QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Each Exchange on Which Registered | ||||||||||||
x | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
PAGE | |||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||||||||||
Net revenues | $ | $ | $ | $ | |||||||||||||||||||
Cost of goods sold | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative | |||||||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Impairment of intangible assets | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Operating income | |||||||||||||||||||||||
Interest and other expense, net | ( | ( | ( | ( | |||||||||||||||||||
Income before provision for income taxes | |||||||||||||||||||||||
Provision for income taxes | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Net income per share - basic | $ | $ | $ | $ | |||||||||||||||||||
Net income per share - diluted | $ | $ | $ | $ | |||||||||||||||||||
Weighted average shares outstanding | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Diluted | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
December 30, 2023 | April 1, 2023 | ||||||||||
ASSETS | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, less allowance for credit losses 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 | |||||||||||
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 (Loss)/Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance, April 1, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | ( | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | ( | — | — | ||||||||||||||||||||||||||||||||
Tax withholding on employee equity awards | ( | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, July 1, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Exercise of stock options | — | ||||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding on employee equity awards | ( | ( | — | ( | |||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, September 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | ( | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | — | — | — | — | — | ||||||||||||||||||||||||||||||
Tax withholding on employee equity awards | ( | ( | ( | — | ( | ||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, December 30, 2023 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive (Loss)/Income | Total Stockholders’ Equity | |||||||||||||||||||||||||||||||
Shares | Par Value | ||||||||||||||||||||||||||||||||||
Balance, April 2, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | ( | — | — | ||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, July 2, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Exercise of stock options | — | — | |||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | ( | — | ( | |||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | — | — | — | — | — | ||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Balance, October 1, 2022 | $ | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||||
Employee stock purchase plan | — | — | — | ||||||||||||||||||||||||||||||||
Shares repurchased | ( | ( | ( | — | |||||||||||||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of restricted stock, net of cancellations | — | — | |||||||||||||||||||||||||||||||||
Share-based compensation expense | — | — | — | — | |||||||||||||||||||||||||||||||
Net income | — | — | — | — | |||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | |||||||||||||||||||||||||||||||
Balance, December 31, 2022 | $ | $ | $ | $ | ( | $ |
Nine Months Ended | |||||||||||
December 30, 2023 | December 31, 2022 | ||||||||||
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 | |||||||||||
Share-based compensation expense | |||||||||||
Impairment of assets | |||||||||||
Amortization of deferred financing costs | |||||||||||
Inventory reserve adjustment | |||||||||||
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 | ( | ( | |||||||||
Acquisitions | ( | ( | |||||||||
Proceeds from divestiture | |||||||||||
Proceeds from sale of property, plant and equipment | |||||||||||
Other investments | ( | ( | |||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash Flows from Financing Activities: | |||||||||||
Term loan borrowings | |||||||||||
Term loan redemption | ( | ||||||||||
Proceeds from revolving facility | |||||||||||
Payments on revolving facility | ( | ||||||||||
Repayment of term loan borrowings | ( | ( | |||||||||
Debt issuance costs | ( | ||||||||||
Share repurchases | ( | ||||||||||
Contingent consideration payments | ( | ( | |||||||||
Proceeds from employee stock purchase plan | |||||||||||
Proceeds from exercise of stock options | |||||||||||
Cash used to net share settle employee equity awards | ( | ||||||||||
Other financing activities | ( | ||||||||||
Net cash provided by (used in) 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 Period | |||||||||||
Cash and Cash Equivalents at End of Period | $ | $ | |||||||||
Supplemental Disclosures of Cash Flow Information: | |||||||||||
Non-Cash Investing and Financing Activities: | |||||||||||
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ | $ |
(In thousands) | December 12, 2023 | ||||
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 | ||||||||
Developed technology | $ | % | |||||||||
Customer contracts and related relationships | % | ||||||||||
Trade names | % | ||||||||||
Total | $ |
(In thousands) | Portfolio Rationalization | 2020 Program | Prior Programs | Total | ||||||||||||||||||||||
Balance at April 1, 2023 | $ | $ | $ | $ | ||||||||||||||||||||||
Costs incurred, net of reversals | ||||||||||||||||||||||||||
Payments | ( | ( | ( | ( | ||||||||||||||||||||||
Balance at December 30, 2023 | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
Cost of goods sold | $ | $ | ( | $ | $ | ( | |||||||||||||||||
Research and development | |||||||||||||||||||||||
Selling, general and administrative expenses | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
Restructuring costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
Plasma | $ | $ | ( | $ | ( | $ | ( | ||||||||||||||||
Blood Center | |||||||||||||||||||||||
Hospital | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Restructuring related costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
Plasma | $ | $ | $ | $ | |||||||||||||||||||
Blood Center | |||||||||||||||||||||||
Hospital | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Total restructuring and restructuring related costs | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands, except per share amounts) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
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) | December 30, 2023 | April 1, 2023 | ||||||||||||
Raw materials | $ | $ | ||||||||||||
Work-in-process | ||||||||||||||
Finished goods | ||||||||||||||
Total inventories | $ | $ |
(In thousands) | December 30, 2023 | April 1, 2023 | ||||||||||||
Land | $ | $ | ||||||||||||
Building and building improvements | ||||||||||||||
Plant equipment and machinery | ||||||||||||||
Office equipment and information technology | ||||||||||||||
Haemonetics equipment | ||||||||||||||
Construction in progress | ||||||||||||||
Total | ||||||||||||||
Less: accumulated depreciation | ( | ( | ||||||||||||
Property, plant and equipment, net | $ | $ |
(In thousands) | Plasma | Blood Center | Hospital | Total | |||||||||||||||||||
Carrying amount as of April 1, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Acquisitions | |||||||||||||||||||||||
Currency translation | ( | ||||||||||||||||||||||
Carrying amount as of December 30, 2023 | $ | $ | $ | $ |
(In thousands) | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||
As of December 30, 2023 | |||||||||||||||||
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 1, 2023 | |||||||||||||||||
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) | ||||||||
Remainder of Fiscal 2024 | $ | |||||||
Fiscal 2025 | $ | |||||||
Fiscal 2026 | $ | |||||||
Fiscal 2027 | $ | |||||||
Fiscal 2028 | $ |
Hedged Item | Original Notional Amount | Notional Amount as of December 30, 2023 | Designation Date | Effective Date | Termination Date | Fixed Interest Rate | Estimated Fair Value Assets (Liabilities) | |||||||||||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||||||||||||||||
1-month USD Term SOFR | 9/23/2022 | 6/15/2023 | 6/15/2025 | |||||||||||||||||||||||||||||||||||||||||
1-month USD Term SOFR | 9/23/2022 | 6/15/2023 | 6/15/2025 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
Beginning balance | $ | $ | $ | $ | |||||||||||||||||||
Credit loss | |||||||||||||||||||||||
Recoveries (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 Condensed Consolidated Statements of Income and Comprehensive Income | Amount of Gain Excluded from Effectiveness Testing | Location in Condensed 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 | $ | $ | $ | |||||||||||||||||||||||||||||
(In thousands) | Location in Condensed Consolidated Balance Sheets | As of | As of | |||||||||||||||||
December 30, 2023 | April 1, 2023 | |||||||||||||||||||
Derivative Assets: | ||||||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | $ | |||||||||||||||||
Non-designated foreign currency hedge contracts | Other current assets | |||||||||||||||||||
Designated interest rate swaps | 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 long-term liabilities | |||||||||||||||||||
$ | $ |
As of December 30, 2023 | ||||||||||||||||||||||||||
(In thousands) | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | — | $ | |||||||||||||||||||||
Designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
$ | $ | $ | — | $ | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Designated foreign currency hedge contracts | $ | $ | $ | — | $ | |||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
$ | $ | $ | — | $ | ||||||||||||||||||||||
As of April 1, 2023 | ||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||
Money market funds | $ | $ | $ | — | $ | |||||||||||||||||||||
Designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
$ | $ | $ | — | $ | ||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||
Designated foreign currency hedge contracts | $ | $ | $ | — | $ | |||||||||||||||||||||
Non-designated foreign currency hedge contracts | — | |||||||||||||||||||||||||
Designated interest rate swaps | — | |||||||||||||||||||||||||
Contingent consideration | — | — | ||||||||||||||||||||||||
$ | $ | $ | $ |
(In thousands) | Foreign Currency | Defined Benefit Plans | Net Unrealized Gain/(Loss) on Derivatives | Total | ||||||||||||||||||||||
Balance as of April 1, 2023 | $ | ( | $ | $ | ( | $ | ( | |||||||||||||||||||
Other comprehensive income (loss) before reclassifications(1) | ||||||||||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income(1) | ( | ( | ||||||||||||||||||||||||
Net current period other comprehensive income (loss) | ||||||||||||||||||||||||||
Balance as of December 30, 2023 | $ | ( | $ | $ | $ | ( | ||||||||||||||||||||
(1) Presented net of income taxes, the amounts of which are insignificant. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
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 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
Segment operating income | |||||||||||||||||||||||
Plasma | $ | $ | $ | $ | |||||||||||||||||||
Blood Center | |||||||||||||||||||||||
Hospital | |||||||||||||||||||||||
Segment operating income | |||||||||||||||||||||||
Corporate expenses (1) | ( | ( | ( | ( | |||||||||||||||||||
Effect of exchange rates | ( | ( | |||||||||||||||||||||
Amortization of acquired intangible assets | ( | ( | ( | ( | |||||||||||||||||||
Integration and transaction costs | ( | ( | ( | ||||||||||||||||||||
Restructuring costs | ( | ( | ( | ( | |||||||||||||||||||
Restructuring related costs | ( | ( | ( | ( | |||||||||||||||||||
Digital transformation costs | ( | ( | |||||||||||||||||||||
Impairment of assets and PCS2 related charges | ( | ( | |||||||||||||||||||||
MDR and IVDR costs | ( | ( | ( | ( | |||||||||||||||||||
Litigation-related charges | ( | ( | ( | ( | |||||||||||||||||||
Impairment of intangible assets | ( | ||||||||||||||||||||||
Gains on divestiture | |||||||||||||||||||||||
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. |
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | ||||||||||||||||||||||
Plasma | $ | $ | $ | $ | ||||||||||||||||||||||
Apheresis | ||||||||||||||||||||||||||
Whole Blood | ||||||||||||||||||||||||||
Blood Center | ||||||||||||||||||||||||||
Interventional Technologies(1) | ||||||||||||||||||||||||||
Hemostasis Management | ||||||||||||||||||||||||||
Other(2) | ||||||||||||||||||||||||||
Hospital | ||||||||||||||||||||||||||
Net business unit revenues | ||||||||||||||||||||||||||
Service | ||||||||||||||||||||||||||
Net revenues | $ | $ | $ | $ | ||||||||||||||||||||||
(1) Interventional Cardiology includes Vascular Closure and Sensor Guided Technologies product lines of the Hospital business unit. | ||||||||||||||||||||||||||
(2) Other includes the Cell Salvage and Transfusion Management product lines of the Hospital business unit. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | December 30, 2023 | December 31, 2022 | |||||||||||||||||||
United States | $ | $ | $ | $ | |||||||||||||||||||
Japan | |||||||||||||||||||||||
Europe | |||||||||||||||||||||||
Rest of Asia | |||||||||||||||||||||||
Other | |||||||||||||||||||||||
Net revenues | $ | $ | $ | $ |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
(In thousands, except per share data) | December 30, 2023 | December 31, 2022 | % Increase/ (Decrease) | December 30, 2023 | December 31, 2022 | % Increase/ (Decrease) | |||||||||||||||||||||||||||||
Net revenues | $ | 336,250 | $ | 305,301 | 10.1 | % | $ | 965,765 | $ | 864,244 | 11.7 | % | |||||||||||||||||||||||
Gross profit | $ | 177,867 | $ | 158,707 | 12.1 | % | $ | 515,642 | $ | 458,848 | 12.4 | % | |||||||||||||||||||||||
% of net revenues | 52.9 | % | 52.0 | % | 53.4 | % | 53.1 | % | |||||||||||||||||||||||||||
Operating expenses | $ | 131,889 | $ | 115,428 | 14.3 | % | $ | 380,702 | $ | 338,070 | 12.6 | % | |||||||||||||||||||||||
Operating income | $ | 45,978 | $ | 43,279 | 6.2 | % | $ | 134,940 | $ | 120,778 | 11.7 | % | |||||||||||||||||||||||
% of net revenues | 13.7 | % | 14.2 | % | 14.0 | % | 14.0 | % | |||||||||||||||||||||||||||
Interest and other expense, net | $ | (1,949) | $ | (1,055) | 84.7 | % | $ | (6,489) | $ | (12,001) | (45.9) | % | |||||||||||||||||||||||
Income before provision for income taxes | $ | 44,029 | $ | 42,224 | 4.3 | % | $ | 128,451 | $ | 108,777 | 18.1 | % | |||||||||||||||||||||||
Provision for income taxes | $ | 12,788 | $ | 9,280 | 37.8 | % | $ | 31,260 | $ | 22,759 | 37.4 | % | |||||||||||||||||||||||
% of pre-tax income | 29.0 | % | 22.0 | % | 24.3 | % | 20.9 | % | |||||||||||||||||||||||||||
Net income | $ | 31,241 | $ | 32,944 | (5.2) | % | $ | 97,191 | $ | 86,018 | 13.0 | % | |||||||||||||||||||||||
% of net revenues | 9.3 | % | 10.8 | % | 10.1 | % | 10.0 | % | |||||||||||||||||||||||||||
Net income per share - basic | $ | 0.62 | $ | 0.65 | (4.6) | % | $ | 1.92 | $ | 1.69 | 13.6 | % | |||||||||||||||||||||||
Net income per share - diluted | $ | 0.61 | $ | 0.64 | (4.7) | % | $ | 1.89 | $ | 1.67 | 13.2 | % |
Three Months Ended | ||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | Reported growth | Currency impact | Constant currency growth (1) | |||||||||||||||||||||||||||
United States | $ | 250,804 | $ | 224,104 | 11.9 | % | — | % | 11.9 | % | ||||||||||||||||||||||
International | 85,446 | 81,197 | 5.2 | % | (0.7) | % | 5.9 | % | ||||||||||||||||||||||||
Net revenues | $ | 336,250 | $ | 305,301 | 10.1 | % | (0.2) | % | 10.3 | % | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | Reported growth | Currency impact | Constant currency growth (1) | |||||||||||||||||||||||||||
United States | $ | 724,222 | $ | 617,824 | 17.2 | % | — | % | 17.2 | % | ||||||||||||||||||||||
International | 241,543 | 246,420 | (2.0) | % | (2.3) | % | 0.3 | % | ||||||||||||||||||||||||
Net revenues | $ | 965,765 | $ | 864,244 | 11.7 | % | (0.7) | % | 12.4 | % | ||||||||||||||||||||||
(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.” |
Three Months Ended | ||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | Reported growth | Currency impact | Constant currency growth(1) | |||||||||||||||||||||||||||
Plasma | $ | 146,805 | $ | 135,461 | 8.4 | % | 0.3 | % | 8.1 | % | ||||||||||||||||||||||
Apheresis | 50,666 | 52,398 | (3.3) | % | (1.9) | % | (1.4) | % | ||||||||||||||||||||||||
Whole Blood | 19,814 | 20,964 | (5.5) | % | 0.1 | % | (5.6) | % | ||||||||||||||||||||||||
Blood Center | 70,480 | 73,362 | (3.9) | % | (1.3) | % | (2.6) | % | ||||||||||||||||||||||||
Interventional Technologies(2) | 43,007 | 32,154 | 33.8 | % | (0.2) | % | 34.0 | % | ||||||||||||||||||||||||
Hemostasis Management | 41,423 | 34,921 | 18.6 | % | 0.1 | % | 18.5 | % | ||||||||||||||||||||||||
Other(3) | 28,989 | 24,485 | 18.4 | % | 0.4 | % | 18.0 | % | ||||||||||||||||||||||||
Hospital | 113,419 | 91,560 | 23.9 | % | 0.1 | % | 23.8 | % | ||||||||||||||||||||||||
Net business unit revenues | 330,704 | 300,383 | 10.1 | % | (0.2) | % | 10.3 | % | ||||||||||||||||||||||||
Service | 5,546 | 4,918 | 12.8 | % | 1.9 | % | 10.9 | % | ||||||||||||||||||||||||
Net revenues | $ | 336,250 | $ | 305,301 | 10.1 | % | (0.2) | % | 10.3 | % | ||||||||||||||||||||||
Nine Months Ended | ||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | Reported growth | Currency impact | Constant currency growth(1) | |||||||||||||||||||||||||||
Plasma | $ | 427,315 | $ | 365,735 | 16.8 | % | 0.1 | % | 16.7 | % | ||||||||||||||||||||||
Apheresis | 151,380 | 152,287 | (0.6) | % | (3.0) | % | 2.4 | % | ||||||||||||||||||||||||
Whole Blood | 54,538 | 60,452 | (9.8) | % | (0.7) | % | (9.1) | % | ||||||||||||||||||||||||
Blood Center | 205,918 | 212,739 | (3.2) | % | (2.3) | % | (0.9) | % | ||||||||||||||||||||||||
Interventional Technologies(2) | 119,169 | 91,297 | 30.5 | % | (0.2) | % | 30.7 | % | ||||||||||||||||||||||||
Hemostasis Management | 116,241 | 102,737 | 13.1 | % | (0.7) | % | 13.8 | % | ||||||||||||||||||||||||
Other(3) | 80,760 | 76,875 | 5.1 | % | (0.7) | % | 5.8 | % | ||||||||||||||||||||||||
Hospital | 316,170 | 270,909 | 16.7 | % | (0.6) | % | 17.3 | % | ||||||||||||||||||||||||
Net business unit revenues | 949,403 | 849,383 | 11.8 | % | (0.7) | % | 12.5 | % | ||||||||||||||||||||||||
Service | 16,362 | 14,861 | 10.1 | % | 0.7 | % | 9.4 | % | ||||||||||||||||||||||||
Net revenues | $ | 965,765 | $ | 864,244 | 11.7 | % | (0.7) | % | 12.4 | % | ||||||||||||||||||||||
(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)Interventional Cardiology includes Vascular Closure and Sensor Guided Technologies product lines of the Hospital business unit. | ||||||||||||||||||||||||||||||||
(3)Other includes the Cell Salvage and Transfusion Management product lines of the Hospital business unit. |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | % Increase | December 30, 2023 | December 31, 2022 | % Increase | |||||||||||||||||||||||||||||
Gross profit | $ | 177,867 | $ | 158,707 | 12.1 | % | $ | 515,642 | $ | 458,848 | 12.4 | % | |||||||||||||||||||||||
% of net revenues | 52.9 | % | 52.0 | % | 53.4 | % | 53.1 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | % Increase/ (Decrease) | December 30, 2023 | December 31, 2022 | % Increase/ (Decrease) | |||||||||||||||||||||||||||||
Research and development | $ | 13,265 | $ | 12,689 | 4.5 | % | $ | 38,578 | $ | 34,487 | 11.9 | % | |||||||||||||||||||||||
% of net revenues | 3.9 | % | 4.2 | % | 4.0 | % | 4.0 | % | |||||||||||||||||||||||||||
Selling, general and administrative | $ | 111,713 | $ | 94,661 | 18.0 | % | $ | 310,099 | $ | 278,917 | 11.2 | % | |||||||||||||||||||||||
% of net revenues | 33.2 | % | 31.0 | % | 32.1 | % | 32.3 | % | |||||||||||||||||||||||||||
Amortization of acquired intangible assets | $ | 6,911 | $ | 8,078 | (14.4) | % | $ | 21,606 | $ | 24,666 | (12.4) | % | |||||||||||||||||||||||
% of net revenues | 2.1 | % | 2.6 | % | 2.2 | % | 2.9 | % | |||||||||||||||||||||||||||
Impairment of intangible assets | $ | — | $ | — | n/m | $ | 10,419 | $ | — | n/m | |||||||||||||||||||||||||
% of net revenues | — | % | — | % | 1.1 | % | — | % | |||||||||||||||||||||||||||
Total operating expenses | $ | 131,889 | $ | 115,428 | 14.3 | % | $ | 380,702 | $ | 338,070 | 12.6 | % | |||||||||||||||||||||||
% of net revenues | 39.2 | % | 37.8 | % | 39.4 | % | 39.1 | % |
(Dollars in thousands) | December 30, 2023 | April 1, 2023 | ||||||||||||
Cash and cash equivalents | $ | 193,978 | $ | 284,466 | ||||||||||
Working capital | $ | 503,227 | $ | 517,906 | ||||||||||
Current ratio | 2.9 | 3.1 | ||||||||||||
Net debt position(1) | $ | (676,607) | $ | (481,420) | ||||||||||
Days sales outstanding (DSO) | 57 | 53 | ||||||||||||
Inventory turnover | 1.8 | 1.8 |
Nine Months Ended | ||||||||||||||
(In thousands) | December 30, 2023 | December 31, 2022 | ||||||||||||
Net cash provided by (used in): | ||||||||||||||
Operating activities | $ | 117,670 | $ | 193,447 | ||||||||||
Investing activities | (309,333) | (125,782) | ||||||||||||
Financing activities | 101,659 | (98,761) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents(1) | (484) | (4,398) | ||||||||||||
Net change in cash and cash equivalents | $ | (90,488) | $ | (35,494) |
Trading Arrangement | ||||||||||||||||||||||||||||||||||||||
Name and Title | Action | Date(1) | Rule 10b5-1* | Non-Rule 10b5-1** | Number of Shares to be Sold(2) | Expiration Date(3) | ||||||||||||||||||||||||||||||||
X | 8/15/2024 | |||||||||||||||||||||||||||||||||||||
* Intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934. | ||||||||||||||||||||||||||||||||||||||
** Not intended to satisfy the affirmative defense conditions of Rule 10b5-1(c) under the Securities Exchange Act of 1934. | ||||||||||||||||||||||||||||||||||||||
(1) Reflects the fully-executed date of each trading arrangement, which may differ from the date of first execution by an officer or director. | ||||||||||||||||||||||||||||||||||||||
(2) The number of shares of common stock sold under each trading arrangement, if any, will be net of shares withheld for applicable tax obligations upon the vesting and/or exercise of covered securities as well as for payment of the exercise price upon the exercise of stock options, which amounts are not yet determinable. | ||||||||||||||||||||||||||||||||||||||
(3) Except as otherwise indicated by footnote, each trading arrangement expires upon the earlier of (a) completion of all authorized transactions thereunder and (b) the expiration date listed above. | ||||||||||||||||||||||||||||||||||||||
(4) Includes 12,374 shares subject to a performance share unit (“PSU”) award previously granted to Ms. Basil on May 18, 2021. The actual number of shares to be earned under the PSU award, and subject to sale under this trading arrangement, may range from 0% to a maximum of 200% of the target award depending upon the Company’s total shareholder return relative to the components of the S&P MidCap 400 index during a three-year performance period from May 18, 2021 to May 17, 2024. |
Restated Articles of Organization of the Company, 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). | |||||
Arrangement Agreement, dated as of October 10, 2023, by and among the Company, OpSens Inc. and 9500-7704 Quebec Inc. (filed as Exhibit 2.1 to the Company’s Form 8-K/A dated October 12, 2023 and incorporated herein by reference) (1). | |||||
Form of Voting and Support Agreement (filed as Exhibit 10.1 to the Company’s Form 8-K/A dated October 12, 2023 and incorporated herein by reference) (1). | |||||
Sixth Amendment to Lease dated February 21, 2000, made as of December 13, 2023, by and between Santa Maria Industrial Partners, L.P. (as successor to the lease), Haemonetics Mexico Manufacturing, S. de R.L. de C.V. and the Company, in its capacity as guarantor, for property located in Tijuana, Mexico (1). | |||||
Office Lease Agreement, dated as of December 18, 2018, by and between OPG 125 Summer Owner (DE) LLC and the Company (1). | |||||
31.1* | Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company. | ||||
31.2* | Certification pursuant to Section 302 of Sarbanes-Oxley of 2002, of James C. D'Arecca, Executive Vice President, Chief Financial Officer of the Company. | ||||
32.1** | 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. | ||||
32.2** | Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of James C. D'Arecca, Executive Vice President, Chief Financial Officer of the Company. | ||||
101* | The following materials from Haemonetics Corporation on Form 10-Q for the quarter ended July 2, 2022 formatted in inline Extensible Business Reporting Language (XBRL) includes: (i) Condensed Consolidated Statements of Income and Comprehensive Income, (ii) Condensed Consolidated Balance Sheets, (iii) Condensed Consolidated Statement of Stockholders' Equity, (iv) Condensed Consolidated Statements of Cash Flows, and (v) Notes to Condensed 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) | Certain portions of this exhibit are considered confidential and have been omitted as permitted under SEC rules and regulations. The Company agrees to furnish supplementally a copy of any omitted portions to the U.S. Securities and Exchange Commission upon request. |
HAEMONETICS CORPORATION | |||||||||||
February 8, 2024 | By: | /s/ Christopher A. Simon | |||||||||
Christopher A. Simon, President and Chief Executive Officer | |||||||||||
(Principal Executive Officer) | |||||||||||
February 8, 2024 | By: | /s/ James C. D’Arecca | |||||||||
James C. D’Arecca, Executive Vice President, Chief Financial Officer | |||||||||||
(Principal Financial Officer) |
SIXTH AMENDMENT TO LEASE AGREEMENT THIS SIXTH AMENDMENT TO LEASE AGREEMENT (the “Amendment Agreement”) is made as of this 13 day of December, 2023, by and between SANTA MARIA INDUSTRIAL PARTNERS, L.P. (“Landlord”), represented herein by Marcelo Durán Roux, as its legal representative, HAEMONETICS MÉXICO MANUFACTURING, S. DE R.L. C.V. (“Tenant”), represented herein by James D’Arecca & Josep Llorens, as its legal representatives, and HAEMONETICS CORPORATION (“Guarantor”), represented herein by James D’Arecca, as its legal representative. Landlord and Tenant hereinafter referred to collectively as the “Parties”. | SEXTO CONVENIO MODIFICATORIO AL CONTRATO DE ARRENDAMIENTO EL PRESENTE SEXTO CONVENIO MODIFICATORIO AL CONTRATO DE ARRENDAMIENTO (el “Convenio Modificatorio”) celebrado el día 13 de Diciembre de 2023, entre SANTA MARIA INDUSTRIAL PARTNERS, L.P. (la “Arrendadora”), en este acto representado por Marcelo Durán Roux, en su carácter de representante legal, HAEMONETICS MÉXICO MANUFACTURING, S. DE R.L. C.V. (la “Arrendataria”), en este acto representado por James D’Arecca y Josep Llorens , en su carácter de representantes legales, así como también por HAEMONETICS CORPORATION (el “Garante”), en este acto representado por James D’Arecca, en su carácter de representante legal. La Arrendadora y la Arrendataria en lo sucesivo en conjunto las “Partes”). | |||||||
RECITALS A. On February 21, 2000, Banco Bilbao Vizcaya-México, S.A., Institución de Banca Múltiple, Gupo Financiero BBV-Probursa, as trustee of Fideicomiso Submetrópoli de Tijuana and Ensatec, S.A. de C.V. entered into a certain lease agreement, as amended by that certain first amendment dated as of October 18, 2004, by that certain second amendment dated as of February 14, 2006, by that certain third amendment dated as of July 25, 2008, by that certain fourth amendment dated as of August 14, 2008, and by that certain fifth amendment dated as of January 19, 2018 (jointly, the “Lease”), with respect to an industrial building located at Calle Colinas No. 11730, Parque Industrial El Florido, Sección Colinas, Tijuana, Baja California, México (the “Property”). | DECLARACIONES A. Con fecha 21 de febrero de 2000, Banco Bilbao Vizcaya-México, S.A., Institución de Banca Múltiple, Gupo Financiero BBV-Probursa, como fiduciario del Fideicomiso Submetrópoli de Tijuana, y Ensatec, S.A. de C.V., celebraron cierto contrato de arrendamiento, modificado mediante cierto primer convenio modificatorio de fecha 18 de octubre de 2004, cierto segundo convenio modificatorio de fecha 14 de febrero de 2006, cierto tercer convenio modificatorio de fecha 25 de julio de 2008, cierto cuarto convenio modificatorio de fecha 14 de agosto de 2011 y cierto quinto convenio modificatorio de fecha 19 de enero de 2018 (conjuntamente el “Arrendamiento”), respecto del edificio industrial ubicado en Calle Colinas No. 11730, Parque Industrial El Florido, Sección Colinas, Tijuana, Baja California, México (el “Inmueble”). | |||||||
B. On November 16, 2000, Banco Bilbao Vizcaya-México, S.A., Institución de Banca Múltiple, Gupo Financiero BBV-Probursa changed its name to BBVA Bancomer Servicios, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer. | B. Con fecha 16 de noviembre de 2000, Banco Bilbao Vizcaya-México, S.A., Institución de Banca Múltiple, Gupo Financiero BBV-Probursa cambió su denominación a BBVA Bancomer Servicios, S.A., Institución de Banca Múltiple, Grupo Financiero BBVA Bancomer. | |||||||
C. On December 10, 2010, Promotora California de Desarrollos, S.A.P.I. de C.V. acquired all the rights and obligations of the owner (as landlord) under the Lease. | C. Con fecha 10 de diciembre de 2010, Promotora California de Desarrollos, S.A.P.I. de C.V. adquirió todos los derechos y obligaciones del arrendador bajo el Arrendamiento. | |||||||
D. On February 10, 2011, Procadef 1, S.A.P.I. de C.V. acquired all the rights and obligations of the owner (as landlord) under the Lease. | D. Con fecha 10 de febrero de 2011, Procadef 1, S.A.P.I. de C.V. adquirió todos los derechos y obligaciones del arrendador bajo el Arrendamiento. |
E. On February 23, 2012, Ensatec, S.A. de C.V. assigned all the rights and obligations of tenant under the Lease to Pall Mexico Manufacturing, S. de R.L. de C.V. | E. Con fecha 23 de febrero de 2012, Ensatec, S.A. de C.V. cedió rodos los derechos y obligaciones de arrendatario bajo el Arrendamiento a Pall Mexico Manufacturing, S. de R.L. de C.V. | |||||||
F. On January 29, 2013, Pall Mexico Manufacturing, S. de R.L. de C.V. changed its name to Haemonetics México Manufacturing, S. de R.L. de C.V. | F. Con fecha 29 de enero de 2013, Pall Mexico Manufacturing, S. de R.L. de C.V. cambió su denominación a Haemonetics México Manufacturing, S. de R.L. de C.V. | |||||||
G. On December 10, 2013, Mega2013, S.A.P.I. de C.V. acquired all the rights and obligations of the owner (as landlord) under the Lease. | G. Con fecha 10 de diciembre de 2013, Mega2013, S.A.P.I. de C.V. adquirió todos los derechos y obligaciones del arrendador bajo el Arrendamiento. | |||||||
H. On September 10, 2018, El Florido, California, S.A. de C.V. acquired all the rights and obligations of the owner (as landlord) under the Lease. | H. Con fecha 10 de septiembre de 2018, El Florido, California, S.A. de C.V. adquirió todos los derechos y obligaciones del arrendador bajo el Arrendamiento. | |||||||
I. On December 30, 2020, ownership over the Property was transferred for the entire benefit of Landlord through an irrevocable trust agreement, acquiring all rights and obligations as landlord under the Lease. | I. Con fecha 30 de diciembre de 2020, el Inmueble fue enajenado mediante fideicomiso irrevocable traslativo de dominio en el que la Arrendadora es la única fideicomisaria, adquiriendo todos los derechos y obligaciones como arrendador bajo el Arrendamiento. | |||||||
J. The Parties desire to enter into this Amendment Agreement in order to modify certain terms of the Lease Agreement. | J. Es la intención de las Partes celebrar el presente Convenio Modificatorio a efecto de modificar ciertos términos del Contrato de Arrendamiento. | |||||||
NOW, THEREFORE, in consideration of the above, the Parties hereby covenant and agree as follows: | POR LO TANTO, en virtud de lo anterior, en este acto las Partes convienen lo siguiente: | |||||||
1. Definitions. All capitalized terms used herein which are not otherwise defined shall have the respective meanings set forth in the Lease. | 1. Definiciones. Todos los términos utilizados con mayúsculas en el presente Convenio modificatorio y que no se definan, tendrán el mismo significado que se les asigna en el Arrendamiento. | |||||||
2. Term. The parties hereby agree to extend the term of the Lease for an additional period of five (5) years (the “Extension Term”), as of the date of this Amendment Agreement, therefore, the term of the Lease expires on August 16, 2028 (the “Expiration Date”). | 2. Vigencia. Las partes en este acto acuerdan prorrogar la vigencia del Arrendamiento por un plazo adicional de 5 (cinco) años (el “Periodo de Prórroga”) a partir de la fecha del presente Convenio Modificatorio, por lo que el plazo del Arrendamiento vence el 16 de agosto de 2028 (la “Fecha de Terminación”). | |||||||
The Parties recognize that the extension of the term established herein is the exercise by Tenant of its extension right contained at the Lease, and the parties hereby agree to delete Clauses First and Second of the Fifth Amendment Agreement, dated as of January 1, 2018 (the “Fifth Amendment”) in their entirety and to revoke any reference within the Lease to the option of Tenant to extend or renew the Term and to the option to remain in the Premises for an additional period, except for the provision contained in Clause 4 of this Amendment Agreement. | Las Partes reconocen que la extensión de la vigencia aquí establecida es el ejercicio de la Arrendataria a su derecho de prórroga contenido en el Arrendamiento, por lo cual acuerdan eliminar en su totalidad y dejar sin efectos la totalidad de la Cláusula Primera y Segunda del Quinto Convenio Modificatorio de fecha 1ro de Enero del 2018 (el Quinto Convenio Modificatorio) y revocar cualquier referencia que exista en el Arrendamiento a la opción de la Arrendataria de prorrogar o extender el Plazo y la opción de permanecer en el Inmueble por un periodo adicional, salvo por lo previsto en el presente Convenio Modificatorio en la siguiente clausula 4. |
3. Monthly Rent. The Parties hereby agree that as of August 17, 2023, the monthly rent to be paid by the Tenant to the Landlord shall be USD$[***] ([***] United States legal currency) plus the Value Added Tax (“VAT”). Subsequently and as of September 1, 2024, in subsequent years and on each September 1 during the Extension Term, the total monthly rent payable shall be subject to annual increases of [***] percent ([***]%), without the need for any other notification or communication between the Parties. | 3. Renta Mensual. Las Partes acuerdan que, a partir del 17 de agosto de 2023, la renta mensual a ser pagada por la Arrendataria a la Arrendadora será por la cantidad de EUA$[***] ([***] moneda de curso legal en los Estados Unidos de América) más el Impuesto al Valor Agregado (“IVA”). Posteriormente y a partir del 1 de septiembre de 2024, y en años subsecuentes, cada 1 de septiembre durante el Periodo de Prórroga, la renta mensual pagadera estará sujeta a incrementos anuales de [***] por ciento ([***]%), sin necesidad de ninguna otra notificación o comunicación entre las Partes. | |||||||
In the event that rent is paid in Mexican Pesos, currency of legal tender in the United Mexican States, such will be paid at the rate of exchange in effect for selling Mexican Pesos to purchase United States Dollars, according to the rate published in the Official Journal of the Federation (Diario Oficial de la Federación) on the date Tenant pays Landlord such rent. If Tenant elects to pay rent in Mexican Pesos, Tenant will be obligated to pay, in addition thereto and as an administrative fee, an amount equal to ten percent (10%) of any such rent payment, plus applicable value added tax. | En caso de que la renta sea pagada en Pesos mexicanos, moneda del curso legal en los Estados Unidos Mexicanos, esta será pagada de acuerdo con el tipo de cambio publicado en el Diario Oficial de la Federación en la fecha en que la Arrendataria realice el pago a la Arrendadora en cuyo caso, la Arrendataria estará obligada a pagar adicionalmente, por concepto de honorarios administrativos, un importe igual al 10% (diez por ciento) de la renta, más el impuesto al valor agregado. | |||||||
4. Additional Extension Term. Provided that (i) the Lease shall be in full force and effect in accordance with the terms of the Lease and this Amendment Agreement, and (ii) no event of default shall be continuing thereunder, and (iii) Tenant and Guarantor shall be at least as creditworthy as on the date hereof Tenant shall have the right to extend the term of the Lease for one (1) period of five (5) years (“Additional Extension Term”). Tenant shall exercise its option hereunder by giving Landlord written notice of such election (along with reasonable evidence that it and Guarantor remain at least as creditworthy as on the date hereof) no later than 8 (eight) months prior to the Expiration Date. Once the Landlord has been notified, the Parties will, within the 30 (thirty) calendar days following the delivery of said notice and evidence, Landlord and Tenant shall , execute an amendment agreement to the Lease to state that this Lease and the Term have been extended accordingly. | 4. Periodo de Prórroga Adicional. Siempre que: (i) el Arrendamiento esté vigente y con plenos efectos de conformidad con lo establecido en el Arrendamiento y con el presente Convenio Modificatorio; y (ii) no haya ocurrido y continúe un incumplimiento conforme al mismo;y (iii) la Arrendataria y el Garante cuenten con una capacidad crediticia cuando menos como la que tienen a la fecha del presente , la Arrendataria tendrá derecho a prorrogar la vigencia del Arrendamiento por 1 (un) periodo de 5 (cinco) años (el “Periodo de Prórroga Adicional”). La Arrendataria ejercerá su opción aquí mencionada notificando por escrito a la Arrendadora de dicha elección (junto con evidencia razonable de que tanto ella como el Garante siguen contando cuando menos con la capacidad crediticia que tenían a la fecha del presente), a más tardar 8 (ocho) meses antes de la Fecha de Terminación. Una vez notificada la Arrendadora, las Partes dentro de los 30 (treinta) días naturales siguientes a la entrega de dicho aviso y evidencia, la Arrendadora y la Arrendataria , se reunirán para suscribir un nuevo convenio modificatorio al Arrendamiento para dejar constancia de que este Arrendamiento y la Vigencia han sido prorrogados en consecuencia. |
All of the terms, covenants and conditions of this Lease and the Amendment Agreement shall continue in full force and effect during the Additional Extension Term, except that (i) annual increases during the Additional Extension Term shall be as set forth in Subsection (B) of this clause, and (ii) monthly base rent for the first year of each Additional Extension Term shall be the greater of (a) the base rent plus annual increases escalated as contemplated at this Lease for such first year, and (b) the then annual market rental rate per square meter for recent lease renewals comparable industrial buildings located in the Tijuana, Baja California, multiplied by the Leaseable Square Meters (as defined below) of the Building. The Leaseable Square Meters of the Building shall include all of the warehouse, production, support, utility, office, cafeteria, locker room, and other closed building areas then present within the Premises at the time of the renewal notice, but shall not include any parking, maneuvering or guard house areas. Such annual market rental rate shall be determined as follows. Within 30 days after Tenant’s exercise of its option to extend, Landlord will propose to Tenant the market rental rate. Within 30 days thereafter, Tenant will either accept such determination (with no response on Tenant’s part during such period being deemed acceptance) or, if Tenant disagrees with such determination, Tenant will provide in writing to Landlord Tenant’s determination of the market rental rate. If, within 30 days thereafter, the parties are not able to agree on the market rental rate, within twenty (20) days after such failure to agree, Landlord and Tenant shall together appoint a MAI (or Mexican equivalent) appraiser having at least five (5) years' experience in industrial and warehouse leasing in the vicinity of Tijuana, Baja California,. If the Parties are not able to agree upon the designation of the appraiser, then the appraiser will be appointed by the American Arbitration Association (or its successor) from its qualified panel of arbitrators, which appraiser shall, to the extent practicable, have the qualifications set forth above. Within forty-five (45) days after his appointment, the appraiser will determine the fair market rental value of the Premises applicable to the Additional Extension Term and shall choose whichever of the fair market rental values set forth in Landlord's initial proposal or Tenant’s response is closer to such determination, which shall, for all purposes hereunder, be deemed the fair market rental rate. The determination of the appraiser shall be binding, final and conclusive on the parties. The fees and expenses of the appraiser and all costs incurred in connection with the appointment of the appraiser will be shared equally by Landlord and Tenant (in the amount of 50% each). | Todos los términos, acuerdos y condiciones del Arrendamiento y de este Convenio Modificatorio continuarán vigentes y surtiendo plenos efectos durante el Periodo de Prórroga Adicional, excepto que (i) los incrementos anuales de la Renta Base durante la el Periodo de Prórroga Adicional será conforme a lo pactado en el inciso (B) de la presente Clausula, y (ii) la renta mensual pagadera más el incremento anual correspondiente por el primer año del Periodo de Prórroga Adicional será lo que resulte mayor de (a) la Renta Base más el incremento anual como se contempla en el Arrendamiento por dicho primer año, y (b) el entonces valor de renta de mercado anual por metro cuadrado para renovaciones de arrendamientos de edificios industriales comparables ubicados en Tijuana, Baja California, multiplicado por los Metros Cuadrados Alquilables (como se define en el siguiente enunciado) del Inmueble. Los Metros Cuadrados Alquilables del Edificio incluirán todas las áreas de almacén, producción, soporte, servicios públicos, oficinas, cafetería, vestuarios y otras áreas cerradas del edificio que se encuentren dentro del Inmueble al momento del aviso de renovación, pero no incluirán ninguna de las áreas de estacionamiento, patio de maniobras o caseta de vigilancia. Dicho valor de renta anual de mercado será determinado como se describe a continuación. Dentro de los 30 días siguientes a que la Arrendataria ejerza su opción de prorrogar la Vigencia, la Arrendadora propondrá a la Arrendataria el valor de renta del mercado; dentro de los 30 días a partir de entonces, la Arrendataria podrá aceptar dicha determinación (la falta de respuesta será considerada como aceptación durante dicho período) o, si la Arrendataria no está de acuerdo con dicha determinación, la Arrendataria manifestará por escrito a la Arrendadora, la determinación de la Arrendataria del valor de renta del mercado. Si, luego de los 30 días siguientes, las partes no se ponen de acuerdo sobre el mercado, alquiler, valor, dentro de veinte (20) días después de dicho fracaso para ponerse de acuerdo, las Partes deberán juntos señalar un valuador MAI (o el equivalente mexicano) que cuente con al menos cinco (5) años de experiencia en arrendamientos industriales y de almacenes en los alrededores de Tijuana, Baja California. Si la Arrendadora y la Arrendataria no logran ponerse de acuerdo en designar un valuador, entonces el valuador será nombrado por un panel de árbitros de la Asociación Americana de Arbitraje (o su sucesor) para definir que valuador reúne, en la medida de lo posible, los requisitos establecidos anteriormente. Dentro de un término de cuarenta y cinco (45) días siguientes a su consulta, el valuador determinará el valor justo de renta del Inmueble que sea aplicable a la Periodo de Prórroga Adicional y seleccionará cualesquier de los valores del mercado de rentas establecidos en la propuesta inicial de la Arrendadora o la respuesta de la Arrendataria que se acerque más a dicha determinación, la cual deberá, para todos los efectos señalados en el presente Arrendamiento, ser considerada, como el valor de renta justa del mercado. La determinación del valuador será vinculativa, final y determinante para las Partes. Los honorarios y gastos del valuador y todos los costos incurridos en relación con el nombramiento del valuador serán compartidos en un porcentaje del 50% y 50% entre la Arrendadora y la Arrendataria. |
(B) The monthly base rent payable during the Additional Extension Term shall be subject to escalation as follows: | (B) La renta mensual base pagadera durante el Periodo de Prórroga Adicional estará sujeta a escalonamiento como a continuación se indica: | |||||||
For purposes of this Amendment Agreement and the Lease, the following terms shall have the following meanings. | Para los fines de este Convenio Modificatorio y el Arrendamiento, los siguientes términos tendrán los siguientes significados. | |||||||
“Base Index” shall mean the CPI Index for the second month previous to the month in which the Additional Extension Term begins. | “Índice Base” significa el Índice IPC para el segundo mes previo al mes en que inicie el Periodo de Prórroga Adicional. | |||||||
“CPI Charges” shall mean the annual rental adjustment calculated and payable in accordance with this provision. | “Cargos IPC” significa el ajuste anual de la renta calculado y pagadero en los términos de la presente cláusula. | |||||||
“CPI Index” shall mean the Consumer Price Index presently designated as the United States Department of Labor, Bureau of Labor Statistics Consumer Price Index for all Urban Consumers, U.S. City Average, “All Items” (1982-1984 equals 100). In the event that the statistics are not available or in the event that publication of the Consumer Price Index is modified or discontinued in its entirety, the adjustment provided for herein shall be made on the basis of an index chosen by Landlord as a comparable and recognized index of purchasing power of the United States consumer dollar published by the U.S. Department of Labor or other governmental agency. In the event that the CPI Index is not published for the months required for the calculation set forth herein, the parties shall utilize the Consumer Price Index of the previous month preceding the month required for such calculation. | “Índice IPC” significa el Índice de Precios al Consumidor designado actualmente por el Departamento de Trabajo de los Estados Unidos, Departamento de Estadísticas Laborales e Índice de Precios al Consumidor para todos los Consumidores Urbanos, Promedio de Ciudades Estadounidenses, “Todos los Artículos” (1982-1984 igual a 100). En caso de que las estadísticas no estén disponibles o en caso de que la publicación del Índice de Precios al Consumidor sea modificada o interrumpida en su totalidad, el ajuste aquí señalado se llevará a cabo con base en el índice que elija la Arrendadora como un índice comparable y reconocido del poder adquisitivo en dólares de los consumidores en los Estados Unidos, publicado por el Departamento de Trabajo de los Estados Unidos o por otra autoridad. En caso de que el Índice IPC no sea publicado para los meses requeridos para realizar el cálculo aquí señalado, las partes utilizarán el Índice de Precios al Consumidor del mes previo al mes en el que deba hacerse el cálculo. | |||||||
“Additional Extension Year” shall mean each twelve (12) month period during the Additional Extension Term from the day of the beginning thereof (or the date in which the succeeding Additional Extension Years begin) and ending on the date which shall be one day prior to the beginning of the thirteenth month from the commencement of the Additional Extension Term (or the date corresponding to the commencement of the Additional Extension Years succeeding the first of them) except that the last Additional Extension Year shall end on the Expiration Date. | “Año de Prórroga Adicional” significa cada período de 12 (doce) meses durante el Periodo de Prórroga Adicional, que iniciará el día en que éste comience (o en la fecha que inicien los subsecuentes Años de Prórroga Adicional) y que finaliza en la fecha que será un día antes del inicio del décimo tercer mes a partir del inicio del Periodo de Prórroga Adicional (o de la fecha que corresponda a la fecha de inicio de los Años de Prórroga Adicional siguientes al primero de ellos), con excepción del último Año de Prórroga Adicional, el cual finalizará en la Fecha de Terminación. |
In addition to the payment of monthly rent payable, from and after the commencement of the second Additional Extension Year, Tenant shall pay CPI Charges, along with applicable value added tax, in monthly installments in the same manner and at the same time as payment of monthly rent. As soon as practicable after the end of the first Additional Extension Year and each succeeding Additional Extension Year during the term of the Lease, Landlord shall notify Tenant in writing of the amount of monthly CPI Charges payable by Tenant to Landlord each month in addition to monthly rent payable for each month of the then current Additional Extension Year. CPI Charges for any Additional Extension Year shall be calculated by multiplying the monthly rent payable by a fraction, the numerator of which shall be the CPI Index for the second month previous to the first month of such Additional Extension Year less the Base Index, and the denominator of which shall be the Base Index. Notwithstanding anything contained in this Amendment Agreement or in the Lease to the contrary, in no event shall the sum of the monthly rent payable and CPI Charges payable in any Additional Extension Year increase at a rate less than three and one-half (3.5%) percent over the sum of the monthly rent payable and CPI Charges payable in the previous Additional Extension Year. Tenant shall continue making such monthly payments, in addition to monthly rent payable, until receipt of notice from Landlord of the actual CPI Charges due from Tenant for such Additional Extension Year. Tenant shall pay Landlord on the first day of each succeeding month of such Additional Extension Year the adjusted amount due for such month until the commencement of the succeeding Additional Extension Year. The failure or delay by Landlord to deliver a notice with respect to CPI Charges for any Additional Extension Year shall not be deemed a waiver of Landlord's right to deliver such notice or to collect CPI Charges. | Además del pago de la renta mensual pagadera, a partir del inicio del segundo Año de Prórroga Adicional, la Arrendataria deberá pagar los Cargos IPC así como el impuesto al valor agregado aplicable, en mensualidades de la misma forma y al mismo tiempo en que pague la renta mensual. Tan pronto como sea posible después del término del primer Año de Prórroga Adicional y cada Año de Prórroga Adicional siguiente durante la vigencia del Arrendamiento, la Arrendadora notificará a la Arrendataria por escrito el importe mensual de los Cargos IPC que deberá pagar la Arrendataria a la Arrendadora cada mes, además de la renta mensual pagadera para cada mes del Año de Prórroga Adicional vigente en ese momento. Los Cargos IPC para cualquier Año de Prórroga Adicional serán calculados multiplicando la renta mensual pagadera por una fracción, cuyo numerador será el Índice IPC del segundo mes previo al primer mes de dicho Año de Prórroga Adicional, menos el Índice Base, y cuyo denominador será el Índice Base. No obstante cualquier disposición en contrario contenida en este Convenio Modificatorio o en el Arrendamiento, en ningún caso la suma de la renta mensual pagadera y los Cargos IPC que deban pagarse en cualquier Año de Prórroga Adicional, aumentarán en un porcentaje de menos del [***]% ([***]) de la suma de la renta mensual pagadera y los Cargos IPC pagaderos durante el Año de Prórroga Adicional previo. La Arrendataria seguirá pagando las mensualidades mencionadas, además de la renta mensual pagadera, hasta que reciba aviso de la Arrendadora sobre los Cargos IPC reales que adeude la Arrendataria para dicho Año de Prórroga Adicional. La Arrendataria pagará a la Arrendadora el primer día de cada mes siguiente al Año de Prórroga Adicional el importe ajustado insoluto para dicho mes, hasta el inicio del Año de Prórroga Adicional siguiente. El incumplimiento o mora por parte de la Arrendadora en entregar el aviso respecto de los Cargos IPC para cualquier Año de Prórroga Adicional, no será considerado como la renuncia del derecho de la Arrendadora de entregar el aviso o de cobrar los Cargos IPC. | |||||||
5. Insurance. Notwithstanding Tenants obligation to contract all of the Insurances contained in clause Twelve of the Lease, Parties hereby agree that Landlord additionally will maintain during the Term of the Lease an all risk insurance to cover the Buildings replacement value and that Tenant shall reimburse Landlord in a yearly manner the premium of such insurance up to a maximum amount of USD$[***] ([***]) (the Reimbursement CAP) for the first year of this Extension Term. Such Reimbursement CAP shall increase at a rate of [***]% annually during the Term of the Lease. | 5. Seguro. Sin perjuicio de que es obligación de la Arrendataria contratar los seguros contenidos en la Clausula Décima Segunda, las Partes reconocen que la Arrendadora, por así convenir sus intereses, adicionalmente mantendrá durante la vigencia del Arrendamiento un seguro de todo riesgo por el valor de reposición del Edificio y la Arrendataria a partir de este momento se compromete a reembolsar anualmente a la Arrendadora la prima de dicho seguro hasta por la cantidad de USD$[***] ([***]) (el Tope de Reembolso) para el primer año de éste Periodo de Prorroga. Dicho Tope de Reembolso será incrementado a una tasa del [***]% anual durante la Vigencia del Arrendamiento. |
6. Insurance Reimbursement. Tenant shall, within ten (10) business days after invoice therefor (accompanied by appropriate back-up), reimburse Landlord for any premiums for all risk insurance maintained by Landlord pursuant to Clause 5 herein, up to the Reimbursement CAP subject to the yearly increases contained in the above clause. Amounts not paid within such ten (10) business day period shall bear interest at the rate set forth in Clause 7.4 of the Lease. | 6. Reembolso de Seguro. La Arrendataria, dentro de los 10 (diez) días hábiles siguientes a la fecha de la factura correspondiente (misma que deberá acompañarse de la copia correspondiente) deberá rembolsar a la Arrendadora las primas por el seguro de todo riesgo que tiene contratado la Arrendadora en los términos de la Clausula 5 aquí contenida, hasta por el Tope del Reembolso, sujeto a los incrementos contenidos en la cláusula que antecede. Los importes no pagados durante dicho período de 10 (diez) días hábiles estarán sujetos a un interés a la tasa establecida en la Cláusula 7.4 del Arrendamiento. | |||||||
6. Maintenance Report. Both parties agree to carry out an inspection visit to the Building at least once each year during the Term of the Lease so that Landlord can evaluate and/or follow up compliance with Tenant’s obligations arising from Clause 6.1 and hereby undertake to execute a report based on the form attached hereto as Exhibit “N” on which representatives of the Parties will record the pending obligations to be performed by Tenant that arise from said visits. | 6. Reporte de Mantenimiento. Las Partes convienen en realizar una visita de inspección al Inmueble por lo menos una vez cada año durante la Vigencia del Contrato, a efecto de que la Arrendadora pueda evaluar y/o dar seguimiento al cumplimiento de las obligaciones de la Arrendataria contenidas en la Cláusula 6.1 y se obligan a suscribir un acta con base en el formato que se adjunta al presente como Anexo “N” mediante el cual representantes de las Partes harán constar las obligaciones pendientes de hacer que se deriven de dichos recorridos. | |||||||
7. Brokers. Tenant represents and warrants to Landlord that it shall be solely liable for the payment of any commissions to Tenant’s brokers or advisors. Tenant shall defend, indemnify and hold Landlord harmless from and against any and all liability, loss, damage, expense, claim, action, demand, suit or obligation arising out of or relating to a breach of the foregoing representation and such obligations shall survive the expiration or sooner termination of this Amendment Agreement. | 7. Corredores. La Arrendataria declara y garantiza a la Arrendadora que será la única responsable por el pago de cualesquier comisiones a sus corredores o asesores. La Arrendataria defenderá, indemnizará y sacará en paz y a salvo a la Arrendadora de toda responsabilidad, pérdida, daño, gasto, reclamación, acción, demanda, litigio u obligación derivada o relacionada con el cumplimiento a las declaraciones señaladas anteriormente y tales obligaciones prevalecerán a la expiración o terminación anticipada del presente Convenio Modificatorio. | |||||||
8. Declarations in Scope of the Ley Anti-Lavado. In order to comply with the obligations of the Federal Law for the Prevention and Identification of Operations with Illicit Resources (Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Porcedencia Ilícita) (hereinafter the “Ley Anti-Lavado”), Tenant agrees to the following: | 8. Declaraciones Ley Antilavado. A fin de dar cumplimiento con las obligaciones derivadas de la Ley Federal para la Prevención e Identificación de Operaciones con Recursos de Procedencia Ilícita (en lo sucesivo la “Ley Anti-Lavado”), la Arrendataria se obliga a lo siguiente: | |||||||
(i) Deliver to Landlord a copy of the Tax Identity Card (Cédula de Identificación Fiscal), and any actualization of data before the Tax Administration Service (Servicio de Administración Tributaria), in the month in which the change is made. | (i) Entregar a la Arrendadora copia de la cédula de identificación fiscal y de cualquier actualización de datos ante el Servicio de Administración Tributaria, dentro del mes en que se realice el cambio. | |||||||
(ii) Provide Landlord (i) a copy of an official identification of its representatives, (ii) a copy of the Unique Population Registry Key (CURP), or a copy of the Tax Identification Card (Cédula de Identificación Fiscal) of their representatives, in addition Tenant shall deliver to Landlord a copy of the above documents in case of a change of representatives, within the month in which the change is made. | (ii) Entregar a la Arrendadora (i) copia de identificación oficial de sus apoderados, (ii) copia de la Clave Única de Registro Poblacional (CURP), o copia de la cédula de identificación fiscal de sus apoderados, así mismo entregará copia de los documentos mencionados anteriormente en caso de algún cambio de apoderado, dentro del mes en que se realice dicho cambio. |
(iii) Deliver to Landlord a copy of the Tax Identity Card of the Controlling Beneficiary, or the articles of incorporation of the Controlling Beneficiary; in addition Tenant shall deliver to Landlord a copy of the documents mentioned here, in case of any change in the Controlling Beneficiary or Beneficiaries, within the month in which the change is made. | (iii) Entregar a la Arrendadora copia de la cédula de identificación fiscal del o de los Beneficiarios Controladores, o acta constitutiva de los Beneficiarios Controladores; así mismo entregará copia de los documentos que aquí se menciona en caso de algún cambio de Beneficiario Controlador, dentro del mes en que se realice dicho cambio. | |||||||
(iv) Simultaneously with the execution of this Amendment Agreement, Tenant shall deliver to Landlord the document identified as Declarations in Scope of the Ley Anti-Lavado, in the format attached hereto as Exhibit “L”, which shall be signed by the Tenant under oath; by which Tenant also agrees to deliver to Landlord within the month in which a change is made to the information previously provided in the Declarations in Scope of the Ley Anti-Lavado, the corresponding update in the format contained in Exhibit “L”. | (iv) Simultáneamente a la firma del presente Contrato Modificatorio, la Arrendataria entregará a la Arrendadora el documento identificado como Declaraciones en Alcance a la Ley Anti-Lavado, en el formato que se adjunta al presente Convenio Modificatorio como Anexo “L”, mismo que es suscrito por la Arrendataria bajo protesta de decir verdad; y por medio del cual se compromete a entregar a la Arrendadora, dentro del mes en que ocurra algún cambio a la información previamente proporcionada en las Declaraciones en Alcance a la Ley Anti-Lavado, la actualización correspondiente en el formato contenido en el Anexo “L”. | |||||||
(v) Tenant agrees to deliver to Landlord the updates of the Declarations in Scope of the Ley Anti-Lavado, which is attached to the present Amendment Agreement. as Exhibit “L”, at the request of the Landlord, within twenty (20) business days following such request. | (v) La Arrendataria se obliga a entregar a la Arrendadora la actualización a las Declaraciones en Alcance a la Ley Anti-lavado en el formato que se adjunta al presente Convenio Modificatorio como Anexo “L”, a solicitud de la Arrendadora, dentro de los 20 (veinte) días hábiles siguientes a dicha solicitud. | |||||||
(vi) Tenant agrees to provide Landlord with any and all additional information reasonably required by the Landlord in order to comply with the obligations under the Ley Anti-Lavado. | (vi) La Arrendataria se obliga a proporcionar a la Arrendadora cualquier información adicional que sea razonablemente requerida por la Arrendadora para dar cumplimiento con las obligaciones contenidas en la Ley Anti-Lavado | |||||||
9. Guarantor. Guarantor hereby consents on the terms of this Amendment Agreement, and expressly acknowledges and agrees that the Guaranty of Lease granted by the same in favor of Landlord on October 5, 2012, shall remain valid, in full force and effects after this Amendment Agreement. | 9. Garante. El Garante en este acto consiente en los términos de este Convenio Modificatorio, y expresamente reconoce y acepta que la Garantía de Arrendamiento que otorgó con fecha 5 de octubre de 2012, permanecerá válida, vigente y con plenos efectos legales aun después de este Convenio Modificatorio. | |||||||
10. No Other Modification. Except as modified by this Amendment Agreement, the Lease and all covenants, agreements, terms and conditions thereof (including, without limitation, the recitals) shall remain in full force and effect and are hereby in all respects ratified and confirmed. | 10. Ninguna otra modificación. A excepción de lo Estipulado por este Convenio Modificatorio, el Arrendamiento y todos los convenios, contratos, términos, condiciones del mismo (incluyendo, sin limitación, las declaraciones) deberán mantenerse en pleno vigor y efecto y por medio del presente en todos sus puntos se ratifican y confirman. | |||||||
11. Language. This Amendment Agreement has been prepared in English and Spanish. In case of conflicts in the translation or interpretation thereof, the Spanish version will control. | 11. Idioma. Este Convenio Modificatorio ha sido preparado en inglés y en español. En caso de conflicto en la traducción o interpretación, la versión en español será la que prevalecerá. |
12. Jurisdiction. Any dispute, controversy or claim arising out of or related to this Amendment Agreement or a breach hereof, shall be resolved pursuant to the applicable laws and under the jurisdiction of the competent courts of Tijuana, Baja California,, to which the Parties hereby expressly agree to submit, waiving any other jurisdiction which might be applicable by reason of their present or future domiciles or otherwise. | 12. Jurisdicción. Para cualquier disputa, controversia o reclamación derivada o relacionada con el presente Convenio Modificatorio o el incumplimiento con el mismo, será resuelto por las leyes aplicables y los Tribunales competentes de Tijuana, Baja California, y las Partes en este acto acuerdan someterse a la jurisdicción de dichos tribunales, renunciando a cualquier otro fuero que pudiera corresponderles por motivo de sus domicilios presente o futuros, o por cualquier otro motivo. | |||||||
IN WITNESS WHEREOF, the Parties have executed this Amendment Agreement as of the day and year first above written, with retroactive effect as of August 17, 2023. | EN VIRTUD DE LO CUAL, las Partes celebran el presente Convenio Modificatorio en la fecha antes mencionada, "con efectes retroactives al dia 17 de agosto del ano 2023." | |||||||
Landlord / Arrendadora: Santa Maria Industrial Partners, L.P. By/Por: /s/ Marcelo Durán Roux Name/Nombre: Marcelo Durán Roux Its/Su: Representante Legal / Legal Representative | Tenant / Arrendataria: Haemonetics México Manufacturing, S. de R.L. de C.V. By/Por: /s/ James D’Arecca Name/Nombre: James D’Arecca Its/Su: Representante Legal / Legal Representative | |||||||
Guarantor / Garante: Haemonetics Corporation By/Por: /s/ James D’Arecca Name/Nombre: James D’Arecca Its/Su: Executive Vice President, Chief Financial Officer | By/Por: /s/ Josep Llorens Name/Nombre: Josep Llorens Its/Su: Representante Legal / Legal Representative |
1. | Basic Lease Information……………………………………………………………….. | 1 | ||||||
2. | Lease Grant. ……………………………………………………………………………. | 4 | ||||||
3. | Term and Commencement Date………………………………………………………. | 5 | ||||||
4. | Rent……………………………………………………………………………………… | 6 | ||||||
5. | Compliance with Laws; Use…………………………………………………………… | 6 | ||||||
6. | Letter of Credit…………………………………………………………………………. | 8 | ||||||
7. | Building Services……………………………………………………………………….. | 8 | ||||||
8. | Alterations…………………………………………………………………………….… | 10 | ||||||
9. | Repairs and Maintenance……………………………………………………………… | 12 | ||||||
10. | Entry by Landlord……………………………………………………………………… | 13 | ||||||
11. | Assignment and Subletting. …………………………………………………………… | 13 | ||||||
12. | Notices………………………………………………………………………………….... | 15 | ||||||
13. | Indemnity and Insurance………………………………………………………………. | 16 | ||||||
14. | Casualty Damage……………………………………………………………………..… | 18 | ||||||
15. | Condemnation…………………………………………………………………………... | 19 | ||||||
16. | Events of Default………………………………………………………………………... | 20 | ||||||
17. | Limitation of Liability…..……………………………………………………………… | 22 | ||||||
18. | Holding Over……………………………………………………………………………. | 24 | ||||||
19. | Surrender of Premise………...…………………………………………………………. | 24 | ||||||
20. | Subordination to Mortgages; Estoppel Certificate……………………………………. | 25 | ||||||
21. | Miscellaneous……………………………………………………………………………. | 26 |
Period | Annual Base Rent Rate Per Square Foot of Rentable Floor Area * | Monthly Base Rent | ||||||
Lease Year 1: | $[***] | $[***] | ||||||
Lease Year 2: | $[***] | $[***] | ||||||
Lease Year 3: | $[***] | $[***] | ||||||
Lease Year 4: | $[***] | $[***] | ||||||
Lease Year 5: | $[***] | $[***] | ||||||
Lease Year 6: | $[***] | $[***] | ||||||
Lease Year 7: | $[***] | $[***] |
Lease Year 8: | $[***] | $[***] | ||||||
Lease Year 9: | $[***] | $[***] | ||||||
Lease Year 10: | $[***] | $[***] | ||||||
Lease Year 11: | $[***] | $[***] | ||||||
Lease Year 12: | $[***] | $[***] |
For Landlord: | For Tenant: | ||||
OPG 125 Summer Owner (DE) LLC c/o Oxford Properties Group 125 Summer Street Boston, MA 02110 Attention: Director of Leasing OPG 125 Summer Owner (DE) LLC c/o Oxford Properties Group 125 Summer Street Boston, Massachusetts 02110 Attention: Director of Legal | Prior to the Term Commencement Date: Haemonetics Corporation 400 Wood Road Braintree, MA 02184-9114 Attention: SVP, Global Business Services With a copy to: Haemonetics Corporation 400 Wood Road Braintree, MA 02184-9114 Attention: Executive Vice President and General Counsel From and after the Term Commencement Date: Haemonetics Corporation 125 Summer Street Boston, Massachusetts 02110 Attention: SVP, Global Business Services With a copy to: Haemonetics Corporation 125 Summer Street Boston, Massachusetts 02110 Attention: Executive Vice President and General Counsel | ||||
LANDLORD: | |||||
OPG 125 SUMMER OWNER (DE) LLC, a Delaware limited liability company By: /s/ Chad Remis Name: Chad Remis Title: Vice President By: /s/ Kristen E. Binck Name: Kristen E. Binck Title: Assistant Secretary | |||||
TENANT: | |||||
HAEMONETICS CORPORATION, a Massachusetts corporation By: /s/ Christopher Simon Name: Christopher Simon Title: President and Chief Executive Officer |
/s/ Christopher A. Simon | ||||||||||||||
Christopher A. Simon, President and Chief Executive Officer | ||||||||||||||
(Principal Executive Officer) |
/s/ James C. D'Arecca | ||||||||||||||
James C. D'Arecca, Executive Vice President, Chief Financial Officer | ||||||||||||||
(Principal Financial Officer) |
/s/ Christopher A. Simon | ||||||||||||||
Christopher A. Simon, | ||||||||||||||
President and Chief Executive Officer |
/s/ James C. D'Arecca | ||||||||||||||
James C. D'Arecca, | ||||||||||||||
Executive Vice President, Chief Financial Officer |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Income Statement [Abstract] | ||||
Net revenues | $ 336,250 | $ 305,301 | $ 965,765 | $ 864,244 |
Cost of goods sold | 158,383 | 146,594 | 450,123 | 405,396 |
Gross profit | 177,867 | 158,707 | 515,642 | 458,848 |
Operating expenses: | ||||
Research and development | 13,265 | 12,689 | 38,578 | 34,487 |
Selling, general and administrative | 111,713 | 94,661 | 310,099 | 278,917 |
Amortization of acquired intangible assets | 6,911 | 8,078 | 21,606 | 24,666 |
Impairment of assets | 0 | 0 | 10,419 | 0 |
Total operating expenses | 131,889 | 115,428 | 380,702 | 338,070 |
Operating income | 45,978 | 43,279 | 134,940 | 120,778 |
Interest and other expense, net | (1,949) | (1,055) | (6,489) | (12,001) |
Income before provision for income taxes | 44,029 | 42,224 | 128,451 | 108,777 |
Provision for income taxes | 12,788 | 9,280 | 31,260 | 22,759 |
Net income | $ 31,241 | $ 32,944 | $ 97,191 | $ 86,018 |
Basic income (loss) per share (in dollars per share) | $ 0.62 | $ 0.65 | $ 1.92 | $ 1.69 |
Diluted income (loss) per share (in dollars per share) | $ 0.61 | $ 0.64 | $ 1.89 | $ 1.67 |
Weighted average shares outstanding | ||||
Basic (in shares) | 50,768 | 50,509 | 50,679 | 50,896 |
Diluted (in shares) | 51,445 | 51,219 | 51,394 | 51,487 |
Comprehensive income | $ 39,564 | $ 37,400 | $ 103,190 | $ 76,173 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Dec. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 5,725 | $ 4,932 |
Intangible assets, amortization | $ 442,810 | $ 417,422 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 50,785,040 | 50,448,519 |
Common stock, shares outstanding (in shares) | 50,785,040 | 50,448,519 |
BASIS OF PRESENTATION |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | 1. BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited condensed consolidated financial statements of Haemonetics Corporation (“Haemonetics” or the “Company”) presented herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of the Company’s management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany transactions have been eliminated. Operating results for the nine months ended December 30, 2023 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 30, 2024 or any other interim period. These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the fiscal year ended April 1, 2023. 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 as of or for the nine months ended December 30, 2023.
|
RECENT ACCOUNTING PRONOUNCEMENTS |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | 2. RECENT ACCOUNTING PRONOUNCEMENTS Standards to be Implemented In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Codification (“ASC”) Update No. 2023-07, Segment Reporting (Topic 280). The new guidance requires public entities to provide expanded disclosures over significant segment expenses and additional disclosures related to the chief operating decision maker. ASC Update No. 2023-07 is effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The new guidance is applicable to Haemonetics beginning with the fiscal 2025 Annual Report on Form 10-K. The Company is currently evaluating the impact to its interim and annual report disclosures. In December 2023, the FASB issued ASC Update No. 2023-09, Income Taxes (Topic 740). ASC Update No. 2023-09 requires public entities to provide detailed income tax disclosures, including rate reconciliations and disaggregated income tax payment information, on an annual basis. The updated guidance is effective for fiscal years beginning after December 15, 2024 and early adoption is permitted. ASC Update No. 2023-09 is applicable to Haemonetics beginning with the fiscal 2026 Annual Report on Form 10-K and the Company is currently evaluating the impact to its annual report disclosures.
|
ACQUISITIONS AND STRATEGIC INVESTMENTS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, All Other Investments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mergers, Acquisitions and Dispositions Disclosures | Strategic Investments As part of the Company’s business development activities, it holds strategic investments in certain entities. During fiscal 2024, the Company has made strategic investments totaling $7.6 million. During fiscal year 2023, the Company made investments in Vivasure Medical LTD (“Vivasure”), totaling €30 million. The investments in Vivasure include both preferred stock and a special share that allows the Company to acquire Vivasure in accordance with an agreement between the parties. The Company’s strategic investments are classified as other long-term assets on the Company’s Condensed Consolidated Balance Sheets and the Company has not recorded any adjustments to the carrying value of the strategic investments during three and nine months ended December 30, 2023. Acquisition of OpSens, Inc. On October 10, 2023, the Company announced it had entered into an Arrangement Agreement with OpSens, Inc. (“OpSens”), a medical device cardiology-focused company delivering solutions based on its proprietary optical technology, pursuant to which, among other things, the Company agreed to acquire all of the issued and outstanding common shares of OpSens. On December 12, 2023, the Company completed its acquisition of OpSens for total consideration of approximately $254.5 million, or $243.9 million, net of cash acquired. The Company financed the acquisition through a combination of cash on hand and borrowings under its revolving credit facility. OpSens offers commercially and clinically validated optical technology for use primarily in interventional cardiology. OpSens’ core products include the SavvyWire®, a sensor-guided 3-in-1 guidewire for TAVR procedures, advancing the workflow of the procedure and enabling potentially shorter hospital stays for patients; and the OptoWire®, a pressure guidewire that aims to improve clinical outcomes by accurately and consistently measuring Fractional Flow Reserve (FFR) and diastolic pressure ratio (dPR) to aid clinicians in the diagnosis and treatment of patients with coronary artery disease. OpSens also manufactures a range of fiber optic sensor solutions used in medical devices and other critical industrial applications. The addition of OpSens expands the Hospital business unit portfolio in the interventional cardiology market and will be included in the Hospital reportable segment. Purchase Price Allocation The Company accounted for the acquisition 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 fair values as of the acquisition date. The fair value of assets acquired and liabilities assumed have been recognized based on management’s estimates and assumptions using the information regarding facts and circumstances that existed at the closing date. The assessment of fair value is preliminary and is based on information that was available at the time the consolidated financial statements were prepared. The most significant open items include the valuation of certain intangible assets and the accounting for income taxes as the Company is awaiting additional information to complete its assessment of these matters. Measurement period adjustments will be recorded in the period in which they are determined, as if they had been completed at the acquisition date. The finalization of the Company’s purchase accounting assessment could result in changes in the valuation of assets acquired and liabilities assumed, which could be material. The final determination of the fair value of certain assets and liabilities will be completed within the measurement period as required by Topic 805. As of December 30, 2023, the valuation studies necessary to determine the fair market value of the assets acquired and liabilities assumed are preliminary, including the projection of the underlying cash flows used to determine the fair value of the identified tangible, intangible and financial assets and liabilities. The purchase price of $243.9 million, net of $10.6 million of cash acquired consists of the amounts presented below, which represent the preliminary determination of the fair value of the identifiable assets acquired and liabilities assumed:
The Company determined the identifiable intangible assets were developed technology, customer contracts and related relationships and trade names. The fair values of intangible assets were based on valuation techniques with estimates and assumptions developed by the Company. Developed technology and customer contracts and related relationships were valued using the excess earnings 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. As of December 30, 2023, the valuation of the intangible assets is preliminary as the Company is still gathering information related to the assets’ cash flow projections. 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 OpSens, the Company recognized goodwill of $87.1 million based on expected synergies from integration into our Hospital business. 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 net deferred tax liability of $30.3 million primarily related to definite-lived 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 Company incurred $6.6 million of acquisition-related costs for the nine months ended December 30, 2023 in connection with the acquisition. These costs related to legal and other professional fees, which were recognized in selling, general and administrative on the Condensed Consolidated Statements of Income. The Company’s condensed consolidated financial statements include the results of OpSens from the date the acquisition was completed. Pro forma financial information has not been presented as the acquisition is not material to the Company’s overall financial results.
|
REVENUE |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | 4. 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 December 30, 2023, the Company had $23.5 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 86% 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 and contract assets, as well as customer advances, customer deposits and deferred revenue (contract liabilities) on the Condensed 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 December 30, 2023 and April 1, 2023, the Company had contract liabilities of $31.1 million and $30.2 million, respectively. During the three and nine months ended December 30, 2023, the Company recognized $4.9 million and $25.4 million of revenue, respectively, that was included in the above April 1, 2023 contract liability balance. Contract liabilities are classified as other current liabilities on the Condensed Consolidated Balance Sheet. As of December 30, 2023 and April 1, 2023, the Company’s contract assets were immaterial.
|
RESTRUCTURING |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | 5. RESTRUCTURING On 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. Operating Excellence Program 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 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 expects to incur aggregate charges between $95 million and $105 million by the end of fiscal 2025 under the program. 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 the three and nine months ended December 30, 2023, the Company incurred $2.6 million and $6.8 million, respectively, of restructuring and restructuring related costs under this program. During the three and nine months ended December 31, 2022, the Company incurred $4.1 million and $10.7 million, respectively, of restructuring and restructuring related costs under this program. Total cumulative charges under this program are $74.0 million. Portfolio Rationalization Initiatives In November 2023, the Company announced its plans to end of life the ClotPro analyzer system within the Hospital business unit and whole blood inline collection products within the Blood Center business unit, including the associated manufacturing operations and closure of certain other facilities. The following table summarizes the activity for restructuring reserves related to portfolio rationalization initiatives, the 2020 Program and prior programs for the nine months ended December 30, 2023, substantially all of which relates to employee severance and other employee costs:
The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of Income and Comprehensive Income:
As of December 30, 2023, the Company had a restructuring liability of $9.0 million, of which approximately $8.7 million is payable within the next twelve months. In addition to the restructuring expenses included in the table above, the Company also incurred costs 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. The tables below present restructuring and restructuring related costs by reportable segment:
|
INCOME TAXES |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 6. INCOME TAXES 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 differs from the statutory tax rate due to 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 effective tax rate is adversely impacted by non-deductible expenses including executive compensation and transaction costs. For the three and nine months ended December 30, 2023, the Company reported income tax expense of $12.8 million and $31.3 million, respectively, representing effective tax rates of 29.0% and 24.3%, respectively. The effective tax rate for the nine months ended December 30, 2023 includes $1.1 million of discrete tax benefit, of which $2.6 million relates to stock compensation windfalls, partially offset by other discrete items. For the three and nine months ended December 31, 2022, the Company reported income tax expense of $9.3 million and $22.8 million, respectively, representing effective tax rates of 22.0% and 20.9%, respectively. The effective tax rate for the three months ended December 31, 2022 includes $0.1 million of discrete tax expense relating to stock compensation shortfalls. The effective tax rate for the nine months ended December 31, 2022 includes a discrete tax benefit of $0.5 million related to tax rate changes enacted in the period and $0.4 million of discrete tax expense relating to stock compensation shortfalls. The increase in the reported tax rates for the three and nine months ended December 30, 2023, compared to the same periods in fiscal 2023, relates primarily to unfavorable changes in the jurisdictional mix of earnings, research tax credits generated and non-deductible acquisition-related expenses, partially offset by discrete tax benefits from stock compensation windfall deductions.
|
EARNINGS PER SHARE |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE | 7. 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 the three and nine months ended December 30, 2023, weighted average shares outstanding, assuming dilution, excludes the impact of 0.6 million anti-dilutive shares for both periods. For the three and nine months ended December 31, 2022, weighted average shares outstanding, assuming dilution, excludes the impact and 0.4 million and 0.7 million anti-dilutive shares, respectively. Share Repurchase Program In August 2022, the Company announced that its Board of Directors had approved a three-year share repurchase program authorizing the repurchase of up to $300.0 million of Haemonetics common stock, based on market conditions, through August 2025. Under the share repurchase program, the Company is authorized to repurchase, from time to time, outstanding shares of common stock in accordance with applicable laws on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended, and in privately negotiated transactions. The actual timing, number and value of shares repurchased will be determined by the Company at its discretion and will depend on a number of factors, including market conditions, applicable legal requirements and compliance with the terms of loan covenants. The share repurchase program may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common stock under the program. In fiscal 2023, the Company completed a $75.0 million repurchase of its common stock pursuant to an accelerated share repurchase agreement entered into with Citibank N.A. in August 2022. As of December 30, 2023, the total remaining authorization for repurchases of the Company's common stock under the share repurchase program was $225.0 million.
|
INVENTORIES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | 8. 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.
|
PROPERTY, PLANT AND EQUIPMENT |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY, PLANT AND EQUIPMENT | 9. PROPERTY, PLANT AND EQUIPMENT
During the three and nine months ended December 30, 2023, depreciation expense was $14.2 million and $41.1 million, respectively. During the three and nine months ended December 31, 2022, depreciation expense was $13.1 million and $37.7 million, respectively. Beginning in the second quarter of fiscal 2024, $4.3 million of the Company’s property, plant and equipment met held for sale accounting criteria and was reclassed to Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.
|
LEASES |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Leases [Abstract] | |
LEASES | 10. LEASES Lessor Activity Assets on the Company’s balance sheet classified as Haemonetics equipment primarily consist 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 approximately 3 percent of the Company’s total net sales.
|
GOODWILL AND INTANGIBLE ASSETS |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | 11. GOODWILL AND INTANGIBLE ASSETS The changes in the carrying amount of goodwill by operating segment for fiscal 2024 are as follows:
The gross carrying amount of intangible assets and the related accumulated amortization as of December 30, 2023 and April 1, 2023 is as follows:
During the third quarter of fiscal 2024, the Company acquired OpSens and recorded $121.6 million of developed technology, $53.9 million of customer contracts and related relationships and $5.0 million of trade names based on our preliminary purchase accounting valuation. Refer to Note 3, Acquisitions and Strategic Investments, for additional information regarding the acquisition. 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. In the second quarter of fiscal 2024, the Company recorded an intangible asset impairment charge of $10.4 million related to the intangibles acquired as part of the enicor GmbH acquisition completed in fiscal 2021 within the Hospital business unit. During the three and nine months ended December 30, 2023, amortization expense was $9.3 million and $28.5 million, respectively. During the three and nine months ended December 31, 2022, amortization expense was $10.4 million and $31.7 million, respectively. Future annual amortization expense on intangible assets for the next five years is estimated to be as follows:
|
NOTES PAYABLE AND LONG-TERM DEBT |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | 12. NOTES PAYABLE AND LONG-TERM DEBT Convertible Senior Notes The Company has $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 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. During third quarter of fiscal 2024, the conditions allowing holders of the 2026 Notes to convert have not been met. The 2026 Notes were therefore not convertible as of December 30, 2023 and were classified as long-term debt on the Company’s Condensed Consolidated Balance Sheets. As of December 30, 2023, the $500.0 million principal balance was netted down by the $5.9 million of remaining debt issuance costs, resulting in a net convertible note payable of $494.1 million. Interest expense related to the 2026 Notes was $0.7 million and $2.0 million for the three and nine months ended December 30, 2023, respectively, 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%. Credit Facilities On June 15, 2018, the Company entered into a credit agreement with certain lenders that provided for a $350.0 million term loan and a $350.0 million revolving credit facility (together with the term loan, as amended from time to time, the “2018 Credit Facilities”) that were each scheduled to mature on June 15, 2023. On July 26, 2022, the Company entered into an amended and restated credit agreement with certain lenders to refinance the 2018 Credit Facilities and extend their maturity date through June 2025. The amended and restated credit agreement provides for a $280.0 million senior unsecured term loan, the proceeds of which have been used to settle the balance of the term loan under the 2018 Credit Facilities, and a $420.0 million senior unsecured revolving credit facility (together, the “Revised Credit Facilities”). Loans under the Revised Credit Facilities bear interest at an annual rate equal to the Adjusted Term SOFR Rate (as specified in the amended and restated credit agreement), which is subject to a floor of 0%, plus an applicable rate ranging from 1.125% to 1.750% based on the Company’s consolidated net leverage ratio (as specified in the amended and restated credit agreement) at the applicable measurement date. Adjusted Term SOFR Rate loans are also subject to a credit spread adjustment of 0.10% per annum. The revolving credit facility carries an unused fee that ranges from 0.125% to 0.250% annually based on the Company’s consolidated net leverage ratio at the applicable measurement date. Under the Revised Credit Facilities, the Company is required to maintain certain leverage and interest coverage ratios specified in the amended and restated credit agreement as well as other customary non-financial affirmative and negative covenants. The Revised Credit Facilities mature on June 15, 2025. The principal amount of the term loan under the Revised Credit Facilities is repayable quarterly through the maturity date at a rate of 2.5% for the first year and 5% thereafter, with the unpaid balance due at maturity. The Company applied modification accounting for the credit facility refinancing. For the term loan under the Revised Credit Facilities, for fiscal 2023, the Company recognized interest expense of $0.5 million for third party fees incurred and capitalized $0.2 million of lender fees related to the term loan. For fiscal 2023, the Company capitalized $1.1 million of lender fees and third-party costs incurred in the refinancing related to the revolving credit facility under the Revised Credit Facilities. At December 30, 2023, $266.0 million was outstanding under the term loan with an effective interest rate of 6.8%. The Company has scheduled principal payments of $14.0 million required during the 12 months following December 30, 2023. During the third quarter of fiscal 2024 in connection with the acquisition of OpSens, the Company borrowed $110.0 million under the revolving credit facility, with an effective interest rate of 6.7%, which remains outstanding as of December 30, 2023. The Company also had $20.1 million of uncommitted operating lines of credit to fund its global operations under which there were no outstanding borrowings as of December 30, 2023. The Company was in compliance with the leverage and interest coverage ratios specified in the Revised Credit Facilities as well as all other bank covenants as of December 30, 2023.
|
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 13. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The Company manufactures, markets and sells its products globally. During the three and nine months ended December 30, 2023, 25.4% and 25.0%, respectively, 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 Japanese Yen and Euro, and to a lesser extent, Swiss Franc and 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 December 30, 2023 and April 1, 2023 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 $20.5 million as of December 30, 2023 and $51.8 million as of April 1, 2023. At December 30, 2023, a gain of $2.0 million, net of tax, will be reclassified to earnings within the next twelve months. All currency cash flow hedges outstanding as of December 30, 2023 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 $38.1 million as of December 30, 2023 and $44.7 million as of April 1, 2023. Interest Rate Swaps 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. On June 15, 2018, the Company entered into the 2018 Credit Facilities, which provided for a $350.0 million term loan and a $350.0 million revolving credit facility. In August 2018, the Company entered into two interest rate swap agreements to pay an average fixed rate of 2.80% plus the applicable rate on a total notional value of $241.9 million of debt, or 70% of the notional value of the unsecured term loan. As a result of the Company’s refinancing of the 2018 Credit Facilities in July 2022, as discussed below, the 2018 interest rate swaps were amended in September 2022 to align with the Term Secured Overnight Financing Rate (“SOFR”) rate rather than LIBOR (the “Amended Swaps”). In order to avoid dedesignation, the Company elected certain practical expedients under ASC 848. As a result, the Company’s earnings and cash flows are exposed to interest rate risk from changes to SOFR. The Amended Swaps matured on June 15, 2023. On July 26, 2022, the Company entered into an amended and restated credit agreement to refinance the 2018 Credit Facilities and extend their maturity date through June 2025. The Revised Credit Facilities include a $280.0 million senior unsecured term loan and a $420.0 million senior unsecured revolving credit facility. Loans under the Revised Credit Facilities bear interest at an annual rate equal to the 1-month USD Term SOFR plus 0.10% and an applicable rate ranging from 1.125% to 1.750% based on the Company’s consolidated net leverage ratio. In September 2022, the Company entered into four additional interest rate swaps, which when combined with the Amended Swaps, resulted in an average blended fixed interest rate of 3.57% plus the applicable rate on 70% of the notional value of the unsecured term loan until mid-June 2023 and 4.12% plus the applicable rate thereafter on 80% of the notional value until the maturity date in June 2025. On June 15, 2023, two of the Company’s interest rate swaps entered into during September 2022 matured concurrently with the Amended Swaps. The Company has concluded that the two remaining interest rate swaps entered into during September 2022, which cover 80% of the notional value of the unsecured term loan through maturity in June 2025, are effective and qualify for hedge accounting treatment. The Company held the following interest rate swaps as of December 30, 2023:
For the nine months ended December 30, 2023, the Company recorded a gain of $1.3 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. To date, the Company has not experienced significant customer payment defaults, or identified other significant collectability concerns. The following is a roll forward of the allowance for credit losses:
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 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 unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the nine months ended December 30, 2023:
The Company did not have fair value hedges or net investment hedges outstanding as of December 30, 2023 or April 1, 2023. As of December 30, 2023, 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 December 30, 2023, 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 Condensed Consolidated Balance Sheets as of December 30, 2023 and April 1, 2023:
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 December 30, 2023 and April 1, 2023.
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. Other Fair Value Disclosures The Term Loan, which is carried at amortized cost, accounts receivable and accounts payable approximate fair value. The fair value of the 2026 Notes as of December 30, 2023 was $445.2 million, which was determined by using the market price on the last trading day of the reporting period.
|
COMMITMENTS AND CONTINGENCIES |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 14. 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 requested 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 has fully cooperated with this inquiry. On August 16, 2022, the U.S. Department of Justice (“DOJ”) filed a motion on behalf of the United States and 31 states reflecting their decision to not intervene in the underlying qui tam action captioned United States ex rel. Berthelot et al. v. Haemonetics Corp., 1:20-cv-11062-ADB, pending in the U.S. District Court for the District of Massachusetts, indicating that the DOJ had completed its investigative activity based on then available information. The qui tam case was unsealed by order dated August 18, 2022. On January 12, 2024, the Company entered into an agreement with the individual plaintiffs in the qui tam case that provides for settlement of certain unrelated employment matters and releases those individuals’ claims. The Company previously recorded a loss contingency for these matters and did not record any adjustments during the third quarter of fiscal 2024. On January 16, 2024, the relators in the qui tam case filed a stipulation of dismissal of their claims against the Company. The court dismissed the qui tam claims with prejudice as to the relators and without prejudice as to the government. 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. The Company removed the case to the United States District Court for the Northern District Illinois. 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 fingerprint on a finger scanner that stored her fingerprint 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 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. In March 2023, the Company filed a second motion to dismiss the complaint, which is pending before the court. During the second quarter of fiscal 2024, the Company entered into a Memorandum of Understanding providing terms that would resolve the litigation and recorded an additional loss contingency related to this matter. In the third quarter of fiscal 2024, the parties requested preliminary court approval of a final settlement agreement and the Company recorded an immaterial additional loss contingency related to settlement administration, resulting in a total accrual of $8.8 million within Other current liabilities in its Condensed Consolidated Balance Sheets. Product Recall In August 2023, the Company issued a voluntary recall of certain products within the Whole Blood portion of our Blood Center business unit sold to customers in the U.S. and certain foreign jurisdictions. As of December 30, 2023, the Company has recorded cumulative charges of $6.8 million related to inventory, returns and customer claims associated with this recall. The Company continues to evaluate the impact of this recall and may record additional incremental charges in future periods.
|
ACCUMULATED OTHER COMPREHENSIVE LOSS |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | 15. ACCUMULATED OTHER COMPREHENSIVE LOSS The components of Accumulated Other Comprehensive Loss are as follows:
|
SEGMENT AND ENTERPRISE-WIDE INFORMATION |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT AND ENTERPRISE-WIDE INFORMATION | 16. 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, amortization of acquired intangible assets, restructuring costs, restructuring related costs, digital transformation costs related to the upgrade of our enterprise resource planning system, 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:
Net revenues by business unit are as follows:
Net revenues generated in the Company’s principle operating regions on a reported basis are as follows:
|
Pay vs Performance Disclosure - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 |
Sep. 30, 2023 |
Jul. 01, 2023 |
Dec. 31, 2022 |
Oct. 01, 2022 |
Jul. 02, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Pay vs Performance Disclosure | ||||||||
Net income | $ 31,241 | $ 24,908 | $ 41,042 | $ 32,944 | $ 33,197 | $ 19,877 | $ 97,191 | $ 86,018 |
Insider Trading Arrangements |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023
shares
| |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Adopted | true | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Adopted | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Rule 10b5-1 Arrangement Terminated | false | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Michelle Basil [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trading Arrangements, by Individual | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Material Terms of Trading Arrangement | During the three months ended December 30, 2023, certain of our directors and officers (as defined under Rule 16a-1(f) under the Securities Exchange Act of 1934) adopted or terminated trading arrangements for the sale of shares of our common stock as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Name | Michelle L. Basil | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Title | EVP, General Counsel | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption Date | 12/14/2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Arrangement Duration | 351 days | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aggregate Available | 17,567 |
ACQUISITIONS (Tables) |
Dec. 12, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Business Acquisitions, by Acquisition | The purchase price of $243.9 million, net of $10.6 million of cash acquired consists of the amounts presented below, which represent the preliminary determination of the fair value of the identifiable assets acquired and liabilities assumed:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | Intangible assets acquired consist of the following:
|
RESTRUCTURING (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity for restructuring reserves related to portfolio rationalization initiatives, the 2020 Program and prior programs for the nine months ended December 30, 2023, substantially all of which relates to employee severance and other employee costs:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Costs | The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of Income and Comprehensive Income:
|
EARNINGS PER SHARE (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
INVENTORIES (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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.
|
Property, Plant, and Equipment (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
During the three and nine months ended December 30, 2023, depreciation expense was $14.2 million and $41.1 million, respectively. During the three and nine months ended December 31, 2022, depreciation expense was $13.1 million and $37.7 million, respectively. Beginning in the second quarter of fiscal 2024, $4.3 million of the Company’s property, plant and equipment met held for sale accounting criteria and was reclassed to Prepaid expenses and other current assets in the Condensed Consolidated Balance Sheets.
|
GOODWILL AND INTANGIBLE ASSETS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill by operating segment for fiscal 2024 are as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | The gross carrying amount of intangible assets and the related accumulated amortization as of December 30, 2023 and April 1, 2023 is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Future annual amortization expense on intangible assets for the next five years is estimated to be as follows:
|
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Interest Rate Swaps | The Company held the following interest rate swaps as of December 30, 2023:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the nine months ended December 30, 2023:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 Condensed Consolidated Balance Sheets as of December 30, 2023 and April 1, 2023:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 December 30, 2023 and April 1, 2023.
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounts Receivable, Allowance for Credit Loss | The following is a roll forward of the allowance for credit losses:
|
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Loss are as follows:
|
SEGMENT AND ENTERPRISE-WIDE INFORMATION (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Business Segment | Selected information by reportable segment is presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Revenues by Business Unit and Geographic Regions | Net revenues by business unit are as follows:
Net revenues generated in the Company’s principle operating regions on a reported basis are as follows:
|
STRATEGIC INVESTMENTS (Details) $ in Thousands, € in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 30, 2023
USD ($)
|
Dec. 30, 2023
USD ($)
|
Dec. 30, 2023
EUR (€)
|
|
Schedule of Investments [Line Items] | |||
Gain (Loss) on Investments | $ 0 | $ 0 | |
Strategic Investments | $ 7,600 | ||
Vivasure Medical LTD | |||
Schedule of Investments [Line Items] | |||
Investment | € | € 30.0 |
ACQUISITIONS (Details) - USD ($) $ in Thousands |
9 Months Ended | ||
---|---|---|---|
Dec. 12, 2023 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Business Acquisition [Line Items] | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 243,852 | $ 2,850 | |
OpSens, Inc. | |||
Business Acquisition [Line Items] | |||
Upfront payment | $ 254,500 | ||
Payments to Acquire Businesses, Net of Cash Acquired | 243,900 | ||
OpSens, Inc. | Selling, general and administrative expenses | |||
Business Acquisition [Line Items] | |||
Legal and professional fees | $ 6,600 |
REVENUE (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |
---|---|---|---|
Dec. 30, 2023 |
Dec. 30, 2023 |
Apr. 01, 2023 |
|
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Performance obligation amount | $ 23.5 | $ 23.5 | |
Performance obligation percent | 86.00% | 86.00% | |
Contract liabilities | $ 31.1 | $ 31.1 | $ 30.2 |
Revenue recognized | $ 4.9 | $ 25.4 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-28 | |||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |||
Expected timing of satisfaction | 12 months | 12 months |
RESTRUCTURING (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
Apr. 01, 2023 |
|
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring liability | $ 9,003 | $ 9,003 | $ 2,150 | ||
Restructuring liability payable in next twelve months | 8,700 | 8,700 | |||
2020 Program | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Restructuring and Related Cost, Incurred Cost | 2,600 | $ 4,100 | 6,800 | $ 10,700 | |
Cumulative costs to date | 74,000 | 74,000 | |||
Restructuring liability | 1,160 | 1,160 | $ 1,810 | ||
2020 Program | Minimum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | 95,000 | 95,000 | |||
2020 Program | Maximum | |||||
Restructuring Cost and Reserve [Line Items] | |||||
Expected cost | $ 105,000 | $ 105,000 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Income Tax Contingency [Line Items] | ||||
Provision for income taxes | $ 12,788 | $ 9,280 | $ 31,260 | $ 22,759 |
Reported tax rate | 29.00% | 22.00% | 24.30% | 20.90% |
Discrete tax benefit (expense) | $ (1,100) | |||
Stock Compensation Shortfalls | ||||
Income Tax Contingency [Line Items] | ||||
Discrete tax benefit (expense) | $ (100) | $ (400) | ||
Stock Compensation Windfalls | ||||
Income Tax Contingency [Line Items] | ||||
Discrete tax benefit (expense) | $ (2,600) | |||
Tax Rate Change | ||||
Income Tax Contingency [Line Items] | ||||
Discrete tax benefit (expense) | $ (500) |
EARNINGS PER SHARE (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Dec. 30, 2023 |
Sep. 30, 2023 |
Jul. 01, 2023 |
Dec. 31, 2022 |
Oct. 01, 2022 |
Jul. 02, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Basic EPS | ||||||||
Net income | $ 31,241 | $ 24,908 | $ 41,042 | $ 32,944 | $ 33,197 | $ 19,877 | $ 97,191 | $ 86,018 |
Weighted average shares (in shares) | 50,768,000 | 50,509,000 | 50,679,000 | 50,896,000 | ||||
Basic income (loss) per share (in dollars per share) | $ 0.62 | $ 0.65 | $ 1.92 | $ 1.69 | ||||
Diluted EPS | ||||||||
Net income | $ 31,241 | $ 24,908 | $ 41,042 | $ 32,944 | $ 33,197 | $ 19,877 | $ 97,191 | $ 86,018 |
Net effect of common stock equivalents (in shares) | 677,000 | 710,000 | 715,000 | 591,000 | ||||
Diluted weighted average shares (in shares) | 51,445,000 | 51,219,000 | 51,394,000 | 51,487,000 | ||||
Diluted income (loss) per share (in dollars per share) | $ 0.61 | $ 0.64 | $ 1.89 | $ 1.67 | ||||
Anti-dilutive shares (in shares) | 600,000 | 400,000 | 600,000 | 700,000 |
EARNINGS PER SHARE (Share Repurchase Program) (Details) - USD ($) $ in Thousands |
Dec. 30, 2023 |
Aug. 31, 2022 |
Aug. 16, 2022 |
---|---|---|---|
Earnings Per Share [Abstract] | |||
Share repurchase plan, authorized amount | $ 300,000 | ||
Remaining authorized amount | $ 225,000 | ||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 75,000 |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
Dec. 30, 2023 |
Apr. 01, 2023 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 135,057 | $ 115,016 |
Work-in-process | 18,374 | 12,572 |
Finished goods | 150,593 | 131,791 |
Inventories, net | 304,024 | $ 259,379 |
Inventory Adjustments | $ 4,300 |
LEASES (Details) |
9 Months Ended |
---|---|
Dec. 30, 2023 | |
Leases [Abstract] | |
Operating Lease, Revenue, As A Percentage Of Total Net Sales | 3.00% |
GOODWILL AND INTANGIBLE ASSETS Narrative (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Aggregate amortization expense | $ 9,300 | $ 10,400 | $ 28,500 | $ 31,700 |
Intangible asset impairment | $ 0 | $ 0 | $ 10,419 | $ 0 |
Minimum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average useful life | 5 years | 5 years | ||
Maximum | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average useful life | 15 years | 15 years |
GOODWILL AND INTANGIBLE ASSETS Schedule of Goodwill (Details) $ in Thousands |
9 Months Ended |
---|---|
Dec. 30, 2023
USD ($)
| |
Goodwill [Roll Forward] | |
Goodwill, carrying amount | $ 466,231 |
Currency translation | 1,689 |
Goodwill, carrying amount | 554,999 |
Goodwill, Acquired During Period | 87,079 |
Plasma | |
Goodwill [Roll Forward] | |
Goodwill, carrying amount | 29,043 |
Currency translation | 0 |
Goodwill, carrying amount | 29,043 |
Goodwill, Acquired During Period | 0 |
Blood Center | |
Goodwill [Roll Forward] | |
Goodwill, carrying amount | 33,855 |
Currency translation | (140) |
Goodwill, carrying amount | 33,715 |
Goodwill, Acquired During Period | 0 |
Hospital | |
Goodwill [Roll Forward] | |
Goodwill, carrying amount | 403,333 |
Currency translation | 1,829 |
Goodwill, carrying amount | 492,241 |
Goodwill, Acquired During Period | $ 87,079 |
GOODWILL AND INTANGIBLE ASSETS - Maturity (Details) $ in Thousands |
Dec. 30, 2023
USD ($)
|
---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | |
Finite-Lived Intangible Asset, Expected Amortization, Remainder of Fiscal Year | $ 12,211 |
Fiscal 2025 | 42,010 |
Fiscal 2026 | 36,583 |
Fiscal 2027 | 34,610 |
Fiscal 2028 | $ 32,839 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASURES (Schedule of Interest Rate Swaps) (Details) - USD ($) $ in Thousands |
Dec. 30, 2023 |
Sep. 23, 2022 |
Aug. 31, 2022 |
---|---|---|---|
Interest Rate Swap | |||
Derivative [Line Items] | |||
Notional amount | $ 214,200 | $ 219,800 | $ 241,900 |
Estimated Fair Value Assets (Liabilities) | 674 | ||
Interest Rate Swap, 4.08% Fixed Interest Rate | |||
Derivative [Line Items] | |||
Notional amount | $ 107,800 | 109,900 | |
Derivative fixed interest rate | 408.00% | ||
Estimated Fair Value Assets (Liabilities) | $ 372 | ||
Interest Rate Swap, 4.15% Fixed Interest Rate | |||
Derivative [Line Items] | |||
Notional amount | $ 106,400 | $ 109,900 | |
Derivative fixed interest rate | 4.15% | ||
Estimated Fair Value Assets (Liabilities) | $ 302 |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS - Allowance for credit losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Dec. 30, 2023 |
Dec. 31, 2022 |
Dec. 30, 2023 |
Dec. 31, 2022 |
|
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 5,044 | $ 2,495 | $ 4,932 | $ 2,475 |
Credit loss | 653 | 224 | 833 | 429 |
Recoveries (Write-offs) | 28 | 19 | (40) | (166) |
Ending balance | $ 5,725 | $ 2,738 | $ 5,725 | $ 2,738 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
9 Months Ended |
---|---|
Dec. 30, 2023
USD ($)
| |
Commitments and Contingencies Disclosure [Abstract] | |
Loss Contingency Accrual | $ 8.8 |
Inventory Recall Expense | $ 6.8 |
+E;\C-4<+"\;ST>SN4]"9FUZA ,NZX9 0#F,3.'8M ;Q0=2]#@ C7HD
MW?)Q^^[RS&>BY)6J6J?U%Q!]N\T"I)+7E@T "#R&J14) $8I-44E ",T8"XQ
M0P'@<.#[;=6^T96D6U@^_!AY0$#JKF-M!!L6TL"J>#;*T7+ V@8VC%+?#5N8
M-S*3=&JG^G6I8\O[]FL0H &PO=V]R:W-H965T
M -*LYD:S%=@D3
MF@$VI; E)99,-ME[1HHTH'GL(YU$M @#GYLY+:.4W"OY"SN4Y4[^TFE5<>B[
M\WGCF-]>R!M:@,*!G=OA3%=+[\"A;1B#TY%IMQ$=&$&X(QB%-$[2[PKR<=;\
MUP 'M(A=HN ;'%F@$9?3I_N
MQOG&V*]N2>3%]Z;6[F*P]'[U]NC(%4MJI!N9%6E\J8QMI,>C71RYE259QDU-
M?30=CT^/&JGTX/(\OGNTE^ &PO=V]R:W-H965T >#\V0L*.FH?1UBMQ)36PH>K(TXAU0N\Y=\\Z
M9!D,!K\4DUH1RQ5![=O15BWLM^)![[B@<>#L,54S;#K."]L2PB8GB!TA[:(;
M]H*Z19>"(NQJ0YO;O$AR=WL*XKH6KK["M#]J)/](_TI4:Z?RFG(EL%H*#];#
M0S*I]?/M>/T*W3"UIH# ,2/7H-WK>J!J9:\71FZ,BOLI%2#*%3040"A%GE?1EGS=\E.A.@K#9LX@
MCD*K<&VQD-+.NFT(%O
3
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M#B$-2Y.]+%TO8IL]7110"0OS;O:)5V]3G,!M!CXDU+XAG#G[JD1;V2=$T%9K-H?$A&%[<]SD$>?-+]@/IC\*&4%SN=A2_
MN#]@//>["A"7)DGL6C3X!9[:@$;#LY>NWN,)@]\GOHO _ XW(DVJ2-$T%9H]
M6=;H?H[K_E.*R!Q0Z9([ZFV()PY]RO7*J4AS:BHTFQJCXSFNXW$#C?OBF/.D
M<(O(>(Y@%BC15+]+T%1);1J,6XH 9$&
14IFJ9"LZDT1H ,W(\0
MH\^7ZZ!ZE,!^A)YZ!,! ]0C$@>H1B,/4HS3Z6HH7'%!+TJ(\*=J(%$V1HFDJ
M-/LF,!:"?*;]"''<8+Y]#R$!%CR1)E6D:)H*S2;2& B2<#]"Z8OTS-N.4/KV
M@<<'@).Z2P*!(.X]Y)[ENP/WOCR0NCA_M'O0?J\@\$4"4/>@_6I!VN\6? [C
M0!KC0+[0# \3S"QOF/AD4KJ+Y"B:2HTFU3C+\AG+/Y+H!8OW;WSI%_Z]_@!
M<-QO#%%0D+==$7ZU)[9F;I1^3E_VSX$2O.<=#_'$H:.Y7CD5:4Y-A6938Y1[
M_BUE_QS8QE\4K@H?XCF"62 M^_>[!$V5U*;!V /Y,Y3]5%L.V'?ZC=ZFL&2V>S"@1ZJP:11G0W;#
MUU3>+3M,TO$1_B.<_W =3?U#,HN/N@J]<"8VGT2C8>Q50IM,*B4T.H.@X3/0
M^*Z5-J-([<,C$ 'JCL\ V
HL;U79,KE%+
M4#(U!/OS
M=!P< MB#R+@FKB9NO-<$YUTCT%>A(25=#]7PT15$5SV=]\^LZ3WVF'SA NFAK5TP76]E9GO
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M.T)=P>BXOQTUZ^\@,%3SZ!2!(Z$]@S@G
M)