DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION | 9 Months Ended |
Dec. 28, 2013 | |
Document And Entity Information [Abstract] | ' |
Entity Registrant Name | 'HAEMONETICS CORP |
Entity Central Index Key | '0000313143 |
Current Fiscal Year End Date | '--03-29 |
Entity Filer Category | 'Large Accelerated Filer |
Document Type | '10-Q |
Document Period End Date | 28-Dec-13 |
Document Fiscal Year Focus | '2014 |
Document Fiscal Period Focus | 'Q3 |
Amendment Flag | 'false |
Entity Common Stock, Shares Outstanding | 51,888,835 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Income Statement [Abstract] | ' | ' | ' | ' |
Net revenues | $242,120 | $247,395 | $697,418 | $642,048 |
Cost of goods sold | 120,491 | 134,280 | 344,494 | 337,058 |
Gross profit | 121,629 | 113,115 | 352,924 | 304,990 |
Operating expenses: | ' | ' | ' | ' |
Research and development | 14,209 | 10,588 | 40,364 | 30,823 |
Selling, general and administrative | 89,560 | 86,780 | 277,879 | 235,438 |
Total operating expenses | 103,769 | 97,368 | 318,243 | 266,261 |
Operating income | 17,860 | 15,747 | 34,681 | 38,729 |
Interest and other expense, net | -2,852 | -2,542 | -8,035 | -3,518 |
Income before provision for income taxes | 15,008 | 13,205 | 26,646 | 35,211 |
Income tax (benefit)/expense | -1,282 | 3,301 | 1,682 | 8,972 |
Net income | 16,290 | 9,904 | 24,964 | 26,239 |
Net income per share - basic (in dollars per share) | $0.31 | $0.19 | $0.48 | $0.51 |
Net income per share - diluted (in dollars per share) | $0.31 | $0.19 | $0.48 | $0.50 |
Weighted average shares outstanding | ' | ' | ' | ' |
Basic (in shares) | 51,730 | 51,707 | 51,485 | 51,364 |
Diluted (in shares) | 52,511 | 52,606 | 52,300 | 52,264 |
Comprehensive income | $17,289 | $12,239 | $24,462 | $24,020 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $177,846 | $179,120 |
Accounts receivable, less allowance of $1,840 at December 28, 2013 and $1,727 at March 30, 2013 | 149,585 | 170,111 |
Inventories, net | 209,331 | 183,784 |
Deferred tax asset, net | 14,178 | 13,782 |
Prepaid expenses and other current assets | 52,392 | 50,213 |
Total current assets | 603,332 | 597,010 |
Property, plant and equipment: | ' | ' |
Total property, plant and equipment | 676,388 | 632,720 |
Less: accumulated depreciation | -416,283 | -375,767 |
Net property, plant and equipment | 260,105 | 256,953 |
Other assets: | ' | ' |
Intangible assets, less accumulated amortization of $94,341 at December 28, 2013 and $72,393 at March 30, 2013 | 275,287 | 264,388 |
Goodwill | 337,029 | 330,474 |
Deferred tax asset, long term | 1,751 | 1,751 |
Other long-term assets | 10,389 | 11,341 |
Total other assets | 624,456 | 607,954 |
Total assets | 1,487,893 | 1,461,917 |
Current liabilities: | ' | ' |
Notes payable and current maturities of long-term debt | 40,810 | 23,150 |
Accounts payable | 43,106 | 49,893 |
Accrued payroll and related costs | 44,581 | 45,697 |
Accrued income taxes | 3,247 | 4,053 |
Other liabilities | 57,264 | 57,351 |
Total current liabilities | 189,008 | 180,144 |
Long-term debt, net of current maturities | 406,418 | 456,944 |
Long-term deferred tax liability | 29,664 | 29,552 |
Other long-term liabilities | 37,583 | 26,095 |
Stockholders’ equity: | ' | ' |
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,888,835 shares at December 28, 2013 and 51,031,563 shares at March 30, 2013 | 519 | 510 |
Additional paid-in capital | 396,607 | 365,040 |
Retained earnings | 423,163 | 398,199 |
Accumulated other comprehensive income | 4,931 | 5,433 |
Total stockholders’ equity | 825,220 | 769,182 |
Total liabilities and stockholders’ equity | $1,487,893 | $1,461,917 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Accounts receivable, allowance | $1,840 | $1,727 |
Intangible assets, amortization | $94,341 | $72,393 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 51,888,835 | 51,031,563 |
Common stock, shares outstanding (in shares) | 51,528,003 | 51,031,563 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Cash Flows from Operating Activities: | ' | ' |
Net income | $24,964 | $26,239 |
Non-cash items: | ' | ' |
Depreciation and amortization | 59,063 | 46,741 |
Amortization of financing costs | 1,170 | 452 |
Stock compensation expense | 9,664 | 7,931 |
Purchase of in-process R&D | 3,569 | 0 |
Asset write downs and loss on sale of property, plant and equipment | 2,212 | 472 |
Unrealized loss from hedging activities | 351 | 617 |
Contingent consideration expense | 1,182 | 0 |
Change in operating assets and liabilities: | ' | ' |
Decrease/(increase) in accounts receivable, net | 20,432 | -32,165 |
Increase in inventories | -24,627 | -12,732 |
Increase in prepaid income taxes | -2,124 | -1,673 |
Decrease/(increase) in other assets and other liabilities | 5,219 | -4,489 |
Tax benefit of exercise of stock options | 2,906 | 3,905 |
(Decrease)/Increase in accounts payable and accrued expenses | -15,928 | 22,234 |
Net cash provided by operating activities | 88,053 | 57,532 |
Cash Flows from Investing Activities: | ' | ' |
Capital expenditures on property, plant and equipment | -43,721 | -49,685 |
Proceeds from sale of property, plant and equipment | 197 | 1,290 |
Acquisition of Hemerus | 0 | -535,144 |
Acquisition of Hemerus | -23,124 | -1,000 |
Other acquisitions and investments | -8,374 | 0 |
Net cash used in investing activities | -75,022 | -584,539 |
Cash Flows from Financing Activities: | ' | ' |
Payments on long-term real estate mortgage | -715 | -658 |
Net (decrease)/increase in short-term loans | -4,426 | 4,557 |
Term loan borrowing | 0 | 475,000 |
Repayment of term loan borrowings | -28,531 | 0 |
Debt issuance costs | 0 | -5,461 |
Proceeds from employee stock purchase plan | 5,229 | 4,142 |
Proceeds from exercise of stock options | 11,699 | 28,342 |
Excess tax benefit on exercise of stock options | 2,076 | 3,158 |
Share repurchase | 0 | -18,042 |
Net cash (used in)/provided by financing activities | -14,668 | 491,038 |
Effect of exchange rates on cash and cash equivalents | 363 | 289 |
Net Decrease in Cash and Cash Equivalents | -1,274 | -35,680 |
Cash and Cash Equivalents at Beginning of Period | 179,120 | 228,861 |
Cash and Cash Equivalents at End of Period | 177,846 | 193,181 |
Non-cash Investing and Financing Activities: | ' | ' |
Transfers from inventory to fixed assets for placements of Haemonetics equipment | 7,967 | 19,606 |
Supplemental Disclosures of Cash Flow Information: | ' | ' |
Interest paid | 6,973 | 4,020 |
Income taxes paid | $4,093 | $8,900 |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 28, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
BASIS OF PRESENTATION | ' |
BASIS OF PRESENTATION | |
Our accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles (“GAAP”) in the United States for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of our management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. All intercompany transactions have been eliminated. Operating results for the nine months ended are not necessarily indicative of the results that may be expected for the full fiscal year ending March 29, 2014, or any other interim period. These unaudited consolidated financial statements should be read in conjunction with our audited consolidated financial statements and footnotes included in our annual report on Form 10-K for the fiscal year ended March 30, 2013. | |
We consider events or transactions that occur after the balance sheet date but prior to the issuance of the financial statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure. We had no significant subsequent events. | |
Our fiscal year ends on the Saturday closest to the last day of March. Fiscal years 2014 and 2013 include 52 weeks with each quarter having 13 weeks. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 28, 2013 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | ' |
RECENT ACCOUNTING PRONOUNCEMENTS | |
New pronouncements issued but not effective until after December 28, 2013 are not expected to have a material impact on financial position, results of operation or liquidity. | |
Standards Implemented | |
In July 2013 the Financial Accounting Standards Board ("FASB") issued ASU 2013-10 Derivatives and Hedging (Topic 815): Inclusion of the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a Benchmark Interest Rate for Hedge Accounting Purposes. ASU 2013-10 amends ASC 815 to include the Fed Funds Effective Swap Rate (or Overnight Index Swap Rate) as a benchmark interest rate for hedge accounting purposes in addition to UST and LIBOR. The amendments also remove the restriction on using different benchmark rates for similar hedges. The amendments are effective prospectively for qualifying new or redesignated hedging relationships entered into on or after July 17, 2013. We have evaluated the amendments and conclude that these do not impact our financial statements as we have not entered into transactions with Fed Funds Effective Swap Rate. | |
In February 2013, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2013-02, Comprehensive Income: Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income ("ASU 2013-02"). ASU 2013-02 requires an entity to provide information about amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the financial statements or in a single note; any significant amount reclassified out of accumulated other comprehensive income in its entirety in the period, and the income statement line item affected by the reclassification. For other amounts that are not required under U.S. GAAP to be reclassified in their entirety to net income, an entity is required to cross-reference to other disclosures required under U.S. GAAP that provide additional detail about those amounts. We adopted this guidance during the three months ended June 29, 2013. |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended | ||||
Dec. 28, 2013 | |||||
Business Combinations [Abstract] | ' | ||||
ACQUISITIONS | ' | ||||
ACQUISITIONS | |||||
Hemerus Acquisition | |||||
On April 30, 2013 we completed the acquisition of certain assets of Hemerus LLC ("Hemerus"), a Minnesota based company that develops innovative technologies for the collection of whole blood and processing and storage of blood components. Hemerus has received U.S Food and Drug Administration (FDA) approval for SOLX® whole blood collection system for eight hour storage of whole blood prior to processing. Hemerus previously received Conformité Européenne or CE Mark in the European Union to market SOLX as the world's first 56-day red blood cell storage solution. We paid $24.1 million cash and will pay an additional $3.0 million upon a further FDA approval of the SOLX solution for 24 hour storage of whole blood prior to processing. We will also pay up to $14.0 million based on future sales of SOLX-based products through fiscal 2024. | |||||
We acquired Hemerus to complement the portfolio of whole blood collection, filtration and processing product lines we recently acquired and to bring greater efficiency and productivity to whole blood collection and processing. Hemerus manufactures and sells manual blood collection systems and filters and has operations in North America. Expected revenue from the sale of SOLX will be reported within the blood center disposables product line. | |||||
The assets acquired from Hemerus were recorded at fair value at the date of acquisition. The allocation of purchase price is preliminary, and subject to change based primarily on finalization of the valuation of the acquired intangible assets. | |||||
The preliminary purchase price allocation is as follows: | |||||
Asset class | Amounts Recognized as of December 28, 2013 | ||||
Acquired technology | $ | 22,800 | |||
Trade name | 1,900 | ||||
Customer relationship | 600 | ||||
Goodwill | 6,425 | ||||
Fair value of net assets acquired | $ | 31,725 | |||
The preliminary fair value of the acquired assets is reflected in the consolidated balance sheets. | |||||
The purchase price allocation was revised from the preliminary allocation as of September 28, 2013 as follows: intangible assets increased by $4.9 million, which included trade names and customer relationships for the amounts presented, goodwill decreased by $3.9 million and contingent consideration as of the acquisition date increased by $1.0 million. Goodwill represents the excess of the purchase price over the fair value of the net assets. Goodwill of $6.4 million primarily represents future economic benefits expected to arise from the work force and synergies expected to be gained from the integration of SOLX into our whole blood products. Prior to the acquisition, we had not conducted any business with Hemerus. | |||||
Contingent consideration | |||||
As described above, we will pay the sellers of Hemerus assets up to $14.0 million based on future sales of SOLX. We recognized a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We will revalue this liability each reporting period and record necessary changes in the fair value in our consolidated statements of operations. As of December 28, 2013, the maximum amount of future contingent consideration (undiscounted) that we could be required to pay related to future SOLX sales is $14.0 million. Additionally we will pay $3.0 million upon FDA approval of the SOLX solution for 24 hour storage of whole blood prior to processing. | |||||
Contingent consideration liabilities are measured at fair value using projected revenues, discount rates, probabilities of payment and projected payment dates. This Level 3 fair value measurement was performed using a probability-weighted discounted cash flow over a ten year period. | |||||
Increases or decreases in the fair value of our contingent consideration liability can result from changes in discount periods and rates, as well as changes in the timing and amount of revenue estimates or likelihood of earning revenue. Projected revenues are based on our most recent internal operational budgets and long-range strategic plans. |
EARNINGS_PER_SHARE_EPS
EARNINGS PER SHARE ("EPS") | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
EARNINGS PER SHARE (EPS) | ' | ||||||||
EARNINGS PER SHARE (“EPS”) | |||||||||
The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations. Basic EPS is computed by dividing net income by weighted average shares outstanding. Diluted EPS includes the effect of potentially dilutive common shares. The common stock weighted average number of shares has been retroactively adjusted for the stock split that occurred on November 30, 2012. | |||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Basic EPS | |||||||||
Net income | $ | 16,290 | $ | 9,904 | |||||
Weighted average shares | 51,730 | 51,707 | |||||||
Basic income per share | $ | 0.31 | $ | 0.19 | |||||
Diluted EPS | |||||||||
Net income | $ | 16,290 | $ | 9,904 | |||||
Basic weighted average shares | 51,730 | 51,707 | |||||||
Net effect of common stock equivalents | 781 | 899 | |||||||
Diluted weighted average shares | 52,511 | 52,606 | |||||||
Diluted income per share | $ | 0.31 | $ | 0.19 | |||||
Nine Months Ended | |||||||||
(In thousands, except per share amounts) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Basic EPS | |||||||||
Net income | $ | 24,964 | $ | 26,239 | |||||
Weighted average shares | 51,485 | 51,364 | |||||||
Basic income per share | $ | 0.48 | $ | 0.51 | |||||
Diluted EPS | |||||||||
Net income | $ | 24,964 | $ | 26,239 | |||||
Basic weighted average shares | 51,485 | 51,364 | |||||||
Net effect of common stock equivalents | 815 | 900 | |||||||
Diluted weighted average shares | 52,300 | 52,264 | |||||||
Diluted income per share | $ | 0.48 | $ | 0.5 | |||||
Weighted average shares outstanding, assuming dilution, excludes the impact of 1.3 million and 0.9 million shares for the three and nine months ended December 28, 2013 respectively and 0.7 million and 0.4 million for the three and nine months ended December 29, 2012, respectively, because these securities were anti-dilutive during the noted periods. |
STOCKBASED_COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
STOCK-BASED COMPENSATION | ' | ||||||
STOCK-BASED COMPENSATION | |||||||
Stock-based compensation expense of $9.7 million and $7.9 million were recognized for the nine months ended December 28, 2013 and December 29, 2012, respectively. The related income tax benefit recognized was $3.2 million and $2.5 million for the nine months ended December 28, 2013 and December 29, 2012, respectively. | |||||||
During the three months ended September 28, 2013 we granted a “target” number of 300,000 market stock units to 13 senior executives. Holders of market stock units are eligible to receive a share of Haemonetics’ stock for each market stock unit based on the performance of the stock through March 31, 2017. If our stock is below a minimum threshold price of $50 per share during the relevant measurement period, the holders receive no market share units. If the stock achieves certain price levels, the holders are eligible to receive up to three times the “target” amount of market share units. As a result, we may issue up to 900,000 shares at a stock price of $85 per share or higher in connection with these grants. We determined the fair value of the target number of market stock units was $37.42 utilizing a Monte Carlo simulation model based on an expected term of 3.7 years, a risk free rate of 0.9%, volatility of 20% and no dividends. The fair value of these awards totaling $11.2 million will be expensed evenly over the 3.7 year period through the cliff-vesting date of March 31, 2017. | |||||||
The weighted average fair value for our options granted was $10.17 and $9.76 for the nine months ended December 28, 2013 and December 29, 2012, respectively. The assumptions utilized for estimating the fair value of option grants during the periods presented are as follows: | |||||||
Nine Months Ended | |||||||
December 28, | December 29, | ||||||
2013 | 2012 | ||||||
Stock Options Black-Scholes assumptions (weighted average): | |||||||
Volatility | 22.79 | % | 26.94 | % | |||
Expected life (years) | 4.9 | 5 | |||||
Risk-free interest rate | 1.3 | % | 0.72 | % | |||
Dividend yield | — | % | — | % | |||
During the nine months ended December 28, 2013 and December 29, 2012, there were 156,224 and 150,763 shares, respectively, purchased under the Employee Stock Purchase Plan at an average price of $32.77 and $27.47 per share, respectively. |
PRODUCT_WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
PRODUCT WARRANTIES | ' | ||||||||
PRODUCT WARRANTIES | |||||||||
We generally provide a warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary. | |||||||||
Nine Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Warranty accrual as of the beginning of the period | $ | 673 | $ | 796 | |||||
Warranty provision | 1,214 | 884 | |||||||
Warranty spending | (1,178 | ) | (1,076 | ) | |||||
Warranty accrual as of the end of the period | $ | 709 | $ | 604 | |||||
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
INVENTORIES | ' | ||||||||
INVENTORIES | |||||||||
Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined on the first-in, first-out method. | |||||||||
(In thousands) | December 28, 2013 | 30-Mar-13 | |||||||
Raw materials | $ | 80,438 | $ | 70,716 | |||||
Work-in-process | 6,595 | 7,829 | |||||||
Finished goods | 122,298 | 105,239 | |||||||
$ | 209,331 | $ | 183,784 | ||||||
DERIVATIVES_AND_FAIR_VALUE_MEA
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Derivatives and Fair Value Measurements [Abstract] | ' | ||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | ' | ||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | |||||||||||||||||
We manufacture, market and sell our products globally. For the nine months ended December 28, 2013, approximately 46.3% of our sales were generated outside the U.S. generally in local currencies. We also incur certain manufacturing, marketing and selling costs in international markets in local currency. | |||||||||||||||||
Accordingly, our earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to the U.S. Dollar, our reporting currency. We have a program in place that is designed to mitigate our exposure to changes in foreign currency exchange rates. That program includes the use of derivative financial instruments to minimize for a period of time, the unforeseen impact on our financial results from changes in foreign exchange rates. We utilize foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily the Japanese Yen and the Euro, and to a lesser extent the Swiss Franc, British Pound Sterling, Australian Dollar, Canadian Dollar and the Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates, but because we generally enter into forward contracts one year out, rates are fixed for a one-year period, thereby facilitating financial planning and resource allocation. | |||||||||||||||||
Designated Foreign Currency Hedge Contracts | |||||||||||||||||
All of our designated foreign currency hedge contracts as of December 28, 2013 and March 30, 2013 were cash flow hedges under ASC Topic 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in Other Comprehensive Income until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, we would reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $155.9 million as of December 28, 2013 and $133.3 million as of March 30, 2013. | |||||||||||||||||
During the nine months ended December 28, 2013, a $5.0 million gain related to foreign exchange hedge contracts, net of tax, was recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of any designated foreign currency hedge contracts that are, or previously were, designated as foreign currency cash flow hedges, as compared to net losses of $2.0 million, net of tax, for the nine months ended December 29, 2012. At December 28, 2013, gains of $4.8 million, net of tax, may be reclassified to earnings within the next twelve months. All currency cash flow hedges outstanding as of December 28, 2013 mature within twelve months. | |||||||||||||||||
Non-designated Foreign Currency Contracts | |||||||||||||||||
We manage our exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting transactions and balances. We use foreign currency forward contracts as a part of our strategy to manage exposure related to foreign currency denominated monetary assets and liabilities. These foreign currency forward contracts are entered into for periods consistent with currency transaction exposures, generally one month. They are not designated as cash flow or fair value hedges under ASC Topic 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. We had non-designated foreign currency hedge contracts under ASC Topic 815 outstanding in the contract amount of $72.6 million as of December 28, 2013 and $65.6 million as of March 30, 2013. | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
On August 1, 2012, we entered into a credit agreement which provided for a $475.0 million term loan (“Credit Agreement”). Under the terms of this Credit Agreement, we may borrow at a spread to an index, including the LIBOR index of 1-month, 3-months, 6-months, etc. From the date of the Credit Agreement, we have chosen to borrow against the 1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1% (“Adjusted LIBOR”). The terms of the Credit Agreement also allow us to borrow in multiple tranches. At the end of three months ended December 28, 2013 we had three tranches outstanding, each based on Adjusted LIBOR. | |||||||||||||||||
Accordingly, our earnings and cash flows are exposed to interest rate risk from changes in Adjusted LIBOR. Part of our interest rate risk management strategy includes the use of interest rate swaps to mitigate our exposure to changes in variable interest rates. Our objective in using interest rate swaps is to add stability to interest expense and to manage and reduce the risk inherent in interest rate fluctuations. If the interest rate swap qualifies for hedge accounting, we formally document our hedge relationships (including identifying the hedged instrument and hedged item) at hedge inception. On a quarterly basis, we assess whether the interest rate swaps are highly effective in offsetting changes in the cash flow of the hedged item. We do not hold or issue interest rate swaps for trading purposes. We manage the credit risk of the counterparties by dealing only with institutions that we consider financially sound and consider the risk of non-performance to be remote. | |||||||||||||||||
On December 21, 2012, we entered into two interest rate swap agreements ("The Swaps"), whereby we receive Adjusted LIBOR and pay an average fixed rate of 0.68% on a total notional amount of $250.0 million of debt. The Swaps mature on August 1, 2017. We designated The Swaps as cash flow hedges of variable interest rate risk associated with $250.0 million of indebtedness. For the nine months ended December 28, 2013, a gain of $0.2 million, net of tax, was recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of interest rate swaps that qualify as cash flow hedges. | |||||||||||||||||
Fair Value of Derivative Instruments | |||||||||||||||||
The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of income and comprehensive income for the nine months ended December 28, 2013. | |||||||||||||||||
Derivative Instruments | Amount of | Amount of Gain/(Loss) Reclassified | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) | from AOCI into | Consolidated Statements of | Excluded from | Consolidated Statements of | |||||||||||||
Recognized | Earnings | Income and Comprehensive Income | Effectiveness | Income and Comprehensive Income | |||||||||||||
in AOCI | (Effective Portion) | Testing (*) | |||||||||||||||
(Effective Portion) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 5,034 | $ | 7,114 | Net revenues, COGS, and SG&A | $ | 48 | Interest and other expense, net | |||||||||
Non-designated foreign currency hedge contracts | (169 | ) | Interest and other expense, net | ||||||||||||||
Designated interest rate swaps, net of tax | $ | 249 | $ | (891 | ) | Interest and other expense, net | $ | — | |||||||||
(*) We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. | |||||||||||||||||
We did not have fair value hedges or net investment hedges outstanding as of December 28, 2013 or March 30, 2013. | |||||||||||||||||
As of December 28, 2013, the amount recognized as deferred tax for designated foreign currency was $0.4 million and the amount recognized as deferred tax for interest rate swap hedges was $0.4 million. | |||||||||||||||||
ASC Topic 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, current interest rate curves, interest rate volatilities, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of December 28, 2013, we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC Topic 815, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments. | |||||||||||||||||
The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of December 28, 2013 by type of contract and whether it is a qualifying hedge under ASC Topic 815. | |||||||||||||||||
(In thousands) | Location in | December 28, 2013 | March 30, 2013 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 4,826 | $ | 7,030 | ||||||||||||
Designated interest rate swaps | Other current assets | 1,194 | — | ||||||||||||||
$ | 6,020 | $ | 7,030 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 1,153 | $ | 954 | ||||||||||||
Designated interest rate swaps | Other current liabilities | — | 671 | ||||||||||||||
$ | 1,153 | $ | 1,625 | ||||||||||||||
Other Fair Value Measurements | |||||||||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC Topic 820 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In accordance with ASC Topic 820, for the nine months ended December 28, 2013, we applied the requirements under ASC Topic 820 to our non-financial assets and non-financial liabilities. As we did not have an impairment of any non-financial assets or non-financial liabilities, there was no disclosure required relating to our non-financial assets or non-financial liabilities. | |||||||||||||||||
On a recurring basis, we measure certain financial assets and financial liabilities at fair value, including our money market funds, foreign currency hedge contracts, and contingent consideration. ASC Topic 820 defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. We base fair value upon quoted market prices, where available. Where quoted market prices or other observable inputs are not available, we apply valuation techniques to estimate fair value. | |||||||||||||||||
ASC Topic 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The categorization of assets and liabilities within the valuation hierarchy is based upon the lowest level of input that is significant to the measurement of fair value. The three levels of the hierarchy are defined as follows: | |||||||||||||||||
• | Level 1 — Inputs to the valuation methodology are quoted market prices for identical assets or liabilities. | ||||||||||||||||
• | Level 2 — Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar assets or liabilities and market-corroborated inputs. | ||||||||||||||||
• | Level 3 — Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk. | ||||||||||||||||
Our money market funds carried at fair value are classified within Level 1 of the fair value hierarchy because they are valued using quoted market prices. | |||||||||||||||||
Fair Value Measured on a Recurring Basis | |||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 28, 2013: | |||||||||||||||||
(In thousands) | Quoted Market | Significant | Significant | Total | |||||||||||||
Prices for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 129,015 | $ | — | $ | — | $ | 129,015 | |||||||||
Designated foreign currency hedge contracts | — | 4,826 | — | 4,826 | |||||||||||||
Designated interest rate swap | — | 1,194 | — | 1,194 | |||||||||||||
$ | 129,015 | $ | 6,020 | $ | — | $ | 135,035 | ||||||||||
Liabilities | |||||||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 1,153 | $ | — | $ | 1,153 | |||||||||
Contingent consideration | — | — | 8,783 | 8,783 | |||||||||||||
$ | — | $ | 1,153 | $ | 8,783 | $ | 9,936 | ||||||||||
A description of the methods used to determine the fair value of the Level 3 liabilities is included within Note 3, Acquisitions. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the quarter ended December 28, 2013. | |||||||||||||||||
(In thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Contingent consideration as of acquisition date | 7,600 | ||||||||||||||||
Fair value adjustment | 567 | ||||||||||||||||
Contingent consideration interest expense | 616 | ||||||||||||||||
Ending balance | $ | 8,783 | |||||||||||||||
Other Fair Value Disclosures | |||||||||||||||||
The Term Loan which is carried at amortized cost and accounts receivable and accounts payable approximate fair value. |
INCOME_TAXES
INCOME TAXES | 9 Months Ended |
Dec. 28, 2013 | |
Income Tax Disclosure [Abstract] | ' |
INCOME TAXES | ' |
INCOME TAXES | |
We conduct business globally and as a result report our results of operations in a number of foreign jurisdictions in addition to the United States. Our reported tax rate is lower than the federal statutory rate in all reported periods as the income tax rates in the foreign jurisdictions are generally lower. | |
The reported tax rates for the three and nine months ended December 28, 2013 were a benefit of 8.5% and an expense of 6.3%, as compared to an expense of 25.0% and 25.5% for the three and nine months ended December 29, 2012, respectively. Our reported tax rates are lower than the prior fiscal year periods due to lower income in the United States and the release of certain previously established reserves in connection with the closure of certain tax statutes. Income in the United States is lower than the prior fiscal year periods due to significant restructuring and other costs associated with our transformation activities and a deduction available associated with certain intercompany financing to our subsidiary in Italy. We recorded a tax benefit for the three months ended December 28, 2013 as the benefits from the release of previously established reserves and the intercompany financing with Italy were recorded during this period. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 28, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
COMMITMENTS AND CONTINGENCIES | ' |
COMMITMENTS AND CONTINGENCIES | |
We are presently engaged in various legal actions, and although ultimate liability cannot be determined at the present time, we believe, based on consultation with counsel, that any such liability will not materially affect our consolidated financial position or our results of operations. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
SEGMENT INFORMATION | ' | ||||||||
SEGMENT INFORMATION | |||||||||
Segment Definition Criteria | |||||||||
We manage our business on the basis of one operating segment: the design, manufacture, and marketing of blood management solutions. Our chief operating decision-maker uses consolidated results to make operating and strategic decisions. Manufacturing processes, as well as the regulatory environment in which we operate, are largely the same for all product categories. | |||||||||
Enterprise-Wide Disclosures about Product and Services | |||||||||
We have four global product families: plasma, blood center, hospital, and software solutions. | |||||||||
Our products include whole blood disposables, equipment devices and the related disposables used with these devices. Disposables include part of plasma, blood center, and hospital product families. Plasma consists of the disposables used to perform apheresis for the separation of whole blood components and subsequent collection of plasma to be used as a raw material for biologically derived pharmaceuticals. Blood center consists of disposables which separate whole blood for the subsequent collection of platelets, plasma, red cells, or a combination of these components for transfusion to patients as well as disposables for manual whole blood collection. Hospital consists of surgical disposables (principally the Cell Saver® autologous blood recovery system targeted to procedures that involve rapid, high volume blood loss such as cardiovascular surgeries and the cardioPAT® cardiovascular perioperative autotransfusion system designed to remain with the patient following surgery to recover blood and the patient’s red cells to prepare them for reinfusion), the OrthoPAT® orthopedic perioperative autotransfusion system designed to operate both during and after surgery to recover and wash the patient’s red cells to prepare them for reinfusion, and diagnostics products (principally the TEG® Thrombelastograph® hemostasis analyzer used to help assess a surgical patient’s hemostasis during and after surgery). Software solutions include information technology platforms that assist blood centers, plasma centers, and hospitals to more effectively manage regulatory compliance and operational efficiency. | |||||||||
Revenues from External Customers: | |||||||||
Three Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Disposable revenues | |||||||||
Plasma disposables | $ | 76,698 | $ | 68,102 | |||||
Blood center disposables | |||||||||
Platelet | 43,447 | 45,139 | |||||||
Red cell | 9,869 | 11,752 | |||||||
Whole blood | 47,342 | 54,894 | |||||||
100,658 | 111,785 | ||||||||
Hospital disposables | |||||||||
Surgical | 16,807 | 18,900 | |||||||
OrthoPAT | 6,392 | 7,090 | |||||||
Diagnostics | 8,565 | 6,761 | |||||||
31,764 | 32,751 | ||||||||
Total disposables revenue | 209,120 | 212,638 | |||||||
Software solutions | 17,603 | 16,008 | |||||||
Equipment & other | 15,397 | 18,749 | |||||||
Net revenues | $ | 242,120 | $ | 247,395 | |||||
Nine Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Disposable revenues | |||||||||
Plasma disposables | $ | 217,768 | $ | 200,657 | |||||
Blood center disposables | |||||||||
Platelet | 117,778 | 125,579 | |||||||
Red cell | 30,098 | 35,738 | |||||||
Whole blood | 145,879 | 83,514 | |||||||
293,755 | 244,831 | ||||||||
Hospital disposables | |||||||||
Surgical | 49,247 | 55,965 | |||||||
OrthoPAT | 18,973 | 22,276 | |||||||
Diagnostics | 24,144 | 20,196 | |||||||
92,364 | 98,437 | ||||||||
Total disposables revenue | 603,887 | 543,925 | |||||||
Software solutions | 51,469 | 51,354 | |||||||
Equipment & other | 42,062 | 46,769 | |||||||
Net revenues | $ | 697,418 | $ | 642,048 | |||||
RESTRUCTURING
RESTRUCTURING | 9 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
REORGANIZATION | ' | ||||||||||||||||||||
RESTRUCTURING | |||||||||||||||||||||
On an ongoing basis, we review the global economy, the healthcare industry, and the markets in which we compete. From these reviews we identify opportunities to improve efficiencies, enhance commercial capabilities, better align our resources and offer customers better comprehensive solutions. In order to realize these opportunities, from time to time, we undertake restructuring and other initiatives to transform our business. | |||||||||||||||||||||
On May 1, 2013 we announced that our Board of Directors has approved a plan to pursue identified Value Creation & Capture (“VCC”) opportunities. These include: (i) investment in product line extensions, next generation products and growth platforms; (ii) enhancement of commercial execution capabilities by implementing go-to-market and other strategies to enable global profitable revenue growth; and (iii) transformation of the manufacturing network to best support these commercial strategies while optimizing expense levels. Collectively, these are opportunities to position us for optimal growth and increased competitiveness. | |||||||||||||||||||||
Transformation of the manufacturing network will take place through fiscal 2016, and will involve (i) discontinuing manufacturing activities at our Braintree, Massachusetts and Ascoli-Piceno, Italy locations, (ii) creating a technology center of excellence for product development close to our current Corporate Headquarters, (iii) expansion of our current facility in Tijuana, Mexico, (iv) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (v) building a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. | |||||||||||||||||||||
For the nine months ended December 28, 2013, we incurred $40.8 million of restructuring and restructuring related charges of which approximately $16.0 million has been paid to date and approximately $14.4 million is payable within the next twelve months. The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of income and comprehensive income. | |||||||||||||||||||||
The following summarizes the restructuring activity for the nine months ended December 28, 2013 and December 29, 2012: | |||||||||||||||||||||
Nine Months Ended December 28, 2013 | |||||||||||||||||||||
(In thousands) | Restructuring Accrual Balance at March 30, 2013 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 28, 2013 | ||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 28,189 | $ | (9,690 | ) | $ | — | $ | 21,588 | ||||||||||
Other costs | 173 | 9,905 | (9,566 | ) | — | 512 | |||||||||||||||
Accelerated depreciation | — | 1,757 | — | (1,757 | ) | — | |||||||||||||||
Asset write-down | — | 915 | — | (915 | ) | — | |||||||||||||||
Total | $ | 3,262 | $ | 40,766 | $ | (19,256 | ) | $ | (2,672 | ) | $ | 22,100 | |||||||||
Nine Months Ended December 29, 2012 | |||||||||||||||||||||
(in thousands) | Restructuring Accrual Balance at March 31, 2012 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 29, 2012 | ||||||||||||||||
Severance and other employee costs | $ | 1,461 | $ | 4,807 | $ | (3,682 | ) | $ | — | $ | 2,586 | ||||||||||
Other costs | 533 | 418 | (741 | ) | — | 210 | |||||||||||||||
Total | $ | 1,994 | $ | 5,225 | $ | (4,423 | ) | $ | — | $ | 2,796 | ||||||||||
We are deploying significant financial resources for these activities. Many of the activities necessary to complete the VCC initiatives include severance and other costs which qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We anticipate we will incur approximately $71.0 million in severance, asset write-offs and other restructuring charges as well as other “Transformation Costs” related to VCC initiatives in fiscal 2014. The majority of these costs relates to the discontinuation of manufacturing activities in Braintree, Massachusetts and Ascoli-Piceno, Italy, and will be incurred in the current fiscal year. | |||||||||||||||||||||
In addition, we also incur costs that do not constitute restructuring under ASC 420, Exit or Disposal Cost Obligations which we refer to as "Transformation Costs". These costs consist primarily of expenditures directly related to our transformation activities including program management, integration and product line transfer teams, infrastructure related costs, accelerated depreciation and asset disposals. | |||||||||||||||||||||
The table below presents transformation and restructuring costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and interest and other expense in our statement of income and comprehensive income for the periods presented. The majority of expenses recorded as Transformation Costs in the prior year relate to the integration of Pall's transfusion medicine business, which was purchased for $535.1 million in August 2012. Transformation Costs in the current year are associated with our VCC initiatives as well as completion of the integration of Pall’s transfusion medicine business. We anticipate that we will incur approximately $82.0 million in total restructuring and transformation expenses related to VCC initiatives and completion of whole blood integration activities in fiscal 2014 of which $72 million is payable in cash. | |||||||||||||||||||||
Transformation costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 28, 2013 | December 29, | December 28, 2013 | December 29, | |||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Integration and other costs | $ | 6,306 | $ | 22,138 | $ | 26,389 | $ | 49,963 | |||||||||||||
Accelerated depreciation | 653 | — | 1,938 | — | |||||||||||||||||
Asset disposal | 36 | — | 796 | — | |||||||||||||||||
Total | $ | 6,995 | $ | 22,138 | $ | 29,123 | $ | 49,963 | |||||||||||||
Restructuring costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 28, 2013 | December 29, | December 28, 2013 | December 29, | |||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Severance and other employee costs | $ | 5,348 | $ | 2,737 | $ | 28,189 | $ | 4,807 | |||||||||||||
Other costs | 4,588 | 209 | 9,905 | 418 | |||||||||||||||||
Accelerated depreciation | 569 | — | 1,757 | — | |||||||||||||||||
Asset disposal | — | — | 915 | — | |||||||||||||||||
Total | $ | 10,505 | $ | 2,946 | $ | 40,766 | $ | 5,225 | |||||||||||||
Total restructuring and transformation | $ | 17,500 | $ | 25,084 | $ | 69,889 | $ | 55,188 | |||||||||||||
CAPITALIZATION_OF_SOFTWARE_DEV
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | 9 Months Ended |
Dec. 28, 2013 | |
Capitalization of Software and Development Costs [Abstract] | ' |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | ' |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | |
For costs incurred related to the development of software to be sold, leased, or otherwise marketed, we apply the provisions of ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. | |
We capitalized $3.4 million and $4.7 million in software development costs for ongoing initiatives during the nine months ended December 28, 2013 and December 29, 2012, respectively. At December 28, 2013 and March 30, 2013, we have a total of $23.4 million and $20.0 million, respectively, of costs capitalized related to in-process software development initiatives. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. We review these assets for impairment annually. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ' | ||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | |||||||||||||||||
The following is a roll-forward of the components of Accumulated Other Comprehensive Income, net of tax, for the nine months ended December 28, 2013: | |||||||||||||||||
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain/loss on Derivatives | Total | |||||||||||||
Balance as of March 30, 2013 | $ | 4,133 | $ | (5,073 | ) | $ | 6,373 | $ | 5,433 | ||||||||
Other comprehensive income before reclassifications | 438 | — | 5,283 | 5,721 | |||||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | — | (6,223 | ) | (6,223 | ) | |||||||||||
Net current period other comprehensive income | 438 | — | (940 | ) | (502 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 4,571 | $ | (5,073 | ) | $ | 5,433 | $ | 4,931 | ||||||||
The details about the amount reclassified from Accumulated other comprehensive income for the nine months ended December 28, 2013 are as follows: | |||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | |||||||||||||||||
Realized net gain on derivatives | $ | 6,610 | Revenue, cost of goods sold, income/(expense) | ||||||||||||||
Income tax effect | (387 | ) | Provision for income taxes | ||||||||||||||
Net of taxes | $ | 6,223 | |||||||||||||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) (Hemerus Medical, LLC [Member]) | 9 Months Ended | ||||
Dec. 28, 2013 | |||||
Hemerus Medical, LLC [Member] | ' | ||||
Business Acquisition [Line Items] | ' | ||||
Schedule of Purchase Price Allocation | ' | ||||
The preliminary purchase price allocation is as follows: | |||||
Asset class | Amounts Recognized as of December 28, 2013 | ||||
Acquired technology | $ | 22,800 | |||
Trade name | 1,900 | ||||
Customer relationship | 600 | ||||
Goodwill | 6,425 | ||||
Fair value of net assets acquired | $ | 31,725 | |||
EARNINGS_PER_SHARE_EPS_Tables
EARNINGS PER SHARE ("EPS") (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Earnings Per Share [Abstract] | ' | ||||||||
Schedule of Earnings Per Share Reconciliation | ' | ||||||||
The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations. Basic EPS is computed by dividing net income by weighted average shares outstanding. Diluted EPS includes the effect of potentially dilutive common shares. The common stock weighted average number of shares has been retroactively adjusted for the stock split that occurred on November 30, 2012. | |||||||||
Three Months Ended | |||||||||
(In thousands, except per share amounts) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Basic EPS | |||||||||
Net income | $ | 16,290 | $ | 9,904 | |||||
Weighted average shares | 51,730 | 51,707 | |||||||
Basic income per share | $ | 0.31 | $ | 0.19 | |||||
Diluted EPS | |||||||||
Net income | $ | 16,290 | $ | 9,904 | |||||
Basic weighted average shares | 51,730 | 51,707 | |||||||
Net effect of common stock equivalents | 781 | 899 | |||||||
Diluted weighted average shares | 52,511 | 52,606 | |||||||
Diluted income per share | $ | 0.31 | $ | 0.19 | |||||
Nine Months Ended | |||||||||
(In thousands, except per share amounts) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Basic EPS | |||||||||
Net income | $ | 24,964 | $ | 26,239 | |||||
Weighted average shares | 51,485 | 51,364 | |||||||
Basic income per share | $ | 0.48 | $ | 0.51 | |||||
Diluted EPS | |||||||||
Net income | $ | 24,964 | $ | 26,239 | |||||
Basic weighted average shares | 51,485 | 51,364 | |||||||
Net effect of common stock equivalents | 815 | 900 | |||||||
Diluted weighted average shares | 52,300 | 52,264 | |||||||
Diluted income per share | $ | 0.48 | $ | 0.5 | |||||
STOCKBASED_COMPENSATION_Tables
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended | ||||||
Dec. 28, 2013 | |||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||
Assumptions Utilized for Estimating Fair Value of Option Grants | ' | ||||||
The assumptions utilized for estimating the fair value of option grants during the periods presented are as follows: | |||||||
Nine Months Ended | |||||||
December 28, | December 29, | ||||||
2013 | 2012 | ||||||
Stock Options Black-Scholes assumptions (weighted average): | |||||||
Volatility | 22.79 | % | 26.94 | % | |||
Expected life (years) | 4.9 | 5 | |||||
Risk-free interest rate | 1.3 | % | 0.72 | % | |||
Dividend yield | — | % | — | % |
PRODUCT_WARRANTIES_Tables
PRODUCT WARRANTIES (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Product Warranties Disclosures [Abstract] | ' | ||||||||
Schedule of Product Warranty Liability | ' | ||||||||
We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary. | |||||||||
Nine Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Warranty accrual as of the beginning of the period | $ | 673 | $ | 796 | |||||
Warranty provision | 1,214 | 884 | |||||||
Warranty spending | (1,178 | ) | (1,076 | ) | |||||
Warranty accrual as of the end of the period | $ | 709 | $ | 604 | |||||
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventories | ' | ||||||||
Inventories are stated at the lower of cost or market and include the cost of material, labor and manufacturing overhead. Cost is determined on the first-in, first-out method. | |||||||||
(In thousands) | December 28, 2013 | 30-Mar-13 | |||||||
Raw materials | $ | 80,438 | $ | 70,716 | |||||
Work-in-process | 6,595 | 7,829 | |||||||
Finished goods | 122,298 | 105,239 | |||||||
$ | 209,331 | $ | 183,784 | ||||||
DERIVATIVES_AND_FAIR_VALUE_MEA1
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Derivatives and Fair Value Measurements [Abstract] | ' | ||||||||||||||||
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments | ' | ||||||||||||||||
The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of income and comprehensive income for the nine months ended December 28, 2013. | |||||||||||||||||
Derivative Instruments | Amount of | Amount of Gain/(Loss) Reclassified | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) | from AOCI into | Consolidated Statements of | Excluded from | Consolidated Statements of | |||||||||||||
Recognized | Earnings | Income and Comprehensive Income | Effectiveness | Income and Comprehensive Income | |||||||||||||
in AOCI | (Effective Portion) | Testing (*) | |||||||||||||||
(Effective Portion) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 5,034 | $ | 7,114 | Net revenues, COGS, and SG&A | $ | 48 | Interest and other expense, net | |||||||||
Non-designated foreign currency hedge contracts | (169 | ) | Interest and other expense, net | ||||||||||||||
Designated interest rate swaps, net of tax | $ | 249 | $ | (891 | ) | Interest and other expense, net | $ | — | |||||||||
(*) We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. | |||||||||||||||||
Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets | ' | ||||||||||||||||
The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of December 28, 2013 by type of contract and whether it is a qualifying hedge under ASC Topic 815. | |||||||||||||||||
(In thousands) | Location in | December 28, 2013 | March 30, 2013 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 4,826 | $ | 7,030 | ||||||||||||
Designated interest rate swaps | Other current assets | 1,194 | — | ||||||||||||||
$ | 6,020 | $ | 7,030 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 1,153 | $ | 954 | ||||||||||||
Designated interest rate swaps | Other current liabilities | — | 671 | ||||||||||||||
$ | 1,153 | $ | 1,625 | ||||||||||||||
Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis | ' | ||||||||||||||||
Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 28, 2013: | |||||||||||||||||
(In thousands) | Quoted Market | Significant | Significant | Total | |||||||||||||
Prices for | Other | Unobservable | |||||||||||||||
Identical Assets | Observable | Inputs | |||||||||||||||
(Level 1) | Inputs | (Level 3) | |||||||||||||||
(Level 2) | |||||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 129,015 | $ | — | $ | — | $ | 129,015 | |||||||||
Designated foreign currency hedge contracts | — | 4,826 | — | 4,826 | |||||||||||||
Designated interest rate swap | — | 1,194 | — | 1,194 | |||||||||||||
$ | 129,015 | $ | 6,020 | $ | — | $ | 135,035 | ||||||||||
Liabilities | |||||||||||||||||
Designated foreign currency hedge contracts | $ | — | $ | 1,153 | $ | — | $ | 1,153 | |||||||||
Contingent consideration | — | — | 8,783 | 8,783 | |||||||||||||
$ | — | $ | 1,153 | $ | 8,783 | $ | 9,936 | ||||||||||
Schedule of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' | ||||||||||||||||
A description of the methods used to determine the fair value of the Level 3 liabilities is included within Note 3, Acquisitions. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the quarter ended December 28, 2013. | |||||||||||||||||
(In thousands) | Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ||||||||||||||||
Contingent consideration as of acquisition date | 7,600 | ||||||||||||||||
Fair value adjustment | 567 | ||||||||||||||||
Contingent consideration interest expense | 616 | ||||||||||||||||
Ending balance | $ | 8,783 | |||||||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 9 Months Ended | ||||||||
Dec. 28, 2013 | |||||||||
Segment Reporting [Abstract] | ' | ||||||||
Schedule of Revenues from External Customers | ' | ||||||||
Revenues from External Customers: | |||||||||
Three Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Disposable revenues | |||||||||
Plasma disposables | $ | 76,698 | $ | 68,102 | |||||
Blood center disposables | |||||||||
Platelet | 43,447 | 45,139 | |||||||
Red cell | 9,869 | 11,752 | |||||||
Whole blood | 47,342 | 54,894 | |||||||
100,658 | 111,785 | ||||||||
Hospital disposables | |||||||||
Surgical | 16,807 | 18,900 | |||||||
OrthoPAT | 6,392 | 7,090 | |||||||
Diagnostics | 8,565 | 6,761 | |||||||
31,764 | 32,751 | ||||||||
Total disposables revenue | 209,120 | 212,638 | |||||||
Software solutions | 17,603 | 16,008 | |||||||
Equipment & other | 15,397 | 18,749 | |||||||
Net revenues | $ | 242,120 | $ | 247,395 | |||||
Nine Months Ended | |||||||||
(In thousands) | December 28, | December 29, | |||||||
2013 | 2012 | ||||||||
Disposable revenues | |||||||||
Plasma disposables | $ | 217,768 | $ | 200,657 | |||||
Blood center disposables | |||||||||
Platelet | 117,778 | 125,579 | |||||||
Red cell | 30,098 | 35,738 | |||||||
Whole blood | 145,879 | 83,514 | |||||||
293,755 | 244,831 | ||||||||
Hospital disposables | |||||||||
Surgical | 49,247 | 55,965 | |||||||
OrthoPAT | 18,973 | 22,276 | |||||||
Diagnostics | 24,144 | 20,196 | |||||||
92,364 | 98,437 | ||||||||
Total disposables revenue | 603,887 | 543,925 | |||||||
Software solutions | 51,469 | 51,354 | |||||||
Equipment & other | 42,062 | 46,769 | |||||||
Net revenues | $ | 697,418 | $ | 642,048 | |||||
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 9 Months Ended | ||||||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ' | ||||||||||||||||||||
Schedule of Restructuring Reserve by Type of Cost | ' | ||||||||||||||||||||
The following summarizes the restructuring activity for the nine months ended December 28, 2013 and December 29, 2012: | |||||||||||||||||||||
Nine Months Ended December 28, 2013 | |||||||||||||||||||||
(In thousands) | Restructuring Accrual Balance at March 30, 2013 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 28, 2013 | ||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 28,189 | $ | (9,690 | ) | $ | — | $ | 21,588 | ||||||||||
Other costs | 173 | 9,905 | (9,566 | ) | — | 512 | |||||||||||||||
Accelerated depreciation | — | 1,757 | — | (1,757 | ) | — | |||||||||||||||
Asset write-down | — | 915 | — | (915 | ) | — | |||||||||||||||
Total | $ | 3,262 | $ | 40,766 | $ | (19,256 | ) | $ | (2,672 | ) | $ | 22,100 | |||||||||
Nine Months Ended December 29, 2012 | |||||||||||||||||||||
(in thousands) | Restructuring Accrual Balance at March 31, 2012 | Restructuring Costs Incurred | Less Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at December 29, 2012 | ||||||||||||||||
Severance and other employee costs | $ | 1,461 | $ | 4,807 | $ | (3,682 | ) | $ | — | $ | 2,586 | ||||||||||
Other costs | 533 | 418 | (741 | ) | — | 210 | |||||||||||||||
Total | $ | 1,994 | $ | 5,225 | $ | (4,423 | ) | $ | — | $ | 2,796 | ||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||||||
Transformation costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 28, 2013 | December 29, | December 28, 2013 | December 29, | |||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Integration and other costs | $ | 6,306 | $ | 22,138 | $ | 26,389 | $ | 49,963 | |||||||||||||
Accelerated depreciation | 653 | — | 1,938 | — | |||||||||||||||||
Asset disposal | 36 | — | 796 | — | |||||||||||||||||
Total | $ | 6,995 | $ | 22,138 | $ | 29,123 | $ | 49,963 | |||||||||||||
Restructuring costs | Three Months Ended | Nine Months Ended | |||||||||||||||||||
(in thousands) | December 28, 2013 | December 29, | December 28, 2013 | December 29, | |||||||||||||||||
2012 | 2012 | ||||||||||||||||||||
Severance and other employee costs | $ | 5,348 | $ | 2,737 | $ | 28,189 | $ | 4,807 | |||||||||||||
Other costs | 4,588 | 209 | 9,905 | 418 | |||||||||||||||||
Accelerated depreciation | 569 | — | 1,757 | — | |||||||||||||||||
Asset disposal | — | — | 915 | — | |||||||||||||||||
Total | $ | 10,505 | $ | 2,946 | $ | 40,766 | $ | 5,225 | |||||||||||||
Total restructuring and transformation | $ | 17,500 | $ | 25,084 | $ | 69,889 | $ | 55,188 | |||||||||||||
COMPREHENSIVE_INCOME_Tables
COMPREHENSIVE INCOME (Tables) | 9 Months Ended | ||||||||||||||||
Dec. 28, 2013 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | ||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | ' | ||||||||||||||||
The following is a roll-forward of the components of Accumulated Other Comprehensive Income, net of tax, for the nine months ended December 28, 2013: | |||||||||||||||||
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain/loss on Derivatives | Total | |||||||||||||
Balance as of March 30, 2013 | $ | 4,133 | $ | (5,073 | ) | $ | 6,373 | $ | 5,433 | ||||||||
Other comprehensive income before reclassifications | 438 | — | 5,283 | 5,721 | |||||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | — | (6,223 | ) | (6,223 | ) | |||||||||||
Net current period other comprehensive income | 438 | — | (940 | ) | (502 | ) | |||||||||||
Balance as of December 28, 2013 | $ | 4,571 | $ | (5,073 | ) | $ | 5,433 | $ | 4,931 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | ' | ||||||||||||||||
The details about the amount reclassified from Accumulated other comprehensive income for the nine months ended December 28, 2013 are as follows: | |||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | |||||||||||||||||
Realized net gain on derivatives | $ | 6,610 | Revenue, cost of goods sold, income/(expense) | ||||||||||||||
Income tax effect | (387 | ) | Provision for income taxes | ||||||||||||||
Net of taxes | $ | 6,223 | |||||||||||||||
BASIS_OF_PRESENTATION_Narrativ
BASIS OF PRESENTATION (Narrative) (Details) | 9 Months Ended | 12 Months Ended |
Dec. 28, 2013 | Mar. 30, 2013 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Term of each fiscal quarter | '364 days | '364 days |
Term of each quarter | '91 days | '91 days |
ACQUISITIONS_Details
ACQUISITIONS (Details) (Hemerus Medical, LLC [Member], USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
Business Acquisition [Line Items] | ' | ' |
Business acquisition, cash paid | ' | $24,100,000 |
Asset class | ' | ' |
Goodwill | 6,425,000 | ' |
Fair value of net assets acquired | 31,725,000 | ' |
Adjustment [Member] | ' | ' |
Asset class | ' | ' |
Intangible assets | 4,900,000 | ' |
Goodwill | 3,900,000 | ' |
Fair value of net assets acquired | 1,000,000 | ' |
Acquired technology [Member] | ' | ' |
Asset class | ' | ' |
Intangible assets | 22,800,000 | ' |
Trade names [Member] | ' | ' |
Asset class | ' | ' |
Intangible assets | 1,900,000 | ' |
Customer relationship [Member] | ' | ' |
Asset class | ' | ' |
Intangible assets | 600,000 | ' |
FDA Approval of SOLX [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent consideration, maximum | ' | 3,000,000 |
Future Sales of SOLX [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Contingent consideration, maximum | ' | $14,000,000 |
EARNINGS_PER_SHARE_EPS_Schedul
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Basic EPS | ' | ' | ' | ' |
Net income | $16,290 | $9,904 | $24,964 | $26,239 |
Basic weighted average shares (in shares) | 51,730,000 | 51,707,000 | 51,485,000 | 51,364,000 |
Basic income per share (in dollars per share) | $0.31 | $0.19 | $0.48 | $0.51 |
Diluted EPS | ' | ' | ' | ' |
Net income | $16,290 | $9,904 | $24,964 | $26,239 |
Basic weighted average shares (in shares) | 51,730,000 | 51,707,000 | 51,485,000 | 51,364,000 |
Net effect of common stock equivalents (in shares) | 781,000 | 899,000 | 815,000 | 900,000 |
Diluted weighted average shares (in shares) | 52,511,000 | 52,606,000 | 52,300,000 | 52,264,000 |
Diluted income per share (in dollars per share) | $0.31 | $0.19 | $0.48 | $0.50 |
Stock options excluded from computation of weighted average shares outstanding (in shares) | 1,300,000 | 700,000 | 900,000 | 400,000 |
STOCKBASED_COMPENSATION_Detail
STOCK-BASED COMPENSATION (Details) (USD $) | 9 Months Ended | 3 Months Ended | |
In Millions, except Share data, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 |
Market Stock Units [Member] | |||
times | |||
senior_executive | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock-based compensation expense recognized | $9.70 | $7.90 | ' |
Tax benefit from compensation expense | 3.2 | 2.5 | ' |
Grants in period (in shares) | ' | ' | 300,000 |
Number of senior executives | ' | ' | 13 |
Performance shares threshold (in dollars per share) | ' | ' | $50 |
Shares received below threshold price (in shares) | ' | ' | 0 |
Performance shares maximum multiplier | ' | ' | 3 |
Maximum shares authorized (in shares) | ' | ' | 900,000 |
Minimum stock price if performance shares issued (in dollars per share) | ' | ' | $85 |
Fair value (in dollars per share) | ' | ' | $37.42 |
Performance shares fair value | ' | ' | $11.20 |
Weighted average fair value of options granted (in dollars per share) | $10.17 | $9.76 | ' |
Stock Options Black-Scholes assumptions (weighted average): | ' | ' | ' |
Volatility | 22.79% | 26.94% | 20.00% |
Expected life (years) | '4 years 10 months 24 days | '5 years | '3 years 8 months 12 days |
Risk-free interest rate | 1.30% | 0.72% | 0.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Shares purchased under the ESPP (in shares) | 156,224 | 150,763 | ' |
Shares purchased under the ESPP (in dollars per share) | $32.77 | $27.47 | ' |
PRODUCT_WARRANTIES_Schedule_of
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 |
Product Warranties [Roll Forward] | ' | ' |
Warranty accrual as of the beginning of the period | $673 | $796 |
Warranty provision | 1,214 | 884 |
Warranty spending | -1,178 | -1,076 |
Warranty accrual as of the end of the period | $709 | $604 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ' | ' |
Raw materials | $80,438 | $70,716 |
Work-in-process | 6,595 | 7,829 |
Finished goods | 122,298 | 105,239 |
Inventories, net | $209,331 | $183,784 |
DERIVATIVES_AND_FAIR_VALUE_MEA2
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments) (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2013 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Net revenues, COGS, and SG&A | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount of Loss Recognized in AOCI (Effective Portion) | $5,034 | |
Amount of Loss Reclassified from AOCI into Earnings (Effective Portion) | 7,114 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Other Income (Expense), Net [Member] | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount Excluded from Effectiveness Testing | 48 | [1] |
Designated as Hedging Instrument | Interest Rate Swap [Member] | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount of Loss Recognized in AOCI (Effective Portion) | 249 | |
Amount Excluded from Effectiveness Testing | 0 | [1] |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Interest Income (Expense), Net [Member] | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount of Loss Reclassified from AOCI into Earnings (Effective Portion) | -891 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount of Loss Recognized in AOCI (Effective Portion) | ' | |
Amount of Loss Reclassified from AOCI into Earnings (Effective Portion) | ' | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Income (Expense), Net [Member] | ' | |
Derivative Instruments, Gain (Loss) [Line Items] | ' | |
Amount Excluded from Effectiveness Testing | ($169) | [1] |
[1] | We exclude the difference between the spot rate and hedge forward rate from our effectiveness testing. |
DERIVATIVES_AND_FAIR_VALUE_MEA3
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) (USD $) | Dec. 28, 2013 | Mar. 30, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Assets: | ' | ' |
Derivative Assets | $6,020 | $7,030 |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 1,153 | 1,625 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 4,826 | 7,030 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | 1,153 | 954 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Current Assets | ' | ' |
Derivative Assets: | ' | ' |
Derivative Assets | 1,194 | 0 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Current Liabilities | ' | ' |
Derivative Liabilities: | ' | ' |
Derivative Liabilities | $0 | $671 |
DERIVATIVES_AND_FAIR_VALUE_MEA4
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value) (Details) (USD $) | 3 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2013 |
Assets | ' |
Money market funds | $129,015 |
Designated foreign currency hedge contracts | 4,826 |
Designated interest rate swap | 1,194 |
Assets, Fair Value Disclosure, Total | 135,035 |
Liabilities | ' |
Designated foreign currency hedge contracts | 1,153 |
Contingent consideration | 8,783 |
Liabilities, Fair Value Disclosure | 9,936 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' |
Fair value adjustment | 567 |
Quoted Market Prices for Identical Assets (Level 1) | ' |
Assets | ' |
Money market funds | 129,015 |
Designated foreign currency hedge contracts | 0 |
Designated interest rate swap | 0 |
Assets, Fair Value Disclosure, Total | 129,015 |
Liabilities | ' |
Designated foreign currency hedge contracts | 0 |
Contingent consideration | 0 |
Liabilities, Fair Value Disclosure | 0 |
Significant Other Observable Inputs (Level 2) | ' |
Assets | ' |
Money market funds | 0 |
Designated foreign currency hedge contracts | 4,826 |
Designated interest rate swap | 1,194 |
Assets, Fair Value Disclosure, Total | 6,020 |
Liabilities | ' |
Designated foreign currency hedge contracts | 1,153 |
Contingent consideration | 0 |
Liabilities, Fair Value Disclosure | 1,153 |
Significant Unobservable Inputs (Level 3) | ' |
Assets | ' |
Money market funds | 0 |
Designated foreign currency hedge contracts | 0 |
Designated interest rate swap | 0 |
Assets, Fair Value Disclosure, Total | 0 |
Liabilities | ' |
Designated foreign currency hedge contracts | 0 |
Contingent consideration | 8,783 |
Liabilities, Fair Value Disclosure | 8,783 |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | ' |
Contingent consideration as of acquisition date | 7,600 |
Contingent consideration interest expense | 616 |
Ending balance | $8,783 |
DERIVATIVES_AND_FAIR_VALUE_MEA5
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 9 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | ||||
Dec. 28, 2013 | Mar. 30, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 28, 2013 | Dec. 21, 2012 | Dec. 28, 2013 | Aug. 03, 2012 | Aug. 01, 2012 | Dec. 28, 2013 | |
Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Designated as Hedging Instrument | Term Loan [Member] | Term Loan [Member] | Foreign Country | |||
Foreign Exchange Contract | Interest Rate Swap [Member] | Cash Flow Hedging | Interest Rate Swap [Member] | Interest Rate Swap [Member] | ||||||
Foreign Exchange Contract | ||||||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Percentage of sales generated outside the US | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46.30% |
Maturity period for foreign currency contracts (in years) | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Designated foreign currency hedge contracts outstanding | $155,900,000 | $133,300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of Loss Recognized in AOCI (Effective Portion) | ' | ' | ' | ' | ' | ' | 249,000 | ' | ' | ' |
Recognized net losses in earnings on cash flow hedges | ' | ' | ' | ' | 2,000,000 | ' | ' | ' | ' | ' |
Gains reclassified to AOCI in next 12 months | 4,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-designated foreign currency hedge contracts outstanding | 72,600,000 | 65,600,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Face amount of debt | ' | ' | ' | ' | ' | ' | ' | ' | 475,000,000 | ' |
Description of variable rate basis | ' | ' | ' | ' | ' | 'LIBOR | ' | '1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1% (“Adjusted LIBORâ€) | ' | ' |
Derivative, fixed interest rate | ' | ' | ' | ' | ' | 0.68% | ' | ' | ' | ' |
Deferred income tax expense (benefit) | ' | ' | 400,000 | 400,000 | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | ' | ' | ' | $250,000,000 | ' | ' | ' | ' |
INCOME_TAXES_Details
INCOME TAXES (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Reported tax rate | -8.50% | 25.00% | 6.30% | 25.50% |
SEGMENT_INFORMATION_Revenues_f
SEGMENT INFORMATION (Revenues from External Customers) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | $242,120 | $247,395 | $697,418 | $642,048 |
Reportable Segment [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | ' | ' | 603,887 | 543,925 |
Reportable Segment [Member] | Plasma Disposables [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 76,698 | 68,102 | 217,768 | 200,657 |
Reportable Segment [Member] | Blood Center [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 100,658 | 111,785 | 293,755 | 244,831 |
Reportable Segment [Member] | Platelet [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 43,447 | 45,139 | 117,778 | 125,579 |
Reportable Segment [Member] | Red Cell [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 9,869 | 11,752 | 30,098 | 35,738 |
Reportable Segment [Member] | Whole Blood [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 47,342 | 54,894 | 145,879 | 83,514 |
Reportable Segment [Member] | Hospital [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 31,764 | 32,751 | 92,364 | 98,437 |
Reportable Segment [Member] | Surgical [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 16,807 | 18,900 | 49,247 | 55,965 |
Reportable Segment [Member] | OrthoPAT [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 6,392 | 7,090 | 18,973 | 22,276 |
Reportable Segment [Member] | Diagnostics [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 8,565 | 6,761 | 24,144 | 20,196 |
Reportable Segment [Member] | Disposables Revenue [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 209,120 | 212,638 | ' | ' |
Reportable Segment [Member] | Software Solutions [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | 17,603 | 16,008 | 51,469 | 51,354 |
Reportable Segment [Member] | Equipment and Other [Member] | ' | ' | ' | ' |
Revenue from External Customer [Line Items] | ' | ' | ' | ' |
Net revenues | $15,397 | $18,749 | $42,062 | $46,769 |
RESTRUCTURING_Narrative_Detail
RESTRUCTURING (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | 9 Months Ended | |||
Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 | Aug. 01, 2012 | Dec. 28, 2013 | |
Pall Corporation [Member] | Transformation of Manufacturing Network [Member] | |||||
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' | ' | ' |
Restructuring Costs Incurred | $10,505,000 | $2,946,000 | $40,766,000 | $5,225,000 | ' | ' |
Restructuring charges paid to date | ' | ' | -16,000,000 | ' | ' | ' |
Restructuring charges payable in next twelve months | 14,400,000 | ' | 14,400,000 | ' | ' | ' |
Restructuring charges expected to be incurred | 82,000,000 | ' | ' | ' | ' | 71,000,000 |
Purchase of business | ' | ' | ' | ' | 535,100,000 | ' |
Restructuring charges expected to be incurred in fiscal 2014 payable in cash | $72,000,000 | ' | ' | ' | ' | ' |
RESTRUCTURING_Schedule_of_Rest
RESTRUCTURING (Schedule of Restructuring Reserve by Type of Cost) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | $3,262 | $1,994 |
Restructuring Costs Incurred | 10,505 | 2,946 | 40,766 | 5,225 |
Less Payments | ' | ' | -19,256 | -4,423 |
Less Non-Cash Adjustments | ' | ' | -2,672 | 0 |
Ending Balance | 22,100 | 2,796 | 22,100 | 2,796 |
Severance and other employee costs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 3,089 | 1,461 |
Restructuring Costs Incurred | 5,348 | 2,737 | 28,189 | 4,807 |
Less Payments | ' | ' | -9,690 | -3,682 |
Less Non-Cash Adjustments | ' | ' | 0 | 0 |
Ending Balance | 21,588 | 2,586 | 21,588 | 2,586 |
Other costs | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 173 | 533 |
Restructuring Costs Incurred | 4,588 | 209 | 9,905 | 418 |
Less Payments | ' | ' | -9,566 | -741 |
Less Non-Cash Adjustments | ' | ' | 0 | 0 |
Ending Balance | 512 | 210 | 512 | 210 |
Accelerated depreciation | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 0 | ' |
Restructuring Costs Incurred | 569 | ' | 1,757 | ' |
Less Payments | ' | ' | 0 | ' |
Less Non-Cash Adjustments | ' | ' | -1,757 | ' |
Ending Balance | 0 | ' | 0 | ' |
Asset write-down | ' | ' | ' | ' |
Restructuring Reserve [Roll Forward] | ' | ' | ' | ' |
Beginning Balance | ' | ' | 0 | ' |
Restructuring Costs Incurred | ' | ' | 915 | ' |
Less Payments | ' | ' | 0 | ' |
Less Non-Cash Adjustments | ' | ' | -915 | ' |
Ending Balance | $0 | ' | $0 | ' |
RESTRUCTURING_Schedule_of_Rest1
RESTRUCTURING (Schedule of Restructuring and Related Costs) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Transformation costs | $6,995 | $22,138 | $29,123 | $49,963 |
Restructuring Costs Incurred | 10,505 | 2,946 | 40,766 | 5,225 |
Total restructuring and transformation | 17,500 | 25,084 | 69,889 | 55,188 |
Severance and other employee costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Costs Incurred | 5,348 | 2,737 | 28,189 | 4,807 |
Other costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Costs Incurred | 4,588 | 209 | 9,905 | 418 |
Accelerated depreciation | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Costs Incurred | 569 | ' | 1,757 | ' |
Asset disposal | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Restructuring Costs Incurred | 0 | ' | 915 | ' |
Integration and other costs | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Transformation costs | 6,306 | 22,138 | 26,389 | 49,963 |
Accelerated depreciation | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Transformation costs | 653 | ' | 1,938 | 0 |
Asset disposal | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Transformation costs | $36 | ' | $796 | $0 |
CAPITALIZATION_OF_SOFTWARE_DEV1
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) (USD $) | 9 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Mar. 30, 2013 |
Capitalization of Software and Development Costs [Abstract] | ' | ' | ' |
Capitalized software development costs for ongoing initiatives | $3.40 | $4.70 | ' |
Total costs capitalized related to in process software development initiatives | $23.40 | ' | $20 |
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Dec. 28, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance as of March 30, 2013 | $5,433 |
Other comprehensive income before reclassifications | 5,721 |
Amounts reclassified from Accumulated Other Comprehensive Income | -6,223 |
Net current period other comprehensive income | -502 |
Balance as of December 28, 2013 | 4,931 |
Foreign currency | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance as of March 30, 2013 | 4,133 |
Other comprehensive income before reclassifications | 438 |
Amounts reclassified from Accumulated Other Comprehensive Income | 0 |
Net current period other comprehensive income | 438 |
Balance as of December 28, 2013 | 4,571 |
Defined benefit plans | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance as of March 30, 2013 | -5,073 |
Net current period other comprehensive income | 0 |
Balance as of December 28, 2013 | -5,073 |
Net Unrealized Gain/loss on Derivatives | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Balance as of March 30, 2013 | 6,373 |
Other comprehensive income before reclassifications | 5,283 |
Amounts reclassified from Accumulated Other Comprehensive Income | -6,223 |
Net current period other comprehensive income | -940 |
Balance as of December 28, 2013 | $5,433 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 2) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2013 | Dec. 29, 2012 | Dec. 28, 2013 | Dec. 29, 2012 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Realized net gain on derivatives | ($2,852) | ($2,542) | ($8,035) | ($3,518) |
Income tax effect | 1,282 | -3,301 | -1,682 | -8,972 |
Net income | 16,290 | 9,904 | 24,964 | 26,239 |
Net Unrealized Gain/loss on Derivatives | Amounts Reclassified from Other Comprehensive Income | ' | ' | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | ' | ' | ' | ' |
Realized net gain on derivatives | ' | ' | 6,610 | ' |
Income tax effect | ' | ' | -387 | ' |
Net income | ' | ' | $6,223 | ' |