XML 26 R12.htm IDEA: XBRL DOCUMENT
v3.7.0.1

GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended
--- | ---
Apr. 01, 2017
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Impairment Testing and Charges Under ASC Topic 350, Intangibles - Goodwill and Other, goodwill and intangible assets determined to have indefinite useful lives are not amortized. Instead these assets are evaluated for impairment at least annually, or on an interim basis between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We perform our annual impairment test on the first day of the fiscal fourth quarter for each of our reporting units. Our reporting units for purposes of assessing goodwill impairment are organized primarily based on operating segments and geography and include: (a) North America Plasma, (b) North America Blood Center, (c) North America Hospital, (d) EMEA, (e) Asia-Pacific and (f) Japan. In the prior period, North America Blood Center and North America Hospital were components of a single reporting unit, Americas Blood Center and Hospital. During the fourth quarter of fiscal 2017, we completed certain organizational changes which resulted in the disaggregation of Americas Blood Center and Hospital into two separate reporting units. The goodwill associated with the legacy Americas Blood Center and Hospital reporting unit was allocated to the North America Blood Center and North America Hospital reporting units based on their relative fair values. The North America Plasma reporting unit is a separate operating segment with dedicated segment management due the size and scale of the Plasma business unit. In fiscal 2017, we early adopted ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350): Simplifying the Test for Goodwill Impairment. Under this amendment, entities perform their goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. We utilized a discounted cash flow approach in order to value our reporting units for the test, which required that we forecast future cash flows of the reporting units and discount the cash flow stream based upon a weighted average cost of capital that was derived, in part, from comparable companies within similar industries. The discounted cash flow calculations also included a terminal value calculation that was based upon an expected long-term growth rate for the applicable reporting unit. We believe that our procedures for estimating discounted future cash flows, including the terminal valuation, were reasonable and consistent with market conditions at the time of estimation. We corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation and by reconciling the aggregate fair value of our reporting units to our market capitalization at the time of the test. The results of the goodwill impairment test performed in the fourth quarter of fiscal 2017 indicated that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of North America Blood Center. For North America Blood Center we recorded an impairment charge of $57.0 million, which represented the entire goodwill balance associated with this reporting unit. There were no other reporting units at risk of impairment as of the fiscal 2017 annual test date. During fiscal 2016, we recorded a goodwill impairment charge of $66.3 million associated with the EMEA reporting unit. At the time the impairment assessment was performed, this represented the entire goodwill balance of this reporting unit. During the first quarter of fiscal 2017, management reorganized its operating segments such that certain components of the Americas Blood Center and Hospital operating segment became components of the EMEA operating segment. As a result, we transferred $20.5 million of goodwill to the EMEA operating segment, which represented the portion of the goodwill associated with these components. The changes in the carrying amount of goodwill by operating segment for fiscal 2017 and 2016 are as follows:
(In thousands) | Japan |  | EMEA |  | North America Plasma |  | All Other |  | Total
Carrying amount as of March 28, 2015 | $ | 24,899 |  |  | $ | 72,695 |  |  | $ | 26,415 |  |  | $ | 210,301 |  |  | $ | 334,310 |
Impairment charge | — |  |  | (66,305 | ) |  | — |  |  | — |  |  | (66,305 | )
Transfer of goodwill between segments | — |  |  | (6,390 | ) |  | — |  |  | 6,390 |  |  | — |
Currency translation | (16 | ) |  | — |  |  | — |  |  | (149 | ) |  | (165 | )
Carrying amount as of April 2, 2016 | $ | 24,883 |  |  | $ | — |  |  | $ | 26,415 |  |  | $ | 216,542 |  |  | $ | 267,840 |
Impairment charge | — |  |  | — |  |  | — |  |  | (56,989 | ) |  | (56,989 | )
Transfer of goodwill between segments | — |  |  | 20,545 |  |  | — |  |  | (20,545 | ) |  | — |
Currency translation | (3 | ) |  | (2 | ) |  | — |  |  | (5 | ) |  | (10 | )
Carrying amount as of April 1, 2017 | $ | 24,880 |  |  | $ | 20,543 |  |  | $ | 26,415 |  |  | $ | 139,003 |  |  | $ | 210,841 |
Intangible Asset Impairment During fiscal 2017, we impaired $4.8 million of intangible assets as a result of our review of non-core and underperforming assets and our decision to discontinue the use of and investment in certain assets, of which $4.0 million was included within cost of goods sold and $0.8 million was included within impairment of assets on the consolidated statements of (loss) income. These impairments impacted our All Other reportable segment. During fiscal 2016, we recorded intangible asset impairment charges of $25.8 million, of which $6.6 million was included within cost of goods sold, while the remaining $19.2 million was included within impairment of assets on the consolidated statements of (loss) income. Of these intangible impairments, $6.6 million related to EMEA and the remaining $19.2 million related to our All Other reportable segment. These impairment charges primarily related to the SOLX technology acquired from Hemerus Medical, LLC, which resulted in impairment charges of $18.7 million and included the reversal of the $4.9 million of contingent consideration associated with the acquisition. The remaining $7.1 million of impairment charges recorded in fiscal 2016 was due to changes in the strategic direction of the Company. The gross carrying amount of intangible assets and the related accumulated amortization as of April 1, 2017 and April 2, 2016 is as follows:
(In thousands) | Gross Carrying Amount |  | Accumulated Amortization(1) |  | Net
As of April 1, 2017 |  |  |  |  |  |  |
Amortizable: |  |  |  |  |
Patents | $ | 9,183 |  |  | $ | 8,043 |  |  | $ | 1,140 |
Capitalized software | 49,948 |  |  | 21,563 |  |  | 28,385 |
Other developed technology | 117,712 |  |  | 72,594 |  |  | 45,118 |
Customer contracts and related relationships | 194,876 |  |  | 108,073 |  |  | 86,803 |
Trade names | 7,017 |  |  | 5,499 |  |  | 1,518 |
Total | $ | 378,736 |  |  | $ | 215,772 |  |  | $ | 162,964 |
Non-amortizable: |  |  |  |  |
In-process software development | $ | 12,743 |  |  |  |  |
In-process patents | 1,833 |  |  |  |  |
Total | $ | 14,576 |  |  |  |  |
(In thousands) | Gross Carrying Amount |  | Accumulated Amortization(1) |  | Net
As of April 2, 2016 |  |  |  |  |  |  |
Amortizable: |  |  |  |  |
Patents | $ | 8,545 |  |  | $ | 7,542 |  |  | $ | 1,003 |
Capitalized software | 40,488 |  |  | 14,791 |  |  | 25,697 |
Other developed technology | 126,142 |  |  | 73,475 |  |  | 52,667 |
Customer contracts and related relationships | 196,085 |  |  | 89,804 |  |  | 106,281 |
Trade names | 7,083 |  |  | 5,204 |  |  | 1,879 |
Total | $ | 378,343 |  |  | $ | 190,816 |  |  | $ | 187,527 |
Non-amortizable: |  |  |  |  |
In-process software development | $ | 14,427 |  |  |  |  |
In-process patents | 2,504 |  |  |  |  |
Total | $ | 16,931 |  |  |  |  |
(1)Includes impairment of SOLX and other intangible assets, as discussed above.
Intangible assets include the value assigned to license rights and other developed technology, patents, customer contracts and relationships and trade names. The estimated useful lives for all of these intangible assets are 2 to 19 years. The changes to the net carrying value of our intangible assets from April 2, 2016 to April 1, 2017 reflect the impact of amortization expense and impairments of intangible assets, partially offset by the investment in capitalized software. Aggregate amortization expense for amortized intangible assets for fiscal 2017 and 2016 was $37.2 million and $59.3 million, respectively, which included $4.0 million and $25.4 million, respectively, of amortization expense as a result of the intangible asset impairments discussed above. Fiscal 2015 amortization expense was $33.5 million. Future annual amortization expense on intangible assets is estimated to be as follows:
(In thousands) |  |
Fiscal 2018 |  | $ | 31,495 |
Fiscal 2019 |  | $ | 30,089 |
Fiscal 2020 |  | $ | 28,091 |
Fiscal 2021 |  | $ | 26,190 |
Fiscal 2022 |  | $ | 25,485 |

X
- References No definition available. + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16373-109275 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=66006027&loc=d3e16323-109275 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13816-109267 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35741047&loc=d3e13854-109267 + Details
Name: | us-gaap_GoodwillAndIntangibleAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration