SEGMENT AND ENTERPRISE-WIDE INFORMATION

3 Months Ended

Jul. 02, 2022

Segment Reporting [Abstract]

SEGMENT AND ENTERPRISE-WIDE INFORMATION

12. 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 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:

	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Net revenues
Plasma	$	103,042	$	71,803
Blood Center	66,573		71,736
Hospital	89,184		77,607
Net revenues by business unit	258,799		221,146
Service (1)	5,137		5,268
Effect of exchange rates	(2,478)		2,114
Net revenues	$	261,458	$	228,528
(1) Reflects revenue for service, maintenance and parts

	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Segment operating income
Plasma	$	55,126	$	35,346
Blood Center	30,377		33,882
Hospital	34,722		31,597
Segment operating income	120,225		100,825
Corporate expenses (1)	(81,584)		(68,731)
Effect of exchange rates	6,245		5,812
Integration and transaction costs	758		(16,733)
Deal amortization	(8,367)		(12,379)
Restructuring and restructuring related costs	(3,478)		(10,055)
Impairment of assets and PCS2 related charges	350		(3,643)
MDR and IVDR costs	(3,186)		(2,371)
Litigation-related charges	(196)		(938)
Gains on divestitures and sale of assets	—		9,603
Operating income	$	30,767	$	1,390
(1) Reflects shared service expenses including quality and regulatory, customer and field service, research and development, manufacturing and supply chain, as well as other corporate support functions.

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

Net revenues by product line are as follows:

	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
Plasma products and services	$	118,352	$	90,509
Blood Center products and services	52,918		57,747
Hospital products and services	90,188		80,272
Net revenues	$	261,458	$	228,528

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

	Three Months Ended
(In thousands)	July 2, 2022		July 3, 2021
United States	$	181,996	$	141,028
Japan	13,878		17,221
Europe	40,457		43,335
Asia	24,424		25,952
Other	703		992
Net revenues	$	261,458	$	228,528