DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 9 Months Ended | |
Dec. 26, 2015 | Jan. 23, 2016 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HAEMONETICS CORP | |
Entity Central Index Key | 313,143 | |
Current Fiscal Year End Date | --04-02 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 26, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 50,847,663 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 233,384 | $ 231,827 | $ 666,490 | $ 683,895 |
Cost of goods sold | 124,529 | 120,166 | 349,799 | 357,842 |
Gross profit | 108,855 | 111,661 | 316,691 | 326,053 |
Operating expenses: | ||||
Research and development | 10,942 | 10,643 | 33,816 | 36,962 |
Selling, general and administrative | 78,940 | 82,512 | 240,946 | 259,383 |
Impairment of goodwill and intangible assets | 85,048 | 0 | 85,048 | 0 |
Contingent consideration (income) expense | (4,898) | 246 | (4,727) | 706 |
Total operating expenses | 170,032 | 93,401 | 355,083 | 297,051 |
Operating (loss) income | (61,177) | 18,260 | (38,392) | 29,002 |
Interest and other expense, net | (2,141) | (2,308) | (6,756) | (7,496) |
(Loss) income before (benefit from) provision for income taxes | (63,318) | 15,952 | (45,148) | 21,506 |
(Benefit from) provision for income taxes | (3,878) | (36) | 1,696 | 1,679 |
Net (loss) income | $ (59,440) | $ 15,988 | $ (46,844) | $ 19,827 |
Net income (loss) per share - basic (in dollars per share) | $ (1.17) | $ 0.31 | $ (0.92) | $ 0.38 |
Net income (loss) per share - diluted (in dollars per share) | $ (1.17) | $ 0.31 | $ (0.92) | $ 0.38 |
Weighted average shares outstanding | ||||
Basic (in shares) | 50,741 | 51,432 | 50,927 | 51,521 |
Diluted (in shares) | 50,741 | 51,962 | 50,927 | 52,024 |
Comprehensive (loss) income | $ (62,316) | $ 8,346 | $ (66,469) | $ 10,841 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 26, 2015 | Mar. 28, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 105,167 | $ 160,662 |
Accounts receivable, less allowance of $2,251 at December 26, 2015 and $1,749 at March 28, 2015 | 148,774 | 145,827 |
Inventories, net | 203,863 | 211,077 |
Deferred tax asset, net | 11,995 | 12,608 |
Prepaid expenses and other current assets | 31,564 | 40,103 |
Total current assets | 501,363 | 570,277 |
Property, plant and equipment, net | 332,772 | 321,948 |
Intangible assets, less accumulated amortization of $177,424 at December 26, 2015 and $133,175 at March 28, 2015 | 214,809 | 244,588 |
Goodwill | 266,945 | 334,310 |
Deferred tax asset, long term | 5,290 | 3,023 |
Other long-term assets | 15,243 | 11,271 |
Total assets | 1,336,422 | 1,485,417 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 46,293 | 21,522 |
Accounts payable | 39,636 | 48,425 |
Accrued payroll and related costs | 38,204 | 51,115 |
Accrued taxes | 1,791 | 3,819 |
Other current liabilities | 49,410 | 64,211 |
Total current liabilities | 175,334 | 189,092 |
Long-term debt, net of current maturities | 380,814 | 406,369 |
Long-term deferred tax liability | 33,510 | 32,097 |
Other long-term liabilities | 27,212 | 31,737 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 50,798,396 shares at December 26, 2015 and 51,670,969 shares at March 28, 2015 | 508 | 517 |
Additional paid-in capital | 435,477 | 426,964 |
Retained earnings | 324,916 | 420,365 |
Accumulated other comprehensive loss | (41,349) | (21,724) |
Total stockholders’ equity | 719,552 | 826,122 |
Total liabilities and stockholders’ equity | $ 1,336,422 | $ 1,485,417 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 26, 2015 | Mar. 28, 2015 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,251 | $ 1,749 |
Intangible assets, amortization | $ 177,424 | $ 133,175 |
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) | 50,798,396 | 51,670,969 |
Common stock, shares outstanding (in shares) | 50,798,396 | 51,670,969 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (46,844) | $ 19,827 |
Non-cash items: | ||
Depreciation and amortization | 67,721 | 63,891 |
Impairment of goodwill and intangible assets | 85,048 | 0 |
Amortization of financing costs | 648 | 797 |
Stock-based compensation expense | 6,199 | 10,219 |
Deferred tax benefit | (7,088) | 0 |
Loss on sale of property, plant and equipment | 29 | 612 |
Unrealized (gain)/loss from hedging activities | (2,867) | 1,477 |
Change in fair value of contingent consideration | (4,727) | 706 |
Asset write-down | 185 | 1,246 |
Change in operating assets and liabilities: | ||
Change in accounts receivable, net | (3,608) | 14,422 |
Change in inventories | 6,268 | (17,906) |
Change in prepaid income taxes | 997 | (219) |
Change in other assets and other liabilities | 6,622 | (18,834) |
Tax benefit of exercise of stock options | 0 | 961 |
Change in accounts payable and accrued expenses | (39,971) | (5,326) |
Net cash provided by operating activities | 68,612 | 71,873 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (73,871) | (100,530) |
Proceeds from sale of property, plant and equipment | 397 | 387 |
Other acquisitions and investments | 3,000 | 0 |
Net cash used in investing activities | (76,474) | (100,143) |
Cash Flows from Financing Activities: | ||
Payments on long-term real estate mortgage | (845) | (778) |
Net increase (decrease) in short-term loans | 7,143 | (357) |
Repayment of term loan borrowings | (7,114) | (8,531) |
Proceeds from employee stock purchase plan | 4,340 | 4,763 |
Proceeds from exercise of stock options | 10,489 | 7,926 |
Share repurchases | (60,984) | (38,701) |
Net cash used in financing activities | (46,971) | (35,678) |
Effect of exchange rates on cash and cash equivalents | (662) | (3,321) |
Net Change in Cash and Cash Equivalents | (55,495) | (67,269) |
Cash and Cash Equivalents at Beginning of Period | 160,662 | 192,469 |
Cash and Cash Equivalents at End of Period | 105,167 | 125,200 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 6,206 | 6,271 |
Income taxes paid | 5,884 | 10,727 |
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ 9,259 | $ 5,755 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Dec. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 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 December 26, 2015 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 2, 2016 , or any other interim period. Operating results for the nine months ended December 26, 2015 include the correction of an understatement of the provision for income taxes in fiscal 2015 , as well as the correction of an overstated liability in fiscal 2014, both of which were determined to be immaterial to all periods impacted. Absent these corrections, our net income for the nine months ended December 26, 2015 would have been $1.1 million lower than the amount included in the accompanying Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income. 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 28, 2015 . 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 year 2016 includes 53 weeks with each of the first three quarters having 13 weeks and the fourth quarter having 14 weeks. Fiscal year 2015 included 52 weeks with each quarter having 13 weeks. Summary of Significant Accounting Policies Revenue Recognition We offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum potential rebate or discount that could be earned. In circumstances where we provide upfront rebate payments to customers, we capitalize the rebate payments and amortize the resulting asset as a reduction of revenue using a systematic method over the life of the contract. For additional information regarding significant accounting policies, refer to our annual report on Form 10-K for the fiscal year ended March 28, 2015 . |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Dec. 26, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Standards Implemented In April 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-08, Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . ASU No. 2014-08 limits the requirement to report discontinued operations to disposals of components of an entity that represent strategic shifts that have (or will have) a major effect on an entity’s operations and financial results. The amendments also require expanded disclosures concerning discontinued operations and disclosures of certain financial results attributable to a disposal of a significant component of an entity that does not qualify for discontinued operations reporting. The amendments in ASU No. 2014-08 are effective prospectively for reporting periods beginning on or after December 15, 2014, with early adoption permitted. We adopted ASU No. 2014-08 beginning in the first quarter of fiscal 2016. The adoption of ASU No. 2014-08 did not impact our financial position or results of operations. Standards to be Implemented In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 stipulates that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve this core principle, an entity should apply the following steps: (1) identify the contract(s) with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when (or as) the entity satisfies a performance obligation. ASU No. 2014-09 will be effective for annual reporting periods beginning after December 15, 2017, including interim periods within those reporting periods. Early adoption is permitted for annual reporting periods beginning after December 15, 2016, including interim reporting periods within that reporting period. The impact of adopting ASU No. 2014-09 on our financial position and results of operations is being assessed by management. In June 2014, the FASB issued ASU No. 2014-12, Compensation—Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period . ASU No. 2014-12 requires that a performance target that affects vesting and could be achieved after the requisite service period be treated as a performance condition. A reporting entity should apply existing guidance in ASC 718, Compensation—Stock Compensation, as it relates to such awards. ASU No. 2014-12 is effective in our first quarter of fiscal 2017 with early adoption permitted using either of two methods: (i) prospective to all awards granted or modified after the effective date; or (ii) retrospective to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter, with the cumulative effect of applying ASU No. 2014-12 as an adjustment to the opening retained earnings balance as of the beginning of the earliest annual period presented in the financial statements. Management does not believe that the adoption of ASU No. 2014-12 will have a material effect on our financial position or results of operations. In August 2014, the FASB issued ASU No. 2014-15, Presentation of Financial Statements—Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern . ASU No. 2014-15 defines management's responsibility to assess an entity's ability to continue as a going concern, and to provide related footnote disclosures in certain circumstances. This guidance will be effective for all entities in the first annual period ending after December 15, 2016; however, early adoption is permitted. Management does not believe that the adoption of ASU No. 2014-15 will have a material effect on our financial position or results of operations. In January 2015, the FASB issued ASU No. 2015-01, Income Statement-Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items . ASU No. 2015-01 eliminates from GAAP the concept of extraordinary items. An entity will no longer be required to (1) segregate an extraordinary item from the results of ordinary operations; (2) separately present an extraordinary item on its income statement, net of tax, after income from continuing operations; and (3) disclose income taxes and earnings-per-share data applicable to an extraordinary item. ASU No. 2015-01 will be effective for fiscal years beginning after December 15, 2015. An entity may apply the amendments prospectively or retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. Management does not believe that the adoption of ASU No. 2015-01 will have a material effect on our financial position or results of operations. In February 2015, the FASB issued ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis . ASU No. 2015-02 amended the process that a reporting entity must perform to determine whether it should consolidate certain types of legal entities. ASU No. 2015-02 is effective for annual periods ending after December 15, 2015, and for annual periods and interim periods thereafter with early adoption permitted. Management does not believe that the adoption of ASU No. 2015-02 will have a material effect on our financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-03, Interest—Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. ASU No. 2015-03 requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This guidance simplifies the presentation of debt issuance costs but does not address presentation or subsequent measurement of debt issue costs related to line of credit arrangements. In August 2015, the FASB issued ASU No. 2015-15, Interest—Imputation of Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements. ASU No. 2015-15 indicates that the SEC staff would not object to an entity deferring and presenting debt issuance costs related to line of credit arrangements as an asset and subsequently amortizing the deferred debt issuance costs over the term of the line of credit arrangement, regardless of whether there are any outstanding borrowings on the line of credit arrangement. ASU No. 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Early adoption is permitted. Management does not believe that the adoption of ASU No. 2015-03 will have a material effect on our financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-04, Compensation—Retirement Benefits (Topic 715): Practical Expedient for the Measurement Date of an Employer’s Defined Benefit Obligation and Plan Assets. ASU No. 2015-04 provides a practical expedient, for an entity with a fiscal year-end that does not coincide with a month-end, that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. ASU No. 2015-04 is effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Early application is permitted. Management does not believe that the adoption of ASU No. 2015-04 will have a material effect on our financial position or results of operations. In April 2015, the FASB issued ASU No. 2015-05, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . ASU No. 2015-05 will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. ASU No. 2015-05 is effective for interim and annual periods beginning after December 15, 2015 with early adoption permitted. Management does not believe that the adoption of ASU No. 2015-05 will have a material effect on our financial position or results of operations. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory . ASU No. 2015-11 more closely aligns the measurement of inventory in U.S. GAAP with the measurement of inventory in International Financial Reporting Standards by requiring companies using the first-in, first-out and average costs methods to measure inventory using the lower of cost and net realizable value. ASU No. 2015-11 is effective for annual reporting periods beginning after December 15, 2016 and interim periods within those fiscal years. ASU No. 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. Management does not believe that the adoption of ASU No. 2015-11 will have a material effect on our financial position or results of operations. In August 2015, the FASB issued ASU No. 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient . Part I of ASU No. 2015-12 designates contract value as the only required measure for fully benefit-responsive investment contracts. Part II simplifies the investment disclosure requirements under Topics 820, 960, 962, and 965 for employee benefits plans and Part III provides a measurement date practical expedient for fiscal periods that do not coincide with a month-end date. ASU No. 2015-12 is effective for fiscal years beginning after December 15, 2015 with early adoption permitted. Management does not believe that the adoption of ASU No. 2015-12 will have a material effect on our financial position or results of operations. In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes . ASU No. 2015-17 simplifies the presentation of deferred taxes on a classified balance sheet. Currently under GAAP, deferred income tax assets and liabilities are separated into current and non-current amounts in the balance sheet. ASU No. 2015-17 requires that all deferred tax assets and liabilities be classified as non-current in the balance sheet. ASU No. 2015-17 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods, with early adoption permitted. Management believes the adoption of ASU No. 2015-17 will have an impact on our financial statement presentation, but will not have a material effect on our financial position or results of operations. |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 9 Months Ended |
Dec. 26, 2015 | |
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. Three Months Ended (In thousands, except per share amounts) December 26, December 27, Basic EPS Net (loss) income $ (59,440 ) $ 15,988 Weighted average shares 50,741 51,432 Basic (loss) income per share $ (1.17 ) $ 0.31 Diluted EPS Net (loss) income $ (59,440 ) $ 15,988 Basic weighted average shares 50,741 51,432 Net effect of common stock equivalents — 530 Diluted weighted average shares 50,741 51,962 Diluted (loss) income per share $ (1.17 ) $ 0.31 Nine Months Ended (In thousands, except per share amounts) December 26, December 27, Basic EPS Net (loss) income $ (46,844 ) $ 19,827 Weighted average shares 50,927 51,521 Basic (loss) income per share $ (0.92 ) $ 0.38 Diluted EPS Net (loss) income $ (46,844 ) $ 19,827 Basic weighted average shares 50,927 51,521 Net effect of common stock equivalents — 503 Diluted weighted average shares 50,927 52,024 Diluted (loss) income per share $ (0.92 ) $ 0.38 Basic earnings per share is calculated using our weighted-average outstanding common shares. Diluted earnings per share is calculated using our weighted-average outstanding common shares including the dilutive effect of stock awards as determined under the treasury stock method. For the three and nine months ended December 26, 2015 , we recognized a net loss; therefore we excluded the impact of outstanding stock awards from the diluted loss per share calculation as their inclusion would have an anti-dilutive effect. Weighted average shares outstanding, assuming dilution, excludes the impact of 1.7 million and 1.6 million anti-dilutive shares for the three and nine months ended December 27, 2014 , respectively. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Total stock-based compensation expense of $6.2 million and $10.2 million was recognized for the nine months ended December 26, 2015 and December 27, 2014 , respectively. There was no related income tax benefit recognized for the nine months ended December 26, 2015 and the related income tax benefit recognized for the nine months ended December 27, 2014 was $3.3 million . The weighted average fair value for our options granted was $7.41 and $7.89 per share for the nine months ended December 26, 2015 and December 27, 2014 , respectively. The assumptions utilized for estimating the fair value of option grants during the periods presented are as follows: Nine Months Ended December 26, December 27, Stock Options Black-Scholes assumptions (weighted average): Volatility 22.82 % 22.45 % Expected life (years) 4.9 4.9 Risk-free interest rate 1.40 % 1.75 % Dividend yield — % — % As of December 26, 2015 , there was $18.2 million of total unrecognized compensation cost related to non-vested equity based compensation, including stock options, restricted stock units, market stock units and performance share units. This cost is expected to be recognized over a weighted average period of 2.9 years. During the nine months ended December 26, 2015 and December 27, 2014 , there were 145,334 and 183,808 shares, respectively, purchased under the Employee Stock Purchase Plan at an average price of $29.87 and $25.92 per share, respectively. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 9 Months Ended |
Dec. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
PRODUCT WARRANTIES | PRODUCT WARRANTIES We generally provide 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 periodically assess the adequacy of our warranty accrual, making adjustments as necessary. Nine Months Ended (In thousands) December 26, December 27, Warranty accrual as of the beginning of the period $ 531 $ 590 Warranty provision 532 890 Warranty spending (701 ) (941 ) Warranty accrual as of the end of the period $ 362 $ 539 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill Impairment Testing and Charges Under ASC Topic 350, Intangibles - Goodwill and Other, goodwill and intangible assets determined to have indefinite useful lives are not amortized. Instead these assets are evaluated for impairment at least annually, or on an interim basis between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit is less than its carrying value. We perform our annual impairment test on the first day of the fiscal fourth quarter for each of our reporting units. Our reporting units for purposes of assessing goodwill impairment are the same as our operating segments, which are organized primarily based on geography and include: North America Plasma, Americas Blood Center and Hospital, Europe, Middle East, and Africa (collectively "EMEA"), Asia-Pacific and Japan. The North America Plasma reporting unit is a separate operating segment with dedicated segment management due the size and scale of the plasma business. During the third quarter of each fiscal year, we prepare our long term projections for net revenues, income and operating cash flows. The economic weakness in EMEA, particularly Russia, and declines in our U.S. blood center collections have negatively impacted earnings before interest, taxes, depreciation, and amortization ("EBITDA") and net revenues for our EMEA and Americas Blood Center and Hospital reporting units. Because of these market conditions and key uncertainties, including the market rate of adoption of our new products and the negative impact of intense competitive pressure on pricing and market share, we lowered our expectations in terms of the timing and amount of our future revenue, income and cash flows. As a result, we concluded in the third quarter of fiscal 2016 that indicators of potential goodwill impairment were present for the EMEA and Americas Blood Center and Hospital reporting units, therefore requiring an interim test for goodwill impairment. In accordance with ASC Topic 350, we prepared a “Step 1” Test that compared the estimated fair value of each reporting unit to its carrying value. We utilized a discounted cash flow approach in order to value our reporting units for the Step 1 Test, which required that we forecast future cash flows of the reporting units and discount the cash flow stream based upon a weighted average cost of capital that was derived, in part, from comparable companies within similar industries. The discounted cash flow calculations also included a terminal value calculation that was based upon an expected long-term growth rate for the applicable reporting unit. We believe that our procedures for estimating discounted future cash flows, including the terminal valuation, are reasonable and consistent with market conditions at the time of estimation. We corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation and by reconciling the aggregate fair value of our reporting units to our market capitalization at the time of the test. The results of the Step 1 Test performed in the third quarter of fiscal 2016 indicated that the estimated fair value of all of our reporting units exceeded their respective carrying values, with the exception of EMEA, for which we recorded an estimated goodwill impairment charge, as discussed below. Based on this Step 1 analysis, the reporting unit that is most at risk of impairment in future periods is the Americas Blood Center and Hospital, which has an excess fair value over carrying value of approximately 25.8% and has allocated goodwill of $175.9 million as of December 26, 2015. We believe that our assumptions used to determine the fair value of the Americas Blood Center and Hospital reporting unit were reasonable. If different assumptions were to be used, particularly with respect to estimating future cash flows, or if actual operating results and cash flows of the Americas Blood Center and Hospital differ from the estimated operating results and related cash flows, there is the potential that an impairment charge could result in future periods. Additionally, changes to the discount rate or the long-term growth rate could also give rise to an impairment in future periods. As a result of the carrying value of the EMEA reporting unit exceeding its estimated fair value, a "Step 2" Test is required for this reporting unit. The Step 2 Test measures the impairment loss by allocating the estimated fair value of the reporting unit, as determined in Step 1, to the reporting units’ assets and liabilities, with the residual amount representing the implied fair value of goodwill. To the extent the implied fair value of goodwill is less than the carrying value, an impairment loss is recognized. The Step 2 Test under ASC Topic 350 requires us to perform a theoretical purchase price allocation for the EMEA reporting unit to determine the implied fair value of goodwill as of the evaluation date. Due to the complexity of the analysis required to complete the Step 2 Test and the timing of our determination of the Step 1 goodwill impairment, we have not yet finalized our Step 2 Test, however, we have completed a preliminary assessment of the expected impact of the Step 1 and Step 2 Tests using reasonable estimates of discounted cash flows and for the theoretical purchase price allocation. Based on this assessment, we have recorded a preliminary estimate of the goodwill impairment loss for the third quarter and first nine months ended December 26, 2015 of $66.3 million , which represents the entire goodwill balance allocated to EMEA. This charge does not impact our liquidity, cash flows from operations, future operations, or compliance with debt covenants. The preliminary estimates of goodwill impairment loss will be finalized prior to the issuance of our Form 10-K for the year ended April 2, 2016 as part of our annual evaluation as of the first day of our fiscal fourth quarter. We believe that the preliminary estimate of goodwill impairment loss is reasonable and represents our best estimate of the goodwill impairment loss to be incurred; however, it is possible that when the year-end tests are completed we may be required to record a material adjustment to this preliminary estimate. The following procedures are, among others, the more significant analyses that we need to complete to finalize our year end Step 2 Tests for the EMEA reporting unit: • Final appraisals to determine the estimated fair value of identifiable intangible assets. • Final analysis to determine the estimated fair value adjustment required to inventory. • Final deferred tax analysis. In connection with the preliminary Step 2 Tests, we made what we considered to be reasonable estimates of each of the above items in order to determine our preliminary best estimate of the goodwill impairment loss under the theoretical purchase price allocation required for Step 2 Tests by ASC Topic 350. The completion of the final analyses described above may result in significant changes to the estimates used and therefore may have a significant impact on the final goodwill impairment loss recorded for fiscal 2016. In addition, we may identify other issues during the completion of the Step 2 Tests that may have a significant impact on the final goodwill impairment loss recorded for fiscal 2016. The changes in the carrying amount of goodwill for fiscal 2016 and 2015 are as follows: (In thousands) Carrying amount as of March 29, 2014 $ 336,768 Effects of change in foreign currency exchange rates (2,458 ) Carrying amount as of March 28, 2015 $ 334,310 Impairment charge (66,305 ) Effects of change in foreign currency exchange rates (1,060 ) Carrying amount as of December 26, 2015 $ 266,945 Intangible Asset Impairment In April 2013, we acquired a patented red cell storage solution, referred to as SOLX, from Hemerus Medical, LLC for cash consideration of $24.1 million plus an agreement to make certain future payments accounted for as contingent consideration. During the third quarter of fiscal 2016, we received U.S. Food and Drug Administration clearance for the SOLX solution with a Haemonetics whole blood filter. Currently, the vast majority of the U.S. market utilizes a red cell filter, not a whole blood filter, for whole blood collection procedures as they seek to optimize blood component yield from each collection. To bring SOLX to market with a red cell filter requires substantial additional investment. Accordingly, we conducted a final market review prior to proceeding with this investment, which indicated customers would not pay a price for a SOLX collection kit sufficient to recover the cost to produce it, or to provide an adequate return on the additional investment. As result, we have suspended further investment in the SOLX technology and have recorded an impairment charge of $18.7 million to write down the carrying value of the SOLX intangible assets as of December 26, 2015. In addition, we reversed the $4.9 million of contingent consideration liability we had recorded, as we now do not expect to achieve the conditions that called for its payment. The gross carrying amount of intangible assets and the related accumulated amortization, as of December 26, 2015 and March 28, 2015 is as follows: (In thousands) Gross Carrying Amount Accumulated Amortization (1) Net Weighted Average Useful Life (In years) As of December 26, 2015 Patents $ 11,210 $ 7,445 $ 3,765 9 Capitalized software 52,557 9,242 43,315 6 Other developed technology 126,066 70,887 55,179 12 Customer contracts and related relationships 195,368 84,758 110,610 10 Trade names 7,032 5,092 1,940 11 Total intangibles $ 392,233 $ 177,424 $ 214,809 10 (1) Includes impairment of SOLX asset, as discussed above. (In thousands) Gross Carrying Amount Accumulated Amortization Net Weighted Average Useful Life (In years) As of March 28, 2015 Patents $ 10,473 $ 7,373 $ 3,100 9 Capitalized software 39,690 5,654 34,036 7 Other developed technology 124,573 46,474 78,099 12 Customer contracts and related relationships 195,985 70,440 125,545 10 Trade names 7,042 3,234 3,808 11 Total intangibles $ 377,763 $ 133,175 $ 244,588 10 Intangible assets include the value assigned to license rights and other developed technology, patents, customer contracts and relationships and trade names. The estimated useful lives for all of these intangible assets are 2 to 19 years. The changes to the net carrying value of our intangible assets from March 28, 2015 to December 26, 2015 reflect the impact of the SOLX impairment discussed above and amortization expense, partially offset by the investment in capitalized software and other less significant intangible assets. Aggregate amortization expense for amortized intangible assets, excluding the impact of the SOLX impairment, for the nine months ended December 26, 2015 and fiscal year 2015 was $25.9 million and $33.5 million , respectively. Future annual amortization expense on intangible assets is estimated to be as follows: Fiscal Year Amount (in thousands) 2016 $ 7,771 2017 $ 32,195 2018 $ 31,411 2019 $ 29,666 2020 and thereafter $ 96,395 |
INVENTORIES
INVENTORIES | 9 Months Ended |
Dec. 26, 2015 | |
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 using the first-in, first-out method. (In thousands) December 26, March 28, Raw materials $ 62,596 $ 71,794 Work-in-process 16,421 12,462 Finished goods 124,846 126,821 Total inventory $ 203,863 $ 211,077 |
DERIVATIVES AND FAIR VALUE MEAS
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 9 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [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 26, 2015 , approximately 43.1% of our sales were generated outside the U.S. 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 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, Australian Dollar, British Pound Sterling, 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 26, 2015 and March 28, 2015 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 (Loss) 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 $112.9 million as of December 26, 2015 and $145.8 million as of March 28, 2015 . During the nine months ended December 26, 2015 , we recognized net gains of $8.8 million in earnings from our cash flow hedges, compared to recognized net gains of $2.9 million during the nine months ended December 27, 2014 . For the nine months ended December 26, 2015 , a $1.1 million loss, net of tax, was recorded in Accumulated Other Comprehensive Loss 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 a gain of $8.4 million , net of tax, for the nine months ended December 27, 2014 . At December 26, 2015 , losses of $2.1 million , net of tax, will be reclassified to earnings within the next twelve months . All currency cash flow hedges outstanding as of December 26, 2015 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 $48.6 million as of December 26, 2015 and $52.6 million as of March 28, 2015 . Interest Rate Swaps On August 1, 2012, we entered into a credit agreement, as amended June 30, 2014, which provided for a 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 allows us to borrow in multiple tranches. 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. We formally document our hedge relationships (including identifying the hedged instrument and hedged item) at hedge inception to ensure that our interest rate swaps qualify for hedge accounting. 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 26, 2015 and December 27, 2014 , a gain of $0.1 million and a loss of $0.3 million , respectively, net of tax, were recorded in Accumulated Other Comprehensive Loss 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 26, 2015 : (In thousands) Amount of Gain (Loss) Amount of Gain Reclassified Location in Income and Comprehensive (Loss) Income Amount of Gain Excluded from Testing * Location in Derivative Instruments Designated foreign currency hedge contracts, net of tax $ (1,139 ) $ 8,779 Net revenues, COGS, and SG&A $ 56 Interest and other expense, net Non-designated foreign currency hedge contracts — — 972 Interest and other expense, net Designated interest rate swaps, net of tax $ 139 $ — 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 26, 2015 or March 28, 2015 . As of December 26, 2015 , the amount recognized as a deferred tax liability for designated foreign currency hedges was $0.1 million . ASC Topic 815 requires all derivative instruments to be recognized at their fair value 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 26, 2015 , we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 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 26, 2015 and March 28, 2015 : (In thousands) Location in Balance Sheet December 26, 2015 March 28, 2015 Derivative Assets: Designated foreign currency hedge contracts Other current assets $ 1,395 $ 9,740 Designated interest rate swaps Other current assets 65 — $ 1,460 $ 9,740 Derivative Liabilities: Designated foreign currency hedge contracts Other current liabilities $ 2,842 $ 2,499 Designated interest rate swaps Other current liabilities — 159 $ 2,842 $ 2,658 Other Fair Value Measurements ASC Topic 820 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 26, 2015 , 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 26, 2015 and March 28, 2015 . As of December 26, 2015 As of March 28, 2015 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 66,712 $ — $ — $ 66,712 $ 119,946 $ — $ — $ 119,946 Designated foreign currency hedge contracts — 1,395 — 1,395 — 9,740 — 9,740 Designated interest rate swaps — 65 — 65 — — — — $ 66,712 $ 1,460 $ — $ 68,172 $ 119,946 $ 9,740 $ — $ 129,686 Liabilities Designated foreign currency hedge contracts $ — $ 2,842 $ — $ 2,842 $ — $ 2,499 $ — $ 2,499 Designated interest rate swaps — — — — — 159 — 159 Contingent consideration — — — — — — 4,727 4,727 $ — $ 2,842 $ — $ 2,842 $ — $ 2,658 $ 4,727 $ 7,385 For the nine months ended December 26, 2015 , non-designated foreign currency hedge contracts were not significant and are not disclosed separately in the above table. Contingent Consideration 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. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the nine months ended December 26, 2015 . (In thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration as of March 28, 2015 $ 4,727 Fair value adjustment 171 Contingent consideration income (4,898 ) Ending balance $ — As discussed in Note 6, Goodwill and Intangible Assets , during the nine months ended December 26, 2015, we reversed the remaining $4.9 million of contingent consideration liability associated with the SOLX asset, as we now do not expect to achieve the conditions that called for its payment. This reversal, as well as the fair value adjustment recorded, are included in the Consolidated Statements of (Loss) Income for the nine months ended December 26, 2015. Other Fair Value Disclosures The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. Details pertaining to the Term Loan can be found in Note 10, Debt . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Dec. 26, 2015 | |
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 U.S. federal statutory rate in all reported periods as the income tax rates in the foreign jurisdictions are generally lower than the U.S. statutory tax rate. The reported income tax benefit rate for the nine months ended December 26, 2015 was 3.8% , as compared to a reported income tax provision rate of 7.8% for the nine months ended December 27, 2014 . The change in our reported tax rate for the nine months ending December 26, 2015 relates primarily to the impact of impairment charges recorded during the third quarter of fiscal 2016. During the three and nine months ended December 26, 2015, we recorded goodwill impairment charges of $66.3 million and intangible asset impairment charges of $18.7 million with a corresponding $7.1 million benefit to income taxes. During the nine months ended December 26, 2015 , we recorded pre-tax losses in Scotland, Italy and Malaysia due to restructuring and transformation costs associated with our manufacturing transformation, and we did not record a corresponding tax benefit due to the valuation allowance maintained against our net deferred tax assets in these jurisdictions. Similarly, during the nine months ended December 27, 2014 , we recorded pre-tax losses in Scotland, Italy and Malaysia associated with restructuring costs, and we did not record a corresponding tax benefit due to uncertainty around our ability to realize a tax benefit in these jurisdictions. In addition, we recorded discrete tax benefits during the three months ended December 26, 2015 associated with the release of tax reserves due to the expiration of the statute of limitations as well as the retroactive enactment of the U.S. federal research credit. We recorded tax expense of $1.0 million during the nine months ended December 26, 2015 as a result of a deferred tax rate change which impacted an indefinite-lived deferred tax liability of our Puerto Rican subsidiary. We are in a three year cumulative loss position in the U.S. and, accordingly, maintain a valuation allowance against our U.S. deferred tax assets. We also maintain a valuation allowance against certain foreign deferred tax assets which we have concluded are not more-likely-than-not realizable. |
DEBT
DEBT | 9 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT On August 1, 2012, we entered into a credit agreement ("Credit Agreement") with certain lenders (together, “Lenders”) which provided for a $475.0 million Term Loan and a $50.0 million revolving loan (the “Revolving Credit Facility”), and together with the Term Loan, (the “Credit Facilities”). The Credit Facilities had a term of five years and mature on August 1, 2017. Interest was based on the Adjusted LIBOR plus a range of 1.125% to 1.500% depending on the achievement of leverage ratios and customary credit terms which included financial and negative covenants. On June 30, 2014, we modified our existing Credit Facilities by extending the maturity date to July 1, 2019, extending the principal repayments of the Term Loan, and modifying certain restrictive covenants to allow greater operational flexibility and enhanced near term liquidity. In addition, the amended Credit Agreement provides for a $100.0 million revolving credit facility and establishes interest rates in the range of LIBOR plus 1.125% – 1.500% , depending on certain conditions. At December 26, 2015 , $372.3 million was outstanding under the term loan and $50.0 million was outstanding on the Revolving Credit Facility, both with an interest rate of 1.625% . No additional amounts were borrowed as a result of this modification. The fair value of debt approximates its current value of approximately $422.3 million as of December 26, 2015 . We were in compliance with the leverage and interest coverage ratios specified in the Credit Agreement as well as all other bank covenants as of December 26, 2015 . The goodwill and intangible asset impairment charges discussed in Note 6, Goodwill and Intangible Assets, are excluded from the definition of consolidated EBITDA in the Credit Agreement. The maturity profile is as follows: Fiscal year (in thousands) Term Loan 2016 $ 14,228 2017 42,683 2018 45,054 2019 151,763 2020 168,564 $ 422,292 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Dec. 26, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES We are presently engaged in various legal actions, and although the total liability cannot be determined at the present time, based on consultation with counsel, we believe that any such liability will not materially affect our consolidated financial position or our results of operations. Italian Employment Litigation Our Italian manufacturing subsidiary is party to several actions initiated by employees of the facility in Ascoli-Piceno, Italy where we have ceased manufacturing operations. These include actions claiming (i) working conditions and minimum salaries should have been established by either a different classification under their national collective bargaining agreement or a different agreement altogether, (ii) certain solidarity agreements, which are arrangements between the Company, employees and the government to continue full pay and benefits for employees who would otherwise be terminated in times of low demand, are void, and (iii) payment of the extra time used for changing into and out of the working clothes at the beginning and end of each shift. In addition, a union represented in the Ascoli plant has filed an action claiming that the Company discriminated against it in favor of three other represented unions by (i) interfering with an employee referendum, (ii) interfering with an employee petition to recall union representatives from office, and (iii) excluding the union from certain meetings. Finally, we have been added as defendants on claims filed against Pall Corporation prior to our acquisition of the plant in August 2012. These claims relate to agreements to "freeze" benefit allowances for a certain period in exchange for Pall's commitments on hiring and plant investment. As of December 26, 2015 , the total amount of damages claimed by the plaintiffs in these matters is approximately $3.7 million . It is not possible at this point in the proceedings to accurately evaluate the likelihood or amount of any potential losses and therefore no amounts have been accrued. We may receive other, similar claims in the future. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION We manage a global business which designs, manufactures and markets blood management solutions. Our solutions are marketed through operating segments organized primarily on geography: North America Plasma, Americas Blood Center and Hospital, Europe, Middle East, and Africa (collectively "EMEA"), Asia Pacific and Japan. ASC 280, Segment Reporting, permits the aggregation of segments which are economically similar as well as similar in all of the following areas: (i) the nature of the products and services, (ii) the nature of the production processes, (iii) the type or class of customer for their products and services, (iv) the methods used to distribute their products or provide their services, and (v) the nature of the regulatory environment. Based on the criteria of ASC 280, we have one reportable segment. This conclusion is consistent with how our chief operating decision-maker views the business. Our chief operating decision maker primarily uses consolidated results to make operating and strategic decisions. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Dec. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING On an ongoing basis, we review the global economy, the healthcare industry and the markets in which we compete to identify opportunities for efficiencies, enhance commercial capabilities, align our resources and offer our customers better solutions. In order to realize these opportunities, we undertake restructuring-type activities to transform our business. On May 1, 2013, we committed to a plan to pursue identified Value Creation and Capture initiatives ("VCC"). These opportunities include investment in product line extensions and next generation products, enhancement of commercial capabilities and a transformation of our manufacturing network. The transformation of our manufacturing network is expected to be completed in fiscal 2017 and included changes to the manufacturing footprint and supply chain structure (the "Network Plan"). To date, we have (i) discontinued manufacturing activities at our Ascoli-Piceno, Italy and Braintree, Massachusetts facilities, (ii) expanded our facility in Tijuana, Mexico, (iii) engaged Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (iv) built a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. We expect to complete the transfer of manufacturing activities from the Bothwell, Scotland facility by the middle of fiscal 2017. This transition will complete our VCC initiatives announced on May 1, 2013. See the Liquidity and Capital Resources discussion of the Management Discussion and Analysis of Financial Condition and Results of Operations for further discussion of the costs of these activities. The following summarizes the restructuring costs for the nine months ended December 26, 2015 and December 27, 2014 : Nine Months Ended December 26, 2015 (In thousands) Restructuring Accrual Balance at March 28, 2015 Restructuring Costs Incurred Less Payments Less Non-Cash Adjustments Restructuring Accrual Balance at December 26, 2015 Severance and other employee costs $ 16,393 $ 9,141 $ (16,150 ) $ — $ 9,384 Other costs 219 7,846 (7,188 ) — 877 Accelerated depreciation — 1,258 — (1,258 ) — Asset write-down — 4 — (4 ) — Total $ 16,612 $ 18,249 $ (23,338 ) $ (1,262 ) $ 10,261 Nine Months Ended December 27, 2014 (in thousands) Restructuring Accrual Balance at March 29, 2014 Restructuring Costs Incurred Less Payments Less Non-Cash Adjustments Restructuring Accrual Balance at December 27, 2014 Severance and other employee costs $ 22,908 $ 15,633 $ (21,785 ) $ — $ 16,756 Other costs 728 12,044 (12,527 ) — 245 Accelerated depreciation — 1,158 — (1,158 ) — Asset write-down — 295 — (295 ) — $ 23,636 $ 29,130 $ (34,312 ) $ (1,453 ) $ 17,001 We deployed significant financial resources for these activities. Many of the costs necessary to complete the VCC initiatives, such as severance and other plant closing costs, qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations . We incurred $18.2 million in severance, asset write-downs and other restructuring charges during the nine months ended December 26, 2015 . In addition, we also incurred $6.9 million of costs that do not constitute restructuring under ASC 420, which we refer to as "Transformation Costs". These costs consist primarily of expenditures directly related to our transformation activities including program management, product line transfer teams and related costs, infrastructure related costs, accelerated depreciation and asset disposals. We estimate we will incur approximately $40 million in restructuring and transformation costs, net of contingent consideration income, in fiscal 2016 . 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 Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the periods presented. Transformation costs Three Months Ended Nine Months Ended (in thousands) December 26, December 27, December 26, December 27, Transformation and other costs $ (235 ) $ 5,892 $ 6,774 $ 20,877 Accelerated depreciation 10 351 86 769 Asset disposal 18 471 18 471 Total $ (207 ) $ 6,714 $ 6,878 $ 22,117 Restructuring costs Three Months Ended Nine Months Ended (in thousands) December 26, December 27, December 26, December 27, Severance and other employee costs $ 1,181 $ 2,887 $ 9,141 $ 15,633 Other costs 2,270 2,691 7,846 12,044 Accelerated depreciation 415 418 1,258 1,158 Asset disposal — 199 4 295 Total $ 3,866 $ 6,195 $ 18,249 $ 29,130 Total restructuring and transformation $ 3,659 $ 12,909 $ 25,127 $ 51,247 As discussed in Note 8, Derivatives and Fair Value Measurements , during the three and nine months ended December 26, 2015, we reversed $4.9 million of contingent consideration associated with the SOLX asset, as we now do not expect to achieve the conditions that called for its payment. This reversal is reflected in transformation and other costs in the table above. |
CAPITALIZATION OF SOFTWARE DEVE
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | 9 Months Ended |
Dec. 26, 2015 | |
Research and Development [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 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 $12.9 million and $6.6 million in software development costs for ongoing initiatives during the nine months ended December 26, 2015 and December 27, 2014 , respectively. At December 26, 2015 and March 28, 2015 , we have a total of $52.6 million and $39.7 million of capitalized software costs, of which $14.3 million and $7.9 million are related to in-process software development initiatives, respectively. During the nine months ended December 26, 2015 , $6.4 million of capitalized costs were placed into service. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. We review these assets for impairment at least annually. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE INCOME | 9 Months Ended |
Dec. 26, 2015 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE LOSS The following is a roll-forward of the components of Accumulated Other Comprehensive Loss, net of tax, for the nine months ended December 26, 2015 : (In thousands) Foreign Currency Defined Benefit Plans Net Unrealized Gain/Loss on Derivatives Total Balance as of March 28, 2015 $ (20,512 ) $ (8,923 ) $ 7,711 $ (21,724 ) Other comprehensive (loss)/income before reclassifications (9,849 ) 3 (1,000 ) (10,846 ) Amounts reclassified from Accumulated Other Comprehensive Loss — — (8,779 ) (8,779 ) Net current period other comprehensive (loss)/income (9,849 ) 3 (9,779 ) (19,625 ) Balance as of December 26, 2015 $ (30,361 ) $ (8,920 ) $ (2,068 ) $ (41,349 ) Details pertaining to the amount reclassified from Accumulated Other Comprehensive Loss for the nine months ended December 26, 2015 are as follows: Amounts Reclassified from Other Comprehensive Loss Affected Line in the Statement of Income Derivative instruments reclassified to income statement Realized net gain on derivatives $ 8,830 Net revenues, Cost of goods sold, Interest and other expense, net Income tax effect (51 ) Provision for (benefit from) income taxes Net of taxes $ 8,779 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 9 Months Ended |
Dec. 26, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Revenue Recognition | Revenue Recognition We offer sales rebates and discounts to certain customers. We treat sales rebates and discounts as a reduction of revenue and classify the corresponding liability as current. We estimate rebates for products where there is sufficient historical information available to predict the volume of expected future rebates. If we are unable to estimate the expected rebates reasonably, we record a liability for the maximum potential rebate or discount that could be earned. In circumstances where we provide upfront rebate payments to customers, we capitalize the rebate payments and amortize the resulting asset as a reduction of revenue using a systematic method over the life of the contract. For additional information regarding significant accounting policies, refer to our annual report on Form 10-K for the fiscal year ended March 28, 2015 . |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
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. Three Months Ended (In thousands, except per share amounts) December 26, December 27, Basic EPS Net (loss) income $ (59,440 ) $ 15,988 Weighted average shares 50,741 51,432 Basic (loss) income per share $ (1.17 ) $ 0.31 Diluted EPS Net (loss) income $ (59,440 ) $ 15,988 Basic weighted average shares 50,741 51,432 Net effect of common stock equivalents — 530 Diluted weighted average shares 50,741 51,962 Diluted (loss) income per share $ (1.17 ) $ 0.31 Nine Months Ended (In thousands, except per share amounts) December 26, December 27, Basic EPS Net (loss) income $ (46,844 ) $ 19,827 Weighted average shares 50,927 51,521 Basic (loss) income per share $ (0.92 ) $ 0.38 Diluted EPS Net (loss) income $ (46,844 ) $ 19,827 Basic weighted average shares 50,927 51,521 Net effect of common stock equivalents — 503 Diluted weighted average shares 50,927 52,024 Diluted (loss) income per share $ (0.92 ) $ 0.38 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
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 26, December 27, Stock Options Black-Scholes assumptions (weighted average): Volatility 22.82 % 22.45 % Expected life (years) 4.9 4.9 Risk-free interest rate 1.40 % 1.75 % Dividend yield — % — % |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability | We estimate our potential warranty expense based on our historical warranty experience and periodically assess the adequacy of our warranty accrual, making adjustments as necessary. Nine Months Ended (In thousands) December 26, December 27, Warranty accrual as of the beginning of the period $ 531 $ 590 Warranty provision 532 890 Warranty spending (701 ) (941 ) Warranty accrual as of the end of the period $ 362 $ 539 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill for fiscal 2016 and 2015 are as follows: (In thousands) Carrying amount as of March 29, 2014 $ 336,768 Effects of change in foreign currency exchange rates (2,458 ) Carrying amount as of March 28, 2015 $ 334,310 Impairment charge (66,305 ) Effects of change in foreign currency exchange rates (1,060 ) Carrying amount as of December 26, 2015 $ 266,945 |
Schedule of Amoritized Intangibles | The gross carrying amount of intangible assets and the related accumulated amortization, as of December 26, 2015 and March 28, 2015 is as follows: (In thousands) Gross Carrying Amount Accumulated Amortization (1) Net Weighted Average Useful Life (In years) As of December 26, 2015 Patents $ 11,210 $ 7,445 $ 3,765 9 Capitalized software 52,557 9,242 43,315 6 Other developed technology 126,066 70,887 55,179 12 Customer contracts and related relationships 195,368 84,758 110,610 10 Trade names 7,032 5,092 1,940 11 Total intangibles $ 392,233 $ 177,424 $ 214,809 10 (1) Includes impairment of SOLX asset, as discussed above. (In thousands) Gross Carrying Amount Accumulated Amortization Net Weighted Average Useful Life (In years) As of March 28, 2015 Patents $ 10,473 $ 7,373 $ 3,100 9 Capitalized software 39,690 5,654 34,036 7 Other developed technology 124,573 46,474 78,099 12 Customer contracts and related relationships 195,985 70,440 125,545 10 Trade names 7,042 3,234 3,808 11 Total intangibles $ 377,763 $ 133,175 $ 244,588 10 |
Schedule of Future Amortization Expense | Future annual amortization expense on intangible assets is estimated to be as follows: Fiscal Year Amount (in thousands) 2016 $ 7,771 2017 $ 32,195 2018 $ 31,411 2019 $ 29,666 2020 and thereafter $ 96,395 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
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 using the first-in, first-out method. (In thousands) December 26, March 28, Raw materials $ 62,596 $ 71,794 Work-in-process 16,421 12,462 Finished goods 124,846 126,821 Total inventory $ 203,863 $ 211,077 |
DERIVATIVES AND FAIR VALUE ME27
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [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 26, 2015 : (In thousands) Amount of Gain (Loss) Amount of Gain Reclassified Location in Income and Comprehensive (Loss) Income Amount of Gain Excluded from Testing * Location in Derivative Instruments Designated foreign currency hedge contracts, net of tax $ (1,139 ) $ 8,779 Net revenues, COGS, and SG&A $ 56 Interest and other expense, net Non-designated foreign currency hedge contracts — — 972 Interest and other expense, net Designated interest rate swaps, net of tax $ 139 $ — 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 26, 2015 and March 28, 2015 : (In thousands) Location in Balance Sheet December 26, 2015 March 28, 2015 Derivative Assets: Designated foreign currency hedge contracts Other current assets $ 1,395 $ 9,740 Designated interest rate swaps Other current assets 65 — $ 1,460 $ 9,740 Derivative Liabilities: Designated foreign currency hedge contracts Other current liabilities $ 2,842 $ 2,499 Designated interest rate swaps Other current liabilities — 159 $ 2,842 $ 2,658 |
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 26, 2015 and March 28, 2015 . As of December 26, 2015 As of March 28, 2015 (In thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Money market funds $ 66,712 $ — $ — $ 66,712 $ 119,946 $ — $ — $ 119,946 Designated foreign currency hedge contracts — 1,395 — 1,395 — 9,740 — 9,740 Designated interest rate swaps — 65 — 65 — — — — $ 66,712 $ 1,460 $ — $ 68,172 $ 119,946 $ 9,740 $ — $ 129,686 Liabilities Designated foreign currency hedge contracts $ — $ 2,842 $ — $ 2,842 $ — $ 2,499 $ — $ 2,499 Designated interest rate swaps — — — — — 159 — 159 Contingent consideration — — — — — — 4,727 4,727 $ — $ 2,842 $ — $ 2,842 $ — $ 2,658 $ 4,727 $ 7,385 |
Schedule of Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the nine months ended December 26, 2015 . (In thousands) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Contingent consideration as of March 28, 2015 $ 4,727 Fair value adjustment 171 Contingent consideration income (4,898 ) Ending balance $ — |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The maturity profile is as follows: Fiscal year (in thousands) Term Loan 2016 $ 14,228 2017 42,683 2018 45,054 2019 151,763 2020 168,564 $ 422,292 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following summarizes the restructuring costs for the nine months ended December 26, 2015 and December 27, 2014 : Nine Months Ended December 26, 2015 (In thousands) Restructuring Accrual Balance at March 28, 2015 Restructuring Costs Incurred Less Payments Less Non-Cash Adjustments Restructuring Accrual Balance at December 26, 2015 Severance and other employee costs $ 16,393 $ 9,141 $ (16,150 ) $ — $ 9,384 Other costs 219 7,846 (7,188 ) — 877 Accelerated depreciation — 1,258 — (1,258 ) — Asset write-down — 4 — (4 ) — Total $ 16,612 $ 18,249 $ (23,338 ) $ (1,262 ) $ 10,261 Nine Months Ended December 27, 2014 (in thousands) Restructuring Accrual Balance at March 29, 2014 Restructuring Costs Incurred Less Payments Less Non-Cash Adjustments Restructuring Accrual Balance at December 27, 2014 Severance and other employee costs $ 22,908 $ 15,633 $ (21,785 ) $ — $ 16,756 Other costs 728 12,044 (12,527 ) — 245 Accelerated depreciation — 1,158 — (1,158 ) — Asset write-down — 295 — (295 ) — $ 23,636 $ 29,130 $ (34,312 ) $ (1,453 ) $ 17,001 |
Schedule of Restructuring and Related Costs | 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 Consolidated Statements of (Loss) Income and Comprehensive (Loss) Income for the periods presented. Transformation costs Three Months Ended Nine Months Ended (in thousands) December 26, December 27, December 26, December 27, Transformation and other costs $ (235 ) $ 5,892 $ 6,774 $ 20,877 Accelerated depreciation 10 351 86 769 Asset disposal 18 471 18 471 Total $ (207 ) $ 6,714 $ 6,878 $ 22,117 Restructuring costs Three Months Ended Nine Months Ended (in thousands) December 26, December 27, December 26, December 27, Severance and other employee costs $ 1,181 $ 2,887 $ 9,141 $ 15,633 Other costs 2,270 2,691 7,846 12,044 Accelerated depreciation 415 418 1,258 1,158 Asset disposal — 199 4 295 Total $ 3,866 $ 6,195 $ 18,249 $ 29,130 Total restructuring and transformation $ 3,659 $ 12,909 $ 25,127 $ 51,247 |
COMPREHENSIVE INCOME (Tables)
COMPREHENSIVE INCOME (Tables) | 9 Months Ended |
Dec. 26, 2015 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The following is a roll-forward of the components of Accumulated Other Comprehensive Loss, net of tax, for the nine months ended December 26, 2015 : (In thousands) Foreign Currency Defined Benefit Plans Net Unrealized Gain/Loss on Derivatives Total Balance as of March 28, 2015 $ (20,512 ) $ (8,923 ) $ 7,711 $ (21,724 ) Other comprehensive (loss)/income before reclassifications (9,849 ) 3 (1,000 ) (10,846 ) Amounts reclassified from Accumulated Other Comprehensive Loss — — (8,779 ) (8,779 ) Net current period other comprehensive (loss)/income (9,849 ) 3 (9,779 ) (19,625 ) Balance as of December 26, 2015 $ (30,361 ) $ (8,920 ) $ (2,068 ) $ (41,349 ) |
Reclassification out of Accumulated Other Comprehensive Income | Details pertaining to the amount reclassified from Accumulated Other Comprehensive Loss for the nine months ended December 26, 2015 are as follows: Amounts Reclassified from Other Comprehensive Loss Affected Line in the Statement of Income Derivative instruments reclassified to income statement Realized net gain on derivatives $ 8,830 Net revenues, Cost of goods sold, Interest and other expense, net Income tax effect (51 ) Provision for (benefit from) income taxes Net of taxes $ 8,779 |
BASIS OF PRESENTATION (Narrativ
BASIS OF PRESENTATION (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended |
Dec. 26, 2015 | Mar. 28, 2015 | |
Basis of Presentation [Line Items] | ||
Correction of understatement, provision for income taxes | $ 1 | |
Term of fiscal years | 371 days | 364 days |
Term of quarters | 91 days | |
First Three Quarters [Member] | ||
Basis of Presentation [Line Items] | ||
Term of quarters | 91 days | |
Fourth Quarter [Member] | ||
Basis of Presentation [Line Items] | ||
Term of quarters | 98 days | |
Operating Income (Loss) [Member] | ||
Basis of Presentation [Line Items] | ||
Correction of understatement, provision for income taxes | $ 1.1 |
EARNINGS PER SHARE ("EPS") (Sch
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Basic EPS | ||||
Net (loss) income | $ (59,440) | $ 15,988 | $ (46,844) | $ 19,827 |
Basic weighted average shares (in shares) | 50,741 | 51,432 | 50,927 | 51,521 |
Basic income (loss) per share (in dollars per share) | $ (1.17) | $ 0.31 | $ (0.92) | $ 0.38 |
Diluted EPS | ||||
Net (loss) income | $ (59,440) | $ 15,988 | $ (46,844) | $ 19,827 |
Basic weighted average shares (in shares) | 50,741 | 51,432 | 50,927 | 51,521 |
Net effect of common stock equivalents (in shares) | 0 | 530 | 0 | 503 |
Diluted weighted average shares (in shares) | 50,741 | 51,962 | 50,927 | 52,024 |
Diluted income (loss) per share (in dollars per share) | $ (1.17) | $ 0.31 | $ (0.92) | $ 0.38 |
Stock awards excluded from computation of weighted average shares outstanding (in shares) | 1,700 | 1,600 |
STOCK-BASED COMPENSATION (Detai
STOCK-BASED COMPENSATION (Details) - USD ($) | 9 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Stock-based compensation expense recognized | $ 6,199,000 | $ 10,219,000 |
Tax benefit from compensation expense | $ 0 | $ 3,300,000 |
Weighted average fair value of options granted (in dollars per share) | $ 7.41 | $ 7.89 |
Stock Options Black-Scholes assumptions (weighted average): | ||
Volatility | 22.82% | 22.45% |
Expected life (years) | 4 years 10 months 24 days | 4 years 10 months 24 days |
Risk-free interest rate | 1.40% | 1.75% |
Dividend yield | 0.00% | 0.00% |
Total unrecognized compensation cost | $ 18,200,000 | |
Total unrecognized compensation cost related to non-vested stock options, weighted average period of recognition | 2 years 10 months 24 days | |
Shares purchased under the ESPP (in shares) | 145,334 | 183,808 |
Shares purchased under the ESPP (in dollars per share) | $ 29.87 | $ 25.92 |
PRODUCT WARRANTIES (Schedule of
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Product Warranties [Roll Forward] | ||
Warranty accrual as of the beginning of the period | $ 531 | $ 590 |
Warranty provision | 532 | 890 |
Warranty spending | (701) | (941) |
Warranty accrual as of the end of the period | $ 362 | $ 539 |
GOODWILL AND INTANGIBLE ASSET35
GOODWILL AND INTANGIBLE ASSETS Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Dec. 26, 2015 | Dec. 26, 2015 | Mar. 28, 2015 | |
Goodwill [Roll Forward] | |||
Goodwill, carrying amount | $ 334,310 | $ 336,768 | |
Impairment charge | $ (66,305) | (66,305) | |
Effects of change in foreign currency exchange rates | (1,060) | (2,458) | |
Goodwill, carrying amount | $ 266,945 | $ 266,945 | $ 334,310 |
Americas Blood Center and Hospital | |||
Goodwill [Line Items] | |||
Reporting unit, excess fair value over carrying value | 25.80% | 25.80% | |
Goodwill [Roll Forward] | |||
Goodwill, carrying amount | $ 175,900 | $ 175,900 |
GOODWILL AND INTANGIBLE ASSET36
GOODWILL AND INTANGIBLE ASSETS Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 18,700 | $ 18,700 | |||
Contingent consideration (income) expense | (4,898) | $ 246 | (4,727) | $ 706 | |
Intangible Assets | |||||
Gross Carrying Amount | 392,233 | 392,233 | $ 377,763 | ||
Accumulated Amortization | 177,424 | 177,424 | 133,175 | ||
Net | 214,809 | $ 214,809 | $ 244,588 | ||
Weighted average useful life | 10 years | 10 years | |||
Aggregate amortization expense | $ 25,900 | $ 33,500 | |||
Future amortization expense, year one | 7,771 | 7,771 | |||
Future amortization expense, year two | 32,195 | 32,195 | |||
Future amortization expense, year three | 31,411 | 31,411 | |||
Future amortization expense, year four | 29,666 | 29,666 | |||
Future amortization expense, year five and thereafter | 96,395 | 96,395 | |||
Patents | |||||
Intangible Assets | |||||
Gross Carrying Amount | 11,210 | 11,210 | 10,473 | ||
Accumulated Amortization | 7,445 | 7,445 | 7,373 | ||
Net | 3,765 | $ 3,765 | $ 3,100 | ||
Weighted average useful life | 9 years | 9 years | |||
Capitalized software | |||||
Intangible Assets | |||||
Gross Carrying Amount | 52,557 | $ 52,557 | $ 39,690 | ||
Accumulated Amortization | 9,242 | 9,242 | 5,654 | ||
Net | 43,315 | $ 43,315 | $ 34,036 | ||
Weighted average useful life | 6 years | 7 years | |||
Other developed technology | |||||
Intangible Assets | |||||
Gross Carrying Amount | 126,066 | $ 126,066 | $ 124,573 | ||
Accumulated Amortization | 70,887 | 70,887 | 46,474 | ||
Net | 55,179 | $ 55,179 | $ 78,099 | ||
Weighted average useful life | 12 years | 12 years | |||
Customer contracts and related relationships | |||||
Intangible Assets | |||||
Gross Carrying Amount | 195,368 | $ 195,368 | $ 195,985 | ||
Accumulated Amortization | 84,758 | 84,758 | 70,440 | ||
Net | 110,610 | $ 110,610 | $ 125,545 | ||
Weighted average useful life | 10 years | 10 years | |||
Trade names | |||||
Intangible Assets | |||||
Gross Carrying Amount | 7,032 | $ 7,032 | $ 7,042 | ||
Accumulated Amortization | 5,092 | 5,092 | 3,234 | ||
Net | $ 1,940 | $ 1,940 | $ 3,808 | ||
Weighted average useful life | 11 years | 11 years | |||
Minimum | |||||
Intangible Assets | |||||
Weighted average useful life | 2 years | ||||
Maximum | |||||
Intangible Assets | |||||
Weighted average useful life | 19 years | ||||
Hemerus Medical, LLC [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment charge | $ 18,700 | ||||
Contingent consideration (income) expense | $ 4,900 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Mar. 28, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 62,596 | $ 71,794 |
Work-in-process | 16,421 | 12,462 |
Finished goods | 124,846 | 126,821 |
Inventories, net | $ 203,863 | $ 211,077 |
DERIVATIVES AND FAIR VALUE ME38
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 ($) $ in Thousands | 9 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ (1,139) | $ 8,400 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Net revenues, COGS, and SG&A | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 8,779 | 2,900 |
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount Excluded from Effectiveness Testing | 56 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 139 | $ (300) |
Amount Excluded from Effectiveness Testing | 0 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 0 | |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Interest and other expense, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount Excluded from Effectiveness Testing | $ 972 |
DERIVATIVES AND FAIR VALUE ME39
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Mar. 28, 2015 |
Derivative Assets: | ||
Derivative Assets | $ 1,460 | $ 9,740 |
Derivative Liabilities: | ||
Derivative Liabilities | 2,842 | 2,658 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 1,395 | 9,740 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 2,842 | 2,499 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 65 | 0 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 0 | $ 159 |
DERIVATIVES AND FAIR VALUE ME40
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | |
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Contingent consideration income | $ 4,898 | $ (246) | $ 4,727 | $ (706) | |
Quoted Market Prices for Identical Assets (Level 1) | |||||
Assets | |||||
Designated interest rate swaps | 0 | 0 | |||
Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Designated interest rate swaps | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | |||||
Assets | |||||
Money market funds | 66,712 | 66,712 | $ 119,946 | ||
Designated foreign currency hedge contracts | 1,395 | 1,395 | 9,740 | ||
Designated interest rate swaps | 65 | 65 | 0 | ||
Assets, Fair Value Disclosure, Total | 68,172 | 68,172 | 129,686 | ||
Liabilities | |||||
Designated foreign currency hedge contracts | 2,842 | 2,842 | 2,499 | ||
Designated interest rate swap | 0 | 0 | 159 | ||
Contingent consideration liability | 0 | 0 | 4,727 | ||
Liabilities, Fair Value Disclosure | 2,842 | 2,842 | 7,385 | ||
Fair Value, Measurements, Recurring [Member] | Quoted Market Prices for Identical Assets (Level 1) | |||||
Assets | |||||
Money market funds | 66,712 | 66,712 | 119,946 | ||
Designated foreign currency hedge contracts | 0 | 0 | 0 | ||
Designated interest rate swaps | 0 | ||||
Assets, Fair Value Disclosure, Total | 66,712 | 66,712 | 119,946 | ||
Liabilities | |||||
Designated foreign currency hedge contracts | 0 | 0 | 0 | ||
Designated interest rate swap | 0 | 0 | 0 | ||
Contingent consideration liability | 0 | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 0 | 0 | 0 | ||
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | |||||
Assets | |||||
Money market funds | 0 | 0 | 0 | ||
Designated foreign currency hedge contracts | 1,395 | 1,395 | 9,740 | ||
Designated interest rate swaps | 65 | 65 | 0 | ||
Assets, Fair Value Disclosure, Total | 1,460 | 1,460 | 9,740 | ||
Liabilities | |||||
Designated foreign currency hedge contracts | 2,842 | 2,842 | 2,499 | ||
Designated interest rate swap | 0 | 0 | 159 | ||
Contingent consideration liability | 0 | 0 | 0 | ||
Liabilities, Fair Value Disclosure | 2,842 | 2,842 | 2,658 | ||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Assets | |||||
Money market funds | 0 | 0 | 0 | ||
Designated foreign currency hedge contracts | 0 | 0 | 0 | ||
Designated interest rate swaps | 0 | ||||
Assets, Fair Value Disclosure, Total | 0 | 0 | 0 | ||
Liabilities | |||||
Designated foreign currency hedge contracts | 0 | 0 | 0 | ||
Designated interest rate swap | 0 | 0 | 0 | ||
Contingent consideration liability | 0 | 0 | 4,727 | ||
Liabilities, Fair Value Disclosure | $ 0 | 0 | $ 4,727 | ||
Fair Value Measurements Using Significant Unobservable Inputs (Level 3) | |||||
Contingent consideration as of March 28, 2015 | 4,727 | ||||
Fair value adjustment | 171 | ||||
Contingent consideration income | $ (4,898) |
DERIVATIVES AND FAIR VALUE ME41
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Thousands | Dec. 21, 2012USD ($)swap | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Mar. 28, 2015USD ($) |
Derivative [Line Items] | ||||||
Percentage of sales generated outside the US | 43.10% | |||||
Maturity period for foreign currency contracts (in years) | 1 year | |||||
Designated foreign currency hedge contracts outstanding | $ 112,900 | $ 112,900 | $ 145,800 | |||
Non-designated foreign currency hedge contracts outstanding | 48,600 | 48,600 | 52,600 | |||
Deferred income tax expense (benefit) | (7,088) | (7,088) | $ 0 | |||
Contingent consideration income | $ 4,898 | $ (246) | $ 4,727 | (706) | ||
Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Maturity period for foreign currency contracts (in years) | 1 year | |||||
Designated as Hedging Instrument | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Deferred income tax expense (benefit) | $ 100 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | 1,139 | (8,400) | ||||
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | 2,100 | |||||
Designated as Hedging Instrument | Interest Rate Swap [Member] | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | (139) | 300 | ||||
Number of Interest Rate Derivatives Held | swap | 2 | |||||
Description of variable rate basis | LIBOR | |||||
Derivative, fixed interest rate | 0.68% | |||||
Notional amount of derivative | $ 250,000 | |||||
Net revenues, COGS, and SG&A | Designated as Hedging Instrument | Cash Flow Hedging | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 8,779 | $ 2,900 | ||||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||||
Derivative [Line Items] | ||||||
Fair Value, Measurement with Unobservable Inputs Reconciliations, Recurring Basis, Liability Value | $ 4,727 | |||||
Contingent consideration income | $ (4,898) |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Dec. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | |||
Reported tax rate | (3.80%) | 7.80% | |
Goodwill impairment charge | $ 66,305 | $ 66,305 | |
Intangible asset impairment charge | 18,700 | 18,700 | |
Deferred tax benefit | $ 7,088 | 7,088 | $ 0 |
Recorded tax expense due to tax rate increase in Puerto Rico | $ 1,000 |
DEBT (Details)
DEBT (Details) $ in Thousands | 9 Months Ended |
Dec. 26, 2015USD ($) | |
Debt Instrument [Line Items] | |
Debt outstanding | $ 422,292 |
2,015 | 14,228 |
2,016 | 42,683 |
2,017 | 45,054 |
2,018 | 151,763 |
2019 and beyond | $ 168,564 |
Credit Agreement [Member] | |
Debt Instrument [Line Items] | |
Term of credit facilities | 5 years |
Debt outstanding | $ 422,300 |
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | |
Debt Instrument [Line Items] | |
Effective interest rate | 1.625% |
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum | |
Debt Instrument [Line Items] | |
Interest Rate | 1.125% |
Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum | |
Debt Instrument [Line Items] | |
Interest Rate | 1.50% |
Term Loan [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt | $ 475,000 |
Debt outstanding | 372,300 |
Revolving Credit Facility [Member] | |
Debt Instrument [Line Items] | |
Face amount of debt | 50,000 |
Debt outstanding | 50,000 |
Maximum borrowing capacity | $ 100,000 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Dec. 26, 2015USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Damages claimed | $ 3,700,000 |
Amount accrued | $ 0 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) | 9 Months Ended |
Dec. 26, 2015segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 1 |
RESTRUCTURING (Narrative) (Deta
RESTRUCTURING (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Contingent consideration (income) expense | $ (4,898) | $ 246 | $ (4,727) | $ 706 |
Expected cost | 40,000 | 40,000 | ||
Restructuring Costs Incurred | 3,866 | 6,195 | 18,249 | 29,130 |
Transformation costs | $ (207) | $ 6,714 | 6,878 | $ 22,117 |
Hemerus Medical, LLC [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Contingent consideration (income) expense | $ 4,900 |
RESTRUCTURING (Schedule of Rest
RESTRUCTURING (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | $ 16,612 | $ 23,636 | ||
Restructuring Costs Incurred | $ 3,866 | $ 6,195 | 18,249 | 29,130 |
Less Payments | (23,338) | (34,312) | ||
Less Non-Cash Adjustments | 1,262 | 1,453 | ||
Restructuring Accrual Balance | 10,261 | 17,001 | 10,261 | 17,001 |
Severance and other employee costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 16,393 | 22,908 | ||
Restructuring Costs Incurred | 1,181 | 2,887 | 9,141 | 15,633 |
Less Payments | (16,150) | (21,785) | ||
Less Non-Cash Adjustments | 0 | 0 | ||
Restructuring Accrual Balance | 9,384 | 16,756 | 9,384 | 16,756 |
Other costs | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 219 | 728 | ||
Restructuring Costs Incurred | 2,270 | 2,691 | 7,846 | 12,044 |
Less Payments | (7,188) | (12,527) | ||
Less Non-Cash Adjustments | 0 | 0 | ||
Restructuring Accrual Balance | 877 | 245 | 877 | 245 |
Accelerated depreciation | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 0 | 0 | ||
Restructuring Costs Incurred | 415 | 418 | 1,258 | 1,158 |
Less Payments | 0 | 0 | ||
Less Non-Cash Adjustments | (1,258) | (1,158) | ||
Restructuring Accrual Balance | 0 | 0 | 0 | 0 |
Asset write-down | ||||
Restructuring Reserve [Roll Forward] | ||||
Restructuring Accrual Balance | 0 | 0 | ||
Restructuring Costs Incurred | 4 | 295 | ||
Less Payments | 0 | 0 | ||
Less Non-Cash Adjustments | (4) | (295) | ||
Restructuring Accrual Balance | $ 0 | $ 0 | $ 0 | $ 0 |
RESTRUCTURING (Schedule of Re48
RESTRUCTURING (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $ (207) | $ 6,714 | $ 6,878 | $ 22,117 |
Restructuring Costs Incurred | 3,866 | 6,195 | 18,249 | 29,130 |
Total restructuring and transformation | 3,659 | 12,909 | 25,127 | 51,247 |
Severance and other employee costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 1,181 | 2,887 | 9,141 | 15,633 |
Other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 2,270 | 2,691 | 7,846 | 12,044 |
Accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 415 | 418 | 1,258 | 1,158 |
Asset disposal | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs Incurred | 0 | 199 | 4 | 295 |
Transformation and other costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | (235) | 5,892 | 6,774 | 20,877 |
Accelerated depreciation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | 10 | 351 | 86 | 769 |
Asset disposal | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Transformation costs | $ 18 | $ 471 | $ 18 | $ 471 |
CAPITALIZATION OF SOFTWARE DE49
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Mar. 28, 2015 | |
Research and Development [Abstract] | |||
Capitalized software development costs for ongoing initiatives | $ 12.9 | $ 6.6 | |
Software costs capitalized, net | 52.6 | $ 39.7 | |
Total costs capitalized related to in process software development initiatives | 14.3 | $ 7.9 | |
Capitalized software development costs placed into service | $ 6.4 |
ACCUMULATED OTHER COMPREHENSI50
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) $ in Thousands | 9 Months Ended |
Dec. 26, 2015USD ($) | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 28, 2015 | $ (21,724) |
Other comprehensive (loss)/income before reclassifications | (10,846) |
Amounts reclassified from Accumulated Other Comprehensive Loss | (8,779) |
Net current period other comprehensive (loss)/income | (19,625) |
Balance as of December 26, 2015 | (41,349) |
Foreign Currency | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 28, 2015 | (20,512) |
Other comprehensive (loss)/income before reclassifications | (9,849) |
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 |
Net current period other comprehensive (loss)/income | (9,849) |
Balance as of December 26, 2015 | (30,361) |
Defined Benefit Plans | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 28, 2015 | (8,923) |
Other comprehensive (loss)/income before reclassifications | 3 |
Amounts reclassified from Accumulated Other Comprehensive Loss | 0 |
Net current period other comprehensive (loss)/income | 3 |
Balance as of December 26, 2015 | (8,920) |
Net Unrealized Gain/Loss on Derivatives | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |
Balance as of March 28, 2015 | 7,711 |
Other comprehensive (loss)/income before reclassifications | (1,000) |
Amounts reclassified from Accumulated Other Comprehensive Loss | (8,779) |
Net current period other comprehensive (loss)/income | (9,779) |
Balance as of December 26, 2015 | $ (2,068) |
ACCUMULATED OTHER COMPREHENSI51
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized net gain on derivatives | $ (2,141) | $ (2,308) | $ (6,756) | $ (7,496) |
Income tax effect | 3,878 | 36 | (1,696) | (1,679) |
Net (loss) income | $ (59,440) | $ 15,988 | (46,844) | $ 19,827 |
Net Unrealized Gain/Loss on Derivatives | Amounts Reclassified from Other Comprehensive Loss | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Realized net gain on derivatives | 8,830 | |||
Income tax effect | (51) | |||
Net (loss) income | $ 8,779 |