Discontinued Operations (Tables)

12 Months Ended

Sep. 28, 2018

Discontinued Operations and Disposal Groups [Abstract]

Key Financial Statement Components of Discontinued Operations

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

	Fiscal Years(1)
(In millions)	2017 (2)			2016
Revenues	$	194.0		$	596.7
Cost of revenues	117.3			348.3
Gross margin	76.7			248.4
Operating expenses (3)	76.1			132.6
Operating earnings	0.6			115.8
Taxes on earnings	7.4			38.4
Net (loss) earnings from discontinued operations	(6.8		)	77.4
Less: Net earnings from discontinued operations attributable to noncontrolling interests	0.1			0.5
Net (loss) earnings from discontinued operations attributable to Varian	$	(6.9	)	$	76.9

⁽¹⁾  There was no activity in net loss from discontinued operations during fiscal 2018.

⁽²⁾  In fiscal year 2017, the net loss from discontinued operations represents activity through the date of the Distribution.

⁽³⁾  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 28, 2018		September 29, 2017
Assets:
Accounts receivable, net	$	—	$	8.1
Inventories	—		2.9
Prepaid expenses and other current assets	2.3		0.1
Current assets of discontinued operations	2.3		11.1
Total assets of discontinued operations	$	2.3	$	11.1
Liabilities:
Accounts payable	$	—	$	2.0
Accrued liabilities	—		0.5
Current liabilities of discontinued operations	—		2.5
Total liabilities of discontinued operations	$	—	$	2.5

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

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

⁽¹⁾  There was no significant cash flow activity from discontinued operations in fiscal year 2018.