SEGMENT AND ENTERPRISE-WIDE INFORMATION

9 Months Ended

Dec. 28, 2019

15. SEGMENT AND ENTERPRISE-WIDE INFORMATION

The Company determines its reportable segments by first identifying its 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. Historically, the Company's operating segments were based primarily on geography. Effective as of March 31, 2019, the Company completed the transition of its operating structure to three global business units and accordingly, reorganized its reporting structure to align with its three global business units and the information that will be regularly reviewed by the Company's chief operating decision maker.

Following the reorganization, the Company's reportable segments are as follows:


•	Plasma


•	Blood Center


•	Hospital

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, asset impairments, accelerated depreciation, gains and losses on asset dispositions, certain transaction costs and legal charges. 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 reportable segment is presented below:



	Three Months Ended						Nine Months Ended
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Net revenues
Plasma	$	120,997		$	112,738		$	348,141		$	318,878
Blood Center	85,314			84,775			246,977			248,106
Hospital	50,753			47,410			147,602			140,686
Net revenues by business unit	257,064			244,923			742,720			707,670
Service ⁽¹⁾	5,197			4,875			15,339			13,937
Effect of exchange rates	(3,291		)	(2,442		)	(8,072		)	(3,323		)
Net revenues	$	258,970		$	247,356		$	749,987		$	718,284
⁽¹⁾ Reflects revenue for service, maintenance and parts



	Three Months Ended						Nine Months Ended
(In thousands)	December 28, 2019			December 29, 2018			December 28, 2019			December 29, 2018
Segment operating income
Plasma	$	59,343		$	47,133		$	169,844		$	133,661
Blood Center	42,197			41,478			121,124			121,005
Hospital	20,593			18,163			60,360			56,006
Segment operating income	122,133			106,774			351,328			310,672
Corporate expenses ⁽¹⁾	(63,080		)	(66,229		)	(188,363		)	(196,178		)
Effect of exchange rates	2,521			2,133			7,791			7,782
Impairment of assets and other related charges	—			—			(51,220		)	(21,170		)
Deal amortization	(5,772		)	(6,131		)	(17,681		)	(18,667		)
PCS2 accelerated depreciation and related costs	(6,649		)	(4,822		)	(18,708		)	(13,203		)
Gain on sale of assets	—			—			8,083			—
Restructuring and turnaround costs	(7,798		)	(1,791		)	(13,582		)	(7,258		)
European Medical Device Regulation costs	(448		)	—			(1,005		)	—
Legal Charges	—			(1,614		)	701			(2,289		)
Operating income	$	40,907		$	28,320		$	77,344		$	59,689
⁽¹⁾ Reflects shared service expenses including quality and regulatory, customer and field service, research and development, manufacturing and supply chain, as well as other corporate support functions.

Management reviews revenue based on the reportable segments noted above. Although these reportable segments are primarily product-based, they differ from the Company’s product line revenues for Plasma products and services and Blood Center products and services. Specifically, the Blood Center reportable segment includes plasma products utilized for collection in blood centers primarily for transfusion purposes. Additionally, product line revenues also include service revenues which are excluded from the reportable segments.

Net revenues by product line are as follows:



	Three Months Ended				Nine Months Ended
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
Plasma products and services	$	141,231	$	131,823	$	406,825	$	373,078
Blood Center products and services	66,126		67,155		191,648		199,881
Hospital products and services	51,613		48,378		151,514		145,325
Net revenues	$	258,970	$	247,356	$	749,987	$	718,284

Net revenues generated in the Company's principle operating regions on a reported basis are as follows:



	Three Months Ended				Nine Months Ended
(In thousands)	December 28, 2019		December 29, 2018		December 28, 2019		December 29, 2018
United States	$	167,238	$	157,457	$	485,493	$	452,523
Japan	19,268		17,734		55,111		52,295
Europe	40,984		40,977		115,811		119,075
Asia	29,436		29,166		88,269		89,136
Other	2,044		2,022		5,303		5,255
Net revenues	$	258,970	$	247,356	$	749,987	$	718,284