Leases

12 Months Ended

Sep. 28, 2024

Leases [Abstract]

Leases

Leases

    The Company accounts for leases pursuant to ASC 842 Leases (ASC 842) and recognizes lease assets and liabilities on its balance sheet. As a lessee, the Company elected to combine lease and non-lease components together for the majority of its leases, and as a result accounts for each separate lease component and the non-lease components associated with that lease component as a single lease component. 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.

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. In accordance with ASC 842, 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 11 years, some of which may include options to extend the leases for up to 10 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 28, 2024.

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 and finance 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 28, 2024 was 4.92%.

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

		September 28, 2024				September 30, 2023
	Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets
Lease right-of-use assets	Other assets	$	92.2	$	—	$	62.7	$	—
Finance lease right-of-use assets (non-current)	Property, plant and equipment, net	$	—	$	5.0	$	—	$	5.6
Liabilities
Operating lease liabilities (current)	Accrued expenses	$	24.0	$	—	$	20.4	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	3.3	$	—	$	3.1
Operating lease liabilities (non-current)	Other long-term liabilities	$	83.9	$	—	$	47.1	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	12.2	$	—	$	15.3

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 28, 2024				As of September 30, 2023
	Operating Leases		Finance Lease		Operating Leases		Finance Lease
Weighted average remaining lease term	5.92		4.83		4.18		5.69
Weighted average discount rate	5.0	%	4.1	%	2.9	%	4.2	%

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

		Year Ended September 28, 2024		Year Ended September 30, 2023
Operating lease cost (a)		$	41.3	$	29.9
Finance lease cost - amortization of right-of-use assets		$	0.7	$	0.7
Finance lease cost - interest cost		$	0.8	$	0.8
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	0.7	$	0.9
	Operating cash flows from operating leases	$	26.1	$	28.3
	Financing cash flows from finance leases	$	3.8	$	4.0
	Total cash paid for amounts included in the measurement of lease liabilities	$	30.6	$	33.2
ROU assets arising from entering into new operating lease obligations (b)		$	60.4	$	15.7
ROU assets arising from entering into new finance lease obligations		$	—	$	—

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 28, 2024. During the first quarter of fiscal 2024, in conjunction with the strategy change to move the Mobidiag development

activities and operations to the Company’s San Diego, California location, the Company recorded a lease asset impairment charge of $12.5 million. Please refer to Footnote 8 for additional details.

(b) During fiscal 2024, the Company renewed two leases at the Company’s Marlborough, Massachusetts locations in the amount of $23.3 million and $8.4 million for a term of 10 years and 5 years, respectively.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance leases as of September 28, 2024:

Fiscal Year	Operating Leases		Finance Leases
2025	$	28.7	$	3.8
2026	25.1		3.8
2027	20.8		4.0
2028	14.4		3.0
2029	8.0		0.6
Thereafter	29.6		1.7
Total future minimum lease payments	126.6		16.9
Less: imputed interest	(18.7)		(1.4)
Present value of lease liabilities	$	107.9	$	15.5

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 3% of the Company’s consolidated revenue for all periods presented.

In connection with the disposition of the Medical Aesthetics business in fiscal 2020, 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 and recorded a lease receivable, which is $10.4 million as of September 28, 2024.

The Company leases a portion of a building it owns and subleases some of its rented facilities and received aggregate rental income of $1.5 million, $1.1 million and $2.8 million in fiscal 2024, 2023 and 2022, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these lease and sublease agreements at September 28, 2024 are as follows:

Fiscal 2025	$	1.2
Fiscal 2026	1.1
Fiscal 2027	1.1
Fiscal 2028	0.8
Fiscal 2029	0.4
Thereafter	0.6
Total	$	5.2

Leases

Leases

    The Company accounts for leases pursuant to ASC 842 Leases (ASC 842) and recognizes lease assets and liabilities on its balance sheet. As a lessee, the Company elected to combine lease and non-lease components together for the majority of its leases, and as a result accounts for each separate lease component and the non-lease components associated with that lease component as a single lease component. 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.

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. In accordance with ASC 842, 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 11 years, some of which may include options to extend the leases for up to 10 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 28, 2024.

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 and finance 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 28, 2024 was 4.92%.

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

		September 28, 2024				September 30, 2023
	Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets
Lease right-of-use assets	Other assets	$	92.2	$	—	$	62.7	$	—
Finance lease right-of-use assets (non-current)	Property, plant and equipment, net	$	—	$	5.0	$	—	$	5.6
Liabilities
Operating lease liabilities (current)	Accrued expenses	$	24.0	$	—	$	20.4	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	3.3	$	—	$	3.1
Operating lease liabilities (non-current)	Other long-term liabilities	$	83.9	$	—	$	47.1	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	12.2	$	—	$	15.3

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 28, 2024				As of September 30, 2023
	Operating Leases		Finance Lease		Operating Leases		Finance Lease
Weighted average remaining lease term	5.92		4.83		4.18		5.69
Weighted average discount rate	5.0	%	4.1	%	2.9	%	4.2	%

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

		Year Ended September 28, 2024		Year Ended September 30, 2023
Operating lease cost (a)		$	41.3	$	29.9
Finance lease cost - amortization of right-of-use assets		$	0.7	$	0.7
Finance lease cost - interest cost		$	0.8	$	0.8
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	0.7	$	0.9
	Operating cash flows from operating leases	$	26.1	$	28.3
	Financing cash flows from finance leases	$	3.8	$	4.0
	Total cash paid for amounts included in the measurement of lease liabilities	$	30.6	$	33.2
ROU assets arising from entering into new operating lease obligations (b)		$	60.4	$	15.7
ROU assets arising from entering into new finance lease obligations		$	—	$	—

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 28, 2024. During the first quarter of fiscal 2024, in conjunction with the strategy change to move the Mobidiag development

activities and operations to the Company’s San Diego, California location, the Company recorded a lease asset impairment charge of $12.5 million. Please refer to Footnote 8 for additional details.

(b) During fiscal 2024, the Company renewed two leases at the Company’s Marlborough, Massachusetts locations in the amount of $23.3 million and $8.4 million for a term of 10 years and 5 years, respectively.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance leases as of September 28, 2024:

Fiscal Year	Operating Leases		Finance Leases
2025	$	28.7	$	3.8
2026	25.1		3.8
2027	20.8		4.0
2028	14.4		3.0
2029	8.0		0.6
Thereafter	29.6		1.7
Total future minimum lease payments	126.6		16.9
Less: imputed interest	(18.7)		(1.4)
Present value of lease liabilities	$	107.9	$	15.5

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 3% of the Company’s consolidated revenue for all periods presented.

In connection with the disposition of the Medical Aesthetics business in fiscal 2020, 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 and recorded a lease receivable, which is $10.4 million as of September 28, 2024.

The Company leases a portion of a building it owns and subleases some of its rented facilities and received aggregate rental income of $1.5 million, $1.1 million and $2.8 million in fiscal 2024, 2023 and 2022, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these lease and sublease agreements at September 28, 2024 are as follows:

Fiscal 2025	$	1.2
Fiscal 2026	1.1
Fiscal 2027	1.1
Fiscal 2028	0.8
Fiscal 2029	0.4
Thereafter	0.6
Total	$	5.2

Leases

Leases

    The Company accounts for leases pursuant to ASC 842 Leases (ASC 842) and recognizes lease assets and liabilities on its balance sheet. As a lessee, the Company elected to combine lease and non-lease components together for the majority of its leases, and as a result accounts for each separate lease component and the non-lease components associated with that lease component as a single lease component. 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.

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. In accordance with ASC 842, 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 11 years, some of which may include options to extend the leases for up to 10 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 28, 2024.

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 and finance 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 28, 2024 was 4.92%.

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

		September 28, 2024				September 30, 2023
	Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets
Lease right-of-use assets	Other assets	$	92.2	$	—	$	62.7	$	—
Finance lease right-of-use assets (non-current)	Property, plant and equipment, net	$	—	$	5.0	$	—	$	5.6
Liabilities
Operating lease liabilities (current)	Accrued expenses	$	24.0	$	—	$	20.4	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	3.3	$	—	$	3.1
Operating lease liabilities (non-current)	Other long-term liabilities	$	83.9	$	—	$	47.1	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	12.2	$	—	$	15.3

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 28, 2024				As of September 30, 2023
	Operating Leases		Finance Lease		Operating Leases		Finance Lease
Weighted average remaining lease term	5.92		4.83		4.18		5.69
Weighted average discount rate	5.0	%	4.1	%	2.9	%	4.2	%

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

		Year Ended September 28, 2024		Year Ended September 30, 2023
Operating lease cost (a)		$	41.3	$	29.9
Finance lease cost - amortization of right-of-use assets		$	0.7	$	0.7
Finance lease cost - interest cost		$	0.8	$	0.8
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	0.7	$	0.9
	Operating cash flows from operating leases	$	26.1	$	28.3
	Financing cash flows from finance leases	$	3.8	$	4.0
	Total cash paid for amounts included in the measurement of lease liabilities	$	30.6	$	33.2
ROU assets arising from entering into new operating lease obligations (b)		$	60.4	$	15.7
ROU assets arising from entering into new finance lease obligations		$	—	$	—

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 28, 2024. During the first quarter of fiscal 2024, in conjunction with the strategy change to move the Mobidiag development

activities and operations to the Company’s San Diego, California location, the Company recorded a lease asset impairment charge of $12.5 million. Please refer to Footnote 8 for additional details.

(b) During fiscal 2024, the Company renewed two leases at the Company’s Marlborough, Massachusetts locations in the amount of $23.3 million and $8.4 million for a term of 10 years and 5 years, respectively.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance leases as of September 28, 2024:

Fiscal Year	Operating Leases		Finance Leases
2025	$	28.7	$	3.8
2026	25.1		3.8
2027	20.8		4.0
2028	14.4		3.0
2029	8.0		0.6
Thereafter	29.6		1.7
Total future minimum lease payments	126.6		16.9
Less: imputed interest	(18.7)		(1.4)
Present value of lease liabilities	$	107.9	$	15.5

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 3% of the Company’s consolidated revenue for all periods presented.

In connection with the disposition of the Medical Aesthetics business in fiscal 2020, 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 and recorded a lease receivable, which is $10.4 million as of September 28, 2024.

The Company leases a portion of a building it owns and subleases some of its rented facilities and received aggregate rental income of $1.5 million, $1.1 million and $2.8 million in fiscal 2024, 2023 and 2022, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these lease and sublease agreements at September 28, 2024 are as follows:

Fiscal 2025	$	1.2
Fiscal 2026	1.1
Fiscal 2027	1.1
Fiscal 2028	0.8
Fiscal 2029	0.4
Thereafter	0.6
Total	$	5.2

Leases

Leases

    The Company accounts for leases pursuant to ASC 842 Leases (ASC 842) and recognizes lease assets and liabilities on its balance sheet. As a lessee, the Company elected to combine lease and non-lease components together for the majority of its leases, and as a result accounts for each separate lease component and the non-lease components associated with that lease component as a single lease component. 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.

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. In accordance with ASC 842, 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 11 years, some of which may include options to extend the leases for up to 10 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 28, 2024.

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 and finance 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 28, 2024 was 4.92%.

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

		September 28, 2024				September 30, 2023
	Balance Sheet Location	Operating Leases		Finance Leases		Operating Leases		Finance Leases
Assets
Lease right-of-use assets	Other assets	$	92.2	$	—	$	62.7	$	—
Finance lease right-of-use assets (non-current)	Property, plant and equipment, net	$	—	$	5.0	$	—	$	5.6
Liabilities
Operating lease liabilities (current)	Accrued expenses	$	24.0	$	—	$	20.4	$	—
Finance lease liabilities (current)	Finance lease obligations - short term	$	—	$	3.3	$	—	$	3.1
Operating lease liabilities (non-current)	Other long-term liabilities	$	83.9	$	—	$	47.1	$	—
Finance lease liabilities (non-current)	Finance lease obligations - long term	$	—	$	12.2	$	—	$	15.3

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 28, 2024				As of September 30, 2023
	Operating Leases		Finance Lease		Operating Leases		Finance Lease
Weighted average remaining lease term	5.92		4.83		4.18		5.69
Weighted average discount rate	5.0	%	4.1	%	2.9	%	4.2	%

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

		Year Ended September 28, 2024		Year Ended September 30, 2023
Operating lease cost (a)		$	41.3	$	29.9
Finance lease cost - amortization of right-of-use assets		$	0.7	$	0.7
Finance lease cost - interest cost		$	0.8	$	0.8
Cash paid for amounts included in the measurement of lease liabilities:
	Operating cash flows from finance leases	$	0.7	$	0.9
	Operating cash flows from operating leases	$	26.1	$	28.3
	Financing cash flows from finance leases	$	3.8	$	4.0
	Total cash paid for amounts included in the measurement of lease liabilities	$	30.6	$	33.2
ROU assets arising from entering into new operating lease obligations (b)		$	60.4	$	15.7
ROU assets arising from entering into new finance lease obligations		$	—	$	—

(a) Includes short-term lease expense and variable lease costs, which were immaterial for the year ended September 28, 2024. During the first quarter of fiscal 2024, in conjunction with the strategy change to move the Mobidiag development

activities and operations to the Company’s San Diego, California location, the Company recorded a lease asset impairment charge of $12.5 million. Please refer to Footnote 8 for additional details.

(b) During fiscal 2024, the Company renewed two leases at the Company’s Marlborough, Massachusetts locations in the amount of $23.3 million and $8.4 million for a term of 10 years and 5 years, respectively.

The following table presents the future minimum lease payments under non-cancellable operating lease liabilities and finance leases as of September 28, 2024:

Fiscal Year	Operating Leases		Finance Leases
2025	$	28.7	$	3.8
2026	25.1		3.8
2027	20.8		4.0
2028	14.4		3.0
2029	8.0		0.6
Thereafter	29.6		1.7
Total future minimum lease payments	126.6		16.9
Less: imputed interest	(18.7)		(1.4)
Present value of lease liabilities	$	107.9	$	15.5

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 3% of the Company’s consolidated revenue for all periods presented.

In connection with the disposition of the Medical Aesthetics business in fiscal 2020, 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 and recorded a lease receivable, which is $10.4 million as of September 28, 2024.

The Company leases a portion of a building it owns and subleases some of its rented facilities and received aggregate rental income of $1.5 million, $1.1 million and $2.8 million in fiscal 2024, 2023 and 2022, respectively, which has been recorded as an offset to operating lease costs. The future minimum annual rental income payments under these lease and sublease agreements at September 28, 2024 are as follows:

Fiscal 2025	$	1.2
Fiscal 2026	1.1
Fiscal 2027	1.1
Fiscal 2028	0.8
Fiscal 2029	0.4
Thereafter	0.6
Total	$	5.2