Cover Page - USD ($)	12 Months Ended
Cover Page - USD ($)	Sep. 26, 2020	Nov. 12, 2020	Mar. 28, 2020
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Sep. 26, 2020
Document Transition Report	false
Entity File Number	1-36214
Entity Registrant Name	HOLOGIC, INC
Entity Central Index Key	0000859737
Current Fiscal Year End Date	--09-26
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	04-2902449
Entity Address, Address Line One	250 Campus Drive
Entity Address, City or Town	Marlborough
Entity Address, State or Province	MA
Entity Address, Postal Zip Code	01752
City Area Code	508
Local Phone Number	263-2900
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	HOLX
Security Exchange Name	NASDAQ
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 8,530,248,376
Entity Common Stock, Shares Outstanding		257,009,683
Documents Incorporated by Reference	Portions of the registrant’s Proxy Statement for the registrant’s annual meeting of stockholders to be filed within 120 days of the end of its fiscal year ended September 26, 2020 are incorporated into Part III (Items 10, 11, 12, 13 and 14) of this Annual Report on Form 10-K where indicated.

Consolidated Statements of Income - USD ($) shares in Thousands	12 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 29, 2018
Revenues:
Revenue from product and services	$ 3,776,400,000	$ 3,367,300,000	$ 3,217,900,000
Costs of revenues:
Amortization of intangible assets	253,200,000	318,500,000	319,400,000
Impairment of intangible assets and equipment	25,800,000	578,700,000	0
Gross Profit	2,227,500,000	1,170,900,000	1,696,700,000
Operating expenses:
Research and development	222,500,000	232,200,000	218,700,000
Selling and marketing	484,600,000	564,900,000	544,600,000
General and administrative	356,000,000.0	332,300,000	366,100,000
Amortization of intangible assets	39,700,000	52,000,000.0	59,300,000
Impairment of intangible assets and equipment	4,400,000	106,700,000	46,000,000.0
Impairment of goodwill	0	0	685,700,000
Restructuring and divestiture charges	15,300,000	6,600,000	14,200,000
Operating expenses	1,122,500,000	1,294,700,000	1,934,600,000
Income (loss) from operations	1,105,000,000.0	(123,800,000)	(237,900,000)
Interest income	4,300,000	4,600,000	6,300,000
Interest expense	(116,500,000)	(140,800,000)	(148,700,000)
Debt extinguishment losses	0	(800,000)	(45,900,000)
Other income, net	9,100,000	3,100,000	7,600,000
Income (loss) before income taxes	1,001,900,000	(257,700,000)	(418,600,000)
Benefit for income taxes	(108,600,000)	(54,100,000)	(307,300,000)
Net income (loss)	1,110,500,000	(203,600,000)	(111,300,000)
Net loss attributable to noncontrolling interest	(4,700,000)	0	0
Net income (loss) attributable to Hologic	$ 1,115,200,000	$ (203,600,000)	$ (111,300,000)
Net income (loss) per common share attributable to Hologic:
Basic (in dollars per share)	$ 4.24	$ (0.76)	$ (0.40)
Diluted (in dollars per share)	$ 4.21	$ (0.76)	$ (0.40)
Weighted average number of shares outstanding:
Basic (in shares)	262,727	269,413	275,105
Diluted (in shares)	264,613	269,413	275,105
Product
Revenues:
Revenue from product and services	$ 3,227,000,000.0	$ 2,771,300,000	$ 2,643,900,000
Costs of revenues:
Cost of goods and services sold	953,700,000	948,700,000	886,600,000
Service
Revenues:
Revenue from product and services	549,400,000	596,000,000.0	574,000,000.0
Costs of revenues:
Cost of goods and services sold	$ 316,200,000	$ 350,500,000	$ 315,200,000

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	12 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 29, 2018
Net income (loss)	$ 1,110.5	$ (203.6)	$ (111.3)
Changes in foreign currency translation adjustment	18.5	(14.8)	(8.1)
Loss (gain) reclassified from accumulated other comprehensive income (loss) to the statement of operations	0.0	0.0	0.4
Changes in pension plans, net of taxes of $0.1 in 2020, $0.3 in 2019, and $(0.6) in 2018	(0.1)	(0.6)	0.5
(Loss) gain recognized, net of tax of $(8.3) million in 2020 and $1.2 million in 2019 for interest rate swaps	(0.5)	(8.0)
Loss recognized in other comprehensive income (loss), net	(28.1)	(4.5)	(5.7)
Loss reclassified from accumulated other comprehensive loss to the statement of operations, net	2.3	3.1	3.6
Other comprehensive loss	(7.4)	(16.8)	(9.3)
Comprehensive income (loss)	1,103.1	(220.4)	(120.6)
Net loss attributable to noncontrolling interest	4.7	0.0	0.0
Comprehensive loss attributable to noncontrolling interest	4.7	0.0	0.0
Comprehensive income (loss) attributable to Hologic	1,107.8	(220.4)	(120.6)
Interest Rate Swap [Member]
(Loss) gain recognized, net of tax of $(8.3) million in 2020 and $1.2 million in 2019 for interest rate swaps	(27.6)	3.5	0.0
Interest rate caps - derivative
Loss recognized in other comprehensive income (loss), net	$ (0.5)	$ (8.0)	$ (5.7)

Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Millions	12 Months Ended
	Sep. 26, 2020	Sep. 28, 2019	Sep. 29, 2018
Statement of Comprehensive Income [Abstract]
Changes in unrealized holding gains and losses on available-for-sale securities, tax			$ 0.2
Change in pension plans, tax	$ 0.1	$ 0.3	(0.6)
Tax paid on interest rate swaps	(8.3)	1.2
Changes in value of hedged interest rate caps, tax	$ 0.5	$ 1.1	$ (5.0)

Consolidated Balance Sheets - USD ($) $ in Millions	Sep. 26, 2020	Sep. 28, 2019
Current assets:
Cash and cash equivalents	$ 701.0	$ 601.8
Accounts receivable, less reserves of $31.6 and $17.8, respectively	1,028.9	648.7
Inventory	395.1	444.9
Prepaid income taxes	38.8	34.9
Prepaid expenses and other current assets	58.5	62.8
Total current assets	2,222.3	1,793.1
Property, plant and equipment, net	491.5	470.9
Intangible assets, net	1,307.5	1,459.8
Goodwill	2,657.9	2,563.7
Other assets	516.6	154.6
Total assets	7,195.8	6,442.1
Current liabilities:
Current portion of long-term debt	324.9	271.4
Accounts payable	178.8	186.5
Accrued expenses	547.6	430.9
Deferred revenue	186.1	179.5
Finance lease obligation (capital lease obligation in 2019)	1.9	1.8
Total current liabilities	1,239.3	1,070.1
Long-term debt, net of current portion	2,713.9	2,783.6
Finance lease obligation - long term (capital lease obligation in 2019)	17.4	19.2
Deferred income tax liabilities	201.8	275.3
Deferred revenue	12.9	15.8
Other long-term liabilities	303.2	162.4
Commitments and contingencies (Note 13 and 14)
Stockholders’ equity:
Preferred stock, $0.01 par value – 1,623 shares authorized; 0 shares issued	0.0	0.0
Common stock, $0.01 par value – 750,000 shares authorized; 295,107 and 292,323 shares issued, respectively	2.9	2.9
Additional paid-in-capital	5,904.8	5,769.8
Accumulated deficit	(1,573.2)	(2,688.7)
Treasury stock, at cost – 37,609 and 24,639 shares, respectively	(1,579.6)	(926.0)
Accumulated other comprehensive loss	(49.7)	(42.3)
Total Hologic's stockholders’ equity	2,705.2	2,115.7
Noncontrolling interest	2.1	0.0
Total stockholders' equity	2,707.3	2,115.7
Total liabilities and stockholders’ equity	$ 7,195.8	$ 6,442.1

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Sep. 26, 2020	Sep. 28, 2019
Statement of Financial Position [Abstract]
Accounts receivable, reserves	$ 31.6	$ 17.8
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,623,000	1,623,000
Preferred stock, shares issued (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	750,000,000	750,000,000
Common stock, shares issued (in shares)	295,107,000	292,323,000
Treasury stock (in shares)	37,609,000	24,639,000

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands	Total	Share Repurchase Program [Member]	Common Stock [Member]	Additional Paid-in-Capital [Member]	Accumulated Deficit [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]	Treasury Stock [Member] Share Repurchase Program [Member]	Noncontrolling Interest
Balance (in shares) at Sep. 30, 2017			287,853				12,560
Balance at Sep. 30, 2017	$ 2,784,700,000		$ 2,900,000	$ 5,630,800,000	$ (2,382,700,000)	$ (16,200,000)	$ (450,100,000)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)			795
Exercise of stock options	17,300,000			17,300,000
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares)			804
Vesting of restricted stock units, net of shares withheld for employee taxes	(16,700,000)			(16,700,000)
Common stock issued under the employee stock purchase plan (in shares)			448
Common stock issued under the employee stock purchase plan	15,600,000			15,600,000
Stock-based compensation expense	65,000,000.0			65,000,000.0
Repurchase of common stock (in shares)							7,252
Repurchase of common stock	(275,800,000)						$ (275,800,000)
Reacquisition of equity component from convertible notes repurchase, net of taxes	(40,700,000)			(40,700,000)
Foreign currency translation adjustment	(8,100,000)					(8,100,000)
Adjustment to minimum pension liability, net	500,000					500,000
Unrealized losses on derivatives, net of taxes	(5,700,000)					(5,700,000)
Loss reclassified from accumulated other comprehensive loss to the statement of operations, net	3,600,000					3,600,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	400,000					400,000
Net income (loss) attributable to Hologic	(111,300,000)				(111,300,000)
Payments to Noncontrolling Interests	0
Balance (in shares) at Sep. 29, 2018			289,900				19,812
Balance at Sep. 29, 2018	2,428,800,000		$ 2,900,000	5,671,300,000	(2,494,000,000.0)	(25,500,000)	$ (725,900,000)		$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standard transition adjustment - ASC 606	6,400,000				6,400,000
Accounting standard transition adjustment - ASU 2016-16	2,500,000				2,500,000
Exercise of stock options (in shares)			1,304
Exercise of stock options	32,800,000			32,800,000
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares)			645
Vesting of restricted stock units, net of shares withheld for employee taxes	(12,800,000)			(12,800,000)
Common stock issued under the employee stock purchase plan (in shares)			474
Common stock issued under the employee stock purchase plan	16,500,000			16,500,000
Stock-based compensation expense	62,000,000.0			62,000,000.0
Repurchase of common stock (in shares)							4,826
Repurchase of common stock	(200,100,000)						$ (200,100,000)
Foreign currency translation adjustment	(14,800,000)					(14,800,000)
Adjustment to minimum pension liability, net	(600,000)					(600,000)
Unrealized losses on derivatives, net of taxes	(8,000,000.0)					(8,000,000.0)
Unrealized gain on interest rate swap	3,500,000					3,500,000
Loss reclassified from accumulated other comprehensive loss to the statement of operations, net	3,100,000					3,100,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0
Net income (loss) attributable to Hologic	(203,600,000)				(203,600,000)
Payments to Noncontrolling Interests	0
Balance (in shares) at Sep. 28, 2019			292,323				24,638
Balance at Sep. 28, 2019	$ 2,115,700,000		$ 2,900,000	5,769,800,000	(2,688,700,000)	(42,300,000)	$ (926,000,000.0)		0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Exercise of stock options (in shares)	1,800		1,761
Exercise of stock options	$ 48,300,000			48,300,000
Vesting of restricted stock units, net of shares withheld for employee taxes (in shares)			611
Vesting of restricted stock units, net of shares withheld for employee taxes	(14,200,000)			(14,200,000)
Common stock issued under the employee stock purchase plan (in shares)			412
Common stock issued under the employee stock purchase plan	17,600,000			17,600,000
Stock-based compensation expense	83,300,000			83,300,000
Repurchase of common stock (in shares)							9,064	3,907
Repurchase of common stock	(448,600,000)	$ (205,000,000.0)					$ (448,600,000)	$ (205,000,000.0)
Foreign currency translation adjustment	18,500,000					18,500,000
Adjustment to minimum pension liability, net	(100,000)					(100,000)
Unrealized losses on derivatives, net of taxes	(500,000)					(500,000)
Unrealized gain on interest rate swap	(27,600,000)					(27,600,000)
Loss reclassified from accumulated other comprehensive loss to the statement of operations, net	2,300,000					2,300,000
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	0
Net income (loss) attributable to Hologic	1,110,500,000				1,115,200,000				(4,700,000)
Payments to Noncontrolling Interests	(1,800,000)								(1,800,000)
Noncontrolling Interest, Increase from Business Combination	8,600,000								8,600,000
Balance (in shares) at Sep. 26, 2020			295,107				37,609
Balance at Sep. 26, 2020	2,707,300,000		$ 2,900,000	$ 5,904,800,000	(1,573,200,000)	$ (49,700,000)	$ (1,579,600,000)		$ 2,100,000
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting standard transition adjustment \| Accounting Standards Update 2018-01 [Member]	$ 300,000				$ 300,000

Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
Consolidated Statements of Cash Flows - USD ($)	Sep. 26, 2020	Sep. 28, 2019	Sep. 29, 2018
OPERATING ACTIVITIES
Net income (loss)	$ 1,110,500,000	$ (203,600,000)	$ (111,300,000)
Adjustments to reconcile net income (loss) income to net cash provided by operating activities:
Depreciation	83,100,000	92,500,000	101,600,000
Amortization	292,900,000	370,600,000	378,700,000
Stock-based compensation expense	83,300,000	62,000,000.0	65,000,000.0
Deferred income taxes and other non-cash taxes	(94,400,000)	(235,700,000)	(477,300,000)
Goodwill impairment charge	0	0	685,700,000
Impairment of intangible assets and equipment	30,200,000	685,400,000	46,000,000.0
Debt extinguishment losses	0	800,000	45,900,000
Other adjustments and non-cash items	27,300,000	33,800,000	24,800,000
Changes in operating assets and liabilities, excluding the effect of acquisitions and dispositions:
Accounts receivable	(427,100,000)	(76,500,000)	(38,200,000)
Inventory	(25,300,000)	(63,000,000.0)	(50,600,000)
Prepaid income taxes	(3,800,000)	(3,200,000)	(9,400,000)
Prepaid expenses and other assets	(286,200,000)	(6,000,000.0)	(4,200,000)
Accounts payable	(4,900,000)	(5,500,000)	23,900,000
Accrued expenses and other liabilities	96,000,000.0	(16,500,000)	53,800,000
Deferred revenue	15,000,000.0	14,400,000	(1,500,000)
Net cash provided by operating activities	896,600,000	649,500,000	732,900,000
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired	(119,400,000)	(110,600,000)	(76,500,000)
Net proceeds from sale of business	139,300,000	0	0
Payments to Acquire Equity Method Investments	0	(18,200,000)	0
Loans to SSI	0	(28,400,000)	0
Purchase of property and equipment	(98,300,000)	(57,000,000.0)	(58,400,000)
Increase in equipment under customer usage agreements	(58,100,000)	(52,100,000)	(47,200,000)
Purchase of cost method investment	0	(3,000,000.0)	(6,000,000.0)
Purchase of insurance contracts	(2,400,000)	0	0
Payments to Acquire in Process Research and Development	0	4,500,000	0
Other activity	(2,700,000)	(6,900,000)	(7,100,000)
Net cash (used in) provided by investing activities	(141,600,000)	(280,700,000)	(195,200,000)
FINANCING ACTIVITIES
Proceeds from long-term debt	0	1,500,000,000.0	1,500,000,000.0
Repayment of long-term debt	(37,500,000)	(1,462,500,000)	(1,359,400,000)
Proceeds from Senior Notes	0	0	1,350,000,000.0
Repayment of Senior Notes	0	0	(1,037,700,000)
Payments to extinguish convertible notes	0	0	(546,200,000)
Repayment of acquired debt	(8,300,000)	(2,500,000)	(3,300,000)
Proceeds from revolving credit line	750,000,000.0	480,000,000.0	1,150,000,000.0
Repayments under revolving credit line	(500,000,000.0)	(780,000,000.0)	(1,195,000,000.0)
Proceeds from accounts receivable securitization agreement	16,000,000.0	43,000,000.0	34,000,000.0
Repayments under accounts receivable securitization agreement	(250,000,000.0)	(34,000,000.0)	(9,000,000.0)
Payments to Noncontrolling Interests	(1,800,000)	0	0
Repurchases of common stock	(653,600,000)	(200,100,000)	(275,800,000)
Payment of debt issuance costs	0	(2,700,000)	(23,500,000)
Payment for Contingent Consideration Liability, Financing Activities	(24,300,000)	(6,500,000)	0
Purchase of interest rate caps	0	(1,500,000)	(3,700,000)
Net proceeds from issuance of common stock under employee stock plans	65,600,000	49,800,000	33,200,000
Payments under finance lease obligations	(1,700,000)	(1,700,000)	(1,700,000)
Payment of minimum tax withholdings on net share settlements of equity awards	(14,300,000)	(12,800,000)	(16,700,000)
Net cash used in financing activities	(659,900,000)	(431,500,000)	(404,800,000)
Effect of exchange rate changes on cash and cash equivalents	4,100,000	(2,200,000)	(6,800,000)
Net increase (decrease) in cash and cash equivalents	99,200,000	(64,900,000)	126,100,000
Cash and cash equivalents, beginning of period	601,800,000	666,700,000	540,600,000
Cash and cash equivalents, end of period	$ 701,000,000.0	$ 601,800,000	$ 666,700,000

Operations	12 Months Ended
Operations	Sep. 26, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Operations	Operations Hologic, Inc. (the “Company” or “Hologic”) develops, manufactures and supplies premium diagnostics products, medical imaging systems, and surgical products with an emphasis on women's health and well-being through early detection and treatment. Until December 30, 2019, the Company's product portfolio included light-based aesthetic and medical treatment systems sold by its former Medical Aesthetics business. The Company completed the sale of its Medical Aesthetics segment on December 30, 2019 (the first day of the second quarter of fiscal 2020). During the second, third and fourth quarters of fiscal 2020, the Company operated in four segments: Diagnostics, Breast Health, GYN Surgical and Skeletal Health. COVID-19 Considerations The pandemic caused by the spread of the novel strain of coronavirus disease 2019 ("COVID-19") has created significant volatility, uncertainty and economic disruption in the markets the Company sells its products into, primarily the U.S., Europe and Asia-Pacific. In the second, third and fourth quarters of fiscal 2020, the spread of COVID-19 has negatively impacted business and healthcare activity globally. As healthcare systems respond to the increasing demands of managing COVID-19 and the resulting economic uncertainties, governments around the world have imposed measures designed to reduce the transmission of COVID-19, and individuals are responding to the fears of contracting COVID-19. In particular, elective procedures and exams have been and continue to be delayed or cancelled, there has been a significant reduction in physician office visits, and hospitals have postponed or cancelled capital purchases as well as limited or eliminated services, however in the second half of the third quarter of fiscal 2020, the Company started to see a recovery of elective procedures and exams, which continued into the fourth quarter. The reductions in testing and procedures have had, and the Company believes will continue to have, a negative impact on the Company's operating results and cash flows. However, the impact of the Company's commercial release of its COVID-19 assays more than offset these negative impacts, as the Company generated significant revenue from the sales of these assays in the third and fourth quarters of fiscal 2020. The negative effects of COVID-19 and the associated economic disruptions were felt primarily beginning in the second half of March in many of the Company's end-markets and earlier in Asia, primarily China, and the impact to the Company's legacy products in the third fiscal quarter was significant. The impact to its legacy products was less severe in the fourth quarter. While the Company's results of operations and cash flows in the third and fourth quarter of fiscal 2020 were positively impacted by the sale of its COVID-19 assays, the COVID-19 pandemic could have an adverse impact on its operating results, cash flows and financial condition in the future. The factors that could create such adverse impact include: the severity and duration of the COVID-19 pandemic; continued demand for COVID-19 testing; competition from existing and new COVID-19 testing technologies and products; the COVID-19 pandemic’s impact on the U.S. and international healthcare system, the U.S. economy and worldwide economy; and the timing, scope and effectiveness of U.S. and international governmental responses to the COVID-19 pandemic and associated economic disruptions. In addition to adversely affecting demand for the Company's products, other than its COVID-19 assays, COVID-19 and associated economic disruptions could continue to have an adverse impact on the Company's supply chains and distribution systems, including as a result of impacts associated with preventive and precautionary measures that it, other businesses and governments have taken and will take. A reduction or interruption in any of the Company's manufacturing processes could have a material adverse effect on its business. The Company believes that the uncertainty surrounding global financial markets and deteriorating worldwide macroeconomic conditions resulting from the pandemic have caused and may continue to cause the purchasers of medical equipment to decrease their medical equipment purchasing and procurement activities. Additionally, the pandemic has caused and may further cause constrictions in world credit markets that have caused and could cause its customers to experience increased difficulty in paying their existing obligations to the Company or in securing the financing necessary to purchase the Company's products. Economic uncertainty has resulted and may continue to result in cost-conscious consumers focusing on acute care rather than wellness, which may also continue to adversely affect demand for the Company's products (other than the Company's COVID-19 assays). As the Company assessed the potential longer term economic and capital market uncertainties resulting from the COVID-19 pandemic, at the end of March 2020 the Company suspended its accounts receivable securitization program and borrowed $750.0 million under its revolver. The Company used $250.0 million of these proceeds to pay off all amounts then owed under its accounts receivable securitization agreement and retained the balance as cash reserve. As of the end of fiscal 2020, the Company repaid $500.0 million of the $750.0 million borrowed under its revolver. As of September 26, 2020 the Company had an additional $1.25 billion available under its revolver and $701.0 million of cash on hand. In response to the negative impact of COVID-19 on the Company's business, in April 2020 the Company initiated cost-cutting measures, which included not only reducing discretionary and variable spend, such as travel, marketing programs and the use of contractors, consultants and temporary help, but the Company also implemented employee furloughs, salary cuts primarily in the U.S., reduced hours and in certain instances employee terminations. Further, in April 2020, the Company had shut down certain manufacturing facilities temporarily and implemented reduced work-week schedules in response to lower near-term demand for many of its products. As of the end of the third quarter of fiscal 2020, substantially all of the Company's employee cost-cutting measures ceased, and the majority of the impacted manufacturing facilities are back to pre-COVID levels. The Company has also taken measures to ensure the safety of its employees and to comply with governmental orders. These measures could require that the Company's employees continue to work remotely or otherwise refrain from reporting to their normal workplace for extended periods of time, which in turn could result in a decrease in its commercial and marketing activities.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 26, 2020

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on the last Saturday in September. Fiscal 2020, 2019 and 2018 ended on September 26, 2020, September 28, 2019 and September 29, 2018, respectively. Fiscal 2020, 2019 and 2018 were 52-week years.

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 consolidated financial statements as of and for the year ended September 26, 2020. Subsequent to September 26, 2020, the Company's issued its 2029 Notes on September 28, 2020 and used the proceeds and cash on hand to pay off its 2025 Notes. For additional information, refer to Note 7.

Management’s Estimates and Uncertainties

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("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. Significant estimates and assumptions by management affect the Company’s revenue recognition for multiple performance obligation arrangements, valuations, purchase price allocations and contingent consideration related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of intangible assets and goodwill, amortization methods and periods, warranty reserves, certain accrued expenses, restructuring and other related charges, contingent liabilities, tax reserves, deferred tax rates and recoverability of the Company’s net deferred tax assets and related valuation allowances.

Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances.

The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including dependence on third-party reimbursements to support the markets of the Company’s products, early stage of development of certain products, rapid technological changes, recoverability of long-lived assets (including intangible assets and goodwill), competition, stability of world financial markets, ability to obtain regulatory approvals, changes in the regulatory environment, limited number of suppliers, customer concentration, integration of acquisitions, substantial indebtedness, government regulations, management of international activities, protection of proprietary rights, patent and other litigation, dependence on contract manufacturers and dependence on key individuals.

Cash Equivalents

Cash equivalents are highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition.

Concentrations of Credit Risk

Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, cost-method investments and trade accounts receivable. The Company invests its cash and cash equivalents with high credit quality financial institutions.

The Company’s customers are principally located in the United States, Europe and Asia. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. Although the Company is directly affected by the overall financial condition of the healthcare industry, as well as global economic conditions, management does not believe significant credit risk exists as of September 26, 2020. The Company generally has not experienced any material losses related to receivables from individual customers or groups of customers in the healthcare industry. The Company maintains an allowance for doubtful accounts based on accounts past due and historical collection experience.

There was one customer with a balance greater than 10% of accounts receivable as of September 26, 2020, at 11.9%. There were no customers with a balance greater than 10% of accounts receivable as of September 28, 2019. There were no customers that represented greater than 10% of consolidated revenues for fiscal years 2020, 2019 and 2018.

Concentration of Suppliers

The Company purchases certain components of its products from a single or small number of suppliers. A change in or loss of these suppliers could cause a delay in filling customer orders and a possible loss of sales, which could adversely affect results of operations; however, management believes that suitable replacement suppliers could be obtained in such an event.

Supplemental Cash Flow Statement Information


	Years ended
	September 26, 2020		September 28, 2019		September 29, 2018
Cash paid during the period for income taxes	$	265.9	$	180.6	$	178.2
Cash paid during the period for interest	$	109.5	$	132.5	$	122.1
Non-Cash Financing Activities:
Fair value of contingent consideration at acquisition	$	82.7	$	—	$	7.8

Inventories

Inventories are valued at the lower of cost or market on a first in, first out basis. Work-in-process and finished goods inventories consist of materials, labor and manufacturing overhead. The valuation of inventory requires management to estimate excess and obsolete inventory. The Company employs a variety of methodologies to determine the net realizable value of its inventory. Provisions for excess and obsolete inventory are primarily based on management’s estimates of forecasted sales, usage levels and expiration dates, as applicable for certain disposable products. A significant change in the timing or level of demand for the Company’s products compared to forecasted amounts may result in recording additional charges for excess and obsolete inventory in the future. The Company records charges for excess and obsolete inventory within cost of product revenues.

Inventories consisted of the following:


	September 26, 2020		September 28, 2019
Raw materials	$	152.3	$	166.1
Work-in-process	46.5		54.5
Finished goods	196.3		224.3
	$	395.1	$	444.9

Property, Plant and Equipment

Property, plant and equipment is recorded at cost less allowances for depreciation and impairments. The straight-line method of depreciation is used for all property and equipment.

Property, plant and equipment consisted of the following:


	Estimated Useful Life	September 26, 2020		September 28, 2019
Equipment	3–10 years	$	460.7	$	379.2
Equipment under customer usage agreements	3–8 years	456.8		427.5
Buildings and improvements	20–35 years	167.3		196.7
Leasehold improvements	Shorter of the Original Term of Lease or Estimated Useful Life	44.3		61.7
Land		40.7		46.3
Furniture and fixtures	5–7 years	16.1		17.5
		1,185.9		1,128.9
Less - accumulated depreciation and amortization		(694.4)		(658.0)
		$	491.5	$	470.9

Equipment under customer usage agreements primarily consists of diagnostic instrumentation and imaging equipment located at customer sites but owned by the Company. Generally, the customer has the right to use the equipment for a period of time provided they meet certain agreed to conditions. The Company recovers the cost of providing the equipment from the sale of disposables, primarily assays, tests and handpieces. The depreciation costs associated with equipment under customer usage agreements are charged to cost of product revenues over the estimated useful life of the equipment. The costs to maintain the equipment in the field are charged to cost of product revenue as incurred.

Long-Lived Assets

The Company reviews its long-lived assets, which includes property, plant and equipment and identifiable intangible assets (see below for discussion of intangible assets), for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10-35-15, Property, Plant and Equipment—Impairment or Disposal of Long-Lived Assets (ASC 360). Recoverability of these assets is evaluated by comparing the carrying value of the assets to the undiscounted cash flows estimated to be generated by those assets over their remaining economic life. If the undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are considered impaired. The impairment loss is measured by comparing the fair value of the assets to their carrying value. Fair value is determined by either a quoted market price, if any, or a value determined by a discounted cash flow technique.

Business Combinations and Acquisition of Intangible Assets

The Company accounts for the acquisition of a business in accordance with ASC 805, Business Combinations (ASC 805). Amounts paid to acquire a business are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Contingent consideration not deemed to be linked to continuing employment is recorded at fair value as measured on the date of acquisition. The value recorded is based on estimates of future financial projections under various potential scenarios using a Monte Carlo simulation. These cash flow projections are discounted with an appropriate risk adjusted rate. Each quarter until such contingent amounts are earned, the fair value of the liability is remeasured at each reporting period and adjusted as a component of operating expenses based on changes to the underlying assumptions. The estimates used to determine the fair value of the contingent consideration liability are subject to significant judgment and actual results are likely to differ from the amounts originally recorded. The Company determines the fair value of acquired intangible assets based on detailed valuations that use certain information and assumptions provided by management. The Company allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill.

The Company uses the income approach to determine the fair value of developed technology and in-process research and development ("IPR&D") acquired in a business combination. This approach determines fair value by estimating the after-tax cash flows attributable to the respective asset over its useful life and then discounting these after-tax cash flows back to a present value. The Company bases its revenue assumptions on estimates of relevant market sizes, expected market growth rates, expected trends in technology and expected product introductions by competitors. Developed technology represents patented and unpatented technology and know-how. The value of the in-process projects is based on the project's stage of completion,

the complexity of the work completed as of the acquisition date, the projected costs to complete, the contribution of core technologies and other acquired assets, the expected introduction date, the estimated cash flows to be generated upon commercial release and the estimated useful life of the technology. The Company believes that the estimated developed technology and IPR&D amounts represent the fair value at the date of acquisition and do not exceed the amount a third-party would pay for the assets.

The Company also uses the income approach, as described above, to determine the estimated fair value of certain other identifiable intangible assets including customer relationships, trade names and business licenses. Customer relationships represent established relationships with customers, which provide a ready channel for the sale of additional products and services. Trade names represent acquired company and product names.

Intangible Assets and Goodwill

Intangible Assets

Intangible assets are initially recorded at fair value and stated net of accumulated amortization and impairments. The Company amortizes its intangible assets that have finite lives using either the straight-line method, or if reliably determinable, based on the pattern in which the economic benefit of the asset is expected to be utilized. Amortization is recorded over the estimated useful lives ranging from 2 to 30 years. The Company evaluates the recoverability of its definite lived intangible assets whenever events or changes in circumstances or business conditions indicate that the carrying value of these assets may not be recoverable based on expectations of future undiscounted cash flows for each asset group. If the carrying value of an asset or asset group exceeds its undiscounted cash flows, the Company estimates the fair value of the assets, generally utilizing a discounted cash flow analysis based on the present value of estimated future cash flows to be generated by the assets using a risk-adjusted discount rate. To estimate the fair value of the assets, the Company uses market participant assumptions pursuant to ASC 820, Fair Value Measurements.

Indefinite lived intangible assets, such as IPR&D assets, are required to be tested for impairment annually, or more frequently if indicators of impairment are present. The Company’s annual impairment test date is as of the first day of its fourth quarter.

Intangible assets consisted of the following:


	September 26, 2020				September 28, 2019
Description	Gross Carrying Value		Accumulated Amortization		Gross Carrying Value		Accumulated Amortization
Acquired intangible assets:
Developed technology	$	4,054.0	$	2,907.2	$	3,927.7	$	2,654.8

Customer relationships	549.1		477.8		525.5		447.5
Trade names	245.5		181.2		245.4		171.1
Distribution agreement	—		—		2.5		—
Non-competition agreements	1.5		1.3		1.4		0.9
Business licenses	2.4		2.3		2.3		2.2
Total acquired intangible assets	$	4,852.5	$	3,569.8	$	4,704.8	$	3,276.5

Internal-use software	51.8		43.2		53.9		43.4
Capitalized software embedded in products	26.8		10.6		27.9		6.9
Total intangible assets	$	4,931.1	$	3,623.6	$	4,786.6	$	3,326.8

Medical Aesthetics Impairment

In the first quarter of fiscal 2020, the Company's Medical Aesthetics business met the criteria to be designated as assets held-for-sale. As a result, the Company recorded a $30.2 million charge to record the asset group at fair value less costs to sell. In addition, developed technology, customer lists, trade names, and distribution agreement related to Medical Aesthetics of $24.1 million, $0.9 million, $2.0 million, and $1.2 million, respectively, were reclassified accordingly in the Company's Consolidated Balance Sheet to assets held-for-sale as of December 28, 2019 and subsequently disposed of in the second quarter of fiscal 2020. See Note 15 for additional information.

During fiscal 2019, the Company identified indicators of impairment for its Medical Aesthetics reporting unit as a result of reductions in forecasts during the year, and in connection with the Company’s efforts to sell the business that began prior to the end of fiscal 2019. In performing the undiscounted cash flow analysis pursuant to ASC 360, the expected undiscounted cash flows of the asset group were determined using a probability-weighted approach taking into consideration the planned disposition, which was deemed to be highly probable as of the balance sheet date. Based on this analysis, the undiscounted cash flows were not sufficient to recover the carrying value of the asset group. As a result, the Company was required to perform Step 3 of the impairment test and determine the fair value of the asset group. The Company executed a definitive agreement on November 20, 2019 to sell the business. Although this agreement was signed subsequent to the balance sheet date, the Company concluded that it provided evidence regarding the estimate of fair value of the asset group at September 28, 2019 and that there were no events that occurred between September 28, 2019 and the date the Company entered into the definitive agreement that would significantly affect the fair value of the asset group. As a result, the Company recorded total impairment charges of $685.4 million in fiscal 2019. The impairment charge was allocated to the long-lived assets as follows: $576.9 million to developed technology, $22.4 million to customer relationships, $48.6 million to trade names, $27.7 million to distribution agreements and $9.8 million to equipment. On November 20, 2019, this asset group met the assets held-for-sale criteria and was recorded at fair value less the costs to sell as noted above. See Note 15.

During the second quarter of fiscal 2018, the Company abandoned an in-process research and development project acquired in the Cynosure acquisition and recorded an impairment charge of $46.0 million. The Company abandoned the project as a result of unsuccessful clinical results.

Other Activity

During the fourth quarter of fiscal 2020, the Company acquired Acessa Health, Inc. and recorded $127.0 million of developed technology and $1.2 million of trade names based on its preliminary purchase accounting.

During the first quarter of fiscal 2019, the Company acquired Focal Therapeutics, Inc. and recorded $83.1 million of developed technology, $11.4 million of in-process research and development and $2.7 million of trade names. In the fourth quarter of fiscal 2019, the Company obtained FDA approval for the in-process research and development project and reclassified this value to developed technology. During fiscal 2019, the two in-process research and development projects acquired in the Faxitron acquisition aggregating $5.5 million were completed and reclassified to developed technology.

Amortization expense related to developed technology is classified as cost of product revenues—amortization of intangible assets. Amortization expense related to customer relationships, contracts, trade names, distribution agreements, and business licenses is classified as a component of amortization of intangible assets within operating expenses.

The estimated amortization expense at September 26, 2020 for each of the five succeeding fiscal years was as follows:


Fiscal 2021	$	283.5
Fiscal 2022	$	273.1
Fiscal 2023	$	176.0
Fiscal 2024	$	164.6
Fiscal 2025	$	151.1

Goodwill

In accordance with ASC 350, Intangibles—Goodwill and Other (ASC 350), the Company tests goodwill for impairment annually at the reporting unit level and between annual tests if events and circumstances indicate it is more likely than not that the fair value of a reporting unit is less than its carrying value. Events that could indicate impairment and trigger an interim impairment assessment include, but are not limited to, current economic and market conditions, including a decline in market capitalization, a significant adverse change in legal factors, business climate, operational performance of the business or key personnel, and an adverse action or assessment by a regulator.

In performing the impairment test, the Company utilizes the single-step approach prescribed under Accounting Standards Update No. 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (ASU 2017-04) . This approach requires a comparison of the carrying value of each reporting unit to its estimated fair value and to the extent the carrying value exceeds the fair value a charge is recorded up to the amount of goodwill in the reporting unit. To estimate the fair value of its reporting units, the Company primarily utilizes the income approach. The income approach is based on a DCF analysis and calculates the fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting the after-tax cash flows to present value using a risk-adjusted discount rate. Assumptions used in the DCF require significant judgment, including judgment about appropriate discount rates and terminal values, growth rates, and the

amount and timing of expected future cash flows. The forecasted cash flows are based on the Company’s most recent budget and strategic plan and for years beyond this period, the Company’s estimates are based on assumed growth rates expected as of the measurement date. The Company believes its assumptions are consistent with the plans and estimates used to manage the underlying businesses. The discount rates used are intended to reflect the risks inherent in future cash flow projections and are based on estimates of the weighted-average cost of capital (“WACC”) of market participants relative to each respective reporting unit. The market approach considers comparable market data based on multiples of revenue or earnings before interest, taxes, depreciation and amortization (“EBITDA”) and is primarily used as a corroborative analysis to the results of the DCF analysis. The Company believes its assumptions used to determine the fair value of its reporting units are reasonable. If different assumptions were used, particularly with respect to forecasted cash flows, terminal values, WACCs, or market multiples, different estimates of fair value may result and there could be the potential that an impairment charge could result. Actual operating results and the related cash flows of the reporting units could differ from the estimated operating results and related cash flows.

The Company conducted its fiscal 2020 impairment test for its reporting units on the first day of the fourth quarter, and as noted above used DCF and market approaches to estimate the fair value of its reporting units as of June 28, 2020, and ultimately used the fair value determined by the DCF approach in making its impairment test conclusions. The Company believes it used reasonable estimates and assumptions about future revenue, cost projections, cash flows, market multiples and discount rates as of the measurement date. As a result of completing this analysis, all of the Company's reporting units had fair values exceeding their carrying values. For illustrative purposes, had the fair value of each of the reporting units been lower by 10%, all of the reporting units would still have passed the goodwill impairment test.

At September 26, 2020, the Company believes that its reporting units, with goodwill aggregating $2.6 billion, were not at risk of failing the goodwill impairment test based on its current forecasts and qualitative assessment.

In fiscal 2019, the Company used the qualitative approach as of June 29, 2019 to assess its goodwill for impairment. Under this approach the Company considered a number of factors, including the amount by which the previous quantitative test's fair value exceeded the carrying value of the reporting units, the forecasts in the Company's strategic plan compared to the forecast used in the previous quantitative test, an evaluation of discount rates, long-term growth rates including the terminal year rate, if tax rates would have significantly changed, an evaluation of current economic factors for both the worldwide economy and specifically the medical device industry, and any significant changes in customer and supplier relationships. The Company weighed these factors to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value. If after performing a qualitative assessment, indicators are present, or the Company identified factors that cause it to believe it is appropriate to perform a more precise calculation of fair value, the Company would have moved beyond the qualitative assessment and perform a quantitative impairment test. As a result of completing the qualitative assessment for each of its reporting units for fiscal 2019, the Company concluded that it was more likely than not that the fair value of each reporting exceeded its carrying value by a significant amount and a quantitative test was unnecessary.

During the second quarter of fiscal 2018, in connection with commencing its company-wide annual budgeting and strategic planning process, evaluating its current operating performance of its Medical Aesthetics reporting unit, and abandoning an in-process research and development project, the Company reduced its short term and long term revenue and operating income forecasts and determined that indicators of impairment existed in its Medical Aesthetics reporting unit. The Medical Aesthetics reporting unit was solely comprised of the Cynosure business, which the Company acquired on March 22, 2017. The updated forecast reflected significantly reduced volume and market penetration projections resulting in lower short-term and long-term profitability than expected at the time of the Cynosure acquisition. As a result of those events and circumstances at that time, the Company determined that it was more likely than not that this change would reduce the fair value of the reporting unit below its carrying amount. To estimate the fair value of the reporting unit, the Company utilized the DCF analysis. The forecasted cash flows were based on the Company's most recent budget and strategic plan and for period beyond the strategic plan, the Company's estimates were based on assumed growth rates expected as of the measurement date. The Company believed its assumptions were consistent with the plans and estimates used to manage the underlying business. The discount rate used is intended to reflect the risks inherent in future cash flow projections and was based on an estimate of the weighted average cost of capital (WACC) of market participants relative to the reporting unit. The basis of fair value for Medical Aesthetics assumed the reporting unit would be purchased or sold in a non-taxable transaction, and the discount rate of 12.0% applied to the after-tax cash flows was consistent with that used in the purchase accounting performed in fiscal 2017. As a result of this analysis, the fair value of the Medical Aesthetic reporting unit was significantly below its carrying value, and the Company recorded a goodwill impairment charge of $685.7 million during the second quarter of fiscal 2018.

In connection with the goodwill impairment test in the second quarter of fiscal 2018, the Company also performed an impairment test of this reporting unit’s long-lived assets. This impairment evaluation was based on expectations of future undiscounted cash flows compared to the carrying value of the long-lived assets. The Company’s cash flow estimates were consistent with those used in the goodwill impairment test discussed above. Based on this analysis, the undiscounted cash flows

of the Medical Aesthetics long-lived assets were in excess of their carrying value and thus deemed to not be impaired. The Company believed its procedures for estimating future cash flows were reasonable and consistent with market conditions at the time of estimation.

The Company conducted its 2018 impairment test on the first day of the fourth quarter, and as noted above used DCF and market approaches to estimate the fair value of its reporting units as of July 1, 2018 and ultimately used the fair value determined by the DCF approach in making its impairment test conclusions. As a result of completing Step 1, all of the Company's reporting units had fair values exceeding their carrying values, and as such, Step 2 of the impairment test was not required.

A rollforward of goodwill activity by reportable segment from September 28, 2019 to September 26, 2020 is as follows:


	Diagnostics		Breast Health		GYN Surgical		Skeletal Health		Total
Balance at September 28, 2019	$	819.2	$	722.2	$	1,014.2	$	8.1	$	2,563.7


SuperSonic Imagine acquisition	—		34.3		—		—		34.3
Health Beacons acquisition	—		6.2		—		—		6.2

Acessa Health acquisition	—		—		48.4		—		48.4
Foreign currency and other adjustments	2.4		2.1		0.8		—		5.3
Balance at September 26, 2020	$	821.6	$	764.8	$	1,063.4	$	8.1	$	2,657.9

Other Assets

Other assets consisted of the following:


	September 26, 2020		September 28, 2019
Other Assets

Tax receivable	$	325.7	$	—
Right of use assets	80.7		—
Life insurance contracts	49.3		44.6
Deferred tax assets	15.5		17.2



Cost-method equity investments	11.4		11.4

Equity-method investment and loans to SSI (Note 5)	—		42.7
Other	34.0		38.7
	$	516.6	$	154.6

The tax receivable primarily relates to a discrete tax benefit from the sale of Cynosure in the second quarter of fiscal 2020. The right of use assets were recorded in connection with the adoption of ASC 842, Leases, and pertains to operating leases. Life insurance contracts were purchased in connection with the Company’s Nonqualified Deferred Compensation Plan (“DCP”) and are recorded at their cash surrender value (see Note 12 for further discussion).

Research and Software Development Costs

Costs incurred for the research and development of the Company’s products are expensed as incurred. Nonrefundable advance payments for goods or services to be received in the future by the Company for use in research and development activities are deferred. The deferred costs are expensed as the related goods are delivered or the services are performed.

The Company accounts for the development costs of software embedded in the Company’s products in accordance with ASC 985, Software. Costs incurred in the research, design and development of software embedded in products to be sold to customers are charged to expense until technological feasibility of the ultimate product to be sold is established. The Company’s policy is that technological feasibility is achieved when a working model, with the key features and functions of the product, is available for customer testing. Software development costs incurred after the establishment of technological feasibility and until the product is available for general release are capitalized, provided recoverability is reasonably assured. Capitalized software development costs are amortized over their estimate useful life and recorded within cost of revenues - product.

Foreign Currency Translation

The financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, Foreign Currency Matters. The reporting currency for the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is determined based on the guidance in ASC 830. The majority of the Company's foreign subsidiaries' functional currency is the applicable local currency, although certain of the Company's foreign subsidiaries' functional currency is the U.S. dollar based on the nature of their operations or functions. Assets and liabilities of subsidiaries whose functional currency is the local currency are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in other income, net in the Consolidated Statements of Operations. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income (loss) as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Operations and were not significant in any of the reporting periods presented.

Accumulated Other Comprehensive Income (loss)

Other comprehensive income (loss) includes certain transactions that have generally been reported in the statement of stockholders’ equity. The following tables summarize the components and changes in accumulated balances of other comprehensive loss for the periods presented:


	Year Ended September 26, 2020										Year Ended September 28, 2019
	Foreign Currency Translation		Pension Plans		Hedged Interest Rate Caps		Hedged Interest Rate Swaps		Total		Foreign Currency Translation		Pension Plans		Hedged Interest Rate Caps		Hedged Interest Rate Swaps		Total
Beginning Balance	$	(41.4)	$	(1.7)	$	(2.7)	$	3.5	$	(42.3)	$	(26.6)	$	(1.1)	$	2.2	$	—	$	(25.5)
Other comprehensive loss before reclassifications	18.5		(0.1)		(0.5)		(27.6)		(9.7)		(14.8)		(0.6)		(8.0)		3.5		(19.9)
Charges (gains) reclassified to statement of operations	—		—		2.3		—		2.3		—		—		3.1		—		3.1
Ending Balance	$	(22.9)	$	(1.8)	$	(0.9)	$	(24.1)	$	(49.7)	$	(41.4)	$	(1.7)	$	(2.7)	$	3.5	$	(42.3)

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, net in the Consolidated Statements of Operations.

During fiscal 2018, the Company entered into separate interest rate cap agreements with multiple counter-parties to mitigate the interest rate volatility associated with the variable interest rate on its amounts borrowed under the term loan feature of its credit facilities (see Note 7). 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 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.

During fiscal 2019, the Company entered into additional 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 cap agreements was $1.5 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 Credit Agreement, that has been amended multiple times, 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 ended on December 27, 2019 for the contracts entered into in fiscal 2018, and which will end on December 23, 2020 for the interest rate cap agreements entered into in fiscal 2019.

As of September 26, 2020, 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 within AOCI.

During fiscal 2020, 2019 and 2018, interest expense of $2.3 million, $3.1 million and $3.6 million, respectively, was reclassified from AOCI to the Company's Consolidated Statements of Operations related to the interest rate cap agreements. The Company expects to similarly reclassify approximately $0.5 million from AOCI to the Consolidated Statements of Operations in the next twelve months.

The aggregate fair value of these interest rate caps was $0.0 million and $0.1 million at September 26, 2020 and September 28, 2019, respectively, and is included in both Prepaid expenses and other current assets and Other assets on the Company’s Consolidated Balance Sheet. Refer to Note 8 “Fair Value Measurements” for related fair value disclosures.

Interest Rate Swap - Cash Flow Hedge

In fiscal 2019, in order to hedge a portion of its variable rate debt beyond the contracted period under interest cap agreements, the Company entered into an interest rate swap contract with an effective date of December 23, 2020 and a termination date of December 17, 2023. The notional amount of this swap is $1.0 billion. The interest rate swap effectively fixes the LIBOR component of the variable interest rate on $1.0 billion of the notional amount under the 2018 Credit Agreement at 1.23%. The critical terms of the interest rate swap are designed to mirror the terms of the Company’s LIBOR-based borrowings under its credit agreement and therefore are highly effective at offsetting the cash flows being hedged. The Company designated this derivative as a cash flow hedge of the variability of the LIBOR-based interest payments on $1.0 billion of principal. Therefore, changes in the fair value of the swap are recorded in accumulated other comprehensive income (loss) and were a loss, net of taxes, of $27.6 million and a gain, net of taxes, of $3.5 million for the years ended September 26, 2020 and September 28, 2019, respectively. The fair value of this derivative was in a liability position of $31.2 million as of September 26, 2020.

Forward Foreign Currency Contracts and Foreign Currency Option Contracts

The Company enters into forward foreign currency exchange contracts and foreign currency option 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 did not elect hedge accounting for these contracts; 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, net.


	Years Ended
	September 26, 2020		September 28. 2019		September 29. 2018
Amount of realized (loss) gain recognized in income
Forward foreign currency contracts	$	0.7	$	11.0	$	(1.3)
Foreign currency option contracts	(1.9)		—		—
Total	$	(1.2)	$	11.0	$	(1.3)

Amount of unrealized gain (loss) recognized in income
Forward foreign currency contracts	$	(0.2)	$	(2.2)	$	6.6
Foreign currency option contracts	4.0		0.1		—
Total	$	3.8	$	(2.1)	$	6.6

As of September 26, 2020, the Company had outstanding forward foreign currency contracts that were not designated for hedge accounting and are used to hedge fluctuations in the U.S dollar of forecasted transactions denominated in the Australian Dollar, Canadian Dollar, Chinese Yuan and Japanese Yen with a notional amount of $172.6 million. As of September 26, 2020, the Company had outstanding foreign currency option contracts that were not designated for hedge accounting and are used to hedge fluctuations in the U.S dollar of forecasted transactions denominated in the Euro and UK Pound with a notional amount of $380.2 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 September 26, 2020:


	Balance Sheet Location	September 26, 2020		September 28, 2019
Assets:
Derivative instruments designated as a cash flow hedge:
Interest rate cap agreements	Prepaid expenses and other current assets	$	—	$	0.1

Interest rate swap contract	Other assets	$	—	$	4.7
		$	—	$	4.8

Derivatives not designated as hedging instruments:
Forward foreign currency contracts	Prepaid expenses and other current assets	$	1.1	$	0.9
Foreign currency option contracts	Prepaid expenses and other current assets	10.1		2.0
		$	11.2	$	2.9

Liabilities:
Derivative instruments designated as a cash flow hedge:
Interest rate swap contract	Accrued expenses	$	8.2	$	—
Interest rate swap contract	Other long-term liabilities	23.0		—
Total		$	31.2	$	—
Derivatives not designated as hedging instruments:
Forward foreign currency contracts	Accrued expenses	$	—	$	0.1

The following table presents the unrealized gain (loss) recognized in AOCI related to the interest rate caps and interest rate swap for the following reporting periods:


	Years Ended
	September 26, 2020		September 28, 2019		September 29, 2018
Amount of gain (loss) recognized in other comprehensive income (loss), net of taxes:
Interest rate swap	$	(27.6)	$	3.5	$	—
Interest rate cap agreements	(0.5)		(8.0)		(5.7)
Total	$	(28.1)	$	(4.5)	$	(5.7)

The following table presents the adjustment to fair value (realized and unrealized) recorded within the Consolidated Statements of Operations for derivative instruments for which the Company did not elect hedge accounting:


Derivatives not classified as hedging instruments	Years Ended						Location of Gain Recognized in Income
	September 26, 2020		September 28, 2019		September 29, 2018
Forward foreign currency contracts	$	0.5	$	8.8	$	5.3	Other income, net
Foreign currency option contracts	2.1		0.1		—		Other income, net
	$	2.6	$	8.9	$	5.3

Accounts Receivable and Reserves

The Company records reserves for doubtful accounts based upon a specific review of all outstanding invoices, known collection issues and historical experience. The Company regularly evaluates the collectability of its trade accounts receivables and performs ongoing credit evaluations of its customers and adjusts credit limits based upon payment history and its assessment of the customer’s current credit worthiness.

Accounts receivable reserve activity for fiscal 2020, 2019 and 2018 was as follows:


	Balance at Beginning of Period		Charged to Costs and Expenses		Divested		Write- offs and Payments		Balance at End of Period
Period Ended:
September 26, 2020	$	17.8	$	26.8	$	(5.8)	$	(7.2)	$	31.6
September 28, 2019	$	16.2	$	4.4	$	—	$	(2.8)	$	17.8
September 29, 2018	$	9.8	$	7.0	$	—	$	(0.6)	$	16.2

Cost of Service and Other Revenues

Cost of service and other revenues primarily represents payroll and related costs associated with the Company’s professional services’ employees, consultants, infrastructure costs and overhead allocations, including depreciation, rent and materials consumed in providing the service.

Stock-Based Compensation

The Company accounts for share-based payments in accordance with ASC 718, Stock Compensation (ASC 718). As such, all share-based payments to employees, including grants of stock options, restricted stock units, performance stock units and market stock units and shares issued under the Company’s employee stock purchase plan, are recognized in the Consolidated Statements of Operations based on their fair values on the date of grant. In addition, as a result of the adoption of ASU 2016-09 in fiscal 2017, all excess tax benefits and deficiencies are recognized as a component of the provision for income taxes on a discrete basis in the period in which the equity awards vest and/or are settled.

Net Income (Loss) Per Share

Basic net income (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding. Diluted net income per share is computed by dividing net income by the weighted average number of common shares and the dilutive effect of potential future issuances of common stock from outstanding stock options, restricted stock units and convertible debt for the period outstanding determined by applying the treasury stock method. In accordance with ASC 718, the assumed proceeds under the treasury stock method include the average unrecognized compensation expense of in-the-money stock options and restricted stock units. This results in the assumed buyback of additional shares, thereby reducing the dilutive impact of equity awards.

A reconciliation of basic and diluted share amounts for fiscal 2020, 2019, and 2018 was as follows:


	September 26, 2020	September 28, 2019	September 29, 2018
Basic weighted average common shares outstanding	262,727	269,413	275,105
Weighted average common stock equivalents from assumed exercise of stock options and restricted stock units	1,886	—	—
Diluted weighted average common shares outstanding	264,613	269,413	275,105
Weighted-average anti-dilutive shares related to:
Outstanding stock options and stock units	1,158	4,098	5,073
Convertible notes	—	—	703

In those reporting periods in which the Company has reported net income, anti-dilutive shares generally are comprised of 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. In those reporting periods in which the Company has a net loss, anti-dilutive shares are comprised of the impact of those number of shares that would have been dilutive had the Company had net income plus the number of common stock equivalents that would be anti-dilutive had the company had net income.

Product Warranties

The Company generally offers a one-year warranty for its products. The Company provides for the estimated cost of product warranties at the time product revenue is recognized. Factors that affect the Company’s warranty reserves include the number of units sold, historical and anticipated rates of warranty repairs and the cost per repair. The Company periodically assesses the adequacy of the warranty reserve and adjusts the amount as necessary.

Product warranty activity for fiscal 2020 and 2019 was as follows:


	Balance at Beginning of Period		Provisions		Acquired		Divested		Settlements/ Adjustments		Balance at End of Period
Period ended:
September 26, 2020	$	13.9	$	11.7	$	0.5	$	(6.1)	$	(10.1)	$	9.9
September 28, 2019	$	15.9	$	14.1	$	—	$	—	$	(16.1)	$	13.9

Advertising Costs

Advertising costs are charged to operations as incurred. The Company does not have any direct-response advertising. Advertising costs, which include trade shows and conventions, were approximately $15.6 million, $29.5 million and $26.9 million for fiscal 2020, 2019 and 2018, respectively, and were included in selling and marketing expense in the Consolidated Statements of Operations.

Recently Adopted Accounting Pronouncements

In August 2017, the FASB issued ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities. The guidance requires certain changes to the presentation of hedge accounting in the financial statements and also simplifies the application of hedge accounting and expands the strategies that qualify for hedge accounting. The Company adopted the standard in the first quarter of fiscal 2020. The adoption of ASU 2017-12 did not have a material effect on the Company's consolidated financial statements.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326) and subsequently a number of improvements. 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, as well as all codification improvements in ASU 2019-04, ASU 2019-10, ASU 2019-11 and ASU 2020-03, on its consolidated financial position and results of operations. The Company expects the adoption to primarily be applicable to its accounts receivable and does not believe the impact will be material to its consolidated financial statements.

In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). The guidance identifies, evaluates, and improves areas of GAAP for which cost and complexity can be reduced while maintaining or improving the usefulness of the information provided. The amendments in that Update expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. For entities that have adopted the amendments in Update 2018-07, 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 2019-08 on its consolidated financial position and results of operations but does not expect the adoption to have a material impact to its consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740) Simplifying the Accounting for Income Taxes. The Board is issuing this Update as part of its initiative to reduce complexity in accounting standards (the Simplification Initiative). For public business entities, the amendments in this Update are effective for fiscal years, and interim periods within

those fiscal years, beginning after December 15, 2020. The Company is currently evaluating the impact of the adoption of ASU 2019-12 on its consolidated financial position and results of operations.

In January 2020, the FASB issued ASU No. 2020-01, Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815). The Board is issuing this Update to clarify certain interactions between the guidance to account for certain equity securities under Topic 321, the guidance to account for investments under the equity method of accounting in Topic 323, and the guidance in Topic 815. This update could change how an entity accounts for an equity security under the measurement alternative or a forward contract or purchased option to purchase securities that, upon settlement of the forward contract or exercise of the purchased option, would be accounted for under the equity method of accounting or the fair value option in accordance with Topic 825, Financial Instruments. For entities that have adopted the amendments in Update 2020-01, the updated guidance is effective for annual periods beginning after December 15, 2020, and is applicable to the Company in fiscal 2022. Early adoption is permitted. The Company is currently evaluating the impact of the adoption of ASU 2020-01 on its consolidated financial position and results of operations.

In January 2020, the FASB issued ASU No. 2020-03, Codification Improvements to Financial Instruments. The Board is issuing this Update to clarify or improve the Codification, as well as, make the Codification easier to understand and apply by eliminating inconsistencies. This update is to improve various financial instruments Topics in the Codification to increase stakeholder awareness of the amendments and to expedite the improvement process. For entities that have adopted the amendments in Update 2020-03, the updated guidance is effective for all entities beginning in fiscal 2021. The Company is currently evaluating the impact of the adoption of ASU 2020-03 on its consolidated financial position and results of operations.

In January 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848). The Board is issuing this Update as optional guidance for a limited period of time to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. This update will provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to only contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. For entities that have adopted the amendments in Update 2020-04, the updated guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company is currently evaluating the impact of the adoption of ASU 2020-04 on its consolidated financial position and results of operations.

Revenue (Notes)

12 Months Ended

Sep. 26, 2020

Revenue from Contract with Customer [Abstract]

Revenue

In May 2014, the FASB issued ASC 606. The Company adopted the standard, which superseded ASC Topic 605, Revenue Recognition (ASC 605), 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 than under ASC 605 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 the legacy GAAP requirements of ASC 605. As the adoption of this standard did not have a material impact on the Company’s revenue recorded for the years ended September 28, 2019 and September 29, 2018, 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, diagnostic tests and assays and surgical disposable products, and related services, which are primarily support and maintenance services on its medical imaging systems, and to a lesser extent installation, training and repairs. Prior to the Cynosure divestiture, the Company also generated revenue from the sale and service of medical aesthetic treatment systems. 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:


		Years Ended
		September 26, 2020						September 28, 2019						September 29, 2018
Business (in millions)		United States		Intl.		Total		United States		Intl.		Total		United States		Intl.		Total
Diagnostics:
	Cytology & Perinatal	$	266.3	$	143.8	$	410.1	$	312.9	$	159.1	$	472.0	$	322.9	$	157.4	$	480.3
	Molecular Diagnostics	1,272.5		375.9		1,648.4		549.9		125.1		675.0		503.4		108.4		611.8
	Blood Screening	43.6		—		43.6		58.5		—		58.5		55.3		—		55.3
Total		1,582.4		519.7		2,102.1		921.3		284.2		1,205.5		881.6		265.8		1,147.4

Breast Health:
	Breast Imaging	722.0		231.6		953.6		853.1		241.5		1,094.6		782.0		234.5		1,016.5
	Interventional Breast Solutions	166.6		31.7		198.3		184.8		34.8		219.6		169.4		32.3		201.7

Total		888.6		263.3		1,151.9		1,037.9		276.3		1,314.2		951.4		266.8		1,218.2

GYN Surgical		310.1		66.0		376.1		362.8		74.4		437.2		352.8		69.2		422.0

Skeletal Health		51.2		29.8		81.0		58.6		36.2		94.8		59.4		31.8		91.2

Medical Aesthetics		30.9		34.4		65.3		155.4		160.2		315.6		172.4		166.7		339.1
Total		$	2,863.2	$	913.2	$	3,776.4	$	2,536.0	$	831.3	$	3,367.3	$	2,417.6	$	800.3	$	3,217.9


	Years Ended
Geographic Regions (in millions)		September 26, 2020		September 28, 2019		September 29, 2018
United States		$	2,863.2	$	2,536.0	$	2,417.6
Europe		569.8		396.0		377.5
Asia-Pacific		226.8		286.0		275.6
Rest of World		116.6		149.3		147.2
		$	3,776.4	$	3,367.3	$	3,217.9

The following table provides revenue recognized by source:


	Years Ended
Revenue by type (in millions)		September 26, 2020		September 28, 2019		September 29, 2018
Disposables		$	2,561.1	$	1,786.4	$	1,666.7
Capital equipment, components and software		665.9		984.9		977.2
Service		516.6		568.3		551.8
Other		32.8		27.7		22.2
		$	3,776.4	$	3,367.3	$	3,217.9

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 which represents the point in time when the customer obtains the use of and substantially all of the remaining benefit of the product. As such, 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 repairs is recognized over time based on the period contracted or as the services are performed as these methods represent a faithful depiction of the transfer of goods and services.

The Company recognizes a receivable when it has an unconditional right to payment, which represents the amount the Company expects to collect in a transaction and is most often equal to the transaction price in the contract. 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 also places instruments (or equipment) at customer sites but retains title to 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 lease, which is generally an 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 standalone 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 the right to return product. In general, estimates of variable consideration and constraints are not material to the Company's financial statements.

Remaining Performance Obligations

As of September 26, 2020, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was approximately $635.6 million. These remaining performance obligations primarily relate 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 39% of this amount as revenue in 2021, 28% in 2022, 19% in 2023, 10% in 2024, and 4% 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 receivable 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 and Skeletal Health reportable segments and, until December 30, 2019, the divested Medical Aesthetics segment. Contract liabilities are classified as other current liabilities and other long-term liabilities on the Consolidated Balance Sheets. The Company recognized revenue of $106.2 million and $158.9 million in the years ended September 26, 2020 and September 28, 2019, respectively, that was included in the contract liability balance at September 28, 2019 and September 29, 2018, respectively.

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.

Revenue Recognition under ASC 605 (prior to the adoption of ASC 606, which applies to fiscal 2018)

Under ASC 605, the Company recognized product revenue upon shipment provided that there was persuasive evidence of an arrangement, there were no uncertainties regarding acceptance, the sales price was fixed or determinable, and collection of the resulting receivable was reasonably assured. Generally, the Company’s product arrangements for capital equipment sales, primarily in its Breast Health, Medical Aesthetics and Skeletal Health reporting segments, were multiple-element arrangements, including services, such as installation, training and support and maintenance, and multiple products. Based on the terms and conditions of the product arrangements, the Company believed that these services and undelivered products could be accounted for separately from the delivered product element as the Company’s delivered products have value to its customers on a stand-alone basis. Accordingly, revenue for services not yet performed at the time of product delivery were deferred and recognized as such services were performed. The relative selling price of any undelivered products was also deferred at the time of shipment and recognized as revenue when these products were delivered. There was no customer right of return in the Company’s sales agreements for its capital equipment.

Service revenues primarily consist of amounts recorded under service and maintenance contracts and repairs not covered under warranty, installation and training, and shipping and handling costs billed to customers. Service and maintenance contract revenues were recognized ratably over the term of the contract. Other service revenues were recognized as the services were completed using the specific performance method. Service and other revenue also included royalties which were recognized in the period the payments were due to the Company.

For revenue arrangements with multiple deliverables, the Company recorded revenue as separate units of accounting if the delivered items had value to the customer on a stand-alone basis and the delivery or performance of the undelivered items was considered probable and substantially within the Company’s control. Some of the Company’s products have both software and non-software components that function together to deliver the product’s essential functionality. The Company determined that except for its computer-aided detection (“CAD”) products and C-View and Intelligent 2D products, the software element in its other products was not within the scope of the software revenue recognition rules, ASC 985-605, Software—Revenue Recognition. The Company determined that given the significance of the software component’s functionality to its CAD, C-View and Intelligent 2D components, which are sold by its Breast Health segment, these products were within the scope of the software revenue recognition rules. The Company evaluated the appropriate revenue recognition treatment of it hardware products, including its Dimensions digital mammography systems, which had both software and non-software components that function together to deliver the products’ essential functionality (i.e., it is a tangible product), and determined they were not within the scope of ASC 985-605.

The Company was required to allocate revenue to its multiple element arrangements based on the relative fair value of each element’s selling price. The Company typically determined the selling price of its products based on its best estimate of selling prices (“ESP”) and services based on vendor-specific objective evidence of selling price (“VSOE”). The Company determined VSOE based on its normal pricing and discounting practices for the specific product or service when sold on a stand-alone basis. In determining VSOE, the Company’s policy was to require a substantial majority of selling prices for a product or service to be within a reasonably narrow range. The Company also considered the class of customer, method of distribution, and the geographies into which its products and services were sold when determining VSOE. If VSOE could not be established, which could occur in instances when a product or service had not been sold separately, stand-alone sales were too infrequent, or product pricing was not within a relatively narrow range, the Company would generally establish the selling price using ESP to allocate arrangement consideration. The objective of ESP was to determine the price at which the Company would typically transact a stand-alone sale of the product or service. ESP was determined by considering a number of factors including Company pricing policies, internal costs and gross margin objectives, method of distribution, information gathered from experience in customer negotiations, market research and information, recent technological trends, competitive landscape and geographies.

For those arrangements accounted for under the software revenue recognition rules, ASC 985-605 generally required revenue earned on software arrangements involving multiple elements to be allocated to each element based on their relative VSOE of fair value. If VSOE did not exist for a delivered element, the residual method was applied in which the arrangement consideration was allocated to the undelivered elements based on their VSOE with the remaining consideration recognized as revenue for the delivered elements. For multiple-element software arrangements where VSOE of fair value of Post-Contract Customer Support (“PCS”) had been established, the Company recognized revenue using the residual method at the time all other revenue recognition criteria were met.

While the majority of its instruments are placed at customer sites, in certain instances the Company sold instruments to its clinical diagnostics customers and recorded sales of these instruments upon shipment or delivery, depending on the terms of the arrangement.

Within its Diagnostics business, and to a lesser extent, its GYN Surgical business, the Company provided its instrumentation (for example, the ThinPrep Processor, ThinPrep Imaging System, and the Panther and Tigris systems) and certain other hardware to customers without requiring them to purchase the equipment or enter into a lease. The Company installed the instrumentation or equipment at the customer’s site and recovered the cost of providing the instrumentation or equipment in the amount it charged for its diagnostic tests, assays and other disposables. Customers entered into a customer usage agreement and typically committed to purchasing minimum quantities of disposable products at a stated price over a defined contract term, which was typically between three and five years. Revenue was recognized over the term of the customer usage agreement as tests, assays and other disposable products are shipped or delivered, depending on the customer's arrangement.

Leases

12 Months Ended

Sep. 26, 2020

Leases [Abstract]

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new lease standard on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented in accordance with the lease guidance under ASC Topic 840, Leases (ASC 840).

Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component.

Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not

have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract.

Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million, respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million, respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard.

Lessee Activity - Leases where Hologic is the Lessee

The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees.

The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of September 26, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of September 26, 2020.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of September 26, 2020 was 2.62%.

The following table presents supplemental balance sheet information related to the Company's operating and finance leases:


		September 26, 2020
	Balance Sheet Location	Operating Leases		Finance Lease
Assets
Lease right-of-use assets	Other assets	$	80.7	$	—

Liabilities
Operating lease liabilities (current)	Accrued expenses	$	23.5	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	1.9
Operating lease liabilities (non-current)	Other long-term liabilities	$	65.6	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	17.4

The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively.

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:


	As of September 26, 2020
	Operating Leases		Finance Lease
Weighted average remaining lease term	5.58		7.64
Weighted average discount rate	2.0	%	5.1	%

The following table provides information related to the Company’s operating and finance leases:


		Year Ended September 26, 2020
Operating lease cost (a)		$	27.5
Finance lease cost - amortization of right-of-use assets		$	0.3
Finance lease cost - interest cost		$	1.0
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	1.0
	Operating cash flows from operating leases	$	23.9
	Financing cash flows from finance leases	$	1.7
	Total cash paid for amounts included in the measurement of lease liabilities	$	26.6

ROU assets arising from entering into new operating lease obligations		$	13.3

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 26, 2020.

Rent expense under FASB ASC Topic 840 was $23.1 million for fiscal 2019 and 2018.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of September 26, 2020:


Fiscal Year	Operating Leases		Finance Lease
2021	25.0		2.8
2022	20.3		3.0
2023	13.8		3.0
2024	11.1		3.0
2025	8.5		3.1
Thereafter	16.0		8.4
Total future minimum lease payments	94.7		23.3
Less: imputed interest	(5.6)		(4.0)
Present value of lease liabilities	$	89.1	$	19.3

For comparative purposes, the Company's future minimum lease payments as of September 28, 2019 were as follows:


Fiscal Year	Operating Leases	Finance Lease
2020	20.5	5.8
2021	17.3	5.8
2022	13.3	6.1
2023	6.6	6.2
2024	5.9	5.5
Thereafter	14.6	19.5
Total future minimum lease payments	78.2	48.9

Lessor Activity - Leases where Hologic is the Lessor

Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for the twelve months ended September 26, 2020.

In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which was $19.3 million as of September 26, 2020.

The Company subleases a portion of a building it owns and some of its rented facilities and has received aggregate rental income of $2.0 million, $2.7 million and $2.6 million in fiscal 2020, 2019 and 2018, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these sublease agreements at September 26, 2020 are as follows:


Fiscal 2021	$	3.0
Fiscal 2022	3.0
Fiscal 2023	3.0
Fiscal 2024	2.9
Fiscal 2025	1.9
Thereafter	2.6
Total	$	16.4

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new lease standard on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented in accordance with the lease guidance under ASC Topic 840, Leases (ASC 840).

Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component.

Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not

have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract.

Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million, respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million, respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard.

Lessee Activity - Leases where Hologic is the Lessee

The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees.

The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of September 26, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of September 26, 2020.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of September 26, 2020 was 2.62%.

The following table presents supplemental balance sheet information related to the Company's operating and finance leases:


		September 26, 2020
	Balance Sheet Location	Operating Leases		Finance Lease
Assets
Lease right-of-use assets	Other assets	$	80.7	$	—

Liabilities
Operating lease liabilities (current)	Accrued expenses	$	23.5	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	1.9
Operating lease liabilities (non-current)	Other long-term liabilities	$	65.6	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	17.4

The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively.

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:


	As of September 26, 2020
	Operating Leases		Finance Lease
Weighted average remaining lease term	5.58		7.64
Weighted average discount rate	2.0	%	5.1	%

The following table provides information related to the Company’s operating and finance leases:


		Year Ended September 26, 2020
Operating lease cost (a)		$	27.5
Finance lease cost - amortization of right-of-use assets		$	0.3
Finance lease cost - interest cost		$	1.0
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	1.0
	Operating cash flows from operating leases	$	23.9
	Financing cash flows from finance leases	$	1.7
	Total cash paid for amounts included in the measurement of lease liabilities	$	26.6

ROU assets arising from entering into new operating lease obligations		$	13.3

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 26, 2020.

Rent expense under FASB ASC Topic 840 was $23.1 million for fiscal 2019 and 2018.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of September 26, 2020:


Fiscal Year	Operating Leases		Finance Lease
2021	25.0		2.8
2022	20.3		3.0
2023	13.8		3.0
2024	11.1		3.0
2025	8.5		3.1
Thereafter	16.0		8.4
Total future minimum lease payments	94.7		23.3
Less: imputed interest	(5.6)		(4.0)
Present value of lease liabilities	$	89.1	$	19.3

For comparative purposes, the Company's future minimum lease payments as of September 28, 2019 were as follows:


Fiscal Year	Operating Leases	Finance Lease
2020	20.5	5.8
2021	17.3	5.8
2022	13.3	6.1
2023	6.6	6.2
2024	5.9	5.5
Thereafter	14.6	19.5
Total future minimum lease payments	78.2	48.9

Lessor Activity - Leases where Hologic is the Lessor

Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for the twelve months ended September 26, 2020.

In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which was $19.3 million as of September 26, 2020.

The Company subleases a portion of a building it owns and some of its rented facilities and has received aggregate rental income of $2.0 million, $2.7 million and $2.6 million in fiscal 2020, 2019 and 2018, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these sublease agreements at September 26, 2020 are as follows:


Fiscal 2021	$	3.0
Fiscal 2022	3.0
Fiscal 2023	3.0
Fiscal 2024	2.9
Fiscal 2025	1.9
Thereafter	2.6
Total	$	16.4

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new lease standard on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented in accordance with the lease guidance under ASC Topic 840, Leases (ASC 840).

Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component.

Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not

have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract.

Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million, respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million, respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard.

Lessee Activity - Leases where Hologic is the Lessee

The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees.

The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of September 26, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of September 26, 2020.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of September 26, 2020 was 2.62%.

The following table presents supplemental balance sheet information related to the Company's operating and finance leases:


		September 26, 2020
	Balance Sheet Location	Operating Leases		Finance Lease
Assets
Lease right-of-use assets	Other assets	$	80.7	$	—

Liabilities
Operating lease liabilities (current)	Accrued expenses	$	23.5	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	1.9
Operating lease liabilities (non-current)	Other long-term liabilities	$	65.6	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	17.4

The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively.

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:


	As of September 26, 2020
	Operating Leases		Finance Lease
Weighted average remaining lease term	5.58		7.64
Weighted average discount rate	2.0	%	5.1	%

The following table provides information related to the Company’s operating and finance leases:


		Year Ended September 26, 2020
Operating lease cost (a)		$	27.5
Finance lease cost - amortization of right-of-use assets		$	0.3
Finance lease cost - interest cost		$	1.0
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	1.0
	Operating cash flows from operating leases	$	23.9
	Financing cash flows from finance leases	$	1.7
	Total cash paid for amounts included in the measurement of lease liabilities	$	26.6

ROU assets arising from entering into new operating lease obligations		$	13.3

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 26, 2020.

Rent expense under FASB ASC Topic 840 was $23.1 million for fiscal 2019 and 2018.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of September 26, 2020:


Fiscal Year	Operating Leases		Finance Lease
2021	25.0		2.8
2022	20.3		3.0
2023	13.8		3.0
2024	11.1		3.0
2025	8.5		3.1
Thereafter	16.0		8.4
Total future minimum lease payments	94.7		23.3
Less: imputed interest	(5.6)		(4.0)
Present value of lease liabilities	$	89.1	$	19.3

For comparative purposes, the Company's future minimum lease payments as of September 28, 2019 were as follows:


Fiscal Year	Operating Leases	Finance Lease
2020	20.5	5.8
2021	17.3	5.8
2022	13.3	6.1
2023	6.6	6.2
2024	5.9	5.5
Thereafter	14.6	19.5
Total future minimum lease payments	78.2	48.9

Lessor Activity - Leases where Hologic is the Lessor

Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for the twelve months ended September 26, 2020.

In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which was $19.3 million as of September 26, 2020.

The Company subleases a portion of a building it owns and some of its rented facilities and has received aggregate rental income of $2.0 million, $2.7 million and $2.6 million in fiscal 2020, 2019 and 2018, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these sublease agreements at September 26, 2020 are as follows:


Fiscal 2021	$	3.0
Fiscal 2022	3.0
Fiscal 2023	3.0
Fiscal 2024	2.9
Fiscal 2025	1.9
Thereafter	2.6
Total	$	16.4

Leases

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842), referred to as ASC 842. The purpose of ASU 2016-02 is to increase the transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet, including those previously classified as operating leases under GAAP, and disclosing key information about leasing arrangements. ASC 842, as amended, is effective for public entities for annual periods beginning after December 15, 2018, including interim periods within those annual periods and was effective for the Company in fiscal 2020. The Company adopted the standard using the transition method provided by ASC Update No. 2018-11, Leases (Topic 842): Targeted Improvements. Under this method, the Company applied the new lease standard on September 29, 2019, rather than at the earliest comparative period presented in the financial statements. Prior periods are presented in accordance with the lease guidance under ASC Topic 840, Leases (ASC 840).

Upon transition, the Company applied the package of practical expedients permitted under ASC 842 transition guidance to its entire lease portfolio at September 29, 2019. As a result, the Company was not required to reassess (i) whether any expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct costs for any existing leases. Furthermore, as a lessee the Company elected to combine lease and non-lease components together for the majority of its leases. As a result, for these applicable classes of underlying assets, the Company accounted for each separate lease component and the non-lease components associated with that lease component as a single lease component.

Under ASC 842 as a lessor, in instances where the Company places instruments (or equipment) at customer sites as part of its reagent rental contracts, certain of the Company's reagent rental contracts could be classified as sales-type leases. Under sales-type leases, there is accelerated expense recognition for the cost of the placed equipment and potentially up-front revenue in the event there are fixed rental payments, a portion of which would be allocated to the equipment. The Company does not

have a significant amount of sales-type leases. Under ASC 840, all instruments placed under the Company's reagent rental programs were classified as operating leases and instrument revenue and cost were recognized over the term of the contract.

Upon adoption of the new lease standard, the Company recognized operating lease right-of-use assets and finance lease right-of-use assets of $91.7 million and $10.2 million, respectively, and corresponding operating lease liabilities and finance lease liabilities of $96.6 million and $21.0 million, respectively. This includes recording the Company’s existing capital lease as a finance lease at transition. In addition, the Company derecognized $32.6 million of property, plant and equipment and $35.2 million of finance lease obligations recorded in accrued expenses and other long-term liabilities associated with two previously existing build-to-suit lease arrangements. Right-of-use assets and corresponding liabilities for these build-to-suit lease arrangements are included within the total amount recognized upon adoption of the new lease standard.

Lessee Activity - Leases where Hologic is the Lessee

The majority of the Company's facilities are occupied under operating lease arrangements with various expiration dates through 2035, some of which include options to extend the term of the lease, and some of which include options to terminate the lease within one year. The Company has operating leases for office space, land, warehouse and manufacturing space, vehicles and certain equipment. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of one year to approximately 15 years, some of which may include options to extend the leases for up to 20 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees.

The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. The right-of-use assets and related liabilities for operating leases are included in other assets, accrued expenses, and other long-term liabilities in the consolidated balance sheet as of September 26, 2020. The Company's lease classified as a capital lease in fiscal 2019 is now classified as a finance lease on the balance sheet as of September 26, 2020.

Right-of-use assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease contract. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of fixed lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the incremental borrowing rate, which is the estimated rate that would be incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. The weighted average discount rate utilized on the Company's operating and finance lease liabilities as of September 26, 2020 was 2.62%.

The following table presents supplemental balance sheet information related to the Company's operating and finance leases:


		September 26, 2020
	Balance Sheet Location	Operating Leases		Finance Lease
Assets
Lease right-of-use assets	Other assets	$	80.7	$	—

Liabilities
Operating lease liabilities (current)	Accrued expenses	$	23.5	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	1.9
Operating lease liabilities (non-current)	Other long-term liabilities	$	65.6	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	17.4

The finance lease was previously recorded as a capital lease in the consolidated balance at September 28, 2019, and the short-term and long-term liabilities were $1.8 million and $19.2 million, respectively.

The following table presents the weighted average remaining lease term and discount rate information related to the Company's operating and finance leases:


	As of September 26, 2020
	Operating Leases		Finance Lease
Weighted average remaining lease term	5.58		7.64
Weighted average discount rate	2.0	%	5.1	%

The following table provides information related to the Company’s operating and finance leases:


		Year Ended September 26, 2020
Operating lease cost (a)		$	27.5
Finance lease cost - amortization of right-of-use assets		$	0.3
Finance lease cost - interest cost		$	1.0
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	1.0
	Operating cash flows from operating leases	$	23.9
	Financing cash flows from finance leases	$	1.7
	Total cash paid for amounts included in the measurement of lease liabilities	$	26.6

ROU assets arising from entering into new operating lease obligations		$	13.3

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 26, 2020.

Rent expense under FASB ASC Topic 840 was $23.1 million for fiscal 2019 and 2018.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance lease as of September 26, 2020:


Fiscal Year	Operating Leases		Finance Lease
2021	25.0		2.8
2022	20.3		3.0
2023	13.8		3.0
2024	11.1		3.0
2025	8.5		3.1
Thereafter	16.0		8.4
Total future minimum lease payments	94.7		23.3
Less: imputed interest	(5.6)		(4.0)
Present value of lease liabilities	$	89.1	$	19.3

For comparative purposes, the Company's future minimum lease payments as of September 28, 2019 were as follows:


Fiscal Year	Operating Leases	Finance Lease
2020	20.5	5.8
2021	17.3	5.8
2022	13.3	6.1
2023	6.6	6.2
2024	5.9	5.5
Thereafter	14.6	19.5
Total future minimum lease payments	78.2	48.9

Lessor Activity - Leases where Hologic is the Lessor

Certain assets, primarily diagnostics instruments, are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as performance obligations for reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where instruments are provided under operating lease arrangements, some portion or the entire lease revenue may be variable and subject to subsequent non-lease component (e.g., reagent) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented approximately 4% of the Company’s consolidated revenue for the twelve months ended September 26, 2020.

In connection with the disposition of the Medical Aesthetics business, the Company entered into an agreement to sublease to Cynosure its U.S. headquarters and manufacturing location. As such, the Company derecognized $10.2 million for the right-of-use asset for the finance lease, included in property, plant and equipment, and recorded a lease receivable, which was $19.3 million as of September 26, 2020.

The Company subleases a portion of a building it owns and some of its rented facilities and has received aggregate rental income of $2.0 million, $2.7 million and $2.6 million in fiscal 2020, 2019 and 2018, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these sublease agreements at September 26, 2020 are as follows:


Fiscal 2021	$	3.0
Fiscal 2022	3.0
Fiscal 2023	3.0
Fiscal 2024	2.9
Fiscal 2025	1.9
Thereafter	2.6
Total	$	16.4

Business Combinations

12 Months Ended

Sep. 26, 2020

Business Combinations [Abstract]

Business Combinations

Acessa Health

On August 23, 2020, the Company completed the acquisition of Acessa Health, Inc. ("Acessa") for a purchase price of

$161.3 million, which included a hold-back of $3.0 million payable five months from the date of acquisition, and contingent consideration, which the Company estimated the fair value to be $81.8 million as of the measurement date. Acessa, located in Austin, Texas, manufactures and markets its ProVu system, a laparoscopic radio frequency ablation system for use in treatment of uterine fibroids. Acessa's results of operations are reported in the Company's GYN Surgical reportable segment from the date of acquisition.

The contingent payments are based on a multiple of annual incremental revenue growth over a three-year period ending annually in December. There is no maximum earnout. Pursuant to ASC 805, the Company recorded its estimate of the fair value of the contingent consideration liability utilizing the Monte Carlo simulation based on future revenue projections of Acessa, comparable companies revenue growth rates, implied volatility and applying a risk adjusted discount rate. Each quarter the Company will be required to remeasure the fair value of the liability as assumptions change and such adjustments will be recorded in operating expenses. This fair value measurement was based on significant inputs not observable in the market and thus represented a Level 3 measurement as defined in ASC 820. This fair value measurement is directly impacted by the Company's estimate of future incremental revenue growth of the business. Accordingly, if actual revenue growth is higher or lower than the estimates within the fair value measurement, the Company would record additional charges or benefits, respectively.

The total purchase price was allocated to Acessa's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of August 23, 2020, as set forth below.


Cash		$	1.2
Inventory		4.0
Other assets		4.4
Identifiable intangible assets:
	Developed Technology	127.0

	Trade names	1.2
Accounts payable and accrued expenses		(4.7)
Deferred income taxes, net		(20.2)
Goodwill		48.4
Purchase Price		$	161.3

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 Acessa's business. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities, primarily taxes.

As part of the preliminary purchase price allocation, the Company has determined the identifiable intangible assets are developed technology 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 a 18.0% rate. The cash flows are based on estimates used to price the transaction, and the discount rate applied was 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 trade names is 10 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 of Acessa's products being complementary to the GYN Surgical portfolio of products and utilizing the GYN Surgical's sales force to drive adoption and revenue growth. None of the goodwill is expected to be deductible for income tax purposes.

Health Beacons

On February 3, 2020, the Company completed the acquisition of Health Beacons, Inc. ("Health Beacons"), for a purchase price of $19.7 million, which included hold-backs of $2.3 million that are payable up to eighteen months from the date of acquisition. Health Beacons manufactures the LOCalizer product. Based on the Company's preliminary valuation, it has allocated $10.7 million of the purchase price to the preliminary value of developed technology and $6.2 million to goodwill. The remaining $2.8 million of the purchase price has been allocated to acquired tangible assets and liabilities. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities. Health Beacons' results of operations are reported in the Company's Breast Health reportable segment from the date of acquisition.

Alpha Imaging

On December 30, 2019, the Company completed the acquisition of assets from Alpha Imaging, LLC ("Alpha Imaging"), for a purchase price of $18.0 million, which included a hold-back of $1.0 million and contingent consideration which the Company has estimated at $0.9 million. The contingent consideration is payable upon shipment of backlog orders entered into by Alpha Imaging prior to the acquisition. Alpha Imaging was a long-standing distributor of the Company's Breast and Skeletal products in the U.S. Based on the Company's preliminary valuation, the majority of the purchase price was allocated to a customer relationships intangible asset with a useful life of 5 years. Goodwill was immaterial. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities.

SuperSonic Imagine

On August 1, 2019, the Company purchased 46% of the outstanding shares of SuperSonic Imagine ("SSI") for $18.2 million. SSI is a public company located in Aix-en-Provence, France that manufactures and markets ultrasound medical imaging equipment. In September 2019, the Company launched a cash tender offer to acquire the remaining outstanding shares for a price of €1.50 per share in cash. The Company determined that SSI was a Variable Interest Entity (“VIE”) but it was not the primary beneficiary as it was not a party to the initial design of the entity nor did it have control over SSI's operations until

November 21, 2019 when the Company's ownership of SSI's voting stock exceeded 50%. Accordingly, the Company initially accounted for this investment under the equity method of accounting and included its proportionate share of SSI's net loss of $3.3 million for the two months ended September 28, 2019 within Other income, net.

On November 21, 2019, the Company acquired an additional 7.6 million common shares of SSI for $12.6 million. As a result, the Company's ownership interest increased to approximately 78% of the outstanding common shares of SSI at November 21, 2019, and it now controlled SSI's voting interest and operations. The Company performed purchase accounting as of November 21, 2019 and beginning on that date the financial results of SSI are included within the Company's consolidated financial statements, specifically the Breast Health reportable segment. The Company remeasured the initial investment of 46% of the outstanding shares of SSI to its fair value at the acquisition date, resulting in a gain of $3.2 million recorded in the first quarter of fiscal 2020. The total accounting purchase price was $69.3 million, which consisted of $17.9 million for the equity method investment in SSI, $12.6 million for shares acquired on November 21, 2019, $30.2 million for loans the Company provided to SSI prior to the acquisition to pay-off pre-existing loans and fund operations that are considered forgiven, and $8.6 million representing the fair value of the noncontrolling interest as of November 21, 2019. The Company purchased an additional 1.1 million outstanding shares in fiscal 2020 for $1.8 million, and as of September 26, 2020, the Company owned approximately 81% of the outstanding shares of SSI.

The total purchase price was allocated to SSI's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values of those assets as of November 21, 2019, as set forth below.


Cash	$	2.6
Accounts receivable	7.1
Inventory	10.0
Property, plant and equipment	6.5
Other assets	4.3
Accounts payable and accrued expenses	(24.5)
Deferred revenue	(1.8)
Short and long-term debt	(8.8)
Other liabilities	(3.8)
Identifiable intangible assets:	—
Developed technology	38.3
Customer relationships	4.0
Trade names	3.0
Deferred income taxes, net	(1.9)
Goodwill	34.3
Purchase Price	$	69.3

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 SSI's business. The Company has not yet obtained all of the information related to the fair value of the acquired assets and liabilities, primarily income taxes and recognition of uncertain tax positions, to finalize the purchase price allocation.

As part of the preliminary purchase price allocation, the Company determined the identifiable intangible assets are developed technology, customer relationships, and trade names. The preliminary fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using a 12.0% rate. The cash flows were 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 for the developed technology is 9 years, customer relationships is 9 years and trade names is 8.6 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 of SSI's products being complementary to Breast Health's 3D mammography systems and using the Company's existing U.S. sales force as SSI's presence in the U.S. is limited. 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 a purchase price of $120.1 million, which included hold-backs of $14.0 million payable up to one year from the date of acquisition. In the second quarter of fiscal 2019, $1.5 million of the hold-back was paid, and the remaining $12.5 million was paid in the first quarter of fiscal 2020. Focal, headquartered in California, manufactures and markets its BioZorb marker, which is an implantable three-dimensional marker that helps clinicians overcome certain challenges in breast conserving surgery. Focal'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 Focal's 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:


Cash	$	2.2
Accounts receivable	2.0
Inventory	7.9
Other assets	0.5
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	31.1
Purchase Price	$	120.1

In performing the 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. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, in-process research and development ("IPR&D"), and trade names. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using rates ranging from 15.5% to 16.5%. The cash flows were 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 trade names was 11 years and 13 years, respectively. The 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 amount of goodwill were based on synergistic benefits that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breast Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes.

Faxitron

On July 31, 2018, the Company completed the acquisition of Faxitron Bioptics, LLC ("Faxitron") for a purchase price of $89.5 million, which included hold-backs of $11.7 million payable up to one year from the date of acquisition, and contingent consideration, which the Company estimated at $2.9 million as of the measurement date. Faxitron, headquartered in Tucson, Arizona, develops, manufactures, and markets digital radiography systems. The contingent consideration is payable upon meeting certain revenue growth metrics. In the fourth quarter of fiscal 2019, the Company increased the contingent consideration liability by $1.7 million based on updated projections, and the Company paid $5.0 million in the second quarter of fiscal 2020. During fiscal 2019, the Company paid $6.5 million of the hold-backs and withheld the remainder of $5.2 million under the indemnification provisions of the purchase agreement, which the former shareholders had disputed. In the first quarter of fiscal 2020, the Company resolved this dispute and paid $4.1 million to the former shareholders. 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 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:


Cash	$	2.4
Accounts receivable	4.0
Inventory	5.8
Other assets	3.1
Accounts payable and accrued expenses	(8.8)
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	(10.6)
Goodwill	45.6
Purchase Price	$	89.5

In performing the 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. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, in-process research and development ("IPR&D"), customer relationships, and trade names. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using rates ranging from 17% to 19%. The cash flows were 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 for both developed technology and customer relationships is 9 years and for trade names it is 7 years. The 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 were based on synergistic benefits that are expected to be realized from this acquisition. Benefits include the expectation of broadening the Company's Breast Health portfolio of products and technology. None of the goodwill is expected to be deductible for income tax purposes.

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, and contingent consideration, which the Company estimated at $4.9 million as of the measurement date. The contingent consideration was payable upon Emsor achieving predefined amounts of cumulative revenue over a two-year period from the date of acquisition. The contingent consideration was paid in the second quarter of fiscal 2020. 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.

Borrowings and Credit Arrangements

12 Months Ended

Sep. 26, 2020

Debt Disclosure [Abstract]

Borrowings and Credit Agreements

The Company’s borrowings consisted of the following:


	September 26, 2020		September 28, 2019
Current debt obligations, net of debt discount and deferred issuance costs:
Term Loan	$	74.9	$	37.4
Revolver	250.0		—
Securitization Program	—		234.0

Total current debt obligations	324.9		271.4
Long-term debt obligations, net of debt discount and issuance costs:
Term Loan	1,379.9		1,452.4


2025 Senior Notes	939.4		937.3
2028 Senior Notes	394.6		393.9

Total long-term debt obligations	2,713.9		2,783.6
Total debt obligations	$	3,038.8	$	3,055.0

The debt maturity schedule for the Company’s obligations as of September 26, 2020 was as follows:


	2021		2022		2023		2024		2025		2026 and Thereafter		Total
Term Loan	$	75.0	$	75.0	$	112.5	$	1,200.0	$	—	$	—	$	1,462.5
Revolver	250.0		—		—		—		—		—		250.0

2025 Senior Notes	—		—		—		—		950.0		—		950.0
2028 Senior Notes	—		—		—		—		—		400.0		400.0
	$	325.0	$	75.0	$	112.5	$	1,200.0	$	950.0	$	400.0	$	3,062.5

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. 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 ("2018 Term Loan") with a maturity date of December 17, 2023; and

•A secured revolving credit facility ("2018 Revolver"; together with the 2018 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 Revolver. This initial borrowing, together with the net proceeds of the 2018 Term Loan, were used to repay the amounts outstanding under the term loan and revolving credit facility under the 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 Term Loan: at the Base Rate, Eurocurrency Rate or LIBOR Daily Floating Rate,

•2018 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.

As of September 26, 2020, the Company had $250.0 million outstanding under the 2018 Revolver and the interest rate under the Term loan was 1.40%.

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 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 1.25%. The borrowings of the 2018 Revolver initially bear interest at a rate equal to the LIBOR Daily Floating Rate plus an Applicable Rate equal to 1.25%. The Company is also required to pay a quarterly commitment fee calculated on the undrawn committed amount available under the 2018 Revolver.

The Company is required to make scheduled principal payments under the 2018 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 Term Loan after the scheduled principal payments, which is $1.2 billion, and any amounts outstanding under the 2018 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 Term Loan, second, to any outstanding amount under any Swing Line Loans, third, to the 2018 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 and its U.S. subsidiaries, 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 September 26, 2020.

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 September 26, 2020.

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 and certain of its domestic subsidiaries entered into an Amended and Restated Credit and Guaranty Agreement (the "2017 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 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.

The credit facilities under the 2017 Credit Agreement consisted of:

•A $1.5 billion secured term loan to the Company with a maturity date of October 3, 2022; and

•A secured revolving credit facility under which the Company could borrow up to $1.5 billion, subject to certain sublimits, with a maturity date of October 3, 2022.

During the third quarter of fiscal 2018, the Company borrowed $250.0 million under the revolver to cash settle the conversions of its 2.00% Convertible Senior Notes due 2042.

Interest expense, non-cash interest expense, the weighted average interest rate, and the interest rate at the end of period under the 2018 Credit Agreement, the 2017 Credit Agreement and the Prior Credit Agreement was as follows:


	Years Ended
	September 26, 2020			September 28, 2019			September 29, 2018
Interest expense (1)	$	46.6		$	67.0		$	60.8
Non-cash interest expense	$	2.5		$	2.6		$	2.6
Weighted average interest rate	2.25		%	3.79		%	3.23		%
Interest rate at end of period	1.40		%	3.43		%	3.74		%

(1) Interest expense includes non-cash interest expense related to the amortization of the deferred issuance costs and accretion of the debt discount.

Pursuant to ASC 470, the accounting for entering into the 2017 Credit Agreement and using the proceeds to pay off the Prior 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 Prior 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 $1.0 million in the first quarter of fiscal 2018. 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%. Pursuant to ASC 470, subtopic 50-40, third-party costs of $1.7 million related to this transaction were recorded as interest expense and $4.9 million was recorded as a reduction to debt representing deferred issuance costs and debt discount for fees paid directly to the lenders.

Senior Notes

2025 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 and allocated an additional $600 million in aggregate principal amount to 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. As a result, the total aggregate principal balance of 2025 Senior Notes is $950 million. The 2025 Senior Notes were general senior unsecured obligations of the Company and were guaranteed on a senior unsecured basis by certain domestic subsidiaries. The 2025 Senior Notes were to mature on October 15, 2025 and bore interest at the rate of 4.375% per year, payable semi-annually on April 15 and October 15 of each year, commencing on April 15, 2018. On September 28, 2020 (in the first quarter of fiscal 2021), the Company completed a private placement of $950.0 million aggregate principal amount of its 3.250% Senior Notes due 2029 (the "2029 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2029 Senior Notes. The proceeds from this offering and cash on hand were used to redeem the 2025 Senior Notes in full on October 15, 2020, at a redemption price of approximately $970.8 million (equal to 102.2% of the aggregate principal amount of the 2025 Senior Notes). In the first quarter of fiscal 2021, the Company will complete the accounting for this transaction under ASC 470 to determine modification versus extinguishment accounting on a creditor-by-creditor basis and record a debt extinguishment loss as applicable.

2028 Senior Notes

On January 19, 2018, the Company completed a private placement of $1.0 billion aggregate principal amount of senior notes and allocated $400 million in aggregate principal amount to 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. The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries. The 2028 Senior Notes mature on February 1, 2028 and bear interest at the rate of 4.625% per year, payable semi-annually on February 1 and August 1 of each year, commencing on August 1, 2018.

The Company may redeem the 2028 Senior Notes at any time prior to February 1, 2023 at a price equal to 100% of the aggregate principal amount so redeemed, plus accrued and unpaid interest, if any, to the redemption date and a make-whole premium set forth in the indenture. The Company may also redeem up to 35% of the aggregate principal amount of the 2028 Senior Notes with the net cash proceeds of certain equity offerings at any time and from time to time before February 1, 2021, at a redemption price equal to 104.625% of the aggregate principal amount so redeemed, plus accrued and unpaid interest, if any, to the redemption date. The Company also has the option to redeem the 2028 Senior Notes on or after: February 1, 2023 through February 1, 2024 at 102.312% of par; February 1, 2024 through February 1, 2025 at 101.541% of par; February 1, 2025 through February 1, 2026 at 100.770% of par; and February 1, 2026 and thereafter at 100% of par. In addition, if the Company undergoes a change of control coupled with a decline in ratings, as provided in the indenture, the Company will be required to make an offer to purchase each holder’s 2028 Senior Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date.

The Company evaluated the 2028 Senior Notes for derivatives pursuant to ASC 815 and did not identify any embedded derivatives that require bifurcation. All features were deemed to be clearly and closely related to the host instrument.

Interest expense for the 2028 Senior Notes, 2025 Senior Notes and 2022 Senior Notes is as follows:


			Years Ended
			September 26, 2020				September 28, 2019				September 29, 2018
	Interest Rate		Interest Expense (1)		Non-Cash Interest Expense		Interest Expense (1)		Non-Cash Interest Expense		Interest Expense (1)		Non-Cash Interest Expense
2028 Senior Notes	4.625	%	$	19.2	$	0.7	$	19.2	$	0.7	$	13.3	$	0.5
2025 Senior Notes	4.375	%	43.5		2.1		43.5		2.1		34.7		1.6
2022 Senior Notes	5.250	%	—		—		—		—		21.2		1.5
Total			$	62.7	$	2.8	$	62.7	$	2.8	$	69.2	$	3.6

(1) Interest expense includes non-cash interest expense related to the amortization of the deferred issuance costs and accretion of the debt discount.

2022 Senior Notes

The Company had 5.250% Senior Notes due 2022 (the “2022 Senior Notes”) outstanding and 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 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%. 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 are being amortized over the life of the debt using the effective interest method.

Convertible Notes

As of September 28, 2019 and September 29, 2018, the Company had no Convertible Notes outstanding. The following describes the Convertible Note transactions during fiscal 2018.

On December 10, 2007, the Company issued and sold $1.725 billion, at par, of 2.00% Convertible Senior Notes due December 15, 2037 (“2007 Notes”). On November 18, 2010, the Company entered into separate, privately-negotiated exchange agreements under which it retired $450.0 million in aggregate principal of its 2007 Notes for $450.0 million in aggregate principal of new 2.00% Convertible Exchange Senior Notes due December 15, 2037 (“2010 Notes”). On February 29, 2012, the Company entered into separate, privately-negotiated exchange agreements under which it retired $500.0 million in aggregate principal of the 2007 Notes for $500.0 million in aggregate principal of new 2.00% Convertible Senior Notes due March 1, 2042 (“2012 Notes”). On February 14, 2013, the Company entered into separate, privately-negotiated exchange agreements under which it retired $370.0 million in aggregate principal of the 2007 Notes for $370.0 million in aggregate principal of new 2.00% Convertible Senior Notes due December 15, 2043 (“2013 Notes”). The remaining 2007 Notes were redeemed in fiscal 2014. In fiscal 2017, all remaining 2010 Notes were either converted or surrendered for conversion. On various dates in fiscal 2017, the Company entered into privately negotiated repurchase transactions and extinguished $117.9 million and $168.0 million principal amount of the 2012 Notes and 2013 Notes, respectively.

On January 29, 2018, the Company announced that pursuant to the terms of the indenture for the 2012 Notes, holders of the 2012 Notes had the option of requiring the Company to repurchase their 2012 Notes on March 1, 2018 at a repurchase price payable in cash equal to 100% of the accreted principal amount of the 2012 Notes, plus accrued and unpaid interest. The Company also announced on January 29, 2018 that, it had elected to redeem, on March 6, 2018, all of the then outstanding 2012 Notes at a redemption price payable in cash equal to 100% of the accreted principal amount of the 2012 Notes, plus accrued and unpaid interest. Holders also had the right to convert their 2012 Notes. During the second quarter of fiscal 2018, 2012 Notes in aggregate original principal amount of $200.5 million were surrendered for conversion and the Company cash settled these conversions for $243.3 million during April 2018. As a result, on a gross basis, $42.8 million of the consideration paid was allocated to the reacquisition of the equity component of the original instrument, which was recorded net of deferred taxes of $12.0 million within additional paid-in-capital. The remaining $5.5 million in original principal amount of the 2012 Notes was redeemed by the Company on March 6, 2018.

On December 15, 2017, pursuant to the provisions of the indenture governing the Company's 2013 Notes, the Company redeemed or repurchased an aggregate of $201.7 million in original principal amount of the 2013 Notes then outstanding for an aggregate repurchase price of $244.1 million, representing the then accreted principal amount of the 2013 Notes. The remaining $0.3 million in original principal amount of the 2013 Notes were converted, and the Company settled these conversions in cash in the second quarter of fiscal 2018.

On various dates during the first quarter of fiscal 2018, the Company entered into privately negotiated repurchase transactions and extinguished $39.3 million principal amount of its 2012 Notes for total payments of $52.8 million. This amount includes the conversion premium resulting from the Company's stock price on the date of the transactions being in excess of the conversion prices of $31.175. As a result, on a gross basis, $13.4 million of the consideration paid was allocated

to the reacquisition of the equity component of the original instrument, which was recorded net of deferred taxes of $3.8 million within additional paid-in-capital.

Interest expense under the Convertible Notes was as follows:


	Year Ended
	September 29, 2018
Amortization of debt discount	$	3.5
Amortization of deferred financing costs	0.2
Principal accretion	1.6
Non-cash interest expense	5.3
2.00% accrued interest (cash)	1.8
	$	7.1

Accounts Receivable Securitization Program

On April 25, 2016, the Company entered into a one-year $200.0 million accounts receivable securitization program (the "Securitization Program") with several of its wholly owned subsidiaries and certain financial institutions, which provides for annual renewals.

Under the terms of the Securitization Program, the Company and certain of its wholly-owned subsidiaries sell their respective customer receivables to a bankruptcy remote special purpose entity, which is also a wholly-owned subsidiary of the Company. In addition, the Company also contributed a portion of its customer receivables to the special purpose entity in connection with its establishment. The Company retains servicing responsibility. The special purpose entity, as borrower, and the Company, as servicer, entered into a Credit and Security Agreement with several lenders pursuant to which the special purpose entity may borrow up to $200.0 million from the lenders, with the loans secured by the receivables. The amount that the special purpose entity may borrow at a given point in time is determined based on the amount of qualifying receivables that are present in the special purpose entity at such point in time. The entire amount available was borrowed in the third quarter of fiscal 2016. Borrowings outstanding under the Securitization Program bear interest at LIBOR plus the applicable margin of 0.7% and are included as a component of current liabilities in the Company's consolidated balance sheet, while the accounts receivable securing these obligations remain as a component of net receivables in the Company's consolidated balance sheet. The Company and the special purpose entity are operated and maintained as separate legal entities. The assets of the special purpose entity secure the amounts borrowed and cannot be used to pay other debts or liabilities of the Company.

In subsequent years, the Company amended the agreement to extend it for one-year periods and increase the borrowing capacity. The maximum borrowing amount increased to $250.0 million.

In response to the market uncertainties created by the COVID-19 pandemic, on March 26, 2020, the Company paid-off the total amount outstanding of $250.0 million previously borrowed. On April 13, 2020, the Company amended the Credit and Security agreement with the lenders, temporarily suspending the ability to borrow and the need to comply with covenants for up to a year. As of September 26, 2020, the Company did not have any borrowings under this program.

Interest expense under the Securitization Program was $3.1 million, $7.1 million and $5.4 million for fiscal 2020, 2019 and 2018, respectively.

The Credit and Security Agreement contains customary representations and warranties and events of default, including payment defaults, breach of representations and warranties, covenant defaults, and an event of default upon a change of control of the Company. In addition, it contains financial covenants consistent with that of the Credit Agreement. As of September 26, 2020, the Company was not required to be in compliance with the Credit and Security Agreement covenants.

2029 Senior Notes

On September 28, 2020, the Company completed a private placement of $950 million aggregate principal amount of its 3.250% Senior Notes due 2029 (the "2029 Senior Notes") at an offering price of 100% of the aggregate principal amount of the 2029 Senior Notes. The 2029 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries. The 2029 Senior Notes mature on February 15, 2029 and bear interest at the rate of 3.250% per year, payable semi-annually on February 15 and August 15 of each year, commencing on February 15, 2021.

The Company may redeem the 2029 Senior Notes at any time prior to September 28, 2023 at a price equal to 100% of the aggregate principal amount so redeemed, plus accrued and unpaid interest, if any, to the redemption date and a make-whole premium set forth in the indenture. The Company may also redeem up to 40% of the aggregate principal amount of the 2029 Senior Notes with the net cash proceeds of certain equity offerings at any time and from time to time before September 28, 2023, at a redemption price equal to 103.250% of the aggregate principal amount so redeemed, plus accrued and unpaid interest, if any, to the redemption date. The Company also has the option to redeem the 2029 Senior Notes on or after: September 28, 2023 through September 27, 2024 at 101.625% of par; September 28, 2024 through September 27, 2025 at 100.813% of par; and September 28, 2025 and thereafter at 100% of par. In addition, if the Company undergoes a change of control coupled with a decline in ratings, as provided in the indenture, the Company will be required to make an offer to purchase each holder’s 2029 Senior Notes at a price equal to 101% of their principal amount, plus accrued and unpaid interest, if any, to the repurchase date.

Stockholders' Equity and Stock-Based Compensation

12 Months Ended

Sep. 26, 2020

Share-based Payment Arrangement [Abstract]

Stockholders' Equity and Stock-Based Compensation

Stock Repurchase Program

On June 21, 2016, the Company's Board of Directors authorized the repurchase of up to $500.0 million of the Company's outstanding common stock over the next five years. During fiscal 2018, the Company repurchased 5.0 million shares of its common stock for a total consideration of $187.3 million under this authorization.

On June 13, 2018, the Board of Directors authorized another share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock. This share repurchase plan, which replaced the prior plan, was effective August 1, 2018 and expired March 27, 2020. Under this authorization, during the fourth quarter of 2018, the Company repurchased 2.3 million shares of its common stock for total consideration of $88.5 million. During fiscal 2019, the Company repurchased 4.8 million shares of its common stock for total consideration of $200.1 million. During the first and second quarters of fiscal 2020, the Company repurchased 3.9 million shares of its common stock for a total consideration of $210.9 million. As of March 28, 2020, the Company had completed this authorization.

On December 11, 2019, the Board of Directors authorized a new share repurchase plan to repurchase up to $500.0 million of the Company's outstanding common stock, effective at the beginning of the third quarter of fiscal 2020. On March 2, 2020 the Board of Directors approved accelerating the effective date of the new share repurchase plan from March 27, 2020 to March 2, 2020. Under this revised authorization during fiscal 2020, the Company repurchased 5.1 million shares of its common stock for a total consideration of $237.7 million. As of September 26, 2020, $262.4 million was available under this authorization. Subsequent to September 26, 2020, the Company repurchased 1.1 million shares of its common stock for $74.8 million.

On November 19, 2019, the Board of Directors authorized the Company to repurchase up to $205 million of its outstanding shares pursuant to an accelerated share repurchase ("ASR") agreement. On November 22, 2019, the Company executed the ASR agreement with Goldman Sachs & Co. ("Goldman Sachs") pursuant to which the Company repurchased $205 million of the Company's common stock. The initial delivery of approximately 80% of the shares under the ASR was 3.3 million shares for which the Company initially allocated $164.0 million of the $205 million paid to Goldman Sachs during the first quarter of fiscal 2020. The Company evaluated the nature of the forward contract aspect of the ASR under ASC 815

and concluded equity classification was appropriate. Final settlement of the transaction under the ASR occurred in the second quarter of fiscal 2020. At settlement, Goldman Sachs delivered an additional 0.6 million shares of the Company's common stock.

Stock-Based Compensation

Equity Compensation Plans

The Company has one share-based compensation plan pursuant to which awards are currently being issued—the 2008 amended and restated Equity Incentive Plan (“2008 Equity Plan”). The purpose of the 2008 Equity Plan is to provide stock options, restricted stock units and other equity interests in the Company to employees, officers, directors, consultants and advisors of the Company and any other person who is determined by the Board of Directors to have made (or is expected to make) contributions to the Company. The 2008 Equity Plan is administered by the Board of Directors of the Company, and a total of 31.5 million shares were reserved for issuance under this plan. As of September 26, 2020, the Company had 5.7 million shares available for future grant under the 2008 Equity Plan.

The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations in fiscal 2020, 2019 and 2018:


	2020		2019		2018
Cost of revenues	$	6.7	$	7.1	$	8.3
Research and development	8.0		9.2		9.5
Selling and marketing	10.2		10.2		10.3
General and administrative	50.9		35.5		35.6
Restructuring	7.5		—		1.3
	$	83.3	$	62.0	$	65.0

Grant-Date Fair Value

The Company uses a binomial model to determine the fair value of its stock options. The Company considers a number of factors to determine the fair value of options including the assistance of an outside valuation adviser. Information pertaining to stock options granted during fiscal 2020, 2019 and 2018 and related assumptions are noted in the following table:


	Years ended
	September 26, 2020			September 28, 2019			September 29, 2018
Options granted (in millions)	1.0			1.0			1.7
Weighted-average exercise price	$	45.96		$	41.36		$	40.76
Weighted-average grant date fair value	$	13.92		$	13.54		$	12.98
Assumptions:
Risk-free interest rates	1.7		%	3.0		%	2.1		%
Expected life (in years)	4.8			4.8			4.7
Expected volatility	33.6		%	34.3		%	35.3		%
Dividend yield	—			—			—

The risk-free interest rate is based on a treasury instrument whose term is consistent with the expected life of the stock options. In projecting expected stock price volatility, the Company uses a combination of historical stock price volatility and implied volatility from observable market prices of similar equity instruments. The Company estimated the expected life of stock options based on historical experience using employee exercise and option expiration data.

Stock-Based Compensation Expense Attribution

The Company uses the straight-line attribution method to recognize stock-based compensation expense for stock options and restricted stock units ("RSUs"). The vesting term of stock options is generally four or five years with annual vesting of 25% and 20% per year, respectively, on the anniversary of the grant date, and RSUs generally vest over three years with annual vesting at 33% per year on the anniversary of the grant date.

The amount of stock-based compensation recognized during a period is based on the value of the portion of the awards that are ultimately expected to vest. Under ASC 718, the Company's accounting policy is to estimate forfeitures at the time awards are granted and revise, if necessary, in subsequent periods if actual forfeitures differ from those estimates. Based on an analysis of historical forfeitures, the Company has determined a specific forfeiture rate for certain employee groups and has

applied forfeiture rates ranging from 0% to 6.0% as of September 26, 2020 depending on the specific employee group. This analysis is re-evaluated annually and the forfeiture rate adjusted as necessary. Ultimately, the actual stock-based compensation expense recognized will only be for those stock options and RSUs that vest.

Stock-based compensation expense related to stock options was $15.5 million, $14.1 million, and $14.3 million in fiscal 2020, 2019 and 2018, respectively. Stock compensation expense related to stock units, including RSUs, performance stock units ("PSUs"), free cash flow performance stock units ("FCFs") and market stock units ("MSUs") was $63.3 million, $43.7 million, and $46.5 million in fiscal 2020, 2019 and 2018, respectively. The related tax benefit recorded in the Consolidated Statements of Operations was $9.5 million, $8.9 million and $11.7 million in fiscal 2020, 2019 and 2018, respectively. At September 26, 2020, there was $19.5 million and $50.0 million of unrecognized compensation expense related to stock options and RSUs, respectively, to be recognized over a weighted average period of 2.3 years and 1.7 years, respectively.

Share Based Payment Activity

The following table summarizes all stock option activity under the Company’s stock option plans for the year ended September 26, 2020:


	Number of Shares (in millions)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Life (in Years)	Aggregate Intrinsic Value (in millions)
Options exercisable at September 28, 2019	5.5	$	35.23	6.1	$	78.4
Granted	1.0	45.96
Canceled/ forfeited	(0.1)	42.26
Exercised	(1.8)	27.51			44.8
Options outstanding at September 26, 2020	4.6	$	40.37	7.0	$	109.5
Options exercisable at September 26, 2020	2.2	$	37.81	6.0	$	57.2
Options vested and expected to vest at September 26, 2020 (1)	4.5	$	40.35	7.0	$	108.9

(1)This represents the number of vested stock options as of September 26, 2020 plus the unvested outstanding options at September 26, 2020 expected to vest in the future, adjusted for estimated forfeitures.

During fiscal 2019 and 2018, the total intrinsic value of options exercised (i.e., the difference between the market price on the date of exercise and the price paid by the employee to exercise the options) was $26.1 million and $15.2 million, respectively.

A summary of the Company’s RSU, PSU, FCF and MSU activity during the year ended September 26, 2020 is presented below:


Non-vested Shares	Number of Shares (in millions)	Weighted-Average Grant-Date Fair Value
Non-vested at September 28, 2019	2.5	$	42.17
Granted	0.9	45.65
Vested	(0.9)	38.54
Forfeited	(0.1)	42.69
Non-vested at September 26, 2020	2.4	$	44.22

The number of RSUs vested includes shares withheld on behalf of employees to satisfy minimum statutory tax withholding requirements. The Company pays the minimum statutory tax withholding requirement on behalf of its employees. During fiscal 2020, 2019 and 2018 the total fair value of RSUs and PSUs vested was $34.9 million, $34.6 million and $38.9 million, respectively.

The Company granted 0.6 million, 0.9 million and 0.8 million RSUs during fiscal 2020, 2019 and 2018, respectively. In addition, included in the above chart, the Company also granted 0.1 million, 0.1 million and 0.6 million PSUs during fiscal

2020, 2019, and 2018 respectively, to members of the Company's senior management team, which includes additional shares issued upon achieving metrics within the performance criteria. The PSUs were valued at $45.38, $40.97 and $40.86 per share based on the ending stock price on the date of grant in fiscal 2020, 2019 and 2018, respectively. Each recipient of the 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 year performance period provided the Company’s defined Return on Invested Capital metrics are achieved. The Company also granted 0.1 million of PSUs based on a one-year free cash flow measure (FCF) to its senior management team. Each recipient of FCF 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 the one-year measurement period, but the FCF PSUs vest at the end of the three year service period. The PSUs and FCF PSUs cliff-vest three years from the date of grant, and the Company recognizes compensation expense ratably over the required service period based on its estimate of the number of shares will vest upon achieving the measurement criteria. If there is a change in the estimate of the number of shares that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made. The Company also granted 0.1 million, 0.1 million and 0.3 million MSUs during fiscal 2020, 2019 and 2018, respectively, to its senior management team. 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 year performance period based upon achieving a certain total shareholder return relative to a defined peer group. The MSUs were valued at $43.54, $55.13 and $49.44 per share using the Monte Carlo simulation model in fiscal 2020, 2019 and 2018, respectively. These awards cliff-vest three years from the date of grant, and the Company recognizes compensation expense for the MSUs ratably over the service period.

Employee Stock Purchase Plan

The Hologic, Inc. 2012 Employee Stock Purchase Plan (“2012 ESPP”) provides for the granting of up to 2.5 million shares of the Company’s common stock to eligible employees. The 2012 ESPP plan period is semi-annual and allows participants to purchase the Company’s common stock at 85% of the lower of (i) the market value per share of the common stock on the first day of the offering period or (ii) the market value per share of the common stock on the purchase date. Stock-based compensation expense in fiscal 2020, 2019 and 2018 was $4.5 million, $4.2 million and $4.0 million, respectively.

The Company uses the Black-Scholes model to estimate the fair value of shares to be issued as of the grant date using the following weighted average assumptions:


	September 26, 2020		September 28, 2019		September 29, 2018
Assumptions:
Risk-free interest rates	1.32	%	2.27	%	1.62	%
Expected life (in years)	0.5		0.5		0.5
Expected volatility	26.9	%	27.1	%	25.0	%
Dividend yield	—		—		—

401(k) Plan	12 Months Ended
401(k) Plan	Sep. 26, 2020
Defined Contribution Plan [Abstract]
Profit Sharing 401(k) Plan	401(k) PlanThe Company's U.S. employees have access to a qualified 401(k) defined contribution plan. The Company made contributions of $19.6 million, $19.2 million and $18.6 million for fiscal 2020, 2019 and 2018, respectively.

Commitments and Contingencies

12 Months Ended

Sep. 26, 2020

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

The Company has certain non-cancelable purchase obligations primarily related to inventory purchases and diagnostics instruments, primarily Panther systems, and to a lesser extent other operating expense commitments. These obligations are not recorded in the Consolidated Balance Sheets. For reasons of quality assurance, sole source availability or cost effectiveness, certain key components and raw materials and instruments are available only from a sole supplier and the Company has certain long-term supply contracts to assure continuity of supply. At September 26, 2020, non-cancelable purchase commitments are as follows:


Fiscal 2021	267.7
Fiscal 2022	10.2
Fiscal 2023	0.7
Fiscal 2024	0.7
Fiscal 2025	0.4
Thereafter	0.1
Total	$	279.8

Litigation and Related Matters	12 Months Ended
Litigation and Related Matters	Sep. 26, 2020
Commitments and Contingencies Disclosure [Abstract]
Litigation and Related Matters	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. On May 2, 2019, the Court issued rulings that denied the parties' post-trial motions, including the Company's motion for a permanent injunction seeking to prohibit Minerva from selling infringing devices. Both parties appealed the Court's rulings regarding the post-trial motions. 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"). On April 19, 2019, the Court of Appeals affirmed the PTAB's final written decision regarding the '183 patent. On July 16, 2019, the Court of Appeals denied the Company’s petition for rehearing in the appeal regarding the '183 patent. On April 22, 2020, the Court of Appeals affirmed the district court’s summary judgment ruling in favor of the Company of no invalidity and infringement, and summary judgment that assignor estoppel bars Minerva from challenging the validity of the ‘348 patent. The Court of Appeals also denied the Company’s motion for a permanent injunction and ongoing royalties for infringement of the ‘183 patent. The Court of Appeals denied Minerva’s arguments for no damages or, alternatively, a new trial. On May 22, 2020 both parties petitioned for en banc review of the Court of Appeals decision. On July 22, 2020, the Court of Appeals denied both parties' petitions for en banc review. On August 28, 2020, the district court entered final judgment against Minerva but stayed execution pending resolution of Minerva’s petition for Supreme Court review, which was filed on September 30, 2020. On November 5, 2020, the Company opposed Minerva’s petition and filed a counter petition for Supreme Court review. 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 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. On March 26, 2019, the Magistrate Judge issued a claims construction ruling regarding the disputed terms in the patent, which the District Court Judge adopted in all respects on October 21, 2019. On March 9, 2020, Minerva elected to withdraw its claim for lost profits damages. The original trial date of July 20, 2020 was vacated due to circumstances surrounding the COVID-19 pandemic. On October 21, 2020, the Court entered an amended case schedule and set a new trial date of August 9, 2021. The parties submitted a joint status report on September 25, 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 July 8, 2020, the Company filed suit against Minerva in the United States District Court for the District of Delaware, alleging that Minerva’s redesigned endometrial ablation device infringes U.S. Patent 9,095,348 (the '348 patent). A trial is set to begin on August 23, 2021. 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 June 11, 2019, the Court issued a claim construction ruling regarding the disputed terms in the patents. Motions for summary judgment were filed by the parties on September 30, 2019, and a hearing on these motions was held on December 18, 2019. A six-day trial concluded on February 25, 2020, with the jury finding that all claims of U.S. Patent No. 8,697,352 are invalid (U.S. Patent No. 9,074,262 was dropped from the case by bioMérieux prior to trial). On March 18, 2020, the parties agreed to a settlement under which bioMérieux agreed to dismiss all claims with prejudice and to waive the filing of post-trial motions and pursuing an appeal in exchange for a de minimis payment from the Company and Grifols USA. As described in Note 15, the Company has agreed to indemnify CD&R for certain legal matters related to the Medical Aesthetics business that existed at the date of disposition. The Company currently has $8.5 million accrued as of September 26, 2020, but this amount could become greater if some or all of the cases which it is indemnifying have an adverse result. 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.

Disposition

12 Months Ended

Sep. 26, 2020

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

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)

Business Segments and Geographic Information

12 Months Ended

Sep. 26, 2020

Segment Reporting [Abstract]

Business Segments and Geographic Information

Business Segments and Geographic InformationThe Company reports segment information in accordance with ASC 280, Segment Reporting. Operating segments are identified as components of an enterprise about which separate, discrete financial information is available for evaluation by the chief operating decision maker, or decision-making group, in making decisions about how to allocate resources and assess performance. The Company’s chief operating decision maker is its chief executive officer, and the Company’s reportable segments have been identified based on the types of products manufactured and the end markets to which the products are sold. Each reportable segment generates revenue from either the sale of medical equipment and related services and/or sale of disposable supplies, primarily used for diagnostic testing and surgical procedures. During the first quarter of fiscal 2020, and each of fiscal 2019 and 2018, the Company had five reportable segments: Diagnostics, Breast Health, Medical Aesthetics, GYN Surgical and Skeletal Health. The Company completed the sale of its Medical Aesthetics business on December 30, 2019, but has continued to incur operating expenses primarily related to indemnification provisions and other matters. 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, goodwill and intangible asset impairment charges, transaction and integration expenses for acquisitions, restructuring, consolidation and divestiture charges, litigation charges, and other one-time or unusual items.

Identifiable assets for the five reportable 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 intersegment revenues. Segment information for fiscal 2020, 2019, and 2018 was as follows:


	Years ended
	September 26, 2020		September 28, 2019		September 29, 2018
Total revenues:
Diagnostics	$	2,102.1	$	1,205.5	$	1,147.4
Breast Health	1,151.9		1,314.2		1,218.2
GYN Surgical	376.1		$	437.2	422.0
Skeletal Health	81.0		94.8		91.2
Medical Aesthetics	65.3		315.6		339.1
	$	3,776.4	$	3,367.3	$	3,217.9
Operating income (loss):
Diagnostics	$	929.7	$	163.1	$	145.5
Breast Health	192.8		399.3		399.7
GYN Surgical	42.0		99.2		58.3
Skeletal Health	(2.4)		(4.2)		3.3
Medical Aesthetics	(57.1)		(781.2)		(844.7)
	$	1,105.0	$	(123.8)	$	(237.9)
Depreciation and amortization:
Diagnostics	$	237.3	$	246.6	$	257.3
Breast Health	48.8		36.8		22.7
GYN Surgical	85.1		87.7		91.6
Skeletal Health	0.7		0.6		0.6
Medical Aesthetics	4.1		91.4		108.1
	$	376.0	$	463.1	$	480.3
Capital expenditures:
Diagnostics	$	110.7	$	59.2	$	57.7
Breast Health	22.4		18.3		14.8
GYN Surgical	17.9		15.7		13.1
Skeletal Health	0.2		1.2		3.3
Medical Aesthetics	1.4		7.0		9.4
Corporate	3.8		7.7		7.3
	$	156.4	$	109.1	$	105.6
Identifiable assets:
Diagnostics	$	2,161.4	$	2,276.6	$	2,442.9
Breast Health	1,200.9		1,127.8		972.4
GYN Surgical	1,438.7		1,328.6		1,414.9
Skeletal Health	38.9		27.3		30.3
Medical Aesthetics	—		159.3		913.3
Corporate	2,355.9		1,522.5		1,457.1
	$	7,195.8	$	6,442.1	$	7,230.9

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, the United Kingdom and Germany. 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:


	Years ended
	September 26, 2020		September 28, 2019		September 29, 2018
United States	75.8	%	75.3	%	75.1	%
Europe	15.1	%	11.8	%	11.7	%
Asia-Pacific	6.0	%	8.5	%	8.6	%
Rest of world	3.1	%	4.4	%	4.6	%
	100.0	%	100.0	%	100.0	%

The Company’s property, plant and equipment, net were geographically located as follows:


	September 26, 2020		September 28, 2019		September 29, 2018
United States	$	383.0	$	355.5	$	366.5
Europe	77.5		64.4		62.0
Costa Rica	20.8		33.0		30.9
Rest of world	10.2		18.0		18.8
	$	491.5	$	470.9	$	478.2

Accrued Expenses and Other Long-Term Liabilities

12 Months Ended

Sep. 26, 2020

Payables and Accruals [Abstract]

Accrued Expenses and Other Long-Term Liabilities

Accrued expenses and other long-term liabilities consisted of the following:


	September 26, 2020		September 28, 2019
Accrued Expenses
Compensation and employee benefits	$	262.7	$	223.4

Income and other taxes	125.3		56.1

Operating leases	23.5		—
Accrued interest	22.1		22.6
Other	114.0		128.8
	$	547.6	$	430.9


	September 26, 2020		September 28, 2019
Other Long-Term Liabilities
Reserve for income tax uncertainties	$	103.7	$	106.8
Contingent consideration	81.8		—
Operating leases	65.6		—
Interest rate swap	23.0		—
Pension liabilities	11.1		10.2
Accrued lease obligation—long-term	—		33.7
Other	18.0		11.7
	$	303.2	$	162.4

Pension and Other Employee Benefits

12 Months Ended

Sep. 26, 2020

Retirement Benefits [Abstract]

Pension and Other Employee Benefits

The Company has certain defined benefit pension plans covering the employees of its Hitec Imaging German subsidiary (the “Pension Benefits”). As of September 26, 2020 and September 28, 2019, the Company’s pension liability was $10.9 million and $10.0 million, respectively, which is primarily recorded as a component of long-term liabilities in the Consolidated Balance Sheets. Under German law, there are no rules governing investment or statutory supervision of the pension plan. As such, there is no minimum funding requirement imposed on employers. Pension benefits are safeguarded by the Pension Guaranty Fund, a form of compulsory reinsurance that guarantees an employee will receive vested pension benefits in the event of insolvency. The pension plans were closed on December 31, 1997 and only eligible employees at that date could participate in the plans prior to closing to new participants.

The tables below provide a reconciliation of benefit obligations, plan assets, funded status, and related actuarial assumptions of the Company’s German Pension Benefits.


Change in Benefit Obligation	Years ended
	September 26, 2020		September 28, 2019		September 29, 2018
Benefit obligation at beginning of year	$	(10.0)	$	(9.7)	$	(9.9)
Service cost	—		—		—
Interest cost	(0.1)		(0.2)		(0.2)
Plan participants’ contributions	—		—		—
Actuarial gain (loss)	(0.5)		(1.0)		(0.1)
Foreign exchange gain	(0.7)		0.6		0.2
Benefits paid	0.4		0.3		0.3
Benefit obligation at end of year	(10.9)		(10.0)		(9.7)
Plan assets	—		—		—
Benefit obligation at end of year	$	(10.9)	$	(10.0)	$	(9.7)

The tables below outline the components of the net periodic benefit cost and related actuarial assumptions of the Company’s German Pension Benefits.


Components of Net Periodic Benefit Cost	Years ended
	September 26, 2020		September 28, 2019		September 29, 2018
Service cost	$	—	$	—	$	—
Interest cost	0.1		0.2		0.2
Expected return on plan assets	—		—		—
Amortization of prior service cost	—		—		—
Recognized net actuarial gain	0.2		0.1		0.1
Net periodic benefit cost	$	0.3	$	0.3	$	0.3


Weighted-Average Net Periodic Benefit Cost Assumptions	2020		2019		2018
Discount rate	0.80	%	1.10	%	1.95	%
Expected return on plan assets	—	%	—	%	—	%
Rate of compensation increase	—	%	—	%	—	%

The projected benefit obligation for the German Pension Benefits with projected benefit obligations in excess of plan assets was $10.9 million and $10.0 million at September 26, 2020 and September 28, 2019, respectively, and the accumulated benefit obligation for the German Pension Benefits was $10.9 million and $10.0 million at September 26, 2020 and September 28, 2019, respectively.

The Company is also obligated to pay long-term service award benefits under the German Pension Benefits. The projected benefit obligation for long-term service awards was $0.1 million at both September 26, 2020 and September 28, 2019, respectively.

The table below reflects the total Pension Benefits expected to be paid for the German Pension Benefits each fiscal year as of September 26, 2020:



2021	$	0.4
2022	$	0.4
2023	$	0.4
2024	$	0.4
2025	$	0.4
2026 to 2030	$	2.2

The Company also maintains additional contractual pension benefits for its top German executive officers in the form of a defined contribution plan. These contributions were insignificant in fiscal 2020, 2019 and 2018. Additionally, the Company has Swiss pension plans, which were insignificant in fiscal 2020, 2019, and 2018.

Quarterly Statement of Operations Information (Unaudited)

12 Months Ended

Sep. 26, 2020

Quarterly Financial Information Disclosure [Abstract]

Quarterly Statement of Operations Information (Unaudited)

The following table presents a summary of quarterly results of operations for fiscal 2020 and 2019:


	2020
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total revenue	$	850.5	$	756.1	$	822.9	$	1,347.0
Gross profit	433.8		395.8		466.1		931.8
Net income attributable to Hologic (1)	386.1		96.3		137.9		495.0
Diluted net income per common share	$	1.43	$	0.36	$	0.53	$	1.88


	2019
	First Quarter		Second Quarter		Third Quarter		Fourth Quarter
Total revenue	$	830.7	$	818.4	$	852.4	$	865.8
Gross profit	$	434.1	$	42.4	$	444.8	$	249.5
Net income (loss) (2)	$	98.6	$	(272.6)	$	93.9	$	(123.5)
Diluted net income (loss) per common share	$	0.36	$	(1.01)	$	0.35	$	(0.46)

(1)Net income in the first quarter of fiscal 2020 included an intangible assets and equipment charge of $30.2 million due to classifying the Medical Aesthetics business as assets held-for-sale. Net income also included a discrete tax benefit related to the disposition of this business of $312.2 million related to its outside basis difference.

(2)Net loss in the second quarter of fiscal 2019 included intangible asset and equipment impairment charges of $443.8 million. Net loss in the fourth quarter of fiscal 2019 included intangible asset and equipment impairment charges of $241.6 million.

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 26, 2020

Accounting Policies [Abstract]

Principles of Consolidation

The consolidated financial statements include the accounts of the Company and its wholly owned and majority owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation. The Company’s fiscal year ends on the last Saturday in September. Fiscal 2020, 2019 and 2018 ended on September 26, 2020, September 28, 2019 and September 29, 2018, respectively. Fiscal 2020, 2019 and 2018 were 52-week years.

Management's Estimates

Management’s Estimates and Uncertainties

The preparation of financial statements in conformity with U.S. generally accepted accounting principles ("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. Significant estimates and assumptions by management affect the Company’s revenue recognition for multiple performance obligation arrangements, valuations, purchase price allocations and contingent consideration related to business combinations, expected future cash flows including growth rates, discount rates, terminal values and other assumptions and estimates used to evaluate the recoverability of long-lived assets and goodwill, estimated fair values of intangible assets and goodwill, amortization methods and periods, warranty reserves, certain accrued expenses, restructuring and other related charges, contingent liabilities, tax reserves, deferred tax rates and recoverability of the Company’s net deferred tax assets and related valuation allowances.

Although the Company regularly assesses these estimates, actual results could differ materially from these estimates. Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and various other assumptions that it believes to be reasonable under the circumstances.

The Company is subject to a number of risks similar to those of other companies of similar size in its industry, including dependence on third-party reimbursements to support the markets of the Company’s products, early stage of development of certain products, rapid technological changes, recoverability of long-lived assets (including intangible assets and goodwill), competition, stability of world financial markets, ability to obtain regulatory approvals, changes in the regulatory environment, limited number of suppliers, customer concentration, integration of acquisitions, substantial indebtedness, government regulations, management of international activities, protection of proprietary rights, patent and other litigation, dependence on contract manufacturers and dependence on key individuals.

Cash Equivalents

Cash equivalents are highly liquid investments with insignificant interest rate risk and maturities of three months or less at the time of acquisition.

Concentrations of Credit Risk

Financial instruments that subject the Company to credit risk primarily consist of cash and cash equivalents, cost-method investments and trade accounts receivable. The Company invests its cash and cash equivalents with high credit quality financial institutions.

The Company’s customers are principally located in the United States, Europe and Asia. The Company performs ongoing credit evaluations of the financial condition of its customers and generally does not require collateral. Although the Company is directly affected by the overall financial condition of the healthcare industry, as well as global economic conditions, management does not believe significant credit risk exists as of September 26, 2020. The Company generally has not experienced any material losses related to receivables from individual customers or groups of customers in the healthcare industry. The Company maintains an allowance for doubtful accounts based on accounts past due and historical collection experience.

There was one customer with a balance greater than 10% of accounts receivable as of September 26, 2020, at 11.9%. There were no customers with a balance greater than 10% of accounts receivable as of September 28, 2019. There were no customers that represented greater than 10% of consolidated revenues for fiscal years 2020, 2019 and 2018

Inventories

Inventories are valued at the lower of cost or market on a first in, first out basis. Work-in-process and finished goods inventories consist of materials, labor and manufacturing overhead. The valuation of inventory requires management to estimate excess and obsolete inventory. The Company employs a variety of methodologies to determine the net realizable value of its inventory. Provisions for excess and obsolete inventory are primarily based on management’s estimates of forecasted sales, usage levels and expiration dates, as applicable for certain disposable products. A significant change in the timing or level of demand for the Company’s products compared to forecasted amounts may result in recording additional charges for excess and obsolete inventory in the future. The Company records charges for excess and obsolete inventory within cost of product revenues.

Inventories consisted of the following:


	September 26, 2020		September 28, 2019
Raw materials	$	152.3	$	166.1
Work-in-process	46.5		54.5
Finished goods	196.3		224.3
	$	395.1	$	444.9

Property, Plant and Equipment

Property, plant and equipment is recorded at cost less allowances for depreciation and impairments. The straight-line method of depreciation is used for all property and equipment.

Property, plant and equipment consisted of the following:


	Estimated Useful Life	September 26, 2020		September 28, 2019
Equipment	3–10 years	$	460.7	$	379.2
Equipment under customer usage agreements	3–8 years	456.8		427.5
Buildings and improvements	20–35 years	167.3		196.7
Leasehold improvements	Shorter of the Original Term of Lease or Estimated Useful Life	44.3		61.7
Land		40.7		46.3
Furniture and fixtures	5–7 years	16.1		17.5
		1,185.9		1,128.9
Less - accumulated depreciation and amortization		(694.4)		(658.0)
		$	491.5	$	470.9

Equipment under customer usage agreements primarily consists of diagnostic instrumentation and imaging equipment located at customer sites but owned by the Company. Generally, the customer has the right to use the equipment for a period of time provided they meet certain agreed to conditions. The Company recovers the cost of providing the equipment from the sale of disposables, primarily assays, tests and handpieces. The depreciation costs associated with equipment under customer usage agreements are charged to cost of product revenues over the estimated useful life of the equipment. The costs to maintain the equipment in the field are charged to cost of product revenue as incurred.

Long-Lived Assets

Long-Lived AssetsThe Company reviews its long-lived assets, which includes property, plant and equipment and identifiable intangible assets (see below for discussion of intangible assets), for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in accordance with ASC 360-10-35-15, Property, Plant and Equipment—Impairment or Disposal of Long-Lived Assets (ASC 360). Recoverability of these assets is evaluated by comparing the carrying value of the assets to the undiscounted cash flows estimated to be generated by those assets over their remaining economic life. If the undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are considered impaired. The impairment loss is measured by comparing the fair value of the assets to their carrying value. Fair value is determined by either a quoted market price, if any, or a value determined by a discounted cash flow technique.

Business Combinations and Acquisition of Intangible Assets

The Company accounts for the acquisition of a business in accordance with ASC 805, Business Combinations (ASC 805). Amounts paid to acquire a business are allocated to the assets acquired and liabilities assumed based on their fair values at the date of acquisition. Contingent consideration not deemed to be linked to continuing employment is recorded at fair value as measured on the date of acquisition. The value recorded is based on estimates of future financial projections under various potential scenarios using a Monte Carlo simulation. These cash flow projections are discounted with an appropriate risk adjusted rate. Each quarter until such contingent amounts are earned, the fair value of the liability is remeasured at each reporting period and adjusted as a component of operating expenses based on changes to the underlying assumptions. The estimates used to determine the fair value of the contingent consideration liability are subject to significant judgment and actual results are likely to differ from the amounts originally recorded. The Company determines the fair value of acquired intangible assets based on detailed valuations that use certain information and assumptions provided by management. The Company allocates any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill.

The Company uses the income approach to determine the fair value of developed technology and in-process research and development ("IPR&D") acquired in a business combination. This approach determines fair value by estimating the after-tax cash flows attributable to the respective asset over its useful life and then discounting these after-tax cash flows back to a present value. The Company bases its revenue assumptions on estimates of relevant market sizes, expected market growth rates, expected trends in technology and expected product introductions by competitors. Developed technology represents patented and unpatented technology and know-how. The value of the in-process projects is based on the project's stage of completion,

the complexity of the work completed as of the acquisition date, the projected costs to complete, the contribution of core technologies and other acquired assets, the expected introduction date, the estimated cash flows to be generated upon commercial release and the estimated useful life of the technology. The Company believes that the estimated developed technology and IPR&D amounts represent the fair value at the date of acquisition and do not exceed the amount a third-party would pay for the assets.The Company also uses the income approach, as described above, to determine the estimated fair value of certain other identifiable intangible assets including customer relationships, trade names and business licenses. Customer relationships represent established relationships with customers, which provide a ready channel for the sale of additional products and services. Trade names represent acquired company and product names

Other Assets

Other assets consisted of the following:


	September 26, 2020		September 28, 2019
Other Assets

Tax receivable	$	325.7	$	—
Right of use assets	80.7		—
Life insurance contracts	49.3		44.6
Deferred tax assets	15.5		17.2



Cost-method equity investments	11.4		11.4

Equity-method investment and loans to SSI (Note 5)	—		42.7
Other	34.0		38.7
	$	516.6	$	154.6

The tax receivable primarily relates to a discrete tax benefit from the sale of Cynosure in the second quarter of fiscal 2020. The right of use assets were recorded in connection with the adoption of ASC 842, Leases, and pertains to operating leases. Life insurance contracts were purchased in connection with the Company’s Nonqualified Deferred Compensation Plan (“DCP”) and are recorded at their cash surrender value (see Note 12 for further discussion).

Research and Software Development Costs

Costs incurred for the research and development of the Company’s products are expensed as incurred. Nonrefundable advance payments for goods or services to be received in the future by the Company for use in research and development activities are deferred. The deferred costs are expensed as the related goods are delivered or the services are performed.

The Company accounts for the development costs of software embedded in the Company’s products in accordance with ASC 985, Software. Costs incurred in the research, design and development of software embedded in products to be sold to customers are charged to expense until technological feasibility of the ultimate product to be sold is established. The Company’s policy is that technological feasibility is achieved when a working model, with the key features and functions of the product, is available for customer testing. Software development costs incurred after the establishment of technological feasibility and until the product is available for general release are capitalized, provided recoverability is reasonably assured. Capitalized software development costs are amortized over their estimate useful life and recorded within cost of revenues - product.

Foreign Currency Translation

Foreign Currency TranslationThe financial statements of the Company’s foreign subsidiaries are translated in accordance with ASC 830, Foreign Currency Matters. The reporting currency for the Company is the U.S. dollar. The functional currency of the Company’s foreign subsidiaries is determined based on the guidance in ASC 830. The majority of the Company's foreign subsidiaries' functional currency is the applicable local currency, although certain of the Company's foreign subsidiaries' functional currency is the U.S. dollar based on the nature of their operations or functions. Assets and liabilities of subsidiaries whose functional currency is the local currency are translated at the exchange rate in effect at each balance sheet date. Before translation, the Company re-measures foreign currency denominated assets and liabilities, including inter-company accounts receivable and payable, into the functional currency of the respective entity, resulting in unrealized gains or losses recorded in other income, net in the Consolidated Statements of Operations. Revenues and expenses are translated using average exchange rates during the respective period. Foreign currency translation adjustments are accumulated as a component of other comprehensive income (loss) as a separate component of stockholders’ equity. Gains and losses arising from transactions denominated in foreign currencies are included in other income, net in the Consolidated Statements of Operations and were not significant in any of the reporting periods presented.

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income (loss)

Other comprehensive income (loss) includes certain transactions that have generally been reported in the statement of stockholders’ equity. The following tables summarize the components and changes in accumulated balances of other comprehensive loss for the periods presented:


	Year Ended September 26, 2020										Year Ended September 28, 2019
	Foreign Currency Translation		Pension Plans		Hedged Interest Rate Caps		Hedged Interest Rate Swaps		Total		Foreign Currency Translation		Pension Plans		Hedged Interest Rate Caps		Hedged Interest Rate Swaps		Total
Beginning Balance	$	(41.4)	$	(1.7)	$	(2.7)	$	3.5	$	(42.3)	$	(26.6)	$	(1.1)	$	2.2	$	—	$	(25.5)
Other comprehensive loss before reclassifications	18.5		(0.1)		(0.5)		(27.6)		(9.7)		(14.8)		(0.6)		(8.0)		3.5		(19.9)
Charges (gains) reclassified to statement of operations	—		—		2.3		—		2.3		—		—		3.1		—		3.1
Ending Balance	$	(22.9)	$	(1.8)	$	(0.9)	$	(24.1)	$	(49.7)	$	(41.4)	$	(1.7)	$	(2.7)	$	3.5	$	(42.3)