand after the second fiscal quarter of 2022, and therefore, our revenue trends since then have been negatively impacted when compared to prior periods. Future impacts on the Company’s financial results are not fully determinable, as the continuing impact of the pandemic on the economy and markets which the Company serves is as yet unknown, but will be dependent, in part, on future variants of the virus and vaccine effectiveness against these variants and new or prolonged government responses to the pandemic. The Company’s financial results will also depend on variables including reduced demand from its customers, the degree that the supply chain may be constrained which could impact its delivery of products and services and the potential negative impact on its operations if there is an outbreak among the Company’s employees, as well as the amount of incremental demand caused by research and treatments in the areas of COVID-19 or related threats. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2022, and its results of operations for the three months ended December 31, 2022, and 2021. The consolidated balance sheet at September 30, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements have been condensed or omitted and, accordingly, the accompanying financial information should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission for the fiscal year ended September 30, 2022 (the “2022 Annual Report on Form 10-K”). Use of Estimates The preparation of unaudited consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Significant estimates are associated with recording accounts receivable, inventories, goodwill, intangible assets other than goodwill, contingent consideration liabilities related to business combinations, long-lived assets, derivative financial instruments, deferred income taxes, warranty obligations, revenue over time, and stock-based compensation expense. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, including results of operations and financial condition will depend on future developments that are highly uncertain. This includes results from new information that may emerge concerning COVID-19 and any actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of COVID-19 within its financials. Business Combinations The Company accounts for business acquisitions using the purchase method of accounting, in accordance with which assets acquired and liabilities assumed are recorded at their respective fair values at the acquisition date. The fair value of the consideration paid, including contingent consideration, is assigned to the assets acquired and liabilities assumed based on their respective fair values. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed. Significant judgment is used in determining fair values of assets acquired and liabilities assumed and contingent consideration, as well as intangibles and their estimated useful lives. Fair value and useful life determinations may be based on, among other factors, estimates of future expected cash flows and appropriate discount rates used in computing present values. These judgments may materially impact the estimates used in allocating acquisition date fair values to assets acquired and liabilities assumed, as well as our current and future operating results. Actual results may vary from these estimates that may result in adjustments to goodwill and acquisition date fair values of assets and liabilities during a measurement period or upon a final determination of asset and liability fair values, whichever occurs first. Adjustments to fair values of assets and liabilities made after the end of the measurement period are recorded within our operating results. Changes in the fair value of contingent consideration resulting from a change in the underlying inputs are recognized in results of operations until the arrangement is settled. Foreign Currency Translation Certain transactions of the Company and its subsidiaries are denominated in currencies other than their functional currency. Foreign currency exchange gains (losses) generated from the settlement and remeasurement of these transactions are recognized in earnings and presented within “Other income (expenses), net” in the Company’s Consolidated Statements of Operations. Net foreign currency transaction and remeasurement gains were $0.9 million for the three months ended December 31, 2022 and net foreign currency transaction and remeasurement losses were $1.9 million during the three months ended December 31, 2021. The determination of the functional currency of the Company’s subsidiaries is based on their financial and operational environment and is the local currency of the Company’s foreign subsidiaries. The subsidiaries’ assets and liabilities are translated into the reporting currency at period-end exchange rates, while revenue, expenses, gains and losses are translated at the average exchange rates during the period. Gains and losses from foreign currency translations are recorded in “Accumulated other comprehensive income (loss)” in the Company’s Consolidated Balance Sheets and presented as a component of comprehensive income or loss in the Company’s Consolidated Statements of Comprehensive Income (loss). Derivative Financial Instruments The Company has transactions and balances denominated in currencies other than the functional currency of the transacting entity. Most of these transactions carry foreign exchange risk in Germany, the United Kingdom and China. The Company enters into foreign exchange contracts to reduce its exposure to currency fluctuations. The arrangements typically mature in three months or less and they do not qualify for hedge accounting. Net gains and losses related to these contracts are recorded as a component of “Other income (expenses), net” in the accompanying unaudited Consolidated Statements of Operations and are as follows for the three months ended December 31, 2022 and 2021 (in thousands): Three Months Ended December 31, 2022 2021 Realized gains (losses) on derivatives not designated as hedging instruments $ (1,580) $ (70) The fair values of the forward contracts are recorded in the accompanying unaudited Consolidated Balance Sheets as “Prepaid expenses and other current assets” and “Accrued expenses and other current liabilities”. Foreign exchange contract assets and liabilities are measured and reported at fair value based on observable market inputs and classified within Level 2 of the fair value hierarchy described below due to a lack of an active market for these contracts. Hedging Activities On February 1, 2022, the Company entered into a cross-currency swap agreement to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreement, the Company notionally exchanged approximately $1.03 billion for approximately €915 million at a weighted average interest rate of approximately 1.196% . The designated notional amount is $960 million and the actual interest rate is 1.283% . The 1.283% rate was in the range of the market value for that day and is the true interest rate on the notional amount. The Company designated the cross-currency swap as a hedge of net investments against one of our Euro denominated subsidiaries which requires an exchange of the notional amounts at maturity. At the maturity of the cross currency-swap on February 1, 2023, the Company delivered a notional amount of €852 million and received a notional amount of $960 million at an exchange rate of 1.1261 , which includes a gain of $29.2 million. This cross-currency swap is marked to market at each reporting period, representing the fair values of the cross-currency swap and any changes in fair value are recognized as a component of “Accumulated other comprehensive items, net,” on the Consolidated Statements of Comprehensive Income (Loss). Interest accrued on the cross-currency swap is recorded within “Interest income” on the Consolidated Statements of Operations. For the three months ended December 31, 2022, the Company recorded a net loss of $57.1 million to “Accumulated other comprehensive income (loss)” and recorded “Interest income” of $3.1 million on this instrument for the three months ended December 31, 2022. Fair Value Measurement The Company measures certain financial assets and liabilities, including cash equivalents, available-for-sale securities, accounts receivable, accounts payable, contingent consideration liability and derivative instruments at fair value. The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurement (“ASC 820”) establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Available-for-sale securities and derivative instruments are measured at fair value based on quoted market prices or observable inputs other than quoted market prices for identical or similar assets or liabilities. Contingent consideration liabilities that are recorded at fair value are based on level 3 inputs. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. Accounts Receivable and Allowance for Expected Credit Losses and Sales Returns Trade accounts receivable do not bear interest and are recorded at the invoiced amount. The Company maintains an allowance for expected credit losses representing its best estimate of expected credit losses related to its existing accounts receivable and their net realizable value. The Company determines the allowance based on a number of factors, including an evaluation of customer credit worthiness, the age of the outstanding receivables, economic trends, historical experience and other information over the payment periods. The Company reviews and adjusts the allowance for expected credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance for expected credit losses when the Company determines that the balances are not recoverable. Provisions for expected credit losses are recorded in “Selling, general and administrative” expenses in the Consolidated Statements of Operations. The Company determines the allowance for sales returns based on its best estimate of expected customer returns. Provisions for sales returns are recorded in "Revenue" in the Consolidated Statements of Operations. The Company does not have any off-balance-sheet credit exposure related to its customers. Leases The Company has operating leases for real estate and non-real estate and finance leases for non-real estate. The classification of a lease as operating or finance and the determination of the right-of-use asset (“ROU asset”) and lease liability are determined at lease inception. The ROU asset represents the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. Fixed payments for non-lease components are combined with lease payments and accounted for as a single lease component which increases the amount of the ROU asset and liability. The ROU asset for operating leases is included within “Other assets” and the ROU asset for finance leases is included within “Property, plant, and equipment, net” in the accompanying unaudited Consolidated Balance Sheets. The short-term lease liabilities for both operating leases and finance leases are included within “Accrued expenses and other current liabilities” in the accompanying unaudited Consolidated Balance Sheets. The long-term lease liabilities for operating leases and finance leases are included within “Long-term operating lease liabilities”, and “Other long-term liabilities”, respectively, in the accompanying unaudited Consolidated Balance Sheets. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The ASUs provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The provisions of the ASUs are only available until December 31, 2022, when the reference rate replacement activity was expected to be completed. There were no significant accounting impacts on the Company’s consolidated financial statements and related disclosures as a result of the adoption of these ASU’s. Recently Adopted Accounting Pronouncements In November 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance . The amendment in this ASU requires disclosures to increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021. The Company will adopt the provisions of this ASU in fiscal 2023 . In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . ASU 2021-08 requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC 606”), Revenue from Contracts with Customers . Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted the guidance during the first quarter of fiscal year 2022 . The impact of the adoption of this ASU is immaterial to the Company’s consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, Codification Improvements . The amendments in this ASU represent changes to clarify certain ASCs, correct unintended application of guidance, or make minor improvements to certain ASCs that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. ASU 2020-10 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. The amendments in this ASU should be applied retrospectively. This ASU did not affect the Company's consolidated financial statements or disclosures. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2018, the FASB issued ASU 2018-14, Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The amendments require additional disclosure for the weighted-average interest crediting rates, a narrative description of the reasons for significant gains and losses, and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment removes disclosure requirements for accumulated other comprehensive income (loss) expected to be recognized over the next year, information about plan assets to be returned to the entity, and the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. The ASU is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The ASU does not amend the interim disclosure requirements of ASC 715-20. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . There is no significant accounting impact on the Company’s consolidated financial statements and related disclosures as a result of the adoption of this ASU. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 clarifying and amending existing guidance. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . There is no significant accounting impact on the Company’s consolidated financial statements and related disclosures as a result of the adoption of this ASU. Other For further information with regard to the Company’s significant accounting policies, please refer to Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the 2022 Annual Report on Form 10-K. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | 3. Discontinued Operations Disposition of Semiconductor Automation Business On September 20, 2021, the Company entered into a definitive agreement to sell its semiconductor automation business to THL and the Company determined that the semiconductor automation business met the criteria to be classified as a discontinued operation and, as a result, its historical financial results are reflected in the Company’s financial statements as a discontinued operation, and assets and liabilities were classified as assets and liabilities held for sale. On February 1, 2022, the Company completed the sale of the semiconductor automation business for $2.9 billion in cash. As part of the transaction, the Company recorded an $18.1 million liability related to retention bonuses and cash settled stock-based awards for former employees of the Company that were conveyed with the transaction. The Company paid million during the year ended September 30, 2022 and remitted the remaining payments to THL in November 2022, and THL directly paid the Company’s former employees. Following the completion of the sale, the Company no longer serves the semiconductor market. In connection with the closing of the sale, the Company and THL entered into a transition services agreement, to which both the Company and THL will provide each other with certain transition services related to finance and accounting, information technology, human resources, compliance, facilities, legal and research and development support, for time periods ranging from three . In addition, the Company entered into separate lease agreements for leases back to the Company for portions of the facilities that previously served as its corporate headquarters in Chelmsford, Massachusetts, and were sold to THL as part of the sale agreement. Each lease provides for a term of ’ notice to THL. The transition services agreement and lease agreements approximate fair value and there is no material impact to the Company’s results. The following table presents the financial results of discontinued operations with respect to the semiconductor automation business (in thousands). Three months ended December 31, 2021 Revenue Products $ 188,240 Services 15,430 Total revenue 203,670 Cost of revenue Products 107,597 Services 8,309 Total cost of revenue 115,906 Gross profit 87,764 Operating expenses Research and development 13,740 Selling, general and administrative 22,676 Restructuring charges - Total operating expenses 36,416 Operating income 51,348 Other income, net (46) Gain on divestiture - Income before income taxes 51,302 Income tax provision 10,840 Net income from discontinued operations $ 40,462 The following table presents the significant non-cash items and capital expenditures for the discontinued operations with respect to the semiconductor automation business that are included in the Consolidated Statements of Cash Flows (in thousands): Three months ended December 31, 2021 Depreciation and amortization $ - Capital expenditures $ 2,283 Stock-based compensation $ 4,923 |
Marketable Securities
Marketable Securities | 3 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Marketable Securities | 4. Marketable Securities The Company invests in marketable securities that are classified as available-for-sale and records them at fair value in the accompanying unaudited Consolidated Balance Sheets. Marketable securities reported as current assets represent investments that mature within one year from the balance sheet date. Long-term marketable securities represent investments with maturity dates greater than one year from the balance sheet date. Unrealized gains and losses are excluded from earnings and reported as a separate component of “Accumulated other comprehensive income (loss), net of tax” in the accompanying unaudited Consolidated Balance Sheets until the security is sold or matures. Gains or losses realized from sales of marketable securities are computed based on the specific identification method and recognized as a component of "Other income (expenses), net" in the accompanying unaudited Consolidated Statements of Operations. The Company had sales and maturities of marketable securities of $607.2 million in the three months ended December 31, 2022. There were insignificant sales of marketable securities in the three months ended December 31, 2021. The following is a summary of the amortized cost and the fair value, including accrued interest receivable as well as unrealized gains (losses) on the short-term and long-term marketable securities as of December 31, 2022 and September 30, 2022 (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Losses Gains Fair Value December 31, 2022: U.S. Treasury securities and obligations of U.S. government agencies $ 479,617 $ (5,434) $ 13 $ 474,196 Bank certificates of deposits 10,549 (174) 5 10,380 Corporate securities 341,317 (6,941) — 334,376 Municipal securities 8,633 (13) — 8,620 $ 840,116 $ (12,562) $ 18 $ 827,572 September 30, 2022: U.S. Treasury securities and obligations of U.S. government agencies $ 804,774 $ (6,163) $ 21 $ 798,632 Bank certificates of deposits 8,335 (158) $ 1 $ 8,178 Corporate securities 406,270 (8,113) — 398,157 Municipal securities 59,043 (226) — 58,817 $ 1,278,422 $ (14,660) $ 22 $ 1,263,784 The fair values of the marketable securities by contractual maturities at December 31, 2022 are presented below (in thousands): Amortized Cost Fair Value Due in one year or less $ 525,787 $ 522,897 Due after one year through five years 311,387 301,734 Due after five years through ten years — — Due after ten years 2,942 2,941 Total marketable securities $ 840,116 $ 827,572 Expected maturities could differ from contractual maturities because the security issuers may have the right to prepay obligations without prepayment penalties. The Company reviews the marketable securities for impairment at each reporting period to determine if any of the securities have experienced an other-than-temporary decline in fair value. The Company considers factors, such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer, the Company’s intent to sell, or whether it is more likely than not it will be required to sell the investment before recovery of its amortized cost basis. If the Company believes that an other-than-temporary decline in fair value has occurred, it writes down the investment to its fair value and recognizes the credit loss in earnings and the non-credit loss in accumulated other comprehensive income or loss. Unrealized losses from fixed-income securities are primarily attributable to changes in interest rates. Management does not believe any unrealized losses represent impairments based on our evaluation of the available evidence. |
Acquisitions
Acquisitions | 3 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Business Combinations The Company recorded the assets acquired and liabilities assumed related to the following acquisitions at their fair values as of the acquisition date, from a market participant’s perspective. While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value the assets acquired and liabilities assumed on the acquisition date, its estimates and assumptions are subject to refinement. Fair value estimates are based on a complex series of judgments about future events and uncertainties and rely heavily on estimates and assumptions. The judgments used to determine the estimated fair value assigned to each class of assets acquired and liabilities assumed, as well as asset lives, can materially impact the Company’s results of operations. The finalization of the assignment of fair values will be completed within one year after the respective acquisition date. Acquisition Completed in Fiscal Year 2023 B Medical Systems S.á r.l. On October 3, 2022, the Company acquired B Medical Systems S.á r.l. and its subsidiaries ("B Medical"), for a purchase price of approximately $432.2 million including contingent consideration, which the company estimated the fair value to be $17 million as of the measurement date. B Medical is a market leader in temperature-controlled storage and transportation solutions that enables the delivery of life-saving treatments to more than 150 countries worldwide. B Medical’s results of operations are reported in the Company’s Life Sciences Products reportable segment from the date of acquisition. The Company paid a total initial cash purchase price at closing of $424 million, as adjusted for cash acquired and other items pursuant to the Agreement. B Medical Systems Holdings S.A (the “Seller”) is eligible to earn up to approximately €50 million in contingent consideration based upon achievement of certain financial metrics by B Medical and its subsidiaries. Included in the purchase price, the Company repaid B Medical’s outstanding debt of $43.1 million prior to September 30, 2022 which was classified in prepaid assets as of September 30, 2022. In addition, as of September 30, 2022, the Company had recorded $381 million in short-term restricted cash, which was reserved to complete the acquisition on October 3, 2022. The contingent consideration payment is based on achievement of certain revenue targets over the one-year period from October 3, 2022 to September 30, 2023. 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, 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 this liability as assumptions change over time and any resulting adjustments in the fair value of this liability are recorded in “Operating expenses” in the Company’s Consolidated Statements of Operations. 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. As of December 31, 2022, the contingent consideration liability was The total purchase price was allocated to B Medical’s tangible and identifiable intangible assets and liabilities based on the estimated fair values as of October 3, 2022, as set forth below: Fair Value of Assets and Liabilities Accounts receivable 19,549 Inventory 49,700 Other assets 20,330 Property plant and equipment 55,170 Identifiable Intangible Assets: Completed technology 100,200 Trademarks 5,500 Customer relationships 36,700 Backlog 600 Other liabilities (31,699) Deferred income taxes, net (42,974) Goodwill 219,085 Total purchase price, net of cash acquired $ 432,160 In performing the preliminary purchase price allocation, the Company considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of B Medical’s business. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities. As part of the purchase price allocations, the Company determined the identifiable intangible assets were completed technology, trademarks, customer relationships and backlog. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using a rate. The cash flows were based on estimates used to price the transaction, and the discount rate applied was benchmarked with references to the implied rate of return from the transaction and the weighted average cost of capital. The weighted average life of completed technology is . The intangible assets acquired are amortized over their respective weighted average life using methods that approximate the pattern in which the economic benefits are expected to be realized. 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. Goodwill of not expected to be deductible for income tax purposes. The revenues and net loss from B Medical included in the Company's consolidated results for the reporting period since acquisition were $41.8 million and $4.7 million, respectively. The Company incurred $8.7 million in transaction costs related to the acquisition of which $4.7 million was incurred during the three months ended December 31, 2022. The following unaudited pro forma information reflects our consolidated results of operations as if the acquisition had taken place on October 1, 2021. The unaudited pro forma information is not necessarily indicative of the results of operations that we would have reported had the transaction actually occurred at the beginning of these periods nor is it necessarily indicative of future results. Three Months Ended, December 31, 2022 2021 (pro forma) (pro forma) Revenue $ 178,366 $ 178,621 Net loss (5,845) (33,526) The unaudited pro forma information is based on historical information and is adjusted for items including, but not limited to, the application of our accounting policies, GAAP adjustments, additional transaction costs, depreciation and amortization related to fair value adjustments to property, plant and equipment, inventory and intangible assets, and reversal of interest expense on acquisition related debt fully repaid. Non-recurring acquisition related items and significant GAAP adjustments included in the three months ended December 31, 2021 include $8.7 million of transaction costs, $5.4 million of reversal of debt interest expense and $1.6 million expensed as a reversal of R&D capitalization. The pro forma information does not include any anticipated costs savings or other effects of the integration of B Medical. Accordingly, the unaudited pro forma information does not necessarily reflect the actual results that would have occurred, nor is it necessarily indicative of future results of operations. Acquisition Completed in Fiscal Year 2022 Barkey Holding GmbH On July 1, 2022, the Company acquired Barkey Holding GmbH and its subsidiaries (“Barkey”), a leading provider of controlled-rate thawing devices for customers in the medical, biotech and pharmaceutical industries, head quartered in Leopoldshöhe, Germany. The Company has included the financial results of the acquired operations within the Life Sciences Products segment. The total cash purchase price of the acquisition was approximately $84.8 million, net of cash acquired. The acquisition brings innovative products and capabilities that extend the Company’s extensive cold chain of condition portfolio of products and services, while also expanding our customer reach in the fast-growing cell and gene therapy space. The allocation of the consideration included $3.0 million of customer relationships, $29.0 million of technology, $57.8 million of goodwill, $9.8 million of deferred tax liabilities, and several other assets and liabilities. The weighted useful life of all the intangible assets acquired is 15 years. The goodwill and intangibles are not The Company did not present a pro forma information summary for its consolidated results of operations for the acquisitions completed in fiscal year 2022 because such results were immaterial. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | 6. Goodwill and Intangible Assets Goodwill represents the excess of net book value over the estimated fair value of net tangible and identifiable intangible assets of a reporting unit. Goodwill is tested for impairment annually or more often if impairment indicators are present at the reporting unit level. The Company elected April 1 st In accordance with ASC 350, Intangibles-Goodwill and Other , the Company initially assesses qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying value. If the Company determines, based on this assessment, that it is more likely than not that the fair value of the reporting unit is less than its carrying value, it performs a quantitative goodwill impairment test by comparing the reporting unit’s fair value with its carrying value. An impairment loss is recognized for the amount by which the reporting unit’s carrying value exceeds its fair value, up to the total amount of goodwill allocated to the reporting unit. No impairment loss is recognized if the fair value of the reporting exceeds its carrying value. The changes in the Company’s goodwill by reportable segment for the three months ended December 31, 2022 are as follows (in thousands): Life Sciences Life Sciences Products Services Total Balance, at September 30, 2022 $ 154,612 $ 359,011 $ 513,623 Acquisitions 219,085 — 219,085 Currency translation adjustments 28,420 24 28,445 Balance, at December 31, 2022 $ 402,117 $ 359,035 $ 761,153 During the three months ended December 31, 2022, the Company recorded goodwill related to the B Medical acquisition of $219.1 million and an increase in goodwill of $28.4 million related to foreign currency translation adjustments. The components of the Company’s identifiable intangible assets as of December 31, 2022 and September 30, 2022 are as follows (in thousands): December 31, 2022 September 30, 2022 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Patents $ 1,225 $ 1,123 $ 102 $ 1,225 $ 1,106 $ 119 Completed technology 212,205 42,718 169,487 99,525 37,991 61,534 Trademarks and trade names 6,373 416 5,957 400 41 359 Non-competition agreements 681 471 210 681 439 242 Customer relationships 291,201 140,340 150,861 246,949 130,802 116,147 Other intangibles 854 365 489 202 202 — $ 512,539 $ 185,433 $ 327,106 $ 348,982 $ 170,581 $ 178,401 During the three months ended December 31, 2022, the Company recorded intangible assets related to B Medical acquisition of Amortization expense for intangible assets was $11.5 million and $8.0 million, respectively, for the three months ended December 31, 2022 and 2021. Estimated future amortization expense for the intangible assets for the remainder of fiscal year 2023, the subsequent four fiscal years and thereafter is as follows (in thousands): 2023 $ 35,512 2024 49,107 2025 47,749 2026 44,474 Thereafter 150,264 Total $ 327,106 |
Leases
Leases | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 7. Leases The Company has operating leases for real estate and non-real estate and finance leases for non-real estate in North America, Europe, and Asia. Non-real estate leases are primarily related to vehicles and office equipment. Lease expiration dates range between 2023 and 2042. The components of lease expense were as follows (in thousands): Three Months Ended December 31, 2022 2021 Operating lease costs $ 3,064 $ 2,171 Finance lease costs: Amortization of assets 91 75 Interest on lease liabilities 4 3 Total finance lease costs 95 78 Variable lease costs 2 518 Short-term lease costs 184 354 Sublease income (2) Total lease costs $ 3,343 $ 3,121 Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): December 31, 2022 September 30, 2022 Operating Leases: Operating lease right-of-use assets $ 57,005 $ 54,059 Accrued expenses and other current liabilities $ 7,334 $ 6,924 Long-term operating lease liabilities 52,494 49,227 Total operating lease liabilities $ 59,828 $ 56,151 Finance Leases: Property, plant and equipment, at cost $ 3,678 $ 2,476 Accumulated amortization (2,367) (2,276) Property, plant and equipment, net $ 1,311 $ 200 Accrued expenses and other current liabilities $ 423 $ 96 Other long-term liabilities 893 98 Total finance lease liabilities $ 1,316 $ 194 Weighted average remaining lease term (in years): Operating leases 10.79 10.82 Finance leases 3.71 2.19 Weighted average discount rate: Operating leases 4.11 % 3.93 % Finance leases 2.47 % 1.29 % Supplemental cash flow information related to leases was as follows (in thousands, unaudited): Three Months Ended December 31, 2022 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 2,569 $ 1,659 Operating cash flows from finance leases 4 3 Financing cash flows from finance leases 87 190 ROU assets obtained in exchange for lease liabilities: Operating leases $ (766) $ 186 Finance leases 790 Future lease payments for operating and finance leases as of December 31, 2022 were as follows for the remainder of fiscal year 2023, the subsequent five fiscal years and thereafter (in thousands): Finance Leases Operating Leases 2023 $ 301 $ 7,225 2024 399 8,795 2025 322 8,477 2026 224 6,921 2027 121 6,497 Thereafter 17 37,552 Total future lease payments 1,384 75,467 Less imputed interest (68) (15,639) Total lease liability balance $ 1,316 $ 59,828 As of December 31, 2022, the Company did not have significant leases that have not commenced or not recorded in the accompanying unaudited Consolidated Balance Sheets . |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. Income Taxes The The Company recorded an income tax benefit of $4.7 million during the three months ended December 31, 2021. The tax benefit was primarily driven by a $4.8 million discrete stock compensation windfall benefit for tax deductions that exceeded the associated book compensation expense. The in the course of The Company maintains liabilities for unrecognized tax benefits. These liabilities involve judgment and estimation, and they are monitored based on the best information available. The Company recognizes interest related to unrecognized tax benefits as unrecognized benefits The In on those benefits will be reduced by in the next twelve months |
Other Balance Sheet Information
Other Balance Sheet Information | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other Balance Sheet Information | 9. Other Balance Sheet Information The following is a summary of accounts receivable at December 31, 2022 and September 30, 2022 (in thousands): December 31, September 30, 2022 2022 Accounts receivable $ 208,862 $ 168,920 Less allowance for expected credit losses (6,942) (5,162) Accounts receivable, net $ 201,920 $ 163,758 The allowance for expected credit losses for the fiscal years ended December 31, 2022 and September 30, 2022 (in thousands): Balance at Reversals of Balance at Beginning of Bad Debt End of Description Period Provisions Expense Period Fiscal year 2023 allowance for expected credit losses $ 5,162 2,716 (936) $ 6,942 Fiscal year 2022 allowance for expected credit losses 4,318 3,020 (2,924) 4,414 The following is a summary of inventories at December 31, 2022 and September 30, 2022 (in thousands): December 31, September 30, 2022 2022 Inventories Raw materials and purchased parts $ 80,269 $ 39,685 Work-in-process 4,740 4,816 Finished goods 60,930 41,043 Total inventories $ 145,939 $ 85,544 Reserves related to write downs or adjustments of inventory to net realizable value were $4.3 million and $4.1 million, respectively, at December 31, 2022 and September 30, 2022. At December 31, 2022 and September 30, 2022, the Company had cumulative capitalized direct costs of $27.9 million and $26.9 million, respectively, associated with the development of software for its internal use. As of December 31, 2022, this balance included $9.7 million associated with software assets that are still in the development stage and not yet placed in service. During the three months ended December 31, 2022, the Company capitalized direct costs of $1.1 million, associated with the development of software for its internal use. The Company establishes reserves for estimated costs of product warranties based on historical information. Product warranty reserves are recorded at the time product revenue is recognized, and retrofit accruals are recorded at the time retrofit programs are established. The Company’s warranty obligation is affected by product failure rates, utilization levels, material usage, service delivery costs incurred in correcting a product failure and supplier warranties on parts delivered to the Company. The following is a summary of product warranty and retrofit activity on a gross basis for the three months ended December 31, 2022 and 2021 (in thousands): Activity -Three Months Ended December 31, 2022 Balance Balance September 30, December 31, 2022 Adjustments for Acquisitions Accruals Costs Incurred 2022 $ 2,890 2,303 $ 307 $ (321) $ 5,179 Activity -Three Months Ended December 31, 2021 Balance Balance September 30, December 31, 2021 Adjustments for Acquisitions Accruals Costs Incurred 2021 $ 2,330 — $ 673 $ (660) $ 2,342 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | 10. Stock-Based Compensation The Company may issue to eligible employees options to purchase shares of the Company’s stock, restricted stock and other equity incentives which vest upon the satisfaction of a performance condition and/or a service condition. In addition, the Company issues shares to participating employees pursuant to an employee stock purchase plan, and stock awards and deferred restricted stock units to its directors in accordance with its director compensation program. The stock-based compensation expense for restricted stock units for continuing operations was $1.9 million and $2.6 million, for the three months ended December 31, 2022 and 2021, respectively. The stock-based compensation expense for employee stock purchase plan for continuing operations was $0.3 million and $0.3 million, respectively, for the three months ended December 31, 2022 and 2021. The information included within the remaining note is on a total company basis, and includes amounts related to our discontinued operations. The following table reflects the total stock-based compensation expense recorded during the three months ended December 31, 2022 and 2021 (in thousands): Three Months Ended December 31, 2022 2021 Restricted stock units $ 1,759 $ 7,197 Employee stock purchase plan 346 694 Total stock-based compensation expense $ 2,105 $ 7,891 The fair value of restricted stock units is determined based on the number of shares granted and the closing price of the Company’s common stock quoted on the Nasdaq Stock Market on the date of grant. For awards that vest based on service conditions, the Company recognizes stock-based compensation expense on a straight-line basis over the requisite service period. For awards that vest subject to performance conditions, the Company recognizes stock-based compensation expense ratably over the performance period if it is probable that performance condition will be met and adjusted for the probability percentage of achieving the performance goals. The Company makes estimates of stock award forfeitures and the number of awards expected to vest. The Company considers many factors in developing forfeiture estimates, including award types, employee classes and historical experience. Each quarter, the Company assesses the probability of achieving the performance goals. Current estimates may differ from actual results and future changes in estimates. The Company grants restricted stock units that vest over a required service period and/or achievement of certain operating performance goals. Restricted stock units granted with performance goals may also have a required service period following the achievement of all or a portion of the performance goals. The following table reflects restricted stock units and stock awards, granted during the three months ended December 31, 2022 and 2021: Time-Based Stock Performance- Total Units Units Grants Based Units Three months ended December 31, 2022 485,880 225,139 — 260,741 Three months ended December 31, 2021 149,348 59,776 24 89,548 Time-Based Restricted Stock Unit Grants Restricted stock units granted with a required service period typically have three-year vesting schedules in which one-third one-third one-third Stock-Based Awards – Board of Directors The stock-based awards granted to the members of the Company’s Board of Directors include stock awards, restricted stock awards, deferred stock and restricted stock units. Certain members of the Board of Directors have elected to defer receiving their annual stock awards and related quarterly dividends until they attain a certain age or cease to provide services as a member of the Company’s Board of Directors. Annual deferred restricted stock units granted during fiscal years 2023 and 2022 were vested upon issuance. Performance-Based Restricted Stock Unit Grants Performance-based restricted stock units are earned based on the achievement of performance criteria established by the Human Resources and Compensation Committee and approved by the Board of Directors. The criteria for performance-based awards are weighted and have threshold, target and maximum performance goals. Performance-based awards granted in fiscal year 2023, 2022 and 2021 allow participants to earn 100% of the restricted stock units if the Company’s performance meets or exceeds its target goal for each applicable financial metric, and up to a maximum of 200% if the Company’s performance for such metrics meets or exceeds the maximum or stretch goal. Performance below the minimum threshold for each financial metric results in award forfeiture. Performance goals will be measured over a three-year period for each year’s awards and at the end of the period to determine the number of units earned by recipients who continue to meet the service requirement. Around the third anniversary of each year’s awards’ grant date, the Company’s Board of Directors determines the number of units earned for participants who continue to meet the service requirements on the vest date. Restricted Stock Unit Activity The following table summarizes restricted stock unit activity for the three months ended December 31, 2022: Weighted Average Grant-Date Shares Fair Value Outstanding at September 30, 2022 538,238 $ 71.99 Granted 485,880 59.57 Vested (178,859) 70.63 Forfeited (40,056) 80.35 Outstanding at December 31, 2022 805,203 68.95 The weighted average grant date fair value of restricted stock units granted during the three months ended December 31, 2022 and 2021 was $59.57 and $114.42, respectively. The fair value of restricted stock units vested during the three months ended December 31, 2022 and 2021 was $7.0 million and $64.8 million, respectively. During the three months ended December 31, 2022 and 2021, the Company remitted $4.6 million and $24.9 million, respectively, of which $4.6 million and $0, respectively, was paid by the Company. During the three months ended December 31, 2021, the Company collected $24.9 million from employees to satisfy their tax obligations as a result of share issuances. As of December 31, 2022, the unrecognized compensation cost that are expected to vest is $37.6 million and will be recognized over an estimated weighted average service period of approximately 2.2 years. Employee Stock Purchase Plan The Company maintains an employee stock purchase plan that allows its employees to purchase shares of common stock at a price equal to 85% of the fair market value of the Company’s stock at the beginning or the end of the semi-annual offering period, whichever is lower. There were no shares purchased by employees under the employee stock purchase plan during the three months ended December 31, 2022 and 2021. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 11. Stockholders’ Equity On November 4, 2022, the Company’s Board of Directors terminated On November 4, 2022, the Company executed an Accelerated Share Repurchase Agreement (the “ASR Agreement”) with JPMorgan Chase Bank, National Association (the “Dealer”) to repurchase an aggregate of up to $500.0 million of the Company’s common stock . Under the terms of the ASR Agreement, the Company made a payment of of the total shares of common stock expected to be repurchased under the ASR Agreement. The final number of shares to be repurchased by the Company will be based on the average of the daily volume-weighted average price of the Company’s common stock during the term of the ASR Agreement, less a discount and subject to adjustments pursuant to the terms and conditions of the ASR Agreement. At settlement, the Dealer may be required to deliver additional shares of common stock to the Company, or under certain circumstances, the Company may be required to deliver shares of common stock or to make a cash payment, at its election, to the Dealer. The final settlement of the transactions under the ASR Agreement is scheduled to occur by the end of the Company’s third fiscal quarter ended June 30, 2023, subject to earlier termination under certain limited circumstances, as set forth in the ASR Agreement. The Company evaluated the nature of the forward contract aspect of the ASR Agreement under ASC 815, Derivatives and Hedging , and concluded equity classification was appropriate. The shares of common stock repurchased by the Company on November 28, 2022 were retired, accounted for as a reduction to stockholders’ equity in the Company’s Consolidated Balance Sheets and treated as a repurchase of common stock for purposes of calculating earnings per share. As of December 31, 2022, after giving effect to the ASR Agreement, approximately $1.0 billion of the amount authorized under the new repurchase program remained available for additional repurchases of the Company’s common stock. |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per Share | 12. Earnings per Share The calculations of basic and diluted net income (loss) per share and basic and diluted weighted average shares outstanding are as follows for the three months ended December 31, 2022 and 2021 (in thousands, except per share data): Three Months Ended December 31, 2022 2021 Income (loss) from continuing operations $ (11,235) $ 2,858 Income (loss) from discontinued operations, net of tax — 40,462 Net income $ (11,235) $ 43,320 Weighted average common shares outstanding used in computing basic income (loss) per share 72,543 74,630 Dilutive restricted stock units — 236 Weighted average common shares outstanding used in computing diluted income (loss) per share 72,543 74,866 Basic net income (loss) per share: Income / (loss) from continuing operations $ (0.15) $ 0.04 Income from discontinued operations, net of tax — 0.54 Basic net income (loss) per share $ (0.15) $ 0.58 Diluted net income (loss) per share: Income (loss) from continuing operations $ (0.15) $ 0.04 Income from discontinued operations, net of tax — 0.54 Diluted net income (loss) per share $ (0.15) $ 0.58 During the three months ended December 31, 2022, restricted stock units of 64,122 were excluded from the computation of diluted loss per share as their effect would be antidilutive to earnings per share for continuing operations based on the treasury stock method. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | 13. Revenue from Contracts with Customers Disaggregated Revenue The Company disaggregates revenue from contracts with customers in a manner that depicts how the nature, amount, timing, and uncertainty of revenue and cash flows are affected by economic factors. The following is revenue by significant business line for the three months ended December 31, 2022 and 2021(in thousands): Three months ended December 31, 2022 2021 Significant Business Line Life Sciences Products, excluding B Medical $ 47,839 $ 49,877 B Medical 41,822 - Sample Repository Solutions 27,616 25,871 Genomic Services 61,089 63,904 Total $ 178,366 $ 139,652 Contract Balances Accounts Receivable, Net. Contract Assets. Contract Liabilities. Remaining Performance Obligations. obligations as revenue; the Company will recognize revenue associated with these performance obligations as transfer of control occurs (in thousands): As of December 31, 2022 Less than 1 Year Greater than 1 Year Total Remaining Performance Obligations $ 53,018 $ 36,749 $ 89,767 Cost to Obtain and Fulfill a Contract The Company capitalizes sales commissions when incurred if they are (i) incremental costs of obtaining a contract, (ii) expected to be recovered and (iii) have an expected amortization period that is greater than one year. As part of the Company’s cumulative effect adjustment upon the initial adoption of ASC 606, incremental costs associated with obtaining a contract were capitalized and have been classified as deferred commissions within the Company’s Consolidated Balance Sheet. These amounts primarily relate to sales commissions and are being amortized over a 60-month period, which represents the average period of contract performance. The Company did not capitalize any sales commissions during the three months ended December 31, 2022 and 2021 as the amount of sales commissions that qualified for capitalization during the reporting period was insignificant. Sales commissions incurred during the reporting period have been expensed as incurred. These costs are recorded within “Selling, general and administrative” expenses on the Company’s Consolidated Statement of Operations. The Company has concluded that none of its costs incurred in fulfillment of customer contracts meet the capitalization criteria. The Company will account for shipping and handling activities as fulfillment activities and recognize the associated expense when control of the product has transferred to the customer. |
Segment and Geographic Informat
Segment and Geographic Information | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | 14. Segment and Geographic Information Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. The Company’s Chief Executive Officer is the Company’s chief operating decision maker. The Company operates in two reportable segments: the Life Sciences Products segment and the Life Sciences Services segment. These reportable segments also represent the Company’s operating segments . The Company previously operated in reportable segments: the Semiconductor Solutions Group segment, the Life Sciences Products segment, and the Life Sciences Services segment. The Company’s Life Sciences Products segment provides automated cold storage solutions for biological and chemical compound samples. The Company’s storage systems provide reliable automation and sample inventory management at temperatures down to -190°C and can store anywhere from one to millions of samples. The Company’s sample management solutions include consumable vials and tubes, polymerase chain reaction, or PCR, plates, instruments for supporting workflows, and informatics. This portfolio provides customers with the highest level of sample quality, security, availability, intelligence, and integrity throughout the lifecycle of samples providing customers with complete end-to-end “cold-chain of custody” capabilities. The Company also provides controlled rate thawing devices for customers in the medical, biotech and pharmaceutical industries. On October 3, 2022 , the Company acquired B Medical Systems S.a.r.l, a market leader in temperature-controlled storage and transportation solutions that enables the delivery of life-saving treatments to people in more than 150 countries worldwide. The Company’s Life Sciences Services business is a leading provider of solutions addressing the many needs of customers in the area of genomic analysis and the management and care of biological samples used in pharmaceutical, biotech, healthcare, clinical, and academic research and development markets. The Company’s processes millions of samples every year, each containing valuable information that must be preserved with the sample. The Company’s genomic services provide a broad capability to customers for sequencing and synthesis of genes. The Company’s sample management services include off-site storage services, transport services, laboratory services, and interactive informatics solutions. The Company also provides expert-level consultation services to our clients throughout their experimental design and implementation. The Company’s services also include short- and long-term sample storage and management of the “cold chain of custody” from collection, to storage, to retrieving the sample which ultimately may go back into the research workflow. The Company considers adjusted operating income, which excludes charges related to amortization of completed technology, the acquisition accounting impact on inventory contracts acquired, restructuring related charges and other special charges, such as impairment losses, as the primary performance metric when evaluating the business. The following is the summary of the financial information for the Company’s reportable segments for the three months ended December 31, 2022 and 2021 (in thousands): Three Months Ended December 31, 2022 2021 Revenue: Life Sciences Products $ 89,661 $ 49,877 Life Sciences Services 88,706 89,775 Total revenue $ 178,366 $ 139,652 Operating income / (loss): Life Sciences Products $ (3,798) $ 4,388 Life Sciences Services (4,612) 7,883 Reportable segment adjusted operating income (8,410) 12,271 Amortization of completed technology 4,168 1,773 Purchase accounting impact on inventory 2,869 — Amortization of other intangible assets 7,372 6,272 Restructuring charges 1,461 173 Other unallocated corporate expenses 3,405 4,378 Total operating loss (27,685) (325) Interest income 10,708 35 Interest expense (43) (455) Other income (expense) 1,145 (1,077) Loss before income taxes $ (15,875) $ (1,822) Assets: Life Sciences Products Life Sciences Services December 31, 2022 $ 886,409 $ 887,310 September 30, 2022 378,790 849,603 The following is a reconciliation of the Company’s reportable segments’ segment assets to the corresponding amounts presented in the accompanying unaudited Consolidated Balance Sheets as of December 31, 2022 and September 30, 2022 (in thousands): December 31, September 30, 2022 2022 Segment assets $ 1,773,719 $ 1,228,393 Cash and cash equivalents, restricted cash, and marketable securities 1,443,424 2,305,081 Deferred tax assets 298 1,169 Other assets 74,975 181,479 Total assets $ 3,292,416 $ 3,716,122 Revenue from external customers is attributed to geographic areas based on locations in which customer orders are placed. Net revenue by geographic area for the three months ended December 31, 2022 and 2021 (in thousands) are as follows: Three Months Ended December 31, 2022 2021 Geographic Location: North America $ 88,935 $ 90,083 Rest of Europe 39,422 19,700 Africa 17,210 548 China 13,408 13,041 Asia Pacific/ Other 13,978 7,968 United Kingdom 5,413 8,312 Total $ 178,366 $ 139,652 Revenue for the United States comprises |
Significant Customers
Significant Customers | 3 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Significant Customers | 15. Significant Customers The Company had one individual customer that accounted for 20% of the Company’s consolidated revenue for the three months ended December 31, 2022. This individual customer is a distributor shipping to end users in 17 countries. This customer also accounted for 12% of the Company’s accounts receivable balance as of December 31, 2022. The Company had no individual customer that accounted for 10% or more of the Company’s consolidated revenue for the three months ended December 31, 2021. There were no customers that accounted for more than 10% of the Company’s accounts receivable balance as of September 30, 2022. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 16. Commitments and Contingencies Tariff Matter In fiscal year 2021, as part of the Company’s continued integration of GENEWIZ, which was acquired in November 2018, the Company initiated a review during the first quarter of fiscal year 2021, with the assistance of a third party consultant, of the transaction value that the Company has used to calculate tariffs on inter-company imports of samples shipped from its GENEWIZ business. As a result of the third-party review and in light of a new interpretation surrounding the valuation method used to calculate the estimated transaction value, the Company revised its estimate of the tariffs owed as a result and recorded a liability of $6.1 million in the second quarter of fiscal 2021. The Company submitted a payment in the amount of $5.9 million to the customs authorities during 2022, related to November 2021 and prior periods. The customs authorities will review the Company’s calculation of tariffs for these periods and determine if any further tariffs are owed. The Company does not expect to incur any significant penalties associated with the tariffs. Purchase Commitments At December 31, 2022, the Company had non-cancellable commitments of $65.4 million, comprised of purchase orders for inventory of $38.7 million and information technology related commitments of $26.7 million. Contingencies The Company is subject to various legal proceedings, both asserted and unasserted, that arise in the ordinary course of business. The Company cannot predict the ultimate outcome of such legal proceedings or in certain instances provide reasonable ranges of potential losses. The Company may also have certain indemnification obligations pursuant to claims made under the definitive agreement it entered into with Edwards Vacuum LLC (a member of the Atlas Copco Group) in connection with the Company’s sale of its semiconductor cryogenics business in the fourth quarter of fiscal year 2018. However, as of the date of this report, the Company believes that none of these claims will have a material adverse effect on its consolidated financial position or results of operations. In the third quarter of fiscal year 2020, Edwards asserted claims for indemnification under the definitive agreement relating to alleged breaches of representations and warranties relating to customer warranty claims and inventory .In addition, in January 2023, Edwards filed a lawsuit against the Company in the Supreme Court of the State of New York in the County of New York seeking indemnification from the Company under such definitive agreement with respect to a third-party warranty claim, that was included as part of their initial claims, of approximately The Company cannot determine the probability of any losses or outcome of these claims including the amount of any indemnifiable losses, if any, resulting from these claims at this time, however, the Company believes that none of these claims will have a material adverse effect on its consolidated financial position or results of operations. If the resolution of these claims results in indemnifiable losses in excess of the applicable indemnification deductibles and indemnification escrow established under the definitive agreement, Edwards would be required to seek recovery under the representation and warranty insurance Edwards obtained in connection with the closing of the transaction. The Company believes that any indemnifiable losses in excess of the applicable deductibles and indemnification escrow established in the definitive agreement would be covered by such insurance. If Edwards is unable to obtain recovery under its insurance, however, it could seek recovery of such indemnifiable losses, if any, directly from the Company. In the event of unexpected subsequent developments and given the inherent unpredictability of these matters, there can be no assurance that the Company’s assessment of any claim will reflect the ultimate outcome, and an adverse outcome in certain matters could, from time to time, have a material adverse effect on the Company’s consolidated financial position or results of operations in particular quarterly or annual periods. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 17. Fair Value Measurement The fair value measurement guidance establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following levels of inputs may be used to measure fair value: Level 1 Inputs: Level 2 Inputs: Level 3 Inputs: The Company measures certain assets, including the cost and equity method investments, at fair value on a nonrecurring basis when they are deemed to be other-than-temporarily impaired. The fair values of these investments are determined based on valuation techniques using the best information available, and may include quoted market prices, market comparables, and discounted cash flow projections. An impairment charge is recorded when the cost of the investment exceeds its fair value and this condition is determined to be other-than-temporary. Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables summarize assets and liabilities measured and recorded at fair value on a recurring basis in the accompanying Consolidated Balance Sheets as of December 31, 2022 and September 30, 2022 (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 443,240 $ 443,240 $ — $ — Available-for-sale securities 827,572 284,015 543,557 — Foreign exchange contracts 146 — 146 — Net investment hedge 47,953 — 47,953 — Total assets $ 1,318,911 $ 727,255 $ 591,656 $ — Liabilities: Contingent consideration liability $ 18,462 $ — $ — $ 18,462 Foreign exchange contracts 276 — 276 — Total liabilities $ 18,738 $ — $ 276 $ 18,462 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 374,804 $ 374,055 $ 749 $ — Available-for-sale securities 1,263,782 651,800 611,982 — Foreign exchange contracts 634 — 634 — Net investment hedge 124,789 — 124,789 — Total assets $ 1,764,009 $ 1,025,855 $ 738,154 $ — Liabilities: Foreign exchange contracts 230 $ — 230 — Total liabilities $ 230 $ — $ 230 $ — Cash Equivalents Cash equivalents consist of money market funds and are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices in active markets. The Company considers all highly liquid interest-earning investments with a maturity of three months or less at the date of purchase to be cash equivalents. The fair values of these investments approximate their carrying values. Available-For-Sale Securities Available-for-sale securities primarily consist of municipal securities, bank certificate of deposits and U.S. government-backed securities, and as such are classified as Level 1. Investments classified as Level 2 consist of debt securities that are valued using matrix pricing and benchmarking because they are not actively traded. Matrix pricing is a mathematical technique used to value securities by relying on the securities’ relationship to other benchmark quoted prices. Foreign Exchange Contracts Foreign exchange contract assets and liabilities are measured and reported at fair value based on observable market inputs and classified within Level 2 of the fair value hierarchy due to a lack of an active market for these contracts. Net Investment Hedge Net investment hedge assets are measured and reported at fair value based on observable market inputs and classified within Level 2 of the fair value hierarchy due to a lack of an active market for these contracts. Acquisition-related Contingent Consideration Acquisition-related contingent consideration is measured and reported at fair value using the real options method based on the unobservable inputs that are significant to the fair value and classified with Level 3 of the fair value hierarchy. The amount is contingent based on the acquired business’ performance for a one-year period from October 3, 2022 through September 30, 2023. Please refer to Note 5, “Business Combinations” for further detail. Changes in the fair value of contingent consideration resulting from a change in the underlying inputs are recognized in results of operations until the arrangement is settled. There were no changes to the fair value of contingent consideration for the period ended December 31, 2022. Financial Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis During the three months ended December 31, 2022 and 2021, the Company did not record any material other-than-temporary impairments on financial assets required to be measured at fair value on a nonrecurring basis. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | 18. Subsequent Event On February 2, 2023 , the Company acquired Ziath Ltd and its subsidiaries (‘Ziath’). Based in Cambridge, United Kingdom, Ziath is a leading provider of 2D barcode readers for life sciences applications. Founded in 2005, Ziath’s innovative 2D barcode readers are a key component of the laboratory automation workflow serving pharmaceutical, biotech and academic customers worldwide. The acquisition was completed for a purchase price of |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of the Company and its majority-owned subsidiaries and have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company, the accompanying unaudited consolidated financial statements contain all adjustments, consisting of only normal recurring adjustments, necessary for a fair statement of its financial position as of December 31, 2022, and its results of operations for the three months ended December 31, 2022, and 2021. The consolidated balance sheet at September 30, 2022 was derived from audited annual financial statements but does not contain all of the footnote disclosures from the annual financial statements Certain information and footnote disclosures normally included in the Company’s annual consolidated financial statements have been condensed or omitted and, accordingly, the accompanying financial information should be read in conjunction with the audited consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K filed with the United States Securities and Exchange Commission for the fiscal year ended September 30, 2022 (the “2022 Annual Report on Form 10-K”). |
Use of Estimates | Use of Estimates The preparation of unaudited consolidated financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the unaudited consolidated financial statements, as well as the reported amounts of revenue and expenses during the reporting period. Significant estimates are associated with recording accounts receivable, inventories, goodwill, intangible assets other than goodwill, contingent consideration liabilities related to business combinations, long-lived assets, derivative financial instruments, deferred income taxes, warranty obligations, revenue over time, and stock-based compensation expense. The Company assesses the estimates on an ongoing basis and records changes in estimates in the period they occur and become known. Actual results could differ from these estimates. The full extent to which the COVID-19 pandemic will directly or indirectly impact the Company’s business, including results of operations and financial condition will depend on future developments that are highly uncertain. This includes results from new information that may emerge concerning COVID-19 and any actions taken to contain or treat COVID-19, as well as the economic impact on local, regional, national and international customers and markets. The Company has made estimates of the impact of COVID-19 within its financials. |
Business Combinations | Business Combinations The Company accounts for business acquisitions using the purchase method of accounting, in accordance with which assets acquired and liabilities assumed are recorded at their respective fair values at the acquisition date. The fair value of the consideration paid, including contingent consideration, is assigned to the assets acquired and liabilities assumed based on their respective fair values. Goodwill represents the excess of the purchase price over the estimated fair values of the assets acquired and liabilities assumed. Significant judgment is used in determining fair values of assets acquired and liabilities assumed and contingent consideration, as well as intangibles and their estimated useful lives. Fair value and useful life determinations may be based on, among other factors, estimates of future expected cash flows and appropriate discount rates used in computing present values. These judgments may materially impact the estimates used in allocating acquisition date fair values to assets acquired and liabilities assumed, as well as our current and future operating results. Actual results may vary from these estimates that may result in adjustments to goodwill and acquisition date fair values of assets and liabilities during a measurement period or upon a final determination of asset and liability fair values, whichever occurs first. Adjustments to fair values of assets and liabilities made after the end of the measurement period are recorded within our operating results. Changes in the fair value of contingent consideration resulting from a change in the underlying inputs are recognized in results of operations until the arrangement is settled. |
Foreign Currency Translation | Foreign Currency Translation Certain transactions of the Company and its subsidiaries are denominated in currencies other than their functional currency. Foreign currency exchange gains (losses) generated from the settlement and remeasurement of these transactions are recognized in earnings and presented within “Other income (expenses), net” in the Company’s Consolidated Statements of Operations. Net foreign currency transaction and remeasurement gains were $0.9 million for the three months ended December 31, 2022 and net foreign currency transaction and remeasurement losses were $1.9 million during the three months ended December 31, 2021. The determination of the functional currency of the Company’s subsidiaries is based on their financial and operational environment and is the local currency of the Company’s foreign subsidiaries. The subsidiaries’ assets and liabilities are translated into the reporting currency at period-end exchange rates, while revenue, expenses, gains and losses are translated at the average exchange rates during the period. Gains and losses from foreign currency translations are recorded in “Accumulated other comprehensive income (loss)” in the Company’s Consolidated Balance Sheets and presented as a component of comprehensive income or loss in the Company’s Consolidated Statements of Comprehensive Income (loss). |
Derivative Financial Instruments | Derivative Financial Instruments The Company has transactions and balances denominated in currencies other than the functional currency of the transacting entity. Most of these transactions carry foreign exchange risk in Germany, the United Kingdom and China. The Company enters into foreign exchange contracts to reduce its exposure to currency fluctuations. The arrangements typically mature in three months or less and they do not qualify for hedge accounting. Net gains and losses related to these contracts are recorded as a component of “Other income (expenses), net” in the accompanying unaudited Consolidated Statements of Operations and are as follows for the three months ended December 31, 2022 and 2021 (in thousands): Three Months Ended December 31, 2022 2021 Realized gains (losses) on derivatives not designated as hedging instruments $ (1,580) $ (70) The fair values of the forward contracts are recorded in the accompanying unaudited Consolidated Balance Sheets as “Prepaid expenses and other current assets” and “Accrued expenses and other current liabilities”. Foreign exchange contract assets and liabilities are measured and reported at fair value based on observable market inputs and classified within Level 2 of the fair value hierarchy described below due to a lack of an active market for these contracts. |
Hedging Activities | Hedging Activities On February 1, 2022, the Company entered into a cross-currency swap agreement to hedge the variability of exchange rate impacts between the United States dollar and the Euro. Under the terms of the cross-currency swap agreement, the Company notionally exchanged approximately $1.03 billion for approximately €915 million at a weighted average interest rate of approximately 1.196% . The designated notional amount is $960 million and the actual interest rate is 1.283% . The 1.283% rate was in the range of the market value for that day and is the true interest rate on the notional amount. The Company designated the cross-currency swap as a hedge of net investments against one of our Euro denominated subsidiaries which requires an exchange of the notional amounts at maturity. At the maturity of the cross currency-swap on February 1, 2023, the Company delivered a notional amount of €852 million and received a notional amount of $960 million at an exchange rate of 1.1261 , which includes a gain of $29.2 million. This cross-currency swap is marked to market at each reporting period, representing the fair values of the cross-currency swap and any changes in fair value are recognized as a component of “Accumulated other comprehensive items, net,” on the Consolidated Statements of Comprehensive Income (Loss). Interest accrued on the cross-currency swap is recorded within “Interest income” on the Consolidated Statements of Operations. For the three months ended December 31, 2022, the Company recorded a net loss of $57.1 million to “Accumulated other comprehensive income (loss)” and recorded “Interest income” of $3.1 million on this instrument for the three months ended December 31, 2022. |
Fair Value Measurement | Fair Value Measurement The Company measures certain financial assets and liabilities, including cash equivalents, available-for-sale securities, accounts receivable, accounts payable, contingent consideration liability and derivative instruments at fair value. The Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurement (“ASC 820”) establishes a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Available-for-sale securities and derivative instruments are measured at fair value based on quoted market prices or observable inputs other than quoted market prices for identical or similar assets or liabilities. Contingent consideration liabilities that are recorded at fair value are based on level 3 inputs. The carrying amounts of cash equivalents, accounts receivable and accounts payable approximate their fair value due to their short-term nature. |
Accounts Receivable and Allowance for Expected Credit Losses and Sales Returns | Accounts Receivable and Allowance for Expected Credit Losses and Sales Returns Trade accounts receivable do not bear interest and are recorded at the invoiced amount. The Company maintains an allowance for expected credit losses representing its best estimate of expected credit losses related to its existing accounts receivable and their net realizable value. The Company determines the allowance based on a number of factors, including an evaluation of customer credit worthiness, the age of the outstanding receivables, economic trends, historical experience and other information over the payment periods. The Company reviews and adjusts the allowance for expected credit losses on a quarterly basis. Accounts receivable balances are written off against the allowance for expected credit losses when the Company determines that the balances are not recoverable. Provisions for expected credit losses are recorded in “Selling, general and administrative” expenses in the Consolidated Statements of Operations. The Company determines the allowance for sales returns based on its best estimate of expected customer returns. Provisions for sales returns are recorded in "Revenue" in the Consolidated Statements of Operations. The Company does not have any off-balance-sheet credit exposure related to its customers. |
Leases | Leases The Company has operating leases for real estate and non-real estate and finance leases for non-real estate. The classification of a lease as operating or finance and the determination of the right-of-use asset (“ROU asset”) and lease liability are determined at lease inception. The ROU asset represents the Company’s right to use an underlying asset for the lease term and the lease liability represents the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at the commencement date of the lease based on the present value of lease payments over the lease term. As most of the Company’s leases do not provide an implicit rate, an incremental borrowing rate is used based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. Lease expense is recognized on a straight-line basis over the lease term. The Company’s lease agreements may contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. Fixed payments for non-lease components are combined with lease payments and accounted for as a single lease component which increases the amount of the ROU asset and liability. The ROU asset for operating leases is included within “Other assets” and the ROU asset for finance leases is included within “Property, plant, and equipment, net” in the accompanying unaudited Consolidated Balance Sheets. The short-term lease liabilities for both operating leases and finance leases are included within “Accrued expenses and other current liabilities” in the accompanying unaudited Consolidated Balance Sheets. The long-term lease liabilities for operating leases and finance leases are included within “Long-term operating lease liabilities”, and “Other long-term liabilities”, respectively, in the accompanying unaudited Consolidated Balance Sheets. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting . In January 2021, the FASB issued ASU 2021-01, Reference Rate Reform (Topic 848): Scope. The ASUs provide temporary optional expedients and exceptions to the GAAP guidance on contract modifications and hedge accounting to ease the financial reporting burdens related to the expected market transition from the London Interbank Offered Rate (LIBOR) and other interbank offered rates to alternative reference rates. The provisions of the ASUs are only available until December 31, 2022, when the reference rate replacement activity was expected to be completed. There were no significant accounting impacts on the Company’s consolidated financial statements and related disclosures as a result of the adoption of these ASU’s. Recently Adopted Accounting Pronouncements In November 2021, the FASB issued Accounting Standards Update (“ASU”) 2021-10, Government Assistance (Topic 832) – Disclosures by Business Entities about Government Assistance . The amendment in this ASU requires disclosures to increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions, (2) the accounting for those transactions, and (3) the effect of those transactions on an entity’s financial statements. This ASU is effective for annual periods beginning after December 15, 2021. The Company will adopt the provisions of this ASU in fiscal 2023 . In October 2021, the FASB issued ASU 2021-08, Business Combinations (Topic 805), Accounting for Contract Assets and Contract Liabilities from Contracts with Customers . ASU 2021-08 requires an entity to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Accounting Standards Codification (“ASC 606”), Revenue from Contracts with Customers . Under current GAAP, an acquirer generally recognizes such items at fair value on the acquisition date. The ASU is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The standard should be applied prospectively to business combinations occurring on or after the effective date of the amendments. The Company adopted the guidance during the first quarter of fiscal year 2022 . The impact of the adoption of this ASU is immaterial to the Company’s consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, Codification Improvements . The amendments in this ASU represent changes to clarify certain ASCs, correct unintended application of guidance, or make minor improvements to certain ASCs that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. ASU 2020-10 is effective for annual periods beginning after December 15, 2020 and interim periods within those annual periods, with early adoption permitted. The amendments in this ASU should be applied retrospectively. This ASU did not affect the Company's consolidated financial statements or disclosures. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . In June 2020, the FASB issued ASU No. 2020-06, Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) In August 2018, the FASB issued ASU 2018-14, Disclosure Framework — Changes to the Disclosure Requirements for Defined Benefit Plans , which amends ASC 715 to add, remove, and clarify disclosure requirements related to defined benefit pension and other postretirement plans. The amendments require additional disclosure for the weighted-average interest crediting rates, a narrative description of the reasons for significant gains and losses, and an explanation of any other significant changes in the benefit obligation or plan assets. The amendment removes disclosure requirements for accumulated other comprehensive income (loss) expected to be recognized over the next year, information about plan assets to be returned to the entity, and the effects of a one-percentage-point change on the assumed health care costs and the effect of this change in rates on service cost, interest cost, and the benefit obligation for postretirement health care benefits. The ASU is effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The ASU does not amend the interim disclosure requirements of ASC 715-20. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . There is no significant accounting impact on the Company’s consolidated financial statements and related disclosures as a result of the adoption of this ASU. In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 clarifying and amending existing guidance. This ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted. The Company adopted the provisions of this ASU in the first quarter of fiscal 2022 . There is no significant accounting impact on the Company’s consolidated financial statements and related disclosures as a result of the adoption of this ASU. |
Other | Other For further information with regard to the Company’s significant accounting policies, please refer to Note 2 “Summary of Significant Accounting Policies” to the Company’s consolidated financial statements included in the 2022 Annual Report on Form 10-K. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of realized gains (losses) on derivatives not designated as hedging instruments | Three Months Ended December 31, 2022 2021 Realized gains (losses) on derivatives not designated as hedging instruments $ (1,580) $ (70) |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of discontinued operations | Three months ended December 31, 2021 Revenue Products $ 188,240 Services 15,430 Total revenue 203,670 Cost of revenue Products 107,597 Services 8,309 Total cost of revenue 115,906 Gross profit 87,764 Operating expenses Research and development 13,740 Selling, general and administrative 22,676 Restructuring charges - Total operating expenses 36,416 Operating income 51,348 Other income, net (46) Gain on divestiture - Income before income taxes 51,302 Income tax provision 10,840 Net income from discontinued operations $ 40,462 Three months ended December 31, 2021 Depreciation and amortization $ - Capital expenditures $ 2,283 Stock-based compensation $ 4,923 |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value, Including Accrued Interest Receivable and Unrealized Holding Gains (Losses) on Short-term and Long-term Marketable Securities | The following is a summary of the amortized cost and the fair value, including accrued interest receivable as well as unrealized gains (losses) on the short-term and long-term marketable securities as of December 31, 2022 and September 30, 2022 (in thousands): Gross Gross Amortized Unrealized Unrealized Cost Losses Gains Fair Value December 31, 2022: U.S. Treasury securities and obligations of U.S. government agencies $ 479,617 $ (5,434) $ 13 $ 474,196 Bank certificates of deposits 10,549 (174) 5 10,380 Corporate securities 341,317 (6,941) — 334,376 Municipal securities 8,633 (13) — 8,620 $ 840,116 $ (12,562) $ 18 $ 827,572 September 30, 2022: U.S. Treasury securities and obligations of U.S. government agencies $ 804,774 $ (6,163) $ 21 $ 798,632 Bank certificates of deposits 8,335 (158) $ 1 $ 8,178 Corporate securities 406,270 (8,113) — 398,157 Municipal securities 59,043 (226) — 58,817 $ 1,278,422 $ (14,660) $ 22 $ 1,263,784 |
Fair Value of Marketable Securities by Contractual Maturity | The fair values of the marketable securities by contractual maturities at December 31, 2022 are presented below (in thousands): Amortized Cost Fair Value Due in one year or less $ 525,787 $ 522,897 Due after one year through five years 311,387 301,734 Due after five years through ten years — — Due after ten years 2,942 2,941 Total marketable securities $ 840,116 $ 827,572 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Amounts of Assets and Liabilities at Fair Value as of Acquisition Date | The total purchase price was allocated to B Medical’s tangible and identifiable intangible assets and liabilities based on the estimated fair values as of October 3, 2022, as set forth below: Fair Value of Assets and Liabilities Accounts receivable 19,549 Inventory 49,700 Other assets 20,330 Property plant and equipment 55,170 Identifiable Intangible Assets: Completed technology 100,200 Trademarks 5,500 Customer relationships 36,700 Backlog 600 Other liabilities (31,699) Deferred income taxes, net (42,974) Goodwill 219,085 Total purchase price, net of cash acquired $ 432,160 |
Pro Forma Information | Three Months Ended, December 31, 2022 2021 (pro forma) (pro forma) Revenue $ 178,366 $ 178,621 Net loss (5,845) (33,526) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of Goodwill by Business Segment | The changes in the Company’s goodwill by reportable segment for the three months ended December 31, 2022 are as follows (in thousands): Life Sciences Life Sciences Products Services Total Balance, at September 30, 2022 $ 154,612 $ 359,011 $ 513,623 Acquisitions 219,085 — 219,085 Currency translation adjustments 28,420 24 28,445 Balance, at December 31, 2022 $ 402,117 $ 359,035 $ 761,153 |
Schedule of intangible assets | The components of the Company’s identifiable intangible assets as of December 31, 2022 and September 30, 2022 are as follows (in thousands): December 31, 2022 September 30, 2022 Accumulated Net Book Accumulated Net Book Cost Amortization Value Cost Amortization Value Patents $ 1,225 $ 1,123 $ 102 $ 1,225 $ 1,106 $ 119 Completed technology 212,205 42,718 169,487 99,525 37,991 61,534 Trademarks and trade names 6,373 416 5,957 400 41 359 Non-competition agreements 681 471 210 681 439 242 Customer relationships 291,201 140,340 150,861 246,949 130,802 116,147 Other intangibles 854 365 489 202 202 — $ 512,539 $ 185,433 $ 327,106 $ 348,982 $ 170,581 $ 178,401 |
Schedule of Future Amortization Expense | 2023 $ 35,512 2024 49,107 2025 47,749 2026 44,474 Thereafter 150,264 Total $ 327,106 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of leases | The components of lease expense were as follows (in thousands): Three Months Ended December 31, 2022 2021 Operating lease costs $ 3,064 $ 2,171 Finance lease costs: Amortization of assets 91 75 Interest on lease liabilities 4 3 Total finance lease costs 95 78 Variable lease costs 2 518 Short-term lease costs 184 354 Sublease income (2) Total lease costs $ 3,343 $ 3,121 Supplemental balance sheet information related to leases is as follows (in thousands, except lease term and discount rate): December 31, 2022 September 30, 2022 Operating Leases: Operating lease right-of-use assets $ 57,005 $ 54,059 Accrued expenses and other current liabilities $ 7,334 $ 6,924 Long-term operating lease liabilities 52,494 49,227 Total operating lease liabilities $ 59,828 $ 56,151 Finance Leases: Property, plant and equipment, at cost $ 3,678 $ 2,476 Accumulated amortization (2,367) (2,276) Property, plant and equipment, net $ 1,311 $ 200 Accrued expenses and other current liabilities $ 423 $ 96 Other long-term liabilities 893 98 Total finance lease liabilities $ 1,316 $ 194 Weighted average remaining lease term (in years): Operating leases 10.79 10.82 Finance leases 3.71 2.19 Weighted average discount rate: Operating leases 4.11 % 3.93 % Finance leases 2.47 % 1.29 % Supplemental cash flow information related to leases was as follows (in thousands, unaudited): Three Months Ended December 31, 2022 2021 Cash paid for amounts included in measurement of liabilities: Operating cash flows from operating leases $ 2,569 $ 1,659 Operating cash flows from finance leases 4 3 Financing cash flows from finance leases 87 190 ROU assets obtained in exchange for lease liabilities: Operating leases $ (766) $ 186 Finance leases 790 |
Schedule of future lease payments of operating leases | Finance Leases Operating Leases 2023 $ 301 $ 7,225 2024 399 8,795 2025 322 8,477 2026 224 6,921 2027 121 6,497 Thereafter 17 37,552 Total future lease payments 1,384 75,467 Less imputed interest (68) (15,639) Total lease liability balance $ 1,316 $ 59,828 |
Schedule of future lease payments of finance leases | Finance Leases Operating Leases 2023 $ 301 $ 7,225 2024 399 8,795 2025 322 8,477 2026 224 6,921 2027 121 6,497 Thereafter 17 37,552 Total future lease payments 1,384 75,467 Less imputed interest (68) (15,639) Total lease liability balance $ 1,316 $ 59,828 |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Accounts Receivable | The following is a summary of accounts receivable at December 31, 2022 and September 30, 2022 (in thousands): December 31, September 30, 2022 2022 Accounts receivable $ 208,862 $ 168,920 Less allowance for expected credit losses (6,942) (5,162) Accounts receivable, net $ 201,920 $ 163,758 |
Allowance for Doubtful Accounts Activity | The allowance for expected credit losses for the fiscal years ended December 31, 2022 and September 30, 2022 (in thousands): Balance at Reversals of Balance at Beginning of Bad Debt End of Description Period Provisions Expense Period Fiscal year 2023 allowance for expected credit losses $ 5,162 2,716 (936) $ 6,942 Fiscal year 2022 allowance for expected credit losses 4,318 3,020 (2,924) 4,414 |
Summary of Inventories | The following is a summary of inventories at December 31, 2022 and September 30, 2022 (in thousands): December 31, September 30, 2022 2022 Inventories Raw materials and purchased parts $ 80,269 $ 39,685 Work-in-process 4,740 4,816 Finished goods 60,930 41,043 Total inventories $ 145,939 $ 85,544 |
Product Warranty and Retrofit Activity on Gross Basis | The following is a summary of product warranty and retrofit activity on a gross basis for the three months ended December 31, 2022 and 2021 (in thousands): Activity -Three Months Ended December 31, 2022 Balance Balance September 30, December 31, 2022 Adjustments for Acquisitions Accruals Costs Incurred 2022 $ 2,890 2,303 $ 307 $ (321) $ 5,179 Activity -Three Months Ended December 31, 2021 Balance Balance September 30, December 31, 2021 Adjustments for Acquisitions Accruals Costs Incurred 2021 $ 2,330 — $ 673 $ (660) $ 2,342 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of stock-based compensation expense | Three Months Ended December 31, 2022 2021 Restricted stock units $ 1,759 $ 7,197 Employee stock purchase plan 346 694 Total stock-based compensation expense $ 2,105 $ 7,891 |
Restricted Stock Unit Activity | Time-Based Stock Performance- Total Units Units Grants Based Units Three months ended December 31, 2022 485,880 225,139 — 260,741 Three months ended December 31, 2021 149,348 59,776 24 89,548 Weighted Average Grant-Date Shares Fair Value Outstanding at September 30, 2022 538,238 $ 71.99 Granted 485,880 59.57 Vested (178,859) 70.63 Forfeited (40,056) 80.35 Outstanding at December 31, 2022 805,203 68.95 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Reconciliation of Weighted Average Common Shares Outstanding for Purposes of Calculating Basic and Diluted Earnings Per Share | The calculations of basic and diluted net income (loss) per share and basic and diluted weighted average shares outstanding are as follows for the three months ended December 31, 2022 and 2021 (in thousands, except per share data): Three Months Ended December 31, 2022 2021 Income (loss) from continuing operations $ (11,235) $ 2,858 Income (loss) from discontinued operations, net of tax — 40,462 Net income $ (11,235) $ 43,320 Weighted average common shares outstanding used in computing basic income (loss) per share 72,543 74,630 Dilutive restricted stock units — 236 Weighted average common shares outstanding used in computing diluted income (loss) per share 72,543 74,866 Basic net income (loss) per share: Income / (loss) from continuing operations $ (0.15) $ 0.04 Income from discontinued operations, net of tax — 0.54 Basic net income (loss) per share $ (0.15) $ 0.58 Diluted net income (loss) per share: Income (loss) from continuing operations $ (0.15) $ 0.04 Income from discontinued operations, net of tax — 0.54 Diluted net income (loss) per share $ (0.15) $ 0.58 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue by Reporting Unit | Three months ended December 31, 2022 2021 Significant Business Line Life Sciences Products, excluding B Medical $ 47,839 $ 49,877 B Medical 41,822 - Sample Repository Solutions 27,616 25,871 Genomic Services 61,089 63,904 Total $ 178,366 $ 139,652 |
Remaining Performance Obligations | As of December 31, 2022 Less than 1 Year Greater than 1 Year Total Remaining Performance Obligations $ 53,018 $ 36,749 $ 89,767 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Financial Information for Business Segments | The following is the summary of the financial information for the Company’s reportable segments for the three months ended December 31, 2022 and 2021 (in thousands): Three Months Ended December 31, 2022 2021 Revenue: Life Sciences Products $ 89,661 $ 49,877 Life Sciences Services 88,706 89,775 Total revenue $ 178,366 $ 139,652 Operating income / (loss): Life Sciences Products $ (3,798) $ 4,388 Life Sciences Services (4,612) 7,883 Reportable segment adjusted operating income (8,410) 12,271 Amortization of completed technology 4,168 1,773 Purchase accounting impact on inventory 2,869 — Amortization of other intangible assets 7,372 6,272 Restructuring charges 1,461 173 Other unallocated corporate expenses 3,405 4,378 Total operating loss (27,685) (325) Interest income 10,708 35 Interest expense (43) (455) Other income (expense) 1,145 (1,077) Loss before income taxes $ (15,875) $ (1,822) Assets: Life Sciences Products Life Sciences Services December 31, 2022 $ 886,409 $ 887,310 September 30, 2022 378,790 849,603 |
Reconciliation of Reportable Segment Assets to Corresponding Consolidated Amounts | December 31, September 30, 2022 2022 Segment assets $ 1,773,719 $ 1,228,393 Cash and cash equivalents, restricted cash, and marketable securities 1,443,424 2,305,081 Deferred tax assets 298 1,169 Other assets 74,975 181,479 Total assets $ 3,292,416 $ 3,716,122 |
Revenue from External Customers Attributed to Geographic Areas | Three Months Ended December 31, 2022 2021 Geographic Location: North America $ 88,935 $ 90,083 Rest of Europe 39,422 19,700 Africa 17,210 548 China 13,408 13,041 Asia Pacific/ Other 13,978 7,968 United Kingdom 5,413 8,312 Total $ 178,366 $ 139,652 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable December 31, Identical Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 443,240 $ 443,240 $ — $ — Available-for-sale securities 827,572 284,015 543,557 — Foreign exchange contracts 146 — 146 — Net investment hedge 47,953 — 47,953 — Total assets $ 1,318,911 $ 727,255 $ 591,656 $ — Liabilities: Contingent consideration liability $ 18,462 $ — $ — $ 18,462 Foreign exchange contracts 276 — 276 — Total liabilities $ 18,738 $ — $ 276 $ 18,462 Fair Value Measurements at Reporting Date Using Quoted Prices in Significant Active Markets for Significant Other Unobservable September 30, Identical Assets Observable Inputs Inputs Description 2022 (Level 1) (Level 2) (Level 3) Assets: Cash equivalents $ 374,804 $ 374,055 $ 749 $ — Available-for-sale securities 1,263,782 651,800 611,982 — Foreign exchange contracts 634 — 634 — Net investment hedge 124,789 — 124,789 — Total assets $ 1,764,009 $ 1,025,855 $ 738,154 $ — Liabilities: Foreign exchange contracts 230 $ — 230 — Total liabilities $ 230 $ — $ 230 $ — |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Foreign Currency Transaction Gain (Loss), before Tax [Abstract] | ||
Foreign currency transaction and remeasurement gains (losses) | $ 0.9 | $ (1.9) |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments Not Designated as Hedging Instruments, Gain (Loss), Net [Abstract] | ||
Realized gains (losses) on derivatives not designated as hedging instruments | $ (1,580) | $ (70) |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Hedging Activities (Details) $ in Thousands, € in Millions | 3 Months Ended | |||||
Feb. 01, 2023 USD ($) $ / € | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Feb. 01, 2023 EUR (€) $ / € | Feb. 01, 2022 USD ($) | Feb. 01, 2022 EUR (€) | |
Derivative [Line Items] | ||||||
Net investment hedge currency translation adjustment | $ (57,127) | |||||
Interest income | 10,708 | $ 35 | ||||
Currency Swap | Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount, cross-currency swap, exchanged | $ 1,030,000 | |||||
Derivative, notional amount, cross-currency swap, received | € | € 915 | |||||
Derivative, notional amount | $ 960,000 | |||||
Derivative, fixed interest rate (as a percent) | 1.283% | 1.283% | ||||
Gain (loss) to accumulated other comprehensive income | (57,100) | |||||
Interest income | $ 3,100 | |||||
Currency Swap | Designated as Hedging Instrument | Subsequent Event | ||||||
Derivative [Line Items] | ||||||
Derivative, notional amount, cross-currency swap, maturity, deliver | € | € 852 | |||||
Derivative, notional amount, cross-currency swap, maturity, receive | $ 960,000 | |||||
Derivative, forward exchange rate | $ / € | 1.1261 | 1.1261 | ||||
Gain on derivative | $ 29,200 | |||||
Currency Swap | Designated as Hedging Instrument | Weighted Average | ||||||
Derivative [Line Items] | ||||||
Derivative, variable interest rate | 1.196% | 1.196% |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Recently Issued and Adopted Accounting Pronouncements (Details) | Dec. 31, 2022 |
Accounting Standards Update 2021-10 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | false |
Accounting Standards Update 2021-08 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 |
Accounting Standards Update 2020-10 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 |
Accounting Standards Update 2020-06 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2022 |
Accounting Standards Update 2018-14 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 |
Accounting Standards Update 2019-12 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Change in Accounting Principle, Accounting Standards Update, Adopted | true |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Oct. 01, 2021 |
Discontinued Operations - Gener
Discontinued Operations - General Information (Details) $ in Millions | 12 Months Ended | |
Feb. 01, 2022 USD ($) lease | Sep. 30, 2022 USD ($) | |
Thomas H. Lee Partners, L.P. | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Transition service agreement, term, low end of range | 3 months | |
Transition service agreement, term, high end of range | 24 months | |
Sale leaseback transaction, lease agreements, number | lease | 2 | |
Sale leaseback transaction, lease term | 24 months | |
Sale leaseback transaction, termination notice period | 90 days | |
Discontinued Operations, Disposed of by Sale | Semiconductor Automation Business | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Proceeds from divestiture | $ 2,900 | |
Liability related to retention and stock compensation for former employees of the Company that were conveyed with the transaction | $ 18.1 | |
Liability related to retention and stock compensation for former employees of the Company that were conveyed with the transaction, amount paid | $ 0.6 |
Discontinued Operations - Finan
Discontinued Operations - Financial Results (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2021 USD ($) | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |
Net income from discontinued operations | $ 40,462 |
Discontinued Operations, Disposed of by Sale | Semiconductor Automation Business | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |
Total revenue | 203,670 |
Total cost of revenue | 115,906 |
Gross profit | 87,764 |
Research and development | 13,740 |
Selling, general and administrative | 22,676 |
Total operating expenses | 36,416 |
Operating income | 51,348 |
Other income, net | (46) |
Income before income taxes | 51,302 |
Income tax provision | 10,840 |
Net income from discontinued operations | 40,462 |
Discontinued Operations, Disposed of by Sale | Semiconductor Automation Business | Products | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |
Total revenue | 188,240 |
Total cost of revenue | 107,597 |
Discontinued Operations, Disposed of by Sale | Semiconductor Automation Business | Services | |
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | |
Total revenue | 15,430 |
Total cost of revenue | $ 8,309 |
Discontinued Operations - Non-c
Discontinued Operations - Non-cash Items and Capital Expenditures (Details) - Discontinued Operations, Disposed of by Sale - Semiconductor Automation Business $ in Thousands | 3 Months Ended |
Dec. 31, 2021 USD ($) | |
Discontinued Operation, Alternative Cash Flow Information [Abstract] | |
Capital expenditures | $ 2,283 |
Stock-based compensation | $ 4,923 |
Marketable Securities - General
Marketable Securities - General Information (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Investments, Debt and Equity Securities [Abstract] | |
Maturities and redemptions of marketable securities | $ 607.2 |
Marketable Securities - Summary
Marketable Securities - Summary of Amortized Cost and Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 840,116 | $ 1,278,422 |
Gross Unrealized Losses | (12,562) | (14,660) |
Gross Unrealized Gains | 18 | 22 |
Fair Value | 827,572 | 1,263,784 |
U.S. Treasury securities and obligations of U.S. government agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 479,617 | 804,774 |
Gross Unrealized Losses | (5,434) | (6,163) |
Gross Unrealized Gains | 13 | 21 |
Fair Value | 474,196 | 798,632 |
Bank certificates of deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,549 | 8,335 |
Gross Unrealized Losses | (174) | (158) |
Gross Unrealized Gains | 5 | 1 |
Fair Value | 10,380 | 8,178 |
Corporate securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 341,317 | 406,270 |
Gross Unrealized Losses | (6,941) | (8,113) |
Fair Value | 334,376 | 398,157 |
Municipal securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,633 | 59,043 |
Gross Unrealized Losses | (13) | (226) |
Fair Value | $ 8,620 | $ 58,817 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value of Marketable Securities by Contractual Maturity (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Amortized Cost [Abstract] | |
Amortized cost, due in one year or less REMAINDER OF YEAR | $ 525,787 |
Amortized cost, due in one year or less | 0 |
Amortized cost, due after one year through five years | 311,387 |
Amortized cost, due after ten years | 2,942 |
Amortized cost | 840,116 |
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, Fair Value [Abstract] | |
Fair value, due in one year or less REMAINDER OF YEAR | 522,897 |
Fair value, due in one year or less | 0 |
Fair value, due after one year through five years | 301,734 |
Fair value, due after ten years | 2,941 |
Fair value | $ 827,572 |
Acquisitions - General Informat
Acquisitions - General Information (Details) - country | Oct. 03, 2022 | Jul. 01, 2022 |
B Medical Systems S.a.r.l and Subsidiaries | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Business Acquisition, Effective Date of Acquisition | Oct. 03, 2022 | |
B Medical Systems S.a.r.l and Subsidiaries | Minimum | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Number of countries in which entity operates | 150 | |
Barkey Holding GmbH and Subsidiaries | ||
Business Acquisition, Date of Acquisition [Abstract] | ||
Business Acquisition, Effective Date of Acquisition | Jul. 01, 2022 |
Acquisitions - Purchase Conside
Acquisitions - Purchase Consideration (Details) $ in Thousands, € in Millions | 3 Months Ended | ||||
Oct. 03, 2022 USD ($) | Jul. 01, 2022 USD ($) | Dec. 31, 2022 USD ($) | Oct. 03, 2022 EUR (€) | Sep. 30, 2022 USD ($) | |
Business Acquisition [Line Items] | |||||
Aggregate purchase price, net of cash acquired | $ 371,633 | ||||
Short-term restricted cash | 7,070 | $ 382,596 | |||
Contingent consideration liability | 18,462 | ||||
B Medical Systems S.a.r.l and Subsidiaries | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 432,200 | ||||
Contingent consideration | 17,000 | ||||
Aggregate purchase price, net of cash acquired | $ 424,000 | ||||
Additional contingent consideration | € | € 50 | ||||
Prepaid assets | 43,100 | ||||
Short-term restricted cash | $ 381,000 | ||||
Contingent consideration liability, achievement of certain revenue targets, term | 1 year | ||||
Contingent consideration liability | $ 18,500 | ||||
Barkey Holding GmbH and Subsidiaries | |||||
Business Acquisition [Line Items] | |||||
Total purchase price | $ 84,800 |
Acquisitions - Amounts of Asset
Acquisitions - Amounts of Assets and Liabilities at Fair Value as of Acquisition Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 03, 2022 | Sep. 30, 2022 | Jul. 01, 2022 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Accounts receivable | $ 19,549 | |||
Inventory | 49,700 | |||
Other assets | 20,330 | |||
Property, plant and equipment | 55,170 | |||
Other liabilities | (31,699) | |||
Deferred income taxes, net | (42,974) | |||
Goodwill | $ 761,153 | 219,085 | $ 513,623 | |
Total purchase price, net of cash acquired | 432,160 | |||
Completed Technology | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 100,200 | |||
Trademarks | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 5,500 | |||
Customer Relationships | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 36,700 | |||
Order or Production Backlog | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | $ 600 | |||
Barkey Holding GmbH and Subsidiaries | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Deferred income taxes, net | $ (9,800) | |||
Goodwill | 57,800 | |||
Barkey Holding GmbH and Subsidiaries | Completed Technology | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | 29,000 | |||
Barkey Holding GmbH and Subsidiaries | Customer Relationships | ||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||
Intangible assets | $ 3,000 |
Acquisitions - Intangible Asset
Acquisitions - Intangible Assets Acquired (Details) | Oct. 03, 2022 | Jul. 01, 2022 |
B Medical Systems S.a.r.l and Subsidiaries | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible assets, valuation technique, discounted cash flow, measurement input, discount rate, percentage (as a percent) | 13% | |
B Medical Systems S.a.r.l and Subsidiaries | Completed Technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of intangible assets | 10 years | |
B Medical Systems S.a.r.l and Subsidiaries | Customer Relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of intangible assets | 16 years | |
B Medical Systems S.a.r.l and Subsidiaries | Trademarks | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of intangible assets | 5 years | |
B Medical Systems S.a.r.l and Subsidiaries | Order or Production Backlog | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of intangible assets | 1 year | |
Barkey Holding GmbH and Subsidiaries | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of intangible assets | 15 years |
Acquisitions - Goodwill (Detail
Acquisitions - Goodwill (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Oct. 03, 2022 | Sep. 30, 2022 | Jul. 01, 2022 |
Business Combination, Goodwill [Abstract] | ||||
Goodwill | $ 761,153 | $ 219,085 | $ 513,623 | |
Life Sciences Products | ||||
Business Combination, Goodwill [Abstract] | ||||
Goodwill | $ 402,117 | $ 154,612 | ||
B Medical Systems S.a.r.l and Subsidiaries | ||||
Business Combination, Goodwill [Abstract] | ||||
Goodwill deductible for tax purposes | 0 | |||
B Medical Systems S.a.r.l and Subsidiaries | Life Sciences Products | ||||
Business Combination, Goodwill [Abstract] | ||||
Goodwill | $ 219,100 | |||
Barkey Holding GmbH and Subsidiaries | ||||
Business Combination, Goodwill [Abstract] | ||||
Goodwill | $ 57,800 | |||
Goodwill deductible for tax purposes | $ 0 |
Acquisitions - Results of Opera
Acquisitions - Results of Operations (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition, Pro Forma Information [Abstract] | |||
Amortization of intangible assets | $ 11.5 | $ 8 | |
B Medical Systems S.a.r.l and Subsidiaries | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Actual revenues | $ 41.8 | ||
Actual net income (loss) | (4.7) | ||
Acquisition related costs | $ 4.7 | $ 8.7 |
Acquisitions - Pro Forma Inform
Acquisitions - Pro Forma Information - Tabular Disclosure (Details) - B Medical Systems S.a.r.l and Subsidiaries - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition, Pro Forma Information [Abstract] | ||
Revenue | $ 178,366 | $ 178,621 |
Net loss | $ (5,845) | $ (33,526) |
Acquisitions - Pro Forma Info_2
Acquisitions - Pro Forma Information - Additional Information (Details) - B Medical Systems S.a.r.l and Subsidiaries $ in Millions | 3 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition, Pro Forma Information [Abstract] | |
Business acquisition, pro forma information, purchase accounting adjustment, reversal of research and development expense capitalization | $ 1.6 |
Business acquisition, pro forma information, purchase accounting adjustment, transaction costs | 8.7 |
Business acquisition, pro forma information, purchase accounting adjustment, reversal of debt interest expense | $ 5.4 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill Roll Forward - Tabular Disclosure (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | $ 513,623 |
Acquisitions | 219,085 |
Currency translation adjustments | 28,445 |
Goodwill, ending balance | 761,153 |
Life Sciences Products | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 154,612 |
Acquisitions | 219,085 |
Currency translation adjustments | 28,420 |
Goodwill, ending balance | 402,117 |
Life Sciences Services | |
Goodwill [Roll Forward] | |
Goodwill, beginning balance | 359,011 |
Currency translation adjustments | 24 |
Goodwill, ending balance | $ 359,035 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Goodwill Roll Forward - Additional Information (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Business Combination Segment Allocation [Line Items] | |
Acquisitions | $ 219,085 |
Currency translation adjustments | 28,445 |
B Medical Systems S.a.r.l and Subsidiaries | |
Business Combination Segment Allocation [Line Items] | |
Acquisitions | 219,100 |
Currency translation adjustments | $ 28,400 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Components of Identifiable Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Cost | $ 512,539 | $ 348,982 |
Accumulated Amortization | 185,433 | 170,581 |
Net Book Value | 327,106 | 178,401 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 1,225 | 1,225 |
Accumulated Amortization | 1,123 | 1,106 |
Net Book Value | 102 | 119 |
Completed Technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 212,205 | 99,525 |
Accumulated Amortization | 42,718 | 37,991 |
Net Book Value | 169,487 | 61,534 |
Trademarks and Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 6,373 | 400 |
Accumulated Amortization | 416 | 41 |
Net Book Value | 5,957 | 359 |
Noncompete Agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 681 | 681 |
Accumulated Amortization | 471 | 439 |
Net Book Value | 210 | 242 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 291,201 | 246,949 |
Accumulated Amortization | 140,340 | 130,802 |
Net Book Value | 150,861 | 116,147 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Cost | 854 | 202 |
Accumulated Amortization | 365 | $ 202 |
Net Book Value | $ 489 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Intangible Assets Acquired (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
B Medical Systems S.a.r.l and Subsidiaries | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Finite-lived intangible assets acquired | $ 143 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets - Amortization Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 11.5 | $ 8 |
Goodwill and Intangible Asset_7
Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2023 | $ 35,512 | |
2024 | 49,107 | |
2025 | 47,749 | |
2026 | 44,474 | |
Thereafter | 150,264 | |
Net Book Value | $ 327,106 | $ 178,401 |
Leases - Lease Expense (Details
Leases - Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease, Cost [Abstract] | ||
Operating lease costs | $ 3,064 | $ 2,171 |
Amortization of assets | 91 | 75 |
Interest on lease liabilities | 4 | 3 |
Total finance lease costs | 95 | 78 |
Variable lease cost | 2 | 518 |
Short-term lease costs | 184 | 354 |
Sublease income | (2) | |
Total lease costs | $ 3,343 | $ 3,121 |
Leases - Assets and Liabilities
Leases - Assets and Liabilities - Operating Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Assets and Liabilities, Lessee [Abstract] | ||
Operating lease right-of-use assets | $ 57,005 | $ 54,059 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position | Other assets | Other assets |
Accrued expenses and other current liabilities | $ 7,334 | $ 6,924 |
Operating Lease, Liability, Current, Statement of Financial Position | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Long-term operating lease liabilities | $ 52,494 | $ 49,227 |
Total lease liability balance | $ 59,828 | $ 56,151 |
Leases - Assets and Liabiliti_2
Leases - Assets and Liabilities - Finance Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization [Abstract] | ||
Property, plant and equipment, at cost | $ 3,678 | $ 2,476 |
Accumulated amortization | (2,367) | (2,276) |
Property, plant and equipment, net | $ 1,311 | $ 200 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position | Property, plant and equipment, net | Property, plant and equipment, net |
Finance Lease Liability [Abstract] | ||
Accrued expenses and other current liabilities | $ 423 | $ 96 |
Finance Lease, Liability, Current, Statement of Financial Position | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Other long-term liabilities, net | $ 893 | $ 98 |
Total finance lease liabilities | $ 1,316 | $ 194 |
Finance Lease, Liability, Statement of Financial Position | Other long-term liabilities, Accrued expenses and other current liabilities | Other long-term liabilities, Accrued expenses and other current liabilities |
Leases - Additional Information
Leases - Additional Information (Details) | Dec. 31, 2022 | Sep. 30, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term, operating leases | 10 years 9 months 14 days | 10 years 9 months 25 days |
Weighted average remaining lease term, finance leases | 3 years 8 months 15 days | 2 years 2 months 8 days |
Weighted average discount rate, operating leases (as a percent) | 4.11% | 3.93% |
Weighted average discount rate, finance leases (as a percent) | 2.47% | 1.29% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flow, Operating Activities, Lessee [Abstract] | ||
Operating cash flows from operating leases | $ 2,569 | $ 1,659 |
Operating cash flows from finance leases | 4 | 3 |
Financing cash flows from finance leases | $ 87 | $ 190 |
Leases - Assets Obtained in Exc
Leases - Assets Obtained in Exchange for Lease Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Disclosure [Abstract] | ||
ROU assets obtained in exchange for lease liabilities, operating leases, net | $ (766) | $ 186 |
ROU assets obtained in exchange for lease liabilities, finance leases | $ 790 |
Leases - Finance Leases - Futur
Leases - Finance Leases - Future Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Finance Lease, Liability, to be Paid [Abstract] | |
2023 | $ 301 |
2024 | 399 |
2025 | 322 |
2026 | 224 |
2027 | 121 |
Thereafter | 17 |
Total future lease payments | $ 1,384 |
Leases - Finance Leases - Gross
Leases - Finance Leases - Gross Difference (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Finance Lease, Liability, to be Paid, Gross Difference [Abstract] | ||
Total future lease payments | $ 1,384 | |
Less imputed interest | (68) | |
Total finance lease liabilities | $ 1,316 | $ 194 |
Leases - Operating Leases - Fut
Leases - Operating Leases - Future Lease Payments (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | |
2023 | $ 7,225 |
2024 | 8,795 |
2025 | 8,477 |
2026 | 6,921 |
2027 | 6,497 |
Thereafter | 37,552 |
Total future lease payments | $ 75,467 |
Leases - Operating Leases - Gro
Leases - Operating Leases - Gross Difference (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Operating Lease Liabilities, Gross Difference, Amount [Abstract] | ||
Total future lease payments | $ 75,467 | |
Less imputed interest | (15,639) | |
Total lease liability balance | $ 59,828 | $ 56,151 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Income tax expense (benefit) | $ (4,640) | $ (4,680) |
Deferred tax benefit resulting from the extension of a tax incentive in China | 1,300 | |
Benefit related to stock compensation windfalls | $ 4,800 |
Income Taxes - Examination (Det
Income Taxes - Examination (Details) | 3 Months Ended |
Dec. 31, 2022 | |
Earliest Tax Year | |
Income Tax Contingency [Line Items] | |
Year subject to examination | 2017 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Anticipated unrecognized tax benefit reduction during next twelve months | $ 1.6 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Summary of Account Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | ||
Accounts receivable | $ 208,862 | $ 168,920 |
Less allowance for expected credit losses | (6,942) | (5,162) |
Accounts receivable, net | $ 201,920 | $ 163,758 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Allowance for Expected Credit Losses Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance at beginning of period | $ 5,162 | $ 4,318 |
Provisions | 2,716 | 3,020 |
Reversals of bad debt expense | (936) | (2,924) |
Balance at end of period | $ 6,942 | $ 4,414 |
Other Balance Sheet Informati_5
Other Balance Sheet Information - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Raw materials and purchased parts | $ 80,269 | $ 39,685 |
Work-in-process | 4,740 | 4,816 |
Finished goods | 60,930 | 41,043 |
Inventory, net | $ 145,939 | $ 85,544 |
Other Balance Sheet Informati_6
Other Balance Sheet Information - Inventory Reserves (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Sep. 30, 2022 |
Inventory Adjustments [Abstract] | ||
Reserves related to write downs or adjustments of inventory to net realizable | $ 4.3 | $ 4.1 |
Other Balance Sheet Informati_7
Other Balance Sheet Information - Capitalized Direct Costs (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | |
Property, Plant and Equipment, Gross [Abstract] | ||
Capitalized computer software, gross | $ 27.9 | $ 26.9 |
Capitalized computer software costs | 1.1 | |
Software Development | ||
Property, Plant and Equipment, Gross [Abstract] | ||
Capitalized computer software, gross | $ 9.7 |
Other Balance Sheet Informati_8
Other Balance Sheet Information - Product Warranty and Retrofit Activity on Gross Basis (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Beginning Balance | $ 2,890 | $ 2,330 |
Adjustments for acquisitions | 2,303 | |
Accruals | 307 | 673 |
Costs incurred | (321) | (660) |
Ending Balance | $ 5,179 | $ 2,342 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 2,105 | $ 7,891 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,759 | 7,197 |
Restricted Stock Units (RSUs) | Continuing Operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 1,900 | 2,600 |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 346 | 694 |
Employee Stock | Continuing Operations | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 300 | $ 300 |
Stock-Based Compensation - Rest
Stock-Based Compensation - Restricted Stock Units Granted (Details) - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stocks granted (in shares) | 485,880 | 149,348 |
Restricted Stock, Time Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stocks granted (in shares) | 225,139 | 59,776 |
Board of Director Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stocks granted (in shares) | 24 | |
Restricted Stock, Performance Based Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Restricted stocks granted (in shares) | 260,741 | 89,548 |
Stock-Based Compensation - Time
Stock-Based Compensation - Time-Based Restricted Stock Unit Grants (Details) - Restricted Stock, Time Based Shares | 3 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period (in years) | 3 years |
Share-Based Payment Arrangement, Tranche One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage (as a percent) | 33.33% |
Share-Based Payment Arrangement, Tranche Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage (as a percent) | 33.33% |
Share-Based Payment Arrangement, Tranche Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting percentage (as a percent) | 33.33% |
Stock-Based Compensation - Perf
Stock-Based Compensation - Performance-Based Restricted Stock Unit Grants (Details) | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Performance-based awards granted, percentage (as a percent) | 100% | 100% | 100% |
Performance-based awards granted, percentage, maximum threshold met (as a percent) | 200% | 200% | 200% |
Performance goal measurement period (in years) | 3 years |
Stock-Based Compensation - Re_2
Stock-Based Compensation - Restricted Stock Unit Activity - Tabular Disclosure (Details) - Restricted Stock Units (RSUs) - $ / shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Shares | ||
Outstanding at beginning of period (in shares) | 538,238 | |
Restricted stocks granted (in shares) | 485,880 | 149,348 |
Vested (in shares) | (178,859) | |
Forfeited (in shares) | (40,056) | |
Outstanding at end of period (in shares) | 805,203 | |
Weighted Average Grant-Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 71.99 | |
Granted (in dollars per share) | 59.57 | $ 114.42 |
Vested (in dollars per share) | 70.63 | |
Forfeited (in dollars per share) | 80.35 | |
Outstanding at end of period (in dollars per share) | $ 68.95 |
Stock-Based Compensation - Re_3
Stock-Based Compensation - Restricted Stock Unit Activity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Withholding tax payments on net share settlements on equity awards | $ 4,629 | |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Granted (in dollars per share) | $ 59.57 | $ 114.42 |
Fair value of restricted stock awards vested | $ 7,000 | $ 64,800 |
Withholding taxes remitted | 4,600 | 24,900 |
Withholding tax payments on net share settlements on equity awards | $ 4,600 | 0 |
Proceeds from employees to satisfy tax obligation | $ 24,900 |
Stock-Based Compensation - Re_4
Stock-Based Compensation - Restricted Stock Unit Activity - Unrecognized Compensation Cost (Details) - Restricted Stock Units (RSUs) $ in Millions | 3 Months Ended |
Dec. 31, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 37.6 |
Unrecognized compensation cost, estimated weighted average amortization period | 2 years 2 months 12 days |
Stock-Based Compensation - Empl
Stock-Based Compensation - Employee Stock Purchase Plan (Details) - shares | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued under employee stock purchase plan (in shares) | 0 | 0 |
Employee Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Purchase price of common stock (as a percent) | 85% |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Millions | 3 Months Ended | |||
Nov. 28, 2022 | Dec. 31, 2022 | Nov. 04, 2022 | Sep. 29, 2015 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Payments for repurchase of common stock | $ 500,000,000 | |||
Share Repurchase Program, September 2015 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 0 | $ 50,000,000 | ||
Share Repurchase Program, November 2022 | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | 1,500,000,000 | |||
Stock repurchase program, remaining authorized repurchase amount | $ 1,000,000,000 | |||
Share Repurchase Program, November 2022, Accelerated Share Repurchase Agreement | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock repurchase program, authorized amount | $ 500,000,000 | |||
Payments for repurchase of common stock | $ 500,000,000 | |||
Stock repurchased and retired during period (in shares) | 6.1 | |||
Stock repurchase program, percentage of common stock expected to be repurchased under program (as a percent) | 70% |
Earnings per Share - Tabular Di
Earnings per Share - Tabular Disclosure (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Income (Loss) Available to Common Stockholders, Diluted [Abstract] | ||
Income (loss) from continuing operations | $ (11,235) | $ 2,858 |
Income from discontinued operations, net of tax | 40,462 | |
Net income (loss) | (11,235) | 43,320 |
Net income - basic | (11,235) | 43,320 |
Net income - diluted | $ (11,235) | $ 43,320 |
Weighted Average Number of Shares Outstanding, Diluted [Abstract] | ||
Weighted average common shares outstanding used in computing basic income (loss) per share (in shares) | 72,543 | 74,630 |
Dilutive restricted stock units (in shares) | 236 | |
Weighted average common shares outstanding used in computing diluted income (loss) per share (in shares) | 72,543 | 74,866 |
Earnings Per Share, Basic [Abstract] | ||
Income / (loss) from continuing operations (in dollars per share) | $ (0.15) | $ 0.04 |
Income from discontinued operations, net of tax (in dollars per share) | 0.54 | |
Basic net income per share (in dollars per share) | (0.15) | 0.58 |
Earnings Per Share, Diluted [Abstract] | ||
Income (loss) from continuing operations (in dollars per share) | (0.15) | 0.04 |
Income from discontinued operations, net of tax (in dollars per share) | 0.54 | |
Diluted net income (loss) per share (in dollars per share) | $ (0.15) | $ 0.58 |
Earnings per Share - Anti-dilut
Earnings per Share - Anti-dilutive Securities (Details) | 3 Months Ended |
Dec. 31, 2022 shares | |
Restricted Stock Units (RSUs) | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Anti-dilutive securities excluded from computation of diluted earnings per share (in shares) | 64,122 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Disaggregated By Reporting Unit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 178,366 | $ 139,652 |
Life Sciences Products, excluding B Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 47,839 | $ 49,877 |
Reporting unit, name of segment | Life Sciences Products | Life Sciences Products |
B Medical | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 41,822 | |
Reporting unit, name of segment | Life Sciences Products | Life Sciences Products |
Sample Repository Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 27,616 | $ 25,871 |
Reporting unit, name of segment | Life Sciences Services | Life Sciences Services |
Genomic Services | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 61,089 | $ 63,904 |
Reporting unit, name of segment | Life Sciences Services | Life Sciences Services |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2022 | |
Accounts Receivable, after Allowance for Credit Loss, Current [Abstract] | |||
Accounts receivable, net | $ 201,920 | $ 163,758 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Current [Abstract] | |||
Contract assets | 19,600 | 18,200 | |
Contract with Customer, Liability [Abstract] | |||
Contract liabilities | 42,600 | $ 39,700 | |
Revenue recognized | $ 11,100 | $ 13,800 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 89,767 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 53,018 |
Unsatisfied performance obligation, period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligations | $ 36,749 |
Unsatisfied performance obligation, period |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Costs to Obtain and Fulfill a Contract (Details) | Dec. 31, 2022 |
Capitalized Contract Cost [Abstract] | |
Sales commission amortization period | 60 months |
Segment and Geographic Inform_3
Segment and Geographic Information - General Information (Details) - segment | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | ||
Number of reportable segments | 2 | 2 |
Number of operating segments | 2 | 2 |
Number of reportable segments, previously operated | 3 | 3 |
Segment and Geographic Inform_4
Segment and Geographic Information - Acquisitions (Details) - B Medical Systems S.a.r.l and Subsidiaries | Oct. 03, 2022 country |
Business Acquisition, Date of Acquisition [Abstract] | |
Business Acquisition, Effective Date of Acquisition | Oct. 03, 2022 |
Minimum | |
Business Acquisition, Date of Acquisition [Abstract] | |
Number of countries in which entity operates | 150 |
Segment and Geographic Inform_5
Segment and Geographic Information - Reconciliation of Reportable Segment Operating Income (Loss) to Corresponding Consolidated Amounts (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 178,366 | $ 139,652 |
Amortization of other intangible assets | 11,500 | 8,000 |
Purchase accounting impact on inventory | 2,869 | |
Operating income (loss) | (27,685) | (325) |
Interest income | 10,708 | 35 |
Interest expense | (43) | (455) |
Other income (expense) | 1,145 | (1,077) |
Loss before income taxes | (15,875) | (1,822) |
Completed Technology | ||
Segment Reporting Information [Line Items] | ||
Amortization of other intangible assets | 4,168 | 1,773 |
Acquired Intangible Assets | ||
Segment Reporting Information [Line Items] | ||
Amortization of other intangible assets | 7,372 | 6,272 |
Life Sciences Products | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 89,661 | 49,877 |
Operating income (loss) | (3,798) | 4,388 |
Life Sciences Services | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 88,706 | 89,775 |
Operating income (loss) | (4,612) | 7,883 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 178,366 | 139,652 |
Segment Reconciling Items | ||
Segment Reporting Information [Line Items] | ||
Operating income (loss) | (8,410) | 12,271 |
Corporate, Non-Segment | ||
Segment Reporting Information [Line Items] | ||
Other unallocated corporate expense (income) | $ 3,405 | $ 4,378 |
Segment and Geographic Inform_6
Segment and Geographic Information - Financial Information for Business Segments - Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Total assets | $ 3,292,416 | $ 3,716,122 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total assets | 1,773,719 | 1,228,393 |
Operating Segments | Life Sciences Products | ||
Segment Reporting Information [Line Items] | ||
Total assets | 886,409 | 378,790 |
Operating Segments | Life Sciences Services | ||
Segment Reporting Information [Line Items] | ||
Total assets | $ 887,310 | $ 849,603 |
Segment and Geographic Inform_7
Segment and Geographic Information - Reconciliation of Reportable Segment Assets to Corresponding Consolidated Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Segment Reporting Information [Line Items] | ||
Cash and cash equivalents, restricted cash, and marketable securities | $ 1,443,424 | $ 2,305,081 |
Deferred tax asset | 298 | 1,169 |
Other assets | 74,975 | 181,479 |
Assets | 3,292,416 | 3,716,122 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Assets | $ 1,773,719 | $ 1,228,393 |
Segment and Geographic Inform_8
Segment and Geographic Information - Net Revenues Based upon Source of Order by Geographic Area - Tabular Disclosure (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 178,366 | $ 139,652 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 88,935 | 90,083 |
Rest of Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 39,422 | 19,700 |
United Kingdom | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 5,413 | 8,312 |
Africa | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 17,210 | 548 |
China | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | 13,408 | 13,041 |
Asia / Pacific / Other | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total revenue | $ 13,978 | $ 7,968 |
Segment and Geographic Inform_9
Segment and Geographic Information - Net Revenues Based upon Source of Order by Geographic Area - Additional Information (Details) | 3 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer Benchmark | Geographic Concentration Risk, North America [Member] | UNITED STATES | ||
Concentration Risk [Line Items] | ||
Concentration risk (as a percent) | 99% | 99% |
Significant Customers (Details)
Significant Customers (Details) | 3 Months Ended |
Dec. 31, 2022 country | |
Top Individual Distributor | |
Concentration Risk [Line Items] | |
Number of countries in which entity operates | 17 |
Revenue from Contract with Customer Benchmark | Customer Concentration Risk | Top Individual Distributor | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 20% |
Accounts Receivable | Credit Concentration Risk | Top Individual Distributor | |
Concentration Risk [Line Items] | |
Concentration risk (as a percent) | 12% |
Commitments and Contingencies -
Commitments and Contingencies - Tariff Matter (Details) - Tariffs - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2022 | Mar. 31, 2021 | |
Loss Contingency Accrual, Disclosures [Abstract] | ||
Loss contingency accrual | $ 6.1 | |
Loss contingency payment | $ 5.9 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Non-cancelable Commitments | |
Other Commitments [Line Items] | |
Other commitment | $ 65.4 |
Non-cancellable Contracts and Purchase Orders for Inventory | |
Other Commitments [Line Items] | |
Other commitment | 38.7 |
Non-cancelable Information Technology-related Commitments | |
Other Commitments [Line Items] | |
Other commitment | $ 26.7 |
Commitments and Contingencies_3
Commitments and Contingencies - Contingencies (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2023 USD ($) | |
Edwards Vacuum LLC, Indemnification, Definitive Agreement, Third-party Warranty Claim | Subsequent Event | |
Loss Contingency, Information about Litigation Matters [Abstract] | |
Loss contingency, damages sought, value | $ 1 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Sep. 30, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | $ 827,572 | $ 1,263,784 |
Derivative Asset, Statement of Financial Position | Prepaid expenses and other current assets | Prepaid expenses and other current assets |
Fair Value, Recurring | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | $ 827,572 | $ 1,263,782 |
Foreign exchange contracts | 146 | 634 |
Net investment hedge | 47,953 | 124,789 |
Total Assets | 1,318,911 | 1,764,009 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent consideration liability | 18,462 | |
Foreign exchange contracts | 276 | 230 |
Total Liabilities | 18,738 | 230 |
Fair Value, Recurring | Cash Equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 443,240 | 374,804 |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 284,015 | 651,800 |
Total Assets | 727,255 | 1,025,855 |
Fair Value, Recurring | Fair Value, Inputs, Level 1 | Cash Equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 443,240 | 374,055 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Available-for-sale securities | 543,557 | 611,982 |
Foreign exchange contracts | 146 | 634 |
Net investment hedge | 47,953 | 124,789 |
Total Assets | 591,656 | 738,154 |
Liabilities, Fair Value Disclosure [Abstract] | ||
Foreign exchange contracts | 276 | 230 |
Total Liabilities | 276 | 230 |
Fair Value, Recurring | Fair Value, Inputs, Level 2 | Cash Equivalents | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | $ 749 | |
Fair Value, Recurring | Fair Value, Inputs, Level 3 | ||
Liabilities, Fair Value Disclosure [Abstract] | ||
Contingent consideration liability | 18,462 | |
Total Liabilities | $ 18,462 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Feb. 03, 2023 | Dec. 31, 2022 | |
Subsequent Event [Line Items] | ||
Aggregate purchase price, net of cash acquired | $ 371,633 | |
Subsequent Event | Ziath Ltd and Subsidiaries | ||
Subsequent Event [Line Items] | ||
Business Acquisition, Effective Date of Acquisition | Feb. 02, 2023 | |
Aggregate purchase price, net of cash acquired | $ 16,000 |