What changed in this filing

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Item 1. Financial Statements

2023-02-07 compared with 2022-11-08 · 127 added, 112 removed, 512 unchanged (32% of the section changed)

3 unchanged sentences

(Unaudited in thousands, except per share data)

Three Months Ended Six Months Ended

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

2022 January 1,

2022 December 31,

2022 January 1,

Net revenues $ 305,301 $ 259,769 $ 864,244 $ 728,194

25 unchanged sentences

Cash and cash equivalents $ 224,002 $ 259,496

Accounts receivable, less allowance for credit losses of $ 2,495 at October 1, 2022 and $ 2,475 at April 2, 2022

Accounts receivable, less allowance for credit losses of $ 2,738 at December 31, 2022 and $ 2,475 at April 2, 2022

181,100 159,376

3 unchanged sentences

Property, plant and equipment, net 313,138 258,482

Intangible assets, less accumulated amortization of $ 395,822 at October 1, 2022 and $ 376,552 at April 2, 2022

Intangible assets, less accumulated amortization of $ 407,039 at December 31, 2022 and $ 376,552 at April 2, 2022

284,383 310,261

16 unchanged sentences

Authorized — 150,000,000 shares;

Issued and outstanding — 50,605,499 shares at October 1, 2022 and 51,124,240 shares at April 2, 2022

Issued and outstanding — 50,444,470 shares at December 31, 2022 and 51,124,240 shares at April 2, 2022

Additional paid-in capital 587,489 572,476

27 unchanged sentences

Balance, October 1, 2022 50,605 $ 506 $ 564,394 $ 204,364 $ ( 40,255 ) $ 729,009

Employee stock purchase plan 45 — 1,919 — — 1,919

Shares repurchased ( 211 ) ( 2 ) 13,525 ( 13,523 ) — —

Exercise of stock options 3 — 160 — — 160

Issuance of restricted stock, net of cancellations 2 — — — — —

Share-based compensation expense — — 7,491 — — 7,491

Net income — — — 32,944 — 32,944

Other comprehensive income — — — — 4,456 4,456

Balance, December 31, 2022 50,444 $ 504 $ 587,489 $ 223,785 $ ( 35,799 ) $ 775,979

Common Stock Additional

18 unchanged sentences

Balance, October 2, 2021 51,060 $ 511 $ 558,156 $ 169,418 $ ( 29,536 ) $ 698,549

Employee stock purchase plan 36 — 1,999 — — 1,999

Exercise of stock options 12 — 353 — — 353

Issuance of restricted stock, net of cancellations 3 — — — — —

Share-based compensation expense — — 6,455 — — 6,455

Net income — — — 23,232 — 23,232

Other comprehensive income — — — — 187 187

Balance, January 1, 2022 51,111 $ 511 $ 566,963 $ 192,650 $ ( 29,349 ) $ 730,775

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(Unaudited in thousands)

Six Months Ended

2022 October 2,

Nine Months Ended

2022 January 1,

Cash Flows from Operating Activities:

5 unchanged sentences

Share-based compensation expense 18,525 19,262

Amortization of deferred finance costs 313 1,813

(Benefit) provision for losses on inventory ( 1,529 ) 114

Amortization of deferred financing costs 1,098 2,608

Provision (benefit ) for losses on inventory 483 ( 280 )

Gains on divestiture ( 382 ) ( 9,603 )

Contingent consideration expense ( 504 ) 9,345

Contingent consideration ( 504 ) 10,272

Other non-cash operating activities 1,046 8,397

17 unchanged sentences

Proceeds from revolving facility 50,000 —

Payments on revolving facility ( 50,000 ) —

Repayment of term loan borrowings ( 7,875 ) ( 13,125 )

24 unchanged sentences

All intercompany transactions have been eliminated.

Operating results for the six months ended October 1, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 1, 2023 or any other interim period.

Operating results for the nine months ended December 31, 2022 are not necessarily indicative of the results that may be expected for the full fiscal year ending April 1, 2023 or any other interim period.

These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the Annual Report on Form 10-K for the fiscal year ended April 2, 2022.

1 unchanged sentence

Subsequent events have been evaluated as required.

There were no material recognized or unrecognized subsequent events as of or for the six months ended October 1, 2022, except those listed below.

In November 2022, the Company made a € 20 million investment in Vivasure Medical LTD, bringing the Company's total investment to € 30 million.

The investment will also be classified as other long-term assets on the Company’s Condensed Consolidated Balance Sheets.

There were no material recognized or unrecognized subsequent events as of or for the nine months ended December 31, 2022.

RECENT ACCOUNTING PRONOUNCEMENTS

28 unchanged sentences

The majority of charges will result in cash outlays, including severance and other employee costs, and will be incurred as the specific actions required to execute these initiatives are identified and approved.

During the three and six months ended October 1, 2022, the Company incurred $ 3.1 million and $ 6.6 million, respectively, of restructuring and restructuring related costs under this program.

During the three and six months ended October 2, 2021, the Company incurred $ 4.6 million and $ 14.5 million, respectively, of restructuring and restructuring related costs under this program.

During the three and nine months ended December 31, 2022, the Company incurred $ 4.1 million and $ 10.7 million, respectively, of restructuring and restructuring related costs under this program.

During the three and nine months ended January 1, 2022, the Company incurred $ 5.7 million and $ 20.2 million, respectively, of restructuring and restructuring related costs under this program.

Total cumulative charges under this program are $ 66.4 million .

The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the six months ended October 1, 2022, substantially all of which relates to employee severance and other employee costs:

The following table summarizes the activity for restructuring reserves related to the 2020 Program and prior programs for the nine months ended December 31, 2022, substantially all of which relates to employee severance and other employee costs:

(In thousands) 2020 Program Prior Programs Total

2 unchanged sentences

Payments ( 1,082 ) ( 73 ) ( 1,155 )

Balance at October 1, 2022 $ 1,481 $ 306 $ 1,787

Balance at December 31, 2022 $ 1,481 $ 334 $ 1,815

The following presents the restructuring costs by line item within our accompanying unaudited Condensed Consolidated Statements of Income and Comprehensive Income:

Three Months Ended Six Months Ended

(In thousands) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

Cost of goods sold $ ( 49 ) $ ( 187 ) $ ( 226 ) $ 2,276

2 unchanged sentences

$ 44 $ ( 79 ) $ 165 $ 4,036

As of October 1, 2022, the Company had a restr ucturing liability of $ 1.8 million , of which $ 1.5 million is paya ble within the next twelve months.

As of December 31, 2022, the Company had a restr ucturing liability of $ 1.8 million , of which $ 1.5 million is paya ble within the next twelve months.

In addition to the restructuring costs included in the table above, the Company also incurred costs that do not constitute restructuring under ASC 420, Exit and Disposal Cost Obligations, and which the Company instead refers to as restructuring related costs.

1 unchanged sentence

The tables below present restructuring and restructuring related costs by reportable segment:

Restructuring costs Three Months Ended Six Months Ended

(In thousands) October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021

Restructuring costs Three Months Ended Nine Months Ended

(In thousands) December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

Plasma $ ( 50 ) $ ( 192 ) $ ( 261 ) $ 2,507

3 unchanged sentences

Total $ 44 $ ( 79 ) $ 165 $ 4,036

Restructuring related costs Three Months Ended Six Months Ended

(In thousands) October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021

Restructuring related costs Three Months Ended Nine Months Ended

(In thousands) December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

Plasma $ 241 $ 1,400 $ 989 $ 4,541

7 unchanged sentences

statutory tax rate.

For the three and six months ended October 1, 2022, the Company reported income tax expense of $ 7.9 million and $ 13.5 million, respectively, representing effective tax rates of 19.1 % and 20.3 %, respectively.

The effective tax rate for the six months ended October 1, 2022 includes a discrete tax benefit of $ 0.5 million related to tax rate changes enacted in the quarter and $ 0.3 million of discrete tax expense relating to stock compensation shortfalls.

The effective tax rate for the three months ended October 1, 2022, the effective tax rate includes a discrete tax benefit of $ 0.5 million related to tax rate changes enacted in the quarter and $ 0.3 million of discrete tax benefit relating to stock compensation windfalls.

For the three and six months ended October 2, 2021, the Company reported income tax expense of $ 5.1 million and $ 6.5 million, respectively, representing effective tax rates of 25.4 % and 38.5 %, respectively.

The effective tax rates for the three and six months ended October 2, 2021 include discrete tax expense relating to stock compensation shortfalls of $ 0.1 million and $ 0.9 million, respectively.

For the three and nine months ended December 31, 2022, the Company reported income tax expense of $ 9.3 million and $ 22.8 million, respectively, representing effective tax rates of 22.0 % and 20.9 %, respectively.

The effective tax rate for the three months ended December 31, 2022 includes $ 0.1 million of discrete tax expense relating to stock compensation shortfalls.

The effective tax rate for the nine months ended December 31, 2022 includes a discrete tax benefit of $ 0.5 million related to tax rate changes enacted in the period and $ 0.4 million of discrete tax expense relating to stock compensation shortfalls.

For the three and nine months ended January 1, 2022, the Company reported income tax expense of $ 8.2 million and $ 14.7 million, respectively, representing effective tax rates of 26.0 % and 30.4 %, respectively.

The effective tax rate for the nine months ended January 1, 2022 includes discrete tax expense relating to stock compensation shortfalls of $ 0.9 million, with no discrete tax expense relating to stock compensation shortfalls recorded in the three months ended January 1, 2022.

EARNINGS PER SHARE

The following table provides a reconciliation of the numerators and denominators of the basic and diluted earnings per share computations.

Three Months Ended Six Months Ended

(In thousands, except per share amounts) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands, except per share amounts) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

Net income $ 32,944 $ 23,232 $ 86,018 $ 33,634

9 unchanged sentences

From the time of the issuance of the convertible senior notes, the average market price of the Company's common shares has been less than the initial conversion price, and consequently no shares have been included in diluted earnings per share for the co nversion value of the convertible senior notes.

For the three and six months ended October 1, 2022, weighted average shares outstanding, assuming dilution, excludes the impact of 0.7 million and 0.8 million anti-dilutive shares, respectively.

For the three and six months ended October 2, 2021, weighted average shares outstanding, assuming dilution, excludes the impact of 0.9 million anti-dilutive shares.

For the three and nine months ended December 31, 2022, weighted average shares outstanding, assuming dilution, excludes the impact of 0.4 million and 0.7 million anti-dilutive shares, respectively.

For the three and nine months ended January 1, 2022, weighted average shares outstanding, assuming dilution, excludes the impact of 0.9 million anti-dilutive shares.

Share Repurchase Program

3 unchanged sentences

The share repurchase program may be suspended, modified or discontinued at any time, and the Company has no obligation to repurchase any amount of its common stock under the program.

Subsequent to the Company’s announcement of the share repurchase program, in August 2022, the Company entered into an accelerated share repurchase agreement (“ASR”) with Citibank N.A.

(“Citibank”) to repurchase $ 75.0 million of the Company's common stock.

Pursuant to the terms of the ASR, in August 2022, the Company paid Citibank $ 75.0 million in cash and received an initial delivery of 0.8 million shares of the Company's common stock based on a closing market price on the New York Stock Exchange on August 16, 2022 of $ 76.32 .

This initial delivery of shares represented approximately 80 % of the notional amount of the ASR.

The ASR was completed in November 2022 and approximately 0.2 million additional shares were delivered upon settlement.

As of October 1, 2022, the total remaining authorization for repurchases of the Company's common stock under the share repurchase program was $ 225 million.

In November 2022, the Company completed a $ 75.0 million repurchase of its common stock pursuant to an accelerated share repurchase agreement (“ASR”) entered into with Citibank N.A.

(“Citibank”) in August 2022.

The total number of shares repurchased under the ASR was 1.0 million at an average price per share upon final settlement of $ 75.20 .

As of December 31, 2022, the total remaining authorization for repurchases of the Company's common stock under the share repurchase program was $ 225 million.

The Company’s revenue recognition policy is to recognize revenues from product sales, software and services in accordance with ASC Topic 606, Revenue from Contracts with Customers .

10 unchanged sentences

For goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin approach to estimate the standalone selling price of each performance obligation.

As of October 1, 2022, the Company had $ 23.0 million of its transaction price allocated to remaining performance obligations related to executed contracts with an original duration of one year or more.

As of December 31, 2022, the Company had $ 23.3 million of its transaction price allocated to remaining performance obligations related to executed contracts with an original duration of one year or more.

The Company expects to recognize approximately 77 % of this amount as revenue within the next twelve months and the remaining balance thereafter.

1 unchanged sentence

The difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets and contract liabilities.

As of October 1, 2022 and April 2, 2022, the Company had contract assets of $ 7.6 million and $ 5.5 million, respectively.

As of December 31, 2022 and April 2, 2022, the Company had contract assets of $ 6.6 million and $ 5.5 million, respectively.

Contract assets are classified as other current assets and other long-term assets on the Condensed Consolidated Balance Sheets.

As of October 1, 2022 and April 2, 2022, the Company had contract liabilities of $ 24.4 million and $ 26.8 million, respectively.

During the three and six months ended October 1, 2022, the Company recognized $ 6.8 million and $18.5 million of revenue, respectively, that was included in the above April 2, 2022 contract liability balance.

As of December 31, 2022 and April 2, 2022, the Company had contract liabilities of $ 26.6 million and $ 26.8 million, respectively.

During the three and nine months ended December 31, 2022, the Company recognized $ 3.9 million and $22.4 million of revenue, respectively, that was included in the above April 2, 2022 contract liability balance.

Inventories are stated at the lower of cost or net realizable value and include the cost of material, labor and manufacturing overhead.

Cost is determined with the first-in, first-out method.

(In thousands) October 1,

(In thousands) December 31,

2022 April 2,

3 unchanged sentences

Total inventories $ 255,756 $ 293,027

STRATEGIC INVESTMENTS

During fiscal year 2023, the Company made investments in Vivasure Medical LTD (“Vivasure”), totaling € 30 million.

The investments include both preferred stock and a special share that allows the Company to acquire Vivasure in accordance with an agreement between the parties.

The investments are classified as other long-term assets on the Company’s Condensed Consolidated Balance Sheets.

Lessor Activity

13 unchanged sentences

The 2026 Notes will mature on March 1, 2026, unless earlier converted, redeemed or repurchased.

During the second quarter of fiscal 2023, the conditions allowing holders of the 2026 Notes to convert have not been met.

The 2026 Notes were therefore not convertible as of October 1, 2022 and were classified as long-term debt on the Company’s Condensed Consolidated Balance Sheets.

During the third quarter of fiscal 2023, the conditions allowing holders of the 2026 Notes to convert have not been met.

The 2026 Notes were therefore not convertible as of December 31, 2022 and were classified as long-term debt on the Company’s Condensed Consolidated Balance Sheets.

On April 4, 2021, the Company adopted ASC Update No.

2 unchanged sentences

The impact to retained earnings on the Condensed Consolidated Balance Sheets as of April 4, 2021 is an increase of $ 1.0 million.

As of October 1, 2022, the $ 500.0 million principal balance was netted down by $ 9.2 million of remaining debt issuance costs, resulting in a net convertible note payable of $ 490.8 million.

Interest expense related to the 2026 Notes was $ 0.7 million and $ 1.3 million, for the three and six months ended October 1, 2022, respectively, which is entirely attributable to the amortization of the debt issuance costs.

As of December 31, 2022, the $ 500.0 million principal balance was netted down by $ 8.5 million of remaining debt issuance costs, resulting in a net convertible note payable of $ 491.5 million.

Interest expense related to the 2026 Notes was $ 0.7 million and $ 2.0 million, for the three and nine months ended December 31, 2022, respectively, which is entirely attributable to the amortization of the debt issuance costs.

The debt issuance costs are amortized at an effective interest rate of 0.5 %.

10 unchanged sentences

The Company applied modification accounting for the credit facility refinancing.

For the term loan under the Revised Credit facilities, for the three and six months ended October 1, 2022, the Company recognized interest expense of $ 0.5 million for third party fees incurred and capitalized $ 0.2 million of lender fees related to the term loan.

For the three and six months ended October 1, 2022, the Company capitalized $ 1.1 million of lender fees and third-party costs incurred in the refinancing related to the revolving credit facility under the Revised Credit Facilities.

At October 1, 2022, $ 278.3 million was outstanding under the term loan with an effective int erest rate of 4.2 %.

The Company has scheduled principal payments of $ 8.8 million required during the 12 months following October 1, 2022.

There was $ 50.0 million outstanding under the revolving credit facility at October 1, 2022.

The Company also has $ 19.6 million of uncommitted operating lines of credit to fund its global operations under which there were no outstanding borrowings as of October 1, 2022.

The Company was in compliance with the leverage and interest coverage ratios specified in the Revised Credit Facilities as well as all other bank covenants as of October 1, 2022.

For the term loan under the Revised Credit facilities, for the nine months ended December 31, 2022, the Company recognized interest expense of $ 0.5 million for third party fees incurred and capitalized $ 0.2 million of lender fees related to the term loan.

For the nine months ended December 31, 2022, the Company capitalized $ 1.1 million of lender fees and third-party costs incurred in the refinancing related to the revolving credit facility under the Revised Credit Facilities.

At December 31, 2022, $ 276.5 million was outstanding under the term loan with an effective int erest rate of 6.0 %.

The Company has scheduled principal payments of $ 10.5 million required during the 12 months following December 31, 2022.

There were no borrowings outstanding under the revolving credit facility at December 31, 2022.

The Company also has $ 21.4 million of uncommitted operating lines of credit to fund its global operations under which there were no outstanding borrowings as of December 31, 2022.

The Company was in compliance with the leverage and interest coverage ratios specified in the Revised Credit Facilities as well as all other bank covenants as of December 31, 2022.

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

The Company manufactures, markets and sells its products globally.

During the three and six months ended October 1, 2022, 28.8 % and 29.6 %, respectively, of the Company’s sales were generated outside the U.S.

During the three and nine months ended December 31, 2022, 26.6 % and 28.5 %, respectively, of the Company’s sales were generated outside the U.S.

in local currencies.

8 unchanged sentences

Designated Foreign Currency Hedge Contracts

All of the Company’s designated foreign currency hedge contracts as of October 1, 2022 and April 2, 2022 were cash flow hedges under ASC 815, Derivatives and Hedging (“ASC 815”).

All of the Company’s designated foreign currency hedge contracts as of December 31, 2022 and April 2, 2022 were cash flow hedges under ASC 815, Derivatives and Hedging (“ASC 815”).

The Company records the effective portion of any change in the fair value of designated foreign currency hedge contracts in other comprehensive income until the related third-party transaction occurs.

1 unchanged sentence

In the event the hedged forecasted transaction does not occur, or it becomes probable that it will not occur, the Company will reclassify the amount of any gain or loss on the related cash flow hedge to earnings at that time.

The Company had designated foreign currency hedge contracts outstanding in the contract amount of $ 30.9 million as of October 1, 2022 and $ 67.3 million as of April 2, 2022.

At October 1, 2022, a gain of $ 2.4 million, net of tax, will be reclassified to earnings within the next twelve months.

Substantially all currency cash flow hedges outstanding as of October 1, 2022 mature within twelve months.

The Company had designated foreign currency hedge contracts outstanding in the contract amount of $ 12.5 million as of December 31, 2022 and $ 67.3 million as of April 2, 2022.

At December 31, 2022, a gain of $ 1.6 million, net of tax, will be reclassified to earnings within the next twelve months.

Substantially all currency cash flow hedges outstanding as of December 31, 2022 mature within twelve months.

Non-Designated Foreign Currency Contracts

4 unchanged sentences

These forward contracts are marked-to-market with changes in fair value recorded to earnings.

The Company had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $ 45.2 million as of October 1, 2022 and $ 39.5 million as of April 2, 2022.

The Company had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $ 44.6 million as of December 31, 2022 and $ 39.5 million as of April 2, 2022.

Interest Rate Swaps

12 unchanged sentences

The Company has concluded that each of these four additional interest rate swaps are effective and qualify for hedge accounting treatment.

The Company held the following interest rate swaps as of October 1, 2022:

Hedged Item Original Notional Amount Notional Amount as of October 1, 2022 Designation Date Effective Date Termination Date Fixed Interest Rate Estimated Fair Value Assets (Liabilities)

The Company held the following interest rate swaps as of December 31, 2022:

Hedged Item Original Notional Amount Notional Amount as of December 31, 2022 Designation Date Effective Date Termination Date Fixed Interest Rate Estimated Fair Value Assets (Liabilities)

(In thousands)

6 unchanged sentences

Total $ 509,514 $ 413,350 $ 579

For the six months ended October 1, 2022, a gain of $ 3.2 million, net of tax, was recorded in accumulated other comprehensive loss to recognize the effective portion of the fair value of the Swaps that qualify as cash flow hedges.

For the nine months ended December 31, 2022, a gain of $ 3.6 million, net of tax, was recorded in accumulated other comprehensive loss to recognize the effective portion of the fair value of the Swaps that qualify as cash flow hedges.

Trade Receivables

4 unchanged sentences

The following is a roll forward of the allowance for credit losses:

Three Months Ended Six Months Ended

(In thousands) October 1, 2022 October 2, 2021 October 1, 2022 October 2, 2021

Three Months Ended Nine Months Ended

(In thousands) December 31, 2022 January 1, 2022 December 31, 2022 January 1, 2022

Beginning balance $ 2,495 $ 2,701 $ 2,475 $ 2,226

Credit loss 224 ( 305 ) 429 226

Write-offs ( 59 ) ( 39 ) ( 184 ) ( 57 )

Recoveries (Write-offs) 19 ( 14 ) ( 166 ) ( 70 )

Ending balance $ 2,738 $ 2,382 $ 2,738 $ 2,382

Fair Value of Derivative Instruments

The following table presents the effect of the Company’s derivative instruments designated as cash flow hedges and those not designated as hedging instruments under ASC 815 in its unaudited Condensed Consolidated Statements of Income and Comprehensive Income for the six months ended October 1, 2022:

(In thousands) Amount of Gain Recognized

9 unchanged sentences

Designated interest rate swaps, net of tax $ 2,458 $ ( 1,110 ) Interest and other expense, net $ —

The Company did not have fair value hedges or net investment hedges outstanding as of October 1, 2022 or April 2, 2022.

As of October 1, 2022, no material deferred taxes were recognized for designated foreign currency hedges.

The Company did not have fair value hedges or net investment hedges outstanding as of December 31, 2022 or April 2, 2022.

As of December 31, 2022, no material deferred taxes were recognized for designated foreign currency hedges.

ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance sheet.

5 unchanged sentences

and inputs derived principally from, or corroborated by, observable market data by correlation or other means.

As of October 1, 2022, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of October 1, 2022 and April 2, 2022:

As of December 31, 2022, the Company has classified its derivative assets and liabilities within Level 2 of the fair value hierarchy prescribed by ASC 815, as discussed below, because these observable inputs are available for substantially the full term of its derivative instruments.

The following tables present the fair value of the Company’s derivative instruments as they appear in its Condensed Consolidated Balance Sheets as of December 31, 2022 and April 2, 2022:

(In thousands) Location in Condensed Consolidated

Balance Sheets As of As of

October 1, 2022 April 2, 2022

December 31, 2022 April 2, 2022

Derivative Assets:

17 unchanged sentences

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 October 1, 2022 and April 2, 2022.

As of October 1, 2022

Financial assets and financial liabilities measured at fair value on a recurring basis consist of the following as of December 31, 2022 and April 2, 2022.

As of December 31, 2022

(In thousands) Level 1 Level 2 Level 3 Total

28 unchanged sentences

Fair Value at Valuation Unobservable

(In thousands) October 1, 2022 Technique Input Range

(In thousands) December 31, 2022 Technique Input Range

Revenue-based payments $ 848 Discounted cash flow Discount rate 8.5 %

Projected year of payment 2023

The fair value of contingent consideration associated with acquisitions was $ 0.8 million at October 1, 2022 and was included in other liabilities.

The fair value of contingent consideration associated with acquisitions was $ 0.8 million at December 31, 2022 and was included in other liabilities.

A reconciliation of the change in the fair value of contingent consideration is included in the following table:

4 unchanged sentences

Currency translation ( 30 )

Balance at October 1, 2022 $ 779

Balance at December 31, 2022 $ 848

Other Fair Value Disclosures

The Term Loan, which is carried at amortized cost, accounts receivable and accounts payable approximate fa ir value.

The fair value of the 2026 Notes as of October 1, 2022 was $ 399.2 million, which was determined by using the market price on the last trading day of the reporting period.

The fair value of the 2026 Notes as of December 31, 2022 was $ 416.5 million, which was determined by using the market price on the last trading day of the reporting period.

COMMITMENTS AND CONTINGENCIES

6 unchanged sentences

The subpoena requested certain documents regarding the Company’s apheresis and autotransfusion devices and disposables, including documents relating to product complaints and adverse event reporting, regulatory clearances and product design changes, among other matters.

The Company has fully cooperated with this inqui ry.

The Company has fully cooperated with this inquiry.

On August 16, 2022, the U.S.

15 unchanged sentences

SEGMENT AND ENTERPRISE-WIDE INFORMATION

The Company determines its reportable segments by first identifying its operating segments, and then by assessing whether any components of these segments constitute a business for which discrete financial information is available and where segment

management regularly reviews the operating results of that component.

The Company’s reporting structure aligns with its operating structure of three global business units and the information that is regularly reviewed by the Company’s chief operating decision maker.

9 unchanged sentences

Selected information by reportable segment is presented below:

Three Months Ended Six Months Ended

(In thousands) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

Plasma $ 136,574 $ 96,692 $ 368,504 $ 250,499

6 unchanged sentences

(1) Reflects revenue for service, maintenance and parts

Three Months Ended Six Months Ended

(In thousands) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

Segment operating income

21 unchanged sentences

Net revenues by product line are as follows:

Three Months Ended Six Months Ended

(In thousands) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

Plasma products and services $ 153,899 $ 116,347 $ 415,412 $ 308,931

3 unchanged sentences

Net revenues generated in the Company’s principle operating regions on a reported basis are as follows:

Three Months Ended Six Months Ended

(In thousands) October 1,

2022 October 2,

2021 October 1,

2022 October 2,

Three Months Ended Nine Months Ended

(In thousands) December 31,

2022 January 1,

2022 December 31,

2022 January 1,

United States $ 224,104 $ 167,270 $ 617,824 $ 460,404

13 unchanged sentences

Net current period other comprehensive income (loss) ( 10,039 ) — 194 ( 9,845 )

Balance as of October 1, 2022 $ ( 44,905 ) $ 1,619 $ 3,031 $ ( 40,255 )

Balance as of December 31, 2022 $ ( 37,958 ) $ 1,619 $ 540 $ ( 35,799 )

(1) Presented net of income taxes, the amounts of which are insignificant.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements