SEGMENT INFORMATION

The Company has two reportable operating segments; (i) Medical and (ii) Industrial, which align with how its CEO views and measures the Company's business performance. The Company's CEO is the Chief Operating Decision Maker and allocates resources to and evaluates the financial performance of each operating segment primarily based on revenues and gross margin.

Description of Segments

The Medical segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography, radiation therapy and computer-aided detection. The Company provides a broad range of X-ray imaging components for Medical customers including X-ray tubes, digital detectors, high voltage connectors, image-processing software and workstations, computer-aided diagnostic software, collimators, automatic exposure control devices, generators, ionization chambers and buckys. The Company’s X-ray imaging components are primarily sold to imaging system OEM customers that incorporate them into their medical diagnostic, radiation therapy, dental, veterinary and industrial imaging systems. The Company also sells its X-ray imaging components to independent service companies, distributors and directly to end-users for replacement purposes.

The Industrial segment designs, manufactures, sells and services security and inspection products, which include Linatron X-ray accelerators, X-ray tubes, digital detectors, high voltage connectors, image processing software and image detection products for security and inspection purposes, such as cargo screening at ports and borders and nondestructive examination in a variety of applications. The Company generally sells its Industrial products to OEM customers that incorporate its products into their inspection systems.

Accordingly, the following information is provided for purposes of achieving an understanding of operations, but it may not be indicative of the financial results of the reported segments were they independent organizations. In addition, comparisons of the Company’s operations to similar operations of other companies may not be meaningful.

Information related to the Company’s segments is as follows:



	Three Months Ended
(In millions)	December 29, 2017			December 30, 2016
Revenues
Medical	$	139.2		$	131.7
Industrial	37.0			25.7
Total revenues	176.2			157.4
Gross margin
Medical	46.4			47.1
Industrial	15.1			11.7
Total gross margin	61.5			58.8
Total operating expenses	47.9			40.2
Interest and other income (expenses), net	(6.5		)	(0.3		)
Earnings before taxes	7.1			18.3
Taxes on earnings	(4.3		)	7.1
Net earnings	11.4			11.2
Less: Net earnings attributable to noncontrolling interests	0.1			0.1
Net earnings attributable to Varex	$	11.3		$	11.1

The following table summarizes the Company’s total assets by its reportable segments:



(In millions)	December 29, 2017		September 29, 2017
Identifiable assets
Medical	$	805.9	$	832.1
Industrial	214.2		208.0
Total reportable segments	$	1,020.1	$	1,040.1