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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
__________________________________________________________ 
FORM 10-Q
 
 __________________________________________________________ 
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 26, 2021
or 
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number: 1-36214
__________________________________________________________ 
HOLOGIC, INC.
(Exact name of registrant as specified in its charter)
 __________________________________________________________
Delaware   04-2902449
(State or other jurisdiction of incorporation or organization)   (I.R.S. Employer Identification No.)
250 Campus Drive,  
Marlborough,
Massachusetts
01752
(Address of principal executive offices)   (Zip Code)
(508) 263-2900
(Registrant’s telephone number, including area code)
 __________________________________________________________
*Securities registered pursuant to Section 12(b) of the Act:
Title of each class Trading Symbol(s) Name of each exchange on which registered
Common Stock, $0.01 par value HOLX NASDAQ
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.:
Large accelerated filer      Accelerated filer  
Non-accelerated filer  
   Smaller reporting company  
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  
As of July 22, 2021, 253,487,389 shares of the registrant’s Common Stock, $0.01 par value, were outstanding.


HOLOGIC, INC.
INDEX
 
  Page
Item 1.
4
5
6
7
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 6.
EXHIBITS

2

PART I – FINANCIAL INFORMATION
 
Item 1.    Financial Statements (unaudited)
HOLOGIC, INC.
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

(In millions, except number of shares, which are reflected in thousands, and per share data)
  Three Months Ended Nine Months Ended
  June 26,
2021
June 27,
2020
June 26,
2021
June 27,
2020
Revenues:
Product $ 995.2  $ 701.6  $ 3,829.4  $ 2,024.5 
Service and other 173.1  121.3  486.3  405.0 
1,168.3  822.9  4,315.7  2,429.5 
Costs of revenues:
Product 303.9  225.1  889.1  685.9 
Amortization of acquired intangible assets 68.1  62.9  194.2  189.4 
Impairment of intangible assets and equipment —  —  —  25.8 
Service and other 94.7  68.8  264.7  232.7 
Gross profit 701.6  466.1  2,967.7  1,295.7 
Operating expenses:
Research and development 69.0  55.1  199.8  165.5 
Selling and marketing 142.7  103.5  402.2  359.0 
General and administrative 117.3  105.3  297.7  259.9 
Amortization of acquired intangible assets 10.4  10.2  30.7  29.5 
Impairment of intangible assets and equipment —  —  —  4.4 
Contingent consideration fair value adjustments —  —  (10.1) 0.4 
Restructuring and divestiture charges 3.6  1.0  6.6  4.8 
343.0  275.1  926.9  823.5 
Income from operations 358.6  191.0  2,040.8  472.2 
Interest income 0.4  0.5  1.1  4.0 
Interest expense (21.6) (27.4) (70.9) (91.5)
Debt extinguishment loss —  —  (21.6) — 
Other income (expense), net 0.1  4.3  1.1  0.1 
Income before income taxes 337.5  168.4  1,950.5  384.8 
Provision (benefit) for income taxes 69.4  32.0  409.6  (232.1)
Net income $ 268.1  $ 136.4  $ 1,540.9  $ 616.9 
Net loss attributable to noncontrolling interest (0.3) (1.5) (1.8) (3.4)
Net income attributable to Hologic $ 268.4  $ 137.9  $ 1,542.7  $ 620.3 
Net income per common share attributable to Hologic:
Basic $ 1.05  $ 0.53  $ 5.98  $ 2.35 
Diluted $ 1.04  $ 0.53  $ 5.93  $ 2.34 
Weighted average number of shares outstanding:
Basic 256,230  259,870  257,769  263,667 
Diluted 258,581  261,047  260,371  265,092 
See accompanying notes.
3

HOLOGIC, INC.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
(In millions)
  Three Months Ended Nine Months Ended
  June 26,
2021
June 27,
2020
June 26,
2021
June 27,
2020
Net income $ 268.1  $ 136.4  $ 1,540.9  $ 616.9 
Changes in foreign currency translation adjustment (9.4) 1.4  (1.0) 4.3 
Changes in value of hedged interest rate swaps and interest rate caps, net of tax of $1.0 and $2.2 for the three and nine months ended June 26, 2021 and $(1.5) and $(7.9) for the three and nine months ended June 27, 2020.
Gain (loss) recognized in other comprehensive income, net 3.0  (4.7) 8.0  (25.9)
Loss reclassified from accumulated other comprehensive loss to the statements of income —  0.3  0.5  2.0 
Other comprehensive (loss) income (6.4) (3.0) 7.5  (19.6)
Comprehensive income $ 261.7  $ 133.4  $ 1,548.4  $ 597.3 
Components of comprehensive income attributable to noncontrolling interest:
Net loss attributable to noncontrolling interest 0.3  1.5  1.8  3.4 
Comprehensive loss attributable to noncontrolling interest 0.3  1.5  1.8  3.4 
Comprehensive income attributable to Hologic $ 262.0  $ 134.9  $ 1,550.2  $ 600.7 
See accompanying notes.


4

HOLOGIC, INC.

CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In millions, except number of shares, which are reflected in thousands, and par value)
 
June 26,
2021
September 26,
2020
ASSETS
Current assets:
Cash and cash equivalents $ 827.6  $ 701.0 
Accounts receivable, less reserves 943.2  1,028.9 
Inventories 502.9  395.1 
Prepaid income taxes 63.0  38.8 
Prepaid expenses and other current assets 81.5  58.5 
Total current assets 2,418.2  2,222.3 
Property, plant and equipment, net 551.1  491.5 
Intangible assets, net 1,800.8  1,307.5 
Goodwill 3,264.2  2,657.9 
Other assets 556.3  516.6 
Total assets $ 8,590.6  $ 7,195.8 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Current portion of long-term debt $ 460.6  $ 324.9 
Accounts payable 208.4  178.8 
Accrued expenses 579.4  547.6 
Deferred revenue 213.1  186.1 
Finance lease obligations 3.1  1.9 
Total current liabilities 1,464.6  1,239.3 
Long-term debt, net of current portion 2,654.7  2,713.9 
Finance lease obligations, net of current portion 22.9  17.4 
Deferred income tax liabilities 284.8  201.8 
Deferred revenue, net of current portion 15.0  12.9 
Other long-term liabilities 271.5  303.2 
Stockholders’ equity:
Preferred stock, $0.01 par value – 1,623 shares authorized; 0 shares issued
—  — 
Common stock, $0.01 par value –750,000 shares authorized; 296,945 and 295,107 shares issued, respectively
3.0  2.9 
Additional paid-in-capital 5,936.2  5,904.8 
Accumulated deficit (30.5) (1,573.2)
Treasury stock, at cost – 43,653 and 37,609 shares, respectively
(1,989.4) (1,579.6)
Accumulated other comprehensive loss (42.2) (49.7)
Total Hologic's stockholders’ equity 3,877.1  2,705.2 
Noncontrolling interest —  2.1 
Total stockholders’ equity 3,877.1  2,707.3 
Total liabilities and stockholders’ equity $ 8,590.6  $ 7,195.8 
See accompanying notes.
5

Hologic, Inc.
Consolidated Statements of Stockholders' Equity
(In millions, except number of shares, which are reflected in thousands)
  Common Stock Additional
Paid-in-
Capital
Accumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Treasury Stock Total
Stockholders’
Equity
  Number of
Shares
Par Value Number of
Shares
Amount Noncontrolling Interest
Balance at September 28, 2019 292,323  $ 2.9  $ 5,769.8  $ (2,688.7) $ (42.3) 24,638  $ (926.0) $ —  $ 2,115.7 
Noncontrolling interest created in acquisition —  —  —  —  —  —  —  8.6  8.6 
Accounting standard transition adjustment - ASC 842 —  —  —  0.3  —  —  —  —  0.3 
Exercise of stock options 540  —  13.8  —  —  —  —  —  13.8 
Vesting of restricted stock units, net of shares withheld for employee taxes 476  —  (10.9) —  —  —  —  —  (10.9)
Stock-based compensation —  —  18.1  —  —  —  —  —  18.1 
Net income (loss) —  —  —  386.1  —  —  —  (0.3) 385.8 
Other comprehensive income activity —  —  —  —  13.6  —  —  —  13.6 
Repurchase of common stock —  —  —  —  —  1,545  (80.9) —  (80.9)
Accelerated share repurchase agreement —  —  (41.0) —  —  3,279  (164.0) —  (205.0)
Purchase of non-controlling interest —  —  —  —  —  —  —  (1.4) (1.4)
Balance at December 28, 2019 293,339  $ 2.9  $ 5,749.8  $ (2,302.3) $ (28.7) 29,462  $ (1,170.9) $ 6.9  $ 2,257.7 
Exercise of stock options 503  —  13.9  —  —  —  —  —  13.9 
Vesting of restricted stock units, net of shares withheld for employee taxes 86  —  (1.6) —  —  —  —  —  (1.6)
Common stock issued under the employee stock purchase plan 214  —  8.8  —  —  —  —  —  8.8 
Stock-based compensation —  —  15.7  —  —  —  —  —  15.7 
Net income (loss) —  —  —  96.3  —  —  —  (1.5) 94.8 
Other comprehensive income activity —  —  —  —  (30.2) —  —  —  (30.2)
Repurchase of common stock —  —  —  —  —  5,851  (267.6) —  (267.6)
Completion of Accelerated share repurchase agreement —  —  41.0  —  —  628  (41.0) —  — 
Purchase of non-controlling interest —  —  —  —  —  —  —  (0.3) (0.3)
Balance at March 28, 2020 294,142  $ 2.9  $ 5,827.6  $ (2,206.0) $ (58.9) 35,941  $ (1,479.5) $ 5.1  $ 2,091.2 
Exercise of stock options 533  —  14.4  —  —  —  —  —  14.4 
6

Vesting of restricted stock units, net of shares withheld for employee taxes —  (0.2) —  —  —  —  —  (0.2)
Stock-based compensation —  —  19.9  —  —  —  —  —  19.9 
Net income (loss) —  —  —  137.9  —  —  —  (1.5) 136.4 
Other comprehensive income activity —  —  —  —  (3.0) —  —  —  (3.0)
Purchase of non-controlling interest —  —  —  —  —  —  —  (0.1) (0.1)
Balance at June 27, 2020 294,684  $ 2.9  $ 5,861.7  $ (2,068.1) $ (61.9) 35,941  $ (1,479.5) $ 3.5  $ 2,258.6 
Exercise of stock options 185  —  6.2  —  —  —  —  —  6.2 
Vesting of restricted stock units, net of shares withheld for employee taxes 40  —  (1.5) —  —  —  —  —  (1.5)
Common stock issued under the employee stock purchase plan 198  —  8.8  —  —  —  —  —  8.8 
Stock-based compensation —  —  29.6  —  —  —  —  —  29.6 
Net income (loss) —  —  —  494.9  —  —  —  (1.4) 493.5 
Other comprehensive income activity —  —  —  —  12.2  —  —  —  12.2 
Repurchase of common stock —  —  —  —  —  1,668  (100.1) —  (100.1)
Balance at September 26, 2020 295,107  $ 2.9  $ 5,904.8  $ (1,573.2) $ (49.7) 37,609  $ (1,579.6) $ 2.1  $ 2,707.3 
Exercise of stock options 490  —  18.4  —  —  —  —  —  18.4 
Vesting of restricted stock units, net of shares withheld for employee taxes 936  0.1  (46.5) —  —  —  —  —  (46.4)
Stock-based compensation —  —  18.6  —  —  —  —  —  18.6 
Net income (loss) —  —  —  654.4  —  —  —  (1.0) 653.4 
Other comprehensive income activity —  —  —  —  19.0  —  —  —  19.0 
Repurchase of common stock —  —  —  —  —  1,469  (101.3) —  (101.3)
Balance at December 26, 2020 296,533  $ 3.0  $ 5,895.3  $ (918.8) $ (30.7) 39,078  $ (1,680.9) $ 1.1  $ 3,269.0 
Exercise of stock options 146  —  5.8  —  —  —  —  —  5.8 
Vesting of restricted stock units, net of shares withheld for employee taxes 17  —  (0.3) —  —  —  —  —  (0.3)
Common stock issued under the employee stock purchase plan 191  —  9.2  —  —  —  —  —  9.2 
Stock-based compensation —  —  17.1  —  —  —  —  —  17.1 
Net income (loss) —  —    619.9  —  —  —  (0.5) 619.4 
Other comprehensive income activity —  —  —  —  (5.1) —  —  —  (5.1)
7

Repurchase of common stock —  —  —  —  —  1,604  (120.1) —  (120.1)
Balance at March 27, 2021 296,887  $ 3.0  $ 5,927.1  $ (298.9) $ (35.8) 40,682  $ (1,801.0) $ 0.6  $ 3,795.0 
Exercise of stock options 53  —  2.1  —  —  —  —  —  2.1 
Vesting of restricted stock units, net of shares withheld for employee taxes —  (0.2) —  —  —  —  —  (0.2)
Stock-based compensation —  —  15.4  —  —  —  —  —  15.4 
Net income (loss) —  —  —  268.4  —  —  —  (0.3) 268.1 
Other comprehensive income activity —  —  —  —  (6.4) —  —  —  (6.4)
Repurchase of common stock —  —  —  —  —  2,971  (188.4) —  (188.4)
Purchase of non-controlling interest —  —  (8.2) —  —  —  —  (0.3) (8.5)
Balance at June 26, 2021 296,945  $ 3.0  $ 5,936.2  $ (30.5) $ (42.2) 43,653  $ (1,989.4) $ —  $ 3,877.1 


8

HOLOGIC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In millions)
Nine Months Ended
  June 26,
2021
June 27,
2020
OPERATING ACTIVITIES
Net income $ 1,540.9  $ 616.9 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation 64.2  62.8 
Amortization of acquired intangibles 224.9  218.9 
Stock-based compensation expense 51.0  53.7 
Deferred income taxes (44.3) (63.3)
Intangible asset and equipment impairment charges —  30.2 
Debt extinguishment loss 21.6  — 
Other adjustments and non-cash items 19.8  23.6 
Changes in operating assets and liabilities, excluding the effect of acquisitions:
Accounts receivable 111.5  (130.5)
Inventories (82.4) (48.0)
Prepaid income taxes (24.3) (10.6)
Prepaid expenses and other assets (22.3) (290.0)
Accounts payable 9.4  (55.1)
Accrued expenses and other liabilities (27.6) 40.5 
Deferred revenue 22.6  5.5 
Net cash provided by operating activities 1,865.0  454.6 
INVESTING ACTIVITIES
Acquisition of businesses, net of cash acquired (1,163.3) (43.2)
Net proceeds from sale of business —  142.7 
Capital expenditures (71.2) (53.2)
Increase in equipment under customer usage agreements (43.4) (44.9)
Purchase of intellectual property (6.5) — 
Other activity (2.1) (5.1)
Net cash used in investing activities (1,286.5) (3.7)
FINANCING ACTIVITIES
Repayment of long-term debt (56.3) (36.4)
Proceeds from senior notes 950.0  — 
Repayment of senior notes (970.8) — 
Proceeds from revolving credit line —  750.0 
Repayment under revolving credit line (250.0) (250.0)
Proceeds from accounts receivable securitization agreement 320.0  16.0 
Repayment under accounts receivable securitization agreement —  (250.0)
Purchase of non-controlling interest (8.5) (1.8)
Payment of deferred acquisition consideration —  (24.3)
Payment of debt issuance costs (13.7) — 
Repurchase of common stock (409.7) (553.4)
Proceeds from issuance of common stock pursuant to employee stock plans 39.6  54.7 
Payment of minimum tax withholdings on net share settlements of equity awards (46.9) (12.6)
Payments under finance lease obligations (1.5) (1.2)
Net cash used in financing activities (447.8) (309.0)
Effect of exchange rate changes on cash and cash equivalents (4.1) 0.5 
Net increase in cash and cash equivalents 126.6  142.4 
Cash and cash equivalents, beginning of period 701.0  601.8 
Cash and cash equivalents, end of period $ 827.6  $ 744.2 
See accompanying notes.
9

HOLOGIC, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
(all tabular amounts in millions, except number of shares, which are reflected in thousands, and per share data)
(1) Basis of Presentation
The consolidated financial statements of Hologic, Inc. (“Hologic” or the “Company”) presented herein have been prepared pursuant to the rules of the Securities and Exchange Commission (the “SEC”) for quarterly reports on Form 10-Q and do not include all of the information and disclosures required by U.S. generally accepted accounting principles (“GAAP”) for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and related notes for the fiscal year ended September 26, 2020 included in the Company’s Form 10-K filed with the SEC on November 17, 2020. In the opinion of management, the financial statements and notes contain all adjustments (consisting of normal recurring accruals and all other necessary adjustments) considered necessary for a fair presentation of the Company’s financial position, results of operations and cash flows for the periods presented.
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.
The preparation of financial statements in conformity with 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. Actual results could differ from management’s estimates if past experience or other assumptions do not turn out to be substantially accurate. Operating results for the three and nine months ended June 26, 2021 are not necessarily indicative of the results to be expected for any other interim period or the entire fiscal year ending September 25, 2021.
Recently Adopted Accounting Pronouncements
In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2016-13, Financial Instruments – Credit Losses (Topic 326). The purpose of ASU 2016-13 is to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses over the lifetime of the financial asset. As a result, credit losses are recorded when financial assets are established if credit losses are expected over the asset's contractual life. 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. The Company adopted the standard during the first quarter of fiscal 2021. The adoption of ASU 2016-13 did not have a material effect on the Company's consolidated financial statements. See Note 8 for additional information.
In November 2019, the FASB issued ASU No. 2019-08, Compensation - Stock Compensation (Topic 718) and Revenue from Contracts with Customers (Topic 606). This ASU 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 this Update expanded the scope of Topic 718 to include share-based payment transactions for acquiring goods and services from nonemployees. The Company adopted this ASU in the first quarter of fiscal 2021, which did not have a material effect on the Company's financial statements.
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 affecting the unaudited consolidated financial statements as of and for the three and nine months ended June 26, 2021.

10

(2) Revenue
The Company accounts for revenue pursuant to ASC Update No. 2014-09, Revenue from Contracts with Customer (ASC 606) and 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 tables provide revenue from contracts with customers by business and geographic region on a disaggregated basis:    
Three Months Ended June 26, 2021 Three Months Ended June 27, 2020
Business (in millions)
United States International Total United States International Total
Diagnostics:
Cytology & Perinatal $ 73.9  $ 42.0  $ 115.9  $ 40.3  $ 23.8  $ 64.1 
Molecular Diagnostics 270.1  266.3  536.4  391.0  69.3  460.3 
Blood Screening 13.2  —  13.2  7.8  —  7.8 
Total $ 357.2  $ 308.3  $ 665.5  $ 439.1  $ 93.1  $ 532.2 
Breast Health:
Breast Imaging $ 218.4  $ 61.9  $ 280.3  $ 145.6  $ 47.6  $ 193.2 
Interventional Breast Solutions 54.8  13.9  68.7  25.0  5.8  30.8 
Total $ 273.2  $ 75.8  $ 349.0  $ 170.6  $ 53.4  $ 224.0 
GYN Surgical $ 103.9  $ 24.0  $ 127.9  $ 42.1  $ 9.4  $ 51.5 
Skeletal Health $ 15.6  $ 10.3  $ 25.9  $ 9.0  $ 6.2  $ 15.2 
$ 749.9  $ 418.4  $ 1,168.3  $ 660.8  $ 162.1  $ 822.9 


Nine Months Ended June 26, 2021 Nine Months Ended June 27, 2020
Business (in millions)
United States International Total United States International Total
Diagnostics:
Cytology & Perinatal $ 230.8  $ 127.1  $ 357.9  $ 191.1  $ 107.6  $ 298.7 
Molecular Diagnostics 1,561.7  905.3  2,467.0  683.0  146.5  829.5 
Blood Screening 33.3  —  33.3  35.0  —  35.0 
Total $ 1,825.8  $ 1,032.4  $ 2,858.2  $ 909.1  $ 254.1  $ 1,163.2 
Breast Health:
Breast Imaging $ 619.5  $ 198.3  $ 817.8  $ 541.1  $ 177.1  $ 718.2 
Interventional Breast Solutions 164.9  35.3  200.2  120.4  24.2  144.6 
Total $ 784.4  $ 233.6  $ 1,018.0  $ 661.5  $ 201.3  $ 862.8 
GYN Surgical $ 296.8  $ 69.4  $ 366.2  $ 227.6  $ 48.3  $ 275.9 
Medical Aesthetics $ —  $ —  $ —  $ 30.9  $ 34.4  $ 65.3 
Skeletal Health $ 44.7  $ 28.6  $ 73.3  $ 39.4  $ 22.9  $ 62.3 
$ 2,951.7  $ 1,364.0  $ 4,315.7  $ 1,868.5  $ 561.0  $ 2,429.5 

11

Three Months Ended Nine Months Ended
Geographic Regions (in millions)
June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
United States $ 749.9  $ 660.8  $ 2,951.7  $ 1,868.5 
Europe 289.0  101.7  963.9  322.9 
Asia-Pacific 89.6  43.7  268.1  155.5 
Rest of World 39.8  16.7  132.0  82.6 
$ 1,168.3  $ 822.9  $ 4,315.7  $ 2,429.5 

The following table provides revenue recognized by source:
Three Months Ended Nine Months Ended
Revenue by type (in millions)
June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
Disposables $ 797.7  $ 588.1  $ 3,239.2  $ 1,511.4 
Capital equipment, components and software 197.5  113.5  590.2  513.1 
Service 158.4  116.4  437.2  388.6 
Other 14.7  4.9  49.1  16.4 
$ 1,168.3  $ 822.9  $ 4,315.7  $ 2,429.5 

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 benefits 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 three to twelve 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.

12

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 could cause reversal of revenue. 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 June 26, 2021, the estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied was approximately $804.4 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 11% of this amount as revenue in 2021, 36% in 2022, 25% in 2023, 16% in 2024, and 12% 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 reporting 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 $20.1 million and $100.9 million for the three and nine months ended June 26, 2021, respectively, that was included in the contract liability balance at September 26, 2020. The Company recognized $18.0 million and $95.5 million for the three and nine months ended June 27, 2020, respectively, that was included in the contract liability balance at September 28, 2019.

(3) Leases
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 lease and performance obligations for disposables, reagents and other consumables. These contractual arrangements are subject to termination provisions which are evaluated in determining the lease term for lease accounting purposes. 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. Sales-type leases are immaterial. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Lease revenue represented less than 5% of the Company's consolidated revenue for all periods presented.

(4) Fair Value Measurements
Assets/Liabilities Measured and Recorded at Fair Value on a Recurring Basis
The Company has investments in derivative instruments comprised of an interest rate swap, forward foreign currency contracts and foreign currency option contracts, which are valued using analyses obtained from independent third party valuation specialists based on market observable inputs, representing Level 2 measurements. The fair values of these derivative
13

contracts represent the estimated amounts the Company would receive or pay to terminate the contracts. Refer to Note 9 for further discussion and information on derivative instruments.
Assets and liabilities measured and recorded at fair value on a recurring basis consisted of the following at June 26, 2021: 
    Fair Value at Reporting Date Using
  Balance as of June 26, 2021 Quoted Prices in
Active Market for
Identical Assets
(Level 1)
Significant
Other
Observable
Inputs (Level 2)
Significant
Unobservable
Inputs (Level 3)
Assets:
Foreign currency option contracts $ 0.1  $ —  $ 0.1  $ — 
Total $ 0.1  $ —  $ 0.1  $ — 
Liabilities:
Contingent consideration $ 71.7  $ —  $ —  $ 71.7 
Interest rate swap 21.0  —  21.0  — 
Forward foreign currency contracts 1.7  —  1.7  — 
Total $ 94.4  $ —  $ 22.7  $ 71.7 
Liabilities Measured and Recorded at Fair Value on a Recurring Basis
Changes in the fair value of recurring fair value measurements using significant unobservable inputs (Level 3), which solely consisted of contingent consideration liabilities, during the three and nine month periods ended June 26, 2021 and June 27, 2020 were as follows:
Three Month Ended Nine Months Ended
June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
Balance at beginning of period $ 71.7  $ 0.8  $ 81.8  $ 9.1 
Contingent consideration recorded at acquisition —  —  —  0.9 
Fair value adjustments —  —  (10.1) 0.4 
Payments —  —  —  (9.6)
Balance at end of period $ 71.7  $ 0.8  $ 71.7  $ 0.8 

Assets Measured and Recorded at Fair Value on a Nonrecurring Basis
The Company remeasures the fair value of certain assets and liabilities upon the occurrence of certain events. Such assets are comprised of equity investments and long-lived assets, including property, plant and equipment, intangible assets and goodwill. There were no such remeasurements to equity investments in the three and nine months ended June 26, 2021 and June 27, 2020. During the first quarter of fiscal 2020, the Company's Medical Aesthetics division met the criteria to be classified as assets-held-for sale, and the Company recorded a $30.2 million loss to record the asset group at its fair value less costs to sell. This was a level 1 measurement. See Note 6 for additional information.
Disclosure of Fair Value of Financial Instruments
The Company’s financial instruments mainly consist of cash and cash equivalents, accounts receivable, equity investments, an interest rate swap, forward foreign currency contracts, foreign currency option contracts, insurance contracts, accounts payable and debt obligations. The carrying amounts of the Company’s cash and cash equivalents, accounts receivable and accounts payable approximate their fair value due to the short-term nature of these instruments. The Company’s interest rate swap, forward foreign currency contracts and foreign currency option contracts are recorded at fair value. The carrying amount of the insurance contracts are recorded at the cash surrender value, as required by GAAP, which approximates fair value. The Company believes the carrying amounts of its cost-method equity investments approximate fair value.
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Amounts outstanding under the Company’s 2018 Credit Agreement (as defined below) of $1.4 billion aggregate principal as of June 26, 2021 are subject to variable interest rates of interest based on current market rates, and as such, the Company believes the carrying amount of these obligations approximates fair value. The Company’s 2028 Senior Notes and 2029 Senior Notes had fair values of $420.8 million and $940.0 million, respectively, as of June 26, 2021 based on their trading prices, representing Level 1 measurements. Refer to Note 7 for the carrying amounts of the various components of the Company’s debt.

(5) Business Combinations

Fiscal 2021 Acquisitions

Mobidiag Oy

On June 17, 2021, the Company completed the acquisition of Mobidiag Oy ("Mobidiag"), for a purchase price of $729.6 million. Mobidiag, located in Finland, manufactures molecular diagnostic solutions for gastrointestinal infections, antimicrobial resistance management and other infections. Mobidiag's results of operations are reported in the Company's Diagnostics reportable segment from the date of acquisition.
The total purchase price was allocated to Mobidiag's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values as of June 17, 2021, as set forth below.

Cash $ 6.8 
Accounts receivable 8.7 
Inventory 11.9 
Other assets 26.6 
Accounts payable and accrued expenses (18.2)
Other liabilities (7.9)
Identifiable intangible assets:
Developed technology 284.0 
In-process research and development 103.0 
Customer relationships 26.3 
Trade names 21.0 
Long-term debt (66.0)
Deferred income taxes, net (72.8)
Goodwill 406.2 
Purchase Price $ 729.6 

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 Mobidiag's business. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities, including but not limited to the estimation of the fair value of the identifiable intangible assets, long-term debt, and deferred income taxes.
As part of the preliminary purchase price allocation, the Company determined the identifiable intangible assets are development technology, in-process research and development ("IPR&D"), 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 rates ranging from 14.5% to 16.0%. 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 developed technology assets are comprised of know-how, patents and technologies embedded in Mobidiag's products and relate to currently marketed products. The developed technology assets comprise the primary product families under the Novodiag and Amplidiag technology platforms.
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IPR&D projects relate to in-process projects that have not reached technological feasibility as of the acquisition date and have no alternative future use. The primary basis for determining technological feasibility of these projects is obtaining regulatory approval to market the underlying project or expected commercial release depending on the project. The Company recorded, on a preliminary basis, $103.0 million of IPR&D related to three projects. The Company expects to complete these three projects over the next three years. Given the uncertainties inherent with product development and introduction, there can be no assurance that any of the Company's product development efforts will be successful, completed on a timely basis or within budget, if at all. All of the IPR&D assets were valued using the income approach.
The preliminary estimate of the weighted average life for the developed technology assets range from 10 to 12 years, customer relationships range from 5 to 11 years, and tradenames range from 10 to 12 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. Factors contributing to the recognition of the preliminary amount of goodwill were primarily based on anticipated strategic and synergistic benefits that are expected to be realized from the Mobidiag acquisition. These benefits include expanding the Company's molecular diagnostics portfolio into the near-patient testing market and utilizing Diagnostic's sales and regulatory expertise to drive adoption and revenue growth. None of the goodwill is expected to be deductible for income tax purposes.

Biotheranostics

On February 22, 2021, the Company completed the acquisition of Biotheranostics, Inc. ("Biotheranostics"), for a purchase price of $231.3 million. Biotheranostics, located in San Diego, California, manufactures molecular diagnostic tests for breast and metastatic cancers and performs the lab testing procedures at its facility. Biotheranostics' results of operations are reported in the Company's Diagnostics reportable segment from the date of acquisition and its revenues are reported within Service and other revenue in the Company's Consolidated Statements of Income and within service revenue in our disclosure of disaggregated revenue in Note 2.

The total purchase price was allocated to Biotheranostics' preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values as of February 22, 2021, as set forth below.

Cash $ 9.6 
Accounts receivable 2.9 
Other assets 6.5 
Accounts payable and accrued expenses (8.2)
Other liabilities (8.1)
Identifiable intangible assets:
Developed technology 160.3 
Trade names 2.1 
Deferred income taxes, net (18.4)
Goodwill 84.6 
Purchase Price $ 231.3 

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 Biotheranostics' business. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities, the estimation of the fair value of the identifiable intangible assets, and income taxes.

As part of the preliminary purchase price allocation, the Company determined the identifiable intangible assets are developed technology 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 18.0% rate. The cash flows were 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. Factors contributing to the recognition of the preliminary amount of goodwill were primarily based on anticipated synergistic benefits of adding Biotheranostics' CLIA (Clinical
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Laboratory Improvement Amendments) lab to the Company's portfolio of offerings and utilizing Diagnostic's marketing and regulatory expertise to drive adoption and revenue growth. None of the goodwill is expected to be deductible for income tax purposes.

Diagenode

On March 1, 2021, the Company completed the acquisition of Diagenode SA ("Diagenode") for a purchase price of $155.1 million. Diagenode, located in Belgium, is a developer and manufacturer of molecular diagnostic assays based on PCR (polymerase chain reaction) technology to detect infectious diseases of bacterial, viral or parasite origin. Diagenode's results of operations are reported in the Company's Diagnostics reportable segment from the date of acquisition.

The total purchase price was allocated to Diagenode's preliminary tangible and identifiable intangible assets and liabilities based on the estimated fair values as of March 1, 2021, as set forth below.

Cash $ 5.6 
Accounts receivable 9.3 
Inventory 9.0 
Other assets 13.9 
Accounts payable and accrued expenses (12.8)
Other liabilities (9.2)
Identifiable intangible assets:
Developed technology 69.8 
Customer relationships 9.2 
Deferred income taxes, net (19.3)
Goodwill 79.6 
Purchase Price $ 155.1 

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 Diagenode's business. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities, the estimation of the fair value of the identifiable intangible assets, and income taxes.

As part of the preliminary purchase price allocation, the Company determined the identifiable intangible assets are developed technology and customer relationships. The preliminary fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using a 14.5% rate for developed technology and a 13.5% rate for customer relationships. The cash flows were 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 customer relationships 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. Factors contributing to the recognition of the preliminary amount of goodwill were based on anticipated synergistic benefits of Diagenode's products broadening the Diagnostics portfolio of molecular diagnostics products primarily in the transplant and acute care gastrointestinal and respiratory space as customers seek a broader menu of tests, utilizing Diagnostic's sales force to drive menu expansion and revenue growth and gaining additional PCR assay development expertise. None of the goodwill is expected to be deductible for income tax purposes.

Somatex Medical Technologies

On December 30, 2020, the Company completed the acquisition of Somatex Medical Technologies GmbH ("Somatex") for a purchase price of $62.9 million. Somatex, located in Germany, is a manufacturer of biopsy site markers, including the Tumark product line of tissue markers, which were distributed by the Company in the U.S. prior to the acquisition. The allocation of the purchase price is based on the Company's preliminary valuation, and it allocated $38.0 million to the preliminary value of developed technology, $1.2 million to customer relationships, $0.9 million to trade names and $32.4 million to goodwill. The remaining $9.6 million of the purchase price was allocated to the net acquired tangible assets and liabilities. The allocation of the purchase price is preliminary as the Company continues to gather information supporting
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the acquired assets and liabilities. Somatex' results of operations are reported in the Company's Breast Health reportable segment from the date of acquisition.

NXC Imaging

On September 28, 2020, the Company completed the acquisition of assets from NXC Imaging, for a purchase price of $5.6 million. NXC 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. The allocation of the purchase price is preliminary as the Company continues to gather information supporting the acquired assets and liabilities.

Fiscal 2020 Acquisitions

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 that was paid in January 2021, 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, Business Combinations, 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, Fair Value Measurements. 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. There was no remeasurement for the three months ended June 26, 2021. For the nine months ended June 26, 2021, the Company remeasured the contingent consideration liability and recorded a gain of $10.1 million to record the liability at fair value. The reduction in fair value was primarily due to a decrease in forecasted revenues over the measurement period.

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

Cash $ 1.2 
Inventory 4.0 
Other assets 4.4 
Accounts payable and accrued expenses (4.7)
Identifiable intangible assets:
Developed technology 127.0 
Trade names 1.2 
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.

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As part of the preliminary purchase price allocation, the Company determined the identifiable intangible assets were developed technology 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 an 18.0% rate. The cash flows were 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 was 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. Factors contributing to the recognition of the preliminary amount of goodwill were based on anticipated synergistic benefits of Acessa's products being complementary to the GYN Surgical portfolio of products and utilizing the GYN Surgical 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 valuation, it allocated $10.7 million to developed technology and $6.2 million to goodwill. The remaining $2.8 million of the purchase price was allocated to acquired tangible 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 was 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. The majority of the purchase price was allocated to a customer relationships intangible asset with a useful life of 5 years.

SuperSonic Imagine

On August 1, 2019, the Company purchased 46% of the outstanding shares of SuperSonic Imagine ("SSI") for $18.2 million. SSI was 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.

On November 21, 2019, the Company acquired an additional 7.6 million 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 to other income (expense), net 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. In the third quarter of fiscal 2021, the Company purchased the remaining 4.8 million shares outstanding for $8.5 million, and as of June 26, 2021, the Company owned 100% of the outstanding shares of SSI.

The total purchase price was allocated to SSI's 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.

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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 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. As part of the purchase price allocation, the Company determined the identifiable intangible assets were developed technology, 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 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 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. Factors contributing to the recognition of the amount of goodwill were based on anticipated 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.

(6) 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, Impairment and Disposal of Long-Lived Assets, 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 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.

In the first quarter of fiscal 2020, this business incurred a loss from operations of $46.5 million, which excludes corporate allocations. The operating expenses include only those that were incurred directly by and were retained by the
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disposed business. 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. These expenses were not significant in the first, second and third quarters of fiscal 2021.

(7) Borrowings and Credit Arrangements
The Company’s borrowings consisted of the following: 
June 26,
2021
September 26,
2020
Current debt obligations, net of debt discount and deferred issuance costs:
Term Loan $ 74.8  $ 74.9 
Revolver —  250.0 
Securitization Program 320.0  — 
Other 65.8  — 
Total current debt obligations $ 460.6  $ 324.9 
Long-term debt obligations, net of debt discount and issuance costs:
Term Loan 1,325.5  1,379.9 
2025 Senior Notes —  939.4 
2028 Senior Notes 395.2  394.6 
2029 Senior Notes 934.0  — 
Total long-term debt obligations $ 2,654.7  $ 2,713.9 
Total debt obligations $ 3,115.3  $ 3,038.8 
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 dated as of October 3, 2017 (the "2017 Credit Agreement"). As of June 26, 2021, the principal amount outstanding of the term loan under the 2018 Credit Agreement (the "Term Loan") was $1.4 billion. The Term Loan bears interest at an annual rate equal to the Eurocurrency Rate (i.e., the LIBOR rate) plus an Applicable Rate, which was 1.00% as of June 26, 2021.

The Company also has a $1.5 billion revolving credit facility (the "Revolver") under the 2018 Credit Agreement. The borrowings of the Revolver bear interest at a rate equal to the LIBOR Daily Floating Rate plus an Applicable Rate, which was 1.00% as of June 26, 2021. In response to the market uncertainties created by the COVID-19 pandemic in March 2020, the Company borrowed $750.0 million under the Revolver, $250.0 million of which, at the time, was used to pay off amounts outstanding under the asset securitization agreement, in order to have sufficient cash on hand. During the first quarter of fiscal 2021, the Company paid off the remaining outstanding balance of $250.0 million. As of June 26, 2021, the full amount of the Revolver was available to borrow by the Company.

Interest expense, weighted average interest rates, and the interest rate at the end of period under the Credit Agreements were as follows: 
Three Months Ended Nine Months Ended
June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
Interest expense $ 5.1  $ 11.4  $ 17.0  $ 38.0 
Weighted average interest rate 1.10  % 1.68  % 1.15  % 2.52  %
Interest rate at end of period 1.09  % 1.55  % 1.09  % 1.55  %

The 2018 Credit Agreement contains two financial covenants; a total leverage ratio and an interest coverage ratio, both of which are measured as of the last day of each fiscal quarter. These terms, and calculations thereof, are defined in further detail in the 2018 Credit Agreement. As of June 26, 2021, the Company was in compliance with these covenants.

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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 Company used the net proceeds of the 2029 Senior Notes offering and cash on hand to redeem in full its 4.375% Senior Notes due 2025 (the "2025 Senior Notes") in the aggregate principal amount of $950.0 million on October 15, 2020 at an aggregate redemption price of $970.8 million, which included a premium payment $20.8 million.

2025 Senior Notes

Immediately prior to redemption in full of the 2025 Senior Notes on October 15, 2020, the total aggregate principal balance of 2025 Senior Notes was $950.0 million. As the Company planned to use the proceeds from the 2029 Senior Notes offering to redeem the 2025 Senior Notes, the Company evaluated the accounting for this transaction under ASC 470, Debt, to determine modification versus extinguishment accounting on a creditor-by-creditor basis. Certain 2025 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 first quarter of fiscal 2021 of $21.6 million. For the remaining 2025 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 $5.8 million to interest expense pursuant to ASC 470, subtopic 50-40. The remaining debt issuance costs of $7.9 million and debt discount of $6.4 million related to the modified debt will be amortized over the new term of the 2029 Senior Notes using the effective interest method.

2028 Senior Notes
    
As of June 26, 2021, the Company had 4.625% Senior Notes due 2028 (the "2028 Senior Notes") outstanding in the aggregate principal balance of $400 million. The 2028 Senior Notes are general senior unsecured obligations of the Company and are guaranteed on a senior unsecured basis by certain domestic subsidiaries and mature on February 1, 2028.
2029 Senior Notes

As of June 26, 2021, the Company had 2029 Senior Notes outstanding in the aggregate principal balance of $950 million. 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.

The Company evaluated the 2029 Senior Notes for derivatives pursuant to ASC 815, Derivatives and Hedging, and did not identify any embedded derivatives that require bifurcation. All features were deemed to be clearly and closely related to the host instrument.
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Interest expense for the 2029 Senior Notes, 2028 Senior Notes and 2025 Senior Notes was as follows:
Three Months Ended Nine Months Ended
June 26, 2021 June 27, 2020 June 26, 2021 June 27, 2020
Interest Rate Interest Expense Interest Expense Interest Expense Interest Expense
2025 Senior Notes 4.375  % $ —  $ 10.9  $ —  $ 32.7 
2028 Senior Notes 4.625  % 4.8  4.8  14.4  14.4 
2029 Senior Notes 3.250  % 8.2  —  24.5  — 
Total $ 13.0  $ 15.7  $ 38.9  $ 47.1 
Accounts Receivable Securitization Program

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 under the Accounts Receivable Securitization Program (the "Securitization Program"). 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. On June 11, 2021, the Company amended and restated the Credit and Security agreement to restart the Securitization Program and increase the maximum borrowing amount to $320.0 million. Loans outstanding under the Securitization Program bear interest at LIBOR plus an applicable margin for defined tranches. As of June 26, 2021, there was $320.0 million outstanding under this program. The weighted average interest rate under the Securitization Program was 0.78% as of June 26, 2021.