QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 6. | ||||||||
EXHIBITS |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Product | $ | $ | $ | $ | |||||||||||||||||||
Service and other | |||||||||||||||||||||||
Costs of revenues: | |||||||||||||||||||||||
Product | |||||||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Impairment of intangible assets and equipment | |||||||||||||||||||||||
Service and other | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Impairment of intangible assets and equipment | |||||||||||||||||||||||
Restructuring and divestiture charges | |||||||||||||||||||||||
Income (loss) from operations | ( | ||||||||||||||||||||||
Interest income | |||||||||||||||||||||||
Interest expense | ( | ( | ( | ( | |||||||||||||||||||
Debt extinguishment loss | ( | ||||||||||||||||||||||
Other income, net | |||||||||||||||||||||||
Income (loss) before income taxes | ( | ||||||||||||||||||||||
Provision (benefit) for income taxes | ( | ( | |||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Net loss attributable to noncontrolling interest | ( | ( | |||||||||||||||||||||
Net income (loss) attributable to Hologic | $ | $ | $ | $ | ( | ||||||||||||||||||
Net income (loss) per common share attributable to Hologic: | |||||||||||||||||||||||
Basic | $ | $ | $ | $ | ( | ||||||||||||||||||
Diluted | $ | $ | $ | $ | ( | ||||||||||||||||||
Weighted average number of shares outstanding: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Net income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Changes in foreign currency translation adjustment | ( | ( | |||||||||||||||||||||
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of $( | |||||||||||||||||||||||
Loss recognized in other comprehensive income, net | ( | ( | ( | ( | |||||||||||||||||||
Loss reclassified from accumulated other comprehensive loss to the statements of operations | |||||||||||||||||||||||
Other comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive income (loss) | $ | $ | $ | $ | ( | ||||||||||||||||||
Components of comprehensive income (loss) attributable to noncontrolling interest: | |||||||||||||||||||||||
Net loss attributable to noncontrolling interest | |||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interest | |||||||||||||||||||||||
Comprehensive income (loss) attributable to Hologic | $ | $ | $ | $ | ( |
June 27, 2020 | September 28, 2019 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less reserves of $ | |||||||||||
Inventories | |||||||||||
Prepaid income taxes | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, net | |||||||||||
Goodwill | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Current portion of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued expenses | |||||||||||
Deferred revenue | |||||||||||
Finance lease obligation (capital lease obligation in 2019) | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current portion | |||||||||||
Finance lease obligation - long term (capital lease obligation in 2019) | |||||||||||
Deferred income tax liabilities | |||||||||||
Deferred revenue | |||||||||||
Other long-term liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in-capital | |||||||||||
Accumulated deficit | ( | ( | |||||||||
Treasury stock, at cost – | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total Hologic's stockholders’ equity | |||||||||||
Noncontrolling interest | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-in- Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Treasury Stock | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||||||||||||||||||||||
Number of Shares | Par Value | Number of Shares | Amount | Noncontrolling Interest | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 29, 2018 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Accounting standard transition adjustment - ASC 606 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting standard transition adjustment - ASU 2016-16 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 29, 2018 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under the employee stock purchase plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 30, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 29, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under the employee stock purchase plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 28, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Noncontrolling interest created in acquisition | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Accounting standard transition adjustment - ASC 842 | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Accelerated share repurchase agreement | — | — | ( | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at December 28, 2019 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Common stock issued under the employee stock purchase plan | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | ( | — | — | — | ( |
Repurchase of common stock | — | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Completion of Accelerated share repurchase agreement | — | — | — | — | ( | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at March 28, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||
Vesting of restricted stock units, net of shares withheld for employee taxes | — | ( | — | — | — | — | — | ( | ||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income activity | — | — | — | — | ( | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Purchase of non-controlling interest | — | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 27, 2020 | $ | $ | $ | ( | $ | ( | $ | ( | $ | $ |
Nine Months Ended | |||||||||||
June 27, 2020 | June 29, 2019 | ||||||||||
OPERATING ACTIVITIES | |||||||||||
Net income (loss) | $ | $ | ( | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||||||
Depreciation | |||||||||||
Amortization of acquired intangibles | |||||||||||
Stock-based compensation expense | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Intangible asset and equipment impairment charges | |||||||||||
Other adjustments and non-cash items | |||||||||||
Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions: | |||||||||||
Accounts receivable | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid income taxes | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable | ( | ( | |||||||||
Accrued expenses and other liabilities | ( | ||||||||||
Deferred revenue | |||||||||||
Net cash provided by operating activities | |||||||||||
INVESTING ACTIVITIES | |||||||||||
Acquisition of businesses, net of cash acquired | ( | ( | |||||||||
Net proceeds from sale of business | |||||||||||
Capital expenditures | ( | ( | |||||||||
Increase in equipment under customer usage agreements | ( | ( | |||||||||
Purchase of cost-method investment | ( | ||||||||||
Purchase of insurance contracts | ( | ||||||||||
Purchase of intellectual property | ( | ||||||||||
Other activity | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
FINANCING ACTIVITIES | |||||||||||
Proceeds from long-term debt | |||||||||||
Repayment of long-term debt | ( | ( | |||||||||
Proceeds from revolving credit line | |||||||||||
Repayments under revolving credit line | ( | ( | |||||||||
Proceeds from accounts receivable securitization agreement | |||||||||||
Repayments under accounts receivable securitization agreement | ( | ( | |||||||||
Purchase of non-controlling interest | ( | ||||||||||
Payment of deferred acquisition consideration | ( | ( | |||||||||
Payment of acquired long-term debt | ( | ( | |||||||||
Payment of debt issuance costs | ( | ||||||||||
Payments to repurchase common stock pursuant to ASR agreement | ( | ||||||||||
Repurchase of common stock | ( | ( | |||||||||
Purchase of interest rate caps | ( | ||||||||||
Proceeds from issuance of common stock pursuant to employee stock plans | |||||||||||
Payment of minimum tax withholdings on net share settlements of equity awards | ( | ( | |||||||||
Payments under finance lease obligations | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash and cash equivalents | |||||||||||
Net increase (decrease) in cash and cash equivalents | ( | ||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ |
Three Months Ended June 27, 2020 | Three Months Ended June 29, 2019 | |||||||||||||||||||||||||
Business (in millions) | United States | International | Total | United States | International | Total | ||||||||||||||||||||
Diagnostics: | ||||||||||||||||||||||||||
Cytology & Perinatal | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Molecular Diagnostics | ||||||||||||||||||||||||||
Blood Screening | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Breast Health: | ||||||||||||||||||||||||||
Breast Imaging | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Interventional Breast Solutions | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
GYN Surgical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Medical Aesthetics | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Skeletal Health | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Nine Months Ended June 27, 2020 | Nine Months Ended June 29, 2019 | |||||||||||||||||||||||||
Business (in millions) | United States | International | Total | United States | International | Total | ||||||||||||||||||||
Diagnostics: | ||||||||||||||||||||||||||
Cytology & Perinatal | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Molecular Diagnostics | ||||||||||||||||||||||||||
Blood Screening | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Breast Health: | ||||||||||||||||||||||||||
Breast Imaging | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Interventional Breast Solutions | ||||||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
GYN Surgical | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Medical Aesthetics | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
Skeletal Health | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||
$ | $ | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Geographic Regions (in millions) | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||
United States | $ | $ | $ | $ | ||||||||||||||||
Europe | ||||||||||||||||||||
Asia-Pacific | ||||||||||||||||||||
Rest of World | ||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended | Nine Months Ended | |||||||||||||||||||
Revenue by type (in millions) | June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||
Capital equipment, components and software | $ | $ | $ | $ | ||||||||||||||||
Consumables | ||||||||||||||||||||
Service | ||||||||||||||||||||
Other | ||||||||||||||||||||
$ | $ | $ | $ |
Balance Sheet Location | Operating Leases | Finance Lease | ||||||||||||
Assets | ||||||||||||||
Lease right-of-use assets | Other assets | $ | $ | — | ||||||||||
Liabilities | ||||||||||||||
Operating lease liabilities (current) | Accrued expenses | $ | $ | — | ||||||||||
Finance lease liabilities (current) | Finance lease obligations - short term | $ | — | $ | ||||||||||
Operating lease liabilities (non-current) | Other long-term liabilities | $ | $ | — | ||||||||||
Finance lease liabilities (non-current) | Finance lease obligations - long term | $ | — | $ |
As of June 27, 2020 | |||||||||||
Operating Leases | Finance Lease | ||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate | % | % |
Three Months Ended June 27, 2020 | Nine Months Ended June 27, 2020 | ||||||||||
Operating lease cost (a) | $ | $ | |||||||||
Finance lease cost - amortization of right-of-use assets | $ | $ | |||||||||
Finance lease cost - interest cost | $ | $ | |||||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||||||
Operating cash flows from finance leases | $ | $ | |||||||||
Operating cash flows from operating leases | $ | $ | |||||||||
Financing cash flows from finance leases | $ | $ | |||||||||
Total cash paid for amounts included in the measurement of lease liabilities | $ | $ | |||||||||
ROU assets arising from entering into new operating lease obligations | $ | $ |
Fiscal Year | Operating Leases | Finance Lease | |||||||||
2020 remaining | $ | $ | |||||||||
2021 | |||||||||||
2022 | |||||||||||
2023 | |||||||||||
2024 | |||||||||||
Thereafter | |||||||||||
Total future minimum lease payments | |||||||||||
Less: imputed interest | ( | ( | |||||||||
Present value of lease liabilities | $ | $ |
Fair Value at Reporting Date Using | |||||||||||||||||||||||
Balance as of June 27, 2020 | Quoted Prices in Active Market for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
Assets: | |||||||||||||||||||||||
Foreign currency option contracts | |||||||||||||||||||||||
Forward foreign currency contracts | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Liabilities: | |||||||||||||||||||||||
Contingent consideration | $ | $ | $ | ||||||||||||||||||||
Interest rate swaps - derivative | |||||||||||||||||||||||
Forward foreign currency contracts | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Cash | $ | ||||
Accounts receivable | |||||
Inventory | |||||
Other assets | |||||
Accounts payable and accrued expenses | ( | ||||
Long-term debt | ( | ||||
Identifiable intangible assets: | |||||
Developed technology | |||||
In-process research and development | |||||
Trade names | |||||
Deferred income taxes, net | ( | ||||
Goodwill | |||||
Purchase Price | $ |
Cash | $ | ||||
Accounts receivable | |||||
Inventory | |||||
Property, plant and equipment | |||||
Other assets | |||||
Accounts payable and accrued expenses | ( | ||||
Deferred revenue | ( | ||||
Short and long-term debt | ( | ||||
Other liabilities | ( | ||||
Identifiable intangible assets: | — | ||||
Developed technology | |||||
Customer relationships | |||||
Trade names | |||||
Deferred income taxes, net | ( | ||||
Goodwill | |||||
Purchase Price | $ |
Assets: | ||||||||
Cash | $ | |||||||
Accounts Receivable | ||||||||
Inventory | ||||||||
Prepaid expenses and other current assets | ||||||||
Property, plant, and equipment | ||||||||
Intangible assets | ||||||||
Other assets | ||||||||
Total assets disposed of | $ | |||||||
Liabilities: | ||||||||
Accounts payable | $ | |||||||
Accrued expenses | ||||||||
Deferred revenue | ||||||||
Total liabilities disposed of | $ | |||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | |||||||||||||||||
Loss from operations | $ | $ | ( | $ | ( | $ | ( |
June 27, 2020 | September 28, 2019 | ||||||||||
Current debt obligations, net of debt discount and deferred issuance costs: | |||||||||||
Term Loan | $ | $ | |||||||||
Revolver | |||||||||||
Securitization Program | |||||||||||
Total current debt obligations | $ | $ | |||||||||
Long-term debt obligations, net of debt discount and deferred issuance costs: | |||||||||||
Term Loan | |||||||||||
2025 Senior Notes | |||||||||||
2028 Senior Notes | |||||||||||
Total long-term debt obligations | $ | $ | |||||||||
Total debt obligations | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Interest expense | $ | $ | $ | $ | |||||||||||||||||||
Weighted average interest rate | % | % | % | % | |||||||||||||||||||
Interest rate at end of period | % | % | % | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||||||||
Interest Rate | Interest Expense | Interest Expense | Interest Expense | Interest Expense | |||||||||||||||||||||||||
2028 Senior Notes | % | $ | $ | $ | $ | ||||||||||||||||||||||||
2025 Senior Notes | % | ||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Amount of realized (loss) gain recognized in income | |||||||||||||||||||||||
Forward foreign currency contracts | $ | $ | $ | $ | |||||||||||||||||||
Foreign currency option contracts | ( | ( | |||||||||||||||||||||
Total | $ | $ | $ | ( | $ | ||||||||||||||||||
Amount of unrealized (loss) gain recognized in income | |||||||||||||||||||||||
Forward foreign currency contracts | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Foreign currency option contracts | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( | |||||||||||||||
Balance Sheet Location | June 27, 2020 | September 28, 2019 | |||||||||||||||
Assets: | |||||||||||||||||
Derivative instruments designated as a cash flow hedge: | |||||||||||||||||
Interest rate cap agreements | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Interest rate swap contract | Other assets | ||||||||||||||||
$ | $ | ||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward foreign currency contracts | Prepaid expenses and other current assets | $ | $ | ||||||||||||||
Foreign currency option contracts | Prepaid expenses and other current assets | ||||||||||||||||
$ | $ | ||||||||||||||||
Liabilities: | |||||||||||||||||
Derivative instruments designated as a cash flow hedge: | |||||||||||||||||
Interest rate swap contract | Accrued expenses | $ | $ | ||||||||||||||
Interest rate swap contract | Other long-term liabilities | ||||||||||||||||
Total | $ | $ | |||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||
Forward foreign currency contracts | Accrued expenses | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Amount of loss recognized in other comprehensive income, net of taxes: | |||||||||||||||||||||||
Interest rate swap | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Interest rate cap agreements | ( | ( | ( | ( | |||||||||||||||||||
Total | $ | ( | $ | ( | $ | ( | $ | ( |
Derivatives not classified as hedging instruments | Amount of (Loss) Gain Recognized in Income | ||||||||||||||||||||||
Three Months Ended June 27, 2020 | Three Months Ended June 29, 2019 | Nine Months Ended June 27, 2020 | Nine Months Ended June 29, 2019 | ||||||||||||||||||||
Forward foreign currency contracts | $ | ( | $ | $ | $ | ||||||||||||||||||
Foreign currency option contracts | ( | ( | |||||||||||||||||||||
Total | $ | ( | $ | $ | ( | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Basic weighted average common shares outstanding | |||||||||||||||||||||||
Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units | |||||||||||||||||||||||
Diluted weighted average common shares outstanding | |||||||||||||||||||||||
Weighted-average anti-dilutive shares related to: | |||||||||||||||||||||||
Outstanding stock options | |||||||||||||||||||||||
Stock Units |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Cost of revenues | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling and marketing | |||||||||||||||||||||||
General and administrative | |||||||||||||||||||||||
Restructuring | |||||||||||||||||||||||
$ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Risk-free interest rate | % | % | % | % | |||||||||||||||||||
Expected volatility | % | % | % | % | |||||||||||||||||||
Expected life (in years) | |||||||||||||||||||||||
Dividend yield | |||||||||||||||||||||||
Weighted average fair value of options granted | $ | $ | $ | $ |
June 27, 2020 | September 28, 2019 | ||||||||||
Inventories | |||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
$ | $ |
Property, plant and equipment | |||||||||||
Equipment | $ | $ | |||||||||
Equipment under customer usage agreements | |||||||||||
Building and improvements | |||||||||||
Leasehold improvements | |||||||||||
Land | |||||||||||
Furniture and fixtures | |||||||||||
Less – accumulated depreciation and amortization | ( | ( | |||||||||
$ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
Total revenues: | |||||||||||||||||||||||
Diagnostics | $ | $ | $ | $ | |||||||||||||||||||
Breast Health | |||||||||||||||||||||||
GYN Surgical | |||||||||||||||||||||||
Medical Aesthetics | |||||||||||||||||||||||
Skeletal Health | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Income (loss) from operations: | |||||||||||||||||||||||
Diagnostics | $ | $ | $ | $ | |||||||||||||||||||
Breast Health | ( | ||||||||||||||||||||||
GYN Surgical | ( | ||||||||||||||||||||||
Medical Aesthetics | ( | ( | ( | ( | |||||||||||||||||||
Skeletal Health | ( | ( | ( | ( | |||||||||||||||||||
$ | $ | $ | $ | ( | |||||||||||||||||||
Depreciation and amortization: | |||||||||||||||||||||||
Diagnostics | $ | $ | $ | $ | |||||||||||||||||||
Breast Health | |||||||||||||||||||||||
GYN Surgical | |||||||||||||||||||||||
Medical Aesthetics | |||||||||||||||||||||||
Skeletal Health | |||||||||||||||||||||||
$ | $ | $ | $ | ||||||||||||||||||||
Capital expenditures: | |||||||||||||||||||||||
Diagnostics | $ | $ | $ | $ | |||||||||||||||||||
Breast Health | |||||||||||||||||||||||
GYN Surgical | |||||||||||||||||||||||
Medical Aesthetics | |||||||||||||||||||||||
Skeletal Health | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
$ | $ | $ | $ |
June 27, 2020 | September 28, 2019 | ||||||||||
Identifiable assets: | |||||||||||
Diagnostics | $ | $ | |||||||||
Breast Health | |||||||||||
GYN Surgical | |||||||||||
Medical Aesthetics | |||||||||||
Skeletal Health | |||||||||||
Corporate | |||||||||||
$ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
United States | % | % | % | % | |||||||||||||||||||
Europe | % | % | % | % | |||||||||||||||||||
Asia-Pacific | % | % | % | % | |||||||||||||||||||
Rest of World | % | % | % | % | |||||||||||||||||||
% | % | % | % |
Description | As of June 27, 2020 | As of September 28, 2019 | |||||||||||||||||||||
Gross Carrying Value | Accumulated Amortization | Gross Carrying Value | Accumulated Amortization | ||||||||||||||||||||
Acquired intangible assets: | |||||||||||||||||||||||
Developed technology | $ | $ | $ | $ | |||||||||||||||||||
Customer relationships | |||||||||||||||||||||||
Trade names | |||||||||||||||||||||||
Distribution agreement | |||||||||||||||||||||||
Non-competition agreements | |||||||||||||||||||||||
Business licenses | |||||||||||||||||||||||
Total acquired intangible assets | $ | $ | $ | $ | |||||||||||||||||||
Internal-use software | |||||||||||||||||||||||
Capitalized software embedded in products | |||||||||||||||||||||||
Total intangible assets | $ | $ | $ | $ |
Remainder of Fiscal 2020 | $ | ||||
Fiscal 2021 | $ | ||||
Fiscal 2022 | $ | ||||
Fiscal 2023 | $ | ||||
Fiscal 2024 | $ |
Balance at Beginning of Period | Provisions | Acquired | Divested | Settlements/ Adjustments | Balance at End of Period | ||||||||||||||||||||||||||||||
Nine Months Ended: | |||||||||||||||||||||||||||||||||||
June 27, 2020 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||
June 29, 2019 | $ | $ | $ | $ | $ | ( | $ |
Three Months Ended June 27, 2020 | Nine Months Ended June 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation | Pension Plans | Hedged Interest Rate Caps | Hedged Interest Rate Swaps | Total | Foreign Currency Translation | Pension Plans | Hedged Interest Rate Caps | Hedged Interest Rate Swaps | Total | |||||||||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | |||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | ( | ( | ||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts reclassified to statement of income | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended June 29, 2019 | Nine Months Ended June 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||
Foreign Currency Translation | Pension Plans | Hedged Interest Rate Caps | Total | Foreign Currency Translation | Pension Plans | Hedged Interest Rate Caps | Total | ||||||||||||||||||||||||||||||||||||||||
Beginning Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | $ | ( | ||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ( | ( | ( | ( | |||||||||||||||||||||||||||||||||||||||||
Amounts reclassified to statement of income | |||||||||||||||||||||||||||||||||||||||||||||||
Ending Balance | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( | $ | ( |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Revenues | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Diagnostics | $ | 528.7 | 64.2 | % | $ | 298.6 | 35.0 | % | $ | 230.1 | 77.1 | % | $ | 1,149.5 | 47.3 | % | $ | 879.1 | 35.1 | % | $ | 270.4 | 30.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Breast Health | 111.6 | 13.6 | % | 208.1 | 24.4 | % | (96.5) | (46.4) | % | 506.8 | 20.9 | % | 614.0 | 24.5 | % | (107.2) | (17.5) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
GYN Surgical | 51.3 | 6.2 | % | 111.9 | 13.1 | % | (60.6) | (54.2) | % | 275.0 | 11.3 | % | 322.0 | 12.9 | % | (47.0) | (14.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Medical Aesthetics | — | — | % | 68.6 | 8.0 | % | (68.6) | (100.0) | % | 49.7 | 2.0 | % | 191.8 | 7.7 | % | (142.1) | (74.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Skeletal Health | 10.0 | 1.2 | % | 16.8 | 2.0 | % | (6.8) | (40.5) | % | 43.5 | 1.8 | % | 47.9 | 1.9 | % | (4.4) | (9.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 701.6 | 85.3 | % | $ | 704.0 | 82.5 | % | $ | (2.4) | (0.3) | % | $ | 2,024.5 | 83.3 | % | $ | 2,054.8 | 82.1 | % | $ | (30.3) | (1.5) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | June 27, 2020 | June 29, 2019 | ||||||||||||||||||||
United States | 80.2 | % | 74.7 | % | 76.3 | % | 74.3 | % | |||||||||||||||
Europe | 12.7 | % | 11.4 | % | 13.8 | % | 12.3 | % | |||||||||||||||
Asia-Pacific | 5.1 | % | 9.3 | % | 6.4 | % | 8.7 | % | |||||||||||||||
Rest of World | 2.0 | % | 4.6 | % | 3.5 | % | 4.7 | % | |||||||||||||||
100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Service and Other Revenues | $ | 121.3 | 14.7 | % | $ | 148.4 | 17.4 | % | $ | (27.1) | (18.3) | % | $ | 405.0 | 16.7 | % | $ | 446.6 | 17.9 | % | $ | (41.6) | (9.3) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Product Revenue | Amount | % of Product Revenue | Amount | % | Amount | % of Product Revenue | Amount | % of Product Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Product Revenues | $ | 225.1 | 32.1 | % | $ | 235.8 | 33.5 | % | $ | (10.7) | (4.5) | % | $ | 685.9 | 33.9 | % | $ | 700.8 | 34.1 | % | $ | (14.9) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Amortization of Intangible Assets | 62.9 | 9.0 | % | 78.6 | 11.2 | % | (15.7) | (20.0) | % | 189.4 | 9.4 | % | 239.9 | 11.7 | % | (50.5) | (21.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of Intangible Assets | — | — | % | — | — | % | — | — | % | 25.8 | 1.3 | % | 374.6 | 18.2 | % | (348.8) | (93.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 288.0 | 41.1 | % | $ | 314.4 | 44.7 | % | $ | (26.4) | (8.4) | % | $ | 901.1 | 44.5 | % | $ | 1,315.3 | 64.0 | % | $ | (414.2) | (31.5) | % | ||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Service Revenue | Amount | % of Service Revenue | Amount | % | Amount | % of Service Revenue | Amount | % of Service Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of Service and Other Revenue | $ | 68.8 | 56.8 | % | $ | 93.2 | 62.8 | % | $ | (24.4) | (26.2) | % | $ | 232.7 | 57.5 | % | $ | 264.7 | 59.3 | % | $ | (32.0) | (12.1) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | Amount | % of Total Revenue | Amount | % of Total Revenue | Amount | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating Expenses | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $ | 55.1 | 6.7 | % | $ | 61.4 | 7.2 | % | $ | (6.3) | (10.3) | % | $ | 165.5 | 6.8 | % | $ | 171.8 | 6.9 | % | $ | (6.3) | (3.7) | % | |||||||||||||||||||||||||||||||||||||||||||||||
Selling and marketing | 103.5 | 12.6 | % | 143.6 | 16.9 | % | (40.1) | (27.9) | % | 359.0 | 14.8 | % | 423.1 | 16.9 | % | (64.1) | (15.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
General and administrative | 105.3 | 12.8 | % | 79.9 | 9.4 | % | 25.4 | 31.8 | % | 260.3 | 10.7 | % | 248.5 | 9.9 | % | 11.8 | 4.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of intangible assets | 10.2 | 1.2 | % | 11.9 | 1.4 | % | (1.7) | (14.3) | % | 29.5 | 1.2 | % | 40.1 | 1.6 | % | (10.6) | (26.4) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment of intangible assets and equipment | — | — | % | — | — | % | — | — | % | 4.4 | 0.2 | % | 69.2 | 2.8 | % | (64.8) | (93.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Divestiture charges | 1.0 | 0.1 | % | 2.7 | 0.3 | % | (1.7) | (63.0) | % | 4.8 | 0.2 | % | 6.0 | 0.2 | % | (1.2) | (20.0) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 275.1 | 33.4 | % | $ | 299.5 | 35.1 | % | $ | (24.4) | (8.1) | % | $ | 823.5 | 33.9 | % | $ | 958.7 | 38.3 | % | $ | (135.2) | (14.1) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Interest Expense | $ | (27.4) | $ | (35.1) | $ | 7.7 | (21.9) | % | $ | (91.5) | $ | (106.0) | $ | 14.5 | (13.7) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Other Income, net | $ | 4.3 | $ | 2.9 | $ | 1.4 | 48.3 | % | $ | 0.1 | $ | 5.8 | $ | (5.7) | (98.3) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Provision (Benefit) for Income Taxes | $ | 32.0 | $ | 20.4 | $ | 11.6 | 56.9 | % | $ | (232.1) | $ | (54.9) | $ | (177.2) | ** |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 532.2 | $ | 305.4 | $ | 226.8 | 74.3 | % | $ | 1,163.2 | $ | 898.6 | $ | 264.6 | 29.4 | % | |||||||||||||||||||||||||||||||
Operating Income | $ | 233.9 | $ | 45.7 | $ | 188.2 | 411.8 | % | $ | 340.7 | $ | 120.1 | $ | 220.6 | 183.7 | % | |||||||||||||||||||||||||||||||
Operating Income as a % of Segment Revenue | 43.9 | % | 15.0 | % | 29.3 | % | 13.4 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 224.0 | $ | 325.4 | $ | (101.4) | (31.2) | % | $ | 862.8 | $ | 971.6 | $ | (108.8) | (11.2) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) | $ | (11.1) | $ | 97.5 | $ | (108.6) | (111.4) | % | $ | 158.6 | $ | 294.3 | $ | (135.7) | (46.1) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) as a % of Segment Revenue | (5.0) | % | 30.0 | % | 18.4 | % | 30.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 51.5 | $ | 112.2 | $ | (60.7) | (54.1) | % | $ | 275.9 | $ | 322.8 | $ | (46.9) | (14.5) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) | $ | (23.4) | $ | 22.5 | $ | (45.9) | (204.0) | % | $ | 32.0 | $ | 70.0 | $ | (38.0) | (54.3) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) as a % of Segment Revenue | (45.4) | % | 20.0 | % | 11.6 | % | 21.7 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | — | $ | 85.0 | $ | (85.0) | (100.0) | % | $ | 65.3 | $ | 238.6 | $ | (173.3) | (72.6) | % | |||||||||||||||||||||||||||||||
Operating Loss | $ | (1.0) | $ | (18.6) | $ | 17.6 | (94.6) | % | $ | (54.3) | $ | (517.6) | $ | 463.3 | (89.5) | % | |||||||||||||||||||||||||||||||
Operating Loss as a % of Segment Revenue | (100.0) | % | (21.8) | % | (83.2) | % | (216.9) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||
June 27, 2020 | June 29, 2019 | Change | June 27, 2020 | June 29, 2019 | Change | ||||||||||||||||||||||||||||||||||||||||||
Amount | Amount | Amount | % | Amount | Amount | Amount | % | ||||||||||||||||||||||||||||||||||||||||
Total Revenues | $ | 15.2 | $ | 24.4 | $ | (9.2) | (37.7) | % | $ | 62.3 | $ | 69.8 | $ | (7.5) | (10.7) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) | $ | (7.4) | $ | (1.8) | $ | (5.6) | (311.1) | % | $ | (4.8) | $ | (4.1) | $ | (0.7) | (17.1) | % | |||||||||||||||||||||||||||||||
Operating Income (Loss) as a % of Segment Revenue | (48.7) | % | (7.4) | % | (7.7) | % | (5.9) | % |
Period of Repurchase | Total Number of Shares Purchased (#) (1) | Average Price Paid Per Share ($) (1) | Total Number of Shares Purchased As Part of Publicly Announced Plans or Programs (#) (2) | Average Price Paid Per Share As Part of Publicly Announced Plans or Programs($) (2) | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under Our Programs (in millions) ($) (2) (3) | ||||||||||||||||||||||||
March 29, 2020 – April 25, 2020 | 1,764 | $ | 32.70 | — | $ | — | $ | 362.6 | |||||||||||||||||||||
April 26, 2020 – May 23, 2020 | 1,585 | 49.40 | — | — | 362.6 | ||||||||||||||||||||||||
May 24, 2020 – June 27, 2020 | 628 | 53.25 | — | — | 362.6 | ||||||||||||||||||||||||
Total | 3,977 | $ | 42.60 | — | $ | — | $ | 362.6 |
Incorporated by Reference | ||||||||||||||||||||
Exhibit Number | Exhibit Description | Form | Filing Date/ Period End Date | |||||||||||||||||
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31.2* | ||||||||||||||||||||
32.1** | ||||||||||||||||||||
32.2** | ||||||||||||||||||||
101.INS* | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||||||||||||||
101.SCH* | XBRL Taxonomy Extension Schema Document | |||||||||||||||||||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||||||||||||||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | |||||||||||||||||||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||||||||||||||
101.DEF* | XBRL Taxonomy Extension Definition |
Hologic, Inc. | |||||||||||
(Registrant) | |||||||||||
Date: | July 29, 2020 | /s/ Stephen P. MacMillan | |||||||||
Stephen P. MacMillan Chairman, President and Chief Executive Officer (Principal Executive Officer) | |||||||||||
Date: | July 29, 2020 | /s/ Karleen M. Oberton | |||||||||
Karleen M. Oberton | |||||||||||
Chief Financial Officer (Principal Financial Officer) |
/s/ Stephen P. MacMillan | |||||
Stephen P. MacMillan | |||||
Chairman, President and Chief Executive Officer |
/s/ Karleen M. Oberton | |||||
Karleen M. Oberton | |||||
Chief Financial Officer |
Dated: July 29, 2020 | /s/ Stephen P. MacMillan | ||||
Stephen P. MacMillan | |||||
Chairman, President and Chief Executive Officer |
Dated: July 29, 2020 | /s/ Karleen M. Oberton | ||||
Karleen M. Oberton | |||||
Chief Financial Officer |
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Revenues: | ||||
Product | $ 701.6 | $ 704.0 | $ 2,024.5 | $ 2,054.8 |
Service and other | 121.3 | 148.4 | 405.0 | 446.6 |
Revenues | 822.9 | 852.4 | 2,429.5 | 2,501.4 |
Costs of revenues: | ||||
Product | 225.1 | 235.8 | 685.9 | 700.8 |
Amortization, Cost of Goods Sold | 62.9 | 78.6 | 189.4 | 239.9 |
Impairment of intangible assets and equipment | 0.0 | 0.0 | 25.8 | 374.6 |
Service and other | 68.8 | 93.2 | 232.7 | 264.7 |
Gross profit | 466.1 | 444.8 | 1,295.7 | 921.4 |
Operating expenses: | ||||
Research and development | 55.1 | 61.4 | 165.5 | 171.8 |
Selling and marketing | 103.5 | 143.6 | 359.0 | 423.1 |
General and administrative | 105.3 | 79.9 | 260.3 | 248.5 |
Amortization of acquired intangible assets | 10.2 | 11.9 | 29.5 | 40.1 |
Impairment of intangible assets and equipment | 0.0 | 0.0 | 4.4 | 69.2 |
Restructuring and divestiture charges | 1.0 | 2.7 | 4.8 | 6.0 |
Operating expenses | 275.1 | 299.5 | 823.5 | 958.7 |
Income (loss) from operations | 191.0 | 145.3 | 472.2 | (37.3) |
Interest income | 0.5 | 1.2 | 4.0 | 3.3 |
Interest expense | (27.4) | (35.1) | (91.5) | (106.0) |
Debt extinguishment loss | 0.0 | 0.0 | 0.0 | (0.8) |
Other income, net | 4.3 | 2.9 | 0.1 | 5.8 |
Income (loss) before income taxes | 168.4 | 114.3 | 384.8 | (135.0) |
Provision (benefit) for income taxes | 32.0 | 20.4 | (232.1) | (54.9) |
Net income (loss) | 136.4 | 93.9 | 616.9 | (80.1) |
Noncontrolling Interest in Net Income (Loss) Other Noncontrolling Interests, Redeemable | (1.5) | (3.4) | 0.0 | |
Net income | $ 137.9 | $ 93.9 | $ 620.3 | $ (80.1) |
Net income (loss) per common share attributable to Hologic: | ||||
Basic (in usd per share) | $ 0.53 | $ 0.35 | $ 2.35 | $ (0.30) |
Diluted (in usd per share) | $ 0.53 | $ 0.35 | $ 2.34 | $ (0.30) |
Weighted average number of shares outstanding: | ||||
Basic (in shares) | 259,870 | 268,932 | 263,667 | 269,586 |
Diluted (in shares) | 261,047 | 270,789 | 265,092 | 269,586 |
Consolidated Statements of Comprehensive Loss (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
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Statement of Comprehensive Income [Abstract] | ||||
Change in value of hedged interest rate swap and interest rate cap, tax | $ (1.5) | $ 0.4 | $ (7.9) | $ 1.2 |
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions |
Jun. 27, 2020 |
Sep. 28, 2019 |
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Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 27.2 | $ 17.8 |
Preferred stock, par value (in dollars per share) | $ 10,000.00 | $ 10,000.00 |
Preferred stock, authorized (in shares) | 1,623,000,000 | 1,623,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 10,000.00 | $ 10,000.00 |
Common stock, authorized (in shares) | 750,000,000,000 | 750,000,000,000 |
Common stock, issued (in shares) | 294,684,000,000 | 292,323,000,000 |
Treasury stock (in shares) | 35,941,000,000 | 24,638,000,000 |
Basis of Presentation |
3 Months Ended |
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Mar. 28, 2020 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements of Hologic, Inc. (“Hologic” or the “Company”) presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and do not include all of the information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related notes for the fiscal year ended September 28, 2019 included in the Company’s Form 10-K filed with the SEC on November 27, 2019. In the opinion of management, the financial statements and notes contain all adjustments (consisting of normal recurring accruals and all other necessary adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company and its wholly-owned and majority-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with GAAP requires management to make significant estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from management’s estimates if past experience or other assumptions do not turn out to be substantially accurate. Operating results for the three and nine months ended June 27, 2020 are not necessarily indicative of the results to be expected for any other interim period or the entire fiscal year ending September 26, 2020. COVID-19 Considerations The pandemic caused by the spread of the novel strain of coronavirus disease 2019 ("COVID-19") has created significant volatility, uncertainty and economic disruption in the markets the Company sells its products into, primarily the U.S., Europe and Asia-Pacific. In the second and third quarters of fiscal 2020, the spread of COVID-19 has negatively impacted business and healthcare activity globally. As healthcare systems respond to the increasing demands of managing COVID-19 and the resulting economic uncertainties, governments around the world have imposed measures designed to reduce the transmission of COVID-19, and individuals are responding to the fears of contracting COVID-19. In particular, elective procedures and exams have been and continue to be delayed or cancelled, there has been a significant reduction in physician office visits, and hospitals have postponed or cancelled capital purchases as well as limited or eliminated services, however in the second half of the third quarter of fiscal 2020, the Company started to see a recovery of elective procedures and exams. These responses have had, and the Company believes will continue to have, a negative impact on the Company's operating results and cash flows. However, the impact of the Company's commercial release of its COVID assays more than offset these impacts, as the Company generated significant revenue from the sales of these assays in the third quarter of fiscal 2020.The negative effects of COVID-19 and the associated economic disruptions were felt primarily beginning in the second half of March in many of the Company's end-markets and earlier in Asia, primarily China, and the effect to the Company's legacy products in the third fiscal quarter was significant. The Company believes the impact on its businesses may begin to lessen in the fourth quarter and continue to do so in subsequent periods, however, the impacts on these periods could continue to be significant. While the Company's results of operations and cash flows in the third quarter of fiscal 2020 were positively impacted by the sale of its COVID assays, the COVID-19 pandemic could have an adverse impact on its operating results, cash flows and financial condition in the future. The factors that could create such adverse impact include: the severity and duration of the COVID-19 pandemic; continued demand for COVID-19 testing; competition from existing and new COVID-19 testing technologies and products; the COVID-19 pandemic’s impact on the U.S. and international healthcare system, the U.S. economy and worldwide economy; and the timing, scope and effectiveness of U.S. and international governmental responses to the COVID-19 pandemic and associated economic disruptions. In addition to adversely affecting demand for the Company's products, other than its COVID assays, COVID-19 and associated economic disruptions could continue to have an adverse impact on the Company's supply chains and distribution systems, including as a result of impacts associated with preventive and precautionary measures that it, other businesses and governments have taken and will take. A reduction or interruption in any of the Company's manufacturing processes could have a material adverse effect on its business. The Company expects that the uncertainty surrounding world financial markets and deteriorating worldwide macroeconomic conditions resulting from the pandemic have caused and may continue to cause the purchasers of medical equipment to decrease their medical equipment purchasing and procurement activities. Additionally, the pandemic has caused and may further cause constrictions in world credit markets that have and could cause its customers to experience increased difficulty in paying their existing obligations to the Company or in securing the financing necessary to purchase the Company's products. Economic uncertainty has and may continue to result in cost-conscious consumers focusing on acute care rather than wellness, which would also continue to adversely affect demand for the Company's products. As the Company assessed the potential longer term economic and capital market uncertainties resulting from the COVID-19 pandemic, at the end of March 2020 the Company suspended its accounts receivable securitization program and borrowed $750.0 million under its revolver. The Company used $250.0 million of these proceeds to pay off all amounts then owed under its accounts receivable securitization agreement and retained the balance as cash reserve. As of the end of the third quarter of fiscal 2020, the Company repaid $250.0 million of the $750.0 million borrowed under its revolver. As of June 27, 2020 the Company had an additional $1 billion available under its revolver and $744.2 million of cash on hand. In response to the negative impact of COVID-19 on the Company's business, in April 2020 the Company initiated cost-cutting measures, which included not only reducing discretionary and variable spend, such as travel, marketing programs and the use of contractors, consultants and temporary help, but the Company also implemented employee furloughs, salary cuts primarily in the U.S., reduced hours and in certain instances employee terminations. As of the end of the third quarter of fiscal 2020, substantially all of the Company's employee cost-cutting measures ceased. Further, the Company shut down certain manufacturing facilities temporarily and implemented reduced work-week schedules in response to lower near-term demand for many of its products. The Company has also taken measures to ensure the safety of its employees and to comply with governmental orders. These measures could require that the Company's employees continue to work remotely or otherwise refrain from reporting to their normal workplace for extended periods of time, which in turn could result in a decrease in its commercial and marketing activities. During the second quarter of fiscal 2020, the FDA granted Emergency Use Authorization (EUA) for the Company's Panther Fusion SARS-CoV-2 assay for testing for the COVID-19 virus. During the third quarter of fiscal 2020, the FDA granted Emergency Use Authorization for the Company's Aptima SARS-CoV-2 assay which runs on the Company's more widely distributed Panther instrument. Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new lease standard on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods were presented in accordance with the existing lease guidance under ASC Topic 840, Leases (ASC 840). Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component. Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not expect to have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract. Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million, respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million, respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard. The Company’s adoption of ASC 842 is more fully described in Note 3. In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The guidance requires certain changes to the presentation of hedge accounting in the financial statements and also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. The Company adopted the standard in the first quarter of fiscal 2020. The adoption of ASU 2017-12 did not have a material effect on the Company's consolidated financial statements. Subsequent Events Consideration The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence for certain estimates or to identify matters that may require additional disclosure. Subsequent events have been evaluated as required. There were no material recognized or unrecognized subsequent events affecting the unaudited consolidated financial statements as of and for the three and nine months ended June 27, 2020.
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of June 27, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of June 27, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of June 27, 2020 was 2.6%. The following table presents supplemental balance sheet information related to the Company's operating and finance leases:
The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:
The following table provides information related to the Company’s operating and finance leases:
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and nine months ended June 27, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for both the three and nine months ended June 27, 2020. In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $19.7 million as of June 27, 2020.
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Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of June 27, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of June 27, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of June 27, 2020 was 2.6%. The following table presents supplemental balance sheet information related to the Company's operating and finance leases:
The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:
The following table provides information related to the Company’s operating and finance leases:
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and nine months ended June 27, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for both the three and nine months ended June 27, 2020. In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $19.7 million as of June 27, 2020.
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Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of June 27, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of June 27, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of June 27, 2020 was 2.6%. The following table presents supplemental balance sheet information related to the Company's operating and finance leases:
The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:
The following table provides information related to the Company’s operating and finance leases:
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and nine months ended June 27, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for both the three and nine months ended June 27, 2020. In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $19.7 million as of June 27, 2020.
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Leases | Leases Lessee Activity - Leases where Hologic is the Lessee The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of June 27, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of June 27, 2020. Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of June 27, 2020 was 2.6%. The following table presents supplemental balance sheet information related to the Company's operating and finance leases:
The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively. The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:
The following table provides information related to the Company’s operating and finance leases:
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and nine months ended June 27, 2020. The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
Lessor Activity - Leases where Hologic is the Lessor Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for both the three and nine months ended June 27, 2020. In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which is $19.7 million as of June 27, 2020.
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Fair Value Measurements |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | Fair Value Measurements Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company has investments in derivative instruments consisting of interest rate caps, interest rate swaps and foreign currency contracts, which are valued using analyses obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 assets. The fair values of the Company's interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 8 for further discussion and information on derivative instruments. Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at June 27, 2020:
Assets Measured and Recorded at Fair Value on a Recurring Basis The Company had contingent consideration liabilities related to its Emsor S.A. and Faxitron Bioptics, LLC acquisitions. The Company settled these obligations for $9.8 million in the second quarter of fiscal 2019. Assets Measured and Recorded at Fair Value on a Nonrecurring Basis The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets consist of equity investments and long-lived assets, including property, plant and equipment, intangible assets and goodwill. There were no such remeasurements for equity investments in the three and nine months ended June 27, 2020 and June 29, 2019. During the first quarter of fiscal 2020, the Company's Medical Aesthetics division met the criteria to be classified as assets-held-for sale and the Company recorded a $30.2 million loss to record the asset group at its fair value less costs to sell. This is a level 1 measurement. See Note 6 for additional information. During the second quarter of fiscal 2019, the Company identified indicators of impairment related to its long-lived assets of its Medical Aesthetics reportable segment and recorded impairment charges of $443.8 million, of which $437.0 million was allocated to intangible assets and $6.8 million was allocated to equipment. This was a level 3 measurement. See Note 15. Disclosure of Fair Value of Financial Instruments The Company’s financial instruments mainly consist of cash and cash equivalents, accounts receivable, equity investments, interest rate caps, interest rate swaps, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s interest rate caps, interest rate swaps, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts is recorded at the cash surrender value, as required by GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value. Amounts outstanding under the Company’s 2018 Credit Agreement (as defined below) of $2.0 billion aggregate principal as of June 27, 2020 are subject to variable interest rates, which are based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 2025 Senior Notes and 2028 Senior Notes had fair values of $959.7 million and $418.0 million, respectively, as of June 27, 2020 based on their trading prices, representing Level 1 measurements. Refer to Note 7 for the carrying amounts of the various components of the Company’s debt.
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Business Combinations |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations | Business Combinations Focal Therapeutics On October 1, 2018, the Company completed the acquisition of Focal Therapeutics, Inc. ("Focal") for a purchase price of $120.1 million, which included hold-backs of $14.0 million payable up to one year from the date of acquisition. In the second quarter of fiscal 2019, $1.5 million of the hold-back was paid, and the remaining $12.5 million was paid in the first quarter of fiscal 2020. Focal, headquartered in California, manufactures and markets its BioZorb marker, which is an implantable three-dimensional marker that helps clinicians overcome certain challenges in breast conserving surgery. The total purchase price was allocated to Focal's tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of October 1, 2018, as set forth below:
In performing the purchase price allocation, the Company considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of Focal's business. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, in-process research and development ("IPR&D"), and trade names. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using rates ranging from 15.5% to 16.5%. The cash flows were based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The weighted average life of developed technology and trade names was 11 years and 13 years, respectively. The calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill. The factors contributing to the recognition of the amount of goodwill were based on synergistic benefits that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breast Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes. SuperSonic Imagine On August 1, 2019, the Company purchased 46% of the outstanding shares of SuperSonic Imagine ("SSI") for $18.2 million. SSI is a public company located in Aix-en-Provence, France that manufactures and markets ultrasound medical imaging equipment. In September 2019, the Company launched a cash tender offer to acquire the remaining outstanding shares for a price of €1.50 per share in cash. The Company determined that SSI was a Variable Interest Entity (“VIE”) but it was not the primary beneficiary as it was not a party to the initial design of the entity nor did it have control over SSI's operations until November 21, 2019 when the Company's ownership of SSI's voting stock exceeded 50%. Accordingly, the Company initially accounted for this investment under the equity method of accounting and included its proportionate share of SSI's net loss of $3.3 million for the two months ended September 28, 2019 within Other income (expense), net. On November 21, 2019, the Company acquired an additional 7.6 million shares of SSI for $12.6 million. As a result, the Company owned approximately 78% of the outstanding shares of SSI at November 21, 2019 and controlled SSI's voting interest and operations. The Company performed purchase accounting as of November 21, 2019 and beginning on that date the financial results of SSI are included within the Company's consolidated financial statements. The Company remeasured the initial investment of 46% of the outstanding shares of SSI to its fair value at the acquisition date, resulting in a gain of $3.2 million recorded in the first quarter of fiscal 2020. The total accounting purchase price was $69.3 million, which consisted of $17.9 million for the equity method investment in SSI, $12.6 million for shares acquired on November 21, 2019, $30.2 million for loans the Company provided to SSI prior to the acquisition that are considered forgiven, and $8.6 million representing the fair value of the noncontrolling interest as of November 21, 2019. As of June 27, 2020, the Company owned approximately 81% of the outstanding shares of SSI. The total purchase price was allocated to SSI's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of November 21, 2019, as set forth below. The preliminary purchase price allocation is as follows:
In performing the preliminary purchase price allocation, the Company considered, among other factors, the intended future use of acquired assets, analysis of historical financial performance and estimates of future performance of SSI's business. The Company has not yet obtained all of the information related to the fair value of the acquired assets and liabilities, primarily income taxes and recognition of uncertain tax positions, to finalize the purchase price allocation. As part of the preliminary purchase price allocation, the Company has determined the identifiable intangible assets are developed technology, customer relationships, and trade names. The preliminary fair value of the intangible assets has been estimated using the income approach, and the cash flow projections were discounted using a 12.0% rate. The cash flows are based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The weighted average life for the developed technology is 9 years, customer relationships is 9 years and trade names is 8.6 years. The preliminary calculation of the excess of the purchase price over the estimated fair value of the tangible net assets and intangible assets acquired was recorded to goodwill. The factors contributing to the recognition of the preliminary amount of goodwill are based on synergistic benefits of SSI's products being complementary to Breast Health's 3D mammography systems and using the Company's existing U.S. sales force as SSI's presence in the U.S. is limited. None of the goodwill is expected to be deductible for income tax purposes. Alpha Imaging On December 30, 2019, the Company completed the acquisition of assets from Alpha Imaging, LLC ("Alpha Imaging"), for a purchase price of $18.0 million, which included a hold-back of $1.0 million and contingent consideration which the Company has estimated at $0.9 million. The contingent consideration is payable upon shipment of backlog orders entered into by Alpha Imaging prior to the acquisition. Alpha Imaging was a long-standing distributor of the Company's Breast and Skeletal products in the U.S. Based on the Company's preliminary valuation, it has allocated $18.1 million of the purchase price to a customer relationships intangible asset, which has a useful life of 5 years. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities. Health Beacons On February 3, 2020, the Company completed the acquisition of Health Beacons, Inc. ("Health Beacons"), for a purchase price of $19.3 million, which included hold-backs of $2.3 million that are payable up to eighteen months from the date of acquisition. Health Beacons manufactures the LOCalizer product. Based on the Company's preliminary valuation, it has allocated $10.7 million of the purchase price to the preliminary value of intangible assets and $5.7 million to goodwill. The remaining $2.9 million of the purchase price has been allocated to acquired tangible assets and liabilities. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities.
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Disposition |
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Discontinued Operations and Disposal Groups [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dispositions | Disposition Sale of Medical Aesthetics On November 20, 2019, the Company entered into a definitive agreement to sell its Medical Aesthetics business to Clayton Dubilier & Rice ("CD&R") for a sales price of $205.0 million in cash, less certain adjustments. The sale was completed on December 30, 2019, and the Company received cash proceeds of $153.4 million. The sale price remains subject to adjustment pursuant to the terms of the definitive agreement. The Company agreed to provide certain transition services for three to fifteen months, depending on the nature of the service. The Company also agreed to indemnify CD&R for certain legal and tax matters that existed as of the date of disposition. In connection with its accounting for the sale, the Company recorded indemnification liabilities of $10.9 million within accrued expenses associated with its obligations under the sale agreement. As a result of this transaction, the Medical Aesthetics asset group was designated as assets held-for-sale in the first quarter of fiscal 2020. Pursuant to ASC 360, asset groups under this designation are required to be recorded at fair value less costs to sell. The Company determined that this disposal did not qualify as a discontinued operation as the sale of the Medical Aesthetics business was deemed to not be a strategic shift having or will have a major effect on the Company's operations and financial results. Based on the terms in the agreement of the sales price and formula for net working capital and related adjustments, its estimate of the fair value for transition services and the amount that must be carved out of the sale proceeds, and liabilities the Company will retain or for which it has agreed to indemnify CD&R, the Company recorded an impairment charge of $30.2 million in the first quarter of fiscal 2020. The impairment charge was allocated to Medical Aesthetics long-lived assets, of which $25.8 million was allocated to cost of product revenues and $4.4 million to operating expenses. The Company is currently in the process of evaluating adjustments to the final sales price. The assets and liabilities of the disposed business at the date of disposition were as follows:
Loss from operations of the disposed business presented below represents the operating loss of the business as it was operated prior to the date of disposition. The operating expenses include only those that were incurred directly by and were retained by the disposed business. As noted above, the Company is performing a number of transition services and the financial impact from these services are not included in the amounts presented below. In addition, the Company will continue to incur expenses related to this business under the indemnification provisions primarily related to legal and tax matters that existed as of the date of disposition, which it will continue to report in the Medical Aesthetic reportable segment. In the second quarter of fiscal 2020, the Company recorded accelerated stock compensation in connection with the disposition, legal expenses for retained cases and other adjustments totaling $2.4 million, which is not included below. In the third quarter of fiscal 2020, the Company recorded $1.0 million primarily related to legal expenses and settlements. Loss from operations of the disposed business for the three and nine month periods ended June 27, 2020 and June 29, 2019 was as follows:
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Borrowings and Credit Arrangements |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following:
2018 Amended and Restated Credit Agreement On December 17, 2018, the Company and certain of its subsidiaries refinanced its term loan and revolving credit facility by entering into an Amended and Restated Credit and Guaranty Agreement as of December 17, 2018 (the "2018 Credit Agreement") with Bank of America, N.A. in its capacity as Administrative Agent, Swing Line Lender and L/C Issuer, and certain other lenders. The 2018 Credit Agreement amended and restated the Company's prior credit and guaranty agreement dated as of October 3, 2017 (the "2017 Credit Agreement"). The borrowings of the 2018 Amended Term Loan bear interest at an annual rate equal to the Eurocurrency Rate (i.e., the LIBOR rate) plus an Applicable Rate, which was equal to 1.375% as of June 27, 2020. The borrowings of the 2018 Amended Revolver bear interest at a rate equal to the LIBOR Daily Floating Rate plus an Applicable Rate equal to 1.375%. Pursuant to ASC 470, Debt (ASC 470), the accounting related to entering into the 2018 Credit Agreement and using the proceeds to pay off the 2017 Credit Agreement was evaluated on a creditor-by-creditor basis to determine whether each transaction should be accounted for as a modification or extinguishment. Certain creditors under the 2017 Credit Agreement did not participate in this refinancing transaction and ceased being creditors of the Company. As a result, the Company recorded a debt extinguishment loss of $0.8 million in the first quarter of fiscal 2019. For the remainder of the creditors, this transaction was accounted for as a modification because on a creditor-by-creditor basis the present value of the cash flows between the two debt instruments before and after the transaction was less than 10%. Pursuant to ASC 470, subtopic 50-40, third-party costs of $0.8 million related to this transaction were recorded as interest expense and $1.9 million was recorded as a reduction to debt representing deferred issuance costs and debt discount for fees paid directly to the lenders. In response to the market uncertainties created by the COVID-19 pandemic in March 2020, the Company borrowed $750 million under its revolver, $250 million of which was used to pay off amounts outstanding under the asset securitization agreement, in order to have sufficient cash on hand. During the third quarter of fiscal 2020, the Company paid down$250.0 million on its revolver, and it intends to repay the remainder within one year. The Company has $1.0 billion available under its revolver as of June 27, 2020. Interest expense, weighted average interest rates, and the interest rate at the end of period under the Credit Agreements were as follows:
The 2018 Credit Agreement contains two financial covenants; a total leverage ratio and an interest coverage ratio, both of which are measured as of the last day of each fiscal quarter. These terms, and calculations thereof, are defined in further detail in the 2018 Credit Agreement. As of June 27, 2020, the Company was in compliance with these covenants. Senior Notes On October 10, 2017, the Company completed a private placement of $350 million aggregate principal amount of its 4.375% Senior Notes due 2025 (the "2025 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2025 Senior Notes. On January 19, 2018, the Company completed a private placement of $1.0 billion aggregate principal amount of senior notes, allocated between (i) an additional $600 million aggregate principal amounts of its 2025 Senior Notes pursuant to a supplement to the indenture governing the Company's existing 2025 Senior Notes at an offering price of 100% of the aggregate principal amount of the 2025 Senior Notes and (ii) $400 million aggregate principal amounts of its 4.625% Senior Notes due 2028 (the "2028 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2028 Senior Notes. 2025 Senior Notes The total aggregate principal balance of 2025 Senior Notes is $950 million. The 2025 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries and mature on October 15, 2025. 2028 Senior Notes The aggregate principal balance of the 2028 Senior Notes is $400 million. The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries and mature on February 1, 2028. Interest expense for the 2028 Senior Notes and 2025 Senior Notes is as follows:
Accounts Receivable Securitization Program In response to the market uncertainties created by the COVID-19 pandemic, on March 26, 2020, the Company paid-off the total amount outstanding of $250.0 million previously borrowed under the Accounts Receivable Securitization Program (the "Securitization Program"). On April 13, 2020, the Company amended the Credit and Security agreement with the lenders, temporarily suspending the ability to borrow and the need to comply with covenants for up to a year. As of June 27, 2020, the Company did not have any borrowings under this program.
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Derivatives |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives | Derivatives Interest Rate Cap - Cash Flow Hedge The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposure to some of its interest rate risk through the use of interest rate caps, which are derivative financial instruments. The Company does not use derivatives for speculative purposes. For a derivative that is designated as a cash flow hedge, changes in the fair value of the derivative are recognized in accumulated other comprehensive income ("AOCI") to the extent the derivative is effective at offsetting the changes in the cash flows being hedged until the hedged item affects earnings. To the extent there is any hedge ineffectiveness, changes in fair value relating to the ineffective portion are immediately recognized in earnings in other income (expense), net in the Consolidated Statements of Operations. During fiscal 2018, the Company entered into separate interest rate cap agreements with multiple counter-parties to help mitigate the interest rate volatility associated with the variable interest rate on amounts borrowed under the term loan feature of its credit facilities (see Note 7). Interest rate cap agreements provide the right to receive cash if the reference interest rate rises above a contractual rate. The aggregate premium paid for these interest rate cap agreements was $3.7 million, which was the initial fair value of the instruments recorded in the Company's financial statements. During fiscal 2019, the Company entered into additional separate interest rate cap agreements with multiple counter-parties to extend the expiration date of its hedges by an additional year. The aggregate premium paid for these interest cap agreements was $1.5 million, which was the initial fair value of the instruments recorded in the Company’s financial statements. The critical terms of the interest rate caps were designed to mirror the terms of the Company’s LIBOR-based borrowings under its Credit Agreement, that has been amended multiple times, and therefore are highly effective at offsetting the cash flows being hedged. The Company designated these derivatives as cash flow hedges of the variability of the LIBOR-based interest payments on $1.0 billion of principal, which ended on December 27, 2019 for the contracts entered into in fiscal 2018, and which will end on December 23, 2020 for the interest rate cap agreements entered into in fiscal 2019. As of June 27, 2020, all changes in the fair value of the interest rate caps were recorded in the Consolidated Statements of Comprehensive Income (Loss). During the three and nine months ended June 27, 2020 and June 29, 2019, the Company reclassified $0.3 million and $2.0 million, respectively and $0.8 million and $2.0 million, respectively from AOCI to the Consolidated Statements of Operations related to the interest rate cap agreements. The Company expects to similarly reclassify a loss of approximately $0.8 million from AOCI to the Consolidated Statements of Operations in the next six months. The aggregate fair value of these interest rate caps was $0.0 million and $0.1 million at June 27, 2020 and September 28, 2019, respectively, and is included in prepaid expenses and other current assets on the Company’s Consolidated Balance Sheet. Refer to Note 4 “Fair Value Measurements” above for related fair value disclosures. Interest Rate Swap - Cash Flow Hedge In fiscal 2019, in order to hedge a portion of its variable rate debt beyond the contracted period under interest cap agreements, the Company entered into an interest rate swap contract with an effective date of December 23, 2020 and a termination date of December 17, 2023. The notional amount of this swap is $1.0 billion. The interest rate swap effectively fixes the LIBOR component of the variable interest rate on $1.0 billion of the notional amount under the 2018 Credit Agreement at 1.23%. The critical terms of the interest rate swap are designed to mirror the terms of the Company’s LIBOR-based borrowings under its credit agreement and therefore are highly effective at offsetting the cash flows being hedged. The Company designated this derivative as a cash flow hedge of the variability of the LIBOR-based interest payments on $1.0 billion of principal. Therefore, changes in the fair value of the swap are recorded in AOCI and were losses of $4.6 million and $25.4 million for the three and nine months ended June 27, 2020, respectively. The fair value of this derivative was in a liability position of $29.0 million as of June 27, 2020. Forward Foreign Currency Contracts and Foreign Currency Option Contracts The Company enters into forward foreign currency exchange contracts and foreign currency option contracts to mitigate certain operational exposures from the impact of changes in foreign currency exchange rates. Such exposures result from the portion of the Company's operations that are denominated in currencies other than the U.S. dollar, primarily the Euro, the UK Pound, the Australian dollar, the Canadian dollar, the Chinese Yuan and the Japanese Yen. These foreign currency exchange contracts are entered into to support transactions made in the ordinary course of business and are not speculative in nature. The contracts are generally for periods of one year or less. The Company did not elect hedge accounting for these contracts; however, the Company may seek to apply hedge accounting in future scenarios. The change in the fair value of these contracts is recognized directly in earnings as a component of other income (expense), net. The following table presents the change in fair value of these contracts recognized directly in earnings as a component of other income (expense), net:
As of June 27, 2020, the Company had outstanding forward foreign currency contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar of forecasted transactions denominated in the Australian dollar, Canadian Dollar, Chinese Yuan and Japanese Yen with an aggregate notional amount of $25.9 million. As of June 27, 2020, the Company had outstanding foreign currency option contracts that were not designated for hedge accounting and were used to hedge fluctuations in the U.S. dollar of forecasted transactions denominated in the Euro and UK Pound with a notional amount of $40.3 million. Financial Instrument Presentation The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of June 27, 2020:
The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods:
The following table presents the adjustment to fair value (realized and unrealized) recorded within the Consolidated Statements of Operations for derivative instruments for which the Company did not elect hedge accounting:
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Commitments and Contingencies |
9 Months Ended |
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Jun. 27, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation and Related Matters On November 6, 2015, the Company filed a suit against Minerva Surgical, Inc. (“Minerva”) in the United States District Court for the District of Delaware, alleging that Minerva’s endometrial ablation device infringes U.S. Patent 6,872,183 (the '183 patent), U.S. Patent 8,998,898 and U.S. Patent 9,095,348 (the '348 patent). On January 25, 2016, the Company amended the complaint to include claims against Minerva for unfair competition, deceptive trade practices and tortious interference with business relationships. On February 5, 2016, the Company filed a second amended complaint to additionally allege that Minerva’s endometrial ablation device infringes U.S. Patent 9,247,989 (the '989 patent). On March 4, 2016, Minerva filed an answer and counterclaims against the Company, seeking declaratory judgment on the Company’s claims and asserting claims against the Company for unfair competition, deceptive trade practices, interference with contractual relationships, breach of contract and trade libel. On June 2, 2016, the Court denied the Company’s motion for a preliminary injunction on its patent claims and denied Minerva’s request for preliminary injunction related to the Company’s alleged false and deceptive statements regarding the Minerva product. On June 28, 2018, the Court granted the Company's summary judgment motions on infringement and no invalidity with respect to the ‘183 and ‘348 patents. The Court also granted the Company’s motion for summary judgment on assignor estoppel, which bars Minerva’s invalidity defenses or any reliance on collateral findings regarding invalidity from inter partes review proceedings. The Court also denied all of Minerva’s defenses, including its motions for summary judgment on invalidity, non-infringement, no willfulness, and no unfair competition. On July 27, 2018, after a two-week trial, a jury returned a verdict that: (1) awarded the Company $4.8 million in damages for Minerva’s infringement; (2) found that Minerva’s infringement was not willful; and (3) found for the Company regarding Minerva’s counterclaims. Damages continued to accrue as Minerva continues its infringing conduct. On May 2, 2019, the Court issued rulings that denied the parties' post-trial motions, including the Company's motion for a permanent injunction seeking to prohibit Minerva from selling infringing devices. Both parties appealed the Court's rulings regarding the post-trial motions. On March 4, 2016, Minerva filed two petitions at the USPTO for inter partes review of the '348 patent. On September 12, 2016, the PTAB declined both petitions to review patentability of the '348 patent. On April 11, 2016, Minerva filed a petition for inter partes review of the '183 patent. On October 6, 2016, the PTAB granted the petition and instituted a review of the '183 patent. On December 15, 2017, the PTAB issued a final written decision invalidating all claims of the ‘183 patent. On February 9, 2018 the Company appealed this decision to the United States Court of Appeals for the Federal Circuit ("Court of Appeals"). On April 19, 2019, the Court of Appeals affirmed the PTAB's final written decision regarding the '183 patent. On July 16, 2019, the Court of Appeals denied the Company’s petition for rehearing in the appeal regarding the '183 patent. On April 22, 2020, the Court of Appeals affirmed the district court’s summary judgment ruling in favor of the Company of no invalidity and infringement, and summary judgment that assignor estoppel bars Minerva from challenging the validity of the ‘348 patent. The Court of Appeals also denied the Company’s motion for a permanent injunction and ongoing royalties for infringement of the ‘183 patent. The Court of Appeals denied Minerva’s arguments for no damages or, alternatively, a new trial. On May 22, 2020 both parties petitioned for en banc review of the Court of Appeals decision. On July 22, 2020, the Court of Appeals denied both parties' petitions for en banc review. On April 11, 2017, Minerva filed suit against the Company and Cytyc Surgical Products, LLC (“Cytyc”) in the United States District Court for the Northern District of California alleging that the Company’s and Cytyc’s NovaSure ADVANCED endometrial ablation device infringes Minerva’s U.S. patent 9,186,208. Minerva is seeking a preliminary and permanent injunction against the Company and Cytyc from selling this NovaSure device as well as enhanced damages and interest, including lost profits, price erosion and/or royalty. On January 5, 2018, the Court denied Minerva's motion for a preliminary injunction. On February 2, 2018, at the parties’ joint request, this action was transferred to the District of Delaware. On March 26, 2019, the Magistrate Judge issued a claims construction ruling regarding the disputed terms in the patent, which the District Court Judge adopted in all respects on October 21, 2019. The original trial date of July 20, 2020 was vacated. The next joint status report is due on September 25, 2020. At this time, based on available information regarding this litigation, the Company is unable to reasonably assess the ultimate outcome of this case or determine an estimate, or a range of estimates, of potential losses. On February 3, 2017, bioMérieux, S.A. and bioMérieux, Inc. (collectively “bioMérieux”) filed suit against the Company in the United States District Court for the Middle District of North Carolina ("MDNC"), alleging that the Company’s HIV products, including blood screening products previously manufactured by the Company for its former blood screening partner Grifols Diagnostic Solutions Inc. ("Grifols USA"), infringe U.S. Patent Nos. 8,697,352 and 9,074,262. On January 3, 2018, the MDNC Court granted the parties’ consent motion to transfer the case to Delaware. On June 11, 2019, the Court issued a claim construction ruling regarding the disputed terms in the patents. Motions for summary judgment were filed by the parties on September 30, 2019, and a hearing on these motions was held on December 18, 2019. A six-day trial concluded on February 25, 2020, with the jury finding that all claims of U.S. Patent No. 8,697,352 are invalid (U.S. Patent No. 9,074,262 was dropped from the case by bioMérieux prior to trial). On March 18, 2020, the parties agreed to a settlement under which bioMérieux agreed to dismiss all claims with prejudice and to waive the filing of post-trial motions and pursuing an appeal in exchange for a de minimis payment from the Company and Grifols USA. As described in Note 6, the Company has agreed to indemnify CD&R for certain legal matters related to the Medical Aesthetics business that existed at the date of disposition. The Company currently has $8.5 million accrued for such matters as of June 27, 2020, but this amount could become greater if some or all of the cases which it is indemnifying have an adverse result. The Company is a party to various other legal proceedings and claims arising out of the ordinary course of its business. The Company believes that except for those matters described above there are no other proceedings or claims pending against it the ultimate resolution of which could have a material adverse effect on its financial condition or results of operations. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred.
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Net Income (Loss) Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income (Loss) Per Share | Net Income Per Share A reconciliation of basic and diluted share amounts is as follows:
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations:
The Company granted options to purchase 0.9 million and 1.0 million shares of the Company's common stock during the nine months ended June 27, 2020 and June 29, 2019, respectively, with weighted-average exercise prices of $45.54 and $41.28, respectively. There were 4.7 million options outstanding at June 27, 2020 with a weighted-average exercise price of $39.98. The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table:
The Company granted 0.8 million and 0.9 million restricted stock units (RSUs) during the nine months ended June 27, 2020 and June 29, 2019, respectively, with weighted-average grant date fair values of $45.67 and $41.15 per unit, respectively. In addition, the Company granted 0.1 million and 0.1 million performance stock units (PSUs) during the nine months ended June 27, 2020 and June 29, 2019, respectively, to members of its senior management team, which have a weighted-average grant date fair value of $45.38 and $40.97 per unit, respectively. Each recipient of PSUs is eligible to receive between zero and 200% of the target number of shares of the Company’s common stock at the end of three years provided the Company’s defined Return on Invested Capital metrics are achieved. The Company also granted 0.1 million of PSUs based on a one-year free cash flow measure (FCF) to its senior management team, which had a grant date fair value of $45.38. Each recipient of FCF PSUs is eligible to receive between zero and 200% of the target number of shares of the Company's common stock at the end of the one-year measurement period, but the FCF PSUs vest at the end of the three year service period. The Company is recognizing compensation expense for PSUs and FCF PSUs ratably over the required service period based on its estimate of the number of shares that will vest. If there is a change in the estimate of the number of shares that are probable of vesting, the Company cumulatively adjusts compensation expense in the period that the change in estimate is made. The Company also granted 0.1 million and 0.1 million market-based awards (MSUs) to its senior management team during the nine months ended June 27, 2020 and June 29, 2019, respectively. Each recipient of MSUs is eligible to receive between zero and 200% of the target number of shares of the Company’s common stock at the end of three years based upon achieving a certain total shareholder return relative to a defined peer group. The MSUs were valued at $43.54 and $55.13 per share using the Monte Carlo simulation model. The Company is recognizing compensation expense for the MSUs ratably over the service period. At June 27, 2020, there was 2.5 million in aggregate RSUs, PSUs, FCF PSUs and MSUs outstanding. At June 27, 2020, there was $23.2 million and $66.9 million of unrecognized compensation expense related to stock options and stock units (comprised of RSUs, PSUs, FCF PSUs and MSUs), respectively, to be recognized over a weighted-average period of 2.4 and 1.9 years, respectively.
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Other Balance Sheet Information |
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Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Information | Other Balance Sheet Information
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Business Segments and Geographic Information |
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Business Segments and Geographic Information | Business Segments and Geographic InformationDuring the first fiscal quarter of 2020 and fiscal 2019, the Company had five reportable segments: Diagnostics, Breast Health, GYN Surgical, Medical Aesthetics and Skeletal Health. The Company completed the sale of its Medical Aesthetics business on December 30, 2019, but will continue to have operating expenses primarily related to indemnifying CD&R for legal and tax matters that existed as of the date of disposition. The Company measures and evaluates its reportable segments based on segment revenues and operating income adjusted to exclude the effect of non-cash charges, such as intangible asset amortization expense, intangible asset and goodwill impairment charges, acquisition related fair value adjustments and integration expenses, restructuring, divestiture and facility consolidation charges and other one-time or unusual items. Identifiable assets for the reportable segments consist of inventories, intangible assets, goodwill, and property, plant and equipment. The Company fully allocates depreciation expense to its reportable segments. The Company has presented all other identifiable assets as corporate assets. There were no inter-segment revenues during the three and nine months ended June 27, 2020 and June 29, 2019. Segment information is as follows:
The Company had no customers that represented greater than 10% of consolidated revenues during the three and nine months ended June 27, 2020 and June 29, 2019. The Company operates in the major geographic areas noted in the below chart. Revenue data is based upon customer location. Other than the United States, no single country accounted for more than 10% of consolidated revenues. The Company’s sales in Europe are predominantly derived from France, Germany and the United Kingdom. The Company’s sales in Asia-Pacific are predominantly derived from China, Australia and Japan. The “Rest of World” designation includes Canada, Latin America and the Middle East. Revenues by geography as a percentage of total revenues were as follows:
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Income Taxes |
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Jun. 27, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740, Income Taxes (ASC 740), each interim period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. The Company’s effective tax rate for the three and nine months ended June 27, 2020 was a provision of 19.0% and a benefit of 60.3%, respectively, compared to a provision of 17.8% and a benefit of 40.7%, respectively, for the corresponding periods in the prior year. The effective tax rate for the three months ended June 27, 2020 differed from the U.S. statutory tax rate primarily due to the geographic mix of income earned by our international subsidiaries which are taxed at rates lower than the U.S. statutory tax rate, the impact of the U.S. deduction for foreign derived intangible income, and reserve releases resulting from statute of limitations expirations, partially offset by the global intangible low-taxed income inclusion, and unbenefited foreign losses. The effective tax rate for the nine months ended June 27, 2020 differed from the U.S. statutory tax rate primarily due to a $312.8 million discrete net tax benefit related to the loss on the sale of the Medical Aesthetics business. For the three months ended June 29, 2019, the effective tax rate differed from the U.S. statutory tax rate primarily due to reserve releases resulting from statute of limitations expirations and favorable audit settlements, and earnings in jurisdictions subject to lower tax rates. For the nine months ended June 29, 2019, the effective tax rate differed from the U.S. statutory tax rate primarily due to the effect of the Medical Aesthetics impairment charge recorded in the second quarter of fiscal 2019, earnings in jurisdictions subject to lower tax rates, a $19.2 million discrete benefit related to an internal restructuring, reserve releases resulting from statute of limitations expirations and favorable audit settlements, and finalizing the impact of the enactment of the Tax Cuts and Jobs Act in the first quarter of fiscal 2019. During the nine months ended June 27, 2020, the Company's gross unrecognized tax benefits excluding interest increased from $101.6 million to $200.3 million primarily as a result of uncertain tax positions related to the divestiture of the Medical Aesthetics business, and to a lesser extent intercompany transfer pricing related to ordinary business operations, partially offset by reserve releases resulting from statute of limitations expirations. Other Tax Accounting Pronouncements On October 24, 2016, the FASB issued ASU 2016-16, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 on a modified retrospective basis through a cumulative-effect adjustment to decrease the opening balance of accumulated deficit within stockholders' equity as of September 30, 2018, the first day of fiscal 2019. This change in accounting principle resulted in an increase in deferred tax assets of $2.9 million, a decrease in accumulated deficit of $2.5 million, and a decrease in prepaid taxes of $0.4 million as of the beginning of the Company’s fiscal year beginning September 30, 2018. Under ASU 2016-16 the Company recorded a $29.5 million increase to income tax expense and income tax liabilities and a decrease of $48.7 million to deferred tax expense and net deferred tax liabilities for the nine months ended June 29, 2019 related to intercompany transactions which involved intra-entity transfers of assets other than inventory. The net result was an increase to net income of $19.2 million, or an earnings per share increase of $0.07. Non-Income Tax Matters The Company is subject to tax examinations for value added, sales-based, payroll, and other non-income tax items. A number of these examinations are ongoing in various jurisdictions. The Company takes certain non-income tax positions in the jurisdictions in which it operates pursuant to ASC 450. In the normal course of business, the Company's positions and conclusions related to its non-income tax positions could be challenged, resulting in assessments by governmental authorities. While the Company believes estimated losses previously recorded are reasonable, certain audits are still ongoing and additional charges could be recorded in the future.
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Intangible Assets and Goodwill |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Goodwill | Intangible Assets Intangible assets consisted of the following:
In the first quarter of fiscal 2020, the Company's Medical Aesthetics business met the criteria to be designated as assets held-for-sale. As a result, the Company recorded a $30.2 million charge to record the asset group at fair value less costs to sell. In addition, developed technology, customer lists, trade names, and distribution agreement related to Medical Aesthetics of $24.1 million, $0.9 million, $2.0 million, and $1.2 million, respectively, were reclassified accordingly in the Company's Consolidated Balance Sheet to assets held-for-sale as of December 28, 2019 and subsequently disposed of in the second quarter of fiscal 2020. In the second quarter of fiscal 2020, the Company reviewed its long-lived assets for indicators of impairment as a result of lowering its expectations for revenue and operating income in the short term from the impact of COVID-19 on its business as discussed in Note 1. The Company updated its long-term forecasts and performed an undiscounted cash flow analysis which indicated that the estimated future cash flows were sufficient to recover the carrying values of its asset groups. In addition, the Company had significant cushion from its most recent goodwill impairment test in each of its reporting units and believes, based on its procedures, current facts and expectations, that it is more likely than not that the fair value of each of its reporting units is above their respective carrying values. The Company's conclusion did not change in the third quarter of fiscal 2020. Given the current uncertainty of the duration and scope of the COVID-19 pandemic, the related economic impact, and the potential longer term impact on the Company's business, financial condition and results of operations, in the future the Company may be required to perform an interim impairment test, in addition to its annual test, and record an impairment charge. Medical Aesthetics Impairment - Fiscal 2019 During the second quarter of fiscal 2019, in connection with commencing its company-wide annual budgeting and strategic planning process as well as evaluating the current operating performance of its Medical Aesthetics reporting unit (comprised solely of the Cynosure business), the Company reduced its short term and long term revenue and operating income forecasts. The updated forecast reflected reduced volume and market penetration projections primarily in the Body Contouring business due to increased competition in the non-invasive fat reduction category, and lower Women's Health product sales primarily from reduced sales volume of the MonaLisa Touch device, which the Company believed was primarily driven by the FDA's public letter in the fourth quarter of fiscal 2018 challenging various medical aesthetics companies marketing of devices for so called "vaginal rejuvenation" procedures relative to their FDA approvals. As a result of the revised forecasts in the second quarter of fiscal 2019, the Company determined indicators of impairment existed and performed an undiscounted cash flow analysis pursuant to ASC 360, Property, Plant, and Equipment - Overall, to determine if the cash flows expected to be generated by this asset group over the estimated remaining useful life of the primary assets were sufficient to recover the carrying value of the asset group, which was determined to be at the reporting unit level. Based on this analysis, which included evaluating various cash flow scenarios, the undiscounted cash flows were not sufficient to recover the carrying value of the asset group. As a result, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group. To estimate the fair value, the Company utilized the income approach, which is based on a discounted cash flow (DCF) analysis and calculates the fair value by estimating the after-tax cash flows attributable to the asset group and then discounting the after-tax cash flows to present value using a risk-adjusted discount rate. Assumptions used in the DCF require significant judgment, including the appropriate discount rates and terminal values, growth rates, and the amount and timing of expected future cash flows. The forecasted cash flows were based on the Company's most recent strategic plan as of the measurement date and for periods beyond the strategic plan, the Company's estimates were based on assumed growth rates expected as of the measurement date. The Company believed its assumptions were consistent with the plans and estimates that a market participant would use to manage the business. The discount rate used is intended to reflect the risks inherent in future cash flow projections and was based on an estimate of the weighted average cost of capital (WACC) of market participants relative to the asset group. The Company used a discount rate of 11.0%. As a result of this analysis, the fair value of the Medical Aesthetics asset group was below its carrying value, and the Company recorded an impairment charge of $443.8 million during the second quarter of fiscal 2019. The impairment charge was allocated to the long-lived assets as follows: $373.3 million to developed technology, $14.4 million to customer relationships, $31.5 million to trade names, $17.8 million to distribution agreements and $6.8 million to equipment. The Company believed its assumptions used to determine the fair value of the asset group were reasonable. The Company completed the sale of the Medical Aesthetics business in the second quarter of fiscal 2020. Please refer to Note 6 for additional details. The estimated remaining amortization expense of the Company's acquired intangible assets as of June 27, 2020 for each of the five succeeding fiscal years is as follows:
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Product Warranties |
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Product Warranties | Product Warranties Product warranty activity was as follows:
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Accumulated Other Comprehensive Loss |
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Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented:
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Share Repurchase |
9 Months Ended |
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Jun. 27, 2020 | |
Equity [Abstract] | |
Share Repurchase | Share Repurchase On June 13, 2018, the Board of Directors authorized a share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock. This share repurchase plan was effective August 1, 2018 and expired on March 27, 2020. Under this authorization, during the second quarter of fiscal 2020, the Company repurchased 2.4 million shares of its common stock for a total consideration of $130.1 million. As of March 28, 2020, the Company had completed this authorization. On December 11, 2019, the Board of Directors authorized a new share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock, effective at the beginning of the third quarter of fiscal 2020. On March 2, 2020 the Board of Directors approved accelerating the effective date of the new share repurchase plan from March 27, 2020 to March 2, 2020. Under this revised authorization, during the second quarter of fiscal 2020, the Company repurchased 3.5 million shares of its common stock for a total consideration of $137.5 million. There were no share repurchases in the third quarter of fiscal 2020. As of June 27, 2020, $362.6 million remained available under this authorization. On November 19, 2019, the Board of Directors authorized the Company to repurchase up to $205 million of its outstanding shares pursuant to an accelerated share repurchase ("ASR") agreement. On November 22, 2019, the Company executed the ASR agreement with Goldman Sachs & Co. ("Goldman Sachs") pursuant to which the Company repurchased $205 million of the Company's common stock. The initial delivery of approximately 80% of the shares under the ASR was 3.3 million shares for which the Company initially allocated $164.0 million of the $205 million paid to Goldman Sachs during the first quarter of fiscal 2020. The Company evaluated the nature of the forward contract aspect of the ASR under ASC 815 and concluded equity classification was appropriate. Final settlement of the transaction under the ASR occurred in the second quarter of fiscal 2020. At settlement, Goldman Sachs delivered an additional 0.6 million shares of the Company's common stock.
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New Accounting Pronouncements |
9 Months Ended |
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Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements See Note 1 for Recently Adopted Accounting Pronouncements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently a number of improvements. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-13, as well as all codification improvements in ASU 2019-04, ASU 2019-10, ASU 2019-11 and ASU 2020-03, on its consolidated financial position and results of operations. In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The guidance identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided. The amendments in that Update expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For entities that have adopted the amendments in Update 2018-07, the updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2019-08 on its consolidated financial position and results of operations. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial position and results of operations. In January 2020, FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The Board is issuing this Update to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. This update could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. For entities that have adopted the amendments in Update 2020-01, the updated guidance is effective for annual periods beginning after December 15, 2020, and is applicable to the Company in fiscal 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-01 on its consolidated financial position and results of operations.
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New Accounting Pronouncements (Policies) |
9 Months Ended |
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Jun. 27, 2020 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements | New Accounting Pronouncements See Note 1 for Recently Adopted Accounting Pronouncements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently a number of improvements. The guidance requires that financial assets measured at amortized cost be presented at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis. The income statement reflects the measurement of credit losses for newly recognized financial assets, as well as the expected credit losses during the period. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. The updated guidance is effective for annual periods beginning after December 15, 2019, and is applicable to the Company in fiscal 2021. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2016-13, as well as all codification improvements in ASU 2019-04, ASU 2019-10, ASU 2019-11 and ASU 2020-03, on its consolidated financial position and results of operations.
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Revenue (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The following tables provide revenue from contracts with customers by business and geographic region on a disaggregated basis:
The following table provides revenue recognized by source:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lessee Lease Assets And Liabilities | The following table presents supplemental balance sheet information related to the Company's operating and finance leases:
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Schedule of Additional Lease Information | The following table provides information related to the Company’s operating and finance leases:
(a) Includes short-term lease expense and variable lease costs, which were immaterial in the three and nine months ended June 27, 2020.
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Schedule of Operating Lease Liability Maturities | The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
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Schedule of Finance Lease Liability Maturities | The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of June 27, 2020:
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Fair Value Measurements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Assets and Liabilities Measured on Recurring Basis | Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at June 27, 2020:
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Business Combinations (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Faxitron | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to SSI's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of November 21, 2019, as set forth below. The preliminary purchase price allocation is as follows:
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Focal Therapeutics | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to Focal's tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of October 1, 2018, as set forth below:
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Disposition (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Long Lived Assets Held-for-sale |
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Schedule of Income from Operation of Disposed Business | from operations of the disposed business for the three and nine month periods ended June 27, 2020 and June 29, 2019 was as follows:
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Borrowings and Credit Arrangements (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Company's Borrowings | The Company’s borrowings consisted of the following:
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Schedule of Line of Credit Facilities | Interest expense, weighted average interest rates, and the interest rate at the end of period under the Credit Agreements were as follow | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Interest Expense Under Convertible Notes | 8. Interest expense for the 2028 Senior Notes and 2025 Senior Notes is as follows:
Accounts Receivable Securitization Program In response to the market uncertainties created by the COVID-19 pandemic, on March 26, 2020, the Company paid-off the total amount outstanding of $250.0 million previously borrowed under the Accounts Receivable Securitization Program (the "Securitization Program"). On April 13, 2020, the Company amended the Credit and Security agreement with the lenders, temporarily suspending the ability to borrow and the need to comply with covenants for up to a year. As of June 27, 2020, the Company did not have any borrowings under this program.
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Derivatives (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Derivative Assets at Fair Value | The table below presents the fair value of the Company's derivative financial instruments as well as their classification on the balance sheet as of June 27, 2020:
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Schedule of Unrealized Loss Recognized in AOCI | The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods:
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Schedule of Adjustment to Fair Value within the Consolidated Statements of Income | The following table presents the adjustment to fair value (realized and unrealized) recorded within the Consolidated Statements of Operations for derivative instruments for which the Company did not elect hedge accounting:
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Derivative Instruments, Gain (Loss) | The following table presents the change in fair value of these contracts recognized directly in earnings as a component of other income (expense), net:
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Net Income (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Share Amounts | A reconciliation of basic and diluted share amounts is as follows:
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Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation Expense in Consolidated Statements of Operations | The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations:
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Weighted-Average Assumptions Utilized to Value Stock Options | The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table:
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Other Balance Sheet Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Related Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Balance Sheet Information of Inventories |
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Other Balance Sheet Information of Property, Plant and Equipment |
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Business Segments and Geographic Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | egment information is as follows:
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Revenues by Geography | Revenues by geography as a percentage of total revenues were as follows:
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Intangible Assets and Goodwill (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | Intangible assets consisted of the following:
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Schedule of Estimated Amortization Expense | The estimated remaining amortization expense of the Company's acquired intangible assets as of June 27, 2020 for each of the five succeeding fiscal years is as follows:
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Product Warranties (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Guarantees [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranty Activity | Product warranty activity was as follows:
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Accumulated Other Comprehensive Loss (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Accumulated Other Comprehensive Income [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented:
|
Revenue - Geographical Revenue (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 822.9 | $ 852.4 | $ 2,429.5 | $ 2,501.4 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 660.8 | 642.5 | 1,868.5 | 1,879.7 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 101.7 | 95.9 | 322.9 | 299.2 |
Asia-Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 43.7 | 76.2 | 155.5 | 210.1 |
Rest of World | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 16.7 | $ 37.8 | $ 82.6 | $ 112.4 |
Revenue - Revenue by Type (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 822,900,000 | $ 852,400,000 | $ 2,429,500,000 | $ 2,501,400,000 |
Contract with Customer, Liability, Revenue Recognized | 18,000,000.0 | 95,500,000 | ||
Capital equipment, components and software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113,500,000 | 248,900,000 | 513,100,000 | 736,600,000 |
Consumables | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 588,100,000 | 455,100,000 | 1,511,400,000 | 1,318,200,000 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 116,400,000 | 141,600,000 | 388,600,000 | 424,600,000 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 4,900,000 | $ 6,800,000 | $ 16,400,000 | $ 22,000,000.0 |
Revenue - Narrative (Details) $ in Millions |
Jun. 27, 2020
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Revenue, Remaining Performance Obligation, Amount | $ 588.3 |
Leases (Details) |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Jun. 27, 2020
USD ($)
|
Jun. 27, 2020
USD ($)
|
Sep. 28, 2019
USD ($)
|
|
Lessee, Lease, Description [Line Items] | |||
Period with option to terminate lease | 1 year | ||
Extension period | 20 years | ||
Weighted average discount rate (percentage) | 0.026 | ||
Finance lease liability, current | $ 1,800,000 | ||
Finance lease liabilities (non-current) | $ 19,200,000 | ||
Lease revenue as a percentage of total (percentage) | 0.04 | ||
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 10,200,000 | ||
Lease Receivable | $ 19,700,000 | $ 19,700,000 | |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating And Finance Lease, Remaining Lease Term | 1 year | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lessee, Operating And Finance Lease, Remaining Lease Term | 15 years |
Leases - Additional Lease Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended |
---|---|---|
Jun. 27, 2020 |
Jun. 27, 2020 |
|
Leases [Abstract] | ||
Operating lease cost | $ 6,900 | $ 20,800 |
Finance lease cost - amortization of right-of-use assets | 0 | 300 |
Finance lease cost - interest cost | 300 | 800 |
Operating cash flows from finance leases | 300 | 800 |
Operating cash flows from operating leases | 6,100 | 17,800 |
Financing cash flows from finance leases | 400 | 1,300 |
Total cash paid for amounts included in the measurement of lease liabilities | 6,800 | 19,900 |
ROU assets arising from entering into new operating lease obligations | $ 6,000.0 | $ 10,700 |
Leases - Lease Liability Maturity Schedule (Details) |
Jun. 27, 2020
USD ($)
|
---|---|
Leases [Abstract] | |
2020 remaining | $ 6,000.0 |
2021 | 24,200 |
2022 | 19,600 |
2023 | 13,000.0 |
2024 | 10,400 |
Thereafter | 23,900 |
Total future minimum lease payments | 97,100 |
Less: imputed interest | (5,900) |
Present value of lease liabilities | 91,200 |
2020 remaining | 700 |
2021 | 2,900 |
2022 | 3,000.0 |
2023 | 3,000.0 |
2024 | 3,000.0 |
Thereafter | 11,400 |
Total future minimum lease payments | 24,000.0 |
Less: imputed interest | (4,300) |
Present value of lease liabilities | $ 19,700 |
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Millions |
Jun. 27, 2020 |
Sep. 28, 2019 |
Oct. 01, 2018 |
---|---|---|---|
Purchase Price Allocation [Line Items] | |||
Goodwill | $ 2,592.9 | $ 2,563.7 | |
Focal Therapeutics | |||
Purchase Price Allocation [Line Items] | |||
Cash | $ 2.2 | ||
Accounts receivable | 2.0 | ||
Inventory | 7.9 | ||
Other assets | 0.5 | ||
Accounts payable and accrued expenses | (5.6) | ||
Long-term debt | (2.5) | ||
Deferred income taxes, net | (12.7) | ||
Goodwill | 31.1 | ||
Purchase Price | 120.1 | ||
Focal Therapeutics | Developed technology | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | 83.1 | ||
Focal Therapeutics | In-process research and development | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | 11.4 | ||
Focal Therapeutics | Trade names | |||
Purchase Price Allocation [Line Items] | |||
Identifiable intangible assets | $ 2.7 |
Business Combinations Business Combinations - Purchase Price Allocation, SuperSonic (Details) - USD ($) $ in Millions |
Jun. 27, 2020 |
Nov. 21, 2019 |
Sep. 28, 2019 |
---|---|---|---|
Business Acquisition [Line Items] | |||
Goodwill | $ 2,592.9 | $ 2,563.7 | |
SuperSonic Imagine | |||
Business Acquisition [Line Items] | |||
Cash | $ 2.6 | ||
Accounts receivable | 7.1 | ||
Inventory | 10.0 | ||
Other assets | 6.5 | ||
Other assets | 4.3 | ||
Accounts payable and accrued expenses | 13.0 | ||
Deferred revenue | 1.8 | ||
Short and long-term debt | (8.8) | ||
Other liabilities | (3.8) | ||
Developed technology | 38.3 | ||
Customer relationships | 4.0 | ||
Trade names | 3.0 | ||
Deferred income taxes, net | (1.5) | ||
Goodwill | 22.4 | ||
Purchase Price | $ 69.3 |
Disposition - Schedule of Assets and Liabilities Held For Sale (Details) - Medical Aesthetics [Domain] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] |
Mar. 28, 2020
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Cash | $ 10,700 |
Accounts Receivable | 59,600 |
Inventory | 90,600 |
Prepaid expenses and other current assets | 7,700 |
Property, plant, and equipment | 4,000.0 |
Intangible assets | 28,200 |
Other assets | 9,800 |
Total assets disposed of | 210,600 |
Accounts payable | 12,300 |
Accrued expenses | 49,000.0 |
Deferred revenue | 16,600 |
Total liabilities disposed of | $ 77,900 |
Disposition - Schedule of Disposition Related Income Statement Information (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Discontinued Operations and Disposal Groups [Abstract] | ||||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | $ 0 | $ (14,300) | $ (46,500) | $ (503,000.0) |
Borrowings and Credit Arrangements - Company's Borrowings (Detail) - USD ($) $ in Millions |
Jun. 27, 2020 |
Mar. 28, 2020 |
Sep. 28, 2019 |
---|---|---|---|
Debt Instrument [Line Items] | |||
Current portion of long-term debt | $ 565.5 | $ 271.4 | |
Total long-term debt obligations | 2,731.3 | 2,783.6 | |
Total debt obligations | 3,296.8 | 3,055.0 | |
Term Loan | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 65.5 | 37.4 | |
Long term debt obligations. excluding convertible notes | 1,398.0 | 1,452.4 | |
Revolver [Member] | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 500.0 | $ 750.0 | 0.0 |
Securitization Program | |||
Debt Instrument [Line Items] | |||
Current portion of long-term debt | 0.0 | 234.0 | |
2025 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long term debt obligations. excluding convertible notes | 938.9 | 937.3 | |
2028 Senior Notes | |||
Debt Instrument [Line Items] | |||
Long term debt obligations. excluding convertible notes | $ 394.4 | $ 393.9 |
Borrowings and Credit Arrangements - Interest Expense Credit Agreement (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 15.7 | $ 15.7 | $ 47.1 | $ 47.1 |
Credit Agreement | ||||
Line of Credit Facility [Line Items] | ||||
Interest expense | $ 11.4 | $ 16.4 | $ 38.0 | $ 51.9 |
Weighted average interest rate | 1.68% | 3.85% | 2.52% | 3.84% |
Interest rate at end of period | 1.55% | 3.78% | 1.55% | 3.78% |
Borrowings and Credit Arrangements - Interest Expense Senior Notes (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
Jan. 19, 2018 |
|
Line of Credit Facility [Line Items] | |||||
Interest expense | $ 15.7 | $ 15.7 | $ 47.1 | $ 47.1 | |
2025 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.375% | 4.375% | |||
Senior Notes | 2028 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.625% | 4.625% | 4.625% | ||
Interest expense | $ 4.8 | 4.8 | $ 14.4 | 14.4 | |
Senior Notes | 2025 Senior Notes | |||||
Line of Credit Facility [Line Items] | |||||
Stated interest rate | 4.375% | 4.375% | |||
Interest expense | $ 10.9 | $ 10.9 | $ 32.7 | $ 32.7 |
Derivatives - Schedule Of Change in Fair Value Of Derivative Contracts (Details) - Derivatives not designated as hedging instruments - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized (loss) gain recognized in income | $ 0.0 | $ 3.0 | $ (0.7) | $ 6.5 |
Amount of unrealized (loss) gain recognized in income | (2.0) | (2.1) | (1.1) | (0.2) |
Forward foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized (loss) gain recognized in income | 0.5 | 3.0 | 0.6 | 6.5 |
Amount of unrealized (loss) gain recognized in income | (1.8) | (2.1) | (0.6) | (0.2) |
Foreign currency option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount of realized (loss) gain recognized in income | (0.5) | 0.0 | (1.3) | 0.0 |
Amount of unrealized (loss) gain recognized in income | $ (0.2) | $ 0.0 | $ (0.5) | $ 0.0 |
Derivatives - Gain (Loss) on Fair Value Hedges Recognized in Earnings (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedges, gain (loss) | $ (2.1) | $ 0.9 | $ (1.9) | $ 6.3 |
Forward foreign currency contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Forward foreign currency contracts | (1.3) | 0.9 | 0.0 | 6.3 |
Foreign currency option contracts | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Derivative instruments not designated as hedges, gain (loss) | $ (0.8) | $ 0.0 | $ (1.9) | $ 0.0 |
Commitments and Contingencies (Detail) |
Mar. 04, 2016
petition
|
Jun. 27, 2020
USD ($)
|
Jul. 27, 2018
USD ($)
|
---|---|---|---|
Minerva | |||
Loss Contingencies [Line Items] | |||
Assessed damages | $ 4,800,000 | ||
Petitions filed | petition | 2 | ||
Medical Aesthetics [Domain] | |||
Loss Contingencies [Line Items] | |||
Legal Accrual | $ 8,500,000 |
Net Income (Loss) Per Share - Reconciliation of Basic and Diluted Share Amounts (Detail) - shares shares in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Earnings Per Share [Line Items] | ||||
Basic weighted average common shares outstanding | 259,870 | 268,932 | 263,667 | 269,586 |
Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units | 1,177 | 1,857 | 1,425 | 0 |
Diluted weighted average common shares outstanding | 261,047 | 270,789 | 265,092 | 269,586 |
Outstanding Stock Options and stock units | ||||
Weighted-average anti-dilutive shares related to: | ||||
Weighted-average anti-dilutive shares (in shares) | 1,597 | 2,358 | 1,521 | 4,457 |
Restricted stock units | ||||
Weighted-average anti-dilutive shares related to: | ||||
Weighted-average anti-dilutive shares (in shares) | 3 | 0 | 5 | 0 |
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Options (Detail) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Share-based Payment Arrangement [Abstract] | ||||
Risk-free interest rate | 1.70% | 3.00% | 1.70% | 3.00% |
Expected volatility | 33.60% | 34.30% | 33.60% | 34.30% |
Expected life (in years) | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days | 4 years 9 months 18 days |
Dividend yield | $ 0 | $ 0 | $ 0 | $ 0 |
Weighted average fair value of options granted | $ 9.90 | $ 15.07 | $ 13.79 | $ 13.51 |
Other Balance Sheet Information - Inventories (Detail) - USD ($) $ in Millions |
Jun. 27, 2020 |
Sep. 28, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 165.6 | $ 166.1 |
Work-in-process | 56.5 | 54.5 |
Finished goods | 191.5 | 224.3 |
Inventories | $ 413.6 | $ 444.9 |
Other Balance Sheet Information - Property, Plant and Equipment (Detail) - USD ($) $ in Millions |
Jun. 27, 2020 |
Sep. 28, 2019 |
---|---|---|
Balance Sheet Related Disclosures [Abstract] | ||
Equipment | $ 425.6 | $ 379.2 |
Equipment under customer usage agreements | 458.2 | 435.5 |
Building and improvements | 164.6 | 196.7 |
Leasehold improvements | 43.7 | 61.7 |
Land | 40.6 | 46.3 |
Furniture and fixtures | 15.9 | 17.5 |
Property, plant and equipment, gross | 1,148.6 | 1,136.9 |
Less – accumulated depreciation and amortization | (692.4) | (666.0) |
Property, plant and equipment, net | $ 456.2 | $ 470.9 |
Business Segments and Geographic Information - Additional Information (Detail) |
3 Months Ended | 9 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Jun. 27, 2020
USD ($)
|
Dec. 28, 2019
Segment
|
Jun. 29, 2019
USD ($)
|
Jun. 27, 2020
USD ($)
|
Jun. 29, 2019
USD ($)
|
Sep. 28, 2019
Segment
|
|
Segment Reporting Disclosure [Line Items] | ||||||
Number of reportable segments | Segment | 5 | 5 | ||||
Revenues | $ 822,900,000 | $ 852,400,000 | $ 2,429,500,000 | $ 2,501,400,000 | ||
Intersegment | ||||||
Segment Reporting Disclosure [Line Items] | ||||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Business Segments and Geographic Information - Revenues by Geography (Detail) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 100.00% | 100.00% | 100.00% | 100.00% |
United States | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 80.30% | 75.40% | 76.90% | 75.10% |
Europe | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 12.40% | 11.30% | 13.30% | 12.00% |
Asia-Pacific | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 5.30% | 8.90% | 6.40% | 8.40% |
Rest of World | ||||
Schedule Of Geographical Segments [Line Items] | ||||
Revenues | 2.00% | 4.40% | 3.40% | 4.50% |
Income Taxes (Details) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | 9 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Mar. 30, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
Sep. 28, 2019 |
|
Segment Reporting Information [Line Items] | ||||||
Unrecognized Tax Benefits | $ 200.3 | $ 200.3 | $ 101.6 | |||
Company's effective tax rate | 19.00% | 17.80% | 60.30% | 40.70% | ||
Increase to income tax expense adoption of ASU 2016-16 | $ 29.5 | |||||
Decrease in deferred tax liabilities due to ASC 2016-16 | 48.7 | |||||
Increase to Net Income resulted from adoption of ASU 2016-16 | $ 19.2 | |||||
Increase to Earnings per Share resulted from adoption of ASC 2016-16 | $ 0.07 | |||||
Increase in deferred tax assets resulting from adoption of ASCU 2016-16 | $ 2.9 | |||||
Decease in accumulated deficit resulting from adoption of ASCU 2016-16 | 2.5 | |||||
Decease to prepaid taxes resulting from adoption of ASCU 2016-16 | $ 0.4 | |||||
Medical Aesthetics [Domain] | ||||||
Segment Reporting Information [Line Items] | ||||||
Other Tax Expense (Benefit) | $ 312.8 |
Intangible Assets and Goodwill - Schedule of Estimated Amortization Expense (Detail) $ in Millions |
Jun. 27, 2020
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2020 | $ 72.8 |
Fiscal 2021 | 270.2 |
Fiscal 2022 | 259.9 |
Fiscal 2023 | 162.5 |
Fiscal 2024 | $ 151.4 |
Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at Beginning of Period | $ 13.9 | $ 15.9 |
Provisions | 8.0 | 10.1 |
Standard and Extended Product Warranty Accrual, Additions from Business Acquisition | 0.5 | 0.0 |
Standard Product Warranty Accrual, Period Increase (Decrease) | (6.1) | 0.0 |
Settlements/ Adjustments | (7.2) | (11.1) |
Balance at End of Period | $ 9.1 | $ 14.9 |
Restructuring (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Jun. 27, 2020 |
Jun. 29, 2019 |
Jun. 27, 2020 |
Jun. 29, 2019 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Charges | $ 1,000,000.0 | $ 2,700,000 | $ 4,800,000 | $ 6,000,000.0 |
Focal and Faxitron [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 100,000 | |||
COVID-19 [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Severance Costs | 900,000 | |||
Focal and Faxitron [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Estimated severance and benefits future costs | $ 3,900,000 |
Share Repurchase Share repurchase (Details) - USD ($) shares in Millions |
3 Months Ended | |||
---|---|---|---|---|
Nov. 20, 2019 |
Jun. 27, 2020 |
Mar. 28, 2020 |
Dec. 28, 2019 |
|
share repurchase plan [Line Items] | ||||
Total repurchase authorization | $ 500,000,000.0 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 362,600,000 | |||
ASR Authorized | $ 205,000,000 | $ 205,000,000 | ||
ASR Shares Repurchased during the period | $ 600,000 | 3,300,000 | ||
Amount paid during the period under ASR Agreement | $ 164,000,000.0 | |||
June 13, 2019 Plan [Member] | ||||
share repurchase plan [Line Items] | ||||
Stock Repurchased During Period, Shares | 2.4 | |||
Repurchase of equity | $ 130,100,000 | |||
November 19, 2019 Plan [Member] | ||||
share repurchase plan [Line Items] | ||||
Stock Repurchased During Period, Shares | 3.5 | |||
Repurchase of equity | $ 137,500,000 |