SEGMENT INFORMATION

The Company has two reportable operating segments: Oncology Systems and Proton Solutions. 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. Products include linear accelerators, brachytherapy afterloaders, treatment accessories, and quality assurance software, information management, treatment planning and image processing, clinical knowledge exchange, patient care management, decision-making support and practice management 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 surgeons and radiation oncologists to perform stereotactic radiosurgery and by medical oncology departments to manage chemotherapy treatments. Oncology Systems’ customers worldwide include university research and community hospitals, private and governmental institutions, healthcare agencies, physicians’ offices and cancer care clinics.

The Proton Solutions segment 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.

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 and Proton 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, acquisition-related expenses and benefits. 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 operating results information for each reportable segment:



	Three Months Ended
(In millions)	December 28, 2018			December 29, 2017
Revenues
Oncology Systems	$	702.5		$	649.4
Proton Solutions	38.5			29.1
Total Company	$	741.0		$	678.5
Earnings before taxes
Oncology Systems	$	124.1		$	138.2
Proton Solutions	(8.8		)	(15.2		)
Total reportable segments	115.3			123.0
Unallocated corporate	(3.6		)	(1.4		)
Operating earnings	111.7			121.6
Interest income, net	2.7			1.1
Other income (expense), net	23.0			(0.2		)
Total Company	$	137.4		$	122.5

Disaggregation of Revenues

The Company disaggregates its revenues from contracts by major product categories and by geographic region 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 December 28, 2018
(In millions)	Oncology Systems		Proton Solutions		Total
Hardware	$	313.6	$	33.6	$	347.2
Software ⁽¹⁾	131.2		—		131.2
Service	257.7		4.9		262.6
Total Revenues	$	702.5	$	38.5	$	741.0



	Three Months Ended December 29, 2017
(In millions)	Oncology Systems		Proton Solutions		Total
Hardware	$	293.1	$	27.3	$	320.4
Software ⁽¹⁾	115.1		—		115.1
Service	241.2		1.8		243.0
Total Revenues	$	649.4	$	29.1	$	678.5


⁽¹⁾	Includes software support agreements that are recorded in revenues from service in the Condensed Consolidated Statements of Earnings (Loss).

Revenues by Geographical Region



	Three Months Ended December 28, 2018
(In millions)	Oncology Systems		Proton Solutions		Total
Americas	$	330.8	$	19.6	$	350.4
EMEA	234.5		16.5		251.0
APAC	137.2		2.4		139.6
Total Revenues	$	702.5	$	38.5	$	741.0

North America⁽¹⁾	$	309.1	$	19.6	$	328.7
International	393.4		18.9		412.3
Total Revenues	$	702.5	$	38.5	$	741.0



	Three Months Ended December 29, 2017
(In millions)	Oncology Systems		Proton Solutions		Total
Americas	$	337.4	$	19.3	$	356.7
EMEA	183.5		9.5		193.0
APAC	128.5		0.3		128.8
Total Revenues	$	649.4	$	29.1	$	678.5

North America⁽¹⁾	$	326.3	$	19.3	$	345.6
International	323.1		9.8		332.9
Total Revenues	$	649.4	$	29.1	$	678.5


⁽¹⁾	North America primarily includes United Statements and Canada.

Timing of Revenue Recognition



	Three Months Ended December 28, 2018
(In millions)	Products transferred at a point in time		Products and Services transferred over time		Total
Oncology Systems	$	366.6	$	335.9	$	702.5
Proton Solutions	—		38.5		38.5
Total Revenues	$	366.6	$	374.4	$	741.0



	Three Months Ended December 29, 2017
(In millions)	Products Transferred at a Point in Time		Products and Services Transferred Over Time		Total
Oncology Systems	$	338.3	$	311.1	$	649.4
Proton Solutions	—		29.1		29.1
Total Revenues	$	338.3	$	340.2	$	678.5