(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
(Zip Code) | ||||||||||||||
(Address of principal executive offices) | ||||||||||||||
(Registrant's telephone number, including area code) |
Title of Each Class | Trading Symbol | Name of Exchange on Which Registered | ||||||||||||
☑ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
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Owned | Leased | Total | |||||||||
U.S. | 165,385 | 725,666 | 891,051 | ||||||||
International | 135,000 | 768,749 | 903,749 | ||||||||
Total | 300,385 | 1,494,415 | 1,794,800 |
Fiscal Year | |||||||||||||||||||||||||||||
(In thousands, except per share data) | 2022 | 2021 | 2020 | % Increase/(Decrease) 22 vs. 21 | % Increase/(Decrease) 21 vs. 20 | ||||||||||||||||||||||||
Net revenues | $ | 993,196 | $ | 870,463 | $ | 988,479 | 14.1 | % | (11.9) | % | |||||||||||||||||||
Gross profit | $ | 505,502 | $ | 397,838 | $ | 484,513 | 27.1 | % | (17.9) | % | |||||||||||||||||||
% of net revenues | 50.9 | % | 45.7 | % | 49.0 | % | |||||||||||||||||||||||
Operating expenses | $ | 424,752 | $ | 308,091 | $ | 381,162 | 37.9 | % | (19.2) | % | |||||||||||||||||||
Operating income | $ | 80,750 | $ | 89,747 | $ | 103,351 | (10.0) | % | (13.2) | % | |||||||||||||||||||
% of net revenues | 8.1 | % | 10.3 | % | 10.5 | % | |||||||||||||||||||||||
Interest and other expense, net | $ | (17,121) | $ | (16,834) | $ | (16,199) | 1.7 | % | 3.9 | % | |||||||||||||||||||
Income before (benefit) provision for income taxes | $ | 63,629 | $ | 72,913 | $ | 87,152 | (12.7) | % | (16.3) | % | |||||||||||||||||||
Provision (benefit) for income taxes | $ | 20,254 | $ | (6,556) | $ | 10,626 | n/m | n/m | |||||||||||||||||||||
% of pre-tax income | 31.8 | % | (9.0) | % | 12.2 | % | |||||||||||||||||||||||
Net income | $ | 43,375 | $ | 79,469 | $ | 76,526 | (45.4) | % | 3.8 | % | |||||||||||||||||||
% of net revenues | 4.4 | % | 9.1 | % | 7.7 | % | |||||||||||||||||||||||
Net income per share - basic | $ | 0.85 | $ | 1.57 | $ | 1.51 | (45.9) | % | 4.0 | % | |||||||||||||||||||
Net income per share - diluted | $ | 0.84 | $ | 1.55 | $ | 1.48 | (45.8) | % | 4.7 | % |
Fiscal Year | Fiscal 2022 versus 2021 | Fiscal 2021 versus 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | Reported Growth | Currency impact | Constant currency growth (1) | Reported Growth | Currency impact | Constant currency growth (1) | ||||||||||||||||||||||||||||||||||||||||||||
United States | $ | 639,322 | $ | 522,607 | $ | 646,204 | 22.3 | % | — | % | 22.3 | % | (19.1) | % | — | % | (19.1) | % | |||||||||||||||||||||||||||||||||||
International | 353,874 | 347,856 | 342,275 | 1.7 | % | 1.7 | % | — | % | 1.6 | % | 3.0 | % | (1.4) | % | ||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 993,196 | $ | 870,463 | $ | 988,479 | 14.1 | % | 0.7 | % | 13.4 | % | (11.9) | % | 1.0 | % | (12.9) | % | |||||||||||||||||||||||||||||||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant currency. See “Management's Use of Non-GAAP Measures.” |
Fiscal Year | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
United States | 64.4 | % | 60.0 | % | 65.4 | % | |||||||||||
Japan | 7.6 | % | 8.9 | % | 7.2 | % | |||||||||||
Europe | 16.5 | % | 18.3 | % | 15.5 | % | |||||||||||
Asia | 11.2 | % | 12.2 | % | 11.1 | % | |||||||||||
Other | 0.3 | % | 0.6 | % | 0.8 | % | |||||||||||
Total | 100.0 | % | 100.0 | % | 100.0 | % |
Fiscal Year | Fiscal 2022 versus 2021 | Fiscal 2021 versus 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | Reported Growth | Currency impact | Constant currency growth(1) | Reported Growth | Currency impact | Constant currency growth(1) | |||||||||||||||||||||||||||||||||||||||||||||||
Plasma | $ | 351,347 | $ | 332,236 | $ | 458,681 | 5.8% | 0.2% | 5.6% | (27.6)% | —% | (27.6)% | ||||||||||||||||||||||||||||||||||||||||||||
Blood Center | 298,512 | 307,452 | 317,761 | (2.9)% | 1.3% | (4.2)% | (3.2)% | 2.4% | (5.6)% | |||||||||||||||||||||||||||||||||||||||||||||||
Hospital(2) | 322,804 | 210,632 | 193,437 | 53.3% | 0.6% | 52.7% | 8.9% | 0.7% | 8.2% | |||||||||||||||||||||||||||||||||||||||||||||||
Service | 20,533 | 20,143 | 18,600 | 1.9% | 1.6% | 0.3% | 8.3% | 3.6% | 4.7% | |||||||||||||||||||||||||||||||||||||||||||||||
Net revenues | $ | 993,196 | $ | 870,463 | $ | 988,479 | 14.1% | 0.7% | 13.4% | (11.9)% | 1.0% | (12.9)% | ||||||||||||||||||||||||||||||||||||||||||||
(1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant currency. See “Management's Use of Non-GAAP Measures.” | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(2) Hospital revenue includes Hemostasis Management revenue of $127.4 million, $107.4 million, and $95.7 million for fiscal years 2022, 2021 and 2020, respectively. Hemostasis Management revenue increased 18.6% during fiscal 2022 as compared with fiscal 2021. Without the effect of foreign exchange, Hemostasis Management revenue increased 18.4% as compared with fiscal 2021. Hemostasis Management revenue increased 12.2% during fiscal 2021 as compared with fiscal 2020. Without the effect of foreign exchange, Hemostasis Management revenue increased 12.8% during fiscal 2021 as compared with fiscal 2020. Hospital revenue also includes Vascular Closure revenue of $93.8 million and $7.7 million for fiscal years 2022 and 2021, respectively. |
Fiscal Year | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | % Increase/(Decrease) 22 vs. 21 | % Increase/(Decrease) 21 vs. 20 | ||||||||||||||||||||||||
Gross profit | $ | 505,502 | $ | 397,838 | $ | 484,513 | 27.1 | % | (17.9) | % | |||||||||||||||||||
% of net revenues | 50.9 | % | 45.7 | % | 49.0 | % |
Fiscal Year | |||||||||||||||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | % Increase/(Decrease) 22 vs. 21 | % Increase/(Decrease) 21 vs. 20 | ||||||||||||||||||||||||
Research and development | $ | 46,801 | $ | 32,857 | $ | 30,883 | 42.4 | % | 6.4 | % | |||||||||||||||||||
% of net revenues | 4.7 | % | 3.8 | % | 3.1 | % | |||||||||||||||||||||||
Selling, general and administrative | $ | 339,563 | $ | 274,188 | $ | 282,017 | 23.8 | % | (2.8) | % | |||||||||||||||||||
% of net revenues | 34.2 | % | 31.5 | % | 28.5 | % | |||||||||||||||||||||||
Amortization of intangible assets | $ | 47,414 | $ | 32,830 | $ | 25,746 | 44.4 | % | 27.5 | % | |||||||||||||||||||
% of net revenues | 4.8 | % | 3.8 | % | 2.6 | % | |||||||||||||||||||||||
Impairment of assets | $ | 577 | $ | 1,028 | $ | 50,599 | (43.9) | % | (98.0) | % | |||||||||||||||||||
% of net revenues | 0.1 | % | 0.1 | % | 5.1 | % | |||||||||||||||||||||||
Gains on divestitures and sale of assets | $ | (9,603) | $ | (32,812) | $ | (8,083) | (70.7) | % | n/m | ||||||||||||||||||||
% of net revenues | (1.0) | % | (3.8) | % | (0.8) | % | |||||||||||||||||||||||
Total operating expenses | $ | 424,752 | $ | 308,091 | $ | 381,162 | 37.9 | % | (19.2) | % | |||||||||||||||||||
% of net revenues | 42.8 | % | 35.4 | % | 38.6 | % |
Fiscal Year | |||||||||||||||||||||||||||||
2022 | 2021 | 2020 | % Increase/(Decrease) 22 vs. 21 | % Increase/(Decrease) 21 vs. 20 | |||||||||||||||||||||||||
Reported income tax rate | 31.8 | % | (9.0) | % | 12.2 | % | 40.8 | % | (21.2) | % |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Cash and cash equivalents | $ | 259,496 | $ | 192,305 | |||||||
Working capital | $ | 313,765 | $ | 440,051 | |||||||
Current ratio | 1.7 | 2.7 | |||||||||
Net debt position(1) | $ | (514,093) | $ | (515,303) | |||||||
Days sales outstanding (DSO) | 54 | 51 | |||||||||
Inventory turnover | 1.4 | 1.2 | |||||||||
(1)Net debt position is the sum of cash and cash equivalents less total debt. |
Fiscal Year | |||||||||||||||||
(In thousands) | 2022 | 2021 | 2020 | ||||||||||||||
Net cash provided by (used in): | |||||||||||||||||
Operating activities | $ | 172,263 | $ | 108,805 | $ | 158,217 | |||||||||||
Investing activities | (86,345) | (425,442) | (57,176) | ||||||||||||||
Financing activities | (15,749) | 367,452 | (131,208) | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents(1) | (2,978) | 4,179 | (1,873) | ||||||||||||||
Net change in cash and cash equivalents | $ | 67,191 | $ | 54,994 | $ | (32,040) | |||||||||||
(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 | ||||||||||||||||||||||||
Convertible senior notes | $ | 500,000 | $ | — | $ | — | $ | 500,000 | $ | — | |||||||||||||||||||
Debt | 284,375 | 214,375 | 70,000 | — | — | ||||||||||||||||||||||||
Interest payments (1) | 4,415 | 4,415 | — | — | — | ||||||||||||||||||||||||
Operating leases | 79,489 | 9,996 | 15,356 | 14,348 | 39,789 | ||||||||||||||||||||||||
Purchase commitments(2) | 192,584 | 192,584 | — | — | — | ||||||||||||||||||||||||
Contingent consideration | 30,209 | 30,209 | — | — | — | ||||||||||||||||||||||||
Expected retirement plan benefit payments | 16,760 | 1,328 | 2,752 | 2,813 | 9,867 | ||||||||||||||||||||||||
Total contractual obligations | $ | 1,107,832 | $ | 452,907 | $ | 88,108 | $ | 517,161 | $ | 49,656 | |||||||||||||||||||
(1) Interest payments reflect the contractual interest payments on our outstanding debt and exclude the impact of interest rate swap agreements. Interest payments are projected using interest rates in effect as of April 2, 2022. Certain of these projected interest payments may differ in the future based on changes in market interest rates. (2) Includes amounts we are committed to spend on purchase orders entered in the normal course of business for capital equipment as well as commitments with contractors for the manufacture of certain disposable products and equipment. The majority of our operating expense spending does not require any advance commitment. |
Valuation of goodwill | |||||
Description of the Matter | As discussed in Note 11 to the consolidated financial statements, the Company had approximately $467 million of goodwill allocated among its reporting units as of April 2, 2022. The Company performs its annual quantitative impairment analysis as of the first day of the fourth quarter, and more frequently if the Company believes indicators of impairment exist, utilizing a discounted cash flow income approach in order to value reporting units for the test. | ||||
Auditing the annual goodwill impairment test was especially complex and judgmental due to the significant estimation required in determining the fair values of the reporting units. In particular, the fair value estimates involve judgmental assumptions including discount rates, terminal values, and the amount and timing of expected future cash flows, which are all affected by expectations about future market or economic conditions and reporting unit specific risk factors. | |||||
How We Addressed the Matter in Our Audit | We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls over the Company’s goodwill impairment review process. For example, we tested controls over management's review of the significant inputs and assumptions used in determining the reporting unit fair values. | ||||
To test the estimated fair value of the Company’s reporting units, we performed audit procedures that included, among others, assessing fair value methodologies, testing the significant assumptions discussed above and the completeness and accuracy of the underlying data used by the Company in its analysis. We compared the significant assumptions used by management to current industry trends, historical financial results of the reporting unit, and other relevant factors. We considered the historical accuracy of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the changes in the fair value of the reporting unit that would result from changes in the assumptions. In addition, we involved our valuation professionals to assist in our evaluation of the significant assumptions used to develop the fair value estimates. We also evaluated the reconciliation of the estimated aggregate fair value of the reporting units to the market capitalization of the Company. |
Year Ended | |||||||||||||||||
April 2, 2022 | April 3, 2021 | March 28, 2020 | |||||||||||||||
Net revenues | $ | $ | $ | ||||||||||||||
Cost of goods sold | |||||||||||||||||
Gross profit | |||||||||||||||||
Operating expenses: | |||||||||||||||||
Research and development | |||||||||||||||||
Selling, general and administrative | |||||||||||||||||
Amortization of intangible assets | |||||||||||||||||
Impairment of assets | |||||||||||||||||
Gains on divestitures and sale of assets | ( | ( | ( | ||||||||||||||
Total operating expenses | |||||||||||||||||
Operating income | |||||||||||||||||
Interest and other expense, net | ( | ( | ( | ||||||||||||||
Income before provision (benefit) for income taxes | |||||||||||||||||
Provision (benefit) for income taxes | ( | ||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Net income per share – basic | $ | $ | $ | ||||||||||||||
Net income per share – diluted | $ | $ | $ | ||||||||||||||
Weighted average shares outstanding | |||||||||||||||||
Basic | |||||||||||||||||
Diluted |
Year Ended | |||||||||||||||||
April 2, 2022 | April 3, 2021 | March 28, 2020 | |||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||
Impact of defined benefit plans, net of tax | ( | ||||||||||||||||
Foreign currency translation adjustment, net of tax | ( | ( | |||||||||||||||
Unrealized gain (loss) on cash flow hedges, net of tax | ( | ( | |||||||||||||||
Reclassifications into earnings of cash flow hedge losses, net of tax | |||||||||||||||||
Other comprehensive income (loss) | ( | ||||||||||||||||
Comprehensive income | $ | $ | $ |
April 2, 2022 | April 3, 2021 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance of $ | |||||||||||
Inventories, net | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property, plant and equipment, net | |||||||||||
Intangible assets, less accumulated amortization of $ | |||||||||||
Goodwill | |||||||||||
Deferred tax asset | |||||||||||
Other long-term assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Current liabilities: | |||||||||||
Notes payable and current maturities of long-term debt | $ | $ | |||||||||
Accounts payable | |||||||||||
Accrued payroll and related costs | |||||||||||
Other current liabilities | |||||||||||
Total current liabilities | |||||||||||
Long-term debt, net of current maturities | |||||||||||
Deferred tax liability | |||||||||||
Other long-term liabilities | |||||||||||
Stockholders’ equity: | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance, March 30, 2019 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | |||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | ( | — | — | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, March 28, 2020 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | |||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | ( | — | — | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Equity component of convertible notes, net of issuance costs | — | — | — | — | |||||||||||||||||||||||||||||||
Purchase of capped call related to convertible notes | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, April 3, 2021 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | |||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | — | — | |||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Cumulative effect of change in accounting standards | — | — | ( | — | ( | ||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, April 2, 2022 | $ | $ | $ | $ | ( | $ |
Year Ended | |||||||||||||||||
April 2, 2022 | April 3, 2021 | March 28, 2020 | |||||||||||||||
Cash Flows from Operating Activities: | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Non-cash items: | |||||||||||||||||
Depreciation and amortization | |||||||||||||||||
Impairment of assets | |||||||||||||||||
Share-based compensation expense | |||||||||||||||||
Gain on divestiture and sale of assets | ( | ( | ( | ||||||||||||||
Contingent consideration expense | |||||||||||||||||
Deferred tax benefit | ( | ( | |||||||||||||||
Amortization of deferred financing costs | |||||||||||||||||
(Benefit) provision for losses on inventory | ( | ( | |||||||||||||||
Other non-cash operating activities | |||||||||||||||||
Change in operating assets and liabilities: | |||||||||||||||||
Change in accounts receivable | ( | ||||||||||||||||
Change in inventories | ( | ( | |||||||||||||||
Change in prepaid income taxes | ( | ||||||||||||||||
Change in other assets and other liabilities | ( | ( | ( | ||||||||||||||
Change in accounts payable and accrued expenses | ( | ( | |||||||||||||||
Net cash provided by operating activities | |||||||||||||||||
Cash Flows from Investing Activities: | |||||||||||||||||
Capital expenditures | ( | ( | ( | ||||||||||||||
Proceeds from divestiture | |||||||||||||||||
Proceeds from sale of property, plant and equipment | |||||||||||||||||
Acquisitions | ( | ( | ( | ||||||||||||||
Net cash used in investing activities | ( | ( | ( | ||||||||||||||
Cash Flows from Financing Activities: | |||||||||||||||||
Repayment of term loan borrowings | ( | ( | ( | ||||||||||||||
Net (decrease) increase in short-term loans | ( | ||||||||||||||||
Proceeds from issuance of convertible notes | |||||||||||||||||
Purchase of capped call related to convertible notes | ( | ||||||||||||||||
Transaction costs paid in connection with convertible notes issuance | ( | ||||||||||||||||
Contingent consideration payments | ( | ||||||||||||||||
Proceeds from employee stock purchase plan | |||||||||||||||||
Proceeds from exercise of stock options | |||||||||||||||||
Share repurchases | ( | ||||||||||||||||
Other financing activities | ( | ( | ( | ||||||||||||||
Net cash (used) in provided by financing activities | ( | ( | |||||||||||||||
Effect of exchange rates on cash and cash equivalents | ( | ( | |||||||||||||||
Net Change in Cash and Cash Equivalents | ( | ||||||||||||||||
Cash and Cash Equivalents at Beginning of Year | |||||||||||||||||
Cash and Cash Equivalents at End of Year | $ | $ | $ | ||||||||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||||||||
Interest paid | $ | $ | $ | ||||||||||||||
Income taxes paid | $ | $ | $ | ||||||||||||||
Non-Cash Investing and Financing Activities: | |||||||||||||||||
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ | $ | $ | ||||||||||||||
Tenant improvement allowances excluded from capital expenditures | $ | $ | $ |
Asset Classification | Estimated Useful Lives | |||||||
Building | ||||||||
Building improvements | ||||||||
Plant equipment and machinery | ||||||||
Office equipment and information technology | ||||||||
Haemonetics equipment |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
VAT liabilities | $ | $ | |||||||||
Forward contracts and interest rate swaps | |||||||||||
Deferred revenue | |||||||||||
Accrued taxes | |||||||||||
Lease liability | |||||||||||
Acquisition related liability(1) | |||||||||||
Contingent consideration | |||||||||||
All other | |||||||||||
Total | $ | $ | |||||||||
(1)Related to equity and employee compensation payments associated with the acquisition of Cardiva Medical Inc. that were funded to a third party agent at the transaction closing date but were not yet paid to certain selling shareholders and/or employees as of April 2, 2022 and April 3, 2021. |
(In thousands) | 2020 Program | Prior Programs | Total | ||||||||||||||
Balance at March 31, 2019 | $ | $ | $ | ||||||||||||||
Costs incurred, net of reversals | |||||||||||||||||
Payments | ( | ( | ( | ||||||||||||||
Non-cash adjustments | ( | ( | |||||||||||||||
Balance at March 28, 2020 | $ | $ | $ | ||||||||||||||
Costs incurred, net of reversals | ( | ||||||||||||||||
Payments | ( | ( | ( | ||||||||||||||
Balance at April 3, 2021 | $ | $ | $ | ||||||||||||||
Costs incurred, net of reversals | |||||||||||||||||
Payments | ( | ( | ( | ||||||||||||||
Balance at April 2, 2022 | $ | $ | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Cost of goods sold | $ | $ | $ | ||||||||||||||
Research and development | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Total | $ | $ | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Cost of goods sold | $ | $ | $ | ||||||||||||||
Research and development | |||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||
Total | $ | $ | $ |
Restructuring costs | |||||||||||||||||
(In thousands) | 2021 | 2020 | |||||||||||||||
Plasma | $ | $ | $ | ||||||||||||||
Blood Center | ( | ( | |||||||||||||||
Hospital | ( | ||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Restructuring related costs | |||||||||||||||||
(In thousands) | 2021 | 2020 | |||||||||||||||
Plasma | $ | $ | $ | ||||||||||||||
Blood Center | |||||||||||||||||
Hospital | |||||||||||||||||
Corporate | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Total restructuring and restructuring related costs | $ | $ | $ |
(In thousands) | March 1, 2021 | ||||
Accounts receivable | $ | ||||
Inventories | |||||
Prepaid expenses and other current assets | |||||
Property, plant and equipment | |||||
Intangible assets | |||||
Goodwill | |||||
Other long-term assets | |||||
Total assets acquired | $ | ||||
Accounts payable | |||||
Accrued payroll and related costs | |||||
Other liabilities | |||||
Deferred tax liability | |||||
Other long-term liabilities | |||||
Total liabilities assumed | $ | ||||
Net assets acquired | $ |
(In thousands) | Amount | Weighted-Average Amortization Period | Risk-Adjusted Discount Rates used in Purchase Price Allocation | ||||||||
Completed technology | $ | % | |||||||||
Customer relationships | % | ||||||||||
Trademarks | % | ||||||||||
IPR&D | Indefinite | % | |||||||||
Total | $ |
(In thousands) (Unaudited) | 2021 | 2020 | |||||||||
Net revenues | $ | $ | |||||||||
Net income | $ | $ |
(In thousands) | April 1, 2020 | |||||||
Inventory | $ | |||||||
Other current assets | ||||||||
Property, plant and equipment | ||||||||
Intangible assets | ||||||||
Goodwill | ||||||||
Total assets acquired | $ | |||||||
Other current liabilities | ||||||||
Deferred tax liability | ||||||||
Total liabilities assumed | $ | |||||||
Net assets acquired | $ |
(In thousands) | Amount | Weighted-Average Amortization Period | Risk-Adjusted Discount Rates used in Purchase Price Allocation | |||||||||||||||||
Completed technology | $ | % | ||||||||||||||||||
Customer relationships | % | |||||||||||||||||||
Trademark | % | |||||||||||||||||||
Total | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Domestic | $ | ( | $ | $ | |||||||||||||
Foreign | |||||||||||||||||
Total | $ | $ | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Current | |||||||||||||||||
Federal | $ | $ | ( | $ | |||||||||||||
State | |||||||||||||||||
Foreign | |||||||||||||||||
Total current | $ | $ | $ | ||||||||||||||
Deferred | |||||||||||||||||
Federal | ( | ( | |||||||||||||||
State | ( | ||||||||||||||||
Foreign | ( | ||||||||||||||||
Total deferred | $ | $ | ( | $ | ( | ||||||||||||
Total | $ | $ | ( | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Deferred tax assets: | |||||||||||
Depreciation | $ | $ | |||||||||
Amortization of intangibles | |||||||||||
Inventory | |||||||||||
Accruals, reserves and other deferred tax assets | |||||||||||
Net operating loss carry-forward | |||||||||||
Stock based compensation | |||||||||||
Operating lease liabilities | |||||||||||
Tax credit carry-forward, net | |||||||||||
Capitalized research expenses | |||||||||||
Gross deferred tax assets | |||||||||||
Less valuation allowance | ( | ( | |||||||||
Total deferred tax assets (after valuation allowance) | |||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation | ( | ( | |||||||||
Amortization of goodwill and intangibles | ( | ( | |||||||||
Unremitted earnings | ( | ( | |||||||||
Operating lease assets | ( | ( | |||||||||
Debt discount | ( | ||||||||||
Other deferred tax liabilities | ( | ( | |||||||||
Total deferred tax liabilities | ( | ( | |||||||||
Net deferred tax liabilities | $ | ( | $ | ( |
(In thousands) | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Tax at federal statutory rate | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||
Difference between U.S. and foreign tax | ( | ( | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||
State income taxes net of federal benefit | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||
Change in uncertain tax positions | ( | ( | % | % | % | ||||||||||||||||||||||||||||||
Global intangible low taxed income | % | ( | ( | % | % | ||||||||||||||||||||||||||||||
Unremitted earnings | % | % | % | ||||||||||||||||||||||||||||||||
Deferred statutory rate changes | % | ( | ( | % | % | ||||||||||||||||||||||||||||||
Non-deductible executive compensation | % | % | % | ||||||||||||||||||||||||||||||||
Non-deductible expenses | % | % | % | ||||||||||||||||||||||||||||||||
Stock compensation benefits | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||
Research credits | ( | ( | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||
Contingent consideration | % | % | % | ||||||||||||||||||||||||||||||||
Intercompany sale of intellectual property | % | ( | ( | % | % | ||||||||||||||||||||||||||||||
Valuation allowance | % | ( | ( | % | % | ||||||||||||||||||||||||||||||
Other, net | % | ( | ( | % | ( | ( | % | ||||||||||||||||||||||||||||
Income tax (benefit) provision | $ | % | $ | ( | ( | % | $ | % |
(In thousands) | April 2, 2022 | April 3, 2021 | March 28, 2020 | ||||||||||||||
Beginning Balance | $ | $ | $ | ||||||||||||||
Additions for tax positions of current year | |||||||||||||||||
Additions for tax positions of prior years | |||||||||||||||||
Reductions of tax positions | ( | ( | ( | ||||||||||||||
Settlements of tax positions | ( | ( | |||||||||||||||
Closure of statute of limitations | |||||||||||||||||
Ending Balance | $ | $ | $ |
(In thousands, except per share amounts) | 2021 | 2020 | |||||||||||||||
Basic EPS | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Weighted average shares | |||||||||||||||||
Basic income per share | $ | $ | $ | ||||||||||||||
Diluted EPS | |||||||||||||||||
Net income | $ | $ | $ | ||||||||||||||
Basic weighted average shares | |||||||||||||||||
Net effect of common stock equivalents | |||||||||||||||||
Diluted weighted average shares | |||||||||||||||||
Diluted income per share | $ | $ | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | ||||||||||||
Land | $ | $ | ||||||||||||
Building and building improvements | ||||||||||||||
Plant equipment and machinery | ||||||||||||||
Office equipment and information technology | ||||||||||||||
Haemonetics equipment | ||||||||||||||
Total | ||||||||||||||
Less: accumulated depreciation and amortization | ( | ( | ||||||||||||
Property, plant and equipment, net | $ | $ |
(In thousands) | Plasma | Blood Center | Hospital | Total | |||||||||||||||||||
Carrying amount as of March 28, 2020 | $ | $ | $ | $ | |||||||||||||||||||
Divestitures | ( | ( | ( | ||||||||||||||||||||
Acquisitions | |||||||||||||||||||||||
Currency translation | |||||||||||||||||||||||
Carrying amount as of April 3, 2021 | |||||||||||||||||||||||
Purchase accounting adjustments | |||||||||||||||||||||||
Currency translation | ( | ( | ( | ||||||||||||||||||||
Carrying amount as of April 2, 2022 | $ | $ | $ | $ |
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||
As of April 2, 2022 | |||||||||||||||||
Amortizable: | |||||||||||||||||
Patents | $ | $ | $ | ||||||||||||||
Capitalized software | |||||||||||||||||
Other developed technology | |||||||||||||||||
Customer contracts and related relationships | |||||||||||||||||
Trade names | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Non-amortizable: | |||||||||||||||||
In-process software development | $ | ||||||||||||||||
In-process research and development | |||||||||||||||||
In-process patents | |||||||||||||||||
Total | $ |
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||
As of April 3, 2021 | |||||||||||||||||
Amortizable: | |||||||||||||||||
Patents | $ | $ | $ | ||||||||||||||
Capitalized software | |||||||||||||||||
Other developed technology | |||||||||||||||||
Customer contracts and related relationships | |||||||||||||||||
Trade names | |||||||||||||||||
Total | $ | $ | $ | ||||||||||||||
Non-amortizable: | |||||||||||||||||
In-process software development | $ | ||||||||||||||||
In-process patents | |||||||||||||||||
Total | $ | ||||||||||||||||
(In thousands) | ||||||||
Fiscal 2023 | $ | |||||||
Fiscal 2024 | $ | |||||||
Fiscal 2025 | $ | |||||||
Fiscal 2026 | $ | |||||||
Fiscal 2027 | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Assets | |||||||||||
$ | $ | ||||||||||
Liabilities | |||||||||||
$ | $ | ||||||||||
$ | $ |
April 2, 2022 | April 3, 2021 | ||||||||||
Weighted average remaining lease term | |||||||||||
Weighted average discount rate | % | % |
(In thousands) | April 2, 2022 | April 3, 2021 | March 28, 2020 | |||||||||||
Cash paid for amounts included in the measurement of operating lease liabilities | ||||||||||||||
Operating cash flows used for operating leases | $ | $ | $ | |||||||||||
Right of use assets obtained in exchange for new operating lease liabilities | $ | $ | $ |
Fiscal Year (In thousands) | Operating Leases | |||||||
2023 | $ | |||||||
2024 | ||||||||
2025 | ||||||||
2026 | ||||||||
2027 | ||||||||
Thereafter | ||||||||
Total future minimum operating lease payments | ||||||||
Less: imputed interest | ( | |||||||
Present value of operating lease liabilities | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Term loan, net of financing fees | $ | $ | |||||||||
Convertible notes | |||||||||||
Other borrowings | |||||||||||
Less current portion | ( | ( | |||||||||
Long-term debt | $ | $ |
Fiscal year (In thousands) | |||||
2023 | $ | ||||
2024 | $ | ||||
2025 | $ | ||||
2026 | $ | ||||
2027 | $ |
Twelve Months Ended | ||||||||||||||||||||
(In thousands) | April 2, 2022 | April 3, 2021 | March 28, 2020 | |||||||||||||||||
Beginning balance | $ | $ | $ | |||||||||||||||||
Credit (gain) loss | ( | |||||||||||||||||||
Write-offs | ( | ( | ( | |||||||||||||||||
Ending balance | $ | $ | $ |
Derivative Instruments | Amount of Gain Recognized in Accumulated Other Comprehensive Loss | Amount of Gain (Loss) Reclassified from Accumulated Other Comprehensive Loss into Earnings | Location in Consolidated Statements of Income and Comprehensive Income | Amount of (Loss) Gain Excluded from Effectiveness Testing | Location in Consolidated Statements of Income and Comprehensive Income | |||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | $ | Net revenues, COGS and SG&A | $ | ( | Interest and other expense, net | ||||||||||||||||||||||||||
Non-designated foreign currency hedge contracts | $ | Interest and other expense, net | ||||||||||||||||||||||||||||||
Designated interest rate swaps, net of tax | $ | $ | ( | Interest and other expense, net |
(In thousands) | Location in Balance Sheet | As of April 2, 2022 | As of April 3, 2021 | ||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | $ | ||||||||||||||
Non-designated foreign currency hedge contracts | Other current assets | ||||||||||||||||
$ | $ | ||||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | $ | ||||||||||||||
Non-designated foreign currency hedge contracts | Other current liabilities | ||||||||||||||||
Designated interest rate swaps | Other current liabilities | ||||||||||||||||
Designated interest rate swaps | Other long-term liabilities | ||||||||||||||||
$ | $ |
As of April 2, 2022 | ||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | — | $ | |||||||||||||||||||||
Designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
$ | $ | $ | — | $ | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Designated foreign currency hedge contracts | $ | $ | $ | — | $ | |||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
Contingent consideration | — | — | ||||||||||||||||||||||||
$ | $ | $ | $ | |||||||||||||||||||||||
As of April 3, 2021 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | — | $ | |||||||||||||||||||||
Designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
$ | $ | $ | — | $ | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Designated foreign currency hedge contracts | $ | $ | $ | — | $ | |||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
Contingent consideration | — | — | ||||||||||||||||||||||||
$ | $ | $ | $ |
Fair Value at | Valuation | Unobservable | ||||||||||||||||||||||||
(In thousands) | April 2, 2022 | Technique | Input | Range | ||||||||||||||||||||||
Revenue-based payments | $ | Discounted cash flow | Discount rate | |||||||||||||||||||||||
Projected fiscal year of payment | 2023 | |||||||||||||||||||||||||
Revenue-based payments | $ | Discounted cash flow | Discount rate | |||||||||||||||||||||||
Projected fiscal year of payment | 2023 - 2024 | |||||||||||||||||||||||||
Regulatory-based payment | $ | Discounted cash flow | Discount rate | |||||||||||||||||||||||
Probability of payment | 0% - 100% | |||||||||||||||||||||||||
Projected fiscal year of payment | 2024 |
(In thousands) | ||||||||
Balance at April 3, 2021 | $ | |||||||
Change in fair value | ||||||||
Payments | ( | |||||||
Currency translation | ( | |||||||
Balance at April 2, 2022 | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Service cost | $ | $ | $ | ||||||||||||||
Interest cost on benefit obligation | |||||||||||||||||
Expected return on plan assets | ( | ( | ( | ||||||||||||||
Actuarial loss | |||||||||||||||||
Amortization of unrecognized prior service cost | ( | ( | ( | ||||||||||||||
Plan settlements | ( | ( | |||||||||||||||
Totals | $ | $ | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Change in Benefit Obligation: | |||||||||||
Benefit Obligation, beginning of year | $ | ( | $ | ( | |||||||
Service cost | ( | ( | |||||||||
Interest cost | ( | ( | |||||||||
Benefits paid | |||||||||||
Actuarial gain (loss) | ( | ||||||||||
Employee and plan participants contribution | ( | ( | |||||||||
Plan settlements | |||||||||||
Foreign currency changes | ( | ||||||||||
Benefit obligation, end of year | $ | ( | $ | ( | |||||||
Change in Plan Assets: | |||||||||||
Fair value of plan assets, beginning of year | $ | $ | |||||||||
Company contributions | |||||||||||
Benefits paid | ( | ( | |||||||||
(Loss) gain on plan assets | ( | ||||||||||
Employee and plan participants contribution | |||||||||||
Plan settlements | ( | ||||||||||
Foreign currency changes | ( | ||||||||||
Fair value of plan assets, end of year | $ | $ | |||||||||
Funded Status* | $ | ( | $ | ( | |||||||
Unrecognized net actuarial (gain) loss | ( | ||||||||||
Unrecognized prior service cost | ( | ( | |||||||||
Net amount recognized | $ | ( | $ | ( | |||||||
* Substantially all of the unfunded status is non-current |
Balance as of March 30, 2019 | $ | ( | |||
Actuarial gain | |||||
Prior service cost | ( | ||||
Plan settlements | ( | ||||
Balance as of March 28, 2020 | $ | ( | |||
Actuarial loss | ( | ||||
Prior service cost | ( | ||||
Plan settlements | |||||
Balance as of April 3, 2021 | $ | ( | |||
Actuarial gain | |||||
Prior service cost | ( | ||||
Plan settlements | ( | ||||
Balance as of April 2, 2022 | $ |
2021 | 2020 | ||||||||||||||||
Discount rate | % | % | % | ||||||||||||||
Rate of increased salary levels | % | % | % | ||||||||||||||
Expected long-term rate of return on assets | % | % | % |
(In thousands) | |||||
Fiscal 2023 | $ | ||||
Fiscal 2024 | |||||
Fiscal 2025 | |||||
Fiscal 2026 | |||||
Fiscal 2027 | |||||
Fiscal 2028-2032 |
(In thousands) | 2021 | 2020 | |||||||||||||||
Selling, general and administrative expenses | $ | $ | $ | ||||||||||||||
Research and development | |||||||||||||||||
Cost of goods sold | |||||||||||||||||
$ | $ | $ |
Options Outstanding | Weighted Average Exercise Price per Share | Weighted Average Remaining Life (years) | Aggregate Intrinsic Value ($000’s) | ||||||||||||||||||||
Outstanding at April 3, 2021 | $ | $ | |||||||||||||||||||||
Granted | |||||||||||||||||||||||
Exercised | ( | ||||||||||||||||||||||
Forfeited/Canceled | ( | ||||||||||||||||||||||
Outstanding at April 2, 2022 | $ | $ | |||||||||||||||||||||
Exercisable at April 2, 2022 | $ | $ | |||||||||||||||||||||
Vested or expected to vest at April 2, 2022 | $ | $ |
2021 | 2020 | ||||||||||||||||
Volatility | % | % | % | ||||||||||||||
Expected life (years) | |||||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Dividend yield | % | % | % | ||||||||||||||
Grant-date fair value per Option | $ | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at April 3, 2021 | $ | ||||||||||
Granted | |||||||||||
Vested | ( | ||||||||||
Forfeited | ( | ||||||||||
Unvested at April 2, 2022 | $ |
2021 | 2020 | ||||||||||||||||
Grant-date fair value per RSU | $ | $ | $ | ||||||||||||||
Fair value of RSUs vested | $ | $ | $ |
Shares | Weighted Average Grant Date Fair Value | ||||||||||
Unvested at April 3, 2021 | $ | ||||||||||
Granted(1) | |||||||||||
Vested | |||||||||||
Forfeited | ( | ||||||||||
Unvested at April 2, 2022 | $ | ||||||||||
(1) Includes the adjustment of 70,672 shares for awards granted in fiscal 2019, based on actual relative total shareholder return of 0% |
2021 | 2020 | ||||||||||||||||
Expected stock price volatility | % | % | % | ||||||||||||||
Peer group stock price volatility | % | % | % | ||||||||||||||
Correlation of returns | % | % | % |
2021 | 2019 | ||||||||||||||||
Grant-date fair value per PSU | $ | $ | $ | ||||||||||||||
Fair value of PSUs vested | $ | $ | $ |
2021 | 2020 | ||||||||||||||||
Volatility | % | % | % | ||||||||||||||
Expected life (months) | |||||||||||||||||
Risk-free interest rate | % | % | % | ||||||||||||||
Dividend Yield | % | % | % |
(In thousands) | 2021 | 2020 | |||||||||||||||
Net revenues | |||||||||||||||||
Plasma | $ | $ | $ | ||||||||||||||
Blood Center | |||||||||||||||||
Hospital | |||||||||||||||||
Net revenues by business unit | |||||||||||||||||
Service (1) | |||||||||||||||||
Effect of exchange rates | ( | ( | |||||||||||||||
Net revenues | $ | $ | $ | ||||||||||||||
(1) Reflects revenue for service, maintenance and parts. |
(In thousands) | 2021 | 2020 | |||||||||||||||
Segment operating income | |||||||||||||||||
Plasma | $ | $ | $ | ||||||||||||||
Blood Center | |||||||||||||||||
Hospital | |||||||||||||||||
Segment operating income | |||||||||||||||||
Corporate expenses (1) | ( | ( | ( | ||||||||||||||
Effect of exchange rates | |||||||||||||||||
Deal amortization | ( | ( | ( | ||||||||||||||
Impairment of assets and PCS2 related charges | ( | ( | ( | ||||||||||||||
Integration and transaction costs | ( | ( | ( | ||||||||||||||
Restructuring and restructuring related costs | ( | ( | ( | ||||||||||||||
MDR and IVDR costs | ( | ( | ( | ||||||||||||||
Litigation-related charges | ( | ( | |||||||||||||||
Gains on divestitures and sale of assets | |||||||||||||||||
Operating income | $ | $ | $ | ||||||||||||||
(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. |
(In thousands) | 2021 | 2020 | |||||||||||||||
Depreciation and amortization | |||||||||||||||||
Plasma | $ | $ | $ | ||||||||||||||
Blood Center | |||||||||||||||||
Hospital | |||||||||||||||||
Total depreciation and amortization (excluding impairment charges) | $ | $ | $ |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Long-lived assets(1) | |||||||||||
Plasma | $ | $ | |||||||||
Blood Center | |||||||||||
Hospital | |||||||||||
Total long-lived assets | $ | $ | |||||||||
(1) Long-lived assets are comprised of property, plant and equipment. |
(In thousands) | April 2, 2022 | April 3, 2021 | |||||||||
Long-lived assets(1) | |||||||||||
United States | $ | $ | |||||||||
Japan | |||||||||||
Europe | |||||||||||
Asia | |||||||||||
Other | |||||||||||
Total long-lived assets | $ | $ | |||||||||
(1) Long-lived assets are comprised of property, plant and equipment. |
(In thousands) | 2021 | 2020 | |||||||||||||||
United States | $ | $ | $ | ||||||||||||||
Japan | |||||||||||||||||
Europe | |||||||||||||||||
Asia | |||||||||||||||||
Other | |||||||||||||||||
Net revenues | $ | $ | $ |
(In thousands) | 2021 | 2020 | |||||||||||||||
Plasma products and services | |||||||||||||||||
Blood Center products and services | |||||||||||||||||
Hospital products and services | |||||||||||||||||
Net revenues | $ | $ | $ |
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain (Loss) on Derivatives | Total | ||||||||||||||||||||||
Balance, March 28, 2020 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | ( | ||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive gain(1) | ||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Balance, April 3, 2021 | $ | ( | $ | ( | $ | ( | $ | ( | ||||||||||||||||||
Other comprehensive income (loss) before reclassifications | ( | |||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive gain(1) | ||||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ( | |||||||||||||||||||||||||
Balance, April 2, 2022 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
(1) Presented net of income taxes, the amounts of which are insignificant. |
Financial Statements required by Item 8 of this Form | |||||
1. Articles of Organization | ||||||||
Restated Articles of Organization of Haemonetics Corporation, reflecting Articles of Amendment dated August 23, 1993, August 21, 2006, July 26, 2018 and July 25, 2019 (filed as Exhibit 3.1 to the Company's Form 8-K dated July 29, 2019 and incorporated herein by reference). | ||||||||
By-Laws of the Company, as amended through June 29, 2020 (filed as Exhibit 3.1 to the Company's Form 8-K dated June 30, 2020 and incorporated herein by reference). | ||||||||
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). | |||||||
Description of Common Stock (filed as Exhibit 4B to the Company's Form 10-K for the fiscal year ended March 28, 2020 and incorporated herein by reference). | ||||||||
Indenture, dated as of March 5, 2021, between Haemonetics Corporation and U.S. Bank National Association, as trustee (filed as Exhibit 4.1 to the Company's Form 8-K dated March 5, 2021 and incorporated herein by reference). | ||||||||
Form of certificate representing the 0.00% Convertible Senior Notes due 2026 (included as Exhibit A to Exhibit 4D) (filed as Exhibit 4.2 to the Company's Form 8-K dated March 5, 2021 and incorporated herein by reference). | ||||||||
3. Material Contracts | ||||||||
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) (1). | ||||||||
Haemonetics Corporation 2019 Long-Term Incentive Compensation Plan (filed as Exhibit 10.1 to the Company's Form 8-K dated July 29, 2019 and incorporated herein by reference) (1). | ||||||||
Form of Non-Qualified Stock Option Award Agreement under 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) (1). | ||||||||
Form of Non-Qualified Stock Option Award Agreement under 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) (1). | ||||||||
Form of Non-Qualified Stock Option Award Agreement under 2005 Long-Term Incentive Compensation Plan for Employees (adopted fiscal 2019) (filed as Exhibit 10.2 to the Company's Form 10-Q for the quarter ended June 30, 2018 and incorporated herein by reference) (1). | ||||||||
Form of Non-Qualified Stock Option Award Agreement under 2019 Long-Term Incentive Compensation Plan (adopted fiscal 2020) (filed as Exhibit 10.4 to the Company's Form 10-Q for the quarter ended September 28, 2019 and incorporated herein by reference) (1). | ||||||||
Form of Restricted Stock Unit Award Agreement with Non-Employee Directors under 2019 Long-Term Incentive Compensation Plan (fiscal 2020) (filed as Exhibit 10.2 to the Company's Form 10-Q for the quarter ended September 28, 2019 and incorporated herein by reference) (1). | ||||||||
Form of Restricted Stock Unit Award 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) (1). | ||||||||
Form of Restricted Stock Unit Award Agreement with Employees under 2005 Long-Term Incentive Compensation Plan (adopted fiscal 2019) (filed as Exhibit 10.4 to the Company's Form 10-Q for the quarter ended June 30, 2018 and incorporated herein by reference) (1). | ||||||||
Form of Restricted Stock Unit Award Agreement with Employees under 2019 Long-Term Incentive Compensation Plan (adopted fiscal 2020) (filed as Exhibit 10.3 to the Company's Form 10-Q for the quarter ended September 28, 2019 and incorporated herein by reference) (1). | ||||||||
Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR Metrics, adopted fiscal 2019) (filed as Exhibit 10.3 to the Company's Form 10-Q for the quarter ended June 30, 2018 and incorporated herein by reference) (1). | ||||||||
Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR Metrics, adopted fiscal 2020) (filed herewith as Exhibit 10AV to the Company's Form 10-K for the year ended March 30, 2019 and incorporated herein by reference) (1). |
Form of Performance Share Unit Award Agreement Under 2019 Long-Term Incentive Compensation Plan (rTSR Metrics, adopted fiscal 2020) (filed herewith as Exhibit 10.5 to the Company's Form 10-Q for the quarter ended September 28, 2019 and incorporated herein by reference) (1). | ||||||||
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) (1). | ||||||||
Employment Agreement effective as of May 16, 2016 between the Company and Christopher A. Simon (filed as Exhibit 10.1 to the Company’s Form 8-K dated May 10, 2016 and incorporated herein by reference) (1). | ||||||||
Executive Severance Agreement between the Company and Christopher A. Simon dated as of November 7, 2017 (filed as Exhibit 10.4 to the Company’s Form 10-Q dated for the quarter ended September 30, 2017 and incorporated herein by reference) (1). | ||||||||
Change in Control Agreement between the Company and Christopher A. Simon dated as of November 7, 2017 (filed as Exhibit 10.5 to the Company’s Form 10-Q dated for the quarter ended September 30, 2017 and incorporated herein by reference) (1). | ||||||||
Form of Executive Severance Agreement between the Company and executive officers other than Christopher A. Simon (filed as Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended September 30, 2017 and incorporated herein by reference) (1). | ||||||||
Form of Change in Control Agreement between the Company and executive officers other than Christopher A. Simon (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended September 30, 2017 and incorporated herein by reference) (1). | ||||||||
Haemonetics Corporation Worldwide Employee Bonus Plan (as amended and restated effective April 23, 2019) (filed as Exhibit 10.1 to the Company's Form 8-K dated April 29, 2019 and incorporated herein by reference) (1). | ||||||||
CFO Retention and Transition Agreement, dated as of November 8, 2021, by and between the Company and William P. Burke (filed as Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended January 1, 2022 and incorporated herein by reference) (1). | ||||||||
Form of Indemnification Agreement (as executed with each director and executive officer of the Company) (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended September 29, 2018 and incorporated herein by reference). | ||||||||
Office Lease Agreement, dated as of December 18, 2018, by and between OPG 125 Summer Owner (DE) LLC and the Company (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended December 29, 2018 and incorporated herein by reference) (2). | ||||||||
10X | Lease dated July 17, 1990 between the Buncher Company and the Company of property in Leetsdale, Pennsylvania (filed as Exhibit 10-K to the Company's Form S-1 No. 33-39490 and incorporated herein by reference). | |||||||
10Y | First Amendment to lease dated July 17, 1990, made as of April 30, 1991 between Buncher Company and the Company of property in Leetsdale, Pennsylvania (filed as Exhibit 10AI to the Company's Form 10-Q for the quarter ended December 28, 1996 and incorporated herein by reference). | |||||||
Second Amendment to lease dated July 17, 1990, made as of October 18, 2000 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10AG to the Company's Form 10-K for the year ended March 29, 2003 and incorporated herein by reference). | ||||||||
Third Amendment to lease dated July 17, 1990, made as of March 23, 2004 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10D to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | ||||||||
Fourth Amendment to lease dated July 17, 1990, made as of March 12, 2008 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10E to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | ||||||||
Fifth Amendment to lease dated July 17, 1990, made as of October 1, 2008 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10F to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | ||||||||
Sixth Amendment to lease dated July 17, 1990 made as of January 8, 2010 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10G to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | ||||||||
Seventh Amendment to lease dated July 17, 1990, made as of March 31, 2011 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10H to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). | ||||||||
Eighth Amendment to lease dated July 17, 1990, made as of February 26, 2013 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10I to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference). |
Ninth Amendment to lease dated July 17, 1990, made as of March 12, 2014 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10J to the Company's Form 10-K for the year ended March 31, 2018 and incorporated herein by reference). | ||||||||
Tenth Amendment to lease dated July 17, 1990, made as of May 31, 2017 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10K to the Company's Form 10-K for the year ended March 31, 2018 and incorporated herein by reference). | ||||||||
Eleventh Amendment to lease dated July 17, 1990, made as of March 2, 2018 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10L to the Company's Form 10-K for the year ended March 31, 2018 and incorporated herein by reference). | ||||||||
Twelfth Amendment to lease dated July 17, 1990, made as of May 22, 2020 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10.2 to the Company's Form 10-Q for the quarter ended December 26, 2020 and incorporated herein by reference) (3). | ||||||||
Thirteenth Amendment to lease dated July 17, 1990, made as of December 21, 2020 between Buncher Company and the Company for the property in Leetsdale, Pennsylvania (filed as Exhibit 10.3 to the Company's Form 10-Q for the quarter ended December 26, 2020 and incorporated herein by reference) (3). | ||||||||
Fourteenth Amendment to lease dated July 17, 1990, made as of November 11, 2021 by and between Buncher Company and the Company for property located in Leetsdale, Pennsylvania (filed as Exhibit 10.1 to the Company’s Form 10-Q for the quarter ended January 1, 2022 and incorporated herein by reference) (3). | ||||||||
Industrial Lease Agreement, dated as of May 22, 2020, by and between Clinton Commerce III, LLC and the Company (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended June 27, 2020 and incorporated herein by reference) (3). | ||||||||
First Amendment to Industrial Lease Agreement, dated as of October 1, 2020, by and between Clinton Commerce III, LLC and the Company (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended December 26, 2020 and incorporated herein by reference). | ||||||||
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). | ||||||||
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). | ||||||||
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). | ||||||||
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). | ||||||||
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). | ||||||||
Amendment to Lease dated February 21, 2000 made as of January 1, 2018 between MEGA2013, S.A.P.I. de CV (as successor in interest to ABBVA 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 10R to the Company's Form 10-K for the year ended March 31, 2018 and incorporated herein by reference). | ||||||||
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). | ||||||||
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). |
Amendment to Lease Agreement effective December 3, 2007, made in 2017 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 10U to the Company's Form 10-K for the year ended March 31, 2018 and incorporated herein by reference). | ||||||||
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). | ||||||||
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). | ||||||||
Lease dated September 19, 2013 between the Penang Development Corporation and Haemonetics Malaysia Sdn Bhd 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). | ||||||||
Shelter Plan Service Agreement, dated June 10, 2014, by and between Cardiva Medical, Inc. and Offshore International, Incorporated, as amended on October 30, 2019 (filed as Exhibit 10.23 to Cardiva Medical, Inc.’s Form S-1 (File No. 333-251885) dated January 4, 2021 and incorporated herein by reference) (3). | ||||||||
Credit Agreement, dated as of June 15, 2018, by and among Haemonetics Corporation, the Lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 10.1 to the Company’s Form 8-K dated June 18, 2018 and incorporated herein by reference). | ||||||||
Amendment No. 1, dated as of March 1, 2021, to Credit Agreement dated as of June 15, 2018, by and among Haemonetics Corporation, the lenders from time to time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 10.1 to the Company's Form 8-K dated March 1 2021 and incorporated herein by reference). | ||||||||
Form of Confirmation of Call Option Transaction (filed as Exhibit 10.1 to the Company's Form 8-K dated as of March 5, 2021 and incorporated herein by reference). | ||||||||
Form of Confirmation of Additional Call Option Transaction (filed as Exhibit 10.1 to the Company's Form 8-K dated as of March 16, 2021 and incorporated herein by reference). | ||||||||
Agreement and Plan of Merger, dated as of January 17, 2021, by and among the Company, Concordia Merger Sub, Inc., Cardiva Medical, Inc. and Fortis Advisors LLC, as the Seller Representative (filed as Exhibit 10.4 to the Company’s 10-Q for the quarter ended December 26, 2020 and incorporated herein by reference) (3). | ||||||||
4. Subsidiaries Certifications and Consents | ||||||||
Subsidiaries of the Company. | ||||||||
Consent of the Independent Registered Public Accounting Firm. | ||||||||
Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company. | ||||||||
Certification pursuant to Section 302 of Sarbanes-Oxley of 2002 of James D'Arecca, Executive Vice President, Chief Financial Officer of the Company. | ||||||||
Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company. | ||||||||
Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of James D'Arecca, Executive Vice President, Chief Financial Officer of the Company. | ||||||||
101* | The following materials from Haemonetics Corporation on Form 10-K for the year ended April 2, 2022, formatted in inline Extensible Business Reporting Language (XBRL) includes: (i) Consolidated Statements of Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets, (iv) Consolidated Statement of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements. | |||||||
104* | Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101). |
* | Document filed with this report. | |||||||
** | Document furnished with this report. | |||||||
(1) | Agreement, plan, or arrangement related to the compensation of officers or directors. | |||||||
(2) | Confidential treatment has been requested as to portions of the exhibit. Confidential materials omitted and filed separately with the Securities and Exchange Commission. | |||||||
(3) | Certain portions of this exhibit are considered confidential and have been omitted as permitted under SEC rules and regulations. |
HAEMONETICS CORPORATION | ||||||||
By: | /s/ Christopher A. Simon | |||||||
Christopher A. Simon | ||||||||
President, Chief Executive Officer and a Director |
Signature | Title | Date | ||||||||||||
/s/ Christopher A. Simon | President, Chief Executive Officer and a Director | May 25, 2022 | ||||||||||||
Christopher A. Simon | (Principal Executive Officer) | |||||||||||||
/s/ James C. D'Arecca | Executive Vice President, Chief Financial Officer | May 25, 2022 | ||||||||||||
James C. D'Arecca | (Principal Financial Officer) | |||||||||||||
/s/ Dan Goldstein | Vice President, Corporate Controller | May 25, 2022 | ||||||||||||
Dan Goldstein | (Principal Accounting Officer) | |||||||||||||
/s/ Robert E. Abernathy | Director | May 25, 2022 | ||||||||||||
Robert E. Abernathy | ||||||||||||||
/s/ Catherine M. Burzik | Director | May 25, 2022 | ||||||||||||
Catherine M. Burzik | ||||||||||||||
/s/ Michael J. Coyle | Director | May 25, 2022 | ||||||||||||
Michael J. Coyle | ||||||||||||||
/s/ Charles J. Dockendorff | Director | May 25, 2022 | ||||||||||||
Charles J. Dockendorff | ||||||||||||||
/s/ Lloyd E. Johnson | Director | May 25, 2022 | ||||||||||||
Lloyd E. Johnson | ||||||||||||||
/s/ Mark W. Kroll | Director | May 25, 2022 | ||||||||||||
Mark W. Kroll | ||||||||||||||
/s/ Claire Pomeroy | Director | May 25, 2022 | ||||||||||||
Claire Pomeroy | ||||||||||||||
/s/ Ellen M. Zane | Director | May 25, 2022 | ||||||||||||
Ellen M. Zane |
Subsidiary of Haemonetics Corporation | Jurisdiction of Incorporation or Organization | |||||||
5D Information Management, Inc. | Delaware | |||||||
Arryx, Inc. | Nevada | |||||||
Cardiva Medical, Inc. | Delaware | |||||||
Enicor GmbH | Germany | |||||||
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 EIRELI | Brazil | |||||||
Haemonetics International Finance S.a.r.l. | Luxembourg | |||||||
Haemonetics International Holdings GmbH | 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. | 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 S.A. | Switzerland | |||||||
Haemonetics Scandinavia AB | Sweden | |||||||
Haemonetics Singapore Pte. Ltd. | Singapore | |||||||
Haemoscope Corporation | Massachusetts |
/s/ Christopher A. Simon | ||||||||||||||
Christopher A. Simon, President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
/s/ James D'Arecca | ||||||||||||||
James D'Arecca, Executive Vice President, Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
/s/ Christopher A. Simon | ||||||||||||||
Christopher A. Simon, | ||||||||||||||
President and Chief Executive Officer (Principal Executive Officer) |
/s/ James D'Arecca | ||||||||||||||
James D'Arecca, Executive Vice President, Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
AUDIT INFORMATION |
12 Months Ended |
---|---|
Apr. 02, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Ernst & Young LLP |
Auditor Location | Boston, Massachusetts |
Auditor Firm ID | 42 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 43,375 | $ 79,469 | $ 76,526 |
Other comprehensive income (loss): | |||
Impact of defined benefit plans, net of tax | 2,179 | (351) | 318 |
Foreign currency translation adjustment, net of tax | (6,391) | 9,572 | (5,587) |
Unrealized gain (loss) on cash flow hedges, net of tax | 5,785 | (489) | (10,111) |
Reclassifications into earnings of cash flow hedge losses, net of tax | 2,020 | 6,856 | 625 |
Other comprehensive income (loss) | 3,593 | 15,588 | (14,755) |
Comprehensive income | $ 46,968 | $ 95,057 | $ 61,771 |
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Apr. 03, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,475 | $ 2,226 |
Intangible assets, accumulated amortization | $ 376,552 | $ 320,640 |
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) | 51,124,240 | 50,868,820 |
Common stock, outstanding (in shares) | 51,124,240 | 50,868,820 |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
12 Months Ended |
---|---|
Apr. 02, 2022 | |
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 medical products and solutions for customers, to help them improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets: blood and plasma component collection, the surgical suite and hospital transfusion services. Blood is essential to a modern healthcare system. Blood and its components (plasma, red cells and platelets) 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. Haemonetics manages its business in three principal reporting segments: Plasma, Blood Center and Hospital. For that purpose, “Plasma” includes plasma collection devices and disposables, plasma donor management software, and anticoagulant and saline sold to plasma customers. “Blood Center” includes blood collection and processing devices and disposables for red cells, platelets and whole blood. “Hospital”, which is comprised of Hemostasis Management, Vascular Closure, Transfusion Management and Cell Salvage products, includes devices and methodologies for measuring coagulation characteristics of blood, surgical blood salvage systems, specialized blood cell processing systems and disposables, blood transfusion management software and vascular closure devices. The accompanying consolidated financial statements present separately the Company's consolidated financial position, results of operations, cash flows and changes in shareholders’ equity. The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All amounts presented, except per share amounts, are stated in thousands of U.S. dollars, unless otherwise indicated. The Company considers 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. Subsequent events have been evaluated as required. There were no material recognized or unrecognized subsequent events.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Fiscal Year Haemonetics' fiscal year ends on the Saturday closest to the last day of March. Fiscal 2021 included 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks. Fiscal 2022 and 2020 included 52 weeks with each quarter having 13 weeks. Principles of Consolidation The accompanying consolidated financial statements include all accounts including those of its 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 the Company 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 its estimates and assumptions. The Company considers estimates to be critical if they 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, inventory provisions, intangible asset and goodwill valuation, legal and other judgmental accruals and income taxes. Contingencies The Company 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, the Company records 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, the best estimate is changed to a lower amount. Revenue Recognition The Company's revenue recognition policy is to recognize revenues from product sales, software and services in accordance with the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-19, Revenue from Contracts with Customers (Topic 606). Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The Company considers revenue to be earned when all of the following criteria are met: it has a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the consideration the Company expects to receive for transferring goods or providing services, is determinable and it has transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated standalone selling prices of the good or service in the contract. For goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. Product Revenues The majority of the Company’s performance obligations related to product sales are satisfied at a point in time. Product revenue consists of the sale of its disposable blood component collection and processing sets and the related equipment. The Company’s performance obligation related to product sales is satisfied upon shipment or delivery to the customer based on the specified terms set forth in the customer contract. Shipping and handling activities performed after a customer obtains control of the good are treated as fulfillment activities and are not considered to be a separate performance obligation. Revenue is recognized over time for maintenance plans provided to customers that provide services beyond the Company’s standard warranty period. Payment terms between customers related to product sales vary by the type of customer, country of sale, and the products or services offered and could result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). For product sales to distributors, the Company recognizes revenue for both equipment and disposables upon shipment to distributors, which is when its performance obligations are complete. The Company's standard contracts with its 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 any installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. The Company also places equipment at customer sites. While the Company retains ownership of this equipment, the customer has the right to use it for a period of time provided they meet certain agreed to conditions. The Company recovers the cost of providing the equipment from the sale of its disposables. Software and Other Revenues To a lesser extent, the Company enters into other types of contracts including certain software licensing arrangements to provide software solutions to support its plasma, blood collection and hospital customers. A portion of its software sales are perpetual licenses typically accompanied by significant implementation services related to software customization as well as other professional and technical services. The Company generally recognizes revenue from the sale of perpetual licenses and related customization services over time (the Company is creating or enhancing an asset that the customer controls) using an input method which requires it to make estimates of the extent of progress toward completion of the contract. When the Company provides other services, including in some instances hosting, technical support and maintenance, it recognizes these fees and charges over time (the customer simultaneously receives and consumes benefits), as performance obligations for these services are satisfied during the contract period. Certain of the Company's software licensing arrangements are term-based licenses that include a per-collection or a usage-based fee related to the use of the license and the related technical support and hosting services. For these usage-based arrangements, the Company applies the revenue recognition exception resulting in revenue recognition occurring upon the later of actual usage or satisfaction of the related performance obligations. The payment terms for software licensing arrangements vary by customer pursuant to the terms set forth in the customer contract and result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). Significant Judgments Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration related to rebates, product returns and volume discounts. These reserves, which are based on estimates of the amounts earned or to be claimed on the related sales, are recorded as a reduction of revenue and a current liability. The Company's estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the net sales price is limited to the amount that is probable not to result in a significant reversal in the amount of the cumulative revenue recognized in a future period. Revenue recognized in the current period related to performance obligations satisfied in prior periods was not material. If the Company is unable to estimate the expected rebates reasonably, it records a liability for the maximum potential rebate or discount that could be earned. In circumstances where the Company provides upfront rebate payments to customers, it capitalizes the rebate payments and amortizes the resulting asset as a reduction of revenue using a systematic method over the life of the contract. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets and contract liabilities. Practical Expedients The Company elected not to disclose the value of transaction price allocated to unsatisfied performance obligations for contracts with an original expected length of one year or less. When applicable, the Company has also elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it is expected, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service, will be one year or less. 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 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 2, 2022, cash and cash equivalents consisted primarily of investments in United States Government Agency and institutional money market funds. Allowance for Doubtful Accounts The Company establishes a specific allowance for customers when it is probable that they will not be able to meet their financial obligations. Customer accounts are reviewed individually on a regular basis and reserves are established as deemed appropriate. The Company also maintains a general reserve using a percentage that is established based upon the age of its receivables and its collection history. The Company establishes 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. The Company has based its provisions for excess, expired and obsolete inventory primarily on its estimates of forecasted net sales. Significant changes in the timing or level of demand for the Company's products result 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 the Company's estimates related to excess, expired and obsolete inventory. Property, Plant and Equipment Property, plant and equipment is recorded at historical cost. The Company provides 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:
The Company evaluates 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. The Company's installed base of devices includes devices owned by the Company and devices sold to the customer. The asset on its 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 the Company has established, which among other things, generally include one or more of the following: •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 Consistent with the impairment tests noted below for other intangible assets subject to amortization, the Company reviews Haemonetics equipment and the related useful lives of such equipment 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, the Company estimates the future amount and timing of demand for disposables used with these devices, from which it generates revenues. The Company also considers product life cycle in its 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 the Company's devices and its 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 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, 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. The Company performs its annual impairment test on the first day of the fiscal fourth quarter for each of its reporting units. Under ASC Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 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. The Company determines its reporting units 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. The Company aggregates components within an operating segment that have similar economic characteristics. The Company's reportable and operating segments are as follows: Plasma, Blood Center, and Hospital. When allocating goodwill from business combinations to its reporting units, the Company assigns goodwill to the reporting units that it expects to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing its 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. The Company allocates 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. The Company uses the income approach, specifically the discounted cash flow method, to derive the fair value of each of its reporting units in preparing its 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. The Company selected this method as being the most meaningful in preparing its 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 its accounting for goodwill, the Company makes 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 the Company's discounted cash flow analysis is based on its 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 the Company's discounted cash flow analysis and reflects the Company's best estimates for stable, perpetual growth of its reporting units. The Company uses estimates of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rates to apply to its reporting units’ future expected cash flows. The Company 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 its reporting units to its market capitalization at the time of the test. During the fourth quarter of fiscal 2022, 2021 and 2020, the Company performed its annual goodwill impairment test. The results of the goodwill impairment test performed indicated that the estimated fair value of all of its reporting units exceeded their respective carrying values. There were no reporting units at risk of impairment as of the fiscal 2022, 2021 and 2020 annual test date. The Company reviews 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 its products or the size of the market for its products. When an impairment indicator exists, the Company tests the intangible asset for recoverability. For purposes of the recoverability test, the Company groups its 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), the Company will write the carrying value down to the fair value in the period identified. The Company generally calculates the fair value of its intangible assets as the present value of estimated future cash flows it expects to generate from the asset using a risk-adjusted discount rate. In determining its estimated future cash flows associated with its intangible assets, the Company uses estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). If the Company determines the estimate of an intangible asset's remaining useful life should be reduced based on its expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. During fiscal 2022 the Company recognized impairment charges of intangible assets of $0.6 million. In 2021 and 2020 the Company did not incur any intangible asset impairments. The Company has in-process research and development (“IPR&D”) intangible assets with indefinite lives. IPR&D assets are not amortized. The Company reviews these assets 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 the asset is less than its carrying value. The Company performs its annual impairment test on the first day of the fiscal fourth quarter for its IPR&D assets. The Company makes assumptions about future cash flows, terminal value growth, costs for completion and appropriate discount rates. The Company elected a qualitative assessment in fiscal year 2022. Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, 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 5 to 10 years. Technological feasibility is established when it has a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. The Company capitalizes costs associated with both software that it sells as a separate product and software that is embedded in a device. The Company reviews the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. There were no impairment charges recorded during fiscal 2022, 2021 and 2020. 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. 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 income. Advertising expenses were $4.4 million, $2.7 million and $4.3 million in fiscal 2022, 2021 and 2020, respectively. Shipping and Handling Costs Shipping and handling costs are included in selling, general and administrative expenses. Income Taxes The income tax provision is calculated for all jurisdictions in which the Company operates. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items that 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 the Company's 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. Refer to Note 6, Income Taxes, for further information and discussion of the Company's income tax provision and balances. The Company files income tax returns in all jurisdictions in which it operates. The Company records a liability for uncertain tax positions taken or expected to be taken in income tax returns. The Company's financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. The Company records a liability for the portion of unrecognized tax benefits claimed that it has 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 the Company's 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. The Company evaluates at the end of each reporting period whether some or all of the undistributed earnings of its foreign subsidiaries are permanently reinvested. The Company recognizes 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. The Company's position is based upon several factors including management’s evaluation of the Haemonetics 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. Convertible Senior Notes Prior to April 4, 2021, the Company accounted for convertible senior notes as separate liability and equity components, determining the fair value of the respective liability components based on an estimate of the fair value of a similar liability without a conversion option and assigning the residual value to the equity component. Effective April 4, 2021, the Company accounted for convertible senior notes as a single liability measured at its amortized cost. See Recent Accounting Pronouncements below. At issuance, the carrying amount is calculated as the proceeds, net of initial debt issuance costs. The difference between the principal amount and carrying value is amortized to interest expense over the term of the convertible senior notes using the effective interest rate method. A detailed analysis of the terms of the convertible senior notes transactions is required to determine existence of any derivatives that may require separate mark-to-market accounting under applicable accounting guidance. Derivative Instruments The Company accounts for its 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, the Company records 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 the Company has 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. The Company does 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 the Company's consolidated statements of 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 the Company records 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. The Company recorded foreign currency losses of $1.5 million, $0.7 million and $2.9 million in fiscal 2022, 2021 and 2020, respectively. On a quarterly basis, the Company assesses whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. The Company manages the credit risk of its counterparties by dealing only with institutions that it considers financially sound and considers the risk of non-performance to be remote. Additionally, the Company's interest rate risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable interest rates. The Company's objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations. The Company's derivative instruments do not subject its 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. The Company does not enter into derivative transactions for speculative purposes and it does not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC 815. Share-Based Compensation The Company expenses the fair value of share-based awards granted to employees, board members and others, net of estimated forfeitures. To calculate the grant-date fair value of its stock options the Company uses the Black-Scholes option-pricing model and for performance share units it uses Monte Carlo simulation models. Costs Associated with Exit Activities The Company records employee termination costs in accordance with ASC Topic 712, Compensation - Nonretirement and Postemployment Benefits, if it pays the benefits as part of an on-going benefit arrangement, which includes benefits provided as part of its established severance policies or that it provides in accordance with international statutory requirements. The Company accrues employee termination costs associated with an on-going benefit arrangement if the obligation is attributable to prior services rendered, the rights to the benefits have vested, the payment is probable and the liability can be reasonably estimated. The Company accounts for employee termination benefits that represent a one-time benefit in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. It records such costs into expense over the employee’s future service period, if any. Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, consultant fees and impairments of long-lived assets. The costs are expensed in accordance with ASC Topic 420 and ASC Topic 360, Property, Plant and Equipment and are included primarily in selling, general and administrative costs in its consolidated statement of income. Additionally, costs directly related to the Company's active restructuring initiatives, including program management costs, accelerated depreciation and costs to transfer product lines among facilities are included within costs of goods sold and selling, general and administrative costs in its consolidated statement of income. Refer to Note 3, Restructuring, for further information and discussion of its restructuring plans. Valuation of Acquisitions The Company allocates the amounts it pays 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. The Company bases the estimated fair value of identifiable intangible assets on detailed valuations that use significant assumptions including forecasted cash flows, revenues attributable to existing technology and existing customer attrition. When estimating the significant assumptions to be used in the valuation, the Company includes a consideration of current industry information, market and economic trends, historical results of the acquired business, and other relevant factors. These significant assumptions are forward-looking and could be affected by future economic and market conditions. The Company allocates 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 2022, 2021 and 2020, the Company's ten largest customers accounted for approximately 45%, 49% and 54% of net revenues, respectively. In fiscal 2022, one Plasma customer, CSL Limited (together with its affiliates, “CSL”) was greater than 10% of both total net revenue and accounts receivable and in total accounted for approximately 12% of net revenues and 14% of accounts receivable. In addition to CSL, two customers also accounted for greater than 10% of the Plasma segment's net revenues and one customer also accounted for greater than 10% of the Blood Center segment's net revenues, but did not exceed 10% of total net revenues, in fiscal 2022. Certain other markets and industries can expose the Company to concentrations of credit risk. For example, in the Plasma business unit, sales are concentrated with several large customers. As a result, accounts receivable extended to any one of these biopharmaceutical customers can be significant at any point in time. Also, a portion of the Company's trade accounts receivable outside the U.S. 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. The Company has not incurred significant losses on government receivables. The Company continually evaluates 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 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326). ASC Update No. 2016-13 is intended to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. The Company adopted ASC Update No. 2016-13 during the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASC Update No. 2018-15, Intangibles, Goodwill and Other - Internal-Use Software (Subtopic 350-40). The new guidance aligns the accounting implementation costs incurred in a cloud computing arrangement that is a service contract with the accounting for internal-use software licenses. The Company adopted ASC Update No. 2018-15 during the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. In May 2020, the Securities and Exchange Commission (“SEC”) issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X and modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant and modifies the number of years of audited financial statements required for acquisitions with significance levels greater than specified percentages. The Company early adopted these amendments during the fourth quarter of fiscal 2021. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2019-12 — Income Taxes (Topic 740). The new guidance improves consistent application of and simplifies the accounting for income taxes by removing certain exceptions to the general principals in Topic 740. The Company adopted ASC Update No. 2019-12 effective April 4, 2021. The adoption did not have a material impact on the Company’s financial position or results of operations. In August 2020, the FASB issued ASC ASU Update No. 2020-06 Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). The amendments simplify the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company early adopted ASC Update No. 2020-06 effective April 4, 2021 using the modified retrospective method, which resulted in a decrease of $61.2 million to additional paid-in capital, a decrease to non-current deferred tax liabilities of $20.0 million, and an increase of $80.3 million to non-current convertible notes, net, on the consolidated balance sheets. Additionally, retained earnings was adjusted to remove amortization expense recognized in prior periods related to the debt discount and the convertible notes no longer have a debt discount that will be amortized, net of taxes. The impact to retained earnings on the consolidated balance sheets as of April 4, 2021 is an increase of $1.0 million. In July 2021, the FASB issued ASC Update No. 2021-05 — Leases (Topic 842). The new guidance requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria of ASC 842 and the lessor would have otherwise recognized a day-one loss. The Company prospectively adopted ASC Update No. 2021-05 effective in the second quarter of fiscal year 2022. The adoption did not have a material impact on the Company’s financial position or results of operations.
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURINGOn an ongoing basis, the Company reviews the global economy, the healthcare industry, and the markets in which it competes to identify opportunities for efficiencies, enhance commercial capabilities, align its resources and offer its customers better solutions. In order to realize these opportunities, the Company undertakes restructuring-type activities to transform its business. In July 2019, the Board of Directors of the Company approved the Operational Excellence Program (the “2020 Program”) and delegated authority to the Company’s management to determine the detail of the initiatives that will comprise the program. During the first quarter of fiscal 2022, the Company revised the program to improve product and service quality, reduce cost principally in its manufacturing and supply chain operations and ensure sustainability while helping to offset impacts from a previously announced customer loss, rising inflationary pressures and effects of the COVID-19 pandemic. The Company now expects to incur aggregate charges between $95 million and $105 million by the end of fiscal 2025. The majority of charges will result in cash outlays, including severance and other employee costs, and will be incurred as the specific actions required to execute these initiatives are identified and approved. During fiscal 2022, 2021 and 2020 the Company incurred $28.7 million, $15.1 million and $11.9 million of restructuring and restructuring related costs under this program, respectively. Total cumulative charges under this program are $55.7 million as of April 2, 2022. The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the fiscal years ended April 2, 2022, April 3, 2021 and March 28, 2020, substantially all of which relates to employee severance and other employee costs:
The following presents the restructuring costs by line item during fiscal 2022, 2021 and 2020 within our accompanying consolidated statements of income and comprehensive income:
As of April 2, 2022, the Company had a restructuring liability of $2.8 million, of which approximately $2.5 million is payable within the next twelve months. In addition to the restructuring expenses included in the table above, the Company also incurred costs of $24.6 million, $14.2 million and $16.3 million in fiscal 2022, 2021 and 2020, respectively, that do not constitute restructuring costs under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as restructuring related costs. These costs consist primarily of expenditures directly related to the restructuring actions and include program management costs associated with the implementation of outsourcing initiatives and recent accounting standards. The following presents the restructuring related costs by line item during fiscal 2022, 2021 and 2020 within our accompanying consolidated statements of income and comprehensive income:
The tables below present restructuring and restructuring related costs by reportable segment:
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ACQUISITIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisitions | ACQUISITIONS Cardiva Medical, Inc. On January 17, 2021, the Company entered into an Agreement and Plan of Merger with Cardiva Medical, Inc. (“Cardiva”), an industry-leading manufacturer of vascular closure systems based in Santa Clara, California. In connection with this acquisition, which closed on March 1, 2021, the Company acquired 100% of the issued and outstanding shares of capital stock of Cardiva for total consideration of $489.8 million, which consisted of upfront payments in the aggregate of $465.5 million ($418.2 million net of cash acquired) and the fair value of contingent consideration of $24.3 million. The contingent consideration, which could total a maximum of $35.0 million is payable over the next two years based on sales growth. The Company financed the acquisition through a combination of cash, borrowings under its revolving credit facility and an additional $150.0 million term loan under its existing credit facility. Cardiva’s portfolio includes two catheter-based vascular access site closure devices. The VASCADE® vascular closure system is designed for “small-bore” femoral arterial and venous closure, generally used in interventional cardiology and peripheral vascular procedures. The VASCADE MVP® vascular closure system is designed for “mid-bore” multi-access femoral venous closure, generally used in electrophysiology procedures, and is the only U.S. Food and Drug Administration (“FDA”) approved closure device for use following cardiac ablation procedures requiring two or more access sites within the same vessel. The addition of the VASCADE portfolio to the Hospital business unit includes products with demonstrated benefits and enhances penetration into the large and growing interventional cardiology and electrophysiology markets. Purchase Price Allocation The Company accounted for the acquisition of Cardiva as a business combination, and in accordance with FASB ASC Topic 805, Business Combinations (Topic 805), recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The following amounts represent the fair value of the identifiable assets acquired and liabilities assumed for Cardiva:
The Company determined the identifiable intangible assets were completed technology, customer relationships, trademarks and in-process research and development (“IPR&D”). The fair values of intangible assets were based on valuation techniques with estimates and assumptions developed by the Company. Completed technology and IPR&D were valued using the excess earnings method. Customer relationships were valued using the distributor method. Trademarks were valued using the relief from royalty method. The cash flows used in the valuation of the intangible assets were based on estimates used to price the transaction. In developing the discount rates applied to the cash flow projections, the discount rates were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital and then adjusted to reflect the relative risk of the asset. The excess of the purchase price over the tangible assets, identifiable intangible assets and assumed liabilities was recorded as goodwill. As a result of the acquisition of Cardiva, the Company recognized goodwill of $253.7 million, which is attributable to the revenue and cash flow projections associated with completed technologies and the development of future technology that does not exist in the current IPR&D pipeline. The goodwill is not deductible for tax purposes and relates entirely to the Hospital reportable segment. Intangible assets acquired consist of the following:
The Company recorded a long-term deferred tax liability, net, of $26.8 million primarily related to acquired intangible assets which cannot be deducted for tax purposes, partially offset by deferred tax assets primarily related to net operating losses acquired. Acquisition-Related Costs The amount of acquisition-related costs incurred associated with the acquisition was $9.6 million for the fiscal year ending April 3, 2021. The Company incurred acquisition costs related to legal and other professional fees in the amount of $6.6 million and an additional $3.0 million of debt financing costs and lender fees which were recognized in selling, general and administrative and as interest expense on the consolidated statements of income, respectively. Unaudited Pro Forma Financial Information Cardiva contributed revenues of $7.7 million to net revenues and losses of $7.6 million to net income for the period post acquisition through April 3, 2021. The unaudited estimated pro forma results presented below include the effects of the acquisition of Cardiva as if it was consummated on March 31, 2019. In fiscal 2021, the Company incurred nonrecurring charges attributed to the acquisition of Cardiva, which are presented in the consolidated statements of income for this period. These charges include acquisition-related costs, retention bonuses and severance payments, adjusted for the related tax effects. These nonrecurring charges are reflected as adjustments to the pro forma earnings presented below for fiscal 2021 and fiscal 2020. Additionally, these pro forma amounts have been calculated, net of tax, after adjusting the results of Cardiva to reflect the additional costs associated with fair value adjustments relating to inventories, leases and intangible assets as if the acquisition had occurred on March 31, 2019 and adjusting interest amounts related to long-term debt assumptions. There was no significant impact to the pro forma amounts after applying the Company’s accounting policies. The supplemental pro forma information presented below is for informational purposes only and should be read in conjunction with our historical financial statements. The pro forma results do not include any anticipated synergies or other expected benefits of the acquisition. Accordingly, the unaudited estimated pro forma financial information below is not necessarily indicative of what the actual results of operations of the combined companies would have been had the acquisition of Cardiva occurred as of March 31, 2019, nor are they indicative of future results of operations. The pro forma assumptions and adjustments are reasonable and appropriate under the circumstances and are factually supported based on information currently available.
HAS Intellectual Property In January 2021, the Company entered into an agreement to acquire certain intellectual property owned by HemoAssay Science and Technology (Suzhou) Co. Ltd., a China-incorporated company, and its affiliates (collectively, “HemoAssay”) underlying their HAS viscoelastic diagnostic devices, related assays and disposables. The Company previously entered into exclusive manufacturing and distribution agreements with HemoAssay pursuant to which it has exclusive rights to commercialize HemoAssay’s HAS devices in China. In connection with the transaction, the Company has agreed to pay up to $15.0 million to HemoAssay in contingent consideration based on certain developmental and manufacturing based milestones. In fiscal 2022, the Company made $2.5 million of milestone payments which were recorded within intangible assets on the consolidated balance sheets. These products augment the Company’s portfolio of hemostasis analyzers within the Hospital business unit. enicor GmbH On April 1, 2020, the Company acquired all of the outstanding equity of enicor GmbH (“enicor”), the manufacturer of ClotPro®, a new generation whole blood coagulation testing system that is currently available in select European and Asia Pacific markets, for total consideration of $20.5 million, which consisted of upfront payments of $16.6 million and the fair value of contingent consideration of $3.9 million. The contingent consideration, which could total a maximum of $4.5 million, consists of payments related to the achievement of certain revenue and regulatory milestones. The acquisition of this viscoelastic diagnostic device augments the Company's portfolio of hemostasis analyzers within the Hospital business unit. Purchase Price Allocation The Company accounted for the acquisition of enicor as a business combination, and in accordance with FASB ASC Topic 805, Business Combinations (Topic 805), recorded the assets acquired and liabilities assumed at their respective fair values as of the acquisition date. The following amounts represent the fair value of the identifiable assets acquired and liabilities assumed for enicor completed during fiscal 2021:
The Company determined the identifiable intangible assets were completed technology, customer relationships and a trademark. The fair value of the intangible assets was estimated using the income approach, and the cash flow projections were discounted using a rate of 20%. The cash flows were based on estimates used to price the transaction, and the discount rates applied were benchmarked with reference to the implied rate of return from the transaction model and the weighted average cost of capital. The benefits of adding a viscoelastic diagnostic device to the Company’s portfolio of hemostasis analyzers within the Hospital business unit contributed to an acquisition price in excess of the fair value of net assets acquired for enicor, which resulted in the establishment of goodwill. In addition, the benefits of lower cost manufacturing and complementary sales channels also contributed to the establishment of goodwill for this acquisition. None of the goodwill is expected to be deductible for income tax purposes. Intangible assets acquired consist of the following:
Acquisition-Related Costs During fiscal 2021, the Company incurred $0.2 million of acquisition-related costs associated with the acquisition. Unaudited Pro Forma Financial Information enicor had an immaterial impact to the Company's net revenues and net income for fiscal 2021. The unaudited estimated pro forma impact of the results of the acquisition of enicor as if it was consummated on April 1, 2019 are immaterial.
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DIVESTITURE |
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Apr. 02, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURE | DIVESTITURES Fajardo, Puerto Rico Manufacturing Operations On June 29, 2020, the Company sold its Fajardo, Puerto Rico, manufacturing operations to GVS, S.p.A (“GVS”), a leading provider of advanced filtration solutions for critical applications for $15.1 million ($7.8 million, net of cash transferred). Under the terms of the agreement, Haemonetics retained all intellectual property rights to its proprietary blood filters currently manufactured at its Fajardo facility and GVS acquired certain assets consisting primarily of property, plant and equipment, inventory and cash and has assumed certain related liabilities. In connection with this transaction, the Company and GVS also entered into a long-term supply and development agreement that, among other things, grants GVS exclusive rights to manufacture and supply the blood filters currently produced at the Fajardo facility for Haemonetics. As a result of this transaction, Haemonetics recognized a pre-tax impairment charge in its Blood Center business unit of $1.0 million in the first quarter of fiscal 2021 and an incremental loss of $0.4 million based on closing adjustments during the third quarter of fiscal 2021, as the carrying value of the assets and liabilities in the asset transfer exceeded the net of the $15.1 million of cash proceeds and an additional contingent liability of $1.5 million. The disposal group consisted of $3.3 million of inventory, $7.2 million of fixed assets, $3.2 million of other liabilities, and $0.4 million of goodwill allocated based on fair value to the business. U.S. Blood Donor Management Software On July 1, 2020, the Company sold certain U.S. blood donor management software solution assets within its Blood Center business unit to the GPI Group (“GPI”) for an upfront cash payment of $14.0 million ($13.6 million, net of working capital adjustments) and up to $14.0 million in additional consideration contingent on the achievement of commercial milestones over the twelve month period immediately following the closing of the transaction. The disposal group consisted of $1.4 million of accounts receivable, $0.9 million of intangible assets, other liabilities of $1.8 million and $1.4 million of goodwill allocated based on fair value to the business. The Company recognized a gain of $13.2 million associated with the transaction in fiscal 2021. In fiscal year 2022, the Company recognized an additional gain of $9.6 million for contingent consideration earned. Inlog Holdings France On September 18, 2020, the Company sold its wholly-owned subsidiary Inlog Holdings France SAS to Abénex Capital (“Abénex”), a private equity firm based in France for $30.5 million ($24.5 million, net of cash transferred). Inlog Holdings France SAS, through its subsidiary In Log SAS, develops and sells blood bank and hospital software solutions used predominantly in France and in several other countries outside of the U.S. The disposal group included $2.2 million of intangible assets, $2.2 million of accounts receivable, $0.3 million of other assets, $3.3 million of liabilities and $3.3 million of goodwill allocated based on the fair value of the business which impacted both the Blood Center and Hospital business units. The Company recognized a gain of $20.0 million associated with the transaction in fiscal 2021. Asset Transfer to CSL On May 21, 2019, the Company transferred to CSL substantially all of its tangible assets held relating to the manufacture of anti-coagulant and saline (together, “Liquids”) at its Union, South Carolina facility (“Union”), which consisted primarily of property, plant and equipment and inventory, and CSL assumed certain related liabilities (the “Asset Transfer”) pursuant to the terms of a settlement, release and asset transfer agreement between the parties dated May 13, 2019. The Asset Transfer excluded all other assets related to Union, including accounts receivable, customer contracts and the Company's U.S. Food and Drug Administration (“FDA”) product approvals for manufacturing Liquids. At closing, Haemonetics received $9.8 million of proceeds for the Asset Transfer and was concurrently released from its obligations to supply Liquids under a 2014 supply agreement with CSL. In connection with the Asset Transfer, CSL and Haemonetics also entered into related transition services, supply and manufacturing services and quality agreements that, among other things, permitted CSL to manufacture Liquids under the Company's FDA product approvals, exclusively for Haemonetics and CSL, until CSL obtains independent product approvals from the FDA to manufacture the Liquids. In connection with the Company's and CSL's entry into the May 13, 2019 agreement for the Asset Transfer, the Company recognized a pre-tax impairment charge of $48.7 million in the first quarter of fiscal 2020, primarily related to the carrying balances of the property, plant and equipment exceeding the consideration received under the terms of the Agreement. The charge did not result in any future cash expenditures. Goodwill associated with the disposal was immaterial.
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INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES Domestic and foreign income (loss) before (benefit) provision for income tax is as follows:
The income tax (benefit) provision from continuing operations contains the following components:
The Company conducts business globally and reports its results of operations in a number of foreign jurisdictions in addition to the United States. The Company's reported tax rate is impacted by the jurisdictional mix of earnings in any given period as the foreign jurisdictions in which it operates have tax rates that differ from the U.S. statutory tax rate. The Company's 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 effected, significant temporary differences comprising the net deferred tax liability are as follows:
The decrease in the worldwide net deferred tax liability is primarily due to the adoption of ASU 2020-06, for which the reduction in the deferred tax liability related to convertible debt was recorded through equity. Other changes in the worldwide net deferred tax liability were the result of current year operating results. The valuation allowance increase of $3.0 million during fiscal 2022 is primarily due to additional valuation allowances recorded on US state net operating loss and tax credit carryforwards. The Company has 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. It has also considered the ability to implement certain strategies that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. The Company has concluded future taxable income can be considered a source of income to realize a benefit for deferred tax assets in certain jurisdictions. In addition, the Company has concluded that it cannot rely on future taxable income in certain risk bearing principal jurisdictions due to uncertainty surrounding future taxable income including the effects of Covid-19, the announcement of CSL intent not to renew its supply agreement and the general uncertainty surrounding the global economy. The Company believes it is 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 2, 2022 includes deferred tax liabilities related to amortizable tax basis in goodwill and other indefinite lived assets, which can only be used as a source of income to benefit other indefinite lived assets. As of April 2, 2022, the Company maintains a valuation allowance against certain U.S. state deferred tax assets that are not more-likely-than-not realizable and maintains a full valuation allowance against the net deferred tax assets of certain foreign subsidiaries. In connection with the March 2021 acquisition of Cardiva, the Company acquired federal and state net operating loss carryforwards of $150.9 million and $93.3 million, respectively. The Company also acquired federal and state tax research credit carryforwards of $0.2 million and $0.4 million, respectively. These net operating loss and tax credit carryforwards 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. The Company conducted a Section 382 study covering the period of inception (July 2002) through March 1, 2021. The study concluded that ownership changes occurred during that period which limit the amount of the Company’s net operating losses and tax credit carryforwards that can be utilized before expiring. The carryforwards disclosed represent the amount of attributes that can be utilized based on the results of the study. As of April 2, 2022, the Company has U.S. federal net operating loss carryforwards of $99.2 million of which $8.2 million will begin to expire in fiscal 2024 and $91.0 million can be carried forward indefinitely. The Company has U.S. state net operating losses of $107.2 million of which $85.7 million will begin to expire in fiscal 2023 and $21.5 million can be carried forward indefinitely. The Company has federal and state tax credits of $1.3 million and $6.2 million, respectively, which will begin to expire in fiscal 2029 and fiscal 2025, respectively. As of April 2, 2022, the Company has foreign net operating losses of approximately $12.1 million that are available to reduce future income of which $6.9 million will begin to expire in fiscal 2034 and $5.2 million can be carried forward indefinitely. As of April 2, 2022, substantially all of the unremitted earnings of the Company have been taxed in the U.S. The Company has provided $1.3 million of U.S. income and foreign withholding taxes on approximately $150.5 million of unremitted earnings that are not indefinitely reinvested. The Company has not provided U.S. deferred income taxes or foreign withholding taxes on unremitted earnings of foreign subsidiaries of approximately $125.2 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 its subsidiaries continue to expand their operations, to service existing debt obligations and to fund future foreign acquisitions. The Company does not believe it is practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations, however a significant portion of the unremitted earnings could be remitted without a future tax cost. The income tax (benefit) provision from continuing operations differs from the tax provision (benefit) computed at the U.S. federal statutory income tax rate due to the following:
The Company recorded an income tax expense of $20.3 million, representing an effective tax rate of 31.8%. The effective tax rate is higher than the U.S. statutory rate of 21.0%, primarily due to the impact of GILTI, non-deductible executive compensation, contingent consideration from the Cardiva acquisition, and state taxes partially offset by the jurisdictional mix of earnings, research credits generated, and reductions to uncertain tax positions. The Company has recorded an immaterial tax expense related to unremitted foreign earnings that are not considered permanently reinvested. Unrecognized Tax Benefits Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of April 2, 2022, the Company had $3.9 million of unrecognized tax benefits, of which $3.1 million would impact the effective tax rate, if recognized. As of April 3, 2021, the Company had $6.1 million of unrecognized tax benefits, of which $5.3 million would impact the effective tax rate, if recognized. At March 28, 2020, the Company had $4.6 million of unrecognized tax benefits, of which $4.0 million would impact the effective tax rate, if recognized. The following table summarizes the activity related to its gross unrecognized tax benefits for the fiscal years ended April 2, 2022, April 3, 2021 and March 28, 2020:
As of April 2, 2022, the Company anticipates that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $0.2 million in the next twelve months, as a result of closure of various statutes of limitations. The Company's historical 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 $0.1 million and $1.4 million of gross interest and penalties were accrued at April 2, 2022 and April 3, 2021, respectively, and are not included in the amounts above. Additionally, $0.1 million, $0.9 million and $0.3 million of accrued interest and penalties was included in income tax provision (benefit) for the years ended April 2, 2022, April 3, 2021and March 28, 2020, respectively. The Company conducts business globally and, as a result, files federal, state and foreign income tax returns in multiple jurisdictions. In the normal course of business, it is subject to examination by taxing authorities throughout the world. With a few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years before fiscal 2018 and foreign income tax examinations for years before fiscal 2017. To the extent that the Company has 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.
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EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | EARNINGS PER SHARE 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 the Company's weighted-average outstanding common shares. Diluted earnings per share is calculated using its weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method and the convertible senior notes as determined under the net share settlement method. From the time of the issuance of the convertible senior notes, the average market price of the Company's common shares has been less than the initial conversion price, and consequently no shares have been included in diluted earnings per share for the conversion value of the convertible senior notes. For fiscal 2022, 2021 and 2020, weighted average shares outstanding, assuming dilution, excludes the impact of 0.9 million, 0.5 million and 0.2 million anti-dilutive shares, respectively. Share Repurchase Plan In May 2019, the Company's Board of Directors authorized the repurchase of up to $500 million of Haemonetics common shares over the two year period ending May 2021. During fiscal 2022, the Company did not make any additional repurchases under this program, which expired in May 2021.
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REVENUE |
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Apr. 02, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE The Company's revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 606, Revenue from Contracts with Customers. Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The Company considers revenue to be earned when all of the following criteria are met: it has a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the consideration it expects to receive for transferring goods or providing services, is determinable and it has transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated standalone selling prices of the good or service in the contract. For goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. As of April 2, 2022, the Company had $16.9 million of transaction price allocated to remaining performance obligations related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately 73% of this amount as revenue within the next twelve months and the remaining balance thereafter. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets and contract liabilities. As of April 2, 2022 and April 3, 2021, the Company had contract assets of $5.5 million and $4.8 million, respectively. The change is primarily due to the delay in billings compared to the revenue recognized. Contract assets are classified as other current assets and other long-term assets on the consolidated balance sheet. As of April 2, 2022 and April 3, 2021, the Company had contract liabilities of $26.8 million and $20.9 million, respectively. During fiscal 2022, the Company recognized $19.0 million of revenue that was included in the above April 3, 2021 contract liability balance. Contract liabilities are classified as other current liabilities and other long-term liabilities on the consolidated balance sheet.
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method.
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PROPERTY, PLANT AND EQUIPMENT |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT Property and equipment consisted of the following:
Depreciation expense was $44.4 million, $43.1 million and $76.6 million in fiscal 2022, 2021 and 2020, respectively. During fiscal 2022, the Company incurred $2.8 million of accelerated depreciation costs relating to disposables manufacturing equipment that is no longer in use as a result of the CSL contract expiration discussed below. The Company also incurred an impairment of property, plant and equipment of $5.2 million in connection with the 2020 Program. Refer to Note 3 - Restructuring for details on the 2020 Program. These impairment charges were included in cost of goods sold on the consolidated statements of income and impacted the Plasma reporting segment as of April 2, 2022. In early April 2021, the Company was informed by CSL of its intent not to renew its supply agreement for the use of PCS2 plasma collection system devices and the purchase of disposable plasmapheresis kits in the U.S. following the expiration of the current term in June 2022. As a result, the Company incurred a one-time impairment in fiscal 2021 of $20.9 million related to disposables manufacturing equipment previously recorded in construction in process which will not be placed into service as a result of the supply agreement expiration. The impairment charge was included in cost of goods sold on the consolidated statements of income and impacted the Plasma reporting segment as of April 3, 2021. During fiscal 2020, the Company recognized a pre-tax impairment charge of $48.7 million relating to the asset transfer between the Company and CSL on May 13, 2019. This impairment is related to the carrying balances of the property, plant and equipment exceeding the consideration received under the terms of the agreement. The charge will not result in any future cash expenditures. For additional information regarding the transaction, refer to Note 5 - Divestitures. The Company also impaired an additional $1.9 million of property, plant and equipment as a result of the Company's corporate headquarter move and a review of underperforming assets, resulting in total impairment charges of $50.6 million during fiscal 2020. Substantially all of these impairments were included within selling, general and administrative costs on the consolidated statements of income and primarily impacted the Plasma reporting segment. During fiscal 2020, the Company sold $7.8 million of real estate and other assets associated with the Braintree corporate headquarters for net cash proceeds of $15.0 million and non-cash consideration of $0.9 million which resulted in a net gain of $8.1 million. Additionally, in connection with the lease for office space in Boston, MA which serves as the new corporate headquarters, the Company received a lease incentive in the form of property, plant and equipment totaling $5.6 million which was recorded during fiscal 2020. During fiscal 2020, the Company incurred $18.1 million of accelerated depreciation expense related to the change in estimate of useful lives of PCS®2 devices included within Haemonetics Equipment, as these will be replaced by NexSys PCS® devices.
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill by operating segment for fiscal 2022 and 2021 are as follows:
The results of the Company's goodwill impairment test performed in the fourth quarter of fiscal 2022, 2021 and 2020 indicated that the estimated fair value of all reporting units exceeded their respective carrying values. There were no reporting units at risk of impairment as of the fiscal 2022, 2021 and 2020 annual test dates. The gross carrying amount of intangible assets and the related accumulated amortization as of April 2, 2022 and April 3, 2021 is as follows:
Refer to Note 4, Acquisitions, for additional information regarding acquisitions. 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 approximately 5 to 15 years. Aggregate amortization expense for amortized intangible assets for fiscal 2022, 2021, and 2020 was $56.6 million, $41.2 million and $34.2 million, respectively. Intangible asset impairments of $0.6 million were included in operating expenses on the consolidated statements of income during fiscal 2022. There were no intangible asset impairments during fiscal 2021 or 2020. Future annual amortization expense on intangible assets is estimated to be as follows:
For costs incurred related to the development of software to be sold, leased, or otherwise marketed, the Company applies 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. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. The Company capitalized $3.4 million and $4.2 million in software development costs for ongoing initiatives during fiscal 2022 and 2021, respectively. At April 2, 2022 and April 3, 2021, the Company had a total of $79.0 million and $75.6 million of software costs capitalized, of which $5.0 million and $4.0 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. Amortization expense for capitalized software was $8.4 million, $7.8 million, and $8.2 million for the fiscal years ended April 2, 2022 , April 3, 2021 and March 28, 2020, respectively.
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LEASES |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | LEASES Lessee Activity The Company has operating leases for office space, land, warehouse and manufacturing space, R&D laboratories, vehicles and certain equipment. Finance leases are not significant. Leases with an initial term of 12 months or less are generally not recorded on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease component. The Company's leases have remaining lease terms of 1 year to approximately 30 years, some of which may include options to extend the leases for up to 10 years and some include options to terminate early. These options have been included in the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not have any leases that include residual value guarantees. The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at the inception of an arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. For operating leases that commenced prior to the Company's adoption of ASC 842, the Company measured the lease liabilities and right-of-use assets using the incremental borrowing rate as of March 31, 2019. Certain adjustments to the right-of-use asset may be required for items such as initial direct costs paid or incentives received. During fiscal 2021, the Company entered into a lease for manufacturing space in Clinton, PA. The Company's current manufacturing operations in Leetsdale, PA will be relocated to the Clinton, PA facility. The lease term associated with the new manufacturing facility is 15 years and 7 months and includes two year renewal options followed by one year renewal option. During fiscal 2021, the Company recorded a right-of-use asset of $11.3 million and corresponding liabilities of $15.4 million upon commencement of the lease term in May 2020. In addition, the Company recorded a $4.1 million lease incentive receivable associated with this lease agreement which was received during fiscal 2021. The following table presents supplemental balance sheet information related to the Company's operating leases:
The following table presents the weighted average remaining lease term and discount rate information related to our operating leases:
The Company's operating lease costs were $11.0 million, $11.7 million and $8.3 million during fiscal 2022, 2021 and 2020, respectively. The following table presents supplemental cash flow information related to our operating leases:
The following table presents the maturities of our operating lease liabilities as of April 2, 2022:
Lessor Activity Assets on the Company's balance sheet classified as Haemonetics equipment primarily consists of medical devices installed at customer sites but owned by Haemonetics. These devices are leased to customers under contractual arrangements that typically include an operating or sales-type lease as well as the purchase and consumption of a certain level of disposable products. Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or options to extend the contract. Where devices are provided under operating lease arrangements, a substantial majority of the entire lease revenue is variable and subject to subsequent non-lease component (disposable products) sales. The allocation of revenue between the lease and non-lease components is based on stand-alone selling prices. Operating lease revenue represents less than 3 percent of the Company's total net sales.
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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:
Convertible Senior Notes In March 2021, the Company issued $500.0 million aggregate principal amount of 0% convertible senior notes due 2026 (the “2026 Notes”). The 2026 Notes are governed by the terms of the Indenture between the Company and U.S. Bank National Association, as trustee (the “Indenture”). The total net proceeds from the sale of the 2026 Notes, after deducting the initial purchasers’ discounts and debt issuance costs, were approximately $486.7 million. The 2026 Notes will mature on March 1, 2026, unless earlier converted, redeemed or repurchased. Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding September 1, 2025 only under the following circumstances: •During any calendar quarter (and only during such calendar quarter) beginning after June 30, 2021, if, the last reported sale price per share of the Company’s common stock exceeds 130% of the applicable conversion price on each applicable trading day for at least 20 trading days (whether or not consecutive) in the period of the 30 consecutive trading day period ending on, and including, the last trading day of the immediately preceding calendar quarter; •During the five business day period after any five consecutive trading day period in which, for each day of that period, the trading price per $1,000 principal amount of the 2026 Notes for such trading day was less than 98% of the product of the last reported sale price of the Company’s common stock and the applicable conversion rate on such trading day; •The Company issues to common stockholders any rights, options, or warrants, entitling them, for a period of not more than 60 days, to purchase shares of common stock at a price per share less than the average closing sale price of 10 consecutive trading days, or the Company’s election to make a distribution to common stockholders exceeding 10% of the previous day’s closing sale price; •Upon the occurrence of specified corporate events, as set forth in the indenture governing the 2026 Notes; or •Prior to the related redemption date if the Company calls the 2026 Notes for redemption On or after September 1, 2025, until the close of business on the scheduled trading day immediately preceding the maturity date, holders may convert all or a portion of their 2026 Notes, in multiples of $1,000 principal amount, at any time, regardless of the foregoing circumstances. The conversion rate for the 2026 Notes is 5.7033 shares of common stock per $1,000 principal amount of notes (which is equal to an initial conversion price of approximately $175.34 per share of the Company’s common stock), subject to adjustment as set forth in the Indenture. Upon conversion, the Company will pay cash up to the aggregate principal amount of the notes to be converted and pay or deliver, as the case may be, cash, common stock or a combination of cash and common stock, at the Company’s election, in respect of the remainder, if any, of the Company’s conversion obligation in excess of the aggregate principal amount of the notes being converted. If a make-whole adjustment event, as described in the Indenture, occurs and a holder elects to convert its 2026 Notes in connection with such make-whole adjustment event, such holder may be entitled to an increase in the conversion rate as described in the Indenture. During fiscal 2022, the conditions allowing holders of the 2026 Notes to convert have not been met. The 2026 Notes were therefore not convertible as of April 2, 2022 and were classified as long-term debt on the Company’s consolidated balance sheets. The 2026 Notes will be redeemable, in whole or in part, at the Company’s option at any time, and from time to time, on or after March 5, 2024 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sale price per share of the Company’s common stock exceeds 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately before the date the Company sends the related redemption notice at a redemption price equal to 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding the redemption date. Upon the occurrence of certain fundamental changes involving the Company, holders of the 2026 Notes may require the Company to repurchase for cash all or part of their 2026 Notes at a repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest. On April 4, 2021, the Company adopted ASC Update No. 2020-06 using the modified retrospective method, which resulted in a decrease of $61.2 million to additional paid-in capital, a decrease to non-current deferred tax liabilities of $20.0 million, and an increase of $80.3 million to non-current convertible notes, net, on the consolidated balance sheets. Additionally, retained earnings was adjusted to remove amortization expense recognized in prior periods related to the debt discount and the convertible notes no longer have a debt discount that will be amortized, net of taxes. The impact to retained earnings on the consolidated balance sheets as of April 4, 2021 is an increase of $1.0 million. As of April 2, 2022, the $500.0 million principal balance was netted down by the $10.5 million of remaining debt issuance costs, resulting in a net convertible note payable of $489.5 million. Interest expense related to the 2026 Notes was $2.7 million, which is entirely attributable to the amortization of the debt issuance costs. The debt issuance costs are amortized at an effective interest rate of 0.5%. Capped Calls In connection with the issuance of the 2026 Notes, the Company entered into capped call transactions with certain counterparties (“Capped Calls”). The Capped Calls each have an initial strike price of approximately $175.34 per share, subject to certain adjustments, which corresponds to the initial conversion price of the 2026 Notes. The Capped Calls have initial cap prices of $250.48 per share, subject to certain adjustments. The Capped Calls are expected to partially offset the potential dilution to the Company’s common stock upon any conversion of the 2026 Notes, with such offset subject to a cap based on the cap price. The Capped Calls cover, subject to anti-dilution adjustments, approximately 2.85 million shares of the Company’s common stock. For accounting purposes, the Capped Calls are separate transactions, and not part of the 2026 Notes. As these transactions meet certain accounting criteria, the Capped Calls are recorded in stockholders' equity and are not accounted for as derivatives. The cost of $47.4 million incurred to purchase the Capped Calls was recorded as a reduction to additional paid-in capital and will not be remeasured. Credit Facilities On June 15, 2018, the Company entered into a credit agreement with certain lenders which provided for a $350.0 million term loan (the “Term Loan”) and a $350.0 million revolving loan (the “Revolving Credit Facility” and together with the Term Loan, the “Credit Facilities”). The Credit Facilities expire on June 15, 2023. Interest on the Credit Facilities is established using LIBOR plus 1.13% - 1.75%, depending on the Company's leverage ratio. At April 2, 2022, $284.4 million was outstanding under the Term Loan with an effective interest rate of 2.3%. At April 2, 2022, no borrowings were outstanding on the Revolving Credit Facility. The Company also had $23.0 million of uncommitted operating lines of credit to fund its global operations under which there were no outstanding borrowings as of April 2, 2022. Under the Credit Facilities, the Company is required to maintain a consolidated leverage ratio not to exceed 3.5:1.0 and a consolidated interest coverage ratio not to be less than 4.0:1.0 during periods when the Credit Facilities are outstanding. In connection with the Cardiva acquisition, the Company and its lenders also agreed to increase the maximum consolidated leverage ratio the Company was required to maintain for the four consecutive quarters immediately following the closing of the Cardiva acquisition to 4.25:1.0 through the third quarter of fiscal 2022, after which the maximum consolidated leverage ratio the Company is required to maintain reverted to 3.5:1.0. In addition, the Company is 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 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 that 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 its business, capital expenditures, share repurchase and other restricted payments. These covenants are subject to 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 the Company 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 2, 2022, the Company was in compliance with the covenants. Commitment Fee Pursuant to the Credit Facilities, the Company is required to pay, 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 the Company's consolidated leverage ratio. The commitment fee ranges from 0.150% to 0.275%. The current commitment fee on the undrawn portion of the Revolving Credit Facility is 0.275%. 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 2, 2022, the $284.4 million term loan balance was netted down by the $0.3 million of remaining debt discount, resulting in a net note payable of $284.1 million. Interest expense was $5.8 million, $9.4 million and $13.5 million for fiscal 2022, 2021 and 2020, respectively. Accrued interest associated with the outstanding debt is included as a component of other current liabilities in the accompanying consolidated balance sheets. As of both April 2, 2022 and April 3, 2021, the Company had an insignificant amount of accrued interest associated with the outstanding debt. The aggregate amount of debt maturing during the next five fiscal years are as follows:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company manufactures, markets and sells its products globally. For the fiscal year ended April 2, 2022, 35.6% of the Company's sales were generated outside the U.S. in local currencies. The Company also incurs certain manufacturing, marketing and selling costs in international markets in local currency. Accordingly, earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. Dollar, the Company's reporting currency. The Company has a program in place that is designed to mitigate the 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 its financial results from changes in foreign exchange rates. The Company utilizes 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, Chinese Yuan, and the Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates. However, because the Company generally enters 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 the Company's designated foreign currency hedge contracts as of April 2, 2022 and April 3, 2021 were cash flow hedges under ASC 815, Derivatives and Hedging (“ASC 815”). The Company records the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs. Once the related third-party transaction occurs, the Company reclassifies 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, the Company will reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. The Company had designated foreign currency hedge contracts outstanding in the contract amount of $67.3 million as of April 2, 2022 and $56.0 million as of April 3, 2021. At April 2, 2022, a gain of $2.8 million, net of tax, will be reclassified to earnings within the next twelve months. Substantially all currency cash flow hedges outstanding as of April 2, 2022 mature within twelve months. Non-Designated Foreign Currency Contracts The Company manages its exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. It uses foreign currency forward contracts as a part of its 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 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. The Company had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $39.5 million as of April 2, 2022 and $95.6 million as of April 3, 2021. Interest Rate Swaps On June 15, 2018, the Company entered into Credit Facilities which provided for a $350 million Term Loan and a $350 million Revolving Credit Facility. Under the terms of the Credit Facilities, interest is established using LIBOR plus 1.13% - 1.75%. As a result, the Company's earnings and cash flows are exposed to interest rate risk from changes to LIBOR. Part of the Company's interest rate risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable interest rates. The Company's objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations. In August 2018, the Company entered into two interest rate swap agreements (the “Swaps”) to pay an average fixed rate of 2.80% on a total notional value of $241.9 million of debt. As a result of the interest rate swaps, 70% of the Term Loan exposed to interest rate risk from changes in LIBOR are fixed at a rate of 4.05%. The Swaps mature on June 15, 2023. As of April 2, 2022, the notional value was $199.1 million. The Company designated the Swaps as cash flow hedges of variable interest rate risk associated with $345.6 million of indebtedness. For fiscal 2022, the Company recorded a gain of $7.5 million, net of tax, in accumulated other comprehensive loss to recognize the effective portion of the fair value of the Swaps that qualify as cash flow hedges. Trade Receivables In the ordinary course of business, the Company grants trade credit to its customers on normal credit terms. In an effort to reduce its credit risk, the Company (i) establishes credit limits for all customers, (ii) performs ongoing credit evaluations of customers’ financial condition, (iii) monitors the payment history and aging of customers’ receivables, and (iv) monitors open orders against an individual customer’s outstanding receivable balance. The Company's allowance for credit losses is maintained for trade accounts receivable based on the expected collectability, the historical collection experience, the length of time an account is outstanding, the financial position of the customer and information provided by credit rating services. Effective March 29, 2020, the Company adopted Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326) which requires consideration of events or circumstances indicating historic collection rates may not be indicative of future collectability. For example, potential adverse changes to customer liquidity from new macroeconomic events such as the COVID-19 pandemic must be taken into consideration. To date, the Company has not experienced significant customer payment defaults, or identified other significant collectability concerns as a result of the pandemic. The following is a rollforward of the allowance for credit losses:
Fair Value of Derivative Instruments The following table presents the effect of the Company's derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC 815 in its consolidated statements of income and comprehensive income for the fiscal year ended April 2, 2022.
The Company did not have fair value hedges or net investment hedges outstanding as of April 2, 2022 or April 3, 2021. As of April 2, 2022, no material deferred taxes were recognized for designated foreign currency hedges. ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. The Company determines the fair value of its derivative instruments using the framework prescribed by ASC 820, Fair Value Measurements and Disclosures, by considering the estimated amount it 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 its creditworthiness for liabilities. In certain instances, the Company may utilize financial models to measure fair value. Generally, the Company uses 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 2, 2022, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments. The following tables present the fair value of the Company's derivative instruments as they appear in its consolidated balance sheets as of April 2, 2022 and April 3, 2021:
Other Fair Value Measurements Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes the following three-level hierarchy used for measuring fair value: •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. The Company's 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 as of April 2, 2022 and April 3, 2021.
Foreign currency hedge contracts - The fair value of foreign currency hedge contracts was measured using significant other observable inputs and valued by reference to over-the-counter quoted market prices for similar instruments. The Company does not believe that the fair value of these derivative instruments differs significantly from the amount that could be realized upon settlement or maturity, or that the changes in fair value will have a significant effect on its results of operations, financial condition or cash flows. Interest rate swaps - The fair values of interest rate swaps are measured using the present value of expected future cash flows using market-based observable inputs, including credit risk and interest rate yield curves. The Company does not believe that the fair values of these derivative instruments differ significantly from the amounts that could be realized upon settlement or maturity, or that the changes in fair value will have a significant effect on its results of operations, financial condition or cash flows. Contingent consideration - The fair value of contingent consideration liabilities is based on significant unobservable inputs, including management estimates and assumptions, and is measured based on the probability-weighted present value of the payments expected to be made. Accordingly, the fair value of contingent consideration has been classified as level 3 within the fair value hierarchy. The recurring level 3 fair value measurements of contingent consideration liabilities include the following significant unobservable inputs:
During the fiscal year ended April 2, 2022, the Company increased the fair value of the contingent consideration related to the acquisition of Cardiva by $10.7 million, which was recorded as selling, general and administrative expenses its consolidated statement of income. The fair value of contingent consideration associated with acquisitions was $33.7 million at April 2, 2022. As of April 2, 2022, $31.2 million was included in other liabilities and $2.5 million was included in other long-term liabilities on the consolidated balance sheet. A reconciliation of the change in the fair value of contingent consideration is included in the following table:
Other Fair Value Disclosures The fair value of the 2026 Notes as of April 2, 2022 was $420.6 million, which was determined based on the quoted price for the 2026 Notes in an inactive market on the last trading day of the reporting period and is considered as level 2 in the fair value hierarchy. In estimating the risk adjusted yield, the Company utilized both an income and market approach. For the income approach, the Company used a convertible bond pricing model, which included several assumptions including volatility and the risk-free rate. For the market approach, the Company performed an evaluation of issuances of debt securities issued by other comparable companies and broader market indices. The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value.
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RETIREMENT PLANS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS Defined Contribution Plans The Company has a Savings Plus Plan (the “401k Plan”) that is a 401(k) plan that allows its U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the 401k Plan based upon pre-established rates. The Company's matching contributions amounted to approximately $6.3 million, $4.9 million and $4.7 million in fiscal 2022, 2021 and 2020, respectively. Upon the Company's Board of Directors' approval, additional discretionary contributions can also be made. No discretionary contributions were made for the 401k Plan in fiscal 2022, 2021, or 2020. Some of the Company's subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $0.6 million, $0.7 million and $0.6 million in fiscal 2022, 2021 and 2020, respectively. 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. 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 that are subject to change. Some of the Company's 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 that do not qualify as plan assets under ASC Topic 715. Accordingly, that plan has no assets included in the information presented above. The total asset value associated with the reinsurance contracts was $6.8 million and $7.0 million at April 2, 2022 and April 3, 2021, respectively. The total liability for this plan, which is included in the table above, was $9.6 million and $11.1 million as of April 2, 2022 and April 3, 2021, respectively. The accumulated benefit obligation for all plans was $28.4 million and $30.6 million for fiscal 2022 and 2021, respectively. There were no plans where the plan assets were greater than the accumulated benefit obligation as of April 2, 2022 and April 3, 2021. The components of the change recorded in the Company's accumulated other comprehensive loss related to its defined benefit plans, net of tax, are as follows (in thousands):
The Company expects to amortize $0.3 million from accumulated other comprehensive loss to net periodic benefit cost during fiscal 2023. 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. The Company has no other material obligation for post-retirement or post-employment benefits. The Company's 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 the Company's defined benefit pension plan at fair value as of April 2, 2022. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 14, Financial Instruments 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 2, 2022. 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:
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COMMITMENTS AND CONTINGENCIES |
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Apr. 02, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. The Company believes that except for those matters described below, there are no other proceedings or claims pending against it the ultimate resolution of which could have a material adverse effect on its financial condition or results of operations. At each reporting period, management evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies, for all matters. Legal costs are expensed as incurred. During the third quarter of fiscal 2021, the Company received a subpoena from the U.S. Attorney’s Office for the District of Massachusetts. The subpoena requests certain documents regarding the Company’s apheresis and autotransfusion devices and disposables, including documents relating to product complaints and adverse event reporting, regulatory clearances and product design changes, among other matters. The Company is fully cooperating with this inquiry. In the fourth quarter of fiscal 2021, a putative class action complaint was filed against the Company in the Circuit Court of Cook County, Illinois by Mary Crumpton, on behalf of herself and similarly situated individuals. See Mary Crumpton v. Haemonetics Corporation, Case No. 1:21-cv-1402. In her complaint, the plaintiff asserts that between June 2017 and August 2018 she donated plasma at a center operated by one of the Company’s customers, that the center required her to scan her finger print in a scanner that stored her finger print to identify her prior to plasma donation, and that the Company’s eQue donor management software sent her biometric information to a Company-owned server to be collected and stored in a manner that violated her rights under the Illinois Biometric Information Privacy Act (“BIPA”). The plaintiff seeks statutory damages, attorneys’ fees, and injunctive and equitable relief. In March 2021, the Company moved to dismiss the complaint for lack of personal jurisdiction and concurrently filed a motion to dismiss for failure to state a claim and a motion to stay. In late March 2022, the court denied the Company’s motion to dismiss for lack of personal jurisdiction but did not address the merits of the Company’s other positions. The Company believes the allegations in this lawsuit are without merit and will defend vigorously against them. The case is still in an early stage and the Company cannot reasonably estimate a range of potential loss and expense at this time.
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CAPITAL STOCK | CAPITAL STOCK Stock Plans On July 25, 2019 (the “Effective Date”), the Haemonetics Corporation 2019 Long-Term Incentive Compensation Plan (the “2019 Equity Plan”) was approved and became effective. The 2019 Equity Plan permits the award of incentive stock options, non-qualified stock options, stock appreciation rights (“SARs”), restricted stock, restricted stock units (including performance-based restricted stock units) and other awards to the Company's key employees, non-employee directors and certain consultants and advisors of the Company and its subsidiaries. The 2019 Equity Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”), which consists of three independent members of the Company's Board of Directors, and is the successor to the Haemonetics Corporation 2005 Long-Term Incentive Compensation Plan, as amended (the “2005 Equity Plan”). Upon the Effective Date, no further awards were granted under the 2005 Equity Plan; however, each outstanding award under the 2005 Equity Plan will remain outstanding under that plan and continue to be governed under its terms and any applicable award agreement. The maximum number of shares available for award under 2019 Equity Plan is 5,759,433, which consists of 2,700,000 shares of common stock authorized for issuance under the 2019 Equity Plan plus 3,059,433 shares of common stock reserved for issuance under the 2005 Equity Plan that remained available for grant under the 2005 Plan as of the Effective Date. Under the 2019 Equity Plan, any shares that are subject to the award of stock options or SARs will be counted against the authorized share reserve as one share for every one share issued and any shares that are subject to awards other than stock options, SARs or cash awards will be counted against the authorized share reserve as 2.76 shares for every one share granted. Shares of common stock subject to outstanding grants under the 2005 Equity Plan as of the Effective Date that terminate, expire, or are otherwise canceled without having been exercised will be added to the share reserve at the applicable 2019 Equity Plan ratios. The total shares available for future grant as of April 2, 2022 were 3,928,160. Share-Based Compensation Compensation cost related to share-based transactions is recognized in the consolidated financial statements based on fair value. The total amount of share-based compensation expense, which is recorded on a straight line basis, is as follows:
Stock Options Options are granted to purchase common stock 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 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 2, 2022 is as follows:
The total intrinsic value of options exercised was $1.7 million, $8.2 million and $18.1 million during fiscal 2022, 2021 and 2020, respectively. As of April 2, 2022, there was $8.5 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 2.5 years. The fair value was estimated using the Black-Scholes option-pricing model based on the closing stock price at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of the Company's 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 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 2, 2022 is as follows:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested are as follows:
As of April 2, 2022, there was $17.6 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 2.2 years. Performance Share Units The grant date fair value of Performance Share 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 generally based on relative total shareholder return which equals total shareholder return for the Company as compared with total shareholder return of the PSU comparison group, measured over a year performance period. The PSUs comparison group consists of the Standard and Poor's (“S&P”) MidCap 400 Index. 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. 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 its comparison group. As a result, the Company may issue up to 565,892 shares related to outstanding performance based awards. A summary of PSU activity for the fiscal year ended April 2, 2022 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 fiscal year were as follows:
The weighted-average grant-date fair value of PSUs granted and total fair value of PSUs vested are as follows:
As of April 2, 2022, there was $14.0 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 1.6 years. 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 its full-time employees are eligible to participate in the Purchase Plan. The Purchase Plan provides for two “purchase periods” within each of its 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 -month option inherent in the Purchase Plan was approximately $20.77, $30.77 and $27.11 during fiscal 2022, 2021 and 2020, respectively.
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT AND ENTERPRISE-WIDE INFORMATION | 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. The Company’s reporting structure aligns with its operating structure of three global business units and the information that is regularly reviewed by the Company’s chief operating decision maker. The Company’s reportable and operating 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 integration and transaction costs, deal amortization, restructuring and restructuring related costs, impairments, accelerated device depreciation and related costs, costs related to compliance with the European Union Medical Device Regulation (“MDR”) and In Vitro Diagnostic Regulation (“IVDR”), unusual or infrequent and material litigation-related charges and gains and losses on dispositions and sale of assets. 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:
Selected information by operating regions is presented below:
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:
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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 2, 2022 and April 3, 2021:
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Standards Update and Change in Accounting Principle [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fiscal Year | Fiscal YearHaemonetics' fiscal year ends on the Saturday closest to the last day of March. Fiscal 2021 included 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks. Fiscal 2022 and 2020 included 52 weeks with each quarter having 13 weeks. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include all accounts including those of its subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires the Company 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 its estimates and assumptions. The Company considers estimates to be critical if they 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, inventory provisions, intangible asset and goodwill valuation, legal and other judgmental accruals and income taxes.
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Contingencies | Contingencies The Company 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, the Company records 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, the best estimate is changed to a lower amount.
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Revenue Recognition | Revenue Recognition The Company's revenue recognition policy is to recognize revenues from product sales, software and services in accordance with the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2014-19, Revenue from Contracts with Customers (Topic 606). Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The Company considers revenue to be earned when all of the following criteria are met: it has a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the consideration the Company expects to receive for transferring goods or providing services, is determinable and it has transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated standalone selling prices of the good or service in the contract. For goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. Product Revenues The majority of the Company’s performance obligations related to product sales are satisfied at a point in time. Product revenue consists of the sale of its disposable blood component collection and processing sets and the related equipment. The Company’s performance obligation related to product sales is satisfied upon shipment or delivery to the customer based on the specified terms set forth in the customer contract. Shipping and handling activities performed after a customer obtains control of the good are treated as fulfillment activities and are not considered to be a separate performance obligation. Revenue is recognized over time for maintenance plans provided to customers that provide services beyond the Company’s standard warranty period. Payment terms between customers related to product sales vary by the type of customer, country of sale, and the products or services offered and could result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). For product sales to distributors, the Company recognizes revenue for both equipment and disposables upon shipment to distributors, which is when its performance obligations are complete. The Company's standard contracts with its 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 any installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. The Company also places equipment at customer sites. While the Company retains ownership of this equipment, the customer has the right to use it for a period of time provided they meet certain agreed to conditions. The Company recovers the cost of providing the equipment from the sale of its disposables. Software and Other Revenues To a lesser extent, the Company enters into other types of contracts including certain software licensing arrangements to provide software solutions to support its plasma, blood collection and hospital customers. A portion of its software sales are perpetual licenses typically accompanied by significant implementation services related to software customization as well as other professional and technical services. The Company generally recognizes revenue from the sale of perpetual licenses and related customization services over time (the Company is creating or enhancing an asset that the customer controls) using an input method which requires it to make estimates of the extent of progress toward completion of the contract. When the Company provides other services, including in some instances hosting, technical support and maintenance, it recognizes these fees and charges over time (the customer simultaneously receives and consumes benefits), as performance obligations for these services are satisfied during the contract period. Certain of the Company's software licensing arrangements are term-based licenses that include a per-collection or a usage-based fee related to the use of the license and the related technical support and hosting services. For these usage-based arrangements, the Company applies the revenue recognition exception resulting in revenue recognition occurring upon the later of actual usage or satisfaction of the related performance obligations. The payment terms for software licensing arrangements vary by customer pursuant to the terms set forth in the customer contract and result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). Significant Judgments Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration related to rebates, product returns and volume discounts. These reserves, which are based on estimates of the amounts earned or to be claimed on the related sales, are recorded as a reduction of revenue and a current liability. The Company's estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the net sales price is limited to the amount that is probable not to result in a significant reversal in the amount of the cumulative revenue recognized in a future period. Revenue recognized in the current period related to performance obligations satisfied in prior periods was not material. If the Company is unable to estimate the expected rebates reasonably, it records a liability for the maximum potential rebate or discount that could be earned. In circumstances where the Company provides upfront rebate payments to customers, it capitalizes the rebate payments and amortizes the resulting asset as a reduction of revenue using a systematic method over the life of the contract. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets and contract liabilities. Practical Expedients The Company elected not to disclose the value of transaction price allocated to unsatisfied performance obligations for contracts with an original expected length of one year or less. When applicable, the Company has also elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it is expected, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service, will be one year or less.
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Translation of Foreign Currencies | 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 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 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 2, 2022, cash and cash equivalents consisted primarily of investments in United States Government Agency and institutional money market funds.
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Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company establishes a specific allowance for customers when it is probable that they will not be able to meet their financial obligations. Customer accounts are reviewed individually on a regular basis and reserves are established as deemed appropriate. The Company also maintains a general reserve using a percentage that is established based upon the age of its receivables and its collection history. The Company establishes allowances for balances not yet due and past due accounts based on past experience.
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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. The Company has based its provisions for excess, expired and obsolete inventory primarily on its estimates of forecasted net sales. Significant changes in the timing or level of demand for the Company's products result 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 the Company's estimates related to excess, expired and obsolete inventory.
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Property, Plant and Equipment | Property, Plant and Equipment Property, plant and equipment is recorded at historical cost. The Company provides 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:
The Company evaluates 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. The Company's installed base of devices includes devices owned by the Company and devices sold to the customer. The asset on its 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 the Company has established, which among other things, generally include one or more of the following: •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 Consistent with the impairment tests noted below for other intangible assets subject to amortization, the Company reviews Haemonetics equipment and the related useful lives of such equipment 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, the Company estimates the future amount and timing of demand for disposables used with these devices, from which it generates revenues. The Company also considers product life cycle in its 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 the Company's devices and its 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 income.
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Goodwill and Intangible Assets | 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, 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. The Company performs its annual impairment test on the first day of the fiscal fourth quarter for each of its reporting units. Under ASC Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment 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. The Company determines its reporting units 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. The Company aggregates components within an operating segment that have similar economic characteristics. The Company's reportable and operating segments are as follows: Plasma, Blood Center, and Hospital. When allocating goodwill from business combinations to its reporting units, the Company assigns goodwill to the reporting units that it expects to benefit from the respective business combination at the time of acquisition. In addition, for purposes of performing its 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. The Company allocates 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. The Company uses the income approach, specifically the discounted cash flow method, to derive the fair value of each of its reporting units in preparing its 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. The Company selected this method as being the most meaningful in preparing its 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 its accounting for goodwill, the Company makes 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 the Company's discounted cash flow analysis is based on its 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 the Company's discounted cash flow analysis and reflects the Company's best estimates for stable, perpetual growth of its reporting units. The Company uses estimates of market-participant risk adjusted weighted average cost of capital as a basis for determining the discount rates to apply to its reporting units’ future expected cash flows. The Company 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 its reporting units to its market capitalization at the time of the test. During the fourth quarter of fiscal 2022, 2021 and 2020, the Company performed its annual goodwill impairment test. The results of the goodwill impairment test performed indicated that the estimated fair value of all of its reporting units exceeded their respective carrying values. There were no reporting units at risk of impairment as of the fiscal 2022, 2021 and 2020 annual test date. The Company reviews 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 its products or the size of the market for its products. When an impairment indicator exists, the Company tests the intangible asset for recoverability. For purposes of the recoverability test, the Company groups its 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), the Company will write the carrying value down to the fair value in the period identified. The Company generally calculates the fair value of its intangible assets as the present value of estimated future cash flows it expects to generate from the asset using a risk-adjusted discount rate. In determining its estimated future cash flows associated with its intangible assets, the Company uses estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). If the Company determines the estimate of an intangible asset's remaining useful life should be reduced based on its expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. During fiscal 2022 the Company recognized impairment charges of intangible assets of $0.6 million. In 2021 and 2020 the Company did not incur any intangible asset impairments. The Company has in-process research and development (“IPR&D”) intangible assets with indefinite lives. IPR&D assets are not amortized. The Company reviews these assets 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 the asset is less than its carrying value. The Company performs its annual impairment test on the first day of the fiscal fourth quarter for its IPR&D assets. The Company makes assumptions about future cash flows, terminal value growth, costs for completion and appropriate discount rates. The Company elected a qualitative assessment in fiscal year 2022.
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Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed | Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, 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 5 to 10 years. Technological feasibility is established when it has a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. The Company capitalizes costs associated with both software that it sells as a separate product and software that is embedded in a device. The Company reviews the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. There were no impairment charges recorded during fiscal 2022, 2021 and 2020. 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 | Research and Development ExpensesAll research and development costs are expensed as incurred. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Advertising Costs | Advertising CostsAll advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of income. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shipping and Handling Costs | Shipping and Handling CostsShipping and handling costs are included in selling, general and administrative expenses. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes | Income Taxes The income tax provision is calculated for all jurisdictions in which the Company operates. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items that 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 the Company's 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. Refer to Note 6, Income Taxes, for further information and discussion of the Company's income tax provision and balances. The Company files income tax returns in all jurisdictions in which it operates. The Company records a liability for uncertain tax positions taken or expected to be taken in income tax returns. The Company's financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. The Company records a liability for the portion of unrecognized tax benefits claimed that it has 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 the Company's 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. The Company evaluates at the end of each reporting period whether some or all of the undistributed earnings of its foreign subsidiaries are permanently reinvested. The Company recognizes 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. The Company's position is based upon several factors including management’s evaluation of the Haemonetics 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 | Derivative Instruments The Company accounts for its 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, the Company records 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 the Company has 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. The Company does 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 the Company's consolidated statements of 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 the Company records 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. The Company recorded foreign currency losses of $1.5 million, $0.7 million and $2.9 million in fiscal 2022, 2021 and 2020, respectively. On a quarterly basis, the Company assesses whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. The Company manages the credit risk of its counterparties by dealing only with institutions that it considers financially sound and considers the risk of non-performance to be remote. Additionally, the Company's interest rate risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable interest rates. The Company's objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations. The Company's derivative instruments do not subject its 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. The Company does not enter into derivative transactions for speculative purposes and it does not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC 815.
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Share-Based Compensation | Share-Based Compensation The Company expenses the fair value of share-based awards granted to employees, board members and others, net of estimated forfeitures. To calculate the grant-date fair value of its stock options the Company uses the Black-Scholes option-pricing model and for performance share units it uses Monte Carlo simulation models.
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Costs Associated with Exit Activities | Costs Associated with Exit Activities The Company records employee termination costs in accordance with ASC Topic 712, Compensation - Nonretirement and Postemployment Benefits, if it pays the benefits as part of an on-going benefit arrangement, which includes benefits provided as part of its established severance policies or that it provides in accordance with international statutory requirements. The Company accrues employee termination costs associated with an on-going benefit arrangement if the obligation is attributable to prior services rendered, the rights to the benefits have vested, the payment is probable and the liability can be reasonably estimated. The Company accounts for employee termination benefits that represent a one-time benefit in accordance with ASC Topic 420, Exit or Disposal Cost Obligations. It records such costs into expense over the employee’s future service period, if any. Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to be abandoned or subleased, consultant fees and impairments of long-lived assets. The costs are expensed in accordance with ASC Topic 420 and ASC Topic 360, Property, Plant and Equipment and are included primarily in selling, general and administrative costs in its consolidated statement of income. Additionally, costs directly related to the Company's active restructuring initiatives, including program management costs, accelerated depreciation and costs to transfer product lines among facilities are included within costs of goods sold and selling, general and administrative costs in its consolidated statement of income. Refer to Note 3, Restructuring, for further information and discussion of its restructuring plans.
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Valuation of Acquisitions | Valuation of AcquisitionsThe Company allocates the amounts it pays 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. The Company bases the estimated fair value of identifiable intangible assets on detailed valuations that use significant assumptions including forecasted cash flows, revenues attributable to existing technology and existing customer attrition. When estimating the significant assumptions to be used in the valuation, the Company includes a consideration of current industry information, market and economic trends, historical results of the acquired business, and other relevant factors. These significant assumptions are forward-looking and could be affected by future economic and market conditions. The Company allocates 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 | 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 2022, 2021 and 2020, the Company's ten largest customers accounted for approximately 45%, 49% and 54% of net revenues, respectively. In fiscal 2022, one Plasma customer, CSL Limited (together with its affiliates, “CSL”) was greater than 10% of both total net revenue and accounts receivable and in total accounted for approximately 12% of net revenues and 14% of accounts receivable. In addition to CSL, two customers also accounted for greater than 10% of the Plasma segment's net revenues and one customer also accounted for greater than 10% of the Blood Center segment's net revenues, but did not exceed 10% of total net revenues, in fiscal 2022. Certain other markets and industries can expose the Company to concentrations of credit risk. For example, in the Plasma business unit, sales are concentrated with several large customers. As a result, accounts receivable extended to any one of these biopharmaceutical customers can be significant at any point in time. Also, a portion of the Company's trade accounts receivable outside the U.S. 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. The Company has not incurred significant losses on government receivables. The Company continually evaluates 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 | Recent Accounting Pronouncements Standards Implemented In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326). ASC Update No. 2016-13 is intended to replace the current incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information, including forecasted information, to develop credit loss estimates. The Company adopted ASC Update No. 2016-13 during the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASC Update No. 2018-15, Intangibles, Goodwill and Other - Internal-Use Software (Subtopic 350-40). The new guidance aligns the accounting implementation costs incurred in a cloud computing arrangement that is a service contract with the accounting for internal-use software licenses. The Company adopted ASC Update No. 2018-15 during the first quarter of fiscal 2021. The adoption did not have a material impact on the Company's consolidated financial statements. In May 2020, the Securities and Exchange Commission (“SEC”) issued a final rule that amends the financial statement requirements for acquisitions and dispositions of businesses. The amendments primarily relate to disclosures required by Rule 3-05 and Article 11 of Regulation S-X and modifies the tests provided in Rule 1-02(w) of Regulation S-X used to determine whether a subsidiary or an acquired or disposed business is significant and modifies the number of years of audited financial statements required for acquisitions with significance levels greater than specified percentages. The Company early adopted these amendments during the fourth quarter of fiscal 2021. In December 2019, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2019-12 — Income Taxes (Topic 740). The new guidance improves consistent application of and simplifies the accounting for income taxes by removing certain exceptions to the general principals in Topic 740. The Company adopted ASC Update No. 2019-12 effective April 4, 2021. The adoption did not have a material impact on the Company’s financial position or results of operations. In August 2020, the FASB issued ASC ASU Update No. 2020-06 Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40). The amendments simplify the complexity associated with applying U.S. GAAP for certain financial instruments with characteristics of liabilities and equity. Update No. 2020-06 is effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. The Company early adopted ASC Update No. 2020-06 effective April 4, 2021 using the modified retrospective method, which resulted in a decrease of $61.2 million to additional paid-in capital, a decrease to non-current deferred tax liabilities of $20.0 million, and an increase of $80.3 million to non-current convertible notes, net, on the consolidated balance sheets. Additionally, retained earnings was adjusted to remove amortization expense recognized in prior periods related to the debt discount and the convertible notes no longer have a debt discount that will be amortized, net of taxes. The impact to retained earnings on the consolidated balance sheets as of April 4, 2021 is an increase of $1.0 million. In July 2021, the FASB issued ASC Update No. 2021-05 — Leases (Topic 842). The new guidance requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if the lease would have been classified as a sales-type lease or a direct financing lease in accordance with the classification criteria of ASC 842 and the lessor would have otherwise recognized a day-one loss. The Company prospectively adopted ASC Update No. 2021-05 effective in the second quarter of fiscal year 2022. The adoption did not have a material impact on the Company’s financial position or results of operations.
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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Accounting Standards Update and Change in Accounting Principle [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment Estimated Useful Lives | Property, plant and equipment is recorded at historical cost. The Company provides 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.
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RESTRUCTURING (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Transformation Costs by Type of Cost | The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the fiscal years ended April 2, 2022, April 3, 2021 and March 28, 2020, substantially all of which relates to employee severance and other employee costs:
The following presents the restructuring costs by line item during fiscal 2022, 2021 and 2020 within our accompanying consolidated statements of income and comprehensive income:
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Restructuring and Related Costs by Segment | The following presents the restructuring related costs by line item during fiscal 2022, 2021 and 2020 within our accompanying consolidated statements of income and comprehensive income:
The tables below present restructuring and restructuring related costs by reportable segment:
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ACQUISITIONS (Tables) |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The following amounts represent the fair value of the identifiable assets acquired and liabilities assumed for Cardiva:
Intangible assets acquired consist of the following:
The following amounts represent the fair value of the identifiable assets acquired and liabilities assumed for enicor completed during fiscal 2021:
Intangible assets acquired consist of the following:
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Business Acquisition, Pro Forma Information |
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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 (loss) before (benefit) provision for income tax is as follows:
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Schedule of Income Tax Provision Components | The income tax (benefit) provision from continuing operations contains the following components:
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Schedule of Net Deferred Tax Asset | Tax effected, significant temporary differences comprising the net deferred tax liability are as follows:
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Schedule of Effective Income Tax Rate Reconciliation |
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Summary of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to its gross unrecognized tax benefits for the fiscal years ended April 2, 2022, April 3, 2021 and March 28, 2020:
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EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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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INVENTORIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are stated at the lower of cost or net realizable value and include the cost of material, labor and manufacturing overhead. Cost is determined with the first-in, first-out method.
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill |
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Schedule of Amoritized Intangibles | The gross carrying amount of intangible assets and the related accumulated amortization as of April 2, 2022 and April 3, 2021 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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LEASES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease, Cost [Table Text Block] | The following table presents supplemental cash flow information related to our operating leases:
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Assets and Liabilities Lessee [Table Text Block] | The following table presents supplemental balance sheet information related to the Company's operating leases:
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Lessee, Operating Leases, Other Information [Table Text Block] | The following table presents the weighted average remaining lease term and discount rate information related to our operating leases:
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Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table presents the maturities of our operating lease liabilities as of April 2, 2022:
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NOTES PAYABLE AND LONG-TERM DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 aggregate amount of debt maturing during the next five fiscal years are as follows:
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FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The following is a rollforward of the allowance for credit losses:
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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 the Company's derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC 815 in its consolidated statements of income and comprehensive income for the fiscal year ended April 2, 2022.
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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 the Company's derivative instruments as they appear in its consolidated balance sheets as of April 2, 2022 and April 3, 2021:
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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 as of April 2, 2022 and April 3, 2021.
A reconciliation of the change in the fair value of contingent consideration is included in the following table:
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RETIREMENT PLANS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans | Some of the Company's 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 the Company's accumulated other comprehensive loss related to its 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 weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested are as follows:
The weighted-average grant-date fair value of PSUs granted and total fair value of PSUs vested are 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:
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Schedule of Estimated Future Benefit Payments | Estimated future benefit payments are as follows:
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CAPITAL STOCK (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock-Based Compensation Cost | Compensation cost related to share-based transactions is recognized in the consolidated financial statements based on fair value. The total amount of share-based compensation expense, which is recorded on a straight line basis, is 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 2, 2022 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 weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:
The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested are as follows:
The weighted-average grant-date fair value of PSUs granted and total fair value of PSUs vested are 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:
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Schedule of Summary of Restricted Stock Units Activity | A summary of RSU activity for the fiscal year ended April 2, 2022 is as follows:
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Schedule of Performance Share Unit awards | A summary of PSU activity for the fiscal year ended April 2, 2022 is as follows:
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SEGMENT AND ENTERPRISE-WIDE INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Apr. 02, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Business Segment |
Selected information by operating regions is presented below:
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Schedule of Revenues by Product Line | Net revenues by product line are as follows:
|
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 2, 2022 and April 3, 2021:
|
RESTRUCTURING (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
Jul. 31, 2019 |
Mar. 30, 2019 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Total restructuring and turnaround | $ 28,824 | $ 15,661 | $ 19,878 | ||
Restructuring and Related Cost, Cost Incurred to Date | 55,700 | ||||
Restructuring liability | 2,805 | 1,012 | 2,648 | $ 7,479 | |
Restructuring charges in next twelve months | 2,500 | ||||
Turnaround costs | 24,594 | 14,217 | 16,287 | ||
2020 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | 2,460 | 575 | 1,136 | $ 0 | |
Restructuring costs | $ 28,700 | $ 15,100 | $ 11,900 | ||
Minimum | 2020 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | $ 95,000 | ||||
Maximum | 2020 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | $ 105,000 |
INCOME TAXES (Schedule Domestic and Foreign Income Before Provision for Income Tax) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ (5,219) | $ 5,526 | $ 5,344 |
Foreign | 68,848 | 67,387 | 81,808 |
Income before provision (benefit) for income taxes | $ 63,629 | $ 72,913 | $ 87,152 |
INCOME TAXES (Schedule of Income Tax Provision Components) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Current | |||
Federal | $ 3,586 | $ (289) | $ 3,834 |
State | 1,682 | 1,256 | 1,054 |
Foreign | 9,940 | 13,319 | 12,467 |
Total current | 15,208 | 14,286 | 17,355 |
Deferred | |||
Federal | 3,455 | (12,906) | (8,257) |
State | 310 | (2,436) | 280 |
Foreign | 1,281 | (5,500) | 1,248 |
Total deferred | 5,046 | (20,842) | (6,729) |
Total | $ 20,254 | $ (6,556) | $ 10,626 |
INCOME TAXES (Summary of Gross Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 6,107 | $ 4,620 | $ 4,657 |
Additions for tax positions of current year | 219 | 335 | 180 |
Additions for tax positions of prior years | 0 | 1,194 | 880 |
Reductions of tax positions | (808) | (42) | (539) |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 1,579 | 0 | 558 |
Closure of statute of limitations | 0 | 0 | 0 |
Ending Balance | $ 3,939 | $ 6,107 | $ 4,620 |
EARNINGS PER SHARE (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Basic EPS | |||
Net income | $ 43,375 | $ 79,469 | $ 76,526 |
Basic weighted average shares (in shares) | 51,047 | 50,688 | 50,692 |
Basic income per share (in dollars per share) | $ 0.85 | $ 1.57 | $ 1.51 |
Diluted EPS | |||
Net income | $ 43,375 | $ 79,469 | $ 76,526 |
Basic weighted average shares (in shares) | 51,047 | 50,688 | 50,692 |
Net effect of common stock equivalents (in shares) | 306 | 604 | 1,123 |
Diluted weighted average shares (in shares) | 51,353 | 51,292 | 51,815 |
Diluted income per share (in dollars per share) | $ 0.84 | $ 1.55 | $ 1.48 |
Anti-dilutive shares (in shares) | 900 | 500 | 200 |
EARNINGS PER SHARE (Share Repurchase Plan) (Details) $ in Millions |
May 22, 2019
USD ($)
|
---|---|
Share Repurchase Program | |
Accelerated Share Repurchases [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 500 |
REVENUE (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
|
Revenue from Contract with Customer [Abstract] | ||
Performance obligation amount | $ 16.9 | |
Optional exemption term | 1 year | |
Performance obligation percent | 73.00% | |
Contract assets | $ 5.5 | $ 4.8 |
Contract liabilities | 26.8 | $ 20.9 |
Revenue recognized | $ 19.0 |
REVENUE Performance Obligations (Details) |
Apr. 02, 2022 |
---|---|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-03 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | |
Timing of satisifaction | 12 months |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Apr. 03, 2021 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 88,886 | $ 74,910 |
Work-in-process | 17,187 | 23,111 |
Finished goods | 186,954 | 224,593 |
Total inventories | $ 293,027 | $ 322,614 |
GOODWILL AND INTANGIBLE ASSETS Narrative (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Aggregate amortization expense | $ 56,600,000 | $ 41,200,000 | $ 34,200,000 |
Intangible asset impairment | 600,000 | 0 | 0 |
Software development costs capitalized | 3,400,000 | 4,200,000 | |
Total costs capitalized related to in process software development initiatives | 79,000,000 | 75,600,000 | |
Capitalized costs amortized (placed into service) | $ 8,400,000 | 7,800,000 | $ 8,200,000 |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 5 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted average useful life | 15 years | ||
Software Development | |||
Finite-Lived Intangible Assets [Line Items] | |||
Total costs capitalized related to in process software development initiatives | $ 5,000,000 | $ 4,000,000 |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt) (Details) - USD ($) $ in Thousands |
Apr. 02, 2022 |
Apr. 03, 2021 |
---|---|---|
Debt Instrument [Line Items] | ||
Less current portion | $ (214,148) | $ (17,016) |
Long term debt | 559,441 | 690,592 |
Term loan, net of financing fees | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 284,052 | 301,019 |
Bank loans and other borrowings | ||
Debt Instrument [Line Items] | ||
Debt outstanding | 75 | 128 |
Convertible notes | ||
Debt Instrument [Line Items] | ||
Debt outstanding | $ 489,462 | $ 406,461 |
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt Maturities) (Details) $ in Thousands |
Apr. 02, 2022
USD ($)
|
---|---|
Debt Disclosure [Abstract] | |
2020 | $ 214,375 |
2021 | 70,000 |
2022 | 0 |
2023 | 500,000 |
2024 | $ 0 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Allowance for credit losses (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Beginning balance | $ 2,226 | $ 3,824 | $ 3,937 |
Credit (gain) loss | 359 | (991) | 365 |
Write-offs | (110) | (607) | (478) |
Ending balance | $ 2,475 | $ 2,226 | $ 3,824 |
RETIREMENT PLANS (Narrative) (Details) - USD ($) |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, plan funded by company | $ 9,600,000 | $ 11,100,000 | |
Reinsurance contracts asset value | 6,800,000 | 7,000,000 | |
Accumulated benefit obligation | 28,400,000 | 30,600,000 | |
Amount expected to be amortized from accumulated other comprehensive loss in next fiscal year | 300,000 | ||
Subsidiaries | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | 600,000 | 700,000 | $ 600,000 |
Savings Plus Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | 6,300,000 | 4,900,000 | 4,700,000 |
401k Plan | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | $ 0 | $ 0 | $ 0 |
RETIREMENT PLANS (Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Retirement Benefits [Abstract] | |||
Service cost | $ 1,714 | $ 1,861 | $ 1,829 |
Interest cost on benefit obligation | 242 | 279 | 301 |
Expected return on plan assets | (88) | (66) | (178) |
Actuarial loss | 189 | 119 | 129 |
Amortization of unrecognized prior service cost | (175) | (123) | (98) |
Plan settlements | (184) | 0 | (239) |
Totals | $ 1,698 | $ 2,070 | $ 1,744 |
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. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
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 | $ (560) | $ (209) | $ (527) |
Actuarial gain | 2,532 | (221) | 614 |
Prior service cost | (194) | (130) | (87) |
Other Comprehensive Income (Loss), Defined Benefit Plan, Settlement and Curtailment Gain (Loss), after Tax | (159) | 0 | (209) |
Impact of defined benefit plans, net of tax, balance | $ 1,619 | $ (560) | $ (209) |
RETIREMENT PLANS (Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs) (Details) |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Retirement Benefits [Abstract] | |||
Discount rate | 1.38% | 0.58% | 0.82% |
Rate of increased salary levels | 1.81% | 1.64% | 1.74% |
Expected long-term rate of return on assets | 0.69% | 0.42% | 0.31% |
RETIREMENT PLANS (Schedule of Estimated Future Benefit Payments) (Details) $ in Thousands |
Apr. 02, 2022
USD ($)
|
---|---|
Expected Benefit Payments | |
Fiscal 2023 | $ 1,328 |
Fiscal 2024 | 1,426 |
Fiscal 2025 | 1,326 |
Fiscal 2026 | 1,429 |
Fiscal 2027 | 1,384 |
Fiscal 2028-2032 | $ 9,867 |
CAPITAL STOCK (Schedule of Share-Based Compensation) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Apr. 02, 2022 |
Apr. 03, 2021 |
Mar. 28, 2020 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 24,359 | $ 25,516 | $ 20,454 |
Selling, general and administrative expenses | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 20,694 | 22,888 | 18,022 |
Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | 2,537 | 1,874 | 1,210 |
Cost of Goods Sold | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock-based compensation expense recognized | $ 1,128 | $ 754 | $ 1,222 |
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