SEGMENT AND ENTERPRISE-WIDE INFORMATION

6 Months Ended

Sep. 28, 2019

15. 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. Historically, the Company's operating segments were based primarily on geography. Effective as of March 31, 2019, the Company completed the transition of its operating structure to three global business units and accordingly, reorganized its reporting structure to align with its three global business units and the information that will be regularly reviewed by the Company's chief operating decision maker.

Following the reorganization, the Company's reportable segments are as follows:


•	Plasma


•	Blood Center


•	Hospital

Management measures and evaluates the operating segments based on operating income. Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include restructuring and turnaround costs, deal amortization, asset impairments, accelerated depreciation, gains and losses on asset dispositions, certain transaction costs and legal charges. Although these amounts are excluded from segment operating income, as applicable, they are included in the reconciliations that follow. Management measures and evaluates the Company's net revenues and operating income using internally derived standard currency exchange rates that remain constant from year to year; therefore, segment information is presented on this basis.

Selected information by reportable segment is presented below:



	Three Months Ended						Six Months Ended
(In thousands)	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Net revenues
Plasma	$	116,381		$	106,850		$	227,144		$	206,140
Blood Center	83,667			83,513			161,663			163,331
Hospital	49,662			47,431			96,849			93,276
Net revenues by business unit	249,710			237,794			485,656			462,747
Service ⁽¹⁾	5,276			4,737			10,142			9,062
Effect of exchange rates	(2,420		)	(950		)	(4,781		)	(881		)
Net revenues	$	252,566		$	241,581		$	491,017		$	470,928
⁽¹⁾ Reflects revenue for service, maintenance and parts



	Three Months Ended						Six Months Ended
(In thousands)	September 28, 2019			September 29, 2018			September 28, 2019			September 29, 2018
Segment operating income
Plasma	$	56,776		$	44,607		$	110,501		$	86,528
Blood Center	41,208			41,055			78,927			79,527
Hospital	20,851			19,515			39,767			37,843
Segment operating income	118,835			105,177			229,195			203,898
Corporate expenses ⁽¹⁾	(63,580		)	(68,899		)	(125,283		)	(129,949		)
Effect of exchange rates	2,501			2,594			5,270			5,649
Impairment of assets and other related charges	(54		)	—			(51,220		)	(21,170		)
Deal amortization	(5,935		)	(6,236		)	(11,909		)	(12,536		)
PCS2 accelerated depreciation and related costs	(6,534		)	(4,442		)	(12,062		)	(8,381		)
Gain on sale of assets	8,083			—			8,083			—
Restructuring and turnaround costs	(3,757		)	(2,118		)	(5,784		)	(5,467		)
Other	180			—			147			(675		)
Operating income	$	49,739		$	26,076		$	36,437		$	31,369
⁽¹⁾ Reflects shared service expenses including quality and regulatory, customer and field service, research and development, manufacturing and supply chain, as well as other corporate support functions.

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

Net revenues by product line are as follows:



	Three Months Ended				Six Months Ended
(In thousands)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Plasma products and services	$	135,849	$	124,352	$	265,594	$	241,255
Blood Center products and services	65,615		68,243		125,522		132,726
Hospital products and services	51,102		48,986		99,901		96,947
Net revenues	$	252,566	$	241,581	$	491,017	$	470,928

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



	Three Months Ended				Six Months Ended
(In thousands)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
United States	$	161,880	$	152,926	$	318,255	$	295,066
Japan	20,376		17,172		35,843		34,561
Europe	38,074		39,096		74,827		78,098
Asia	30,192		30,575		58,833		59,970
Other	2,044		1,812		3,259		3,233
Net revenues	$	252,566	$	241,581	$	491,017	$	470,928