Massachusetts | 04-2882273 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
400 Wood Road, Braintree, Massachusetts 02184-9114 (Address of principal executive offices) | (781) 848-7100 (Registrant’s telephone number) |
(Title of Each Class) | (Name of Exchange on Which Registered) | |
Common stock, $.01 par value per share | New York Stock Exchange |
Large accelerated filer þ | Accelerated filer o | ||||
Non-accelerated filer o | (Do not check if a smaller reporting company) | ||||
Smaller reporting company o | |||||
Emerging growth company o |
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• | Plasma |
• | Hospital |
• | Blood Center |
• | Japan |
• | EMEA |
• | North America Plasma |
• | All Other |
(In thousands) | April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||||
Japan | $ | 91,346 | $ | 129,551 | $ | 146,765 | |||||
EMEA | 259,863 | 249,504 | 305,540 | ||||||||
North America Plasma | 313,934 | 453,212 | 467,249 | ||||||||
All Other | 573,566 | 486,861 | 565,863 | ||||||||
Total assets | $ | 1,238,709 | $ | 1,319,128 | $ | 1,485,417 |
• | Plasma |
• | Hospital |
• | Blood Center |
Number of Facilities | ||
Japan | 10 | |
EMEA | 16 | |
North America Plasma | 3 | |
All Other | 31 | |
Total | 60 |
First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||||||
Fiscal year ended April 1, 2017: | |||||||||||||||
Market price of Common Stock: | |||||||||||||||
High | $ | 35.67 | $ | 38.06 | $ | 41.41 | $ | 41.65 | |||||||
Low | $ | 25.98 | $ | 29.08 | $ | 32.76 | $ | 36.44 | |||||||
Fiscal year ended April 2, 2016: | |||||||||||||||
Market price of Common Stock: | |||||||||||||||
High | $ | 45.32 | $ | 42.24 | $ | 34.63 | $ | 35.67 | |||||||
Low | $ | 39.69 | $ | 34.13 | $ | 29.70 | $ | 29.20 |
(In thousands, except per share and employee data) | 2017 | 2016 | 2015 | 2014 | 2013 | ||||||||||||||
Summary of Operations | |||||||||||||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 | $ | 938,509 | $ | 891,990 | |||||||||
Cost of goods sold | 507,622 | 502,918 | 475,955 | 470,144 | 463,859 | ||||||||||||||
Gross profit | 378,494 | 405,914 | 434,418 | 468,365 | 428,131 | ||||||||||||||
Operating expenses: | |||||||||||||||||||
Research and development | 37,556 | 44,965 | 54,187 | 54,200 | 44,394 | ||||||||||||||
Selling, general and administrative | 301,726 | 317,223 | 337,168 | 365,977 | 323,053 | ||||||||||||||
Impairment of assets | 58,593 | 92,395 | 5,441 | 1,711 | 4,247 | ||||||||||||||
Contingent consideration (income) expense | — | (4,727 | ) | (2,918 | ) | 45 | — | ||||||||||||
Total operating expenses | 397,875 | 449,856 | 393,878 | 421,933 | 371,694 | ||||||||||||||
Operating (loss) income | (19,381 | ) | (43,942 | ) | 40,540 | 46,432 | 56,437 | ||||||||||||
Other expense, net | (8,095 | ) | (9,474 | ) | (9,375 | ) | (10,031 | ) | (6,540 | ) | |||||||||
(Loss) income before (benefit) provision for income taxes | (27,476 | ) | (53,416 | ) | 31,165 | 36,401 | 49,897 | ||||||||||||
(Benefit) provision for income taxes | (1,208 | ) | 2,163 | 14,268 | 1,253 | 11,097 | |||||||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | $ | 35,148 | $ | 38,800 | |||||||
(Loss) income per share: | |||||||||||||||||||
Basic | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.33 | $ | 0.68 | $ | 0.76 | |||||||
Diluted | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.32 | $ | 0.67 | $ | 0.74 | |||||||
Weighted average number of shares | 51,524 | 50,910 | 51,533 | 51,611 | 51,349 | ||||||||||||||
Common stock equivalent shares | — | — | 556 | 766 | 910 | ||||||||||||||
Weighted average number of shares and common stock equivalent shares | 51,524 | 50,910 | 52,089 | 52,377 | 52,259 |
2017 | 2016 | 2015 | 2014 | 2013 | |||||||||||||||
Financial and Statistical Data: | |||||||||||||||||||
Working capital | $ | 298,850 | $ | 302,535 | $ | 368,985 | $ | 391,944 | $ | 403,153 | |||||||||
Current ratio | 2.4 | 2.6 | 3.0 | 2.8 | 3.2 | ||||||||||||||
Property, plant and equipment, net | $ | 323,862 | $ | 337,634 | $ | 321,948 | $ | 271,437 | $ | 256,953 | |||||||||
Capital expenditures | $ | 76,135 | $ | 102,405 | $ | 122,220 | $ | 73,648 | $ | 62,188 | |||||||||
Depreciation and amortization | $ | 89,733 | $ | 89,911 | $ | 86,053 | $ | 81,740 | $ | 65,481 | |||||||||
Total assets | $ | 1,238,709 | $ | 1,319,128 | $ | 1,485,417 | $ | 1,514,178 | $ | 1,461,917 | |||||||||
Total debt | $ | 314,647 | $ | 408,000 | $ | 427,891 | $ | 437,687 | $ | 480,094 | |||||||||
Stockholders’ equity | $ | 739,610 | $ | 721,565 | $ | 826,122 | $ | 837,888 | $ | 769,182 | |||||||||
Debt as a % of stockholders’ equity | 42.5 | % | 56.5 | % | 51.8 | % | 52.2 | % | 62.4 | % | |||||||||
Employees | 3,107 | 3,225 | 3,383 | 3,782 | 3,563 |
• | Biopharmaceutical companies are seeking more efficient production processes to meet growing demand for biopharmaceuticals without requiring an equivalent increase in plasma supply. |
• | Newly approved indications for, and the growing understanding and thus diagnosis of auto-immune diseases treated with plasma-derived therapies increase the demand for plasma, as do longer lifespans and a growing aging patient population. |
• | Several blood collectors supply additional plasma to fractionators, and thus plasma supply can rise overall but not directly impact our Plasma business unit. |
• | Geographical expansion of biopharmaceuticals also increases demand for plasma. |
(In thousands, except per share data) | 2017 | 2016 | 2015 | % Increase/(Decrease) 17 vs. 16 | % Increase/(Decrease) 16 vs. 15 | ||||||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 | (2.5 | )% | (0.2 | )% | |||||||
Gross profit | $ | 378,494 | $ | 405,914 | $ | 434,418 | (6.8 | )% | (6.6 | )% | |||||||
% of net revenues | 42.7 | % | 44.7 | % | 47.7 | % | |||||||||||
Operating expenses | $ | 397,875 | $ | 449,856 | $ | 393,878 | (11.6 | )% | 14.2 | % | |||||||
Operating (loss) income | $ | (19,381 | ) | $ | (43,942 | ) | $ | 40,540 | (55.9 | )% | n/m | ||||||
% of net revenues | (2.2 | )% | (4.8 | )% | 4.5 | % | |||||||||||
Other expense, net | $ | (8,095 | ) | $ | (9,474 | ) | $ | (9,375 | ) | (14.6 | )% | 1.1 | % | ||||
(Loss) income before taxes | $ | (27,476 | ) | $ | (53,416 | ) | $ | 31,165 | (48.6 | )% | n/m | ||||||
(Benefit) provision for income tax | $ | (1,208 | ) | $ | 2,163 | $ | 14,268 | n/m | (84.8 | )% | |||||||
% of pre-tax income | 4.4 | % | (4.0 | )% | 45.8 | % | |||||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | (52.7 | )% | n/m | ||||||
% of net revenues | (3.0 | )% | (6.1 | )% | 1.9 | % | |||||||||||
Net (loss) income per share - diluted | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.32 | (53.2 | )% | n/m |
Fiscal Year | Fiscal 2017 versus 2016 | Fiscal 2016 versus 2015 | |||||||||||||||||||||||||||
(In thousands) | 2017 | 2016 | 2015 | % Increase/(decrease) | Currency impact | Constant currency growth (1) | % Increase/(decrease) | Currency impact | Constant currency growth (1) | ||||||||||||||||||||
United States | $ | 522,686 | $ | 519,440 | $ | 494,788 | 0.6 | % | — | % | 0.6 | % | 5.0 | % | — | % | 5.0 | % | |||||||||||
International | 363,430 | 389,392 | 415,585 | (6.7 | )% | (3.1 | )% | (3.6 | )% | (6.3 | )% | (6.8 | )% | 0.5 | % | ||||||||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 | (2.5 | )% | (1.3 | )% | (1.2 | )% | (0.2 | )% | (3.1 | )% | 2.9 | % | |||||||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in sales between the current and prior year periods using a constant currency. See "Management's Use of Non-GAAP Measures." |
2017 | 2016 | 2015 | ||||||
United States | 59.0 | % | 57.2 | % | 54.4 | % | ||
Japan | 9.0 | % | 9.0 | % | 9.7 | % | ||
Europe | 18.7 | % | 20.7 | % | 23.7 | % | ||
Asia | 12.4 | % | 12.3 | % | 11.2 | % | ||
Other | 0.9 | % | 0.8 | % | 1.0 | % | ||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Fiscal Year | Fiscal 2017 versus 2016 | Fiscal 2016 versus 2015 | ||||||||||||||||||||||
(In thousands) | 2017 | 2016 | 2015 | % Increase/(decrease) | Currency impact | Constant currency growth (1) | % Increase/(decrease) | Currency impact | Constant currency growth (1) | |||||||||||||||
Plasma | $ | 410,727 | $ | 381,776 | $ | 352,911 | 7.6% | (1.0)% | 8.6% | 8.2% | (2.7)% | 10.9% | ||||||||||||
Blood Center | 303,890 | 355,108 | 386,147 | (14.4)% | (0.9)% | (13.5)% | (8.0)% | (3.2)% | (4.8)% | |||||||||||||||
Cell Processing | 105,376 | 112,483 | 120,434 | (6.3)% | (2.5)% | (3.8)% | (6.6)% | (4.4)% | (2.2)% | |||||||||||||||
Hemostasis Management | 66,123 | 59,465 | 50,881 | 11.2% | (2.6)% | 13.8% | 16.9% | (1.8)% | 18.7% | |||||||||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 | (2.5)% | (1.3)% | (1.2)% | (0.2)% | (3.1)% | 2.9% | ||||||||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in sales between the current and prior year periods using a constant currency. See "Management's Use of Non-GAAP Measures." |
(In thousands) | 2017 | 2016 | 2015 | % Increase/(Decrease) 17 vs. 16 | % Increase/(Decrease) 16 vs. 15 | ||||||||||||
Gross profit | $ | 378,494 | $ | 405,914 | $ | 434,418 | (6.8 | )% | (6.6 | )% | |||||||
% of net revenues | 42.7 | % | 44.7 | % | 47.7 | % |
(In thousands) | 2017 | 2016 | 2015 | % Increase/(Decrease) 17 vs. 16 | % Increase/(Decrease) 16 vs. 15 | ||||||||||||
Research and development | $ | 37,556 | $ | 44,965 | $ | 54,187 | (16.5 | )% | (17.0 | )% | |||||||
% of net revenues | 4.2 | % | 4.9 | % | 6.0 | % | |||||||||||
Selling, general and administrative | $ | 301,726 | $ | 317,223 | $ | 337,168 | (4.9 | )% | (5.9 | )% | |||||||
% of net revenues | 34.1 | % | 34.9 | % | 37.0 | % | |||||||||||
Impairment of assets | $ | 58,593 | $ | 92,395 | $ | 5,441 | (36.6 | )% | n/m | ||||||||
% of net revenues | 6.6 | % | 10.2 | % | 0.6 | % | |||||||||||
Contingent consideration income | $ | — | $ | (4,727 | ) | $ | (2,918 | ) | (100.0 | )% | 62.0 | % | |||||
% of net revenues | — | % | (0.5 | )% | (0.3 | )% | |||||||||||
Total operating expenses | $ | 397,875 | $ | 449,856 | $ | 393,878 | (11.6 | )% | 14.2 | % | |||||||
% of net revenues | 44.9 | % | 49.5 | % | 43.3 | % |
2017 | 2016 | 2015 | % Increase/(Decrease) 17 vs. 16 | % Increase/(Decrease) 16 vs. 15 | ||||||||||
Reported income tax rate | 4.4 | % | (4.0 | )% | 45.8 | % | 8.4 | % | (49.8 | )% |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Cash and cash equivalents | $ | 139,564 | $ | 115,123 | |||
Working capital | $ | 298,850 | $ | 302,535 | |||
Current ratio | 2.4 | 2.6 | |||||
Net debt position(1) | $ | (175,083 | ) | $ | (292,877 | ) | |
Days sales outstanding (DSO) | 60 | 58 | |||||
Disposables finished goods inventory turnover | 4.2 | 4.6 | |||||
(1)Net debt position is the sum of cash and cash equivalents less total debt. |
(In thousands) | 2017 | 2016 | 2015 | Increase/(Decrease) 17 vs. 16 | Increase/(Decrease) 16 vs. 15 | ||||||||||||||
Net cash provided by (used in): | |||||||||||||||||||
Operating activities | $ | 159,738 | $ | 121,865 | $ | 127,178 | $ | 37,873 | $ | (5,313 | ) | ||||||||
Investing activities | (73,313 | ) | (104,768 | ) | (121,768 | ) | (31,455 | ) | (17,000 | ) | |||||||||
Financing activities | (60,413 | ) | (62,624 | ) | (33,160 | ) | (2,211 | ) | 29,464 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents(1) | (1,571 | ) | (12 | ) | (4,057 | ) | (1,559 | ) | 4,045 | ||||||||||
Net increase (decrease) in cash and cash equivalents | $ | 24,441 | $ | (45,539 | ) | $ | (31,807 | ) | |||||||||||
(1)The balance sheet is affected by spot exchange rates used to translate local currency amounts into U.S. dollars. In accordance with U.S. GAAP, we have eliminated the effect of foreign currency throughout our cash flow statement, except for its effect on our cash and cash equivalents. |
Payments Due by Period | |||||||||||||||||||
(In thousands) | Total | Less than 1 year | 1-3 years | 3-5 years | More than 5 years | ||||||||||||||
Debt | $ | 314,648 | $ | 61,022 | $ | 253,591 | $ | 35 | $ | — | |||||||||
Operating leases | 19,546 | 4,298 | 4,872 | 3,345 | 7,031 | ||||||||||||||
Purchase commitments(1) | 105,004 | 100,295 | 4,709 | — | — | ||||||||||||||
Expected retirement plan benefit payments | 14,138 | 1,396 | 2,845 | 3,028 | 6,869 | ||||||||||||||
Total contractual obligations | $ | 453,336 | $ | 167,011 | $ | 266,017 | $ | 6,408 | $ | 13,900 |
(1) Includes amounts we are committed to spend on purchase orders entered in the normal course of business for capital equipment and for the purpose of manufacturing our products including contract manufacturers, specifically JMS Co. Ltd., Kawasumi Laboratories and Sanmina Corporation for the manufacture of certain disposable products and equipment. The majority of our operating expense spending does not require any advance commitment. |
Year Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 | |||||
Cost of goods sold | 507,622 | 502,918 | 475,955 | ||||||||
Gross profit | 378,494 | 405,914 | 434,418 | ||||||||
Operating expenses: | |||||||||||
Research and development | 37,556 | 44,965 | 54,187 | ||||||||
Selling, general and administrative | 301,726 | 317,223 | 337,168 | ||||||||
Impairment of assets | 58,593 | 92,395 | 5,441 | ||||||||
Contingent consideration income | — | (4,727 | ) | (2,918 | ) | ||||||
Total operating expenses | 397,875 | 449,856 | 393,878 | ||||||||
Operating (loss) income | (19,381 | ) | (43,942 | ) | 40,540 | ||||||
Other expense, net | (8,095 | ) | (9,474 | ) | (9,375 | ) | |||||
(Loss) income before (benefit) provision for income taxes | (27,476 | ) | (53,416 | ) | 31,165 | ||||||
(Benefit) provision for income taxes | (1,208 | ) | 2,163 | 14,268 | |||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | |||
Net (loss) income per share - basic | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.33 | |||
Net (loss) income per share - diluted | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.32 | |||
Weighted average shares outstanding | |||||||||||
Basic | 51,524 | 50,910 | 51,533 | ||||||||
Diluted | 51,524 | 50,910 | 52,089 |
Year Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | |||
Other comprehensive income (loss): | |||||||||||
Impact of defined benefit plans, net of tax | 5,220 | 1,431 | (4,331 | ) | |||||||
Foreign currency translation adjustment | (7,336 | ) | (1,987 | ) | (23,710 | ) | |||||
Unrealized (loss) gain on cash flow hedges, net of tax | (364 | ) | (3,938 | ) | 11,371 | ||||||
Reclassifications into earnings of cash flow hedge losses (gains), net of tax | 4,647 | (8,822 | ) | (6,464 | ) | ||||||
Other comprehensive income (loss) | 2,167 | (13,316 | ) | (23,134 | ) | ||||||
Comprehensive loss | $ | (24,101 | ) | $ | (68,895 | ) | $ | (6,237 | ) |
April 1, 2017 | April 2, 2016 | ||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 139,564 | $ | 115,123 | |||
Accounts receivable, less allowance of $2,184 at April 1, 2017 and $2,253 at April 2, 2016 | 152,683 | 157,093 | |||||
Inventories, net | 176,929 | 187,028 | |||||
Prepaid expenses and other current assets | 40,853 | 28,842 | |||||
Total current assets | 510,029 | 488,086 | |||||
Property, plant and equipment, net | 323,862 | 337,634 | |||||
Intangible assets, less accumulated amortization of $215,772 at April 1, 2017 and $190,816 at April 2, 2016 | 177,540 | 204,458 | |||||
Goodwill | 210,841 | 267,840 | |||||
Deferred tax asset, long term | 3,988 | 7,055 | |||||
Other long-term assets | 12,449 | 14,055 | |||||
Total assets | $ | 1,238,709 | $ | 1,319,128 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Notes payable and current maturities of long-term debt | $ | 61,022 | $ | 43,471 | |||
Accounts payable | 42,973 | 39,674 | |||||
Accrued payroll and related costs | 43,534 | 35,798 | |||||
Other current liabilities | 63,650 | 66,608 | |||||
Total current liabilities | 211,179 | 185,551 | |||||
Long-term debt, net of current maturities | 253,625 | 364,529 | |||||
Long-term deferred tax liability | 12,114 | 21,377 | |||||
Other long-term liabilities | 22,181 | 26,106 | |||||
Stockholders’ equity: | |||||||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 52,255,495 shares at April 1, 2017 and 50,932,348 shares at April 2, 2016 | 523 | 509 | |||||
Additional paid-in capital | 482,044 | 439,912 | |||||
Retained earnings | 289,916 | 316,184 | |||||
Accumulated other comprehensive loss | (32,873 | ) | (35,040 | ) | |||
Total stockholders’ equity | 739,610 | 721,565 | |||||
Total liabilities and stockholders’ equity | $ | 1,238,709 | $ | 1,319,128 |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total Stockholders’ Equity | ||||||||||||||||||
Shares | Par Value | |||||||||||||||||||||
Balance, March 29, 2014 | 52,041 | $ | 520 | $ | 402,611 | $ | 433,347 | $ | 1,410 | $ | 837,888 | |||||||||||
Employee stock purchase plan | 183 | 2 | 4,761 | — | — | 4,763 | ||||||||||||||||
Exercise of stock options and related tax benefit | 500 | 5 | 14,640 | — | — | 14,645 | ||||||||||||||||
Shares repurchased | (1,174 | ) | (11 | ) | (9,143 | ) | (29,879 | ) | — | (39,033 | ) | |||||||||||
Issuance of restricted stock, net of cancellations | 121 | 1 | — | — | — | 1 | ||||||||||||||||
Stock-based compensation expense | — | — | 14,095 | — | — | 14,095 | ||||||||||||||||
Net income | — | — | — | 16,897 | — | 16,897 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | (23,134 | ) | (23,134 | ) | ||||||||||||||
Balance, March 28, 2015 | 51,671 | $ | 517 | $ | 426,964 | $ | 420,365 | $ | (21,724 | ) | $ | 826,122 | ||||||||||
Employee stock purchase plan | 145 | 1 | 4,340 | — | — | 4,341 | ||||||||||||||||
Exercise of stock options | 492 | 6 | 14,026 | — | — | 14,032 | ||||||||||||||||
Shares repurchased | (1,488 | ) | (15 | ) | (12,367 | ) | (48,602 | ) | — | (60,984 | ) | |||||||||||
Issuance of restricted stock, net of cancellations | 112 | — | — | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | 6,949 | — | — | 6,949 | ||||||||||||||||
Net loss | — | — | — | (55,579 | ) | — | (55,579 | ) | ||||||||||||||
Other comprehensive loss | — | — | — | — | (13,316 | ) | (13,316 | ) | ||||||||||||||
Balance, April 2, 2016 | 50,932 | $ | 509 | $ | 439,912 | $ | 316,184 | $ | (35,040 | ) | $ | 721,565 | ||||||||||
Employee stock purchase plan | 141 | 2 | 3,557 | — | — | 3,559 | ||||||||||||||||
Exercise of stock options | 1,048 | 12 | 29,425 | — | — | 29,437 | ||||||||||||||||
Issuance of restricted stock, net of cancellations | 134 | — | — | — | — | — | ||||||||||||||||
Stock-based compensation expense | — | — | 9,150 | — | — | 9,150 | ||||||||||||||||
Net loss | — | — | — | (26,268 | ) | — | (26,268 | ) | ||||||||||||||
Other comprehensive income | — | — | — | — | 2,167 | 2,167 | ||||||||||||||||
Balance, April 1, 2017 | 52,255 | $ | 523 | $ | 482,044 | $ | 289,916 | $ | (32,873 | ) | $ | 739,610 |
Year Ended | |||||||||||
April 1, 2017 | April 2, 2016 | March 28, 2015 | |||||||||
Cash Flows from Operating Activities: | |||||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | |||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Non-cash items: | |||||||||||
Depreciation and amortization | 89,733 | 89,911 | 86,053 | ||||||||
Impairment of assets | 75,348 | 101,243 | 5,877 | ||||||||
Stock-based compensation expense | 9,150 | 6,949 | 14,095 | ||||||||
Deferred tax (benefit) expense | (6,800 | ) | (1,038 | ) | 4,230 | ||||||
Unrealized loss (gain) from hedging activities | 517 | (2,645 | ) | 1,558 | |||||||
Changes in fair value of contingent consideration | — | (4,727 | ) | (2,918 | ) | ||||||
Provision for losses on accounts receivable and inventory | 11,381 | 13,053 | 4,972 | ||||||||
Other non-cash operating activities | 860 | 899 | 1,055 | ||||||||
Change in operating assets and liabilities: | |||||||||||
Change in accounts receivable | 3,155 | (10,328 | ) | 8,446 | |||||||
Change in inventories | (1,552 | ) | 11,896 | (21,515 | ) | ||||||
Change in prepaid income taxes | 1,395 | (651 | ) | 10,662 | |||||||
Change in other assets and other liabilities | (18,253 | ) | 3,121 | (8,013 | ) | ||||||
Tax benefit of exercise of stock options | — | — | 3,786 | ||||||||
Change in accounts payable and accrued expenses | 21,072 | (30,239 | ) | 1,993 | |||||||
Net cash provided by operating activities | 159,738 | 121,865 | 127,178 | ||||||||
Cash Flows from Investing Activities: | |||||||||||
Capital expenditures | (76,135 | ) | (102,405 | ) | (122,220 | ) | |||||
Proceeds from sale of property, plant and equipment | 2,822 | 637 | 452 | ||||||||
Other acquisitions and investments | — | (3,000 | ) | — | |||||||
Net cash used in investing activities | (73,313 | ) | (104,768 | ) | (121,768 | ) | |||||
Cash Flows from Financing Activities: | |||||||||||
Payments on long-term real estate mortgage | — | (943 | ) | (1,048 | ) | ||||||
Net (decrease) increase in short-term loans | (50,727 | ) | 2,272 | 843 | |||||||
Repayment of term loan borrowings | (42,683 | ) | (21,342 | ) | (8,531 | ) | |||||
Proceeds from employee stock purchase plan | 3,560 | 4,341 | 4,763 | ||||||||
Proceeds from exercise of stock options | 29,437 | 14,032 | 9,290 | ||||||||
Share repurchases | — | (60,984 | ) | (39,033 | ) | ||||||
Other financing activities | — | — | 556 | ||||||||
Net cash used in financing activities | (60,413 | ) | (62,624 | ) | (33,160 | ) | |||||
Effect of exchange rates on cash and cash equivalents | (1,571 | ) | (12 | ) | (4,057 | ) | |||||
Net Change in Cash and Cash Equivalents | 24,441 | (45,539 | ) | (31,807 | ) | ||||||
Cash and Cash Equivalents at Beginning of Year | 115,123 | 160,662 | 192,469 | ||||||||
Cash and Cash Equivalents at End of Year | $ | 139,564 | $ | 115,123 | $ | 160,662 | |||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Interest paid | $ | 7,850 | $ | 8,511 | $ | 8,497 | |||||
Income taxes paid | $ | 6,957 | $ | 7,829 | $ | 11,211 | |||||
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ | 6,255 | $ | 9,663 | $ | 7,458 |
Asset Classification | Estimated Useful Lives | |
Building | 30-40 Years | |
Building improvements | 5-20 Years | |
Plant equipment and machinery | 3-15 Years | |
Office equipment and information technology | 2-10 Years | |
Haemonetics equipment | 3-7 Years |
• | Purchase and consumption of a certain level of disposable products |
• | Payment of monthly rental fees |
• | An asset utilization performance metric, such as performing a minimum level of procedures per month per device |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
VAT liabilities | $ | 4,051 | $ | 1,289 | |||
Forward contracts | 966 | 4,210 | |||||
Deferred revenue | 26,485 | 27,053 | |||||
Accrued taxes | 4,407 | 3,876 | |||||
All other | 27,741 | 30,180 | |||||
Total | $ | 63,650 | $ | 66,608 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Unfunded pension liability | 14,060 | 18,067 | |||||
Unrecognized tax benefit | 1,627 | 2,283 | |||||
All other | 6,494 | 5,756 | |||||
Total | $ | 22,181 | $ | 26,106 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Warranty accrual as of the beginning of the year | $ | 420 | $ | 531 | |||
Warranty provision | 400 | 948 | |||||
Warranty spending | (644 | ) | (1,059 | ) | |||
Warranty accrual as of the end of the year | $ | 176 | $ | 420 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Raw materials | $ | 52,052 | $ | 62,062 | |||
Work-in-process | 10,400 | 13,180 | |||||
Finished goods | 114,477 | 111,786 | |||||
Total Inventories | $ | 176,929 | $ | 187,028 |
(In thousands) | Japan | EMEA | North America Plasma | All Other | Total | ||||||||||||||
Carrying amount as of March 28, 2015 | $ | 24,899 | $ | 72,695 | $ | 26,415 | $ | 210,301 | $ | 334,310 | |||||||||
Impairment charge | — | (66,305 | ) | — | — | (66,305 | ) | ||||||||||||
Transfer of goodwill between segments | — | (6,390 | ) | — | 6,390 | — | |||||||||||||
Currency translation | (16 | ) | — | — | (149 | ) | (165 | ) | |||||||||||
Carrying amount as of April 2, 2016 | $ | 24,883 | $ | — | $ | 26,415 | $ | 216,542 | $ | 267,840 | |||||||||
Impairment charge | — | — | — | (56,989 | ) | (56,989 | ) | ||||||||||||
Transfer of goodwill between segments | — | 20,545 | — | (20,545 | ) | — | |||||||||||||
Currency translation | (3 | ) | (2 | ) | — | (5 | ) | (10 | ) | ||||||||||
Carrying amount as of April 1, 2017 | $ | 24,880 | $ | 20,543 | $ | 26,415 | $ | 139,003 | $ | 210,841 |
(In thousands) | Gross Carrying Amount | Accumulated Amortization(1) | Net | ||||||||
As of April 1, 2017 | |||||||||||
Amortizable: | |||||||||||
Patents | $ | 9,183 | $ | 8,043 | $ | 1,140 | |||||
Capitalized software | 49,948 | 21,563 | 28,385 | ||||||||
Other developed technology | 117,712 | 72,594 | 45,118 | ||||||||
Customer contracts and related relationships | 194,876 | 108,073 | 86,803 | ||||||||
Trade names | 7,017 | 5,499 | 1,518 | ||||||||
Total | $ | 378,736 | $ | 215,772 | $ | 162,964 | |||||
Non-amortizable: | |||||||||||
In-process software development | $ | 12,743 | |||||||||
In-process patents | 1,833 | ||||||||||
Total | $ | 14,576 |
(In thousands) | Gross Carrying Amount | Accumulated Amortization(1) | Net | ||||||||
As of April 2, 2016 | |||||||||||
Amortizable: | |||||||||||
Patents | $ | 8,545 | $ | 7,542 | $ | 1,003 | |||||
Capitalized software | 40,488 | 14,791 | 25,697 | ||||||||
Other developed technology | 126,142 | 73,475 | 52,667 | ||||||||
Customer contracts and related relationships | 196,085 | 89,804 | 106,281 | ||||||||
Trade names | 7,083 | 5,204 | 1,879 | ||||||||
Total | $ | 378,343 | $ | 190,816 | $ | 187,527 | |||||
Non-amortizable: | |||||||||||
In-process software development | $ | 14,427 | |||||||||
In-process patents | 2,504 | ||||||||||
Total | $ | 16,931 | |||||||||
(1)Includes impairment of SOLX and other intangible assets, as discussed above. |
(In thousands) | ||||
Fiscal 2018 | $ | 31,495 | ||
Fiscal 2019 | $ | 30,089 | ||
Fiscal 2020 | $ | 28,091 | ||
Fiscal 2021 | $ | 26,190 | ||
Fiscal 2022 | $ | 25,485 |
Derivative Instruments | Amount of Gain (Loss) Recognized in Accumulated Other Comprehensive Loss | Amount of Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings | Location in Consolidated Statements of (Loss) Income and Comprehensive Loss | Amount of Gain Excluded from Effectiveness Testing (*) | Location in Consolidated Statements of (Loss) Income and Comprehensive Loss | |||||||||||
(In thousands) | ||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | (524 | ) | $ | (4,647 | ) | Net revenues, COGS, and SG&A | $ | 636 | Other expense, net | ||||||
Non-designated foreign currency hedge contracts | — | — | $ | 221 | Other expense, net | |||||||||||
Designated interest rate swaps, net of tax | $ | 160 | Other expense, net | $ | — | |||||||||||
(*) We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. |
(In thousands) | Location in Balance Sheet | April 1, 2017 | April 2, 2016 | ||||||
Derivative Assets: | |||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 1,645 | $ | 335 | ||||
Non-designated foreign currency hedge contracts | Other current assets | 218 | 92 | ||||||
Designated interest rate swaps | Other current assets | 64 | — | ||||||
$ | 1,927 | $ | 427 | ||||||
Derivative Liabilities: | |||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 894 | $ | 3,910 | ||||
Non-designated foreign currency hedge contracts | Other current liabilities | $ | 72 | $ | 146 | ||||
Designated interest rate swaps | Other current liabilities | — | 154 | ||||||
$ | 966 | $ | 4,210 |
• | Level 1 — Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. |
• | Level 2 — Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. |
• | Level 3 — Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. |
As of April 1, 2017 | Level 1 | Level 2 | Total | ||||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Money market funds | $ | 80,676 | $ | — | $ | 80,676 | |||||
Designated foreign currency hedge contracts | — | 1,645 | 1,645 | ||||||||
Non-designated foreign currency hedge contracts | — | 218 | 218 | ||||||||
Designated interest rate swaps | — | 64 | 64 | ||||||||
$ | 80,676 | $ | 1,927 | $ | 82,603 | ||||||
Liabilities | |||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 894 | $ | 894 | |||||
Non-designated foreign currency hedge contracts | $ | — | $ | 72 | $ | 72 | |||||
$ | — | $ | 966 | $ | 966 |
As of April 2, 2016 | Level 1 | Level 2 | Total | ||||||||
(In thousands) | |||||||||||
Assets | |||||||||||
Money market funds | $ | 72,491 | $ | — | $ | 72,491 | |||||
Designated foreign currency hedge contracts | — | 335 | 335 | ||||||||
Non-designated foreign currency hedge contracts | — | 92 | 92 | ||||||||
$ | 72,491 | $ | 427 | $ | 72,918 | ||||||
Liabilities | |||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 3,910 | $ | 3,910 | |||||
Non-designated foreign currency hedge contracts | — | 146 | 146 | ||||||||
Designated interest rate swaps | — | 154 | 154 | ||||||||
$ | — | $ | 4,210 | $ | 4,210 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Term loan, net of financing fees | $ | 314,218 | $ | 406,175 | |||
Bank loans and other borrowings | 429 | 1,825 | |||||
Less current portion | (61,022 | ) | (43,471 | ) | |||
Long-term debt | $ | 253,625 | $ | 364,529 |
Fiscal year (in thousands) | Credit Facilities | Bank loans and other borrowings | Total | |||||||||
2018 | $ | 61,654 | $ | 156 | $ | 61,810 | ||||||
2019 | 194,445 | 138 | 194,583 | |||||||||
2020 | 59,282 | 100 | 59,382 | |||||||||
2021 | — | 28 | 28 | |||||||||
2022 | — | 2 | 2 | |||||||||
Thereafter | — | 5 | 5 | |||||||||
$ | 315,381 | $ | 429 | $ | 315,810 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Domestic | $ | (44,724 | ) | $ | (18,526 | ) | $ | (17,265 | ) | ||
Foreign | 17,248 | (34,890 | ) | 48,430 | |||||||
Total | $ | (27,476 | ) | $ | (53,416 | ) | $ | 31,165 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Current | |||||||||||
Federal | $ | (1,424 | ) | $ | 12 | $ | 3,526 | ||||
State | 436 | (660 | ) | 898 | |||||||
Foreign | 6,580 | 3,842 | 5,614 | ||||||||
Total current | $ | 5,592 | $ | 3,194 | $ | 10,038 | |||||
Deferred | |||||||||||
Federal | (8,711 | ) | 3,532 | 1,227 | |||||||
State | (953 | ) | 319 | 3,215 | |||||||
Foreign | 2,864 | (4,882 | ) | (212 | ) | ||||||
Total deferred | $ | (6,800 | ) | $ | (1,031 | ) | $ | 4,230 | |||
Total | $ | (1,208 | ) | $ | 2,163 | $ | 14,268 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Deferred tax assets: | |||||||
Depreciation | $ | 934 | $ | 1,749 | |||
Amortization of intangibles | 1,150 | 4,417 | |||||
Inventory | 7,419 | 7,607 | |||||
Hedging | — | 382 | |||||
Accruals, reserves and other deferred tax assets | 13,907 | 12,590 | |||||
Net operating loss carry-forward | 11,742 | 13,484 | |||||
Stock based compensation | 6,014 | 9,622 | |||||
Tax credit carry-forward, net | 17,852 | 16,191 | |||||
Gross deferred tax assets | 59,018 | 66,042 | |||||
Less valuation allowance | (25,872 | ) | (24,297 | ) | |||
Total deferred tax assets (after valuation allowance) | 33,146 | 41,745 | |||||
Deferred tax liabilities: | |||||||
Depreciation | (30,422 | ) | (28,972 | ) | |||
Amortization of goodwill and intangibles | (7,732 | ) | (23,626 | ) | |||
Unremitted earnings | (1,065 | ) | (700 | ) | |||
Other deferred tax liabilities | (2,053 | ) | (2,769 | ) | |||
Total deferred tax liabilities | (41,272 | ) | (56,067 | ) | |||
Net deferred tax liabilities | $ | (8,126 | ) | $ | (14,322 | ) |
(In thousands) | 2017 | 2016 | 2015 | |||||||||||||||||
Tax at federal statutory rate | $ | (9,616 | ) | 35.0 | % | $ | (18,695 | ) | 35.0 | % | $ | 10,907 | 35.0 | % | ||||||
Difference between U.S. and foreign tax | 137 | (0.5 | )% | 10,645 | (19.9 | )% | (6,929 | ) | (22.2 | )% | ||||||||||
State income taxes net of federal benefit | (495 | ) | 1.8 | % | 134 | (0.3 | )% | (818 | ) | (2.6 | )% | |||||||||
Change in uncertain tax positions | 862 | (3.1 | )% | (1,820 | ) | 3.4 | % | (1,762 | ) | (5.7 | )% | |||||||||
Unremitted earnings | 330 | (1.2 | )% | 735 | (1.4 | )% | — | — | % | |||||||||||
Deferred statutory rate changes | (383 | ) | 1.4 | % | (2,653 | ) | 5.0 | % | — | — | % | |||||||||
Non-deductible goodwill impairment | 3,703 | (13.5 | )% | 2,861 | (5.4 | )% | — | — | % | |||||||||||
Non-deductible expenses | 896 | (3.2 | )% | 1,491 | (2.8 | )% | 1,237 | 4.0 | % | |||||||||||
Research credits | (561 | ) | 2.0 | % | (672 | ) | 1.3 | % | (1,000 | ) | (3.2 | )% | ||||||||
Tax amortization of goodwill | (10,564 | ) | 38.4 | % | 4,185 | (7.8 | )% | 3,826 | 12.3 | % | ||||||||||
Valuation allowance | 13,505 | (49.2 | )% | 5,194 | (9.7 | )% | 8,524 | 27.4 | % | |||||||||||
Other, net | 978 | (3.5 | )% | 758 | (1.4 | )% | 283 | 0.8 | % | |||||||||||
Income tax (benefit) provision | $ | (1,208 | ) | 4.4 | % | $ | 2,163 | (4.0 | )% | $ | 14,268 | 45.8 | % |
(In thousands) | April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||||
Beginning Balance | $ | 2,523 | $ | 7,070 | $ | 5,604 | |||||
Additions for tax positions of prior years | 1,279 | 340 | 3,234 | ||||||||
Reductions of tax positions | (29 | ) | (4,158 | ) | — | ||||||
Settlements with taxing authorities | — | — | (338 | ) | |||||||
Closure of statute of limitations | (403 | ) | (729 | ) | (1,430 | ) | |||||
Ending Balance | $ | 3,370 | $ | 2,523 | $ | 7,070 |
Fiscal Year | |||
(In thousands) | |||
2018 | $ | 4,298 | |
2019 | 2,966 | ||
2020 | 1,906 | ||
2021 | 1,722 | ||
2022 | 1,623 | ||
Thereafter | 7,031 | ||
$ | 19,546 |
(In thousands) | 2017 | 2016 | 2015 | |||||
Selling, general and administrative expenses | $6,894 | $5,183 | $11,251 | |||||
Research and development | 1,549 | 1,060 | 1,706 | |||||
Cost of goods sold | 707 | 706 | 1,138 | |||||
$9,150 | $6,949 | $14,095 |
Options Outstanding (shares) | Weighted Average Exercise Price per Share | Weighted Average Remaining Life (years) | Aggregate Intrinsic Value ($000’s) | |||||||||
Outstanding at April 2, 2016 | 2,951,183 | $ | 33.59 | 3.34 | $ | 9,684 | ||||||
Granted | 501,127 | 32.47 | ||||||||||
Exercised | (1,083,824 | ) | 28.79 | |||||||||
Forfeited/Canceled | (329,691 | ) | 35.95 | |||||||||
Outstanding at April 1, 2017 | 2,038,795 | $ | 35.51 | 3.88 | $ | 10,963 | ||||||
Exercisable at April 1, 2017 | 1,284,592 | $ | 37.04 | 2.66 | $ | 5,129 | ||||||
Vested or expected to vest at April 1, 2017 | 1,906,548 | $ | 35.69 | 4.24 | $ | 9,937 |
2017 | 2016 | 2015 | |||||||||
Volatility | 24.0 | % | 22.8 | % | 22.5 | % | |||||
Expected life (years) | 4.9 | 4.9 | 4.9 | ||||||||
Risk-free interest rate | 1.2 | % | 1.4 | % | 1.5 | % | |||||
Dividend yield | 0.0 | % | 0.0 | % | 0.0 | % | |||||
Fair value per option | $ | 7.61 | $ | 7.40 | $ | 7.91 |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at April 2, 2016 | 380,871 | $ | 34.33 | |||
Granted | 212,105 | 32.61 | ||||
Vested | (150,113 | ) | 34.98 | |||
Forfeited | (101,222 | ) | 33.70 | |||
Unvested at April 1, 2017 | 341,641 | $ | 33.16 |
(In thousands, except per share data) | 2017 | 2016 | 2015 | ||||||||
Grant-date fair value per RSU | $ | 32.61 | $ | 33.19 | $ | 34.89 | |||||
Fair value of RSUs vested | $ | 34.98 | $ | 36.07 | $ | 36.62 |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at April 2, 2016 | 102,336 | $ | 31.38 | |||
Granted | 228,884 | 34.07 | ||||
Vested | — | — | ||||
Forfeited | (46,595 | ) | 30.68 | |||
Unvested at April 1, 2017 | 284,625 | $ | 33.66 |
2017 | 2016 | 2015 | ||||||
Expected stock price volatility | 26.39 | % | 22.27 | % | 20.08 | % | ||
Peer group stock price volatility | 33.86 | % | 31.95 | % | 31.52 | % | ||
Correlation of returns | 51.17 | % | 26.27 | % | 30.52 | % |
Shares | Weighted Average Grant Date Fair Value | |||||
Unvested at April 2, 2016 | 152,968 | $ | 24.84 | |||
Granted | — | — | ||||
Vested | (116,550 | ) | — | |||
Forfeited | (36,418 | ) | 13.42 | |||
Unvested at April 1, 2017 | — | $ | — |
2017 | 2016 | 2015 | ||||||
Volatility | 31.3 | % | 21.1 | % | 23.7 | % | ||
Expected life (months) | 6 | 6 | 6 | |||||
Risk-free interest rate | — | % | 0.2 | % | 0.1 | % | ||
Dividend Yield | 0.0 | % | 0.0 | % | 0.0 | % |
(In thousands, except per share amounts) | 2017 | 2016 | 2015 | ||||||||
Basic EPS | |||||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | |||
Weighted average shares | 51,524 | 50,910 | 51,533 | ||||||||
Basic (loss) income per share | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.33 | |||
Diluted EPS | |||||||||||
Net (loss) income | $ | (26,268 | ) | $ | (55,579 | ) | $ | 16,897 | |||
Basic weighted average shares | 51,524 | 50,910 | 51,533 | ||||||||
Net effect of common stock equivalents | — | — | 556 | ||||||||
Diluted weighted average shares | 51,524 | 50,910 | 52,089 | ||||||||
Diluted (loss) income per share | $ | (0.51 | ) | $ | (1.09 | ) | $ | 0.32 |
(In thousands) | April 1, 2017 | April 2, 2016 | ||||||
Land | $ | 7,389 | $ | 7,905 | ||||
Building and building improvements | 109,933 | 117,132 | ||||||
Plant equipment and machinery | 253,693 | 238,549 | ||||||
Office equipment and information technology | 129,753 | 127,019 | ||||||
Haemonetics equipment | 306,714 | 295,853 | ||||||
Total | 807,482 | 786,458 | ||||||
Less: accumulated depreciation and amortization | (483,620 | ) | (448,824 | ) | ||||
Property, plant and equipment, net | $ | 323,862 | $ | 337,634 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Service cost | $ | 3,404 | $ | 3,560 | $ | 2,979 | |||||
Interest cost on benefit obligation | 287 | 371 | 686 | ||||||||
Expected return on plan assets | (308 | ) | (330 | ) | (449 | ) | |||||
Actuarial loss | 532 | 598 | 107 | ||||||||
Amortization of unrecognized prior service cost | (119 | ) | (38 | ) | (29 | ) | |||||
Amortization of unrecognized transition obligation | 37 | 42 | 45 | ||||||||
Settlement loss recognized | 289 | — | — | ||||||||
Totals | $ | 4,122 | $ | 4,203 | $ | 3,339 |
(In thousands) | April 1, 2017 | April 2, 2016 | |||||
Change in Benefit Obligation: | |||||||
Benefit Obligation, beginning of year | $ | (37,919 | ) | $ | (40,567 | ) | |
Service cost | (3,404 | ) | (3,560 | ) | |||
Interest cost | (287 | ) | (371 | ) | |||
Benefits paid | 1,291 | 3,780 | |||||
Actuarial gain | 4,615 | 424 | |||||
Employee and plan participants contribution | (2,463 | ) | (1,839 | ) | |||
Plan amendments | — | 833 | |||||
Plan settlements | 6,960 | — | |||||
Foreign currency changes | (138 | ) | 3,381 | ||||
Benefit obligation, end of year | $ | (31,345 | ) | $ | (37,919 | ) | |
Change in Plan Assets: | |||||||
Fair value of plan assets, beginning of year | $ | 19,852 | $ | 23,165 | |||
Company contributions | 1,788 | 1,987 | |||||
Benefits paid | (1,192 | ) | (3,779 | ) | |||
Gain on plan assets | 414 | 446 | |||||
Employee and plan participants contributions | 2,424 | 1,861 | |||||
Plan settlements | (6,850 | ) | — | ||||
Foreign currency changes | 849 | (3,828 | ) | ||||
Fair value of Plan Assets, end of year | $ | 17,285 | $ | 19,852 | |||
Funded Status* | $ | (14,060 | ) | $ | (18,067 | ) | |
Unrecognized net actuarial loss | 4,319 | 10,168 | |||||
Unrecognized initial obligation | — | 37 | |||||
Unrecognized prior service cost | (1,019 | ) | (1,186 | ) | |||
Net amount recognized | $ | (10,760 | ) | $ | (9,048 | ) | |
* The unfunded status is all non-current |
Balance, March 29, 2014 | $ | (4,592 | ) |
Obligation at transition | (19 | ) | |
Actuarial loss | (6,198 | ) | |
Prior service cost | 1,886 | ||
Balance as of March 28, 2015 | $ | (8,923 | ) |
Obligation at transition | 33 | ||
Actuarial loss | 681 | ||
Prior service cost | 717 | ||
Balance as of April 2, 2016 | $ | (7,492 | ) |
Obligation at transition | 32 | ||
Actuarial loss | 5,126 | ||
Prior service cost | 63 | ||
Balance as of April 1, 2017 | $ | (2,271 | ) |
2017 | 2016 | 2015 | ||||||
Discount rate | 0.76 | % | 0.72 | % | 0.93 | % | ||
Rate of increased salary levels | 1.43 | % | 1.58 | % | 1.65 | % | ||
Expected long-term rate of return on assets | 1.10 | % | 1.20 | % | 1.68 | % |
(in thousands) | |||
Fiscal 2018 | $ | 1,396 | |
Fiscal 2019 | 1,451 | ||
Fiscal 2020 | 1,394 | ||
Fiscal 2021 | 1,411 | ||
Fiscal 2022 | 1,617 | ||
Fiscal 2023-2027 | 6,869 | ||
$ | 14,138 |
• | Japan |
• | EMEA |
• | North America Plasma |
• | All Other |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Net revenues | |||||||||||
Japan | $ | 74,695 | $ | 84,270 | $ | 83,547 | |||||
EMEA | 198,396 | 204,192 | 219,153 | ||||||||
North America Plasma | 309,718 | 279,803 | 240,705 | ||||||||
All Other | 316,771 | 342,249 | 340,427 | ||||||||
Net revenues before foreign exchange impact | 899,580 | 910,515 | 883,832 | ||||||||
Effect of exchange rates | (13,464 | ) | (1,683 | ) | 26,541 | ||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Segment operating income | |||||||||||
Japan | $ | 32,906 | $ | 38,280 | $ | 36,843 | |||||
EMEA | 49,105 | 47,168 | 60,101 | ||||||||
North America Plasma | 105,253 | 109,220 | 89,092 | ||||||||
All Other | 109,296 | 120,562 | 131,471 | ||||||||
Segment operating income | 296,560 | 315,230 | 317,507 | ||||||||
Corporate operating expenses | 176,372 | 199,072 | 193,910 | ||||||||
Effect of exchange rates | (4,772 | ) | 3,546 | 13,906 | |||||||
Restructuring and turnaround costs | 34,337 | 42,185 | 69,697 | ||||||||
Deal amortization | 27,107 | 28,958 | 30,184 | ||||||||
Impairment of assets | 73,353 | 97,230 | — | ||||||||
Contingent consideration income | — | (4,727 | ) | (2,918 | ) | ||||||
Operating (loss) income | $ | (19,381 | ) | $ | (43,942 | ) | $ | 40,540 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Depreciation and amortization | |||||||||||
Japan | $ | 827 | $ | 774 | $ | 767 | |||||
EMEA | 4,255 | 5,146 | 5,045 | ||||||||
North America Plasma | 13,022 | 12,944 | 11,229 | ||||||||
All Other | 71,629 | 71,047 | 69,012 | ||||||||
Total depreciation and amortization (excluding impairment charges) | $ | 89,733 | $ | 89,911 | $ | 86,053 |
(In thousands) | April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||||
Long-lived assets(1) | |||||||||||
Japan | $ | 21,412 | $ | 33,159 | $ | 31,810 | |||||
EMEA | 63,854 | 63,861 | 66,223 | ||||||||
North America Plasma | 142,164 | 116,001 | 101,272 | ||||||||
All Other | 96,432 | 124,613 | 122,643 | ||||||||
Total long-lived assets | $ | 323,862 | $ | 337,634 | $ | 321,948 | |||||
(1)Long-lived assets are comprised of property, plant and equipment. |
(In thousands) | April 1, 2017 | April 2, 2016 | March 28, 2015 | ||||||||
United States | $ | 241,610 | $ | 231,744 | $ | 208,439 | |||||
Japan | 1,691 | 2,022 | 1,618 | ||||||||
Europe | 12,952 | 18,672 | 27,786 | ||||||||
Asia | 34,174 | 40,235 | 39,032 | ||||||||
Other | 33,435 | 44,961 | 45,073 | ||||||||
Total | $ | 323,862 | $ | 337,634 | $ | 321,948 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
Plasma | 410,727 | 381,776 | 352,911 | ||||||||
Blood Center | 303,890 | 355,108 | 386,147 | ||||||||
Cell Processing | 105,376 | 112,483 | 120,434 | ||||||||
Hemostasis Management | 66,123 | 59,465 | 50,881 | ||||||||
Net revenues | $ | 886,116 | $ | 908,832 | $ | 910,373 |
(In thousands) | 2017 | 2016 | 2015 | ||||||||
United States | $ | 522,686 | $ | 519,440 | $ | 494,788 | |||||
Japan | 79,266 | 81,411 | 88,298 | ||||||||
Europe | 166,007 | 187,725 | 215,575 | ||||||||
Asia | 109,858 | 111,758 | 102,095 | ||||||||
Other | 8,299 | 8,498 | 9,617 | ||||||||
Total | $ | 886,116 | $ | 908,832 | $ | 910,373 |
(In thousands) | Severance and Other Employee Costs | Other Costs | Accelerated Depreciation | Asset Write Down | Total Restructuring | ||||||||||||||
Balance at March 29, 2014 | $ | 22,908 | $ | 728 | $ | — | $ | — | $ | 23,636 | |||||||||
Costs incurred | 19,879 | 15,362 | 1,326 | 296 | 36,863 | ||||||||||||||
Payments | (26,394 | ) | (15,871 | ) | — | — | (42,265 | ) | |||||||||||
Non-cash adjustments | — | — | (1,326 | ) | (296 | ) | (1,622 | ) | |||||||||||
Balance at March 28, 2015 | $ | 16,393 | $ | 219 | $ | — | $ | — | $ | 16,612 | |||||||||
Costs incurred | 10,707 | 7,846 | 1,469 | 3,033 | 23,055 | ||||||||||||||
Payments | (18,348 | ) | (8,065 | ) | — | — | (26,413 | ) | |||||||||||
Non-cash adjustments | — | — | (1,469 | ) | (3,033 | ) | (4,502 | ) | |||||||||||
Balance at April 2, 2016 | $ | 8,752 | $ | — | $ | — | $ | — | $ | 8,752 | |||||||||
Costs incurred | 19,521 | 1,512 | — | 800 | 21,833 | ||||||||||||||
Payments | (20,866 | ) | (1,451 | ) | — | — | (22,317 | ) | |||||||||||
Non-cash adjustments | — | — | — | (800 | ) | (800 | ) | ||||||||||||
Balance at April 1, 2017 | $ | 7,407 | $ | 61 | $ | — | $ | — | $ | 7,468 |
Restructuring costs | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Japan | $ | 819 | $ | 9 | $ | 258 | |||||
EMEA | 4,272 | 3,210 | 3,310 | ||||||||
North America Plasma | 366 | — | 360 | ||||||||
All Other | 16,376 | 19,836 | 32,935 | ||||||||
Total | $ | 21,833 | $ | 23,055 | $ | 36,863 | |||||
Turnaround costs | |||||||||||
(in thousands) | 2017 | 2016 | 2015 | ||||||||
Japan | $ | 2 | $ | 416 | $ | 158 | |||||
EMEA | 94 | 961 | 838 | ||||||||
North America Plasma | 972 | — | 28 | ||||||||
All Other | 11,415 | 17,852 | 31,810 | ||||||||
Total | $ | 12,483 | $ | 19,229 | $ | 32,834 | |||||
Total restructuring and turnaround | $ | 34,316 | $ | 42,284 | $ | 69,697 |
(In thousands) | Three months ended | |||||||||||||||
Fiscal 2017 | July 2, 2016 | October 1, 2016 | December 31, 2016 | April 1, 2017 | ||||||||||||
Net revenues | $ | 209,956 | $ | 220,253 | $ | 227,841 | $ | 228,066 | ||||||||
Gross profit | $ | 91,056 | $ | 104,248 | $ | 101,079 | $ | 82,111 | ||||||||
Operating income (loss) | $ | (7,881 | ) | $ | 24,794 | $ | 21,212 | $ | (57,506 | ) | ||||||
Net (loss) income | $ | (10,346 | ) | $ | 19,825 | $ | 15,393 | $ | (51,140 | ) | ||||||
Per share data: | ||||||||||||||||
Net (loss) income: | ||||||||||||||||
Basic | $ | (0.20 | ) | $ | 0.39 | $ | 0.30 | $ | (0.98 | ) | ||||||
Diluted | $ | (0.20 | ) | $ | 0.38 | $ | 0.30 | $ | (0.98 | ) | ||||||
(In thousands) | Three months ended | |||||||||||||||
Fiscal 2016 | June 27, 2015 | September 26, 2015 | December 26, 2015 | April 2, 2016 | ||||||||||||
Net revenues | $ | 213,413 | $ | 219,693 | $ | 233,384 | $ | 242,342 | ||||||||
Gross profit | $ | 102,539 | $ | 105,297 | $ | 108,855 | $ | 89,223 | ||||||||
Operating (loss) income | $ | 3,606 | $ | 19,179 | $ | (61,177 | ) | $ | (5,550 | ) | ||||||
Net (loss) income | $ | (267 | ) | $ | 12,863 | $ | (59,440 | ) | $ | (8,735 | ) | |||||
Per share data: | ||||||||||||||||
Net (loss) income: | ||||||||||||||||
Basic | $ | (0.01 | ) | $ | 0.25 | $ | (1.17 | ) | $ | (0.17 | ) | |||||
Diluted | $ | (0.01 | ) | $ | 0.25 | $ | (1.17 | ) | $ | (0.17 | ) |
(In thousands) | Overstatement/(Understatement) | |||||
Three Months Ended | Operating (Loss) Income | Net (Loss) Income | ||||
April 1, 2017 | (3,720 | ) | (4,032 | ) | ||
October 1, 2016 | 888 | 1,224 | ||||
April 2, 2016 | (3,352 | ) | (2,207 | ) | ||
December 26, 2015 | 4,776 | 4,584 | ||||
September 26, 2015 | 1,193 | 933 | ||||
June 27, 2015 | 1,297 | 219 |
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain/loss on Derivatives | Total | ||||||||||||
Balance as of March 28, 2015 | $ | (20,512 | ) | $ | (8,923 | ) | $ | 7,711 | $ | (21,724 | ) | |||||
Other comprehensive (loss) income before reclassifications | (1,987 | ) | 884 | (3,938 | ) | (5,041 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 547 | (8,822 | ) | (8,275 | ) | ||||||||||
Net current period other comprehensive (loss) income | (1,987 | ) | 1,431 | (12,760 | ) | (13,316 | ) | |||||||||
Balance as of April 2, 2016 | $ | (22,499 | ) | $ | (7,492 | ) | $ | (5,049 | ) | $ | (35,040 | ) | ||||
Other comprehensive (loss) income before reclassifications | (7,336 | ) | 4,851 | (364 | ) | (2,849 | ) | |||||||||
Amounts reclassified from accumulated other comprehensive loss | — | 369 | 4,647 | 5,016 | ||||||||||||
Net current period other comprehensive (loss) income | (7,336 | ) | 5,220 | 4,283 | 2,167 | |||||||||||
Balance as of April 1, 2017 | $ | (29,835 | ) | $ | (2,272 | ) | $ | (766 | ) | $ | (32,873 | ) |
(In thousands) | Amounts Reclassified from Accumulated Other Comprehensive Loss | Affected Line in the Statement of (Loss) Income | ||||||||
Derivative instruments reclassified to income statement | Year ended April 1, 2017 | Year ended April 2, 2016 | ||||||||
Realized net (loss) gain on derivatives | $ | (5,227 | ) | $ | 8,654 | Net revenues, cost of goods sold, other expense, net | ||||
Income tax effect | 580 | 168 | Provision (benefit) for income taxes | |||||||
Net of taxes | $ | (4,647 | ) | $ | 8,822 | |||||
Pension items reclassified to income statement | ||||||||||
Realized net loss on pension assets | $ | 450 | $ | 602 | Other expense, net | |||||
Income tax effect | (81 | ) | (55 | ) | Provision (benefit) for income taxes | |||||
Net of taxes | $ | 369 | $ | 547 |
• | Increasing oversight by our management in the calculation and reporting of certain inventory balances; |
• | Enhancing policies and procedures relating to account reconciliation and analysis; |
• | Strengthening communication and information flows between the inventory operations department and the corporate controller's group. |
• | We enhanced our processes for analyzing our deferred tax assets and liabilities; |
• | We enhanced our policies and procedures related to both U.S. and non-U.S. tax account reconciliation and analysis, including, but not limited to, increased management oversight in the calculation of certain non-U.S. tax balances, increased automation in the calculation of our tax expense, and increased communication and direction to non-U.S. information providers; |
• | We hired additional, experienced personnel to augment our existing tax accounting resources and provided extensive training to information providers, particularly those outside of the U.S.; and |
• | We increased the level of communication and information flows on significant tax matters between our tax department and the corporate controller’s group. |
Financial Statements required by Item 8 of this Form | |
Schedules required by Article 12 of Regulation S-X | |
HAEMONETICS CORPORATION | ||
By: | /s/ Christopher Simon | |
Christopher Simon | ||
President and Chief Executive Officer |
Signature | Title | Date | ||
/s/ Christopher Simon | President and Chief Executive Officer | May 24, 2017 | ||
Christopher Simon | (Principal Executive Officer) | |||
/s/ William Burke | Chief Financial Officer | May 24, 2017 | ||
William Burke | (Principal Financial Officer) | |||
/s/ Dan Goldstein | Vice President, Corporate Controller | May 24, 2017 | ||
Dan Goldstein | (Principal Accounting Officer) | |||
/s/ Catherine Burzik | Director | May 24, 2017 | ||
Catherine Burzik | ||||
/s/ Charles Dockendorff | Director | May 24, 2017 | ||
Charles Dockendorff | ||||
/s/ Susan Bartlett Foote | Director | May 24, 2017 | ||
Susan Bartlett Foote | ||||
/s/ Ronald Gelbman | Director | May 24, 2017 | ||
Ronald Gelbman | ||||
/s/ Pedro Granadillo | Director | May 24, 2017 | ||
Pedro Granadillo | ||||
/s/ Mark Kroll | Director | May 24, 2017 | ||
Mark Kroll | ||||
/s/ Richard Meelia | Director | May 24, 2017 | ||
Richard Meelia | ||||
/s/ Ronald Merriman | Director | May 24, 2017 | ||
Ronald Merriman |
1. Articles of Organization | ||
3A* | Amended and Restated Articles of Organization of the Company reflecting Articles of Amendment dated August 23, 1993 and August 21, 2006 (filed as Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the Quarter ended December 29, 2012 and incorporated herein by reference). | |
3B* | By-Laws of the Company, as amended through January 21, 2015 (filed as Exhibit 99.1 to the Company's Form 8-K dated January 27, 2015). | |
2. Instruments Defining the Rights of Security Holders | ||
4A* | Specimen certificate for shares of common stock (filed as Exhibit 4B to the Company's Amendment No. 1 to Form S-1 No. 33-39490 and incorporated herein by reference). | |
3. Material Contracts | ||
10A* | Lease dated July 17, 1990 between the Buncher Company and the Company of property in Pittsburgh, Pennsylvania (filed as Exhibit 10-K to the Company's Form S-1 No. 33-39490 and incorporated herein by reference). | |
10B* | First Amendment to lease dated July 17, 1990, made as of July 17, 1996 between Buncher Company and the Company of property in Pittsburgh, Pennsylvania (filed as Exhibit 10AI to the Company's Form 10-Q for the quarter ended December 28, 1996 and incorporated herein by reference). | |
10C* | Second Amendment to lease dated July 17, 1990, made as of October 18, 2000 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10AG to the Company's Form 10-K for the year ended March 29, 2003 and incorporated herein by reference). | |
10D* | Third Amendment to lease dated July 17, 1990, made as of March 23, 2004 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10D to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10E* | Fourth Amendment to lease dated July 17, 1990, made as of March 12, 2008 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10E to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10F* | Fifth Amendment to lease dated July 17, 1990, made as of October 1, 2008 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10F to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10G* | Sixth Amendment to lease dated July 17, 1990 made as of January 8, 2010 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10G to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10H* | Seventh Amendment to lease dated July 17, 1990, made as of March 31, 2011 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10H to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10I* | Eighth Amendment to lease dated July 17, 1990, made as of February 26, 2013 between Buncher Company and the Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10I to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10J* | Lease dated February 21, 2000 between BBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V. with authorization of El Florido California, S.A. de C.V., for property located in Tijuana, Mexico (filed as Exhibit 10J to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10K* | Amendment to Lease dated February 21, 2000 made as of July 25, 2008 between BBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for property located in Tijuana, Mexico (filed as Exhibit 10K to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10L* | Extension to Lease dated February 21, 2000, made as of August 14, 2011 between PROCADEF 1, S.A.P.I. de C.V. and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for property located in Tijuana, Mexico (Spanish to English translation filed as Exhibit 10L to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). |
10M* | Amendment Letter to Lease dated February 21, 2000, made as of August 14, 2011 between BBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for property located in Tijuana, Mexico (filed as Exhibit 10M to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10N* | Notice of Assignment to Lease dated February 21, 2000, made as of February 23, 2012 between BBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V. for property located in Tijuana, Mexico (Spanish to English translation filed as Exhibit 10N to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10O* | Lease Agreement effective December 3, 2007 between Mrs. Blanca Estela Colunga Santelices, by her own right, and Pall Life Sciences Mexico, S.de R.L. de C.V., for the property located in Tijuana, Mexico (Spanish to English translation filed as Exhibit 10W to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10P* | Assignment to Lease Agreement effective December 3, 2007, made as of December 2, 2011 between Mrs. Blanca Estela Colunga Santelices, by her own right, Pall Life Sciences Mexico, S.de R.L. de C.V., (“Assignor”) and Haemonetics Mexico Manufacturing, S. de R.L. de C.V.as successor in interest to Pall Mexico Manufacturing S. de R.L. de C.V., (“Assignee”) assigned in favor of the property located in Tijuana, Mexico (filed as Exhibit 10X to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10Q* | Sublease Contract to Lease Agreement effective December 3, 2007, made as of December 3, 2011 between Haemonetics Mexico Manufacturing, S. de R.L. de C.V. as successor in interest to Pall Mexico Manufacturing, S.de R.L. de C.V., and Pall Life Sciences Mexico, S. de R.L. de C.V., for the property located in Tijuana, Mexico (filed as Exhibit 10Y to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10R* | Sublease Contract to Lease Agreement effective December 3, 2007, made as of February 23, 2012 between Haemonetics Mexico Manufacturing, S. de R.L. de C.V. as successor in interest to Pall Mexico Manufacturing S. de R.L. de C.V. and Ensatec, S.A. de C.V., for the property located in Tijuana, Mexico (filed as Exhibit 10Z to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10S* | Lease dated August 20, 2009 between Price Logistics Center Draper One, LLC and the Company for property located in Draper, Utah. (filed as Exhibit 10AA to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | |
10T* | Lease dated September 19, 2013 between the Penang Development Corporation ("Lessor") and Haemonetics Malaysia Sdn Bhd ("Lessee") of the property located in Penang, Malaysia (filed as Exhibit 10D to the Company's 10-Q for the quarter ended June 28, 2014 and incorporated herein by reference). | |
10U*† | Haemonetics Corporation 2005 Long-Term Incentive Compensation Plan, reflecting amendments dated July 31, 2008, July 29, 2009, July 21, 2011, November 30, 2012, July 24, 2013, January 21, 2014, and July 23, 2014 (filed as Exhibit 10.1 to the Company's Form 8-K dated July 25, 2014 and incorporated herein by reference). | |
10V*† | Form of Option Agreement for Non-Qualified stock options for the 2005 Long Term-Incentive Compensation Plan for Non-employee Directors (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended October 1, 2005 and incorporated herein by reference). | |
10W*† | Form of Option Agreement for Non-Qualified stock options for the 2005 Long-Term Incentive Compensation Plan for Employees. (filed as Exhibit 10S to the Company's Form 10-K for the fiscal year ended March 30, 2010 and incorporated herein by reference). | |
10X*† | Form of Restricted Stock Agreement with Employees under 2005 Long-Term Incentive Compensation Plan (filed as Exhibit 10U to the Company's Form 10-K for the year ended April 3, 2010 and incorporated herein by reference). | |
10Y*† | Form of Change in Control Agreement (filed as Exhibit 10AK to the Company's Form 10-K, for the year-ended March 31, 2013 and incorporated herein by reference). | |
10Z*† | Amended and Restated 2007 Employee Stock Purchase Plan (as amended and restated on July 21, 2016 incorporated as Exhibit 10.2 to the Company’s Form 10-Q, for the quarter ended July 2, 2016 and incorporated herein by reference). | |
10AA*† | Amended and Restated Non-Qualified Deferred Compensation Plan as amended and restated on July 24, 2013 (filed as Exhibit 10.2 to the Company's Form 8-K dated July 26, 2013 and incorporated herein by reference). | |
10AB*† | Form of Executive Severance Agreement (filed as Exhibit 10.2 to the Company’s Form 8-K dated January 19, 2016 and incorporated herein by reference). | |
10AC*† | Employment Agreement effective as of May 16, 2016 between the Company and Christopher Simon (filed as Exhibit 10.1 to the Company’s Form 8-K dated May 10, 2016 and incorporated herein by reference). | |
10AD*† | Executive Severance Agreement effective as of May 16, 2016 between the Company and Christopher Simon (filed as Exhibit 10.2 to the Company’s Form 8-K dated May 10, 2016 and incorporated herein by reference). |
10AE*† | Change in Control Agreement effective as of May 16, 2016 between the Company and Christopher Simon (filed as Exhibit 10.3 to the Company’s Form 8-K dated May 10, 2016 and incorporated herein by reference). | |
10AF*† | Haemonetics Corporation Worldwide Executive Bonus Plan with an Effective Date of April 3, 2016 (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended July 2, 2016 and incorporated herein by reference). | |
10AG*† | Performance Share Unit Agreement between Haemonetics Corporation and Christopher Simon dated as of June 29, 2016 (filed as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended July 2, 2016 and incorporated herein by reference). | |
10AH† | Agreement and General Release between Haemonetics Corporation and Byron Selman dated May 1, 2017. | |
10AI* | Asset Purchase Agreement, dated as of April 28, 2012, by and between Haemonetics Corporation and Pall Corporation (filed as Exhibit 10Z to the Company's Form 10-K for the fiscal year ended March 31, 2012 and incorporated herein by reference). | |
10AJ* | Credit Agreement dated as of June 30, 2014 among Haemonetics Corporation and the Lenders listed therein and JPMorgan Chase Bank, N.A. as Administrative Agent (filed as Exhibit 10.1 to the Company’s Form 8-K dated July 7, 2014 and incorporated herein by reference). | |
4. Subsidiary Certifications and Consents | ||
21.1 | Subsidiaries of the Company. | |
23.1 | Consent of the Independent Registered Public Accounting Firm. | |
31.1 | Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher Simon, President and Chief Executive Officer of the Company. | |
31.2 | Certification pursuant to Section 302 of Sarbanes-Oxley of 2002 of William Burke, Executive Vice President, Chief Financial Officer of the Company. | |
32.1 | Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Christopher Simon, President and Chief Executive Officer of the Company. | |
32.2 | Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of William Burke, Executive Vice President, Chief Financial Officer of the Company. | |
101ˆ | The following materials from Haemonetics Corporation on Form 10-K for the year ended April 1, 2017, formatted in Extensive Business Reporting Language (XBRL): (i) Consolidated Statements of (Loss) Income, (ii) Consolidated Statements of Comprehensive (Loss) Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statement of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements, tagged as blocks of text. |
* | Incorporated by reference | |
† | Agreement, plan, or arrangement related to the compensation of officers or directors | |
‡ | Subject to a confidential treatment request | |
ˆ | In accordance with Rule 406T of Regulation S-T, the XBRL-related information in Exhibit 101 to this Form 10-K is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is deemed not filed for purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these sections. |
(In thousands) | Balance at Beginning of Fiscal Year | Charged to Costs and Expenses | Write-Offs (Net of Recoveries) | Balance at End of Fiscal Year | |||||||||||
For Year Ended April 1, 2017 | |||||||||||||||
Allowance for Doubtful Accounts | $ | 2,253 | $ | 103 | $ | 172 | $ | 2,184 | |||||||
For Year Ended April 2, 2016 | |||||||||||||||
Allowance for Doubtful Accounts | $ | 1,749 | $ | 728 | $ | (224 | ) | $ | 2,253 | ||||||
For Year Ended March 28, 2015 | |||||||||||||||
Allowance for Doubtful Accounts | $ | 1,676 | $ | 399 | $ | (326 | ) | $ | 1,749 |
▪ | Title VII of the Civil Rights Act of 1964; |
▪ | Sections 1981 through 1988 of Title 42 of the United States Code; |
▪ | The Employee Retirement Income Security Act of 1974 (as modified below in Section 5b. and Section 6 with respect to the Company’s 401(k) plan); |
▪ | The Immigration Reform and Control Act; |
▪ | The Americans with Disabilities Act of 1990; |
▪ | The Age Discrimination in Employment Act of 1967; |
▪ | The Worker Adjustment and Retraining Notification Act; |
▪ | The Fair Credit Reporting Act; |
▪ | The Family and Medical Leave Act; |
▪ | The Equal Pay Act; |
▪ | The Genetic Information Nondiscrimination Act of 2008; |
▪ | The Massachusetts Plant Closing Laws, M.G.L. c. 151A, § 71A, as amended; |
▪ | The Massachusetts Fair Employment Practices Act, M.G.L c. 151B, as amended; |
▪ | The Massachusetts Occupational Safety and Health Laws; |
▪ | The Massachusetts Equal Rights Act, M.G.L. c. 93, § 102, as amended; |
▪ | The Massachusetts Equal Pay Act, M.G.L. c. 149, § 105A-C, as amended; |
▪ | The Massachusetts Maternity Leave Act, M.G.L. c. 149, § 105D, as amended; |
▪ | Laws relating to unpaid wages or other compensation, including but not limited to those under The Massachusetts Payment of Wages Law, M.G.L. c. 149, § 148 et seq., as amended; |
▪ | The Massachusetts Equal Rights for the Elderly and Disabled Law, M.G.L. c. 93, § 103, as amended; |
▪ | The Massachusetts AIDS Testing Law, M.G.L. c. 111, § 70F, as amended; |
▪ | The Massachusetts Civil Rights Act, M.G.L. c. 12, 11H & I, as amended; |
▪ | The Massachusetts Privacy Law, M.G.L. c. 214, § 1B, as amended; |
▪ | The Massachusetts Sexual Harassment Statute, M.G.L. c. 214, § 1C, as amended; |
▪ | The Massachusetts Consumer Protection Act, M.G.L. c. 93A, as amended; |
▪ | The Massachusetts Small Necessities Leave Act, M.G.L. c. 149, § 52D, as amended; |
▪ | Any other federal, state or local law, rule, regulation, or ordinance; |
▪ | Any public policy, contract, tort, or common law; or |
▪ | Any claim for costs, fees, or other expenses including attorneys' fees incurred in these matters. |
▪ | Executive should consult with an attorney before signing this Agreement; |
▪ | Executive has up to 21 calendar days to consider whether to sign this Agreement, starting from the date Executive receives this Agreement; |
▪ | Executive has 7 days after signing this Agreement to revoke it; |
▪ | If Executive revokes this Agreement Executive will not receive the Severance Pay or the other amounts or benefits described in Section 2; and |
▪ | This Agreement does not prevent Executive from later challenging the validity of the Agreement or from filing a charge with any government agency. |
Restricted Stock Unit Inventory | |||||
Grant Date | RSUs Granted (#) | RSUs Vested (#) | RSUs Unvested (#) | Unvested Value (B) | |
10/25/2016 | 3,836 | 0 | 3,836 | $152,108.59 | |
1/13/2016 | 8,138 | 8,138 | 0 | $0.00 | |
10/20/2015 | 3,909 | 977 | 2,932 | $116,262.35 | |
10/22/2014 | 2,338 | 1,170 | 1,168 | $46,314.61 | |
10/23/2013 | 1,800 | 1,350 | 450 | $17,843.81 | |
10/24/2012 | 2,434 | 2,434 | 0 | $0.00 | |
Total | 22,455 | 14,069 | 8,386 | $332,529.36 | |
Performance-Based Stock Unit Inventory | |||||
Grant Date | MSUs/PSUs Granted (#) | MSUs/PSUs Vested (#) | MSUs/PSUs Unvested (#) | Unvested Value (C) | |
10/25/2016 | 7,673 | 0 | 7,673 | $304,256.83 | |
10/20/2015 | 7,819 | 0 | 7,819 | $310,046.16 | PSU |
4/27/2015 | 6,550 | 0 | 6,550 | $259,726.60 | MSU |
10/22/2014 | 4,676 | 0 | 4,676 | $185,417.04 | PSU |
7/24/2013 | 12,500 | 0 | 12,500 | $495,661.46 | MSU |
Total | 39,218 | 0 | 39,218 | $1,555,108.09 |
Stock Option Inventory | |||||||||||||||
Grant Date | Options Granted (#) | Outstanding Options Vested (#) | Outstanding Options Unvested (#) | Outstanding Options | Strike Price | Vested Value (D) | Unvested Value (E) | Outstanding Value | Expiration Date of Option | ||||||
10/25/2016 | 16,551 | — | 16,551 | 16,511 | $34.21 | $0.00 | $90,085.71 | $90,085.71 | 10/25/2023 | ||||||
10/20/2015 | 17,186 | 4,296 | 12,890 | 17,186 | $31.97 | $33,005.81 | $99,032.80 | $132,038.61 | 10/20/2022 | ||||||
10/22/2014 | 10,376 | 5,188 | 5,188 | 10,376 | $34.75 | $25,462.27 | $25,462.27 | $50,924.54 | 10/22/2021 | ||||||
10/23/2013 | 16,778 | 12,583 | 4,195 | 16,778 | $41.66 | $0.00 | $0.00 | $0.00 | 10/23/2020 | ||||||
10/24/2012 | 22,676 | 22,676 | — | 22,676 | $39.06 | $13,558.36 | $0.00 | $13,558.36 | 10/24/2019 | ||||||
Total | 83,567 | 44,743 | 38,824 | 83,527 | $72,026.44 | $214,580.78 | $286,607.22 |
Entity Name | Jurisdiction of Incorporation |
5D Information Management, Inc. | Delaware |
Arryx, Inc. | Nevada |
Global Med Technologies, Inc. | Colorado |
Haemonetics (Hong Kong) Limited | Hong Kong |
Haemonetics (UK) Limited | United Kingdom |
Haemonetics Asia Incorporated | Delaware |
Haemonetics Asia UK Ltd. | United Kingdom |
Haemonetics Australia PTY Ltd. | Victoria |
Haemonetics Belgium NV | Belgium |
Haemonetics BV | Netherlands |
Haemonetics Canada Ltd. | British Columbia |
Haemonetics CZ, spol. s.r.o. | Czech Republic |
Haemonetics France S.a.r.l | France |
Haemonetics GmbH | Germany |
Haemonetics Handelsgesellschaft m.b.H. | Austria |
Haemonetics Healthcare India Private Limited | India |
Haemonetics Hospitalar Ltda. | Brazil |
Haemonetics International Finance S.a.r.l. | Luxembourg |
Haemonetics International Holdings GmbH | Switzerland |
Haemonetics IP HC Sarl | Switzerland |
Haemonetics Italia s.r.l. | Italy |
Haemonetics Japan GK | Japan |
Haemonetics Korea, Inc. | Seoul, Korea |
Haemonetics Limited | United Kingdom |
Haemonetics Malaysia Sdn. Bhd. | Malaysia |
Haemonetics Manufacturing, Inc. | Delaware |
Haemonetics (Shanghai) Management Co. Ltd. (formerly known as: Haemonetics Medical Devices (Shanghai) International Trading Co., Ltd.) | Shanghai,China |
Haemonetics Mexico Manufacturing, S.de R.L. de C.V. | Mexico |
Haemonetics New Zealand Limited | New Zealand |
Haemonetics Produzione Italia S.r.l. | Italy |
Haemonetics Puerto Rico LLC | Puerto Rico |
Haemonetics S.A. | Switzerland |
Haemonetics Scandinavia AB | Sweden |
Haemonetics Singapore Pte. Ltd. | Singapore |
Haemoscope Corporation | Massachusetts |
Inlog SAS | France |
Inlog Holdings France SAS | France |
1. | I have reviewed this Annual Report on Form 10-K of Haemonetics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Christopher Simon | ||||
Christopher Simon, President and Chief | ||||
Executive Officer (Principal Executive Officer) |
1. | I have reviewed this Annual Report on Form 10-K of Haemonetics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William Burke | ||||
William Burke, Executive Vice President, Chief | ||||
Financial Officer (Principal Financial Officer) |
/s/ Christopher Simon | ||||
Christopher Simon, | ||||
President and Chief Executive Officer (Principal Executive Officer) |
/s/ William Burke | ||||
William Burke, Executive Vice President, Chief | ||||
Financial Officer (Principal Financial Officer) |
DOCUMENT AND ENTITY INFORMATION - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
May 19, 2017 |
Oct. 01, 2016 |
|
Document And Entity Information [Abstract] | |||
Entity Registrant Name | HAEMONETICS CORP | ||
Entity Central Index Key | 0000313143 | ||
Current Fiscal Year End Date | --04-01 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Apr. 01, 2017 | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 52,464,290 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 1,866,084,197 |
CONSOLIDATED STATEMENTS OF (LOSS) INCOME - USD ($) shares in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Income Statement [Abstract] | |||
Net revenues | $ 886,116,000 | $ 908,832,000 | $ 910,373,000 |
Cost of goods sold | 507,622,000 | 502,918,000 | 475,955,000 |
Gross profit | 378,494,000 | 405,914,000 | 434,418,000 |
Operating expenses: | |||
Research and development | 37,556,000 | 44,965,000 | 54,187,000 |
Selling, general and administrative | 301,726,000 | 317,223,000 | 337,168,000 |
Impairment of assets | 58,593,000 | 92,395,000 | 5,441,000 |
Contingent consideration income | 0 | (4,727,000) | (2,918,000) |
Total operating expenses | 397,875,000 | 449,856,000 | 393,878,000 |
Operating (loss) income | (19,381,000) | (43,942,000) | 40,540,000 |
Other expense, net | (8,095,000) | (9,474,000) | (9,375,000) |
(Loss) income before (benefit) provision for income taxes | (27,476,000) | (53,416,000) | 31,165,000 |
(Benefit) provision for income taxes | (1,208,000) | 2,163,000 | 14,268,000 |
Net (loss) income | $ (26,268,000) | $ (55,579,000) | $ 16,897,000 |
Net (loss) income per share - basic (in dollars per share) | $ (0.51) | $ (1.09) | $ 0.33 |
Net (loss) income per share - diluted (in dollars per share) | $ (0.51) | $ (1.09) | $ 0.32 |
Weighted average shares outstanding | |||
Basic (in shares) | 51,524 | 50,910 | 51,533 |
Diluted (in shares) | 51,524 | 50,910 | 52,089 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Statement of Comprehensive Income [Abstract] | |||
Net (loss) income | $ (26,268) | $ (55,579) | $ 16,897 |
Other comprehensive income (loss): | |||
Impact of defined benefit plans, net of tax | 5,220 | 1,431 | (4,331) |
Foreign currency translation adjustment | (7,336) | (1,987) | (23,710) |
Unrealized (loss) gain on cash flow hedges, net of tax | (364) | (3,938) | 11,371 |
Reclassifications into earnings of cash flow hedge losses (gains), net of tax | 4,647 | (8,822) | (6,464) |
Other comprehensive income (loss) | 2,167 | (13,316) | (23,134) |
Comprehensive loss | $ (24,101) | $ (68,895) | $ (6,237) |
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands |
Apr. 01, 2017 |
Apr. 02, 2016 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,184 | $ 2,253 |
Intangible assets, accumulated amortization | $ 215,772 | $ 190,816 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 52,255,495 | 50,932,348 |
Common stock, outstanding (in shares) | 52,255,495 | 50,932,348 |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
12 Months Ended |
---|---|
Apr. 01, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION Haemonetics is a global healthcare company dedicated to providing a suite of innovative hematology products and solutions to customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets, including blood and plasma component collection, the surgical suite, and hospital transfusion services. Blood and its components (plasma, platelets, and red cells) have many vital - and frequently life-saving - clinical applications. Plasma is used for patients with major blood loss and is manufactured into biopharmaceuticals to treat a variety of illnesses, including immune diseases and coagulation disorders. Red cells treat trauma patients or patients undergoing surgery with high blood loss, such as open heart surgery or organ transplant. Platelets have many uses in patient care, including supporting cancer patients undergoing chemotherapy. Blood is essential to a modern healthcare system. Haemonetics develops and markets a wide range of devices and solutions to serve our customers. We provide plasma collection systems and software which enable plasma fractionators to make life saving pharmaceuticals. We provide analytical devices for measuring hemostasis which enable healthcare providers to better manage their patients’ bleeding risk. Haemonetics makes blood processing systems and software which make blood donation more efficient and track life giving blood components. Finally, Haemonetics supplies systems and software which facilitate blood transfusions and cell processing. The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements present separately our financial position, results of operations, cash flows, and changes in shareholders’ equity. All amounts presented, except per share amounts, are stated in thousands of U.S. dollars, unless otherwise indicated. Operating results for fiscal 2017 include an overstatement of inventory related charges due to the correction of capitalized manufacturing variances and corrections of certain out of period items. Absent these corrections, our operating loss for the fiscal year ended April 1, 2017 would have been $2.4 million lower than the amount included in the accompanying consolidated statements of (loss) income and comprehensive loss. Operating results for fiscal 2016 include the correction of an overstated liability in fiscal 2014, the correction of capitalized manufacturing variances identified during fiscal 2017 and corrections of certain other out of period items, all of which were determined to be immaterial to all periods impacted. Absent these corrections, our net loss for the fiscal year ended April 2, 2016 would have been $3.5 million higher than the amount included in the accompanying consolidated statements of (loss) income and comprehensive loss. We consider events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. Refer to Note 19, Subsequent Events, for information pertaining to the sale of a product line which occurred after the balance sheet date but prior to the issuance of the financial statements. There were no other material subsequent events identified. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year Our fiscal year ends on the Saturday closest to the last day of March. Fiscal 2017 and 2015 include 52 weeks with each quarter having 13 weeks. Fiscal 2016 includes 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks. Principles of Consolidation The accompanying consolidated financial statements include all accounts including those of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from the amounts derived from our estimates and assumptions. We consider estimates to be critical if we are required to make assumptions about material matters that are uncertain at the time of estimation or if materially different estimates could have been made or it is reasonably likely that the accounting estimate will change from period to period. The following are areas considered to be critical and require management’s judgment: revenue recognition, allowance for doubtful accounts, inventory provisions, intangible asset and goodwill valuation, legal and other judgmental accruals, and income taxes. Reclassifications Certain reclassifications have been made to prior years' amounts to conform to the current year's presentation. Contingencies We may become involved in various legal proceedings that arise in the ordinary course of business, including, without limitation, patent infringement, product liability and environmental matters. Accruals recorded for various contingencies including legal proceedings, employee related litigation, self-insurance and other claims are based on judgment, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarially determined estimates. When a loss is probable and a range of loss is established but a best estimate cannot be made, we record the minimum loss contingency amount, which could be zero. These estimates are often initially developed substantially earlier than the ultimate loss is known, and the estimates are reevaluated each accounting period, as additional information is available. As information becomes known, an additional loss provision is recorded when either a best estimate can be made or the minimum loss amount is increased. When events result in an expectation of a more favorable outcome than previously expected, our best estimate is changed to a lower amount. Revenue Recognition Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 605, Revenue Recognition, and ASC Topic 985-605, Software. These standards require that revenues are recognized when persuasive evidence of an arrangement exists, product delivery, including customer acceptance, has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We may have multiple contracts with the same customer, and each contract is typically treated as a separate arrangement. When more than one element such as equipment, disposables, and services are contained in a single arrangement, we allocate revenue between the elements based on each element’s relative selling price, provided that each element meets the criteria for treatment as a separate unit of accounting. An item is considered a separate unit of accounting if it has value to the customer on a stand-alone basis. The selling price of the undelivered elements is determined by the price charged when the element is sold separately, or in cases when the item is not sold separately, by third-party evidence of selling price or by management's best estimate of selling price. For our software arrangements accounted for under the provisions of ASC 985-605, Software, we establish fair value of undelivered elements based upon vendor specific objective evidence. We offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum potential rebate or discount that could be earned. In circumstances where we provide upfront rebate payments to customers, we capitalize the rebate payments and amortize the resulting asset as a reduction of revenue using a systematic method over the life of the contract. Product Revenues Product sales consist of the sale of our disposable blood component collection and processing sets and the related equipment. On product sales to end customers, revenue is recognized when both the title and risk of loss have transferred to the customer as determined by the shipping terms and all obligations have been completed. For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment of these products to our distributors. Our standard contracts with our distributors state that title to the equipment passes to the distributors at point of shipment to a distributor’s location. The distributors are responsible for shipment to the end customer along with installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. We also place equipment at customer sites. While we retain ownership of this equipment, the customer has the right to use it for a period of time provided they meet certain agreed to conditions. We recover the cost of providing the equipment from the sale of disposables. Software Revenues We offer a variety of software solutions to support our plasma, blood collection and hospital customers. We provide information technology platforms and technical support for donor recruitment, blood and plasma testing laboratories, and for efficient and compliant operations of blood and plasma collection centers. For plasma customers, we also provide information technology platforms for managing distribution of plasma from collection centers to plasma fractionation facilities. For hospitals, we provide solutions to help improve patient safety, reduce cost and ensure compliance. Our software revenues also include revenue from software sales which includes per collection or monthly subscription fees for the license and support of the software as well as hosting services. A significant portion of our software sales are perpetual licenses typically accompanied with significant implementation service fees related to software customization as well as other professional and technical service fees. We generally recognize revenue from the sale of perpetual licenses on a percentage-of-completion basis which requires us to make reasonable estimates of the extent of progress toward completion of the contract. These arrangements most often include providing customized implementation services to our customer. We also provide other services, including in some instances hosting, technical support, and maintenance, for the payment of periodic, monthly, or quarterly fees. We recognize these fees and charges as earned, typically as these services are provided during the contract period. Non-Income Taxes We are required to collect sales or valued added taxes in connection with the sale of certain of our products. We report revenues net of these amounts as they are promptly remitted to the relevant taxing authority. We are also required to pay a medical device excise tax relating to U.S. sales of Class I, II and III medical devices. This excise tax went into effect January 1, 2013, established as part of the March 2010 U.S. healthcare reform legislation, and has been included in selling, general and administrative expenses. In December 2015, this tax was suspended for two years, beginning on January 1, 2016. This tax may be imposed again beginning on January 1, 2018, unless the suspension is extended or the medical device excise tax is permanently repealed. Translation of Foreign Currencies All assets and liabilities of foreign subsidiaries are translated at the rate of exchange at year-end while sales and expenses are translated at an average rate in effect during the year. The net effect of these translation adjustments is shown in the accompanying financial statements as a component of stockholders' equity. Foreign currency transaction gains and losses, including those resulting from intercompany transactions, are charged directly to earnings and included in other expense, net on the consolidated statements of (loss) income. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned, are recorded in accumulated other comprehensive loss on the consolidated balance sheet. Cash and Cash Equivalents Cash equivalents include various instruments such as money market funds, U.S. government obligations and commercial paper with maturities of three months or less at date of acquisition. Cash and cash equivalents are recorded at cost, which approximates fair market value. As of April 1, 2017, our cash and cash equivalents consisted of investments in United States Government Agency and institutional money market funds. Allowance for Doubtful Accounts We establish a specific allowance for customers when it is probable that they will not be able to meet their financial obligation. Customer accounts are reviewed individually on a regular basis and appropriate reserves are established as deemed appropriate. We also maintain a general reserve using a percentage that is established based upon the age of our receivables and our collection history. We establish allowances for balances not yet due and past due accounts based on past experience. Inventories Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method. We have based our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales. Significant changes in the timing or level of demand for our products results in recording additional provisions for excess, expired and obsolete inventory. Additionally, uncertain timing of next-generation product approvals, variability in product launch strategies, non-cancelable purchase commitments, product recalls and variation in product utilization all affect our estimates related to excess, expired and obsolete inventory. Property, Plant and Equipment Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows:
We evaluate the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives. All property, plant and equipment are also tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Our installed base of devices includes devices owned by us and devices sold to the customer. The asset on our balance sheet classified as Haemonetics equipment consists of medical devices installed at customer sites but owned by Haemonetics. Generally the customer has the right to use it for a period of time as long as they meet the conditions we have established, which among other things, generally include one or more of the following:
Consistent with the impairment tests noted below for other intangible assets subject to amortization, we review Haemonetics equipment and their related useful lives at least once a year, or more frequently if certain conditions arise, to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. To conduct these reviews we estimate the future amount and timing of demand for disposables used with these devices, from which we generate revenues. We also consider product life cycle in our evaluation of useful life and recoverability. Changes in expected demand can result in additional depreciation expense, which is classified as cost of goods sold. Any significant unanticipated changes in demand could impact the value of our devices and our reported operating results. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repairs are generally expensed to operations as incurred. When the repair or maintenance costs significantly extend the life of the asset, these costs may be capitalized. When equipment and improvements are sold or otherwise disposed of, the asset cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss, if any, is included in the consolidated statements of (loss) income. Goodwill and Intangible Assets Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized. Instead goodwill is reviewed for impairment at least annually in accordance with ASC Topic 350, Intangibles - Goodwill and Other ("Topic 350"), or on an interim basis between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We perform our annual impairment test on the first day of the fiscal fourth quarter for each of our reporting units. In fiscal 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. Under this amendment, entities perform their goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. We determine our reporting units 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. We aggregate components within an operating segment that have similar economic characteristics. Our reporting units for purposes of assessing goodwill impairment are organized primarily based on operating segments and geography and include: (a) North America Plasma, (b) North America Blood Center, (c) North America Hospital, (d) Europe, Middle East, and Africa (collectively "EMEA"), (e) Asia-Pacific and (f) Japan. In the prior period, North America Blood Center and North America Hospital were components of a single reporting unit, Americas Blood Center and Hospital. During the fourth quarter of fiscal 2017, we completed certain organizational changes which resulted in the disaggregation of Americas Blood Center and Hospital into two separate reporting units. The goodwill associated with the legacy Americas Blood Center and Hospital reporting unit was allocated to the North America Blood Center and North America Hospital reporting units based on their relative fair values. The North America Plasma reporting unit is a separate operating segment with dedicated segment management due to the size and scale of the Plasma business unit. When allocating goodwill from business combinations to our reporting units, we assign goodwill to the reporting units that we expect to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing our goodwill impairment tests, assets and liabilities, including corporate assets, which relate to a reporting unit’s operations, and would be considered in determining its fair value, are allocated to the individual reporting units. We allocate assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. In fiscal 2017 and 2016, we used the income approach, specifically the discounted cash flow method, to derive the fair value of each of our reporting units in preparing our goodwill impairment assessments. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. We selected this method as being the most meaningful in preparing our goodwill assessments because the use of the income approach typically generates a more precise measurement of fair value than the market approach. In applying the income approach to our accounting for goodwill, we make assumptions about the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The amount and timing of future cash flows within our discounted cash flow analysis is based on our most recent operational budgets, long range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in our discounted cash flow analysis and reflects our best estimates for stable, perpetual growth of our reporting units. We use estimates of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rates to apply to our reporting units’ future expected cash flows. We corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation and by reconciling the aggregate fair value of our reporting units to our market capitalization at the time of the test. During the fourth quarter of fiscal 2017, we performed our annual goodwill impairment test under the guidelines of ASU No. 2017-04. The results of the goodwill impairment test performed indicated that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of North America Blood Center, for which we recorded an impairment charge of $57.0 million, which represented the entire goodwill balance associated with this reporting unit. There were no other reporting units at risk of impairment as of the fiscal 2017 annual test date. During fiscal 2016, we recorded a goodwill impairment charge of $66.3 million associated with the EMEA reporting unit. At the time the impairment assessment was performed, this represented the entire goodwill balance of this reporting unit. During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of the All Other operating segment became components of the EMEA operating segment. As a result, we transferred $20.5 million of goodwill to the EMEA operating segment, which represented the portion of the goodwill associated with these components. Refer to Note 5, Goodwill and Intangible Assets, for additional details regarding the goodwill impairments recorded. We review intangible assets subject to amortization for impairment at least annually or more frequently if certain conditions arise to determine if any adverse conditions exist that would indicate that the carrying value of an asset or asset group may not be recoverable, or that a change in the remaining useful life is required. Conditions indicating that an impairment exists include but are not limited to a change in the competitive landscape, internal decisions to pursue new or different technology strategies, a loss of a significant customer or a significant change in the marketplace including prices paid for our products or the size of the market for our products. When an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). If we determine the estimate of an intangible asset's remaining useful life should be reduced based on our expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. During fiscal 2017, 2016 and 2015, we determined that there were potential impairment indicators for certain intangible assets subject to amortization. As such, we performed the recoverability test described above for the relevant asset groups. In fiscal 2017 and 2016, we determined that the undiscounted cash flows did not support the carrying value of certain identified asset groups and made the decision to discontinue the use of and investment in these assets. Accordingly, we recorded impairment charges of $4.8 million and $25.8 million, respectively, in fiscal 2017 and 2016. The impairment charges in fiscal 2017 consisted of non-core and underperforming assets while the $25.8 million of impairment charges recorded in fiscal 2016 consisted of $18.7 million related to the write down of the SOLX intangible assets and $7.1 million related to intangible assets that were identified as part of the Company's global strategic review. In fiscal 2015, we determined that the expected undiscounted cash flows exceeded the carrying value of the asset groups identified. See Note 5, Goodwill and Intangible Assets, to our consolidated financial statements contained in Item 8 for additional information. Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed ASC Topic 985-20, Software, specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers, at which point capitalized costs are amortized over their estimated useful life of five to 10 years. Technological feasibility is established when we have a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. We capitalize costs associated with both software that we sell as a separate product and software that is embedded in a device. We review the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. During fiscal 2017 and fiscal 2016, we recorded $4.0 million and $6.0 million, respectively, of impairment charges related to the discontinuance of certain capitalized software projects. In the future, the net realizable value may be adversely affected by the loss of a significant customer or a significant change in the market place, which could result in an impairment being recorded. Other Current Liabilities Other current liabilities represent items payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were:
Other Long-Term Liabilities Other long-term liabilities represent items that are not payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were:
Research and Development Expenses All research and development costs are expensed as incurred. Advertising Costs All advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of (loss) income. Advertising expenses were $2.5 million, $3.9 million, and $4.5 million in fiscal 2017, 2016 and 2015, respectively. Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses. Freight is classified in cost of goods sold when the customer is charged for freight and in selling, general and administration when the customer is not explicitly charged for freight. Income Taxes The income tax provision is calculated for all jurisdictions in which we operate. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items which are taxable or deductible in different periods for tax and accounting purposes and are recorded as deferred tax assets and liabilities. Deferred tax assets are evaluated for realizability and a valuation allowance is maintained for the portion of our deferred tax assets that are not more-likely-than-not realizable. All available evidence, both positive and negative, has been considered to determine whether, based on the weight of that evidence, a valuation allowance is needed against the deferred tax assets. Significant weight has been given to our consolidated worldwide cumulative loss position for the current and prior two years. We file income tax returns in all jurisdictions in which we operate. We record a liability for uncertain tax positions taken or expected to be taken in income tax returns. Our financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. We record a liability for the portion of unrecognized tax benefits claimed which we have determined are not more-likely-than-not realizable. These tax reserves have been established based on management's assessment as to the potential exposure attributable to our uncertain tax positions as well as interest and penalties attributable to these uncertain tax positions. All tax reserves are analyzed quarterly and adjustments are made as events occur that result in changes in judgment. We evaluate at the end of each reporting period whether some or all of the undistributed earnings of our foreign subsidiaries are permanently reinvested. We recognize deferred income tax liabilities to the extent that management asserts that undistributed earnings of its foreign subsidiaries are not permanently reinvested or will not be permanently reinvested in the future. Our position is based upon several factors including management’s evaluation of the Company and its subsidiaries’ financial requirements, the short term and long-term operational and fiscal objectives of the Company, and the tax consequences associated with the repatriation of earnings. Derivative Instruments We account for our derivative financial instruments in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) and ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for the change in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative as a hedging instrument for accounting purposes, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. In addition, ASC 815 provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. We do not use derivative financial instruments for trading or speculation purposes. When the underlying hedged transaction affects earnings, the gains or losses on the forward foreign exchange rate contracts designated as hedges are recorded in net revenues, cost of goods sold, operating expenses and other expense, net in our consolidated statements of (loss) income, depending on the nature of the underlying hedged transactions. The cash flows related to the gains and losses are classified in the consolidated statements of cash flows as part of cash flows from operating activities. For those derivative instruments that are not designated as part of a hedging relationship we record the gains or losses in earnings currently. These gains and losses are intended to offset the gains and losses recorded on net monetary assets or liabilities that are denominated in foreign currencies. We recorded foreign currency losses of $1.8 million, $1.4 million, and $1.1 million in fiscal 2017, 2016 and 2015, respectively. On a quarterly basis, we assess whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. We manage the credit risk of the counterparties by dealing only with institutions that we consider financially sound and consider the risk of non-performance to be remote. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives are intended to offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC Topic 815. Stock-Based Compensation We expense the fair value of stock-based awards granted to employees, board members and others, net of estimated forfeitures. To calculate the grant-date fair value of our stock options we use the Black-Scholes option-pricing model and for performance share units and market stock units we use Monte Carlo simulation models. Valuation of Acquisitions We allocate the amounts we pay for each acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition, including acquired identifiable intangible assets. We base the estimated fair value of identifiable intangible assets on detailed valuations that use historical information and market assumptions based upon the assumptions of a market participant. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. Concentration of Credit Risk and Significant Customers Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. In fiscal 2017 and 2016, one one plasma collection customer accounted for 14% and 11% of our net revenues, respectively. In fiscal 2015 no customer accounted for more than 10% of our net revenues. Certain other markets and industries can expose us to concentrations of credit risk. For example, in our Plasma business unit, our sales are concentrated with several large customers. As a result, our accounts receivable extended to any one of these biopharmaceutical customers can be significant at any point in time. Also, a portion of our trade accounts receivable outside the United States include sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries’ national economies. We have not incurred significant losses on government receivables. We continually evaluate all government receivables for potential collection risks associated with the availability of government funding and reimbursement practices. If the financial condition of customers or the countries’ healthcare systems deteriorate such that their ability to make payments is uncertain, allowances may be required in future periods. Recent Accounting Pronouncements Standards Implemented In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. We adopted ASU No. 2014-12 in our first quarter of fiscal 2017 using the prospective method. The adoption of ASU No. 2014-12 did not have a material effect on our financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. Part I of ASU No. 2015-12 designates contract value as the only required measure for fully benefit-responsive investment contracts. Part II simplifies the investment disclosure requirements under Topics 820, 960, 962, and 965 for employee benefits plans and Part III provides a measurement date practical expedient for fiscal periods that do not coincide with a month-end date. ASU No. 2015-12 was effective for fiscal years beginning after December 15, 2015 with early adoption permitted. The adoption of ASU No. 2015-12 did not have a material effect on our financial position or results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance is effective for all entities in the first annual period ending after December 15, 2016; however, early adoption is permitted. We adopted ASU No. 2014-15 in the fourth quarter of fiscal 2017. The adoption of ASU No. 2014-15 did not have a material impact our financial position or results of operations since there was no uncertainty about our ability to continue as a going concern. In January 2017, the FASB issued ASC Update No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The purpose of Update No. 2017-04 is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the impaired fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. We early adopted ASU No. 2017-04 in fiscal 2017 on a prospective basis. |
PRODUCT WARRANTIES |
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PRODUCT WARRANTIES | PRODUCT WARRANTIES We generally provide a warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary.
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INVENTORIES |
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INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method.
Inventories include specific charges and reserves of $11.0 million and $9.4 million for fiscal 2017 and fiscal 2016, respectively, primarily related to changes in demand for Blood Center products and the impact of the whole blood product recall in fiscal 2017. |
GOODWILL AND INTANGIBLE ASSETS |
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GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Impairment Testing and Charges Under ASC Topic 350, Intangibles - Goodwill and Other, goodwill and intangible assets determined to have indefinite useful lives are not amortized. Instead these assets are evaluated for impairment at least annually, or on an interim basis between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We perform our annual impairment test on the first day of the fiscal fourth quarter for each of our reporting units. Our reporting units for purposes of assessing goodwill impairment are organized primarily based on operating segments and geography and include: (a) North America Plasma, (b) North America Blood Center, (c) North America Hospital, (d) EMEA, (e) Asia-Pacific and (f) Japan. In the prior period, North America Blood Center and North America Hospital were components of a single reporting unit, Americas Blood Center and Hospital. During the fourth quarter of fiscal 2017, we completed certain organizational changes which resulted in the disaggregation of Americas Blood Center and Hospital into two separate reporting units. The goodwill associated with the legacy Americas Blood Center and Hospital reporting unit was allocated to the North America Blood Center and North America Hospital reporting units based on their relative fair values. The North America Plasma reporting unit is a separate operating segment with dedicated segment management due the size and scale of the Plasma business unit. In fiscal 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. Under this amendment, entities perform their goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. We utilized a discounted cash flow approach in order to value our reporting units for the test, which required that we forecast future cash flows of the reporting units and discount the cash flow stream based upon a weighted average cost of capital that was derived, in part, from comparable companies within similar industries. The discounted cash flow calculations also included a terminal value calculation that was based upon an expected long-term growth rate for the applicable reporting unit. We believe that our procedures for estimating discounted future cash flows, including the terminal valuation, were reasonable and consistent with market conditions at the time of estimation. We corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation and by reconciling the aggregate fair value of our reporting units to our market capitalization at the time of the test. The results of the goodwill impairment test performed in the fourth quarter of fiscal 2017 indicated that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of North America Blood Center. For North America Blood Center we recorded an impairment charge of $57.0 million, which represented the entire goodwill balance associated with this reporting unit. There were no other reporting units at risk of impairment as of the fiscal 2017 annual test date. During fiscal 2016, we recorded a goodwill impairment charge of $66.3 million associated with the EMEA reporting unit. At the time the impairment assessment was performed, this represented the entire goodwill balance of this reporting unit. During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of the Americas Blood Center and Hospital operating segment became components of the EMEA operating segment. As a result, we transferred $20.5 million of goodwill to the EMEA operating segment, which represented the portion of the goodwill associated with these components. The changes in the carrying amount of goodwill by operating segment for fiscal 2017 and 2016 are as follows:
Intangible Asset Impairment During fiscal 2017, we impaired $4.8 million of intangible assets as a result of our review of non-core and underperforming assets and our decision to discontinue the use of and investment in certain assets, of which $4.0 million was included within cost of goods sold and $0.8 million was included within impairment of assets on the consolidated statements of (loss) income. These impairments impacted our All Other reportable segment. During fiscal 2016, we recorded intangible asset impairment charges of $25.8 million, of which $6.6 million was included within cost of goods sold, while the remaining $19.2 million was included within impairment of assets on the consolidated statements of (loss) income. Of these intangible impairments, $6.6 million related to EMEA and the remaining $19.2 million related to our All Other reportable segment. These impairment charges primarily related to the SOLX technology acquired from Hemerus Medical, LLC, which resulted in impairment charges of $18.7 million and included the reversal of the $4.9 million of contingent consideration associated with the acquisition. The remaining $7.1 million of impairment charges recorded in fiscal 2016 was due to changes in the strategic direction of the Company. The gross carrying amount of intangible assets and the related accumulated amortization as of April 1, 2017 and April 2, 2016 is as follows:
Intangible assets include the value assigned to license rights and other developed technology, patents, customer contracts and relationships and trade names. The estimated useful lives for all of these intangible assets are 2 to 19 years. The changes to the net carrying value of our intangible assets from April 2, 2016 to April 1, 2017 reflect the impact of amortization expense and impairments of intangible assets, partially offset by the investment in capitalized software. Aggregate amortization expense for amortized intangible assets for fiscal 2017 and 2016 was $37.2 million and $59.3 million, respectively, which included $4.0 million and $25.4 million, respectively, of amortization expense as a result of the intangible asset impairments discussed above. Fiscal 2015 amortization expense was $33.5 million. Future annual amortization expense on intangible assets is estimated to be as follows:
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DERIVATIVES AND FAIR VALUE MEASUREMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | DERIVATIVES AND FAIR VALUE MEASUREMENTS We manufacture, market and sell our products globally. For the fiscal year ended April 1, 2017, 41.0% of our sales were generated outside the U.S. in local currencies. We also incur certain manufacturing, marketing and selling costs in international markets in local currency. Accordingly, our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. Dollar, our reporting currency. We have a program in place that is designed to mitigate our exposure to changes in foreign currency exchange rates. That program includes the use of derivative financial instruments to minimize for a period of time, the impact on our financial results from changes in foreign exchange rates. We utilize foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily the Japanese Yen and the Euro, and to a lesser extent the Swiss Franc, Australian Dollar, Canadian Dollar and the Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates, but because we generally enter into forward contracts one year out, rates are fixed for a one-year period, thereby facilitating financial planning and resource allocation. Designated Foreign Currency Hedge Contracts All of our designated foreign currency hedge contracts as of April 1, 2017 and April 2, 2016 were cash flow hedges under ASC Topic 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income (loss) until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, we would reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $68.4 million as of April 1, 2017 and $107.4 million as of April 2, 2016. During fiscal 2017, we recognized net losses of $4.6 million in earnings on our cash flow hedges, compared to recognized net gains of $8.8 million and $6.5 million during fiscal 2016 and 2015, respectively. For the fiscal year ended April 1, 2017, a $0.5 million loss, net of tax, was recorded in accumulated other comprehensive loss to recognize the effective portion of the fair value of any designated foreign currency hedge contracts that are, or previously were, designated as foreign currency cash flow hedges, as compared to a loss of $3.9 million, net of tax, for the fiscal year ended April 2, 2016 and a gain of $12.2 million, net of tax, for the fiscal year ended March 28, 2015. At April 1, 2017, losses of $0.5 million, net of tax, will be reclassified to earnings within the next twelve months. All currency cash flow hedges outstanding as of April 1, 2017 mature within twelve months. Non-Designated Foreign Currency Contracts We manage our exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. We use foreign currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These foreign currency forward contracts are entered into for periods consistent with currency transaction exposures, generally one month. They are not designated as cash flow or fair value hedges under ASC Topic 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. We had non-designated foreign currency hedge contracts under ASC Topic 815 outstanding in the contract amount of $55.4 million as of April 1, 2017 and $48.8 million as of April 2, 2016. Interest Rate Swaps On December 21, 2012, we entered into two interest rate swap agreements (the "Swaps") on a total notional value of $250.0 million of debt. The Swaps are amortizing and mature on August 1, 2017. We designated the Swaps as cash flow hedges of variable interest rate risk associated with $250.0 million of indebtedness. As of April 1, 2017, the notional amount of these Swaps was $50.0 million. For fiscal 2017, 2016 and 2015, we recorded nominal activity in accumulated other comprehensive loss to recognize the effective portion of the fair value of the Swaps that qualify as cash flow hedges. Fair Value of Derivative Instruments The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of loss and comprehensive loss for the fiscal year ended April 1, 2017.
We did not have fair value hedges or net investment hedges outstanding as of April 1, 2017 or April 2, 2016. As of April 1, 2017, we have not recognized any deferred tax assets or deferred tax liabilities for designated foreign currency hedges. ASC Topic 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, current interest rate curves, interest rate volatilities, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of April 1, 2017, we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC Topic 815, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments. The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets:
Other Fair Value Measurements ASC Topic 820 defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC Topic 820 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In accordance with ASC Topic 820, for the fiscal years ended April 1, 2017 and April 2, 2016, we applied the requirements under ASC Topic 820 to our non-financial assets and non-financial liabilities. On a recurring basis, we measure certain financial assets and financial liabilities at fair value, including our money market funds, foreign currency hedge contracts, and contingent consideration. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We base fair value upon quoted market prices, where available. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows:
Our money market funds carried at fair value are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Fair Value Measured on a Recurring Basis Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following:
Other Fair Value Disclosures The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. Details pertaining to the Term Loan can be found in Note 7, Notes Payable and Long-Term Debt. |
NOTES PAYABLE AND LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT Notes payable and long-term debt consisted of the following:
On August 1, 2012, we entered into a credit agreement ("Credit Agreement") with certain lenders (together, “Lenders”) which provided for a $475.0 million term loan ("Term Loan") and a $50.0 million revolving loan (“Revolving Credit Facility” and together with the Term Loan, the “Credit Facilities”). On June 30, 2014, we modified our existing Credit Facilities by extending the maturity date to July 1, 2019, extending the principal repayments of the Term Loan, and modifying certain restrictive covenants to allow greater operational flexibility and enhanced near term liquidity. The amended Credit Agreement provides for a $100.0 million Revolving Credit Facility and establishes interest rates in the range of LIBOR plus 1.125% to 1.500% depending on certain conditions. At April 1, 2017, $315.4 million was outstanding under the Term Loan with an interest rate of 2.25% and no amount was outstanding on the Revolving Credit Facility. No additional amounts were borrowed as a result of this modification. The fair value of debt approximates its current value of approximately $315.4 million as of April 1, 2017. Under the terms of this Credit Agreement, the Company may borrow at a spread to an index, including the LIBOR index of 1-month, 3-months, 6-months, etc. From the date of the Credit Agreement, the Company has chosen to borrow against the 1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1%. The terms of the Credit Agreement also allow the Company to borrow in multiple tranches. The Company currently borrows in four tranches. Interest for the Credit Facilities was based on Adjusted LIBOR plus a range of 1.125% to 1.500% depending on the achievement of leverage ratios and customary credit terms which included financial and negative covenants. Revolving loans may be borrowed, repaid and re-borrowed to fund our working capital needs and for other general corporate purposes. The current margin of the Term Loan is 1.250% over Adjusted LIBOR and our effective interest rate inclusive of prepaid financing costs and other fees was approximately 2.25% as of April 1, 2017. The Term Loan or portions thereof may be prepaid at any time, or from time to time without penalty. Once repaid, such amount may not be re-borrowed. Under the Credit Facilities, we are required to maintain a Consolidated Total Leverage Ratio not to exceed 3.0:1.0 and a Consolidated Interest Coverage Ratio not to be less than 4.0:1.0 during periods when the Credit Facilities are outstanding. In addition, we are required to satisfy these covenants, on a pro forma basis, in connection with any new borrowings (including any letter of credit issuances) on the Revolving Credit Facility as of the time of such borrowings. The Consolidated Interest Coverage Ratio is calculated as the Consolidated EBITDA divided by Consolidated Interest Expense while the Consolidated Total Leverage Ratio is calculated as Consolidated Total Debt divided by Consolidated EBITDA. Consolidated EBITDA includes EBITDA adjusted by non-recurring and unusual transactions specifically as defined in the Credit Facilities. The Credit Facilities also contain usual and customary non-financial affirmative and negative covenants which include certain restrictions with respect to subsequent indebtedness, liens, loans and investments (including acquisitions), financial reporting obligations, mergers, consolidations, dissolutions or liquidation, asset sales, affiliate transactions, change of our business, capital expenditures, share repurchase and other restricted payments. These covenants are subject to important exceptions and qualifications set forth in the Credit Agreement. Any failure to comply with the financial and operating covenants of the Credit Facilities would prevent us from being able to borrow additional funds and would constitute a default, which could result in, among other things, the amounts outstanding including all accrued interest and unpaid fees, becoming immediately due and payable. In addition, the Credit Facilities include customary events of default, in certain cases subject to customary cure periods. As of April 1, 2017, we were in compliance with the covenants. The goodwill and intangible asset impairment charges discussed in Note 5, Goodwill and Intangible Assets, and the property, plant and equipment impairment charges discussed in Note 12, Property Plant and Equipment, are excluded from the definition of Consolidated EBITDA in the Credit Agreement. Commitment fee Pursuant to the Credit Agreement, we are required to pay the Lenders, on the last day of each calendar quarter, a commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee is subject to a pricing grid based on our Consolidated Total Leverage Ratio. The commitment fee ranges from 0.175% to 0.300%. The current commitment fee on the undrawn portion of the Revolving Credit Facility is 0.200%. Debt issuance costs and interest Expenses associated with the issuance of the Term Loan were capitalized and are amortized to interest expense over the life of the term loan using the effective interest method. As of April 1, 2017, the $315.4 million term loan balance was netted down by the $1.2 million of remaining debt discount, resulting in a net note payable of $314.2 million. Interest expense was $7.9 million and $8.5 million for fiscal years ended April 1, 2017 and April 2, 2016, respectively. Accrued interest associated with our outstanding debt is included as a component of accrued expenses and other current liabilities in the accompanying consolidated balance sheets. As of both April 1, 2017 and April 2, 2016, we had an insignificant amount of accrued interest associated with our outstanding debt. Maturity Profile The maturity profile of all gross long-term debt, exclusive of debt discounts, as of April 1, 2017 is presented below:
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Domestic and foreign income before provision for income tax is as follows:
The income tax provision from continuing operations contains the following components:
Our subsidiary in Puerto Rico has been granted a fifteen year tax grant which expires in calendar 2027. Our qualification for the tax grant is dependent on the continuation of our manufacturing activities in Puerto Rico. We benefit from a reduced tax rate on our earnings in Puerto Rico under the tax grant. Our subsidiary in Switzerland operates as a principal company for direct federal tax purposes. Operating under this structure affords our Swiss subsidiary a reduced tax rate in Switzerland. Our Swiss subsidiary also operates under a 10 year tax holiday set to expire in fiscal 2018. Our subsidiary in Malaysia has been granted a full income tax exemption to manufacture whole blood and apheresis devices that could be in effect for up to ten years, provided certain conditions are satisfied. The income tax exemption was in effect beginning June 1, 2016. Tax affected, significant temporary differences comprising the net deferred tax liability are as follows:
The valuation allowance increased by $1.6 million during fiscal 2017, primarily as the result of discrete valuation allowance establishments in several of our foreign subsidiaries, current year income and loss and tax credits generated in domestic and foreign jurisdictions in which we have concluded that our deferred tax assets are not more-likely-than-not realizable and the impact of foreign exchange. In determining the need for a valuation allowance, we have given consideration for our worldwide cumulative loss position, resulting from significant impairment and restructuring charges incurred in fiscal 2017 and 2016, when assessing the weight of the sources of taxable income that can be used to support the realizability of our deferred tax assets. We have assessed, on a jurisdictional basis, the available means of recovering deferred tax assets, including the ability to carry-back net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies and available sources of future taxable income. We have also considered the ability to implement certain strategies that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. We believe we are able to support the deferred tax assets recognized as of the end of the year based on all of the available evidence. The worldwide net deferred tax liability as of April 1, 2017 includes deferred tax liabilities related to amortizable tax basis in goodwill, which are indefinite lived and are not considered to be a source of taxable income. As of April 1, 2017, we maintain a valuation allowance against our U.S. net deferred tax assets that are not more-likely-than-not realizable and a full valuation allowance against the net deferred tax assets of certain foreign subsidiaries. As of April 1, 2017, we have U.S. federal net operating loss carry-forwards of approximately $23.3 million, U.S. state net operating loss carry-forwards of $33 million, federal tax credit carry-forwards of $15.1 million and state tax credit carry-forwards of $4.2 million that are available to reduce future taxable income. A portion of the federal net operating losses are subject to an annual limitation due to the ownership change limitations set forth under Internal Revenue Code Sections 382. Certain of the aforementioned amounts have not been recognized because they relate to excess stock based compensation. At April 1, 2017, $4.0 million of the federal net operating loss carry-forwards, $5.2 million of the state net operating loss carry-forwards, none of the federal tax credit carry-forwards and none of the state tax credit carry-forwards relate to excess stock based compensation tax deductions. We will record these off balance sheet net operating losses as a deferred tax asset, offset with an increase in the valuation allowance upon the adoption of ASU 2016-09. The federal and state net operating losses begin to expire in fiscal 2022 and 2019, respectively. The federal and state tax credits begin to expire in fiscal 2024 and 2025, respectively. Our net operating loss and tax credit carry-forwards may become subject to an annual limitation in the event of certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50 percent as defined under Section 382 and 383 of the U.S. Internal Revenue Code of 1986, respectively, as well as similar state provisions. The amount of the annual limitation is determined based on the value of the Company immediately prior to the ownership change. Subsequent ownership changes may further affect the limitation in future years. As a result, if we earn net taxable income, our ability to use our pre-change net operating loss carry-forward to offset U.S. federal taxable income may be subject to limitations, which could potentially result in increased future tax liability to us. As of April 1, 2017, we have foreign net operating losses of approximately $19.2 million that are available to reduce future income having unlimited carry-forward. As of April 1, 2017, we have provided $1.1 million of U.S. deferred taxes on approximately $8.4 million of unremitted earnings which are not indefinitely reinvested. Of this amount, $0.1 million affected the Company's effective tax rate in fiscal 2017. We have not provided U.S. deferred income taxes or foreign withholding taxes on unremitted earnings of foreign subsidiaries of approximately $233.0 million as such amounts are considered to be indefinitely reinvested in the business. The accumulated earnings in the foreign subsidiaries are primarily utilized to fund working capital requirements as our subsidiaries continue to expand their operations, to service existing debt obligations and to fund future foreign acquisitions. We do not believe it is practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations. The income tax provision from continuing operations differs from tax provision computed at the 35.0% U.S. federal statutory income tax rate due to the following:
We recorded an income tax benefit of $1.2 million, representing an effective tax rate of 4.4%. The effective tax rate differs from the U.S. statutory rate of 35.0% primarily as a result of the jurisdictional mix of earnings and losses generated in the U.S. and certain foreign subsidiaries that have a valuation allowance and therefore cannot be benefited. Other significant items impacting the rate include the tax provision related to the amortization of U.S. goodwill for tax purposes which gives rise to an indefinite lived deferred tax liability and the current year goodwill impairments. We have recorded a $0.1 million tax provision associated with the portion of unremitted foreign earnings that are not considered indefinitely reinvested. Unrecognized Tax Benefits Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of April 1, 2017, we had $3.4 million of unrecognized tax benefits, of which $1.5 million would impact the effective tax rate, if recognized. As of April 2, 2016, we had $2.5 million of unrecognized tax benefits, of which $0.6 million would impact the effective tax rate, if recognized. At March 28, 2015, we had $7.1 million of unrecognized tax benefits, all of which $2.0 million would impact the effective tax rate, if recognized. During the fiscal year ended April 1, 2017 our unrecognized tax benefits were increased by $0.8 million. An increase of $1.3 million in our uncertain tax positions was triggered by a reduction in workforce which impacts a previously negotiated tax holiday that requires us to maintain certain levels of headcount for a multi-year period. The establishment of this tax reserve is offset by the release of other reserves as a result of the closure of tax statutes of limitations. The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal years ended April 1, 2017, April 2, 2016 and March 28, 2015:
As of April 1, 2017 we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $1.5 million in the next twelve months, as a result of closure of various statutes of limitations and potential settlements with tax authorities. Our historic practice has been and continues to be to recognize interest and penalties related to federal, state and foreign income tax matters in income tax expense. Approximately $0.2 million and $0.4 million of gross interest and penalties were accrued at April 1, 2017 and April 2, 2016, respectively, and is not included in the amounts above. There was a benefit included in tax expense associated with accrued interest and penalties of $0.2 million, $0.3 million and $0.3 million for the periods ended April 1, 2017, April 2, 2016 and March 28, 2015, respectively. We conduct business globally and, as a result, file consolidated and separate federal, state and foreign income tax returns in multiple jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. With a few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations for years before fiscal 2014 and foreign income tax examinations for years before fiscal 2012. To the extent that we have tax attribute carry-forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue Service, state, or foreign tax authorities to the extent utilized in a future period. |
COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We lease facilities and certain equipment under operating leases expiring at various dates through fiscal 2028. Facility leases require us to pay certain insurance expenses, maintenance costs and real estate taxes. Approximate future basic rental commitments under operating leases as of April 1, 2017 are as follows:
Rent expense in fiscal 2017, 2016, and 2015 was $6.2 million, $6.8 million and $6.3 million, respectively. Some of the Company's operating leases include renewal provisions, escalation clauses and options to purchase the facilities that we lease. We are presently engaged in various legal actions, and although our ultimate liability cannot be determined at the present time, we believe, based on consultation with counsel, that any such liability will not materially affect our consolidated financial position or our results of operations. Italian Employment Litigation Our Italian manufacturing subsidiary is party to several actions initiated by former employees of our facility in Ascoli-Piceno, Italy. We ceased operations at the facility in fiscal 2014 and sold the property in fiscal 2017. These include actions claiming (i) working conditions and minimum salaries should have been established by either a different classification under their national collective bargaining agreement or a different agreement altogether, (ii) certain solidarity agreements, which are arrangements between the Company, employees and the government to continue full pay and benefits for employees who would otherwise be terminated in times of low demand, are void, and (iii) rights to payment of the extra time used for changing into and out of their working clothes at the beginning and end of each shift. In addition, a union represented in the Ascoli plant filed an action alleging that the Company discriminated against it in favor of three other represented unions by (i) interfering with an employee referendum, (ii) interfering with an employee petition to recall union representatives from office, and (iii) excluding the union from certain meetings. Finally, we have been added as defendants on claims filed against Pall Corporation prior to our acquisition of the plant in August 2012. These claims relate to agreements to "freeze" benefit allowances for a certain period in exchange for Pall's commitments on hiring and plant investment. As of April 1, 2017, the total amount of damages claimed by the plaintiffs in these matters is approximately $4.4 million. At this point in the proceedings, we believe the losses are unlikely and therefore no amounts have been accrued. In the future, we may receive adverse rulings from the courts which could change our judgment on these cases. SOLX Arbitration In July 2016, H2 Equity, LLC, formerly known as Hemerus Corporation, filed an arbitration claim for $17 million in milestone and royalty payments allegedly owed as part of our acquisition of the filter and storage solution business from Hemerus Medical, LLC ("Hemerus") in fiscal 2014. The acquired storage solution is referred to as SOLX. At the closing in April 2013, Haemonetics paid Hemerus a total of $24 million and agreed to a $3 million milestone payment due when the U.S. Food and Drug Administration ("FDA") approved a new indication for SOLX (the “24-Hour Approval”) using a filter acquired from Hemerus. We also agreed to make future royalty payments up to a cumulative maximum of $14 million based on the sale of products incorporating SOLX over a ten year period. Due to performance issues with the Hemerus filter, Haemonetics filed for, and received, the 24-Hour Approval using a Haemonetics filter. Accordingly, Haemonetics did not pay Hemerus the $3 million milestone payment because the 24-Hour Approval was obtained using a Haemonetics filter, not a Hemerus filter. In addition, we have not paid any royalties to date as we have not made any sales of products incorporating SOLX. H2 Equity claims, in part, that we owe them $3 million for the receipt of the 24-Hour Approval despite the use of a Haemonetics filter to obtain the approval and that we have failed to make commercially reasonable efforts to market and sell products incorporating SOLX. We believe that we have meritorious defenses to these claims. It is not possible to accurately evaluate the likelihood or amount of any potential losses related to this claim and therefore no amounts have been accrued. Product Recall In June 2016, we issued a voluntary recall of certain whole blood collection kits sold to our Blood Center customers in the U.S. The recall resulted from some collection sets' filters failing to adequately remove leukocytes from collected blood. As a result of the recall, our blood center customers may have conducted further tests to confirm the blood was adequately leukoreduced, sold the blood labeled as non-leukoreduced at a lower price or discarded the blood collected using the defective sets. As a result of the recall, we have recorded total charges of $7.1 million during fiscal 2017, which consists of $3.7 million of charges associated with customer returns and inventory reserves and $3.4 million of charges associated with customer claims, as discussed below. We may record incremental charges in future periods. We determined that the affected sets were distributed between April and June 2016. Credits have been issued to customers who returned affected sets purchased during this period. During fiscal 2017, we recorded charges of $3.7 million, which consisted of $2.5 million of sales returns, $1.1 million of net inventory reserves for the affected collection sets on-hand that had not yet been shipped to customers and $0.1 million of freight expenses. The $3.4 million of charges associated with customer claims are based on claims seeking reimbursement for $14.2 million in losses sustained as a result of the recall. We believe it is probable that we will incur expenses as a result of these claims and that our range of loss is $3.4 million to $14.2 million, however, we do not have sufficient information to develop a best estimate within this range. Accordingly, we have recorded a liability of $3.4 million, which represents the low end of the range. While the customers making these claims purchased substantially all the affected units, incremental charges may be recorded in future periods as additional customer returns and claims data becomes available. We have an enforceable insurance policy in place which we believe provides coverage for a portion of the claims received to date. Accordingly, as of April 1, 2017, we had an insurance receivable of $2.9 million. We will assess the potential for additional insurance recoveries as we receive more information about customer claims in future reporting periods. |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STOCK | CAPITAL STOCK Stock Plans The 2005 Long-Term Incentive Compensation Plan (the “2005 Incentive Compensation Plan”) permits the award of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock/restricted stock units, other stock units and performance shares to the Company’s key employees, officers and directors. The 2005 Incentive Compensation Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”) consisting of three independent members of our Board of Directors. The maximum number of shares available for award under the 2005 Incentive Compensation Plan is 19,824,920. The maximum number of shares that may be issued pursuant to incentive stock options may not exceed 500,000. Any shares that are subject to the award of stock options shall be counted against this limit as one share for every one share issued. Any shares that are subject to awards other than stock options shall be counted against this limit as 3.02 shares for every one share granted. The total shares available for future grant as of April 1, 2017 were 5,045,728. Stock-Based Compensation Compensation cost related to stock-based transactions is recognized in the consolidated financial statements based on fair value. The total amount of stock-based compensation expense, which is recorded on a straight line basis, was as follows:
We did not recognize an income tax benefit associated with our stock-based compensation arrangements for the fiscal years ended April 1, 2017 and April 2, 2016. We recognized an income tax benefit associated with our stock-based compensation arrangements of $4.5 million for the fiscal year ended March 28, 2015. There was no excess cash tax benefit classified as a financing cash inflow in fiscal 2017 and 2016. The excess cash tax benefit classified as a financing cash inflow in fiscal 2015 was $1.6 million. Stock Options Options are granted to purchase ordinary shares at prices as determined by the Committee, but in no event shall such exercise price be less than the fair market value of the common stock at the time of the grant. Options generally vest in equal installments over a four year period for employees and one year from grant for non-employee directors. Options expire not more than 7 years from the date of the grant. The grant-date fair value of options, adjusted for estimated forfeitures, is recognized as expense on a straight line basis over the requisite service period, which is generally the vesting period. Forfeitures are estimated based on historical experience. A summary of stock option activity for the fiscal year ended April 1, 2017 is as follows:
The total intrinsic value of options exercised was $8.3 million, $4.5 million, and $5.6 million during fiscal 2017, 2016, and 2015, respectively. As of April 1, 2017, there was $4.9 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of 3.09 years. The fair value was estimated using the Black-Scholes option-pricing model based on the weighted average of the high and low stock prices at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of our common stock over the expected term of the option. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. The expected life of the option was estimated with reference to historical exercise patterns, the contractual term of the option and the vesting period. The assumptions utilized for option grants during the periods presented are as follows:
Restricted Stock Units Restricted Stock Units ("RSUs") generally vest in equal installments over a four year period for employees and one year from grant for non-employee directors. The grant-date fair value of RSUs, adjusted for estimated forfeitures, is recognized as expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair market value of RSUs is determined based on the market value of the Company’s shares on the date of grant. A summary of RSU activity for the fiscal year ended April 1, 2017 is as follows:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested were as follows:
As of April 1, 2017, there was $8.4 million of total unrecognized compensation cost related to non-vested restricted stock units. This cost is expected to be recognized over a weighted average period of 2.87 years. Performance Stock Units The grant date fair value of Performance Stock Units ("PSUs"), adjusted for estimated forfeitures, is recognized as expense on a straight line basis from the grant date through the end of the performance period. The value of these PSUs is based on relative shareholder return which equals total shareholder return for the Company as compared to total shareholder return of the PSU comparison group, measured over a three year performance period. Depending on the Company's relative performance during the performance period, a recipient of the award is entitled to receive a number of ordinary shares equal to a percentage, ranging from 0% to 200%, of the award granted. As a result, we may issue up to 569,250 shares related to these awards. If the Company’s total shareholder return for the performance period is negative, then any share payout will be capped at 100% of the target award, regardless of the Company's performance relative to the Company's comparison group. PSUs granted in fiscal 2016 and 2015 have a comparison group consisting of the Standard and Poor's ("S&P") Health Care Equipment Index, while PSUs granted in fiscal 2017 have a comparison group consisting of the S&P Small Cap 600 and the S&P Mid Cap 400 indices. In addition to these relative shareholder return PSUs, the Company's Chief Executive Officer, upon hire, received a PSU grant with performance conditions based on the financial results of the Company and other internal metrics. A summary of PSU activity for the fiscal year ended April 1, 2017 is as follows:
The Company uses the Monte Carlo model to estimate the probability of satisfying the performance criteria and the resulting fair value of PSU awards with market conditions. The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows:
The weighted-average grant-date fair value of PSUs granted was $34.07, $29.20 and $35.09 in fiscal 2017, 2016, and 2015 respectively. As of April 1, 2017, there was $7.8 million of total unrecognized compensation cost related to non-vested performance share units. This cost is expected to be recognized over a weighted average period of 2.29 years. Market Stock Units The Company used the Monte Carlo model to determine the fair value of each market stock unit granted in fiscal 2016 and 2015. The grant date fair value of Market Stock Units ("MSUs"), adjusted for estimated forfeitures, was recognized as expense on a straight line basis from the grant date through the end of the performance period. The value of these MSUs was based the performance of Haemonetics’ stock through March 31, 2017. Because Haemonetics' stock was below the minimum threshold price of $50 per share during the relevant measurement period, the holders received no market share units upon vesting. There were no MSUs granted in fiscal 2017. A summary of MSU activity for the fiscal year ended April 1, 2017 is as follows:
Employee Stock Purchase Plan The Company has an Employee Stock Purchase Plan (the “Purchase Plan”) under which a maximum of 3,200,000 shares (subject to adjustment for stock splits and similar changes) of common stock may be purchased by eligible employees. Substantially all of our full-time employees are eligible to participate in the Purchase Plan. The Purchase Plan provides for two “purchase periods” within each of our fiscal years, the first commencing on November 1 of each year and continuing through April 30 of the next calendar year, and the second commencing on May 1 of each year and continuing through October 31 of such year. Shares are purchased through an accumulation of payroll deductions (of not less than 2% or more than 15% of compensation, as defined) for the number of whole shares determined by dividing the balance in the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the beginning of the purchase period, or 85% of such value at the end of the purchase period. The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions:
The weighted average grant date fair value of the six-month option inherent in the Purchase Plan was approximately $7.79, $7.80, and $7.09 during fiscal 2017, 2016, and 2015, respectively. |
EARNINGS PER SHARE ("EPS") |
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EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (“EPS”) The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations.
Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. For fiscal 2017 and 2016, we recognized a net loss; therefore we excluded the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an anti-dilutive effect. Fiscal 2015 weighted average shares outstanding, assuming dilution, excludes the impact of 1.6 million stock options and restricted share units because either the effect would have been anti-dilutive or the performance criteria related to the units had not yet been met. |
PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following:
During fiscal 2017, we impaired $13.3 million of property, plant and equipment as a result of our review of non-core and underperforming assets and our decision to discontinue the use of and investment in certain assets, of which $0.8 million was included within impairment of assets on the consolidated statements of (loss) income and the remaining $12.5 million was included within cost of goods sold. These impairments impacted Americas Blood Center and Hospital, North America Plasma and EMEA segments by $10.6 million, $1.7 million and $1.0 million, respectively. During fiscal 2016, we impaired $9.1 million of property, plant and equipment as a result of our global strategic review, of which $6.9 million was included within impairment of assets on the consolidated statements of (loss) income and the remaining $2.2 million was included within cost of goods sold. These impairments impacted our Americas Blood Center and Hospital and EMEA segments by $3.0 million and $6.1 million, respectively. Depreciation expense was $66.5 million and $56.8 million in fiscal 2017 and fiscal 2016, respectively, which includes $10.0 million and $0.8 million, respectively, of additional depreciation expense due to asset impairments. Depreciation expense was $52.6 million for fiscal 2015. |
RETIREMENT PLANS |
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS Defined Contribution Plans We have a Savings Plus Plan (the "Plan") that is a 401(k) plan that allows our U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the Plan based upon pre-established rates. Our matching contributions amounted to approximately $5.1 million, $5.4 million, and $5.8 million in fiscal 2017, 2016, and 2015, respectively. Upon Board approval, additional discretionary contributions can also be made. No discretionary contributions were made for the Plan in fiscal 2017, 2016, or 2015. Some of our subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $0.8 million in both fiscal 2017 and 2016 and $1.0 million in fiscal 2015. Defined Benefit Plans ASC Topic 715, Compensation — Retirement Benefits, requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s over-funded status or a liability for a plan’s under-funded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit post retirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive loss on its consolidated statement of stockholders’ equity and consolidated statement of comprehensive income (loss). Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates which are subject to change. Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:
The activity under those defined benefit plans are as follows:
One of the benefit plans is funded by benefit payments made by the Company through the purchase of reinsurance contracts which do not qualify as plan assets under ASC Topic 715. Accordingly that plan has no assets included in the information presented above. The total liability for this plan was $8.8 million and $8.7 million as of April 1, 2017 and April 2, 2016, respectively, and the total asset value associated with the reinsurance contracts was $5.4 million as of both April 1, 2017 and April 2, 2016. The accumulated benefit obligation for all plans was $28.7 million and $36.4 million for the fiscal year ended April 1, 2017 and April 2, 2016, respectively. There were no plans where the plan assets were greater than the accumulated benefit obligation as of April 1, 2017 and April 2, 2016. The components of the change recorded in our accumulated other comprehensive loss related to our defined benefit plans, net of tax, are as follows (in thousands):
We expect to amortize $0.2 million from accumulated other comprehensive loss to net periodic benefit cost during fiscal 2018. The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:
Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets. We have no other material obligation for post-retirement or post-employment benefits. Our investment policy for pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements. ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of our defined benefit pension plan at fair value as of April 1, 2017. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 6, Derivatives and Fair Value Measurements, all of the assets of the Company’s plan are classified within Level 2 of the fair value hierarchy because the plan assets are primarily insurance contracts. Expected benefit payments for both plans are estimated using the same assumptions used in determining the company’s benefit obligation at April 1, 2017. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. Estimated future benefit payments are as follows:
The Company's contributions for fiscal 2018 are expected to be consistent with the current year. |
SEGMENT AND ENTERPRISE-WIDE INFORMATION |
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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 unit. We aggregate components within an operating segment that have similar economic characteristics. The Company’s reportable segments are as follows:
The Company has aggregated the Americas Blood Center and Hospital and Asia - Pacific operating segments into the All Other reportable segment based upon their similar operational and economic characteristics, including similarity of operating margin. 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 operating segments based on operating income. 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 turnaround 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 using internally derived standard currency exchange rates that remain constant from year to year, therefore segment information is presented on this basis. Selected information by business segment is presented below:
Long-lived assets in our principle operating regions are as follows:
In fiscal 2017, we organized our current products into four business units for purposes of evaluating their growth potential: Plasma, Blood Center, Cell Processing and Hemostasis Management. Management reviews revenue trends based on these business units, however, no other financial information is currently available on this basis. Net revenues by business unit are as follows:
Net revenues generated in our principle operating regions are as follows:
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business. During fiscal 2017, we launched a multi-year restructuring initiative designed to reposition our organization and improve our cost structure. This initiative includes a reduction of headcount and operating costs, simplification of certain product lines, and modification of manufacturing operations to align with our strategic direction. The fiscal 2017 phase was expected to incur approximately $26 million of restructuring and turnaround charges and was estimated to achieve cost savings of $40 million. During fiscal 2017, we incurred $28.7 million of restructuring and turnaround charges under this initiative and exceeded our estimated savings target of $40 million. As of April 1, 2017, this initial phase was substantially complete. Additionally, during fiscal 2017 and fiscal 2016, we recorded $5.6 million and $42.3 million, respectively, of restructuring and turnaround charges under a prior program. We continue to assess non-core and underperforming assets and evaluate opportunities to improve our cost structure as part of our turnaround and expect to incur additional charges and benefits during fiscal 2018 and beyond. The following summarizes the restructuring activity for the fiscal year ended April 1, 2017, April 2, 2016, and March 28, 2015, respectively:
The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of (loss) income. As of April 1, 2017, we had a restructuring liability of $7.5 million, of which, approximately $7.1 million is payable within the next twelve months. In addition to the restructuring expenses included in the table above, we also incurred $12.5 million, $19.2 million and $32.8 million in fiscal 2017, 2016 and 2015, respectively, of costs that do not constitute as restructuring under ASC 420, which we refer to as "Turnaround Costs". These costs consist primarily of expenditures directly related to our restructuring initiative and include program management, implementation of the global strategic review initiatives and accelerated depreciation. The tables below present restructuring and turnaround costs by reportable segment:
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CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS |
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Capitalization of Software and Development Costs [Abstract] | |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS The cost of software that is developed or obtained for internal use is accounted for pursuant to ASC Topic 350, Intangibles — Goodwill and Other. Pursuant to ASC Topic 350, we capitalize costs incurred during the application development stage of software developed for internal use, and expense costs incurred during the preliminary project and the post-implementation operation stages of development. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. For costs incurred related to the development of software to be sold, leased, or otherwise marketed, we apply the provisions of ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. We capitalized $11.0 million and $17.0 million in software development costs for ongoing initiatives during the fiscal years ended April 1, 2017 and April 2, 2016, respectively. At April 1, 2017 and April 2, 2016, we have a total of $62.7 million and $54.9 million of software costs capitalized, of which $12.7 million and $14.4 million are related to in process software development initiatives, respectively, and the remaining balance represents in-service assets that are being amortized over their useful lives. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. In connection with these development activities, we capitalized interest of $0.3 million and $0.2 million in fiscal 2017 and 2016, respectively. We amortize capitalized costs when the products are released for sale. During fiscal 2017, $9.5 million of capitalized costs were placed into service, compared to $8.7 million of capitalized costs placed into service during fiscal 2016. Amortization of capitalized software development cost expense was $9.7 million, $10.9 million and $3.2 million for fiscal 2017, 2016 and 2015, respectively. Amortization expense in fiscal 2017 and 2016 includes $4.0 million and $6.0 million of impairment charges. These impairment charges are classified within costs of goods sold on our consolidated statements of (loss) income and relate to capitalized software projects included in our All Other segment. |
SUMMARY OF QUARTERLY DATA (UNAUDITED) |
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Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF QUARTERLY DATA (UNAUDITED) | SUMMARY OF QUARTERLY DATA (UNAUDITED)
The operating results for the second and fourth quarters of fiscal 2017 and all four quarters of fiscal 2016 include certain misstatements that were determined to be immaterial both individually and in the aggregate. The misstatement in the fourth quarter of fiscal 2017 was primarily driven by the correction of an error in capitalized manufacturing variances which resulted in an overstatement of net loss in the fourth quarter of fiscal 2017 and an overstatement of net income in the second quarter of fiscal 2017 and each quarter of fiscal 2016. The operating results for the first quarter of fiscal 2016 also include the correction of an understatement of the provision for income taxes in fiscal 2015 and the operating results for the third quarter of fiscal 2016 also include the correction of an overstated liability in fiscal 2014. Below is a summary of the net overstatement/(understatement) of the Company’s reported operating income and net income for the second and fourth quarters of fiscal 2017 and all four quarters of fiscal 2016 as a result of the misstatements in each reporting period. In the fourth quarter of fiscal 2017 and the first, third and fourth quarters of fiscal 2016, the Company reported an operating loss, a net loss or both. For such periods, an understatement of income means that the reported loss was too high, while an overstatement of income means that the reported loss was too low.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a roll-forward of the components of accumulated other comprehensive loss, net of tax, for the years ended April 1, 2017 and April 2, 2016:
The details about the amount reclassified from accumulated other comprehensive loss for the years ended April 1, 2017 and April 2, 2016 are as follows:
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SUBSEQUENT EVENTS |
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Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On April 27, 2017, we sold our SEBRA sealers product line to Machine Solutions Inc. because it was no longer aligned with our long-term strategic objectives. In connection with this transaction, we received net proceeds of $9 million. These proceeds are subject to a post-closing adjustment based on final asset values as determined during the 90 days transition period. The preliminary pre-tax gain expected to be recorded as a result of this transaction is $8 million. The SEBRA portfolio includes a suite of products which primarily include radio frequency sealers that are used to seal tubing as part of the collection of whole blood and blood components, particularly plasma. |
VALUATION AND QUALIFYING ACCOUNTS |
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VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II HAEMONETICS CORPORATION VALUATION AND QUALIFYING ACCOUNTS
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Fiscal Year | Our fiscal year ends on the Saturday closest to the last day of March. Fiscal 2017 and 2015 include 52 weeks with each quarter having 13 weeks. Fiscal 2016 includes 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks. |
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Principles of Consolidation | The accompanying consolidated financial statements include all accounts including those of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. |
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Use of Estimates | The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from the amounts derived from our estimates and assumptions. We consider estimates to be critical if we are required to make assumptions about material matters that are uncertain at the time of estimation or if materially different estimates could have been made or it is reasonably likely that the accounting estimate will change from period to period. The following are areas considered to be critical and require management’s judgment: revenue recognition, allowance for doubtful accounts, inventory provisions, intangible asset and goodwill valuation, legal and other judgmental accruals, and income taxes. |
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Reclassifications | Certain reclassifications have been made to prior years' amounts to conform to the current year's presentation. |
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Contingencies | We may become involved in various legal proceedings that arise in the ordinary course of business, including, without limitation, patent infringement, product liability and environmental matters. Accruals recorded for various contingencies including legal proceedings, employee related litigation, self-insurance and other claims are based on judgment, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarially determined estimates. When a loss is probable and a range of loss is established but a best estimate cannot be made, we record the minimum loss contingency amount, which could be zero. These estimates are often initially developed substantially earlier than the ultimate loss is known, and the estimates are reevaluated each accounting period, as additional information is available. As information becomes known, an additional loss provision is recorded when either a best estimate can be made or the minimum loss amount is increased. When events result in an expectation of a more favorable outcome than previously expected, our best estimate is changed to a lower amount. |
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Revenue Recognition | Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 605, Revenue Recognition, and ASC Topic 985-605, Software. These standards require that revenues are recognized when persuasive evidence of an arrangement exists, product delivery, including customer acceptance, has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We may have multiple contracts with the same customer, and each contract is typically treated as a separate arrangement. When more than one element such as equipment, disposables, and services are contained in a single arrangement, we allocate revenue between the elements based on each element’s relative selling price, provided that each element meets the criteria for treatment as a separate unit of accounting. An item is considered a separate unit of accounting if it has value to the customer on a stand-alone basis. The selling price of the undelivered elements is determined by the price charged when the element is sold separately, or in cases when the item is not sold separately, by third-party evidence of selling price or by management's best estimate of selling price. For our software arrangements accounted for under the provisions of ASC 985-605, Software, we establish fair value of undelivered elements based upon vendor specific objective evidence. We offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum potential rebate or discount that could be earned. In circumstances where we provide upfront rebate payments to customers, we capitalize the rebate payments and amortize the resulting asset as a reduction of revenue using a systematic method over the life of the contract. |
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Product Revenues | Product sales consist of the sale of our disposable blood component collection and processing sets and the related equipment. On product sales to end customers, revenue is recognized when both the title and risk of loss have transferred to the customer as determined by the shipping terms and all obligations have been completed. For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment of these products to our distributors. Our standard contracts with our distributors state that title to the equipment passes to the distributors at point of shipment to a distributor’s location. The distributors are responsible for shipment to the end customer along with installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. We also place equipment at customer sites. While we retain ownership of this equipment, the customer has the right to use it for a period of time provided they meet certain agreed to conditions. We recover the cost of providing the equipment from the sale of disposables. |
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Software Revenues | We offer a variety of software solutions to support our plasma, blood collection and hospital customers. We provide information technology platforms and technical support for donor recruitment, blood and plasma testing laboratories, and for efficient and compliant operations of blood and plasma collection centers. For plasma customers, we also provide information technology platforms for managing distribution of plasma from collection centers to plasma fractionation facilities. For hospitals, we provide solutions to help improve patient safety, reduce cost and ensure compliance. Our software revenues also include revenue from software sales which includes per collection or monthly subscription fees for the license and support of the software as well as hosting services. A significant portion of our software sales are perpetual licenses typically accompanied with significant implementation service fees related to software customization as well as other professional and technical service fees. We generally recognize revenue from the sale of perpetual licenses on a percentage-of-completion basis which requires us to make reasonable estimates of the extent of progress toward completion of the contract. These arrangements most often include providing customized implementation services to our customer. We also provide other services, including in some instances hosting, technical support, and maintenance, for the payment of periodic, monthly, or quarterly fees. We recognize these fees and charges as earned, typically as these services are provided during the contract period. |
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Non-Income Taxes | We are required to collect sales or valued added taxes in connection with the sale of certain of our products. We report revenues net of these amounts as they are promptly remitted to the relevant taxing authority. We are also required to pay a medical device excise tax relating to U.S. sales of Class I, II and III medical devices. This excise tax went into effect January 1, 2013, established as part of the March 2010 U.S. healthcare reform legislation, and has been included in selling, general and administrative expenses. In December 2015, this tax was suspended for two years, beginning on January 1, 2016. This tax may be imposed again beginning on January 1, 2018, unless the suspension is extended or the medical device excise tax is permanently repealed. |
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Translation of Foreign Currencies | All assets and liabilities of foreign subsidiaries are translated at the rate of exchange at year-end while sales and expenses are translated at an average rate in effect during the year. The net effect of these translation adjustments is shown in the accompanying financial statements as a component of stockholders' equity. Foreign currency transaction gains and losses, including those resulting from intercompany transactions, are charged directly to earnings and included in other expense, net on the consolidated statements of (loss) income. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned, are recorded in accumulated other comprehensive loss on the consolidated balance sheet. |
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Cash and Cash Equivalents | Cash equivalents include various instruments such as money market funds, U.S. government obligations and commercial paper with maturities of three months or less at date of acquisition. Cash and cash equivalents are recorded at cost, which approximates fair market value. As of April 1, 2017, our cash and cash equivalents consisted of investments in United States Government Agency and institutional money market funds. |
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Allowance for Doubtful Accounts | We establish a specific allowance for customers when it is probable that they will not be able to meet their financial obligation. Customer accounts are reviewed individually on a regular basis and appropriate reserves are established as deemed appropriate. We also maintain a general reserve using a percentage that is established based upon the age of our receivables and our collection history. We establish allowances for balances not yet due and past due accounts based on past experience. |
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Inventories | Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method. We have based our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales. Significant changes in the timing or level of demand for our products results in recording additional provisions for excess, expired and obsolete inventory. Additionally, uncertain timing of next-generation product approvals, variability in product launch strategies, non-cancelable purchase commitments, product recalls and variation in product utilization all affect our estimates related to excess, expired and obsolete inventory. |
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Property, Plant and Equipment | Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows:
We evaluate the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives. All property, plant and equipment are also tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. Our installed base of devices includes devices owned by us and devices sold to the customer. The asset on our balance sheet classified as Haemonetics equipment consists of medical devices installed at customer sites but owned by Haemonetics. Generally the customer has the right to use it for a period of time as long as they meet the conditions we have established, which among other things, generally include one or more of the following:
Consistent with the impairment tests noted below for other intangible assets subject to amortization, we review Haemonetics equipment and their related useful lives at least once a year, or more frequently if certain conditions arise, to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. To conduct these reviews we estimate the future amount and timing of demand for disposables used with these devices, from which we generate revenues. We also consider product life cycle in our evaluation of useful life and recoverability. Changes in expected demand can result in additional depreciation expense, which is classified as cost of goods sold. Any significant unanticipated changes in demand could impact the value of our devices and our reported operating results. Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repairs are generally expensed to operations as incurred. When the repair or maintenance costs significantly extend the life of the asset, these costs may be capitalized. When equipment and improvements are sold or otherwise disposed of, the asset cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss, if any, is included in the consolidated statements of (loss) income. |
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Goodwill and Intangible Assets | Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized. Instead goodwill is reviewed for impairment at least annually in accordance with ASC Topic 350, Intangibles - Goodwill and Other ("Topic 350"), or on an interim basis between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We perform our annual impairment test on the first day of the fiscal fourth quarter for each of our reporting units. In fiscal 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. Under this amendment, entities perform their goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. We determine our reporting units 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. We aggregate components within an operating segment that have similar economic characteristics. Our reporting units for purposes of assessing goodwill impairment are organized primarily based on operating segments and geography and include: (a) North America Plasma, (b) North America Blood Center, (c) North America Hospital, (d) Europe, Middle East, and Africa (collectively "EMEA"), (e) Asia-Pacific and (f) Japan. In the prior period, North America Blood Center and North America Hospital were components of a single reporting unit, Americas Blood Center and Hospital. During the fourth quarter of fiscal 2017, we completed certain organizational changes which resulted in the disaggregation of Americas Blood Center and Hospital into two separate reporting units. The goodwill associated with the legacy Americas Blood Center and Hospital reporting unit was allocated to the North America Blood Center and North America Hospital reporting units based on their relative fair values. The North America Plasma reporting unit is a separate operating segment with dedicated segment management due to the size and scale of the Plasma business unit. When allocating goodwill from business combinations to our reporting units, we assign goodwill to the reporting units that we expect to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing our goodwill impairment tests, assets and liabilities, including corporate assets, which relate to a reporting unit’s operations, and would be considered in determining its fair value, are allocated to the individual reporting units. We allocate assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based primarily on the respective revenue contribution of each reporting unit. In fiscal 2017 and 2016, we used the income approach, specifically the discounted cash flow method, to derive the fair value of each of our reporting units in preparing our goodwill impairment assessments. This approach calculates fair value by estimating the after-tax cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-adjusted discount rate. We selected this method as being the most meaningful in preparing our goodwill assessments because the use of the income approach typically generates a more precise measurement of fair value than the market approach. In applying the income approach to our accounting for goodwill, we make assumptions about the amount and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The amount and timing of future cash flows within our discounted cash flow analysis is based on our most recent operational budgets, long range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the last projected period in our discounted cash flow analysis and reflects our best estimates for stable, perpetual growth of our reporting units. We use estimates of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rates to apply to our reporting units’ future expected cash flows. We corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation and by reconciling the aggregate fair value of our reporting units to our market capitalization at the time of the test. During the fourth quarter of fiscal 2017, we performed our annual goodwill impairment test under the guidelines of ASU No. 2017-04. The results of the goodwill impairment test performed indicated that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of North America Blood Center, for which we recorded an impairment charge of $57.0 million, which represented the entire goodwill balance associated with this reporting unit. There were no other reporting units at risk of impairment as of the fiscal 2017 annual test date. During fiscal 2016, we recorded a goodwill impairment charge of $66.3 million associated with the EMEA reporting unit. At the time the impairment assessment was performed, this represented the entire goodwill balance of this reporting unit. During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of the All Other operating segment became components of the EMEA operating segment. As a result, we transferred $20.5 million of goodwill to the EMEA operating segment, which represented the portion of the goodwill associated with these components. Refer to Note 5, Goodwill and Intangible Assets, for additional details regarding the goodwill impairments recorded. We review intangible assets subject to amortization for impairment at least annually or more frequently if certain conditions arise to determine if any adverse conditions exist that would indicate that the carrying value of an asset or asset group may not be recoverable, or that a change in the remaining useful life is required. Conditions indicating that an impairment exists include but are not limited to a change in the competitive landscape, internal decisions to pursue new or different technology strategies, a loss of a significant customer or a significant change in the marketplace including prices paid for our products or the size of the market for our products. When an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). If we determine the estimate of an intangible asset's remaining useful life should be reduced based on our expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. During fiscal 2017, 2016 and 2015, we determined that there were potential impairment indicators for certain intangible assets subject to amortization. As such, we performed the recoverability test described above for the relevant asset groups. In fiscal 2017 and 2016, we determined that the undiscounted cash flows did not support the carrying value of certain identified asset groups and made the decision to discontinue the use of and investment in these assets. Accordingly, we recorded impairment charges of $4.8 million and $25.8 million, respectively, in fiscal 2017 and 2016. The impairment charges in fiscal 2017 consisted of non-core and underperforming assets while the $25.8 million of impairment charges recorded in fiscal 2016 consisted of $18.7 million related to the write down of the SOLX intangible assets and $7.1 million related to intangible assets that were identified as part of the Company's global strategic review. In fiscal 2015, we determined that the expected undiscounted cash flows exceeded the carrying value of the asset groups identified. See Note 5, Goodwill and Intangible Assets, to our consolidated financial statements contained in Item 8 for additional information. |
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Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed | ASC Topic 985-20, Software, specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers, at which point capitalized costs are amortized over their estimated useful life of five to 10 years. Technological feasibility is established when we have a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. We capitalize costs associated with both software that we sell as a separate product and software that is embedded in a device. We review the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. During fiscal 2017 and fiscal 2016, we recorded $4.0 million and $6.0 million, respectively, of impairment charges related to the discontinuance of certain capitalized software projects. In the future, the net realizable value may be adversely affected by the loss of a significant customer or a significant change in the market place, which could result in an impairment being recorded. |
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Research and Development Expenses | All research and development costs are expensed as incurred. |
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Advertising Costs | All advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of (loss) income. |
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Shipping and Handling Costs | Shipping and handling costs are included in selling, general and administrative expenses. Freight is classified in cost of goods sold when the customer is charged for freight and in selling, general and administration when the customer is not explicitly charged for freight. |
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Income Taxes | The income tax provision is calculated for all jurisdictions in which we operate. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items which are taxable or deductible in different periods for tax and accounting purposes and are recorded as deferred tax assets and liabilities. Deferred tax assets are evaluated for realizability and a valuation allowance is maintained for the portion of our deferred tax assets that are not more-likely-than-not realizable. All available evidence, both positive and negative, has been considered to determine whether, based on the weight of that evidence, a valuation allowance is needed against the deferred tax assets. Significant weight has been given to our consolidated worldwide cumulative loss position for the current and prior two years. We file income tax returns in all jurisdictions in which we operate. We record a liability for uncertain tax positions taken or expected to be taken in income tax returns. Our financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. We record a liability for the portion of unrecognized tax benefits claimed which we have determined are not more-likely-than-not realizable. These tax reserves have been established based on management's assessment as to the potential exposure attributable to our uncertain tax positions as well as interest and penalties attributable to these uncertain tax positions. All tax reserves are analyzed quarterly and adjustments are made as events occur that result in changes in judgment. We evaluate at the end of each reporting period whether some or all of the undistributed earnings of our foreign subsidiaries are permanently reinvested. We recognize deferred income tax liabilities to the extent that management asserts that undistributed earnings of its foreign subsidiaries are not permanently reinvested or will not be permanently reinvested in the future. Our position is based upon several factors including management’s evaluation of the Company and its subsidiaries’ financial requirements, the short term and long-term operational and fiscal objectives of the Company, and the tax consequences associated with the repatriation of earnings. |
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Derivative Instruments | We account for our derivative financial instruments in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) and ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for the change in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative as a hedging instrument for accounting purposes, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. In addition, ASC 815 provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. We do not use derivative financial instruments for trading or speculation purposes. When the underlying hedged transaction affects earnings, the gains or losses on the forward foreign exchange rate contracts designated as hedges are recorded in net revenues, cost of goods sold, operating expenses and other expense, net in our consolidated statements of (loss) income, depending on the nature of the underlying hedged transactions. The cash flows related to the gains and losses are classified in the consolidated statements of cash flows as part of cash flows from operating activities. For those derivative instruments that are not designated as part of a hedging relationship we record the gains or losses in earnings currently. These gains and losses are intended to offset the gains and losses recorded on net monetary assets or liabilities that are denominated in foreign currencies. We recorded foreign currency losses of $1.8 million, $1.4 million, and $1.1 million in fiscal 2017, 2016 and 2015, respectively. On a quarterly basis, we assess whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. We manage the credit risk of the counterparties by dealing only with institutions that we consider financially sound and consider the risk of non-performance to be remote. Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives are intended to offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC Topic 815. |
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Stock-Based Compensation | We expense the fair value of stock-based awards granted to employees, board members and others, net of estimated forfeitures. To calculate the grant-date fair value of our stock options we use the Black-Scholes option-pricing model and for performance share units and market stock units we use Monte Carlo simulation models. |
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Valuation of Acquisitions | We allocate the amounts we pay for each acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition, including acquired identifiable intangible assets. We base the estimated fair value of identifiable intangible assets on detailed valuations that use historical information and market assumptions based upon the assumptions of a market participant. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. |
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Concentration of Credit Risk and Significant Customers | Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. In fiscal 2017 and 2016, one one plasma collection customer accounted for 14% and 11% of our net revenues, respectively. In fiscal 2015 no customer accounted for more than 10% of our net revenues. Certain other markets and industries can expose us to concentrations of credit risk. For example, in our Plasma business unit, our sales are concentrated with several large customers. As a result, our accounts receivable extended to any one of these biopharmaceutical customers can be significant at any point in time. Also, a portion of our trade accounts receivable outside the United States include sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries’ national economies. We have not incurred significant losses on government receivables. We continually evaluate all government receivables for potential collection risks associated with the availability of government funding and reimbursement practices. If the financial condition of customers or the countries’ healthcare systems deteriorate such that their ability to make payments is uncertain, allowances may be required in future periods. |
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Recent Accounting Pronouncements | Standards Implemented In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. We adopted ASU No. 2014-12 in our first quarter of fiscal 2017 using the prospective method. The adoption of ASU No. 2014-12 did not have a material effect on our financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. Part I of ASU No. 2015-12 designates contract value as the only required measure for fully benefit-responsive investment contracts. Part II simplifies the investment disclosure requirements under Topics 820, 960, 962, and 965 for employee benefits plans and Part III provides a measurement date practical expedient for fiscal periods that do not coincide with a month-end date. ASU No. 2015-12 was effective for fiscal years beginning after December 15, 2015 with early adoption permitted. The adoption of ASU No. 2015-12 did not have a material effect on our financial position or results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. ASU No. 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance is effective for all entities in the first annual period ending after December 15, 2016; however, early adoption is permitted. We adopted ASU No. 2014-15 in the fourth quarter of fiscal 2017. The adoption of ASU No. 2014-15 did not have a material impact our financial position or results of operations since there was no uncertainty about our ability to continue as a going concern. In January 2017, the FASB issued ASC Update No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. The update is effective for fiscal years beginning after December 15, 2019, including interim periods within those periods. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates on or after January 1, 2017. The purpose of Update No. 2017-04 is to reduce the cost and complexity of evaluating goodwill for impairment. It eliminates the need for entities to calculate the impaired fair value of goodwill by assigning the fair value of a reporting unit to all of its assets and liabilities as if that reporting unit had been acquired in a business combination. Under this amendment, an entity will perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. We early adopted ASU No. 2017-04 in fiscal 2017 on a prospective basis. |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment Estimated Useful Lives | Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows:
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Schedule of Other Accrued Liabilities | Other Current Liabilities Other current liabilities represent items payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were:
Other Long-Term Liabilities Other long-term liabilities represent items that are not payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were:
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PRODUCT WARRANTIES (Tables) |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary.
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INVENTORIES (Tables) |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by operating segment for fiscal 2017 and 2016 are as follows:
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Schedule of Amoritized Intangibles | The gross carrying amount of intangible assets and the related accumulated amortization as of April 1, 2017 and April 2, 2016 is as follows:
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Schedule of Future Amortization Expense | Future annual amortization expense on intangible assets is estimated to be as follows:
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DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments | The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of loss and comprehensive loss for the fiscal year ended April 1, 2017.
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Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets | The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets:
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Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following:
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NOTES PAYABLE AND LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Notes Payable and Long-Term Debt | Notes payable and long-term debt consisted of the following:
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Schedule of Notes Payable and Long-Term Debt Maturities | The maturity profile of all gross long-term debt, exclusive of debt discounts, as of April 1, 2017 is presented below:
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INCOME TAXES (Tables) |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Domestic and Foreign Income Before Provision for Income Tax | Domestic and foreign income before provision for income tax is as follows:
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Schedule of Income Tax Provision Components | The income tax provision from continuing operations contains the following components:
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Schedule of Net Deferred Tax Asset | Tax affected, significant temporary differences comprising the net deferred tax liability are as follows:
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Schedule of Effective Income Tax Rate Reconciliation | The income tax provision from continuing operations differs from tax provision computed at the 35.0% U.S. federal statutory income tax rate due to the following:
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Summary of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal years ended April 1, 2017, April 2, 2016 and March 28, 2015:
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||
Schedule of Approximate Future Basic Rental Commitments under Operating Leases | Approximate future basic rental commitments under operating leases as of April 1, 2017 are as follows:
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CAPITAL STOCK (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Cost | Compensation cost related to stock-based transactions is recognized in the consolidated financial statements based on fair value. The total amount of stock-based compensation expense, which is recorded on a straight line basis, was as follows:
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Schedule of Summary of Stock Option Activity | A summary of stock option activity for the fiscal year ended April 1, 2017 is as follows:
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Schedule of Assumptions Utilized for Estimating Fair Value of Option Grants | The assumptions utilized for option grants during the periods presented are as follows:
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Schedule of Assumptions Used, Other than Options | The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows:
The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested were as follows:
The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:
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Schedule of Summary of Restricted Stock Units Activity | The fair market value of RSUs is determined based on the market value of the Company’s shares on the date of grant. A summary of RSU activity for the fiscal year ended April 1, 2017 is as follows:
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Schedule of Performance Share Unit awards | A summary of PSU activity for the fiscal year ended April 1, 2017 is as follows:
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Schedule of Market Stock Units Award Activity | A summary of MSU activity for the fiscal year ended April 1, 2017 is as follows:
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EARNINGS PER SHARE ("EPS") (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations.
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following:
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RETIREMENT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans | Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components:
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Schedule of Activity Under Defined Benefit Plans | The activity under those defined benefit plans are as follows:
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Schedule of Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax | The components of the change recorded in our accumulated other comprehensive loss related to our defined benefit plans, net of tax, are as follows (in thousands):
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Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs | The assumptions used in the Monte Carlo model for PSUs granted during each year were as follows:
The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested were as follows:
The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:
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Schedule of Estimated Future Benefit Payments | Estimated future benefit payments are as follows:
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SEGMENT AND ENTERPRISE-WIDE INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Business Segment | Selected information by business segment is presented below:
Long-lived assets in our principle operating regions are as follows:
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Schedule of Revenues by Product Line and Geographic Regions | Management reviews revenue trends based on these business units, however, no other financial information is currently available on this basis. Net revenues by business unit are as follows:
Net revenues generated in our principle operating regions are as follows:
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RESTRUCTURING (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Transformation Costs by Type of Cost | The following summarizes the restructuring activity for the fiscal year ended April 1, 2017, April 2, 2016, and March 28, 2015, respectively:
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Restructuring and Related Costs by Segment | The tables below present restructuring and turnaround costs by reportable segment:
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SUMMARY OF QUARTERLY DATA (UNAUDITED) (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 01, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Quarterly Data |
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Schedule of Overstatement/(Understatement) | Below is a summary of the net overstatement/(understatement) of the Company’s reported operating income and net income for the second and fourth quarters of fiscal 2017 and all four quarters of fiscal 2016 as a result of the misstatements in each reporting period. In the fourth quarter of fiscal 2017 and the first, third and fourth quarters of fiscal 2016, the Company reported an operating loss, a net loss or both. For such periods, an understatement of income means that the reported loss was too high, while an overstatement of income means that the reported loss was too low.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The following is a roll-forward of the components of accumulated other comprehensive loss, net of tax, for the years ended April 1, 2017 and April 2, 2016:
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Reclassification out of Accumulated Other Comprehensive Income | The details about the amount reclassified from accumulated other comprehensive loss for the years ended April 1, 2017 and April 2, 2016 are as follows:
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DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
|
Overstatement of Inventory Related Charges [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Overstatement amount | $ (2.4) | |
Overstatement of Liability, Capitalized Manufacturing Variances [Member] | ||
Quantifying Misstatement in Current Year Financial Statements [Line Items] | ||
Overstatement amount | $ 3.5 |
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
|
Product Warranties Disclosures [Abstract] | ||
General warranty period on parts and labor | 1 year | |
Product Warranties [Roll Forward] | ||
Warranty accrual as of the beginning of the year | $ 420 | $ 531 |
Warranty provision | 400 | 948 |
Warranty spending | (644) | (1,059) |
Warranty accrual as of the end of the year | $ 176 | $ 420 |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Apr. 02, 2016 |
Apr. 01, 2017 |
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Inventory [Line Items] | ||
Raw materials | $ 62,062 | $ 52,052 |
Work-in-process | 13,180 | 10,400 |
Finished goods | 111,786 | 114,477 |
Total Inventories | 187,028 | 176,929 |
Blood Center Products [Member] | ||
Inventory [Line Items] | ||
Inventory charges and reserves recorded | $ 9,400 | $ 11,000 |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt) (Details) - USD ($) $ in Thousands |
Apr. 01, 2017 |
Apr. 02, 2016 |
---|---|---|
Debt Instrument [Line Items] | ||
Long-term debt | $ 315,810 | |
Less current portion | (61,022) | $ (43,471) |
Long term debt | 253,625 | 364,529 |
Term loan, net of financing fees | ||
Debt Instrument [Line Items] | ||
Long-term debt | 314,218 | 406,175 |
Bank loans and other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | $ 429 | $ 1,825 |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt Maturities) (Details) $ in Thousands |
Apr. 01, 2017
USD ($)
|
---|---|
Debt Instrument [Line Items] | |
2018 | $ 61,810 |
2019 | 194,583 |
2020 | 59,382 |
2021 | 28 |
2022 | 2 |
Thereafter | 5 |
Long-term debt | 315,810 |
Credit Facilities | |
Debt Instrument [Line Items] | |
2018 | 61,654 |
2019 | 194,445 |
2020 | 59,282 |
2021 | 0 |
2022 | 0 |
Thereafter | 0 |
Long-term debt | 315,381 |
Bank loans and other borrowings | |
Debt Instrument [Line Items] | |
2018 | 156 |
2019 | 138 |
2020 | 100 |
2021 | 28 |
2022 | 2 |
Thereafter | 5 |
Long-term debt | $ 429 |
INCOME TAXES (Schedule Domestic and Foreign Income Before Provision for Income Tax) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
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Income Tax Disclosure [Abstract] | |||
Domestic | $ (44,724) | $ (18,526) | $ (17,265) |
Foreign | 17,248 | (34,890) | 48,430 |
(Loss) income before (benefit) provision for income taxes | $ (27,476) | $ (53,416) | $ 31,165 |
INCOME TAXES (Schedule of Income Tax Provision Components) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
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Current | |||
Federal | $ (1,424) | $ 12 | $ 3,526 |
State | 436 | (660) | 898 |
Foreign | 6,580 | 3,842 | 5,614 |
Total current | 5,592 | 3,194 | 10,038 |
Deferred | |||
Federal | (8,711) | 3,532 | 1,227 |
State | (953) | 319 | 3,215 |
Foreign | 2,864 | (4,882) | (212) |
Total deferred | (6,800) | (1,031) | 4,230 |
Total | $ (1,208) | $ 2,163 | $ 14,268 |
INCOME TAXES (Schedule of Net Deferred Tax Asset) (Details) - USD ($) $ in Thousands |
Apr. 01, 2017 |
Apr. 02, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Depreciation | $ 934 | $ 1,749 |
Amortization of intangibles | 1,150 | 4,417 |
Inventory | 7,419 | 7,607 |
Hedging | 0 | 382 |
Accruals, reserves and other deferred tax assets | 13,907 | 12,590 |
Net operating loss carry-forward | 11,742 | 13,484 |
Stock based compensation | 6,014 | 9,622 |
Tax credit carry-forward, net | 17,852 | 16,191 |
Gross deferred tax assets | 59,018 | 66,042 |
Total deferred tax liabilities | (25,872) | (24,297) |
Total deferred tax assets (after valuation allowance) | 33,146 | 41,745 |
Depreciation | (30,422) | (28,972) |
Amortization of goodwill and intangibles | (7,732) | (23,626) |
Unremitted earnings | (1,065) | (700) |
Other deferred tax liabilities | (2,053) | (2,769) |
Other deferred tax liabilities | (41,272) | (56,067) |
Net deferred tax liabilities | $ (8,126) | $ (14,322) |
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
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Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $ (9,616) | $ (18,695) | $ 10,907 |
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
Difference between U.S. and foreign tax | $ 137 | $ 10,645 | $ (6,929) |
Difference between U.S. and foreign tax | (0.50%) | (19.90%) | (22.20%) |
State income taxes net of federal benefit | $ (495) | $ 134 | $ (818) |
State income taxes net of federal benefit | 1.80% | (0.30%) | (2.60%) |
Change in uncertain tax positions | $ 862 | $ (1,820) | $ (1,762) |
Change in uncertain tax positions | (3.10%) | 3.40% | (5.70%) |
Unremitted earnings | $ 330 | $ 735 | $ 0 |
Unremitted earnings | (1.20%) | (1.40%) | (0.00%) |
Deferred statutory rate changes | $ (383) | $ (2,653) | $ 0 |
Deferred statutory rate changes | 1.40% | 5.00% | 0.00% |
Non-deductible goodwill impairment | $ 3,703 | $ 2,861 | $ 0 |
Non-deductible goodwill impairment | (13.50%) | (5.40%) | (0.00%) |
Non-deductible expenses | $ 896 | $ 1,491 | $ 1,237 |
Non-deductible expenses | (3.20%) | (2.80%) | 4.00% |
Research credits | $ (561) | $ (672) | $ (1,000) |
Research credits | 2.00% | 1.30% | (3.20%) |
Tax amortization of goodwill | $ (10,564) | $ 4,185 | $ 3,826 |
Tax amortization of goodwill | 38.40% | (7.80%) | 12.30% |
Valuation allowance | $ 13,505 | $ 5,194 | $ 8,524 |
Valuation allowance | (49.20%) | (9.70%) | 27.40% |
Other, net | $ 978 | $ 758 | $ 283 |
Other, net | (3.50%) | (1.40%) | 0.80% |
Total | $ (1,208) | $ 2,163 | $ 14,268 |
Income tax (benefit) provision | 4.40% | (4.00%) | 45.80% |
INCOME TAXES (Summary of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 2,523 | $ 7,070 | $ 5,604 |
Additions for tax positions of prior years | 1,279 | 340 | 3,234 |
Reductions of tax positions | (29) | (4,158) | 0 |
Settlements with taxing authorities | 0 | 0 | (338) |
Closure of statute of limitations | (403) | (729) | (1,430) |
Ending Balance | $ 3,370 | $ 2,523 | $ 7,070 |
COMMITMENTS AND CONTINGENCIES (Schedule of Approximate Future Basic Rental Commitments under Operating Leases) (Details) $ in Thousands |
Apr. 01, 2017
USD ($)
|
---|---|
Commitments and Contingencies Disclosure [Abstract] | |
2018 | $ 4,298 |
2019 | 2,966 |
2020 | 1,906 |
2021 | 1,722 |
2022 | 1,623 |
Thereafter | 7,031 |
Operating Leases, Future Minimum Payments Due | $ 19,546 |
CAPITAL STOCK (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 9,150 | $ 6,949 | $ 14,095 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 6,894 | 5,183 | 11,251 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 1,549 | 1,060 | 1,706 |
Cost of Goods Sold [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 707 | $ 706 | $ 1,138 |
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jun. 27, 2015 |
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
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Basic EPS | |||||||||||
Net (loss) income | $ (51,140) | $ 15,393 | $ 19,825 | $ (10,346) | $ (8,735) | $ (59,440) | $ 12,863 | $ (267) | $ (26,268) | $ (55,579) | $ 16,897 |
Basic weighted average shares (in shares) | 51,524 | 50,910 | 51,533 | ||||||||
Basic (loss) income per share (in dollars per share) | $ (0.98) | $ 0.30 | $ 0.39 | $ (0.20) | $ (0.17) | $ (1.17) | $ 0.25 | $ (0.01) | $ (0.51) | $ (1.09) | $ 0.33 |
Diluted EPS | |||||||||||
Net (loss) income | $ (51,140) | $ 15,393 | $ 19,825 | $ (10,346) | $ (8,735) | $ (59,440) | $ 12,863 | $ (267) | $ (26,268) | $ (55,579) | $ 16,897 |
Basic weighted average shares (in shares) | 51,524 | 50,910 | 51,533 | ||||||||
Net effect of common stock equivalents (in shares) | 0 | 0 | 556 | ||||||||
Diluted weighted average shares (in shares) | 51,524 | 50,910 | 52,089 | ||||||||
Diluted (loss) income per share (in dollars per share) | $ (0.98) | $ 0.30 | $ 0.38 | $ (0.20) | $ (0.17) | $ (1.17) | $ 0.25 | $ (0.01) | $ (0.51) | $ (1.09) | $ 0.32 |
Stock options and restricted share units excluded from computation of weighted average shares outstanding (in shares) | 1,600 |
RETIREMENT PLANS (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, plan funded by company | $ 8,800 | $ 8,700 | |
Benefit obligation | (31,345) | (37,919) | $ (40,567) |
Accumulated benefit obligation | 28,700 | 36,400 | |
Fair value of plan assets | 17,285 | 19,852 | 23,165 |
Amount expected to be amortized from accumulated other comprehensive loss in next fiscal year | 200 | ||
Reinsurance contracts asset value | 5,400 | 5,400 | |
Subsidiaries [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | 800 | 800 | 1,000 |
Savings Plus Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | $ 5,100 | $ 5,400 | $ 5,800 |
RETIREMENT PLANS (Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $ 3,404 | $ 3,560 | $ 2,979 |
Interest cost on benefit obligation | 287 | 371 | 686 |
Expected return on plan assets | (308) | (330) | (449) |
Actuarial loss | 532 | 598 | 107 |
Amortization of unrecognized prior service cost | (119) | (38) | (29) |
Amortization of unrecognized transition obligation | 37 | 42 | 45 |
Settlement loss recognized | 289 | 0 | 0 |
Totals | $ 4,122 | $ 4,203 | $ 3,339 |
RETIREMENT PLANS (Schedule of Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax [Roll Forward] | |||
Impact of Defined Benefit Plans, Net of Tax, Balance | $ (7,492) | $ (8,923) | $ (4,592) |
Obligation at transition | 32 | 33 | (19) |
Actuarial loss | 5,126 | 681 | (6,198) |
Prior service cost | 63 | 717 | 1,886 |
Impact of Defined Benefit Plans, Net of Tax, Balance | $ (2,271) | $ (7,492) | $ (8,923) |
RETIREMENT PLANS (Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs) (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate | 0.76% | 0.72% | 0.93% |
Rate of increased salary levels | 1.43% | 1.58% | 1.65% |
Expected long-term rate of return on assets | 1.10% | 1.20% | 1.68% |
RETIREMENT PLANS (Schedule of Estimated Future Benefit Payments) (Details) $ in Thousands |
Apr. 01, 2017
USD ($)
|
---|---|
Expected Benefit Payments | |
Fiscal 2018 | $ 1,396 |
Fiscal 2019 | 1,451 |
Fiscal 2020 | 1,394 |
Fiscal 2021 | 1,411 |
Fiscal 2022 | 1,617 |
Fiscal 2023-2027 | 6,869 |
Total | $ 14,138 |
SEGMENT AND ENTERPRISE-WIDE INFORMATION (Details) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2017
USD ($)
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Dec. 31, 2016
USD ($)
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Oct. 01, 2016
USD ($)
|
Jul. 02, 2016
USD ($)
|
Apr. 02, 2016
USD ($)
|
Dec. 26, 2015
USD ($)
|
Sep. 26, 2015
USD ($)
|
Jun. 27, 2015
USD ($)
|
Apr. 01, 2017
USD ($)
unit
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Apr. 02, 2016
USD ($)
|
Mar. 28, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||||||||
Number of business units | unit | 4 | ||||||||||
Net revenues before foreign exchange impact | $ 899,580,000 | $ 910,515,000 | $ 883,832,000 | ||||||||
Effect of exchange rates | (13,464,000) | (1,683,000) | 26,541,000 | ||||||||
Net revenues | $ 228,066,000 | $ 227,841,000 | $ 220,253,000 | $ 209,956,000 | $ 242,342,000 | $ 233,384,000 | $ 219,693,000 | $ 213,413,000 | 886,116,000 | 908,832,000 | 910,373,000 |
Segment operating income | 296,560,000 | 315,230,000 | 317,507,000 | ||||||||
Corporate operating expenses | 176,372,000 | 199,072,000 | 193,910,000 | ||||||||
Effect of exchange rates | (4,772,000) | 3,546,000 | 13,906,000 | ||||||||
Restructuring and turnaround costs | 34,337,000 | 42,185,000 | 69,697,000 | ||||||||
Deal amortization | 27,107,000 | 28,958,000 | 30,184,000 | ||||||||
Impairment of assets | 73,353,000 | 97,230,000 | 0 | ||||||||
Contingent consideration income | 0 | (4,727,000) | (2,918,000) | ||||||||
Operating (loss) income | (57,506,000) | $ 21,212,000 | $ 24,794,000 | $ (7,881,000) | (5,550,000) | $ (61,177,000) | $ 19,179,000 | $ 3,606,000 | (19,381,000) | (43,942,000) | 40,540,000 |
Depreciation and amortization | 89,733,000 | 89,911,000 | 86,053,000 | ||||||||
Long-lived assets | 323,862,000 | 337,634,000 | 323,862,000 | 337,634,000 | 321,948,000 | ||||||
Plasma [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 410,727,000 | 381,776,000 | 352,911,000 | ||||||||
Blood center disposables | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 303,890,000 | 355,108,000 | 386,147,000 | ||||||||
Cell Processing [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 105,376,000 | 112,483,000 | 120,434,000 | ||||||||
Hemostasis Management [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 66,123,000 | 59,465,000 | 50,881,000 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 522,686,000 | 519,440,000 | 494,788,000 | ||||||||
Long-lived assets | 241,610,000 | 231,744,000 | 241,610,000 | 231,744,000 | 208,439,000 | ||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 79,266,000 | 81,411,000 | 88,298,000 | ||||||||
Long-lived assets | 1,691,000 | 2,022,000 | 1,691,000 | 2,022,000 | 1,618,000 | ||||||
Europe | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 166,007,000 | 187,725,000 | 215,575,000 | ||||||||
Long-lived assets | 12,952,000 | 18,672,000 | 12,952,000 | 18,672,000 | 27,786,000 | ||||||
Asia | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 109,858,000 | 111,758,000 | 102,095,000 | ||||||||
Long-lived assets | 34,174,000 | 40,235,000 | 34,174,000 | 40,235,000 | 39,032,000 | ||||||
Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues | 8,299,000 | 8,498,000 | 9,617,000 | ||||||||
Long-lived assets | 33,435,000 | 44,961,000 | 33,435,000 | 44,961,000 | 45,073,000 | ||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues before foreign exchange impact | 74,695,000 | 84,270,000 | 83,547,000 | ||||||||
Segment operating income | 32,906,000 | 38,280,000 | 36,843,000 | ||||||||
Depreciation and amortization | 827,000 | 774,000 | 767,000 | ||||||||
Long-lived assets | 21,412,000 | 33,159,000 | 21,412,000 | 33,159,000 | 31,810,000 | ||||||
EMEA [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues before foreign exchange impact | 198,396,000 | 204,192,000 | 219,153,000 | ||||||||
Segment operating income | 49,105,000 | 47,168,000 | 60,101,000 | ||||||||
Depreciation and amortization | 4,255,000 | 5,146,000 | 5,045,000 | ||||||||
Long-lived assets | 63,854,000 | 63,861,000 | 63,854,000 | 63,861,000 | 66,223,000 | ||||||
North America Plasma [Member] | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues before foreign exchange impact | 309,718,000 | 279,803,000 | 240,705,000 | ||||||||
Segment operating income | 105,253,000 | 109,220,000 | 89,092,000 | ||||||||
Depreciation and amortization | 13,022,000 | 12,944,000 | 11,229,000 | ||||||||
Long-lived assets | 142,164,000 | 116,001,000 | 142,164,000 | 116,001,000 | 101,272,000 | ||||||
All Other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Net revenues before foreign exchange impact | 316,771,000 | 342,249,000 | 340,427,000 | ||||||||
Segment operating income | 109,296,000 | 120,562,000 | 131,471,000 | ||||||||
Depreciation and amortization | 71,629,000 | 71,047,000 | 69,012,000 | ||||||||
Long-lived assets | $ 96,432,000 | $ 124,613,000 | $ 96,432,000 | $ 124,613,000 | $ 122,643,000 |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 02, 2016 |
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Capitalization of Software and Development Costs [Abstract] | ||||
Capitalized software development costs for ongoing initiatives | $ 11.0 | $ 17.0 | ||
Software costs capitalized, net | $ 54.9 | 62.7 | 54.9 | |
Total costs capitalized related to in process software development initiatives | 14.4 | 12.7 | 14.4 | |
Interest costs capitalized | 0.3 | 0.2 | ||
Capitalized costs amortized (placed into service) | 9.5 | 8.7 | ||
Amortization of capitalized software development cost expense | 9.7 | $ 10.9 | $ 3.2 | |
Impairment charges related to the discontinuance of certain capitalized software projects | $ 6.0 | $ 4.0 |
SUMMARY OF QUARTERLY DATA (UNAUDITED) (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 01, 2017 |
Dec. 31, 2016 |
Oct. 01, 2016 |
Jul. 02, 2016 |
Apr. 02, 2016 |
Dec. 26, 2015 |
Sep. 26, 2015 |
Jun. 27, 2015 |
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $ 228,066,000 | $ 227,841,000 | $ 220,253,000 | $ 209,956,000 | $ 242,342,000 | $ 233,384,000 | $ 219,693,000 | $ 213,413,000 | $ 886,116,000 | $ 908,832,000 | $ 910,373,000 |
Gross profit | 82,111,000 | 101,079,000 | 104,248,000 | 91,056,000 | 89,223,000 | 108,855,000 | 105,297,000 | 102,539,000 | 378,494,000 | 405,914,000 | 434,418,000 |
Operating income (loss) | (57,506,000) | 21,212,000 | 24,794,000 | (7,881,000) | (5,550,000) | (61,177,000) | 19,179,000 | 3,606,000 | (19,381,000) | (43,942,000) | 40,540,000 |
Net (loss) income | $ (51,140,000) | $ 15,393,000 | $ 19,825,000 | $ (10,346,000) | $ (8,735,000) | $ (59,440,000) | $ 12,863,000 | $ (267,000) | $ (26,268,000) | $ (55,579,000) | $ 16,897,000 |
Per share data: | |||||||||||
Basic (loss) income per share (in dollars per share) | $ (0.98) | $ 0.30 | $ 0.39 | $ (0.20) | $ (0.17) | $ (1.17) | $ 0.25 | $ (0.01) | $ (0.51) | $ (1.09) | $ 0.33 |
Diluted (loss) income per share (in dollars per share) | $ (0.98) | $ 0.30 | $ 0.38 | $ (0.20) | $ (0.17) | $ (1.17) | $ 0.25 | $ (0.01) | $ (0.51) | $ (1.09) | $ 0.32 |
Understatement of Operating Loss | $ (3,720,000) | $ (3,352,000) | |||||||||
Overstatement of Operating Income | $ 888,000 | $ 4,776,000 | $ 1,193,000 | $ 1,297,000 | |||||||
Understatement of Net Loss | $ (4,032,000) | $ (2,207,000) | |||||||||
Overstatement of Net Income | $ 1,224,000 | $ 4,584,000 | $ 933,000 | $ 219,000 |
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] - SEBRA Sealers Product Line [Member] $ in Millions |
Apr. 27, 2017
USD ($)
|
---|---|
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Proceeds from divestiture of business | $ 9 |
Transition period | 90 days |
Preliminary pre-tax gain expected | $ 8 |
VALUATION AND QUALIFYING ACCOUNTS (Details) - Allowance for Doubtful Accounts - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 01, 2017 |
Apr. 02, 2016 |
Mar. 28, 2015 |
|
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $ 2,253 | $ 1,749 | $ 1,676 |
Charged to Costs and Expenses | 103 | 728 | 399 |
Write-Offs (Net of Recoveries) | 172 | (224) | (326) |
Balance at End of Fiscal Year | $ 2,184 | $ 2,253 | $ 1,749 |
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