DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION - shares | 3 Months Ended | |
Jun. 30, 2018 | Aug. 03, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | HAEMONETICS CORP | |
Entity Central Index Key | 313,143 | |
Current Fiscal Year End Date | --03-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 51,691,865 |
CONSOLIDATED STATEMENTS OF (LOS
CONSOLIDATED STATEMENTS OF (LOSS) INCOME AND COMPREHENSIVE (LOSS) INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Income Statement [Abstract] | ||
Net revenues | $ 229,347 | $ 210,951 |
Cost of goods sold | 146,103 | 119,286 |
Gross profit | 83,244 | 91,665 |
Operating expenses: | ||
Research and development | 9,406 | 8,193 |
Selling, general and administrative | 68,545 | 66,861 |
Total operating expenses | 77,951 | 75,054 |
Operating income | 5,293 | 16,611 |
Gain on divestiture | 0 | 8,000 |
Interest and other expense, net | (1,978) | (1,359) |
Income before provision for income taxes | 3,315 | 23,252 |
Provision for income taxes | 6,134 | 3,115 |
Net (loss) income | $ (2,819) | $ 20,137 |
Net (loss) income per share - basic (in dollars per share) | $ (0.05) | $ 0.38 |
Net (loss) income per share - diluted (in dollars per share) | $ (0.05) | $ 0.38 |
Weighted average shares outstanding | ||
Basic (in shares) | 52,119 | 52,443 |
Diluted (in shares) | 52,119 | 52,811 |
Comprehensive (loss) income | $ (7,538) | $ 23,766 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 192,106 | $ 180,169 |
Accounts receivable, less allowance of $2,327 at June 30, 2018 and $2,111 at March 31, 2018 | 151,336 | 151,226 |
Inventories, net | 175,329 | 160,799 |
Prepaid expenses and other current assets | 32,246 | 28,983 |
Total current assets | 551,017 | 521,177 |
Property, plant and equipment, net | 315,873 | 332,156 |
Intangible assets, less accumulated amortization of $256,675 at June 30, 2018 and $249,278 at March 31, 2018 | 148,730 | 156,589 |
Goodwill | 210,903 | 211,395 |
Deferred tax asset | 3,774 | 3,961 |
Other long-term assets | 10,871 | 12,061 |
Total assets | 1,241,168 | 1,237,339 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 17,043 | 194,259 |
Accounts payable | 65,393 | 55,265 |
Accrued payroll and related costs | 45,828 | 69,519 |
Other liabilities | 65,731 | 65,660 |
Total current liabilities | 193,995 | 384,703 |
Long-term debt, net of current maturities | 330,838 | 59,423 |
Deferred tax liability | 10,606 | 6,526 |
Other long-term liabilities | 31,670 | 34,258 |
Total stockholders’ equity | ||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,641,159 shares at June 30, 2018 and 52,342,965 shares at March 31, 2018 | 516 | 523 |
Additional paid-in capital | 507,394 | 503,955 |
Retained earnings | 189,859 | 266,942 |
Accumulated other comprehensive loss | (23,710) | (18,991) |
Total stockholders’ equity | 674,059 | 752,429 |
Total liabilities and stockholders’ equity | $ 1,241,168 | $ 1,237,339 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $ 2,327 | $ 2,111 |
Intangible assets, amortization | $ 256,675 | $ 249,278 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, shares issued (in shares) | 51,641,159 | 52,342,965 |
Common stock, shares outstanding (in shares) | 51,641,159 | 52,342,965 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Cash Flows from Operating Activities: | ||
Net (loss) income | $ (2,819) | $ 20,137 |
Non-cash items: | ||
Depreciation and amortization | 26,415 | 21,789 |
Gain on divestiture | 0 | (8,000) |
Stock-based compensation expense | 3,379 | 1,343 |
Impairment of assets | 21,170 | 0 |
Provision for losses on accounts receivable and inventory | (352) | 928 |
Other non-cash operating activities | 19 | 658 |
Change in operating assets and liabilities: | ||
Change in accounts receivable | (1,577) | 2,203 |
Change in inventories | (15,058) | 1,417 |
Change in prepaid income taxes | 72 | 817 |
Change in other assets and other liabilities | (1,214) | 8,998 |
Change in accounts payable and accrued expenses | (6,913) | (11,865) |
Net cash provided by operating activities | 23,122 | 38,425 |
Cash Flows from Investing Activities: | ||
Capital expenditures | (27,514) | (13,721) |
Proceeds from divestiture | 0 | 9,000 |
Proceeds from sale of property, plant and equipment | 250 | 981 |
Net cash used in investing activities | (27,264) | (3,740) |
Cash Flows from Financing Activities: | ||
Term loan borrowings | 347,780 | 0 |
Term loan borrowings | (253,728) | (11,856) |
Proceeds from employee stock purchase plan | 1,780 | 1,622 |
Proceeds from exercise of stock options | 2,831 | 6,430 |
Share repurchases | (80,000) | 0 |
Net increase in short-term loans | 0 | 255 |
Net cash provided by (used in) financing activities | 18,663 | (3,549) |
Effect of exchange rates on cash and cash equivalents | (2,584) | 1,039 |
Net Change in Cash and Cash Equivalents | 11,937 | 32,175 |
Cash and Cash Equivalents at Beginning of Period | 180,169 | 139,564 |
Cash and Cash Equivalents at End of Period | 192,106 | 171,739 |
Supplemental Disclosures of Cash Flow Information: | ||
Interest paid | 2,361 | 1,825 |
Income taxes paid | 1,817 | 2,151 |
Transfers from inventory to fixed assets for placement of Haemonetics equipment | $ 1,799 | $ 1,338 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION Basis of Presentation The accompanying unaudited consolidated financial statements of Haemonetics Corporation ("Haemonetics" or the "Company") presented herein have been prepared in accordance with generally accepted accounting principles in the United States of America (“U.S. GAAP”) 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 U.S. 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 three months ended June 30, 2018 are not necessarily indicative of the results that may be expected for the full fiscal year ending March 30, 2019 or any other interim period. We have assessed our ability to continue as a going concern. As of June 30, 2018 , we have concluded that substantial doubt about our ability to continue as a going concern does not exist. 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 31, 2018 . 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. Refer to Note 5, Earnings Per Share, for information pertaining to the completion of an accelerated share repurchase that occurred after the balance sheet date but prior to the issuance of the financial statements. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Standards Implemented Revenue from Contracts with Customers (Topic 606) In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") Update No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASC Update 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. In March 2016, the FASB issued ASC Update No. 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) . The purpose of ASC Update No. 2016-08 is to clarify the guidance on principal versus agent considerations. It includes indicators that help to determine whether an entity controls the specified good or service before it is transferred to the customer and to assist in determining when the entity satisfied the performance obligation and as such, whether to recognize a gross or a net amount of consideration in their consolidated statement of operations. In April 2016, the FASB issued ASC Update No. 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing . The guidance clarifies that entities are not required to assess whether promised goods or services are performance obligations if they are immaterial in the context of the contract. ASC Update No. 2016-10 also addresses how to determine whether promised goods or services are separately identifiable and permits entities to make a policy election to treat shipping and handling costs as fulfillment activities. In addition, it clarifies key provisions in Topic 606 related to licensing. We adopted Topic 606 on April 1, 2018, using the modified retrospective method. Under this method, entities recognize the cumulative effect of applying the new standard at the date of initial application with no restatement of comparative periods presented. The cumulative effect of applying the new standard resulted in an increase to opening retained earnings of $1.5 million upon adoption of Topic 606 in April 2018, primarily related to deferred revenue associated with software contracts. Software revenue accounts for approximately 8.1% and 7.5% of our total revenue for the three months ended June 30, 2018 and three months ended July 1, 2017 , respectively. The new standard has been applied only to those contracts that were not completed as of March 31, 2018. The impact of adopting ASU 2014-09 was not significant to individual financial statement line items in the consolidated balance sheet and consolidated statement of (loss) income and comprehensive (loss) income. Other Recent Accounting Pronouncements In October 2016, the FASB issued ASC Update No. 2016-16, Income Taxes (Topic 740). The guidance requires companies to recognize the income tax effects of intercompany sales and transfers of assets, other than inventory, in the income statement as income tax expense (or benefit) in the period in which the transfer occurs. We adopted ASC Update No. 2016-16 during the first quarter of fiscal 2019. The adoption of ASC Update No. 2016-16 did not have a material impact on our consolidated financial statements. In August 2016, the FASB issued ASC Update No. 2016-15, Statement of Cash Flow (Topic 230). The guidance reduces diversity in how certain cash receipts and cash payments are presented and classified in the consolidated statements of cash flows. We adopted ASC Update No. 2016-15 during the first quarter of fiscal 2019. The adoption of ASC Update No. 2016-15 did not have a material impact on our consolidated financial statements. In May 2017, the FASB issued ASC Update No. 2017-09, Compensation - Stock Compensation: Scope of Modification Accounting (Topic 718). The guidance clarifies when to account for a change to the terms or conditions of a share-based payment award as a modification. We adopted ASC Update No. 2017-09 during the first quarter of fiscal 2019. The adoption of ASC Update No. 2017-09 did not have a material impact on our consolidated financial statements. |
RESTRUCTURING
RESTRUCTURING | 3 Months Ended |
Jun. 30, 2018 | |
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. During fiscal 2018, we launched a Complexity Reduction Initiative (the "2018 Program"), a company-wide restructuring program designed to improve operational performance and reduce cost, freeing up resources to invest in accelerated growth. This program includes a reduction of headcount and operating costs which will enable a more streamlined organizational structure. We expect to incur aggregate charges between $50 million and $60 million associated with these actions, of which we expect $35 million to $40 million will consist of severance and other employee costs and the remainder will consist of other exit costs, primarily related to third party services. These charges, substantially all of which will result in cash outlays, will be incurred as the specific actions required to execute on these initiatives are identified and approved and are expected to continue through fiscal 2020. During the three months ended June 30, 2018 , we incurred $3.4 million of restructuring and turnaround costs under this program. Total cumulative charges under this program are $40.0 million . During fiscal 2017, we launched a restructuring program (the "2017 Program") designed to reposition our organization and improve our cost structure. During the three months ended June 30, 2018 , there were nominal restructuring and turnaround charges recorded under this program. During the three months ended July 1, 2017 , we incurred $2.5 million of restructuring and turnaround charges under this program. The 2017 Program is substantially complete. The following table summarizes the activity for restructuring reserves related to the 2018 Program and the 2017 Program for the three months ended June 30, 2018 , substantially all of which relates to employee severance and other employee costs: (In thousands) 2018 Program 2017 Program Total Balance at March 31, 2018 $ 27,129 $ 1,406 $ 28,535 Costs incurred, net of reversals (268 ) (24 ) (292 ) Payments (6,947 ) (903 ) (7,850 ) Non-cash adjustments (137 ) — (137 ) Balance at June 30, 2018 $ 19,777 $ 479 $ 20,256 The substantial majority of restructuring costs during the three months ended June 30, 2018 and the three months ended July 1, 2017 have been included as a component of selling, general and administrative expenses in the accompanying consolidated statements of (loss) income. As of June 30, 2018 , we had a restructuring liability of $20.3 million , of which $18.1 million is payable within the next twelve months. In addition to the restructuring costs included in the table above, during the three months ended June 30, 2018 , we also incurred costs of $3.6 million that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, which we refer to as turnaround costs. These costs, substantially all of which have been included as a component of selling, general and administrative expenses in the accompanying consolidated statements of (loss) income, consist primarily of expenditures directly related to our restructuring actions and include program management, costs associated with the implementation of outsourcing initiatives and recent accounting standards. The tables below present restructuring and turnaround costs by reportable segment: Restructuring costs Three Months Ended (In thousands) June 30, 2018 July 1, 2017 Japan $ 11 $ 109 EMEA 124 10 North America Plasma (40 ) — All Other (387 ) 937 Total $ (292 ) $ 1,056 Turnaround costs Three Months Ended (In thousands) June 30, 2018 July 1, 2017 Japan $ — $ — EMEA 28 6 North America Plasma 10 152 All Other 3,603 1,269 Total $ 3,641 $ 1,427 Total restructuring and turnaround costs $ 3,349 $ 2,483 |
INCOME TAXES
INCOME TAXES | 3 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES We conduct business globally and report our results of operations in a number of foreign jurisdictions in addition to the United States. Our reported tax rate is impacted by the jurisdictional mix of earnings in any given period as the foreign jurisdictions in which we operate have tax rates that differ from the U.S. statutory rate. Our reported tax rate of 185% for the three months ended June 30, 2018 is higher than the U.S. statutory tax rate primarily as a result of asset impairment expense of $21.2 million recorded in pretax income for which no tax benefit was recognized as a result of the valuation allowance maintained against our deferred tax assets in the impacted jurisdiction, refer to Note 8, Property, Plant and Equipment for additional details . Our effective tax rate was also negatively impacted by the U.S. tax reform provisions related to Global Intangible Low Taxed Income that became effective in fiscal 2019. During the three months ended June 30, 2018 and July 1, 2017 , we reported an income tax provision of $6.1 million and $3.1 million , respectively. The change in our tax provision for the three months ended June 30, 2018 was primarily the result of an increase in the tax expense of our U.S. entity, which is impacted by the U.S. tax reform provisions discussed in more detail below, as well as changes in the jurisdictional mix of earnings and other foreign items. The income tax provision for the three months ended June 30, 2018 was primarily attributable to applying the Company’s estimated annual effective tax rate to its year-to-date consolidated income before provision for income taxes, and includes a discrete tax benefit of $1.4 million related to stock compensation windfall tax benefits. Our tax provision for the three months ended July 1, 2017 was primarily attributable to applying the Company’s estimated annual effective tax rate to its year-to-date consolidated income before provision for income taxes, and includes a discrete tax provision of $0.4 million for international items and tax reserves. During fiscal 2018, the Tax Cuts and Jobs Act (the "Act") was enacted in the United States. The Act reduced the U.S. federal corporate tax rate from 35% to 21%, required companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and created new taxes on certain foreign sourced earnings. In December 2017, the Securities and Exchange Commission issued Staff Accounting Bulletin No. 118, which directs taxpayers to consider the impact of the U.S. legislation as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. As of June 30, 2018 , we had not completed our accounting for the tax effects of the enactment of the Act, however, we have made a reasonable estimate of the effects on our existing deferred tax balances and the one-time transition tax. During the three months ended June 30, 2018 , we recognized an immaterial adjustment to the provisional tax expense estimate recorded related to the Act. We will continue to refine our calculations as additional analysis is completed. In addition, our estimates may also be affected as we gain a more thorough understanding of the tax law. We have incorporated the other impacts of tax reform that became effective in fiscal 2019 including the provisions related to Global Intangible Low Taxed Income, Foreign Derived Intangible Income, Base Erosion Anti Abuse Tax, as well as other provisions which limit tax deductibility of expenses. We are in a three year cumulative loss position in the U.S. and, accordingly, maintain a valuation allowance against certain U.S. deferred tax assets. Additionally, we also maintain a valuation allowance against certain other deferred tax assets primarily in Switzerland, Puerto Rico, Luxembourg and France which we have concluded are not more-likely-than-not realizable. |
EARNINGS PER SHARE ("EPS")
EARNINGS PER SHARE ("EPS") | 3 Months Ended |
Jun. 30, 2018 | |
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) June 30, July 1, Basic EPS Net (loss) income $ (2,819 ) $ 20,137 Weighted average shares 52,119 52,443 Basic (loss) income per share $ (0.05 ) $ 0.38 Diluted EPS Net (loss) income $ (2,819 ) $ 20,137 Basic weighted average shares 52,119 52,443 Net effect of common stock equivalents — 368 Diluted weighted average shares 52,119 52,811 Diluted (loss) income per share $ (0.05 ) $ 0.38 Basic earnings per share is calculated using our weighted-average outstanding common stock. Diluted earnings per share is calculated using our weighted-average outstanding common stock including the dilutive effect of stock awards as determined under the treasury stock method. For the three months ended June 30, 2018 , 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. For the three months ended July 1, 2017 , weighted average shares outstanding, assuming dilution, excludes the impact of 0.7 million anti-dilutive shares. Share Repurchase Plan On February 6, 2018, we announced that our Board of Directors authorized the repurchase of up to $260 million of our outstanding common stock from time to time, based on market conditions, through March 30, 2019. In May 2018, we completed a $100.0 million repurchase of our common stock pursuant to an accelerated share repurchase agreement ("ASR") entered into with Citibank N.A (“Citibank”) in February 2018. The total number of shares repurchased under the ASR was approximately 1.4 million at an average price per share upon final settlement of $72.51 . In June 2018, we entered into a new ASR with Citibank to repurchase approximately $80.0 million of the Company’s common stock. Pursuant to the terms of the ASR, in June 2018, we paid Citibank $80.0 million in cash and received an initial delivery of approximately 0.7 million shares of our common stock based on a closing market price of the Company's common stock on the New York Stock Exchange on June 5, 2018 of $95.42 . This initial delivery of shares represented approximately 80% of the notional amount of the ASR. On August 1, 2018, the ASR was completed and an additional 0.2 million shares were delivered upon settlement. The total number of shares repurchased under the ASR was approximately 0.9 million at an average price per share upon final settlement of $93.83 . As of August 7, 2018, the total remaining authorization for repurchases of the Company’s common stock under our share repurchase program was $80 million . |
REVENUE
REVENUE | 3 Months Ended |
Jun. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 606, Revenue from Contracts with Customers . Revenue is recognized when obligations under the terms of a contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. We consider revenue to be earned when all of the following criteria are met: we have a contract with a customer that creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the consideration we expect to receive for transferring goods or providing services, is determinable and we have transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each performance obligation based on the estimated standalone selling prices of the good or service in the contract. For goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation. As of June 30, 2018 , the Company had $19.8 million of its transaction price allocated to remaining performance obligations related to executed contracts with an original duration of one year or more. The Company expects to recognize approximately 56% of this amount as revenue within the next twelve months and the remaining balance thereafter. The Company adopted the new standard as of April 1, 2018, using the modified retrospective method. Under this method, entities recognize the cumulative effect of applying the new standard at the date of initial application with no restatement of comparative periods presented. The cumulative effect of applying the new standard resulted in an increase to opening retained earnings of $1.5 million upon adoption of Topic 606 on April 1, 2018, primarily related to deferred revenue associated with software revenue. The new standard has been applied only to those contracts that were not completed as of March 31, 2018. The impact of adopting was not significant to individual financial statement line items in the consolidated balance sheet as of June 30, 2018 or in the consolidated statements of (loss) income and comprehensive (loss) income for the three months ended June 30, 2018 . Product Revenues The majority of the Company’s performance obligations related to product sales are satisfied at a point in time. Product sales consist of the sale of our disposable blood component collection and processing sets and the related equipment. The Company’s performance obligation related to product sales is satisfied upon shipment or delivery to the customer based on the specified terms set forth in the customer contract. Shipping and handling activities performed after a customer obtains control of the good are treated as fulfillment activities and are not considered to be a separate performance obligation. Revenue is recognized over time for maintenance plans provided to customers that provide services beyond the Company’s standard warranty period. Payment terms between customers related to product sales vary by the type of customer, country of sale, and the products or services offered and could result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment to distributors, which is when our performance obligations are complete. Our standard contracts with our distributors state that title to the equipment passes to the distributors at point of shipment to a distributor’s location. The distributors are responsible for shipment to the end customer along with any installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. We also place equipment at customer sites. While we retain ownership of this equipment, the customer has the right to use it for a period of time provided they meet certain agreed to conditions. We recover the cost of providing the equipment from the sale of our disposables. Software and Other Revenues To a lesser extent, the Company enters into other types of contracts including certain software licensing arrangements to provide software solutions to support our plasma, blood collection and hospital customers. A significant portion of our software sales are perpetual licenses typically accompanied by significant implementation services related to software customization as well as other professional and technical services. We generally recognize revenue from the sale of perpetual licenses and related customization services over time (the Company is creating or enhancing an asset that the customer controls) using an input method which requires us to make estimates of the extent of progress toward completion of the contract. When we provide other services, including in some instances hosting, technical support and maintenance, we recognize these fees and charges over time (the customer simultaneously receives and consumes benefits), as performance obligations for these services are satisfied during the contract period. Certain of our software licensing arrangements are term-based licenses that include a per-collection or a usage-based fee related to the use of the license and the related technical support and hosting services. For these usage-based arrangements, we apply the revenue recognition exception resulting in revenue recognition occurring upon the later of actual usage or satisfaction of the related performance obligations. The payment terms for software licensing arrangements vary by customer pursuant to the terms set forth in the customer contract and result in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or partially satisfied). Significant Judgments Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration related to rebates, product returns and volume discounts. These reserves are based on estimates of the amounts earned or to be claimed on the related sales. Management's estimates take into consideration historical experience, current contractual and statutory requirements, specific known market events and trends, industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable consideration included in the net sales price is limited to the amount that is probable not to result in a significant reversal in the amount of the cumulative revenue recognized in a future period. Revenue recognized in the current period related to performance obligations satisfied in prior periods was not material. Contract Balances The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables (contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets and contract liabilities. As of June 30, 2018 and April 1, 2018, the Company had contract assets of $4.0 million and $2.7 million , respectively. The change is primarily due to the delay in billings compared to the revenue recognized. Contract assets are classified as other current assets and other long-term assets on the consolidated balance sheet. As of June 30, 2018 and April 1, 2018, the Company had contract liabilities of $17.3 million and $16.6 million , respectively. During the three months ended June 30, 2018 , we recognized $7.4 million of revenue that was included in the above April 1, 2018 contract liability balance. Contract liabilities are classified as other current liabilities and other long-term liabilities on the consolidated balance sheet. Practical Expedients The Company elected not to disclose the value of transaction price allocated to unsatisfied performance obligations for contracts with an original expected length of one year or less. When applicable, the Company has also elected to use the practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it is expected, at contract inception, that the period between when the Company transfers a promised good or service to a customer, and when the customer pays for that good or service, will be one year or less. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Jun. 30, 2018 | |
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) June 30, March 31, 2018 (1) Raw materials $ 49,437 $ 52,997 Work-in-process 12,474 10,774 Finished goods 113,418 97,028 Total inventories $ 175,329 $ 160,799 (1) We have corrected the classification of inventory in the prior period. This correction did not change total inventories and did not have a financial statement impact. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 3 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT As part of our acquisition of the whole blood business from Pall Corporation (“Pall”) in fiscal 2012, Pall agreed to manufacture and install in one of our facilities a filter media manufacturing line (the “HDC line”) for which we agreed to pay Pall approximately $15.0 million (plus pre-approved overages). Pall also agreed to supply media to us for use in leukoreduction filters until such time as we accepted the HDC line. In May 2018, we entered into a long-term supply agreement with Pall under which Pall will continue to supply media to us for use in leukoreduction filters. As a condition of the supply agreement, we agreed to accept the HDC line and to make a final payment of $9.0 million to Pall for the HDC line. As a result of the decision to continue to source media for our leukoreduction filters from Pall rather than producing them internally, we do not expect to utilize the HDC line for future production and expect that the asset’s future cash flows will not be sufficient to recover its carrying value of $19.8 million . Accordingly, during the first quarter of fiscal 2019 we recorded $19.8 million of impairment charges for the HDC line. We also impaired $1.4 million of property, plant and equipment as a result of our review of non-core and underperforming assets and our decision to discontinue the use of or investment in certain assets. This impairment, as well as the impairment of the HDC line, were included within cost of goods sold on the consolidated statements of (loss) income and impacted the All Other reporting segment. Additionally, we have changed the estimated useful lives of our PCS2 devices as these will be replaced by the NexSys PCS TM which we began placing during the second quarter of fiscal 2019. During the three months ended June 30, 2018 , we incurred $3.9 million of depreciation expense related to this change in estimate. |
CAPITALIZATION OF SOFTWARE DEVE
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | 3 Months Ended |
Jun. 30, 2018 | |
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 $0.7 million and $3.1 million in software development costs for ongoing initiatives during the three months ended June 30, 2018 and July 1, 2017 , respectively. At June 30, 2018 and March 31, 2018 , we had a total of $72.5 million and $71.8 million of capitalized software costs, respectively, of which $7.8 million and $17.7 million are related to in-process software development initiatives. During the three months ended June 30, 2018 , there were $10.6 million capitalized costs placed into service. We did not place any capitalized costs into service during the three months ended July 1, 2017 . The costs capitalized for each project are included in intangible assets in the consolidated financial statements. |
PRODUCT WARRANTIES
PRODUCT WARRANTIES | 3 Months Ended |
Jun. 30, 2018 | |
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. Three Months Ended (In thousands) June 30, July 1, Warranty accrual as of the beginning of the period $ 316 $ 176 Warranty provision 157 442 Warranty spending (198 ) (241 ) Warranty accrual as of the end of the period $ 275 $ 377 |
DEBT
DEBT | 3 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT On June 15, 2018, we entered into a credit agreement with certain lenders which provided for a $350.0 million term loan ("Term Loan") and a $350.0 million revolving loan ("Revolving Credit Facility" and together with the Term Loan, the "Credit Facilities"). The Credit Facilities expire on June 15, 2023. Interest on the Credit Facilities is established using LIBOR plus 1.13% - 1.75% , depending on our leverage ratio. Under the Credit Facilities, we are required to maintain certain leverage and interest coverage ratios specified in the credit agreement as well as other customary non-financial affirmative and negative covenants. A portion of the net proceeds of $347.8 million was used to pay down the $253.7 million remaining outstanding balance on our 2012 credit agreement, as amended in fiscal 2014. The remainder of the proceeds are available to be used to support the launch of our NexSys PCS device and for general corporate purposes. At June 30, 2018, $350.0 million was outstanding under the Term Loan with an effective interest rate of 3.625% and no amount was outstanding on the Revolving Credit Facility. We also have $44.1 million of uncommitted operating lines of credit to fund our global operations under which there are no outstanding borrowings as of June 30, 2018 . We have required scheduled principal payments of $13.1 million during fiscal 2019, $17.5 million during fiscal 2020, $17.5 million during fiscal 2021, $17.5 million during fiscal 2022, and $214.4 million during fiscal 2023. 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 June 30, 2018 . |
DERIVATIVES AND FAIR VALUE MEAS
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 3 Months Ended |
Jun. 30, 2018 | |
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. During the three months ended June 30, 2018 , 38.0% of our sales were generated outside the U.S., generally in foreign 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, Canadian Dollar and the Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates. However, 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 June 30, 2018 and March 31, 2018 were cash flow hedges under ASC 815, Derivatives and Hedging ("ASC 815"). We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs. Once the related third-party transaction occurs, we reclassify the effective portion of any related gain or loss on the designated foreign currency hedge contracts to earnings. In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, we would reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time. We had designated foreign currency hedge contracts outstanding in the contract amount of $79.0 million as of June 30, 2018 and $86.0 million as of March 31, 2018 . At June 30, 2018 , gains of $1.2 million , net of tax, will be reclassified to earnings within the next twelve months . Substantially all currency cash flow hedges outstanding as of June 30, 2018 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 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 815 outstanding in the contract amount of $39.3 million as of June 30, 2018 and $36.3 million as of March 31, 2018 . 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 815 in our consolidated statements of (loss) income and comprehensive (loss) income for the three months ended June 30, 2018 : (In thousands) Amount of (Loss) Gain Amount of (Loss) Gain Reclassified Location in Income and Comprehensive (Loss) Income Amount of Gain (Loss) Excluded from Testing Location in Designated foreign currency hedge contracts, net of tax $ 1,165 $ (858 ) Net revenues, COGS and SG&A $ 424 Other expense, net Non-designated foreign currency hedge contracts — — $ 921 Other expense, net Designated interest rate swaps, net of tax $ — $ — $ — We did not have fair value hedges or net investment hedges outstanding as of June 30, 2018 or March 31, 2018 . As of June 30, 2018 , no deferred tax assets were recognized for designated foreign currency hedges. ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC 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 June 30, 2018 , 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 June 30, 2018 and March 31, 2018 : (In thousands) Location in As of As of June 30, 2018 March 31, 2018 Derivative Assets: Designated foreign currency hedge contracts Other current assets $ 1,620 $ 780 Non-designated foreign currency hedge contracts Other current assets 18 324 $ 1,638 $ 1,104 Derivative Liabilities: Designated foreign currency hedge contracts Other current liabilities $ 579 $ 1,445 Non-designated foreign currency hedge contracts Other current liabilities 159 138 $ 738 $ 1,583 Other Fair Value Measurements Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes the following three-level hierarchy used for measuring fair value: • 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 June 30, 2018 and March 31, 2018 . As of June 30, 2018 (In thousands) Level 1 Level 2 Total Assets Money market funds $ 76,408 $ — $ 76,408 Designated foreign currency hedge contracts — 1,620 1,620 Non-designated foreign currency hedge contracts — 18 18 $ 76,408 $ 1,638 $ 78,046 Liabilities Designated foreign currency hedge contracts $ — $ 579 $ 579 Non-designated foreign currency hedge contracts — 159 159 $ — $ 738 $ 738 As of March 31, 2018 Level 1 Level 2 Total Assets Money market funds $ 75,450 $ — $ 75,450 Designated foreign currency hedge contracts — 780 780 Non-designated foreign currency hedge contracts — 324 324 Designated interest rate swaps — — — $ 75,450 $ 1,104 $ 76,554 Liabilities Designated foreign currency hedge contracts $ — $ 1,445 $ 1,445 Non-designated foreign currency hedge contracts — 138 138 $ — $ 1,583 $ 1,583 Other Fair Value Disclosures The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Jun. 30, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company is a party to various other legal proceedings and claims arising out of the ordinary course of its business. We believe that except for those matters described below, there are no other proceedings or claims pending against us the ultimate resolution of which could have a material adverse effect on our financial condition or results of operations. At each reporting period, management evaluates whether or not a potential loss amount or a potential range of loss is probable and reasonably estimable under ASC 450, Contingencies, for all matters. Legal costs are expensed as incurred. Litigation and Related Matters Product Recall In March 2018, we issued a voluntary recall of specific lots of our Acrodose Plus and PL Systems sold to our Blood Center customers in the U.S. The recall resulted from reports of low pH readings for platelets stored in the CLX HP bag and, in some instances, an accompanying yellow discoloration of the storage bag. For a period of nine weeks, we were unable to provide our customers with our Acrodose Plus and PL Systems. As a result of the recall, our Blood Center customers may have discarded collected platelets and incurred other damages. As of June 30, 2018, we have recorded cumulative charges of $1.7 million associated with this recall. We have recorded a total of $1.0 million of charges associated with customer returns and inventory reserves. We also recorded $0.7 million of charges associated with customer claims during the first quarter of fiscal 2019. We may record incremental charges for customer claims in future periods associated with this recall. |
SEGMENT AND ENTERPRISE-WIDE INF
SEGMENT AND ENTERPRISE-WIDE INFORMATION | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT AND ENTERPRISE-WIDE INFORMATION | SEGMENT AND ENTERPRISE-WIDE INFORMATION We determine our reportable segments by first identifying our operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment management regularly reviews the operating results of that component. Our operating segments are based primarily on geography. North America Plasma is a separate operating segment with dedicated segment management due the size and scale of the Plasma business unit. We aggregate components within an operating segment that have similar economic characteristics. The Company’s reportable segments are as follows: • Japan • EMEA • North America Plasma • All Other The Company has aggregated the Americas Blood Center and Hospital and Asia - Pacific operating segments into the All Other reportable segment based upon their similar operational and economic characteristics, including similarity of operating margin. Management measures and evaluates the operating segments based on operating income. Management excludes certain corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-recurring or non-operational are excluded from segment operating income because management evaluates the operating results of the segments excluding such items. These items include restructuring and turnaround costs, deal amortization, asset impairments, accelerated depreciation and certain legal charges. Although these amounts are excluded from segment operating income, as applicable, they are included in the reconciliations that follow. Management measures and evaluates the Company's net revenues and operating income using internally derived standard currency exchange rates that remain constant from year to year; therefore, segment information is presented on this basis. During the first quarter of fiscal 2019, management reorganized its operating segments such that certain immaterial components of EMEA are now reported as components of All Other. Accordingly, the prior year numbers have been updated to reflect this reclassification as well as other changes within the cost reporting structure that occurred in the first quarter of fiscal 2019. These changes did not have an impact on our ability to aggregate Americas Blood Center and Hospital with Asia - Pacific. Selected information by business segment is presented below: Three Months Ended (In thousands) June 30, July 1, Net revenues Japan $ 16,604 $ 15,232 EMEA 41,288 40,439 North America Plasma 91,574 77,536 All Other 79,812 80,743 Net revenues before foreign exchange impact 229,278 213,950 Effect of exchange rates 69 (2,999 ) Net revenues $ 229,347 $ 210,951 Three Months Ended (In thousands) June 30, July 1, Segment operating income Japan $ 8,267 $ 7,467 EMEA 12,040 10,498 North America Plasma 38,596 27,200 All Other 33,041 30,671 Segment operating income 91,944 75,836 Corporate operating expenses (54,273 ) (48,050 ) Effect of exchange rates 3,055 (2,201 ) Restructuring and turnaround costs (3,349 ) (2,483 ) Deal amortization (6,300 ) (6,491 ) Asset impairments (21,170 ) — Accelerated depreciation (3,939 ) — Legal charges (675 ) — Operating income $ 5,293 $ 16,611 Our products are organized into three categories for purposes of evaluating their growth potential: Plasma, Blood Center and Hospital. Management reviews revenue trends based on these business units; however, no other financial information is currently available on this basis. Net revenues by business unit are as follows: Three Months Ended (In thousands) June 30, July 1, Plasma $ 116,903 $ 101,507 Blood Center 64,483 65,565 Hospital 47,961 43,879 Net revenues $ 229,347 $ 210,951 Net revenues generated in our principle operating regions on a reported basis are as follows: Three Months Ended (In thousands) June 30, July 1, United States $ 142,140 $ 131,052 Japan 17,389 14,916 Europe 39,002 37,222 Asia 29,395 25,940 Other 1,421 1,821 Net revenues $ 229,347 $ 210,951 |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of Accumulated Other Comprehensive Loss are as follows: (In thousands) Foreign Currency Defined Benefit Plans Net Unrealized Gain/Loss on Derivatives Total Balance as of March 31, 2018 $ (16,405 ) $ (323 ) $ (2,263 ) $ (18,991 ) Other comprehensive income (loss) before reclassifications (1) (6,742 ) — 1,165 (5,577 ) Amounts reclassified from Accumulated Other Comprehensive Loss (1) — — 858 858 Net current period other comprehensive income (loss) (6,742 ) — 2,023 (4,719 ) Balance as of June 30, 2018 $ (23,147 ) $ (323 ) $ (240 ) $ (23,710 ) (1) Presented net of income taxes, the amounts of which are insignificant. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Reserve by Type of Cost | The following table summarizes the activity for restructuring reserves related to the 2018 Program and the 2017 Program for the three months ended June 30, 2018 , substantially all of which relates to employee severance and other employee costs: (In thousands) 2018 Program 2017 Program Total Balance at March 31, 2018 $ 27,129 $ 1,406 $ 28,535 Costs incurred, net of reversals (268 ) (24 ) (292 ) Payments (6,947 ) (903 ) (7,850 ) Non-cash adjustments (137 ) — (137 ) Balance at June 30, 2018 $ 19,777 $ 479 $ 20,256 |
Schedule of Restructuring and Related Costs | The tables below present restructuring and turnaround costs by reportable segment: Restructuring costs Three Months Ended (In thousands) June 30, 2018 July 1, 2017 Japan $ 11 $ 109 EMEA 124 10 North America Plasma (40 ) — All Other (387 ) 937 Total $ (292 ) $ 1,056 Turnaround costs Three Months Ended (In thousands) June 30, 2018 July 1, 2017 Japan $ — $ — EMEA 28 6 North America Plasma 10 152 All Other 3,603 1,269 Total $ 3,641 $ 1,427 Total restructuring and turnaround costs $ 3,349 $ 2,483 |
EARNINGS PER SHARE ("EPS") (Tab
EARNINGS PER SHARE ("EPS") (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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) June 30, July 1, Basic EPS Net (loss) income $ (2,819 ) $ 20,137 Weighted average shares 52,119 52,443 Basic (loss) income per share $ (0.05 ) $ 0.38 Diluted EPS Net (loss) income $ (2,819 ) $ 20,137 Basic weighted average shares 52,119 52,443 Net effect of common stock equivalents — 368 Diluted weighted average shares 52,119 52,811 Diluted (loss) income per share $ (0.05 ) $ 0.38 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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) June 30, March 31, 2018 (1) Raw materials $ 49,437 $ 52,997 Work-in-process 12,474 10,774 Finished goods 113,418 97,028 Total inventories $ 175,329 $ 160,799 |
PRODUCT WARRANTIES (Tables)
PRODUCT WARRANTIES (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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. Three Months Ended (In thousands) June 30, July 1, Warranty accrual as of the beginning of the period $ 316 $ 176 Warranty provision 157 442 Warranty spending (198 ) (241 ) Warranty accrual as of the end of the period $ 275 $ 377 |
DERIVATIVES AND FAIR VALUE ME25
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
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 815 in our consolidated statements of (loss) income and comprehensive (loss) income for the three months ended June 30, 2018 : (In thousands) Amount of (Loss) Gain Amount of (Loss) Gain Reclassified Location in Income and Comprehensive (Loss) Income Amount of Gain (Loss) Excluded from Testing Location in Designated foreign currency hedge contracts, net of tax $ 1,165 $ (858 ) Net revenues, COGS and SG&A $ 424 Other expense, net Non-designated foreign currency hedge contracts — — $ 921 Other expense, net Designated interest rate swaps, net of tax $ — $ — $ — |
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 June 30, 2018 and March 31, 2018 : (In thousands) Location in As of As of June 30, 2018 March 31, 2018 Derivative Assets: Designated foreign currency hedge contracts Other current assets $ 1,620 $ 780 Non-designated foreign currency hedge contracts Other current assets 18 324 $ 1,638 $ 1,104 Derivative Liabilities: Designated foreign currency hedge contracts Other current liabilities $ 579 $ 1,445 Non-designated foreign currency hedge contracts Other current liabilities 159 138 $ 738 $ 1,583 |
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 June 30, 2018 and March 31, 2018 . As of June 30, 2018 (In thousands) Level 1 Level 2 Total Assets Money market funds $ 76,408 $ — $ 76,408 Designated foreign currency hedge contracts — 1,620 1,620 Non-designated foreign currency hedge contracts — 18 18 $ 76,408 $ 1,638 $ 78,046 Liabilities Designated foreign currency hedge contracts $ — $ 579 $ 579 Non-designated foreign currency hedge contracts — 159 159 $ — $ 738 $ 738 As of March 31, 2018 Level 1 Level 2 Total Assets Money market funds $ 75,450 $ — $ 75,450 Designated foreign currency hedge contracts — 780 780 Non-designated foreign currency hedge contracts — 324 324 Designated interest rate swaps — — — $ 75,450 $ 1,104 $ 76,554 Liabilities Designated foreign currency hedge contracts $ — $ 1,445 $ 1,445 Non-designated foreign currency hedge contracts — 138 138 $ — $ 1,583 $ 1,583 |
SEGMENT AND ENTERPRISE-WIDE I26
SEGMENT AND ENTERPRISE-WIDE INFORMATION (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Selected Information by Business Segment | Selected information by business segment is presented below: Three Months Ended (In thousands) June 30, July 1, Net revenues Japan $ 16,604 $ 15,232 EMEA 41,288 40,439 North America Plasma 91,574 77,536 All Other 79,812 80,743 Net revenues before foreign exchange impact 229,278 213,950 Effect of exchange rates 69 (2,999 ) Net revenues $ 229,347 $ 210,951 Three Months Ended (In thousands) June 30, July 1, Segment operating income Japan $ 8,267 $ 7,467 EMEA 12,040 10,498 North America Plasma 38,596 27,200 All Other 33,041 30,671 Segment operating income 91,944 75,836 Corporate operating expenses (54,273 ) (48,050 ) Effect of exchange rates 3,055 (2,201 ) Restructuring and turnaround costs (3,349 ) (2,483 ) Deal amortization (6,300 ) (6,491 ) Asset impairments (21,170 ) — Accelerated depreciation (3,939 ) — Legal charges (675 ) — Operating income $ 5,293 $ 16,611 |
Schedule of Revenues by Product Line and Geographic Regions | Net revenues by business unit are as follows: Three Months Ended (In thousands) June 30, July 1, Plasma $ 116,903 $ 101,507 Blood Center 64,483 65,565 Hospital 47,961 43,879 Net revenues $ 229,347 $ 210,951 Net revenues generated in our principle operating regions on a reported basis are as follows: Three Months Ended (In thousands) June 30, July 1, United States $ 142,140 $ 131,052 Japan 17,389 14,916 Europe 39,002 37,222 Asia 29,395 25,940 Other 1,421 1,821 Net revenues $ 229,347 $ 210,951 |
ACCUMULATED OTHER COMPREHENSI27
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Loss are as follows: (In thousands) Foreign Currency Defined Benefit Plans Net Unrealized Gain/Loss on Derivatives Total Balance as of March 31, 2018 $ (16,405 ) $ (323 ) $ (2,263 ) $ (18,991 ) Other comprehensive income (loss) before reclassifications (1) (6,742 ) — 1,165 (5,577 ) Amounts reclassified from Accumulated Other Comprehensive Loss (1) — — 858 858 Net current period other comprehensive income (loss) (6,742 ) — 2,023 (4,719 ) Balance as of June 30, 2018 $ (23,147 ) $ (323 ) $ (240 ) $ (23,710 ) (1) Presented net of income taxes, the amounts of which are insignificant. |
RECENT ACCOUNTING PRONOUNCEME28
RECENT ACCOUNTING PRONOUNCEMENTS (Narrative) (Details) - ASU 2014-09 - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Apr. 01, 2018 | |
Revenue | Software Contracts | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Concentration percentage | 8.10% | 7.50% | |
Difference between Revenue Guidance in Effect before and after Topic 606 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Increase to retained earnings | $ 1.5 |
RESTRUCTURING (Narrative) (Deta
RESTRUCTURING (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Jun. 30, 2018 | Mar. 31, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and turnaround costs | $ 3,349 | $ 2,483 | ||
Restructuring liability | 20,256 | $ 20,256 | $ 28,535 | |
Restructuring liability payable in next twelve months | 18,100 | 18,100 | ||
Restructuring costs | (292) | 1,056 | ||
Turnaround costs | 3,641 | 1,427 | ||
2018 Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and turnaround costs | 3,400 | 40,000 | ||
Restructuring liability | 19,777 | 19,777 | 27,129 | |
Restructuring costs | (268) | |||
2018 Program | Minimum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 50,000 | |||
2018 Program | Minimum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 35,000 | |||
2018 Program | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 60,000 | |||
2018 Program | Maximum | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expected cost | 40,000 | |||
2017 Program | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and turnaround costs | $ 2,500 | |||
Restructuring liability | 479 | $ 479 | $ 1,406 | |
Restructuring costs | $ (24) |
RESTRUCTURING (Schedule of Rest
RESTRUCTURING (Schedule of Restructuring Reserve by Type of Cost) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | $ 28,535 | |
Costs incurred, net of reversals | (292) | $ 1,056 |
Payments | (7,850) | |
Non-cash adjustments | (137) | |
Balance at June 30, 2018 | 20,256 | |
2018 Program | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | 27,129 | |
Costs incurred, net of reversals | (268) | |
Payments | (6,947) | |
Non-cash adjustments | (137) | |
Balance at June 30, 2018 | 19,777 | |
2017 Program | ||
Restructuring Reserve [Roll Forward] | ||
Balance at March 31, 2018 | 1,406 | |
Costs incurred, net of reversals | (24) | |
Payments | (903) | |
Non-cash adjustments | 0 | |
Balance at June 30, 2018 | $ 479 |
RESTRUCTURING (Schedule of Re31
RESTRUCTURING (Schedule of Restructuring and Related Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | $ (292) | $ 1,056 |
Turnaround costs | 3,641 | 1,427 |
Total restructuring and turnaround costs | 3,349 | 2,483 |
Japan | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 11 | 109 |
Turnaround costs | 0 | 0 |
EMEA | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | 124 | 10 |
Turnaround costs | 28 | 6 |
North America Plasma | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (40) | 0 |
Turnaround costs | 10 | 152 |
All Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring costs | (387) | 937 |
Turnaround costs | $ 3,603 | $ 1,269 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Income Tax Disclosure [Abstract] | ||
Reported tax rate | 185.00% | |
Impairment of assets | $ 21,170 | $ 0 |
Provision (benefit) for income taxes | 6,134 | 3,115 |
Discrete tax provision (benefit) | $ (1,400) | $ 400 |
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 | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Basic EPS | ||
Net (loss) income | $ (2,819) | $ 20,137 |
Basic weighted average shares (in shares) | 52,119 | 52,443 |
Basic (loss) income per share (in dollars per share) | $ (0.05) | $ 0.38 |
Diluted EPS | ||
Net (loss) income | $ (2,819) | $ 20,137 |
Basic weighted average shares (in shares) | 52,119 | 52,443 |
Net effect of common stock equivalents (in shares) | 0 | 368 |
Diluted weighted average shares (in shares) | 52,119 | 52,811 |
Diluted (loss) income per share (in dollars per share) | $ (0.05) | $ 0.38 |
Anti-dilutive shares excluded (in shares) | 700 |
EARNINGS PER SHARE ("EPS") (Sha
EARNINGS PER SHARE ("EPS") (Share Repurchase Plan) (Details) - USD ($) $ / shares in Units, $ in Millions | Aug. 01, 2018 | Jun. 30, 2018 | May 31, 2018 | Aug. 01, 2018 | Aug. 07, 2018 | Feb. 06, 2018 |
ASR with Citibank | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Shares repurchased | $ 80 | $ 100 | ||||
Payment to bank | $ 80 | |||||
Shares repurchased (in shares) | 700,000 | 1,400,000 | ||||
Repurchase price (in dollars per share) | $ 95.42 | $ 72.51 | ||||
Percent of notional amount of ASR | 80.00% | |||||
ASR with Citibank | Subsequent Event | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Shares repurchased (in shares) | 200,000 | 900,000 | ||||
Repurchase price (in dollars per share) | $ 93.83 | |||||
Share Repurchase Plan | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Share repurchase plan, authorized amount | 260,000,000 | |||||
Share Repurchase Plan | Subsequent Event | ||||||
Accelerated Share Repurchases [Line Items] | ||||||
Remaining authorized amount | $ 80 |
REVENUE (Details)
REVENUE (Details) - USD ($) $ in Millions | 3 Months Ended | |
Jun. 30, 2018 | Apr. 01, 2018 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Performance obligation amount | $ 19.8 | |
Performance obligation percent | 56.00% | |
Expected timing of satisfaction | 12 months | |
Contract assets | $ 4 | $ 2.7 |
Contract liabilities | 17.3 | 16.6 |
Revenue recognized | $ 7.4 | |
Optional exemption term | 1 year | |
ASU 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Increase to retained earnings | $ 1.5 |
INVENTORIES (Schedule of Invent
INVENTORIES (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 49,437 | $ 52,997 |
Work-in-process | 12,474 | 10,774 |
Finished goods | 113,418 | 97,028 |
Inventories, net | $ 175,329 | $ 160,799 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions | 1 Months Ended | 3 Months Ended | 12 Months Ended |
May 31, 2018 | Jun. 30, 2018 | Mar. 31, 2012 | |
HDC Line | |||
Property, Plant and Equipment [Line Items] | |||
Payments to acquire productive assets | $ 9 | $ 15 | |
Carrying value | $ 19.8 | ||
Impairment charges | 19.8 | ||
Non-core and Underperforming Assets | |||
Property, Plant and Equipment [Line Items] | |||
Impairment charges | 1.4 | ||
PCS2 Devices | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 3.9 |
CAPITALIZATION OF SOFTWARE DE38
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Jun. 30, 2018 | Jul. 01, 2017 | Mar. 31, 2018 | |
Research and Development [Abstract] | |||
Capitalized software development costs for ongoing initiatives | $ 0.7 | $ 3.1 | |
Software costs capitalized, net | 72.5 | $ 71.8 | |
Total costs capitalized related to in process software development initiatives | 7.8 | $ 17.7 | |
Capitalized software development costs placed into service | $ 10.6 |
PRODUCT WARRANTIES (Schedule of
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018 | Jul. 01, 2017 | |
Product Warranties Disclosures [Abstract] | ||
General Warranty Period on Parts and Labor | 1 year | |
Product Warranties [Roll Forward] | ||
Warranty accrual as of the beginning of the period | $ 316 | $ 176 |
Warranty provision | 157 | 442 |
Warranty spending | (198) | (241) |
Warranty accrual as of the end of the period | $ 275 | $ 377 |
DEBT (Details)
DEBT (Details) - USD ($) | Jun. 15, 2018 | Jun. 30, 2018 |
Credit Facilities | ||
Debt Instrument [Line Items] | ||
Extinguishment of debt | $ 253,700,000 | |
Credit Facilities | ||
Debt Instrument [Line Items] | ||
Proceeds from debt | 347,800,000 | |
Principal repayments, fiscal 2019 | $ 13,100,000 | |
Principal repayments, fiscal 2020 | 17,500,000 | |
Principal repayments, fiscal 2021 | 17,500,000 | |
Principal repayments, fiscal 2022 | 17,500,000 | |
Principal repayments, fiscal 2023 | 214,400,000 | |
Term Loan | ||
Debt Instrument [Line Items] | ||
Face amount of debt | 350,000,000 | |
Debt outstanding | $ 350,000,000 | |
Effective interest rate | 3.625% | |
Revolving Credit Facility | ||
Debt Instrument [Line Items] | ||
Maximum borrowing capacity | $ 350,000,000 | |
Debt outstanding | $ 0 | |
Revolving Credit Facility | LIBOR | Minimum | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.13% | |
Revolving Credit Facility | LIBOR | Maximum | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.75% | |
Uncommitted Operating Lines of Credit | ||
Debt Instrument [Line Items] | ||
Face amount of debt | 44,100,000 | |
Debt outstanding | $ 0 |
DERIVATIVES AND FAIR VALUE ME41
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments) (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Designated as Hedging Instrument | Cash Flow Hedging | Net revenues, COGS, and SG&A | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount of Gain (Loss) Recognized in AOCI (Effective Portion) | $ 1,165 |
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | (858) |
Designated as Hedging Instrument | Cash Flow Hedging | Interest and other expense, net | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Amount Excluded from Effectiveness Testing | 424 |
Designated as Hedging Instrument | Interest Rate Swap [Member] | |
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 |
Amount Excluded from Effectiveness Testing | 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 | $ 921 |
DERIVATIVES AND FAIR VALUE ME42
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Designated as Hedging Instrument | ||
Derivative Assets: | ||
Derivative Assets | $ 1,638 | $ 1,104 |
Derivative Liabilities: | ||
Derivative Liabilities | $ 738 | 1,583 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 780 | |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 1,445 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 324 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | $ 138 |
DERIVATIVES AND FAIR VALUE ME43
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 |
Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Money market funds | $ 76,408 | $ 75,450 |
Designated interest rate swaps | 0 | |
Assets fair value | 78,046 | 76,554 |
Liabilities | ||
Liabilities fair value | 738 | 1,583 |
Fair Value, Measurements, Recurring [Member] | Quoted Market Prices for Identical Assets (Level 1) | ||
Assets | ||
Money market funds | 76,408 | 75,450 |
Designated interest rate swaps | 0 | |
Assets fair value | 76,408 | 75,450 |
Liabilities | ||
Liabilities fair value | 0 | 0 |
Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Money market funds | 0 | 0 |
Designated interest rate swaps | 0 | |
Assets fair value | 1,638 | 1,104 |
Liabilities | ||
Liabilities fair value | 738 | 1,583 |
Designated as Hedging Instrument | ||
Assets | ||
Derivative Assets | 1,638 | 1,104 |
Liabilities | ||
Derivative Liabilities | 738 | 1,583 |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative Assets | 1,620 | 780 |
Liabilities | ||
Derivative Liabilities | 579 | 1,445 |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Quoted Market Prices for Identical Assets (Level 1) | ||
Assets | ||
Derivative Assets | 0 | 0 |
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Assets | 780 | |
Liabilities | ||
Derivative Liabilities | 1,445 | |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | ||
Assets | ||
Derivative Assets | 18 | 324 |
Liabilities | ||
Derivative Liabilities | 159 | 138 |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Quoted Market Prices for Identical Assets (Level 1) | ||
Assets | ||
Derivative Assets | 0 | 0 |
Liabilities | ||
Derivative Liabilities | 0 | 0 |
Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Assets | 324 | |
Liabilities | ||
Derivative Liabilities | 138 | |
Foreign Exchange Contract | Other Current Assets | Designated as Hedging Instrument | ||
Assets | ||
Derivative Assets | 780 | |
Foreign Exchange Contract | Other Current Assets | Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Assets | 1,620 | |
Foreign Exchange Contract | Other Current Assets | Not Designated as Hedging Instrument | ||
Assets | ||
Derivative Assets | 324 | |
Foreign Exchange Contract | Other Current Assets | Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Derivative Assets | 18 | |
Foreign Exchange Contract | Other Current Liabilities | Designated as Hedging Instrument | ||
Liabilities | ||
Derivative Liabilities | 1,445 | |
Foreign Exchange Contract | Other Current Liabilities | Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Liabilities | ||
Derivative Liabilities | 579 | |
Foreign Exchange Contract | Other Current Liabilities | Not Designated as Hedging Instrument | ||
Liabilities | ||
Derivative Liabilities | $ 138 | |
Foreign Exchange Contract | Other Current Liabilities | Not Designated as Hedging Instrument | Fair Value, Measurements, Recurring [Member] | Significant Other Observable Inputs (Level 2) | ||
Liabilities | ||
Derivative Liabilities | $ 159 |
DERIVATIVES AND FAIR VALUE ME44
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) - USD ($) | 3 Months Ended | |
Jun. 30, 2018 | Mar. 31, 2018 | |
Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Percentage of sales generated outside the US | 38.00% | |
Maturity period for foreign currency contracts | 1 year | |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Deferred income tax expense (benefit) | $ 0 | |
Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Designated foreign currency hedge contracts outstanding | 79,000,000 | $ 86,000,000 |
Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Gain (loss) to be reclassified within the next twelve months | 1,200,000 | |
Designated as Hedging Instrument | Interest Rate Swap [Member] | ||
Derivative [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||
Derivative [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | 0 | |
Non-designated foreign currency hedge contracts outstanding | 39,300,000 | $ 36,300,000 |
Net revenues, COGS, and SG&A | Designated as Hedging Instrument | Cash Flow Hedging | ||
Derivative [Line Items] | ||
Amount of Gain/(Loss) Reclassified from AOCI into Earnings (Effective Portion) | $ (858,000) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - Product Recall $ in Millions | 3 Months Ended |
Jun. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | |
Loss in period | $ 1.7 |
Customer Returns and Inventory Reserves | |
Loss Contingencies [Line Items] | |
Loss in period | 1 |
Customer Claims | |
Loss Contingencies [Line Items] | |
Loss in period | $ 0.7 |
SEGMENT AND ENTERPRISE-WIDE I46
SEGMENT AND ENTERPRISE-WIDE INFORMATION (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018USD ($)unit | Jul. 01, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of business units | unit | 3 | |
Segment Reporting Information [Line Items] | ||
Net revenues before foreign exchange impact | $ 229,278 | $ 213,950 |
Effect of exchange rates | 69 | (2,999) |
Net revenues | 229,347 | 210,951 |
Effect of exchange rates | 3,055 | (2,201) |
Restructuring and turnaround costs | (3,349) | (2,483) |
Deal amortization | (6,300) | (6,491) |
Asset impairments | (21,170) | 0 |
Accelerated depreciation | (3,939) | 0 |
Legal charges | (675) | 0 |
Operating income | 5,293 | 16,611 |
Plasma | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 116,903 | 101,507 |
Blood Center | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 64,483 | 65,565 |
Hospital | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 47,961 | 43,879 |
United States | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 142,140 | 131,052 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 17,389 | 14,916 |
Europe | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 39,002 | 37,222 |
Asia | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 29,395 | 25,940 |
Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues | 1,421 | 1,821 |
Japan | ||
Segment Reporting Information [Line Items] | ||
Net revenues before foreign exchange impact | 16,604 | 15,232 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Net revenues before foreign exchange impact | 41,288 | 40,439 |
North America Plasma | ||
Segment Reporting Information [Line Items] | ||
Net revenues before foreign exchange impact | 91,574 | 77,536 |
All Other | ||
Segment Reporting Information [Line Items] | ||
Net revenues before foreign exchange impact | 79,812 | 80,743 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Operating income | 91,944 | 75,836 |
Operating Segments | Japan | ||
Segment Reporting Information [Line Items] | ||
Operating income | 8,267 | 7,467 |
Operating Segments | EMEA | ||
Segment Reporting Information [Line Items] | ||
Operating income | 12,040 | 10,498 |
Operating Segments | North America Plasma | ||
Segment Reporting Information [Line Items] | ||
Operating income | 38,596 | 27,200 |
Operating Segments | All Other | ||
Segment Reporting Information [Line Items] | ||
Operating income | 33,041 | 30,671 |
Corporate operating expenses | ||
Segment Reporting Information [Line Items] | ||
Corporate operating expenses | $ (54,273) | $ (48,050) |
ACCUMULATED OTHER COMPREHENSI47
ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) $ in Thousands | 3 Months Ended |
Jun. 30, 2018USD ($) | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of March 31, 2018 | $ (18,991) |
Other comprehensive income (loss) before reclassifications | (5,577) |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 858 |
Net current period other comprehensive income (loss) | (4,719) |
Balance as of June 30, 2018 | (23,710) |
Foreign Currency | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of March 31, 2018 | (16,405) |
Other comprehensive income (loss) before reclassifications | (6,742) |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 0 |
Net current period other comprehensive income (loss) | (6,742) |
Balance as of June 30, 2018 | (23,147) |
Defined Benefit Plans | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of March 31, 2018 | (323) |
Other comprehensive income (loss) before reclassifications | 0 |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 0 |
Net current period other comprehensive income (loss) | 0 |
Balance as of June 30, 2018 | (323) |
Net Unrealized Gain/Loss on Derivatives | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |
Balance as of March 31, 2018 | (2,263) |
Other comprehensive income (loss) before reclassifications | 1,165 |
Amounts reclassified from Accumulated Other Comprehensive Income (Loss) | 858 |
Net current period other comprehensive income (loss) | 2,023 |
Balance as of June 30, 2018 | $ (240) |