SEGMENT AND ENTERPRISE-WIDE INFORMATION

6 Months Ended

Sep. 26, 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, gains on divestitures and sale of assets, asset impairments and other related charges, 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				Six Months Ended
(In thousands)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Net revenues
Plasma	$	78,718	$	116,381	$	147,433	$	227,144
Blood Center	74,715		83,667		154,029		161,663
Hospital	51,022		49,662		96,593		96,849
Net revenues by business unit	204,455		249,710		398,055		485,656
Service (1)	5,342		5,276		10,424		10,142
Effect of exchange rates	(311)		(2,420)		(3,416)		(4,781)
Net revenues	$	209,486	$	252,566	$	405,063	$	491,017
(1) Reflects revenue for service, maintenance and parts


	Three Months Ended				Six Months Ended
(In thousands)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Segment operating income
Plasma	$	40,823	$	56,776	$	77,173	$	110,501
Blood Center	33,757		41,208		72,502		78,927
Hospital	21,459		20,851		39,242		39,767
Segment operating income	96,039		118,835		188,917		229,195
Corporate expenses (1)	(56,741)		(63,580)		(121,803)		(125,283)
Effect of exchange rates	3,647		2,501		4,358		5,270
Deal amortization	(8,136)		(5,935)		(16,399)		(11,909)
Restructuring and turnaround costs	(4,440)		(3,757)		(8,440)		(5,784)
Transaction costs	(1,773)		—		(3,063)		—
PCS2 accelerated depreciation and related costs	(644)		(6,534)		(2,186)		(12,062)
European Medical Device Regulation costs and other	(736)		180		(1,489)		147
Impairment of assets and other related charges	68		(54)		(896)		(51,220)
Gains on divestitures and sale of assets	31,498		8,083		31,498		8,083
Operating income	$	58,782	$	49,739	$	70,497	$	36,437
(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				Six Months Ended
(In thousands)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
Plasma products and services	$	97,710	$	135,849	$	186,423	$	265,594
Blood Center products and services	59,233		65,615		119,900		125,522
Hospital products and services	52,543		51,102		98,740		99,901
Net revenues	$	209,486	$	252,566	$	405,063	$	491,017

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


	Three Months Ended				Six Months Ended
(In thousands)	September 26, 2020		September 28, 2019		September 26, 2020		September 28, 2019
United States	$	123,984	$	161,880	$	234,993	$	318,255
Japan	19,645		20,376		36,476		35,843
Europe	38,648		38,074		81,667		74,827
Asia	26,168		30,192		48,552		58,833
Other	1,041		2,044		3,375		3,259
Net revenues	$	209,486	$	252,566	$	405,063	$	491,017