SEGMENT AND ENTERPRISE-WIDE INFORMATION

3 Months Ended

Jun. 27, 2020

14. 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 and related costs, costs related to compliance with the European Union Medical Device Regulation, transaction costs and certain 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
(In thousands)	June 27, 2020		June 29, 2019
Net revenues
Plasma	$	68,715	$	110,763
Blood Center	79,314		77,996
Hospital	45,571		47,187
Net revenues by business unit	193,600		235,946
Service ⁽¹⁾	5,082		4,866
Effect of exchange rates	(3,105)		(2,361)
Net revenues	$	195,577	$	238,451
⁽¹⁾ Reflects revenue for service, maintenance and parts


	Three Months Ended
(In thousands)	June 27, 2020		June 29, 2019
Segment operating income
Plasma	$	36,350	$	53,725
Blood Center	38,745		37,719
Hospital	17,783		18,916
Segment operating income	92,878		110,360
Corporate expenses ⁽¹⁾	(65,062)		(61,703)
Effect of exchange rates	711		2,769
Impairment of assets and other related charges	(964)		(51,166)
Deal amortization	(8,263)		(5,974)
PCS2 accelerated depreciation and related costs	(1,542)		(5,528)

Restructuring and turnaround costs	(4,000)		(2,027)
European Medical Device Regulation costs and other	(753)		(33)
Transaction costs	(1,290)		—
Operating income (loss)	$	11,715	$	(13,302)
⁽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
(In thousands)	June 27, 2020		June 29, 2019
Plasma products and services	$	88,713	$	129,745
Blood Center products and services	60,667		59,907
Hospital products and services	46,197		48,799
Net revenues	$	195,577	$	238,451

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


	Three Months Ended
(In thousands)	June 27, 2020		June 29, 2019
United States	$	111,009	$	156,375
Japan	16,831		15,467
Europe	43,019		36,753
Asia	22,384		28,641
Other	2,334		1,215
Net revenues	$	195,577	$	238,451