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Fair Value Measurements | 12 Months Ended
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Sep. 28, 2024
Fair Value Disclosures [Abstract] |
Fair Value Measurements | Fair Value Measurements The Company applies the provisions of ASC 820 for its financial assets and liabilities that are re-measured and reported at fair value each reporting period and its nonfinancial assets and liabilities that are re-measured and reported at fair value on a non-recurring basis. Fair value is the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining fair value, the Company considers the principal or most advantageous market in which it would transact and considers assumptions that market participants would use when pricing the asset or liability. Fair Value Hierarchy ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. Financial assets and liabilities are categorized within the valuation hierarchy based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows: •Level 1—Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. •Level 2—Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. •Level 3—Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company has investments in money market funds, United States Treasury securities and commercial paper that are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. These investments are classified as Cash and cash equivalents, and Short term and Long term investments on the Consolidated Balance Sheets, which is determined based on maturities at the time of purchase and re-evaluated at each balance sheet date. The Company also has investments in derivative instruments comprised of interest rate swaps, forward foreign currency contracts and foreign currency option contracts (including collars). These instruments were valued using analyses obtained from independent third-party valuation specialists based on market observable inputs, representing Level 2 assets. The fair values of these derivative contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 2 for further discussion and information on these derivative contracts. In addition, the Company has a contingent consideration liability that is recorded at fair value and is based on Level 3 inputs. Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following:
|  |  | Fair Value Measurements at September 28, 2024
| Fair Value |  | Quoted Prices in Active Market for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Money market mutual funds | $ | 341.7 |  |  | $ | 341.7 |  |  | $ | — |  |  | $ | — |
U.S. Treasury securities | 626.3 |  |  | 626.3 |  |  | — |  |  | — |
Commercial paper | 24.9 |  |  | 24.9 |  |  | — |  |  | — |
Interest rate swaps | 3.1 |  |  | — |  |  | 3.1 |  |  | — |
Foreign currency option contracts | 0.8 |  |  | — |  |  | 0.8 |  |  | — |
Total | $ | 996.8 |  |  | $ | 992.9 |  |  | $ | 3.9 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | $ | 1.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1.1 |
Interest rate swaps | 0.2 |  |  | — |  |  | 0.2 |  |  | — |
Forward foreign currency contracts | 12.6 |  |  | — |  |  | 12.6 |  |  | — |
Total | $ | 13.9 |  |  | $ | — |  |  | $ | 12.8 |  |  | $ | 1.1 |
|  |  | Fair Value Measurements at September 30, 2023
| Fair Value |  | Quoted Prices in Active Market for Identical Assets (Level 1) |  | Significant Other Observable Inputs (Level 2) |  | Significant Unobservable Inputs (Level 3)
Assets: |  |  |  |  |  |  |
Interest rate swaps | $ | 26.9 |  |  | $ | — |  |  | $ | 26.9 |  |  | $ | — |
Forward foreign currency contracts | 8.4 |  |  | — |  |  | 8.4 |  |  | — |
Total | $ | 35.3 |  |  | $ | — |  |  | $ | 35.3 |  |  | $ | — |
Liabilities: |  |  |  |  |  |  |
Contingent consideration | $ | 2.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.0 |
Total | $ | 2.0 |  |  | $ | — |  |  | $ | — |  |  | $ | 2.0 |
Liabilities Measured and Recorded at Fair Value on a Recurring Basis Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3), which solely consisted of contingent consideration liabilities, during the years ended September 28, 2024, September 30, 2023, and September 24, 2022 were as follows:
|  | Years Ended
|  | 2024 |  | 2023 |  | 2022
Balance at beginning of period | $ | 2.0 |  |  | $ | 23.4 |  |  | $ | 75.1 |
| Contingent consideration recorded at acquisition | — |  |  | 1.1 |  |  | — |
| Fair value adjustments | 1.7 |  |  | (14.9) |  |  | (39.5) |
| Payments | (2.6) |  |  | (7.6) |  |  | (12.2) |
Balance at end of period | $ | 1.1 |  |  | $ | 2.0 |  |  | $ | 23.4 |
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 are comprised of equity investments and long-lived assets, primarily comprised of property, plant and equipment, intangible assets, and goodwill. During the third quarter of fiscal 2024, the Company recorded intangible asset impairment charges of $13.3 million and $0.4 million, respectively, related to its BioZorb developed technology and trade name intangible assets acquired in the Focal acquisition, which is within the Breast Health reportable segment, reducing the carrying value of the assets to zero. During the second quarter of fiscal 2024, the Company recorded intangible asset impairment charges of $25.9 million and $0.9 million, respectively, related to its BioZorb developed technology and trade name intangible assets reducing the carrying value of the assets to $13.9 million and $0.5 million, respectively. See Note 2 for further discussion. During the first quarter of fiscal 2024, the Company recorded a $12.5 million impairment charge for right-of-use lease assets related to the closure of its Mobidiag facilities in Finland and France (see Note 8 for further discussion), reducing the carrying value to zero. In addition, during the first quarter of fiscal 2024, the Company recorded a $4.3 million impairment charge for an in-process research and development project from the Mobidiag acquisition, reducing the carrying value of this asset to $22.4 million. During the fourth quarter of fiscal 2023, the Company’s SSI ultrasound imaging business met the criteria to be classified as assets held-for-sale, and the Company recorded a $51.7 million loss to record the asset group at its fair value less costs to sell. During the third quarter of fiscal 2023, the Company identified indicators of impairment related to the long-lived assets of its Mobidiag business and based on the fair value of the asset group recorded impairment charges aggregating $186.9 million, of which $174.8 million was allocated to intangible assets and $12.1 million was allocated to property, plant and equipment. Subsequent to the impairment charges, the carrying value of the definite-lived intangible assets and property, plant and equipment was $65.8 million and $4.6 million, respectively. In addition, the Company recorded a $10.5 million impairment charge for the only in-process research and development project from the Mobidiag acquisition, and the resulting carrying value was $26.5 million. During the third quarter of fiscal 2023, the Company identified indicators of impairment related to the long-lived assets of its SSI ultrasound imaging business and recorded impairment charges aggregating $26.4 million, of which $20.6 million was allocated to intangible assets and $5.8 million was allocated to equipment. Subsequent to the impairment charges, the carrying value of these assets was zero. During the fourth quarter of fiscal 2022, the Company recorded a $27.7 million impairment charge to record its Mobidiag IPR&D asset to fair value, which is a Level 3 measurement, and it recorded an $8.2 million impairment charge to write-off a developed technology asset from its Focal acquisition. In addition, the Company recorded an impairment charge of $4.0 million to record an equity investment at its estimated fair value. During the third quarter of fiscal 2022, the Company recorded a $9.2 million impairment charge to write off two developed technology assets from its Faxitron acquisition. During the second quarter of fiscal 2022, the Company recorded a $4.3 million impairment charge to write-off an equity method investment acquired in the Mobidiag acquisition. Disclosure of Fair Value of Financial Instruments The Company’s financial instruments mainly consist of cash and cash equivalents, United States Treasury securities, commercial paper, accounts receivable, equity investments, interest rate swaps, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s United States Treasury securities, commercial paper, interest rate swaps, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts are recorded at their 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. The Company’s cash and cash equivalents and short and long-term investments as of September 28, 2024 were as follows:
| Valuation |  | Balance Sheet Classification
in millions | Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  | Cash and cash equivalents |  | Investments
Cash | $ | 1,437.1 |  |  | $ | — |  |  | $ | — |  |  | $ | 1,437.1 |  |  | $ | 1,437.1 |  |  | $ | — |
Money market mutual funds | 341.7 |  |  | — |  |  | — |  |  | 341.7 |  |  | 341.7 |  |  | — |
U.S. Treasury debt securities | 624.7 |  |  | 1.6 |  |  | — |  |  | 626.3 |  |  | 356.5 |  |  | 269.8 |
Commercial paper | 24.9 |  |  | — |  |  | — |  |  | 24.9 |  |  | 24.9 |  |  | — |
Total | $ | 2,428.4 |  |  | $ | 1.6 |  |  | $ | — |  |  | $ | 2,430.0 |  |  | $ | 2,160.2 |  |  | $ | 269.8 |
The Company classifies its investments in debt securities as available-for-sale and records them at fair value, with changes in fair value reported as a component of accumulated other comprehensive income (loss), which was immaterial for the year ended September 28, 2024. The Company periodically assesses these securities for potential impairment losses and credit losses. The amount of credit losses, if any, will be determined by comparing the difference between the present value of future cash flows expected to be collected on these securities and the amortized cost. There were no impairments and credit losses related to available-for-sale securities for the year ended September 28, 2024. The Company classifies all highly liquid investments with stated maturities of three months or less from the date of purchase as cash equivalents. The Company reviews the fair value hierarchy classification on a quarterly basis. Changes in the ability to observe valuation inputs may result in a reclassification of levels for certain securities within the fair value hierarchy. There were no transfers into or out of Level 3 during the years ended September 28, 2024 and September 30, 2023, respectively. There were no sales of available-for-sale securities during the year ended September 28, 2024. The fair value of the available-for-sale securities by contractual maturity as of September 28, 2024 and September 30, 2023 are as follows:
| September 28, 2024 |  | September 30, 2023
in millions | Fair Value |  | Fair Value
Due in three months or less | $ | 723.1 |  |  | $ | — |
Due after three months through one year | 173.4 |  |  | — |
Due after one year through five years | 96.4 |  |  | — |
Total available-for-sale securities | $ | 992.9 |  |  | $ | — |
Amounts outstanding under the Company’s 2021 Credit Agreement of $1.20 billion aggregate principal as of September 28, 2024 are subject to variable rates of interest based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 2028 Senior Notes and 2029 Senior Notes had fair values of approximately $393.1 million and $882.2 million, respectively, as of September 28, 2024 based on their trading prices, representing a Level 1 measurement. Refer to Note 9 for the carrying amounts of the various components of the Company's debt.

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- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-2 + Details
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