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Disposition | 12 Months Ended
--- | ---
Sep. 26, 2020
Disposal Groups, Including Discontinued Operations and Collaborative Agreement [Abstract] |
Disposition | Disposition Sale of Medical Aesthetics On November 20, 2019, the Company entered into a definitive agreement to sell its Medical Aesthetics business to Clayton Dubilier & Rice ("CD&R") for a sales price of $205.0 million in cash, less certain adjustments. The sale was completed on December 30, 2019, and the Company received cash proceeds of $153.4 million in the second quarter of fiscal 2020. The sale price was subject to adjustment pursuant to the terms of the definitive agreement, and the parties agreed to a final sales price of $150.0 million in the fourth quarter of fiscal 2020. The Company agreed to provide certain transition services for three to fifteen months, depending on the nature of the service. The Company also agreed to indemnify CD&R for certain legal and tax matters that existed as of the date of disposition. In connection with its accounting for the sale, the Company recorded indemnification liabilities of $10.9 million within accrued expenses associated with its obligations under the sale agreement. As a result of this transaction, the Medical Aesthetics asset group was designated as assets held-for-sale in the first quarter of fiscal 2020. Pursuant to ASC 360, asset groups under this designation are required to be recorded at fair value less costs to sell. The Company determined that this disposal did not qualify as a discontinued operation as the sale of the Medical Aesthetics business was deemed to not be a strategic shift having or that will have a major effect on the Company's operations and financial results. Based on the terms in the agreement of the sales price and formula for net working capital and related adjustments, its estimate of the fair value for transition services and the amount that must be carved out of the sale proceeds, and liabilities the Company will retain or for which it has agreed to indemnify CD&R, the Company recorded an impairment charge of $30.2 million in the first quarter of fiscal 2020. The impairment charge was allocated to Medical Aesthetics long-lived assets, of which $25.8 million was allocated to cost of product revenues and $4.4 million to operating expenses. The assets and liabilities of the disposed business at the date of disposition were as follows:
Assets: |  |
Cash |  | $ | 10.7 |
Accounts Receivable |  | 59.6 |
Inventory |  | 90.6 |
Prepaid expenses and other current assets |  | 7.7 |
Property, plant, and equipment |  | 4.0 |
Intangible assets |  | 28.2 |
Other assets |  | 9.8 |
Total assets disposed of |  | $ | 210.6 |
Liabilities: |  |
Accounts payable |  | $ | 12.3 |
Accrued expenses |  | 49.0 |
Deferred revenue |  | 16.6 |
Total liabilities disposed of |  | $ | 77.9 |
Loss from operations of the disposed business presented below represents the operating loss of the business as it was operated prior to the date of disposition. The operating expenses include only those that were incurred directly by and were retained by the disposed business. As noted above, the Company is performing a number of transition services and the financial impact from these services are not included in the amounts presented below. In addition, the Company will continue to incur expenses related to this business under the indemnification provisions primarily related to legal and tax matters that existed as of the date of disposition, which it will continue to report in the Medical Aesthetics reportable segment. Subsequent to the disposition, the Company recorded additional expenses of $6.2 million primarily for accelerated stock compensation, inventory reserves under the manufacturing supply agreement, and legal expenses and settlements, which are not included in the below amounts. Loss from operations of the disposed business for the years ended September 26, 2020 and September 28, 2019 was as follows:
|  |  | Years Ended
|  |  |  |  | September 26, 2020 |  | September 28, 2019
Loss from operations |  |  |  |  | $ | (46.5) |  |  | $ | (781.2) |

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