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Segment and Geographic Information
 9 Months Ended
Oct. 02, 2022
Industry And Geographic Information [Abstract]  
Segment and Geographic Information Segment and Geographic Information
In connection with the Combinations, the manner in which the chief operating decision maker (“CODM”) reviews the Company’s performance and allocates resources changed, resulting in three geographically-based reportable segments: North America; Europe, the Middle East and Africa (“EMEA”); and China. Although all three segments are engaged in the marketing, distribution and sale of diagnostic instruments and assays for hospitals, retailers, distributors, laboratories and/or blood and plasma centers worldwide, each region is managed separately to better align with the market dynamics of the specific geographic region. Latin America, Japan and Asia Pacific are immaterial operating segments that are not considered reportable segments and are included in “Other.” Previously, the Company operated as a single reportable segment. Prior periods have been revised to align with the current period presentation.
Total revenues by reportable segment are as follows:
Three Months EndedNine Months Ended
(In millions)October 2, 2022October 3, 2021October 2, 2022October 3, 2021
North America$517.6 $466.8 $1,917.3 $902.2 
EMEA73.7 14.8 131.0 53.8 
China80.8 12.1 163.1 46.8 
Other111.7 16.1 188.1 58.9 
Total revenues$783.8 $509.8 $2,399.5 $1,061.7 
Beginning in the second quarter of 2022, in connection with the Combinations, the basis by which the Company measures segment profit or loss changed to Adjusted EBITDA in order to manage the Company’s business to better align with the market dynamics of the specific geographic regions in which the Company operates. Prior periods have been revised to align with the current period presentation.
The following table sets forth Adjusted EBITDA by segment and the reconciliations to Income before provision for income taxes for the three and nine months ended October 2, 2022 and October 3, 2021:
Three Months EndedNine Months Ended
(In millions)October 2, 2022October 3, 2021October 2, 2022October 3, 2021
North America$326.3 $370.4 $1,356.2 $745.2 
EMEA17.2 4.5 33.5 22.8 
China44.9 4.7 83.6 20.1 
Other29.8 7.6 63.9 35.7 
Total segment Adjusted EBITDA418.2 387.2 1,537.2 823.8 
Corporate (1)
(191.4)(91.9)(451.3)(253.2)
Depreciation and amortization(104.2)(12.7)(167.0)(37.3)
Interest expense, net(29.7)(1.3)(41.0)(4.7)
Acquisition and integration costs(26.4)— (109.6)(1.8)
Loss on extinguishment of debt— — (24.0)— 
Unwind inventory fair value adjustment(35.4)— (46.6)— 
Amortization of deferred cloud computing
    implementation costs		(1.6)(1.0)(3.9)(2.9)
Derivative mark-to-market gain3.4 — 4.4 — 
Gain (loss) on investments— 1.2 (0.8)1.2 
Employee compensation charges and other costs(1.3)— (1.8)— 
EU medical device regulation transition costs (2)
(0.6)— (1.0)— 
Tax indemnification income0.3 — 0.3 — 
Change in fair value of acquisition contingencies— — (0.1)(0.1)
Income before provision for income taxes$31.3 $281.5 $694.8 $525.0 
(1) Primarily consists of costs related to executive and staff functions, including certain finance, human resources, manufacturing and information technology (“IT”) functions, which benefit the Company as a whole. These costs are primarily related to the general management of these functions on a corporate level and the design and development of programs, policies and procedures that are then implemented in the individual segments, with each segment bearing its own cost of implementation. The Company’s corporate function also includes debt and stock-based compensation associated with all employee stock-based awards.
(2) Represents incremental consulting costs and research and development (“R&D”) manufacturing site costs to align compliance of Ortho’s existing, on-market products that were previously registered under the European In Vitro Diagnostics Directive regulatory framework with the requirements under the EU’s In Vitro Diagnostic Regulation, which generally apply from May 2022 onwards.
The CODM does not review capital expenditures, total depreciation and amortization or assets by segment, and therefore this information has been excluded as it does not comprise part of management’s key performance metrics.