Discontinued Operations (Tables)

12 Months Ended

Sep. 29, 2017

Discontinued Operations and Disposal Groups [Abstract]

Key Financial Statement Components of Discontinued Operations

The following table summarizes the key components of net earnings (loss) from discontinued operations:

	Fiscal Years
(In millions)	2017(1)			2016		2015
Revenues	$	194.0		$	596.7	$	608.4
Cost of revenues	117.3			348.3		357.9
Gross margin	76.7			248.4		250.5
Operating expenses (2)	76.1			132.6		97.2
Operating earnings	0.6			115.8		153.3
Taxes on earnings	7.4			38.4		52.7
Net earnings (loss) from discontinued operations	(6.8		)	77.4		100.6
Less: Net earnings from discontinued operations attributable to noncontrolling interests	0.1			0.5		0.7
Net earnings (loss) from discontinued operations attributable to Varian	$	(6.9	)	$	76.9	$	99.9

⁽¹⁾  Fiscal year 2017 net earnings (loss) from discontinued operations represents activity through the date of the Distribution.

⁽²⁾  Operating expenses from discontinued operations included separation costs of $34.2 million and $16.9 million during fiscal years 2017 and 2016, respectively. Separation costs include expenses for transaction advisory services, consulting services, restructuring and other expenses.

The following table summarizes the major classes of assets and liabilities of discontinued operations that were included in the Company's balance sheet:

(In millions)	September 29, 2017		September 30, 2016
Assets:
Cash	$	—	$	32.1
Accounts receivable, net	8.1		122.2
Inventories	2.9		197.3
Prepaid expenses and other current assets	0.1		4.0
Current assets of discontinued operations	11.1		355.6
Property, plant and equipment, net	—		120.6
Goodwill	—		74.7
Intangible assets	—		20.6
Deferred tax assets	—		2.1
Other assets	—		54.9
Total assets of discontinued operations	$	11.1	$	628.5
Liabilities:
Accounts payable	$	2.0	$	41.9
Accrued liabilities	0.5		29.1
Deferred revenues	—		12.0
Current liabilities of discontinued operations	2.5		83.0
Other long-term liabilities	—		4.2
Total liabilities of discontinued operations	$	2.5	$	87.2
Redeemable noncontrolling interests of discontinued operations	$	—	$	10.3

The following table presents supplemental cash flow information of discontinued operations:

	Fiscal Years
(In millions)	2017			2016			2015
Operating activities:
Share-based compensation expense	$	2.0		$	6.1		$	6.4
Depreciation expense	4.8			10.5			10.5
Amortization expense	1.8			5.5			2.7
Investing activities:
Purchases of property, plant & equipment	(6.4		)	(28.9		)	(34.3		)
Acquisition of business, net of cash acquired (1)	—			(1.2		)	(67.9		)
Sale of available-for-sale securities	$	—		$	8.6		$	—

⁽¹⁾  Fiscal year 2015 includes the acquisition of MeVis and Claymount Investment B.V.