Segment and Geographic Information

6 Months Ended

Jul. 04, 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 Six Months Ended
	July 4, 2021		June 28, 2020		July 4, 2021		June 28, 2020
Americas	$	296.3	$	241.1	$	617.7	$	491.7
EMEA		67.8		51.0		136.3		109.6
Greater China		58.5		43.3		113.5		89.6
Net revenue of reportable segments		422.6		335.4		867.5		690.9
Other		69.9		55.2		131.8		107.6
Net revenue	$	492.5	$	390.5	$	999.3	$	798.5

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 Six Months Ended
	July 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
Americas	$	128.5		$	105.4		$	269.2		$	213.1
EMEA		13.0			8.9			30.5			20.6
Greater China		24.1			19.1			49.2			37.9
Other		23.1			18.1			42.5			33.3
Corporate(a)		(60.5	)		(50.6	)		(110.8	)		(101.9	)
Adjusted EBITDA	$	128.1		$	100.9		$	280.6		$	202.9

(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 loss to Adjusted EBITDA is as follows:

	Fiscal Quarter Ended						Fiscal Six Months Ended
	July 4, 2021			June 28, 2020			July 4, 2021			June 28, 2020
Net loss	$	(20.0	)	$	(41.3	)	$	(59.1	)	$	(142.5	)
Interest expense, net		33.0			47.5			76.4			99.7
Provision for income taxes		15.1			3.8			18.4			7.9
Depreciation and amortization		83.1			79.9			165.8			159.7
Stock-based compensation		11.0			2.2			14.5			3.8
Restructuring and severance-related costs		1.7			2.2			3.0			4.6
Tax indemnification income, net		(0.2	)		(2.4	)		(0.4	)		(4.9	)
Loss on extinguishment of debt		—			2.6			50.3			12.6
Unrealized foreign currency exchanges losses, net		—			3.0			—			52.3
Other adjustments		4.5			3.4			11.6			9.7
Adjusted EBITDA	$	128.1		$	100.9		$	280.6		$	202.9

For the fiscal quarter and six months ended June 28, 2020, unrealized foreign currency exchange losses, net are unrealized gains and losses resulting from 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 $35.8 million and $13.8 million in the fiscal quarter and six months ended July 4, 2021, respectively. 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 non-cash unrealized gains and losses resulting from the remeasurement of transactions denominated in foreign currencies from Adjusted EBITDA during the fiscal quarter and six months ended July 4, 2021 and onwards.