SEGMENT INFORMATION

9 Months Ended

Jun. 28, 2019

The Company has two reportable operating segments: Oncology Systems and Proton Solutions. The Company's Interventional Oncology business is reflected in the "Other" category because it does not meet the criteria for a reportable operating segment. The operating segments were determined based on how the Company’s Chief Executive Officer, its Chief Operating Decision Maker (“CODM”), views and evaluates the Company’s operations. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on operating earnings.

Description of Segments

The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with conventional radiation therapy, and advanced treatments such as fixed field intensity-modulated radiation therapy (“IMRT”), image-guided radiation therapy (“IGRT”), volumetric modulated arc therapy ("VMAT"), stereotactic radiosurgery (“SRS”), stereotactic body radiotherapy (“SBRT”) and brachytherapy as well as associated quality assurance equipment. Products include linear accelerators, brachytherapy afterloaders, treatment accessories, and quality assurance software, information management, treatment planning and image processing, clinical knowledge exchange, patient care management, decision-making support and practice management software. Oncology Systems’ products enable radiation oncology departments in hospitals and clinics to perform conventional radiotherapy treatments and offer advanced treatments such as IMRT, IGRT, VMAT, SRS and SBRT, as well as to treat patients using brachytherapy techniques, which involve temporarily implanting radioactive sources. The Company’s Oncology Systems products are also used by surgeons and radiation oncologists to perform stereotactic radiosurgery and by medical oncology departments to manage chemotherapy treatments. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices and cancer care clinics.

In addition to providing the products and services for oncology care described above, the Company offers treatment planning as a service and quality assurance as a service, which allows remote support and delivery of care in understaffed locations to utilize technology on a per patient basis. Further, the Company operates 11 healthcare facilities in India; comprised of one specialty hospital and ten cancer centers.

The Proton Solutions segment develops, designs, manufactures, sells and services products and systems for delivering proton therapy, a form of external beam radiotherapy using proton beams for the treatment of cancer.

The Other category includes the Interventional Oncology business, which offers products for minimally invasive interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolic beads.

The following information is provided for the purpose of achieving an understanding of operations but 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.

The Company allocates corporate costs to its operating segments based on the relative revenues of Oncology Systems, Proton Solutions and Interventional Oncology. The Company allocates these costs excluding certain corporate related costs, transactions or adjustments that the Company's CODM considers to be non-operational, such as restructuring and impairment charges, significant litigation charges or benefits and legal costs, and acquisition-related expenses. Although the Company excludes these amounts from segment operating earnings, they are included in the condensed consolidated operating earnings and included in the reconciliation below.

The following table summarizes select financial results for each reportable segment:



	Three Months Ended						Nine Months Ended
(In millions)	June 28, 2019			June 29, 2018			June 28, 2019			June 29, 2018
Revenues
Oncology Systems	$	792.9		$	667.2		$	2,242.2		$	2,014.6
Proton Solutions	30.9			41.9			102.0			102.9
Total reportable segments	823.8			709.1			2,344.2			2,117.5
Other	2.0			—			2.0			—
Total Company	$	825.8		$	709.1		$	2,346.2		$	2,117.5
Earnings before taxes
Oncology Systems	$	148.7		$	125.6		$	404.5		$	406.9
Proton Solutions	(62.1		)	(10.1		)	(90.9		)	(42.8		)
Total reportable segments	86.6			115.5			313.6			364.1
Other	(1.7		)	—			(1.7		)	—
Unallocated corporate	(31.0		)	(25.5		)	(36.5		)	(59.8		)
Operating earnings	53.9			90.0			275.4			304.3
Interest income, net	1.9			0.5			7.6			2.9
Other income, net	4.2			1.5			27.4			2.9
Total Company	$	60.0		$	92.0		$	310.4		$	310.1

Disaggregation of Revenues

The Company disaggregates its revenues from contracts by major product categories, geographic region, and by timing of revenue recognition for each of its reportable operating segments, as the Company believes this best depicts how the nature, amount, timing and uncertainty of revenues and cash flows are affected by economic factors. See details in the tables below.

Revenues by Product Type



	Three Months Ended June 28, 2019								Nine Months Ended June 28, 2019
(In millions)	Oncology Systems		Proton Solutions		Other		Total		Oncology Systems		Proton Solutions		Other		Total
Hardware	$	361.7	$	24.2	$	2.0	$	387.9	$	1,014.4	$	85.7	$	2.0	$	1,102.1
Software ⁽¹⁾	154.4		1.3		—		155.7		429.8		1.3		—		431.1
Service	276.8		5.4		—		282.2		798.0		15.0		—		813.0
Total Revenues	$	792.9	$	30.9	$	2.0	$	825.8	$	2,242.2	$	102.0	$	2.0	$	2,346.2



	Three Months Ended June 29, 2018						Nine Months Ended June 29, 2018
(In millions)	Oncology Systems		Proton Solutions		Total		Oncology Systems		Proton Solutions		Total
Hardware	$	276.5	$	38.1	$	314.6	$	881.2	$	95.5	$	976.7
Software ⁽¹⁾	125.1		—		125.1		366.9		—		366.9
Service	265.6		3.8		269.4		766.5		7.4		773.9
Total Revenues	$	667.2	$	41.9	$	709.1	$	2,014.6	$	102.9	$	2,117.5


⁽¹⁾	Includes software support agreements that are recorded in revenues from service, and software licenses that are recorded in revenues from product in the Condensed Consolidated Statements of Earnings.

Revenues by Geographical Region



	Three Months Ended June 28, 2019								Nine Months Ended June 28, 2019
(In millions)	Oncology Systems		Proton Solutions		Other		Total		Oncology Systems		Proton Solutions		Other		Total
Americas	$	385.6	$	14.8	$	0.8	$	401.2	$	1,073.5	$	48.6	$	0.8	$	1,122.9
EMEA	256.4		14.9		—		271.3		736.2		47.6		—		783.8
APAC	150.9		1.2		1.2		153.3		432.5		5.8		1.2		439.5
Total Revenues	$	792.9	$	30.9	$	2.0	$	825.8	$	2,242.2	$	102.0	$	2.0	$	2,346.2

North America⁽¹⁾	$	363.1	$	14.8	$	0.8	$	378.7	$	1,001.4	$	48.6	$	0.8	$	1,050.8
International	429.8		16.1		1.2		447.1		1,240.8		53.4		1.2		1,295.4
Total Revenues	$	792.9	$	30.9	$	2.0	$	825.8	$	2,242.2	$	102.0	$	2.0	$	2,346.2



	Three Months Ended June 29, 2018						Nine Months Ended June 29, 2018
(In millions)	Oncology Systems		Proton Solutions		Total		Oncology Systems		Proton Solutions		Total
Americas	$	323.2	$	19.4	$	342.6	$	981.8	$	57.7	$	1,039.5
EMEA	208.5		21.2		229.7		633.2		43.3		676.5
APAC	135.5		1.3		136.8		399.6		1.9		401.5
Total Revenues	$	667.2	$	41.9	$	709.1	$	2,014.6	$	102.9	$	2,117.5

North America⁽¹⁾	$	298.7	$	19.4	$	318.1	$	924.6	$	57.7	$	982.3
International	368.5		22.5		391.0		1,090.0		45.2		1,135.2
Total Revenues	$	667.2	$	41.9	$	709.1	$	2,014.6	$	102.9	$	2,117.5


⁽¹⁾	North America primarily includes United Statements and Canada.

Timing of Revenue Recognition



	Three Months Ended June 28, 2019								Nine Months Ended June 28, 2019
(In millions)	Oncology Systems		Proton Solutions		Other		Total		Oncology Systems		Proton Solutions		Other		Total
Products transferred at a point in time	$	433.8	$	1.3	$	2.0	$	437.1	$	1,203.0	$	1.3	$	2.0	$	1,206.3
Products and services transferred over time	359.1		29.6		—		388.7		1,039.2		100.7		—		1,139.9
Total Revenues	$	792.9	$	30.9	$	2.0	$	825.8	$	2,242.2	$	102.0	$	2.0	$	2,346.2



	Three Months Ended June 29, 2018						Nine Months Ended June 29, 2018
(In millions)	Oncology Systems		Proton Solutions		Total		Oncology Systems		Proton Solutions		Total
Products transferred at a point in time	$	326.9	$	—	$	326.9	$	1,028.9	$	—	$	1,028.9
Products and services transferred over time	340.3		41.9		382.2		985.7		102.9		1,088.6
Total Revenues	$	667.2	$	41.9	$	709.1	$	2,014.6	$	102.9	$	2,117.5