Item 8.01 Other Events

As previously reported within Form 10-Q for the quarter ended July 3, 2020 filed on August 14, 2020 ("Form 10-Q") Varex Imaging Corporation (the "Company") experienced reduced demand in the Company's industrial segment and for certain higher end medical products that negatively impacted revenues and gross margin and as a result of the economic downturn resulting from COVID-19. The Company's Credit Agreement contains financial covenants, including certain leverage ratio covenants. The Company was in compliance with all financial covenants as of July 3, 2020. However, based on the Company's current forecasts, it was probable that the Company would be in violation of certain leverage ratio covenants contained in its Credit Agreement within the twelve-month period following the issuance of those financial statements, including as early as the end of the Company's fiscal year end 2020. Failure to comply with the covenants, if not amended or waived, would result in an event of default under the Credit Agreement and the acceleration of the outstanding balance of the loans thereunder and cross defaults and accelerations under other agreements. As a result, the Company's Form 10-Q reported that these events and conditions raise substantial doubt about the Company's ability to continue as a going concern within the twelve-month period following the issuance of those financial statements.

In Exhibit 99.1 to this Current Report on Form 8-K (i) the Company, in anticipation of certain financing transactions, updated Note 1 of its consolidated financial statements ("Financial Statements") in its Annual Report on Form 10-K for the year ended September 27, 2019 (the "2019 Form 10-K") to add an "Impact of COVID-19" discussion as previously disclosed in the Form 10-Q and updated Note 19 to add a discussion of its debt financing activities since December 20, 2019 and (ii) the Company's independent registered public accounting firm reissued its report contained in the 2019 Form 10-K to include a paragraph noting management's conclusion regarding the Company's ability to continue as a going concern. Other than as described in the preceding sentences, Exhibit 99.1 does not revise, modify, update or otherwise affect the 2019 Form 10-K, including the Financial Statements. This Form 8-K and Exhibit 99.1 should be read in conjunction with our other filings made with the SEC, including, and subsequent to, the date of the 2019 Form 10-K.

Item 9.01 Financial Statements and Exhibits

(d) Exhibits



Exhibit No. Description
23.1          Consent of PricewaterhouseCoopers LLP, independent registered public
            accounting firm
99.1          Item 8. Financial Statements and Supplementary Data
101         The following materials from Varex Imaging Corporation's Annual Report
            on Form 10-K for the year ended September 27, 2019, filed with the
            Securities and Exchange Commission on December 20, 2019, as revised by
            this Current Report on Form 8-K, formatted in Inline XBRL:
            (i)  the Consolidated Statements of Operations of the Company for
            the years ended September 27, 2019, September 28, 2018 and September
            29, 2017;
            (ii)  the Consolidated Statements of Comprehensive Income of the
            Company for the years ended September 27, 2019, September 28, 2018 and
            September 29, 2017;
            (iii)  the Consolidated Balance Sheets of the Company as of September
            27, 2019 and September 28, 2018;
            (iv)  the Consolidated Statements of Cash Flows of the Company for
            the years ended September 27, 2019, September 28, 2018 and September
            29, 2017;
            (v)  the Consolidated Statements of Changes in Shareholders' Equity of
            the Company for the years ended September 27, 2019, September 28, 2018
            and September 29, 2017; and
            (vi)  the Notes to the Consolidated Financial Statements.
104         Cover Page Interactive Data File (embedded within the Inline XBRL
            document)

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