FAIR VALUE (Tables)

12 Months Ended

Oct. 03, 2025

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

In the tables below, the Company has segregated all assets and liabilities that are measured at fair value on a recurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date.


	Fair Value at October 3, 2025
(In millions)	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:

Commercial paper	$	—	$	2.0	$	—	$	2.0
Corporate notes/bonds	—		4.0		—		4.0
Government agencies	—		2.0		—		2.0
U.S. treasury bills	—		15.8		—		15.8


Deferred compensation plan(1)	8.4		—		—		8.4
Marketable equity securities	3.6		—		—		3.6
Total assets measured at fair value	$	12.0	$	23.8	$	—	$	35.8

Liabilities:
Derivative liabilities	$	—	$	10.4	$	—	$	10.4


Total liabilities measured at fair value	$	—	$	10.4	$	—	$	10.4

(1) The assets held under the Company’s deferred compensation plan are classified in Level 1, as they relate primarily to publicly traded mutual funds for which there are observable market prices in active markets.


	Fair Value at September 27, 2024
(In millions)	Quoted Prices in Active Markets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total
Assets:
Money market funds	$	—	$	24.4	$	—	$	24.4

Corporate notes/bonds	—		16.5		—		16.5
Government agencies	—		18.3		—		18.3
U.S. treasury bills	—		6.1		—		6.1
Certificates of deposit	—		0.9		—		0.9
Derivative assets	—		1.0		—		1.0
Deferred compensation plan(1)	7.5		—		—		7.5
Marketable equity securities	2.6		—		—		2.6
Total assets measured at fair value	$	10.1	$	67.2	$	—	$	77.3

Liabilities:
Derivative liabilities	$	—	$	8.6	$	—	$	8.6

Total liabilities measured at fair value	$	—	$	8.6	$	—	$	8.6

Nonrecurring Fair Value Measurements

During fiscal year 2025, the Company assessed its goodwill for impairment and concluded that the carrying value of the Medical reporting unit was greater than its fair value. The nonrecurring fair value measurements used by the Company to determine the impairment of the Medical reporting unit goodwill was calculated by equal weighting of the income approach based on estimated discounted future cash flows and the market approach based on comparable publicly traded companies in similar lines of businesses. Under the income approach, fair value is determined based on a discounted cash flow technique that uses estimates of cash flows discounted to present value using rates commensurate with the risks associated with those cash flows. Under the market approach, a market-based value is derived by relating multiples of revenue for a group of comparable public companies to the same measure for

each reporting unit to estimate fair value. This valuation resulted in a Level 3 nonrecurring fair value measurement. See Note 5, Goodwill and Intangible Assets, for further information on the nature of the impairment.

Schedule of Gains and (Losses) on Marketable Securities

The following is a summary of marketable debt securities, which are included within the cash and cash equivalents, marketable securities, and other assets balances on the Consolidated Balance Sheets.


	October 3, 2025
(In millions)	Amortized Costs		Unrealized Losses		Fair Value

Commercial paper	$	2.0	$	—	$	2.0
Corporate notes/bonds	4.1		(0.1)		4.0
U.S. treasury bills	15.8		—		15.8
Government agencies	2.0		—		2.0


Total marketable debt securities	$	23.9	$	(0.1)	$	23.8


	September 27, 2024
(In millions)	Amortized Costs		Unrealized Gains		Fair Value


Corporate notes/bonds	$	16.4	$	0.1	$	16.5
U.S. treasury bills	6.1		—		6.1
Government agencies	18.3		—		18.3
Certificates of deposit	0.9		—		0.9

Total marketable debt securities	$	41.7	$	0.1	$	41.8

Schedule of Marketable Securities

The contractual maturities of marketable debt securities as of October 3, 2025, are shown in the table below. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations.


	October 3, 2025
(In millions)	Amortized Costs		Fair Value
Contractual maturities:
Due within one year	$	23.9	$	23.8





Total marketable debt securities	$	23.9	$	23.8

The following tables summarize the balance sheet locations for marketable debt securities:


	October 3, 2025
(In millions)	Commercial Paper		Corporate Notes/Bonds		Government Agencies		Treasury Bills		Total
Cash and cash equivalents	$	—	$	—	$	—	$	13.7	$	13.7
Marketable securities	2.0		4.0		2.0		2.1		10.1





Total marketable debt securities	$	2.0	$	4.0	$	2.0	$	15.8	$	23.8


	September 27, 2024
(In millions)	Corporate Notes/Bonds		Government Agencies		Treasury Bills		Certificates of Deposit		Total
Cash and cash equivalents	$	—	$	—	$	1.0	$	—	$	1.0
Marketable securities	10.5		16.3		4.1		0.9		31.8
Other assets	6.0		2.0		1.0		—		9.0




Total marketable debt securities	$	16.5	$	18.3	$	6.1	$	0.9	$	41.8

Varex Imaging Corp 10-K