SEGMENT INFORMATION

3 Months Ended

Jan. 01, 2021

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATIONThe 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 13 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 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 condensed consolidated operating earnings and included in the reconciliation below.

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 following table summarizes select financial results for each reportable segment:

	Three Months Ended
(In millions)	January 1, 2021		January 3, 2020
Revenues
Oncology Systems	$	744.5	$	782.4
Proton Solutions	25.6		27.6
Total reportable segments	770.1		810.0
Other	8.7		18.9
Total Company	$	778.8	$	828.9
Earnings before taxes
Oncology Systems	$	142.0	$	136.4
Proton Solutions	(10.5)		(14.3)
Total reportable segments	131.5		122.1
Other	(5.3)		2.8
Unallocated corporate	(9.0)		(14.9)
Operating earnings	117.2		110.0
Interest income (expense), net	1.5		(1.7)
Other income, net	5.7		4.4
Total Company	$	124.4	$	112.7

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
Total Revenues by Product Type	January 1,		January 3,
(In millions)	2021		2020
Hardware
Oncology Systems	$	279.8	$	320.0
Proton Solutions	15.6		20.1
Other	8.7		18.9
Total Hardware	304.1		359.0
Software (1)
Oncology Systems	142.8		148.8
Proton Solutions	1.4		—
Total Software	144.2		148.8
Service
Oncology Systems	321.9		313.6
Proton Solutions	8.6		7.5
Total Service	330.5		321.1
Total Revenues	$	778.8	$	828.9

(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
Total Revenues by Geographical Region	January 1,		January 3,
(In millions)	2021		2020
Americas
Oncology Systems	$	332.5	$	378.9
Proton Solutions	11.3		16.9
Other	5.2		6.4
Total Americas	349.0		402.2
EMEA
Oncology Systems	254.2		259.8
Proton Solutions	11.9		10.3
Other	1.5		2.8
Total EMEA	267.6		272.9
APAC
Oncology Systems	157.8		143.7
Proton Solutions	2.4		0.4
Other	2.0		9.7
Total APAC	162.2		153.8
Total Revenues	$	778.8	$	828.9
North America (1)
Oncology Systems	$	313.1	$	355.2
Proton Solutions	11.3		16.9
Other	5.2		6.4
Total North America	329.6		378.5
International
Oncology Systems	431.4		427.2
Proton Solutions	14.3		10.7
Other	3.5		12.5
Total International	449.2		450.4
Total Revenues	$	778.8	$	828.9

(1)North America primarily includes the United States and Canada.

Revenues by Timing of Revenue Recognition

	Three Months Ended
Timing of revenue recognition	January 1,		January 3,
(In millions)	2021		2020
Products transferred at a point in time
Oncology Systems	$	338.5	$	382.0
Proton Solutions	1.4		—
Other	8.7		18.9
Total products transferred at a point in time	348.6		400.9
Products and services transferred over time
Oncology Systems	406.0		400.4
Proton Solutions	24.2		27.6
Total products and services transferred over time	430.2		428.0
Total Revenues	$	778.8	$	828.9