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Segment Information
12 Months Ended
Sep. 27, 2019
Segment Reporting [Abstract]  
Segment Information SEGMENT INFORMATION
The Company has two reportable operating segments: Oncology Systems and Proton Solutions. The Company's Interventional Solutions 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.
The Oncology Systems’ hardware products include linear accelerators, brachytherapy afterloaders, treatment accessories, artificial intelligence-powered adaptive delivery systems and quality assurance software. The Oncology Systems’ software solutions include treatment planning, informatics, clinical knowledge exchange, patient care management, practice management and decision support for comprehensive cancer clinics, radiotherapy centers and medical oncology practices.
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, and treat patients using brachytherapy techniques, which involve the introduction or temporary insertion of radioactive sources. The Oncology Systems' products are also used by surgeons and radiation oncologists to perform stereotactic radiosurgery and by medical oncology departments to manage patient treatments. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices, medical oncology practices, radiotherapy centers and cancer care clinics.
The Oncology Systems segment offers services ranging from hardware phone support, break/fix repair of linear accelerators, obsolescence protection of hardware, software support, software upgrades, hosting as a service, as well as clinical consulting services.

The Oncology Systems segment also provides clinical practice services that assist within the clinical workflow. These services focus on decision support and/or cancer care knowledge augmentation aimed at facilitating improved accessibility and affordability to care while maintaining a fundamental level of clinical quality. Further, the Company operates nine multi-disciplinary cancer centers and one specialty hospital in India and one multi-disciplinary cancer center in Sri Lanka.
The Proton Solutions segment develops, designs, manufactures, sells and services products and systems for delivering proton therapy, another form of external beam radiotherapy using proton beams, for the treatment of cancer.
The Other category primarily includes the Interventional Solutions business, which offers products for interventional oncology procedures and treatments, including cryoablation, microwave ablation and embolization. Interventional Solutions also provides software and remote services for post treatment dose calculation for Yttrium-90 microspheres used in selective internal radiation therapy. The Other category also includes assets related to the use of radiation in the heart and other forms of radiosurgery for cardiovascular disease, which were acquired in fiscal year 2019.
Accordingly, the following information is provided for purposes 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 Solutions. 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 consolidated operating earnings and included in the reconciliation below.
The following table summarizes select operating results information for each reportable segment:
 
 
Fiscal Years
(In millions)
 
2019
 
2018
 
2017
Revenues
 
 
 
 
 
 
Oncology Systems
 
$
3,061.8

 
$
2,770.2

 
$
2,436.8

Proton Solutions
 
143.9

 
148.9

 
182.5

Total reportable segments
 
3,205.7

 
2,919.1

 
2,619.3

Other
 
19.4

 

 

Total Company
 
$
3,225.1

 
$
2,919.1

 
$
2,619.3

Earnings from continuing operations before taxes
 
 
 
 
 
 
Oncology Systems
 
$
555.9

 
$
553.4

 
$
479.0

Proton Solutions
 
(97.3
)
 
(51.5
)
 
(95.7
)
Total reportable segments
 
458.6

 
501.9

 
383.3

Other
 
(25.8
)
 

 

Unallocated corporate
 
(46.6
)
 
(64.5
)
 
(85.5
)
Operating earnings
 
386.2

 
437.4

 
297.8

Interest income, net
 
6.3

 
10.5

 
2.9

Other income
 
28.3

 
4.2

 
2.4

Total Company
 
$
420.8

 
$
452.1

 
$
303.1


 

Disaggregation of Revenue
The Company disaggregates its revenues from contracts by major product categories and by geographic region for each of its reportable operating segments and the Other category, 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.
Total Revenues by Product Type
 
Fiscal Years
(In millions)
 
2019
 
2018
 
2017
Hardware
 
 
 
 
 
 
Oncology Systems
 
$
1,393.6

 
$
1,231.5

 
$
1,039.4

Proton Solutions
 
119.3

 
135.1

 
172.5

Other
 
19.4

 

 

Total Hardware
 
1,532.3

 
1,366.6

 
1,211.9

Software (1)
 
 
 
 
 
 
Oncology Systems
 
574.0

 
495.4

 
462.9

Proton Solutions
 
3.0

 
3.8

 

Total Software
 
577.0

 
499.2

 
462.9

Service
 
 
 
 
 
 
Oncology Systems
 
1,094.2

 
1,043.3

 
934.5

Proton Solutions
 
21.6

 
10.0

 
10.0

Total Service
 
1,115.8

 
1,053.3

 
944.5

Total Revenues
 
$
3,225.1

 
$
2,919.1

 
$
2,619.3

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

Total Revenues by Geographical Region
Fiscal Years
(In millions)
2019
 
2018
 
2017
Americas
 
 
 
 
 
Oncology Systems
$
1,451.3

 
$
1,351.3

 
$
1,256.8

Proton Solutions
70.0

 
85.6

 
87.8

Other
6.1

 

 

Total Americas
1,527.4

 
1,436.9

 
1,344.6

EMEA
 
 
 
 
 
Oncology Systems
1,000.9

 
883.2

 
691.1

Proton Solutions
66.3

 
59.6

 
68.1

Other
6.2

 

 

Total EMEA
1,073.4

 
942.8

 
759.2

APAC
 
 
 
 
 
Oncology Systems
609.6

 
535.7

 
488.9

Proton Solutions
7.6

 
3.7

 
26.6

Other
7.1

 

 

Total APAC
624.3

 
539.4

 
515.5

Total Revenues
$
3,225.1

 
$2,919.1
 
$2,619.3
North America (1)
 
 
 
 
 
Oncology Systems
$
1,349.2

 
$
1,261.6

 
$
1,180.0

Proton Solutions
70.0

 
85.6

 
87.8

Other
5.9

 

 

Total North America
1,425.1

 
1,347.2

 
1,267.8

International
 
 
 
 
 
Oncology Systems
1,712.6

 
1,508.6

 
1,256.8

Proton Solutions
73.9

 
63.3

 
94.7

Other
13.5

 

 

Total International
1,800.0

 
1,571.9

 
1,351.5

Total Revenues
$
3,225.1

 
$2,919.1
 
$2,619.3
(1) 
North America primarily includes the United States and Canada.

Total Revenues by Product Type
Fiscal Years
(In millions)
2019
 
2018
 
2017
Products Transferred at a point in time
 
 
 
 
 
Oncology Systems
$
1,642.3

 
$
1,431.0

 
$
1,221.5

Proton Solutions
3.0

 
3.8

 

Other
19.4

 

 

Total Products transferred at a point in time
1,664.7

 
1,434.8

 
1,221.5

Products and Services transferred over time
 
 
 
 
 
Oncology Systems
1,419.5

 
1,339.2

 
1,215.3

Proton Solutions
140.9

 
145.1

 
182.5

Other

 

 

Total Products and Services transferred over time
1,560.4

 
1,484.3

 
1,397.8

Total Revenues
$
3,225.1

 
$2,919.1
 
$2,619.3

Other Items
 
 
Depreciation & Amortization
 
Total Assets
 
 
Fiscal Years
 
Fiscal Years
(In millions)
 
2019
 
2018
 
2017
 
2019
 
2018
Oncology Systems
 
$
49.6

 
$
42.1

 
$
39.4

 
$
2,339.1

 
$
1,746.4

Proton Solutions
 
4.8

 
7.9

 
6.1

 
275.9

 
379.8

Total reportable segments
 
54.4

 
50.0

 
45.5

 
2,615.0

 
2,126.2

Other
 
14.8

 

 

 
307.8

 

Corporate
 
23.8

 
22.7

 
24.8

 
1,178.9

 
1,124.2

Discontinued operations
 

 

 
6.6

 

 
2.3

Total Company
 
$
93.0

 
$
72.7

 
$
76.9

 
$
4,101.7

 
$
3,252.7



Geographic Information
 
 
Revenues 
 
Property, plant and equipment, net
 
 
Fiscal Years
 
Fiscal Years
(In millions)
 
2019
 
2018
 
2017
 
2019
 
2018
United States
 
$
1,384.3

 
$
1,308.3

 
$
1,222.0

 
$
155.3

 
$
159.5

Other countries
 
1,840.8

 
1,610.8

 
1,397.3

 
156.2

 
115.1

Total Company
 
$
3,225.1

 
$
2,919.1

 
$
2,619.3

 
$
311.5

 
$
274.6


The Company operates various manufacturing and marketing operations outside the United States. Allocation between domestic and foreign revenues is based on the final destination of products sold. No country outside the United States represented 10% or more of the Company’s total revenues. In fiscal year 2019, India represented approximately 12% of total property, plant and equipment, net, and in fiscal years 2018 and 2017, no country outside the United States represented 10% or more of the Company's property, plant and equipment, net. Intercompany and intracompany profits are eliminated in consolidation.