DOCUMENT_AND_ENTITY_INFORMATIO
DOCUMENT AND ENTITY INFORMATION (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Apr. 25, 2015 | Sep. 27, 2014 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | HAEMONETICS CORP | ||
Entity Central Index Key | 313143 | ||
Current Fiscal Year End Date | -25 | ||
Entity Filer Category | Large Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | 28-Mar-15 | ||
Document Fiscal Year Focus | 2015 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | FALSE | ||
Entity Common Stock, Shares Outstanding | 51,682,698 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $1,777,275,792 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Income Statement [Abstract] | |||
Net revenues | $910,373 | $938,509 | $891,990 |
Cost of goods sold | 475,955 | 470,144 | 463,859 |
Gross profit | 434,418 | 468,365 | 428,131 |
Operating expenses: | |||
Research and development | 54,187 | 54,200 | 44,394 |
Selling, general and administrative | 334,250 | 366,022 | 323,053 |
Asset write-down | 5,441 | 1,711 | 4,247 |
Total operating expenses | 393,878 | 421,933 | 371,694 |
Operating income | 40,540 | 46,432 | 56,437 |
Other (expense) income, net | -9,375 | -10,031 | -6,540 |
Income before provision for income taxes | 31,165 | 36,401 | 49,897 |
Provision for income taxes | 14,268 | 1,253 | 11,097 |
Net income | $16,897 | $35,148 | $38,800 |
Net income per share - basic (in dollars per share) | $0.33 | $0.68 | $0.76 |
Net income per share - diluted (in dollars per share) | $0.32 | $0.67 | $0.74 |
Weighted average shares outstanding | |||
Basic (in shares) | 51,533 | 51,611 | 51,349 |
Diluted (in shares) | 52,089 | 52,377 | 52,259 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $16,897 | $35,148 | $38,800 |
Other comprehensive loss: | |||
Impact of defined benefit plans, net of tax | -4,331 | 481 | -820 |
Foreign currency translation adjustment | -23,710 | -935 | -4,705 |
Unrealized gain on cash flow hedges, net of tax | 11,371 | 5,001 | 4,594 |
Reclassifications into earnings of cash flow hedge gains, net of tax | -6,464 | -8,570 | -2,746 |
Other comprehensive loss | -23,134 | -4,023 | -3,677 |
Comprehensive (loss) income | ($6,237) | $31,125 | $35,123 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $160,662 | $192,469 |
Accounts receivable, less allowance of $1,749 at March 28, 2015 and $1,676 at March 29, 2014 | 145,827 | 164,603 |
Inventories, net | 211,077 | 197,661 |
Deferred tax asset, net | 12,608 | 14,144 |
Prepaid expenses and other current assets | 40,103 | 54,099 |
Total current assets | 570,277 | 622,976 |
Property, plant and equipment, net | 321,948 | 271,437 |
Intangible assets, net | 244,588 | 271,159 |
Goodwill | 334,310 | 336,768 |
Deferred tax asset, long term | 3,023 | 1,184 |
Other long-term assets | 11,271 | 10,654 |
Total assets | 1,485,417 | 1,514,178 |
Current liabilities: | ||
Notes payable and current maturities of long-term debt | 21,522 | 45,630 |
Accounts payable | 48,425 | 53,562 |
Accrued payroll and related costs | 51,115 | 54,913 |
Accrued taxes | 3,819 | 3,113 |
Other current liabilities | 64,211 | 59,710 |
Total current liabilities | 189,092 | 216,928 |
Long-term debt, net of current maturities | 406,369 | 392,057 |
Long-term deferred tax liability | 32,097 | 29,664 |
Other long-term liabilities | 31,737 | 37,641 |
Stockholders’ equity: | ||
Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding — 51,670,969 shares at March 28, 2015 and 52,041,189 shares at March 29, 2014 | 517 | 520 |
Additional paid-in capital | 426,964 | 402,611 |
Retained earnings | 420,365 | 433,347 |
Accumulated other comprehensive (loss) income | -21,724 | 1,410 |
Total stockholders’ equity | 826,122 | 837,888 |
Total liabilities and stockholders’ equity | $1,485,417 | $1,514,178 |
CONSOLIDATED_BALANCE_SHEETS_PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance | $1,749 | $1,676 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, authorized (in shares) | 150,000,000 | 150,000,000 |
Common stock, issued (in shares) | 51,670,969 | 52,041,189 |
Common stock, outstanding (in shares) | 51,670,969 | 52,041,189 |
CONSOLIDATED_STATEMENT_OF_STOC
CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (USD $) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income/(Loss) |
In Thousands, except Share data, unless otherwise specified | |||||
Balance, value at Mar. 31, 2012 | $732,631 | $506 | $322,232 | $400,783 | $9,110 |
Balance, shares (in shares) at Mar. 31, 2012 | 50,604,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock purchase plan | 4,142 | 1 | 4,141 | ||
Employee stock purchase plan (in shares) | 151,000 | ||||
Exercise of stock options and related tax benefit | 35,815 | 14 | 35,801 | ||
Exercise of stock options and related tax benefit (in shares) | 1,398,000 | ||||
Stock-based compensation adjustment related to acquisition | 504 | 504 | |||
Shares repurchased | -50,003 | -12 | -8,607 | -41,384 | |
Shares repurchased (in shares) | -1,236,000 | ||||
Issuance of restricted stock, net of cancellations | 1 | 1 | |||
Issuance of restricted stock, net of cancellations (in shares) | 115,000 | ||||
Stock compensation expense | 10,969 | 10,969 | |||
Net income | 38,800 | ||||
Other comprehensive loss | -3,677 | ||||
Balance, value at Mar. 30, 2013 | 769,182 | 510 | 365,040 | 398,199 | 5,433 |
Balance, shares (in shares) at Mar. 30, 2013 | 51,032,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock purchase plan | 5,229 | 2 | 5,227 | ||
Employee stock purchase plan (in shares) | 161,000 | ||||
Exercise of stock options and related tax benefit | 19,270 | 7 | 19,263 | ||
Exercise of stock options and related tax benefit (in shares) | 740,000 | ||||
Issuance of restricted stock, net of cancellations | 1 | 1 | |||
Issuance of restricted stock, net of cancellations (in shares) | 108,000 | ||||
Stock compensation expense | 13,081 | 13,081 | |||
Net income | 35,148 | ||||
Other comprehensive loss | -4,023 | ||||
Balance, value at Mar. 29, 2014 | 837,888 | 520 | 402,611 | 433,347 | 1,410 |
Balance, shares (in shares) at Mar. 29, 2014 | 52,041,000 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Employee stock purchase plan | 4,763 | 2 | 4,761 | ||
Employee stock purchase plan (in shares) | 183,000 | ||||
Exercise of stock options and related tax benefit | 14,645 | 5 | 14,640 | ||
Exercise of stock options and related tax benefit (in shares) | 500,000 | ||||
Shares repurchased | -39,033 | -11 | -9,143 | -29,879 | |
Shares repurchased (in shares) | -1,174,000 | ||||
Issuance of restricted stock, net of cancellations | 1 | 1 | |||
Issuance of restricted stock, net of cancellations (in shares) | 121,000 | ||||
Stock compensation expense | 14,095 | 14,095 | |||
Net income | 16,897 | ||||
Other comprehensive loss | -23,134 | ||||
Balance, value at Mar. 28, 2015 | $826,122 | $517 | $426,964 | $420,365 | ($21,724) |
Balance, shares (in shares) at Mar. 28, 2015 | 51,671,000 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Cash Flows from Operating Activities: | |||
Net income | $16,897 | $35,148 | $38,800 |
Non-cash items: | |||
Depreciation and amortization | 86,053 | 81,740 | 65,481 |
Amortization of financing costs | 1,013 | 1,505 | 1,139 |
Stock compensation expense | 14,095 | 13,081 | 10,969 |
Deferred tax expense | 4,230 | -202 | 589 |
Purchased in process research and development | 0 | 3,569 | 0 |
Loss on sale of property, plant and equipment | 42 | 293 | 351 |
Unrealized (gain)/loss from hedging activities | 1,558 | -128 | 700 |
Changes in fair value of contingent consideration | -2,918 | 45 | 0 |
Asset write-down | 5,877 | 2,587 | 4,247 |
Change in operating assets and liabilities: | |||
Decrease/(increase) in accounts receivable, net | 8,835 | 6,154 | -38,080 |
Increase in inventories | -16,932 | -12,684 | -18,685 |
(Increase)/decrease in prepaid income taxes | 10,662 | 1,175 | -4,025 |
Decrease/(increase) in other assets and other long-term liabilities | -8,013 | 3,176 | -6,187 |
Tax benefit of exercise of stock options | 3,786 | 1,649 | 4,194 |
Increase in accounts payable and accrued expenses | 1,993 | 2,416 | 25,581 |
Net cash provided by operating activities | 127,178 | 139,524 | 85,074 |
Cash Flows from Investing Activities: | |||
Capital expenditures on property, plant and equipment | -122,220 | -73,648 | -62,188 |
Proceeds from sale of property, plant and equipment | 452 | 488 | 1,968 |
Acquisition of Whole Blood Business | 0 | 0 | -535,175 |
Acquisition of Hemerus | 0 | -23,124 | -1,000 |
Other acquisitions | 0 | -9,546 | 0 |
Net cash used in investing activities | -121,768 | -105,830 | -596,395 |
Cash Flows from Financing Activities: | |||
Payments on long-term real estate mortgage | -1,048 | -964 | -886 |
Net (decrease)/increase in short-term loans | 843 | -5,521 | 7,446 |
Term loan borrowings | 0 | 0 | 475,000 |
Payments on long-term real estate mortgage | -8,531 | -37,063 | 0 |
Debt issuance costs | -1,013 | 0 | -5,467 |
Proceeds from employee stock purchase plan | 4,763 | 5,229 | 4,142 |
Proceeds from exercise of stock options | 9,290 | 15,224 | 27,517 |
Excess tax benefit on exercise of stock options | 1,569 | 2,395 | 4,101 |
Share repurchase | -39,033 | 0 | -50,000 |
Net cash (used in)/provided by financing activities | -33,160 | -20,700 | 461,853 |
Effect of exchange rates on cash and cash equivalents | -4,057 | 355 | -273 |
Net Increase/(Decrease) in Cash and Cash Equivalents | -31,807 | 13,349 | -49,741 |
Cash and Cash Equivalents at Beginning of Year | 192,469 | 179,120 | 228,861 |
Cash and Cash Equivalents at End of Year | 160,662 | 192,469 | 179,120 |
Non-cash Investing and Financing Activities: | |||
Transfers from inventory to fixed assets for placement of Haemonetics equipment | 7,458 | 10,584 | 21,677 |
Supplemental Disclosures of Cash Flow Information: | |||
Interest paid | 8,497 | 8,942 | 5,910 |
Income taxes paid | $11,211 | $7,261 | $13,178 |
DESCRIPTION_OF_THE_BUSINESS_AN
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | 12 Months Ended |
Mar. 28, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION | DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION |
Haemonetics is a global healthcare company dedicated to providing innovative blood management solutions for our customers — plasma collectors, blood collectors, and hospitals. Anchored by our strong brand name in medical device systems for the transfusion industry, we also provide information technology platforms and value added services to provide customers with business solutions which support improved care for patients and efficiency in the blood supply chain. | |
Our systems automate the collection and processing of donated blood; perform blood diagnostics; salvage and process surgical patient blood; and dispense blood within the hospital. These systems include devices and single-use, proprietary disposable sets that operate only on our specialized equipment. Our manual blood collection and filtration systems enable the manual collection of all blood components while detecting bacteria, thus reducing the risks of infection through transfusion. Our blood processing systems allow users to collect and process only the blood component(s) they target — plasma, platelets, or red blood cells — increasing donor and patient safety as well as collection efficiencies. Our blood diagnostics system assesses the likelihood of a patient’s blood loss allowing clinicians to make informed decisions about a patient’s treatment as it relates to blood loss in surgery. Our surgical blood salvage systems collect blood lost by a patient in surgery, clean the blood, and make it available for reinfusion to the patient, in this way giving the patient the safest blood possible — his or her own. Our blood distribution systems are “smart” refrigerators located throughout hospitals which automate the storage, inventory tracking, and dispositioning of blood in key blood use areas. | |
Our information technology platforms are used by blood and plasma collectors to improve the safety and efficiency of blood collection logistics by eliminating previously manual functions at not-for-profit blood centers and commercial plasma centers which are operated by our bio-pharmaceutical customers. Our platforms are also used by hospitals to enable hospital administrators to monitor and measure blood management practices and to manage processes within transfusion services. Our information technology platforms allow all customers to better manage processes across the blood supply chain, comply with regulatory requirements, and identify increased opportunities to reduce costs. | |
On November 30, 2012 we completed a two-for-one split of our common stock in the form of a stock dividend. Unless otherwise indicated, all common stock shares and per share information referenced within the Consolidated Financial Statements have been retroactively adjusted to reflect the stock split. The exercise price of each outstanding option has also been proportionately and retroactively adjusted for all periods presented. Par value per share and authorized shares were however not affected by the stock split. | |
The accompanying consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). The accompanying consolidated financial statements present separately our financial position, results of operations, cash flows, and changes in shareholders’ equity. All amounts presented, except per share amounts, are stated in thousands of U.S. dollars, unless otherwise indicated. | |
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. Subsequent events have been evaluated, and there were no material items that arose after the balance sheet date but prior to the issuance of the financial statements that would be considered recognized subsequent events. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT
SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS | 12 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||||||
Fiscal Year | ||||||||
Our fiscal year ends on the Saturday closest to the last day of March. Fiscal years 2015, 2014 and 2013 each includes 52 weeks with each quarter having 13 weeks. | ||||||||
Principles of Consolidation | ||||||||
The accompanying consolidated financial statements include all accounts including those of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | ||||||||
Use of Estimates | ||||||||
The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from the amounts derived from our estimates and assumptions. | ||||||||
Reclassifications | ||||||||
Certain reclassifications have been made to prior years' amounts to conform to the current year's presentation. | ||||||||
Contingencies | ||||||||
We may become involved in various legal proceedings that arise in the ordinary course of business, including, without limitation, patent infringement, product liability and environmental matters. Accruals recorded for various contingencies including legal proceedings, self-insurance and other claims are based on judgment, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarially determined estimates. When a range is established but a best estimate cannot be made, we record the minimum loss contingency amount. These estimates are often initially developed substantially earlier than the ultimate loss is known, and the estimates are reevaluated each accounting period, as additional information is available. When we are initially unable to develop a best estimate of loss, we record the minimum amount of loss, which could be zero. As information becomes known, additional loss provision is recorded when either a best estimate can be made or the minimum loss amount is increased. When events result in an expectation of a more favorable outcome than previously expected, our best estimate is changed to a lower amount. | ||||||||
Revenue Recognition | ||||||||
Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 605, Revenue Recognition, and ASC Topic 985-605, Software. These standards require that revenues are recognized when persuasive evidence of an arrangement exists, product delivery, including customer acceptance, has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We may have multiple contracts with the same customer and each contract is typically treated as a separate arrangement. When more than one element such as equipment, disposables, and services are contained in a single arrangement, we allocate revenue between the elements based on each element’s relative selling price, provided that each element meets the criteria for treatment as a separate unit of accounting. An item is considered a separate unit of accounting if it has value to the customer on a stand-alone basis. The selling price of the undelivered elements is determined by the price charged when the element is sold separately, or in cases when the item is not sold separately, by third-party evidence of selling price or by management's best estimate of selling price. For our software arrangements accounted for under the provisions of ASC 985-605, Software, we establish fair value of undelivered elements based upon vendor specific objective evidence. | ||||||||
Product Revenues | ||||||||
Product sales consist of the sale of our disposable blood component collection and processing sets and the related equipment. On product sales to end customers, revenue is recognized when both the title and risk of loss have transferred to the customer as determined by the shipping terms and all obligations have been completed. For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment of these products to our distributors. 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 installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. | ||||||||
Software Revenues | ||||||||
Our software solutions business provides support to our plasma, blood collection and hospital customers. We provide information technology platforms and technical support for donor recruitment, blood and plasma testing laboratories, and for efficient and compliant operations of blood and plasma collection centers. For plasma customers, we also provide information technology platforms for managing distribution of plasma from collection centers to plasma fractionation facilities. For hospitals, we provide solutions to help improve patient safety, reduce cost and ensure compliance. | ||||||||
Our software solutions revenues also include revenue from software sales which includes per collection or monthly subscription fees for the license and support of the software as well as hosting services. A significant portion of our software sales are perpetual licenses typically accompanied with significant implementation service fees related to software customization as well as other professional and technical service fees. | ||||||||
We generally recognize revenue from the sale of perpetual licenses on a percentage-of-completion basis which requires us to make reasonable estimates of the extent of progress toward completion of the contract. These arrangements most often include providing customized implementation services to our customer. We also provide other services, including in some instances hosting, technical support, and maintenance, for the payment of periodic, monthly, or quarterly fees. We recognize these fees and charges as earned, typically as these services are provided during the contract period. | ||||||||
Non-Income Taxes | ||||||||
We are required to collect sales or valued added taxes in connection with the sale of certain of our products. We report revenues net of these amounts as they are promptly remitted to the relevant taxing authority. | ||||||||
We are also required to pay a medical device excise tax relating to U.S. sales of Class I, II and III medical devices. This excise tax went into effect January 1, 2013, established as part of the March 2010 U.S. healthcare reform legislation, and has been included in selling, general and administrative expenses. | ||||||||
Translation of Foreign Currencies | ||||||||
All assets and liabilities of foreign subsidiaries are translated at the rate of exchange at year-end while sales and expenses are translated at an average rate in effect during the year. The net effect of these translation adjustments is shown in the accompanying financial statements as a component of stockholders' equity. Foreign currency transaction gains and losses, including those resulting from inter-company transactions, are charged directly to earnings and included in other (expense) income, net on the consolidated statements of income. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned, are recorded in accumulated other comprehensive income on the consolidated balance sheet. | ||||||||
Cash and Cash Equivalents | ||||||||
Cash equivalents include various instruments such as money market funds, U.S. government obligations and commercial paper with maturities of three months or less at date of acquisition. Cash and cash equivalents are recorded at cost, which approximates fair market value. As of March 28, 2015, our cash and cash equivalents consisted of investments in United States Government Agency and institutional money market funds. | ||||||||
Allowance for Doubtful Accounts | ||||||||
We establish a specific allowance for customers when it is probable that they will not be able to meet their financial obligation. Customer accounts are reviewed individually on a regular basis and appropriate reserves are established as deemed appropriate. We also maintain a general reserve using a percentage that is established based upon the age of our receivables and our collection history. We establish allowances for balances not yet due and past due accounts based on past experience. | ||||||||
Property, Plant and Equipment | ||||||||
Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows: | ||||||||
Asset Classification | Estimated | |||||||
Useful Lives | ||||||||
Building | 30 Years | |||||||
Building improvements | 5-20 Years | |||||||
Plant equipment and machinery | 3-15 Years | |||||||
Office equipment and information technology | 3-10 Years | |||||||
Haemonetics equipment | 3-7 Years | |||||||
We evaluate the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives. All property, plant and equipment are also tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. | ||||||||
Our installed base of devices includes devices owned by us and devices sold to the customer. The asset on our balance sheet classified as Haemonetics equipment consists of medical devices installed at customer sites but owned by Haemonetics. Generally the customer has the right to use it for a period of time as long as they meet the conditions we have established, which among other things, generally include one or more of the following: | ||||||||
• | Purchase and consumption of a certain level of disposable products | |||||||
• | Payment of monthly rental fees | |||||||
• | An asset utilization performance metric, such as performing a minimum level of procedures per month per device | |||||||
Consistent with the impairment tests noted below for other intangible assets subject to amortization, we review Haemonetics equipment and their related useful lives at least once a year, or more frequently if certain conditions arise, to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. To conduct these reviews we estimate the future amount and timing of demand for disposables used with these devices, from which we generate revenues. Changes in expected demand can result in additional depreciation expense, which is classified as cost of goods sold. Any significant unanticipated changes in demand could impact the value of our devices and our reported operating results. | ||||||||
Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repairs are generally expensed to operations as incurred. When the repair or maintenance costs significantly extend the life of the asset, these costs may be capitalized. When equipment and improvements are sold or otherwise disposed of, the asset cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss, if any, is included in the statements of income. | ||||||||
Goodwill and Intangible Assets | ||||||||
Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. Costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over their estimated useful life. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. We amortize our other intangible assets over their estimated useful lives. | ||||||||
Goodwill is not amortized. Instead goodwill is reviewed for impairment at least annually in accordance with ASC Topic 350, Intangibles - Goodwill and Other, 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. We first perform a qualitative test and if necessary, perform a quantitative test. | ||||||||
Prior to fiscal 2014, we determined we operated a single operating segment, blood management solutions, based on our chief operating decision maker ("CODM") primarily using consolidated results to make operating and strategic decisions. Our reporting units for purposes of assessing goodwill impairment prior to fiscal 2014 were medical devices and software. During fiscal 2014, our CODM utilized financial results by operating units organized primarily on geography to make operating and strategic decisions due to changes in the composition in the executive staff reporting to the CODM. Based on these changes we determined the five operating units represent operating segments as defined under ASC 280 - Segment Reporting. Following this change, we determined our reporting units for purposes of assessing goodwill impairment by identifying our operating segments and assessing whether segment management regularly reviews the operating results of any components. Through this process, we concluded that our reporting units were the same as our operating segments, which are the following operating units organized based primarily on geography: North America Plasma, North America Blood Center and Hospital, Europe, Asia-Pacific and Japan. During fiscal 2014, goodwill was reallocated from the medical device and software reporting units to the new reporting units based on a relative fair value basis. For fiscal 2015, there were no changes to operating segments or reporting units for purposes of assessing goodwill impairment. | ||||||||
ASC 350, Intangibles - Goodwill and Other defines the fair value of a reporting unit as the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. The quantitative test is based on a discounted cash flow analysis or other valuation techniques, such as the market approach, for each reporting unit. The fair values of our reporting units in fiscal 2013 were determined using the income approach. Under the income approach, the fair value of a reporting unit is based on the present value of future cash flows using appropriate discount rates, growth rates, operating margins and future market conditions amongst others. We changed our valuation approach to assessing goodwill impairment in fiscal 2014 in connection with the change in reporting units. In fiscal 2015 and 2014, we determined the fair value of our reporting units based on the market approach. We utilized the market approach as we determined relevant comparable information was available, and accordingly such method was an appropriate alternative to the income method. Under the market approach, we estimate the fair value of our reporting units based on a combination of, a) market multiples of projected earnings before interest, taxes, depreciation and amortization (“EBITDA”) and b) market multiples of projected net revenues for each individual reporting unit. For the market approach, we use judgment in identifying the relevant comparable-company market multiples, such as recent divestitures/acquisitions, facts and circumstances surrounding the market and growth rates. Management assesses the relevance and reliability of the multiples by considering factors unique to its reporting units, including recent operating results, business plans, economic projections, anticipated future cash flows, and other data. EBITDA and revenue multiples can also be significantly impacted by future growth opportunities for the reporting unit as well as for the company itself, general market and geographic sentiment, and pending or recently completed merger transactions. | ||||||||
These tests showed no evidence of impairment to our goodwill for fiscal 2015, 2014 or 2013 and demonstrated that the fair value of each reporting unit exceeded the reporting unit’s carrying value in each period. During March 2014, circumstances arose that indicated a potential impairment. We performed an interim impairment test and noted that the fair value of our reporting units still exceeded their carrying values. | ||||||||
We review intangible assets subject to amortization at least annually or more frequently if certain conditions arise to determine if any adverse conditions exist that would indicate that the carrying value of an asset or asset group may not be recoverable, or that a change in the remaining useful life is required. Conditions indicating that an impairment exists include but are not limited to a change in the competitive landscape, internal decisions to pursue new or different technology strategies, a loss of a significant customer or a significant change in the marketplace including prices paid for our products or the size of the market for our products. During March 2014, circumstances arose that indicated a potential impairment of certain intangible assets subject to amortization. We performed the recoverability test described below for the relevant asset group and determined expected undiscounted cash flows exceeded the carrying value of the asset group. | ||||||||
If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. | ||||||||
We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). | ||||||||
If we determine the estimate of an intangible asset's remaining useful life should be reduced based on our expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. | ||||||||
Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed | ||||||||
ASC Topic 985-20, Software, 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, at which point capitalized costs are amortized over their estimated useful life of five to 10 years. Technological feasibility is established when we have a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. | ||||||||
We review the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. In the future, the net realizable value may be adversely affected by the loss of a significant customer or a significant change in the market place, which could result in an impairment being recorded. | ||||||||
Other Liabilities | ||||||||
Other liabilities represent items payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were: | ||||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
VAT liabilities | $ | 4,205 | $ | 7,114 | ||||
Forward contracts | 2,657 | 1,255 | ||||||
Deferred revenue | 22,362 | 24,777 | ||||||
All other | 34,987 | 26,564 | ||||||
Total | $ | 64,211 | $ | 59,710 | ||||
Research and Development Expenses | ||||||||
All research and development costs are expensed as incurred. | ||||||||
Advertising Costs | ||||||||
All advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of income. Advertising expenses were $4.5 million, $3.6 million, and $4.6 million for 2015, 2014 and 2013, respectively. | ||||||||
Accounting for Shipping and Handling Costs | ||||||||
Shipping and handling costs are included in selling, general and administrative expenses. Freight is classified in cost of goods sold when the customer is charged for freight and in selling, general and administration when the customer is not explicitly charged for freight. | ||||||||
Income Taxes | ||||||||
The income tax provision is calculated for all jurisdictions in which we operate. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items which are taxable or deductible in different periods for tax and accounting purposes and are recorded as deferred tax assets and liabilities. Deferred tax assets are evaluated for realizability and a valuation allowance is maintained for the portion of our deferred tax assets that are not more-likely-than-not realizable. | ||||||||
We file income tax returns in all jurisdictions in which we operate. We record a liability for uncertain tax positions taken or expected to be taken in income tax returns. Our financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. We record a liability for the portion of unrecognized tax benefits claimed which we have determined are not more-likely-than-not realizable. These tax reserves have been established based on management's assessment as to the potential exposure attributable to our uncertain tax positions as well as interest and penalties attributable to these uncertain tax positions. All tax reserves are analyzed quarterly and adjustments are made. Tax reserves are reversed when the statute of limitations expires or the matter is considered effectively settled. | ||||||||
Derivative Instruments | ||||||||
We account for our derivative financial instruments in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) and ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for the change in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative as a hedging instrument for accounting purposes, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. In addition, ASC 815 provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. We do not use derivative financial instruments for trading or speculation purposes. | ||||||||
The gains or losses on the forward foreign exchange rate contracts designated as hedges are recorded in net revenues, cost of goods sold, operating expenses and other (expense) income, net in our consolidated statements of income, depending on the nature of the underlying hedged transactions, when the underlying hedged transaction affects earnings. The cash flows related to the gains and losses are classified in the consolidated statements of cash flows as part of cash flows from operating activities. For those derivative instruments that are not designated as part of a hedging relationship we record the gains or losses in earnings currently. These gains and losses are intended to offset the gains and losses recorded on net monetary assets or liabilities that are denominated in foreign currencies. We recorded foreign currency losses of $1.1 million, $0.5 million, and $0.8 million in fiscal 2015, 2014 and 2013, respectively. | ||||||||
On a quarterly basis, we assess whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. 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. | ||||||||
Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives are intended to offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC Topic 815. | ||||||||
Stock-Based Compensation | ||||||||
To calculate the grant-date fair value of our stock options we use the Black-Scholes option-pricing model and for performance share units and market stock units we use Monte Carlo Simulation models. | ||||||||
Valuation of Acquisitions | ||||||||
We allocate the amounts we pay for each acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition, including acquired identifiable intangible assets. We base the estimated fair value of identifiable intangible assets on detailed valuations that use historical information and market assumptions based upon the assumptions of a market participant. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. | ||||||||
In certain acquisitions, we have earn-out arrangements or contingent consideration to provide potential future payments to the seller for achieving certain agreed-upon targets. We record the contingent consideration at its fair value at the acquisition date. Generally, we have entered into arrangements with contingent consideration that require payments in cash. As such, we periodically revalue the contingent consideration obligations associated with certain acquisitions to their current fair value and record the change in the fair value as contingent consideration income or expense within selling, general and administrative expense. These changes are recorded in selling, general and administrative expense. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and expense estimates, and changes in assumed probability with respect to regulatory approval. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration income or expense we record in any given period. | ||||||||
Concentration of Credit Risk and Significant Customers | ||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. In fiscal 2015 and 2014, no one customer accounted for more than 10% of our revenues. Sales to one unaffiliated Japanese customer, the Japanese Red Cross Society, amounted to $90.1 million for fiscal 2013. | ||||||||
Certain other markets and industries can expose us to concentrations of credit risk. For example, in our plasma business, our sales are concentrated with several large customers. As a result, our accounts receivable extended to any one of these bio-pharmaceutical customers can be significant at any point in time. Also, a portion of our trade accounts receivable outside the United States include sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries’ national economies. We have not incurred significant losses on government receivables. We continually evaluate all government receivables for potential collection risks associated with the availability of government funding and reimbursement practices. If the financial condition of customers or the countries’ healthcare systems deteriorate such that their ability to make payments is uncertain, allowances may be required in future periods. | ||||||||
Recent Accounting Pronouncements | ||||||||
Standards to be 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. Management does not believe that the adoption of ASU No. 2014-08 will have a material effect on our Financial Statements. | ||||||||
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 the Company retrospectively beginning April 2, 2017, with early adoption not permitted. The impact of adopting ASU No. 2014-09 on our Financial Statements 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 Statements. | ||||||||
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 Statements. | ||||||||
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 Statements. | ||||||||
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 Statements. | ||||||||
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. ASU No. 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Management does not believe that the adoption of ASU No. 2015-03 will have a material effect on our Financial Statements. | ||||||||
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. The impact of adopting ASU No. 2015-04 on our Financial Statements is being assessed by management. | ||||||||
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. The impact of adopting ASU No. 2015-05 on our Financial Statements is being assessed by management. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended | |||||
Mar. 28, 2015 | ||||||
Business Combinations [Abstract] | ||||||
ACQUISITIONS | ACQUISITIONS | |||||
Acquisitions were completed in fiscal 2014 and fiscal 2013. We did not complete any acquisitions in fiscal 2015. | ||||||
Fiscal Year 2014 Acquisition | ||||||
Hemerus Acquisition | ||||||
On April 30, 2013, we completed the acquisition of certain assets of Hemerus Medical, LLC ("Hemerus"), a Minnesota based company that develops innovative technologies for the collection of whole blood and processing and storage of blood components. Hemerus has received U.S Food and Drug Administration (FDA) approval for SOLX® whole blood collection system for eight hour storage of whole blood prior to processing. Hemerus previously received Conformité Européenne or CE Mark in the European Union to market SOLX as the world's first 56-day red blood cell storage solution. We paid $24.1 million and will pay an additional $3.0 million upon a further FDA approval of the SOLX solution for 24 hour storage of whole blood prior to processing. We will also pay up to $14.0 million based on future sales of SOLX-based products through fiscal 2025. | ||||||
We acquired Hemerus to complement the portfolio of whole blood collection, filtration and processing product lines we recently acquired and to bring greater efficiency and productivity to whole blood collection and processing. Hemerus manufactures and sells manual blood collection systems and filters and has operations in North America. Revenue from the sale of SOLX will be reported within the blood center disposables product line. | ||||||
The assets acquired from Hemerus were recorded at fair value at the date of acquisition. | ||||||
The final purchase price allocation is as follows: | ||||||
Asset class | Amounts recognized as of March 29, 2014 | |||||
Acquired technology | $ | 22,800 | ||||
Trade name | 1,900 | |||||
Customer relationship | 600 | |||||
Goodwill | 6,425 | |||||
Total | $ | 31,725 | ||||
The fair value of the acquired assets and liabilities are reflected in the Consolidated Balance Sheets. The acquired assets are amortized over the estimate of their useful lives on a straight-line basis. We recorded $2.5 million and $2.3 million in amortization expense relating to the acquired intangible assets for the fiscal years ended March 28, 2015 and March 29, 2014, respectively. | ||||||
Goodwill represents the excess of the purchase price over the fair value of the net assets. Goodwill of $6.4 million primarily represents future economic benefits expected to arise from the work force and synergies expected to be gained from the integration of SOLX into our whole blood products. Prior to the acquisition, we had not conducted any business with Hemerus. | ||||||
Contingent consideration | ||||||
As described above, we will pay the sellers of the Hemerus assets up to $14.0 million based on future sales of SOLX. We recognized a liability equal to the fair value of the contingent payments we expect to make as of the acquisition date. We revalue this liability each reporting period and record necessary changes in the fair value in our consolidated statements of income. As of March 28, 2015, the maximum amount of future contingent consideration (undiscounted) that we could be required to pay related to future SOLX sales is $14.0 million. Additionally, we will pay $3.0 million upon FDA approval of the SOLX solution for 24 hour storage of whole blood prior to processing. The carrying value of this liability is $4.7 million as of March 28, 2015. | ||||||
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 analysis 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 forecast and analysis. | ||||||
Fiscal Year 2013 Acquisition | ||||||
Whole Blood Acquisition | ||||||
On August 1, 2012, we completed the acquisition from Pall Corporation (“Pall”) of substantially all of the assets relating to its blood collection, filtration, processing, storage, and re-infusion product lines, and all of the outstanding equity interest in Pall Mexico Manufacturing, S. de R.L. de C.V., a subsidiary of Pall based in Mexico pursuant to an Asset Purchase Agreement (the “Purchase Agreement”) with Pall. We refer to the acquired business as the “whole blood business.” | ||||||
At the closing of the transaction, we paid a total consideration of $535.2 million in cash and $0.5 million in shares following resolution of post-closing adjustments for working capital and historical earnings levels. We anticipate paying an additional $15.0 million upon replication and delivery of certain manufacturing assets of Pall's filter media business to Haemonetics by 2018. Until that time, Pall will manufacture and sell filter media to Haemonetics under a supply agreement. | ||||||
We entered into a credit agreement on August 1, 2012 in connection with the transaction which includes a $475.0 million term loan to fund the majority of the cash paid to Pall. See Note 8 for a detailed description of the key terms and provisions of the credit agreement. | ||||||
We acquired the whole blood business to provide access to the manual collection and whole blood markets and provide scope for introduction of automated solutions in those markets. The whole blood business manufactures and sells manual blood collection systems and filters and has operations in North America, Europe and Asia Pacific countries. Revenue from the sale of whole blood disposables has been reported within the blood center disposables product line since the date of acquisition. | ||||||
The assets and liabilities acquired from Pall were recorded at fair value at the date of acquisition. We completed the allocation of the purchase price to the estimated fair value of the acquired assets and liabilities in June 2013 and is summarized below: | ||||||
Asset class | Amounts Recognized as of March 30, 2013 | |||||
(In thousands) | ||||||
Inventories | $ | 49,917 | ||||
Property, plant and equipment | 85,984 | |||||
Intangible assets | 188,500 | |||||
Other assets/liabilities, net | (6,166 | ) | ||||
Goodwill | 216,940 | |||||
Fair value of net assets acquired | $ | 535,175 | ||||
The fair value of the acquired assets and liabilities are reflected in the Consolidated Balance Sheets. The $188.5 million of acquired intangible assets was allocated to acquired technology and customer relationships at fair values of $61.0 million and $127.5 million, respectively. The acquired intangible assets were initially amortized over their estimated useful lives of 12 years on a straight-line basis. We adopted the straight-line amortization of 12 years as it best reflected the pattern of benefits. As of March 29, 2014, the remaining estimated useful life of the customer relationship assets was adjusted to 8 years to better reflect its current pattern of benefits. We recorded $18.8 million, $15.7 million and $10.5 million in amortization expense relating to the acquired intangible assets for the fiscal years ended March 28, 2015, March 29, 2014 and March 30, 2013, respectively. | ||||||
Goodwill represents the excess of the purchase price over the fair value of the net assets. Goodwill of $216.9 million represents future economic benefits expected to arise from work force at the various plants and locations and significant technological know-how in filter manufacturing. All of the goodwill is deductible for tax purposes. | ||||||
Revenue for the acquired whole blood business included in our operating results was $143.9 million in fiscal 2015, $190.7 million in fiscal 2014 and $138.4 million in fiscal 2013. | ||||||
The following represents the pro forma consolidated statements of income for the fiscal year ended March 30, 2013, as if the acquisition had been included in our consolidated results as beginning April 1, 2012: | ||||||
(In thousands, except per share amounts) | March 30, | |||||
2013 | ||||||
Net Sales | $ | 963,923 | ||||
Net Income | $ | 56,540 | ||||
Basic EPS | $ | 1.1 | ||||
Diluted EPS | $ | 1.08 | ||||
PRODUCT_WARRANTIES
PRODUCT WARRANTIES | 12 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
PRODUCT WARRANTIES | PRODUCT WARRANTIES | |||||||
We generally provide a warranty on parts and labor for one year after the sale and installation of each device. We also warrant our disposables products through their use or expiration. We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary. | ||||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Warranty accrual as of the beginning of the year | $ | 590 | $ | 673 | ||||
Warranty provision | 1,199 | 1,340 | ||||||
Warranty spending | (1,258 | ) | (1,423 | ) | ||||
Warranty accrual as of the end of the year | $ | 531 | $ | 590 | ||||
INVENTORIES
INVENTORIES | 12 Months Ended | |||||||
Mar. 28, 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 with the first-in, first-out method. | ||||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Raw materials | $ | 71,794 | $ | 72,508 | ||||
Work-in-process | 12,462 | 7,383 | ||||||
Finished goods | 126,821 | 117,770 | ||||||
Total Inventory | $ | 211,077 | $ | 197,661 | ||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 12 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS | |||||||||||||
Goodwill | ||||||||||||||
The changes in the carrying amount of goodwill for fiscal 2015 and 2014 are as follows: | ||||||||||||||
(In thousands) | ||||||||||||||
Carrying amount as of March 30, 2013 | $ | 330,474 | ||||||||||||
Hemerus acquisition | 6,425 | |||||||||||||
Effects of change in foreign currency exchange rates | (131 | ) | ||||||||||||
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 | ||||||||||||
Intangible Assets | ||||||||||||||
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 gross carrying amount of intangible assets and the related accumulated amortization as of March 28, 2015 and March 29, 2014 is as follows: | ||||||||||||||
(In thousands) | Gross Carrying | Accumulated | Net | Weighted Average | ||||||||||
Amount | Amortization | 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 | |||||||
(In thousands) | Gross Carrying | Accumulated | Net | Weighted Average | ||||||||||
Amount | Amortization | Useful Life | ||||||||||||
(In years) | ||||||||||||||
As of March 29, 2014 | ||||||||||||||
Patents | $ | 9,543 | $ | 7,039 | $ | 2,504 | 9 | |||||||
Capitalized software | 31,750 | 2,414 | 29,336 | 4 | ||||||||||
Other developed technology | 123,525 | 36,632 | 86,893 | 12 | ||||||||||
Customer contracts and related relationships | 200,694 | 52,741 | 147,953 | 12 | ||||||||||
Trade names | 7,341 | 2,868 | 4,473 | 11 | ||||||||||
Total intangibles | $ | 372,853 | $ | 101,694 | $ | 271,159 | 11 | |||||||
The changes to the net carrying value of our intangible assets from March 29, 2014 to March 28, 2015 reflect investment in capitalized software and other less significant intangible assets, amortization expense and the effect of exchange rate changes in the translation of our intangible assets held by our international subsidiaries. | ||||||||||||||
Aggregate amortization expense for amortized intangible assets for fiscal year 2015, 2014, and 2013 was $33.5 million, $29.2 million, and $22.1 million, respectively. Future annual amortization expense on intangible assets is estimated to be as follows: | ||||||||||||||
Fiscal Year | Amount (in thousands) | |||||||||||||
2016 | $ | 33,752 | ||||||||||||
2017 | $ | 32,998 | ||||||||||||
2018 | $ | 32,165 | ||||||||||||
2019 | $ | 30,470 | ||||||||||||
2020 and thereafter | $ | 104,544 | ||||||||||||
DERIVATIVES_AND_FAIR_VALUE_MEA
DERIVATIVES AND FAIR VALUE MEASUREMENTS | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Derivatives and Fair Value Measurements [Abstract] | |||||||||||||||||
DERIVATIVES AND FAIR VALUE MEASUREMENTS | DERIVATIVES AND FAIR VALUE MEASUREMENTS | ||||||||||||||||
We manufacture, market and sell our products globally. For the fiscal year ended March 28, 2015, approximately 45.6% 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 unforeseen impact on our financial results from changes in foreign exchange rates. We utilize foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies, primarily the Japanese Yen and the Euro, and to a lesser extent the Swiss Franc, Australian Dollar, British Pound Sterling, Canadian Dollar and the Mexican Peso. This does not eliminate 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 March 28, 2015 and March 29, 2014 were cash flow hedges under ASC Topic 815, Derivatives and Hedging. We record the effective portion of any change in the fair value of designated foreign currency hedge contracts in Other Comprehensive Income in the Statement of Stockholders’ Equity 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 $145.8 million as of March 28, 2015 and $157.9 million as of March 29, 2014. | |||||||||||||||||
During fiscal 2015, we recognized net gains of $6.5 million in earnings on our cash flow hedges, compared to recognized net gains of $8.6 million and $2.7 million during fiscal 2014 and 2013, respectively. For the fiscal year ended March 28, 2015, $12.2 million of gains, net of tax, were recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of any designated foreign currency hedge contracts that are, or previously were, designated as foreign currency cash flow hedges, as compared to net gains of $3.7 million, net of tax, for the fiscal year ended March 29, 2014 and net gains of $5.1 million, net of tax, for the fiscal year ended March 30, 2013. At March 28, 2015, gains of $12.2 million, net of tax, will be reclassified to earnings within the next twelve months. All currency cash flow hedges outstanding as of March 28, 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 $45.8 million as of March 28, 2015 and $72.9 million as of March 29, 2014. | |||||||||||||||||
Interest Rate Swaps | |||||||||||||||||
On August 1, 2012, we entered into a Credit Agreement which provided for a $475.0 million term loan (“Term Loan”). Under the terms of this Credit Agreement, the Company 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, the Company has chosen to borrow against the 1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1% (“Adjusted LIBOR”). The terms of the Credit Agreement also allow us to borrow in multiple tranches. As of March 28, 2015, we have four tranches outstanding. | |||||||||||||||||
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. | |||||||||||||||||
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 value of $250.0 million of debt. The interest rate swaps mature on August 1, 2017. The Company designated the interest rate swaps as a cash flow hedge of variable interest rate risk associated with $250.0 million of indebtedness. For the fiscal years ended March 28, 2015, March 29, 2014 and March 30, 2013, $0.9 million of losses, $1.3 million of gains and $0.8 million of losses, net of tax, were recorded in Accumulated Other Comprehensive Income to recognize the effective portion of the fair value of interest rate swaps that qualify as cash flow hedges, respectively. | |||||||||||||||||
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 for the fiscal year ended March 28, 2015. | |||||||||||||||||
Derivative Instruments | Amount of | Amount of | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) Recognized | Gain/(Loss) | Statement of Operations | Excluded from | Statement of | |||||||||||||
in OCI | Reclassified | Effectiveness | Operations | ||||||||||||||
(Effective Portion) | from OCI into | Testing (*) | |||||||||||||||
Earnings | |||||||||||||||||
(Effective Portion) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 12,249 | $ | 6,464 | Net revenues, COGS, and SG&A | $ | (170 | ) | Other income (expense), net | ||||||||
Non-designated foreign currency hedge contracts | — | — | $ | 7,510 | Other income (expense) | ||||||||||||
Designated interest rate swaps, net of tax | $ | (878 | ) | $ | — | Interest income (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 March 28, 2015 or March 29, 2014. As of March 28, 2015, the amount recognized as a deferred tax liability for designated foreign currency hedges was $0.8 million and the amount recognized as a deferred tax asset for interest rate swap hedges was $0.1 million. | |||||||||||||||||
ASC Topic 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet. We determine the fair value of our derivative instruments using the framework prescribed by ASC Topic 820, Fair Value Measurements and Disclosures, by considering the estimated amount we would receive or pay to sell or transfer these instruments at the reporting date and by taking into account current interest rates, currency exchange rates, current interest rate curves, interest rate volatilities, the creditworthiness of the counterparty for assets, and our creditworthiness for liabilities. In certain instances, we may utilize financial models to measure fair value. Generally, we use inputs that include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; other observable inputs for the asset or liability; and inputs derived principally from, or corroborated by, observable market data by correlation or other means. As of March 28, 2015, we have classified our derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC Topic 815, as discussed below, because these observable inputs are available for substantially the full term of our derivative instruments. | |||||||||||||||||
The following tables present the fair value of our derivative instruments as they appear in our consolidated balance sheets as of March 28, 2015 and March 29, 2014 by type of contract and whether it is a qualifying hedge under ASC Topic 815. | |||||||||||||||||
(In thousands) | Location in | Balance as of March 28, 2015 | Balance as of March 29, 2014 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 9,740 | $ | 2,574 | ||||||||||||
Designated interest rate swaps | Other current assets | — | 1,250 | ||||||||||||||
$ | 9,740 | $ | 3,824 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 2,499 | $ | 1,255 | ||||||||||||
Designated interest rate swaps | Other current liabilities | 159 | — | ||||||||||||||
$ | 2,658 | $ | 1,255 | ||||||||||||||
Other Fair Value Measurements | |||||||||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, defines fair value, establishes a framework for measuring fair value in accordance with U.S. GAAP, and expands disclosures about fair value measurements. ASC Topic 820 does not require any new fair value measurements; rather, it applies to other accounting pronouncements that require or permit fair value measurements. In accordance with ASC Topic 820, for the fiscal years ended March 28, 2015 and March 29, 2014, 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 March 28, 2015 and March 29, 2014: | |||||||||||||||||
As of March 28, 2015 | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 119,946 | $ | — | $ | — | $ | 119,946 | |||||||||
Foreign currency hedge contracts | — | 9,740 | — | 9,740 | |||||||||||||
$ | 119,946 | $ | 9,740 | $ | — | $ | 129,686 | ||||||||||
Liabilities | |||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 2,499 | $ | — | $ | 2,499 | |||||||||
Interest rate swap | — | 159 | — | 159 | |||||||||||||
Contingent consideration | — | — | 4,727 | 4,727 | |||||||||||||
$ | — | $ | 2,658 | $ | 4,727 | $ | 7,385 | ||||||||||
As of March 29, 2014 | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 135,378 | $ | — | $ | — | $ | 135,378 | |||||||||
Forward currency hedge contracts | — | 2,574 | — | 2,574 | |||||||||||||
Interest rate swap | — | 1,250 | — | 1,250 | |||||||||||||
$ | 135,378 | $ | 3,824 | $ | — | $ | 139,202 | ||||||||||
Liabilities | |||||||||||||||||
Forward currency hedge contracts | $ | — | $ | 1,255 | $ | — | $ | 1,255 | |||||||||
Contingent consideration | — | — | 7,645 | 7,645 | |||||||||||||
$ | — | $ | 1,255 | $ | 7,645 | $ | 8,900 | ||||||||||
For the fiscal years ended March 28, 2015 and March 29, 2014, non-designated foreign currency hedge contracts were not significant and are not disclosed separately in the above tables. | |||||||||||||||||
Contingent consideration | |||||||||||||||||
Hemerus | |||||||||||||||||
A description of the methods used to determine the fair value of the Level 3 liabilities is included within Note 3, Acquisitions. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the year ended March 28, 2015. | |||||||||||||||||
(In thousands) | Fair value measurements using significant unobservable inputs (Level 3) | ||||||||||||||||
Contingent consideration as of March 29, 2014 | $ | 7,645 | |||||||||||||||
Fair value adjustment | (2,918 | ) | |||||||||||||||
Ending balance | $ | 4,727 | |||||||||||||||
The fair value adjustment to contingent consideration was a result of updated assumptions pertaining to timing and unit volumes. | |||||||||||||||||
Other Fair Value Disclosures | |||||||||||||||||
The Term Loan is carried at amortized cost and accounts receivable and accounts payable are also reported at their cost which approximates fair value. |
NOTES_PAYABLE_AND_LONGTERM_DEB
NOTES PAYABLE AND LONG-TERM DEBT | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Notes Payable and Long-Term Debt [Abstract] | |||||||||||||||||
NOTES PAYABLE AND LONG-TERM DEBT | NOTES PAYABLE AND LONG-TERM DEBT | ||||||||||||||||
Notes payable and long-term debt consisted of the following: | |||||||||||||||||
(In thousands) | March 28, 2015 | March 29, 2014 | |||||||||||||||
Term loan, net of financing fees | $ | 426,814 | $ | 435,338 | |||||||||||||
Real estate mortgage | 851 | 1,906 | |||||||||||||||
Bank loans and other borrowings | 226 | 443 | |||||||||||||||
Less current portion | (21,522 | ) | (45,630 | ) | |||||||||||||
Long-term debt | $ | 406,369 | $ | 392,057 | |||||||||||||
On August 1, 2012 in connection with the acquisition of the whole blood business, 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 matured on August 1, 2017. | |||||||||||||||||
Under the terms of this Credit Agreement, the Company 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, the Company has chosen to borrow against the 1-month USD-LIBOR-BBA rounded up, if necessary, to the nearest 1/16th of 1%. The terms of the Credit Agreement also allow the Company to borrow in multiple tranches. The Company currently borrows in four tranches. | |||||||||||||||||
At closing, we borrowed the Term Loan and used the proceeds to pay Pall for the acquisition of the assets described in Note 3. Interest for the Credit Facilities was based on 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. Revolving loans may be borrowed, repaid and re-borrowed to fund our working capital needs and for other general corporate purposes. The current margin of the Term Loan is 1.375% over Adjusted LIBOR and our effective interest rate inclusive of prepaid financing costs and other fees was approximately 2.0% as of March 28, 2015. The Term Loan or portions thereof may be prepaid at any time, or from time to time without penalty. Once repaid, such amount may not be re-borrowed. | |||||||||||||||||
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% to 1.500% depending on certain conditions. At March 28, 2015, $379.4 million was outstanding under the Term Loan and $50.0 million was outstanding on the Revolving Credit Facility, both with an interest rate of 1.5625%. No additional amounts were borrowed as a result of this modification. The fair value of debt approximates its current value of approximately $429.4 million as of March 28, 2015. | |||||||||||||||||
Under the Credit Facilities, we are required to maintain a Consolidated Total Leverage Ratio not to exceed 3.0:1.0 and a Consolidated Interest Coverage Ratio not to be less than 4.0:1.0 during periods when the Credit Facilities are outstanding. In addition, we are required to satisfy these covenants, on a pro forma basis, in connection with any new borrowings (including any letter of credit issuances) on the Revolving Credit Facility as of the time of such borrowings. The Consolidated Interest Coverage Ratio is calculated as the Consolidated EBITDA divided by Consolidated Interest Expense while the Consolidated Total Leverage Ratio is calculated as Consolidated Total Debt divided by Consolidated EBITDA. Consolidated EBITDA includes EBITDA adjusted by non-recurring and unusual transactions specifically as defined in the Credit Facilities. | |||||||||||||||||
The Credit Facilities also contain usual and customary non-financial affirmative and negative covenants which include certain restrictions with respect to subsequent indebtedness, liens, loans and investments (including acquisitions), financial reporting obligations, mergers, consolidations, dissolutions or liquidation, asset sales, affiliate transactions, change of our business, capital expenditures, share repurchase and other restricted payments. These covenants are subject to important exceptions and qualifications set forth in the Credit Agreement. | |||||||||||||||||
Any failure to comply with the financial and operating covenants of the Credit Facilities would prevent us from being able to borrow additional funds and would constitute a default, which could result in, among other things, the amounts outstanding including all accrued interest and unpaid fees, becoming immediately due and payable. In addition, the Credit Facilities include customary events of default, in certain cases subject to customary cure periods. As of March 28, 2015, we were in compliance with the covenants. | |||||||||||||||||
Commitment fee | |||||||||||||||||
Pursuant to the Credit Agreement we are required to pay the Lenders, on the last day of each calendar quarter, a commitment fee on the unused portion of the Revolving Credit Facility. The commitment fee is subject to a pricing grid based on our Consolidated Total Leverage Ratio. The commitment fee ranges from 0.175% to 0.300%. The current commitment fee on the undrawn portion of the Revolving Credit Facility is 0.250%. | |||||||||||||||||
Debt issuance costs and interest | |||||||||||||||||
Expenses associated with the issuance of the Term Loan were capitalized and are amortized as additional interest expense over the five years using the effective interest method. In connection with the Term Loan, we initially recorded deferred financing costs of $5.5 million and we recorded additional deferred financing costs of $1.0 million in connection with the June 30, 2014 modification, of which $2.6 million remains as a debt discount. The debt discount is netted against the $429.4 million balance, resulting in a net note payable of $426.8 million. The debt discount will also be amortized as additional interest expense over the life of the term loan. | |||||||||||||||||
Interest expense was $8.5 million and $8.9 million for the fiscal years ended March 28, 2015 and March 29, 2014, respectively. Accrued interest associated with our outstanding debt is included as a component of accrued expenses and other current liabilities in the accompanying consolidated balance sheets. As of March 28, 2015, accrued interest totaled $0.6 million. | |||||||||||||||||
Other Credit Facilities | |||||||||||||||||
The other debt as of March 28, 2015 includes the real estate mortgage loan of $0.9 million and short term bank borrowings of $0.2 million under operating lines of credit. | |||||||||||||||||
In December 2000, we entered into a $10.0 million real estate mortgage agreement (the “Mortgage Agreement”) with an investment firm. The Mortgage Agreement requires principal and interest payments of $0.1 million per month for a period of 180 months, commencing February 1, 2001. The Mortgage Agreement provides for interest to accrue on the unpaid principal balance at a rate of 8.41% per annum. Borrowings under the Mortgage Agreement, with a carrying value of approximately $0.9 million and $1.9 million as of March 28, 2015 and March 29, 2014, respectively, are secured by the land, building and building improvements at our headquarters and manufacturing facility in the U.S. There are no financial covenants in the terms and conditions of this agreement. | |||||||||||||||||
Maturity Profile | |||||||||||||||||
The maturity profile of all gross long-term debt, exclusive of debt discounts, as of March 28, 2015 is presented below: | |||||||||||||||||
Fiscal year (in thousands) | Mortgage Obligation | Credit Facilities | Bank loans and other borrowings | Total | |||||||||||||
2016 | $ | 851 | $ | 21,342 | $ | 144 | $ | 22,337 | |||||||||
2017 | — | 42,683 | 65 | 42,748 | |||||||||||||
2018 | — | 45,054 | 17 | 45,071 | |||||||||||||
2019 | — | 151,763 | — | 151,763 | |||||||||||||
2020 | — | 168,564 | — | 168,564 | |||||||||||||
$ | 851 | $ | 429,406 | $ | 226 | $ | 430,483 | ||||||||||
INCOME_TAXES
INCOME TAXES | 12 Months Ended | ||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
INCOME TAXES | INCOME TAXES | ||||||||||||||||||||
Domestic and foreign income before provision for income tax is as follows: | |||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Domestic | $ | (17,265 | ) | $ | (6,859 | ) | $ | 17,360 | |||||||||||||
Foreign | 48,430 | 43,260 | 32,537 | ||||||||||||||||||
Total | $ | 31,165 | $ | 36,401 | $ | 49,897 | |||||||||||||||
The income tax provision contains the following components: | |||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 3,526 | $ | (4,896 | ) | $ | 3,795 | ||||||||||||||
State | 898 | 873 | 1,324 | ||||||||||||||||||
Foreign | 5,614 | 5,478 | 5,389 | ||||||||||||||||||
Total current | $ | 10,038 | $ | 1,455 | $ | 10,508 | |||||||||||||||
Deferred | |||||||||||||||||||||
Federal | 1,227 | (1,785 | ) | 1,644 | |||||||||||||||||
State | 3,215 | 207 | (229 | ) | |||||||||||||||||
Foreign | (212 | ) | 1,376 | (826 | ) | ||||||||||||||||
Total deferred | $ | 4,230 | $ | (202 | ) | $ | 589 | ||||||||||||||
Total | $ | 14,268 | $ | 1,253 | $ | 11,097 | |||||||||||||||
Our subsidiary in Puerto Rico has been granted a fifteen year tax grant which expires in 2027. Our qualification for the tax grant is dependent on the continuation of our manufacturing activities in Puerto Rico. We benefit from a reduced tax rate on our earnings in Puerto Rico under the tax grant. | |||||||||||||||||||||
Our subsidiary in Switzerland operates as a principle company for direct federal tax purposes. Operating under this structure affords our Swiss subsidiary a reduced tax rate in Switzerland. Our Swiss subsidiary also operates under a 10 year tax holiday set to expire in 2018. | |||||||||||||||||||||
Tax affected, significant temporary differences comprising the net deferred tax liability are as follows: | |||||||||||||||||||||
(In thousands) | March 28, | March 29, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Depreciation | $ | (23,733 | ) | $ | (23,658 | ) | |||||||||||||||
Amortization | (24,038 | ) | (18,618 | ) | |||||||||||||||||
Inventory | 6,189 | 7,371 | |||||||||||||||||||
Hedging | 84 | 321 | |||||||||||||||||||
Accruals, reserves and other | 15,927 | 10,368 | |||||||||||||||||||
Net operating loss carry-forward | 5,392 | 1,507 | |||||||||||||||||||
Stock based compensation | 10,652 | 8,757 | |||||||||||||||||||
Tax credit carry-forward, net | 8,678 | 2,660 | |||||||||||||||||||
Gross deferred taxes | $ | (849 | ) | $ | (11,292 | ) | |||||||||||||||
Less valuation allowance | (16,027 | ) | (3,083 | ) | |||||||||||||||||
Net deferred tax liability | $ | (16,876 | ) | $ | (14,375 | ) | |||||||||||||||
The valuation allowance increased by $12.9 million during 2015, primarily due to recording a valuation allowance against domestic deferred tax assets that we have determined are not more-likely-than-not realizable. In determining the need for a valuation allowance, we have assessed the available means of recovering deferred tax assets, including the ability to carryback net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies and available sources of future taxable income. We have also considered the ability to implement certain strategies that would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. We believe we are able to support the deferred tax assets recognized as of the end of the year based on all of the available evidence. The worldwide net deferred tax liability as of March 28, 2015 includes deferred tax liabilities related to amortizable goodwill, which are indefinite lived and are not considered to be a source of taxable income. As of March 28, 2015, we maintain a valuation allowance against the portion of our U.S. net deferred tax assets that are not more-likely-than-not realizable and a full valuation allowance against the net deferred tax assets of certain foreign subsidiaries. | |||||||||||||||||||||
At March 28, 2015, we have U.S. federal net operating loss carry-forwards of approximately $11.7 million, U.S. state net operating loss carry-forwards of $23.6 million, federal tax credit carry-forwards of $6.4 million and state tax credit carry-forwards of $4.0 million that are available to reduce future taxable income. A portion of the federal net operating losses are subject to an annual limitation due to the ownership change limitations set forth under Internal Revenue Code Sections 382. Certain of the aforementioned amounts have not been recognized because they relate to excess stock based compensation. At March 28, 2015, $1.5 million of the federal net operating loss carry-forwards, $4.0 million of the state net operating loss carry-forwards, none of the federal tax credit carry-forwards and none of the state tax credit carry-forwards relate to excess stock based compensation tax deductions for which the benefit will be recorded to additional paid-in capital when recognized. The federal and state net operating losses begin to expire in 2022 and 2019, respectively. The federal and state tax credits begin to expire in 2023 and 2025, respectively. | |||||||||||||||||||||
As of March 28, 2015, we have foreign net operating losses of approximately $6.6 million that are available to reduce future income. Substantially all of our foreign net operating loss carry-forwards have unlimited carryover periods. | |||||||||||||||||||||
Income taxes have not been provided on the undistributed earnings of foreign subsidiaries of approximately $300.2 million, because such earnings are considered to be indefinitely reinvested in the business. The accumulated earnings in the foreign subsidiaries are primarily utilized to fund working capital requirements as our subsidiaries continue to expand their operations, to service existing debt obligations and to fund future foreign acquisitions. We do not believe it is practicable to estimate the amount of income taxes payable on the earnings that are indefinitely reinvested in foreign operations. | |||||||||||||||||||||
The income tax provision from operations differs from tax provision computed at the 35.0% U.S. federal statutory income tax rate due to the following: | |||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Tax at federal statutory rate | $ | 10,907 | 35 | % | $ | 12,739 | 35 | % | $ | 17,464 | 35 | % | |||||||||
Domestic manufacturing deduction | — | — | % | — | — | % | (504 | ) | (1.0 | )% | |||||||||||
Difference between U.S. and foreign tax | (6,929 | ) | (22.2 | )% | (10,846 | ) | (29.8 | )% | (5,584 | ) | (11.2 | )% | |||||||||
State income taxes net of federal benefit | (818 | ) | (2.6 | )% | (252 | ) | (0.7 | )% | 718 | 1.4 | % | ||||||||||
Change in uncertain tax positions | (1,762 | ) | (5.7 | )% | (1,678 | ) | (4.6 | )% | (580 | ) | (1.2 | )% | |||||||||
Intercompany loan deduction | — | — | % | (2,185 | ) | (6.0 | )% | — | — | % | |||||||||||
Non-deductible expenses | 1,237 | 4 | % | 1,035 | 2.8 | % | 1,178 | 2.4 | % | ||||||||||||
Research credits | (1,000 | ) | (3.2 | )% | (688 | ) | (1.9 | )% | (799 | ) | (1.6 | )% | |||||||||
Naked Credit | 3,826 | 12.3 | % | — | — | % | — | — | % | ||||||||||||
Valuation allowance | 8,524 | 27.4 | % | 2,400 | 6.6 | % | — | — | % | ||||||||||||
Other, net | 283 | 0.8 | % | 728 | 2 | % | (796 | ) | (1.6 | )% | |||||||||||
Income tax provision | $ | 14,268 | 45.8 | % | $ | 1,253 | 3.4 | % | $ | 11,097 | 22.2 | % | |||||||||
Unrecognized Tax Benefits | |||||||||||||||||||||
Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of March 28, 2015, we had $7.1 million of unrecognized tax benefits, of which $2.0 million would impact the effective tax rate, if recognized. As of March 29, 2014, we had $5.6 million of unrecognized tax benefits, all of which would impact the effective tax rate, if recognized. At March 30, 2013, we had $6.9 million of unrecognized tax benefits, of which $6.7 million would impact the effective tax rate, if recognized. | |||||||||||||||||||||
During the fiscal year ended March 28, 2015 our unrecognized tax benefits were increased by $1.5 million due primarily to tax reserve increases for prior year additions, partially offset by the release of certain previously established reserves in connection with the closure of tax statutes of limitations. | |||||||||||||||||||||
The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal years ended March 28, 2015, March 29, 2014 and March 30, 2013: | |||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Beginning Balance | $ | 5,604 | $ | 6,930 | $ | 6,885 | |||||||||||||||
Additions based upon positions related to the current year | — | — | 1,192 | ||||||||||||||||||
Additions for tax positions of prior years | 3,234 | 990 | 18 | ||||||||||||||||||
Settlements with taxing authorities | (338 | ) | — | (80 | ) | ||||||||||||||||
Closure of statute of limitations | (1,430 | ) | (2,316 | ) | (1,085 | ) | |||||||||||||||
Ending Balance | $ | 7,070 | $ | 5,604 | $ | 6,930 | |||||||||||||||
As of March 28, 2015 we anticipate that the liability for unrecognized tax benefits for uncertain tax positions could change by up to $0.9 million in the next twelve months, as a result of closure of various statutes of limitations. | |||||||||||||||||||||
Our historic practice has been and continues to be to recognize interest and penalties related to Federal, state and foreign income tax matters in income tax expense. Approximately $0.7 million and $0.8 million of gross interest and penalties were accrued at March 28, 2015 and March 29, 2014, respectively and is not included in the amounts above. There was a benefit included in tax expense of $0.3 million, zero and $0.1 million for the periods ended March 28, 2015, March 29, 2014 and March 30, 2013, respectively. | |||||||||||||||||||||
We conduct business globally and, as a result, file consolidated and separate Federal, state and foreign income tax returns in multiple jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. With a few exceptions overseas, we are no longer subject to U.S. federal, state and local, or foreign income tax examinations for years before 2012. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended | |||
Mar. 28, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES | |||
We lease facilities and certain equipment under operating leases expiring at various dates through fiscal 2028. Facility leases require us to pay certain insurance expenses, maintenance costs and real estate taxes. | ||||
Approximate future basic rental commitments under operating leases as of March 28, 2015 are as follows (in thousands): | ||||
Fiscal Year Ending | ||||
(In thousands) | ||||
2016 | $ | 6,797 | ||
2017 | 4,780 | |||
2018 | 3,758 | |||
2019 | 2,427 | |||
2020 and thereafter | 11,585 | |||
$ | 29,347 | |||
Rent expense in fiscal 2015, 2014, and 2013 was $6.3 million, $7.7 million and $7.0 million, respectively. Some of the Company's operating leases include renewal provisions, escalation clauses and options to purchase the facilities that we lease. | ||||
We are presently engaged in various legal actions, and although our ultimate liability cannot be determined at the present time, we believe, based on consultation with counsel, that any such liability will not materially affect our consolidated financial position or our results of operations. | ||||
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 March 28, 2015, the total amount of damages claimed by the plaintiffs in these matters is approximately $3.7 million; however, it is not possible at this point in the proceedings to accurately evaluate the likelihood or amount of any potential losses. We may receive other similar claims in the future. |
CAPITAL_STOCK
CAPITAL STOCK | 12 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Capital Stock [Abstract] | ||||||||||||||
CAPITAL STOCK | CAPITAL STOCK | |||||||||||||
Stock Plans | ||||||||||||||
The 2005 Long-Term Incentive Compensation Plan (the “2005 Incentive Compensation Plan”) permits the award of non-qualified stock options, incentive stock options, stock appreciation rights, restricted stock, deferred stock/restricted stock units, other stock units and performance shares to the Company’s key employees, officers and directors. The 2005 Incentive Compensation Plan is administered by the Compensation Committee of the Board of Directors (the “Committee”) consisting of three independent members of our Board of Directors. | ||||||||||||||
The maximum number of shares available for award under the 2005 Incentive Compensation Plan is 15,024,920. The maximum number of shares that may be issued pursuant to incentive stock options may not exceed 500,000. Any shares that are subject to the award of stock options shall be counted against this limit as one (1) share for every one (1) share issued. Any shares that are subject to awards other than stock options shall be counted against this limit as 3.26 shares for every one (1) share granted. | ||||||||||||||
Each award has different terms under the 2005 Incentive Compensation Plan. Options, Restricted Stock Awards and Restricted Stock Units become exercisable, or in the case of restricted stock, the resale restrictions are released in a manner determined by the Committee, generally over a four year period for employees and one year from grant for non-employee directors, and all options expire not more than 7 years from the date of the grant. The exercise price for options granted under the 2005 Incentive Compensation Plan is determined by the Committee, but in no event shall such exercise price be less than the fair market value of the common stock at the time of the grant. Holders of market stock units are eligible to receive a share of Haemonetics’ stock for each market stock unit based on the performance of the stock through March 31, 2017. If our stock is below a minimum threshold price of $50 per share during the relevant measurement period, the holders receive no market share units. If the stock achieves certain price levels, the holders are eligible to receive up to three times the “target” amount of market share units. As a result, we may issue up to 863,046 shares at a stock price of $85 per share or higher in connection with these grants. | ||||||||||||||
At March 28, 2015, there were outstanding options to purchase 3,761,666 shares, 357,547 shares of restricted stock outstanding and 287,682 market stock units outstanding under this plan and 999,243 shares available for future grant. | ||||||||||||||
The Company had a long-term incentive stock option plan and a non-qualified stock option plan, (the “2000 Long-term Incentive Plan”) which permitted the issuance of a maximum of 7,000,000 shares of our common stock pursuant to incentive and non-qualified stock options granted to key employees, officers and directors. The plan was terminated in connection with the adoption of the 2005 Incentive Compensation Plan. The remaining 55,750 options outstanding under this plan were exercised in fiscal 2015 and no further options will be granted under this plan. | ||||||||||||||
The Company has an Employee Stock Purchase Plan (the “Purchase Plan”) under which a maximum of 1,400,000 shares (subject to adjustment for stock splits and similar changes) of common stock may be purchased by eligible employees. Substantially all of our full-time employees are eligible to participate in the Purchase Plan. | ||||||||||||||
The Purchase Plan provides for two “purchase periods” within each of our fiscal years, the first commencing on November 1 of each year and continuing through April 30 of the next calendar year, and the second commencing on May 1 of each year and continuing through October 31 of such year. Shares are purchased through an accumulation of payroll deductions (of not less than 2% or more than 15% of compensation, as defined) for the number of whole shares determined by dividing the balance in the employee’s account on the last day of the purchase period by the purchase price per share for the stock determined under the Purchase Plan. The purchase price for shares is the lower of 85% of the fair market value of the common stock at the beginning of the purchase period, or 85% of such value at the end of the purchase period. | ||||||||||||||
Stock-based compensation expense of $14.1 million, $13.1 million, and $11.0 million was recognized under ASC Topic 718, Compensation — Stock Compensation, for the fiscal year ended March 28, 2015, March 29, 2014, and March 30, 2013, respectively. The related income tax benefit recognized was $4.5 million, $4.3 million, and $3.5 million for the fiscal year ended March 28, 2015, March 29, 2014, and March 30, 2013, respectively. We recognize stock-based compensation on a straight line basis. | ||||||||||||||
ASC Topic 718 requires that cash flows relating to the benefits of tax deductions in excess of stock compensation cost recognized be reported as a financing cash flow, rather than as an operating cash flow. This excess tax benefit was $1.6 million, $2.4 million, and $4.1 million for the fiscal year ended March 28, 2015, March 29, 2014, and March 30, 2013, respectively. | ||||||||||||||
Stock Options | ||||||||||||||
A summary of stock option activity for the fiscal year ended March 28, 2015 is as follows: | ||||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Outstanding | Average | Average | Intrinsic | |||||||||||
(shares) | Exercise Price | Remaining | Value | |||||||||||
per Share | Life (years) | ($000’s) | ||||||||||||
Outstanding at March 29, 2014 | 3,834,372 | $ | 32.93 | 4.19 | $ | 9,436 | ||||||||
Granted | 592,024 | 34.87 | ||||||||||||
Exercised | (500,103 | ) | 26.14 | |||||||||||
Forfeited | (164,627 | ) | 38.13 | |||||||||||
Outstanding at March 28, 2015 | 3,761,666 | $ | 33.9 | 4.02 | $ | 37,067 | ||||||||
Exercisable at March 28, 2015 | 2,281,022 | $ | 31.57 | 2.92 | $ | 27,826 | ||||||||
Vested or expected to vest at March 28, 2015 | 3,596,493 | $ | 33.73 | 3.93 | $ | 36,066 | ||||||||
The total intrinsic value of options exercised was $5.6 million, $11.7 million, and $20.9 million during fiscal 2015, 2014, and 2013, respectively. | ||||||||||||||
As of March 28, 2015, there was $9.2 million of total unrecognized compensation cost related to non-vested stock options. This cost is expected to be recognized over a weighted average period of 2.37 years. | ||||||||||||||
The fair value was estimated using the Black-Scholes option-pricing model based on the weighted average of the high and low stock prices at the grant date and the weighted average assumptions specific to the underlying options. Expected volatility assumptions are based on the historical volatility of our common stock. The risk-free interest rate was selected based upon yields of U.S. Treasury issues with a term equal to the expected life of the option being valued. The expected life of the option was estimated with reference to historical exercise patterns, the contractual term of the option and the vesting period. | ||||||||||||||
The assumptions utilized for option grants during the periods presented are as follows: | ||||||||||||||
March 28, | March 29, | March 30, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Volatility | 22.5 | % | 24.8 | % | 26.4 | % | ||||||||
Expected life (years) | 4.9 | 4.9 | 4.9 | |||||||||||
Risk-free interest rate | 1.5 | % | 1.3 | % | 0.8 | % | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
The weighted average grant date fair value of options to purchase one share granted during 2015, 2014, and 2013 was approximately $7.91, $10.15, and $9.76, respectively. | ||||||||||||||
We have applied, based on an analysis of our historical forfeitures, an annual forfeiture rate of 8% to all unvested stock options as of March 28, 2015 and March 29, 2014, which represents the portion that we expect will be forfeited each year over the vesting period. | ||||||||||||||
Employee Stock Purchase Plan | ||||||||||||||
The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions: | ||||||||||||||
March 28, | March 29, | March 30, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Volatility | 23.7 | % | 22.9 | % | 24.9 | % | ||||||||
Expected life (months) | 6 | 6 | 6 | |||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | ||||||||
The weighted average grant date fair value of the six-month option inherent in the Purchase Plan was approximately $7.09, $8.25, and $8.50 during fiscal 2015, 2014, and 2013, respectively. | ||||||||||||||
Performance Stock Units, Restricted Stock Units and Market Stock Units | ||||||||||||||
On October 22, 2014, the Company issued a new type of equity award under its 2005 Incentive Compensation Plan, Performance Share Units, with a target award level of 129,130 shares for 14 senior executives. | ||||||||||||||
The value of these Performance Share Units is based upon the Company’s total shareholder return for the period from October 1, 2014 to their vesting date of September 30, 2017 relative to the total shareholder return of the companies comprising the Standard & Poor's Health Care Equipment Index (the "Index"). These awards are conditioned upon the employees’ continued employment with the Company through the vesting date. If an employee is no longer employed by the Company at the vesting date as a result of a Qualifying Retirement, then the continued employment requirement shall cease to apply and prorated shares awarded will be determined as of the vesting date. | ||||||||||||||
Total shareholder return is equal to the appreciation of the share price during a performance period, plus any dividends paid on the applicable company’s common stock. Relative total shareholder return compares the company's total shareholder return to the Index. | ||||||||||||||
The actual number of shares awarded under a Performance Share Unit may range from 0% to a maximum of 200% of the target award depending upon the Company’s relative total shareholder return. If the Company’s total shareholder return for the performance period is negative, then any share payout will be capped at 100% of the target award, regardless of the Company's performance relative to the Index. | ||||||||||||||
Grant date fair values for the Performance Share Units were estimated using a Monte Carlo Simulation of the Company's and the Index's stock price correlation over three-year time horizons matching the Performance Share Units performance period with a risk free rate of 0.78%, volatility of 20% and 12 months of dividend history. | ||||||||||||||
The estimated fair value, potential shares to be awarded, recognized compensation expense and future compensation expense to be recognized, including estimated forfeitures, for Performance Share Unit awards are as follows: | ||||||||||||||
For Year Ended March 28, 2015 | ||||||||||||||
Performance Period | Award Fair Value as of October 22, 2014 | Recognized Compensation Expense | Unrecognized Compensation Expense | Minimum Shares | Target Shares | Maximum Shares | ||||||||
(Per share) | (In thousands) | (In thousands) | ||||||||||||
Oct 1, 2014 - Sept 30, 2017 | $ | 35.09 | $ | 662 | $ | 3,869 | — | 129,130 | 258,260 | |||||
As of March 28, 2015, there were 287,682 market stock units outstanding. We determined the fair value of each market stock unit to be $37.42, utilizing a Monte Carlo simulation model based on an expected term of 3.7 years, a risk free rate of 0.9%, volatility of 20% and no dividends. The grant date fair value of these awards totaled $11.2 million and will be expensed evenly over the 3.7 year period through the cliff-vesting date of March 31, 2017. | ||||||||||||||
As of March 28, 2015, there was $13.2 million of total unrecognized compensation cost related to non-vested restricted stock units and market stock units. This cost is expected to be recognized over a weighted average period of 2.37 years. | ||||||||||||||
A summary of performance stock units, restricted stock units and market stock units activity for the fiscal year ended March 28, 2015 is as follows: | ||||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Market Value | ||||||||||||||
at Grant Date | ||||||||||||||
Unvested at March 29, 2014 | 599,673 | $ | 37.7 | |||||||||||
Awarded | 351,666 | $ | 35.18 | |||||||||||
Released | (110,048 | ) | $ | 36.65 | ||||||||||
Forfeited | (66,932 | ) | $ | 37.83 | ||||||||||
Unvested at March 28, 2015 | 774,359 | $ | 36.7 | |||||||||||
EARNINGS_PER_SHARE_EPS
EARNINGS PER SHARE ("EPS") | 12 Months Ended | |||||||||||
Mar. 28, 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. Basic EPS is computed by dividing net income by weighted average shares outstanding. Diluted EPS includes the effect of potentially dilutive common shares. The common stock weighted average number of shares has been retroactively adjusted for the stock split. | ||||||||||||
(In thousands, except per share amounts) | March 28, | March 29, | March 30, | |||||||||
2015 | 2014 | 2013 | ||||||||||
Basic EPS | ||||||||||||
Net income | $ | 16,897 | $ | 35,148 | $ | 38,800 | ||||||
Weighted average shares | 51,533 | 51,611 | 51,349 | |||||||||
Basic income per share | $ | 0.33 | $ | 0.68 | $ | 0.76 | ||||||
Diluted EPS | ||||||||||||
Net income | $ | 16,897 | $ | 35,148 | $ | 38,800 | ||||||
Basic weighted average shares | 51,533 | 51,611 | 51,349 | |||||||||
Net effect of common stock equivalents | 556 | 766 | 910 | |||||||||
Diluted weighted average shares | 52,089 | 52,377 | 52,259 | |||||||||
Diluted income per share | $ | 0.32 | $ | 0.67 | $ | 0.74 | ||||||
Weighted average shares outstanding, assuming dilution, excludes the impact of 1.6 million, 1.1 million and 0.5 million stock options for fiscal years 2015, 2014 and 2013, respectively, because these securities were anti-dilutive during the noted periods. |
PROPERTY_PLANT_AND_EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT | ||||||||
Property and equipment consisted of the following: | |||||||||
(In thousands) | 28-Mar-15 | March 29, 2014 | |||||||
Land | $ | 9,468 | $ | 7,168 | |||||
Building and building improvements | 118,384 | 83,439 | |||||||
Plant equipment and machinery | 220,793 | 236,539 | |||||||
Office equipment and information technology | 118,810 | 111,925 | |||||||
Haemonetics equipment | 264,307 | 262,784 | |||||||
Total | 731,762 | 701,855 | |||||||
Less: accumulated depreciation and amortization | (409,814 | ) | (430,418 | ) | |||||
Property, plant and equipment, net | $ | 321,948 | $ | 271,437 | |||||
Depreciation expense was $52.6 million, $52.6 million, and $43.4 million for fiscal 2015, 2014, and 2013, respectively. |
RETIREMENT_PLANS
RETIREMENT PLANS | 12 Months Ended | |||||||||||
Mar. 28, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
RETIREMENT PLANS | RETIREMENT PLANS | |||||||||||
Defined Contribution Plans | ||||||||||||
We have a Savings Plus Plan that is a 401(k) plan that allows our U.S. employees to accumulate savings on a pre-tax basis. In addition, matching contributions are made to the Plan based upon pre-established rates. Our matching contributions amounted to approximately $5.8 million in 2015, $6.2 million in 2014, and $4.9 million in 2013. Upon Board approval, additional discretionary contributions can also be made. No discretionary contributions were made for the Savings Plan in fiscal 2015, 2014, or 2013. | ||||||||||||
Some of our subsidiaries also have defined contribution plans, to which both the employee and the employer make contributions. The employer contributions to these plans totaled $1.0 million, $0.8 million, and $2.4 million in fiscal 2015, 2014, and 2013, respectively. | ||||||||||||
Defined Benefit Plans | ||||||||||||
ASC Topic 715, Compensation — Retirement Benefits, requires an employer to: (a) recognize in its statement of financial position an asset for a plan’s over-funded status or a liability for a plan’s under-funded status; (b) measure a plan’s assets and its obligations that determine its funded status as of the end of the employer’s fiscal year (with limited exceptions); and (c) recognize changes in the funded status of a defined benefit post retirement plan in the year in which the changes occur. Accordingly, the Company is required to report changes in its funded status in comprehensive income on its Statement of Stockholders’ Equity and Comprehensive Income. | ||||||||||||
Benefits under these plans are generally based on either career average or final average salaries and creditable years of service as defined in the plans. The annual cost for these plans is determined using the projected unit credit actuarial cost method that includes actuarial assumptions and estimates which are subject to change. | ||||||||||||
Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components: | ||||||||||||
(In thousands) | March 28, | March 29, | March 30, | |||||||||
2015 | 2014 | 2013 | ||||||||||
Service cost | $ | 2,979 | $ | 3,351 | $ | 2,759 | ||||||
Interest cost on benefit obligation | 686 | 623 | 639 | |||||||||
Expected (return)/loss on plan assets | (449 | ) | (435 | ) | (413 | ) | ||||||
Actuarial loss/(gain) | 107 | 88 | 196 | |||||||||
Amortization of unrecognized prior service cost | (29 | ) | 182 | (14 | ) | |||||||
Amortization of unrecognized transition obligation | 45 | 47 | 48 | |||||||||
Totals | $ | 3,339 | $ | 3,856 | $ | 3,215 | ||||||
The activity under those defined benefit plans are as follows: | ||||||||||||
(In thousands) | March 28, | March 29, | ||||||||||
2015 | 2014 | |||||||||||
Change in Benefit Obligation: | ||||||||||||
Benefit Obligation, beginning of year | $ | (32,621 | ) | $ | (30,126 | ) | ||||||
Service cost | (2,979 | ) | (3,351 | ) | ||||||||
Interest cost | (686 | ) | (623 | ) | ||||||||
Benefits paid | 4,902 | 4,474 | ||||||||||
Actuarial (loss)/gain | (6,883 | ) | 55 | |||||||||
Employee and plan participants contribution | (2,978 | ) | (2,963 | ) | ||||||||
Plan Amendments | 114 | 419 | ||||||||||
Foreign currency changes | 564 | (506 | ) | |||||||||
Benefit obligation, end of year | $ | (40,567 | ) | $ | (32,621 | ) | ||||||
Change in Plan Assets: | ||||||||||||
Fair value of plan assets, beginning of year | $ | 19,981 | $ | 19,577 | ||||||||
Company contributions | 2,112 | 2,241 | ||||||||||
Benefits paid | (4,621 | ) | (4,641 | ) | ||||||||
Gain/(Loss) on plan assets | 506 | 100 | ||||||||||
Employee and plan participants contributions | 2,851 | 3,087 | ||||||||||
Foreign currency changes | 2,336 | (383 | ) | |||||||||
Fair value of Plan Assets, end of year | $ | 23,165 | $ | 19,981 | ||||||||
Funded Status | $ | (17,402 | ) | $ | (12,640 | ) | ||||||
Unrecognized net actuarial loss/(gain) | 11,096 | 5,899 | ||||||||||
Unrecognized initial obligation | 64 | 94 | ||||||||||
Unrecognized prior service cost | (459 | ) | (422 | ) | ||||||||
Net amount recognized | $ | (6,701 | ) | $ | (7,069 | ) | ||||||
One of the benefit plans is funded by benefit payments made by the Company. Accordingly that plan has no assets included in the information presented above. The total liability for this plan was $9.2 million and $7.4 million as of March 28, 2015 and March 29, 2014, respectively. | ||||||||||||
The accumulated benefit obligation for all plans was $34.9 million and $30.9 million for the fiscal year ended March 28, 2015 and March 29, 2014, respectively. | ||||||||||||
The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the pension plans with an accumulated benefit obligation in excess of plan assets were $40.6 million, $34.9 million and $23.2 million, respectively, as of March 28, 2015 and $32.6 million, $30.9 million and $20.0 million, respectively, as of March 29, 2014. There were no plans where the plan assets were greater than the accumulated benefit obligation as of March 28, 2015 and March 29, 2014. | ||||||||||||
The components of the change recorded in our accumulated other comprehensive income related to our defined benefit plans, net of tax, are as follows (in thousands): | ||||||||||||
Balance, March 31, 2012 | $ | (4,253 | ) | |||||||||
Obligation at transition | 556 | |||||||||||
Actuarial loss | (1,237 | ) | ||||||||||
Prior service cost | (139 | ) | ||||||||||
Balance as of March 30, 2013 | $ | (5,073 | ) | |||||||||
Obligation at transition | 172 | |||||||||||
Actuarial loss | (129 | ) | ||||||||||
Prior service cost | 438 | |||||||||||
Balance as of March 29, 2014 | $ | (4,592 | ) | |||||||||
Obligation at transition | (19 | ) | ||||||||||
Actuarial loss | (6,198 | ) | ||||||||||
Prior service cost | 1,886 | |||||||||||
Balance as of March 28, 2015 | $ | (8,923 | ) | |||||||||
We expect to amortize $0.6 million from accumulated other comprehensive loss during 2016. | ||||||||||||
The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows: | ||||||||||||
March 28, | March 29, | March 30, | ||||||||||
2015 | 2014 | 2013 | ||||||||||
Discount rate | 0.93 | % | 2.02 | % | 1.97 | % | ||||||
Rate of increased salary levels | 1.65 | % | 1.57 | % | 1.42 | % | ||||||
Expected long-term rate of return on assets | 1.68 | % | 1.94 | % | 1.92 | % | ||||||
Assumptions for expected long-term rate of return on plan assets are based upon actual historical returns, future expectations of returns for each asset class and the effect of periodic target asset allocation rebalancing. The results are adjusted for the payment of reasonable expenses of the plan from plan assets. | ||||||||||||
We have no other material obligation for post-retirement or post-employment benefits. | ||||||||||||
Our investment policy for pension plans is to balance risk and return through a diversified portfolio to reduce interest rate and market risk. Maturities are managed so that sufficient liquidity exists to meet immediate and future benefit payment requirements. | ||||||||||||
ASC Topic 820, Fair Value Measurements and Disclosures, provides guidance for reporting and measuring the plan assets of our defined benefit pension plan at fair value as of March 28, 2015. Using the same three-level valuation hierarchy for disclosure of fair value measurements as described in Note 7, all of the assets of the Company’s plan are classified within Level 2 of the fair value hierarchy because the plan assets are primarily insurance contracts. | ||||||||||||
Expected benefit payments for both plans are estimated using the same assumptions used in determining the company’s benefit obligation at March 28, 2015. Benefit payments will depend on future employment and compensation levels, average years employed and average life spans, among other factors, and changes in any of these factors could significantly affect these estimated future benefit payments. | ||||||||||||
Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows (in thousands): | ||||||||||||
Expected Benefit Payments | ||||||||||||
Fiscal Year 2016 | $ | 1,735 | ||||||||||
Fiscal Year 2017 | $ | 1,654 | ||||||||||
Fiscal Year 2018 | $ | 1,502 | ||||||||||
Fiscal Year 2019 | $ | 1,610 | ||||||||||
Fiscal Year 2020 | $ | 1,732 | ||||||||||
Fiscal Year 2021-2024 | $ | 7,493 | ||||||||||
The Company's contributions for fiscal 2016 are expected to be consistent with the current year. |
SEGMENT_INFORMATION
SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION | |||||||||||||||||||||||||||
Segment Definition Criteria | ||||||||||||||||||||||||||||
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, North America Blood Center and Hospital, Europe, 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. | ||||||||||||||||||||||||||||
The Company believes aggregating the operating segments noted above is consistent with the key principles of ASC 280, based on the determination that they are economically similar. The Company believes a single reportable segment is consistent with its basic organizational structure and believes aggregation is consistent with its primary basis for decision making and accordingly does not conflict with the basic principles of ASC 280. | ||||||||||||||||||||||||||||
Enterprise Wide Disclosures About Product and Services | ||||||||||||||||||||||||||||
We have four global product families: plasma, blood center, hospital, and software solutions. | ||||||||||||||||||||||||||||
Our products include whole blood disposables, equipment devices and the related disposables used with these devices. Disposables include part of plasma, blood center, and hospital product families. Plasma consists of the disposables used to perform apheresis for the separation of whole blood components and subsequent collection of plasma to be used as a raw material for biologically derived pharmaceuticals. Blood center consists of disposables which separate whole blood for the subsequent collection of platelets, plasma, red cells, or a combination of these components for transfusion to patients as well as disposables for manual whole blood collection. Hospital consists of surgical disposables (principally the Cell Saver® autologous blood recovery system targeted to procedures that involve rapid, high volume blood loss such as cardiovascular surgeries), the OrthoPAT® orthopedic perioperative autotransfusion system designed to operate both during and after surgery to recover and wash the patient’s red cells to prepare them for reinfusion, and diagnostics products (principally the TEG® Thrombelastograph® hemostasis analyzer used to help assess a surgical patient’s hemostasis during and after surgery). | ||||||||||||||||||||||||||||
Software solutions include information technology platforms that assist blood centers, plasma centers, and hospitals to more effectively manage regulatory compliance and operational efficiency. | ||||||||||||||||||||||||||||
Revenues from External Customers: | ||||||||||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||||
Disposable revenues | ||||||||||||||||||||||||||||
Plasma disposables | $ | 319,190 | $ | 291,895 | $ | 268,900 | ||||||||||||||||||||||
Blood center disposables | ||||||||||||||||||||||||||||
Platelet | 152,588 | 156,643 | 169,602 | |||||||||||||||||||||||||
Red cell | 42,700 | 42,378 | 49,733 | |||||||||||||||||||||||||
Whole blood | 143,905 | 190,698 | 138,436 | |||||||||||||||||||||||||
339,193 | 389,719 | 357,771 | ||||||||||||||||||||||||||
Hospital disposables | ||||||||||||||||||||||||||||
Surgical | 62,540 | 66,876 | 73,508 | |||||||||||||||||||||||||
OrthoPAT | 20,316 | 25,042 | 30,230 | |||||||||||||||||||||||||
Diagnostics | 42,187 | 33,302 | 27,356 | |||||||||||||||||||||||||
125,043 | 125,220 | 131,094 | ||||||||||||||||||||||||||
Disposables revenue | 783,426 | 806,834 | 757,765 | |||||||||||||||||||||||||
Software solutions | 72,185 | 70,441 | 69,952 | |||||||||||||||||||||||||
Equipment & other | 54,762 | 61,234 | 64,273 | |||||||||||||||||||||||||
Total revenues | $ | 910,373 | $ | 938,509 | $ | 891,990 | ||||||||||||||||||||||
Enterprise Wide Disclosures About Product and Services | ||||||||||||||||||||||||||||
Year Ended (in thousands) | ||||||||||||||||||||||||||||
March 28, 2015 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 494,788 | $ | 9,617 | $ | 504,405 | $ | 88,298 | $ | 102,095 | $ | 215,575 | $ | 910,373 | ||||||||||||||
Total Assets | $ | 810,159 | $ | 240,610 | $ | 1,050,769 | $ | 41,621 | $ | 79,084 | $ | 313,943 | $ | 1,485,417 | ||||||||||||||
Long-Lived Assets | $ | 532,187 | $ | 212,548 | $ | 744,735 | $ | 9,230 | $ | 46,857 | $ | 114,318 | $ | 915,140 | ||||||||||||||
March 29, 2014 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 500,719 | $ | 9,557 | $ | 510,276 | $ | 108,679 | $ | 94,762 | $ | 224,792 | $ | 938,509 | ||||||||||||||
Total Assets | $ | 810,409 | $ | 225,998 | $ | 1,036,407 | $ | 53,207 | $ | 53,055 | $ | 371,509 | $ | 1,514,178 | ||||||||||||||
Long-Lived Assets | $ | 519,396 | $ | 211,624 | $ | 731,020 | $ | 11,522 | $ | 17,269 | $ | 131,391 | $ | 891,202 | ||||||||||||||
March 30, 2013 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 454,874 | $ | 6,851 | $ | 461,725 | $ | 120,726 | $ | 84,860 | $ | 224,679 | $ | 891,990 | ||||||||||||||
Total Assets | $ | 830,754 | $ | 225,849 | $ | 1,056,603 | $ | 44,189 | $ | 41,037 | $ | 320,088 | $ | 1,461,917 | ||||||||||||||
Long-Lived Assets | $ | 503,606 | $ | 209,439 | $ | 713,045 | $ | 12,977 | $ | 8,076 | $ | 117,717 | $ | 851,815 | ||||||||||||||
The Long-Lived Assets reported above include Goodwill, Intangibles and Net Property, Plant and Equipment. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended | |||||||||||||||||||
Mar. 28, 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. From these reviews we identify opportunities to improve efficiencies, enhance commercial capabilities, better align our resources and offer customers better comprehensive solutions. In order to realize these opportunities, from time to time, we undertake restructuring and other initiatives to transform our business. | ||||||||||||||||||||
On May 1, 2013, we 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 will take place over three years and includes changes to the current manufacturing footprint and supply chain structure (the "Network Plan"). To implement the Network Plan, we are (i) discontinuing manufacturing activities at our Braintree, Massachusetts, Ascoli-Piceno, Italy and Bothwell, Scotland facilities, (ii) creating a technology center of excellence for product development in Braintree, Massachusetts, (iii) expanding our current facility in Tijuana, Mexico, (iv) engaging Sanmina Corporation as a contract manufacturer to produce certain medical equipment, and (v) building a new manufacturing facility in Penang, Malaysia closer to our customers in Asia. See liquidity and capital resources discussion of this MD&A for further discussion of the costs of these activities. | ||||||||||||||||||||
We estimate we will incur approximately $45.0 million of restructuring and restructuring related expense and spend approximately $27.0 million to complete these initiatives in fiscal 2016. | ||||||||||||||||||||
For the year ended March 28, 2015, we incurred $36.9 million of restructuring and restructuring related charges and paid approximately $42.3 million with approximately $13.3 million payable within the next twelve months. The substantial majority of restructuring expenses have been included as a component of selling, general and administrative expense in the accompanying consolidated statements of income and comprehensive income. | ||||||||||||||||||||
The following summarizes the restructuring activity for the fiscal year ended March 28, 2015, March 29, 2014, and March 30, 2013, respectively: | ||||||||||||||||||||
(In thousands) | Balance at March 29, 2014 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 28, 2015 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 22,908 | $ | 19,879 | $ | (26,394 | ) | $ | — | $ | 16,393 | |||||||||
Other costs | 728 | 15,362 | (15,871 | ) | — | 219 | ||||||||||||||
Accelerated depreciation | — | 1,326 | — | (1,326 | ) | — | ||||||||||||||
Asset write-down | — | 296 | — | (296 | ) | — | ||||||||||||||
$ | 23,636 | $ | 36,863 | $ | (42,265 | ) | $ | (1,622 | ) | $ | 16,612 | |||||||||
(In thousands) | Balance at March 30, 2013 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 29, 2014 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 31,492 | $ | (11,673 | ) | $ | — | $ | 22,908 | |||||||||
Other costs | 173 | 14,254 | (13,699 | ) | — | 728 | ||||||||||||||
Accelerated depreciation | — | 2,390 | — | (2,390 | ) | — | ||||||||||||||
Asset write down | — | 915 | — | (915 | ) | — | ||||||||||||||
$ | 3,262 | $ | 49,051 | $ | (25,372 | ) | $ | (3,305 | ) | $ | 23,636 | |||||||||
(In thousands) | Balance at March 31, 2012 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 30, 2013 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 1,461 | $ | 6,214 | $ | (4,586 | ) | $ | — | $ | 3,089 | |||||||||
Facility related costs | 533 | 431 | (791 | ) | — | 173 | ||||||||||||||
Asset write down | — | 4,247 | — | (4,247 | ) | — | ||||||||||||||
$ | 1,994 | $ | 10,892 | $ | (5,377 | ) | $ | (4,247 | ) | $ | 3,262 | |||||||||
We deployed significant financial resources for these activities. Many of the activities necessary to complete the VCC initiatives include severance and other costs which qualify as restructuring expenses under ASC 420, Exit or Disposal Cost Obligations. We incurred $36.9 million in severance, asset write-offs and other restructuring charges in fiscal 2015. In addition, we also incurred $29.9 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, integration and product line transfer teams, infrastructure related costs, accelerated depreciation and asset disposals. | ||||||||||||||||||||
The table below presents restructuring and transformation costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and other (expense) income, net in our statements of income and comprehensive income for the periods presented. In fiscal 2015 and 2014, Transformation Costs were primarily related to our VCC initiatives. In fiscal 2013, the majority of our Transformation Costs were related to the integration of the whole blood acquisition. | ||||||||||||||||||||
Transformation costs | ||||||||||||||||||||
(in thousands) | March 28, 2015 | March 29, 2014 | March 30, 2013 | |||||||||||||||||
Integration and other costs | $ | 24,061 | $ | 30,701 | $ | 60,878 | ||||||||||||||
Accelerated depreciation | 930 | 4,203 | 687 | |||||||||||||||||
Asset disposal | 4,925 | 796 | — | |||||||||||||||||
Total | $ | 29,916 | $ | 35,700 | $ | 61,565 | ||||||||||||||
Restructuring costs | ||||||||||||||||||||
(in thousands) | March 28, 2015 | March 29, 2014 | March 30, 2013 | |||||||||||||||||
Severance and other employee costs | $ | 19,879 | $ | 31,492 | $ | 6,214 | ||||||||||||||
Other costs | 15,362 | 14,254 | 431 | |||||||||||||||||
Accelerated depreciation | 1,326 | 2,390 | — | |||||||||||||||||
Asset disposal | 296 | 915 | 4,247 | |||||||||||||||||
Total | $ | 36,863 | $ | 49,051 | $ | 10,892 | ||||||||||||||
Total restructuring and transformation | $ | 66,779 | $ | 84,751 | $ | 72,457 | ||||||||||||||
CAPITALIZATION_OF_SOFTWARE_DEV
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | 12 Months Ended |
Mar. 28, 2015 | |
Capitalization of Software and Development Costs [Abstract] | |
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS | CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS |
The cost of software that is developed or obtained for internal use is accounted for pursuant to ASC Topic 350, Intangibles — Goodwill and Other. Pursuant to ASC Topic 350, the Company capitalizes costs incurred during the application development stage of software developed for internal use, and expenses costs incurred during the preliminary project and the post-implementation operation stages of development. The costs capitalized for each project are included in intangible assets in the consolidated financial statements. | |
For costs incurred related to the development of software to be sold, leased, or otherwise marketed, the Company applies the provisions of ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, which specifies that costs incurred internally in researching and developing a computer software product should be charged to expense until technological feasibility has been established for the product. Once technological feasibility is established, all software costs should be capitalized until the product is available for general release to customers. | |
We capitalized $9.5 million and $6.0 million in software development costs for ongoing initiatives during the fiscal years ended March 28, 2015 and March 29, 2014, respectively. At March 28, 2015 and March 29, 2014, we have a total of $39.7 million and $31.7 million of software costs capitalized, of which $7.9 million and $15.6 million are related to in process software development initiatives, respectively. In connection with these development activities, we capitalized interest of $0.2 million and $0.4 million in fiscal 2015 and 2014, respectively. We amortize capitalized costs when the products are released for sale. During fiscal 2015, $15.7 million of capitalized costs were placed into service, compared to $10.4 million of capitalized costs placed into service during fiscal 2014. Amortization of capitalized software development cost expense was $3.2 million, $1.1 million and $0.9 million for fiscal 2015, 2014 and 2013 respectively. |
SUMMARY_OF_QUARTERLY_DATA_UNAU
SUMMARY OF QUARTERLY DATA (UNAUDITED) | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
SUMMARY OF QUARTERLY DATA (UNAUDITED) | SUMMARY OF QUARTERLY DATA (UNAUDITED) | ||||||||||||||||
(In thousands) | Three months ended | ||||||||||||||||
Fiscal 2015 | June 28, | September 27, | December 27, | March 28, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Net revenues | $ | 224,488 | $ | 227,580 | $ | 231,827 | $ | 226,478 | |||||||||
Gross profit | $ | 106,278 | $ | 108,114 | $ | 111,661 | $ | 108,365 | |||||||||
Operating (loss) income | $ | (1,666 | ) | $ | 12,407 | $ | 18,260 | $ | 11,539 | ||||||||
Net (loss) income | $ | (3,649 | ) | $ | 7,487 | $ | 15,988 | $ | (2,929 | ) | |||||||
Per share data: | |||||||||||||||||
Net (loss) Income: | |||||||||||||||||
Basic | $ | (0.07 | ) | $ | 0.15 | $ | 0.31 | $ | (0.06 | ) | |||||||
Diluted | $ | (0.07 | ) | $ | 0.14 | $ | 0.31 | $ | (0.06 | ) | |||||||
Three months ended | |||||||||||||||||
Fiscal 2014 | June 29, | September 28, | December 28, | March 29, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenues | $ | 219,543 | $ | 235,755 | $ | 242,120 | $ | 241,091 | |||||||||
Gross profit | $ | 111,412 | $ | 119,884 | $ | 121,629 | $ | 115,440 | |||||||||
Operating (loss) income | $ | (6,608 | ) | $ | 23,120 | $ | 17,554 | $ | 12,366 | ||||||||
Net (loss) income | $ | (7,874 | ) | $ | 16,548 | $ | 16,290 | $ | 10,184 | ||||||||
Per share data: | |||||||||||||||||
Net (loss) Income: | |||||||||||||||||
Basic | $ | (0.15 | ) | $ | 0.32 | $ | 0.31 | $ | 0.2 | ||||||||
Diluted | $ | (0.15 | ) | $ | 0.32 | $ | 0.31 | $ | 0.19 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE INCOME | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Stockholders' Equity Note [Abstract] | |||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE INCOME | ACCUMULATED OTHER COMPREHENSIVE INCOME | ||||||||||||||||
The following is a roll-forward of the components of Accumulated Other Comprehensive Income, net of tax, for the years ended March 28, 2015 and March 29, 2014: | |||||||||||||||||
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain/loss on Derivatives | Total | |||||||||||||
Balance as of March 30, 2013 | $ | 4,133 | $ | (5,073 | ) | $ | 6,373 | $ | 5,433 | ||||||||
Other comprehensive (loss)/income before reclassifications | (935 | ) | 223 | 5,001 | 4,289 | ||||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | 258 | (8,570 | ) | (8,312 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (935 | ) | 481 | (3,569 | ) | (4,023 | ) | ||||||||||
Balance as of March 29, 2014 | $ | 3,198 | $ | (4,592 | ) | $ | 2,804 | $ | 1,410 | ||||||||
Other comprehensive (loss)/income before reclassifications | (23,710 | ) | (4,410 | ) | 11,371 | (16,749 | ) | ||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | 79 | (6,464 | ) | (6,385 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (23,710 | ) | (4,331 | ) | 4,907 | (23,134 | ) | ||||||||||
Balance as of March 28, 2015 | $ | (20,512 | ) | $ | (8,923 | ) | $ | 7,711 | $ | (21,724 | ) | ||||||
The details about the amount reclassified from Accumulated Other Comprehensive Income for the years ended March 28, 2015 and March 29, 2014 are as follows: | |||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | Year ended March 28, 2015 | Year ended March 29, 2014 | |||||||||||||||
Realized net gain on derivatives | $ | 6,736 | $ | 8,960 | Revenue, cost of goods sold, other income | ||||||||||||
Income tax effect | (272 | ) | (390 | ) | Provision for income taxes | ||||||||||||
Net of taxes | $ | 6,464 | $ | 8,570 | |||||||||||||
Pension items reclassified to income statement | |||||||||||||||||
Realized net loss on pension assets | $ | 123 | $ | 317 | Other income | ||||||||||||
Income tax effect | (44 | ) | (59 | ) | Provision for income taxes | ||||||||||||
Net of taxes | $ | 79 | $ | 258 | |||||||||||||
VALUATION_AND_QUALIFYING_ACCOU
VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended | |||||||||||||||
Mar. 28, 2015 | ||||||||||||||||
Valuation and Qualifying Accounts [Abstract] | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II | |||||||||||||||
HAEMONETICS CORPORATION | ||||||||||||||||
VALUATION AND QUALIFYING ACCOUNTS | ||||||||||||||||
(In thousands) | Balance at | Charged to | Write-Offs | Balance at End | ||||||||||||
Beginning of | Costs and | (Net of Recoveries) | of Fiscal Year | |||||||||||||
Fiscal Year | Expenses | |||||||||||||||
For Year Ended March 28, 2015 | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 1,676 | $ | 399 | $ | (326 | ) | $ | 1,749 | |||||||
For Year Ended March 29, 2014 | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 1,727 | $ | 186 | $ | (237 | ) | $ | 1,676 | |||||||
For Year Ended March 30, 2013 | ||||||||||||||||
Allowance for Doubtful Accounts | $ | 1,480 | $ | 446 | $ | (199 | ) | $ | 1,727 | |||||||
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS (Policies) | 12 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||
Fiscal Year | Our fiscal year ends on the Saturday closest to the last day of March. Fiscal years 2015, 2014 and 2013 each includes 52 weeks with each quarter having 13 weeks. | |||||||
Principles of Consolidation | The accompanying consolidated financial statements include all accounts including those of our subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation. | |||||||
Use of Estimates | The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could vary from the amounts derived from our estimates and assumptions. | |||||||
Reclassifications | Certain reclassifications have been made to prior years' amounts to conform to the current year's presentation. | |||||||
Contingencies | We may become involved in various legal proceedings that arise in the ordinary course of business, including, without limitation, patent infringement, product liability and environmental matters. Accruals recorded for various contingencies including legal proceedings, self-insurance and other claims are based on judgment, the probability of losses and, where applicable, the consideration of opinions of internal and/or external legal counsel and actuarially determined estimates. When a range is established but a best estimate cannot be made, we record the minimum loss contingency amount. These estimates are often initially developed substantially earlier than the ultimate loss is known, and the estimates are reevaluated each accounting period, as additional information is available. When we are initially unable to develop a best estimate of loss, we record the minimum amount of loss, which could be zero. As information becomes known, additional loss provision is recorded when either a best estimate can be made or the minimum loss amount is increased. When events result in an expectation of a more favorable outcome than previously expected, our best estimate is changed to a lower amount. | |||||||
Revenue Recognition | Our revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 605, Revenue Recognition, and ASC Topic 985-605, Software. These standards require that revenues are recognized when persuasive evidence of an arrangement exists, product delivery, including customer acceptance, has occurred or services have been rendered, the price is fixed or determinable and collectability is reasonably assured. We may have multiple contracts with the same customer and each contract is typically treated as a separate arrangement. When more than one element such as equipment, disposables, and services are contained in a single arrangement, we allocate revenue between the elements based on each element’s relative selling price, provided that each element meets the criteria for treatment as a separate unit of accounting. An item is considered a separate unit of accounting if it has value to the customer on a stand-alone basis. The selling price of the undelivered elements is determined by the price charged when the element is sold separately, or in cases when the item is not sold separately, by third-party evidence of selling price or by management's best estimate of selling price. For our software arrangements accounted for under the provisions of ASC 985-605, Software, we establish fair value of undelivered elements based upon vendor specific objective evidence. | |||||||
Product Revenues | Product sales consist of the sale of our disposable blood component collection and processing sets and the related equipment. On product sales to end customers, revenue is recognized when both the title and risk of loss have transferred to the customer as determined by the shipping terms and all obligations have been completed. For product sales to distributors, we recognize revenue for both equipment and disposables upon shipment of these products to our distributors. 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 installation, training and acceptance of the equipment by the end customer. Payments from distributors are not contingent upon resale of the product. | |||||||
Software Revenues | Our software solutions business provides support to our plasma, blood collection and hospital customers. We provide information technology platforms and technical support for donor recruitment, blood and plasma testing laboratories, and for efficient and compliant operations of blood and plasma collection centers. For plasma customers, we also provide information technology platforms for managing distribution of plasma from collection centers to plasma fractionation facilities. For hospitals, we provide solutions to help improve patient safety, reduce cost and ensure compliance. | |||||||
Our software solutions revenues also include revenue from software sales which includes per collection or monthly subscription fees for the license and support of the software as well as hosting services. A significant portion of our software sales are perpetual licenses typically accompanied with significant implementation service fees related to software customization as well as other professional and technical service fees. | ||||||||
We generally recognize revenue from the sale of perpetual licenses on a percentage-of-completion basis which requires us to make reasonable estimates of the extent of progress toward completion of the contract. These arrangements most often include providing customized implementation services to our customer. We also provide other services, including in some instances hosting, technical support, and maintenance, for the payment of periodic, monthly, or quarterly fees. We recognize these fees and charges as earned, typically as these services are provided during the contract period. | ||||||||
Non-Income Taxes | We are required to collect sales or valued added taxes in connection with the sale of certain of our products. We report revenues net of these amounts as they are promptly remitted to the relevant taxing authority. | |||||||
We are also required to pay a medical device excise tax relating to U.S. sales of Class I, II and III medical devices. This excise tax went into effect January 1, 2013, established as part of the March 2010 U.S. healthcare reform legislation, and has been included in selling, general and administrative expenses. | ||||||||
Translation of Foreign Currencies | All assets and liabilities of foreign subsidiaries are translated at the rate of exchange at year-end while sales and expenses are translated at an average rate in effect during the year. The net effect of these translation adjustments is shown in the accompanying financial statements as a component of stockholders' equity. Foreign currency transaction gains and losses, including those resulting from inter-company transactions, are charged directly to earnings and included in other (expense) income, net on the consolidated statements of income. The impact of foreign exchange on long-term intercompany loans, for which repayment has not been scheduled or planned, are recorded in accumulated other comprehensive income on the consolidated balance sheet. | |||||||
Cash and Cash Equivalents | Cash equivalents include various instruments such as money market funds, U.S. government obligations and commercial paper with maturities of three months or less at date of acquisition. Cash and cash equivalents are recorded at cost, which approximates fair market value. As of March 28, 2015, our cash and cash equivalents consisted of investments in United States Government Agency and institutional money market funds. | |||||||
Allowance for Doubtful Accounts | We establish a specific allowance for customers when it is probable that they will not be able to meet their financial obligation. Customer accounts are reviewed individually on a regular basis and appropriate reserves are established as deemed appropriate. We also maintain a general reserve using a percentage that is established based upon the age of our receivables and our collection history. We establish allowances for balances not yet due and past due accounts based on past experience. | |||||||
Property, Plant and Equipment | Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows: | |||||||
Asset Classification | Estimated | |||||||
Useful Lives | ||||||||
Building | 30 Years | |||||||
Building improvements | 5-20 Years | |||||||
Plant equipment and machinery | 3-15 Years | |||||||
Office equipment and information technology | 3-10 Years | |||||||
Haemonetics equipment | 3-7 Years | |||||||
We evaluate the depreciation periods of property, plant and equipment to determine whether events or circumstances warrant revised estimates of useful lives. All property, plant and equipment are also tested for impairment whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. | ||||||||
Our installed base of devices includes devices owned by us and devices sold to the customer. The asset on our balance sheet classified as Haemonetics equipment consists of medical devices installed at customer sites but owned by Haemonetics. Generally the customer has the right to use it for a period of time as long as they meet the conditions we have established, which among other things, generally include one or more of the following: | ||||||||
• | Purchase and consumption of a certain level of disposable products | |||||||
• | Payment of monthly rental fees | |||||||
• | An asset utilization performance metric, such as performing a minimum level of procedures per month per device | |||||||
Consistent with the impairment tests noted below for other intangible assets subject to amortization, we review Haemonetics equipment and their related useful lives at least once a year, or more frequently if certain conditions arise, to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. To conduct these reviews we estimate the future amount and timing of demand for disposables used with these devices, from which we generate revenues. Changes in expected demand can result in additional depreciation expense, which is classified as cost of goods sold. Any significant unanticipated changes in demand could impact the value of our devices and our reported operating results. | ||||||||
Leasehold improvements are depreciated over the lesser of their useful lives or the term of the lease. Maintenance and repairs are generally expensed to operations as incurred. When the repair or maintenance costs significantly extend the life of the asset, these costs may be capitalized. When equipment and improvements are sold or otherwise disposed of, the asset cost and accumulated depreciation are removed from the accounts, and the resulting gain or loss, if any, is included in the statements of income. | ||||||||
Goodwill and Other Intangible Assets | Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. Costs associated with the application and award of patents in the U.S. and various other countries are capitalized and amortized on a straight-line basis over their estimated useful life. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. We amortize our other intangible assets over their estimated useful lives. | |||||||
Goodwill is not amortized. Instead goodwill is reviewed for impairment at least annually in accordance with ASC Topic 350, Intangibles - Goodwill and Other, 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. We first perform a qualitative test and if necessary, perform a quantitative test. | ||||||||
Prior to fiscal 2014, we determined we operated a single operating segment, blood management solutions, based on our chief operating decision maker ("CODM") primarily using consolidated results to make operating and strategic decisions. Our reporting units for purposes of assessing goodwill impairment prior to fiscal 2014 were medical devices and software. During fiscal 2014, our CODM utilized financial results by operating units organized primarily on geography to make operating and strategic decisions due to changes in the composition in the executive staff reporting to the CODM. Based on these changes we determined the five operating units represent operating segments as defined under ASC 280 - Segment Reporting. Following this change, we determined our reporting units for purposes of assessing goodwill impairment by identifying our operating segments and assessing whether segment management regularly reviews the operating results of any components. Through this process, we concluded that our reporting units were the same as our operating segments, which are the following operating units organized based primarily on geography: North America Plasma, North America Blood Center and Hospital, Europe, Asia-Pacific and Japan. During fiscal 2014, goodwill was reallocated from the medical device and software reporting units to the new reporting units based on a relative fair value basis. For fiscal 2015, there were no changes to operating segments or reporting units for purposes of assessing goodwill impairment. | ||||||||
ASC 350, Intangibles - Goodwill and Other defines the fair value of a reporting unit as the price that would be received to sell the unit as a whole in an orderly transaction between market participants at the measurement date. The quantitative test is based on a discounted cash flow analysis or other valuation techniques, such as the market approach, for each reporting unit. The fair values of our reporting units in fiscal 2013 were determined using the income approach. Under the income approach, the fair value of a reporting unit is based on the present value of future cash flows using appropriate discount rates, growth rates, operating margins and future market conditions amongst others. We changed our valuation approach to assessing goodwill impairment in fiscal 2014 in connection with the change in reporting units. In fiscal 2015 and 2014, we determined the fair value of our reporting units based on the market approach. We utilized the market approach as we determined relevant comparable information was available, and accordingly such method was an appropriate alternative to the income method. Under the market approach, we estimate the fair value of our reporting units based on a combination of, a) market multiples of projected earnings before interest, taxes, depreciation and amortization (“EBITDA”) and b) market multiples of projected net revenues for each individual reporting unit. For the market approach, we use judgment in identifying the relevant comparable-company market multiples, such as recent divestitures/acquisitions, facts and circumstances surrounding the market and growth rates. Management assesses the relevance and reliability of the multiples by considering factors unique to its reporting units, including recent operating results, business plans, economic projections, anticipated future cash flows, and other data. EBITDA and revenue multiples can also be significantly impacted by future growth opportunities for the reporting unit as well as for the company itself, general market and geographic sentiment, and pending or recently completed merger transactions. | ||||||||
These tests showed no evidence of impairment to our goodwill for fiscal 2015, 2014 or 2013 and demonstrated that the fair value of each reporting unit exceeded the reporting unit’s carrying value in each period. During March 2014, circumstances arose that indicated a potential impairment. We performed an interim impairment test and noted that the fair value of our reporting units still exceeded their carrying values. | ||||||||
We review intangible assets subject to amortization at least annually or more frequently if certain conditions arise to determine if any adverse conditions exist that would indicate that the carrying value of an asset or asset group may not be recoverable, or that a change in the remaining useful life is required. Conditions indicating that an impairment exists include but are not limited to a change in the competitive landscape, internal decisions to pursue new or different technology strategies, a loss of a significant customer or a significant change in the marketplace including prices paid for our products or the size of the market for our products. During March 2014, circumstances arose that indicated a potential impairment of certain intangible assets subject to amortization. We performed the recoverability test described below for the relevant asset group and determined expected undiscounted cash flows exceeded the carrying value of the asset group. | ||||||||
If an impairment indicator exists, we test the intangible asset for recoverability. For purposes of the recoverability test, we group our amortizable intangible assets with other assets and liabilities at the lowest level of identifiable cash flows if the intangible asset does not generate cash flows independent of other assets and liabilities. If the carrying value of the intangible asset (asset group) exceeds the undiscounted cash flows expected to result from the use and eventual disposition of the intangible asset (asset group), we will write the carrying value down to the fair value in the period identified. | ||||||||
We generally calculate fair value of our intangible assets as the present value of estimated future cash flows we expect to generate from the asset using a risk-adjusted discount rate. In determining our estimated future cash flows associated with our intangible assets, we use estimates and assumptions about future revenue contributions, cost structures and remaining useful lives of the asset (asset group). | ||||||||
If we determine the estimate of an intangible asset's remaining useful life should be reduced based on our expected use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life. | ||||||||
Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed | ASC Topic 985-20, Software, 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, at which point capitalized costs are amortized over their estimated useful life of five to 10 years. Technological feasibility is established when we have a detailed design of the software and when research and development activities on the underlying device, if applicable, are completed. | |||||||
We review the net realizable value of capitalized assets periodically to assess the recoverability of amounts capitalized. In the future, the net realizable value may be adversely affected by the loss of a significant customer or a significant change in the market place, which could result in an impairment being recorded. | ||||||||
Other Liabilities | Other liabilities represent items payable or expected to settle within the next twelve months. The items included in the fiscal year end balances were: | |||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
VAT liabilities | $ | 4,205 | $ | 7,114 | ||||
Forward contracts | 2,657 | 1,255 | ||||||
Deferred revenue | 22,362 | 24,777 | ||||||
All other | 34,987 | 26,564 | ||||||
Total | $ | 64,211 | $ | 59,710 | ||||
Research and Development Expenses | All research and development costs are expensed as incurred. | |||||||
Advertising Costs | All advertising costs are expensed as incurred and are included in selling, general and administrative expenses in the consolidated statements of income. | |||||||
Accounting for Shipping and Handling Costs | Shipping and handling costs are included in selling, general and administrative expenses. Freight is classified in cost of goods sold when the customer is charged for freight and in selling, general and administration when the customer is not explicitly charged for freight. | |||||||
Income Taxes | The income tax provision is calculated for all jurisdictions in which we operate. The income tax provision process involves calculating current taxes due and assessing temporary differences arising from items which are taxable or deductible in different periods for tax and accounting purposes and are recorded as deferred tax assets and liabilities. Deferred tax assets are evaluated for realizability and a valuation allowance is maintained for the portion of our deferred tax assets that are not more-likely-than-not realizable. | |||||||
We file income tax returns in all jurisdictions in which we operate. We record a liability for uncertain tax positions taken or expected to be taken in income tax returns. Our financial statements reflect expected future tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. We record a liability for the portion of unrecognized tax benefits claimed which we have determined are not more-likely-than-not realizable. These tax reserves have been established based on management's assessment as to the potential exposure attributable to our uncertain tax positions as well as interest and penalties attributable to these uncertain tax positions. All tax reserves are analyzed quarterly and adjustments are made. Tax reserves are reversed when the statute of limitations expires or the matter is considered effectively settled. | ||||||||
Derivative Instruments | We account for our derivative financial instruments in accordance with ASC Topic 815, Derivatives and Hedging (“ASC 815”) and ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). In accordance with ASC 815, we record all derivatives on the balance sheet at fair value. The accounting for the change in the fair value of derivatives depends on the intended use of the derivative, whether we have elected to designate a derivative as a hedging instrument for accounting purposes, and whether the hedging relationship has satisfied the criteria necessary to apply hedge accounting. In addition, ASC 815 provides that, for derivative instruments that qualify for hedge accounting, changes in the fair value are either (a) offset against the change in fair value of the hedged assets, liabilities, or firm commitments through earnings or (b) recognized in equity until the hedged item is recognized in earnings, depending on whether the derivative is being used to hedge changes in fair value or cash flows. The ineffective portion of a derivative’s change in fair value is immediately recognized in earnings. We do not use derivative financial instruments for trading or speculation purposes. | |||||||
The gains or losses on the forward foreign exchange rate contracts designated as hedges are recorded in net revenues, cost of goods sold, operating expenses and other (expense) income, net in our consolidated statements of income, depending on the nature of the underlying hedged transactions, when the underlying hedged transaction affects earnings. The cash flows related to the gains and losses are classified in the consolidated statements of cash flows as part of cash flows from operating activities. For those derivative instruments that are not designated as part of a hedging relationship we record the gains or losses in earnings currently. These gains and losses are intended to offset the gains and losses recorded on net monetary assets or liabilities that are denominated in foreign currencies. We recorded foreign currency losses of $1.1 million, $0.5 million, and $0.8 million in fiscal 2015, 2014 and 2013, respectively. | ||||||||
On a quarterly basis, we assess whether the cash flow hedges are highly effective in offsetting changes in the cash flow of the hedged item. 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. | ||||||||
Our derivative instruments do not subject our earnings or cash flows to material risk, as gains and losses on these derivatives are intended to offset losses and gains on the item being hedged. We do not enter into derivative transactions for speculative purposes and we do not have any non-derivative instruments that are designated as hedging instruments pursuant to ASC Topic 815. | ||||||||
Stock-Based Compensation | To calculate the grant-date fair value of our stock options we use the Black-Scholes option-pricing model and for performance share units and market stock units we use Monte Carlo Simulation models. | |||||||
Valuation of Acquisitions | We allocate the amounts we pay for each acquisition to the assets acquired and liabilities assumed based on their estimated fair values at the dates of acquisition, including acquired identifiable intangible assets. We base the estimated fair value of identifiable intangible assets on detailed valuations that use historical information and market assumptions based upon the assumptions of a market participant. We allocate any excess purchase price over the fair value of the net tangible and intangible assets acquired to goodwill. | |||||||
In certain acquisitions, we have earn-out arrangements or contingent consideration to provide potential future payments to the seller for achieving certain agreed-upon targets. We record the contingent consideration at its fair value at the acquisition date. Generally, we have entered into arrangements with contingent consideration that require payments in cash. As such, we periodically revalue the contingent consideration obligations associated with certain acquisitions to their current fair value and record the change in the fair value as contingent consideration income or expense within selling, general and administrative expense. These changes are recorded in selling, general and administrative expense. Increases or decreases in the fair value of the contingent consideration obligations can result from changes in assumed discount periods and rates, changes in the assumed timing and amount of revenue and expense estimates, and changes in assumed probability with respect to regulatory approval. Significant judgment is employed in determining the appropriateness of these assumptions as of the acquisition date and for each subsequent period. Accordingly, future business and economic conditions, as well as changes in any of the assumptions described above, can materially impact the amount of contingent consideration income or expense we record in any given period. | ||||||||
Concentration of Credit Risk and Significant Customers | Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash equivalents and accounts receivable. In fiscal 2015 and 2014, no one customer accounted for more than 10% of our revenues. Sales to one unaffiliated Japanese customer, the Japanese Red Cross Society, amounted to $90.1 million for fiscal 2013. | |||||||
Certain other markets and industries can expose us to concentrations of credit risk. For example, in our plasma business, our sales are concentrated with several large customers. As a result, our accounts receivable extended to any one of these bio-pharmaceutical customers can be significant at any point in time. Also, a portion of our trade accounts receivable outside the United States include sales to government-owned or supported healthcare systems in several countries, which are subject to payment delays. Payment is dependent upon the financial stability and creditworthiness of those countries’ national economies. We have not incurred significant losses on government receivables. We continually evaluate all government receivables for potential collection risks associated with the availability of government funding and reimbursement practices. If the financial condition of customers or the countries’ healthcare systems deteriorate such that their ability to make payments is uncertain, allowances may be required in future periods. | ||||||||
Recent Accounting Pronouncements | Standards to be 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. Management does not believe that the adoption of ASU No. 2014-08 will have a material effect on our Financial Statements. | ||||||||
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 the Company retrospectively beginning April 2, 2017, with early adoption not permitted. The impact of adopting ASU No. 2014-09 on our Financial Statements 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 Statements. | ||||||||
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 Statements. | ||||||||
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 Statements. | ||||||||
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 Statements. | ||||||||
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. ASU No. 2015-03 is effective for annual periods beginning after December 15, 2015, and interim periods within those annual periods. Management does not believe that the adoption of ASU No. 2015-03 will have a material effect on our Financial Statements. | ||||||||
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. The impact of adopting ASU No. 2015-04 on our Financial Statements is being assessed by management. | ||||||||
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. The impact of adopting ASU No. 2015-05 on our Financial Statements is being assessed by management. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS (Tables) | 12 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ||||||||
Schedule of Property, Plant and Equipment Estimated Useful Lives | Property, plant and equipment is recorded at historical cost. We provide for depreciation and amortization by charges to operations using the straight-line method in amounts estimated to recover the cost of the building and improvements, equipment, and furniture and fixtures over their estimated useful lives as follows: | |||||||
Asset Classification | Estimated | |||||||
Useful Lives | ||||||||
Building | 30 Years | |||||||
Building improvements | 5-20 Years | |||||||
Plant equipment and machinery | 3-15 Years | |||||||
Office equipment and information technology | 3-10 Years | |||||||
Haemonetics equipment | 3-7 Years | |||||||
Schedule of Other Accrued Liabilities | The items included in the fiscal year end balances were: | |||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
VAT liabilities | $ | 4,205 | $ | 7,114 | ||||
Forward contracts | 2,657 | 1,255 | ||||||
Deferred revenue | 22,362 | 24,777 | ||||||
All other | 34,987 | 26,564 | ||||||
Total | $ | 64,211 | $ | 59,710 | ||||
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 12 Months Ended | |||||
Mar. 28, 2015 | ||||||
Business Combinations [Abstract] | ||||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The final purchase price allocation is as follows: | |||||
Asset class | Amounts recognized as of March 29, 2014 | |||||
Acquired technology | $ | 22,800 | ||||
Trade name | 1,900 | |||||
Customer relationship | 600 | |||||
Goodwill | 6,425 | |||||
Total | $ | 31,725 | ||||
We completed the allocation of the purchase price to the estimated fair value of the acquired assets and liabilities in June 2013 and is summarized below: | ||||||
Asset class | Amounts Recognized as of March 30, 2013 | |||||
(In thousands) | ||||||
Inventories | $ | 49,917 | ||||
Property, plant and equipment | 85,984 | |||||
Intangible assets | 188,500 | |||||
Other assets/liabilities, net | (6,166 | ) | ||||
Goodwill | 216,940 | |||||
Fair value of net assets acquired | $ | 535,175 | ||||
Business Acquisition, Pro Forma Information | The following represents the pro forma consolidated statements of income for the fiscal year ended March 30, 2013, as if the acquisition had been included in our consolidated results as beginning April 1, 2012: | |||||
(In thousands, except per share amounts) | March 30, | |||||
2013 | ||||||
Net Sales | $ | 963,923 | ||||
Net Income | $ | 56,540 | ||||
Basic EPS | $ | 1.1 | ||||
Diluted EPS | $ | 1.08 | ||||
PRODUCT_WARRANTIES_Tables
PRODUCT WARRANTIES (Tables) | 12 Months Ended | |||||||
Mar. 28, 2015 | ||||||||
Product Warranties Disclosures [Abstract] | ||||||||
Schedule of Product Warranty Liability | We estimate our potential warranty expense based on our historical warranty experience, and we periodically assess the adequacy of our warranty accrual and make adjustments as necessary. | |||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Warranty accrual as of the beginning of the year | $ | 590 | $ | 673 | ||||
Warranty provision | 1,199 | 1,340 | ||||||
Warranty spending | (1,258 | ) | (1,423 | ) | ||||
Warranty accrual as of the end of the year | $ | 531 | $ | 590 | ||||
INVENTORIES_Tables
INVENTORIES (Tables) | 12 Months Ended | |||||||
Mar. 28, 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 with the first-in, first-out method. | |||||||
(In thousands) | March 28, | March 29, | ||||||
2015 | 2014 | |||||||
Raw materials | $ | 71,794 | $ | 72,508 | ||||
Work-in-process | 12,462 | 7,383 | ||||||
Finished goods | 126,821 | 117,770 | ||||||
Total Inventory | $ | 211,077 | $ | 197,661 | ||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||
Schedule of Goodwill | The changes in the carrying amount of goodwill for fiscal 2015 and 2014 are as follows: | |||||||||||||
(In thousands) | ||||||||||||||
Carrying amount as of March 30, 2013 | $ | 330,474 | ||||||||||||
Hemerus acquisition | 6,425 | |||||||||||||
Effects of change in foreign currency exchange rates | (131 | ) | ||||||||||||
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 | ||||||||||||
Schedule of Amoritized Intangibles | The gross carrying amount of intangible assets and the related accumulated amortization as of March 28, 2015 and March 29, 2014 is as follows: | |||||||||||||
(In thousands) | Gross Carrying | Accumulated | Net | Weighted Average | ||||||||||
Amount | Amortization | 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 | |||||||
(In thousands) | Gross Carrying | Accumulated | Net | Weighted Average | ||||||||||
Amount | Amortization | Useful Life | ||||||||||||
(In years) | ||||||||||||||
As of March 29, 2014 | ||||||||||||||
Patents | $ | 9,543 | $ | 7,039 | $ | 2,504 | 9 | |||||||
Capitalized software | 31,750 | 2,414 | 29,336 | 4 | ||||||||||
Other developed technology | 123,525 | 36,632 | 86,893 | 12 | ||||||||||
Customer contracts and related relationships | 200,694 | 52,741 | 147,953 | 12 | ||||||||||
Trade names | 7,341 | 2,868 | 4,473 | 11 | ||||||||||
Total intangibles | $ | 372,853 | $ | 101,694 | $ | 271,159 | 11 | |||||||
Schedule of Future Amortization Expense | Future annual amortization expense on intangible assets is estimated to be as follows: | |||||||||||||
Fiscal Year | Amount (in thousands) | |||||||||||||
2016 | $ | 33,752 | ||||||||||||
2017 | $ | 32,998 | ||||||||||||
2018 | $ | 32,165 | ||||||||||||
2019 | $ | 30,470 | ||||||||||||
2020 and thereafter | $ | 104,544 | ||||||||||||
DERIVATIVES_AND_FAIR_VALUE_MEA1
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Derivatives and Fair Value Measurements [Abstract] | |||||||||||||||||
Schedule of Effect of Derivative Instruments Designated as Cash Flow Hedges and Those Not Designated as Hedging Instruments | The following table presents the effect of our derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC Topic 815 in our consolidated statements of income for the fiscal year ended March 28, 2015. | ||||||||||||||||
Derivative Instruments | Amount of | Amount of | Location in | Amount of Gain/(Loss) | Location in | ||||||||||||
Gain/(Loss) Recognized | Gain/(Loss) | Statement of Operations | Excluded from | Statement of | |||||||||||||
in OCI | Reclassified | Effectiveness | Operations | ||||||||||||||
(Effective Portion) | from OCI into | Testing (*) | |||||||||||||||
Earnings | |||||||||||||||||
(Effective Portion) | |||||||||||||||||
(In thousands) | |||||||||||||||||
Designated foreign currency hedge contracts, net of tax | $ | 12,249 | $ | 6,464 | Net revenues, COGS, and SG&A | $ | (170 | ) | Other income (expense), net | ||||||||
Non-designated foreign currency hedge contracts | — | — | $ | 7,510 | Other income (expense) | ||||||||||||
Designated interest rate swaps, net of tax | $ | (878 | ) | $ | — | Interest income (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 March 28, 2015 and March 29, 2014 by type of contract and whether it is a qualifying hedge under ASC Topic 815. | ||||||||||||||||
(In thousands) | Location in | Balance as of March 28, 2015 | Balance as of March 29, 2014 | ||||||||||||||
Balance Sheet | |||||||||||||||||
Derivative Assets: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current assets | $ | 9,740 | $ | 2,574 | ||||||||||||
Designated interest rate swaps | Other current assets | — | 1,250 | ||||||||||||||
$ | 9,740 | $ | 3,824 | ||||||||||||||
Derivative Liabilities: | |||||||||||||||||
Designated foreign currency hedge contracts | Other current liabilities | $ | 2,499 | $ | 1,255 | ||||||||||||
Designated interest rate swaps | Other current liabilities | 159 | — | ||||||||||||||
$ | 2,658 | $ | 1,255 | ||||||||||||||
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 March 28, 2015 and March 29, 2014: | ||||||||||||||||
As of March 28, 2015 | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 119,946 | $ | — | $ | — | $ | 119,946 | |||||||||
Foreign currency hedge contracts | — | 9,740 | — | 9,740 | |||||||||||||
$ | 119,946 | $ | 9,740 | $ | — | $ | 129,686 | ||||||||||
Liabilities | |||||||||||||||||
Foreign currency hedge contracts | $ | — | $ | 2,499 | $ | — | $ | 2,499 | |||||||||
Interest rate swap | — | 159 | — | 159 | |||||||||||||
Contingent consideration | — | — | 4,727 | 4,727 | |||||||||||||
$ | — | $ | 2,658 | $ | 4,727 | $ | 7,385 | ||||||||||
As of March 29, 2014 | Quoted Market Prices for Identical Assets | Significant Other Observable Inputs | Significant Unobservable Inputs | Total | |||||||||||||
(Level 1) | (Level 2) | (Level 3) | |||||||||||||||
(In thousands) | (In thousands) | (In thousands) | (In thousands) | ||||||||||||||
Assets | |||||||||||||||||
Money market funds | $ | 135,378 | $ | — | $ | — | $ | 135,378 | |||||||||
Forward currency hedge contracts | — | 2,574 | — | 2,574 | |||||||||||||
Interest rate swap | — | 1,250 | — | 1,250 | |||||||||||||
$ | 135,378 | $ | 3,824 | $ | — | $ | 139,202 | ||||||||||
Liabilities | |||||||||||||||||
Forward currency hedge contracts | $ | — | $ | 1,255 | $ | — | $ | 1,255 | |||||||||
Contingent consideration | — | — | 7,645 | 7,645 | |||||||||||||
$ | — | $ | 1,255 | $ | 7,645 | $ | 8,900 | ||||||||||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | A description of the methods used to determine the fair value of the Level 3 liabilities is included within Note 3, Acquisitions. The table below provides a reconciliation of the beginning and ending Level 3 liabilities for the year ended March 28, 2015. | ||||||||||||||||
(In thousands) | Fair value measurements using significant unobservable inputs (Level 3) | ||||||||||||||||
Contingent consideration as of March 29, 2014 | $ | 7,645 | |||||||||||||||
Fair value adjustment | (2,918 | ) | |||||||||||||||
Ending balance | $ | 4,727 | |||||||||||||||
NOTES_PAYABLE_AND_LONGTERM_DEB1
NOTES PAYABLE AND LONG-TERM DEBT (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Notes Payable and Long-Term Debt [Abstract] | |||||||||||||||||
Schedule of Notes Payable and Long-Term Debt | Notes payable and long-term debt consisted of the following: | ||||||||||||||||
(In thousands) | March 28, 2015 | March 29, 2014 | |||||||||||||||
Term loan, net of financing fees | $ | 426,814 | $ | 435,338 | |||||||||||||
Real estate mortgage | 851 | 1,906 | |||||||||||||||
Bank loans and other borrowings | 226 | 443 | |||||||||||||||
Less current portion | (21,522 | ) | (45,630 | ) | |||||||||||||
Long-term debt | $ | 406,369 | $ | 392,057 | |||||||||||||
Schedule of Notes Payable and Long-Term Debt Maturities | The maturity profile of all gross long-term debt, exclusive of debt discounts, as of March 28, 2015 is presented below: | ||||||||||||||||
Fiscal year (in thousands) | Mortgage Obligation | Credit Facilities | Bank loans and other borrowings | Total | |||||||||||||
2016 | $ | 851 | $ | 21,342 | $ | 144 | $ | 22,337 | |||||||||
2017 | — | 42,683 | 65 | 42,748 | |||||||||||||
2018 | — | 45,054 | 17 | 45,071 | |||||||||||||
2019 | — | 151,763 | — | 151,763 | |||||||||||||
2020 | — | 168,564 | — | 168,564 | |||||||||||||
$ | 851 | $ | 429,406 | $ | 226 | $ | 430,483 | ||||||||||
INCOME_TAXES_Tables
INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||
Schedule Domestic and Foreign Income Before Provision for Income Tax | Domestic and foreign income before provision for income tax is as follows: | ||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Domestic | $ | (17,265 | ) | $ | (6,859 | ) | $ | 17,360 | |||||||||||||
Foreign | 48,430 | 43,260 | 32,537 | ||||||||||||||||||
Total | $ | 31,165 | $ | 36,401 | $ | 49,897 | |||||||||||||||
Schedule of Income Tax Provision Components | The income tax provision contains the following components: | ||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Current | |||||||||||||||||||||
Federal | $ | 3,526 | $ | (4,896 | ) | $ | 3,795 | ||||||||||||||
State | 898 | 873 | 1,324 | ||||||||||||||||||
Foreign | 5,614 | 5,478 | 5,389 | ||||||||||||||||||
Total current | $ | 10,038 | $ | 1,455 | $ | 10,508 | |||||||||||||||
Deferred | |||||||||||||||||||||
Federal | 1,227 | (1,785 | ) | 1,644 | |||||||||||||||||
State | 3,215 | 207 | (229 | ) | |||||||||||||||||
Foreign | (212 | ) | 1,376 | (826 | ) | ||||||||||||||||
Total deferred | $ | 4,230 | $ | (202 | ) | $ | 589 | ||||||||||||||
Total | $ | 14,268 | $ | 1,253 | $ | 11,097 | |||||||||||||||
Schedule of Net Deferred Tax Asset | Tax affected, significant temporary differences comprising the net deferred tax liability are as follows: | ||||||||||||||||||||
(In thousands) | March 28, | March 29, | |||||||||||||||||||
2015 | 2014 | ||||||||||||||||||||
Depreciation | $ | (23,733 | ) | $ | (23,658 | ) | |||||||||||||||
Amortization | (24,038 | ) | (18,618 | ) | |||||||||||||||||
Inventory | 6,189 | 7,371 | |||||||||||||||||||
Hedging | 84 | 321 | |||||||||||||||||||
Accruals, reserves and other | 15,927 | 10,368 | |||||||||||||||||||
Net operating loss carry-forward | 5,392 | 1,507 | |||||||||||||||||||
Stock based compensation | 10,652 | 8,757 | |||||||||||||||||||
Tax credit carry-forward, net | 8,678 | 2,660 | |||||||||||||||||||
Gross deferred taxes | $ | (849 | ) | $ | (11,292 | ) | |||||||||||||||
Less valuation allowance | (16,027 | ) | (3,083 | ) | |||||||||||||||||
Net deferred tax liability | $ | (16,876 | ) | $ | (14,375 | ) | |||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The income tax provision from operations differs from tax provision computed at the 35.0% U.S. federal statutory income tax rate due to the following: | ||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Tax at federal statutory rate | $ | 10,907 | 35 | % | $ | 12,739 | 35 | % | $ | 17,464 | 35 | % | |||||||||
Domestic manufacturing deduction | — | — | % | — | — | % | (504 | ) | (1.0 | )% | |||||||||||
Difference between U.S. and foreign tax | (6,929 | ) | (22.2 | )% | (10,846 | ) | (29.8 | )% | (5,584 | ) | (11.2 | )% | |||||||||
State income taxes net of federal benefit | (818 | ) | (2.6 | )% | (252 | ) | (0.7 | )% | 718 | 1.4 | % | ||||||||||
Change in uncertain tax positions | (1,762 | ) | (5.7 | )% | (1,678 | ) | (4.6 | )% | (580 | ) | (1.2 | )% | |||||||||
Intercompany loan deduction | — | — | % | (2,185 | ) | (6.0 | )% | — | — | % | |||||||||||
Non-deductible expenses | 1,237 | 4 | % | 1,035 | 2.8 | % | 1,178 | 2.4 | % | ||||||||||||
Research credits | (1,000 | ) | (3.2 | )% | (688 | ) | (1.9 | )% | (799 | ) | (1.6 | )% | |||||||||
Naked Credit | 3,826 | 12.3 | % | — | — | % | — | — | % | ||||||||||||
Valuation allowance | 8,524 | 27.4 | % | 2,400 | 6.6 | % | — | — | % | ||||||||||||
Other, net | 283 | 0.8 | % | 728 | 2 | % | (796 | ) | (1.6 | )% | |||||||||||
Income tax provision | $ | 14,268 | 45.8 | % | $ | 1,253 | 3.4 | % | $ | 11,097 | 22.2 | % | |||||||||
Summary of Gross Unrecognized Tax Benefits | The following table summarizes the activity related to our gross unrecognized tax benefits for the fiscal years ended March 28, 2015, March 29, 2014 and March 30, 2013: | ||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | ||||||||||||||||||
2015 | 2014 | 2013 | |||||||||||||||||||
Beginning Balance | $ | 5,604 | $ | 6,930 | $ | 6,885 | |||||||||||||||
Additions based upon positions related to the current year | — | — | 1,192 | ||||||||||||||||||
Additions for tax positions of prior years | 3,234 | 990 | 18 | ||||||||||||||||||
Settlements with taxing authorities | (338 | ) | — | (80 | ) | ||||||||||||||||
Closure of statute of limitations | (1,430 | ) | (2,316 | ) | (1,085 | ) | |||||||||||||||
Ending Balance | $ | 7,070 | $ | 5,604 | $ | 6,930 | |||||||||||||||
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended | |||
Mar. 28, 2015 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Schedule of Approximate Future Basic Rental Commitments under Operating Leases | Approximate future basic rental commitments under operating leases as of March 28, 2015 are as follows (in thousands): | |||
Fiscal Year Ending | ||||
(In thousands) | ||||
2016 | $ | 6,797 | ||
2017 | 4,780 | |||
2018 | 3,758 | |||
2019 | 2,427 | |||
2020 and thereafter | 11,585 | |||
$ | 29,347 | |||
CAPITAL_STOCK_Tables
CAPITAL STOCK (Tables) | 12 Months Ended | |||||||||||||
Mar. 28, 2015 | ||||||||||||||
Capital Stock [Abstract] | ||||||||||||||
Schedule of Summary of Stock Option Activity | A summary of stock option activity for the fiscal year ended March 28, 2015 is as follows: | |||||||||||||
Options | Weighted | Weighted | Aggregate | |||||||||||
Outstanding | Average | Average | Intrinsic | |||||||||||
(shares) | Exercise Price | Remaining | Value | |||||||||||
per Share | Life (years) | ($000’s) | ||||||||||||
Outstanding at March 29, 2014 | 3,834,372 | $ | 32.93 | 4.19 | $ | 9,436 | ||||||||
Granted | 592,024 | 34.87 | ||||||||||||
Exercised | (500,103 | ) | 26.14 | |||||||||||
Forfeited | (164,627 | ) | 38.13 | |||||||||||
Outstanding at March 28, 2015 | 3,761,666 | $ | 33.9 | 4.02 | $ | 37,067 | ||||||||
Exercisable at March 28, 2015 | 2,281,022 | $ | 31.57 | 2.92 | $ | 27,826 | ||||||||
Vested or expected to vest at March 28, 2015 | 3,596,493 | $ | 33.73 | 3.93 | $ | 36,066 | ||||||||
Schedule of Assumptions Utilized for Estimating Fair Value of Option Grants | The assumptions utilized for option grants during the periods presented are as follows: | |||||||||||||
March 28, | March 29, | March 30, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Volatility | 22.5 | % | 24.8 | % | 26.4 | % | ||||||||
Expected life (years) | 4.9 | 4.9 | 4.9 | |||||||||||
Risk-free interest rate | 1.5 | % | 1.3 | % | 0.8 | % | ||||||||
Dividend yield | 0 | % | 0 | % | 0 | % | ||||||||
Schedule of Assumptions Used to Estimate Fair Value of Shares Purchased Under ESPP | The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions: | |||||||||||||
March 28, | March 29, | March 30, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Volatility | 23.7 | % | 22.9 | % | 24.9 | % | ||||||||
Expected life (months) | 6 | 6 | 6 | |||||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | ||||||||
The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows: | ||||||||||||||
March 28, | March 29, | March 30, | ||||||||||||
2015 | 2014 | 2013 | ||||||||||||
Discount rate | 0.93 | % | 2.02 | % | 1.97 | % | ||||||||
Rate of increased salary levels | 1.65 | % | 1.57 | % | 1.42 | % | ||||||||
Expected long-term rate of return on assets | 1.68 | % | 1.94 | % | 1.92 | % | ||||||||
Schedule of Performance Share Unit awards | The estimated fair value, potential shares to be awarded, recognized compensation expense and future compensation expense to be recognized, including estimated forfeitures, for Performance Share Unit awards are as follows: | |||||||||||||
For Year Ended March 28, 2015 | ||||||||||||||
Performance Period | Award Fair Value as of October 22, 2014 | Recognized Compensation Expense | Unrecognized Compensation Expense | Minimum Shares | Target Shares | Maximum Shares | ||||||||
(Per share) | (In thousands) | (In thousands) | ||||||||||||
Oct 1, 2014 - Sept 30, 2017 | $ | 35.09 | $ | 662 | $ | 3,869 | — | 129,130 | 258,260 | |||||
Schedule of Summary of Restricted Stock Units Activity | A summary of performance stock units, restricted stock units and market stock units activity for the fiscal year ended March 28, 2015 is as follows: | |||||||||||||
Shares | Weighted | |||||||||||||
Average | ||||||||||||||
Market Value | ||||||||||||||
at Grant Date | ||||||||||||||
Unvested at March 29, 2014 | 599,673 | $ | 37.7 | |||||||||||
Awarded | 351,666 | $ | 35.18 | |||||||||||
Released | (110,048 | ) | $ | 36.65 | ||||||||||
Forfeited | (66,932 | ) | $ | 37.83 | ||||||||||
Unvested at March 28, 2015 | 774,359 | $ | 36.7 | |||||||||||
EARNINGS_PER_SHARE_EPS_Tables
EARNINGS PER SHARE ("EPS") (Tables) | 12 Months Ended | |||||||||||
Mar. 28, 2015 | ||||||||||||
Earnings Per Share [Abstract] | ||||||||||||
Schedule of Earnings Per Share Reconciliation | ||||||||||||
(In thousands, except per share amounts) | March 28, | March 29, | March 30, | |||||||||
2015 | 2014 | 2013 | ||||||||||
Basic EPS | ||||||||||||
Net income | $ | 16,897 | $ | 35,148 | $ | 38,800 | ||||||
Weighted average shares | 51,533 | 51,611 | 51,349 | |||||||||
Basic income per share | $ | 0.33 | $ | 0.68 | $ | 0.76 | ||||||
Diluted EPS | ||||||||||||
Net income | $ | 16,897 | $ | 35,148 | $ | 38,800 | ||||||
Basic weighted average shares | 51,533 | 51,611 | 51,349 | |||||||||
Net effect of common stock equivalents | 556 | 766 | 910 | |||||||||
Diluted weighted average shares | 52,089 | 52,377 | 52,259 | |||||||||
Diluted income per share | $ | 0.32 | $ | 0.67 | $ | 0.74 | ||||||
PROPERTY_PLANT_AND_EQUIPMENT_T
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Mar. 28, 2015 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Schedule of Property, Plant and Equipment | Property and equipment consisted of the following: | ||||||||
(In thousands) | 28-Mar-15 | March 29, 2014 | |||||||
Land | $ | 9,468 | $ | 7,168 | |||||
Building and building improvements | 118,384 | 83,439 | |||||||
Plant equipment and machinery | 220,793 | 236,539 | |||||||
Office equipment and information technology | 118,810 | 111,925 | |||||||
Haemonetics equipment | 264,307 | 262,784 | |||||||
Total | 731,762 | 701,855 | |||||||
Less: accumulated depreciation and amortization | (409,814 | ) | (430,418 | ) | |||||
Property, plant and equipment, net | $ | 321,948 | $ | 271,437 | |||||
RETIREMENT_PLANS_Tables
RETIREMENT PLANS (Tables) | 12 Months Ended | |||||||||||
Mar. 28, 2015 | ||||||||||||
Compensation and Retirement Disclosure [Abstract] | ||||||||||||
Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans | Some of the our foreign subsidiaries have defined benefit pension plans covering substantially all full time employees at those subsidiaries. Net periodic benefit costs for the plans in the aggregate include the following components: | |||||||||||
(In thousands) | March 28, | March 29, | March 30, | |||||||||
2015 | 2014 | 2013 | ||||||||||
Service cost | $ | 2,979 | $ | 3,351 | $ | 2,759 | ||||||
Interest cost on benefit obligation | 686 | 623 | 639 | |||||||||
Expected (return)/loss on plan assets | (449 | ) | (435 | ) | (413 | ) | ||||||
Actuarial loss/(gain) | 107 | 88 | 196 | |||||||||
Amortization of unrecognized prior service cost | (29 | ) | 182 | (14 | ) | |||||||
Amortization of unrecognized transition obligation | 45 | 47 | 48 | |||||||||
Totals | $ | 3,339 | $ | 3,856 | $ | 3,215 | ||||||
Schedule of Activity Under Defined Benefit Plans | The activity under those defined benefit plans are as follows: | |||||||||||
(In thousands) | March 28, | March 29, | ||||||||||
2015 | 2014 | |||||||||||
Change in Benefit Obligation: | ||||||||||||
Benefit Obligation, beginning of year | $ | (32,621 | ) | $ | (30,126 | ) | ||||||
Service cost | (2,979 | ) | (3,351 | ) | ||||||||
Interest cost | (686 | ) | (623 | ) | ||||||||
Benefits paid | 4,902 | 4,474 | ||||||||||
Actuarial (loss)/gain | (6,883 | ) | 55 | |||||||||
Employee and plan participants contribution | (2,978 | ) | (2,963 | ) | ||||||||
Plan Amendments | 114 | 419 | ||||||||||
Foreign currency changes | 564 | (506 | ) | |||||||||
Benefit obligation, end of year | $ | (40,567 | ) | $ | (32,621 | ) | ||||||
Change in Plan Assets: | ||||||||||||
Fair value of plan assets, beginning of year | $ | 19,981 | $ | 19,577 | ||||||||
Company contributions | 2,112 | 2,241 | ||||||||||
Benefits paid | (4,621 | ) | (4,641 | ) | ||||||||
Gain/(Loss) on plan assets | 506 | 100 | ||||||||||
Employee and plan participants contributions | 2,851 | 3,087 | ||||||||||
Foreign currency changes | 2,336 | (383 | ) | |||||||||
Fair value of Plan Assets, end of year | $ | 23,165 | $ | 19,981 | ||||||||
Funded Status | $ | (17,402 | ) | $ | (12,640 | ) | ||||||
Unrecognized net actuarial loss/(gain) | 11,096 | 5,899 | ||||||||||
Unrecognized initial obligation | 64 | 94 | ||||||||||
Unrecognized prior service cost | (459 | ) | (422 | ) | ||||||||
Net amount recognized | $ | (6,701 | ) | $ | (7,069 | ) | ||||||
Schedule of Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax | The components of the change recorded in our accumulated other comprehensive income related to our defined benefit plans, net of tax, are as follows (in thousands): | |||||||||||
Balance, March 31, 2012 | $ | (4,253 | ) | |||||||||
Obligation at transition | 556 | |||||||||||
Actuarial loss | (1,237 | ) | ||||||||||
Prior service cost | (139 | ) | ||||||||||
Balance as of March 30, 2013 | $ | (5,073 | ) | |||||||||
Obligation at transition | 172 | |||||||||||
Actuarial loss | (129 | ) | ||||||||||
Prior service cost | 438 | |||||||||||
Balance as of March 29, 2014 | $ | (4,592 | ) | |||||||||
Obligation at transition | (19 | ) | ||||||||||
Actuarial loss | (6,198 | ) | ||||||||||
Prior service cost | 1,886 | |||||||||||
Balance as of March 28, 2015 | $ | (8,923 | ) | |||||||||
Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs | The fair values of shares purchased under the Employee Stock Purchase Plan are estimated using the Black-Scholes single option-pricing model with the following weighted average assumptions: | |||||||||||
March 28, | March 29, | March 30, | ||||||||||
2015 | 2014 | 2013 | ||||||||||
Volatility | 23.7 | % | 22.9 | % | 24.9 | % | ||||||
Expected life (months) | 6 | 6 | 6 | |||||||||
Risk-free interest rate | 0.1 | % | 0.1 | % | 0.2 | % | ||||||
Dividend Yield | 0 | % | 0 | % | 0 | % | ||||||
The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows: | ||||||||||||
March 28, | March 29, | March 30, | ||||||||||
2015 | 2014 | 2013 | ||||||||||
Discount rate | 0.93 | % | 2.02 | % | 1.97 | % | ||||||
Rate of increased salary levels | 1.65 | % | 1.57 | % | 1.42 | % | ||||||
Expected long-term rate of return on assets | 1.68 | % | 1.94 | % | 1.92 | % | ||||||
Schedule of Estimated Future Benefit Payments | Estimated future benefit payments during the next five years and in the aggregate for the five fiscal years thereafter, are as follows (in thousands): | |||||||||||
Expected Benefit Payments | ||||||||||||
Fiscal Year 2016 | $ | 1,735 | ||||||||||
Fiscal Year 2017 | $ | 1,654 | ||||||||||
Fiscal Year 2018 | $ | 1,502 | ||||||||||
Fiscal Year 2019 | $ | 1,610 | ||||||||||
Fiscal Year 2020 | $ | 1,732 | ||||||||||
Fiscal Year 2021-2024 | $ | 7,493 | ||||||||||
SEGMENT_INFORMATION_Tables
SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||
Schedule of Revenues from External Customers | Enterprise Wide Disclosures About Product and Services | |||||||||||||||||||||||||||
Year Ended (in thousands) | ||||||||||||||||||||||||||||
March 28, 2015 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 494,788 | $ | 9,617 | $ | 504,405 | $ | 88,298 | $ | 102,095 | $ | 215,575 | $ | 910,373 | ||||||||||||||
Total Assets | $ | 810,159 | $ | 240,610 | $ | 1,050,769 | $ | 41,621 | $ | 79,084 | $ | 313,943 | $ | 1,485,417 | ||||||||||||||
Long-Lived Assets | $ | 532,187 | $ | 212,548 | $ | 744,735 | $ | 9,230 | $ | 46,857 | $ | 114,318 | $ | 915,140 | ||||||||||||||
March 29, 2014 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 500,719 | $ | 9,557 | $ | 510,276 | $ | 108,679 | $ | 94,762 | $ | 224,792 | $ | 938,509 | ||||||||||||||
Total Assets | $ | 810,409 | $ | 225,998 | $ | 1,036,407 | $ | 53,207 | $ | 53,055 | $ | 371,509 | $ | 1,514,178 | ||||||||||||||
Long-Lived Assets | $ | 519,396 | $ | 211,624 | $ | 731,020 | $ | 11,522 | $ | 17,269 | $ | 131,391 | $ | 891,202 | ||||||||||||||
March 30, 2013 | United | Other | Total | Japan | Other | Total | Total | |||||||||||||||||||||
States | North | North | Asia | Europe | Consolidated | |||||||||||||||||||||||
America | America | |||||||||||||||||||||||||||
Net revenues | $ | 454,874 | $ | 6,851 | $ | 461,725 | $ | 120,726 | $ | 84,860 | $ | 224,679 | $ | 891,990 | ||||||||||||||
Total Assets | $ | 830,754 | $ | 225,849 | $ | 1,056,603 | $ | 44,189 | $ | 41,037 | $ | 320,088 | $ | 1,461,917 | ||||||||||||||
Long-Lived Assets | $ | 503,606 | $ | 209,439 | $ | 713,045 | $ | 12,977 | $ | 8,076 | $ | 117,717 | $ | 851,815 | ||||||||||||||
Enterprise Wide Disclosures about Product and Services | Revenues from External Customers: | |||||||||||||||||||||||||||
(In thousands) | March 28, | March 29, | March 30, | |||||||||||||||||||||||||
2015 | 2014 | 2013 | ||||||||||||||||||||||||||
Disposable revenues | ||||||||||||||||||||||||||||
Plasma disposables | $ | 319,190 | $ | 291,895 | $ | 268,900 | ||||||||||||||||||||||
Blood center disposables | ||||||||||||||||||||||||||||
Platelet | 152,588 | 156,643 | 169,602 | |||||||||||||||||||||||||
Red cell | 42,700 | 42,378 | 49,733 | |||||||||||||||||||||||||
Whole blood | 143,905 | 190,698 | 138,436 | |||||||||||||||||||||||||
339,193 | 389,719 | 357,771 | ||||||||||||||||||||||||||
Hospital disposables | ||||||||||||||||||||||||||||
Surgical | 62,540 | 66,876 | 73,508 | |||||||||||||||||||||||||
OrthoPAT | 20,316 | 25,042 | 30,230 | |||||||||||||||||||||||||
Diagnostics | 42,187 | 33,302 | 27,356 | |||||||||||||||||||||||||
125,043 | 125,220 | 131,094 | ||||||||||||||||||||||||||
Disposables revenue | 783,426 | 806,834 | 757,765 | |||||||||||||||||||||||||
Software solutions | 72,185 | 70,441 | 69,952 | |||||||||||||||||||||||||
Equipment & other | 54,762 | 61,234 | 64,273 | |||||||||||||||||||||||||
Total revenues | $ | 910,373 | $ | 938,509 | $ | 891,990 | ||||||||||||||||||||||
RESTRUCTURING_Tables
RESTRUCTURING (Tables) | 12 Months Ended | |||||||||||||||||||
Mar. 28, 2015 | ||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||
Schedule of Restructuring and Transformation Costs by Type of Cost | The following summarizes the restructuring activity for the fiscal year ended March 28, 2015, March 29, 2014, and March 30, 2013, respectively: | |||||||||||||||||||
(In thousands) | Balance at March 29, 2014 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 28, 2015 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 22,908 | $ | 19,879 | $ | (26,394 | ) | $ | — | $ | 16,393 | |||||||||
Other costs | 728 | 15,362 | (15,871 | ) | — | 219 | ||||||||||||||
Accelerated depreciation | — | 1,326 | — | (1,326 | ) | — | ||||||||||||||
Asset write-down | — | 296 | — | (296 | ) | — | ||||||||||||||
$ | 23,636 | $ | 36,863 | $ | (42,265 | ) | $ | (1,622 | ) | $ | 16,612 | |||||||||
(In thousands) | Balance at March 30, 2013 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 29, 2014 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 3,089 | $ | 31,492 | $ | (11,673 | ) | $ | — | $ | 22,908 | |||||||||
Other costs | 173 | 14,254 | (13,699 | ) | — | 728 | ||||||||||||||
Accelerated depreciation | — | 2,390 | — | (2,390 | ) | — | ||||||||||||||
Asset write down | — | 915 | — | (915 | ) | — | ||||||||||||||
$ | 3,262 | $ | 49,051 | $ | (25,372 | ) | $ | (3,305 | ) | $ | 23,636 | |||||||||
(In thousands) | Balance at March 31, 2012 | Cost | Payments | Less Non-Cash Adjustments | Restructuring Accrual Balance at March 30, 2013 | |||||||||||||||
Incurred | ||||||||||||||||||||
Severance and other employee costs | $ | 1,461 | $ | 6,214 | $ | (4,586 | ) | $ | — | $ | 3,089 | |||||||||
Facility related costs | 533 | 431 | (791 | ) | — | 173 | ||||||||||||||
Asset write down | — | 4,247 | — | (4,247 | ) | — | ||||||||||||||
$ | 1,994 | $ | 10,892 | $ | (5,377 | ) | $ | (4,247 | ) | $ | 3,262 | |||||||||
The table below presents restructuring and transformation costs recorded in cost of goods sold, research and development, selling, general and administrative expenses and other (expense) income, net in our statements of income and comprehensive income for the periods presented. In fiscal 2015 and 2014, Transformation Costs were primarily related to our VCC initiatives. In fiscal 2013, the majority of our Transformation Costs were related to the integration of the whole blood acquisition. | ||||||||||||||||||||
Transformation costs | ||||||||||||||||||||
(in thousands) | March 28, 2015 | March 29, 2014 | March 30, 2013 | |||||||||||||||||
Integration and other costs | $ | 24,061 | $ | 30,701 | $ | 60,878 | ||||||||||||||
Accelerated depreciation | 930 | 4,203 | 687 | |||||||||||||||||
Asset disposal | 4,925 | 796 | — | |||||||||||||||||
Total | $ | 29,916 | $ | 35,700 | $ | 61,565 | ||||||||||||||
Restructuring costs | ||||||||||||||||||||
(in thousands) | March 28, 2015 | March 29, 2014 | March 30, 2013 | |||||||||||||||||
Severance and other employee costs | $ | 19,879 | $ | 31,492 | $ | 6,214 | ||||||||||||||
Other costs | 15,362 | 14,254 | 431 | |||||||||||||||||
Accelerated depreciation | 1,326 | 2,390 | — | |||||||||||||||||
Asset disposal | 296 | 915 | 4,247 | |||||||||||||||||
Total | $ | 36,863 | $ | 49,051 | $ | 10,892 | ||||||||||||||
Total restructuring and transformation | $ | 66,779 | $ | 84,751 | $ | 72,457 | ||||||||||||||
SUMMARY_OF_QUARTERLY_DATA_UNAU1
SUMMARY OF QUARTERLY DATA (UNAUDITED) (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 28, 2015 | |||||||||||||||||
Quarterly Financial Data [Abstract] | |||||||||||||||||
Schedule of Quarterly Data | |||||||||||||||||
(In thousands) | Three months ended | ||||||||||||||||
Fiscal 2015 | June 28, | September 27, | December 27, | March 28, | |||||||||||||
2014 | 2014 | 2014 | 2015 | ||||||||||||||
Net revenues | $ | 224,488 | $ | 227,580 | $ | 231,827 | $ | 226,478 | |||||||||
Gross profit | $ | 106,278 | $ | 108,114 | $ | 111,661 | $ | 108,365 | |||||||||
Operating (loss) income | $ | (1,666 | ) | $ | 12,407 | $ | 18,260 | $ | 11,539 | ||||||||
Net (loss) income | $ | (3,649 | ) | $ | 7,487 | $ | 15,988 | $ | (2,929 | ) | |||||||
Per share data: | |||||||||||||||||
Net (loss) Income: | |||||||||||||||||
Basic | $ | (0.07 | ) | $ | 0.15 | $ | 0.31 | $ | (0.06 | ) | |||||||
Diluted | $ | (0.07 | ) | $ | 0.14 | $ | 0.31 | $ | (0.06 | ) | |||||||
Three months ended | |||||||||||||||||
Fiscal 2014 | June 29, | September 28, | December 28, | March 29, | |||||||||||||
2013 | 2013 | 2013 | 2014 | ||||||||||||||
Net revenues | $ | 219,543 | $ | 235,755 | $ | 242,120 | $ | 241,091 | |||||||||
Gross profit | $ | 111,412 | $ | 119,884 | $ | 121,629 | $ | 115,440 | |||||||||
Operating (loss) income | $ | (6,608 | ) | $ | 23,120 | $ | 17,554 | $ | 12,366 | ||||||||
Net (loss) income | $ | (7,874 | ) | $ | 16,548 | $ | 16,290 | $ | 10,184 | ||||||||
Per share data: | |||||||||||||||||
Net (loss) Income: | |||||||||||||||||
Basic | $ | (0.15 | ) | $ | 0.32 | $ | 0.31 | $ | 0.2 | ||||||||
Diluted | $ | (0.15 | ) | $ | 0.32 | $ | 0.31 | $ | 0.19 | ||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables) | 12 Months Ended | ||||||||||||||||
Mar. 28, 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 Income, net of tax, for the years ended March 28, 2015 and March 29, 2014: | ||||||||||||||||
(In thousands) | Foreign currency | Defined benefit plans | Net Unrealized Gain/loss on Derivatives | Total | |||||||||||||
Balance as of March 30, 2013 | $ | 4,133 | $ | (5,073 | ) | $ | 6,373 | $ | 5,433 | ||||||||
Other comprehensive (loss)/income before reclassifications | (935 | ) | 223 | 5,001 | 4,289 | ||||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | 258 | (8,570 | ) | (8,312 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (935 | ) | 481 | (3,569 | ) | (4,023 | ) | ||||||||||
Balance as of March 29, 2014 | $ | 3,198 | $ | (4,592 | ) | $ | 2,804 | $ | 1,410 | ||||||||
Other comprehensive (loss)/income before reclassifications | (23,710 | ) | (4,410 | ) | 11,371 | (16,749 | ) | ||||||||||
Amounts reclassified from Accumulated Other Comprehensive Income | — | 79 | (6,464 | ) | (6,385 | ) | |||||||||||
Net current period other comprehensive (loss)/income | (23,710 | ) | (4,331 | ) | 4,907 | (23,134 | ) | ||||||||||
Balance as of March 28, 2015 | $ | (20,512 | ) | $ | (8,923 | ) | $ | 7,711 | $ | (21,724 | ) | ||||||
Reclassification out of Accumulated Other Comprehensive Income | The details about the amount reclassified from Accumulated Other Comprehensive Income for the years ended March 28, 2015 and March 29, 2014 are as follows: | ||||||||||||||||
(In thousands) | Amounts Reclassified from Other Comprehensive Income | Affected Line in the | |||||||||||||||
Statement of Income | |||||||||||||||||
Derivative instruments reclassified to income statement | Year ended March 28, 2015 | Year ended March 29, 2014 | |||||||||||||||
Realized net gain on derivatives | $ | 6,736 | $ | 8,960 | Revenue, cost of goods sold, other income | ||||||||||||
Income tax effect | (272 | ) | (390 | ) | Provision for income taxes | ||||||||||||
Net of taxes | $ | 6,464 | $ | 8,570 | |||||||||||||
Pension items reclassified to income statement | |||||||||||||||||
Realized net loss on pension assets | $ | 123 | $ | 317 | Other income | ||||||||||||
Income tax effect | (44 | ) | (59 | ) | Provision for income taxes | ||||||||||||
Net of taxes | $ | 79 | $ | 258 | |||||||||||||
DESCRIPTION_OF_THE_BUSINESS_AN1
DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION (Details) | 0 Months Ended |
Nov. 30, 2012 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Stock split in form of dividend, conversion ratio | 2 |
SUMMARY_OF_SIGNIFICANT_ACCOUNT3
SUMMARY OF SIGNIFICANT ACCOUNTING PRONOUNCEMENTS (Details) (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Summary of Significant Accounting Pronouncements [Line Items] | |||
Term of each fiscal year | 1 year | 1 year | 1 year |
Term of each fiscal quarter | 91 days | 91 days | 91 days |
Cash and cash equivalents maximum maturity period | 3 months | ||
Goodwill impairment | $0 | $0 | $0 |
Intangible asset impairment | 0 | 0 | 0 |
Other Liabilities | |||
VAT liabilities | 4,205,000 | 7,114,000 | |
Forward contracts | 2,657,000 | 1,255,000 | |
Deferred revenue | 22,362,000 | 24,777,000 | |
All other | 34,987,000 | 26,564,000 | |
Other current liabilities | 64,211,000 | 59,710,000 | |
Advertising expense | 4,500,000 | 3,600,000 | 4,600,000 |
Foreign currency losses | 1,100,000 | 500,000 | 800,000 |
Building | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 30 years | ||
Sales [Member] | Customer Concentration Risk [Member] | |||
Other Liabilities | |||
Concentration risk, number of customers | 0 | 0 | |
Japanese Red Cross Society [Member] | Sales [Member] | Customer Concentration Risk [Member] | |||
Other Liabilities | |||
Concentration risk, number of customers | 1 | ||
Credit risk, accounts receivable | $90,100,000 | ||
Minimum | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Software capitalization term | 5 years | ||
Minimum | Building improvements | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Minimum | Plant equipment and machinery | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum | Office equipment and information technology | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Minimum | Haemonetics equipment | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Software capitalization term | 10 years | ||
Maximum | Building improvements | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 20 years | ||
Maximum | Plant equipment and machinery | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 15 years | ||
Maximum | Office equipment and information technology | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Maximum | Haemonetics equipment | |||
Summary of Significant Accounting Pronouncements [Line Items] | |||
Property, plant and equipment, useful life | 7 years |
ACQUISITIONS_Details
ACQUISITIONS (Details) (USD $) | 3 Months Ended | 12 Months Ended | 0 Months Ended | ||||||||||
Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Apr. 30, 2013 | Aug. 01, 2012 | |
Allocation of purchase price | |||||||||||||
Goodwill | $334,310,000 | $336,768,000 | $334,310,000 | $336,768,000 | $330,474,000 | ||||||||
Amortization expense | 33,500,000 | 29,200,000 | 22,100,000 | ||||||||||
Net revenues | 226,478,000 | 231,827,000 | 227,580,000 | 224,488,000 | 241,091,000 | 242,120,000 | 235,755,000 | 219,543,000 | 910,373,000 | 938,509,000 | 891,990,000 | ||
Whole blood | |||||||||||||
Allocation of purchase price | |||||||||||||
Net revenues | 143,905,000 | 190,698,000 | 138,436,000 | ||||||||||
Term Loan | |||||||||||||
Allocation of purchase price | |||||||||||||
Face amount of debt | 429,400,000 | 429,400,000 | |||||||||||
Hemerus Medical, LLC [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration paid | 24,100,000 | ||||||||||||
Allocation of purchase price | |||||||||||||
Goodwill | 6,425,000 | 6,425,000 | |||||||||||
Fair value of net assets acquired | 31,725,000 | 31,725,000 | |||||||||||
Amortization expense | 2,500,000 | 2,300,000 | |||||||||||
Hemerus Medical, LLC [Member] | Acquired technology | |||||||||||||
Allocation of purchase price | |||||||||||||
Intangible assets | 22,800,000 | 22,800,000 | |||||||||||
Hemerus Medical, LLC [Member] | Trade names | |||||||||||||
Allocation of purchase price | |||||||||||||
Intangible assets | 1,900,000 | 1,900,000 | |||||||||||
Hemerus Medical, LLC [Member] | Customer relationship | |||||||||||||
Allocation of purchase price | |||||||||||||
Intangible assets | 600,000 | 600,000 | |||||||||||
Hemerus Medical, LLC [Member] | FDA Approval of SOLX [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent consideration, maximum | 3,000,000 | ||||||||||||
Allocation of purchase price | |||||||||||||
Contingent consideration amount owed | 4,727,000 | 7,645,000 | 4,727,000 | 7,645,000 | |||||||||
Hemerus Medical, LLC [Member] | Future Sales of SOLX [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent consideration, maximum | 14,000,000 | ||||||||||||
Pall Corporation [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Consideration paid | 535,200,000 | ||||||||||||
Allocation of purchase price | |||||||||||||
Inventories | 49,917,000 | ||||||||||||
Property, plant and equipment | 85,984,000 | ||||||||||||
Intangible assets | 188,500,000 | ||||||||||||
Other assets/liabilities, net | -6,166,000 | ||||||||||||
Goodwill | 216,940,000 | ||||||||||||
Fair value of net assets acquired | 535,175,000 | ||||||||||||
Consideration transfered in shares | 500,000 | ||||||||||||
Net Sales | 963,923,000 | ||||||||||||
Net Income | 56,540,000 | ||||||||||||
Basic EPS | $1.10 | ||||||||||||
Diluted EPS | $1.08 | ||||||||||||
Pall Corporation [Member] | Term Loan | |||||||||||||
Allocation of purchase price | |||||||||||||
Face amount of debt | 475,000,000 | ||||||||||||
Pall Corporation [Member] | Acquired technology | |||||||||||||
Allocation of purchase price | |||||||||||||
Intangible assets | 61,000,000 | ||||||||||||
Pall Corporation [Member] | Customer relationship | |||||||||||||
Allocation of purchase price | |||||||||||||
Intangible assets | 127,500,000 | ||||||||||||
Useful life | 8 years | ||||||||||||
Pall Corporation [Member] | Acquired Technology and Customer Relationships | |||||||||||||
Allocation of purchase price | |||||||||||||
Amortization expense | 18,800,000 | 15,700,000 | 10,500,000 | ||||||||||
Useful life | 12 years | ||||||||||||
Pall Corporation [Member] | Replication and Delivery of Certain Manufacturing Assets [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Contingent consideration, maximum | $15,000,000 |
PRODUCT_WARRANTIES_Schedule_of
PRODUCT WARRANTIES (Schedule of Product Warranty Liability) (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
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 year | $590 | $673 |
Warranty provision | 1,199 | 1,340 |
Warranty spending | -1,258 | -1,423 |
Warranty accrual as of the end of the year | $531 | $590 |
INVENTORIES_Schedule_of_Invent
INVENTORIES (Schedule of Inventories) (Details) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Inventory Disclosure [Abstract] | ||
Raw materials | $71,794 | $72,508 |
Work-in-process | 12,462 | 7,383 |
Finished goods | 126,821 | 117,770 |
Total Inventory | $211,077 | $197,661 |
GOODWILL_AND_INTANGIBLE_ASSETS2
GOODWILL AND INTANGIBLE ASSETS Schedule of Goodwill (Details) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Goodwill [Roll Forward] | ||
Goodwill, carrying amount | $336,768 | $330,474 |
Hemerus acquisition | 6,425 | |
Effects of change in foreign currency exchange rates | -2,458 | -131 |
Goodwill, carrying amount | $334,310 | $336,768 |
GOODWILL_AND_INTANGIBLE_ASSETS3
GOODWILL AND INTANGIBLE ASSETS Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Intangible Assets | |||
Gross Carrying Amount | $377,763,000 | $372,853,000 | |
Accumulated Amortization | 133,175,000 | 101,694,000 | |
Net | 244,588,000 | 271,159,000 | |
Weighted average useful life | 10 years | 11 years | |
Aggregate amortization expense | 33,500,000 | 29,200,000 | 22,100,000 |
Future amortization expense, year one | 33,752,000 | ||
Future amortization expense, year two | 32,998,000 | ||
Future amortization expense, year three | 32,165,000 | ||
Future amortization expense, year four | 30,470,000 | ||
Future amortization expense, year five | 104,544,000 | ||
Patents | |||
Intangible Assets | |||
Gross Carrying Amount | 10,473,000 | 9,543,000 | |
Accumulated Amortization | 7,373,000 | 7,039,000 | |
Net | 3,100,000 | 2,504,000 | |
Weighted average useful life | 9 years | 9 years | |
Capitalized software | |||
Intangible Assets | |||
Gross Carrying Amount | 39,690,000 | 31,750,000 | |
Accumulated Amortization | 5,654,000 | 2,414,000 | |
Net | 34,036,000 | 29,336,000 | |
Weighted average useful life | 7 years | 4 years | |
Other developed technology | |||
Intangible Assets | |||
Gross Carrying Amount | 124,573,000 | 123,525,000 | |
Accumulated Amortization | 46,474,000 | 36,632,000 | |
Net | 78,099,000 | 86,893,000 | |
Weighted average useful life | 12 years | 12 years | |
Customer contracts and related relationships | |||
Intangible Assets | |||
Gross Carrying Amount | 195,985,000 | 200,694,000 | |
Accumulated Amortization | 70,440,000 | 52,741,000 | |
Net | 125,545,000 | 147,953,000 | |
Weighted average useful life | 10 years | 12 years | |
Trade names | |||
Intangible Assets | |||
Gross Carrying Amount | 7,042,000 | 7,341,000 | |
Accumulated Amortization | 3,234,000 | 2,868,000 | |
Net | $3,808,000 | $4,473,000 | |
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 |
DERIVATIVES_AND_FAIR_VALUE_MEA2
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Narrative) (Details) (USD $) | 12 Months Ended | |||||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Aug. 01, 2012 | Dec. 29, 2012 | Dec. 21, 2012 | |
swap | ||||||
Derivative [Line Items] | ||||||
Deferred tax benefit | $4,230,000 | ($202,000) | $589,000 | |||
Variable rate basis | LIBOR | |||||
Hemerus Medical, LLC [Member] | FDA Approval of SOLX [Member] | ||||||
Derivative [Line Items] | ||||||
Contingent consideration amount owed | 4,727,000 | 7,645,000 | ||||
Hemerus Medical, LLC [Member] | FDA Approval of SOLX [Member] | Fair Value Adjustment | ||||||
Derivative [Line Items] | ||||||
Contingent consideration amount owed | -2,918,000 | |||||
Term Loan | ||||||
Derivative [Line Items] | ||||||
Face amount of debt | 429,400,000 | |||||
Term Loan | Pall Corporation [Member] | ||||||
Derivative [Line Items] | ||||||
Adjusted libor rounding percentage | 6.25% | |||||
Face amount of debt | 475,000,000 | |||||
Credit Agreement | ||||||
Derivative [Line Items] | ||||||
Adjusted libor rounding percentage | 0.63% | |||||
Variable rate basis | 1-month USD-LIBOR-BBA | |||||
Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Percentage of sales generated outside the US | 45.60% | |||||
Maturity period for foreign currency contracts (in years) | 1 year | |||||
Designated as Hedging Instrument | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Designated foreign currency hedge contracts outstanding | 145,800,000 | 157,900,000 | ||||
Deferred tax benefit | -800,000 | |||||
Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 1,300,000 | -800,000 | ||||
Deferred tax benefit | 100,000 | |||||
Designated as Hedging Instrument | Cash Flow Hedging | ||||||
Derivative [Line Items] | ||||||
Gain (loss) on cash flow hedge in earnings | 6,500,000 | 8,600,000 | 2,700,000 | |||
Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Number of interest rate swaps held | 2 | |||||
Derivative, Fixed Interest Rate | 0.68% | |||||
Derivative, Notional Amount | 250,000,000 | |||||
Not Designated as Hedging Instrument | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 0 | |||||
Non-designated foreign currency hedge contracts outstanding | 45,800,000 | 72,900,000 | ||||
Net Revenues Cost Of Goods Sold And Selling General And Administrative Expense [Member] | Designated as Hedging Instrument | Foreign Exchange Contract | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 12,249,000 | 3,700,000 | 5,100,000 | |||
Other income (expense), net | Designated as Hedging Instrument | Interest Rate Swap | ||||||
Derivative [Line Items] | ||||||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | ($878,000) |
DERIVATIVES_AND_FAIR_VALUE_MEA3
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 $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Designated as Hedging Instrument | Foreign Exchange Contract | Net revenues, COGS, and SG&A | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | $12,249 | $3,700 | $5,100 |
Amount of Loss Reclassifiedfrom OCI into Earnings (Effective Portion) | 6,464 | ||
Designated as Hedging Instrument | Foreign Exchange Contract | Interest income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Excluded from Effectiveness Testing | -170 | ||
Designated as Hedging Instrument | Interest Rate Swap | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | 1,300 | -800 | |
Amount Excluded from Effectiveness Testing | 0 | ||
Designated as Hedging Instrument | Interest Rate Swap | Other income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI (Effective Portion) | -878 | ||
Amount of Loss Reclassifiedfrom OCI 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 OCI (Effective Portion) | 0 | ||
Amount of Loss Reclassifiedfrom OCI into Earnings (Effective Portion) | 0 | ||
Not Designated as Hedging Instrument | Foreign Exchange Contract | Interest income (expense), net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount Excluded from Effectiveness Testing | $7,510 |
DERIVATIVES_AND_FAIR_VALUE_MEA4
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Fair Value of Derivative Instruments as They Appear in Consolidated Balance Sheets) (Details) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Derivative Liabilities: | ||
Derivative Liabilities | $2,657 | $1,255 |
Designated as Hedging Instrument | ||
Derivative Assets: | ||
Derivative Assets | 9,740 | 3,824 |
Derivative Liabilities: | ||
Derivative Liabilities | 2,658 | 1,255 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 9,740 | 2,574 |
Designated as Hedging Instrument | Foreign Exchange Contract | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | 2,499 | 1,255 |
Designated as Hedging Instrument | Interest Rate Swap | Other Current Assets | ||
Derivative Assets: | ||
Derivative Assets | 0 | 1,250 |
Designated as Hedging Instrument | Interest Rate Swap | Other Current Liabilities | ||
Derivative Liabilities: | ||
Derivative Liabilities | $159 | $0 |
DERIVATIVES_AND_FAIR_VALUE_MEA5
DERIVATIVES AND FAIR VALUE MEASUREMENTS (Schedule of Financial Assets and Financial Liabilities Measured at Fair Value on a Recurring Basis) (Details) (Fair Value, Measurements, Recurring [Member], USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Assets | ||
Money market funds | $119,946 | $135,378 |
Foreign currency hedge contracts | 9,740 | 2,574 |
Interest rate swap | 1,250 | |
Assets, Fair Value Disclosure, Total | 129,686 | 139,202 |
Liabilities | ||
Foreign currency hedge contracts | 2,499 | 1,255 |
Interest rate swap | 159 | 7,645 |
Contingent consideration | 4,727 | |
Liabilities, Fair Value Disclosure, Total | 7,385 | 8,900 |
Quoted Market Prices for Identical Assets (Level 1) | ||
Assets | ||
Money market funds | 119,946 | 135,378 |
Foreign currency hedge contracts | 0 | 0 |
Interest rate swap | 0 | |
Assets, Fair Value Disclosure, Total | 119,946 | 135,378 |
Liabilities | ||
Foreign currency hedge contracts | 0 | 0 |
Interest rate swap | 0 | 0 |
Contingent consideration | 0 | |
Liabilities, Fair Value Disclosure, Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Assets | ||
Money market funds | 0 | 0 |
Foreign currency hedge contracts | 9,740 | 2,574 |
Interest rate swap | 1,250 | |
Assets, Fair Value Disclosure, Total | 9,740 | 3,824 |
Liabilities | ||
Foreign currency hedge contracts | 2,499 | 1,255 |
Interest rate swap | 159 | 0 |
Contingent consideration | 0 | |
Liabilities, Fair Value Disclosure, Total | 2,658 | 1,255 |
Significant Unobservable Inputs (Level 3) | ||
Assets | ||
Money market funds | 0 | 0 |
Foreign currency hedge contracts | 0 | 0 |
Interest rate swap | 0 | |
Assets, Fair Value Disclosure, Total | 0 | 0 |
Liabilities | ||
Foreign currency hedge contracts | 0 | 0 |
Interest rate swap | 0 | 7,645 |
Contingent consideration | 4,727 | |
Liabilities, Fair Value Disclosure, Total | $4,727 | $7,645 |
NOTES_PAYABLE_AND_LONGTERM_DEB2
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt) (Details) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
Long-term debt | $430,483 | |
Less current portion | -21,522 | -45,630 |
Long term debt | 406,369 | 392,057 |
Term loan, net of financing fees | ||
Debt Instrument [Line Items] | ||
Long-term debt | 426,814 | 435,338 |
Mortgage Obligation | ||
Debt Instrument [Line Items] | ||
Long-term debt | 851 | 1,906 |
Bank loans and other borrowings | ||
Debt Instrument [Line Items] | ||
Long-term debt | $226 | $443 |
NOTES_PAYABLE_AND_LONGTERM_DEB3
NOTES PAYABLE AND LONG-TERM DEBT (Narrative) (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | |||||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Aug. 01, 2012 | Jun. 30, 2014 | Dec. 31, 2000 | Dec. 29, 2012 | Dec. 02, 2000 | |
Debt Instrument [Line Items] | ||||||||
Variable rate basis | LIBOR | |||||||
Payments of Debt Issuance Costs | $1,013,000 | $0 | $5,467,000 | |||||
Interest paid | 8,497,000 | 8,942,000 | 5,910,000 | |||||
Interest payable | 600,000 | |||||||
Long-term debt | 430,483,000 | |||||||
Term Loan | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 429,400,000 | |||||||
Basis spread on variable rate | 1.38% | |||||||
Amount outstanding | 379,400,000 | |||||||
Effective interest rate | 2.00% | |||||||
Deferred finance costs | 5,500,000 | |||||||
Debt discount | -2,600,000 | |||||||
Term Loan | Pall Corporation [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 475,000,000 | |||||||
Adjusted libor rounding percentage | 6.25% | |||||||
Term loan, net of financing fees | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 426,814,000 | 435,338,000 | ||||||
Revolving Credit Facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 50,000,000 | |||||||
Term of debt | 5 years | |||||||
Maximum borrowing capacity | 100,000,000 | |||||||
Consolidated total leverage ratio | 3 | |||||||
Consolidated interest coverage ratio | 4 | |||||||
Commitment fee | 0.25% | |||||||
Long-term debt | 50,000,000 | |||||||
Revolving Credit Facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee | 0.18% | |||||||
Revolving Credit Facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fee | 0.30% | |||||||
Credit Agreement | ||||||||
Debt Instrument [Line Items] | ||||||||
Variable rate basis | 1-month USD-LIBOR-BBA | |||||||
Adjusted libor rounding percentage | 0.63% | |||||||
Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Effective interest rate | 1.56% | |||||||
Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.13% | |||||||
Credit Agreement | London Interbank Offered Rate (LIBOR) [Member] | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Basis spread on variable rate | 1.50% | |||||||
Mortgage Obligation | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | 10,000,000 | |||||||
Term of debt | 180 months | |||||||
Long-term debt | 851,000 | 1,906,000 | ||||||
Monthly principal and interest payments | $100,000 | |||||||
Stated percentage | 8.41% |
NOTES_PAYABLE_AND_LONGTERM_DEB4
NOTES PAYABLE AND LONG-TERM DEBT (Schedule of Notes Payable and Long-Term Debt Maturities) (Details) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Debt Instrument [Line Items] | ||
2015 | $22,337 | |
2016 | 42,748 | |
2017 | 45,071 | |
2018 | 151,763 | |
2020 | 168,564 | |
Long-term debt | 430,483 | |
Mortgage Obligation | ||
Debt Instrument [Line Items] | ||
2015 | 851 | |
2016 | 0 | |
2017 | 0 | |
2018 | 0 | |
2020 | 0 | |
Long-term debt | 851 | 1,906 |
Credit Facilities | ||
Debt Instrument [Line Items] | ||
2015 | 21,342 | |
2016 | 42,683 | |
2017 | 45,054 | |
2018 | 151,763 | |
2020 | 168,564 | |
Long-term debt | 429,406 | |
Bank loans and other borrowings | ||
Debt Instrument [Line Items] | ||
2015 | 144 | |
2016 | 65 | |
2017 | 17 | |
2018 | 0 | |
2020 | 0 | |
Long-term debt | $226 | $443 |
INCOME_TAXES_Narrative_Details
INCOME TAXES (Narrative) (Details) (USD $) | 12 Months Ended | |||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 31, 2012 | |
Income Taxes [Line Items] | ||||
Foregin source income | $48,430,000 | $43,260,000 | $32,537,000 | |
Valuation allowance | 8,524,000 | 2,400,000 | 0 | |
Tax credit carry-forward, net | 8,678,000 | 2,660,000 | ||
Undistributed foreign earnings of subsidiaries | 300,200,000 | |||
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | 7,070,000 | 5,604,000 | 6,930,000 | 6,885,000 |
Unrecognized tax benefits that will impact effective tax rate | 2,000,000 | 5,600,000 | 6,700,000 | |
Unrecognized tax benefits, increases from closure of statute of limitations | 1,500,000 | |||
Unrecognized tax positions possible change in the next twelve months | 900,000 | |||
Accrued interest and penalties | 700,000 | 800,000 | ||
Accrued interest on income tax benefit | 300,000 | 0 | 100,000 | |
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Valuation allowance | 12,900,000 | |||
Operating loss carry-forwards | 11,700,000 | |||
Tax credit carry-forward, net | 6,400,000 | |||
Domestic Tax Authority [Member] | Excess Stock Based Compensation | ||||
Income Taxes [Line Items] | ||||
Operating loss carry-forwards | 1,500,000 | |||
State and Local Jurisdiction [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carry-forwards | 23,600,000 | |||
Tax credit carry-forward, net | 4,000,000 | |||
State and Local Jurisdiction [Member] | Excess Stock Based Compensation | ||||
Income Taxes [Line Items] | ||||
Operating loss carry-forwards | 4,000,000 | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carry-forwards | $6,600,000 | |||
Switzerland | ||||
Income Taxes [Line Items] | ||||
Tax holiday term | 10 years |
INCOME_TAXES_Schedule_Domestic
INCOME TAXES (Schedule Domestic and Foreign Income Before Provision for Income Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Income Tax Disclosure [Abstract] | |||
Domestic | ($17,265) | ($6,859) | $17,360 |
Foreign | 48,430 | 43,260 | 32,537 |
Income before provision for income taxes | $31,165 | $36,401 | $49,897 |
INCOME_TAXES_Schedule_of_Incom
INCOME TAXES (Schedule of Income Tax Provision Components) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Current | |||
Federal | $3,526 | ($4,896) | $3,795 |
State | 898 | 873 | 1,324 |
Foreign | 5,614 | 5,478 | 5,389 |
Total current | 10,038 | 1,455 | 10,508 |
Deferred | |||
Federal | 1,227 | -1,785 | 1,644 |
State | 3,215 | 207 | -229 |
Foreign | -212 | 1,376 | -826 |
Total deferred | 4,230 | -202 | 589 |
Total | $14,268 | $1,253 | $11,097 |
INCOME_TAXES_Schedule_of_Net_D
INCOME TAXES (Schedule of Net Deferred Tax Asset) (Details) (USD $) | Mar. 28, 2015 | Mar. 29, 2014 |
In Thousands, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ||
Depreciation | ($23,733) | ($23,658) |
Amortization | -24,038 | -18,618 |
Inventory | 6,189 | 7,371 |
Hedging | 84 | 321 |
Accruals, reserves and other | 15,927 | 10,368 |
Net operating loss carry-forward | 5,392 | 1,507 |
Stock based compensation | 10,652 | 8,757 |
Tax credit carry-forward, net | 8,678 | 2,660 |
Gross deferred taxes | -849 | -11,292 |
Less valuation allowance | -16,027 | -3,083 |
Net deferred tax liability | ($16,876) | ($14,375) |
INCOME_TAXES_Schedule_of_Effec
INCOME TAXES (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Income Tax Disclosure [Abstract] | |||
Tax at federal statutory rate | $10,907 | $12,739 | $17,464 |
Tax at federal statutory rate | 35.00% | 35.00% | 35.00% |
Domestic manufacturing deduction | 0 | 0 | -504 |
Domestic manufacturing deduction | 0.00% | 0.00% | -1.00% |
Difference between U.S. and foreign tax | -6,929 | -10,846 | -5,584 |
Difference between U.S. and foreign tax | -22.20% | -29.80% | -11.20% |
State income taxes net of federal benefit | -818 | -252 | 718 |
State income taxes net of federal benefit | -2.60% | -0.70% | 1.40% |
Change in uncertain tax positions | -1,762 | -1,678 | -580 |
Change in uncertain tax positions | -5.70% | -4.60% | -1.20% |
Intercompany loan deduction | 0 | -2,185 | 0 |
Intercompany loan deduction | 0.00% | -6.00% | 0.00% |
Non-deductible expenses | 1,237 | 1,035 | 1,178 |
Non-deductible expenses | 4.00% | 2.80% | 2.40% |
Research credits | -1,000 | -688 | -799 |
Research credits | -3.20% | -1.90% | -1.60% |
Naked Credit | 3,826 | 0 | 0 |
Naked Credit | 12.30% | 0.00% | 0.00% |
Valuation allowance | 8,524 | 2,400 | 0 |
Valuation allowance | 27.40% | 6.60% | 0.00% |
Other, net | 283 | 728 | -796 |
Other, net | 0.80% | 2.00% | -1.60% |
Total | $14,268 | $1,253 | $11,097 |
Income tax provision | 45.80% | 3.40% | 22.20% |
INCOME_TAXES_Summary_of_Gross_
INCOME TAXES (Summary of Gross Unrecognized Tax Benefits) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $5,604 | $6,930 | $6,885 |
Additions based upon positions related to the current year | 0 | 0 | 1,192 |
Additions for tax positions of prior years | 3,234 | 990 | 18 |
Settlements with taxing authorities | -338 | 0 | -80 |
Closure of statute of limitations | -1,430 | -2,316 | -1,085 |
Ending Balance | $7,070 | $5,604 | $6,930 |
COMMITMENTS_AND_CONTINGENCIES_1
COMMITMENTS AND CONTINGENCIES (Schedule of Approximate Future Basic Rental Commitments under Operating Leases) (Details) (USD $) | Mar. 28, 2015 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | |
2016 | $6,797 |
2017 | 4,780 |
2018 | 3,758 |
2019 | 2,427 |
2020 and thereafter | 11,585 |
Operating Leases, Future Minimum Payments Due | $29,347 |
COMMITMENTS_AND_CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Mar. 29, 2014 |
Loss Contingencies [Line Items] | ||||
Rent expense | $6.30 | $7.70 | $7 | |
Italian Employment Litigation | ||||
Loss Contingencies [Line Items] | ||||
Damages sought | $3.70 |
CAPITAL_STOCK_Narrative_Detail
CAPITAL STOCK (Narrative) (Details) (USD $) | 12 Months Ended | |||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | Oct. 22, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock compensation expense | $14,095,000 | $13,081,000 | $10,969,000 | |
Stock-based compensation expense recognized | 13,100,000 | 11,000,000 | ||
Income tax benefit recognized related to stock-based compensation | 4,500,000 | 4,300,000 | 3,500,000 | |
Excess tax benefit on exercise of stock options | 1,569,000 | 2,395,000 | 4,101,000 | |
Performance shares target, percentage | 100.00% | |||
Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options outstanding (in shares) | 3,761,666 | 3,834,372 | ||
Total intrinsic value of options exercised | 5,600,000 | 11,700,000 | 20,900,000 | |
Total unrecognized compensation cost related to non vested awards | 9,200,000 | |||
Total unrecognized compensation cost related to non vested stock options, weighted average period of recognition (in years) | 2 years 4 months 13 days | |||
Weighted average grant date fair value of options granted (in dollars per share) | $7.91 | $10.15 | $9.76 | |
Annual unvested stock option forfeiture rate (as a percent) | 8.00% | 8.00% | ||
Market Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity instruments other than options outstanding (in shares) | 287,682 | |||
Total unrecognized compensation cost related to non vested awards | 11,200,000 | |||
Weighted Average Market Value at Grant Date (in dollars per share), Beginning Balance | $37.42 | |||
Performance Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for award (in shares) | 863,046 | |||
Weighted Average Market Value at Grant Date (in dollars per share), Awarded | $85 | |||
Stock compensation expense | 662,000 | |||
Total unrecognized compensation cost related to non vested awards | 3,869,000 | |||
Number of senior executives | 14 | |||
Performance Shares Threshold | $50 | |||
Performance Shares Received Below Threshold | 0 | |||
Performance Shares Target Multiplier | 3 | |||
Weighted Average Market Value at Grant Date (in dollars per share), Beginning Balance | $35.09 | |||
Target Shares (in shares) | 129,130 | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total unrecognized compensation cost related to non vested awards | $13,200,000 | |||
Total unrecognized compensation cost related to non vested stock options, weighted average period of recognition (in years) | 2 years 4 months 13 days | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares target, percentage | 0.00% | |||
Minimum | Performance Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target Shares (in shares) | 0 | |||
Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance shares target, percentage | 200.00% | |||
Maximum | Performance Share Units (PSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Target Shares (in shares) | 258,260 | |||
Long-term Incentive Plan 2000 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for award (in shares) | 7,000,000 | |||
Long-term Incentive Plan 2000 [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for grant (in shares) | 0 | |||
Options outstanding (in shares) | 55,750 | |||
Incentive Compensation Plan 2005 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of members on board of directors (in board members) | 3 | |||
Maximum number of shares available for award (in shares) | 15,024,920 | |||
Maximum number of shares available for grant (in shares) | 999,243 | |||
Number of equity instruments other than options counted against maximum number of award shares for every share granted (in shares) | 3.26 | |||
Maximum number of years from grant date that options expire (in years) | 7 years | |||
Incentive Compensation Plan 2005 [Member] | Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for award (in shares) | 500,000 | |||
Number of options counted against maximum number of award shares for every share option issued (in shares) | 1 | |||
Incentive Compensation Plan 2005 [Member] | Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Period in which awards become exercisable for employees (in years) | 4 years | |||
Period after grant that awards become exercisable for non-employee directors (in years) | 1 year | |||
Equity instruments other than options outstanding (in shares) | 357,547 | |||
Employee Stock Purchase Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of shares available for award (in shares) | 1,400,000 | |||
Number of purchase periods (in purchase periods) | 2 | |||
Percentage of purchase price for shares of common stock at fair market value (as a percent) | 85.00% | |||
Weighted average grant date fair value of the six-month option inherent in the Purchase Plan (in dollars per share) | $7.09 | $8.25 | $8.50 | |
Employee Stock Purchase Plan [Member] | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares purchased through payroll deductions (as a percent) | 2.00% | |||
Employee Stock Purchase Plan [Member] | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of shares purchased through payroll deductions (as a percent) | 15.00% |
CAPITAL_STOCK_Schedule_of_Summ
CAPITAL STOCK (Schedule of Summary of Stock Option Activity) (Details) (Stock Options [Member], USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options Outstanding, (in shares), Beginning Balance | 3,834,372 | |
Options Outstanding, (in shares), Granted | 592,024 | |
Options Outstanding, (in shares), Exercised | -500,103 | |
Options Outstanding, (in shares), Forfeited | -164,627 | |
Options Outstanding, (in shares), Ending Balance | 3,761,666 | 3,834,372 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ||
Weighted Average Exercise Price (in dollars per share), Beginning Balance | $32.93 | |
Weighted Average Exercise Price (in dollars per share), Granted | $34.87 | |
Weighted Average Exercise Price (in dollars per share), Exercised | $26.14 | |
Weighted Average Exercise Price (in dollars per share), Forfeited | $38.13 | |
Weighted Average Exercise Price (in dollars per share), Ending Balance | $33.90 | $32.93 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Weighted Average Remaining Life, Beginning Balance | 4 years 0 months 7 days | 4 years 2 months 9 days |
Aggregate Intrinsic Value, Beginning Balance | $9,436 | |
Weighted Average Remaining Life, Ending Balance | 4 years 0 months 7 days | 4 years 2 months 9 days |
Aggregate Intrinsic Value, Ending Balance | 37,067 | 9,436 |
Options Outstanding, (in shares), Exercisable and End of Period | 2,281,022 | |
Weighted Average Exercise Price (in dollars per share), Exercisable at End of Period | $31.57 | |
Weighted Average Remaining Life, Exercisable at End of Period | 2 years 11 months 1 day | |
Aggregate Intrinsic Value, Exercisable at End of Period | 27,826 | |
Options Outstanding, (in shares), Vested and Expected to Vest at End of Period | 3,596,493 | |
Weighted Average Exercise Price (in dollars per share), Vested or Expected to Vest at End of Period | $33.73 | |
Weighted Average Remaining Life, Vested or Expected to Vest at End of Period | 3 years 11 months 5 days | |
Aggregate Intrinsic Value, Vested and Expected to Vest at End of Period | $36,066 |
CAPITAL_STOCK_Schedule_of_Assu
CAPITAL STOCK (Schedule of Assumptions Used to Estimate Fair Value) (Details) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend Yield | 0.00% | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 23.70% | 22.90% | 24.90% |
Expected term | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.10% | 0.10% | 0.20% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
Market Stock Units [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 20.00% | ||
Expected term | 3 years 8 months 12 days | ||
Risk-free interest rate | 0.90% | ||
Performance Share Units (PSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 20.00% | ||
Expected term | 3 years | ||
Risk-free interest rate | 0.78% | ||
Dividend history | 12 months | ||
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Volatility | 22.50% | 24.80% | 26.40% |
Expected term | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Risk-free interest rate | 1.50% | 1.30% | 0.80% |
Dividend Yield | 0.00% | 0.00% | 0.00% |
CAPITAL_STOCK_Schedule_of_Summ1
CAPITAL STOCK (Schedule of Summary of Performance, Restricted, and Market Stock Units Activity) (Details) (Performance, Restricted and Market Stock Units [Member], USD $) | 12 Months Ended |
Mar. 28, 2015 | |
Performance, Restricted and Market Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested [Roll Forward] | |
Shares, Beginning Balance | 599,673 |
Shares, Awarded | 351,666 |
Shares, Released | -110,048 |
Shares, Forfeited | -66,932 |
Shares, Ending Balance | 774,359 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | |
Weighted Average Market Value at Grant Date (in dollars per share), Beginning Balance | $37.70 |
Weighted Average Market Value at Grant Date (in dollars per share), Awarded | $35.18 |
Weighted Average Market Value at Grant Date (in dollars per share), Released | $36.65 |
Weighted Average Market Value at Grant Date (in dollars per share), Forfeited | $37.83 |
Weighted Average Market Value at Grant Date (in dollars per share), Ending Balance | $36.70 |
EARNINGS_PER_SHARE_EPS_Schedul
EARNINGS PER SHARE ("EPS") (Schedule of Earnings Per Share Reconciliation) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Basic EPS | |||||||||||
Net income | ($2,929) | $15,988 | $7,487 | ($3,649) | $10,184 | $16,290 | $16,548 | ($7,874) | $16,897 | $35,148 | $38,800 |
Basic weighted average shares (in shares) | 51,533,000 | 51,611,000 | 51,349,000 | ||||||||
Basic income per share (in dollars per share) | ($0.06) | $0.31 | $0.15 | ($0.07) | $0.20 | $0.31 | $0.32 | ($0.15) | $0.33 | $0.68 | $0.76 |
Diluted EPS | |||||||||||
Net income | ($2,929) | $15,988 | $7,487 | ($3,649) | $10,184 | $16,290 | $16,548 | ($7,874) | $16,897 | $35,148 | $38,800 |
Basic weighted average shares (in shares) | 51,533,000 | 51,611,000 | 51,349,000 | ||||||||
Net effect of common stock equivalents (in shares) | 556,000 | 766,000 | 910,000 | ||||||||
Diluted weighted average shares (in shares) | 52,089,000 | 52,377,000 | 52,259,000 | ||||||||
Diluted income per share (in dollars per share) | ($0.06) | $0.31 | $0.14 | ($0.07) | $0.19 | $0.31 | $0.32 | ($0.15) | $0.32 | $0.67 | $0.74 |
Stock options excluded from computation of weighted average shares outstanding (in shares) | 1,600,000 | 1,100,000 | 500,000 |
PROPERTY_PLANT_AND_EQUIPMENT_D
PROPERTY, PLANT AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Total | $731,762,000 | $701,855,000 | |
Less: accumulated depreciation and amortization | 409,814,000 | 430,418,000 | |
Net property, plant and equipment | 321,948,000 | 271,437,000 | |
Depreciation expense | 52,600,000 | 52,600,000 | 43,400,000 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total | 9,468,000 | 7,168,000 | |
Building and building improvements | |||
Property, Plant and Equipment [Line Items] | |||
Total | 118,384,000 | 83,439,000 | |
Plant equipment and machinery | |||
Property, Plant and Equipment [Line Items] | |||
Total | 220,793,000 | 236,539,000 | |
Office equipment and information technology | |||
Property, Plant and Equipment [Line Items] | |||
Total | 118,810,000 | 111,925,000 | |
Haemonetics equipment | |||
Property, Plant and Equipment [Line Items] | |||
Total | $264,307,000 | $262,784,000 |
RETIREMENT_PLANS_Narrative_Det
RETIREMENT PLANS (Narrative) (Details) (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Benefit obligation, plan funded by company | $9,200,000 | $7,400,000 | |
Benefit obligation | -40,567,000 | -32,621,000 | -30,126,000 |
Accumulated benefit obligation | 34,900,000 | 30,900,000 | |
Fair value of plan assets | 23,165,000 | 19,981,000 | 19,577,000 |
Amount expected to be amortized from accumulated other comprehensive loss in next fiscal year | 600,000 | ||
Subsidiaries [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | 1,000,000 | 800,000 | 2,400,000 |
Savings Plus Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Company contributions | $5,800,000 | $6,200,000 | $4,900,000 |
RETIREMENT_PLANS_Schedule_of_C
RETIREMENT PLANS (Schedule of Components of Net Periodic Benefit Costs of Defined Benefit Pension Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Compensation and Retirement Disclosure [Abstract] | |||
Service cost | $2,979 | $3,351 | $2,759 |
Interest cost on benefit obligation | 686 | 623 | 639 |
Expected (return)/loss on plan assets | -449 | -435 | -413 |
Actuarial loss/(gain) | 107 | 88 | 196 |
Amortization of unrecognized prior service cost | -29 | 182 | -14 |
Amortization of unrecognized transition obligation | 45 | 47 | 48 |
Totals | $3,339 | $3,856 | $3,215 |
RETIREMENT_PLANS_Schedule_of_A
RETIREMENT PLANS (Schedule of Activity Under Defined Benefit Plans) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Change in Benefit Obligation: | |||
Benefit Obligation, beginning of year | ($32,621) | ($30,126) | |
Service cost | -2,979 | -3,351 | -2,759 |
Interest cost | -686 | -623 | -639 |
Benefits paid | 4,902 | 4,474 | |
Actuarial (loss)/gain | -6,883 | 55 | |
Employee and plan participants contribution | -2,978 | -2,963 | |
Plan Amendments | 114 | 419 | |
Foreign currency changes | 564 | -506 | |
Benefit obligation, end of year | -40,567 | -32,621 | -30,126 |
Change in Plan Assets: | |||
Fair value of plan assets, beginning of year | 19,981 | 19,577 | |
Company contributions | 2,112 | 2,241 | |
Benefits paid | -4,621 | -4,641 | |
Gain/(Loss) on plan assets | 506 | 100 | |
Employee and plan participants contributions | 2,851 | 3,087 | |
Employee and plan participants contributions | 2,978 | 2,963 | |
Foreign currency changes | 2,336 | -383 | |
Fair value of Plan Assets, end of year | 23,165 | 19,981 | 19,577 |
Funded Status | -17,402 | -12,640 | |
Unrecognized net actuarial loss/(gain) | 11,096 | 5,899 | |
Unrecognized initial obligation | 64 | 94 | |
Unrecognized prior service cost | -459 | -422 | |
Net amount recognized | ($6,701) | ($7,069) |
RETIREMENT_PLANS_Schedule_of_C1
RETIREMENT PLANS (Schedule of Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Components of Change Recorded in Accumulated Other Comprehensive Income Related to Defined Benefit Plans, Net of Tax [Roll Forward] | |||
Impact of Defined Benefit Plans, Net of Tax, Balance | ($4,592) | ($5,073) | ($4,253) |
Obligation at transition | -19 | 172 | 556 |
Actuarial loss | -6,198 | -129 | -1,237 |
Prior service cost | 1,886 | 438 | -139 |
Impact of Defined Benefit Plans, Net of Tax, Balance | ($8,923) | ($4,592) | ($5,073) |
RETIREMENT_PLANS_Schedule_of_W
RETIREMENT PLANS (Schedule of Weighted Average Rates Used to Determine Net Periodic Benefit Costs) (Details) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Compensation and Retirement Disclosure [Abstract] | |||
Discount rate | 0.93% | 2.02% | 1.97% |
Rate of increased salary levels | 1.65% | 1.57% | 1.42% |
Expected long-term rate of return on assets | 1.68% | 1.94% | 1.92% |
RETIREMENT_PLANS_Schedule_of_E
RETIREMENT PLANS (Schedule of Estimated Future Benefit Payments) (Details) (USD $) | Mar. 28, 2015 |
In Thousands, unless otherwise specified | |
Expected Benefit Payments | |
Fiscal Year 2016 | $1,735 |
Fiscal Year 2017 | 1,654 |
Fiscal Year 2018 | 1,502 |
Fiscal Year 2019 | 1,610 |
Fiscal Year 2020 | 1,732 |
Fiscal Year 2021-2024 | $7,493 |
SEGMENT_INFORMATION_Revenues_f
SEGMENT INFORMATION (Revenues from External Customers) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
segment | |||||||||||
Segment Reporting [Abstract] | |||||||||||
Number of Operating Segments | 4 | ||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $226,478 | $231,827 | $227,580 | $224,488 | $241,091 | $242,120 | $235,755 | $219,543 | $910,373 | $938,509 | $891,990 |
Plasma disposables | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 319,190 | 291,895 | 268,900 | ||||||||
Blood center disposables | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 339,193 | 389,719 | 357,771 | ||||||||
Platelet | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 152,588 | 156,643 | 169,602 | ||||||||
Red cell | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 42,700 | 42,378 | 49,733 | ||||||||
Whole blood | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 143,905 | 190,698 | 138,436 | ||||||||
Hospital disposables | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 125,043 | 125,220 | 131,094 | ||||||||
Surgical | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 62,540 | 66,876 | 73,508 | ||||||||
OrthoPAT | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 20,316 | 25,042 | 30,230 | ||||||||
Diagnostics | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 42,187 | 33,302 | 27,356 | ||||||||
Disposables revenue | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 783,426 | 806,834 | 757,765 | ||||||||
Software solutions | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | 72,185 | 70,441 | 69,952 | ||||||||
Equipment & other | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Total revenues | $54,762 | $61,234 | $64,273 |
SEGMENT_INFORMATION_Enterprise
SEGMENT INFORMATION (Enterprise Wide Disclosures about Product and Services) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $910,373 | $938,509 | $891,990 |
Total Assets | 1,485,417 | 1,514,178 | 1,461,917 |
Long-Lived Assets | 915,140 | 891,202 | 851,815 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 494,788 | 500,719 | 454,874 |
Total Assets | 810,159 | 810,409 | 830,754 |
Long-Lived Assets | 532,187 | 519,396 | 503,606 |
Other North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 9,617 | 9,557 | 6,851 |
Total Assets | 240,610 | 225,998 | 225,849 |
Long-Lived Assets | 212,548 | 211,624 | 209,439 |
Total North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 504,405 | 510,276 | 461,725 |
Total Assets | 1,050,769 | 1,036,407 | 1,056,603 |
Long-Lived Assets | 744,735 | 731,020 | 713,045 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 88,298 | 108,679 | 120,726 |
Total Assets | 41,621 | 53,207 | 44,189 |
Long-Lived Assets | 9,230 | 11,522 | 12,977 |
Other Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 102,095 | 94,762 | 84,860 |
Total Assets | 79,084 | 53,055 | 41,037 |
Long-Lived Assets | 46,857 | 17,269 | 8,076 |
Total Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 215,575 | 224,792 | 224,679 |
Total Assets | 313,943 | 371,509 | 320,088 |
Long-Lived Assets | $114,318 | $131,391 | $117,717 |
RESTRUCTURING_Narrative_Detail
RESTRUCTURING (Narrative) (Details) (USD $) | 12 Months Ended | ||
Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 | |
Restructuring and Related Activities [Abstract] | |||
Expected cost | $45,000,000 | ||
Expected cost in cash | 27,000,000 | ||
Restructuring charges incurred | 36,863,000 | 49,051,000 | 10,892,000 |
Restructuring charges in next twelve months | 13,300,000 | ||
Transformation costs | 29,916,000 | 35,700,000 | 61,565,000 |
Payments | ($42,265,000) | ($25,372,000) | ($5,377,000) |
RESTRUCTURING_Schedule_of_Rest
RESTRUCTURING (Schedule of Restructuring Reserve by Type of Cost) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | $23,636 | $3,262 | $1,994 |
Cost Incurred | 36,863 | 49,051 | 10,892 |
Payments | -42,265 | -25,372 | -5,377 |
Asset Write down | -1,622 | -3,305 | -4,247 |
Ending Balance | 16,612 | 23,636 | 3,262 |
Transformation costs | 29,916 | 35,700 | 61,565 |
Total restructuring and transformation | 66,779 | 84,751 | 72,457 |
Integration and other costs | |||
Restructuring Reserve [Roll Forward] | |||
Transformation costs | 24,061 | 30,701 | 60,878 |
Accelerated depreciation | |||
Restructuring Reserve [Roll Forward] | |||
Transformation costs | 930 | 4,203 | 687 |
Asset disposal | |||
Restructuring Reserve [Roll Forward] | |||
Transformation costs | 4,925 | 796 | 0 |
Severance and other employee costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 22,908 | 3,089 | 1,461 |
Cost Incurred | 19,879 | 31,492 | 6,214 |
Payments | -26,394 | -11,673 | -4,586 |
Asset Write down | 0 | 0 | 0 |
Ending Balance | 16,393 | 22,908 | 3,089 |
Other costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 728 | 173 | |
Cost Incurred | 15,362 | 14,254 | 431 |
Payments | -15,871 | -13,699 | |
Asset Write down | 0 | 0 | |
Ending Balance | 219 | 728 | 173 |
Accelerated depreciation | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Cost Incurred | 1,326 | 2,390 | 0 |
Payments | 0 | 0 | |
Asset Write down | -1,326 | -2,390 | |
Ending Balance | 0 | 0 | 0 |
Facility-related costs | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 533 | ||
Cost Incurred | 431 | ||
Payments | -791 | ||
Asset Write down | 0 | ||
Ending Balance | 173 | ||
Asset write-down | |||
Restructuring Reserve [Roll Forward] | |||
Beginning Balance | 0 | 0 | 0 |
Cost Incurred | 296 | 915 | 4,247 |
Payments | 0 | 0 | |
Asset Write down | -296 | -915 | -4,247 |
Ending Balance | 0 | 0 | 0 |
Asset disposal | |||
Restructuring Reserve [Roll Forward] | |||
Cost Incurred | $296 | $915 | $4,247 |
CAPITALIZATION_OF_SOFTWARE_DEV1
CAPITALIZATION OF SOFTWARE DEVELOPMENT COSTS (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Capitalization of Software and Development Costs [Abstract] | |||
Capitalized software development costs for ongoing initiatives | $9.50 | $6 | |
Software costs capitalized, net | 39.7 | 31.7 | |
Total costs capitalized related to in process software development initiatives | 7.9 | 15.6 | |
Interest costs capitalized | 0.2 | 0.4 | |
Capitalized costs amortized (placed into service) | 15.7 | 10.4 | |
Amortization of capitalized software development cost expense | $3.20 | $1.10 | $0.90 |
SUMMARY_OF_QUARTERLY_DATA_UNAU2
SUMMARY OF QUARTERLY DATA (UNAUDITED) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Quarterly Financial Data [Abstract] | |||||||||||
Net revenues | $226,478 | $231,827 | $227,580 | $224,488 | $241,091 | $242,120 | $235,755 | $219,543 | $910,373 | $938,509 | $891,990 |
Gross profit | 108,365 | 111,661 | 108,114 | 106,278 | 115,440 | 121,629 | 119,884 | 111,412 | 434,418 | 468,365 | 428,131 |
Operating (loss) income | 11,539 | 18,260 | 12,407 | -1,666 | 12,366 | 17,554 | 23,120 | -6,608 | 40,540 | 46,432 | 56,437 |
Net (loss) income | ($2,929) | $15,988 | $7,487 | ($3,649) | $10,184 | $16,290 | $16,548 | ($7,874) | $16,897 | $35,148 | $38,800 |
Per share data: | |||||||||||
Basic income per share (in dollars per share) | ($0.06) | $0.31 | $0.15 | ($0.07) | $0.20 | $0.31 | $0.32 | ($0.15) | $0.33 | $0.68 | $0.76 |
Diluted income per share (in dollars per share) | ($0.06) | $0.31 | $0.14 | ($0.07) | $0.19 | $0.31 | $0.32 | ($0.15) | $0.32 | $0.67 | $0.74 |
ACCUMULATED_OTHER_COMPREHENSIV2
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 1) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income, Balance | $1,410 | $5,433 | |
Other comprehensive income before reclassifications | -16,749 | 4,289 | |
Amounts reclassified from Accumulated Other Comprehensive Income | -6,385 | -8,312 | |
Other comprehensive loss | -23,134 | -4,023 | -3,677 |
Accumulated Other Comprehensive Income, Balance | -21,724 | 1,410 | 5,433 |
Foreign currency | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income, Balance | 3,198 | 4,133 | |
Other comprehensive income before reclassifications | -23,710 | -935 | |
Amounts reclassified from Accumulated Other Comprehensive Income | 0 | 0 | |
Other comprehensive loss | -23,710 | -935 | |
Accumulated Other Comprehensive Income, Balance | -20,512 | 3,198 | |
Defined benefit plans | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income, Balance | -4,592 | -5,073 | |
Other comprehensive income before reclassifications | -4,410 | 223 | |
Amounts reclassified from Accumulated Other Comprehensive Income | 79 | 258 | |
Other comprehensive loss | -4,331 | 481 | |
Accumulated Other Comprehensive Income, Balance | -8,923 | -4,592 | |
Net Unrealized Gain/loss on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated Other Comprehensive Income, Balance | 2,804 | 6,373 | |
Other comprehensive income before reclassifications | 11,371 | 5,001 | |
Amounts reclassified from Accumulated Other Comprehensive Income | -6,464 | -8,570 | |
Other comprehensive loss | 4,907 | -3,569 | |
Accumulated Other Comprehensive Income, Balance | $7,711 | $2,804 |
ACCUMULATED_OTHER_COMPREHENSIV3
ACCUMULATED OTHER COMPREHENSIVE INCOME (Details 2) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 28, 2014 | Mar. 29, 2014 | Dec. 28, 2013 | Sep. 28, 2013 | Jun. 29, 2013 | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Realized net gain on derivatives | ($9,375) | ($10,031) | ($6,540) | ||||||||
Income tax effect | -14,268 | -1,253 | -11,097 | ||||||||
Net income | -2,929 | 15,988 | 7,487 | -3,649 | 10,184 | 16,290 | 16,548 | -7,874 | 16,897 | 35,148 | 38,800 |
Net Unrealized Gain/loss on Derivatives | Amounts Reclassified from Other Comprehensive Income | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Realized net gain on derivatives | 6,736 | 8,960 | |||||||||
Income tax effect | -272 | -390 | |||||||||
Net income | 6,464 | 8,570 | |||||||||
Defined benefit plans | Amounts Reclassified from Other Comprehensive Income | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Realized net gain on derivatives | 123 | 317 | |||||||||
Income tax effect | -44 | -59 | |||||||||
Net income | $79 | $258 |
VALUATION_AND_QUALIFYING_ACCOU1
VALUATION AND QUALIFYING ACCOUNTS (Details) (Allowance for Doubtful Accounts, USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 28, 2015 | Mar. 29, 2014 | Mar. 30, 2013 |
Allowance for Doubtful Accounts | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Fiscal Year | $1,676 | $1,727 | $1,480 |
Charged to Costs and Expenses | 399 | 186 | 446 |
Write-Offs (Net of Recoveries) | -326 | -237 | -199 |
Balance at End of Fiscal Year | $1,749 | $1,676 | $1,727 |