Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 |
Massachusetts (State or other jurisdiction of incorporation or organization) | 04-2882273 (I.R.S. Employer Identification No.) |
Yes þ | No o |
Yes þ | No o |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o |
Yes o | No þ |
PAGE | |
Three Months Ended | Six Months Ended | ||||||||||||||
October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | ||||||||||||
Net revenues | $ | 220,253 | $ | 219,693 | $ | 430,209 | $ | 433,106 | |||||||
Cost of goods sold | 116,005 | 114,396 | 234,905 | 225,270 | |||||||||||
Gross profit | 104,248 | 105,297 | 195,304 | 207,836 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 8,336 | 11,553 | 19,773 | 22,874 | |||||||||||
Selling, general and administrative | 71,118 | 74,565 | 158,618 | 162,177 | |||||||||||
Total operating expenses | 79,454 | 86,118 | 178,391 | 185,051 | |||||||||||
Operating income | 24,794 | 19,179 | 16,913 | 22,785 | |||||||||||
Interest and other expense, net | (1,962 | ) | (2,606 | ) | (4,139 | ) | (4,615 | ) | |||||||
Income before provision for income taxes | 22,832 | 16,573 | 12,774 | 18,170 | |||||||||||
Provision for income taxes | 3,007 | 3,710 | 3,295 | 5,574 | |||||||||||
Net income | $ | 19,825 | $ | 12,863 | $ | 9,479 | $ | 12,596 | |||||||
Earnings per share - basic | $ | 0.39 | $ | 0.25 | $ | 0.19 | $ | 0.25 | |||||||
Earnings per share - diluted | $ | 0.38 | $ | 0.25 | $ | 0.18 | $ | 0.24 | |||||||
Weighted average shares outstanding | |||||||||||||||
Basic | 51,378 | 50,680 | 51,200 | 51,020 | |||||||||||
Diluted | 51,701 | 51,187 | 51,463 | 51,638 | |||||||||||
Comprehensive income (loss) | $ | 19,037 | $ | (1,526 | ) | $ | 7,804 | $ | (4,153 | ) |
October 1, 2016 | April 2, 2016 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 138,870 | $ | 115,123 | |||
Accounts receivable, less allowance of $2,256 at October 1, 2016 and $2,253 at April 2, 2016 | 151,600 | 157,093 | |||||
Inventories, net | 194,511 | 187,028 | |||||
Prepaid expenses and other current assets | 27,406 | 28,842 | |||||
Total current assets | 512,387 | 488,086 | |||||
Property, plant and equipment, net | 339,843 | 337,634 | |||||
Intangible assets, less accumulated amortization of $199,110 at October 1, 2016 and $190,816 at April 2, 2016 | 192,451 | 204,458 | |||||
Goodwill | 268,546 | 267,840 | |||||
Deferred tax asset, long-term | 7,942 | 7,055 | |||||
Other long-term assets | 13,657 | 14,055 | |||||
Total assets | $ | 1,334,826 | $ | 1,319,128 | |||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Notes payable and current maturities of long-term debt | $ | 51,549 | $ | 43,471 | |||
Accounts payable | 42,013 | 39,674 | |||||
Accrued payroll and related costs | 40,808 | 35,798 | |||||
Other liabilities | 64,294 | 66,608 | |||||
Total current liabilities | 198,664 | 185,551 | |||||
Long-term debt, net of current maturities | 336,505 | 364,529 | |||||
Deferred tax liability, long-term | 22,188 | 21,377 | |||||
Other long-term liabilities | 28,355 | 26,106 | |||||
Total stockholders’ equity | |||||||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,535,051 shares at October 1, 2016 and 50,932,348 shares at April 2, 2016 | 515 | 509 | |||||
Additional paid-in capital | 459,651 | 439,912 | |||||
Retained earnings | 325,663 | 316,184 | |||||
Accumulated other comprehensive loss | (36,715 | ) | (35,040 | ) | |||
Total stockholders’ equity | 749,114 | 721,565 | |||||
Total liabilities and stockholders’ equity | $ | 1,334,826 | $ | 1,319,128 |
Six Months Ended | |||||||
October 1, 2016 | September 26, 2015 | ||||||
Cash Flows from Operating Activities: | |||||||
Net income | $ | 9,479 | $ | 12,596 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Non-cash items: | |||||||
Depreciation and amortization | 45,253 | 44,998 | |||||
Asset impairments | 2,505 | 88 | |||||
Stock compensation expense | 4,235 | 3,883 | |||||
Unrealized gain from hedging activities | (1,674 | ) | (710 | ) | |||
Provision for losses on accounts receivable and inventory | 6,902 | 3,080 | |||||
Other non-cash operating activities | 433 | 745 | |||||
Change in operating assets and liabilities: | |||||||
Change in accounts receivable | 6,807 | (287 | ) | ||||
Change in inventories | (12,661 | ) | (40 | ) | |||
Change in prepaid income taxes | (324 | ) | (182 | ) | |||
Change in other assets and other liabilities | 2,836 | (337 | ) | ||||
Change in accounts payable and accrued expenses | 6,169 | (27,073 | ) | ||||
Net cash provided by operating activities | 69,960 | 36,761 | |||||
Cash Flows from Investing Activities: | |||||||
Capital expenditures | (41,624 | ) | (50,130 | ) | |||
Proceeds from sale of property, plant and equipment | 197 | 293 | |||||
Other acquisitions and investments | — | (3,000 | ) | ||||
Net cash used in investing activities | (41,427 | ) | (52,837 | ) | |||
Cash Flows from Financing Activities: | |||||||
Payments on long-term real estate mortgage | — | (558 | ) | ||||
Net (decrease) increase in short-term loans | (1,116 | ) | 6,924 | ||||
Repayment of term loan borrowings | (18,970 | ) | — | ||||
Proceeds from employee stock purchase plan | 1,979 | 2,263 | |||||
Proceeds from exercise of stock options | 13,532 | 8,374 | |||||
Share repurchases | — | (60,984 | ) | ||||
Net cash used in financing activities | (4,575 | ) | (43,981 | ) | |||
Effect of exchange rates on cash and cash equivalents | (211 | ) | (358 | ) | |||
Net Change in Cash and Cash Equivalents | 23,747 | (60,415 | ) | ||||
Cash and Cash Equivalents at Beginning of Period | 115,123 | 160,662 | |||||
Cash and Cash Equivalents at End of Period | $ | 138,870 | $ | 100,247 | |||
Supplemental Disclosures of Cash Flow Information: | |||||||
Interest paid | $ | 4,118 | $ | 4,162 | |||
Income taxes paid | $ | 3,867 | $ | 4,656 | |||
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ | 3,477 | $ | 5,550 |
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands, except per share amounts) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | ||||||||||||
Basic EPS | ||||||||||||||||
Net income | $ | 19,825 | $ | 12,863 | $ | 9,479 | $ | 12,596 | ||||||||
Weighted average shares | 51,378 | 50,680 | 51,200 | 51,020 | ||||||||||||
Basic income per share | $ | 0.39 | $ | 0.25 | $ | 0.19 | $ | 0.25 | ||||||||
Diluted EPS | ||||||||||||||||
Net income | $ | 19,825 | $ | 12,863 | $ | 9,479 | $ | 12,596 | ||||||||
Basic weighted average shares | 51,378 | 50,680 | 51,200 | 51,020 | ||||||||||||
Net effect of common stock equivalents | 323 | 507 | 263 | 618 | ||||||||||||
Diluted weighted average shares | 51,701 | 51,187 | 51,463 | 51,638 | ||||||||||||
Diluted income per share | $ | 0.38 | $ | 0.25 | $ | 0.18 | $ | 0.24 |
Six Months Ended | ||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | ||||||
Warranty accrual as of the beginning of the period | $ | 420 | $ | 531 | ||||
Warranty provision | 390 | 704 | ||||||
Warranty spending | (583 | ) | (738 | ) | ||||
Warranty accrual as of the end of the period | $ | 227 | $ | 497 |
(In thousands) | October 1, 2016 | April 2, 2016 | ||||||
Raw materials | $ | 56,486 | $ | 62,062 | ||||
Work-in-process | 11,652 | 13,180 | ||||||
Finished goods | 126,373 | 111,786 | ||||||
Total inventories | $ | 194,511 | $ | 187,028 |
(In thousands) | Amount of (Loss) Gain Recognized in Accumulated Other Comprehensive Loss | Amount of (Loss) Gain Reclassified from Accumulated Other Comprehensive Loss into Earnings | Location in Consolidated Statements of Income and Comprehensive Income (Loss) | Amount of Gain (Loss) Excluded from Effectiveness Testing * | Location in Consolidated Statements of Income and Comprehensive Income (Loss) | |||||||||||
Designated foreign currency hedge contracts, net of tax | $ | (3,176 | ) | $ | (2,394 | ) | Net revenues, COGS, and SG&A | $ | 223 | Interest and other expense, net | ||||||
Non-designated foreign currency hedge contracts | — | — | (835 | ) | Interest and other expense, net | |||||||||||
Designated interest rate swaps, net of tax | $ | 69 | $ | — | Interest and other expense, net | $ | — |
(In thousands) | Location in Balance Sheet | As of October 1, 2016 | As of April 2, 2016 | |||||||
Derivative Assets: | ||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 389 | $ | 427 | |||||
$ | 389 | $ | 427 | |||||||
Derivative Liabilities: | ||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 3,914 | $ | 4,056 | |||||
Designated interest rate swaps | Other current liabilities | 27 | 154 | |||||||
$ | 3,941 | $ | 4,210 |
• | 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. |
As of October 1, 2016 | ||||||||||||
(In thousands) | Level 1 | Level 2 | Total | |||||||||
Assets | ||||||||||||
Money market funds | $ | 94,097 | $ | — | $ | 94,097 | ||||||
Designated foreign currency hedge contracts | — | 389 | 389 | |||||||||
$ | 94,097 | $ | 389 | $ | 94,486 | |||||||
Liabilities | ||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 3,914 | $ | 3,914 | ||||||
Designated interest rate swaps | — | 27 | 27 | |||||||||
$ | — | $ | 3,941 | $ | 3,941 | |||||||
As of April 2, 2016 | ||||||||||||
Level 1 | Level 2 | Total | ||||||||||
Assets | ||||||||||||
Money market funds | $ | 72,491 | $ | — | $ | 72,491 | ||||||
Designated foreign currency hedge contracts | — | 427 | 427 | |||||||||
Designated interest rate swaps | $ | 72,491 | $ | 427 | $ | 72,918 | ||||||
Liabilities | ||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 4,056 | $ | 4,056 | ||||||
Designated interest rate swaps | — | 154 | 154 | |||||||||
$ | — | $ | 4,210 | $ | 4,210 |
(In thousands) | Six Months Ended October 1, 2016 | Year Ended April 2, 2016 | |||||
Beginning balance | $ | 2,523 | $ | 7,070 | |||
Additions for tax positions of prior years | 1,320 | 340 | |||||
Reductions of tax positions | — | (4,158 | ) | ||||
Closure of statute of limitations | (165 | ) | (729 | ) | |||
Ending balance | $ | 3,678 | $ | 2,523 |
• | Japan |
• | Europe, Middle East and Africa (collectively “EMEA”) |
• | North America Plasma |
• | All Other |
• | Americas Blood Center and Hospital |
• | Asia - Pacific |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||
Net revenues | |||||||||||||||
Japan | $ | 18,991 | $ | 19,908 | $ | 33,557 | $ | 37,503 | |||||||
EMEA | 45,933 | 48,198 | 91,674 | 97,009 | |||||||||||
North America Plasma | 78,292 | 68,606 | 151,767 | 133,049 | |||||||||||
All Other | 78,411 | 82,780 | 156,431 | 162,999 | |||||||||||
Net revenues (constant currency) | 221,627 | 219,492 | 433,429 | 430,560 | |||||||||||
Effect of exchange rates | (1,374 | ) | 201 | (3,220 | ) | 2,546 | |||||||||
Net revenues (reported) | $ | 220,253 | $ | 219,693 | $ | 430,209 | $ | 433,106 |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||
Segment operating income | |||||||||||||||
Japan | $ | 8,883 | $ | 8,948 | $ | 15,004 | $ | 16,630 | |||||||
EMEA | 10,702 | 11,486 | 20,750 | 22,012 | |||||||||||
North America Plasma | 28,272 | 27,309 | 55,549 | 53,464 | |||||||||||
All Other | 30,329 | 29,839 | 55,965 | 58,474 | |||||||||||
Segment operating income (constant currency) | 78,186 | 77,582 | 147,268 | 150,580 | |||||||||||
Corporate operating expenses (constant currency) | (45,416 | ) | (46,275 | ) | (93,867 | ) | (95,526 | ) | |||||||
Non-GAAP operating income (constant currency) | 32,770 | 31,307 | 53,401 | 55,054 | |||||||||||
Effect of exchange rates | 667 | 1,802 | (639 | ) | 3,882 | ||||||||||
Non-GAAP operating income (reported) | 33,437 | 33,109 | 52,762 | 58,936 | |||||||||||
Unallocated amounts | |||||||||||||||
Restructuring and turnaround costs | 1,637 | 6,531 | 20,453 | 21,347 | |||||||||||
Deal amortization | 7,006 | 7,399 | 14,081 | 14,804 | |||||||||||
Asset impairments | — | — | 1,315 | — | |||||||||||
Operating income | $ | 24,794 | $ | 19,179 | $ | 16,913 | $ | 22,785 |
Three Months Ended | Six Months Ended | |||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | ||||||||||||
Plasma | $ | 103,564 | $ | 93,036 | $ | 201,213 | $ | 181,563 | ||||||||
Blood Center | 74,270 | 84,235 | 145,213 | 167,318 | ||||||||||||
Cell Processing | 25,955 | 28,105 | 52,031 | 55,918 | ||||||||||||
Hemostasis Management | 16,464 | 14,317 | 31,752 | 28,307 | ||||||||||||
Net revenues | $ | 220,253 | $ | 219,693 | $ | 430,209 | $ | 433,106 |
Three Months Ended | Six Months Ended | ||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||
United States | $ | 130,843 | $ | 127,031 | $ | 256,543 | $ | 247,726 | |||||||
Japan | 21,666 | 16,190 | 36,630 | 30,924 | |||||||||||
Europe | 37,606 | 47,869 | 77,973 | 98,157 | |||||||||||
Asia | 28,384 | 26,603 | 55,376 | 52,123 | |||||||||||
Other | 1,754 | 2,000 | 3,687 | 4,176 | |||||||||||
Net revenues | $ | 220,253 | $ | 219,693 | $ | 430,209 | $ | 433,106 |
(In thousands) | Severance and Other Employee Costs | Other Costs | Asset Write Down | Total Restructuring | |||||||||||
Balance at April 2, 2016 | $ | 8,752 | $ | — | $ | — | $ | 8,752 | |||||||
Costs incurred, net of reversals | 15,192 | 506 | 334 | 16,032 | |||||||||||
Payments | (12,645 | ) | (393 | ) | — | (13,038 | ) | ||||||||
Non-cash adjustments | — | (334 | ) | (334 | ) | ||||||||||
Balance at October 1, 2016 | $ | 11,299 | $ | 113 | $ | — | $ | 11,412 |
Restructuring costs | Three Months Ended | Six Months Ended | |||||||||||||
(in thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||
Japan | $ | (38 | ) | $ | — | $ | 836 | $ | 9 | ||||||
EMEA | (63 | ) | 98 | 3,011 | 118 | ||||||||||
North America Plasma | (7 | ) | — | 368 | — | ||||||||||
All Other | (246 | ) | 4,826 | 11,817 | 14,256 | ||||||||||
Total | $ | (354 | ) | $ | 4,924 | $ | 16,032 | $ | 14,383 | ||||||
Turnaround costs | Three Months Ended | Six Months Ended | |||||||||||||
(in thousands) | October 1, 2016 | September 26, 2015 | October 1, 2016 | September 26, 2015 | |||||||||||
Japan | $ | 1 | $ | 47 | $ | 2 | $ | 191 | |||||||
EMEA | 55 | 178 | 81 | 420 | |||||||||||
North America Plasma | 936 | (40 | ) | 936 | — | ||||||||||
All Other | 959 | 1,543 | 3,362 | 6,474 | |||||||||||
Total | $ | 1,951 | $ | 1,728 | $ | 4,381 | $ | 7,085 | |||||||
Total restructuring and turnaround costs | $ | 1,597 | $ | 6,652 | $ | 20,413 | $ | 21,468 |
(In thousands) | Foreign Currency | Defined Benefit Plans | Net Unrealized Gain/Loss on Derivatives | Total | ||||||||||||
Balance as of April 2, 2016 | $ | (22,499 | ) | $ | (7,492 | ) | $ | (5,049 | ) | $ | (35,040 | ) | ||||
Other comprehensive loss before reclassifications(1) | (962 | ) | — | (3,107 | ) | (4,069 | ) | |||||||||
Amounts reclassified from Accumulated Other Comprehensive Loss(1) | — | — | 2,394 | 2,394 | ||||||||||||
Net current period other comprehensive loss | (962 | ) | — | (713 | ) | (1,675 | ) | |||||||||
Balance as of October 1, 2016 | $ | (23,461 | ) | $ | (7,492 | ) | $ | (5,762 | ) | $ | (36,715 | ) |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
(In thousands, except per share data) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | ||||||||||||||||
Net revenues | $ | 220,253 | $ | 219,693 | 0.3 | % | $ | 430,209 | $ | 433,106 | (0.7 | )% | ||||||||||
Gross profit | $ | 104,248 | $ | 105,297 | (1.0 | )% | $ | 195,304 | $ | 207,836 | (6.0 | )% | ||||||||||
% of net revenues | 47.3 | % | 47.9 | % | 45.4 | % | 48.0 | % | ||||||||||||||
Operating expenses | $ | 79,454 | $ | 86,118 | (7.7 | )% | $ | 178,391 | $ | 185,051 | (3.6 | )% | ||||||||||
Operating income | $ | 24,794 | $ | 19,179 | 29.3 | % | $ | 16,913 | $ | 22,785 | (25.8 | )% | ||||||||||
% of net revenues | 11.3 | % | 8.7 | % | 3.9 | % | 5.3 | % | ||||||||||||||
Interest and other expense, net | $ | (1,962 | ) | $ | (2,606 | ) | (24.7 | )% | $ | (4,139 | ) | $ | (4,615 | ) | (10.3 | )% | ||||||
Income before provision for income taxes | $ | 22,832 | $ | 16,573 | 37.8 | % | $ | 12,774 | $ | 18,170 | (29.7 | )% | ||||||||||
Provision for income taxes | $ | 3,007 | $ | 3,710 | (18.9 | )% | $ | 3,295 | $ | 5,574 | (40.9 | )% | ||||||||||
% of pre-tax income | 13.2 | % | 22.4 | % | 25.8 | % | 30.7 | % | ||||||||||||||
Net income | $ | 19,825 | $ | 12,863 | 54.1 | % | $ | 9,479 | $ | 12,596 | (24.7 | )% | ||||||||||
% of net revenues | 9.0 | % | 5.9 | % | 2.2 | % | 2.9 | % | ||||||||||||||
Earnings per share - diluted | $ | 0.38 | $ | 0.25 | 52.0 | % | $ | 0.18 | $ | 0.24 | (25.0 | )% |
Three Months Ended | |||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | Currency impact | Constant currency growth (1) | ||||||||||||
United States | $ | 130,843 | $ | 127,031 | 3.0 | % | — | % | 3.0 | % | |||||||
International | 89,410 | 92,662 | (3.5 | )% | (1.7 | )% | (1.8 | )% | |||||||||
Net revenues | $ | 220,253 | $ | 219,693 | 0.3 | % | (0.7 | )% | 1.0 | % |
Six Months Ended | |||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | Currency impact | Constant currency growth (1) | ||||||||||||
United States | $ | 256,543 | $ | 247,726 | 3.6 | % | — | % | 3.6 | % | |||||||
International | 173,666 | 185,380 | (6.3 | )% | (3.0 | )% | (3.3 | )% | |||||||||
Net revenues | $ | 430,209 | $ | 433,106 | (0.7 | )% | (1.4 | )% | 0.7 | % |
Three Months Ended | |||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | Currency impact | Constant currency growth (1) | ||||||||||||
Plasma | $ | 103,564 | $ | 93,036 | 11.3 | % | (0.7 | )% | 12.0 | % | |||||||
Blood Center | 74,270 | 84,235 | (11.8 | )% | (0.1 | )% | (11.7 | )% | |||||||||
Cell Processing | 25,955 | 28,105 | (7.6 | )% | (1.3 | )% | (6.3 | )% | |||||||||
Hemostasis Management | 16,464 | 14,317 | 15.0 | % | (2.6 | )% | 17.6 | % | |||||||||
Net revenues | $ | 220,253 | $ | 219,693 | 0.3 | % | (0.7 | )% | 1.0 | % |
Six Months Ended | |||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | Currency impact | Constant currency growth (1) | ||||||||||||
Plasma | $ | 201,213 | $ | 181,563 | 10.8 | % | (1.3 | )% | 12.1 | % | |||||||
Blood Center | 145,213 | 167,318 | (13.2 | )% | (0.7 | )% | (12.5 | )% | |||||||||
Cell Processing | 52,031 | 55,918 | (7.0 | )% | (2.4 | )% | (4.6 | )% | |||||||||
Hemostasis Management | 31,752 | 28,307 | 12.2 | % | (2.4 | )% | 14.6 | % | |||||||||
Net revenues | $ | 430,209 | $ | 433,106 | (0.7 | )% | (1.4 | )% | 0.7 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | ||||||||||||||||
Gross profit | $ | 104,248 | $ | 105,297 | (1.0 | )% | $ | 195,304 | $ | 207,836 | (6.0 | )% | ||||||||||
% of net revenues | 47.3 | % | 47.9 | % | 45.4 | % | 48.0 | % |
Three Months Ended | Six Months Ended | |||||||||||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | October 1, 2016 | September 26, 2015 | % Increase/ (Decrease) | ||||||||||||||||
Research and development | $ | 8,336 | $ | 11,553 | (27.8 | )% | $ | 19,773 | $ | 22,874 | (13.6 | )% | ||||||||||
% of net revenues | 3.8 | % | 5.3 | % | 4.6 | % | 5.3 | % | ||||||||||||||
Selling, general and administrative | $ | 71,118 | $ | 74,565 | (4.6 | )% | $ | 158,618 | $ | 162,177 | (2.2 | )% | ||||||||||
% of net revenues | 32.3 | % | 33.9 | % | 36.9 | % | 37.4 | % | ||||||||||||||
Total operating expenses | $ | 79,454 | $ | 86,118 | (7.7 | )% | $ | 178,391 | $ | 185,051 | (3.6 | )% | ||||||||||
% of net revenues | 36.1 | % | 39.2 | % | 41.5 | % | 42.7 | % |
(Dollars in thousands) | October 1, 2016 | April 2, 2016 | ||||||
Cash & cash equivalents | $ | 138,870 | $ | 115,123 | ||||
Working capital | $ | 313,723 | $ | 302,535 | ||||
Current ratio | 2.6 | 2.6 | ||||||
Net debt(1) | $ | (249,184 | ) | $ | (292,877 | ) | ||
Days sales outstanding (DSO) | 62 | 58 | ||||||
Disposable finished goods inventory turnover | 3.5 | 4.6 |
Six Months Ended | ||||||||||||
(In thousands) | October 1, 2016 | September 26, 2015 | Increase/ (Decrease) | |||||||||
Net cash provided by (used in): | ||||||||||||
Operating activities | $ | 69,960 | $ | 36,761 | $ | 33,199 | ||||||
Investing activities | (41,427 | ) | (52,837 | ) | 11,410 | |||||||
Financing activities | (4,575 | ) | (43,981 | ) | 39,406 | |||||||
Effect of exchange rate changes on cash and cash equivalents(1) | (211 | ) | (358 | ) | 147 | |||||||
Net increase (decrease) in cash and cash equivalents | $ | 23,747 | $ | (60,415 | ) |
• | Increasing oversight by our management in the calculation and reporting of certain tax balances of our non-U.S. operations; |
• | Enhancing policies and procedures relating to account reconciliation and analysis; |
• | Augmenting our tax accounting resources; |
• | Increasing communication to information providers for tax jurisdiction specific information; and |
• | Strengthening communication and information flows between the tax department and the controllers group. |
10.1 | Amended and Restated 2007 Employee Stock Purchase Plan (as amended and restated on July 21, 2016). | |
10.2 | Haemonetics Corporation Worldwide Executive Bonus Plan as adopted on July 21, 2016. | |
31.1 | Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher Simon, President and Chief Executive Officer of the Company | |
31.2 | Certification pursuant to Section 302 of Sarbanes-Oxley of 2002, of William Burke, 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 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 William Burke, Executive Vice President, Chief Financial Officer of the Company | |
101* | The following materials from Haemonetics Corporation on Form 10-Q for the quarter ended October 1, 2016, formatted in Extensible Business Reporting Language (XBRL); (i) Consolidated Statements of Income and Comprehensive Income, (ii) Consolidated Balance Sheets, (iii) Consolidated Statements of Cash Flows, and (iv) Notes to Consolidated Financial Statements. |
* | In accordance with Rule 406T of Regulation S-T, the XBRL-related information in Exhibit 101 to this Form 10-Q is deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is deemed not filed for the purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these sections. | |
† | Agreement, plan, or arrangement related to the compensation of officers or directors |
HAEMONETICS CORPORATION | |||
11/7/2016 | By: | /s/ Christopher Simon | |
Christopher Simon, President and Chief Executive Officer | |||
(Principal Executive Officer) | |||
11/7/2016 | By: | /s/ William Burke | |
William Burke, Executive Vice President, Chief Financial Officer | |||
(Principal Financial Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Haemonetics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ Christopher Simon | ||||
Christopher Simon, President and Chief Executive | ||||
Officer (Principal Executive Officer) |
1. | I have reviewed this quarterly report on Form 10-Q of Haemonetics Corporation; |
2. | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4. | The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have: |
a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
5. | The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions): |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
/s/ William Burke | ||||
William Burke, Executive Vice President, Chief Financial Officer | ||||
(Principal Financial Officer) |
/s/ Christopher Simon | ||||
Christopher Simon, | ||||
President and Chief Executive Officer |
/s/ William Burke | ||||
William Burke, | ||||
Executive Vice President, Chief Financial Officer |
DOCUMENT AND ENTITY INFORMATION - shares |
6 Months Ended | |
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Oct. 01, 2016 |
Nov. 03, 2016 |
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Document And Entity Information [Abstract] | ||
Entity Registrant Name | HAEMONETICS CORP | |
Entity Central Index Key | 0000313143 | |
Current Fiscal Year End Date | --04-01 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Oct. 01, 2016 | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 51,657,694 |
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (LOSS) - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Oct. 01, 2016 |
Sep. 26, 2015 |
Oct. 01, 2016 |
Sep. 26, 2015 |
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Income Statement [Abstract] | ||||
Net revenues | $ 220,253 | $ 219,693 | $ 430,209 | $ 433,106 |
Cost of goods sold | 116,005 | 114,396 | 234,905 | 225,270 |
Gross profit | 104,248 | 105,297 | 195,304 | 207,836 |
Operating expenses: | ||||
Research and development | 8,336 | 11,553 | 19,773 | 22,874 |
Selling, general and administrative | 71,118 | 74,565 | 158,618 | 162,177 |
Total operating expenses | 79,454 | 86,118 | 178,391 | 185,051 |
Operating income | 24,794 | 19,179 | 16,913 | 22,785 |
Interest and other expense, net | (1,962) | (2,606) | (4,139) | (4,615) |
Income before provision for income taxes | 22,832 | 16,573 | 12,774 | 18,170 |
Provision for income taxes | 3,007 | 3,710 | 3,295 | 5,574 |
Net income | $ 19,825 | $ 12,863 | $ 9,479 | $ 12,596 |
Net earnings (loss) per share - basic (in dollars per share) | $ 0.39 | $ 0.25 | $ 0.19 | $ 0.25 |
Net earnings (loss) per share - diluted (in dollars per share) | $ 0.38 | $ 0.25 | $ 0.18 | $ 0.24 |
Weighted average shares outstanding | ||||
Basic (in shares) | 51,378 | 50,680 | 51,200 | 51,020 |
Diluted (in shares) | 51,701 | 51,187 | 51,463 | 51,638 |
Comprehensive income (loss) | $ 19,037 | $ (1,526) | $ 7,804 | $ (4,153) |
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands |
Oct. 01, 2016 |
Apr. 02, 2016 |
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Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,256 | $ 2,253 |
Intangible assets, amortization | $ 199,110 | $ 190,816 |
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) | 51,535,051 | 50,932,348 |
Common stock, shares outstanding (in shares) | 51,535,051 | 50,932,348 |
BASIS OF PRESENTATION |
6 Months Ended |
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Oct. 01, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation Our accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States 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 GAAP for complete financial statements. In the opinion of our 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 six months ended October 1, 2016 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 1, 2017, or any other interim period. Operating results for the six months ended September 26, 2015 include the correction of an understatement of the provision for income taxes in fiscal 2015, which was determined to be immaterial to all periods impacted. Absent this correction, our net income for the six months ended September 26, 2015 would have been $1.0 million higher than the amount included in the accompanying Consolidated Statements of Income and Comprehensive Income (Loss). These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended April 2, 2016. We consider 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. Refer to Note 9, Debt, for information pertaining to a debt payment that was made after the balance sheet date but prior to the issuance of the financial statements. There were no other subsequent events identified. |
RECENT ACCOUNTING PRONOUNCEMENTS |
6 Months Ended |
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Oct. 01, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Standards Implemented In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period. ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. We adopted ASU No. 2014-12 in our first quarter of fiscal 2017 using the prospective method. The adoption of ASU No. 2014-12 did not have a material effect on our financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. Part I of ASU No. 2015-12 designates contract value as the only required measure for fully benefit-responsive investment contracts. Part II simplifies the investment disclosure requirements under Topics 820, 960, 962, and 965 for employee benefits plans and Part III provides a measurement date practical expedient for fiscal periods that do not coincide with a month-end date. ASU No. 2015-12 was effective for fiscal years beginning after December 15, 2015 with early adoption permitted. The adoption of ASU No. 2015-12 did not have a material effect on our financial position or results of operations. |
EARNINGS PER SHARE ("EPS") |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE (EPS) | EARNINGS PER SHARE (“EPS”) 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 our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. For both the three and six months ended October 1, 2016, weighted average shares outstanding, assuming dilution, excludes the impact of 1.7 million anti-dilutive shares. For the three and six months ended September 26, 2015, weighted average shares outstanding, assuming dilution, excludes the impact of 1.6 million and 1.1 million anti-dilutive shares, respectively. |
PRODUCT WARRANTIES |
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Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PRODUCT WARRANTIES | PRODUCT WARRANTIES We generally provide warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience and periodically assess the adequacy of our warranty accrual, making adjustments as necessary.
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INVENTORIES |
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INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined using the first-in, first-out method.
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GOODWILL |
6 Months Ended |
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Oct. 01, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL During fiscal 2016, as a result of our annual impairment test, we determined that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of Europe, Middle East and Africa (collectively "EMEA"), for which we recorded a goodwill impairment charge. As of that test date, the reporting unit that was most at risk of impairment in future periods was the Americas Blood Center and Hospital, which had an excess fair value over carrying value of approximately 25.8% and allocated goodwill of $175.9 million. We believe that our assumptions used to determine the fair value of the Americas Blood Center and Hospital reporting unit were reasonable. If different assumptions were to be used, particularly with respect to estimating future cash flows, or if actual operating results and cash flows of the Americas Blood Center and Hospital differ from the estimated operating results and related cash flows, there is the potential that an impairment charge could result in future periods. Additionally, changes to the discount rate or the long-term growth rate could also give rise to an impairment in future periods. During the second quarter of fiscal 2017, there were no new or additional impairment indicators associated with this reporting unit. |
DERIVATIVES AND FAIR VALUE MEASUREMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | DERIVATIVES AND FAIR VALUE MEASUREMENTS We manufacture, market and sell our products globally. For the six months ended October 1, 2016, 40.6% of our sales were generated outside the U.S. in local currencies. We also incur certain manufacturing, marketing and selling costs in international markets in local currency. Accordingly, our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. Dollar, our reporting currency. We have a program in place that is designed to mitigate our 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 our financial results from changes in foreign exchange rates. We utilize foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily the Japanese Yen and the Euro, and to a lesser extent the Swiss Franc, Australian Dollar, Canadian Dollar and the Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates, but because we generally enter 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 our designated foreign currency hedge contracts as of October 1, 2016 and April 2, 2016 were cash flow hedges under ASC Topic 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in Other Comprehensive Income (Loss) until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify 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, we would reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $105.0 million as of October 1, 2016 and $107.4 million as of April 2, 2016. At October 1, 2016, losses of $5.7 million, net of tax, will be reclassified to earnings within the next twelve months. Substantially all currency cash flow hedges outstanding as of October 1, 2016 mature within twelve months. Non-Designated Foreign Currency Contracts We manage our exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. We use foreign currency forward contracts as a part of our 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 Topic 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. We had non-designated foreign currency hedge contracts under ASC Topic 815 outstanding in the contract amount of $50.0 million as of October 1, 2016 and $48.8 million as of April 2, 2016. Interest Rate Swaps On December 21, 2012, we entered into two interest rate swap agreements (the "Swaps") on a total notional amount of $250.0 million of debt. The Swaps are amortizing and mature on August 1, 2017. We designated the Swaps as cash flow hedges of variable interest rate risk associated with $250.0 million of indebtedness. As of October 1, 2016, the notional amount of these Swaps was $150.0 million. For three and six months ended October 1, 2016 and September 26, 2015, we recorded nominal activity in Accumulated Other Comprehensive Loss to recognize the effective portion of the fair value of interest rate swaps that qualify as cash flow hedges. Fair Value of Derivative Instruments The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of income and comprehensive income (loss) for the six months ended October 1, 2016:
* We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. We did not have fair value hedges or net investment hedges outstanding as of October 1, 2016 or April 2, 2016. As of October 1, 2016, no deferred tax assets were recognized for designated foreign currency hedges. ASC Topic 815 requires all derivative instruments to be recognized at their fair value as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we 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 our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use 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 October 1, 2016, we have classified our 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 our derivative instruments. The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of October 1, 2016 and April 2, 2016:
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:
Our money market funds carried at fair value are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. Fair Value Measured on a Recurring Basis Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of October 1, 2016 and April 2, 2016.
For the six months ended October 1, 2016, non-designated foreign currency hedge contracts were not significant and are not disclosed separately in the above table. Other Fair Value Disclosures The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES We conduct business globally and report our results of operations in a number of foreign jurisdictions in addition to the United States. Our reported tax rate is generally lower than the U.S. federal statutory rate as the income tax rates in the foreign jurisdictions in which we operate are generally lower than the U.S. statutory tax rate. During the three months ended October 1, 2016 and September 26, 2015, we reported an income tax provision of $3.0 million and $3.7 million, respectively, representing effective tax rates of 13.2% and 22.4%, respectively. For the six months ended October 1, 2016 and September 26, 2015 we reported an income tax provision of $3.3 million and $5.6 million, respectively, representing effective tax rates of 25.8% and 30.7%, respectively. The decrease in our income tax provision for both the three and six months ended October 1, 2016, as compared to the prior year periods, was primarily due to changes in the jurisdictional mix of earnings. During the six months ended October 1, 2016, the income tax provision includes a discrete tax provision of $1.4 million for an uncertain tax position that was triggered by a reduction in workforce in one of our foreign subsidiaries during the first quarter of fiscal 2017. We had previously negotiated a tax holiday under which we were required to maintain certain levels of headcount for a multi-year period. During the first quarter of fiscal 2017, as a result of a reduction in workforce, we were unable to satisfy the required headcount levels and became subject to a potential tax assessment related to historical tax years. The tax provision associated with this tax reserve establishment was partially offset by a tax benefit for the release of a tax reserve due to the expiration of statute of limitations during the second quarter of fiscal 2017. We are in a three year cumulative loss position in the U.S. and, accordingly, maintain a valuation allowance against our U.S. deferred tax assets. We also maintain a valuation allowance against certain foreign deferred tax assets which we have concluded are not more-likely-than-not realizable. The income tax provision for the six months ended September 26, 2015 includes a discrete tax provision of $1.0 million to increase the deferred tax liability related to amortizable goodwill as a result of the statutory capital gains tax rate in Puerto Rico increasing from 15% to 20%. Unrecognized Tax Benefits Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of October 1, 2016 we had $3.7 million of unrecognized tax benefits, of which $1.8 million would impact the effective tax rate, if recognized. As of April 2, 2016, we had $2.5 million of unrecognized tax benefits, of which $0.6 million would impact the effective tax rate, if recognized. During the six months ended October 1, 2016, our unrecognized tax benefits were increased by $1.3 million due to the establishment of a tax reserve for the potential tax assessment associated with a foreign subsidiary’s historical tax years as a result of a reduction in workforce which impacts a previously negotiated tax holiday. The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal periods ended October 1, 2016 and April 2, 2016:
As of October 1, 2016, we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $1.6 million in the next twelve months, as a result of closure of various statutes of limitations or settlements. Our historic practice has been and continues to be to recognize interest and penalties related to Federal, state and foreign income tax matters in income tax expense. Approximately $0.4 million of gross interest and penalties were accrued at October 1, 2016 and April 2, 2016 and is not included in the amounts above. Tax expense associated with accrued interest and penalties was insignificant for the six months ended October 1, 2016. We conduct business globally and, as a result, file consolidated and separate Federal, state and foreign income tax returns in multiple jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. With a few exceptions, we are no longer subject to U.S. federal, state, or local income tax examinations for years before 2012 and foreign income tax examinations for years before 2011. |
DEBT |
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Oct. 01, 2016 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On August 1, 2012, we entered into a credit agreement ("Credit Agreement") with certain lenders (together, “Lenders”) which provided for a $475.0 million Term Loan and a $50.0 million revolving loan (the “Revolving Credit Facility”), and together with the Term Loan, (the “Credit Facilities”). The Credit Facilities had a term of five years and mature on August 1, 2017. Interest was based on the Adjusted LIBOR plus a range of 1.125% to 1.500% depending on achievement of leverage ratios and customary credit terms which included financial and negative covenants. On June 30, 2014, we modified our existing Credit Facilities by extending the maturity date to July 1, 2019, extending the principal repayments of the Term Loan, and modifying certain restrictive covenants to allow greater operational flexibility and enhanced near term liquidity. In addition, the amended Credit Agreement provides for a $100.0 million revolving credit facility and establishes interest rates in the range of LIBOR plus 1.125% – 1.500%, depending on certain conditions. No additional amounts were borrowed as a result of this modification. The fair value of debt approximates its current value of $389.0 million as of October 1, 2016. During the three and six months ended October 1, 2016, we paid $11.9 million and $19.0 million in principal repayments, respectively, for the Term Loan. In addition, on October 31, 2016, we reduced our borrowings on the Revolving Credit Facility by $20.0 million as part of our normal cash management process. We were in compliance with the leverage and interest coverage ratios specified in the Credit Agreement as well as all other bank covenants as of October 1, 2016. |
COMMITMENTS AND CONTINGENCIES |
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Oct. 01, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are presently engaged in various legal actions, and although the total liability cannot be determined at the present time, based on consultation with counsel, we believe that any such liability will not materially affect our consolidated financial position or our results of operations. Italian Employment Litigation Our Italian manufacturing subsidiary is party to several actions initiated by employees of the facility in Ascoli-Piceno, Italy where we have ceased manufacturing operations. These include actions claiming (i) working conditions and minimum salaries should have been established by either a different classification under their national collective bargaining agreement or a different agreement altogether, (ii) certain solidarity agreements, which are arrangements between the Company, employees and the government to continue full pay and benefits for employees who would otherwise be terminated in times of low demand, are void, and (iii) payment of the extra time used for changing into and out of their working clothes at the beginning and end of each shift. In addition, a union represented in the Ascoli plant has filed an action alleging that the Company discriminated against it in favor of three other represented unions by (i) interfering with an employee referendum, (ii) interfering with an employee petition to recall union representatives from office, and (iii) excluding the union from certain meetings. Finally, we have been added as defendants on claims filed against Pall Corporation prior to our acquisition of the plant in August 2012. These claims relate to agreements to "freeze" benefit allowances for a certain period in exchange for Pall's commitments on hiring and plant investment. The total amount of damages claimed by the plaintiffs in these matters is approximately $4.6 million. At this point in the proceedings, we believe the losses are unlikely and therefore no amounts have been accrued. In the future, we may receive other similar claims or adverse rulings from the courts which changes our judgment on these cases. SOLX Arbitration In July 2016, H2 Equity, LLC, formerly known as Hemerus Corporation, filed an arbitration claim for $17 million in milestone and royalty payments allegedly owed as part of our acquisition of the filter and storage solution business from Hemerus Medical, LLC ("Hemerus") in fiscal 2014. The acquired storage solution is referred to as SOLX. At the closing in April 2013, Haemonetics paid Hemerus a total of $24 million and agreed to a $3 million milestone payment due when the U.S. Food and Drug Administration ("FDA") approved a new indication for SOLX (the “24-Hour Approval”), using a filter acquired from Hemerus. We also agreed to make future royalty payments up to a cumulative maximum of $14 million based on the sale of products incorporating SOLX over a ten year period. Due to performance issues with the Hemerus filter, Haemonetics filed for, and received, the 24-Hour Approval using a Haemonetics filter. Accordingly, Haemonetics did not pay Hemerus the $3 million milestone payment because the 24-Hour Approval was obtained using a Haemonetics filter, not a Hemerus filter. In addition, we have not paid any royalties to date as we have not made any commercial sales of products incorporating SOLX. H2 Equity claims, in part, that we owe them $3 million for the receipt of the 24-Hour Approval despite the use of a Haemonetics filter to obtain the approval and that we have failed to make commercially reasonable efforts to market and sell products incorporating SOLX. We believe that we have meritorious defenses to these claims. It is not possible to accurately evaluate the likelihood or amount of any potential losses related to this claim and therefore no amounts have been accrued. Product Recall In June 2016, we issued a voluntary recall of certain whole blood collection kits sold to our Blood Center customers in the United States. The recall resulted from some collection sets' filters failing to adequately remove leukocytes from collected blood. Because most U.S. hospitals prefer to transfuse leukoreduced blood, our blood center customers may have conducted further tests to confirm the blood was adequately leukoreduced, sold the blood as non-leukoreduced at a lower price or discarded the blood collected using the defective sets. As a result of the recall, we have recorded total charges of $4.3 million during the six months ended October 1, 2016, which consists of $3.7 million of charges associated with customer returns and inventory reserves and $0.6 million of charges associated with customer claims, as discussed below. We may record incremental charges in future periods. We determined that the affected sets were distributed between April and June 2016; credits have been issued to customers who returned affected sets purchased during this period. During the six months ended October 1, 2016, we recorded charges of $3.7 million, which consisted of $2.5 million of estimated sales returns, $1.1 million of net inventory reserves for the affected collection sets on-hand that had not yet been shipped to customers and $0.1 million of freight expenses. Our estimate of sales returns was based on preliminary returns data received to date, however, actual customer returns are not expected to conclude until the third quarter of fiscal 2017. Additionally, we received claims from customers which comprised substantially all the affected units. These claims seek reimbursement for losses sustained as a result of the recall and total $14.5 million. We believe it is probable that we will incur expenses as a result of these claims and that our range of loss is $0.6 million to $14.5 million, however, we do not have sufficient information to develop a best estimate within this range. Accordingly, we have recorded a liability of $0.6 million, which represents the low end of the range. Incremental charges may be recorded in future periods as additional customer returns and claims data becomes available. We have insurance policies in place which may provide coverage for certain types of potential claims. We will assess the potential for insurance recoveries as we receive more information about customer claims in future reporting periods. |
SEGMENT AND ENTERPRISE-WIDE INFORMATION |
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Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT AND ENTERPRISE-WIDE INFORMATION | SEGMENT AND ENTERPRISE-WIDE INFORMATION We determine our reportable segments by first identifying our 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. Our operating segments are based primarily on geography. North America Plasma is a separate operating segment with dedicated segment management due the size and scale of the plasma business. We aggregate components within an operating segment that have similar economic characteristics. The Company’s reportable segments are as follows:
The Company has aggregated the following two operating segments into the All Other reportable segment based upon their similar operational and economic characteristics, including similarity of operating margin:
In periods prior to the fourth quarter of fiscal 2016, we believed a single reportable segment was consistent with its basic organizational structure and believed aggregation was consistent with its primary basis for decision making. As a result, prior year segment information has been restated to conform with the current reportable segments. During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of All Other are now reported as components of EMEA. Accordingly, the prior year numbers have been updated to reflect this reclassification as well as other changes within the cost reporting structure that occurred in the first quarter of fiscal 2017. These changes did not have an impact on our ability to aggregate Americas Blood Center and Hospital with Asia - Pacific. Management measures and evaluates the operating segments based on operating margin. Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include restructuring and turnaround costs, deal amortization, and asset impairments. 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 on a constant currency basis, therefore segment information is presented on a constant currency basis. Selected information by business segment is presented below:
In connection with the global strategic review of our business portfolio, we organized our current products into four franchises for purposes of evaluating their growth potential: Plasma, Blood Center, Cell Processing and Hemostasis Management. Management reviews revenue trends based on these franchises. Net revenues by franchise are as follows:
Net revenues generated in our principle operating regions on a reported basis are as follows:
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RESTRUCTURING |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING | RESTRUCTURING On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business. During the first quarter of fiscal 2017, in connection with our global strategic review, we launched a restructuring program designed to reposition our organization and improve our cost structure. This program includes both a reduction of headcount and operating costs as well as projects to simplify product lines. We may also take steps to modify our manufacturing operations to align with our strategic direction. We expect to incur approximately $26 million of restructuring and turnaround related costs, comprised of $17 million in termination benefits and $9 million in other related exit costs. Substantially all of these charges result in cash outlays expected to be incurred during fiscal 2017. Savings from this program are estimated to be approximately $40 million in fiscal 2017. The Company is evaluating non-performing assets and business units as part of its turnaround, which may result in future cash outlays or non-cash charges. During the three and six months ended October 1, 2016, we incurred $1.1 million and $18.8 million, respectively, of restructuring and turnaround charges under this program. Additionally, during the three and six months ended October 1, 2016, we recorded $0.5 million and $1.6 million, respectively, of restructuring and turnaround charges under a prior program. The following summarizes the restructuring activity for the six months ended October 1, 2016:
Substantially all of the restructuring expenses have been included as a component of selling, general and administrative expenses in the accompanying consolidated statements of income. As of October 1, 2016, we had a restructuring liability of $11.4 million, of which approximately $10.8 million is payable within the next twelve months. In addition to the restructuring expenses included in the table above, during the six months ended October 1, 2016, we also incurred $4.4 million of costs that do not constitute as restructuring under ASC 420, which we refer to as turnaround costs. These costs consist primarily of expenditures directly related to our restructuring initiative and include program management, implementation of the global strategic review initiatives and accelerated depreciation. The tables below present restructuring and turnaround costs by reportable segment:
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CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS |
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Oct. 01, 2016 | |
Research and Development [Abstract] | |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS For costs incurred related to the development of software to be sold, leased or otherwise marketed, we apply the provisions of ASC 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. We capitalized $6.4 million and $8.5 million in software development costs for ongoing initiatives during the six months ended October 1, 2016 and September 26, 2015, respectively. At October 1, 2016 and April 2, 2016, we have a total of $60.1 million and $54.9 million of capitalized software costs, respectively, of which $15.1 million and $14.4 million are related to in-process software development initiatives, respectively. During the six months ended October 1, 2016 and September 26, 2015, $4.5 million and $6.4 million of capitalized costs were placed into service, respectively. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. We review these assets for impairment at least annually. During the six months ended October 1, 2016, we impaired $1.1 million of capitalized software. The impairment charge is classified within cost of goods sold on our consolidated statements of income. |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of Accumulated Other Comprehensive Loss are as follows:
(1) Presented net of income taxes, the amounts of which are insignificant. |
EARNINGS PER SHARE ("EPS") (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share Reconciliation | The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations.
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PRODUCT WARRANTIES (Tables) |
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Oct. 01, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Product Warranty Liability | We estimate our potential warranty expense based on our historical warranty experience and periodically assess the adequacy of our warranty accrual, making adjustments as necessary.
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INVENTORIES (Tables) |
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Inventory Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined using the first-in, first-out method.
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DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of income and comprehensive income (loss) for the six months ended October 1, 2016:
* We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. |
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Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets | The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of October 1, 2016 and April 2, 2016:
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Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of October 1, 2016 and April 2, 2016.
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SEGMENT AND ENTERPRISE-WIDE INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Selected Information by Business Segment | Selected information by business segment is presented below:
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Schedule of Revenues by Product Line and Geographic Regions | Net revenues by franchise are as follows:
Net revenues generated in our principle operating regions on a reported basis are as follows:
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RESTRUCTURING (Tables) |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | The following summarizes the restructuring activity for the six months ended October 1, 2016:
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Schedule of Restructuring and Related Costs | The tables below present restructuring and turnaround costs by reportable segment:
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COMPREHENSIVE INCOME (Tables) |
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Stockholders' Equity Note [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Loss are as follows:
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BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | |
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Oct. 01, 2016 |
Sep. 26, 2015 |
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Basis of Presentation [Line Items] | ||
Correction of understatement, provision for income taxes | $ 1.4 | $ 1.0 |
Operating Income (Loss) [Member] | ||
Basis of Presentation [Line Items] | ||
Correction of understatement, provision for income taxes | $ 1.0 |
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
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Oct. 01, 2016 |
Sep. 26, 2015 |
Oct. 01, 2016 |
Sep. 26, 2015 |
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Basic EPS | ||||
Net income | $ 19,825 | $ 12,863 | $ 9,479 | $ 12,596 |
Basic weighted average shares (in shares) | 51,378 | 50,680 | 51,200 | 51,020 |
Basic income (loss) per share (in dollars per share) | $ 0.39 | $ 0.25 | $ 0.19 | $ 0.25 |
Diluted EPS | ||||
Net income | $ 19,825 | $ 12,863 | $ 9,479 | $ 12,596 |
Basic weighted average shares (in shares) | 51,378 | 50,680 | 51,200 | 51,020 |
Net effect of common stock equivalents (in shares) | 323 | 507 | 263 | 618 |
Diluted weighted average shares (in shares) | 51,701 | 51,187 | 51,463 | 51,638 |
Diluted income (loss) per share (in dollars per share) | $ 0.38 | $ 0.25 | $ 0.18 | $ 0.24 |
Anti-dilutive shares excluded (in shares) | 1,700 | 1,600 | 1,700 | 1,100 |
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands |
6 Months Ended | |
---|---|---|
Oct. 01, 2016 |
Sep. 26, 2015 |
|
Product Warranties Disclosures [Abstract] | ||
General Warranty Period on Parts and Labor | 1 year | |
Product Warranties [Roll Forward] | ||
Warranty accrual as of the beginning of the period | $ 420 | $ 531 |
Warranty provision | 390 | 704 |
Warranty spending | (583) | (738) |
Warranty accrual as of the end of the period | $ 227 | $ 497 |
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands |
Oct. 01, 2016 |
Apr. 02, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 56,486 | $ 62,062 |
Work-in-process | 11,652 | 13,180 |
Finished goods | 126,373 | 111,786 |
Inventories, net | $ 194,511 | $ 187,028 |
GOODWILL (Details) - USD ($) $ in Thousands |
Oct. 01, 2016 |
Apr. 02, 2016 |
---|---|---|
Goodwill [Line Items] | ||
Goodwill | $ 268,546 | $ 267,840 |
Americas Blood Center and Hospital [Member] | ||
Goodwill [Line Items] | ||
Reporting Unit, Percentage of Fair Value in Excess of Carrying Amount | 25.80% | |
Goodwill | $ 175,900 |
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) - Designated as Hedging Instrument - USD ($) $ in Thousands |
Oct. 01, 2016 |
Apr. 02, 2016 |
---|---|---|
Derivative Assets: | ||
Derivative Assets | $ 389 | $ 427 |
Derivative Liabilities: | ||
Derivative Liabilities | 3,941 | 4,210 |
Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 389 | 427 |
Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 3,914 | 4,056 |
Interest Rate Swap [Member] | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 27 | $ 154 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Oct. 01, 2016 |
Sep. 26, 2015 |
Oct. 01, 2016 |
Sep. 26, 2015 |
Apr. 02, 2016 |
|
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 3,007 | $ 3,710 | $ 3,295 | $ 5,574 | |
Reported tax rate | 13.20% | 22.40% | 25.80% | 30.70% | |
Discrete tax provision | $ 1,400 | $ 1,000 | |||
Statutory capital gains tax rate in Puerto Rico | 20.00% | 20.00% | 15.00% | ||
Reconciliation of Unrecognized Tax Benefits [Roll Forward] | |||||
Beginning balance | $ 2,523 | 7,070 | |||
Additions for tax positions of prior years | 1,320 | 340 | |||
Reductions of tax positions | 0 | (4,158) | |||
Closure of statute of limitations | (165) | $ (729) | |||
Ending balance | $ 3,678 | 3,678 | |||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 1,800 | 1,800 | $ 600 | ||
Unrecognized Tax Benefits, Increase Resulting from Potential Tax Impacts of Restructuring | 1,300 | ||||
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,600 | 1,600 | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 400 | $ 400 |
DEBT (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Oct. 31, 2016 |
Aug. 01, 2015 |
Aug. 01, 2012 |
Oct. 01, 2016 |
Oct. 01, 2016 |
Jun. 30, 2014 |
|
Debt Instrument [Line Items] | ||||||
Debt outstanding | $ 389,000,000 | $ 389,000,000 | ||||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.125% | |||||
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 1.50% | |||||
Term Loan [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Face amount of debt | $ 475,000,000 | |||||
Principal repayments | $ 11,900,000 | $ 19,000,000 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 50,000,000 | $ 100,000,000 | ||||
Term of credit facilities | 5 years | |||||
Revolving Credit Facility [Member] | Subsequent Event [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal repayments | $ 20,000,000 |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Oct. 01, 2016 |
Sep. 26, 2015 |
Apr. 02, 2016 |
|
Research and Development [Abstract] | |||
Capitalized software development costs for ongoing initiatives | $ 6.4 | $ 8.5 | |
Software costs capitalized, net | 60.1 | $ 54.9 | |
Total costs capitalized related to in process software development initiatives | 15.1 | $ 14.4 | |
Capitalized software development costs placed into service | 4.5 | $ 6.4 | |
Impairment of capitalized software | $ 1.1 |
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