The Company contributed $24.5 million for 45% ownership in Maverix Medical LLC, a new entity formed with KKR Comet to develop and acquire innovative technologies in the lung cancer space. This investment will be accounted for under the equity method.

The Company completed the sale of its SSI ultrasound imaging business to SSH Holdings Limited for $1.9 million in cash, following an agreement executed on September 29, 2023. The company recorded a charge of $51.7 million in Q4 2023 to write down the asset group to fair value less costs to sell.

As a result of a change in strategy for a certain business within Diagnostics, the Company determined certain fixed assets lives should be shortened and lease assets were impaired at the affected facilities. As such, the Company recorded accelerated depreciation of $7.2 million and a lease asset impairment charge of $12.5 million.

Breast Health product revenues increased 27.5% due to an increase in volumes of digital mammography systems, primarily 3D Dimensions systems. The increase in volume was primarily driven by the supply chain constraints in the prior year related to electronic components, primarily semiconductor chips.

The company is undertaking restructuring actions and cost management initiatives, including consolidating manufacturing operations, to mitigate the impact of declining revenue in certain segments.

The effective tax rate for the three months ended December 30, 2023 was a benefit of 28.9%, primarily due to a $107.2 million discrete tax benefit related to a worthless stock deduction on the investment in one of the Company's international subsidiaries.

The 10-Q mentions the ongoing and possible future effects of global challenges, including macroeconomic uncertainties, such as inflation, bank failures, rising interest rates, the Israel-Hamas and Ukraine-Russia wars, other economic disruptions and U.S. and global recession concerns, on our customers and suppliers and on our business, financial condition, results of operations and cash flows.

The report mentions the ongoing and possible future effects of supply chain constraints, including the availability of critical raw materials and components, including semiconductor chips, as well as cost inflation in materials, packaging and transportation.

A product liability complaint was filed against the Company in Massachusetts state court by a group of plaintiffs who claim they sustained injuries caused by the BioZorb 3D Bioabsorbable Marker, and additional complaints were subsequently filed alleging similar claims.

GYN Surgical product revenues increased modestly, but this was partially offset by a decrease in NovaSure devices, which we primarily attribute to an increase in the use of alternative treatments and competition.

Diagnostics' product costs as a percentage of revenue increased in the current quarter compared to the corresponding period in the prior year primarily due to lower sales of our SARS-CoV-2 assays, unfavorable manufacturing variances at a certain manufacturing facility, and lower ThinPrep Pap Test volumes which have higher margins.

Breast Health product revenues increased $50.2 million, or 27.5%, in the current quarter compared to the corresponding period in the prior year primarily due to an increase in volumes of our digital mammography systems, primarily 3D Dimensions systems and related workstation and workflow products, including software, an increase in Trident systems unit sales, and an increase in Affirm biopsy systems.

During the first quarter of fiscal 2024, as a result of a change in strategy for a certain business within Diagnostics, including the discontinuation of the sale of certain products and expected closure of facilities, the Company determined certain fixed assets lives should be shortened and lease assets were impaired at the affected facilities.

The cost of product revenues as a percentage of product revenues was 37.1% in the current quarter compared to 33.4% in the corresponding period in the prior year. Cost of product revenues as a percentage of revenue increased in the current quarter primarily due to a decrease in sales of our SARS-CoV-2 assays, which have higher gross margins compared to our other diagnostic products.

Service and other revenues gross margin increased to 49.8% in the current quarter compared to 44.4% in the corresponding period in the prior year. The increase in the current quarter was primarily due to a decrease in service department costs related to the extra week in the prior year period, a decrease in time and material billings, which have lower margins compared to our service contract business, and an increase in license revenue from the one-time $2.0 million milestone payment in the Surgical business in the current quarter.

During the first quarter of fiscal 2024, the Company assessed its only in-process research and development intangible asset from its Mobidiag Oy acquisition for impairment. The Company determined the fair value of this indefinite lived asset utilizing the DCF model and recorded a $4.3 million impairment charge.

Breast Health product revenues increased 27.5% due to an increase in volumes of digital mammography systems, primarily 3D Dimensions systems and related workstation and workflow products, including software.

On November 13, 2023, the Company entered into an agreement with KKR Comet, LLC, an affiliate of KKR & Co. Inc. (“KKR Comet”), to form a legal entity to develop and acquire innovative technologies and commercial operations within the lung cancer space.

The Board of Directors authorized the Company to repurchase up to $500 million of the Company's outstanding shares pursuant to an accelerated share repurchase (“ASR”) agreement. On November 15, 2023, the Company executed the ASR agreement with Goldman Sachs & Co. (“Goldman Sachs”) pursuant to which the Company agreed to repurchase $500 million of the Company's common stock.

In the first three months of fiscal 2024, our financing activities used cash of $943.8 million primarily due to $676.8 million for repurchases of our common stock, including a $500 million accelerated share repurchase program, $259.4 million for debt principal payments under our 2021 Credit Agreement, including a $250.0 million voluntary prepayment.

In the first three months of fiscal 2024, our investing activities used cash of $104.2 million primarily due to capital expenditures of $38.0 million, which primarily consisted of the placement of equipment under customer usage agreements and purchase of manufacturing equipment and to a lesser extent building improvements.

The 10-Q filing does not contain any specific discussion or disclosure of environmental, social, or governance (ESG) initiatives or performance metrics.

Diagnostics product revenues decreased $112.7 million, or 21.2%, in the current quarter compared to the corresponding period in the prior year primarily due to a decrease in Molecular Diagnostics revenues of $107.5 million and to a lesser extent, a decrease in Cytology & Perinatal revenue of $6.5 million, partially offset by an increase in Blood Screening of $1.2 million.

We also implemented price increases in Europe across multiple products and experienced an increase in revenue from international sales denominated in foreign currencies from the favorable foreign currency exchange impact of the weakened U.S. dollar against a number of currencies.

Interest income increased in the current quarter compared to the corresponding period in the prior year due to the increase in interest rates as the U.S. Federal Reserve had continually raised its Federal Funds Rate throughout our fiscal 2023 year, partially offset by lower average cash balances in the current quarter compared to the corresponding period in the prior year.