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SEGMENT AND ENTERPRISE-WIDE INFORMATION
9 Months Ended
Dec. 31, 2016
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:
Japan
Europe, Middle East and Africa (collectively “EMEA”)
North America Plasma
All Other
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:
Americas Blood Center and Hospital
Asia - Pacific
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 to 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 income. Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include restructuring and turnaround costs, deal amortization, 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 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 business segment is presented below:
 
Three Months Ended
 
Nine Months Ended
(In thousands)
December 31,
2016
 
December 26,
2015
 
December 31,
2016
 
December 26,
2015
Net revenues
 
 
 
 
 
 
 
Japan
$
20,173

 
$
22,709

 
$
53,730

 
$
60,212

EMEA
49,857

 
53,258

 
141,531

 
150,267

North America Plasma
83,324

 
73,378

 
235,091

 
206,427

All Other
79,884

 
85,218

 
236,315

 
248,217

Net revenues before foreign exchange impact
233,238

 
234,563

 
666,667

 
665,123

Effect of exchange rates
(5,397
)
 
(1,179
)
 
(8,617
)
 
1,367

Net revenues
$
227,841

 
$
233,384

 
$
658,050

 
$
666,490

 
Three Months Ended
 
Nine Months Ended
(In thousands)
December 31,
2016
 
December 26,
2015
 
December 31,
2016
 
December 26,
2015
Segment operating income
 
 
 
 
 
 
 
Japan
$
9,331

 
$
10,013

 
$
24,335

 
$
26,643

EMEA
13,116

 
13,280

 
33,866

 
35,292

North America Plasma
24,660

 
28,445

 
80,209

 
81,909

All Other
26,441

 
29,682

 
82,406

 
88,156

Segment operating income
73,548

 
81,420

 
220,816

 
232,000

  Corporate operating expenses
(38,683
)
 
(46,481
)
 
(132,550
)
 
(142,007
)
  Effect of exchange rates
(151
)
 
(7
)
 
(790
)
 
3,875

Restructuring and turnaround costs
(6,762
)
 
(8,570
)
 
(27,215
)
 
(29,746
)
Deal amortization
(6,530
)
 
(7,389
)
 
(20,611
)
 
(22,193
)
Asset impairments
(210
)
 
(85,048
)
 
(1,525
)
 
(85,048
)
  Contingent consideration income

 
4,898

 

 
4,727

Operating income
$
21,212

 
$
(61,177
)
 
$
38,125

 
$
(38,392
)


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, however, no other financial information is currently available on this basis.
Net revenues by franchise are as follows:
 
 
Three Months Ended
Nine Months Ended
(In thousands)
 
December 31,
2016
 
December 26,
2015
 
December 31, 2016
 
December 26, 2015
Plasma
 
$
108,655

 
$
100,578

 
$
309,868

 
$
282,141

Blood Center
 
76,354

 
90,418

 
221,567

 
257,736

Cell Processing
 
25,918

 
27,741

 
77,949

 
83,659

Hemostasis Management
 
16,914

 
14,647

 
48,666

 
42,954

Net revenues
 
$
227,841

 
$
233,384

 
$
658,050

 
$
666,490

Net revenues generated in our principle operating regions on a reported basis are as follows:
 
Three Months Ended
 
Nine Months Ended
(In thousands)
December 31,
2016
 
December 26,
2015
 
December 31,
2016
 
December 26,
2015
United States
$
136,759

 
$
131,664

 
$
393,302

 
$
379,390

Japan
22,319

 
19,482

 
58,949

 
50,406

Europe
38,892

 
52,453

 
116,865

 
150,610

Asia
27,749

 
27,755

 
83,125

 
79,878

Other
2,122

 
2,030

 
5,809

 
6,206

Net revenues
$
227,841

 
$
233,384

 
$
658,050

 
$
666,490