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SEGMENT INFORMATION
6 Months Ended
Apr. 03, 2020
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 12 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.
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 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 and in process research and development. 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 EndedSix Months Ended
(In millions)April 3,
2020
March 29,
2019
April 3,
2020
March 29,
2019
Revenues    
Oncology Systems$760.5  $746.8  $1,542.9  $1,449.3  
Proton Solutions22.3  32.6  49.9  71.1  
Total reportable segments782.8  779.4  1,592.8  1,520.4  
Other 11.7  —  30.6  —  
Total Company$794.5  $779.4  $1,623.4  $1,520.4  
Earnings before taxes             
Oncology Systems$110.9  $131.7  $247.3  $255.8  
Proton Solutions(14.3) (20.0) (28.6) (28.8) 
Total reportable segments96.6  111.7  218.7  227.0  
Other(2.3) —  0.5  —  
Unallocated corporate (39.4) (1.9) (54.3) (5.5) 
Operating earnings54.9  109.8  164.9  221.5  
Interest income (expense), net(1.2) 3.0  (2.9) 5.7  
Other income (expense), net(0.9) 0.2  3.5  23.2  
Total Company$52.8  $113.0  $165.5  $250.4  
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 EndedSix Months Ended
Total Revenues by Product TypeApril 3,March 29,April 3,March 29,
(In millions)2020201920202019
Hardware
Oncology Systems$316.1  $339.1  $636.1  $652.7  
Proton Solutions13.1  27.9  33.2  61.5  
Other11.7  —  30.6  —  
Total Hardware340.9  367.0  699.9  714.2  
Software (1)
Oncology Systems153.2  144.2  302.0  275.4  
Proton Solutions1.5  —  1.5  —  
Total Software154.7  144.2  303.5  275.4  
Service
Oncology Systems291.2  263.5  604.8  521.2  
Proton Solutions7.7  4.7  15.2  9.6  
Total Service298.9  268.2  620.0  530.8  
Total Revenues$794.5  $779.4  $1,623.4  $1,520.4  
(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 EndedSix Months Ended
Total Revenues by Geographical RegionApril 3,March 29,April 3,March 29,
(In millions)2020201920202019
Americas
Oncology Systems$369.7  $357.1  $748.6  $687.9  
Proton Solutions11.4  14.2  28.3  33.8  
Other6.8  —  13.2  —  
Total Americas387.9  371.3  790.1  721.7  
EMEA
Oncology Systems240.9  245.3  500.7  479.8  
Proton Solutions9.8  16.2  20.1  32.7  
Other0.2  —  3.0  —  
Total EMEA250.9  261.5  523.8  512.5  
APAC
Oncology Systems149.9  144.4  293.6  281.6  
Proton Solutions1.1  2.2  1.5  4.6  
Other4.7  —  14.4  —  
Total APAC155.7  146.6  309.5  286.2  
Total Revenues$794.5  $779.4  $1,623.4  $1,520.4  
North America (1)
Oncology Systems$343.9  $329.2  $699.2  $638.3  
Proton Solutions11.5  14.2  28.3  33.8  
Other6.8  —  13.2  —  
Total North America362.2  343.4  740.7  672.1  
International
Oncology Systems416.6  417.6  843.7  811.0  
Proton Solutions10.8  18.4  21.6  37.3  
Other4.9  —  17.4  —  
Total International432.3  436.0  882.7  848.3  
Total Revenues$794.5  $779.4  $1,623.4  $1,520.4  
(1)North America primarily includes the United States and Canada.
Revenues by Timing of Revenue Recognition
Three Months EndedSix Months Ended
Timing of revenue recognitionApril 3,March 29,April 3,March 29,
(In millions)2020201920202019
Products transferred at a point in time
Oncology Systems$381.0  $402.6  $763.0  $769.2  
Proton Solutions1.5  —  1.5  —  
Other11.7  —  30.6  —  
Total products transferred at a point in time394.2  402.6  795.1  769.2  
Products and services transferred over time
Oncology Systems379.5  344.2  779.9  680.1  
Proton Solutions20.8  32.6  48.4  71.1  
Total products and services transferred over time400.3  376.8  828.3  751.2  
Total Revenues$794.5  $779.4  $1,623.4  $1,520.4