Document and Entity Information
Document and Entity Information | 3 Months Ended |
Dec. 29, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Dec. 29, 2018 |
Document Fiscal Year Focus | 2,019 |
Document Fiscal Period Focus | Q1 |
Entity Registrant Name | HOLOGIC INC |
Entity Central Index Key | 859,737 |
Current Fiscal Year End Date | --09-30 |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Entity Small Business | false |
Entity Common Stock, Shares Outstanding | 291,314,767 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Revenues: | ||
Product Revenue | $ 683,052,000 | $ 650,700,000 |
Service Revenue | 147,600,000 | 140,400,000 |
Revenues | 830,700,000 | 791,100,000 |
Costs of revenues: | ||
Cost of Goods and Services Sold | 232,100,000 | 213,700,000 |
Cost, Amortization | 81,000,000 | 79,800,000 |
Cost of service | 83,500,000 | 73,100,000 |
Gross profit | 434,100,000 | 424,500,000 |
Operating expenses: | ||
Research and development | 53,200,000 | 54,800,000 |
Selling and marketing | 146,000,000 | 139,500,000 |
General and administrative | 78,600,000 | 77,900,000 |
Amortization of acquired intangible assets | 14,100,000 | 14,400,000 |
Restructuring charges | 1,700,000 | 3,800,000 |
Operating expenses | 293,600,000 | 290,400,000 |
Income from operations | 140,500,000 | 134,100,000 |
Interest income | 1,300,000 | 800,000 |
Interest expense | (36,100,000) | (41,000,000) |
Debt extinguishment losses | (800,000) | (1,000,000) |
Other (expense) income, net | (600,000) | 2,900,000 |
Income before income taxes | 104,300,000 | 95,800,000 |
Provision (benefit) for income taxes | 5,700,000 | (310,900,000) |
Net income | $ 98,600,000 | $ 406,700,000 |
Net income per common share: | ||
Basic | $ 0.36 | $ 1.47 |
Diluted | $ 0.36 | $ 1.45 |
Weighted average number of shares outstanding: | ||
Basic | 270,590 | 276,856 |
Diluted | 272,372 | 280,802 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 98.6 | $ 406.7 |
Changes in foreign currency translation adjustment | (3.2) | 5.5 |
Loss reclassified from accumulated other comprehensive loss to the statements of income | 0 | 0.4 |
Changes in pension plans, net of taxes of $0.6 for the three months ended December 30, 2017: | 0 | 0.6 |
Changes in value of hedged interest rate caps, net of tax of $0.5 and $(4.9) for the three months ended December 29, 2018 and December 30, 2017: | (3.9) | (4.3) |
Loss reclassified from accumulated other comprehensive loss to the statements of income | 0.7 | 2.3 |
Other comprehensive (loss) income | (6.4) | 4.5 |
Comprehensive income | $ 92.2 | $ 411.2 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Changes in unrealized holding gains and losses on available-for-sale securities. tax | $ 0 | $ 0.2 |
Changes in pension plans, tax | 0 | 0.6 |
Changes in value of hedged interest rate caps, tax | $ 0.5 | $ (4.9) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 311.1 | $ 666.7 |
Accounts receivable, less reserves of $16.8 and $16.2, respectively | 578.6 | 579.2 |
Inventories | 418.6 | 384.1 |
Prepaid income taxes | 29.7 | 31.7 |
Prepaid expenses and other current assets | 63.9 | 61.5 |
Total current assets | 1,401.9 | 1,723.2 |
Property, plant and equipment, net | 472.6 | 478.2 |
Intangible assets, net | 2,402.2 | 2,398.6 |
Goodwill | 2,562.9 | 2,533.2 |
Other assets | 91.9 | 97.7 |
Total assets | 6,931.5 | 7,230.9 |
Current liabilities: | ||
Current portion of long-term debt | 319.4 | 599.7 |
Accounts payable | 176.3 | 192.2 |
Accrued expenses | 413.2 | 436.1 |
Deferred revenue | 167.1 | 172.9 |
Current portion of capital lease obligations | 1.7 | 1.7 |
Total current liabilities | 1,077.7 | 1,402.6 |
Long-term debt, net of current portion | 2,807.9 | 2,704.6 |
Capital lease obligations, net of current portion | 20.5 | 20.9 |
Deferred income tax liabilities | 456.5 | 498.2 |
Deferred revenue | 18.1 | 18.2 |
Other long-term liabilities | 156.4 | 157.6 |
Commitments and contingencies (Note 8) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value – 1,623 shares authorized; 0 shares issued | 0 | 0 |
Common stock, $0.01 par value – 750,000 shares authorized; 290,848 and 289,900 shares issued, respectively | 2.9 | 2.9 |
Additional paid-in-capital | 5,685.9 | 5,671.3 |
Accumulated deficit | (2,386.5) | (2,494) |
Treasury stock, at cost – 23,524 and 19,812 shares, respectively | (876) | (725.9) |
Accumulated other comprehensive loss | (31.9) | (25.5) |
Total stockholders’ equity | 2,394.4 | 2,428.8 |
Total liabilities and stockholders’ equity | $ 6,931.5 | $ 7,230.9 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, reserves | $ 13 | $ 9.8 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized (in shares) | 1,623,000 | 1,623,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 750,000,000 | 750,000,000 |
Common stock, issued (in shares) | 289,045,000 | 287,853,000 |
Treasury stock (in shares) | 17,537,000 | 12,560,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 98.6 | $ 406.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 23.7 | 27 |
Amortization of acquired intangibles | 95.1 | 94.2 |
Non-cash interest expense | 2.2 | 8.7 |
Stock-based compensation expense | 17.1 | 16.4 |
Deferred income taxes | (50) | (390.7) |
Debt extinguishment losses | 0.8 | 1 |
Fair value write-up of acquired inventory sold | 1.8 | 0 |
Other adjustments and non-cash items | 6.9 | 1.2 |
Changes in operating assets and liabilities, excluding the effect of acquisitions: | ||
Accounts receivable | 0.4 | (6.4) |
Inventories | (27.9) | (23.3) |
Prepaid income taxes | 2 | 8.1 |
Prepaid expenses and other assets | (1.8) | (5) |
Accounts payable | (16) | (7.1) |
Accrued expenses and other liabilities | (51.6) | 48.9 |
Deferred revenue | 3.3 | (10.6) |
Net cash provided by operating activities | 104.6 | 169.1 |
INVESTING ACTIVITIES | ||
Acquisition of businesses, net of cash acquired | (106.6) | (4.1) |
Capital expenditures | (9.5) | (10.2) |
Increase in equipment under customer usage agreements | (13.1) | (11.6) |
Other activity | (1.5) | (0.3) |
Net cash used in investing activities | (130.7) | (26.2) |
FINANCING ACTIVITIES | ||
Proceeds from long-term debt | 1,500 | 1,500 |
Repayment of long-term debt | (1,462.5) | (1,331.3) |
Proceeds from senior notes | 0 | 350 |
Payments to extinguish convertible notes | 0 | (296.9) |
Repayments of Other Long-term Debt | (2.5) | 0 |
Proceeds from amounts borrowed under revolving credit line | 480 | 495 |
Repayments of amounts borrowed under revolving credit line | (695) | (720) |
Payment of debt issuance costs | (2.7) | (11.9) |
Repurchase of common stock | (147) | 0 |
Proceeds from issuance of common stock pursuant to employee stock plans | 13.5 | 9.5 |
Payments under capital lease obligations | (0.4) | (0.4) |
Payment of minimum tax withholdings on net share settlements of equity awards | (11.6) | (14.3) |
Net cash used in financing activities | (328.2) | (20.3) |
Effect of exchange rate changes on cash and cash equivalents | (1.3) | 1.2 |
Net (decrease) increase in cash and cash equivalents | (355.6) | 123.8 |
Cash and cash equivalents, beginning of period | 666.7 | 540.6 |
Cash and cash equivalents, end of period | $ 311.1 | $ 664.4 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity Statement - USD ($) shares in Thousands, $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings | Total | Treasury Stock [Member] |
Balance (in shares) at Sep. 30, 2017 | 287,853 | 12,560 | ||||
Balance at Sep. 30, 2017 | $ 2,784.7 | $ 2.9 | $ 5,630.8 | $ (2,382.7) | $ (16.2) | $ (450.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 231 | |||||
Exercise of stock options | 5.8 | 5.8 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 666 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (14.3) | (14.3) | ||||
Stock-based compensation expense | 16.4 | 16.4 | ||||
Reacquisition of equity component from convertible notes repurchase, net of taxes | (9.8) | (9.8) | ||||
Net income | 406.7 | 406.7 | ||||
Other comprehensive income activity | 4.5 | 4.5 | ||||
Balance (in shares) at Dec. 30, 2017 | 288,750 | 12,560 | ||||
Balance at Dec. 30, 2017 | 3,194 | $ 2.9 | 5,628.9 | (1,976) | (11.7) | $ (450.1) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 154 | |||||
Exercise of stock options | 2.9 | 2.9 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 79 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (1.2) | (1.2) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 204 | |||||
Common stock issued under the employee stock purchase plan | 7.4 | 7.4 | ||||
Stock-based compensation expense | 19.5 | 19.5 | ||||
Reacquisition of equity component from convertible notes repurchase, net of taxes | (0.1) | (0.1) | ||||
Net income | (681.4) | (681.4) | ||||
Other comprehensive income activity | 11.1 | 11.1 | ||||
Repurchase of common stock (in shares) | 2,816 | |||||
Repurchase of common stock | (106.5) | $ (106.5) | ||||
Balance (in shares) at Mar. 31, 2018 | 289,187 | 15,376 | ||||
Balance at Mar. 31, 2018 | 2,445.7 | $ 2.9 | 5,657.4 | (2,657.4) | (0.6) | $ (556.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 193 | |||||
Exercise of stock options | 3.9 | 3.9 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 25 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.5) | (0.5) | ||||
Stock-based compensation expense | 17.2 | 17.2 | ||||
Reacquisition of equity component from convertible notes repurchase, net of taxes | (30.9) | (30.9) | ||||
Net income | 112.9 | 112.9 | ||||
Other comprehensive income activity | (18) | (18) | ||||
Repurchase of common stock (in shares) | 2,161 | |||||
Repurchase of common stock | (80.8) | $ (80.8) | ||||
Balance (in shares) at Jun. 30, 2018 | 289,405 | 17,537 | ||||
Balance at Jun. 30, 2018 | 2,449.5 | $ 2.9 | 5,647.1 | (2,544.5) | (18.6) | $ (637.4) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of stock options (in shares) | 218 | |||||
Exercise of stock options | 4.8 | 4.8 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 33 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (0.6) | (0.6) | ||||
Common stock issued under the employee stock purchase plan (in shares) | 244 | |||||
Common stock issued under the employee stock purchase plan | 8.2 | 8.2 | ||||
Stock-based compensation expense | 11.9 | 11.9 | ||||
Reacquisition of equity component from convertible notes repurchase, net of taxes | (0.1) | (0.1) | ||||
Net income | 50.5 | 50.5 | ||||
Other comprehensive income activity | (6.9) | (6.9) | ||||
Repurchase of common stock (in shares) | 2,275 | |||||
Repurchase of common stock | (88.5) | $ (88.5) | ||||
Balance (in shares) at Sep. 29, 2018 | 289,900 | 19,812 | ||||
Balance at Sep. 29, 2018 | 2,428.8 | $ 2.9 | 5,671.3 | (2,494) | (25.5) | $ (725.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Accounting standard transition adjustment | Accounting Standards Update 2014-09 | 6.4 | 6.4 | ||||
Accounting standard transition adjustment | Accounting Standards Update 2016-16 [Member] | (2.5) | (2.5) | ||||
Exercise of stock options (in shares) | 373 | |||||
Exercise of stock options | 9.1 | 9.1 | ||||
Vesting of restricted stock units, net of shares withheld for employee taxes ( in shares) | 575 | |||||
Vesting of restricted stock units, net of shares withheld for employee taxes | (11.6) | (11.6) | ||||
Stock-based compensation expense | 17.1 | 17.1 | ||||
Net income | 98.6 | |||||
Other comprehensive income activity | (6.4) | (6.4) | ||||
Repurchase of common stock (in shares) | 3,712 | |||||
Repurchase of common stock | (150.1) | $ (150.1) | ||||
Balance (in shares) at Dec. 29, 2018 | 290,848 | 23,524 | ||||
Balance at Dec. 29, 2018 | $ 2,394.4 | $ 2.9 | $ 5,685.9 | $ (2,386.5) | $ (31.9) | $ (876) |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Dec. 29, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [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 (“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 29, 2018 included in the Company’s Form 10-K filed with the SEC on November 20, 2018. In the opinion of management, the financial statements and notes contain all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented. The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. 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 months ended December 29, 2018 are not necessarily indicative of the results to be expected for any other interim period or the entire fiscal year ending September 28, 2019 . Recently Adopted Accounting Pronouncements In May 2014, the FASB issued ASC Update No. 2014-09, Revenue from Contracts with Customers (ASC 606), which was subsequently amended. The Company adopted the standard, which amends the existing accounting standard for revenue recognition, as of September 30, 2018 using the modified retrospective method for contracts that were not complete as of September 30, 2018. The Company's adoption of ASC 606 is more fully described in Note 2. In August 2018, the SEC issued the final rule on Regulation S-X, Rule 3-04 (Rule 3-04) requiring entities to disclose changes in stockholders equity in the form of a reconciliation for the current and comparative year-to-date interim periods, with subtotals for each interim period. The Company adopted Rule 3-04 in the first quarter of fiscal 2019. In October 2016, the FASB issued ASU No. 2016-16, Income Taxes (Topic 740). The guidance requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period in which the transfer occurs. The Company adopted the standard in the first quarter of fiscal 2019 (see Note 10). In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flow (Topic 230) . The guidance reduces diversity in how certain cash receipts and cash payments are presented and classified in the Statements of Cash Flows. Certain of ASU 2016-15 requirements are as follows: 1) cash payments for debt prepayment or debt extinguishment costs should be classified as cash outflows for financing activities, 2) contingent consideration payments made soon after a business combination should be classified as cash outflows for investing activities and cash payment made thereafter should be classified as cash outflows for financing up to the amount of the contingent consideration liability recognized at the acquisition date with any excess classified as operating activities, 3) cash proceeds from the settlement of insurance claims should be classified on the basis of the nature of the loss, 4) cash proceeds from the settlement of Corporate-Owned Life Insurance (COLI) Policies should be classified as cash inflows from investing activities and cash payments for premiums on COLI policies may be classified as cash outflows for investing activities, operating activities, or a combination of investing and operating activities, and 5) cash paid to a tax authority by an employer when withholding shares from an employee's award for tax-withholding purposes should be classified as cash outflows for financing activities. The guidance is effective for annual periods beginning after December 15, 2017, and is applicable to the Company in fiscal 2019. The adoption of ASU 2016-15 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 recorded in the unaudited consolidated financial statements as of and for the three months ended December 29, 2018 . |
Revenue Revenue
Revenue Revenue | 3 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue In May 2014, the FASB issued ASC 606. The Company adopted the standard, which amends the existing accounting standard for revenue recognition, as of September 30, 2018 using the modified retrospective method for contracts that were not complete as of September 30, 2018. Under this method, the Company recognized the cumulative effect of initially applying the standard to its open contracts and recorded an adjustment to decrease the opening balance of accumulated deficit within stockholders' equity by $6.4 million , which is net of taxes of $2.4 million , as of September 30, 2018, the first day of fiscal 2019. The cumulative effect adjustment was primarily due to the Company applying the principles of ASC 606 to contracts for which the Company had deferred revenue as of September 29, 2018 for collectability uncertainty and providing extended payment terms resulting in the fee not being fixed or determinable under ASC 605. Under ASC 606 revenue from certain arrangements may be recognized earlier as a result of the ability to apply additional judgment in evaluating collectability and the elimination of the requirement to assess whether a fee is fixed or determinable, specifically as it relates to providing customers with extended payment terms. Results for reporting periods beginning September 30, 2018 and after are presented in accordance with ASC 606. Prior period results were not adjusted and will continue to be reported in accordance with legacy GAAP requirements in ASC Topic 605, Revenue Recognition . As the adoption of this standard did not have a material impact on the Company’s revenue recorded in the first quarter of fiscal 2019, transitional disclosures have not been presented. The Company generates revenue from the sale of its products, primarily medical imaging systems and related components and software, medical aesthetic treatment systems, diagnostic tests/assays and surgical disposable products, and related services, which are primarily support and maintenance services on its medical imaging systems and aesthetic treatment systems, and to a lesser extent installation, training and repairs. The Company's products are sold primarily through a direct sales force, and within international markets, there is more reliance on distributors and resellers. Revenue is recorded net of sales tax. The following table provides revenue from contracts with customers by business and geographic region on a disaggregated basis: Three Months Ended December 29, 2018 Three Months Ended December 30, 2017 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 79.2 $ 38.9 $ 118.1 $ 84.7 $ 38.7 $ 123.4 Molecular Diagnostics 134.1 30.2 164.3 123.9 24.7 148.6 Blood Screening 14.2 — 14.2 12.6 — 12.6 Total $ 227.5 $ 69.1 $ 296.6 $ 221.2 $ 63.4 $ 284.6 Breast Health: Breast Imaging $ 206.5 $ 63.2 $ 269.7 $ 179.8 $ 56.1 $ 235.9 Interventional Breast Solutions 46.1 8.9 55.0 44.6 7.5 52.1 Total $ 252.6 $ 72.1 $ 324.7 $ 224.4 $ 63.6 $ 288.0 Medical Aesthetics $ 37.3 $ 42.5 $ 79.8 $ 46.5 $ 44.8 $ 91.3 GYN Surgical $ 91.1 $ 17.3 $ 108.4 $ 91.5 $ 16.0 $ 107.5 Skeletal Health $ 13.3 $ 7.9 $ 21.2 $ 13.6 $ 6.1 $ 19.7 $ 621.8 $ 208.9 $ 830.7 $ 597.2 $ 193.9 $ 791.1 Three Months Ended Three Months Ended Geographic Regions ( in millions ) December 29, 2018 December 30, 2017 United States $ 621.8 $ 597.2 Europe 101.1 91.3 Asia-Pacific 69.6 68.4 Rest of World 38.2 34.2 $ 830.7 $ 791.1 The following table provides revenue recognized by source: Three Months Ended Three Months Ended Revenue by type (in millions) December 29, 2018 December 30, 2017 Capital equipment, components and software $ 248.3 $ 206.5 Consumables 434.8 444.2 Service 141.8 135.4 Other 5.8 5.0 $ 830.7 $ 791.1 The Company considers revenue to be earned when all of the following criteria are met: the Company has a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the amount the Company expects to receive, including an estimate of uncertain amounts subject to a constraint to ensure revenue is not recognized in an amount that would result in a significant reversal upon resolution of the uncertainty, is determinable; and the Company has transferred control of the promised items to the customer. A performance obligation is a promise in a contract to transfer a distinct good or service to the customer, and is the unit of account in the contract. The transaction price for the contract is measured as the amount of consideration the Company expects to receive in exchange for the goods and services expected to be transferred. A contract's transaction price is allocated to each distinct performance obligation and recognized as revenue when, or as, control of the distinct good or service is transferred. Transfer of control for the Company's products is generally at shipment or delivery, depending on contractual terms, but occurs when title and risk of loss transfers to the customer. The Company recognizes a receivable when it has an unconditional right to payment, and payment terms are typically 30 days in the U.S. but may be longer in international markets. The Company treats shipping and handling costs performed after a customer obtains control of the good as a fulfillment cost and records these costs within costs of product revenue when the corresponding revenue is recognized. The Company's performance obligation related to product sales is satisfied at a point in time. Revenue from support and maintenance contracts, extended warranty and professional services for installation, training and repair is recognized over time based on the period contracted or as the services are performed. The Company also places instruments (or equipment) at customer sites but retains title of the instrument. The customer has the right to use the instrument for a period of time, and the Company recovers the cost of providing the instrument through the sales of disposables, namely tests and assays in Diagnostics and handpieces in GYN Surgical. These types of agreements include an embedded operating lease for the right to use an instrument and no instrument revenue is recognized at the time of instrument delivery. The Company recognizes a portion of the revenue allocated to the embedded lease concurrent with the sale of disposables over the term of the agreement. Some of the Company's contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the transaction price to each performance obligation using its best estimate of the standalone selling price of each distinct good or service in the contract. The Company determines its best estimate of stand-alone selling price using average selling prices over 3 to 12-month periods of data depending on the products or nature of the services coupled with current market considerations. If the product or service does not have a history of sales or if sales volume is not sufficient, the Company relies on prices set by its pricing committees or applicable marketing department adjusted for expected discounts. Variable Consideration The Company exercises judgment in estimating variable consideration, which includes volume discounts, sales rebates, product returns and other adjustments. These amounts are recorded as a reduction to revenue and classified as a current liability. The Company bases its estimates for volume discounts and sales rebates on historical information to the extent it is reasonable to be used as a predictive tool of expected future rebates. To the extent the transaction price includes variable consideration, the Company applies judgment in constraining the estimated variable consideration due to factors that may cause reversal of revenue recognized. The Company evaluates constraints based on its historical and projected experience with similar customer contracts. The Company's contracts typically do not provide for product returns. In general, estimates of variable consideration and constraints are not material to the Company's financial statements. Remaining Performance Obligations As of December 29, 2018, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was approximately $272.7 million . This remaining performance obligation primarily relates to extended warranty and support and maintenance obligations in the Company's Breast Health and Skeletal Health reportable segments. The Company expects to recognize approximately 29% of this amount as revenue in 2019, 27% in 2020, 20% in 2021, 15% in 2022, and 9% thereafter. The Company has applied the practical expedient to not include remaining performance obligations related to contracts with original expected durations of one year or less in the amounts above. Contract Assets and Liabilities The Company discloses accounts receivables separately in the Consolidated Balance Sheets at their net realizable value. Contract assets primarily relate to the Company's conditional right to consideration for work completed but not billed at the reporting date. Contract assets at the beginning and end of the period, as well as the changes in the balance, were immaterial. Contract liabilities primarily relate to payments received from customers in advance of performance under the contract. The Company records a contract liability, or deferred revenue, when it has an obligation to provide service, and to a much lesser extent product, to the customer and payment is received or due in advance of performance. Deferred revenue primarily relates to support and maintenance contracts and extended warranty obligations within the Company's Breast Health, Medical Aesthetics and Skeletal Health reportable segments. Contract liabilities are classified as other current liabilities and other long-term liabilities on the Consolidated Balance Sheets. For the first quarter of fiscal 2019 the Company recognized $57.0 million in revenue that was included in the contract liability balance at September 29, 2018. Practical Expedients With the adoption of ASC 606, the Company elected to apply certain permitted practical expedients. In evaluating the cumulative-effect adjustment to retained earnings, the Company adopted the standard only for contracts that were not complete as of the date of adoption. For contracts that were modified prior to the adoption date, the Company elected to present the aggregate effect of all contract modifications in determining the transaction price and for the allocation to the satisfied and unsatisfied performance obligations. The Company applies a practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. These costs solely comprise sales commissions and typically the commissions are incurred at the time of shipment of product and upon billings for support and maintenance contracts. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 29, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 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 and forward 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 and forward foreign currency contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 6 for further discussion and information on the interest rate caps and forward foreign currency contracts. Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at December 29, 2018 : Fair Value at Reporting Date Using Balance as of December 29, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate cap - derivative 3.3 — 3.3 — Forward foreign currency contracts 6.6 — 6.6 — Total $ 9.9 $ — $ 9.9 $ — Liabilities: Contingent consideration $ 8.3 $ — $ — $ 8.3 Forward foreign currency contracts 0.3 — 0.3 — Total $ 8.6 $ — $ 0.3 $ 8.3 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 the three months ended December 29, 2018 and December 30, 2017 . 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, forward foreign currency 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 and forward foreign currency contracts are recorded at fair value. The carrying amount of the insurance contracts is recorded at the cash surrender value, as required by U.S. GAAP, which approximates fair value. The Company believes the carrying amounts of its equity investments approximate fair value. Amounts outstanding under the Company’s 2018 Credit Agreement (as defined below) and Securitization Program of $1.6 billion and $225.0 million aggregate principal, respectively, as of December 29, 2018 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 $884.1 million and $361.0 million , respectively, as of December 29, 2018 based on their trading prices, representing Level 1 measurements. Refer to Note 6 for the carrying amounts of the various components of the Company’s debt. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 29, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Emsor, S.A. On December 11, 2017, the Company completed the acquisition of Emsor S.A. ("Emsor") for a purchase price of $16.3 million , which includes a hold-back of $0.5 million that is payable eighteen months from the date of acquisition, and contingent consideration which the Company has estimated at $4.9 million . The contingent consideration is payable upon Emsor achieving predefined amounts of cumulative revenue over a two -year period from the date of acquisition. Emsor was a distributor of the Company's Breast and Skeletal Health products in Spain and Portugal. Based on the Company's valuation, it allocated $4.6 million of the purchase price to the value of customer relationship intangible assets and $5.7 million to goodwill. The remaining $6.0 million of purchase price was allocated to acquired tangible assets and liabilities. Faxitron On July 31, 2018, the Company completed the acquisition of Faxitron Bioptics, LLC ("Faxitron") and acquired all of the outstanding shares of Faxitron. The acquisition was funded through available cash, and the total purchase price was $89.5 million , which include hold-backs of $11.7 million that are payable up to one year from the date of acquisition, and contingent consideration which the Company has estimated at $2.9 million . The contingent consideration is payable upon meeting certain revenue growth metrics. Faxitron, headquartered in Tucson, Arizona, develops, manufactures, and markets digital radiography systems. Faxitron's results of operations are reported in the Company's Breast Health reportable segment from the date of acquisition. The total purchase price was allocated to Faxitron's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of July 31, 2018, as set forth below. The preliminary purchase price allocation is as follows: Cash $ 2.4 Accounts receivable 4.0 Inventory 6.0 Other assets 3.1 Accounts payable and accrued expenses (4.9 ) Deferred revenue (1.9 ) Long-term debt (3.3 ) Identifiable intangible assets: Developed technology 44.9 In-process research and development 5.5 Customer relationships 0.5 Trade names 2.3 Deferred income taxes, net (11.5 ) Goodwill 42.4 Purchase Price $ 89.5 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 Faxitron's business. The Company has not yet obtained all of the information related to the fair value of the acquired assets and liabilities, primarily taxes, to finalize the purchase price allocation. As part of the preliminary purchase price allocation, the Company has determined the identifiable intangible assets are developed technology, in-process research and development ("IPR&D"), 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 rates ranging from 17% to 19% . 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 of developed technology and customer relationships is 9 years and for trade names it is 7 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 that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breath Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes. Focal Therapeutics On October 1, 2018, the Company completed the acquisition of Focal Therapeutics, Inc. ("Focal") for an initial purchase price of approximately $120.1 million , which includes holdbacks of $14.0 million that are payable up to one year from the date of acquisition. Focal, headquartered in California, has commercialized 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 preliminary 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. The preliminary purchase price allocation is as follows: Cash $ 2.2 Accounts receivable 2.0 Inventory 8.3 Other assets 0.8 Accounts payable and accrued expenses (5.6 ) Long-term debt (2.5 ) Identifiable intangible assets: Developed technology 83.1 In-process research and development 11.4 Trade names 2.7 Deferred income taxes, net (12.7 ) Goodwill 30.4 Purchase Price $ 120.1 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 Focal's business. The Company has not yet obtained all of the information related to the fair value of the acquired assets and liabilities, primarily intangible assets and taxes, to finalize the purchase price allocation. As part of the preliminary purchase price allocation, the Company has determined the identifiable intangible assets are developed technology, in-process research and development ("IPR&D"), 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 rates ranging from 15.5% to 16.5% . 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 of developed technology is 11 years and for trade names it is 13 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 that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breath Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes. |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | Restructuring Charges The Company evaluates its operations for opportunities to improve operational effectiveness and efficiency, including facility and operations consolidation, and to better align expenses with revenues. In addition, the Company continually assesses its management and organizational structure. As a result of these assessments, the Company has undertaken various restructuring actions, which are described below. The following table displays charges related to these actions recorded in the fiscal 2019 year to date period ( three months ended December 29, 2018 ) and fiscal 2018 (the year ended September 30, 2017) and a rollforward of the accrued balances from September 29, 2018 to December 29, 2018 : Fiscal 2019 Actions Fiscal 2018 Actions Fiscal 2016 Actions Total Restructuring Charges Fiscal 2018 charges: Workforce reductions $ — $ 11.7 $ — $ 11.7 Facility closure costs — 0.9 1.6 2.5 Fiscal 2018 restructuring charges $ — $ 12.6 $ 1.6 $ 14.2 Fiscal 2019 charges: Workforce reductions $ 1.0 $ 0.9 $ — $ 1.9 Facility closure costs — (0.2 ) — (0.2 ) Fiscal 2019 restructuring charges $ 1.0 $ 0.7 $ — $ 1.7 Fiscal 2019 Actions Fiscal 2018 Actions Fiscal 2017 Actions Fiscal 2016 Actions Other Total Rollforward of Accrued Restructuring Balance as of September 29, 2018 $ — $ 4.3 $ 0.8 $ 3.9 $ 0.1 $ 9.1 Fiscal 2019 charges 1.0 0.7 — — — 1.7 Severance payments and adjustments (0.7 ) (1.0 ) (0.3 ) — — (2.0 ) Other payments — (0.5 ) — (0.4 ) — (0.9 ) Balance as of December 29, 2018 $ 0.3 $ 3.5 $ 0.5 $ 3.5 $ 0.1 $ 7.9 Fiscal 2019 Actions During the first quarter of fiscal 2019, the Company decided to terminate certain employees, primarily related to integration activities and other corporate initiatives across multiple business lines. The charges were recorded pursuant to ASC 420, Exit or Disposal Cost Obligations (ASC 420) for one-time termination benefits. As such, the Company recorded severance and benefits charges of $1.0 million . Fiscal 2018 Actions During the first, second and third quarters of fiscal 2018, the Company decided to terminate certain employees across the organization, including a corporate executive and primarily sales and marketing personnel in its Diagnostics and Medical Aesthetics reportable segments. The charges were recorded pursuant to ASC 712, Compensation-Nonretirement Postemployment Benefits (ASC 712) or ASC 420, Exit or Disposal Cost Obligations (ASC 420) depending on the employee. As such, the Company recorded severance and benefits charges of $3.8 million , $1.8 million and $2.3 million in the first, second and third quarters, respectively. Included within the first quarter charge is $1.3 million related to the modification of equity awards. During fiscal 2018, the Company finalized its decision and plan to consolidate its legacy international accounting and customer service organizations into its Manchester, UK location and eliminated these positions in Belgium, France, Italy, Spain and Germany. This transition was completed in the first quarter of fiscal 2019 and these employees were terminated. During fiscal 2018, the Company recorded $2.2 million for severance and benefits pursuant to both ASC 712 and ASC 420 depending on the legal requirements on a country by country basis. The Company recorded an additional $0.6 million in the first quarter of fiscal 2019 for the remaining pro-rata charges. During the third quarter of fiscal 2018, the Company decided to close its Hicksville, New York facility where it manufactured certain Cynosure products. In connection with this plan, certain employees, primarily in manufacturing, were to be terminated. The employees were notified of termination and related benefits in the third quarter of fiscal 2018, and the Company has recorded these charges pursuant to ASC 420. Employees were required to remain employed during this transition period and charges were recorded ratably over the required service period. The Company recorded a total of $0.5 million in severance and benefits charges in fiscal 2018. The Company recorded an additional $0.3 million in the first quarter of fiscal 2019 for the remaining pro-rata charges and this action was completed in January 2019. In the third quarter of fiscal 2018, the Company determined it would not use warehouse space located on Lyberty Way in Westford, Massachusetts. The Company met the cease use date criteria in the third quarter of fiscal 2018, and estimated the time period to sublet the space and related sublease rates resulting in a lease obligation charge of $0.9 million . During the first quarter of fiscal 2019, the Company executed a termination agreement with the landlord and agreed to pay a termination payment of $0.6 million resulting in a benefit of $0.2 million recorded in the first quarter of fiscal 2019. Fiscal 2017 Actions In connection with the closure of the Bedford, Massachusetts facility during the first quarter of fiscal 2017, the Company recorded $3.5 million for lease obligation charges related to the first floor of the facility as the Company determined it had met the cease-use date criteria. The Company made certain assumptions regarding the time period it would take to obtain a subtenant and the sublease rates it can obtain. During the third quarter of fiscal 2017, the Company updated its assumption regarding the time period it would take to obtain a subtenant at the Bedford location and as a result recorded an additional $1.3 million lease obligation charge. During the third quarter of fiscal 2018, the Company further adjusted its assumptions and lowered the estimate of the sublease income rate and extended the time period to obtain a sub-tenant. As a result, the Company recorded an additional charge of $1.6 million . These estimates may vary from the actual sublease agreements executed, if at all, resulting in an adjustment to the charge. The Company has vacated other portions of the building but not the entire facility, and at this time does not meet the cease-use date criteria to record additional restructuring charges for this facility. |
Borrowings and Credit Arrangeme
Borrowings and Credit Arrangements | 3 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Borrowings and Credit Arrangements | Borrowings and Credit Arrangements The Company’s borrowings consisted of the following: December 29, September 29, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 9.4 $ 74.7 Revolver 85.0 300.0 Securitization Program 225.0 225.0 Total current debt obligations $ 319.4 $ 599.7 Long-term debt obligations, net of debt discount and deferred issuance costs: Term Loan 1,478.9 1,376.3 2025 Senior Notes 935.7 935.2 2028 Senior Notes 393.3 393.1 Total long-term debt obligations $ 2,807.9 $ 2,704.6 Total debt obligations $ 3,127.3 $ 3,304.3 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 from time to time party thereto. The 2018 Credit Agreement amended and restated the Company's prior credit and guaranty agreement as of October 3, 2017 ("2017 Credit Agreement"). The credit facilities under the 2018 Credit Agreement consist of: • A $1.5 billion secured term loan to the Company ("2018 Amended Term Loan") with a maturity date of December 17, 2023; and • A secured revolving credit facility ("2018 Amended Revolver"; together with the 2018 Amended Term Loan, the "Amended Credit Facilities") under which the Company may borrow up to $1.5 billion , subject to certain sublimits, with a maturity date of December 17, 2023. The Company initially borrowed $350 million under the 2018 Amended Revolver. This initial borrowing, together with the net proceeds of the 2018 Amended Term Loan, were used to repay the amounts outstanding under the term loan and revolving credit facility under 2017 Credit Agreement. Borrowings under the 2018 Credit Agreement bear interest, at the Company's option and in each case plus an applicable margin as follows: • 2018 Amended Term Loan : at the Base Rate, Eurocurrency Rate or LIBOR Daily Floating Rate, • 2018 Amended Revolver : if funded in U.S. dollars, the Base Rate, Eurocurrency Rate, or LIBOR Daily Floating Rate, and, if funded in an alternative currency, the Eurocurrency Rate; and if requested under the swing line sublimit, the Base Rate. The applicable margin to the Base Rate, Eurocurrency Rate, or LIBOR Daily Floating Rate is subject to specified changes depending on the total net leverage ratio as defined in the 2018 Credit Agreement. The borrowings of the 2018 Amended Term Loan initially bear interest at an annual rate equal to the Eurocurrency Rate (i.e., the LIBOR rate) plus an Applicable Rate equal to 1.375% . The borrowings of the 2018 Amended Revolver initially bear interest at a rate equal to the LIBOR Daily Floating Rate plus an Applicable Rate equal to 1.375% . The Company is also required to pay a quarterly commitment fee calculated on the undrawn committed amount available under the 2018 Amended Revolver. The Company is required to make scheduled principal payments under the 2018 Amended Term Loan in increasing amounts ranging from $9.375 million per three -month period commencing with the three-month period ending on December 27, 2019 to $28.125 million per three -month period commencing with the three -month period ending on December 29, 2022 and ending on September 29, 2023. The remaining balance of the 2018 Amended Term Loan after the scheduled principal payments, which is $1.2 billion as of December 29, 2018, and any amounts outstanding under the 2018 Amended Revolver are due at maturity. In addition, subject to the terms and conditions set forth in the 2018 Credit Agreement, the Company may be required to make certain mandatory prepayments from the net proceeds of specified types of asset sales (subject to certain reinvestment rights), debt issuances and insurance recoveries (subject to certain reinvestment rights). These mandatory prepayments are required to be applied by the Company, first, to the 2018 Amended Term Loan, second, to any outstanding amount under any Swing Line Loans, third, to the 2018 Amended Revolver, fourth to prepay any outstanding reimbursement obligations with respect to Letters of Credit and fifth, to cash collateralize any Letters of Credit. Subject to certain limitations, the Company may voluntarily prepay any of the 2018 Credit Facilities without premium or penalty. The 2018 Credit Agreement contains affirmative and negative covenants customarily applicable to senior secured credit facilities, including covenants restricting the ability of the Company, subject to negotiated exceptions, to incur additional indebtedness and grant additional liens on its assets, engage in mergers or acquisitions or dispose of assets, enter into sale-leaseback transactions, pay dividends or make other distributions, voluntarily prepay other indebtedness, enter into transactions with affiliated persons, make investments, and change the nature of their businesses. In addition, the 2018 Credit Agreement requires the Company to maintain certain financial ratios. The 2018 Credit Agreement also contains customary representations and warranties and events of default, including payment defaults, breach of representations and warranties, covenant defaults, cross defaults and an event of default upon a change of control of the Company. Borrowings are secured by first-priority liens on, and a first-priority security interest in, substantially all of the assets of the Company, with certain exceptions. For example, borrowings under the 2018 Credit Agreement are not secured by those accounts receivable that are transferred to the special purpose entity under the Company's Accounts Receivable Securitization program. The 2018 Credit Agreement contains total net leverage ratio and interest coverage ratio financial covenants measured as of the last day of each fiscal quarter. The total net leverage ratio covenant was 5.00 :1.00 beginning on the Company's fiscal quarter ended December 29, 2018, and remains as such until it decreases to 4.50 :1.00 for the quarter ending June 25, 2022. The interest coverage ratio covenant was 3.75 :1.00 beginning on the Company's fiscal quarter ended December 29, 2018, and remains as such for each quarter thereafter. The total net leverage ratio is defined as the ratio of the Company's consolidated net debt as of the quarter end to its consolidated adjusted EBITDA (as defined in the 2018 Credit Agreement) for the four -fiscal quarter period ending on the measurement date. The interest coverage ratio is defined as the ratio of the Company's consolidated adjusted EBITDA for the prior four-fiscal quarter period ending on the measurement date to adjusted consolidated cash interest expense (as defined in the 2018 Credit Agreement) for the same measurement period. The Company was in compliance with these covenants as of December 29, 2018. The Company evaluated the 2018 Credit Agreement for derivatives pursuant to ASC 815, Derivatives and Hedging , and identified embedded derivatives that required bifurcation as the features are not clearly and closely related to the host instrument. The embedded derivatives were a default provision, which could require additional interest payments, and a provision requiring contingent payments to compensate the lenders for changes in tax deductions. The Company determined that the fair value of these embedded derivatives was nominal as of December 29, 2018 . 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% . We accounted for the amendments pursuant to ASC 470, subtopic 50-40, and 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. 2017 Credit Agreement On October 3, 2017, the Company entered into an Amended and Restated Credit and Guaranty Agreement with Bank of America, N.A. and certain other lenders. The 2017 Credit Agreement amended and restated the Company's prior credit and guaranty agreement, originally dated as of May 29, 2015 (the "Prior Credit Agreement"). The proceeds under the 2017 Credit Agreement of $1.8 billion were used, among other things, to pay off the Term Loan of $1.32 billion and the Revolver then outstanding under the Company's Prior Credit Agreement. Pursuant to ASC 470, the accounting for the 2017 Credit Agreement was evaluated consistent with that described above. As a result, the Company recorded a debt extinguishment loss of $1.0 million in the first quarter of fiscal 2018 related to those creditors under the Prior Credit Agreement who ceased being creditors under the 2017 Credit Agreement For the remainder of the creditors, this transaction was accounted for as a modification and pursuant to ASC 470, subtopic 50-40, third-party costs of $1.7 million related to this transaction were recorded as interest expense. Interest expense, weighted average interest rate, and interest rate at the end of period under the 2018 and 2017 Credit Agreements in fiscal 2019, and the 2017 Credit Agreement in fiscal 2018 is as follows: Three Months Ended December 29, 2018 December 30, 2017 Interest expense $ 18.0 $ 12.4 Weighted average interest rate 3.82 % 2.75 % Interest rate at end of period 3.88 % 3.07 % 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. 2022 Senior Notes At December 30, 2017, the Company had 5.250% Senior Notes due 2022 (the “2022 Senior Notes”) outstanding that bore interest at the rate of 5.250% per year, payable semi-annually on January 15 and July 15 of each year. The Company used the net proceeds of the 2025 Senior Notes and the 2028 Senior Notes offering in January 2018, plus available cash, to redeem in full the 2022 Senior Notes in the aggregate principal amount of $1.0 billion on February 15, 2018 at an aggregate redemption price of $1.04 billion , including a make-whole provision payment $37.7 million . Since the Company planned to use the proceeds from the 2025 Senior Notes and the 2028 Senior Notes offering to redeem the 2022 Senior Notes, the Company evaluated the accounting for this transaction under ASC 470 to determine modification versus extinguishment accounting on a creditor-by-creditor basis. Certain 2022 Senior Note holders either did not participate in this refinancing transaction or reduced their holdings and these transactions were accounted for as extinguishments. As a result, the Company recorded a debt extinguishment loss in the second quarter of fiscal 2018 of $44.9 million , which comprised pro-rata amounts of the make-whole provision premium payment, debt discount and debt issuance costs. For the remaining 2022 Senior Notes holders who participated in the refinancing, these transactions were accounted for as modifications because on a creditor-by-creditor basis the present value of the cash flows between the debt instruments before and after the transaction was less than 10%. In the second quarter of fiscal 2018, the Company recorded a portion of the transaction expenses of $2.6 million to interest expense pursuant to ASC 470, subtopic 50-40. The remaining debt issuance costs of $1.5 million and debt discount of $1.5 million related to the modified debt were allocated between the 2025 Senior Notes and 2028 Senior Notes on a pro-rata basis, and will be amortized over the life of the debt using the effective interest method. 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, 2025 Senior Notes and 2022 Senior Notes is as follows: Three Months Ended December 29, 2018 December 30, 2017 Interest Rate Interest Expense Interest Expense 2028 Senior Notes 4.625 % $ 4.8 $ — 2025 Senior Notes 4.375 % 10.9 3.5 2022 Senior Notes 5.250 % — 14.0 Total $ 15.7 $ 17.5 |
Derivatives
Derivatives | 3 Months Ended |
Dec. 29, 2018 | |
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 Income. During fiscal 2017, 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 6). 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 the interest rate cap agreements was $1.9 million , which was the initial fair value of the instruments recorded in the Company's financial statements. During fiscal 2018, the Company entered into new 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 rate cap agreements was $3.7 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 Prior Credit Agreement and Amended and Restated Credit Agreement 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 end on December 28, 2018 and December 27, 2019 for the interest rate cap agreements entered into in fiscal 2017 and fiscal 2018, respectively. As of December 29, 2018 , the Company determined that the existence of hedge ineffectiveness, if any, was immaterial, and all changes in the fair value of the interest rate caps were recorded in the Consolidated Statements of Comprehensive Income as a component of AOCI. During the three months ended December 29, 2018 and December 30, 2017 , the Company reclassified $0.7 million and $2.3 million , respectively, from AOCI to the Consolidated Statements of Income related to the interest rate cap agreements. The Company expects to similarly reclassify a loss of approximately $3.7 million from AOCI to the Consolidated Statements of Operations in the next twelve months. The aggregate fair value of these interest rate caps was $3.3 million and $7.7 million at December 29, 2018 and September 29, 2018 , respectively, and is included in Prepaid expenses and other current assets on the Company’s Consolidated Balance Sheet. Refer to Note 2 “Fair Value Measurements” above for related fair value disclosures. Forward Foreign Currency Contracts The Company enters into forward foreign currency exchange 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 has not elected hedge accounting for any of the forward foreign currency contracts it has executed; however, the Company may seek to apply hedge accounting in future scenarios. The change in the fair value of these contracts is recognized directly in earnings as a component of other income (expense), net. During the three months ended December 29, 2018 and December 30, 2017 , the Company recorded net realized gain of $1.7 million and net realized loss of $0.2 million , respectively, from settling forward foreign currency contracts and unrealized gains of $3.4 million and $1.5 million , respectively, on the mark-to-market for its outstanding forward foreign currency contracts. As of December 29, 2018 , 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 Euro, UK Pound, Australian dollar, Canadian Dollar, Chinese Yuan and Japanese Yen with an aggregate notional amount of $219.9 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 December 29, 2018 : Balance Sheet Location December 29, 2018 September 29, 2018 Assets: Derivative instruments designated as a cash flow hedge: Interest rate cap agreements Prepaid expenses and other current assets $ 3.3 $ 6.0 Interest rate cap agreements Other assets — 1.7 $ 3.3 $ 7.7 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 6.6 $ 3.2 Liabilities: Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ 0.3 $ 0.2 The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps for the following reporting periods: Three Months Ended December 29, 2018 December 30, 2017 Amount of loss recognized in other comprehensive income, net of taxes: Interest rate cap agreements $ (3.9 ) $ (4.3 ) The following table presents the adjustment to fair value (realized and unrealized) recorded within Other income (expense), net in the Consolidated Statements of Income for derivative instruments for which the Company did not elect hedge accounting: Derivatives not classified as hedging instruments Amount of Gain (Loss) Recognized in Income Three Months Ended December 29, 2018 Three Months Ended December 30, 2017 Forward foreign currency contracts $ 5.1 $ 1.2 |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 29, 2018 | |
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 will continue to accrue until Minerva ceases its infringing conduct. A hearing is scheduled on February 26, 2019 regarding the parties' post-trial motions, including the Company's motion for a permanent injunction seeking to prohibit Minerva from selling infringing devices. 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"), which appeal is pending. 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 in 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. Trial is scheduled for July 20, 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 January 30, 2012 and March 6, 2012, Enzo Life Sciences, Inc. ("Enzo") filed suit against the Company and its subsidiary, Gen-Probe Incorporated ("Gen-Probe"), in the United States District Court for the District of Delaware, alleging that certain of Gen-Probe’s diagnostics products, including products that incorporate Gen-Probe’s hybridization protection assay technology (HPA), infringe Enzo’s U.S. patent 6,992,180 (the '180 patent). On July 16, 2012, Enzo amended its complaint to include additional products that include HPA or TaqMan reagent chemistry. Both complaints sought preliminary and permanent injunctive relief and unspecified damages. On June 28, 2017, in ruling on the Company’s motion for summary judgment, the Court held that the '180 patent was invalid for nonenablement. On August 18, 2017, Enzo filed a notice of appeal with the Court of Appeals for the Federal Circuit. Oral argument in the appeal took place on January 7, 2019. 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 March 27, 2015, Enzo filed an additional suit against the Company in the United States District Court for the District of Delaware, alleging that certain additional Company molecular diagnostic products also infringe the '180 patent. The complaint further alleges that certain of the Company’s molecular diagnostic products using target capture technology infringe Enzo’s U.S. Patent 7,064,197 (the '197 patent). On June 11, 2015, this matter was stayed pending the resolution of summary judgment motions in the other related suits involving the '197 patent. On March 30, 2016, the Company petitioned inter partes review of the ‘197 patent at the USPTO. The USPTO instituted the two inter partes reviews on all challenged claims on October 4, 2016. On September 28 and October 2, 2017, the PTAB issued final written decisions in the two inter partes reviews finding that all of the challenged claims of the ‘197 patent are unpatentable. On November 29, 2017, Enzo appealed the PTAB decisions to the United States Court of Appeals for the Federal Circuit, which appeals remain pending. At this time, based on available information regarding this litigation and the related inter partes reviews, 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 October 3, 2016, Enzo filed an additional suit against the Company in the United States District Court for the District of Delaware, alleging that products employing the Company's proprietary target capture technologies infringe U.S. Patent 6,221,581 (the '581 patent). The Court granted Enzo’s motion to file an amended complaint adding Grifols Diagnostic Solutions Inc. and Grifols, S.A. (“Grifols”) as parties on November 9, 2017. On October 4, 2017, the Company filed for inter partes review of the ‘581 patent with the USPTO based on Enzo’s asserted claims. On April 18, 2018, the USPTO denied the Company’s petition for inter partes review. On May 18, 2018, the Company filed a request for rehearing of the USPTO denial order, which remains pending. On October 15, 2018, the Court issued a Memorandum Opinion and Order regarding claim construction of the '581 patent, ruling in favor of the Company and Grifols on nearly all disputed claim terms. On November 5, 2018, the Court entered final judgment in favor of the Company and Grifols following the filing of a Joint Stipulation of Noninfringement. On November 28, 2018, Enzo filed a notice of appeal with the Court of Appeals for the Federal Circuit, which appeal remains pending. At this time, based on available information regarding this litigation and the related inter partes reviews, 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 May 31, 2018, the Company filed a motion to sever and stay their arbitrable license defense. Trial is scheduled for February 18, 2020. The Company filed petitions for inter partes review of the asserted patents on February 6, 2018. The USPTO denied the Company’s petitions for inter partes review in August and September, 2018. The Company filed requests for rehearing of the denial orders, which requests are pending. 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 range of estimates, of potential losses. On July 27, 2016, plaintiff ARcare, Inc., individually and as putative representative of a purported nationwide class, filed a complaint against Cynosure. The plaintiff alleges that Cynosure violated the Telephone Consumer Protection Act by: (i) sending fax advertisements that did not comply with statutory and Federal Communications Commission requirements that senders provide recipients with certain information about how to opt out from receiving faxed advertisements in the future; and (ii) sending unsolicited fax advertisements. The complaint sought damages, declaratory and injunctive relief, and attorneys’ fees on behalf of a purported class of all recipients of purported fax advertisements that the plaintiff alleges did not receive an adequate opt-out notice. On September 30, 2016, Cynosure answered the complaint and denied liability. On September 7, 2016, the plaintiff sent a demand letter seeking a class settlement for statutory damages under Massachusetts General Laws, Chapter 93A § 9 (“Chapter 93A”). On October 7, 2016, Cynosure responded denying any liability under Chapter 93A, but offering the plaintiff statutory damages of $25 on an individual basis. In March 2017, Cynosure and ARcare entered into a settlement agreement, subject to court approval, which requires Cynosure to pay settlement compensation of $8.5 million notwithstanding the number of claims filed. If approved, Cynosure would receive a full release from the settlement class concerning the conduct alleged in the complaint. As a result of the settlement agreement, Cynosure recorded a charge of $9.2 million , in the period ended December 31, 2016, which continues to be accrued as of December 29, 2018 . On June 26 and 28, 2017, the Company filed suit against FUJIFILM Corp., FUJIFILM Medical Systems USA, Inc., and FUJIFILM Techno Products Co., Ltd. (collectively “Fujifilm”) in the United States District Court for the District of Connecticut and the United States International Trade Commission (“ITC”), respectively, alleging that Fujifilm’s Aspire Cristalle mammography system infringes U.S. Patent Nos. 7,831,296; 8,452,379; 7,688,940; and 7,986,765. The Company seeks preliminary and permanent injunctions and an exclusion order against Fujifilm from making, using, selling, offering for sale, or importing into the United States allegedly infringing product and also seeks enhanced damages and interest. A hearing was held at the ITC before an Administrative Law Judge (“ALJ”) from April 9, 2018 to April 13, 2018. On July 26, 2018, the ALJ issued an initial determination finding that Fujifilm infringed all of the patents brought to trial and rejected Fujifilm’s defenses against these patents. The ALJ recommended an exclusion order that prevents the importation of infringing Fujifilm products into the United States, as well as a cease-and-desist order preventing the further sale and marketing of infringing Fujifilm products in the United States. On January 25, 2019, the parties entered into a Patent Cross License and Settlement Agreement to resolve all litigation among the parties. Under the agreement, in consideration of the licenses, releases, non-asserts and other immunities that the parties granted to each other, Fujifilm agreed to pay the Company an upfront license fee and an ongoing royalty related to the sale of Fujifilm’s mammography system. The execution of the settlement agreement is a non-recognized subsequent event. The payments to the Company are not material to its results of operations. On March 2, 2018, FUJIFILM Corporation and FUJIFILM Medical Systems U.S.A., Inc. (collectively “Fujifilm2”) filed suit against the Company in the United States District Court for the District of Delaware alleging that certain of the Company’s mammography systems infringe U.S. Patent Nos. 7,453,979; 7,639,779; RE44,367; and 8,684,948. Fujifilm2 further alleges that the Company violated United States antitrust laws and Delaware competition laws regarding the sale of certain of the Company’s mammography systems. Fujifilm2 seeks injunctive relief and unspecified monetary damages including statutory treble damages for certain claims. The parties agreed to resolve all litigation among them, including this case, pursuant to the Patent Cross License and Settlement Agreement described in the preceding paragraph. The Company is a party to various other legal proceedings and claims arising out of the ordinary course of its business. The Company believes that except for those matters described above there are no other proceedings or claims pending against it the ultimate resolution of which could have a material adverse effect on its financial condition or results of operations. In all cases, at each reporting period, the Company evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies. Legal costs are expensed as incurred. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share A reconciliation of basic and diluted share amounts is as follows: Three Months Ended December 29, December 30, Basic weighted average common shares outstanding 270,590 276,856 Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units 1,782 2,212 Incremental shares from Convertible Notes premium — 1,734 Diluted weighted average common shares outstanding 272,372 280,802 Weighted-average anti-dilutive shares related to: Outstanding stock options 3,339 2,272 Stock Units 4 216 The Company had outstanding Convertible Notes in the first quarter of the prior fiscal year. At that time, the principal balance and any conversion premium could be satisfied, at the Company's option, by issuing shares of common stock, cash or a combination of shares and cash. The Company's policy was that it would settle the principal balance of the Convertible Notes in cash. As such, in the first quarter of fiscal 2018, the Company applied the treasury stock method to these securities and the dilution related to the conversion premium of the convertible notes was included in the calculation of diluted weighted-average shares outstanding to the extent each issuance is dilutive based on the average stock price during each reporting period being greater than the conversion price of the respective Notes. In those reporting periods in which the Company has reported net income, anti-dilutive shares include those stock options that either have an exercise price above the average stock price for the period or the stock options’ combined exercise price and average unrecognized stock compensation expense upon exercise is greater than the average stock price. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The following presents stock-based compensation expense in the Company’s Consolidated Statements of Income: Three Months Ended December 29, December 30, Cost of revenues $ 2.0 $ 2.2 Research and development 2.7 2.5 Selling and marketing 2.7 2.9 General and administrative 9.7 7.5 Restructuring — 1.3 $ 17.1 $ 16.4 The Company granted options to purchase 0.9 million and 1.6 million shares of the Company's common stock during the three months ended December 29, 2018 and December 30, 2017 , respectively, with weighted-average exercise prices of $40.96 and $40.82 , respectively. There were 6.5 million options outstanding at December 29, 2018 with a weighted-average exercise price of $33.75 . The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table: Three Months Ended December 29, December 30, Risk-free interest rate 3.0 % 2.1 % Expected volatility 34.3 % 35.3 % Expected life (in years) 4.8 4.7 Dividend yield — — Weighted average fair value of options granted $ 13.41 $ 13.00 The Company granted 0.9 million and 0.8 million restricted stock units (RSUs) during each of the three months ended December 29, 2018 and December 30, 2017 , respectively, with weighted-average grant date fair values of $40.98 and $40.79 per unit, respectively. In addition, the Company granted 0.1 million and 0.4 million performance stock units (PSUs) during the three months ended December 29, 2018 and December 30, 2017 , respectively, to members of its senior management team, which have a weighted-average grant date fair value of $40.97 and $40.86 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 is recognizing compensation expense 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 0.3 million market based awards (MSUs) to its senior management team during the three months ended December 29, 2018 and December 30, 2017 , 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 $55.13 and $49.45 per share using the Monte Carlo simulation model. The Company is recognizing compensation expense for the MSUs ratably over the service period. At December 29, 2018 , there was 2.7 million in aggregate RSUs, PSUs and MSUs outstanding. At December 29, 2018 , there was $33.4 million and $92.2 million of unrecognized compensation expense related to stock options and stock units (comprised of RSUs, PSUs and MSUs), respectively, to be recognized over a weighted-average period of 2.8 and 2.2 years, respectively. |
Other Balance Sheet Information
Other Balance Sheet Information | 3 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information | Other Balance Sheet Information December 29, September 29, Inventories Raw materials $ 149.4 $ 134.9 Work-in-process 52.7 52.1 Finished goods 216.5 197.1 $ 418.6 $ 384.1 Property, plant and equipment Equipment $ 387.3 $ 380.3 Equipment under customer usage agreements 408.5 399.6 Building and improvements 188.7 188.3 Leasehold improvements 63.1 63.0 Land 46.3 46.3 Furniture and fixtures 17.3 16.8 1,111.2 1,094.3 Less – accumulated depreciation and amortization (638.6 ) (616.1 ) $ 472.6 $ 478.2 |
Business Segments and Geographi
Business Segments and Geographic Information | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Business Segments and Geographic Information | Business Segments and Geographic Information The Company has five reportable segments: Diagnostics, Breast Health, Medical Aesthetics, GYN Surgical and Skeletal Health. Certain reportable segments represent an aggregation of operating units within each segment. 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 five principal operating segments consist of inventories, intangible assets, goodwill, and property, plant and equipment. The Company fully allocates depreciation expense to its five reportable segments. The Company has presented all other identifiable assets as corporate assets. There were no inter-segment revenues during the three months ended December 29, 2018 and December 30, 2017 . Segment information is as follows: Three Months Ended December 29, December 30, Total revenues: Diagnostics $ 296.6 $ 284.6 Breast Health 324.7 288.0 Medical Aesthetics 79.8 91.3 GYN Surgical 108.4 107.5 Skeletal Health 21.2 19.7 $ 830.7 $ 791.1 Income (loss) from operations: Diagnostics $ 43.3 $ 36.5 Breast Health 97.8 89.7 Medical Aesthetics (25.2 ) (23.0 ) GYN Surgical 27.0 30.2 Skeletal Health (2.4 ) 0.7 $ 140.5 $ 134.1 Depreciation and amortization: Diagnostics $ 61.8 $ 64.7 Breast Health 9.3 4.9 Medical Aesthetics 25.5 28.5 GYN Surgical 22.0 22.9 Skeletal Health 0.2 0.2 $ 118.8 $ 121.2 Capital expenditures: Diagnostics $ 14.4 $ 11.9 Breast Health 2.1 3.5 Medical Aesthetics 1.1 1.6 GYN Surgical 3.5 2.4 Skeletal Health 0.3 0.7 Corporate 1.2 1.7 $ 22.6 $ 21.8 December 29, September 29, Identifiable assets: Diagnostics $ 2,405.3 $ 2,442.9 Breast Health 1,122.5 972.4 Medical Aesthetics 895.1 913.3 GYN Surgical 1,382.4 1,414.9 Skeletal Health 31.6 30.3 Corporate 1,094.6 1,457.1 $ 6,931.5 $ 7,230.9 The Company had no customers that represented greater than 10% of consolidated revenues during the three months ended December 29, 2018 and December 30, 2017 . The Company operates in the following major geographic areas as noted in the below chart. Revenue data is based upon customer location. Other than the United States, no single country accounted for more than 10% of consolidated revenues. The Company’s sales in Europe are predominantly derived from France, Germany and the United Kingdom. The Company’s sales in Asia-Pacific are predominantly derived from China, Australia and Japan. The “Rest of World” designation includes Canada, Latin America and the Middle East. Revenues by geography as a percentage of total revenues were as follows: Three Months Ended December 29, December 30, United States 74.9 % 75.5 % Europe 12.2 % 11.5 % Asia-Pacific 8.4 % 8.7 % Rest of World 4.5 % 4.3 % 100.0 % 100.0 % |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 29, 2018 | |
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 months ended December 29, 2018 was 5.5% compared to (324.5)% for the corresponding period in the prior year. The effective rate for the current quarter is lower than the statutory rate due to earnings in jurisdictions subject to lower tax rates and a $20.0 million discrete tax benefit recorded in the quarter related to an internal restructuring, partially offset by finalizing the computations under the Tax Cuts and Jobs Act (the "Act") enacted on December 22, 2017 (first quarter of fiscal 2018). As a result of the Act, U.S. corporations are subject to lower tax rates. For the three months ended December 29, 2018, the statutory tax rate for the period was 21% compared to the applicable blended statutory tax rate of 24.5% for the corresponding period in the prior year. The benefit from the change to the applicable statutory rate was partially offset by other changes from the Act including the loss of the domestic production activities deduction benefit, the loss of deduction with respect to certain executive compensation, and the application of the tax on global intangible low tax income (“GILTI”), the impact of which was partially offset by the benefit from foreign derived intangible income. For the three months ended December 30, 2017, the effective tax rate was lower than the statutory tax rate primarily due to the impact of the Act, earnings in jurisdictions subject to lower tax rates, and the domestic production activities deduction benefit. Tax Reform The Act significantly revised the U.S. system of corporate taxation by, among other things, lowering the U.S. corporate income tax rate from 35% to 21% , implementing a new international tax system, broadening the tax base and imposing a tax on deemed repatriated earnings of foreign subsidiaries. On December 22, 2017, the SEC issued Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing SEC registrants to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. In accordance with SAB 118, during fiscal 2018 the Company recorded its best estimates based on its interpretation of the U.S. legislation while it continued to accumulate data to finalize the underlying calculations. At December 29, 2018, the Company has completed its accounting for the tax effects of enactment of the Act. As described below, the Company has completed its calculation of the effects on its existing deferred tax balances and the one-time transition tax, and recognized a final net benefit amount of $341.2 million , which is included as a component of income tax expense. Of this amount, the Company recorded $329.2 million for the three months ended December 30, 2017 and $346.2 million was recorded for the year ended September 29, 2018. The benefit reduction of $5.0 million recorded in the three months ended December 29, 2018 primarily related to credit utilization limitations and executive compensation deduction disallowances resulting from the completion of computations reflecting the effects of clarifying guidance issued by the U.S. Treasury during the quarter. Deferred tax assets and liabilities : The Company recorded a final net reduction of its deferred tax liabilities of $341.2 million related to the Act, as compared to the Company’s provisional net reduction of $346.4 million as of September 29, 2018. The Act resulted in a tax benefit pertaining to the re-measurement of certain U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21% , partially offset by additional tax expense pertaining to credit utilization limitations and executive compensation deduction disallowances. Foreign tax effects : The one-time transition tax is based on the Company’s total post-1986 earnings and profits (E&P) which were previously deferred from U.S. income taxes. The Company has finalized its calculation of the total post-1986 foreign E&P for these foreign subsidiaries resulting in no cumulative net income tax expense related to the one-time transition tax. The Act subjects a U.S. shareholder to tax on GILTI earned by certain foreign subsidiaries. The FASB Staff Q&A, Topic 740, No. 5, Accounting for Global Intangible Low-Taxed Income , states that an entity can make an accounting policy election to either recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or to provide for the tax expense related to GILTI in the year the tax is incurred as a period expense only. The Company will account for GILTI in the year the tax is incurred as a period cost. Other Tax Accounting Pronouncements On October 24, 2016, the FASB issued ASU 2016-16, which removes the prohibition in ASC 740 against the immediate recognition of the current and deferred income tax effects of intra-entity transfers of assets other than inventory. Under ASU 2016-16, the selling (transferring) entity is required to recognize a current tax expense or benefit upon transfer of the asset. Similarly, the purchasing (receiving) entity is required to recognize a deferred tax asset or deferred tax liability, as well as the related deferred tax benefit or expense, upon receipt of the asset. This ASU is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. The Company adopted ASU 2016-16 in the first quarter of fiscal 2019 on a modified retrospective basis through a cumulative-effect adjustment to decrease the opening balance of accumulated deficit within stockholders' equity as of September 30, 2018, the first day of fiscal 2019. This change in accounting principle resulted in an increase in deferred tax assets of $2.9 million , a decrease in accumulated deficit of $2.5 million , and a decrease in prepaid taxes of $0.4 million as of the beginning of the Company’s fiscal year beginning September 30, 2018. The Company was required to account for the internal restructuring discussed above under ASU 2016-16 and recorded a $29.1 million increase to income tax expense and income tax liabilities and a decrease of $49.1 million to deferred tax expense and net deferred tax liabilities for the three months ended December 29, 2018. The net result is an increase to net income of $20.0 million , or an earnings per share increase of $0.07 . Non-Income Tax Matters The Company is subject to tax examinations for value added, sales-based, payroll and other non-income tax items. A number of these examinations are ongoing in various jurisdictions. The Company takes certain non-income tax positions in the jurisdictions in which it operates pursuant to ASC 450. In the normal course of business, the Company's positions and conclusions related to its non-income tax positions could be challenged, resulting in assessments by governmental authorities. While the Company believes estimated losses previously recorded are reasonable, certain audits are still ongoing and additional charges could be recorded in the future. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets and Goodwill | Intangible Assets Intangible assets consisted of the following: Description As of December 29, 2018 As of September 29, 2018 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Acquired intangible assets: Developed technology $ 4,656.2 $ 2,586.3 $ 4,573.3 $ 2,505.8 In-process research and development 16.9 — 5.5 — Customer relationships 556.0 435.9 556.5 428.1 Trade names 315.1 179.8 312.5 175.0 Distribution agreement 42.0 9.3 42.0 8.0 Non-competition agreements 1.5 0.6 1.5 0.5 Business licenses 2.4 2.2 2.4 2.2 Total acquired intangible assets $ 5,590.1 $ 3,214.1 $ 5,493.7 $ 3,119.6 Internal-use software 56.8 48.1 58.5 49.3 Capitalized software embedded in products 22.4 4.9 19.6 4.3 Total intangible assets $ 5,669.3 $ 3,267.1 $ 5,571.8 $ 3,173.2 The estimated remaining amortization expense of the Company's acquired intangible assets as of December 29, 2018 for each of the five succeeding fiscal years is as follows: Remainder of Fiscal 2019 $ 288.2 Fiscal 2020 $ 366.8 Fiscal 2021 $ 345.2 Fiscal 2022 $ 332.5 Fiscal 2023 $ 232.9 |
Product Warranties
Product Warranties | 3 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Product Warranties | Product Warranties Product warranty activity was as follows: Balance at Beginning of Period Provisions Settlements/ Adjustments Balance at End of Period Three Months Ended: December 29, 2018 $ 15.9 $ 2.6 $ (3.4 ) $ 15.1 December 30, 2017 $ 17.0 $ 4.3 $ (5.1 ) $ 16.2 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented: Three Months Ended December 29, 2018 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (26.6 ) $ (1.1 ) $ 2.2 $ (25.5 ) Other comprehensive income (loss) before reclassifications (3.2 ) — (3.9 ) (7.1 ) Amounts reclassified to statement of income — — 0.7 0.7 Ending Balance $ (29.8 ) $ (1.1 ) $ (1.0 ) $ (31.9 ) Three Months Ended December 30, 2017 Foreign Currency Translation Marketable Securities Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (18.5 ) $ (0.4 ) $ (1.6 ) $ 4.3 $ (16.2 ) Other comprehensive income (loss) before reclassifications 5.5 — 0.6 (4.3 ) 1.8 Amounts reclassified to statement of income — 0.4 — 2.3 2.7 Ending Balance $ (13.0 ) $ — $ (1.0 ) $ 2.3 $ (11.7 ) |
Share Repurchase
Share Repurchase | 3 Months Ended |
Dec. 29, 2018 | |
Subsequent Events [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 expires on June 13, 2023. Under this authorization, during the first quarter of 2019, the Company repurchased 3.7 million shares of its common stock for a total consideration of $150.1 million of which $3.1 million was paid subsequent to December 29, 2018. As of December 29, 2018, $261.5 million was available under this authorization. |
New Accounting Pronouncements
New Accounting Pronouncements | 3 Months Ended |
Dec. 29, 2018 | |
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) . 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 on its consolidated financial position and results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify specific guidance issued in ASC 2016-02. The guidance for both ASU 2016-02 and ASU 2018-10 is effective for annual periods beginning after December 15, 2018, and is applicable to the Company in fiscal 2020. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is currently evaluating the anticipated impact of the adoption of ASU 2016-02 and ASU 2018-10 on its consolidated financial position and results of operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance changes how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values (e.g. cost method investments), however; the exception requires the Company to consider relevant transactions that can be reasonably known to identify any observable price changes that would impact the fair value . This guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. This guidance is effective for annual periods beginning after December 15, 2017, and is applicable to the Company in fiscal 2019 . The adoption of ASU 2016-01 did not have a material effect on the Company's consolidated financial statements. |
New Accounting Pronouncements (
New Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 29, 2018 | |
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) . 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 on its consolidated financial position and results of operations. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The guidance requires an entity to recognize a right-of-use asset and a lease liability for virtually all of its leases with terms of more than 12 months. Recognition, measurement and presentation of expenses will depend on classification as a finance or operating lease. The amendments also require certain quantitative and qualitative disclosures about leasing arrangements. In July 2018, the FASB issued ASU No. 2018-10, Codification Improvements to Topic 842, Leases , to clarify specific guidance issued in ASC 2016-02. The guidance for both ASU 2016-02 and ASU 2018-10 is effective for annual periods beginning after December 15, 2018, and is applicable to the Company in fiscal 2020. Early adoption is permitted. The updated guidance requires a modified retrospective adoption. The Company is currently evaluating the anticipated impact of the adoption of ASU 2016-02 and ASU 2018-10 on its consolidated financial position and results of operations. In January 2016, the FASB issued ASU No. 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities . This guidance changes how entities measure equity investments that do not result in consolidation and are not accounted for under the equity method. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values (e.g. cost method investments), however; the exception requires the Company to consider relevant transactions that can be reasonably known to identify any observable price changes that would impact the fair value . This guidance also changes certain disclosure requirements and other aspects of current U.S. GAAP. This guidance is effective for annual periods beginning after December 15, 2017, and is applicable to the Company in fiscal 2019 . The adoption of ASU 2016-01 did not have a material effect on the Company's consolidated financial statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following table provides revenue from contracts with customers by business and geographic region on a disaggregated basis: Three Months Ended December 29, 2018 Three Months Ended December 30, 2017 Business ( in millions ) United States International Total United States International Total Diagnostics: Cytology & Perinatal $ 79.2 $ 38.9 $ 118.1 $ 84.7 $ 38.7 $ 123.4 Molecular Diagnostics 134.1 30.2 164.3 123.9 24.7 148.6 Blood Screening 14.2 — 14.2 12.6 — 12.6 Total $ 227.5 $ 69.1 $ 296.6 $ 221.2 $ 63.4 $ 284.6 Breast Health: Breast Imaging $ 206.5 $ 63.2 $ 269.7 $ 179.8 $ 56.1 $ 235.9 Interventional Breast Solutions 46.1 8.9 55.0 44.6 7.5 52.1 Total $ 252.6 $ 72.1 $ 324.7 $ 224.4 $ 63.6 $ 288.0 Medical Aesthetics $ 37.3 $ 42.5 $ 79.8 $ 46.5 $ 44.8 $ 91.3 GYN Surgical $ 91.1 $ 17.3 $ 108.4 $ 91.5 $ 16.0 $ 107.5 Skeletal Health $ 13.3 $ 7.9 $ 21.2 $ 13.6 $ 6.1 $ 19.7 $ 621.8 $ 208.9 $ 830.7 $ 597.2 $ 193.9 $ 791.1 Three Months Ended Three Months Ended Geographic Regions ( in millions ) December 29, 2018 December 30, 2017 United States $ 621.8 $ 597.2 Europe 101.1 91.3 Asia-Pacific 69.6 68.4 Rest of World 38.2 34.2 $ 830.7 $ 791.1 The following table provides revenue recognized by source: Three Months Ended Three Months Ended Revenue by type (in millions) December 29, 2018 December 30, 2017 Capital equipment, components and software $ 248.3 $ 206.5 Consumables 434.8 444.2 Service 141.8 135.4 Other 5.8 5.0 $ 830.7 $ 791.1 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
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 December 29, 2018 : Fair Value at Reporting Date Using Balance as of December 29, 2018 Quoted Prices in Active Market for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Assets: Interest rate cap - derivative 3.3 — 3.3 — Forward foreign currency contracts 6.6 — 6.6 — Total $ 9.9 $ — $ 9.9 $ — Liabilities: Contingent consideration $ 8.3 $ — $ — $ 8.3 Forward foreign currency contracts 0.3 — 0.3 — Total $ 8.6 $ — $ 0.3 $ 8.3 |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Faxitron | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is as follows: Cash $ 2.4 Accounts receivable 4.0 Inventory 6.0 Other assets 3.1 Accounts payable and accrued expenses (4.9 ) Deferred revenue (1.9 ) Long-term debt (3.3 ) Identifiable intangible assets: Developed technology 44.9 In-process research and development 5.5 Customer relationships 0.5 Trade names 2.3 Deferred income taxes, net (11.5 ) Goodwill 42.4 Purchase Price $ 89.5 |
Focal Therapeutics | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The preliminary purchase price allocation is as follows: Cash $ 2.2 Accounts receivable 2.0 Inventory 8.3 Other assets 0.8 Accounts payable and accrued expenses (5.6 ) Long-term debt (2.5 ) Identifiable intangible assets: Developed technology 83.1 In-process research and development 11.4 Trade names 2.7 Deferred income taxes, net (12.7 ) Goodwill 30.4 Purchase Price $ 120.1 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Restructuring and Related Activities [Abstract] | |
Charges Taken Related to Restructuring Actions | The following table displays charges related to these actions recorded in the fiscal 2019 year to date period ( three months ended December 29, 2018 ) and fiscal 2018 (the year ended September 30, 2017) and a rollforward of the accrued balances from September 29, 2018 to December 29, 2018 : Fiscal 2019 Actions Fiscal 2018 Actions Fiscal 2016 Actions Total Restructuring Charges Fiscal 2018 charges: Workforce reductions $ — $ 11.7 $ — $ 11.7 Facility closure costs — 0.9 1.6 2.5 Fiscal 2018 restructuring charges $ — $ 12.6 $ 1.6 $ 14.2 Fiscal 2019 charges: Workforce reductions $ 1.0 $ 0.9 $ — $ 1.9 Facility closure costs — (0.2 ) — (0.2 ) Fiscal 2019 restructuring charges $ 1.0 $ 0.7 $ — $ 1.7 |
Charges Taken Related to Accrued Restructuring Actions | Fiscal 2019 Actions Fiscal 2018 Actions Fiscal 2017 Actions Fiscal 2016 Actions Other Total Rollforward of Accrued Restructuring Balance as of September 29, 2018 $ — $ 4.3 $ 0.8 $ 3.9 $ 0.1 $ 9.1 Fiscal 2019 charges 1.0 0.7 — — — 1.7 Severance payments and adjustments (0.7 ) (1.0 ) (0.3 ) — — (2.0 ) Other payments — (0.5 ) — (0.4 ) — (0.9 ) Balance as of December 29, 2018 $ 0.3 $ 3.5 $ 0.5 $ 3.5 $ 0.1 $ 7.9 |
Borrowings and Credit Arrange_2
Borrowings and Credit Arrangements (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Debt Disclosure [Abstract] | |
Company's Borrowings | The Company’s borrowings consisted of the following: December 29, September 29, Current debt obligations, net of debt discount and deferred issuance costs: Term Loan $ 9.4 $ 74.7 Revolver 85.0 300.0 Securitization Program 225.0 225.0 Total current debt obligations $ 319.4 $ 599.7 Long-term debt obligations, net of debt discount and deferred issuance costs: Term Loan 1,478.9 1,376.3 2025 Senior Notes 935.7 935.2 2028 Senior Notes 393.3 393.1 Total long-term debt obligations $ 2,807.9 $ 2,704.6 Total debt obligations $ 3,127.3 $ 3,304.3 |
Schedule of Line of Credit Facilities | Interest expense, weighted average interest rate, and interest rate at the end of period under the 2018 and 2017 Credit Agreements in fiscal 2019, and the 2017 Credit Agreement in fiscal 2018 is as follows: Three Months Ended December 29, 2018 December 30, 2017 Interest expense $ 18.0 $ 12.4 Weighted average interest rate 3.82 % 2.75 % Interest rate at end of period 3.88 % 3.07 % |
Schedule Of Interest Expense Under Convertible Notes | Interest expense for the 2028 Senior Notes, 2025 Senior Notes and 2022 Senior Notes is as follows: Three Months Ended December 29, 2018 December 30, 2017 Interest Rate Interest Expense Interest Expense 2028 Senior Notes 4.625 % $ 4.8 $ — 2025 Senior Notes 4.375 % 10.9 3.5 2022 Senior Notes 5.250 % — 14.0 Total $ 15.7 $ 17.5 |
Derivatives (Tables)
Derivatives (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
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 December 29, 2018 : Balance Sheet Location December 29, 2018 September 29, 2018 Assets: Derivative instruments designated as a cash flow hedge: Interest rate cap agreements Prepaid expenses and other current assets $ 3.3 $ 6.0 Interest rate cap agreements Other assets — 1.7 $ 3.3 $ 7.7 Derivatives not designated as hedging instruments: Forward foreign currency contracts Prepaid expenses and other current assets $ 6.6 $ 3.2 Liabilities: Derivatives not designated as hedging instruments: Forward foreign currency contracts Accrued expenses $ 0.3 $ 0.2 |
Schedule of Unrealized Loss Recognized in AOCI | The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps for the following reporting periods: Three Months Ended December 29, 2018 December 30, 2017 Amount of loss recognized in other comprehensive income, net of taxes: Interest rate cap agreements $ (3.9 ) $ (4.3 ) |
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 Other income (expense), net in the Consolidated Statements of Income for derivative instruments for which the Company did not elect hedge accounting: Derivatives not classified as hedging instruments Amount of Gain (Loss) Recognized in Income Three Months Ended December 29, 2018 Three Months Ended December 30, 2017 Forward foreign currency contracts $ 5.1 $ 1.2 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Basic and Diluted Share Amounts | A reconciliation of basic and diluted share amounts is as follows: Three Months Ended December 29, December 30, Basic weighted average common shares outstanding 270,590 276,856 Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units 1,782 2,212 Incremental shares from Convertible Notes premium — 1,734 Diluted weighted average common shares outstanding 272,372 280,802 Weighted-average anti-dilutive shares related to: Outstanding stock options 3,339 2,272 Stock Units 4 216 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Expense in Consolidated Statements of Operations | The following presents stock-based compensation expense in the Company’s Consolidated Statements of Income: Three Months Ended December 29, December 30, Cost of revenues $ 2.0 $ 2.2 Research and development 2.7 2.5 Selling and marketing 2.7 2.9 General and administrative 9.7 7.5 Restructuring — 1.3 $ 17.1 $ 16.4 |
Weighted-Average Assumptions Utilized to Value Stock Options | The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table: Three Months Ended December 29, December 30, Risk-free interest rate 3.0 % 2.1 % Expected volatility 34.3 % 35.3 % Expected life (in years) 4.8 4.7 Dividend yield — — Weighted average fair value of options granted $ 13.41 $ 13.00 |
Other Balance Sheet Informati_2
Other Balance Sheet Information (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Balance Sheet Related Disclosures [Abstract] | |
Other Balance Sheet Information of Inventories | December 29, September 29, Inventories Raw materials $ 149.4 $ 134.9 Work-in-process 52.7 52.1 Finished goods 216.5 197.1 $ 418.6 $ 384.1 |
Other Balance Sheet Information of Property, Plant and Equipment | Property, plant and equipment Equipment $ 387.3 $ 380.3 Equipment under customer usage agreements 408.5 399.6 Building and improvements 188.7 188.3 Leasehold improvements 63.1 63.0 Land 46.3 46.3 Furniture and fixtures 17.3 16.8 1,111.2 1,094.3 Less – accumulated depreciation and amortization (638.6 ) (616.1 ) $ 472.6 $ 478.2 |
Business Segments and Geograp_2
Business Segments and Geographic Information (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Segment information is as follows: Three Months Ended December 29, December 30, Total revenues: Diagnostics $ 296.6 $ 284.6 Breast Health 324.7 288.0 Medical Aesthetics 79.8 91.3 GYN Surgical 108.4 107.5 Skeletal Health 21.2 19.7 $ 830.7 $ 791.1 Income (loss) from operations: Diagnostics $ 43.3 $ 36.5 Breast Health 97.8 89.7 Medical Aesthetics (25.2 ) (23.0 ) GYN Surgical 27.0 30.2 Skeletal Health (2.4 ) 0.7 $ 140.5 $ 134.1 Depreciation and amortization: Diagnostics $ 61.8 $ 64.7 Breast Health 9.3 4.9 Medical Aesthetics 25.5 28.5 GYN Surgical 22.0 22.9 Skeletal Health 0.2 0.2 $ 118.8 $ 121.2 Capital expenditures: Diagnostics $ 14.4 $ 11.9 Breast Health 2.1 3.5 Medical Aesthetics 1.1 1.6 GYN Surgical 3.5 2.4 Skeletal Health 0.3 0.7 Corporate 1.2 1.7 $ 22.6 $ 21.8 December 29, September 29, Identifiable assets: Diagnostics $ 2,405.3 $ 2,442.9 Breast Health 1,122.5 972.4 Medical Aesthetics 895.1 913.3 GYN Surgical 1,382.4 1,414.9 Skeletal Health 31.6 30.3 Corporate 1,094.6 1,457.1 $ 6,931.5 $ 7,230.9 |
Revenues by Geography | Revenues by geography as a percentage of total revenues were as follows: Three Months Ended December 29, December 30, United States 74.9 % 75.5 % Europe 12.2 % 11.5 % Asia-Pacific 8.4 % 8.7 % Rest of World 4.5 % 4.3 % 100.0 % 100.0 % |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: Description As of December 29, 2018 As of September 29, 2018 Gross Carrying Value Accumulated Amortization Gross Carrying Value Accumulated Amortization Acquired intangible assets: Developed technology $ 4,656.2 $ 2,586.3 $ 4,573.3 $ 2,505.8 In-process research and development 16.9 — 5.5 — Customer relationships 556.0 435.9 556.5 428.1 Trade names 315.1 179.8 312.5 175.0 Distribution agreement 42.0 9.3 42.0 8.0 Non-competition agreements 1.5 0.6 1.5 0.5 Business licenses 2.4 2.2 2.4 2.2 Total acquired intangible assets $ 5,590.1 $ 3,214.1 $ 5,493.7 $ 3,119.6 Internal-use software 56.8 48.1 58.5 49.3 Capitalized software embedded in products 22.4 4.9 19.6 4.3 Total intangible assets $ 5,669.3 $ 3,267.1 $ 5,571.8 $ 3,173.2 |
Schedule of Estimated Amortization Expense | The estimated remaining amortization expense of the Company's acquired intangible assets as of December 29, 2018 for each of the five succeeding fiscal years is as follows: Remainder of Fiscal 2019 $ 288.2 Fiscal 2020 $ 366.8 Fiscal 2021 $ 345.2 Fiscal 2022 $ 332.5 Fiscal 2023 $ 232.9 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Guarantees [Abstract] | |
Product Warranty Activity | Product warranty activity was as follows: Balance at Beginning of Period Provisions Settlements/ Adjustments Balance at End of Period Three Months Ended: December 29, 2018 $ 15.9 $ 2.6 $ (3.4 ) $ 15.1 December 30, 2017 $ 17.0 $ 4.3 $ (5.1 ) $ 16.2 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Dec. 29, 2018 | |
Accumulated Other Comprehensive Income [Abstract] | |
Changes in Accumulated Other Comprehensive Income | The following tables summarize the changes in accumulated balances of other comprehensive loss for the periods presented: Three Months Ended December 29, 2018 Foreign Currency Translation Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (26.6 ) $ (1.1 ) $ 2.2 $ (25.5 ) Other comprehensive income (loss) before reclassifications (3.2 ) — (3.9 ) (7.1 ) Amounts reclassified to statement of income — — 0.7 0.7 Ending Balance $ (29.8 ) $ (1.1 ) $ (1.0 ) $ (31.9 ) Three Months Ended December 30, 2017 Foreign Currency Translation Marketable Securities Pension Plans Hedged Interest Rate Caps Total Beginning Balance $ (18.5 ) $ (0.4 ) $ (1.6 ) $ 4.3 $ (16.2 ) Other comprehensive income (loss) before reclassifications 5.5 — 0.6 (4.3 ) 1.8 Amounts reclassified to statement of income — 0.4 — 2.3 2.7 Ending Balance $ (13.0 ) $ — $ (1.0 ) $ 2.3 $ (11.7 ) |
Revenue - Textual (Details)
Revenue - Textual (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Sep. 29, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, remaining performance obligation | $ 272.7 | |
Contract with customer, liability, revenue recognized | $ 57 | |
Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Accounting standard transition adjustment | 6.4 | |
Retained Earnings | Accounting Standards Update 2014-09 | ||
Disaggregation of Revenue [Line Items] | ||
Accounting standard transition adjustment | 6.4 | |
Cumulative effect of new accounting principle in period of adoption, net of tax | $ 2.4 |
Revenue - Performance Obligatio
Revenue - Performance Obligation (Details) | Dec. 29, 2018 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 29.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 27.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 20.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 15.00% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 9.00% |
Revenue - Business Revenue (Det
Revenue - Business Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 830.7 | $ 791.1 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 621.8 | 597.2 |
International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 208.9 | 193.9 |
Diagnostics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 296.6 | 284.6 |
Diagnostics | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 227.5 | 221.2 |
Diagnostics | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 69.1 | 63.4 |
Diagnostics | Cytology & Perinatal | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 118.1 | 123.4 |
Diagnostics | Cytology & Perinatal | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 79.2 | 84.7 |
Diagnostics | Cytology & Perinatal | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 38.9 | 38.7 |
Diagnostics | Molecular Diagnostics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 164.3 | 148.6 |
Diagnostics | Molecular Diagnostics | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 134.1 | 123.9 |
Diagnostics | Molecular Diagnostics | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 30.2 | 24.7 |
Diagnostics | Blood Screening | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14.2 | 12.6 |
Diagnostics | Blood Screening | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 14.2 | 12.6 |
Diagnostics | Blood Screening | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 0 | 0 |
Breast Health | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 324.7 | 288 |
Breast Health | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 252.6 | 224.4 |
Breast Health | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 72.1 | 63.6 |
Breast Health | Breast Imaging | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 269.7 | 235.9 |
Breast Health | Breast Imaging | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 206.5 | 179.8 |
Breast Health | Breast Imaging | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 63.2 | 56.1 |
Breast Health | Interventional Breast Solutions | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 55 | 52.1 |
Breast Health | Interventional Breast Solutions | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 46.1 | 44.6 |
Breast Health | Interventional Breast Solutions | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 8.9 | 7.5 |
Medical Aesthetics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 79.8 | 91.3 |
Medical Aesthetics | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 37.3 | 46.5 |
Medical Aesthetics | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 42.5 | 44.8 |
GYN Surgical | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 108.4 | 107.5 |
GYN Surgical | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 91.1 | 91.5 |
GYN Surgical | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 17.3 | 16 |
Skeletal Health | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 21.2 | 19.7 |
Skeletal Health | United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13.3 | 13.6 |
Skeletal Health | International | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 7.9 | $ 6.1 |
Revenue - Geographical Revenue
Revenue - Geographical Revenue (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 830.7 | $ 791.1 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 621.8 | 597.2 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 101.1 | 91.3 |
Asia-Pacific | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 69.6 | 68.4 |
Rest of World | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 38.2 | $ 34.2 |
Revenue - Revenue by Type (Deta
Revenue - Revenue by Type (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 830.7 | $ 791.1 |
Capital equipment, components and software | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 248.3 | 206.5 |
Consumables | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 434.8 | 444.2 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 141.8 | 135.4 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 5.8 | $ 5 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Value Assets and Liabilities Measured on Recurring Basis (Detail) $ in Millions | Dec. 29, 2018USD ($) |
Assets: | |
Assets measured at fair value on a recurring basis | $ 9.9 |
Liabilities: | |
Liabilities measured at fair value on a recurring basis | 8.6 |
Interest rate cap - derivative | |
Assets: | |
Assets measured at fair value on a recurring basis | 3.3 |
Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 6.6 |
Contingent Consideration Type [Domain] | |
Liabilities: | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 8.3 |
Forward Contracts [Member] | |
Liabilities: | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.3 |
Quoted Prices in Active Market for Identical Assets (Level 1) | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Liabilities: | |
Liabilities measured at fair value on a recurring basis | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Interest rate cap - derivative | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Contingent Consideration Type [Domain] | |
Liabilities: | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 0 |
Quoted Prices in Active Market for Identical Assets (Level 1) | Forward Contracts [Member] | |
Liabilities: | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 |
Significant Other Observable Inputs (Level 2) | |
Assets: | |
Assets measured at fair value on a recurring basis | 9.9 |
Liabilities: | |
Liabilities measured at fair value on a recurring basis | 0.3 |
Significant Other Observable Inputs (Level 2) | Interest rate cap - derivative | |
Assets: | |
Assets measured at fair value on a recurring basis | 3.3 |
Significant Other Observable Inputs (Level 2) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 6.6 |
Significant Other Observable Inputs (Level 2) | Contingent Consideration Type [Domain] | |
Liabilities: | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 0 |
Significant Other Observable Inputs (Level 2) | Forward Contracts [Member] | |
Liabilities: | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0.3 |
Significant Unobservable Inputs (Level 3) | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Liabilities: | |
Liabilities measured at fair value on a recurring basis | 8.3 |
Significant Unobservable Inputs (Level 3) | Interest rate cap - derivative | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Significant Unobservable Inputs (Level 3) | Forward foreign currency contracts | |
Assets: | |
Assets measured at fair value on a recurring basis | 0 |
Significant Unobservable Inputs (Level 3) | Contingent Consideration Type [Domain] | |
Liabilities: | |
Contingent Consideration Classified as Equity, Fair Value Disclosure | 8.3 |
Significant Unobservable Inputs (Level 3) | Forward Contracts [Member] | |
Liabilities: | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | $ 0 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) | Dec. 29, 2018USD ($) |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Borrowed principal | $ 1,000,000,000 |
Credit Agreement | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Borrowed principal | 1,600,000,000 |
Securitization Program | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Borrowed principal | 225,000,000 |
2025 Senior Notes | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Fair value of debt instrument | 884,100,000 |
2028 Senior Notes | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Fair value of debt instrument | 361,000,000 |
Medical Aesthetics | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | |
Carrying value of indefinite-lived intangibles | $ 0 |
Business Combination - Narrativ
Business Combination - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2018 | Jul. 31, 2018 | Dec. 11, 2017 | Dec. 29, 2018 | Sep. 29, 2018 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 2,562.9 | $ 2,533.2 | |||
Emsor | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 16.3 | ||||
Purchase price withheld | $ 0.5 | 4.9 | |||
Period for payment of contingent consideration liabilities | 18 months | ||||
Period of cumulative revenue to trigger payment of contingent consideration liability | 2 years | ||||
Goodwill | 5.7 | ||||
Property, plant and equipment | 6 | ||||
Emsor | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 4.6 | ||||
Faxitron | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 89.5 | ||||
Purchase price withheld | $ 11.7 | $ 2.9 | |||
Period for payment of contingent consideration liabilities | 1 year | ||||
Goodwill | $ 42.4 | ||||
Faxitron | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 44.9 | ||||
Weighted average period | 9 years | ||||
Faxitron | In-process research and development | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 5.5 | ||||
Faxitron | In-process research and development | Minimum | Discount Rate | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, fair value (percentage) | 17.00% | ||||
Faxitron | In-process research and development | Maximum | Discount Rate | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, fair value (percentage) | 19.00% | ||||
Faxitron | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 0.5 | ||||
Weighted average period | 9 years | ||||
Faxitron | Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 2.3 | ||||
Weighted average period | 7 years | ||||
Focal Therapeutics | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 120.1 | ||||
Purchase price withheld | $ 14 | ||||
Period for payment of contingent consideration liabilities | 1 year | ||||
Goodwill | $ 30.4 | ||||
Focal Therapeutics | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 83.1 | ||||
Weighted average period | 11 years | ||||
Focal Therapeutics | In-process research and development | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 11.4 | ||||
Focal Therapeutics | In-process research and development | Minimum | Discount Rate | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, fair value (percentage) | 15.50% | ||||
Focal Therapeutics | In-process research and development | Maximum | Discount Rate | |||||
Business Acquisition [Line Items] | |||||
Intangible assets, fair value (percentage) | 16.50% | ||||
Focal Therapeutics | Trade names | |||||
Business Acquisition [Line Items] | |||||
Identifiable intangible assets | $ 2.7 | ||||
Weighted average period | 13 years |
Business Combination - Purchase
Business Combination - Purchase Price Allocation (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Oct. 01, 2018 | Sep. 29, 2018 | Jul. 31, 2018 |
Purchase Price Allocation [Line Items] | ||||
Goodwill | $ 2,562.9 | $ 2,533.2 | ||
Faxitron | ||||
Purchase Price Allocation [Line Items] | ||||
Cash | $ 2.4 | |||
Accounts receivable | 4 | |||
Inventory | 6 | |||
Other assets | 3.1 | |||
Accounts payable and accrued expenses | (4.9) | |||
Deferred revenue | (1.9) | |||
Long-term debt | (3.3) | |||
Deferred income taxes, net | (11.5) | |||
Goodwill | 42.4 | |||
Purchase Price | 89.5 | |||
Faxitron | Developed technology | ||||
Purchase Price Allocation [Line Items] | ||||
Identifiable intangible assets | 44.9 | |||
Faxitron | In-process research and development | ||||
Purchase Price Allocation [Line Items] | ||||
Identifiable intangible assets | 5.5 | |||
Faxitron | Customer relationships | ||||
Purchase Price Allocation [Line Items] | ||||
Identifiable intangible assets | 0.5 | |||
Faxitron | Trade names | ||||
Purchase Price Allocation [Line Items] | ||||
Identifiable intangible assets | $ 2.3 | |||
Focal Therapeutics | ||||
Purchase Price Allocation [Line Items] | ||||
Cash | $ 2.2 | |||
Accounts receivable | 2 | |||
Inventory | 8.3 | |||
Other assets | 0.8 | |||
Accounts payable and accrued expenses | (5.6) | |||
Long-term debt | (2.5) | |||
Deferred income taxes, net | (12.7) | |||
Goodwill | 30.4 | |||
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 |
Restructuring Charges - Charges
Restructuring Charges - Charges Taken Related to Restructuring Actions (Detail) - Restructuring - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Dec. 29, 2018 | Sep. 29, 2018 | |
Fiscal 2019 charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | $ 1.9 | |
Facility closure costs | (0.2) | |
Fiscal restructuring charges | 1.7 | |
Fiscal 2019 charges: | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | $ 11.7 | |
Facility closure costs | 2.5 | |
Fiscal restructuring charges | 14.2 | |
Fiscal 2019 Action [Member] | Fiscal 2019 charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 1 | |
Facility closure costs | 0 | |
Fiscal restructuring charges | 1 | |
Fiscal 2019 Action [Member] | Fiscal 2019 charges: | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 0 | |
Facility closure costs | 0 | |
Fiscal restructuring charges | 0 | |
Fiscal 2018 Actions | Fiscal 2019 charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 0.9 | |
Facility closure costs | (0.2) | |
Fiscal restructuring charges | 0.7 | |
Fiscal 2018 Actions | Fiscal 2019 charges: | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 11.7 | |
Facility closure costs | 0.9 | |
Fiscal restructuring charges | 12.6 | |
Fiscal 2016 Actions | Fiscal 2019 charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 0 | |
Facility closure costs | 0 | |
Fiscal restructuring charges | $ 0 | |
Fiscal 2016 Actions | Fiscal 2019 charges: | ||
Restructuring Cost and Reserve [Line Items] | ||
Workforce reductions | 0 | |
Facility closure costs | 1.6 | |
Fiscal restructuring charges | $ 1.6 |
Restructuring Charges - Charg_2
Restructuring Charges - Charges Taken Related to Accrued Restructuring Actions (Detail) $ in Millions | 3 Months Ended |
Dec. 29, 2018USD ($) | |
Fiscal 2018 charges | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | $ 9.1 |
Fiscal 2018 charges | Fiscal 2019 Action [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | 0 |
Fiscal 2018 charges | Fiscal 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | 4.3 |
Fiscal 2018 charges | Fiscal 2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | 0.8 |
Fiscal 2018 charges | Fiscal 2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | 3.9 |
Fiscal 2018 charges | Other | |
Restructuring Reserve [Roll Forward] | |
Balance as of September 29, 2018 | 0.1 |
Fiscal 2019 charges | Fiscal 2019 Action [Member] | |
Restructuring Reserve [Roll Forward] | |
Balance as of December 29, 2018 | 0.3 |
Restructuring | Fiscal 2019 charges | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 1.7 |
Severance payments and adjustments | (2) |
Other payments | (0.9) |
Balance as of December 29, 2018 | 7.9 |
Restructuring | Fiscal 2019 charges | Fiscal 2019 Action [Member] | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 1 |
Severance payments and adjustments | (0.7) |
Other payments | 0 |
Restructuring | Fiscal 2019 charges | Fiscal 2018 Actions | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 0.7 |
Severance payments and adjustments | (1) |
Other payments | (0.5) |
Balance as of December 29, 2018 | 3.5 |
Restructuring | Fiscal 2019 charges | Fiscal 2017 Actions | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 0 |
Severance payments and adjustments | (0.3) |
Other payments | 0 |
Balance as of December 29, 2018 | 0.5 |
Restructuring | Fiscal 2019 charges | Fiscal 2016 Actions | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 0 |
Severance payments and adjustments | 0 |
Other payments | (0.4) |
Balance as of December 29, 2018 | 3.5 |
Restructuring | Fiscal 2019 charges | Other | |
Restructuring Reserve [Roll Forward] | |
Fiscal 2019 charges | 0 |
Severance payments and adjustments | 0 |
Other payments | 0 |
Balance as of December 29, 2018 | $ 0.1 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||
Dec. 29, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 30, 2017 | Jul. 01, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Severance charges | $ 1 | $ 2.3 | $ 1.8 | $ 3.8 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Plan Modification, Incremental Compensation Cost | 1.3 | ||||||
Machester UK [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Severance charges | 0.6 | $ 2.2 | |||||
Hicksville [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Severance charges | 0.3 | $ 0.5 | |||||
Lyberty Way [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Facility closure costs | 0.2 | $ 0.9 | |||||
Lease termination cash payment | $ 0.6 | ||||||
Bedford [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Facility closure costs | $ 1.6 | $ 1.3 | $ 3.5 |
Borrowings and Credit Arrange_3
Borrowings and Credit Arrangements - Company's Borrowings (Detail) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Debt Instrument [Line Items] | ||
Current portion of long-term debt | $ 319.4 | $ 599.7 |
Total long-term debt obligations | 2,807.9 | 2,704.6 |
Total debt obligations | 3,127.3 | 3,304.3 |
Term Loan | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 9.4 | 74.7 |
Long term debt obligations. excluding convertible notes | 1,478.9 | 1,376.3 |
Revolver | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 85 | 300 |
Securitization Program | ||
Debt Instrument [Line Items] | ||
Current portion of long-term debt | 225 | 225 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | 935.7 | 935.2 |
2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Long term debt obligations. excluding convertible notes | $ 393.3 | $ 393.1 |
Borrowings and Credit Arrange_4
Borrowings and Credit Arrangements - Additional Information (Detail) | Dec. 17, 2018USD ($) | Oct. 03, 2017USD ($) | Dec. 29, 2018USD ($) | Mar. 31, 2018USD ($) | Dec. 30, 2017USD ($) | Sep. 29, 2018USD ($) | Feb. 15, 2018USD ($) | Jan. 19, 2018USD ($) | Oct. 10, 2017USD ($) |
Debt Instrument [Line Items] | |||||||||
Long-term debt | $ 3,127,300,000 | $ 3,304,300,000 | |||||||
Debt extinguishment losses | 800,000 | $ 1,000,000 | |||||||
Payment of debt issuance costs | 2,700,000 | 11,900,000 | |||||||
Senior notes | $ 1,000,000,000 | $ 350,000,000 | |||||||
Borrowed principal | $ 1,000,000,000 | ||||||||
Debt issuance costs | $ 1,500,000 | ||||||||
Debt discount | 1,500,000 | ||||||||
Amended Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Proceeds from issuance of debt | $ 1,500,000,000 | $ 1,800,000,000 | |||||||
Repayments of secured debt | 1,460,000,000 | ||||||||
Maximum borrowing capacity | 1,500,000,000 | ||||||||
Amended Term Loan | Percentage Added to Eurodollar Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.375% | ||||||||
Amended Revolver | Percentage Added to Eurodollar Rate | |||||||||
Debt Instrument [Line Items] | |||||||||
Basis spread on variable rate | 1.375% | ||||||||
Amended Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Leverage ratio maximum | 5 | ||||||||
Decreased net leverage ratio pursuant to senior secured credit facility | 4.50 | ||||||||
Interest coverage ratio | 3.75 | ||||||||
Number of fiscal quarters ending on measurement date | 4 | ||||||||
Debt extinguishment losses | $ (800,000) | (1,000,000) | |||||||
Maximum range of present value of cash flow percentage | 10.00% | ||||||||
Direct third party costs interest expense | $ 800,000 | $ 1,700,000 | |||||||
Payment of debt issuance costs | 1,900,000 | ||||||||
Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Repayments of secured debt | $ 1,320,000,000 | ||||||||
Borrowed principal | $ 1,600,000,000 | ||||||||
2025 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.375% | ||||||||
2022 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Debt extinguishment losses | $ 44,900,000 | ||||||||
Direct third party costs interest expense | $ 2,600,000 | ||||||||
Senior notes | 1,000,000,000 | ||||||||
Stated interest rate | 5.25% | ||||||||
Offering price of principal amount | 1,040,000,000 | ||||||||
Make whole provision | $ 37,700,000 | ||||||||
Amended Term Loan | Amended Credit Agreement | |||||||||
Debt Instrument [Line Items] | |||||||||
Periodic principal payment period | 3 months | ||||||||
Long-term debt | $ 1,200,000,000 | ||||||||
Amended Term Loan | Amended Credit Agreement | Minimum | |||||||||
Debt Instrument [Line Items] | |||||||||
Periodic principal payment | 9,375,000 | ||||||||
Amended Term Loan | Amended Credit Agreement | Maximum | |||||||||
Debt Instrument [Line Items] | |||||||||
Periodic principal payment | $ 28,125,000 | ||||||||
Secured Term Loan | Amended Term Loan | |||||||||
Debt Instrument [Line Items] | |||||||||
Maximum borrowing capacity | $ 1,500,000,000 | ||||||||
Senior Notes | 2025 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.375% | ||||||||
Offering price of principal amount | $ 1 | $ 1 | |||||||
Senior Notes | 2028 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Stated interest rate | 4.625% | 4.625% | |||||||
Offering price of principal amount | $ 1 | ||||||||
2025 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowed principal | 600,000,000 | ||||||||
Senior notes, face amount | $ 950,000,000 | ||||||||
2028 Senior Notes | |||||||||
Debt Instrument [Line Items] | |||||||||
Borrowed principal | $ 400,000,000 | ||||||||
Senior notes, face amount | $ 400,000,000 |
Borrowings and Credit Arrange_5
Borrowings and Credit Arrangements - Interest Expense Credit Agreement (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Line of Credit Facility [Line Items] | ||
Interest expense | $ 15.7 | $ 17.5 |
Credit Agreement | ||
Line of Credit Facility [Line Items] | ||
Interest expense | $ 18 | $ 12.4 |
Weighted average interest rate | 3.823% | 2.75% |
Interest rate at end of period | 3.88% | 3.07% |
Borrowings and Credit Arrange_6
Borrowings and Credit Arrangements - Interest Expense Senior Notes (Details) - USD ($) | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Jan. 19, 2018 | |
Line of Credit Facility [Line Items] | |||
Interest expense | $ 15,700,000 | $ 17,500,000 | |
2025 Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate | 4.375% | ||
Senior Notes | 2028 Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate | 4.625% | 4.625% | |
Interest expense | $ 4,800,000 | 0 | |
Senior Notes | 2025 Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate | 4.375% | ||
Interest expense | $ 10,900,000 | 3,500,000 | |
Senior Notes | 2022 Senior Notes | |||
Line of Credit Facility [Line Items] | |||
Stated interest rate | 5.25% | ||
Interest expense | $ 0 | $ 14,000,000 |
Derivatives - Additional Inform
Derivatives - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 30, 2017 | Sep. 29, 2018 | |
Derivative [Line Items] | ||||
Interest Rate Cap Agreements Aggregate Premium Payable | $ 3.7 | $ 1.9 | ||
Borrowed principal | 1,000 | |||
Loss reclassified from accumulated other comprehensive loss to the statement of income | (0.7) | $ (2.3) | ||
Derivative Instruments, Gain (Loss) Reclassification from Accumulated OCI to Income, Estimated Net Amount to be Transferred | (3.7) | |||
Interest Rate Cash Flow Hedge Asset at Fair Value | 3.3 | $ 7.7 | ||
Gain (Loss) on Foreign Currency Derivative Instruments Not Designated as Hedging Instruments | (1.7) | (0.2) | ||
Unrealized Gain (Loss) on Foreign Currency Derivatives, Net, before Tax | 3.4 | $ 1.5 | ||
Notional Amount | $ 219.9 |
Derivatives - Fair Value of Der
Derivatives - Fair Value of Derivative Financial Instruments (Details) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Derivative instruments designated as a cash flow hedge | Interest rate cap agreements | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 3.3 | $ 7.7 |
Derivative instruments designated as a cash flow hedge | Interest rate cap agreements | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 3.3 | 6 |
Derivative instruments designated as a cash flow hedge | Interest rate cap agreements | Other assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 0 | 1.7 |
Derivatives not designated as hedging instruments | Forward foreign currency contracts | Prepaid expenses and other current assets | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 6.6 | 3.2 |
Derivatives not designated as hedging instruments | Forward foreign currency contracts | Accrued Expenses | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | $ 0.3 | $ 0.2 |
Derivatives - Schedule of Cash
Derivatives - Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Changes in value of hedged interest rate caps, net of tax of $0.5 and $(4.9) for the three months ended December 29, 2018 and December 30, 2017: | $ (3.9) | $ (4.3) |
Interest rate cap agreements | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Changes in value of hedged interest rate caps, net of tax of $0.5 and $(4.9) for the three months ended December 29, 2018 and December 30, 2017: | $ (3.9) | $ (4.3) |
Derivatives - Gain (Loss) on Fa
Derivatives - Gain (Loss) on Fair Value Hedges Recognized in Earnings (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Forward foreign currency contracts | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Forward foreign currency contracts | $ 5.1 | $ 1.2 |
Commitments and Contingencies (
Commitments and Contingencies (Detail) | Oct. 07, 2016USD ($) | Mar. 04, 2016petition | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Jul. 27, 2018USD ($) |
Minerva | |||||
Loss Contingencies [Line Items] | |||||
Assessed damages | $ 4,800,000 | ||||
Petitions filed | petition | 2 | ||||
Cynosure | |||||
Loss Contingencies [Line Items] | |||||
Plaintiff statutory damages on individual basis | $ 25 | ||||
Payment of settlement compensation | $ 8,500,000 | ||||
Litigation settlement expense | $ 9,200,000 |
Net Income Per Share - Reconcil
Net Income Per Share - Reconciliation of Basic and Diluted Share Amounts (Detail) - shares shares in Thousands | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Earnings Per Share [Line Items] | ||
Basic weighted average common shares outstanding | 270,590 | 276,856 |
Weighted average common stock equivalents from assumed exercise of stock options and issuance of stock units | 1,782 | 2,212 |
Incremental shares from Convertible Notes premium | 0 | 1,734 |
Diluted weighted average common shares outstanding | 272,372 | 280,802 |
Outstanding Stock Options and stock units | ||
Weighted-average anti-dilutive shares related to: | ||
Weighted-average anti-dilutive shares (in shares) | 3,339 | 2,272 |
Restricted stock units | ||
Weighted-average anti-dilutive shares related to: | ||
Weighted-average anti-dilutive shares (in shares) | 4 | 216 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Expense in Consolidated Statements of Operations (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 17.1 | $ 16.4 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2 | 2.2 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2.7 | 2.5 |
Selling and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 2.7 | 2.9 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | 9.7 | 7.5 |
Restructuring | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation expense | $ 0 | $ 1.3 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Stock option plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Options granted | 0.9 | 1.6 |
Weighted-average exercise prices | $ 40.96 | $ 40.82 |
Share-based compensation, stock option outstanding | 6.5 | |
Weighted-average exercise price of options outstanding | $ 33.75 | |
Unrecognized compensation expense | $ 33.4 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 2 years 9 months 22 days | |
Restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.9 | 0.8 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 40.98 | $ 40.79 |
Unrecognized compensation expense | $ 92.2 | |
Weighted-average period for recognition of unrecognized stock-based compensation, years | 2 years 2 months 22 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.1 | 0.4 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 40.97 | $ 40.86 |
Market Based Awards | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares granted | 0.1 | 0.3 |
Restricted stock units (RSUs), weighted average grant date fair values | $ 55.13 | $ 49.45 |
Minimum eligible percentage to receive target number of shares of company's common stock | 0.00% | |
Maximum eligible percentage to receive target number of shares of company's common stock | 200.00% | |
Performance stock units vesting period | 3 years | |
RSU, PSU, MSU [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 2.7 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Options (Detail) - USD ($) | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Risk-free interest rate | 3000000.00% | 2.10% |
Expected volatility | 34.30% | 35.30% |
Expected life (in years) | 4 years 9 months 8 days | 4 years 8 months 8 days |
Dividend yield | $ 0 | $ 0 |
Weighted average fair value of options granted | $ 13.41 | $ 13 |
Other Balance Sheet Informati_3
Other Balance Sheet Information - Inventories (Detail) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Raw materials | $ 149.4 | $ 134.9 |
Work-in-process | 52.7 | 52.1 |
Finished goods | 216.5 | 197.1 |
Inventories | $ 418.6 | $ 384.1 |
Other Balance Sheet Informati_4
Other Balance Sheet Information - Property, Plant and Equipment (Detail) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Balance Sheet Related Disclosures [Abstract] | ||
Equipment | $ 387.3 | $ 380.3 |
Equipment under customer usage agreements | 408.5 | 399.6 |
Building and improvements | 188.7 | 188.3 |
Leasehold improvements | 63.1 | 63 |
Land | 46.3 | 46.3 |
Furniture and fixtures | 17.3 | 16.8 |
Property, plant and equipment, gross | 1,111.2 | 1,094.3 |
Less – accumulated depreciation and amortization | (638.6) | (616.1) |
Property, plant and equipment, net | $ 472.6 | $ 478.2 |
Business Segments and Geograp_3
Business Segments and Geographic Information - Additional Information (Detail) | 3 Months Ended | |
Dec. 29, 2018USD ($)SegmentCustomer | Dec. 30, 2017USD ($) | |
Segment Reporting Disclosure [Line Items] | ||
Number of reportable segments | Segment | 5 | |
Number of operating segments | Segment | 5 | |
Revenues | $ | $ 830,700,000 | $ 791,100,000 |
Customer represented greater than 10% of consolidated revenues | 0 | 0 |
Countries with greater than 10% of consolidated revenue | Customer | 0 | |
Intersegment | ||
Segment Reporting Disclosure [Line Items] | ||
Revenues | $ | $ 0 | $ 0 |
Business Segments and Geograp_4
Business Segments and Geographic Information - Segment Information (Detail) - USD ($) $ in Millions | 3 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Sep. 29, 2018 | |
Segment Reporting Information [Line Items] | |||
Total revenues | $ 830.7 | $ 791.1 | |
Income (loss) from operations | 140.5 | 134.1 | |
Depreciation and amortization | 118.8 | 121.2 | |
Capital expenditures | 22.6 | 21.8 | |
Identifiable assets | 6,931.5 | $ 7,230.9 | |
Diagnostics | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 296.6 | 284.6 | |
Income (loss) from operations | 43.3 | 36.5 | |
Depreciation and amortization | 61.8 | 64.7 | |
Capital expenditures | 14.4 | 11.9 | |
Identifiable assets | 2,405.3 | 2,442.9 | |
Breast Health | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 324.7 | 288 | |
Income (loss) from operations | 97.8 | 89.7 | |
Depreciation and amortization | 9.3 | 4.9 | |
Capital expenditures | 2.1 | 3.5 | |
Identifiable assets | 1,122.5 | 972.4 | |
Medical Aesthetics | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 79.8 | 91.3 | |
Income (loss) from operations | (25.2) | (23) | |
Depreciation and amortization | 25.5 | 28.5 | |
Capital expenditures | 1.1 | 1.6 | |
Identifiable assets | 895.1 | 913.3 | |
GYN Surgical | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 108.4 | 107.5 | |
Income (loss) from operations | 27 | 30.2 | |
Depreciation and amortization | 22 | 22.9 | |
Capital expenditures | 3.5 | 2.4 | |
Identifiable assets | 1,382.4 | 1,414.9 | |
Skeletal Health | |||
Segment Reporting Information [Line Items] | |||
Total revenues | 21.2 | 19.7 | |
Income (loss) from operations | (2.4) | 0.7 | |
Depreciation and amortization | 0.2 | 0.2 | |
Capital expenditures | 0.3 | 0.7 | |
Identifiable assets | 31.6 | 30.3 | |
Corporate | |||
Segment Reporting Information [Line Items] | |||
Capital expenditures | 1.2 | $ 1.7 | |
Identifiable assets | $ 1,094.6 | $ 1,457.1 |
Business Segments and Geograp_5
Business Segments and Geographic Information - Revenues by Geography (Detail) | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Schedule Of Geographical Segments [Line Items] | ||
Revenues | 100.00% | 100.00% |
United States | ||
Schedule Of Geographical Segments [Line Items] | ||
Revenues | 74.90% | 75.50% |
Europe | ||
Schedule Of Geographical Segments [Line Items] | ||
Revenues | 12.20% | 11.50% |
Asia-Pacific | ||
Schedule Of Geographical Segments [Line Items] | ||
Revenues | 8.40% | 8.70% |
Rest of World | ||
Schedule Of Geographical Segments [Line Items] | ||
Revenues | 4.50% | 4.30% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 29, 2018 | Dec. 30, 2017 | Dec. 31, 2016 | Sep. 29, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Other Tax Expense (Benefit) | $ 20 | |||
Company's effective tax rate | 5.50% | (324.50%) | ||
Blended statutory income tax rate | 21.00% | 24.50% | 35.00% | |
Final Net Tax Benefit amount for Tax Cuts and Job Act | $ 341.2 | $ 329.2 | $ 346.2 | |
Provisional tax benefit of tax reform that relates to deferred taxes | $ 346.4 | |||
Benefit Reduction for Tax Cuts and Jobs Act | 5 | |||
Increase to income tax expense adoption of ASU 2016-16 | 29.1 | |||
Decrease in deferred tax liabilities due to ASC 2016-16 | 49.1 | |||
Increase to Net Income resulted from adoption of ASU 2016-16 | 20 | |||
Increase to Earnings per Share resulted from adoption of ASC 2016-16 | 0 | |||
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 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Detail) - USD ($) $ in Millions | Dec. 29, 2018 | Sep. 29, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 5,669.3 | $ 5,571.8 |
Accumulated Amortization | 3,267.1 | 3,173.2 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 4,656.2 | 4,573.3 |
Accumulated Amortization | 2,586.3 | 2,505.8 |
In-process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 16.9 | 5.5 |
Accumulated Amortization | 0 | 0 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 556 | 556.5 |
Accumulated Amortization | 435.9 | 428.1 |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 315.1 | 312.5 |
Accumulated Amortization | 179.8 | 175 |
Distribution agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 42 | 42 |
Accumulated Amortization | 9.3 | 8 |
Non-competition agreements | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1.5 | 1.5 |
Accumulated Amortization | 0.6 | 0.5 |
Business licenses | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 2.4 | 2.4 |
Accumulated Amortization | 2.2 | 2.2 |
Total acquired intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,590.1 | 5,493.7 |
Accumulated Amortization | 3,214.1 | 3,119.6 |
Internal-use software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 56.8 | 58.5 |
Accumulated Amortization | 48.1 | 49.3 |
Capitalized software embedded in products | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 22.4 | 19.6 |
Accumulated Amortization | $ 4.9 | $ 4.3 |
Intangible Assets - Schedule _2
Intangible Assets - Schedule of Estimated Amortization Expense (Detail) $ in Millions | Dec. 29, 2018USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Remainder of Fiscal 2019 | $ 288.2 |
Fiscal 2,020 | 366.8 |
Fiscal 2,021 | 345.2 |
Fiscal 2,022 | 332.5 |
Fiscal 2,023 | $ 232.9 |
Product Warranties - Product Wa
Product Warranties - Product Warranty Activity (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Balance at Beginning of Period | $ 15.9 | $ 17 |
Provisions | 2.6 | 4.3 |
Settlements/ Adjustments | (3.4) | (5.1) |
Balance at End of Period | $ 15.1 | $ 16.2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 29, 2018 | Dec. 30, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | $ (25.5) | |
Changes in foreign currency translation adjustment | (3.2) | $ 5.5 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 0 | 0.6 |
Changes in value of hedged interest rate caps, net of tax of $0.5 and $(4.9) for the three months ended December 29, 2018 and December 30, 2017: | (3.9) | (4.3) |
Accumulated other comprehensive loss | (31.9) | |
Foreign Currency Translation | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (26.6) | (18.5) |
Changes in foreign currency translation adjustment | (3.2) | 5.5 |
Amounts reclassified to statement of income | 0 | 0 |
Accumulated other comprehensive loss | (29.8) | (13) |
Marketable Securities | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (0.4) | |
Changes in unrealized holding gains and losses on available-for-sale securities, net of tax of$0.2 for the three months ended December 30, 2017: | 0 | |
Amounts reclassified to statement of income | 0.4 | |
Accumulated other comprehensive loss | 0 | |
Pension Plans | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (1.1) | (1.6) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Tax and Reclassification Adjustment, Attributable to Parent | 0 | |
Amounts reclassified to statement of income | 0 | 0 |
Accumulated other comprehensive loss | (1.1) | (1) |
Hedged Interest Rate Caps | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | 2.2 | 4.3 |
Changes in value of hedged interest rate caps, net of tax of $0.5 and $(4.9) for the three months ended December 29, 2018 and December 30, 2017: | (3.9) | (4.3) |
Amounts reclassified to statement of income | 0.7 | 2.3 |
Accumulated other comprehensive loss | (1) | 2.3 |
Total | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated other comprehensive loss | (25.5) | (16.2) |
Other Comprehensive Income (Loss) before Reclassifications, Tax | (7.1) | 1.8 |
Amounts reclassified to statement of income | 0.7 | 2.7 |
Accumulated other comprehensive loss | $ (31.9) | $ (11.7) |
Share Repurchase (Details)
Share Repurchase (Details) - USD ($) shares in Millions, $ in Millions | Aug. 01, 2018 | Jan. 30, 2019 | Dec. 29, 2018 |
Subsequent Event [Line Items] | |||
Total repurchase authorization | 500 | ||
Stock Repurchased During Period, Shares | 3.7 | ||
Repurchase of equity | $ 150.1 | ||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 261.5 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repurchase of equity | $ 3.1 |
Share Repurchase Share repurcha
Share Repurchase Share repurchase (Details) - USD ($) shares in Millions, $ in Millions | Aug. 01, 2018 | Dec. 29, 2018 |
Equity, Class of Treasury Stock [Line Items] | ||
Total repurchase authorization | 500 | |
Stock Repurchased During Period, Shares | 3.7 | |
Repurchase of equity | $ 150.1 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 261.5 |