Segment and Geographic Information

9 Months Ended

Oct. 03, 2021

Segment Reporting [Abstract]

Segment and Geographic Information

(12) Segment and geographic information

The Company has three geographically-based reportable segments: Americas, Europe, the Middle East and Africa (“EMEA”), and Greater China. Although all three segments are engaged in the marketing, distribution and sale of diagnostic instruments and assays for hospitals, laboratories and/or blood and plasma centers worldwide, each region is managed separately to better align with the market dynamics of the specific geographic region. Japan and Asia Pacific (“ASPAC”) are immaterial operating segments not considered as reportable segments and are included in “Other.”

Net revenue by segment is as follows:

	Fiscal Quarter Ended				Fiscal Nine Months Ended
	October 3, 2021		September 27, 2020		October 3, 2021		September 27, 2020
Americas	$	306.5	$	264.2	$	924.2	$	755.8
EMEA		67.2		58.6		203.5		168.2
Greater China		85.6		72.7		199.1		162.3
Net revenue of reportable segments	$	459.3	$	395.5	$	1,326.8	$	1,086.3
Other		63.2		55.6		195.1		163.2
Net revenue	$	522.5	$	451.1	$	1,521.8	$	1,249.6

Effective January 4, 2021, the Company changed the basis for which it measures segment profit or loss from Management EBITDA to Adjusted EBITDA. The new basis has been retroactively applied to the prior year period presented. Adjusted EBITDA by segment is as follows:

	Fiscal Quarter Ended						Fiscal Nine Months Ended
	October 3, 2021			September 27, 2020			October 3, 2021			September 27, 2020
Americas	$	125.0		$	116.8		$	394.2		$	329.9
EMEA		17.2			10.7			47.7			31.4
Greater China		42.2			41.1			91.7			78.9
Other		19.0			16.7			61.4			49.9
Corporate(a)		(63.8	)		(65.9	)		(174.8	)		(167.8	)
Adjusted EBITDA	$	139.6		$	119.5		$	420.1		$	322.4

(a)Corporate primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards.

The reconciliation of Net income (loss) to Adjusted EBITDA is as follows:

	Fiscal Quarter Ended						Fiscal Nine Months Ended
	October 3, 2021			September 27, 2020			October 3, 2021			September 27, 2020
Net income (loss)	$	14.7		$	(28.5	)	$	(44.4	)	$	(171.0	)
Interest expense, net		36.1			48.9			112.5			148.6
Provision for (benefit from) income taxes		6.0			(10.3	)		24.4			(2.4	)
Depreciation and amortization		80.8			79.9			246.6			239.6
Stock-based compensation		5.0			2.4			19.5			6.2
Restructuring and severance-related costs		1.7			4.7			4.7			9.3
Arbitration award		(7.4	)		—			(7.4	)		—
Tax indemnification (income) expense, net		(0.2	)		16.5			(0.6	)		11.6
Loss on extinguishment of debt		—			—			50.3			12.6
Quotient upfront payment		—			7.5			—			7.5
Unrealized foreign currency exchange (gains) losses,      net		—			(6.3	)		—			46.0
Other adjustments		2.9			4.7			14.5			14.4
Adjusted EBITDA	$	139.6		$	119.5		$	420.1		$	322.4

For the fiscal quarter and nine months ended September 27, 2020, unrealized foreign currency exchange (gains) losses, net relate to the remeasurement of transactions denominated in foreign currencies, primarily intercompany loans. Beginning in fiscal 2021, the Company initiated programs to mitigate the impact of foreign currency exchange rate fluctuations from intercompany loans. The Company recognized unrealized foreign currency exchange net gains of $4.3 million in the fiscal quarter ended October 3, 2021 and $38.0 million in the fiscal nine months ended October 3, 2021. The Company intends for these programs to mitigate the impact of foreign currency exchange rate fluctuations related to intercompany loans in current and future periods. Therefore, effective January 4, 2021, the Company no longer excludes noncash unrealized gains and losses from Adjusted EBITDA.