Other Balance Sheet Information

3 Months Ended

Jul. 01, 2023

Balance Sheet Related Disclosures [Abstract]


	July 1, 2023		September 24, 2022
Inventories
Raw materials	$	260.4	$	252.9
Work-in-process	66.6		60.1
Finished goods	353.1		310.7
	$	680.1	$	623.7


Property, plant and equipment
Equipment	$	413.4	$	394.8
Equipment under customer usage agreements	507.6		486.5
Building and improvements	210.3		196.0
Leasehold improvements	46.6		44.8
Land	41.2		40.9
Furniture and fixtures	19.2		16.7
Finance lease right of use asset	8.5		7.5
	$	1,246.8	$	1,187.2
Less – accumulated depreciation and amortization	(753.5)		(705.6)
	$	493.3	$	481.6

In September 2020 and October 2020, the Company was awarded grants of $7.6 million and $119.3 million, respectively, from the Department of Defense Joint Acquisition Task Force (“DOD”) to expand production capacity for the Company’s two SARS-CoV-2 assays. These grants were specifically to fund capital equipment and labor investments to increase manufacturing capacity to enable the Company to provide a certain amount of COVID-19 tests per month for the U.S. market. The Company has accounted for the funds received under these grants as a reimbursement of the purchased capital equipment. The Company procured and paid for the capital equipment and necessary resources to build out its facility and construct the manufacturing lines to meet the requirements specified in the grant agreement. Subsequent to the Company paying for the capital equipment, the DOD reimbursed the Company upon it meeting certain requirements. However, the DOD retained title to the assets purchased under the agreement, and title was transferred to the Company upon meeting certain milestones of the manufacturing efforts and obtaining approval from the DOD that the respective milestone had been met. As of the end of fiscal 2022, the Company had completed all milestones under the agreement and was waiting for approval by the DOD. During the second quarter of fiscal 2023, the Company received the final DOD approvals and the final payment from the DOD of $20.5 million, which was recorded as a reduction of the cost basis of the purchased equipment. As of July 1, 2023, no amounts were awaiting approval and all defined milestones were completed.

During the third quarter of fiscal 2023, the Company identified indicators of impairment related to its long-lived assets of its Mobidiag business and based on the fair value of the asset group recorded impairment charges of $12.1 million to property, plant and equipment. In addition, the Company identified indicators of impairment related to its long-lived assets of its ultrasound imaging business and recorded impairment charges of $5.8 million related to property, plant and equipment. See Note 16 for additional information.