SEGMENT AND ENTERPRISE-WIDE INFORMATION

3 Months Ended

Jul. 02, 2016

Segment Reporting [Abstract]

SEGMENT AND ENTERPRISE-WIDE INFORMATION

SEGMENT AND ENTERPRISE-WIDE INFORMATION

We determine our reportable segments by first identifying our operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. Our operating segments are based primarily on geography. North America Plasma is a separate operating segment with dedicated segment management due the size and scale of the plasma business. We aggregate components within an operating segment that have similar economic characteristics.

The Company’s reportable segments are as follows:

• Japan

• Europe, Middle East and Africa (collectively “EMEA”)

• North America Plasma

• All Other

The Company has aggregated the following two operating segments into the All Other reportable segment based upon their similar operational and economic characteristics, including similarity of operating margin:

• Americas Blood Center and Hospital

• Asia - Pacific

In periods prior to the fourth quarter of fiscal 2016, the Company believed a single reportable segment was consistent with its basic organizational structure and believed aggregation was consistent with its primary basis for decision making. As a result, prior year segment information has been restated to conform with the current reportable segments.

During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of All Other are now reported as components of EMEA. Accordingly, the prior year numbers have been updated to reflect this reclassification as well as other changes within the cost reporting structure that occurred in the first quarter of fiscal 2017. These changes did not have an impact on our ability to aggregate Americas Blood Center and Hospital with Asia - Pacific.

Management measures and evaluates the Company’s operating segments based on operating margin. Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include restructuring and restructuring related costs, deal amortization, and asset impairments. Although these amounts are excluded from segment operating income, as applicable, they are included in the reconciliations that follow. Management measures and evaluates the Company's net revenues and operating income on a constant currency basis, therefore segment information is presented on a constant currency basis.

Selected information by business segment is presented below:

	Three Months Ended
(In thousands)	July 2, 2016			June 27, 2015
Net revenues
Japan	$	14,566		$	17,595
EMEA	45,741			48,811
North America Plasma	73,475			64,443
All Other	78,020			80,219
Net revenues (constant currency)	211,802			211,068
Effect of exchange rates	(1,846		)	2,345
Net revenues (reported)	$	209,956		$	213,413

	Three Months Ended
(In thousands)	July 2, 2016			June 27, 2015
Segment operating income
Japan	$	6,121		$	7,682
EMEA	10,048			10,526
North America Plasma	27,277			26,156
All Other	25,636			28,635
Segment operating income (constant currency)	69,082			72,999
Corporate operating expenses (constant currency)	(48,451		)	(49,252		)
Non-GAAP operating income (constant currency)	20,631			23,747
Effect of exchange rates	(1,306		)	2,080
Non-GAAP operating income (reported)	19,325			25,827
Unallocated amounts
Restructuring and restructuring related costs	18,816			14,816
Deal amortization	7,075			7,405
Asset impairments	1,315			—
Operating (loss) income	$	(7,881	)	$	3,606

In connection with the global strategic review of our business portfolio, we organized our current products into four franchises for purposes of evaluating their growth potential: Plasma, Blood Center, Cell Processing and Hemostasis Management. Management reviews revenue trends based on these franchises.

Net revenues by franchise are as follows:

	Three Months Ended
(In thousands)	July 2, 2016		June 27, 2015		% Increase/ (Decrease)
Plasma	$	97,649	$	88,527	10.3	%
Blood Center	70,943		83,083		(14.6	)%
Cell Processing	26,076		27,813		(6.2	)%
Hemostasis Management	15,288		13,990		9.3	%
Net revenues	$	209,956	$	213,413	(1.6	)%

Net revenues generated in our principle operating regions on a reported basis are as follows:

	Three Months Ended
	July 2, 2016		June 27, 2015
United States	$	125,700	$	120,695
Japan	14,964		14,734
Europe	40,367		50,288
Asia	26,992		25,520
Other	1,933		2,176
Net revenues	$	209,956	$	213,413