Disposition

12 Months Ended

Sep. 30, 2023

Disposal Groups, Including Discontinued Operations and Collaborative Agreement [Abstract]

Disposal Groups, Including Discontinued Operations, Disclosure

Disposition

Sale of SSI Ultrasound Imaging Business - Assets Held-for-Sale

On September 28, 2023, the Company entered into a definitive agreement to sell its SSI ultrasound imaging business to SSH Holdings Limited for a sales price of $1.9 million in cash. Under the terms of the contract, the Company agreed to fund the SSI business with $33.2 million of cash. The sale was completed on October 3, 2023. The Company has also agreed to provide certain transition services for up to one year, depending on the nature of the service. The SSI ultrasound imaging asset group met the criteria to be classified as assets held-for-sale in the fourth quarter of fiscal 2023. As a result, the Company recorded a charge of $51.7 million in the fourth quarter of fiscal 2023 to record the asset group to its fair value less costs to sell pursuant to ASC 360.

Assets held-for sale comprised the following as of September 30, 2023:


Assets:
Cash	$	33.2
Accounts receivable	4.5
Inventory	16.2
Prepaid expenses and other assets	8.6
Valuation allowance	(50.6)
Total assets held-for-sale	$	11.9

Liabilities:
Accounts payable	$	3.1
Accrued expenses	5.1
Total liabilities held-for-sale	$	8.2

The valuation allowance in the above table of $50.6 million was recorded to appropriately reflect the assets held-for-sale classification in the Consolidated Balance Sheet relative to the loss recorded and the net tangible assets disposed.

The Company has determined that this disposal did not qualify as a discontinued operation as the sale of the SSI ultrasound imaging 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. This business’s results of operations, excluding impairment charges, were immaterial in fiscal 2023, 2022 and 2021.