SEGMENT AND ENTERPRISE-WIDE INFORMATION

9 Months Ended

Dec. 26, 2020

14. 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, gains on divestitures and sale of assets, asset impairments and other related charges, accelerated depreciation and related costs, costs related to compliance with the European Union Medical Device Regulation, transaction costs and certain 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				Nine Months Ended
(In thousands)	December 26, 2020		December 28, 2019		December 26, 2020		December 28, 2019
Net revenues
Plasma	$	102,154	$	120,997	$	249,587	$	348,141
Blood Center	80,417		85,314		234,446		246,977
Hospital	52,334		50,753		148,927		147,602
Net revenues by business unit	234,905		257,064		632,960		742,720
Service (1)	4,972		5,197		15,396		15,339
Effect of exchange rates	494		(3,291)		(2,922)		(8,072)
Net revenues	$	240,371	$	258,970	$	645,434	$	749,987
(1) Reflects revenue for service, maintenance and parts


	Three Months Ended				Nine Months Ended
(In thousands)	December 26, 2020		December 28, 2019		December 26, 2020		December 28, 2019
Segment operating income
Plasma	$	52,673	$	59,343	$	129,846	$	169,844
Blood Center	36,424		42,197		108,926		121,124
Hospital	22,430		20,593		61,672		60,360
Segment operating income	111,527		122,133		300,444		351,328
Corporate expenses (1)	(63,202)		(63,080)		(185,005)		(188,363)
Effect of exchange rates	4,286		2,521		8,644		7,791
Deal amortization	(7,805)		(5,772)		(24,204)		(17,681)
Restructuring and turnaround costs	(3,143)		(7,798)		(11,583)		(13,582)
Transaction costs	—		—		(3,063)		—
PCS2 accelerated depreciation and related costs	(1,146)		(6,649)		(3,332)		(18,708)
European Medical Device Regulation costs and other	(1,207)		(448)		(2,696)		(304)
Impairment of assets and other related charges	—		—		(896)		(51,220)
Gains on divestitures and sale of assets	1,115		—		32,613		8,083
Operating income	$	40,425	$	40,907	$	110,922	$	77,344
(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				Nine Months Ended
(In thousands)	December 26, 2020		December 28, 2019		December 26, 2020		December 28, 2019
Plasma products and services	$	123,510	$	141,231	$	309,933	$	406,825
Blood Center products and services	62,787		66,126		182,687		191,648
Hospital products and services	54,074		51,613		152,814		151,514
Net revenues	$	240,371	$	258,970	$	645,434	$	749,987

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


	Three Months Ended				Nine Months Ended
(In thousands)	December 26, 2020		December 28, 2019		December 26, 2020		December 28, 2019
United States	$	147,607	$	167,238	$	382,600	$	485,493
Japan	20,854		19,268		57,330		55,111
Europe	41,874		40,984		123,541		115,811
Asia	29,050		29,436		77,602		88,269
Other	986		2,044		4,361		5,303
Net revenues	$	240,371	$	258,970	$	645,434	$	749,987