Segment Information

12 Months Ended

Sep. 26, 2014

Segment Reporting [Abstract]

Segment Information

17. SEGMENT INFORMATION

During the second quarter of fiscal year 2014, the Company changed its organizational structure resulting in a change in operating and reportable segments. The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. The Imaging Components segment includes the Company’s X-ray imaging tubes and flat panel products (previously reported as “X-Ray Products” segment), as well as our security and inspection products (previously reported as “Security and Inspection Products” under the “Other” category). The Company’s GTC and VPT business are reflected in the “Other” category because these operating segments do not meet the criteria of 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. There was no change to the Company’s reporting units as a result of the change in operating segments.

Description of Segments

The Oncology Systems segment designs, manufactures, sells and services hardware and software products for treating cancer with radiotherapy, stereotactic radiotherapy, stereotactic body radiotherapy, stereotactic radiosurgery and brachytherapy. Products include linear accelerators, brachytherapy afterloaders, treatment simulation and verification equipment and accessories; as well as information management, treatment planning and image processing software. Oncology Systems’ products enable radiation oncology departments in hospitals and clinics to perform conventional radiotherapy treatments and offer advanced treatments such as fixed field intensity-modulated radiation therapy (“IMRT”), image-guided radiation therapy (“IGRT”), volumetric modulated arc therapy and stereotactic radiotherapy, 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 neurosurgeons to perform stereotactic radiosurgery. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices and cancer care clinics.

The Imaging Components segment designs, manufactures, sells and services X-ray imaging components for use in a range of applications, including radiographic or fluoroscopic imaging, mammography, special procedures, computed tomography and industrial applications. The Company’s X-ray imaging components are sold to large imaging system OEM customers that incorporate them into their medical diagnostic, dental, veterinary and industrial imaging systems. The Company sells X-ray tubes and flat panel digital image detectors for filmless X-ray imaging (commonly referred to as “flat panel detectors” or “digital image detectors”) to small OEM customers, independent service companies and directly to end-users for replacement purposes. The Imaging Components segment also designs, manufactures, sells and services Linatron^® X-ray accelerators, imaging processing software and image detection products for security and inspection purposes, such as cargo screening at ports and borders and nondestructive examination in a variety of applications. The Company generally sells security and inspection products to OEM customers who incorporate its products into their inspection systems, which are then sold to customs and other government agencies, as well as to commercial private parties in the casting, power, aerospace, chemical, petro-chemical and automotive industries for nondestructive product examination purposes.

The Company’s GTC and VPT business are reported together under the “Other” category.

The VPT business 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.

GTC develops technologies that enhance the Company’s current businesses or may lead to new business areas, including technology to improve radiation therapy and X-ray imaging, as well as other technology for a variety of applications, including security and cargo screening.

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.

Prior years’ amounts have been revised to conform to the current year’s presentation.

Segment Data

	Revenues						Operating Earnings(1)
	Fiscal Years						Fiscal Years
(In millions)	2014		2013		2012		2014			2013			2012
Oncology Systems	$	2,344.2	$	2,252.7	$	2,189.5	$	495.5		$	512.0		$	505.4
Imaging Components		660.2		641.9		580.4		169.9			165.6			142.5
Total reportable segments		3,004.4		2,894.6		2,769.9		665.4			677.6			647.9
Other		45.4		48.3		37.1		(52.7	)		(46.4	)		(44.2	)
Corporate		-		-		-		(41.5	)		(22.3	)		(9.6	)
Total company	$	3,049.8	$	2,942.9	$	2,807.0	$	571.2		$	608.9		$	594.1

⁽¹⁾ Operating earnings of reportable segments and Other include an allocation of corporate expenses based on a percentage of their sales^.

	Depreciation & Amortization						Total Assets
	Fiscal Years						Fiscal Years
(In millions)	2014		2013		2012		2014		2013		2012
Oncology Systems	$	24.8	$	21.0	$	22.9	$	1,314.1	$	1,217.0	$	1,220.1
Imaging Components		14.7		14.6		12.3		431.6		398.5		356.1
Total reportable segments		39.5		35.6		35.2		1,745.7		1,615.5		1,576.2
Other		1.0		1.4		2.0		278.6		278.1		221.5
Corporate		22.0		25.9		23.8		1,333.0		1,574.9		1,081.0
Total company	$	62.5	$	62.9	$	61.0	$	3,357.3	$	3,468.5	$	2,878.7

The reconciliation of segment operating results information to the Company’s earnings from operations before taxes was as follows:

	Fiscal Years
	2014			2013			2012
Oncology Systems	$	495.5		$	512.0		$	505.4
Imaging Components		169.9			165.6			142.5
Total reportable segments		665.4			677.6			647.9
Other		(52.7	)		(46.4	)		(44.2	)
Corporate		(41.5	)		(22.3	)		(9.6	)
Interest income, net		3.3			3.2			1.8
Total company	$	574.5		$	612.1		$	595.9

Geographic Information

	Revenues						Long-lived Assets
	Fiscal Years						Fiscal Years
(In millions)	2014		2013		2012		2014		2013		2012
United States	$	1,264.4	$	1,212.4	$	1,156.1	$	262.7	$	237.8	$	228.6
International		1,785.4		1,730.5		1,650.9		75.3		77.5		68.0
Total company	$	3,049.8	$	2,942.9	$	2,807.0	$	338.0	$	315.3	$	296.6

The Company operates various manufacturing and marketing operations outside the United States. Allocation between domestic and foreign revenues is based on final destination of products sold. Japan represented approximately 13% of the Company’s total revenues in fiscal year 2014. No single foreign country represented 10% or more of the Company’s total revenues in fiscal years 2013 and 2012, respectively. Intercompany revenues between geographic areas are accounted for at cost plus prevailing markups arrived at through negotiations between profit centers. Intercompany and intracompany profits are eliminated in consolidation.