Segment Information

12 Months Ended

Sep. 30, 2016

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

The Company’s operations are grouped into two reportable operating segments: Oncology Systems and Imaging Components. 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.

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”), VMAT, stereotactic radiosurgery (“SRS”), stereotactic body radiotherapy(“SBRT”) 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 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 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, computer-aided diagnostics and industrial applications. The Company provides a broad range of X-ray imaging components including X-ray tubes, flat panel digital image detectors, high voltage connectors, image processing software and workstations, computer-aided diagnostic software, collimators and automatic exposure control devices. The Company’s X-ray imaging components are sold to imaging system OEM customers that incorporate them into their medical diagnostic, dental, veterinary and industrial imaging systems, to independent service companies and directly to end-users for replacement purposes. The Imaging Components segment also designs, manufactures, sells and services security and inspection products, which include 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.

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. Subsequent to fiscal year 2016, GTC was absorbed into primarily the Company's Oncology Systems and Imaging Components businesses and is no longer a separate business.

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.

Segment Data

	Revenues						Operating Earnings(1)
	Fiscal Years						Fiscal Years
(In millions)	2016		2015		2014		2016			2015			2014
Oncology Systems	$	2,457.1	$	2,344.0	$	2,344.2	$	550.5		$	485.4		$	495.5
Imaging Components	597.6		611.2		660.2		110.7			131.3			169.9
Total reportable segments	3,054.7		2,955.2		3,004.4		661.2			616.7			665.4
Other	163.1		143.9		45.4		(48.9		)	(31.2		)	(52.7		)
Corporate	—		—		—		(61.5		)	(36.5		)	(41.5		)
Total Company	$	3,217.8	$	3,099.1	$	3,049.8	$	550.8		$	549.0		$	571.2

⁽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)	2016		2015		2014		2016		2015		2014
Oncology Systems	$	33.8	$	27.2	$	24.8	$	1,491.2	$	1,412.5	$	1,314.1
Imaging Components	19.0		15.7		14.7		587.9		555.4		431.6
Total reportable segments	52.8		42.9		39.5		2,079.1		1,967.9		1,745.7
Other	7.4		4.9		1.0		369.9		296.2		278.6
Corporate	19.6		20.7		22.0		1,367.0		1,314.6		1,314.4
Total Company	$	79.8	$	68.5	$	62.5	$	3,816.0	$	3,578.7	$	3,338.7

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

	Fiscal Years
	2016			2015			2014
Oncology Systems	$	550.5		$	485.4		$	495.5
Imaging Components	110.7			131.3			169.9
Total reportable segments	661.2			616.7			665.4
Other	(48.9		)	(31.2		)	(52.7		)
Corporate	(61.5		)	(36.5		)	(41.5		)
Interest income, net	5.6			5.7			3.3
Total earnings before taxes	$	556.4		$	554.7		$	574.5

Geographic Information

	Revenues						Property, plant and equipment, net
	Fiscal Years						Fiscal Years
(In millions)	2016		2015		2014		2016		2015		2014
United States	$	1,352.8	$	1,418.3	$	1,290.1	$	286.7	$	292.6	$	262.7
International	1,865.0		1,680.8		1,759.7		92.5		86.6		75.3
Total Company	$	3,217.8	$	3,099.1	$	3,049.8	$	379.2	$	379.2	$	338.0

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. Japan represented approximately 11%, 11%, and 13% of the Company’s total revenues in fiscal years 2016, 2015 and 2014, respectively. Intercompany and intracompany profits are eliminated in consolidation.