Fair Value

6 Months Ended

Mar. 29, 2024

Fair Value Disclosures [Abstract]

Fair Value

FAIR VALUE

Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis

The Company groups its financial assets and liabilities measured at fair value on a recurring basis in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are:

•Level 1 - Quoted prices in active markets for identical assets or liabilities.

•Level 2 - Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities, quoted prices in markets with insufficient volume or infrequent transactions (less-active markets), or model-driven valuations in which all significant inputs are observable or can be derived principally from, or corroborated with, observable market data.

•Level 3 - Fair value is derived from valuation techniques in which one or more significant inputs are unobservable, including assumptions and judgments made by the Company.

Assets and liabilities recorded at fair value on a recurring basis consisted of the following (in millions):         

	As of
	March 29, 2024								September 29, 2023
			Fair Value Measurements								Fair Value Measurements
	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Assets
Cash and cash equivalents (1)	$	1,205.4	$	1,205.4	$	—	$	—	$	718.8	$	718.5	$	0.3	$	—
U.S. Treasury and government securities	15.4		7.2		8.2		—		19.2		—		19.2		—
Corporate bonds and notes	0.5		—		0.5		—		—		—		—		—
Municipal bonds	—		—		—		—		0.5		—		0.5		—
Total assets at fair value	$	1,221.3	$	1,212.6	$	8.7	$	—	$	738.5	$	718.5	$	20.0	$	—

(1) Cash equivalents included in Levels 1 and 2 consist of money market funds and U.S. Treasury and government securities purchased with less than ninety days until maturity.

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis

The Company’s non-financial assets and liabilities, such as goodwill, intangible assets, and other long-lived assets resulting from business combinations, are measured at fair value using income approach valuation methodologies at the date of acquisition and are subsequently re-measured if there are indicators of impairment. During the three months ended March 29, 2024, there were no indicators of impairment identified. During the six months ended March 29, 2024, the Company abandoned a previously capitalized in-process research and development (“IPR&D”) project and recorded an impairment charge of $16.1 million. During the three and six months ended March 31, 2023, the Company recorded impairment charges of $17.0 million.

Fair Value of Debt

The Company’s debt is carried at amortized cost and is measured at fair value quarterly for disclosure purposes. The estimated fair values are based on Level 2 inputs as the fair value is based on quoted prices for the Company’s debt and comparable instruments in inactive markets.

The carrying amount and estimated fair value of debt consists of the following (in millions):

	As of
	March 29, 2024				September 29, 2023
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
1.80% Senior Notes due 2026	$	498.1	$	464.2	$	497.7	$	444.5
3.00% Senior Notes due 2031	495.5		422.2		495.2		390.4
Total debt under Senior Notes	$	993.6	$	886.4	$	992.9	$	834.9