Haemonetics Annual Report 2020

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FY2020 Annual Report · Haemonetics

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Haemonetics Corporation

2020 Annual Report to Shareholders

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended March 28, 2020

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 001-14041

HAEMONETICS CORPORATION

(Exact name of registrant as specified in its charter)

Massachusetts
(State or other jurisdiction of incorporation or organization)
125 Summer Street,
Boston, Massachusetts

(Address of principal executive offices)
(781) 848-7100
(Registrant's telephone number, including area code)

04-2882273
(I.R.S. Employer Identification No.)
02110
(Zip Code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class
Common stock, $.01 par value per share

Trading Symbol
HAE

Name of Exchange on Which Registered
New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act:
None

Indicate by check mark whether the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities
Act. Yes
Indicate by check mark whether the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Act. Yes
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities

No
No

Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2)
has been subject to such filing requirements for at least the past 90 days. Yes

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant

to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was
required to submit such files). Yes

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting
company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,”
and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

Non-accelerated filer

Accelerated filer

Smaller reporting company

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for
complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of
its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public
accounting firm that prepared or issued its audit report.
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes
No
The aggregate market value of the voting and non-voting common equity held by non-affiliates of the registrant (assuming for these

purposes that all executive officers and directors are “affiliates” of the registrant) as of September 28, 2019, the last business day of the
registrant’s most recently completed second fiscal quarter was $6,235,150,197 (based on the closing sale price of the registrant’s common
stock on that date as reported on the New York Stock Exchange).

The number of shares of $0.01 par value common stock outstanding as of May 18, 2020 was 50,386,681.

Documents Incorporated By Reference
Portions of the definitive proxy statement for our Annual Meeting of Shareholders to be held on July 21, 2020 are incorporated by reference
in Part III of this report.

TABLE OF CONTENTS

Business

Item 1.
Item 1A. Risk Factors
Item 1B. Unresolved Staff Comments
Item 2.

Properties

Item 3.

Item 4.

Item 5.

Legal Proceedings

Mine Safety Disclosures

Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity Securities

Item 6.

Selected Financial Data

Management’s Discussion and Analysis of Financial Condition and Results of Operations

Item 7.
Item 7A. Quantitative and Qualitative Disclosures about Market Risk
Item 8.
Financial Statements and Supplementary Data

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9.
Item 9A. Control and Procedures
Item 9B. Other Information
Item 10.

Directors and Executive Officers of the Registrant and Corporate Governance

Item 11.

Item 12.

Item 13.

Item 14.

Item 15.

Executive Compensation

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Certain Relationships and Related Transactions and Director Independence

Principal Accounting Fees and Services

Exhibits, Financial Statement Schedules

Page
Number

ITEM 1. BUSINESS

Company Overview

Haemonetics is a global healthcare company dedicated to providing a suite of innovative hematology products and solutions to
customers to help improve patient care and reduce the cost of healthcare. Our technology addresses important medical markets
including blood and plasma component collection, the surgical suite, and hospital transfusion services. When used in this
report, the terms “we,” “us,” “our” and “the Company” mean Haemonetics.

Blood is essential to a modern healthcare system. Blood and its components (plasma, platelets and red cells) have many vital
and frequently life-saving clinical applications. Plasma is used for patients with major blood loss and is manufactured into
biopharmaceuticals to treat a variety of illnesses, including immune diseases and coagulation disorders. Red cells treat trauma
patients or patients undergoing surgery with high blood loss, such as open heart surgery or organ transplant. Platelets have
many uses in patient care, including supporting cancer patients undergoing chemotherapy.

Haemonetics develops and markets a wide range of devices and solutions to serve our customers. Our Plasma business unit
provides plasma collection devices and disposables and plasma donor management software that enable the collection of
plasma used by biopharmaceutical companies to make life saving pharmaceuticals. Our Blood Center business unit offers blood
collection and processing devices and disposables for red cells, platelets and whole blood as well as related donor management
software that make blood donation more efficient and track life giving blood components. Our Hospital Business unit, which is
comprised of Hemostasis Management, Cell Salvage and Transfusion Management products, includes devices and
methodologies for measuring the coagulation of blood that enable healthcare providers to better manage their patients’ bleeding
risk, as well as surgical blood salvage systems, specialized blood cell processing systems and disposables and blood transfusion
management software that facilitate blood transfusions and cell processing.

Market and Products

Product Lines

We view our operations and manage our business in three principal reporting segments: Plasma, Blood Center and Hospital. We
believe that Plasma and Hospital have growth potential, while Blood Center competes in challenging markets that require us to
manage the business differently, including by reducing costs, shrinking the scope of the current product line, and evaluating
opportunities to exit unfavorable customer contracts. Financial information concerning these segments is provided in Note 18 to
our audited consolidated financial statements contained in Item 8 of this Annual Report on Form 10-K.

The following describes our principal products in each of our segments.

• Plasma

Our Plasma business offers automated plasma collection and donor management software systems that improve the
plasma centers’ yield, efficiency, quality, safety and overall plasma donor experience. We continue to invest in
technology that lowers the overall cost to collect plasma while maintaining high standards of quality and safety.

Plasma Collection Market for Fractionation — Human plasma is collected for two purposes. First, it is used for
transfusions in patients, such as trauma victims who need to compensate for extreme blood loss, and second, it is
processed into pharmaceuticals that aid in the treatment of immune diseases and coagulation disorders.

Plasma for transfusion is almost exclusively collected by blood centers as part of their broader mission to supply blood
components. Plasma that is fractionated and manufactured into pharmaceuticals - frequently referred to as "source
plasma" - is mainly collected by vertically integrated biopharmaceutical companies who operate their own collection
centers and recruit donors specifically for source plasma donation. The markets for transfusion plasma and source
plasma have different participants, product requirements and growth profiles. We serve the market for transfusion
plasma through our Blood Center products.

One of the distinguishing features of the source plasma market is the method of collection. There are three primary
ways to collect plasma. The first is to collect it from whole blood donations. When whole blood is processed, plasma
can be separated at the same time as red cells and platelets and stored for future use. The second is as part of an
apheresis procedure that also collects another blood component. These two methods are mainly used by blood centers

to collect plasma for transfusions. The third method is a dedicated apheresis procedure that only collects plasma and
returns the other blood components to the donor. This third method is mainly used for source plasma collection.

Our Plasma business unit focuses on the collection of source plasma by pharmaceutical manufacturers using apheresis
devices that collect plasma and software solutions that support the efficient operation of dedicated source plasma
collection centers. Our Blood Center business unit supports the collection of plasma for blood collectors, such as the
American Red Cross, using both whole blood and multi-component apheresis collection devices and software
solutions that support efficient operation of these types of centers.

Over the last 20 years, the collection of source plasma has increasingly been done by vertically integrated
biopharmaceutical companies such as CSL Behring, Grifols S.A. ("Grifols"), Octapharma AG and Takeda's BioLife
business. With their global operations and management expertise, these companies are focused on efficient plasma
supply chain management and leveraging information technology to manage operations from the point of plasma
donation to fractionation to the production of the final product.

Demand for source plasma has continued to grow as an expanding end user market for plasma-derived
biopharmaceuticals. In particular, therapies that require a significant quantity of plasma to create has fueled an increase
in the number of donations and dedicated source plasma collection centers. A significant portion of this growth has
occurred in the United States with U.S. produced plasma now meeting an increasing percentage of plasma volume
demand worldwide. The U.S. has regulations that are significantly more favorable relative to other markets for plasma
collectors. The frequency with which a donor may donate, the volume of plasma that may be donated each time and
the ability to remunerate donors are all optimal in the U.S., leading to approximately 80% of worldwide source plasma
collections occurring in the U.S. Plasma collectors have long sought changes to plasma collection regulations outside
of the U.S. to allow for greater frequency, volume per donation and remuneration but achievements have been limited
and no changes are foreseen in the prevalence of U.S. collections.

Plasma Products — Built around our automated plasma collection devices, related disposables and software, our
portfolio of products and services is designed to support multiple facets of plasma collector operations. We have a
long-standing commitment to understanding our customers' collection and manufacturing processes. As a result, we
aim to design equipment that is durable, dependable and easy to use and to provide comprehensive training and
support to our plasma collection customers.

Today, the vast majority of plasma collections worldwide are performed using automated collection technology at
dedicated facilities. We offer multiple products to support these dedicated source plasma operations, including our
NexSys PCS® and PCS2® plasmapheresis equipment, related disposables and intravenous solutions. We also offer a
portfolio of integrated information technology platforms for plasma customers to manage their donors, operations and
supply chain. Our software products, including our latest NexLynk DMS® donor management system, automate the
donor interview and qualification process, streamline the workflow process in the plasma center, provide the controls
necessary to evaluate donor suitability, determine the ability to release units collected and manage unit distribution.
With our software solutions, plasma collectors can manage processes across the plasma supply chain, ensure quality
and compliance business process support, react quickly to business changes and implement opportunities to reduce
costs.

With our PCS brand, we have provided an automated platform dedicated to the collection of plasma for over 20 years.
In fiscal 2018, we received U.S. Food and Drug Administration ("FDA") 510(k) clearance for our next generation
device, the NexSys PCS and for the enhancement of our NexSys PCS embedded software that activates YESTM
technology, a yield-enhancing solution that enables increases in plasma yield per collection by an additional 18-26 mL
per donation, on average. We also received CE mark clearance of the NexSys PCS device in the European Union and
Australia, subject to additional local requirements, during fiscal 2018. We expect to pursue further regulatory
clearances for additional enhancements to the overall product offering.

NexSys PCS is designed to enable higher plasma yield collections, improve productivity in our customers’ centers,
enhance the overall donor experience and provide safe and reliable collections that will become life-changing
medicines for patients. NexSys PCS includes bi-directional connectivity to the NexLynk DMS donor management
system to improve operational efficiency within plasma centers, through automated programming of donation
procedures and automated data capture of procedure data.

We have entered into long-term commercial contracts and are continuing the rollout and support of NexSys PCS
devices and NexLynk DMS donor management software for these Plasma customers.

Our Plasma business unit represented 46.4%, 44.1% and 40.2% of our total revenue in fiscal 2020, 2019 and 2018,
respectively.

• Blood Center

Our Blood Center business offers a range of solutions that improve donor collection centers' ability to acquire blood,
filter blood and separate blood components. We continue to look for solutions to improve donor safety and control
costs through the existing product portfolio. Our products and technologies help donor collection centers optimize
blood collection capabilities and donor processing management.

Blood Center Market — There are millions of blood donations throughout the world every year that produce blood
products for transfusion to surgical, trauma, or chronically ill patients. Patients typically receive only the blood
components necessary to treat a particular clinical condition. Platelet therapy is frequently used to alleviate the effects
of chemotherapy and to help patients with bleeding disorders. Red cells are often transfused to patients to replace
blood lost during surgery and transfused to patients with blood disorders, such as sickle cell anemia or aplastic anemia.
Plasma, in addition to its role in creating life-saving pharmaceuticals, is frequently transfused to replace blood volume
in trauma victims and surgical patients.

When collecting blood components there are two primary collection methods, manual whole blood donations and
automated component blood collections. While most donations are manual whole blood, the benefit of automated
component blood collections is the ability to collect more than one unit of the targeted blood component. Manual
whole blood donations are collected from the donor and then transported to a laboratory where the blood is separated
into its components. Automated component blood collections separate the blood component real-time while a person is
donating blood. In this method, only the specific target blood component is collected and the remaining components
are returned to the blood donor.

While overall we expect total demand for blood to remain stable to slightly declining, demand in individual markets
can vary greatly. The development in mature markets of more minimally invasive procedures with lower associated
blood loss, as well as hospitals' improved blood management techniques and protocols have more than offset the
increasing demand for blood from aging populations. Emerging markets are seeing demand growth with expanded
healthcare coverage and greater access to more advanced medical treatments.

Blood Center Products — We offer automated blood component and manual whole blood collection systems to blood
collection centers to collect blood products efficiently and cost effectively. In addition, we offer software solutions that
help blood collection centers with blood drive planning, donor recruitment and retention, blood collection, component
manufacturing and distribution.

• We market the MCS® brand apheresis equipment which is designed to collect specific blood components

from the donor. Utilizing the MCS automated platelet collection protocols, blood centers collect one or more
therapeutic “doses” of platelets during a single donation.

• Our portfolio of disposable whole blood collection and component storage sets offer flexibility in collecting a
unit of whole blood and the subsequent production and storage of blood components, including options for in-
line or dockable filters for leukoreduction.

• Our SafeTrace® and El-Dorado Donor® donation and blood unit management systems span blood center

operations and automate and track operations from the recruitment of the blood donor to the disposition of the
blood product.

• Our Hemasphere® software solution provides support for more efficient blood drive planning and Donor

Doc® and e-Donor® software help to improve donor recruitment and retention.

Our Blood Center business unit represented 32.1%, 34.1% and 37.8% of our total revenue in fiscal 2020, 2019 and
2018, respectively.

• Hospital

Hospitals are called upon to provide the highest standard of patient care while at the same time reduce operating
costs. Haemonetics' Hospital business has three product lines - Hemostasis Management, Cell Salvage and Transfusion
Management - that help decision makers in hospitals optimize blood acquisition, storage and usage in critical settings.

Hemostasis Management

Hemostasis Management Market — Hemostasis refers to a patient's ability to form and maintain blood clots. The
clinical management of hemostasis requires that physicians have the most complete information to make decisions on
how to best maintain a patient’s coagulation equilibrium between hemorrhage (bleeding) and thrombosis (clotting).
Hemostasis is a critical challenge in various medical procedures, including cardiovascular surgery, organ
transplantation, trauma, post-partum hemorrhage and percutaneous coronary intervention. By understanding a patient’s
hemostasis status, clinicians can better plan for the patient’s care pathway. For example, they may decide whether to
start or discontinue the use of certain drugs or determine the need for a transfusion and which specific blood
components would be most effective in minimizing blood loss and reducing clotting risk. Such planning supports
better care, which can lead to lower hospital costs through a reduction in unnecessary blood product transfusions,
reduced adverse transfusion reactions and shorter intensive care unit and hospital stays.

Hemostasis Management Products — Our portfolio of hemostasis diagnostic systems enables clinicians to assess
holistically the coagulation status of a patient at the point-of-care or laboratory setting. We have three device platforms
that we market to hospitals and laboratories as an alternative to routine blood tests: the TEG® 5000 hemostasis
analyzer system, the TEG 6s hemostasis analyzer system, and the ClotPro® hemostasis analyzer system (acquired in
April 2020).

Each hemostasis diagnostic system consists of an analyzer that is used with single-use reagents and disposables. In
addition, TEG Manager® software connects multiple TEG 5000 and TEG 6S analyzers throughout the hospital,
providing clinicians remote access to both active and historical test results that inform treatment decisions.

The TEG 5000 system is approved for a broad set of indications in all of our markets. The TEG 6s system is approved
for the same set of indications as the TEG 5000 in Europe, Australia and Japan. We continue to pursue a broader set of
indications for TEG 6s in the U.S. During fiscal 2020, we received FDA clearance for the use of TEG 6s in adult
trauma settings. This clearance builds on the current indication for the TEG 6s system in cardiovascular surgery and
cardiology procedures, making it the first cartridge-based system available in the U.S. to evaluate the hemostasis
condition in adult trauma patients. The ClotPro system received CE mark clearance in March 2019 and is currently
available in select European and Asia Pacific markets.

Cell Salvage

Cell Salvage Market — The Cell Salvage market is mainly comprised of devices designed to transfuse back a
patient’s own blood during or after surgery. Loss of blood is common in many surgical procedures, including open
heart, trauma, transplant, vascular and orthopedic procedures, and the need for transfusion of oxygen-carrying red cells
to make up for lost blood volume is routine. Patients commonly receive donor (or allogeneic) blood which carries
various risks for transfusion reactions including chills, fevers or other side effects that can prolong a patient’s recovery.

An alternative to allogeneic blood is surgical cell salvage, also known as autotransfusion, which reduces or eliminates
a patient’s need for blood donated from others and ensures that the patient receives the freshest and safest blood
possible - his or her own. Surgical cell salvage involves the collection of a patient’s own blood during or after surgery
for reinfusion of red cells to that patient. Blood is suctioned from the surgical site or collected from a wound or chest
drain, processed and washed through a centrifuge-based system that yields concentrated red cells available for
transfusion back to the patient. This process occurs in a sterile, closed-circuit, single-use consumable set that is fitted
into an electromechanical device. We market our surgical blood salvage products to surgical specialists, primarily
cardiovascular, orthopedic and trauma surgeons, and to anesthesiologists and surgical suite service providers.

Cell Salvage Products — Our Cell Saver® Elite®+ autologous blood recovery system is a surgical blood salvage
system targeted to medium to high blood loss procedures, such as cardiovascular, orthopedic, trauma, transplant,
vascular, obstetrical and gynecological surgeries. The Cell Saver Elite + is designed to minimize allogeneic blood use
and reliably recover and transfuse a patient’s own high-quality blood.

Transfusion Management

Transfusion Management Market — Hospital transfusion services professionals and clinicians are facing cost
restraints in addition to the pressure to enhance patient safety, compliance and operational efficiency. Managing the
safety and traceability of the blood supply chain and comprehensive management of patients, orders, specimens, blood
products, derivatives and accessories across the hospital network is challenging. In addition, providing clinicians with
the vital access to blood when needed most while maintaining traceability is a key priority. Frequently when blood
products leave the blood bank, the transfusion management staff loses control and visibility of the blood components.
They often do not know if the blood was handled, stored or transfused properly, which may lead to negative effects on
patient safety, product quality, inventory availability and staff efficiency as well as increased waste.

Transfusion Management Products — Our Transfusion Management solutions are designed to help provide safety,
traceability and compliance from the hospital blood bank to the patient bedside and enable consistent care across the
hospital network. Our SafeTrace Tx® transfusion management software is considered the system of record for all
hospital blood bank and transfusion service information. BloodTrack® blood management software is a modular suite
of blood management and bedside transfusion solutions that combines software with hardware components and acts as
an extension of the hospital’s blood bank information system. The software is designed to work with blood storage
devices, including the BloodTrack HaemoBank®.

Our Hospital business unit represented 19.6%, 19.9% and 19.8% of our total revenue in fiscal 2020, 2019 and 2018,
respectively.

Marketing/Sales/Distribution

We market and sell our products to biopharmaceutical companies, blood collection groups and independent blood centers,
hospitals and hospital service providers, group purchasing organizations and national health organizations through our own
direct sales force (including full-time sales representatives and clinical specialists) as well as independent distributors. Sales
representatives target the primary decision-makers within each of those organizations.

Research and Development

Our research and development centers in the U.S. ensure that protocol variations are incorporated to closely match local
customer requirements. In addition, Haemonetics maintains software development operations in Canada and France.

Customer collaborations are also an important part of our technical strength and competitive advantage. These collaborations
with customers and transfusion experts provide us with ideas for new products and applications, enhanced protocols and
potential test sites as well as objective evaluations and expert opinions regarding technical and performance issues.

The development of blood component separation products, hemostasis analyzers and software has required us to maintain
technical expertise in various engineering disciplines, including mechanical, electrical, software, biomedical engineering and
chemistry. Innovations resulting from these various engineering efforts enable us to develop systems that are faster, smaller and
more user-friendly, or that incorporate additional features important to our customer base.

In fiscal 2020, research and development resources were allocated to support innovation across our portfolio, including
investments in clinical programs for our Hemostasis Management product line. A key element of our strategy in the U.S. for our
Hemostasis Management product line has been to invest in clinical trials to support expanded FDA labeling including a trauma
indication for our TEG 6s. In May 2019, we received FDA clearance for the use of TEG 6s in adult trauma settings. This
clearance builds on the current indication for the TEG 6s system in cardiovascular surgery and cardiology procedures, making it
the first cartridge-based system available in the U.S. to evaluate the hemostasis condition in adult trauma patients. In November
2019, we announced global commercial availability for the four-channel TEG 6s PlateletMapping® ADP & AA assay cartridge,
which is used by clinicians to assess a patient’s bleeding and thrombotic risk due to inhibition of platelet function caused by
anticoagulants such as aspirin.

In December 2019, we also announced the North America commercial availability for the next generation of SafeTrace Tx
Transfusion Management Software. This software version features significant improvements to the user experience and
workflow efficiency.

Additionally, we continue to invest resources in next generation plasma collection and software systems.

Manufacturing

We endeavor to supply products that are both high quality and cost competitive for our customers by leveraging continuous
improvement methodologies, focusing on our core competencies and partnering with strategic suppliers that complement our

capabilities. In general, we design our equipment and consumables and use contract manufacturers to build the devices, while
the majority of consumables are manufactured by us.

Our production activities occur in controlled settings or “clean room” environments and have built-in quality checks throughout
the manufacturing processes. Our manufacturing teams are focused on continuously improving our productivity, product cost
and product quality through change control procedures, validations and strong supplier management programs. We regularly
review our logistics capabilities, inventory and safety stock levels and maintain business continuity plans to address supply
disruptions that may occur.

Our primary consumable manufacturing operations are located in North America and Malaysia. Contract manufacturers also
supply component sets and liquid solutions according to our specifications and manufacture in Mexico, Japan, Singapore,
Thailand and the Philippines. Our devices are principally manufactured in Malaysia, Australia and the U.S.

Plastics and other petroleum-based products are the principal component of our disposable products and can be affected by oil
and gas prices. Contracts with our suppliers help to mitigate some of the short term effects of price volatility in this market.
However, increases in the price of petroleum derivatives could result in corresponding increases in our costs to procure plastic
raw materials.

Intellectual Property

We consider our intellectual property rights to be important to our business. We rely on a combination of patent, trademark,
copyright and trade secret laws, as well as provisions in our agreements with third parties, to protect our intellectual property
rights.

We hold numerous patents in the United States and have applied for numerous additional U.S. patents relating to our products
and related technologies. We also own or have applied for corresponding patents in selected foreign countries. These patents
cover certain elements of our products and processes, including protocols employed in our equipment and aspects of certain of
our disposables. Our patents may cover current products, products in markets we plan to enter, or products in markets we plan
to license to others. Certain patents may also be defensive in that they are directed to technologies not currently embodied in
our current products. We also license patent rights from third parties that cover technologies that we use or plan to use in our
business.

We own various trademarks that have been registered in the United States and certain other countries.

Our policy is to obtain patent and trademark rights in the U.S. and foreign countries where such rights are available and we
believe it is commercially advantageous to do so. However, the standards for international protection of intellectual property
vary widely. We cannot assure that pending patent and trademark applications will result in issued patents and registered
trademarks, that patents issued to or licensed by us will not be challenged or circumvented by competitors, or that our patents
will not be determined invalid.

To maintain our competitive position, we also rely on the technical expertise and know-how of our personnel. We believe that
unpatented know-how and trade secrets relied upon in connection with our business and products are generally as important as
patent protection in establishing and maintaining a competitive advantage.

Competition

To remain competitive, we must continue to develop and acquire new cost-effective products, information technology platforms
and business services. We believe that our ability to maintain a competitive advantage will continue to depend on a combination
of factors. Some factors are largely within our control such as: (i) maintenance of a positive reputation among our customers,
(ii) development of new products that meet our customer's needs, (iii) obtaining regulatory approvals for our products in key
markets, (iv) obtaining patents that protect our innovations, (v) development and protection of proprietary know-how in
important technological areas, (vi) product quality, safety and cost effectiveness and (vii) continual and rigorous documentation
of clinical performance. Other factors are outside of our control. We could see changes in regulatory standards or clinical
practice that favor a competitor's technology or reduce revenues in key areas of our business.

Our technical staff is highly skilled, but certain competitors have substantially greater financial resources and larger technical
staff at their disposal. There can be no assurance that competitors will not direct substantial efforts and resources toward the
development and marketing of products competitive with those of Haemonetics.

In addition, we face competition from several large, global companies with product offerings similar to ours. Terumo BCT and
Fresenius SE & Co. KGaA, in particular, have significantly greater financial and other resources than we do and are strong
competitors in a number of our businesses. The following provides an overview of the key competitors in each of our three
global product enterprises.

• Plasma

In the automated plasma collection market, we principally compete with Fresenius' Fenwal Aurora and Aurora Xi
product lines on the basis of speed, plasma yield per donation, quality, reliability, ease of use, services and technical
features of the collection systems and on the long-term cost-effectiveness of equipment and disposables. In China, the
market is populated by local producers of a product that is intended to be similar to ours. Recently, those competitors
have expanded to markets beyond China, including European and South American countries. In the field of plasma
related software, MAK Systems is the primary competitor along with applications developed internally by our
customers.

• Blood Center

Most donations worldwide are traditional manual whole blood collections and approximately 30% of the Blood Center
portfolio competes in this space. We face intense competition in our whole blood business on the basis of quality and
price. Our main competitors are Fresenius, MacoPharma and Terumo.

Our MCS automated component blood collections, which represents approximately 65% of the Blood Center portfolio,
not only compete against the traditional manual whole blood collection market (particularly in red cells) but also
compete with products from Terumo and Fresenius. Technology is the key differentiator in automated component
blood collections, as measured by the time to collect more than one unit of a specific targeted blood component. While
not all donors are eligible to donate more than one unit, it continues to become more prevalent in markets with a
significant number of eligible donors. Therefore, both Haemonetics and our competitors continue to experience
downward pressure on collection through single platelet collection procedures.

In Blood Center software, MAK Technologies is a competitor along with systems developed internally by our
customers. Our software portfolio is predominately a U.S. based business.

• Hospital

Hemostasis Management

Our hemostasis analyzer systems are used primarily in surgical applications. Competition includes routine coagulation
tests, such as prothrombin time, partial thromboplastin time and platelet count marketed by various manufacturers,
such as Instrumentation Laboratory, Diagnostica Stago SAS and Sysmex. The TEG analyzer competes with these
routine laboratory tests based on its ability to provide a more complete picture of a patient's hemostasis at a single
point in time and to measure the clinically relevant platelet function for an individual patient.

In addition, TEG and ClotPro systems compete more directly with other advanced blood test systems, including
ROTEM® analyzers, the VerifyNow® System and HemoSonics Quantra™. ROTEM and VerifyNow instruments are
marketed by Instrumentation Laboratory, a subsidiary of Werfen. HemoSonics is owned and offered by Diagnostica
Stago. There are also additional technologies being explored to assess viscoelasticity and other characteristics that can
provide insights into the coagulation status of a patient.

Cell Salvage

In the intraoperative autotransfusion market, competition is based on reliability, ease of use, service, support and price.
For high-volume platforms, each manufacturer's technology is similar and our Cell Saver technology competes
principally with products offered by LivaNova PLC, Medtronic and Fresenius.

Transfusion Management

SafeTrace Tx and BloodTrack compete in the transfusion management software market within the broader category of
hospital information systems. SafeTrace Tx is an FDA regulated blood bank information system ("BBIS") that
integrates and communicates with other healthcare information systems such as the electronic health record and
laboratory information system within the hospital. The BloodTrack software, also FDA regulated, is an extension of
the BBIS and provides secure, traceable blood units at the point-of-care, including trauma, surgery, outpatient and
critical care settings. Growth drivers for these markets include patient safety, operational efficiencies and compliance.

SafeTrace Tx competition primarily consists of stand-alone BBIS including WellSky and some Electronic Health
Record software that includes a built-in transfusion management solution including Cerner. Global competition for
BloodTrack varies by country including MSoft in Europe and established blood practices in the U.S. such as using
standard refrigerators and manual movement of blood products. BloodTrack integrates with the hospital’s existing lab
or blood bank system allowing for greater market acceptance.

Significant Customers

In fiscal 2020, 2019 and 2018, our ten largest customers accounted for approximately 54%, 52% and 45% of our net revenues,
respectively. In fiscal 2020, 2019 and 2018, two of our Plasma customers, CSL Plasma Inc. ("CSL") and Grifols, each were
greater than 10% of total net revenues and in total accounted for approximately 27%, 27% and 26% of our net revenues,
respectively. Additionally, one of our customers accounted for greater than 10% of our Blood Center segment’s net revenues in
fiscal 2020, 2019 and 2018.

Government Regulation

Due to the variety of products that we manufacture, we and our products are subject to a wide variety of regulations by
numerous government agencies, including the FDA, and similar agencies outside the U.S. To varying degrees, each of these
agencies requires us to comply with laws and regulations governing the development, testing, manufacturing, labeling,
marketing and distribution of our products.

Medical Device Regulation

Premarket Requirements - U.S.

Unless an exemption applies, all medical devices introduced to the U.S. market are required by the FDA, as a condition of
marketing, to secure either clearance of a 510(k) pre-market notification, de novo authorization, or approval of premarket
approval application, or PMA. The FDA classifies medical devices into one of three classes. Devices deemed to pose a low or
moderate risk are placed in class I or II, which requires the manufacturer to submit to the FDA a 510(k) premarket notification
requesting clearance for commercial distribution, unless the device type is exempt from this requirement. Devices deemed by
the FDA to pose the greatest risk or devices deemed not substantially equivalent to a previously cleared 510(k) device are
placed in class III, requiring submission and approval of a PMA or risk-based classification through the de novo process. The
510(k) clearance, de novo authorization, and PMA processes can be resource intensive, expensive, lengthy and require payment
of significant user fees.

To obtain 510(k) clearance, we must submit a premarket notification demonstrating that the proposed device is “substantially
equivalent” to a previously 510(k)-cleared device or a device that was in commercial distribution before May 28, 1976 for
which the FDA has not yet called for the submission of PMAs, or a device that has been the subject of a de novo
authorization. The FDA’s 510(k) clearance pathway usually takes from three to 12 months from the date the notification is
submitted, but it can take longer, depending on the extent of the FDA's requests for additional information and the amount of
time a sponsor takes to fulfill them. After a device receives 510(k) clearance, any modification that could significantly affect its
safety or effectiveness, or that would constitute a major change in its intended use, will require a new 510(k) clearance or could
require premarket approval.

Another procedure for obtaining marketing authorization for a medical device is the de novo authorization process. The de novo
process is a route to market for novel medical devices that are low to moderate risk and are not substantially equivalent to a
predicate device. Once a de novo application is reviewed and authorized by the FDA, it results in the device having a Class I or
II status and future devices from the company or a competitor may use the device as a 510(k) predicate.

A PMA must be submitted if a device cannot be cleared through the 510(k) clearance process or authorized as a class II device
through the de novo process. The PMA process is generally more detailed, lengthier and more expensive than the 510(k) and de
novo processes. To date, we have no PMA approved products and do not have any class III products on our product pipeline.

Postmarket Requirements - U.S.

After the FDA permits a device to enter commercial distribution, numerous regulatory requirements continue to apply. These
include, among others:

• The FDA's Quality System Regulation, or QSR, which requires manufacturers, including third party device
manufacturers, to follow quality assurance procedures during all aspects of the manufacturing process;

• Labeling regulations including unique device identification;

• Clearance of a 510(k) for certain product modifications;

• Medical device reporting, or MDR, regulations, which require that manufacturers report to the FDA if their
device may have caused or contributed to a death or serious injury or malfunctioned in a way that would
likely cause or contribute to a death or serious injury if the malfunction were to recur; and

• Medical device correction and removal (recall) reporting regulations

Additionally, we and the manufacturing facilities of our suppliers are subject to unannounced inspections by the FDA to
determine our compliance with the QSR and other applicable regulations described above. The FDA can issue warning letters
or untitled letters, seek a court order detaining or seizing certain devices, seek an injunctions, suspend regulatory clearance or
approvals, ban certain medical devices, order repair, replacement or refund of those devices and require notification of health
professionals and others with regard to medical devices that present risks of substantial harm to the public health. The FDA may
also initiate action for criminal prosecution of such violations.

Requirements Outside the U.S.

The regulatory review process varies from country to country and may in some cases require the submission of clinical data.
Our international sales are subject to regulatory requirements in the countries in which our products are sold. These regulations
will be significantly modified in the next couple of years. For example, in May 2017, the EU Medical Devices Regulation
(Regulation 2017/745) was adopted. The EU Medical Devices Regulation, or EU MDR, repeals and replaces the EU Medical
Devices Directive. The EU MDR, among other things, is intended to establish a uniform, transparent, predictable and
sustainable regulatory framework across the European Economic Area for medical devices and ensure a high level of safety and
health while supporting innovation. Manufacturers of currently approved medical devices will have until May 2021 to meet the
requirements of the EU MDR, which reflects the EU’s decision in April 2020 to postpone the implementation date one year due
to the impact of COVID-19. Once applicable, the new regulations will among other things:

• strengthen the rules on placing devices on the market and reinforce surveillance once they are available;

• establish explicit provisions on manufacturers’ responsibilities;

• improve the traceability of medical devices;

• set up a central database to provide comprehensive information on products available in the EU; and

• strengthen rules for the assessment of certain high-risk devices before they are placed on the market.

In the meantime, the current EU Medical Devices Directive continues to apply.

The corresponding regulation for in vitro diagnostics, the EU In Vitro Diagnostic Devices Regulation (Regulation 2017/746), or
EU IVDR, becomes applicable in May 2022. In the meantime, the current EU In Vitro Diagnostic Directive continues to apply.

Drug Regulation

Development and Approval

Under the Federal Food, Drug and Cosmetic Act, FDA approval of a new drug application, or NDA, is generally required
before any new drug can be marketed in the U.S. Under the Public Health Service Act, or PHSA, FDA licensure of a biologics
license application, or BLA, is required before a biologic can be marketed in the U.S. NDAs and BLAs require extensive
studies and submission of a large amount of data by the applicant.

A generic version of an approved drug is approved by means of an abbreviated new drug application, or ANDA, by which the
sponsor demonstrates that the proposed product is the same as the approved, brand-name drug, which is referred to as the
“reference listed drug,” or RLD. Generally, an ANDA must contain data and information showing that the proposed generic
product and RLD have the same active ingredient, in the same strength and dosage form, to be delivered via the same route of
administration, are intended for the same uses and are bioequivalent. This more limited data set is in lieu of independently
demonstrating the proposed product’s safety and effectiveness, which are inferred from the fact that the product is the same as
the RLD, which the FDA previously found to be safe and effective.

We currently hold NDAs and ANDAs for liquid solutions (including anticoagulants, intravenous saline and a red blood cell
storage solution), which we sell with our blood component and whole blood collection systems.

Post-Approval Regulation

After the FDA permits a drug to enter commercial distribution, numerous regulatory requirements continue to apply. These
include the FDA's current Good Manufacturing Practices, which include a series of requirements relating to organization and
training of personnel, buildings and facilities, equipment, control of components and drug product containers and closures,
production and process controls, quality control and quality assurance, packaging and labeling controls, holding and
distribution, and laboratory controls and records and reports. The FDA has also established labeling regulations, advertising and

promotion requirements and restrictions; regulations regarding conducting recalls of product and requirements relating to the
reporting of adverse events.

Failure to comply with applicable FDA requirements and restrictions in this area may subject a company to adverse publicity,
such as warning letters, and enforcement action by the FDA, the Department of Justice, or the Office of the Inspector General
of the Department of Health and Human Services, as well as state authorities. This could subject a company to a range of
penalties that could have a significant commercial impact, including civil and criminal fines and agreements that materially
restrict the manner in which a company promotes or distributes drug or biological products.

Requirements Outside the U.S.

We must obtain the requisite marketing authorizations from regulatory authorities in foreign countries prior to marketing of a
product in those countries. The requirements and process governing product licensing vary from country to country. If we fail to
comply with applicable foreign regulatory requirements, we may be subject to, among other things, warning letters or untitled
letters, injunctions, civil, administrative, or criminal penalties, monetary fines or imprisonment, suspension or withdrawal of
regulatory approvals, suspension of ongoing clinical studies, refusal to approve pending applications or supplements to
applications filed by us, suspension or the imposition of restrictions on operations, product recalls, the refusal to permit the
import or export of our products or the seizure or detention of products.

Conflict Minerals

The Dodd-Frank Wall Street Reform and Consumer Protection Act imposes disclosure requirements regarding the use of
"Conflict Minerals" mined from the Democratic Republic of Congo and adjoining countries in products, whether or not these
products are manufactured by third parties. The conflict minerals include tin, tantalum, tungsten and gold and their derivatives.
These requirements could affect the pricing, sourcing and availability of minerals used in the manufacture of our products.
There may be material additional costs associated with complying with the disclosure requirements, such as costs related to
determining the source of any conflict minerals used in our products. Our supply chain is complex and we may be unable to
verify the origins for all metals used in our products as well as costs of possible changes to products processes, or sources of
supply as a consequence of such verification activities.

Fraud and Abuse Laws

We are subject to fraud and abuse and other healthcare laws and regulations that constrain the business or financial
arrangements and relationships through which we market, sell and distribute our products. In addition, we are subject to
transparency laws and patient privacy regulation by U.S. federal and state governments and by governments in foreign
jurisdictions in which we conduct our business. We have described below some of the key federal, state and foreign healthcare
laws and regulations that apply to our business.

The federal healthcare program Anti-Kickback Statute prohibits, among other things, knowingly and willfully offering, paying,
soliciting or receiving remuneration, directly or indirectly, in cash or in kind, to induce or in return for purchasing, leasing,
ordering or arranging for or recommending the purchase, lease or order of any healthcare item or service reimbursable, in whole
or in part, under Medicare, Medicaid or other federally financed healthcare programs. This statute has been interpreted to apply
to arrangements between manufacturers of federally reimbursed products on one hand and prescribers, purchasers and others in
a position to recommend, refer, or order federally reimbursed products on the other. Although there are a number of statutory
exemptions and regulatory safe harbors protecting certain common activities from prosecution, the exemptions and safe harbors
are drawn narrowly and practices that involve remuneration to those who prescribe, purchase, or recommend medical devices or
pharmaceutical and biological products, including certain discounts, or engaging consultants as speakers or consultants, may be
subject to scrutiny if they do not fit squarely within the exemption or safe harbor. Our practices may not in all cases meet all of
the criteria for safe harbor protection from anti-kickback liability. Moreover, there are no safe harbors for many common
practices, such as educational and research grants. Liability may be established without a person or entity having actual
knowledge of the federal Anti-Kickback Statute or specific intent to violate it. In addition, the government may assert that a
claim including items or services resulting from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent
claim for purposes of the civil False Claims Act.

The federal civil False Claims Act prohibits, among other things, any person from knowingly presenting, or causing to be
presented, a false, fraudulent or materially incomplete claim for payment of government funds, or knowingly making, using, or
causing to be made or used, a false record or statement material to an obligation to pay money to the government or knowingly
concealing or knowingly and improperly avoiding, decreasing, or concealing an obligation to pay money to the federal
government. In recent years, companies in the healthcare industry have faced enforcement actions under the federal False
Claims Act for, among other things, allegedly providing free product to customers with the expectation that the customers
would bill federal programs for the product or causing false claims to be submitted because of the company’s marketing the

product for unapproved and thus non-reimbursable, uses. False Claims Act liability is potentially significant in the healthcare
industry because the statute provides for treble damages and mandatory penalties of tens of thousands of dollars per false claim
or statement. Healthcare companies also are subject to other federal false claims laws, including, among others, federal criminal
healthcare fraud and false statement statutes that extend to non-government health benefit programs.

The federal Health Insurance Portability and Accountability Act of 1996, or HIPAA, as amended by the Health Information
Technology for Economic and Clinical Health Act, or HITECH, among other things, imposes criminal and civil liability for
knowingly and willfully executing a scheme to defraud any healthcare benefit program, including private third party payors and
knowingly and willfully falsifying, concealing or covering up a material fact or making any materially false, fictitious or
fraudulent statement in connection with the delivery of or payment for healthcare benefits, items or services.

In addition, the Physician Payment Sunshine Act, implemented as the Open Payments program, requires manufacturers of
certain products reimbursed by Medicare, Medicaid, or the Children’s Health Insurance Program to track and report to the
federal government payments and transfers of value that they make to physicians and teaching hospitals and ownership interests
held by physicians and their family and provides for public disclosures of these data.

Many states have adopted analogous laws and regulations, including state anti-kickback and false claims laws, which may
apply to items or services reimbursed under Medicaid and other state programs or, in several states, regardless of the payor.
Several states have enacted legislation requiring pharmaceutical and medical device companies to, among other things,
establish marketing compliance programs; file periodic reports with the state, including reports on gifts and payments to
individual health care providers; make periodic public disclosures on sales, marketing, pricing, clinical trials and other
activities; and/or register their sales representatives. Some states prohibit specified sales and marketing practices, including the
provision of gifts, meals, or other items to certain health care providers and/or offering co-pay support to patients for certain
prescription drugs.

Other countries, including a number of EU Member States, have laws of similar application.

Environmental Matters

Failure to comply with international, federal and local environmental protection laws or regulations could have an adverse
impact on our business or could require material capital expenditures. We continue to monitor changes in U.S. and international
environmental regulations that may present a significant risk to the business, including laws or regulations relating to the
manufacture or sale of products using plastics.

Employees

As of March 28, 2020, we employed the full-time equivalent of 3,004 persons.

Availability of Reports and Other Information

All of our corporate governance materials, including the Principles of Corporate Governance, Code of Conduct and the charters
of the Audit, Compensation, Governance and Compliance and Technology Committees are published on the Investor Relations
section of our website at www.haemonetics.com. On this web site the public can also access, free of charge, our annual,
quarterly and current reports and other documents filed or furnished to the Securities and Exchange Commission, or SEC, as
soon as reasonably practicable after we electronically file such material with, or furnish it to, the SEC. The SEC maintains an
internet site (http://www.sec.gov) that contains reports, proxy and information statements and other information regarding
issuers that file documents electronically.

Cautionary Statement Regarding Forward-Looking Information

Certain statements that we make from time to time, including statements contained in this Annual Report on Form 10-K and
incorporated by reference into this report, constitute “forward looking-statements” within the meaning of Section 27A of the
Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements do not relate
strictly to historical or current facts and reflect management’s assumptions, views, plans, objectives and projections about the
future. Forward-looking statements may be identified by the use of words such as “may,” “will,” “should,” “could,” “would,”
“expects,” “plans,” “anticipates,” “believes,” “estimates,” “projects,” “predicts,” “potential” and other words of similar
meaning in conjunction with, among other things: discussions of future operations; expected operating results and financial
performance; impacts of the COVID-19 pandemic; the Company’s strategy for growth; product development,
commercialization and anticipated performance and benefits; regulatory approvals; impact of planned acquisitions or
dispositions; market position and expenditures.

Because forward-looking statements are based on current beliefs, expectations and assumptions regarding future events, they
are subject to uncertainties, risks and changes that are difficult to predict and many of which are outside of the Company's
control. Investors should realize that if underlying assumptions prove inaccurate, or known or unknown risks or uncertainties
materialize, the Company’s actual results and financial condition could vary materially from expectations and projections
expressed or implied in its forward-looking statements. Investors are therefore cautioned not to rely on these forward-looking
statements.

The following are some important factors that could cause our actual results to differ from our expectations in any forward-
looking statements. For further discussion of these and other factors, see Item 1A. Risk Factors in this report.

• The effect of the ongoing COVID-19 pandemic, or outbreaks of communicable diseases, on our business, financial

conditions and results of operations, which may be heightened if the pandemic and various government responses to it
continue for an extended period of time;

•

Failure to achieve our long-term strategic and financial-improvement goals;

• Demand for and market acceptance risks for new and existing products, including material reductions in purchasing

from or loss of a significant customer;

•

Product quality or safety concerns, leading to product recalls, withdrawals, regulatory action by the FDA (or similar
non-U.S. regulatory agencies), reputational damage, declining sales or litigation;

Security breaches of our information technology systems or our products, which could impair our ability to conduct
business or compromise sensitive information of the Company or its customers, suppliers and other business partners,
or of customers' patients;

Pricing pressures resulting from trends toward health care cost containment, including the continued consolidation
among health care providers and other market participants;

• The continuity, availability and pricing of plastic and other raw materials, finished goods and components used in the

manufacturing of our products (including those purchased from sole-source suppliers) and the related continuity of our
manufacturing and distribution;

• Our ability to develop new products or enhancements on commercially acceptable terms or at all;

• Our ability to obtain the anticipated benefits of restructuring programs that we have or may undertake, including the

Operational Excellence Program;

• The potential that the expected strategic benefits and opportunities from any planned or completed acquisition or

divestiture by the Company may not be realized or may take longer to realize than expected;

• The impact of enhanced requirements to obtain regulatory approval in the U.S. and around the world, including the EU

MDR and the associated timing and cost of product approval, and

• Our ability to comply with established and developing U.S. and foreign legal and regulatory requirements, including
the U.S. Foreign Corrupt Practices Act, or FCPA, and similar laws in other jurisdictions, as well as U.S. and foreign
export and import restrictions and tariffs;

• Our ability to execute and realize anticipated benefits from our investments in emerging economies;

• Our ability to retain and attract key personnel;

• Costs and risks associated with product liability and other litigation claims;

• Our ability to meet our existing debt obligations and raise additional capital when desire on terms reasonably

acceptable to us;

• The potential effect of foreign currency fluctuations and interest rate fluctuations on our net sales, expenses, and

resulting margins;

• The impact of changes in U.S. and international tax laws;

• Market conditions impacting our stock price and/or share repurchase program, and the possibility that our share

repurchase program may be delayed, suspended or discontinued; and

• Our ability to protect intellectual property and the outcome of patent litigation.

Investors should understand that it is not possible to predict or identify all such factors and should not consider the risks
described above and in Item 1A. Risk Factors to be a complete statement of all potential risks and uncertainties. The Company
does not undertake to publicly update any forward-looking statement that may be made from time to time, whether as a result
of new information or future events or developments.

ITEM 1A. RISK FACTORS

In addition to the other information contained in this Annual Report on Form 10-K and the exhibits hereto, the following risk
factors should be considered carefully in evaluating our business. Our business, financial condition, cash flows or results of
operations could be materially adversely affected by any of these risks. This section contains forward-looking statements. Please
refer to the cautionary statements made under the heading "Cautionary Statement Regarding Forward-Looking Information" at
the end of Item 1 of this Annual Report on Form 10-K for more information on the qualifications and limitations on forward-
looking statements.

The ongoing COVID-19 pandemic, or outbreaks of communicable diseases, could have a material adverse impact on our
business, financial condition, cash flows and results of operations, which may be heightened if the pandemic and various
government responses to it continue for an extended period of time.

The COVID-19 outbreak has significantly impacted economic activity and markets around the world. If the pandemic continues
and conditions worsen, we could suffer a material adverse effect on our business, financial condition, cash flows and results of
operations in numerous ways, including, but not limited to, those outlined below:

• Product Demand. As a result of COVID-19, we have experienced in the fourth quarter of fiscal 2020, and expect to

experience more significantly in fiscal 2021, decreased demand for our products and increased volatility in demand for
our products. For example, lower collection volumes at source plasma collection centers due to COVID-19 factors,
including stay-at-home and other government orders designed to slow the spread of COVID-19, donor safety concerns,
and reduced donor collection capacity due to shutdowns and social distancing requirements, have adversely affected
and likely will continue to adversely affect demand for our Plasma disposable products. Additionally, reductions in
elective surgeries and trauma cases, restrictions on vendor access at customer sites and the reallocation of hospital
resources to address critical intensive care needs during the COVID-19 pandemic have adversely affected and will
likely continue to adversely affect demand for our Hospital products, particularly our Cell Saver and TEG devices. We
also have experienced, and may continue to experience, in certain markets rapid and unpredictable changes in demand
for some of our Blood Center disposable products as blood collectors seek to replenish their blood product inventories
and safety stocks. Such changes could impact our ability to meet demand on a timely basis or could result in potential
reductions in demand in future periods if the supply of blood held by our customers significantly exceeds the demand
for blood from hospitals due to declines of elective surgeries and trauma cases. Finally, we may experience delays in
our clinical trials as a result of COVID-19 that may result in delays for new or expanded authorizations for our
products, which could adversely affect our development and commercialization plans for our products.

• Manufacturing, Supply Chain and Distribution System Disruption. COVID-19 and its associated economic disruptions
could have an adverse impact on our manufacturing capacity, supply chains and distribution systems, including as a
result of impacts associated with preventive and precautionary measures that we, other businesses and governments are
taking and financial difficulties experienced by our third-party manufacturers and suppliers. Although we have not
experienced significant manufacturing or supply chain difficulties to date as a result of COVID-19, we may in the
future. A reduction or interruption in any of our manufacturing processes could have a material adverse effect on our
business.

• Potential Liquidity and Credit Impacts. While we have significant sources of cash and liquidity and access to
committed credit lines, we may be adversely impacted by delays in payments of outstanding receivables if our
customers experience financial difficulties or are unable to borrow money to fund their operations, which may
adversely impact their ability to pay for our products on a timely basis, if at all, which in turn would adversely affect
our financial condition. Moreover, conditions in the financial and credit markets could increase the cost of and our
accessibility to capital. If we need to access capital, there can be no assurance that financing may be available on
attractive terms, if at all.

These and other impacts of COVID-19 may also have the effect of heightening many of the other risks described in the Risk
Factors section of this Annual Report on Form 10-K. We believe the magnitude of the adverse impact of these factors on our
business, financial condition, cash flows and results of operations will be primarily driven by: the severity and duration of the
COVID-19 pandemic; the timing, scope and effectiveness of governmental responses to the COVID-19 pandemic and associated
economic disruptions; general confidence about personal health and safety; and the COVID-19 pandemic’s impact on U.S. and
international healthcare systems, the U.S. economy and the worldwide economy.

If our business strategy does not yield the expected results or we fail to implement the necessary changes to our operations,
we could see material adverse effects on our business, financial condition or results of operations.

We view our operations and manage our business in three principal reporting segments: Plasma, Blood Center and Hospital. We
believe that Plasma and Hospital have growth potential, while Blood Center competes in challenging markets that require us to
manage the business differently, including reducing costs, shrinking the scope of the current product line and evaluating
opportunities to exit unfavorable customer contracts.

If we have not correctly identified the product categories with greatest growth potential, we will not allocate our resources
appropriately which could have a material adverse effect on our business, financial condition or results of operations. Further, if
we are unable to reduce costs and complexity in our Blood Center business unit, we will obtain lower than expected cash flows
to fund our future growth and capital needs. This could have a material adverse effect on our liquidity and results of operations.

Material reductions in purchasing from or loss of a significant customer could adversely affect our business.

In fiscal 2020, our two largest Plasma customers each accounted for more than 10% of our net revenues and our ten largest
customers accounted for approximately 54% of our net revenues. If any of our largest customers materially reduce their
purchases from us or terminate their relationship with us for any reason, including material decreases in demand for plasma or
development of alternative processes, we could experience an adverse effect on our results of operations or financial condition.

Three of our largest Plasma customers have contracts that are subject to renewal before the end of fiscal 2022. In the event that
we do not extend our current contracts or enter into new contracts with these customers on acceptable terms, our revenues and
operating income could be negatively impacted in a manner that could have a material adverse effect on our results of operations
or financial condition.

Defects or quality issues associated with our products could adversely affect the results of operations.

Quality is extremely important to us and our customers due to the serious and costly consequences of product failure.
Manufacturing or design defects, component failures, unapproved or improper use of our products, or inadequate disclosure of
risks or other information relating to the use of our products can lead to injury or other serious adverse events. These events
could lead to recalls or safety alerts relating to our products (either voluntary or as required by the FDA or similar governmental
authorities in other countries), and could result, in certain cases, in the removal of a product from the market. A recall could
result in significant costs and lost sales and customers, enforcement actions and/or investigations by state and federal
governments or other enforcement bodies, as well as negative publicity and damage to our reputation that could reduce future
demand for our products. Personal injuries relating to the use of our products can also result in significant product liability
claims being brought against us. In some circumstances, such adverse events could also cause delays in regulatory approval of
new products or the imposition of post-market approval requirements.

If we are unable to successfully convert customers to our NexSys platform, meet customer placement demands or negotiate
competitive pricing, we may not realize the intended benefits of our investment.

We have focused heavily on the development and commercialization of our NexSys platform, comprised of both the NexSys
PCS plasmapheresis system and NexLynk DMS software. Since the commercial launch of our NexSys platform in fiscal 2019,
we have entered into long-term customer contracts providing for conversion to NexSys. However, if additional customers do not
adopt NexSys or they do and we are unable to procure sufficient NexySys PCS devices from our contract manufacturers to meet
demand or receive a price that provides an inadequate return on our investment, or if such customer adoption does not occur
within the expected timeframe, we may not realize the full intended benefits of our investment.

We are increasingly dependent on information technology systems and subject to privacy and security laws and a cyber-attack
or other breach of these systems could have a material adverse effect on our business, financial condition or results of
operations.

We increasingly rely on information technology systems, including cloud-based computing, to process, transmit and store
electronic information for our day-to-day operations and for our customers, including sensitive personal information and
proprietary or confidential information. Additionally, certain of our products collect data regarding patients and donors and
connect to our systems for maintenance and other purposes or are actively managed by Haemonetics on behalf of specific
customers. Similar to other large multi-national companies, the size and complexity of our information technology systems
makes them vulnerable to a cyber-attack, malicious intrusion, breakdown, destruction, loss of data privacy, or other significant
disruption. We also outsource certain elements of our information technology systems to third parties that, as a result of this
outsourcing, could have access to certain confidential information and whose systems may also be vulnerable to these types of
attacks or disruptions. Security threats, including cyber and other attacks are becoming increasingly sophisticated, frequent, and
adaptive and, like other large multi-national companies, we have experienced cyber incidents in the past and may experience
them in the future. Accordingly, our information systems require an ongoing commitment of significant resources to maintain,
protect and enhance existing systems and develop new systems to keep pace with continuing changes in information processing
technology, evolving systems and regulatory standards, the increasing need to protect patient and customer information and
changing customer patterns. Although prior cyber incidents have not had a material effect on our business and we have invested
and continue to invest in the protection of personal information and proprietary or confidential information, there can be no
assurance that our efforts will prevent cyber attacks, intrusions, breakdowns or other incidents or ensure compliance with all
applicable securities and privacy laws, regulations, standard standards. In addition, third parties may attempt to hack into our
products to obtain data relating to patients with our products or our proprietary information. Any failure by us or third parties we
work with to maintain or protect our respective information technology systems and data integrity, including from cyber-attacks,
intrusions or other breaches, could result in the unauthorized access to patient data and personally identifiable information, theft
of intellectual property or other misappropriation of assets, or otherwise compromise our confidential or proprietary information
and disrupt our operations. Any of these events, in turn, may cause us to lose existing customers, have difficulty preventing,
detecting and controlling fraud, have disputes with customers, physicians and other healthcare professionals, be subject to legal
claims and liability, have regulatory sanctions or penalties imposed, have increases in operating expenses, incur expenses or lose
revenues as a result of a data privacy breach or theft of intellectual property, or suffer other adverse consequences, any of which
could have a material adverse effect on our business, financial condition or results of operations.

Additionally, the legal and regulatory environment surrounding information security and privacy is increasingly demanding, with
the imposition of new and changing requirements across businesses. We are required to comply with increasingly complex and
changing legal and regulatory requirements that govern the collection, use, storage, security, transfer, disclosure and other
processing of personal data in the United States and in other countries, including, but not limited to, HIPAA, HITECH, the
California Consumer Privacy Act, or CCPA, and the European Union’s General Data Protection Regulation, or GDPR. The
GDPR imposes stringent European Union data protection requirements and provides for significant penalties for noncompliance.
HIPAA also imposes stringent data privacy and security requirements and the regulatory authority has imposed significant fines
and penalties on organizations found to be out of compliance. CCPA provides consumers with a private right of action against
companies who have a security breach due to lack of appropriate security measures. We or our third-party providers and business
partners may also be subjected to audits or investigations by one or more domestic or foreign government agencies relating to
compliance with information security and privacy laws and regulations, and noncompliance with the laws and regulations could
results in material fines or litigation.

We outsource certain aspects of our business to a single third-party vendor that subjects us to risks, including disruptions in
business and increased costs.

Currently, we rely on a single vendor to support several of our business processes, including customer service and support and
elements of enterprise technology, procurement, accounting and human resources. We make diligent efforts to ensure that the
provider of these outsourced services is observing proper internal control practices. However, there are no guarantees that
failures will not occur. Accordingly, we are subject to the risks associated with the vendor’s ability to successfully provide the
necessary services to meet our needs.

If our vendor is unable to adequately protect our data or information is lost, if our ability to deliver our services is interrupted
(including as a result of significant outbreaks of disease, including the ongoing COVID-19 pandemic, natural disasters, strikes,
terrorism attacks or other adverse events in the countries in which the vendor operates), if our vendor's fees are higher than
expected, or if our vendor makes mistakes in the execution of operations support, then our business and operating results may be
negatively affected.

A significant portion of our revenue derives from the sale of blood collection supplies. Declines in the number of blood
collection procedures have adversely impacted our business and future declines may have an adverse effect on our business,
financial condition and results of operations.

The demand for whole blood disposable products in the U.S. continued to decrease in fiscal 2020 due to sustained declines in
transfusion rates caused by hospitals' improved blood management techniques and protocols. In response to this trend, U.S.
blood center collection groups prefer single source vendors for their whole blood collection products and are primarily focused
on obtaining the lowest average selling prices. We expect to see continued declines in transfusion rates and the market to remain
price-focused and highly competitive for the foreseeable future. Continued declines in this market could have a material adverse
effect on our liquidity and results of operations.

Consolidation of healthcare providers and blood collectors has increased demand for price concessions and caused the
exclusion of suppliers from significant market segments, which could have an adverse effect on our business, financial
condition and results of operations.

Political, economic and policy influences are causing the healthcare and blood collection industries to make substantial structural
and financial changes that affect our results of operations. Government and private sector initiatives limiting the growth of
healthcare costs are causing structural reforms in healthcare delivery, including the reduction in blood use and reduced payments
for care. These trends have placed greater pricing pressure on suppliers and, in some cases, decreased average selling prices and
increased the number of sole source relationships. This pressure impacts our Hospital and Blood Center businesses.

The influence of group purchasing organizations in the U.S., integrated delivery networks and large single accounts has the
potential to put price pressure on our Hospital business. It also puts price pressure on our U.S. Blood Center customers who are
also facing reduced demand for red cells. Our Blood Center customers have responded to this pressure by creating their own
group purchasing organizations and resorting to single source tenders to create incentives for suppliers, including us, to
significantly reduce prices.

We expect that market demand, government regulation, third-party reimbursement policies, government contracting
requirements and societal pressures will continue to change the worldwide healthcare industry, resulting in further business
consolidations and alliances among our customers and competitors. This may exert further downward pressure on the prices of
our products and adversely impact our business, financial condition or results of operations.

An interruption in our ability to manufacture our products, obtain key components or raw materials, or the failure of a sole
source supplier may adversely affect our business.

We have a complex global supply chain that involves integrating key suppliers and our manufacturing capacity into a global
movement of components and finished goods.

We manufacture certain key disposables at single locations with limited alternate facilities. If an event occurs that results in the
closure of or damage to one or more of these facilities, we may be unable to supply the relevant products at previous levels or at
all for some period. Additionally, for reasons of quality assurance or cost effectiveness, we purchase certain finished goods,
components and raw materials from sole suppliers, notably JMS Co. Ltd., Kawasumi Laboratories, Leica Biosystems Melbourne
Pty. Ltd., Sanmina Corporation and Sparton Medical Systems Colorado LLC, who have their own complex supply chains. Any
disruption to one or more of our suppliers’ production or delivery of sufficient volumes of components conforming to our
specifications, could disrupt or delay our ability to deliver finished products to our customers. For example, we purchase
components in Asia for use in manufacturing in the U.S., Puerto Rico and Mexico. We source all of our apheresis equipment
from Asia and regularly ship finished goods from the U.S., Puerto Rico and Mexico to the rest of the world.

Due to the high standards and stringent requirements of the FDA and other similar non-U.S. regulatory agencies applicable to
manufacturing our products, such as the FDA's Quality System Regulation and Good Manufacturing Practices, we may not be
able to quickly establish additional or replacement sources for certain raw materials, components or finished goods. A reduction
or interruption in manufacturing, or an inability to secure alternative sources of raw materials, components or finished goods on
commercially reasonable terms or in a timely manner, could compromise our ability to manufacture our products on a timely and
cost-competitive basis, which may have a material adverse effect on our business, financial condition and results of operations.

Plastics are the principal component of our disposables, which are the main source of our revenues. Any change in the price,
composition or availability of the plastics or resins we purchase could adversely affect our business.

We face risks related to price, composition and availability of the plastic raw materials used in our business. Climate change
(including laws or regulations passed in response thereto) could increase our costs, in particular our costs of supply, energy and
transportation/freight. Material or sustained increases in the price of petroleum or petroleum derivatives could have an adverse
impact on the costs to procure plastic raw materials and the costs of our transportation/freight. Increases in the costs of other
commodities also may affect our procurement costs to a lesser degree.

The composition of the plastic we purchase is also important. Today, we purchase plastics that contain phthalates, which are used
to make plastic malleable. Should plastics with phthalates become unavailable due to regulatory changes, we may be required to
obtain regulatory approvals from the FDA and foreign authorities for a number of products.

While we have not experienced shortages in the past, any interruption in the supply for certain plastics could have a material
impact on our business by limiting our ability to manufacture and sell the products that represent a significant portion of our
revenues. These outcomes may in turn result in customers transitioning to available competitive products, loss of market share,
negative publicity, reputational damage, loss of customer confidence or other negative consequences (including a decline in
stock price).

If we are unable to successfully expand our product lines through internal research and development, our business may be
materially and adversely affected.

A significant element of our strategy is to increase revenue growth by focusing on innovation and new product development.
New product development requires significant investment in research and development, clinical trials and regulatory approvals.
The results of our product development efforts may be affected by a number of factors, including our ability to anticipate
customer needs, innovate and develop new products and technologies, successfully complete clinical trials, obtain regulatory
approvals in the United States and abroad, manufacture products in a cost-effective manner, obtain appropriate intellectual
property protection for our products, and gain and maintain market acceptance of our products. In addition, patents attained by
others could preclude or delay our commercialization of a product. There can be no assurance that any products now in
development or that we may seek to develop in the future will achieve technological feasibility, obtain regulatory approval or
gain market acceptance.

We may not realize the benefits we expect from our Operational Excellence Program.

In July 2019, our Board of Directors approved a new Operational Excellence Program, also referred to in this report as the 2020
Program, and delegated authority to management to determine the detail of the initiatives that will comprise the program. The
2020 Program is designed to improve operational performance and reduce cost principally in our manufacturing and supply
chain operations. While cost savings from the 2020 Program to date have been consistent with our expectations, it is possible
that events and circumstances, such as financial or strategic difficulties, delays and unexpected costs may occur, including as a
direct or indirect result of the COVID-19 pandemic, that could result in our not realizing all of the anticipated benefits or our not
realizing the anticipated benefits on our expected timetable. Our inability to realize all of the anticipated benefits from the 2020
Program could have a material adverse effect on our business, results of operations, cash flows and financial condition.

If our business development activities are unsuccessful, we may not realize the intended benefits.

We may seek to supplement our organic growth through strategic acquisitions, investments and alliances. Such transactions are
inherently risky and require significant effort and management attention. The success of any acquisition, investment or alliance
may be affected by a number of factors, including our ability to properly assess and value the potential business opportunity or to
successfully integrate any business we may acquire into our existing business. Promising partnerships and acquisitions may also
not be completed for reasons such as competition among prospective partners or buyers, the inability to reach satisfactory terms,
the need for regulatory approvals or the existence of economic conditions affecting our access to capital for acquisitions and
other capital investments. If our business development activities are unsuccessful, we may not realize the intended benefits of
such activities, including that acquisition and integration costs may be greater than expected or the possibility that expected
return on investment synergies and accretion will not be realized or will not be realized within the expected timeframe.

As a medical device manufacturer we operate in a highly regulated industry, and non-compliance with applicable laws or
regulations could adversely affect our financial condition and results of operations.

The manufacture, distribution and marketing of our products are subject to regulation by the FDA and other non-U.S. regulatory
bodies. Our operations are also subject to continuous review and monitoring by the FDA and other regulatory authorities.
Failure to substantially comply with applicable regulations could subject our products to recall or seizure by government
authorities, or an order to suspend manufacturing activities. If our products were determined to have design or manufacturing
flaws, this could result in their recall or seizure. Either of these situations could also result in the imposition of fines.

Additionally, the European Union regulatory bodies have adopted the EU MDR and the EU IVDR, each of which impose stricter
requirements than prior European Union directives with respect to the marketing and sale of medical devices, including in the
area of clinical data requirements, evaluation requirements, quality systems and post-market surveillance. Manufacturers of
currently approved medical devices will have until May 2021 to meet the requirements of the EU MDR and until May 2022 to
meet the EU IVDR. Complying with the requirements of these regulations may require us to incur significant expenditures.
Failure to meet these requirements could adversely impact our business in the European Union and other regions that tie their
product registrations to the EU requirements.

If we or our suppliers fail to comply with ongoing regulatory requirements, our products could be subject to restrictions or
withdrawal from the market.

Any product for which we obtain clearance or approval, and the manufacturing processes, reporting requirements, post-approval
clinical data and promotional activities for such product, will be subject to continued regulatory review, oversight and periodic
inspection by the FDA and other domestic and foreign regulatory bodies. In particular, we and our third-party suppliers must
comply with the FDA's Quality System Regulation or current Good Manufacturing Practices requirements (depending on the
products at issue).

Any future failure by us or one of our suppliers to comply with applicable statutes and regulations administered by the FDA, or
the failure to timely and adequately respond to any adverse inspectional observations or product safety issues, could result in
enforcement actions.

Any FDA sanctions could have a material adverse effect on our reputation, business, results of operations and financial
condition. Furthermore, our key component suppliers may not currently be or may not continue to be in compliance with all
applicable regulatory requirements, which could result in our failure to produce our products on a timely basis and in the
required quantities, if at all.

Our inability to obtain, or any delay in obtaining, any necessary U.S. or foreign regulatory clearances or approvals for our
newly developed products or product enhancements could harm our business and prospects.

Our products are subject to a high level of regulatory oversight. Most medical devices cannot be marketed in the U.S. without
510(k) clearance or premarket approval by the FDA. Our inability to obtain, or any delay in obtaining, any necessary U.S. or
foreign regulatory clearances or approvals for newly developed products or product enhancements could harm our business and
prospects. The process of obtaining clearances and approvals can be costly and time consuming. In addition, there is a risk that
any approvals or clearances, once obtained, may be withdrawn or modified.

Delays in receipt of, or failure to obtain, necessary clearances or approvals for our new products could delay or preclude
realization of product revenues from new products or result in substantial additional costs which could decrease our profitability.

Our relationships with customers and third-party payers are subject to applicable anti-kickback, fraud and abuse,
transparency and other healthcare laws and regulations, which could expose us to criminal sanctions, civil penalties,
exclusion, contractual damages, reputational harm and diminished profits and future earnings.

We are subject to fraud and abuse and other healthcare laws and regulations that constrain the business or financial arrangements
and relationships through which we market, sell and distribute our products. In addition, we are subject to transparency laws and
patient privacy regulation by U.S. federal and state governments and by governments in foreign jurisdictions in which we
conduct our business.

The shifting commercial compliance environment and the need to build and maintain robust and expandable systems to comply
with different compliance or reporting requirements in multiple jurisdictions increase the possibility that a healthcare or
pharmaceutical company may fail to comply fully with one or more of these requirements. Efforts to ensure that our business
19

arrangements with third parties will comply with applicable healthcare laws and regulations may involve substantial costs. It is
possible that governmental authorities will conclude that our business practices do not comply with applicable fraud and abuse
or other healthcare laws and regulations or guidance. If our operations are found to be in violation of any of these laws or any
other governmental regulations that may apply to us, we may be subject to significant civil, criminal and administrative
penalties, damages, fines, exclusion from government funded healthcare programs, such as Medicare and Medicaid, and the
curtailment or restructuring of our operations. If any of the physicians or other providers or entities with whom we expect to do
business is found not to be in compliance with applicable laws, they may be subject to criminal, civil or administrative sanctions,
including exclusions from government funded healthcare programs. Even if we are not determined to have violated these laws,
government investigations into these issues typically require the expenditure of significant resources and generate negative
publicity, which could harm our financial condition and divert resources and the attention of our management from operating our
business.

As a substantial amount of our revenue comes from outside the U.S., we are subject to geopolitical events, economic volatility,
violations of anti-corruption laws, export and import restrictions and tariffs, decisions by local regulatory authorities and the
laws and medical practices in foreign jurisdictions.

We do business in over 85 countries and have distributors in approximately 70 of these countries. This exposes us to currency
fluctuation, geopolitical risk, economic volatility, anti-corruption laws, export and import restrictions, local regulatory authorities
and the laws and medical practices in foreign jurisdictions.

If there are sanctions or restrictions on the flow of capital that prevent product importation or receipt of payments in Russia or
China, our business could be adversely affected.

Our international operations are governed by the U.S. Foreign Corrupt Practices Act, or FCPA, and other similar anti-corruption
laws in other countries. Generally, these laws prohibit companies and their business partners or other intermediaries from
making improper payments to foreign governments and government officials in order to obtain or retain business. Global
enforcement of such anti-corruption laws has increased in recent years, including aggressive investigations and enforcement
proceedings. While we have an active compliance program and various other safeguards to discourage impermissible practices,
we have distributors in approximately 70 countries, several of which are considered high risk for corruption. As a result, our
global operations carry some risk of unauthorized impermissible activity on the part of one of our distributors, employees, agents
or consultants. Any alleged or actual violation could subject us to government scrutiny, severe criminal or civil fines, or
sanctions on our ability to export product outside the U.S., which could adversely affect our reputation and financial condition.
Export of U.S. technology or goods manufactured in the U.S. to some jurisdictions requires special U.S. export authorization or
local market controls that may be influenced by factors, including political dynamics, outside our control.

Finally, any other significant changes in the competitive, legal, regulatory, reimbursement or economic environments of the
jurisdictions in which we conduct our international business could have a material impact on our business.

We sell our products in certain emerging economies which exposes us to less mature regulatory systems, more volatile
markets for our products and greater credit risks. A loss of funding for our products or changes to the regulatory regime
could lead to lost revenue or account receivables.

There are risks with doing business in emerging economies, such as Brazil, Russia, India and China. These economies tend to
have less mature product regulatory systems and more volatile financial markets. In addition, the government controlled
healthcare system's ability to invest in our products and systems may abruptly shift due to changing government priorities or
funding capacity. Our ability to sell products in these economies is dependent upon our ability to hire qualified employees or
agents to represent our products locally and our ability to obtain and maintain the necessary regulatory approvals in a less mature
regulatory environment. If we are unable to retain qualified representatives or maintain the necessary regulatory approvals, we
will not be able to continue to sell products in these markets. We are exposed to a higher degree of financial risk if we extend
credit to customers in these economies.

In many of the international markets in which we do business, including certain parts of Europe, South America, the Middle
East and Asia, our employees, agents or distributors offer to sell our products in response to public tenders issued by various
governmental agencies.

There is additional risk in selling our products through agents or distributors, particularly in public tenders. If they misrepresent
our products, do not provide appropriate service and delivery, or commit a violation of local or U.S. law, our reputation could be
harmed and we could be subject to fines, sanctions or both.

Our success depends on our ability to attract and retain key personnel needed to successfully operate the business.

Our ability to compete effectively depends on our ability to attract and retain key employees, including people in senior
management, sales, marketing and R&D positions. Our ability to recruit and retain such talent will depend on a number of
factors, including hiring practices of our competitors, compensation and benefits, work location, work environment and industry
economic conditions. In December 2019, we relocated our corporate headquarters to a leased office space in Boston,
Massachusetts. Although we believe our move to Boston will help us to attract and retain key talent and provide a dynamic space
to engage our employees, competition for top talent in the healthcare market, and the increased cost or commuting time for
current employees relocating or traveling to Boston could impact our ability to realize the intended results of the move.

We have also effected organizational and strategic changes in the last several years, including our Complexity Reduction
Initiative, which have resulted in workforce reductions. If we fail to effectively manage our ongoing organizational and strategic
changes in a manner that allows us to retain and attract talent, our financial condition, results of operations and reputation, as
well as our ability to successfully attract, motivate and retain key employees, could be harmed. Additionally, to the extent our
senior management or other key employees are impacted by the COVID-19 pandemic and are not available to perform their job
duties, we could experiences delays in, or the suspension of, important strategic and commercial objectives.

We operate in an industry susceptible to significant product liability claims. Product liability claims could damage our
reputation and impair our ability to market our products or obtain professional or product liability insurance, or increase the
cost of such insurance.

Our products are relied upon by medical personnel in connection with the treatment of patients and the collection of blood or
blood components from donors. In the event that patients or donors sustain injury or death in connection with their condition or
treatment, we, along with others, may be sued and whether or not we are ultimately determined to be liable, we may incur
significant legal expenses. These claims may be brought by individuals seeking relief on their own behalf or purporting to
represent a class. In addition, product liability claims may be asserted against us in the future based on events we are not aware
of at the present time.

Such litigation could damage our reputation and, therefore, impair our ability to market our products or obtain professional or
product liability insurance, or increase the cost of such insurance. While we believe that our current product liability insurance
coverage is sufficient, there is no assurance that such coverage will be adequate to cover incurred liabilities or that we will be
able to obtain acceptable product and professional liability coverage in the future.

If we are unable to meet our debt obligations or experience a disruption in our cash flows, it could have an adverse effect on
our financial condition, results of operations or cost of borrowing.

On June 15, 2018, we entered into a five-year credit agreement with certain lenders which provided for a $350.0 million term
loan (the "Term Loan") and a $350.0 million revolving loan (the "Revolving Credit Facility" and together with the Term Loan,
the "Credit Facilities"). As of March 28, 2020, we had $323.8 million of debt outstanding under the Term Loan and $60.0 million
outstanding under the Revolving Credit Facility. In April 2020, we borrowed an additional $150 million under our Revolving
Credit Facility. The obligations to pay interest and repay the borrowed amounts may restrict our ability to adjust to adverse
economic conditions and our ability to fund working capital, capital expenditures, acquisitions or other general corporate
requirements. The interest rate on borrowings under our Credit Facilities is variable and subject to change based on market
forces. Fluctuations in interest rates could adversely affect our profitability and cash flows.

In addition, as a global corporation, we have significant cash reserves held in foreign countries. Some of these balances may not
be immediately available to repay our debt.

Our Credit Facilities contain financial covenants that require us to maintain specified financial ratios and make interest and
principal payments. As of March 28, 2020, we were in compliance with the covenants pursuant to our Credit Facilities, and we
currently forecast that we will be in compliance with our credit facility covenants through the period ending April 3, 2021. If the
impact of COVID-19 is more severe than currently forecasted this may impact our ability to comply with our Credit Facility
covenants, and it not certain that we would be able to renegotiate the terms of our Credit Facility in order to provide relief related
to the applicable covenants. If in the future we are unable to satisfy our Credit Facility covenants, and then were unable to
renegotiate the terms thereof, we could be required to repay any borrowed amounts on short notice.

Our operations and plans for future growth may require additional capital that may not be available to us, or only available
to us on unfavorable terms.

Our operations and plans for future growth may require us to raise additional capital in the future. Our ability to issue additional
debt or enter into other financing arrangements on acceptable terms could be adversely affected by our debt levels, unfavorable
changes in economic conditions generally or uncertainties that affect the capital markets. Higher borrowing costs or the inability
to access capital markets could adversely affect our ability to support future growth and operating requirements and, as a result,
our business, financial condition and results of operations could be adversely affected. Refer to Liquidity and Capital
Resources within our Management's Discussion and Analysis of Financial Condition and Results of Operations contained in Item
7 of this Annual Report on Form 10-K for further discussion of our debt obligations.

We are exposed to fluctuations in currency exchange rates, which could adversely affect our cash flows and results of
operations.

International revenues and expenses account for a substantial portion of our operations. In fiscal 2020, our international revenues
accounted for 34.6% of our total revenues. The exposure to fluctuations in currency exchange rates takes different forms.
Reported revenues, as well as manufacturing and operational costs denominated in foreign currencies by our international
businesses, fluctuate due to exchange rate movement when translated into U.S. dollars for financial reporting purposes.
Fluctuations in exchange rates could adversely affect our profitability in U.S. dollars of products and services sold by us into
international markets, where payment for our products and services and related manufacturing and operational costs is made in
local currencies.

Our effective tax rate may fluctuate and we may incur obligations in tax jurisdictions in excess of amounts that have been
accrued.

We are subject to taxation in numerous countries, states and other jurisdictions. In preparing our financial statements, we record
the amount of tax payable in each of the jurisdictions in which we operate. Our future effective tax rate, however, may be lower
or higher than prior years due to numerous factors, including a change in our geographic earnings mix, changes in the
measurement of our deferred taxes and recently enacted and future tax law changes in jurisdictions in which we operate.
Changes in our operations, including headcount in Switzerland, Puerto Rico or Malaysia, could adversely affect our tax rate due
to favorable tax rulings in these jurisdictions. We are also subject to tax audits in various jurisdictions and tax authorities may
disagree with certain positions we have taken and assess additional taxes. Any of these factors could cause us to experience an
effective tax rate significantly different from previous periods or our current expectations, which could adversely affect our
business, results of operations and cash flows.

Changes in tax laws or exposure to additional income tax liabilities could have a material impact on our financial condition,
results of operations and/or liquidity.

We are subject to income taxes, non-income based taxes and tax audits, in both the U.S. and various foreign jurisdictions. Tax
authorities may disagree with certain positions we have taken and assess additional taxes. We regularly assess the likely
outcomes of these audits in order to determine the appropriateness of our tax provision and have established contingency
reserves for material, known tax exposures. However, the calculation of such tax exposures involves the application of complex
tax laws and regulations in many jurisdictions, as well as interpretations as to the legality under various rules in certain
jurisdictions. Therefore, there can be no assurance that we will accurately predict the outcomes of these disputes or other tax
audits or that issues raised by tax authorities will be resolved at a financial cost that does not exceed our related reserves and the
actual outcomes of these disputes and other tax audits could have a material impact on our results of operations or financial
condition.

Changes in tax laws and regulations, or their interpretation and application, in the jurisdictions where we are subject to tax could
materially impact our effective tax rate. For example, in 2017, the U.S. enacted the Tax Cuts and Jobs Act, or the Act, and we
expect the U.S. Treasury to issue future notices and regulations under the Act. Certain provisions of the Act and the regulations
issued thereunder could have a significant impact on our future results of operations as could interpretations made by the
Company in the absence of regulatory guidance and judicial interpretations. The result of the upcoming U.S. presidential and
congressional elections may result in additional U.S. tax law changes that could have a material impact on our future effective
tax rate.

Additionally, the U.S. Congress, government agencies in non-U.S. jurisdictions where we and our affiliates do business and the
Organization for Economic Co-operation and Development, or OECD, have recently focused on issues related to the taxation of
multinational corporations. The OECD has released its comprehensive plan to create an agreed set of international rules for

fighting base erosion and profit shifting. In addition, the OECD, the European Commission and individual countries are
examining changes to how taxing rights should be allocated among countries in light of the digital economy. As a result, the tax
laws in the U.S. and other countries in which we and our affiliates do business could change on a prospective or retroactive basis
and any such changes could materially adversely affect our business.

Our share price has been volatile and may fluctuate, and accordingly, the value of an investment in our common stock
may also fluctuate.

Stock markets in general and our common stock in particular have experienced significant price and trading volume volatility
over recent years. The market price and trading volume of our common stock may continue to be subject to significant
fluctuations due to factors described under this Item 1A. Risk Factors, as well as economic and geopolitical conditions in general
and to variability in the prevailing sentiment regarding our operations or business prospects, as well as, among other things,
changing investment priorities of our shareholders. Because the market price of our common stock fluctuates significantly,
shareholders may not be able sell their shares at attractive prices.

Our share repurchase program could affect the price of our common stock and increase volatility and may be suspended or
terminated at any time, which may result in a decrease in the trading price of our common stock.

On May 7, 2019, we announced that our Board of Directors authorized the repurchase of up to $500 million of our outstanding
common stock over the next two years. Under the share repurchase program, we are authorized to repurchase, from time to time,
outstanding shares of common stock in accordance with applicable laws both on the open market, including under trading plans
established pursuant to Rule 10b5-1 under the Securities Exchange Act of 1934, as amended and in privately negotiated
transactions. The actual timing, number and value of shares repurchased will be determined by us and will depend on a number
of factors, including market conditions, applicable legal requirements and compliance with the terms of loan covenants. The
share repurchase program may be suspended, modified or discontinued at any time and we have no obligation to repurchase any
amount of its common stock under the program. Repurchases pursuant to our share repurchase program could affect our stock
price and increase its volatility. The existence of a share repurchase program could also cause our stock price to be higher than it
would be in the absence of such a program and could potentially reduce the market liquidity for our common stock. There can be
no assurance that any share repurchases will enhance shareholder value because the market price of our common stock may
decline below the levels at which we repurchased our common stock. Although our share repurchase program is intended to
enhance long-term shareholder value, short-term stock price fluctuations could reduce the program’s effectiveness. Refer to Note
7, Earnings per Share, to our consolidated financial statements contained in Item 8 of this Annual Report on Form 10-K for
further discussion.

There is a risk that our intellectual property may be subject to misappropriation in some countries.

Certain countries, particularly China, do not enforce compliance with laws that protect intellectual property rights with the same
degree of vigor as is available under the U.S. and European systems of justice. Further, certain of our intellectual property rights
are not registered in China, or if they were, have since expired. This may permit others to produce copies of products in China
that are not covered by currently valid patent registrations. There is also a risk that such products may be exported from China to
other countries.

In order to aggressively protect our intellectual property throughout the world, we have a program of patent disclosures and
filings in markets where we conduct significant business. While we believe this program is reasonable and adequate, the risk of
loss is inherent in litigation as different legal systems offer different levels of protection to intellectual property and it is still
possible that even patented technologies may not be protected absolutely from infringement.

Pending and future intellectual property litigation could be costly and disruptive to us.

We operate in an industry that is susceptible to significant intellectual property litigation. This type of litigation is expensive,
complex and lengthy and its outcome is difficult to predict. Patent litigation may result in adverse outcomes and could
significantly divert the attention of our technical and management personnel.

Our products may be determined to infringe another party's patent, which could lead to financial losses or adversely affect
our ability to market our products.

There is a risk that one or more of our products may be determined to infringe a patent held by another party. If this were to
occur, we may be subject to an injunction or to payment of royalties, or both, which may adversely affect our ability to market

the affected product or otherwise have an adverse effect on our results of operations. In addition, competitors may patent
technological advances that may give them a competitive advantage or create barriers to entry.

ITEM 1B. UNRESOLVED STAFF COMMENTS

None.

ITEM 2. PROPERTIES

Our global headquarters is located in Boston, Massachusetts. During fiscal 2020, we sold our principal office in Braintree,
Massachusetts and completed our relocation to a 62,000 square foot leased office space in Boston, Massachusetts.

As of March 28, 2020, our principal manufacturing centers were located in Pennsylvania, Utah and California within the U.S.,
as well as internationally in Puerto Rico, Mexico and Malaysia. Our products are distributed worldwide from primary
distributor centers in Tennessee and Switzerland. We believe all of these facilities are well-maintained and suitable for the
operations conducted in them. These facilities produce and manufacture products for more than one of our business segments.

The following is a summary of our facilities as of March 28, 2020 (in approximate square feet):

U.S.

International

Total

ITEM 3. LEGAL PROCEEDINGS

Owned

Leased

Total

165,385

135,000

300,385

626,998

727,818

1,354,816

792,383

862,818

1,655,201

Information with respect to this Item may be found in Note 16, Commitments & Contingencies, to the Consolidated Financial
Statements in Item 8 of this Annual Report on Form 10-K, which is incorporated herein by reference.

ITEM 4. MINE SAFETY DISCLOSURES

None.

PART II
ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND
ISSUER PURCHASES OF EQUITY SECURITIES

Market Information

Haemonetics' common stock is listed on the New York Stock Exchange ("NYSE") under the symbol HAE.

Holders

There were 120 holders of record of the Company’s common stock as of March 28, 2020.

Dividends

The Company has never paid cash dividends on shares of its common stock and does not expect to pay cash dividends in the
foreseeable future.

Issuer Purchases of Equity Securities

The following table provides information on the Company’s share repurchases during the fourth quarter of fiscal 2020:

December 29, 2019 - January 25, 2020

January 26, 2020 - February 22, 2020

February 23, 2020 - March 28, 2020
Total

Total
Number of
Shares
Purchased

95,373

Average Price
Paid per Share
(2)

Total Number of
Shares
Purchased as
Part of Publicly
Announced
Program

95,373

Approximate
Dollar Value of
Shares that May
Yet Be
Purchased
Under the
Program(1)

95,373

$325,000,000

(1) In May 2019, the Company's Board of Directors authorized the repurchase of up to $500 million of the Company’s common stock from time to time,
based on market conditions, over the next two years. Under the Company's share repurchase program, shares may be repurchased in accordance with
applicable laws both on the open market, including under trading plans established pursuant to Rule 10b5-1 under the Exchange Act, and in privately
negotiated transactions.
(2) In January 2020, the Company completed a $50.0 million repurchase of its common stock pursuant to an accelerated share repurchase agreement entered
into with Bank of America, N.A. in December 2019. The total number of shares repurchased under the accelerated share repurchase agreement was 0.4
million at an average price per share upon final settlement of $114.73.

ITEM 6. SELECTED FINANCIAL DATA

Haemonetics Corporation Five-Year Review

(In thousands, except per share and employee data)
Summary of Operations:
Net revenues

Cost of goods sold

Gross profit

Operating expenses:

Research and development

Selling, general and administrative

Impairment of assets

Contingent consideration income

Total operating expenses

Operating income (loss)

Gain on divestiture

Interest and other expense, net

Income (loss) before provision (benefit) for
income taxes

Provision (benefit) for income taxes

Net income (loss)

Income (loss) per share:

Basic

Diluted

Weighted average number of shares

Weighted average number of shares and
common stock equivalent shares

Financial and Statistical Data:

Working capital

Current ratio

Property, plant and equipment, net

Capital expenditures

Depreciation and amortization

Total assets

Total debt

Stockholders’ equity

Debt as a % of stockholders’ equity

Employees

2020

2019

2018

2017

2016

988,479

967,579

903,923

886,116

908,832

507,622

378,494

502,918

405,914

503,966

484,513

30,883

299,680

50,599

—

381,162

103,351

—

(16,199)

550,043

417,536

35,714

298,277

—

333,991

83,545

—
(9,912)

492,015

411,908

39,228

316,523

—

355,751

56,157

8,000
(4,525)

37,556

301,726

58,593

—

397,875
(19,381)
—
(8,095)

87,152

10,626

76,526

1.51

1.48

73,633

18,614

55,019

1.07

1.04

59,632

14,060

45,572

0.86

0.85

(27,476)
(1,208)
(26,268) $

(0.51) $
(0.51) $

50,692

51,533

52,755

51,524

44,965

317,223

92,395
(4,727)
449,856
(43,942)
—
(9,474)

(53,416)
2,163
(55,579)

(1.09)
(1.09)
50,910

51,815

52,942

53,501

51,524

50,910

2020

2019

2018

2017

2016

328,817

2.2

253,399

48,758

110,289

340,362

2.4

343,979

118,961

109,418

136,474

1.4

332,156

74,799

89,247

298,850

2.4

323,862

76,135

89,733

302,535

2.6

337,634

102,405

89,911

$ 1,267,110

$ 1,274,767

$ 1,237,339

$ 1,238,709

$ 1,319,128

382,493

587,109

350,120

667,868

253,682

752,429

314,647

739,610

408,000

721,565

65.1%

3,004

52.4%

3,216

33.7%

3,136

42.5%

3,107

56.5%

3,225

ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF
OPERATIONS

Our Business

We view our operations and manage our business in three principal reporting segments: Plasma, Blood Center and Hospital. For
that purpose, “Plasma” includes plasma collection devices and disposables, plasma donor management software, and
anticoagulant and saline sold to plasma customers. “Blood Center” includes blood collection and processing devices and
disposables for red cells, platelets and whole blood as well as related donor management software. "Hospital", which is
comprised of Hemostasis Management, Cell Salvage and Transfusion Management products, includes devices and
methodologies for measuring coagulation characteristics of blood, surgical blood salvage systems, specialized blood cell
processing systems and disposables and blood transfusion management software.

We believe that Plasma and Hospital have growth potential, while Blood Center competes in challenging markets which require
us to manage the business differently, including reducing costs, shrinking the scope of the current product line, and evaluating
opportunities to exit unfavorable customer contracts.

Recent Developments

COVID-19

We are closely managing the impacts of the COVID-19 pandemic on our business results of operations and financial condition.
As a result of the timing of the pandemic relative to our fiscal year end, we experienced only limited effects of COVID-19 in
fiscal 2020. While the duration and implications remain uncertain, we believe our business operations will experience a higher
impact from COVID-19 in fiscal 2021. The extent of such impact will depend on future developments that are highly uncertain
and cannot be accurately predicted, including new information that may emerge concerning COVID-19, the actions taken to
contain it or treat its impact and the economic impact on local, regional, national and international markets.

Our immediate response to the COVID-19 pandemic has been to focus on business continuity and the safety of our employees.
This includes prioritizing employee safety with remote work and travel restrictions, and limiting exposure for our
manufacturing and customer facing employees, including field service and sales teams, to ensure supplies and services for our
customers.

We have been able to continue to supply our products to our customers worldwide and all of our manufacturing facilities
continue to operate. While we currently do not anticipate any material interruptions in our manufacturing process, it is possible
that the COVID-19 pandemic and response efforts may have an impact on our future ability to manufacture our products or to
have our products reach all markets.

We are also focused on preserving cash and have implemented a number of actions to help us protect cash flow and allocate
capital such as reducing non-essential spending, delaying certain compensation-related items, inventory management,
reviewing capital projects and the associated costs, and restricting travel. In April 2020, we borrowed an additional $150.0
million under our revolving credit facility, increasing our cash on hand to approximately $300 million. Refer to Liquidity and
Capital Resources within our Management's Discussion and Analysis for additional information regarding our cash position
and liquidity.

We believe that demand for our products is resilient, even within an environment of constrained spending. While we believe
that our product segments are beginning to shift to recovery, with markets in Asia and parts of the U.S. and Europe reopening,
the recovery could be protracted and disrupted by additional resurgences and lockdowns. For additional information regarding
the expected impacts to our business units and the various risks posed by the COVID-19 pandemic, refer to Results of
Operations within Management's Discussion and Analysis and Risk Factors contained in Item 1A of this Annual Report on
Form 10-K.

Acquisitions

On April 1, 2020, we acquired all of the outstanding equity of enicor GmbH, the manufacturer of ClotPro®, a new generation
whole blood coagulation testing system. The acquisition of this innovative viscoelastic diagnostic device further augments our
portfolio of hemostasis analyzers within our Hospital business unit.

On January 13, 2020, we purchased the technology underlying the TEG® 6s Hemostasis Analyzer System from Cora
Healthcare, Inc. and CoraMed Technologies, LLC (the "Cora Parties") for $35.0 million. In connection with this transaction, we
acquired ownership of intellectual property previously licensed from the Cora Parties on an exclusive basis in the field of
hospitals and hospital laboratories. This acquisition will allow us to pursue site of care opportunities beyond the hospital
setting.

Divestiture

On May 21, 2019, we transferred to CSL Plasma Inc. (“CSL”) substantially all of the tangible assets held by Haemonetics
relating to the manufacture of anti-coagulant and saline at our Union, South Carolina facility and CSL assumed certain related
liabilities pursuant to the terms of a settlement, release and asset transfer agreement between the parties dated May 13, 2019. At
the closing, we received $9.8 million of proceeds and were concurrently released from our obligations to supply liquid
solutions under a 2014 supply agreement with CSL. We recognized an asset impairment in the first quarter of fiscal 2020 of
$48.7 million as a result of this transaction.

Share Repurchase Programs

In May 2019, our Board of Directors authorized the repurchase of up to $500 million of Haemonetics common shares over the
next two years. In July 2019, we completed a $75.0 million repurchase of our common stock pursuant to an accelerated share
repurchase agreement ("ASR") entered into with Citibank N.A. ("Citibank") in June 2019. The total number of shares
repurchased under the ASR was 0.6 million at an average price per share upon final settlement of $116.33. In October 2019, we
completed a $50.0 million repurchase of our common stock pursuant to an ASR entered into with Morgan Stanley & Co. LLC
("Morgan Stanley") in September 2019. The total number of shares repurchased under the ASR was 0.4 million at an average
price per share upon final settlement of $124.37. In January 2020, we completed an additional $50.0 million repurchase of our
common stock pursuant to an ASR entered into with Bank of America, N.A. ("Bank of America") in December 2019. The total
number of shares repurchased under the ASR was 0.4 million at an average price per share upon final settlement of $114.73.

As of March 28, 2020, the total remaining authorization for repurchases of the Company's common stock under the share
repurchase program was $325.0 million.

Restructuring Program

In July 2019, our Board of Directors approved a new Operational Excellence Program (the "2020 Program") and delegated
authority to management to determine the detail of the initiatives that will comprise the program. The 2020 Program is designed
to improve operational performance and reduce cost principally in our manufacturing and supply chain operations. We estimate
that we will incur aggregate charges between $60 million and $70 million in connection with the 2020 Program. These charges,
the majority of which will result in cash outlays, including severance and other employee costs, will be incurred as the specific
actions required to execute these initiatives are identified and approved and are expected to be substantially completed by the
end of fiscal 2023. Savings from the 2020 Program are targeted to reach $80 million to $90 million on an annualized basis once
the program is completed. During the fiscal year ended March 28, 2020, we incurred $11.9 million of restructuring and
turnaround costs under this program.

Relocation of Corporate Headquarters

In December 2018, we entered into a lease for office space in Boston, MA to serve as our new corporate headquarters and
replace our prior corporate headquarters located in Braintree, MA. During the second quarter of fiscal 2020, we sold $7.8
million of real estate and other assets associated with the Braintree corporate headquarters and entered into a lease with the
buyer that allowed the Company to leaseback that facility on a rent-free basis through December 31, 2019 until the completion
of our relocation to Boston, MA, which occurred during the third quarter of fiscal 2020. As a result of this transaction, we
received net cash proceeds of $15.0 million and non-cash consideration of $0.9 million related to a free rent period ending in
December 2019. The transaction resulted in a net gain of $8.1 million.

Change in Reportable Segments

Effective March 31, 2019, we completed the transition of our operating structure to three global business units - Plasma, Blood
Center and Hospital - and accordingly reorganized our operating and reporting structure to align with our three global business
units. This new segment structure has been realigned in accordance with the respective markets to accurately reflect the
ongoing performance of each business and excludes revenue for service, maintenance and parts related to the applicable
business unit. The discussion of our results of operations that follows has been revised to reflect our new reportable segments.

Market Trends

Plasma Market

There are two key aspects to the market for our plasma products - the growth in demand for plasma-derived biopharmaceuticals
and the limited number of significant biopharmaceutical companies in this market.

Changes in demand for plasma-derived biopharmaceuticals, particularly immunoglobulin, are the key driver of plasma
collection volumes in the biopharmaceutical market. Various factors related to the supply of plasma and the production of
plasma-derived biopharmaceuticals also affect collection volume, including the following:

•

Biopharmaceutical companies are seeking more yield from the collected plasma to meet growing demand for
biopharmaceuticals without requiring an equivalent increase in plasma supply.

Newly approved indications for auto-immune diseases treated with plasma-derived therapies, the growing
understanding and diagnosis of these diseases, longer lifespans and a growing aging patient population increase the
demand for plasma.

Geographical expansion of biopharmaceuticals also increases demand for plasma.

Demand for our plasma products in fiscal 2020 continued to grow in North America as collection volumes benefited from an
expanding end user market for plasma-derived biopharmaceuticals with U.S. produced plasma meeting the vast majority of
plasma volume demand worldwide. As a result, our Plasma business’ revenues are primarily from the U.S.

Despite the overall growth in the market, the number of biopharmaceutical companies that collect and fractionate the majority
of source plasma is low and industry consolidation is ongoing. Significant barriers to entry exist for new entrants due to high
capital outlay requirements for fractionation, long regulatory pathways to the licensing of collection centers and fractionation
facilities and approval of plasma-derived biopharmaceuticals. With these factors, we do not expect meaningful new entries or
diversification. As a result, there are relatively few customers for our Plasma products, especially in the U.S. where 80% of the
world's source plasma is collected and only a few customers provide the majority of our Plasma revenue.

Blood Center Market

In the Blood Center market, we sell automated blood component and manual whole blood collection systems, as well as
software solutions that include blood drive planning, donor recruitment and retention, blood collection, component
manufacturing and distribution. While we sell products around the world, a significant portion of our sales are to a limited
number of customers due to relatively limited number of blood collectors.

Within the Blood Center market, we have seen three trends that have negatively impacted growth of the overall marketplace
despite the overall increase in aging populations. Overall, we continue to expect a decline in this business in the low to mid
single-digits.

•

Declining transfusion rates in mature markets due to the development of more minimally invasive procedures with
lower associated blood loss, as well as better blood management.

Competition in multi-unit collection technology for automated blood component collection systems has intensified and
has negatively impacted our sales in markets where these collections are prevalent.

Industry consolidation through group purchasing organizations has intensified pricing competition particularly in the
manual whole blood collection systems, as well as impacting our software business where switching large customers
to new or emerging technology platforms has a relatively high cost.

Hospital Market

Hemostasis Management Market - The use of routine coagulation testing is well established throughout the world in various
medical procedures, including cardiovascular surgery, organ transplantation, trauma, post-partum hemorrhage and percutaneous
coronary intervention. While standard tests like prothrombin time, partial thromboplastin time and platelet count have limited
ability to reveal a patient’s risk for bleeding, they do not provide information on the patient’s risk for thrombosis. In addition,
these routine tests do not provide specific data about clot quality or stability. As a result of these limitations, clinicians are
increasingly utilizing advanced hemostasis testing to provide more information about a patient’s hemostasis status, resulting in
improved clinical decision-making. In addition, advanced hemostasis testing supports hospital efforts to reduce the risks,
complications and costs associated with unnecessary blood component transfusions.

Haemonetics’ TEG® and ClotPro hemostasis analyzer systems are advanced diagnostic tools that provide a comprehensive
assessment of a patient’s overall hemostasis. This information enables clinicians to decide the most appropriate clinical
treatment for the patient to minimize blood loss and reduce clotting risk. For example, TEG analyzers have been used to
support clinical decision making in open cardiovascular surgery and organ transplantation, becoming the standard of care in
liver transplants. In more recent years, interest has grown into the utilization of TEG in trauma and other procedures in which
the risk of hemorrhage and thrombosis are high.

Geographically, TEG systems have achieved the highest market penetration in North America, Europe and China. However,
there are considerable growth opportunities in these as well as other markets, as TEG systems become more established as the
standard of care around the world. Our ClotPro system is currently available in select European and Asian markets and is not
available for use or sale in the U.S.

Cell Salvage Market - In recent years, more efficient blood use and less invasive surgeries have reduced demand for
autotransfusion in these procedures and contributed to intense competition in mature markets, while increased access to
healthcare in emerging economies has provided new markets and sources of growth. Orthopedic procedures have seen similar
changes with improved blood management practices, including the use of tranexamic acid to treat and prevent postoperative
bleeding, significantly reducing the number of transfusions and autotransfusion. Geographically, the Cell Saver® has achieved
the highest market penetration in North America, Europe and Japan. However, there are considerable growth opportunities in
certain Asia Pacific and other emerging markets as addressable procedure volumes grow and the use of autotransfusion is
becoming accepted as a standard of care.

Transfusion Management Market - Revenues from BloodTrack® have increased in the U.S. and Europe in recent years as
hospitals seek means to improve efficiencies and meet compliance guidelines for tracking and dispositioning blood components
to patients. SafeTrace Tx®'s leading market share in the U.S. remains steady with potential opportunity to expand
internationally.

Financial Summary

(In thousands, except per share data)

Net revenues

Gross profit

% of net revenues

Operating expenses

Operating income

% of net revenues

Gain on divestiture

Interest and other expense, net

Income before taxes

Tax expense

% of pre-tax income

Net income

% of net revenues

Net income per share - basic

Net income per share - diluted

Fiscal Year

2020

988,479

484,513

49.0%

381,162

103,351

10.5%

— $

(16,199)

87,152

10,626

12.2%

76,526

7.7%

1.51

1.48

2019

967,579

417,536

43.2%

333,991

83,545

8.6%

— $

(9,912)
73,633

18,614

25.3%

55,019

5.7%

1.07

1.04

2018

903,923

411,908

45.6%

355,751

56,157

6.2%

8,000
(4,525)
59,632

14,060

23.6%

45,572

5.0%

0.86

0.85

% Increase/
(Decrease)
20 vs. 19

% Increase/
(Decrease)
19 vs. 18

2.2 %

16.0 %

14.1 %

23.7 %

— %

63.4 %

18.4 %

(42.9)%

7.0 %

1.4 %

(6.1)%

48.8 %

(100.0)%

n/m

23.5 %

32.4 %

39.1 %

20.7 %

41.1 %

42.3 %

24.4 %

22.4 %

Our fiscal year ends on the Saturday closest to the last day of March. Fiscal 2020, 2019 and 2018 include 52 weeks with each
quarter having 13 weeks.

Net revenues for fiscal 2020 increased 2.2% compared with fiscal 2019. Without the effects of foreign exchange, net revenues
increased 2.8% compared with fiscal 2019. Revenue increases in Plasma and Hospital primarily drove the overall increase in
revenue during the fiscal year ended March 28, 2020. This increase was partially offset by declines in our Blood Center
business unit.

Net revenues for fiscal 2019 increased 7.0% compared with fiscal 2018 both with and without the effects of foreign exchange,
as revenue increases in Plasma and Hospital were partially offset by declines in our Blood Center business unit.

Operating income increased during fiscal 2020 as compared with fiscal 2019, primarily due to favorable pricing, product mix
and incremental savings from both the 2020 Program and the Complexity Reduction Initiative (the "2018 Program"). The gain
recognized on the sale of real estate and other assets associated with the Braintree corporate headquarters also contributed to the
increase. Impairment charges associated with the divestiture of our plasma liquid solutions operations to CSL partially offset
these increases during fiscal 2020.

Operating income increased during fiscal 2019 as compared with fiscal 2018, primarily due to increased revenue volumes,
favorable price and product mix, lower restructuring and turnaround costs and annualized savings as a result of the prior year
restructuring initiatives. This increase was partially offset by asset impairments, accelerated depreciation related to PCS2®
devices, higher freight, fuel and carrier fees and increased investments within our Plasma and Hospital business units.

Management's Use of Non-GAAP Measures

Management uses non-GAAP financial measures, in addition to financial measures in accordance with accounting principles
generally accepted in the United States of America ("U.S. GAAP"), to monitor the financial performance of the business, make
informed business decisions, establish budgets and forecast future results. These non-GAAP financial measures should be
considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with U.S. GAAP.
Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year
periods using a constant currency conversion rate. We have provided this non-GAAP financial measure because we believe it
provides meaningful information regarding our results on a consistent and comparable basis for the periods presented.

RESULTS OF OPERATIONS

Net Revenues by Geography

Fiscal Year

Fiscal 2020 versus 2019

Fiscal 2019 versus 2018

(In thousands)

2020

2019

2018

Reported
Growth

Currency
impact

Constant
currency
growth (1)

Reported
Growth

Currency
impact

Constant
currency
growth (1)

United States

$ 646,204

$ 606,845

$ 548,731

6.5 %

— %

6.5 %

10.6%

—%

10.6%

International
Net revenues
(1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant
currency. See "Management's Use of Non-GAAP Measures."

355,192
$ 903,923

360,734
$ 967,579

342,275
$ 988,479

(5.1)%
2.2 %

(3.2)%
2.8 %

(1.9)%
(0.6)%

1.6%
7.0%

—%
—%

1.6%
7.0%

International Operations and the Impact of Foreign Exchange

Our principal operations are in the United States, Europe, Japan and other parts of Asia. Our products are marketed in
approximately 85 countries around the world through a combination of our direct sales force and independent distributors and
agents.

The percentage of revenue generated in our principle operating regions is summarized below:

United States

Japan

Europe

Asia

Other

Total

2020

Fiscal Year

2019

2018

65.4%

7.2%

15.5%

11.1%

0.8%

62.7%

7.2%

17.0%

12.3%

0.8%

60.7%

7.5%

18.2%

12.7%

0.9%

100.0%

International sales are generally conducted in local currencies, primarily Japanese Yen, Euro, Chinese Yuan and Australian
Dollar. Our results of operations are impacted by changes in foreign exchange rates, particularly in the value of the Yen, Euro
and Australian Dollar relative to the U.S. Dollar. We have placed foreign currency hedges to mitigate our exposure to foreign
currency fluctuations.

Please see section entitled “Foreign Exchange” in this discussion for a more complete explanation of how foreign currency
affects our business and our strategy for managing this exposure.

Net Revenues by Business Unit

Fiscal Year

Fiscal 2020 versus 2019

Fiscal 2019 versus 2018

(In thousands)

2020

2019

2018

Reported
Growth

Currency
impact

Plasma

Blood Center
Hospital (2)
Service

$ 458,681

$ 426,650

$ 363,099

7.5%

317,761

193,437

18,600

329,727

192,270

18,932

341,736

(3.6)%

179,269

0.6%

19,819

(1.8)%

(0.4)%

(0.7)%

(1.4)%

Constant
currency
growth (1)

7.9%

(2.9)%

2.0%

Reported
Growth

Currency
impact

17.5%

(3.5)%

7.3%

—%

(0.1)%

0.2%

Constant
currency
growth (1)

17.5%

(3.4)%

7.1%

(0.4)%

(4.5)%

(1.3)%

(3.2)%

$ 967,579

$ 988,479

$ 903,923

7.0%
2.2%
Net revenues
(1) Constant currency growth, a non-GAAP financial measure, measures the change in revenue between the current and prior year periods using a constant
currency. See "Management's Use of Non-GAAP Measures."
(2) Hospital revenue includes Hemostasis Management revenue of $95.7 million, $85.7 million and $73.7 million for fiscal years 2020, 2019 and 2018,
respectively. Hemostasis Management revenue increased 11.7% during fiscal 2020 as compared with fiscal 2019. Without the effect of foreign exchange,
Hemostasis Management revenue increased 13.5% during fiscal 2020 as compared with fiscal 2019. Hemostasis Management revenue increased 16.2%
during fiscal 2019 as compared with fiscal 2018. Without the effect of foreign exchange, Hemostasis Management revenue increased 16.3% during fiscal
2019 as compared with fiscal 2018.

(0.6)%

2.8%

7.0%

—%

Plasma

Plasma revenue increased 7.5% during fiscal 2020 as compared with fiscal 2019. Without the effect of foreign exchange,
Plasma revenue increased 7.9% during fiscal 2020. This revenue growth was primarily driven by an increase in volume of
plasma disposables due to continued strong performance in the U.S., favorable NexSys PCS pricing and increases in sales of
software. This increase was partially offset by declines in plasma liquid solutions during fiscal 2020 due to certain strategic
exits within our plasma liquid solutions business, including the divestiture of our Union, South Carolina facility during fiscal
2020. We expect continued declines in our plasma liquid solutions revenue in connection with these strategic exits. However,
we will continue to supply liquid solutions to our customers on an as needed basis using contract manufacturers.

Due to the timing of COVID-19 relative to our fiscal year end, our Plasma business unit experienced limited effects from the
pandemic in fiscal 2020. We anticipate higher impacts from COVID-19 on our fiscal 2021 Plasma results as factors like stay-at-
home orders, transportation restrictions and donor safety concerns, combined with reduced collection capacity due to
shutdowns and social distancing requirements, will continue to impact our revenue throughout the COVID-19 pandemic and
recovery. We believe these challenges will begin to subside when we see some easing of these containment measures. Despite
the current challenges, we continue to believe that the Plasma business unit has growth potential as recessionary pressures have
historically contributed to greater donor availability and growth in the long-term global demand for plasma-derived
pharmaceuticals is expected to continue.

Plasma revenue increased 17.5% during fiscal 2019 as compared with fiscal 2018. There was no foreign exchange impact on
Plasma revenue during fiscal 2019. This revenue growth was primarily driven by an increase in volume of plasma disposables
due to continued strong performance in the U.S. and favorable NexSys PCS pricing during fiscal 2019. Increases in sales of
liquid solutions also contributed to the growth during fiscal 2019.

Blood Center

Blood Center revenue decreased 3.6% during fiscal 2020 as compared with fiscal 2019. Without the effect of foreign exchange,
Blood Center revenue decreased 2.9% during fiscal 2020. This decrease was primarily driven by declines in whole blood
disposables and software revenue. Apheresis also contributed to the overall decline as certain customers converted to alternative
sources of supply. The expected impact of the loss of this apheresis business is an incremental revenue decline of $17 million in
fiscal 2021.

Our Blood Center business unit experienced limited effects from the COVID-19 pandemic in fiscal 2020 due to the timing of
the pandemic relative to our fiscal year end. During fiscal 2020, the impact of COVID-19 on the Blood Center business unit
was limited as an initial decline in donations was followed by a rapid increase in demand, as blood collectors sought to
replenish their blood product inventories and safety stocks. During fiscal 2021, there may be a greater impact on Blood Center
revenue caused by an imbalance in the supply and demand for blood products. However, we expect that the demand for blood
will normalize with procedure volumes.

Blood Center revenue decreased 3.5% during fiscal 2019 as compared with fiscal 2018. Without the effect of foreign exchange,
Blood Center revenue decreased 3.4% during fiscal 2019. This decrease was primarily driven by lower whole blood revenue
due to continued market declines, the strategic exit of certain contracts, products and markets, including unfavorable order
timing associated with these exits, as well as product recalls. Declines in software revenue in the U.S and platelet revenue
driven by the continued shift toward double dose collection techniques in Japan also contributed to the decrease.

Hospital

Hospital revenue increased 0.6% during fiscal 2020 as compared with fiscal 2019. Without the effect of foreign exchange,
Hospital revenue increased 2.0% during fiscal 2020. This increase was primarily attributable to the growth of disposables
associated with TEG® diagnostic systems, principally in the U.S. In May 2019, we received FDA clearance for the use of TEG
6s in adult trauma settings. In January 2020, we purchased the technology underlying the TEG 6s system which will allow us to
pursue site of care opportunities beyond the hospital setting. In addition, on April 1, 2020, we acquired enicor GmbH, the
manufacturer of ClotPro®, a new generation whole blood coagulation testing system which further augmented our portfolio of
diagnostic devices.

The revenue increase during fiscal 2020 was partially offset by declines due to the discontinuance of sales of our OrthoPAT
products effective March 31, 2019 and the impact of COVID-19, primarily in China, due to declines of elective surgeries, a
reduction of trauma cases, restricted vendor access at customer sites and the reallocation of hospital resources to critical
intensive care needs. We expect a continued negative impact on our Hospital business unit throughout the COVID-19 pandemic
and recovery. However, we believe the end-market for our product portfolio is inherently strong and demand for our hospital
products will normalize as hospitals address the backlog of elective procedures coupled with the return of non-elective
procedures to pre-pandemic levels.

Hospital revenue increased 7.3% during fiscal 2019 as compared with fiscal 2018. Without the effect of foreign exchange,
Hospital revenue increased 7.1% during fiscal 2019. This increase was primarily attributable to the growth of disposables
associated with TEG® diagnostic systems, principally in the U.S. and China. The increase during fiscal 2019 was partially offset
by the continued decline in OrthoPAT® revenue.

Gross Profit

(In thousands)

Gross profit

% of net revenues

Fiscal Year

2020

2019

2018

% Increase/
(Decrease)
20 vs. 19

% Increase/
(Decrease)
19 vs. 18

484,513

417,536

411,908

16.0%

1.4%

49.0%

43.2%

45.6%

Gross profit increased 16.0% during fiscal 2020 as compared with fiscal 2019. Without the effects of foreign exchange, gross
profit increased 17.1% during fiscal 2020. The increase in the gross profit margin during fiscal 2020 was primarily due to
favorable pricing driven by the annualization of NexSys PCS device conversions, incremental savings from both the 2020
Program and the complexity reduction initiative, product mix, and the absence of impairment charges that were incurred in the
prior year.

Gross profit increased 1.4% during fiscal 2019 as compared with fiscal 2018. Without the effects of foreign exchange, gross
profit increased 0.5% during fiscal 2019. Gross profit margin percentage decreased by 240 basis points for fiscal 2019 as
compared with fiscal 2018. The decrease in the gross profit margin during fiscal 2019 was primarily due to increased
depreciation expense primarily due to Plasma devices and asset impairments. This decrease was partially offset by favorable
price and volume mix as well as savings as a result of the prior year restructuring initiative.

Operating Expenses

(In thousands)

Research and development

% of net revenues

Selling, general and administrative

% of net revenues

Impairment of assets

% of net revenues

Total operating expenses

% of net revenues

Research and Development

Fiscal Year

2019

35,714

3.7%

298,277

30.8%

— $

—%

% Increase/
(Decrease)
20 vs. 19

% Increase/
(Decrease)
19 vs. 18

(13.5)%

(9.0)%

2018

39,228

4.3%

316,523

0.5 %

(5.8)%

35.0%

—

—%

100.0 %

— %

333,991

355,751

14.1 %

(6.1)%

2020

30,883

3.1%

299,680

30.3%

50,599

5.1%

381,162

38.6%

34.5%

39.4%

Research and development expenses decreased 13.5% during fiscal 2020 as compared with fiscal 2019. Without the effects of
foreign exchange, research and development expenses decreased 13.4% during fiscal 2020. The decrease in fiscal 2020 was
primarily driven by investments made in clinical programs in the prior year period in order to support FDA clearance for the use
of TEG 6s in adult trauma settings, which was received in May 2019.

Research and development expenses decreased 9.0% during fiscal 2019 as compared with fiscal 2018. Without the effects of
foreign exchange, research and development expenses decreased 8.4% during fiscal 2019. The decrease in fiscal 2019 was
primarily driven by lower restructuring and turnaround costs partially offset by our continued investment of resources in
clinical programs, primarily in our Hospital business unit, as well as continued investment in our Plasma business unit.

Selling, General and Administrative

Selling, general and administrative expenses increased 0.5% during fiscal 2020 as compared with fiscal 2019. Without the
effects of foreign exchange, selling, general and administrative expenses increased 1.4% during fiscal 2020. The increase in
fiscal 2020 was primarily due to an increase in investments, share-based compensation expense, restructuring and turnaround
costs and PCS2 related costs. This increase was partially offset by the gain recognized on the sale of assets associated with the
Braintree corporate headquarters and incremental savings from both the 2020 Program and the 2018 Program.

Selling, general and administrative expenses decreased 5.8% during fiscal 2019 as compared with fiscal 2018. Without the
effects of foreign exchange, selling, general and administrative expenses decreased 5.6% during fiscal 2019. The decrease in
fiscal 2019 was primarily the result of lower restructuring and turnaround costs and annualized savings from restructuring
initiatives. This decrease was partially offset by increased investments within our Plasma and Hospital business units, higher
freight, fuel and carrier fees and an increase in variable compensation and share-based compensation expense.

Impairment of Assets

We recognized impairment charges of $50.6 million during fiscal 2020 primarily as a result of the transfer to CSL of
substantially all of our tangible assets related to the manufacture of anti-coagulant and saline at our Union, South Carolina
facility. Refer to Note 5, Divestiture, to the Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K
for information pertaining to this agreement.

Interest and Other Expense, Net

Interest and other expenses increased 63.4% during fiscal 2020 as compared with fiscal 2019. Without the effects of foreign
exchange, interest and other expenses increased 68.3% during fiscal 2020. The increase is primarily driven by a reduction in
capitalized interest, realized losses on interest rate swaps due to declining rates, and an increase in interest expense from
borrowings under our $350.0 million term loan and $350.0 million revolving loan. The effective interest rate on total debt
outstanding for the fiscal year ended March 28, 2020 was 2.9%.

Interest expense increased $4.9 million during fiscal 2019 as compared with fiscal 2018 due to an increase in the Term Loan
balance as well as an increase in the effective interest rate.

Income Taxes

Reported income tax rate

12.2%

25.3%

23.6%

(13.1)%

1.7%

Fiscal Year

2020

2019

2018

% Increase/
(Decrease)
20 vs. 19

% Increase/
(Decrease)
19 vs. 18

Reported Tax Rate

We conduct business globally and report our results of operations in a number of foreign jurisdictions in addition to the United
States. Our reported tax rate is impacted by the jurisdictional mix of earnings in any given period as the foreign jurisdictions in
which we operate have tax rates that differ from the U.S. statutory tax rate.

We have assessed, on a jurisdictional basis, the available means of recovering deferred tax assets, including the ability to carry-
back net operating losses, the existence of reversing temporary differences, the availability of tax planning strategies and
available sources of future taxable income. As of March 28, 2020, we maintain a valuation allowance against certain U.S.
deferred tax assets that are not more-likely-than-not realizable and have a full valuation allowance against the net deferred tax
assets of certain foreign subsidiaries.

For the year ended March 28, 2020, we recorded an income tax provision of $10.6 million on our worldwide pre-tax income of
$87.2 million, resulting in a reported tax rate of 12.2%. Our effective tax rate for the year ended March 28, 2020 is lower than
our effective tax rates of 25.3% and 23.6% for the years ended March 30, 2019 and March 31, 2018, respectively. Our decrease
in tax rate for fiscal 2020, as compared with fiscal 2019, is primarily the result of tax benefits associated with windfall stock
compensation deductions and favorable changes in the jurisdictional mix of earnings partially offset by the impact of changes in
valuation allowance, tax reserves and increased nondeductible executive compensation. The rate was higher than the fiscal 2018
tax rate due to the impact of U.S. tax reform provisions that became effective in fiscal 2019, including global intangible low
taxed income and nondeductible executive compensation, partially offset by windfall tax benefits on stock compensation
deductions.

Income Tax Acts

Beginning in fiscal 2019, we incorporated the certain provisions of the Tax Cuts and Jobs Act (the "Act") in the calculation of
the tax provision and effective tax rate, including the provisions related to global intangible low taxed income (“GILTI”),
foreign derived intangible income (“FDII”), base erosion anti abuse Tax (“BEAT”), as well as other provisions which limit tax
deductibility of expenses. For fiscal 2020, the GILTI provisions have the most significant impact. Under the new law, U.S.
taxes are imposed on foreign income in excess of a deemed return on tangible assets of its foreign subsidiaries. The ability to

benefit from a deduction and foreign tax credits against a portion of the GILTI income may be limited under the GILTI rules as
a result of the utilization of net operating losses, foreign sourced income, and other potential limitations within the foreign tax
credit calculation.

Interpretive guidance on the accounting for GILTI states that an entity can make an accounting policy election to either
recognize deferred taxes for temporary basis differences expected to reverse as GILTI in future years or provide for the tax
expense related to GILTI in the year the tax is incurred as a period expense only. The Company has made the accounting policy
election to recognize GILTI as a period expense.

The Coronavirus Aid, Relief and Economic Security Act (the "CARES Act") was enacted in the United States on March 27,
2020. The CARES Act is an emergency economic stimulus package that includes spending and tax breaks to strengthen the
United States economy and fund a nationwide effort to curtail the effect of COVID-19. While the CARES Act provides
extensive tax changes in response to the COVID-19 pandemic, the provisions are not expected to have a significant impact on
the Company’s financial results.

Liquidity and Capital Resources

The following table contains certain key performance indicators we believe depict our liquidity and cash flow position:

(In thousands)

Cash and cash equivalents

Working capital

Current ratio
Net debt position(1)
Days sales outstanding (DSO)

Inventory turnover

March 28,
2020

March 30,
2019

137,311

328,817

2.2
(245,182) $

1.7

169,351

340,362

2.4
(180,769)
67

2.5

(1)Net debt position is the sum of cash and cash equivalents less total debt.

In July 2019, our Board of Directors approved the 2020 Program. We estimate that we will incur aggregate charges between
$60 million and $70 million in connection with the 2020 Program. These charges, the majority of which will result in cash
outlays, including severance and other employee costs, will be incurred as the specific actions required to execute these
initiatives are identified and approved and are expected to be substantially completed by the end of fiscal 2023. During the
fiscal year ended March 28, 2020, we incurred $11.9 million of restructuring and turnaround costs under this program.

Our primary sources of liquidity are cash and cash equivalents, internally generated cash flow from operations, our revolving
credit line and proceeds from employee stock option exercises. We believe these sources are sufficient to fund our cash
requirements over at least the next twelve months. Our expected cash outlays relate primarily to investments, restructuring and
turnaround initiatives, capital expenditures, including investments in our manufacturing facilities and production of NexSys
PCS devices, share repurchases and cash payments under the loan agreement.

As of March 28, 2020, we had $137.3 million in cash and cash equivalents, the majority of which is held in the U.S. or in
countries from which it can be freely repatriated to the U.S. On June 15, 2018, we entered into a five-year credit agreement
which provided for a $350.0 million term loan and a $350.0 million revolving loan. Interest on the term loan and revolving loan
is established using LIBOR plus 1.13% - 1.75%, depending on our leverage ratio. Under the Credit Facilities, we are required to
maintain certain leverage and interest coverage ratios specified in the credit agreement as well as other customary non-financial
affirmative and negative covenants, all of which we were in compliance with as of March 28, 2020. As of March 28, 2020,
$323.8 million was outstanding under the Term Loan and $60.0 million was outstanding on the Revolving Credit Facility, both,
with an effective interest rate of 2.9%. We also had $25.6 million of uncommitted operating lines of credit to fund our global
operations under which there were no outstanding borrowings as of March 28, 2020. During fiscal 2020, we paid $13.1 million
in scheduled principal repayments for the Term Loan. We have scheduled principal repayments of $323.8 million required
through fiscal 2024. We were in compliance with the leverage and interest coverage ratios specified in the credit agreement as
well as all other bank covenants as of March 28, 2020.

We continue to manage the ongoing impacts of the COVID-19 pandemic. While the duration and impacts of the pandemic
remain uncertain, we are focused on preserving cash and have implemented a number of actions to help us protect cash flow
and allocate capital such as reducing non-essential spending, delaying certain compensation-related items, inventory

management, reviewing capital projects and the associated costs, and restricting travel. In April 2020, we borrowed an
additional $150.0 million under the Revolving Credit Facility, increasing our cash on hand to approximately $300 million. Our
leverage ratio remains low subsequent to the incremental $150.0 million of borrowings, and we have an additional $131.7
million of undrawn capacity remaining under the revolving credit line.

Cash Flow Overview

(In thousands)

Net cash provided by (used in):

Operating activities

Investing activities

Financing activities

Fiscal Year

2020

2019

2018

% Increase/
(Decrease)
20 vs. 19

% Increase/
(Decrease)
19 vs. 18

158,217

(57,176)

(131,208)

159,281
(116,148)
(50,628)

220,350
(63,041)
(120,643)

(1,064) $
(58,972)
80,580

(61,069)
53,107
(70,015)

Effect of exchange rate changes on cash and
cash equivalents(1)

(1,873)

(3,323)

3,939

1,450

(7,262)

Net (decrease) increase in cash and cash
(32,040) $
equivalents
(1)The balance sheet is affected by spot exchange rates used to translate local currency amounts into U.S. dollars. In accordance with U.S. GAAP, we have
eliminated the effect of foreign currency throughout our cash flow statement, except for its effect on our cash and cash equivalents.

(10,818) $

40,605

Operating Activities

Net cash provided by operating activities was $158.2 million during fiscal 2020, a decrease of $1.1 million as compared with
fiscal 2019. The decrease in cash provided by operating activities was primarily due to a working capital outflow driven by an
increase in inventory build to support the launch of the NexSys PCS devices and decreases in accounts payable and accrued
payroll. Net income, as adjusted for depreciation, amortization and other non-cash charges and a decrease in accounts
receivable due to the timing of collections partially offset the decrease in operating activities.

Net cash provided by operating activities was $159.3 million during fiscal 2019, a decrease of $61.1 million as compared
with fiscal 2018. The decrease in cash provided by operating activities was primarily due to a working capital outflow driven
largely by an increase accounts receivable due to higher revenue growth and collections timing, an increase in inventory and
prepaid expenses to support the launch of the NexSys PCS device and decreases in accrued payroll due to severance payments
associated with the 2018 Program. Net income, as adjusted for depreciation, amortization and other non-cash charges, partially
offset the decrease in operating activities.

Investing Activities

Net cash used in investing activities was $57.2 million during fiscal 2020, a decrease of $59.0 million as compared with fiscal
2019. The decrease in cash used in investing activities was primarily the result of a decrease in capital expenditures in the
current year period due to the NexSys PCS launch and manufacturing capacity expansion projects in our Plasma business unit
in the prior year period. Proceeds received related to the divestiture of our plasma liquid solutions operations and sale of real
estate and other assets associated with the Braintree corporate headquarters in the current period also contributed to the
decrease in cash used in investing activities. This decrease was partially offset by the acquisition of the technology underlying
the TEG 6s system during fiscal 2020.

Net cash used in investing activities was $116.1 million during fiscal 2019, an increase of $53.1 million as compared with fiscal
2018. The increase in cash used in investing activities was primarily the result of an increase in capital expenditures in fiscal
2019 due to the NexSys PCS launch and manufacturing capacity expansion projects in our Plasma business unit and proceeds
received related to the divestiture of our SEBRA product line in fiscal 2018.

Financing Activities

Net cash used in financing activities was $131.2 million during fiscal 2020, an increase of $80.6 million as compared with
fiscal 2019. The increase was primarily due to lower borrowings, net of payments, on our Credit Facilities and increased share
repurchases in the current period.

Net cash used in financing activities was $50.6 million during fiscal 2019, a decrease of $70.0 million as compared with fiscal
2018. Cash used in financing activities included the repayment of the $253.7 remaining outstanding balance on our 2012 credit
agreement, as amended in fiscal 2014, as well as $160.0 million of share repurchases during fiscal 2019. This use in cash was
partially offset by proceeds resulting from the $350.0 million Term Loan entered into in June 2018.

Contractual Obligations

A summary of our contractual and commercial commitments as of March 28, 2020 is as follows:

(In thousands)

Debt
Interest payments (1)
Operating leases
Purchase commitments(2)
Expected retirement plan benefit payments

Payments Due by Period

Total

Less than
1 year

1-3 years

3-5 years

More than
5 years

383,912

81,919

231,967

70,026

19,158

72,160

113,717

14,033

8,736

9,637

113,717

1,372

6,546

15,920

—

2,837

3,876

11,208

—

2,573

—

35,395

—

7,251

42,646

Total contractual obligations

602,980

215,381

257,270

87,683

(1) Interest payments reflect the contractual interest payments on our outstanding debt and exclude the impact of interest rate swap agreements. Interest
payments are projected using interest rates in effect as of March 28, 2020. Certain of these projected interest payments may differ in the future based on
changes in market interest rates.
(2) Includes amounts we are committed to spend on purchase orders entered in the normal course of business for capital equipment as well as commitments
with contractors for the manufacture of certain disposable products and equipment. The majority of our operating expense spending does not require any
advance commitment.

The above table does not reflect our long-term liabilities associated with unrecognized tax benefits of $3.4 million recorded in
accordance with ASC Topic 740, Income Taxes. We cannot reasonably make a reliable estimate of the period in which we
expect to settle these long-term liabilities due to factors outside of our control, such as tax examinations.

Concentration of Credit Risk

While approximately 54% of our revenue during fiscal 2020 was generated by our ten largest customers, concentrations of
credit risk with respect to trade accounts receivable are generally limited due to our large number of customers and their
diversity across many geographic areas. Certain markets and industries, however, can expose us to concentrations of credit risk.
For example, in the Plasma business unit, sales are concentrated with several large customers. As a result, accounts receivable
extended to any one of these biopharmaceutical customers can be significant at any point in time. In addition, a portion of our
trade accounts receivable outside the U.S. include sales to government-owned or supported healthcare systems in several
countries, which are subject to payment delays and local economic conditions. Payment is dependent upon the financial
stability and creditworthiness of those countries' national economies.

We have not incurred significant losses on receivables. We continually evaluate all 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.

Legal Proceedings

In accordance with U.S. GAAP, we record a liability in our consolidated financial statements for these matters when a loss is
known or considered probable and the amount may be reasonably estimated. Actual settlements may be different than estimated
and could have a material impact on our consolidated earnings, financial position and/or cash flows. For a discussion of our
material legal proceedings refer to Note 16, Commitments & Contingencies, to the Consolidated Financial Statements in Item 8
of this Annual Report on Form 10-K.

Inflation

We do not believe that inflation had a significant impact on our results of operations for the periods presented. Historically, we
believe we have been able to mitigate the effects of inflation by improving our manufacturing and purchasing efficiencies, by
increasing employee productivity and by adjusting the selling prices of products. We continue to monitor inflation pressures
generally and raw materials indices that may affect our procurement and production costs. Increases in the price of petroleum
derivatives could result in corresponding increases in our costs to procure plastic raw materials.

Foreign Exchange

During fiscal 2020, 34.6% of our sales were generated outside the U.S., generally in foreign currencies, yet our reporting
currency is the U.S. Dollar. We also incur certain manufacturing, marketing and selling costs in international markets in local
currency. Our primary foreign currency exposures relate to sales denominated in Euro, Japanese Yen, Chinese Yuan and
Australian Dollars. We also have foreign currency exposure related to manufacturing and other operational costs denominated
in Swiss Francs, Canadian Dollars, Mexican Pesos and Malaysian Ringgit. The Yen, Euro, Yuan and Australian Dollar sales
exposure is partially mitigated by costs and expenses for foreign operations and sourcing products denominated in foreign
currencies.

Since our foreign currency denominated Yen, Euro, Yuan and Australian Dollar sales exceed the foreign currency denominated
costs, whenever the U.S. Dollar strengthens relative to the Yen, Euro, Yuan or Australian Dollar, there is an adverse effect on
our results of operations and, conversely, whenever the U.S. Dollar weakens relative to the Yen, Euro, Yuan or Australian
Dollar, there is a positive effect on our results of operations. For Swiss Francs, Canadian Dollars Mexican Pesos and Malaysian
Ringgit, our primary cash flows relate to product costs or costs and expenses of local operations. Whenever the U.S. Dollar
strengthens relative to these foreign currencies, there is a positive effect on our results of operations. Conversely, whenever the
U.S. Dollar weakens relative to these currencies, there is an adverse effect on our results of operations.

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 forward foreign currency contracts to hedge the anticipated
cash flows from transactions denominated in foreign currencies, primarily Japanese Yen and Euro, and to a lesser extent Swiss
Francs, Australian Dollars, Canadian Dollars and Mexican Pesos. 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. These contracts are designated as cash flow hedges. The final impact of
currency fluctuations on the results of operations is dependent on the local currency amounts hedged and the actual local
currency results.

Recent Accounting Pronouncements

Standards to be Implemented

In June 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") Update
No. 2016-13, Financial Instruments – Credit Losses (Topic 326). ASC Update No. 2016-13 is intended to replace the current
incurred loss impairment methodology for financial assets measured at amortized cost with a methodology that reflects
expected credit losses and requires consideration of a broader range of reasonable and supportable information, including
forecasted information, to develop credit loss estimates. ASC Update No. 2016-13 is effective for annual periods beginning
after December 15, 2019, and is applicable to us in fiscal 2021. We are in the process of determining the effect that the adoption
will have on our financial position and results of operations.

In August 2018, the FASB issued ASC Update No. 2018-15, Intangibles, Goodwill and Other - Internal-Use Software (Subtopic
350-40). The new guidance will align the accounting implementation costs incurred in a cloud computing arrangement that is a
service contract with the accounting for internal-use software licenses. The guidance is effective for annual periods beginning
after December 15, 2019 and is applicable to us in fiscal 2021. Early adoption is permitted for all entities, including interim
periods. The impact of adopting ASC Update No. 2018-15 is not expected to have a material effect on our consolidated
financial statements.

In December 2019, the FASB issued ASC Update No. 2019-12, Income Taxes (Topic 740). The new guidance will improve
consistent application of and simplify the accounting for income taxes by removing certain exceptions to the general principals
in Topic 740. ASC Update No. 2019-12 is effective for annual periods beginning after December 15, 2020, and is applicable to

us in fiscal 2022. We are in the process of determining the effect that the adoption will have on our financial position and results
of operations.

Critical Accounting Policies

Our significant accounting policies are summarized in Note 2, Summary of Significant Accounting Policies, to the Consolidated
Financial Statements in Item 8 of this Annual Report on Form 10-K. While all of these significant accounting policies impact
our financial condition and results of operations, we view certain of these policies as critical. Policies determined to be critical
are those policies that have the most significant impact on our financial statements and require management to use a greater
degree of judgment and/or estimates. Actual results may differ from those estimates.

The accounting policies identified as critical are as follows:

Revenue Recognition

Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration related to
rebates, product returns and volume discounts. These reserves, which are based on estimates of the amounts earned or to be
claimed on the related sales, are recorded as a reduction of revenue and a current liability. Our estimates take into consideration
historical experience, current contractual and statutory requirements, specific known market events and trends, industry data,
and forecasted customer buying and payment patterns. Overall, these reserves reflect our best estimates of the amount of
consideration to which we are entitled based on the terms of the contract. The amount of variable consideration included in the
net sales price is limited to the amount that is probable not to result in a significant reversal in the amount of the cumulative
revenue recognized in a future period. Revenue recognized in the current period related to performance obligations satisfied in
prior periods was not material. If we are unable to estimate the expected rebates reasonably, we record a liability for the
maximum potential rebate or discount that could be earned. In circumstances where we provide upfront rebate payments to
customers, we capitalize the rebate payments and amortize the resulting asset as a reduction of revenue using a systematic
method over the life of the contract. See Note 2, Summary of Significant Accounting Policies and Note 8, Revenue, to the
Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K for further information.

Goodwill and Intangible Assets

Although we use consistent methodologies in developing the assumptions and estimates underlying the fair value calculations
used in our impairment tests, these estimates are uncertain by nature and can vary from actual results. The use of alternative
valuation assumptions, including estimated revenue projections, growth rates, cash flows and discount rates could result in different
fair value estimates.

Future events that could have a negative impact on the levels of excess fair value over carrying value of our reporting units include,
but are not limited to, the following:

• Decreases in estimated market sizes or market growth rates due to greater-than-expected declines in procedural volumes,

pricing pressures, product actions and/or competitive technology developments,

• Declines in our market share and penetration assumptions due to increased competition, an inability to develop or launch
new and next-generation products and technology features in line with our commercialization strategies and market and/
or regulatory conditions that may cause significant launch delays or product recalls,

• Decreases in our forecasted profitability due to an inability to implement successfully and achieve timely and sustainable

cost improvement measures consistent with our expectations,

• Changes in our reporting units or in the structure of our business as a result of future reorganizations, acquisitions or

divestitures of assets or businesses and

•

Increases in our market-participant risk-adjusted weighted average cost of capital and increases in our market-participant
tax rate and/or changes in tax laws or macroeconomic conditions.

Negative changes in one or more of these factors, among others, could result in future impairment charges.

We review intangible assets subject to amortization for impairment 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. See Note 2, Summary of Significant Accounting Policies and Note 11, Goodwill & Intangible
Assets, to the Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K for additional information.

Inventory Provisions

We base our provisions for excess, expired and obsolete inventory primarily on our estimates of forecasted net sales. A
significant change in the timing or level of demand for our products as compared with forecasted amounts may result in
recording additional provisions for excess, expired and obsolete inventory in the future. Additionally, uncertain timing of next-
generation product approvals, variability in product launch strategies, product recalls and variation in product utilization all
affect our estimates related to excess, expired and obsolete inventory.

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 that 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. All available evidence, both positive and negative, has been considered to determine whether, based on the
weight of that evidence, a valuation allowance is needed against the deferred tax assets. Refer to Note 6, Income Taxes, to the
Consolidated Financial Statements in Item 8 of this Annual Report on Form 10-K for further information and discussion of our
income tax provision and balances.

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 that 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 as events occur that result in changes in judgment.

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, employee related litigation, 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 loss is probable and a range of loss 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.

ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

The Company’s exposures relative to market risk are due to foreign exchange risk and interest rate risk.

Foreign Exchange Risk

See the section above entitled Foreign Exchange for a discussion of how foreign currency affects our business. It is our policy
to minimize, for a period of time, the unforeseen impact on our financial results of fluctuations in foreign exchange rates by
using derivative financial instruments known as forward contracts to hedge anticipated cash flows from forecasted foreign
currency denominated sales and costs. We do not use the financial instruments for speculative or trading activities.

We estimate the change in the fair value of all forward contracts assuming both a 10% strengthening and weakening of the
U.S. dollar relative to all other major currencies. In the event of a 10% strengthening of the U.S. dollar, the change in fair value
of all forward contracts would result in a $13.8 million increase in the fair value of the forward contracts, whereas a 10%
weakening of the U.S. dollar would result in a $15.6 million decrease in the fair value of the forward contracts.

Interest Rate Risk

Our exposure to changes in interest rates is associated with borrowings under our Credit Facilities, all of which is variable rate
debt. Total outstanding debt under our Credit Facilities for the fiscal year ended March 28, 2020 was $383.8 million with an
interest rate of 2.9% based on prevailing LIBOR rates. An increase of 100 basis points in LIBOR rates would result in
additional annual interest expense of $1.0 million. On August 21, 2018, we entered into two interest rate swap agreements to
effectively convert $241.9 million of borrowings under our Credit Facilities from a variable rate to a fixed rate. These interest
rate swaps are intended to mitigate the exposure to fluctuations in interest rates and qualify for hedge accounting treatment as
cash flow hedges.

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Haemonetics Corporation

Opinion on the Financial Statements

We have audited the accompanying consolidated balance sheets of Haemonetics Corporation and subsidiaries (the Company) as
of March 28, 2020 and March 30, 2019, the related consolidated statements of income, comprehensive income, stockholders' equity
and cash flows for each of the three years in the period ended March 28, 2020, and the related notes and financial statement schedule
listed in the Index at Item 15(a) (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated
financial statements present fairly, in all material respects, the financial position of the Company at March 28, 2020 and March 30,
2019, and the results of its operations and its cash flows for each of the three years in the period ended March 28, 2020, in conformity
with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the Company's internal control over financial reporting as of March 28, 2020, based on criteria established in Internal
Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013
framework) and our report dated May 20, 2020 expressed an unqualified opinion thereon.

Adoption of New Accounting Standards

As discussed in Note 2 to the consolidated financial statements, the Company changed its method of accounting for leases
effective March 31, 2019 due to adoption of Accounting Standards Update (ASU) No. 2016-02, Leases (Topic 842), and the
related amendments. As discussed in Note 2 to the consolidated financial statements, the Company changed its method of
accounting for revenue effective April 1, 2018 due to the adoption of ASU No. 2014-09, Revenue from Contracts with
Customers (Topic 606), and the related amendments.

Basis for Opinion

These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the
Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required
to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and
regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error
or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether
due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis,
evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting
principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial
statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matters

The critical audit matters communicated below are matters arising from the current period audit of the financial statements that
were communicated or required to be communicated to the audit committee and that: (1) relate to accounts or disclosures that are
material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matters below, providing separate opinions on the critical audit matters
or on the accounts or disclosures to which they relate.

Description of the
Matter

Valuation of goodwill
As discussed in Note 11 to the consolidated financial statements, the Company had approximately $211
million of goodwill allocated among its three reporting units as of March 28, 2020. The Company performs
its annual quantitative impairment analysis as of the first day of the fourth quarter, and more frequently
if the Company believes indicators of impairment exist, utilizing a discounted cash flow income approach
in order to value reporting units for the test.

Auditing the annual goodwill impairment test was especially complex and judgmental due to the
significant estimation required in determining the fair values of the reporting units. In particular, the fair
value estimates involve judgmental assumptions including discount rates, terminal values, and the amount
and timing of expected future cash flows, which are all affected by expectations about future market or
economic conditions and reporting unit specific risk factors.

How We Addressed
the Matter in Our
Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls
over the Company’s goodwill impairment review process. For example, we tested controls over
management's review of the significant inputs and assumptions used in determining the reporting unit
fair values.

To test the estimated fair value of the Company’s reporting units, we performed audit procedures that
included, among others, assessing fair value methodologies, testing the significant assumptions discussed
above and the completeness and accuracy of the underlying data used by the Company in its analysis.
We compared the significant assumptions used by management to current industry trends, historical
financial results of the reporting unit, and other relevant factors. We considered the historical accuracy
of management’s estimates and performed sensitivity analyses of significant assumptions to evaluate the
changes in the fair value of the reporting unit that would result from changes in the assumptions. In
addition, we involved our valuation professionals to assist in our evaluation of the significant assumptions
used to develop the fair value estimates. We also evaluated the reconciliation of the estimated aggregate
fair value of the reporting units to the market capitalization of the Company.

Description of the
Matter

Income taxes - valuation allowance
As described in Note 6 to the consolidated financial statements, the Company had gross deferred tax
assets on temporary differences of approximately $55 million offset by an approximately $14 million
valuation allowance as of March 28, 2020. Deferred tax assets are reduced by a valuation allowance if,
based upon the weight of all available evidence, both positive and negative, in management’s judgment
it is more likely than not that some portion, or all, of the deferred tax assets will not be realized.

Auditing management’s analysis of the realizability of its deferred tax assets was especially challenging
and complex in relation to estimating projections of future taxable income that involved significant
judgment and assumptions that may be affected by future market or economic conditions.

How We Addressed
the Matter in Our
Audit

We obtained an understanding, evaluated the design, and tested the operating effectiveness of controls
over the Company’s analysis of the realizability of deferred tax assets. This included controls over
management’s projections of future taxable income.

To test the Company’s analysis of the realizability of deferred tax assets and the resultant valuation
allowance, we performed audit procedures with the assistance of tax professionals that included, among
others, evaluating the analyses used by management to consider the four sources of taxable income. We
evaluated the assumptions used by the Company to develop projections of future taxable income by
jurisdiction and tested the completeness and accuracy of the underlying data used in its projections. For
example, we compared the projections of future taxable income with the actual results of prior periods,
as well as management’s consideration of current industry and economic trends. We also considered the
historical accuracy of management’s projections and compared the projections of future taxable income
with other forecasted financial information prepared by the Company.

/s/ Ernst & Young LLP
We have served as the Company’s auditor since 2002.

Boston, Massachusetts
May 20, 2020

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)

Net revenues

Cost of goods sold
Gross profit

Operating expenses:

Research and development

Selling, general and administrative

Impairment of assets
Total operating expenses

Operating income

Gain on divestiture

Interest and other expense, net
Income before provision for income taxes

Provision for income taxes
Net income

Net income per share - basic

Net income per share - diluted

Weighted average shares outstanding

Basic

Diluted

March 28,
2020

Year Ended

March 30,
2019

March 31,
2018

988,479

967,579

503,966

484,513

30,883

299,680

50,599

381,162
103,351

—
(16,199)
87,152

10,626
76,526

1.51

1.48

550,043

417,536

35,714

298,277

—

333,991
83,545

—
(9,912)
73,633

18,614
55,019

1.07

1.04

903,923

492,015

411,908

39,228

316,523

—

355,751
56,157

8,000
(4,525)
59,632

14,060
45,572

0.86

0.85

50,692

51,815

51,533

52,942

52,755

53,501

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

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)

March 28,
2020

Year Ended

March 30,
2019

March 31,
2018

Net income

76,526

55,019

45,572

Other comprehensive income:

Impact of defined benefit plans, net of tax

Foreign currency translation adjustment, net of tax

Unrealized loss on cash flow hedges, net of tax

Reclassifications into earnings of cash flow hedge losses (gains), net of tax

Other comprehensive (loss) income
Comprehensive income

318
(5,587)
(10,111)
625
(14,755)
61,771

(204)
(9,108)
(1,877)
(200)
(11,389)
43,630

1,949

13,430
(2,796)
1,299

13,882
59,454

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

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)

ASSETS

Current assets:

Cash and cash equivalents

Accounts receivable, less allowance of $3,824 at March 28, 2020 and $3,937 at March 30, 2019

Inventories, net

Prepaid expenses and other current assets

Total current assets

Property, plant and equipment, net

Intangible assets, less accumulated amortization of $296,942 at March 28, 2020 and $263,479 at
March 30, 2019

Goodwill

Deferred tax asset

Other long-term assets

Total assets

LIABILITIES AND STOCKHOLDERS’ EQUITY

Current liabilities:

Notes payable and current maturities of long-term debt

Accounts payable

Accrued payroll and related costs

Other current liabilities

Total current liabilities

Long-term debt, net of current maturities

Deferred tax liability

Other long-term liabilities

Stockholders’ equity:

Common stock, $0.01 par value; Authorized — 150,000,000 shares; Issued and outstanding —
50,322,930 shares at March 28, 2020 and 51,019,918 shares at March 30, 2019

Additional paid-in capital

Retained earnings

Accumulated other comprehensive loss

Total stockholders’ equity

Total liabilities and stockholders’ equity

March 28,
2020

March 30,
2019

137,311

165,207

270,276

30,845

603,639

253,399

133,106

210,652

3,930

62,384

169,351

185,027

194,337

27,406

576,121

343,979

127,693

210,819

4,359

11,796

1,267,110

1,274,767

76,980

50,730

49,471

97,641

274,822

305,513

10,562

89,104

503

553,229

78,512

(45,135)

587,109

27,666

63,361

53,200

91,532

235,759

322,454

19,906

28,780

510

536,320

161,418

(30,380)

667,868

1,267,110

1,274,767

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

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(In thousands, except share data)

Balance, April 1, 2017

Employee stock purchase plan

Exercise of stock options

Shares repurchased

Issuance of restricted stock, net of cancellations

Share-based compensation expense

Net income

Other comprehensive income

Balance, March 31, 2018

Employee stock purchase plan

Exercise of stock options

Shares repurchased

Issuance of restricted stock, net of cancellations

Share-based compensation expense

Cumulative effect of change in accounting standards

Net income

Other comprehensive loss

Balance, March 30, 2019

Employee stock purchase plan

Exercise of stock options

Shares repurchased

Issuance of restricted stock, net of cancellations

Share-based compensation expense

Net income

Other comprehensive loss

Balance, March 28, 2020

Common Stock

Par Value

Additional
Paid-in Capital

Retained
Earnings

Accumulated
Other
Comprehensive
Income/(Loss)

Total
Stockholders’
Equity

52,255

523

482,044

289,916

(32,873) $

739,610

102

1,014

(1,162)

134

—

(12)

—

3,245

37,083

(31,442)

—

13,025

—

(68,546)

—

45,572

—

13,882

3,246

37,094

(100,000)

—

13,025

45,572

13,882

52,343

523

503,955

266,942

(18,991) $

752,429

287

(1,841)

164

—

(18)

—

3,253

10,188

1,737

(1)

17,188

—

(161,719)

—

1,176

55,019

—

3,254

10,191

(160,000)

—

17,188

1,176

55,019

(11,389)

51,020

510

536,320

161,418

(30,380) $

667,868

232

3,368

8,645

—

(1,483)

(15)

(15,553)

(159,432)

509

—

(5)

20,454

—

76,526

—

3,369

8,647

(175,000)

—

20,454

76,526

(14,755)

50,323

503

553,229

78,512

(45,135) $

587,109

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

HAEMONETICS CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)

Cash Flows from Operating Activities:

Net income

Adjustments to reconcile net income to net cash provided by operating
activities:
Non-cash items:

Depreciation and amortization
Impairment of assets
Share-based compensation expense
Gain on divestiture
Deferred tax (benefit) provision
Unrealized (gain) loss from hedging activities
Provision for losses on accounts receivable
Other non-cash operating activities

Change in operating assets and liabilities:

Change in accounts receivable
Change in inventories
Change in prepaid income taxes
Change in other assets and other liabilities
Change in accounts payable and accrued expenses

Net cash provided by operating activities

Cash Flows from Investing Activities:

Capital expenditures
Proceeds from divestiture
Proceeds from sale of property, plant and equipment
Acquisition

Net cash used in investing activities
Cash Flows from Financing Activities:

Term loan borrowings
Repayment of term loan borrowings
Net increase in short-term loans
Proceeds from employee stock purchase plan
Proceeds from exercise of stock options
Share repurchases
Other financing activities

Net cash used in financing activities

Effect of exchange rates on cash and cash equivalents
Net Change in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of Year
Cash and Cash Equivalents at End of Year
Supplemental Disclosures of Cash Flow Information:

Interest paid
Income taxes paid

Non-Cash Investing and Financing Activities:

Transfers from inventory to fixed assets for placement of Haemonetics equipment
Tenant improvement allowances excluded from capital expenditures

March 28,
2020

Year Ended

March 30,
2019

March 31,
2018

76,526

55,019

45,572

110,289
50,599
20,454
(8,083)
(6,958)
813
373
(1,234)

18,863
(84,721)
1,480
(2,876)
(17,308)
158,217

(48,758)
9,808
16,774
(35,000)
(57,176)

—
(13,125)
45,000
3,369
8,647
(175,000)
(99)
(131,208)
(1,873)
(32,040)
169,351
137,311

12,545
11,507

14,479
5,660

$
$

109,418
21,170
17,188
—
13,351
(24)
2,111
3,798

(38,064)
(39,322)
(3,594)
494
17,736
159,281

(118,961)
—
2,813
—
(116,148)

347,780
(266,853)
15,000
3,254
10,191
(160,000)
—
(50,628)
(3,323)
(10,818)
180,169
169,351

13,116
8,205

$
$

16,345

$
— $

89,247
2,673
13,025
(8,000)
(5,828)
(649)
208
4,123

5,087
14,385
1,436
17,670
41,401
220,350

(74,799)
9,000
2,758
—
(63,041)

—
(61,654)
671
3,246
37,094
(100,000)
—
(120,643)
3,939
40,605
139,564
180,169

7,663
9,083

8,963
—

$
$

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

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. DESCRIPTION OF THE BUSINESS AND BASIS OF PRESENTATION

Haemonetics Corporation ("Haemonetics" or the "Company") is a global healthcare company dedicated to providing a suite of
innovative hematology products and solutions to customers to help improve patient care and reduce the cost of healthcare. Its
technology addresses important medical markets including blood and plasma component collection, the surgical suite, and
hospital transfusion services.

Haemonetics develops and markets a wide range of devices and solutions to serve its customers. The Plasma business unit
provides plasma collection devices and disposables and plasma donor management software that enable the collection of
plasma used by biopharmaceutical companies to make life saving pharmaceuticals. The Blood Center business unit offers blood
collection and processing devices and disposables for red cells, platelets and whole blood as well as related donor management
software that make blood donations more efficient and track life giving blood components. The Hospital Business unit, which is
comprised of Hemostasis Management, Cell Salvage and Transfusion Management products, includes devices and
methodologies for measuring the coagulation of blood that enable healthcare providers to better manage their patients’ bleeding
risk, as well as surgical blood salvage systems, specialized blood cell processing systems and disposables and blood transfusion
management software that facilitate blood transfusions and cell processing.

The accompanying consolidated financial statements present separately the Company's consolidated financial position, results
of operations, cash flows and changes in shareholders’ equity. The consolidated financial statements have been prepared in
accordance with U.S. generally accepted accounting principles (“U.S. GAAP”). All amounts presented, except per share
amounts, are stated in thousands of U.S. dollars, unless otherwise indicated. The Company has assessed its ability to continue
as a going concern. As of March 28, 2020, Haemonetics has concluded that substantial doubt about its ability to continue as a
going concern does not exist.

The Company considers events or transactions that occur after the balance sheet date but prior to the issuance of the financial
statements to provide additional evidence relative to certain estimates or to identify matters that require additional disclosure.
Refer to Note 13, Notes Payable and Long-Term Debt, for information pertaining to a $150.0 million draw down on the
Company's revolving credit facility that was made after the balance sheet date but prior to the issuance of the financial
statements. Additionally, on April 1, 2020, the Company acquired all outstanding shares of enicor GmbH. Refer to Note 4,
Acquisitions, for further information.

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Fiscal Year

Haemonetics' fiscal year ends on the Saturday closest to the last day of March. Fiscal 2020, 2019 and 2018 include 52 weeks
with each quarter having 13 weeks.

Principles of Consolidation

The accompanying consolidated financial statements include all accounts including those of its subsidiaries. All significant
intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. GAAP requires the Company to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 its estimates and assumptions. The Company considers estimates to be critical if
they are required to make assumptions about material matters that are uncertain at the time of estimation or if materially
different estimates could have been made or it is reasonably likely that the accounting estimate will change from period to
period. The following are areas considered to be critical and require management’s judgment: revenue recognition, inventory
provisions, intangible asset and goodwill valuation, legal and other judgmental accruals and income taxes.

Reclassifications

Certain immaterial reclassifications have been made to prior years' amounts to conform to the current year's presentation.

Contingencies

The Company 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, employee related litigation, 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 loss is probable and a range of loss is established but a best estimate cannot be made,
the Company records the minimum loss contingency amount, which could be zero. 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. As information becomes known, an 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, the best estimate is changed to a lower amount.

Revenue Recognition

The Company's revenue recognition policy is to recognize revenues from product sales, software and services in accordance
with the Financial Accounting Standards Board ("FASB") issued Accounting Standards Codification ("ASC") Update No.
2014-19, Revenue from Contracts with Customers (Topic 606). Revenue is recognized when obligations under the terms of a
contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The
Company considers revenue to be earned when all of the following criteria are met: it has a contract with a customer that
creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the
consideration the Company expects to receive for transferring goods or providing services, is determinable and it has
transferred control of the promised items to the customer. A promise in a contract to transfer a distinct good or service to the
customer is identified as a performance obligation. A contract’s transaction price is allocated to each performance obligation
and recognized as revenue when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple
performance obligations. For contracts with multiple performance obligations, the Company allocates the contract’s transaction
price to each performance obligation based on the estimated standalone selling prices of the good or service in the contract. For
goods or services for which observable standalone selling prices are not available, the Company uses an expected cost plus a
margin approach to estimate the standalone selling price of each performance obligation.

Product Revenues

The majority of the Company’s performance obligations related to product sales are satisfied at a point in time. Product revenue
consists of the sale of its disposable blood component collection and processing sets and the related equipment. The Company’s
performance obligation related to product sales is satisfied upon shipment or delivery to the customer based on the specified
terms set forth in the customer contract. Shipping and handling activities performed after a customer obtains control of the
good are treated as fulfillment activities and are not considered to be a separate performance obligation. Revenue is recognized
over time for maintenance plans provided to customers that provide services beyond the Company’s standard warranty period.
Payment terms between customers related to product sales vary by the type of customer, country of sale, and the products or
services offered and could result in an unbilled receivable or deferred revenue balance depending on whether the performance
obligation has been satisfied (or partially satisfied).

For product sales to distributors, the Company recognizes revenue for both equipment and disposables upon shipment to
distributors, which is when its performance obligations are complete. The Company's standard contracts with its distributors
state that title to the equipment passes to the distributors at point of shipment to a distributor’s location. The distributors are

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

responsible for shipment to the end customer along with any installation, training and acceptance of the equipment by the end
customer. Payments from distributors are not contingent upon resale of the product.

The Company also places equipment at customer sites. While the Company retains ownership of this equipment, the customer
has the right to use it for a period of time provided they meet certain agreed to conditions. The Company recovers the cost of
providing the equipment from the sale of its disposables.

Software and Other Revenues

To a lesser extent, the Company enters into other types of contracts including certain software licensing arrangements to
provide software solutions to support its plasma, blood collection and hospital customers. A portion of its software sales are
perpetual licenses typically accompanied by significant implementation services related to software customization as well as
other professional and technical services. The Company generally recognizes revenue from the sale of perpetual licenses and
related customization services over time (the Company is creating or enhancing an asset that the customer controls) using an
input method which requires it to make estimates of the extent of progress toward completion of the contract. When the
Company provides other services, including in some instances hosting, technical support and maintenance, it recognizes these
fees and charges over time (the customer simultaneously receives and consumes benefits), as performance obligations for these
services are satisfied during the contract period. Certain of the Company's software licensing arrangements are term-based
licenses that include a per-collection or a usage-based fee related to the use of the license and the related technical support and
hosting services. For these usage-based arrangements, the Company applies the revenue recognition exception resulting in
revenue recognition occurring upon the later of actual usage or satisfaction of the related performance obligations. The payment
terms for software licensing arrangements vary by customer pursuant to the terms set forth in the customer contract and result
in an unbilled receivable or deferred revenue balance depending on whether the performance obligation has been satisfied (or
partially satisfied).

Significant Judgments

Revenues from product sales are recorded at the net sales price, which includes estimates of variable consideration related to
rebates, product returns and volume discounts. These reserves, which are based on estimates of the amounts earned or to be
claimed on the related sales, are recorded as a reduction of revenue and a current liability. The Company's estimates take into
consideration historical experience, current contractual and statutory requirements, specific known market events and trends,
industry data, and forecasted customer buying and payment patterns. Overall, these reserves reflect the Company’s best
estimates of the amount of consideration to which it is entitled based on the terms of the contract. The amount of variable
consideration included in the net sales price is limited to the amount that is probable not to result in a significant reversal in the
amount of the cumulative revenue recognized in a future period. Revenue recognized in the current period related to
performance obligations satisfied in prior periods was not material. If the Company is unable to estimate the expected rebates
reasonably, it records a liability for the maximum potential rebate or discount that could be earned. In circumstances where the
Company provides upfront rebate payments to customers, it capitalizes the rebate payments and amortizes the resulting asset as
a reduction of revenue using a systematic method over the life of the contract.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables
(contract assets), and customer advances and deposits (contract liabilities) on the consolidated balance sheets. The difference in
timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in contract assets
and contract liabilities.

Practical Expedients

The Company elected not to disclose the value of transaction price allocated to unsatisfied performance obligations for
contracts with an original expected length of one year or less. When applicable, the Company has also elected to use the
practical expedient to not adjust the promised amount of consideration for the effects of a significant financing component if it
is expected, at contract inception, that the period between when the Company transfers a promised good or service to a
customer and when the customer pays for that good or service, will be one year or less.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 intercompany transactions, are charged directly to earnings and included in other expense, 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 loss 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, 2020, cash and cash equivalents consisted of investments in United States
Government Agency and institutional money market funds.

Allowance for Doubtful Accounts

The Company establishes a specific allowance for customers when it is probable that they will not be able to meet their
financial obligations. Customer accounts are reviewed individually on a regular basis and reserves are established as deemed
appropriate. The Company also maintains a general reserve using a percentage that is established based upon the age of its
receivables and its collection history. The Company establishes allowances for balances not yet due and past due accounts
based on past experience.

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. The Company has based its provisions for excess, expired and obsolete inventory
primarily on its estimates of forecasted net sales. Significant changes in the timing or level of demand for the Company's
products result in recording additional provisions for excess, expired and obsolete inventory. Additionally, uncertain timing of
next-generation product approvals, variability in product launch strategies, non-cancelable purchase commitments, product
recalls and variation in product utilization all affect the Company's estimates related to excess, expired and obsolete inventory.

Property, Plant and Equipment

Property, plant and equipment is recorded at historical cost. The Company provides 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
Building

Building improvements

Plant equipment and machinery

Office equipment and information technology

Haemonetics equipment

Estimated
Useful Lives

30-40 Years

5-20 Years

3-15 Years

3-10 Years

3-7 Years

The Company evaluates 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.

The Company's installed base of devices includes devices owned by the Company and devices sold to the customer. The asset
on its 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 the
Company has established, which among other things, generally include one or more of the following:

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

•
•
•

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, the Company reviews
Haemonetics equipment and the related useful lives of such equipment 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, the Company estimates the future amount and timing of demand for disposables used
with these devices, from which it generate revenues. The Company also considers product life cycle in its evaluation of useful
life and recoverability. 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 the Company's devices and its 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 consolidated
statements of income.

Leases

In February 2016, the FASB issued ASC Update No. 2016-02, Leases (Topic 842). ASC Update No. 2016-02 is intended to
increase the transparency and comparability among organizations by recognizing lease asset and lease liabilities on the balance
sheet, including those previously classified as operating leases under current U.S. GAAP and disclosing key information about
leasing arrangements. In July 2018, the FASB issued an update to the leasing guidance to allow an additional transition option
which would allow companies to adopt the standard as of the beginning of the year of adoption as opposed to the earliest
comparative period presented. The Company adopted the new standard on March 31, 2019.

Upon transition, the Company applied the package of practical expedients permitted under ASC Update No. 2016-02 transition
guidance to its entire lease portfolio at March 31, 2019. As a result, the Company is not required to reassess (i) whether any
expired or existing contracts are or contain leases, (ii) the classification of any expired or existing leases, and (iii) initial direct
costs for any existing leases. The Company also elected to account for each lease component and the associated non-lease
components as a single lease component and also elected not to recognize a lease liability or right-of-use asset for any lease
that, at commencement date, has a lease term of 12 months or less and does not include an option to purchase the underlying
asset that the Company is reasonably certain to exercise.

As a result of adopting ASC Update No. 2016-02, the Company recognized additional right-of-use assets of $22.9 million and
corresponding liabilities of $22.7 million for its existing lease portfolio on the condensed consolidated balance sheets, with no
material impact to the condensed consolidated statements of operations or condensed consolidated statements of cash flows.
Additionally, the Company implemented a new lease administration and lease accounting system and has updated controls and
procedures for maintaining and accounting for its lease portfolio under the new standard.

Goodwill and Intangible Assets

Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets
acquired. Goodwill is not amortized. Instead goodwill is reviewed for impairment at least annually, or on an interim basis
between annual tests when events or circumstances indicate that it is more likely than not that the fair value of a reporting unit
is less than its carrying value. The Company performs its annual impairment test on the first day of the fiscal fourth quarter for
each of its reporting units.

Under ASC Update No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
entities perform their goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An
impairment charge is recognized for the amount by which the carrying value exceeds the reporting unit's fair value. A reporting
unit is defined as an operating segment or one level below an operating segment, referred to as a component. The Company
determines its reporting units 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

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

reviews the operating results of that component. The Company aggregates components within an operating segment that have
similar economic characteristics. Haemonetics' reporting units for purposes of assessing goodwill impairment were historically
based primarily on geography. Effective as of March 31, 2019, the Company completed the transition of its operating structure
to three global business units and accordingly has reorganized its reporting structure to align with its three global business units
and the information that will be regularly reviewed by the Company's chief operating decision maker. Following the
reorganization, the Company's reportable segments are as follows: Plasma, Blood Center, and Hospital.

When allocating goodwill from business combinations to its reporting units, the Company assigns goodwill to the reporting
units that it expects to benefit from the respective business combination at the time of acquisition. In addition, for purposes of
performing its goodwill impairment tests, assets and liabilities, including corporate assets, which relate to a reporting unit’s
operations and would be considered in determining its fair value, are allocated to the individual reporting units. The Company
allocates assets and liabilities not directly related to a specific reporting unit, but from which the reporting unit benefits, based
primarily on the respective revenue contribution of each reporting unit.

The Company uses the income approach, specifically the discounted cash flow method, to derive the fair value of each of its
reporting units in preparing its goodwill impairment assessments. This approach calculates fair value by estimating the after-tax
cash flows attributable to a reporting unit and then discounting these after-tax cash flows to a present value using a risk-
adjusted discount rate. The Company selected this method as being the most meaningful in preparing its goodwill assessments
because the use of the income approach typically generates a more precise measurement of fair value than the market
approach. In applying the income approach to its accounting for goodwill, the Company makes assumptions about the amount
and timing of future expected cash flows, terminal value growth rates and appropriate discount rates. The amount and timing of
future cash flows within the Company's discounted cash flow analysis is based on its most recent operational budgets, long
range strategic plans and other estimates. The terminal value growth rate is used to calculate the value of cash flows beyond the
last projected period in the Company's discounted cash flow analysis and reflects the Company's best estimates for stable,
perpetual growth of its reporting units. The Company uses estimates of market-participant risk adjusted weighted average cost
of capital as a basis for determining the discount rates to apply to its reporting units’ future expected cash flows. The Company
corroborated the valuations that arose from the discounted cash flow approach by performing both a market multiple valuation
and by reconciling the aggregate fair value of its reporting units to its market capitalization at the time of the test.

During the fourth quarter of fiscal 2020, 2019 and 2018, the Company performed its annual goodwill impairment test under the
guidelines of ASC Update No. 2017-04. The results of the goodwill impairment test performed indicated that the estimated fair
value of all of its reporting units exceeded their respective carrying values. There were no reporting units at risk of impairment
as of the fiscal 2020, 2019 and 2018 annual test date.

The Company reviews intangible assets subject to amortization for impairment 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 its products or the size of the market for its products.

When an impairment indicator exists, the Company tests the intangible asset for recoverability. For purposes of the
recoverability test, the Company groups its 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), the Company will write the carrying value down to the fair value in
the period identified.

The Company generally calculates the fair value of its intangible assets as the present value of estimated future cash flows it
expects to generate from the asset using a risk-adjusted discount rate. In determining its estimated future cash flows associated
with its intangible assets, the Company uses estimates and assumptions about future revenue contributions, cost structures and
remaining useful lives of the asset (asset group).

If the Company determines the estimate of an intangible asset's remaining useful life should be reduced based on its expected
use of the asset, the remaining carrying amount of the asset is amortized prospectively over the revised estimated useful life.
During fiscal 2020, 2019 and 2018 the Company did not incur any intangible asset impairments.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Accounting for the Costs of Computer Software to be Sold, Leased, or Otherwise Marketed

ASC Topic 985-20, Software - Costs of Software to be Sold, Leased or Marketed, 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 5 to 10 years. Technological feasibility is established when it has a detailed design of the software and when research
and development activities on the underlying device, if applicable, are completed. The Company capitalizes costs associated
with both software that it sells as a separate product and software that is embedded in a device.

The Company reviews the net realizable value of capitalized assets periodically to assess the recoverability of amounts
capitalized. There were no impairment charges recorded during fiscal 2020, 2019 and 2018. 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 Current Liabilities

Other current 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)

VAT liabilities

Forward contracts and interest rate swaps

Deferred revenue

Accrued taxes

Lease liability

All other
Total

Other Long-Term Liabilities

March 28,
2020

March 30,
2019

3,279

8,870

28,843

13,292

7,306

36,051
97,641

3,995

5,348

27,279

8,451

—

46,459
91,532

Other long-term liabilities represent items that are not payable or expected to settle within the next twelve months. The items
included in the fiscal year end balances were:

March 28,
2020

March 30,
2019

13,083

9,475

3,437

5,374

52,014

5,721
89,104

13,766

—

2,895

6,305

—

5,814
28,780

(In thousands)

Unfunded pension liability

Interest rate swaps

Unrecognized tax benefit

Transition tax liability

Lease liability

All other
Total

Research and Development Expenses

All research and development costs are expensed as incurred.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 $4.3 million, $4.5 million and $3.1 million in fiscal 2020, 2019
and 2018, respectively.

Shipping and Handling Costs

Shipping and handling costs are included in selling, general and administrative expenses.

Income Taxes

The income tax provision is calculated for all jurisdictions in which the Company operates. The income tax provision process
involves calculating current taxes due and assessing temporary differences arising from items that 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 the Company's deferred tax assets that are
not more-likely-than-not realizable. All available evidence, both positive and negative, has been considered to determine
whether, based on the weight of that evidence, a valuation allowance is needed against the deferred tax assets. Refer to Note 6,
Income Taxes, for further information and discussion of the Company's income tax provision and balances.

The Company files income tax returns in all jurisdictions in which it operates. The Company records a liability for uncertain
tax positions taken or expected to be taken in income tax returns. The Company's financial statements reflect expected future
tax consequences of such positions presuming the taxing authorities' full knowledge of the position and all relevant facts. The
Company records a liability for the portion of unrecognized tax benefits claimed that it has 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 the Company's 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 as events occur that result in changes in judgment.

The Company evaluates at the end of each reporting period whether some or all of the undistributed earnings of its foreign
subsidiaries are permanently reinvested. The Company recognizes deferred income tax liabilities to the extent that management
asserts that undistributed earnings of its foreign subsidiaries are not permanently reinvested or will not be permanently
reinvested in the future. The Company's position is based upon several factors including management’s evaluation of the
Haemonetics and its subsidiaries’ financial requirements, the short-term and long-term operational and fiscal objectives of the
Company and the tax consequences associated with the repatriation of earnings.

Derivative Instruments

The Company accounts for its 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, the
Company records 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 the Company has 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. The Company does not use derivative financial instruments for trading or speculation
purposes.

When the underlying hedged transaction affects earnings, 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, net in the
Company's consolidated statements of income, depending on the nature of the underlying hedged transactions. 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 the Company records the
gains or losses in earnings currently. These gains and losses are intended to offset the gains and losses recorded on net

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

monetary assets or liabilities that are denominated in foreign currencies. The Company recorded foreign currency losses of $2.9
million, $2.3 million and $0.2 million in fiscal 2020, 2019 and 2018, respectively.

On a quarterly basis, the Company assesses whether the cash flow hedges are highly effective in offsetting changes in the cash
flow of the hedged item. The Company manages the credit risk of its counterparties by dealing only with institutions that it
considers financially sound and considers the risk of non-performance to be remote. Additionally, the Company's interest rate
risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable interest rates.
The Company's 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.

The Company's derivative instruments do not subject its 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. The Company does not enter into derivative
transactions for speculative purposes and it does not have any non-derivative instruments that are designated as hedging
instruments pursuant to ASC 815.

Share-Based Compensation

The Company expenses the fair value of share-based awards granted to employees, board members and others, net of estimated
forfeitures. To calculate the grant-date fair value of its stock options the Company uses the Black-Scholes option-pricing model
and for performance share units it uses Monte Carlo simulation models.

Costs Associated with Exit Activities

The Company records employee termination costs in accordance with ASC Topic 712, Compensation - Nonretirement and
Postemployment Benefits, if it pays the benefits as part of an on-going benefit arrangement, which includes benefits provided as
part of its established severance policies or that it provides in accordance with international statutory requirements. The
Company accrues employee termination costs associated with an on-going benefit arrangement if the obligation is attributable
to prior services rendered, the rights to the benefits have vested, the payment is probable and the liability can be reasonably
estimated. The Company accounts for employee termination benefits that represent a one-time benefit in accordance with ASC
Topic 420, Exit or Disposal Cost Obligations. It records such costs into expense over the employee’s future service period, if
any.

Other costs associated with exit activities may include contract termination costs, including costs related to leased facilities to
be abandoned or subleased, consultant fees and impairments of long-lived assets. The costs are expensed in accordance with
ASC Topic 420 and ASC Topic 360, Property, Plant and Equipment and are included primarily in selling, general and
administrative costs in its consolidated statement of income. Additionally, costs directly related to the Company's active
restructuring initiatives, including program management costs, accelerated depreciation and costs to transfer product lines
among facilities are included within costs of goods sold and selling, general and administrative costs in its consolidated
statement of income. See Note 3, Restructuring, for further information and discussion of its restructuring plans.

Valuation of Acquisitions

The Company allocates the amounts it pays 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. The Company bases 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. The Company allocates any excess purchase price over the
fair value of the net tangible and intangible assets acquired to goodwill.

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 2020, 2019 and 2018, the Company's ten largest customers accounted for approximately 54%,
52% and 45% of net revenues, respectively. In fiscal 2020, 2019 and 2018, two Plasma customers, CSL Plasma Inc. ("CSL")
and Grifols S.A. ("Grifols"), each were greater than 10% of total net revenue and in total accounted for approximately 27%,
27% and 26% of net revenues, respectively. Additionally, one customer accounted for greater than 10% of the Blood Center
segment’s net revenues in fiscal 2020, 2019 and 2018.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Certain other markets and industries can expose the Company to concentrations of credit risk. For example, in the Plasma
business unit, sales are concentrated with several large customers. As a result, accounts receivable extended to any one of these
biopharmaceutical customers can be significant at any point in time. Also, a portion of the Company's trade accounts receivable
outside the U.S. 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.
The Company has not incurred significant losses on government receivables. The Company continually evaluates 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 Implemented

In March 2017, the FASB issued ASC Update No. 2017-07, Compensation - Retirement Benefits (Topic 715). The guidance
revises the presentation of net periodic pension cost and net periodic post-retirement benefit cost. The Company adopted ASC
Update No. 2017-07 during the first quarter of fiscal 2020. The adoption of ASC Update No. 2017-07 did not have a material
impact on the Company's condensed consolidated financial statements.

In June 2018, the FASB issued ASC Update No. 2018-07, Compensation - Stock Compensation (Topic 718). The new guidance
aligns the accounting for non-employee share-based payments with the existing employee share-based transactions guidance.
The Company adopted ASC Update No. 2018-07 during the first quarter of fiscal 2020. The adoption of ASC Update No.
2018-07 did not have a material impact on the Company's financial position and results of operations.

3. RESTRUCTURING

On an ongoing basis, the Company reviews the global economy, the healthcare industry, and the markets in which it competes
to identify opportunities for efficiencies, enhance commercial capabilities, align its resources and offer its customers better
solutions. In order to realize these opportunities, the Company undertakes restructuring-type activities to transform its business.

In July 2019, the Board of Directors of the Company approved a new Operational Excellence Program (the "2020 Program")
and delegated authority to the Company's management to determine the detail of the initiatives that will comprise the program.
The 2020 Program is designed to improve operational performance and reduce cost principally in our manufacturing and
supply chain operations. The Company estimates that it will incur aggregate charges between $60 million and $70 million in
connection with the 2020 Program. These charges, the majority of which will result in cash outlays, including severance and
other employee costs, will be incurred as the specific actions required to execute these initiatives are identified and approved
and are expected to be substantially completed by the end of fiscal 2023. During fiscal 2020, the Company incurred $11.9
million of restructuring and turnaround costs under this program.

During fiscal 2018, the Company launched a Complexity Reduction Initiative (the "2018 Program"), a company-wide
restructuring program designed to improve operational performance and reduce cost, freeing up resources to invest in
accelerated growth. During fiscal 2020, 2019 and 2018 the Company incurred $7.9 million, $13.7 million and $36.6 million of
restructuring and turnaround costs under this program, respectively. Total cumulative charges under this program are $58.2
million as of March 28, 2020. The 2018 Program is substantially complete.

During fiscal 2017, the Company launched a restructuring program (the "2017 Program") designed to reposition its
organization and improve its cost structure. The Company did not incur any charges under this program during fiscal 2020 and
2019. During fiscal 2018, the Company incurred $7.2 million of restructuring and turnaround charges under this program,
respectively. The 2017 Program is substantially complete.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table summarizes the activity for restructuring reserves related to the 2020 Program and the 2018 and Prior
Programs for the fiscal years ended March 28, 2020, March 30, 2019 and March 31, 2018, substantially all of which relates to
employee severance and other employee costs:

(In thousands)

Balance at April 1, 2017

Costs incurred, net of reversals

Payments

Non-cash adjustments

Balance at March 31, 2018

Costs incurred, net of reversals

Payments

Non-cash adjustments

Balance at March 30, 2019
Costs incurred, net of reversals

Payments

Non-cash adjustments

Balance at March 28, 2020

2020 Program

2018 and Prior
Programs

Total

— $

7,468

—

— $

—

— $

2,234
(1,098)
—

1,136

30,529
(8,260)
(1,202)
28,535

395
(21,392)
(59)
7,479
1,357
(7,177)
(147)
1,512

7,468

30,529
(8,260)
(1,202)
28,535

395
(21,392)
(59)
7,479
3,591
(8,275)
(147)
2,648

The following presents the restructuring costs by line item during fiscal 2020, 2019 and 2018 within our accompanying
consolidated statements of income and comprehensive income:

(In thousands)

Cost of goods sold

Research and development

Selling, general and administrative expenses

Total

2020

2019

2018

1,082

532

1,977

3,591

— $

741
(346)
395

4,671

25,857

30,529

As of March 28, 2020, the Company had a restructuring liability of $2.6 million, of which approximately $2.2 million is
payable within the next twelve months.

In addition to the restructuring expenses included in the table above, the Company also incurred costs of $16.3 million, $13.2
million and $13.6 million in fiscal 2020, 2019 and 2018, respectively, that do not constitute restructuring costs under ASC 420,
Exit and Disposal Cost Obligations, and which the Company instead refers to as turnaround costs. These costs consist primarily
of expenditures directly related to the restructuring actions and include program management costs associated with the
implementation of outsourcing initiatives and recent accounting standards.

The following presents the turnaround costs by line item during fiscal 2020, 2019 and 2018 within our accompanying
consolidated statements of income and comprehensive income:

(In thousands)

Cost of goods sold

Research and development

Selling, general and administrative expenses

Total

2020

2019

2018

2,227

1,305

354

13,706

—

11,923

16,287

13,228

716

12,876

13,596

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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

Restructuring costs

(In thousands)

Plasma

Blood Center

Hospital

Corporate

Total

Turnaround costs

(In thousands)

Plasma

Blood Center

Hospital

Corporate

Total

Total restructuring and turnaround

4. ACQUISITIONS

2020

2019

2018

544
(5)
845

2,207

3,591

(67) $
164

828
(530)
395

3,649

3,838

3,853

19,189

30,529

2020

2019

2018

820

320

—

15,147

16,287

19,878

174

145
(270)
13,179

13,228

13,623

973

35
(30)
12,618

13,596

44,125

On April 1, 2020, the Company acquired all of the outstanding equity of enicor GmbH, the manufacturer of ClotPro®, a new
generation whole blood coagulation testing system. The acquisition of this innovative viscoelastic diagnostic device further
augments the Company's portfolio of hemostasis analyzers within the Hospital business unit. The purchase accounting for this
acquisition will be completed in fiscal 2021.

On January 13, 2020, the Company purchased the technology underlying the TEG® 6s Hemostasis Analyzer System from Cora
Healthcare, Inc. and CoraMed Technologies, LLC (the "Cora Parties") for $35.0 million. In connection with this transaction,
which did not meet the definition of a business, the Company acquired ownership of intellectual property previously licensed
from the Cora Parties on an exclusive basis in the field of hospitals and hospital laboratories. This acquisition will allow the
Company to pursue site of care opportunities beyond the hospital setting. The intangible asset acquired as a result of this
transaction was recorded in the Company's Hospital business unit.

5. DIVESTITURE

On May 21, 2019, the Company transferred to CSL Plasma Inc. (“CSL”) substantially all of its tangible assets held relating to
the manufacture of anti-coagulant and saline (together, “Liquids”) at its Union, South Carolina facility (“Union”), which consist
primarily of property, plant and equipment and inventory, and CSL assumed certain related liabilities (the “Asset Transfer”)
pursuant to the terms of a settlement, release and asset transfer agreement between the parties dated May 13, 2019. The Asset
Transfer excludes all other assets related to Union, including accounts receivable, customer contracts and the Company's U.S.
Food and Drug Administration (“FDA”) product approvals for manufacturing Liquids.

At closing, Haemonetics received $9.8 million of proceeds for the Asset Transfer and was concurrently released from its
obligations to supply Liquids under a 2014 supply agreement with CSL. In connection with the Asset Transfer, CSL and
Haemonetics also entered into related transition services, supply and manufacturing services and quality agreements that,
among other things, permit CSL to manufacture Liquids under the Company's FDA product approvals, exclusively for
Haemonetics and CSL, until CSL obtains independent product approvals from the FDA to manufacture the Liquids.

In connection with the Company's and CSL's entry into the May 13, 2019 agreement for the Asset Transfer, the Company
recognized a pre-tax impairment charge of $48.7 million in the first quarter of fiscal 2020, primarily related to the carrying

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

balances of the property, plant and equipment exceeding the consideration received under the terms of the Agreement. The
charge will not result in any future cash expenditures. Goodwill associated with the disposal was immaterial.

6. INCOME TAXES

Domestic and foreign income before provision for income tax is as follows:

(In thousands)

Domestic

Foreign
Total

2020

2019

2018

5,344

81,808
87,152

26,665

46,968
73,633

3,534

56,098
59,632

The income tax provision from continuing operations contains the following components:

(In thousands)

Current

Federal

State

Foreign

Total current

Deferred

Federal

State

Foreign

Total deferred
Total

2020

2019

2018

$
$

3,834

1,054

12,467

(4,165) $
844

8,584

9,927

1,024

8,937

17,355

5,263

19,888

(8,257)
280

1,248
(6,729) $
$
10,626

12,220

463

668

13,351
18,614

$
$

(5,350)
344
(822)
(5,828)
14,060

The Company conducts business globally and reports its results of operations in a number of foreign jurisdictions in addition to
the United States. The Company's reported tax rate is impacted by the jurisdictional mix of earnings in any given period as the
foreign jurisdictions in which it operates have tax rates that differ from the U.S. statutory tax rate.

Beginning in fiscal 2019, the Company incorporated certain provisions of the Tax Cuts and Jobs Act (the "Act") in the
calculation of the tax provision and effective tax rate, including the provisions related to global intangible low taxed income
(“GILTI”), foreign derived intangible income (“FDII”), base erosion anti abuse Tax (“BEAT”), as well as other provisions
which limit tax deductibility of expenses. For fiscal 2020, the GILTI provisions have the most significant impact to the
Company. Under the new law, U.S. taxes are imposed on foreign income in excess of a deemed return on tangible assets of its
foreign subsidiaries. The ability to benefit from a deduction and foreign tax credits against a portion of the GILTI income may
be limited under the GILTI rules as a result of the utilization of net operating losses, foreign sourced income, and other potential
limitations within the foreign tax credit calculation.

The Company's subsidiary in Puerto Rico has been granted a fifteen-year tax grant that expires in calendar 2027. Its
qualification for the tax grant is dependent on the continuation of its manufacturing activities in Puerto Rico. The Company
benefits from a reduced tax rate on its earnings in Puerto Rico under the tax grant.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The Company's subsidiary in Malaysia has been granted a full income tax exemption to manufacture whole blood and apheresis
devices that could be in effect for up to ten years, provided certain conditions are satisfied. The income tax exemption was in
effect beginning June 1, 2016.

Tax affected, significant temporary differences comprising the net deferred tax liability are as follows:

(In thousands)

Deferred tax assets:

Depreciation

Amortization of intangibles

Inventory

Accruals, reserves and other deferred tax assets

Net operating loss carry-forward

Stock based compensation

Operating lease liabilities
Tax credit carry-forward, net

Capitalized research expenses

Gross deferred tax assets

Less valuation allowance

Total deferred tax assets (after valuation allowance)

Deferred tax liabilities:

Depreciation

Amortization of goodwill and intangibles

Unremitted earnings

Operating lease assets

Other deferred tax liabilities

Total deferred tax liabilities
Net deferred tax liabilities

March 28,
2020

March 30,
2019

1,922

1,156

2,904

17,345

4,953

3,634

14,115
5,159

3,820

55,008
(14,587)
40,421

(15,840)
(15,450)
(654)
(12,743)
(2,366)
(47,053)
(6,632) $

2,277

1,091

3,541

15,802

4,931

3,728

—
4,176

—

35,546
(11,322)
24,224

(23,102)
(13,959)
(801)
—
(1,909)
(39,771)
(15,547)

The valuation allowance increased by $3.3 million during fiscal 2020, primarily as a result of net operating losses and tax
credits generated in jurisdictions in which the Company has concluded that its deferred tax assets are not more-likely-than-not
realizable. The Company has assessed, on a jurisdictional basis, the available means of recovering deferred tax assets, including
the ability to carry-back net operating losses, the existence of reversing temporary differences, the availability of tax planning
strategies and available sources of future taxable income. It has also considered the ability to implement certain strategies that
would, if necessary, be implemented to accelerate taxable income and use expiring deferred tax assets. The Company has
concluded future taxable income can be considered a source of income to realize a benefit for deferred tax assets in certain
jurisdictions. In addition, the Company has concluded that it cannot rely on future taxable income in certain risk bearing
principal jurisdictions due uncertainty surrounding future taxable income (including as a result of the effects of Covid-19). The
Company believes it is 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, 2020 includes deferred tax liabilities related to amortizable
tax basis in goodwill, which are indefinite lived and can only be used as a source of income to benefit other indefinite lived
assets.

As of March 28, 2020, the Company maintains a valuation allowance against certain U.S. deferred tax assets that are not more-
likely-than-not realizable and maintains a full valuation allowance against the net deferred tax assets of certain foreign
subsidiaries.

As of March 28, 2020, the Company has no U.S. federal net operating loss carryforwards. The Company has U.S. state net
operating losses of $35.6 million of which $30.3 million will begin to expire in fiscal 2021 and $5.3 million can be carried

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

forward indefinitely. The Company has federal and state tax research credits of $1.3 million and $4.9 million, respectively,
which will begin to expire in fiscal 2039 and fiscal 2025, respectively.

The Company's net operating loss and tax credit carry-forwards may become subject to an annual limitation in the event of
certain cumulative changes in the ownership interest of significant shareholders over a three-year period in excess of 50 percent
as defined under Section 382 and 383 of the U.S. Internal Revenue Code of 1986, respectively, as well as similar state
provisions. The amount of the annual limitation is determined based on the value of the Company immediately prior to the
ownership change. The Company conducted a Section 382 study covering the period April 2, 2011 through December 31, 2017.
The study concluded that there were no limitations on the Company’s net operating losses and tax credit carryforwards as of
December 31, 2017. The Company does not believe it has had an ownership change through March 28, 2020. Subsequent
ownership changes may further affect the limitation in future years.

As of March 28, 2020, the Company has foreign net operating losses of approximately $14.6 million that are available to reduce
future income of which $5.5 million will begin to expire in fiscal 2034 and $9.1 million can be carried forward indefinitely.

As of March 28, 2020, substantially all of the unremitted earnings of the Company have been taxed in the U.S. The Company
has provided $0.4 million of net foreign withholding taxes on approximately $178.3 million of unremitted earnings that are not
indefinitely reinvested. The Company has not provided U.S. deferred income taxes or foreign withholding taxes on unremitted
earnings of foreign subsidiaries of approximately $242.0 million as such amounts 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
its subsidiaries continue to expand their operations, to service existing debt obligations and to fund future foreign acquisitions.
The Company does not believe it is practicable to estimate the amount of income taxes payable on the earnings that are
indefinitely reinvested in foreign operations, however a significant portion of the unremitted earnings could be remitted without
a future tax cost.

The income tax provision from continuing operations differs from tax provision computed at the U.S. federal statutory income
tax rate due to the following:

(In thousands)

Tax at federal statutory rate

Difference between U.S. and foreign tax

State income taxes net of federal benefit

Change in uncertain tax positions

Global intangible low taxed income

Unremitted earnings

Deferred statutory rate changes

Non-deductible executive compensation
Non-deductible other

Stock compensation benefits

Research credits

One-time transition tax from tax reform

Valuation allowance

Other, net
Income tax provision (benefit)

2020

18,302
(6,688)
(342)
785

5,431

1,091

2,423
1,050
(12,133)
(2,085)
—

2,939
(187)
10,626

21.0 % $

(7.7)%

(0.4)%

0.9 %

6.2 %

— %

1.3 %

2.8 %
1.2 %

(13.9)%

(2.4)%

— %

3.4 %

(0.2)%
12.2 % $

2019

15,463
(1,423)
902

267

5,954

527

1,183

1,588
462
(5,382)
(768)
26
(184)
(1)
18,614

21.0 % $

(1.9)%

1.2 %

0.4 %

8.1 %

0.7 %

1.6 %

2.2 %
0.6 %

(7.3)%

(1.0)%

— %

(0.3)%

— %
25.3 % $

2018

18,807
(9,264)
29

1,095

—
(791)
(3,193)
221
22
(2,544)
(763)
25,798
(15,541)
184
14,060

31.5 %

(15.5)%

— %

1.8 %

— %

(1.3)%

(5.4)%

0.4 %
— %

(4.3)%

(1.3)%

43.3 %

(25.9)%

0.3 %
23.6 %

The Company recorded an income tax provision of $10.6 million, representing an effective tax rate of 12.2%. The effective tax
rate is lower than the U.S. statutory rate of 21.0% primarily as a result of the impact of tax benefits of stock compensation
windfall deductions; research credits generated and jurisdictional mix of earnings, partially offset by the impact of GILTI, non-
deductible executive compensation, tax reserves and changes in valuation allowance. The Company has recorded an immaterial
tax expense related to unremitted foreign earnings that are not considered permanently reinvested.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Unrecognized Tax Benefits

Unrecognized tax benefits represent uncertain tax positions for which reserves have been established. As of March 28, 2020, the
Company had $4.6 million of unrecognized tax benefits, of which $4.0 million would impact the effective tax rate, if
recognized. As of March 30, 2019, the Company had $4.7 million of unrecognized tax benefits, of which $3.9 million would
impact the effective tax rate, if recognized. At March 31, 2018, the Company had $4.5 million of unrecognized tax benefits, of
which $3.8 million would impact the effective tax rate, if recognized.

During the fiscal year ended March 28, 2020, the Company's unrecognized tax benefits were decreased by an immaterial
amount, primarily relating to uncertain tax positions established against foreign tax provisions and various federal and state tax
credits offset by the settlement of prior exposures.

The following table summarizes the activity related to its gross unrecognized tax benefits for the fiscal years ended March 28,
2020, March 30, 2019 and March 31, 2018:

(In thousands)

Beginning Balance

Additions for tax positions of current year

Additions for tax positions of prior years

Reductions of tax positions

Settlements of tax positions

Closure of statute of limitations
Ending Balance

March 28,
2020

March 30,
2019

March 31,
2018

4,657

4,450

180

880
(539)
(558)
—
4,620

282

—
(52)
—
(23)
4,657

3,370

289

1,203
(252)
—
(160)
4,450

As of March 28, 2020, the Company anticipates that the liability for unrecognized tax benefits for uncertain tax positions could
change by up to $1.4 million in the next twelve months, as a result of closure of various statutes of limitations and potential
settlements with tax authorities.

The Company's historical 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 $0.4 million, $0.2 million, and $0.2 million of gross interest
and penalties were accrued at March 28, 2020, March 30, 2019, and March 31, 2018, respectively, and are not included in the
amounts above. Additionally, $0.3 million of accrued interest and penalties was included in income tax expense for the year
ended March 28, 2020. Such amounts were immaterial during the fiscal years ended March 30, 2019 and March 31, 2018.

The Company conducts business globally and, as a result, files federal, state and foreign income tax returns in multiple
jurisdictions. In the normal course of business, it is subject to examination by taxing authorities throughout the world. With a
few exceptions, the Company is no longer subject to U.S. federal, state, or local income tax examinations for years before fiscal
2016 and foreign income tax examinations for years before fiscal 2015. To the extent that the Company has tax attribute carry-
forwards, the tax years in which the attribute was generated may still be adjusted upon examination by the Internal Revenue
Service, state, or foreign tax authorities to the extent utilized in a future period.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

7. EARNINGS PER SHARE

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

(In thousands, except per share amounts)

2020

2019

2018

Basic EPS

Net income

Weighted average shares
Basic income per share

Diluted EPS

Net income

Basic weighted average shares

Net effect of common stock equivalents

Diluted weighted average shares
Diluted income per share

76,526

50,692
1.51

76,526

50,692

1,123

51,815
1.48

55,019

51,533
1.07

55,019

51,533

1,409

52,942
1.04

45,572

52,755
0.86

45,572

52,755

746

53,501
0.85

Basic earnings per share is calculated using the Company's weighted-average outstanding common shares. Diluted earnings per
share is calculated using its weighted-average outstanding common shares including the dilutive effect of stock awards as
determined under the treasury stock method. For fiscal 2020, 2019 and 2018, weighted average shares outstanding, assuming
dilution, excludes the impact of 0.2 million, 0.2 million and 0.4 million anti-dilutive shares, respectively.

Share Repurchase Plan

In May 2019, the Company's Board of Directors authorized the repurchase of up to $500 million of Haemonetics common
shares over the next two years. In July 2019, 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 June 2019. The total
number of shares repurchased under the ASR was 0.6 million at an average price per share upon final settlement of $116.33. In
October 2019, the Company completed a $50.0 million repurchase of its common stock pursuant to an ASR entered into with
Morgan Stanley & Co. LLC ("Morgan Stanley") in September 2019. The total number of shares repurchased under the ASR
was 0.4 million at an average price per share upon final settlement of $124.37. In January 2020, the Company completed an
additional $50.0 million repurchase of its common stock pursuant to an ASR entered into with Bank of America, N.A. ("Bank
of America") in December 2019. The total number of shares repurchased under the ASR was 0.4 million at an average price per
share upon final settlement of $114.73. As of March 28, 2020, the total remaining authorization for repurchases of the
Company's common stock under the share repurchase program was $325.0 million.

8. REVENUE

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. Revenue is recognized when obligations under the terms of a
contract with a customer are satisfied; this occurs with the transfer of control of the Company’s goods or services. The
Company considers revenue to be earned when all of the following criteria are met: it has a contract with a customer that
creates enforceable rights and obligations; promised products or services are identified; the transaction price, or the
consideration it expects to receive for transferring goods or providing services, is determinable and it has transferred control of
the promised items to the customer. A promise in a contract to transfer a distinct good or service to the customer is identified as
a performance obligation. A contract’s transaction price is allocated to each performance obligation and recognized as revenue
when, or as, the performance obligation is satisfied. Some of the Company’s contracts have multiple performance obligations.
For contracts with multiple performance obligations, the Company allocates the contract’s transaction price to each
performance obligation based on the estimated standalone selling prices of the good or service in the contract. For goods or
services for which observable standalone selling prices are not available, the Company uses an expected cost plus a margin
approach to estimate the standalone selling price of each performance obligation.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

As of March 28, 2020, the Company had $22.8 million of 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
60% of this amount as revenue within the next twelve months and the remaining balance thereafter.

Contract Balances

The timing of revenue recognition, billings and cash collections results in billed accounts receivable, unbilled receivables
(contract assets), and customer advances and deposits (contract liabilities) on the condensed consolidated balance sheets. The
difference in timing between billing and revenue recognition primarily occurs in software licensing arrangements, resulting in
contract assets and contract liabilities.

As of March 28, 2020 and March 30, 2019, the Company had contract assets of $5.0 million and $5.6 million, respectively. The
change is primarily due to the delay in billings compared to the revenue recognized. Contract assets are classified as other
current assets and other long-term assets on the consolidated balance sheet.

As of March 28, 2020 and March 30, 2019, the Company had contract liabilities of $20.8 million and $20.3 million,
respectively. During fiscal 2020, the Company recognized $17.7 million of revenue that was included in the above March 30,
2019 contract liability balance. Contract liabilities are classified as other current liabilities and other long-term liabilities on the
consolidated balance sheet.

9. INVENTORIES

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)

Raw materials

Work-in-process

Finished goods

Total Inventories

10. PROPERTY, PLANT AND EQUIPMENT

Property and equipment consisted of the following:

(In thousands)

Land

Building and building improvements
Plant equipment and machinery

Office equipment and information technology

Haemonetics equipment

Total

Less: accumulated depreciation and amortization
Property, plant and equipment, net

March 28,
2020

March 31,
2019

76,867

11,021

182,388
270,276

69,420

12,610

112,307
194,337

March 28, 2020

March 30, 2019

4,779

101,296
242,286

113,600

370,473

832,434
(579,035)
253,399

7,337

118,821
301,297

132,783

372,984

933,222
(589,243)
343,979

Depreciation expense was $76.6 million, $76.8 million and $57.7 million in fiscal 2020, 2019 and 2018, respectively. There
was $0.5 million of asset impairments included in depreciation expense during fiscal 2020 and no asset impairments included
in depreciation expense during fiscal 2019. Fiscal 2018 included $0.3 million of additional depreciation expense due to asset
impairments.

In December 2018, the Company entered into a lease for office space in Boston, MA to serve as its new corporate headquarters
and replace its prior corporate headquarters located in Braintree, MA. As a result of this lease agreement, the Company
received a lease incentive in the form of property, plant and equipment totaling $5.6 million which was recorded upon
commencement of the lease term in October 2019. Refer to Note 12, Leases, for additional information regarding this lease.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

During fiscal 2020, the Company sold $7.8 million of real estate and other assets associated with the Braintree corporate
headquarters and entered into a lease with the buyer that allowed the Company to leaseback the facility on a rent-free basis
through December 31, 2019 until the completion of its relocation to Boston, MA, which occurred during the third quarter of
fiscal 2020. As a result of this transaction, the Company received net cash proceeds of $15.0 million and non-cash
consideration of $0.9 million related to a free rent period ending in December 2019. The transaction resulted in a net gain of
$8.1 million.

During the first quarter of fiscal 2020, the Company recognized a pre-tax impairment charge of $48.7 million relating to the
Asset Transfer between the Company and CSL on May 13, 2019. This impairment is related to the carrying balances of the
property, plant and equipment exceeding the consideration received under the terms of the Agreement. The charge will not
result in any future cash expenditures. For additional information regarding the transaction, refer to Note 5 - Divestiture.

During fiscal 2020, the Company impaired an additional $1.9 million of property, plant and equipment as a result of the
Company's corporate headquarter move and a review of underperforming assets, resulting in total impairment charges of $50.6
million during fiscal 2020. Substantially all of these impairments were included within selling, general and administrative costs
on the consolidated statements of income and primarily impacted the Plasma reporting segment. During fiscal 2019 and 2018,
the Company impaired $21.2 million and $2.2 million of property, plant and equipment, respectively.

During fiscal 2019, the Company recorded impairment charges of $21.2 million, which consisted of $19.8 million of charges
related to the discontinued use of the HDC filter media manufacturing line and $1.4 million of charges related to non-core and
underperforming assets. These impairments were included within cost of goods sold on the condensed consolidated statements
of income and impacted the Blood Center reporting segment.

Additionally, in the second quarter of fiscal 2019, the Company changed the estimated useful lives of PCS®2 devices included
within Haemonetics Equipment, as these will be replaced by NexSys PCS® devices. During fiscal 2020 and 2019, the Company
incurred $18.1 million and $18.0 million, respectively, of accelerated depreciation expense related to this change in estimate.
As of March 28, 2020, the majority of PCS2 devices are fully depreciated.

11. GOODWILL AND INTANGIBLE ASSETS

Effective as of March 31, 2019, the Company revised the composition of its reportable segments to align with its three global
business units, Plasma, Blood Center and Hospital. Refer to Note 18, Segment and Enterprise-Wide Information, for additional
information regarding the change in the Company's reportable segments.

A reporting unit is defined as an operating segment or one level below an operating segment, referred to as a component. The
Company aggregates components within an operating segment that have similar economic characteristics. Consistent with its
reportable segments, reporting units for purposes of assessing goodwill impairment have also been reorganized based on
business unit and include: Plasma, Blood Center and Hospital.

To determine the amount of goodwill within each of the new reporting units, the Company reallocated, on a relative fair value
basis, $84.0 million of goodwill previously allocated to the former Europe, APAC and Japan reporting units to the new global
reporting units. In addition, the $126.8 million of goodwill previously allocated to the former North America reporting units
was reallocated to each new respective global reporting unit.

The following represents the Company's goodwill balance by new global reportable segment for fiscal 2020 and 2019. The
prior period information has been restated to conform to the current presentation:

(In thousands)
Carrying amount as of March 31, 2018
Currency translation
Carrying amount as of March 30, 2019
Currency translation
Carrying amount as of March 28, 2020

Plasma

28,979
—
28,979
—
28,979

Blood Center
36,782
(116)
36,666
(34)
36,632

Hospital

145,634
(460)
145,174
(133)
145,041

Total
211,395
(576)
210,819
(167)
210,652

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The results of the Company's goodwill impairment test performed in the fourth quarter of fiscal 2020, 2019 and 2018 indicated
that the estimated fair value of all reporting units exceeded their respective carrying values. There were no reporting units at
risk of impairment as of the fiscal 2020, 2019 and 2018 annual test dates.

The gross carrying amount of intangible assets and the related accumulated amortization as of March 28, 2020 and March 30,
2019 is as follows:

(In thousands)
As of March 28, 2020
Amortizable:
Patents
Capitalized software
Other developed technology
Customer contracts and related relationships
Trade names
Total
Non-amortizable:
In-process software development
In-process patents
Total

(In thousands)
As of March 30, 2019
Amortizable:
Patents
Capitalized software
Other developed technology
Customer contracts and related relationships
Trade names
Total
Non-amortizable:
In-process software development
In-process patents
Total

Gross Carrying
Amount

Accumulated
Amortization

Net

1,225
33,718
56,461
34,907
586
126,897

Net

1,191
31,894
30,050
52,046
889
116,070

9,878
76,740
138,283
193,797
5,141
423,839

8,653
43,022
81,822
158,890
4,555
296,942

2,563
3,646
6,209

Gross Carrying
Amount

Accumulated
Amortization

8,444
34,737
73,271
142,747
4,280
263,479

9,635
66,631
103,321
194,793
5,169
379,549

8,740
2,883
11,623

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 approximately 5 to 15 years. The
changes to the net carrying value of the Company's intangible assets from March 30, 2019 to March 28, 2020 reflect the impact
of amortization expense, partially offset by the investment in capitalized software.

Aggregate amortization expense for amortized intangible assets for fiscal 2020, 2019, and 2018 was $34.2 million, $32.6
million and $31.9 million, respectively. There were no intangible asset impairments during fiscal 2020, 2019, and 2018.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Future annual amortization expense on intangible assets is estimated to be as follows:

(In thousands)

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025

27,604

26,892

12,098

9,350

4,966

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. The costs capitalized for each project are included in
intangible assets in the consolidated financial statements.

The Company capitalized $3.9 million and $3.5 million in software development costs for ongoing initiatives during fiscal
2020 and 2019, respectively. At March 28, 2020 and March 30, 2019, the Company had a total of $79.3 million and $75.4
million of software costs capitalized, of which $2.6 million and $8.7 million are related to in process software development
initiatives, respectively, and the remaining balance represents in-service assets that are being amortized over their useful lives.

12. LEASES

Lessee Activity

The Company has operating leases for office space, land, warehouse and manufacturing space, R&D laboratories, vehicles and
certain equipment. Finance leases are not significant. Leases with an initial term of 12 months or less are generally not recorded
on the balance sheet and expense for these leases is recognized on a straight-line basis over the lease term. For leases executed
in fiscal 2020 and later, the Company accounts for the lease components and the non-lease components as a single lease
component. The Company's leases have remaining lease terms of 1 year to approximately 30 years, some of which may include
options to extend the leases for up to 10 years and some include options to terminate early. These options have been included in
the determination of the lease liability when it is reasonably certain that the option will be exercised. The Company does not
have any leases that include residual value guarantees.

The Company determines whether an arrangement is or contains a lease based on the unique facts and circumstances present at
the inception of an arrangement. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the
present value of lease payments over the expected lease term. The interest rate implicit in lease contracts is typically not readily
determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow
on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. For
operating leases that commenced prior to the Company's adoption of ASC 842, the Company measured the lease liabilities and
right-of-use assets using the incremental borrowing rate as of March 31, 2019. Certain adjustments to the right-of-use asset may
be required for items such as initial direct costs paid or incentives received.

During the third quarter of fiscal 2020, the Company entered into a lease for office space in Boston, MA to serve as its new
corporate headquarters and completed the relocation to this new office from its previous corporate headquarters located in
Braintree, MA. The lease term associated with the new corporate headquarters extends through June 30, 2032 and includes two
five year renewal options. During the third quarter of fiscal 2020, the Company recorded a right-of-use asset of $36.2 million
and corresponding liabilities of $41.8 million upon commencement of the lease term in October 2019. In addition, the Company
recorded $5.6 million of property, plant and equipment as a result of a lease incentive received associated with this lease
agreement.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following table presents supplemental balance sheet information related to the Company's operating leases:

(In thousands)

Assets

Operating lease right-of-use assets in Other long-term assets
Liabilities

Operating lease liabilities in Other current liabilities
Operating lease liabilities in Other long-term liabilities

March 28,
2020

52,236

7,306

52,014

The following table presents the weighted average remaining lease term and discount rate information related to our operating
leases:

Weighted average remaining lease term

Weighted average discount rate

During the fiscal year ended March 28, 2020 the Company's operating lease cost was $8.3 million.

The following table presents supplemental cash flow information related to our operating leases:

(In thousands)

Cash paid for amounts included in the measurement of operating lease liabilities

Operating cash flows used for operating leases

The following table presents the maturities of our operating lease liabilities as of March 28, 2020:

Fiscal Year (In thousands)

2021

2022

2023

2024

2025
Thereafter
Total future minimum operating lease payments

Less: imputed interest
Present value of operating lease liabilities

Lessor Activity

March 28,
2020

10.0 Years

3.97%

March 28,
2020

6,780

Operating Leases

9,637

8,421

7,499

5,693

5,515
35,395
72,160
(12,840)
59,320

Assets on the Company's balance sheet classified as Haemonetics equipment primarily consists of medical devices installed at
customer sites but owned by Haemonetics. These devices are leased to customers under contractual arrangements that typically
include an operating or sales-type lease as well as the purchase and consumption of a certain level of disposable products.
Sales-type leases are not significant. Contract terms vary by customer and may include options to terminate the contract or
options to extend the contract. Where devices are provided under operating lease arrangements, a substantial majority of the
entire lease revenue is variable and subject to subsequent non-lease component (disposable products) sales. The allocation of
revenue between the lease and non-lease components is based on stand-alone selling prices. Operating lease revenue represents
less than 3 percent of the Company's total net sales.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

13. NOTES PAYABLE AND LONG-TERM DEBT

Notes payable and long-term debt consisted of the following:

(In thousands)

Term loan, net of financing fees

Other borrowings

Less current portion
Long-term debt

March 28, 2020

March 30, 2019

322,330

60,163
(76,980)
305,513

334,859

15,261
(27,666)
322,454

On June 15, 2018, the Company entered into a credit agreement with certain lenders which provided for a $350.0 million term
loan (the "Term Loan") and a $350.0 million revolving loan (the "Revolving Credit Facility" and together with the Term Loan,
the "Credit Facilities"). The Credit Facilities expire on June 15, 2023. Interest on the Credit Facilities is established using
LIBOR plus 1.13% - 1.75%, depending on the Company's leverage ratio. At March 28, 2020, $323.8 million was outstanding
under the Term Loan and $60.0 million was outstanding on the Revolving Credit Facility, both with an effective interest rate of
2.9%. In April 2020, the Company borrowed an additional $150.0 million on the Revolving Credit Facility. The Company also
had $25.6 million of uncommitted operating lines of credit to fund its global operations under which there were no outstanding
borrowings as of March 28, 2020.

Under the Credit Facilities, the Company is required to maintain a Consolidated Leverage Ratio not to exceed 3.5:1.0 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, the Company is 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 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 that 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 its business, capital
expenditures, share repurchase and other restricted payments. These covenants are subject to 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 the Company 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, 2020, the
Company was in compliance with the covenants.

Commitment Fee

Pursuant to the Credit Facilities, the Company is required to pay, 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 the Company's
Consolidated Leverage Ratio. The commitment fee ranges from 0.150% to 0.275%. The current commitment fee on the
undrawn portion of the Revolving Credit Facility is 0.175%.

Debt Issuance Costs and Interest

Expenses associated with the issuance of the Term Loan were capitalized and are amortized to interest expense over the life of
the term loan using the effective interest method. As of March 28, 2020, the $323.8 million term loan balance was netted down
by the $1.4 million of remaining debt discount, resulting in a net note payable of $322.3 million.

Interest expense was $13.5 million, $12.6 million and $7.7 million for fiscal 2020, 2019 and 2018, respectively. Accrued
interest associated with the outstanding debt is included as a component of other current liabilities in the accompanying

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

consolidated balance sheets. As of both March 28, 2020 and March 30, 2019, the Company had an insignificant amount of
accrued interest associated with the outstanding debt.

The aggregate amount of debt maturing during the next five fiscal years and thereafter are as follows:

Fiscal year
(In thousands)

2021

2022

2023

2024

2025

Thereafter

81,919

17,545

214,422

70,026

—

14. DERIVATIVES AND FAIR VALUE MEASUREMENTS

The Company manufactures, markets and sells its products globally. For the fiscal year ended March 28, 2020, 34.6% of the
Company's sales were generated outside the U.S. in local currencies. The Company also incurs certain manufacturing,
marketing and selling costs in international markets in local currency.

Accordingly, earnings and cash flows are exposed to market risk from changes in foreign currency exchange rates relative to
the U.S. Dollar, the Company's reporting currency. The Company has a program in place that is designed to mitigate the
exposure to changes in foreign currency exchange rates. That program includes the use of derivative financial instruments to
minimize, for a period of time, the impact on its financial results from changes in foreign exchange rates. The Company utilizes
foreign currency forward contracts to hedge the anticipated cash flows from transactions denominated in foreign currencies,
primarily the Japanese Yen and the Euro, and to a lesser extent the Swiss Franc, Australian Dollar, Canadian Dollar and the
Mexican Peso. This does not eliminate the impact of the volatility of foreign exchange rates. However, because the Company
generally enters 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 the Company's designated foreign currency hedge contracts as of March 28, 2020 and March 30, 2019 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. Once the related third-party transaction occurs, the Company reclassifies 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, 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 $93.8 million as of March 28, 2020 and $81.5 million as of March 30, 2019. At March 28, 2020, gains of
$0.1 million, net of tax, will be reclassified to earnings within the next twelve months. Substantially all currency cash flow
hedges outstanding as of March 28, 2020 mature within twelve months.

Non-Designated Foreign Currency Contracts

The Company manages its exposure to changes in foreign currency on a consolidated basis to take advantage of offsetting
transactions and balances. It uses foreign currency forward contracts as a part of its strategy to manage exposure related to
foreign currency denominated monetary assets and liabilities. These foreign currency forward contracts are entered into for
periods consistent with currency transaction exposures, generally one month. They are not designated as cash flow or fair value
hedges under ASC 815. These forward contracts are marked-to-market with changes in fair value recorded to earnings. The
Company had non-designated foreign currency hedge contracts under ASC 815 outstanding in the contract amount of $98.0
million as of March 28, 2020 and $37.4 million as of March 30, 2019.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Interest Rate Swaps

On June 15, 2018, the Company entered into Credit Facilities which provided for a $350 million Term Loan and a $350 million
Revolving Credit Facility. Under the terms of the Credit Facilities, interest is established using LIBOR plus 1.13% - 1.75%. As
a result, the Company's earnings and cash flows are exposed to interest rate risk from changes to LIBOR. Part of the Company's
interest rate risk management strategy includes the use of interest rate swaps to mitigate its exposure to changes in variable
interest rates. The Company's 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.

In August 2018, the Company entered into two interest rate swap agreements (the "Swaps") to pay an average fixed rate of
2.80% on a total notional value of $241.9 million of debt. As a result of the interest rate swaps, 70% of the Term Loan exposed
to interest rate risk from changes in LIBOR are fixed at a rate of 4.05%. The Swaps mature on June 15, 2023. The Company
designated the Swaps as cash flow hedges of variable interest rate risk associated with $345.6 million of indebtedness. For
fiscal 2020, the Company recorded a loss of $8.9 million, net of tax, in accumulated other comprehensive loss to recognize the
effective portion of the fair value of the Swaps that qualify as cash flow hedges.

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 consolidated statements of income and comprehensive income for the
fiscal year ended March 28, 2020.

Amount of Gain
(Loss)
Recognized in
Accumulated
Other
Comprehensive
Loss

Amount of Gain
Reclassified
from
Accumulated
Other
Comprehensive
Loss into
Earnings

Location in
Consolidated
Statements of
Income and
Comprehensive
Income

Amount of Gain
Excluded from
Effectiveness
Testing

Location in
Consolidated
Statements of
Income and
Comprehensive
Income

Derivative Instruments

(In thousands)

Designated foreign currency hedge
contracts, net of tax

700

Net revenues,
COGS and
SG&A

Non-designated foreign currency hedge
contracts

Designated interest rate swaps, net of
tax

—

(10,201) $

(1,325)

Interest and other
expense, net

Interest and
other
expense, net

545

3,306

The Company did not have fair value hedges or net investment hedges outstanding as of March 28, 2020 or March 30, 2019. As
of March 28, 2020, no material deferred tax assets were recognized for designated foreign currency hedges.

ASC 815 requires all derivative instruments to be recognized at their fair values as either assets or liabilities on the balance
sheet. The Company determines the fair value of its derivative instruments using the framework prescribed by ASC 820, Fair
Value Measurements and Disclosures, by considering the estimated amount it 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 its creditworthiness for liabilities. In
certain instances, the Company may utilize financial models to measure fair value. Generally, the Company uses 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, 2020, 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.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The following tables present the fair value of the Company's derivative instruments as they appear in its consolidated balance
sheets as of March 28, 2020 and March 30, 2019:

(In thousands)

Derivative Assets:

Location in
Balance Sheet

As of March 28,
2020

As of March 30,
2019

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Other current assets

Derivative Liabilities:

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Designated interest rate swaps

Other current liabilities

Other long-term liabilities

839

377
1,216

1,854

1,435

5,581

9,475
18,345

1,208

69
1,277

145

—

5,203

—
5,348

Other Fair Value Measurements

Fair value is defined as the exit price that would be received from the sale of an asset or paid to transfer a liability, using
assumptions that market participants would use in pricing an asset or liability. The fair value guidance establishes the following
three-level hierarchy used for measuring fair value:

Level 1 — Inputs to the valuation methodology are quoted market prices for identical assets or liabilities.
Level 2 — Inputs to the valuation methodology are other observable inputs, including quoted market prices for similar

•
•
assets or liabilities and market-corroborated inputs.
•
inputs market participants would use in pricing the asset or liability at the measurement date, including assumptions about risk.

Level 3 — Inputs to the valuation methodology are unobservable inputs based on management’s best estimate of

The Company's 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.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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,
2020 and March 30, 2019.

(In thousands)

Assets

Money market funds

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Liabilities

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Designated interest rate swaps

Assets

Money market funds

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Liabilities

Designated foreign currency hedge contracts

Non-designated foreign currency hedge contracts

Other Fair Value Disclosures

As of March 28, 2020

Level 1

Level 2

Total

$ 44,564

— $ 44,564

—

839

—
$ 44,564

377
1,216

$
377
$ 45,780

— $

1,854

—

1,435

15,056
—
— $ 18,345

1,854

1,435

$ 15,056
$ 18,345

As of March 30, 2019

Level 1

Level 2

Total

$ 36,980

— $ 36,980

—

1,208

—
$ 36,980

69
1,277

$
69
$ 38,257

$
$

— $

— $
— $

145

5,203
5,348

$
$

145

5,203
5,348

The Term Loan (which is carried at amortized cost), accounts receivable and accounts payable approximate fair value. Details
pertaining to the Term Loan can be found in Note 13, Notes Payable and Long-Term Debt.

15. RETIREMENT PLANS

Defined Contribution Plans

The Company has a Savings Plus Plan (the "401k Plan") that is a 401(k) plan that allows its U.S. employees to accumulate
savings on a pre-tax basis. In addition, matching contributions are made to the 401k Plan based upon pre-established rates. The
Company's matching contributions amounted to approximately $4.7 million, $5.0 million and $5.5 million in fiscal 2020, 2019
and 2018, respectively. Upon Board approval, additional discretionary contributions can also be made. No discretionary
contributions were made for the 401k Plan in fiscal 2020, 2019, or 2018.

Some of the Company's subsidiaries also have defined contribution plans, to which both the employee and the employer make
contributions. The employer contributions to these plans totaled $0.6 million, $0.6 million and $0.7 million in fiscal 2020, 2019
and 2018, respectively.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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 loss on its consolidated statement
of stockholders’ equity and consolidated statement of comprehensive income (loss).

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 that are subject to change.

Some of the Company's 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)

Service cost

Interest cost on benefit obligation

Expected return on plan assets

Actuarial loss

Amortization of unrecognized prior service cost

Plan settlements and curtailments
Totals

2020

2019

2018

1,829

1,893

301
(178)
129
(98)
(239)
1,744

340
(208)
132
(86)
(82)
1,989

2,651

293
(215)
186
(121)
(445)
2,349

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The activity under those defined benefit plans are as follows:

(In thousands)

Change in Benefit Obligation:

Benefit Obligation, beginning of year

Service cost

Interest cost

Benefits paid

Actuarial gain

Employee and plan participants contribution

Plan settlements and curtailments

Foreign currency changes

Benefit obligation, end of year

Change in Plan Assets:

Fair value of plan assets, beginning of year
Company contributions

Benefits paid

Gain on plan assets

Employee and plan participants contribution

Plan settlements

Foreign currency changes

Fair value of plan assets, end of year
Funded Status*
Unrecognized net actuarial loss

Unrecognized prior service cost
Net amount recognized
* Substantially all of the unfunded status is non-current

March 28,
2020

March 30,
2019

(30,637) $
(1,829)
(301)
530

285
(3,447)
6,612

417
(28,370) $

16,287
1,585
(433)
349

3,549
(6,610)
560
$
15,287
(13,083) $
1,867
(837)
(12,053) $

(30,476)
(1,893)
(340)
902
(367)
(1,815)
3,069

283
(30,637)

16,322
1,329
(795)
265

1,801
(2,916)
281
16,287
(14,350)
2,245
(714)
(12,819)

One of the benefit plans is funded by benefit payments made by the Company through the purchase of reinsurance contracts
that do not qualify as plan assets under ASC Topic 715. Accordingly that plan has no assets included in the information
presented above. The total asset value associated with the reinsurance contracts was $6.3 million and $6.1 million at March 28,
2020 and March 30, 2019, respectively. The total liability for this plan, which is included in the table above, was $9.2 million
and $9.4 million as of March 28, 2020 and March 30, 2019, respectively.

The accumulated benefit obligation for all plans was $27.9 million and $28.6 million for fiscal 2020 and 2019, respectively.
There were no plans where the plan assets were greater than the accumulated benefit obligation as of March 28, 2020 and
March 30, 2019.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The components of the change recorded in the Company's accumulated other comprehensive loss related to its defined benefit
plans, net of tax, are as follows (in thousands):

Balance as of April 1, 2017

Actuarial loss

Prior service cost

Plan settlements and curtailments

Balance as of March 31, 2018

Actuarial loss

Prior service cost

Plan settlements and curtailments

Balance as of March 30, 2019

Actuarial loss

Prior service cost

Plan settlements and curtailments
Balance as of March 28, 2020

(2,272)
1,922
(125)
152
(323)
(51)
(80)
(73)
(527)
614
(87)
(209)
(209)

The Company expects to amortize $0.3 million from accumulated other comprehensive loss to net periodic benefit cost during
fiscal 2021.

The weighted average rates used to determine the net periodic benefit costs and projected benefit obligations were as follows:

Discount rate

Rate of increased salary levels

Expected long-term rate of return on assets

2020

2019

2018

0.82%

1.74%

0.31%

0.97%

1.78%

0.75%

1.07%

1.73%

0.90%

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.

The Company has no other material obligation for post-retirement or post-employment benefits.

The Company's 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
the Company's defined benefit pension plan at fair value as of March 28, 2020. Using the same three-level valuation hierarchy
for disclosure of fair value measurements as described in Note 14, Derivatives and Fair Value Measurements, 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, 2020. 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.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Estimated future benefit payments are as follows:

(In thousands)

Fiscal 2021

Fiscal 2022

Fiscal 2023

Fiscal 2024

Fiscal 2025

Fiscal 2026-2030

1,372

1,526

1,311

1,366

1,207

7,251
14,033

The Company's contributions for fiscal 2021 are expected to be consistent with the current year.

16. COMMITMENTS AND CONTINGENCIES

The Company is a party to various legal proceedings and claims arising out of the ordinary course of its business. The
Company believes that except for those matters described below, there are no other proceedings or claims pending against it the
ultimate resolution of which could have a material adverse effect on its financial condition or results of operations. At each
reporting period, management evaluates whether or not a potential loss amount or a potential range of loss is probable and
reasonably estimable under ASC 450, Contingencies, for all matters. Legal costs are expensed as incurred.

Product Recalls

In August 2018, the Company issued a voluntary recall of certain whole blood collection kits sold to its Blood Center
customers in the U.S. The recall resulted from some collection sets' filters failing to adequately remove leukocytes from
collected blood. As a result of the recall, the Company's Blood Center customers may have conducted tests to confirm that the
collected blood was adequately leukoreduced, sold the collected blood labeled as non-leukoreduced at a lower price or
discarded the collected blood. As of March 28, 2020, the Company has recorded cumulative charges of $1.9 million associated
with this recall which consists of $0.1 million of charges associated with customer returns and inventory reserves and $1.8
million of charges associated with customer claims. Substantially all outstanding claims have been paid as of March 28, 2020.

17. CAPITAL STOCK

Stock Plans

On July 25, 2019 (the "Effective Date"), the Haemonetics Corporation 2019 Long-Term Incentive Compensation Plan (the
“2019 Equity Plan”) was approved and became effective. The 2019 Equity Plan permits the award of incentive stock options,
non-qualified stock options, stock appreciation rights ("SARs"), restricted stock, restricted stock units (including performance-
based restricted stock units) and other awards to the Company's key employees, non-employee directors and certain consultants
and advisors of the Company and its subsidiaries. The 2019 Equity Plan is administered by the Compensation Committee of the
Board of Directors (the “Committee”), which consists of three independent members of the Company's Board of Directors, and
is the successor to the Haemonetics Corporation 2005 Long-Term Incentive Compensation Plan, as amended (the "2005 Equity
Plan").

Upon the Effective Date, no further awards were granted under the 2005 Equity Plan; however, each outstanding award under
the 2005 Equity Plan will remain outstanding under that plan and continue to be governed under its terms and any applicable
award agreement. The maximum number of shares available for award under 2019 Equity Plan is 5,759,433, which consists of
2,700,000 shares of common stock authorized for issuance under the 2019 Equity Plan plus 3,059,433 shares of common stock
reserved for issuance under the 2005 Equity Plan that remained available for grant under the 2005 Plan as of the Effective Date.
Under the 2019 Equity Plan, any shares that are subject to the award of stock options or SARs will be counted against the
authorized share reserve as one share for every one share issued and any shares that are subject to awards other than stock
options, SARs or cash awards will be counted against the authorized share reserve as 2.76 shares for every one share granted.
Shares of common stock subject to outstanding grants under the 2005 Equity Plan as of the Effective Date that terminate,
expire, or are otherwise canceled without having been exercised will be added to the share reserve at the applicable 2019
Equity Plan ratios. The total shares available for future grant as of March 28, 2020 were 5,891,063.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Share-Based Compensation

Compensation cost related to share-based transactions is recognized in the consolidated financial statements based on fair
value. The total amount of share-based compensation expense, which is recorded on a straight line basis, is as follows:

(In thousands)

Selling, general and administrative expenses

Research and development

Cost of goods sold

Stock Options

2020

2019

2018

$18,022

$12,878

1,210

1,222

2,972

1,338

$20,454

$17,188

$9,960

2,114

951

$13,025

Options are granted to purchase common stock at prices as 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. Options generally vest in equal
installments over a four year period for employees and one year from grant for non-employee directors. Options expire not
more than 7 years from the date of the grant. The grant-date fair value of options, adjusted for estimated forfeitures, is
recognized as expense on a straight line basis over the requisite service period, which is generally the vesting period.
Forfeitures are estimated based on historical experience.

A summary of stock option activity for the fiscal year ended March 28, 2020 is as follows:

Outstanding at March 30, 2019

Granted

Exercised

Forfeited/Canceled

Outstanding at March 28, 2020

Exercisable at March 28, 2020

Vested or expected to vest at March 28, 2020

Options
Outstanding

1,013,403

207,892
(244,274)
(58,033)
918,988

354,968

836,674

Weighted
Average
Exercise Price
per Share

Weighted
Average
Remaining
Life (years)

Aggregate
Intrinsic
Value
($000’s)

48.55

98.72

42.21

66.73
60.43

40.46

57.93

4.48

40,902

4.30

37,471

3.15

21,499

3.88

36,170

The total intrinsic value of options exercised was $18.1 million, $19.4 million and $15.4 million during fiscal 2020, 2019 and
2018, respectively.

As of March 28, 2020, there was $8.4 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 2.5 years.

The fair value was estimated using the Black-Scholes option-pricing model based on the 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 the Company's common stock over the expected term of the option. 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.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

The assumptions utilized for option grants during the periods presented are as follows:

Volatility

Expected life (years)

Risk-free interest rate

Dividend yield

2020

2019

2018

28.2%

4.9

2.5%

0.0%

26.1%

4.9

2.8%

0.0%

24.2%

4.8

1.7%

0.0%

Grant-date fair value per Option

28.25

26.67

10.25

Restricted Stock Units

Restricted Stock Units ("RSUs") generally vest in equal installments over a four year period for employees and one year from
grant for non-employee directors. The grant-date fair value of RSUs, adjusted for estimated forfeitures, is recognized as
expense on a straight-line basis over the requisite service period, which is generally the vesting period. The fair market value of
RSUs is determined based on the market value of the Company’s shares on the date of grant.

A summary of RSU activity for the fiscal year ended March 28, 2020 is as follows:

Unvested at March 30, 2019

Granted

Vested

Forfeited

Unvested at March 28, 2020

Weighted
Average
Grant Date Fair
Value

57.07

102.32

54.58

63.91
75.34

309,222

105,943
(118,830)
(28,118)
268,217

The weighted-average grant-date fair value of RSUs granted and total fair value of RSUs vested are as follows:

Grant-date fair value per RSU

Fair value of RSUs vested

2020

2019

2018

102.32

54.58

94.55

40.04

41.87

33.03

As of March 28, 2020, there was $14.3 million of total unrecognized compensation cost related to non-vested restricted stock
units. This cost is expected to be recognized over a weighted average period of 2.4 years.

Performance Share Units

The grant date fair value of Performance Share Units ("PSUs"), adjusted for estimated forfeitures, is recognized as expense on
a straight line basis from the grant date through the end of the performance period. The value of these PSUs is generally based
on relative total shareholder return which equals total shareholder return for the Company as compared with total shareholder
return of the PSU comparison group, measured over a three year performance period. PSUs granted in fiscal 2020 have a
comparison group consisting of the Standard and Poor's ("S&P") Mid Cap 400 Index while PSUs granted in fiscal 2019 and
2018 have a comparison group consisting of the S&P Small Cap 600 and the S&P Mid Cap 400 indices. Depending on the
Company's relative performance during the performance period, a recipient of the award is entitled to receive a number of
ordinary shares equal to a percentage, ranging from 0% to 200%, of the award granted. 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 its comparison group. As a result, the Company may issue up to 586,222 shares
related to outstanding performance based awards.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

A summary of PSU activity for the fiscal year ended March 28, 2020 is as follows:

Weighted
Average
Grant Date Fair
Value

54.22

146.93

34.78

75.68
95.17

448,656

262,758
(389,806)
(28,497)
293,111

Unvested at March 30, 2019
Granted(1)
Vested(2)
Forfeited

Unvested at March 28, 2020
(1) Includes 172,879 shares issued for awards vested during fiscal 2020 based on achievement of performance metrics.
(2) Includes the vesting of 336,152 shares that were earned for awards granted in fiscal 2017 for various performance periods ending during fiscal 2020, based
on actual relative total shareholder return of 200%. Also includes the vesting of 53,654 shares that were earned in connection with the fiscal 2018 and 2017
internal metrics awards granted to the Company's chief executive officer for the performance period ended March 30, 2019 that were certified by the
Committee in May 2019 at 144.31% and 80.05%, respectively.

The Company uses the Monte Carlo model to estimate the probability of satisfying the performance criteria and the resulting
fair value of PSU awards with market conditions. The assumptions used in the Monte Carlo model for PSUs granted during
each fiscal year were as follows:

Expected stock price volatility

Peer group stock price volatility

Correlation of returns

2020

2019

2018

28.64%

29.77%

50.30%

27.07%

34.98%

47.57%

26.11%

34.13%

49.51%

The weighted-average grant-date fair value of PSUs granted and total fair value of PSUs vested are as follows:

Grant-date fair value per PSU

Fair value of PSUs vested

2020

2019

2017

146.93

34.78

115.64

29.20

46.49

—

As of March 28, 2020, there was $15.2 million of total unrecognized compensation cost related to non-vested performance
share units. This cost is expected to be recognized over a weighted average period of 1.8 years.

Employee Stock Purchase Plan

The Company has an Employee Stock Purchase Plan (the “Purchase Plan”) under which a maximum of 3,200,000 shares
(subject to adjustment for stock splits and similar changes) of common stock may be purchased by eligible employees.
Substantially all of its full-time employees are eligible to participate in the Purchase Plan.

The Purchase Plan provides for two “purchase periods” within each of its 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.

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

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:

Volatility

Expected life (months)

Risk-free interest rate

Dividend Yield

2020

2019

2018

34.7%

2.0%

0.0%

30.0%

2.3%

0.0%

22.6%

1.2%

0.0%

The weighted average grant date fair value of the six-month option inherent in the Purchase Plan was approximately $27.11,
$21.51 and $9.66 during fiscal 2020, 2019 and 2018, respectively.

18. 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. Historically, the Company's operating segments were
based primarily on geography. Effective as of March 31, 2019, the Company completed the transition of its operating structure
to three global business units and accordingly, reorganized its reporting structure to align with its three global business units
and the information that will be regularly reviewed by the Company's chief operating decision maker.

Following the reorganization, the Company's reportable segments are as follows:

•
Plasma
• Blood Center
• Hospital

Management measures and evaluates the operating segments based on operating income. Management excludes certain
corporate expenses from segment operating income. In addition, certain amounts that management considers to be non-
recurring or non-operational are excluded from segment operating income because management evaluates the operating results
of the segments excluding such items. These items include restructuring and turnaround costs, deal amortization, asset
impairments, accelerated depreciation, costs related to compliance with the European Union Medical Device Regulation, gains
and losses on asset dispositions, certain transaction costs and legal charges. Although these amounts are excluded from segment
operating income, as applicable, they are included in the reconciliations that follow. Management measures and evaluates the
Company's net revenues and operating income using internally derived standard currency exchange rates that remain constant
from year to year; therefore, segment information is presented on this basis.

Selected information by reportable segment is presented below:

(In thousands)

Net revenues

Plasma

Blood Center

Hospital

Net revenues by business unit

Service (1)

Effect of exchange rates
Net revenues
(1) Reflects revenue for service, maintenance and parts.

2020

2019

2018

460,637

426,781

325,661

194,604

980,902

19,830
(12,253)
988,479

335,557

190,821

953,159

19,906
(5,486)
967,579

363,254

347,373

178,116

888,743

20,574
(5,394)
903,923

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

(In thousands)

Segment operating income

Plasma

Blood Center

Hospital

2020

2019

2018

225,351

180,300

159,802

80,669

163,628

76,338

146,986

170,172

67,258

Restructuring and turnaround costs

PCS2 accelerated depreciation and related costs

Segment operating income
Corporate expenses (1)
Effect of exchange rates

Impairment of assets and other related charges (2)
Deal amortization

384,416
(257,229)
4,060
(1,941)
(26,013)
—
(44,125)
—
(3,011)
—
Operating income
56,157
(1) Reflects shared service expenses including quality and regulatory, customer and field service, research and development, manufacturing and supply chain,
as well as other corporate support functions.
(2) Includes a $1.9 million adjustment to fiscal 2020 Plasma revenue due to an accelerated charge incurred as a result of the divestiture of the Union, South
Carolina liquid solutions operation.
(3) Includes transaction costs and costs related to the resolution of customer damages associated with product recalls.
(4) Reflects gain on the sale of the Company's Braintree corporate headquarters.

European Medical Device Regulation costs
Other (3)
Gain on sale of assets (4)

420,266
(263,603)
8,367
(21,170)
(24,803)
(19,126)
(13,660)
—
(2,726)
—
83,545

465,822
(255,727)
7,920
(51,220)
(25,746)
(24,530)
(19,878)
(1,506)
133

8,083
103,351

(In thousands)

Depreciation and amortization

Plasma

Blood Center

Hospital

2020

2019

2018

38,429

38,074

8,513

63,347
110,289

9,623

61,721
109,418

47,985

11,439

29,823
89,247

Total depreciation and amortization (excluding impairment charges)

(In thousands)
Long-lived assets(1)

Plasma

Blood Center

Hospital

Total long-lived assets

(1) Long-lived assets are comprised of property, plant and equipment.

March 28,
2020

March 30,
2019

March 31,
2018

141,903

192,628

93,758

17,738
253,399

127,272

24,079
343,979

186,007

122,898

23,251
332,156

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

Selected information by principle operating regions is presented below:

(In thousands)
Long-lived assets(1)

United States

Japan

Europe

Asia

Other

Total long-lived assets

(1) Long-lived assets are comprised of property, plant and equipment.

(In thousands)

United States

Japan

Europe

Asia

Other

Net revenues

March 28,
2020

March 30,
2019

March 31,
2018

186,488

269,849

236,603

2,037

10,143

29,175

1,726

11,200

30,930

25,556
253,399

30,274
343,979

1,511

13,696

36,431

43,915
332,156

2020

2019

2018

646,204

606,845

548,731

72,218

153,347

109,295

7,415
988,479

69,908

164,504

118,700

7,622
967,579

67,319

164,226

115,127

8,520
903,923

Management reviews revenue based on the reportable segments noted above. Although these reportable segments are primarily
product-based, they differ from the Company’s product line revenues for Plasma products and services and Blood Center
products and services. Specifically, the Blood Center reportable segment includes plasma products utilized for collection in
blood centers primarily for transfusion purposes. Additionally, product line revenues also include service revenues which are
excluded from the reportable segments.

Net revenues by product line are as follows:

(In thousands)

Plasma products and services

Blood Center products and services

Hospital products and services
Net revenues

2020

2019

2018

537,231

252,829

198,419
988,479

501,837

269,203

196,539
967,579

435,956

284,902

183,065
903,923

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

19. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following is a roll-forward of the components of accumulated other comprehensive loss, net of tax, for the years ended
March 28, 2020 and March 30, 2019:

(In thousands)

Balance, March 31, 2018

Other comprehensive loss before reclassifications

Amounts reclassified from accumulated other
comprehensive loss(1)
Net current period other comprehensive loss
Balance, March 30, 2019

Other comprehensive (loss) income before reclassifications

Amounts reclassified from accumulated other
comprehensive loss(1)
Net current period other comprehensive (loss) income
Balance, March 28, 2020

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

Foreign
currency

Defined benefit
plans

Net Unrealized
Gain/loss on
Derivatives

Total

(16,405) $
(9,108)

—
(9,108)
(25,513) $
(5,587)

—
(5,587)
(31,100) $

(323) $
(139)

(65)
(204)
(527) $
524

(206)
318
(209) $

(2,263) $
(1,877)

(200)
(2,077)
(4,340) $
(10,111)

625
(9,486)
(13,826) $

(18,991)
(11,124)

(265)
(11,389)
(30,380)
(15,174)

419
(14,755)
(45,135)

HAEMONETICS CORPORATION AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)

20. SUMMARY OF QUARTERLY DATA (UNAUDITED)

(In thousands, except per share data)

Fiscal 2020

Net revenues

Gross profit

Operating (loss) income

Net (loss) income
Per share data:

Net (loss) income:

Basic

Diluted

(In thousands, except per share data)

Fiscal 2019

Net revenues

Gross profit

Operating income

Net (loss) income
Per share data:

Net (loss) income:

Basic

Diluted

Three months ended

June 29,
2019

September 28,
2019

December 28,
2019

March 28,
2020

238,451

252,566

115,906
$
(13,302) $
(8,479) $

127,000

49,739

37,486

(0.17) $
(0.17) $

0.74

0.72

258,970

128,050

40,907

29,895

0.59

0.58

Three months ended

June 30,
2018

September 29,
2018

December 29,
2018

229,347

83,244

$
5,293
(2,819) $

241,581

111,907

26,076

18,726

(0.05) $
(0.05) $

0.36

0.35

247,356

111,175

28,320

18,277

0.36

0.35

238,492

113,557

26,007

17,624

0.35

0.34

March 30,
2019

249,295

111,210

23,856

20,835

0.41

0.40

ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL
DISCLOSURE

None.

ITEM 9A. CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by this report, we conducted an evaluation under the supervision and with the participation
of our management, including our Chief Executive Officer and Chief Financial Officer (our principal executive officer and
principal financial officer, respectively) regarding the effectiveness of the design and operation of our disclosure controls and
procedures as defined in Rule 13a-15 of the Securities Exchange Act of 1934 (the “Exchange Act”). Based upon that evaluation,
the Chief Executive Officer and Chief Financial Officer concluded that, as of that date, our disclosure controls and procedures
were effective.

Reports on Internal Control

Management’s Annual Report on Internal Control over Financial Reporting

The management of the Company is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rules 13a-15(f) and 15d-15(f). The Company’s internal control system was
designed to provide reasonable assurance to the Company’s management and Board of Directors regarding the preparation and
fair presentation of published financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls become inadequate because
of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

The Company’s management assessed the effectiveness of its internal control over financial reporting as of March 28, 2020. In
making this assessment, the management used the criteria set forth by the Committee of Sponsoring Organizations of the
Treadway Commission (COSO) in Internal Control-Integrated Framework (2013 framework). Based on our assessment, the
Company's management believes that its internal controls over financial reporting were effective as of March 28, 2020.

Ernst & Young, LLP, an independent registered public accounting firm, has issued an attestation report on the effectiveness of
our internal control over financial reporting. This report, in which they expressed an unqualified opinion, is included below.

Changes in Internal Controls

There have been no changes in our internal control over financial reporting during the quarter ended March 28, 2020 that have
materially affected, or are likely to materially affect, our internal control over financial reporting.

Report of Independent Registered Public Accounting Firm

To the Stockholders and Board of Directors of Haemonetics Corporation

Opinion on Internal Control over Financial Reporting

We have audited Haemonetics Corporation and subsidiaries’ internal control over financial reporting as of March 28, 2020, based
on criteria established in Internal Control-Integrated Framework issued by the Committee of Sponsoring Organizations of the
Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Haemonetics Corporation and subsidiaries (the
Company) maintained, in all material respects, effective internal control over financial reporting as of March 28, 2020, based on
the COSO criteria.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States)
(PCAOB), the 2020 consolidated financial statements of the Company and our report dated May 20, 2020 expressed an unqualified
opinion thereon.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment
of the effectiveness of internal control over financial reporting included in the accompanying Management’s Annual Report on
Internal Control over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over
financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent
with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the
Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the
audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material
respects.

Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness
exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for
our opinion.

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability
of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted
accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain
to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets
of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial
statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are
being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable
assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that
could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also,
projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate
because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate

/s/ Ernst & Young LLP
Boston, Massachusetts
May 20, 2020

ITEM 9B. OTHER INFORMATION

None.

ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

PART III

We have adopted a Code of Ethics that applies to our Chief Executive Officer, Chief Financial Officer and senior financial
officers. The Code of Ethics is incorporated into the Company’s Code of Conduct located on the Company’s website
www.haemonetics.com, under the “About Haemonetics” menu, under the “Investor Relations Home” caption and under the
“Corporate Governance” sub-caption. A copy of the Code of Conduct will be provided free of charge by making a written
request and mailing it to our corporate headquarters offices to the attention of our Investor Relations Department. Any
amendments to, or waivers from, a provision of our Code of Ethics that applies to our Chief Executive Officer, Chief Financial
Officer or senior financial officers will be disclosed on the Company’s website promptly following the date of such amendment
or waiver.

The additional information required by this item is incorporated by reference to our Definitive Proxy Statement for our annual
meeting of shareholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal
year.

ITEM 11. EXECUTIVE COMPENSATION

The information required by this Item is incorporated by reference to our Definitive Proxy Statement for our annual meeting of
shareholders to be filed with the Securities and Exchange Commission within 120 days after the close of our fiscal year.
Notwithstanding the foregoing, the Compensation Committee Report included within the Proxy Statement is only being
“furnished” hereunder and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934.

ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED
STOCKHOLDER MATTERS

ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS AND DIRECTOR INDEPENDENCE

ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES

ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES

The following documents are filed as a part of this report:

Financial Statements are included in Part II of this report

PART IV

Financial Statements required by Item 8 of this Form

Report of Independent Registered Public Accounting Firm

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

Consolidated Balance Sheets

Consolidated Statements of Stockholders’ Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Schedules required by Article 12 of Regulation S-X

II Valuation and Qualifying Accounts

All other schedules have been omitted because they are not applicable or not required.

B)
incorporated herein by reference.

Exhibits required by Item 601 of Regulation S-K are listed in the Exhibit Index beginning at page 91, which is

EXHIBITS FILED WITH SECURITIES AND EXCHANGE COMMISSION

Number and Description of Exhibit

1. Articles of Organization
3A

Restated Articles of Organization of Haemonetics Corporation, reflecting Articles of Amendment dated August 23,
1993, August 21, 2006, July 26, 2018 and July 25, 2019 (filed as Exhibit 3.1 to the Company's Form 8-K dated July
29, 2019 and incorporated herein by reference).

By-Laws of the Company, as amended through July 25, 2019 (filed as Exhibit 3.3 to the Company's Form 8-K
dated July 29, 2019 and incorporated herein by reference).

2. Instruments Defining the Rights of Security Holders
4A

Specimen certificate for shares of common stock (filed as Exhibit 4B to the Company's Amendment No. 1 to
Form S-1 No. 33-39490 and incorporated herein by reference).

4B*

Description of Common Stock

3. Material Contracts
10A†

Haemonetics Corporation 2005 Long-Term Incentive Compensation Plan, reflecting amendments dated July 31,
2008, July 29, 2009, July 21, 2011, November 30, 2012, July 24, 2013, January 21, 2014, and July 23, 2014 (filed
as Exhibit 10.1 to the Company's Form 8-K dated July 25, 2014 and incorporated herein by reference).

10B†

10C†

10D†

10E†

10F†

10G†

10H†

10I†

10J†

10K†

10L†

10M†

10N†

Haemonetics Corporation 2019 Long-Term Incentive Compensation Plan (filed as Exhibit 10.1 to the Company's
Form 8-K dated July 29, 2019 and incorporated herein by reference).

Form of Non-Qualified Stock Option Award Agreement under 2005 Long Term-Incentive Compensation Plan for
Non-employee Directors (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended October 1, 2005
and incorporated herein by reference).

Form of Non-Qualified Stock Option Award Agreement under 2005 Long-Term Incentive Compensation Plan for
Employees (filed as Exhibit 10S to the Company's Form 10-K for the fiscal year ended March 30, 2010 and
incorporated herein by reference).

Form of Non-Qualified Stock Option Award Agreement under the 2005 Long-Term Incentive Compensation Plan
for Employees (adopted fiscal 2019) (filed as Exhibit 10.2 to the Company's Form 10-Q for the quarter ended June
30, 2018 and incorporated herein by reference).

Form of Non-Qualified Stock Option Award Agreement under 2019 Long-Term Incentive Compensation Plan
(adopted fiscal 2020) (filed as Exhibit 10.4 to the Company's Form 10-Q for the quarter ended September 28, 2019
and incorporated herein by reference).

Form of Restricted Stock Unit Award Agreement with Non-Employee Directors under 2005 Long-Term Incentive
Compensation Plan (fiscal 2019) (filed as Exhibit 10.5 to the Company's Form 10-Q for the quarter ended June 30,
2018 and incorporated herein by reference).

Form of Restricted Stock Unit Award Agreement with Non-Employee Directors under 2019 Long-Term Incentive
Compensation Plan (fiscal 2020) (filed as Exhibit 10.2 to the Company's Form 10-Q for the quarter ended
September 28, 2019 and incorporated herein by reference).

Form of Restricted Stock Unit Award Agreement with Employees under 2005 Long-Term Incentive Compensation
Plan (filed as Exhibit 10U to the Company's Form 10-K for the year ended April 3, 2010 and incorporated herein
by reference).

Form of Restricted Stock Unit Award Agreement with Employees under 2005 Long-Term Incentive Compensation
Plan (adopted fiscal 2019) (filed as Exhibit 10.4 to the Company's Form 10-Q for the quarter ended June 30, 2018
and incorporated herein by reference).

Form of Restricted Stock Unit Award Agreement with Employees under 2019 Long-Term Incentive Compensation
Plan (adopted fiscal 2020) (filed as Exhibit 10.3 to the Company's Form 10-Q for the quarter ended September 28,
2019 and incorporated herein by reference).

Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR
Metrics, adopted fiscal 2017) (filed as Exhibit 10AN to the Company's Form 10-K for the year ended March 31,
2018 and incorporated herein by reference).

Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR
Metrics, adopted fiscal 2018) (filed as Exhibit 10AO to the Company's Form 10-K for the year ended March 31,
2018 and incorporated herein by reference).

Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR
Metrics, adopted fiscal 2019) (filed as Exhibit 10.3 to the Company's Form 10-Q for the quarter ended June 30,
2018 and incorporated herein by reference).

10O†

10P†

10Q†

10R†

10S†

10T†

10U†

10V†

10W†

10X†

10Y

10Z‡

10AA

10AB

10AC

10AD

10AE

10AF

10AG

10AH

Form of Performance Share Unit Award Agreement Under 2005 Long-Term Incentive Compensation Plan (rTSR
Metrics, adopted fiscal 2020) (filed herewith as Exhibit 10AV to the Company's Form 10-K for the year ended
March 30, 2019 and incorporated herein by reference).

Form of Performance Share Unit Award Agreement Under 2019 Long-Term Incentive Compensation Plan (rTSR
Metrics, adopted fiscal 2020) (filed herewith as Exhibit 10.5 to the Company's Form 10-Q for the quarter ended
September 28, 2019 and incorporated herein by reference).

Amended and Restated 2007 Employee Stock Purchase Plan (as amended and restated on July 21, 2016
incorporated as Exhibit 10.2 to the Company’s Form 10-Q, for the quarter ended July 2, 2016 and incorporated
herein by reference).

Amended and Restated Non-Qualified Deferred Compensation Plan as amended and restated on July 24, 2013
(filed as Exhibit 10.2 to the Company's Form 8-K dated July 26, 2013 and incorporated herein by reference).

Employment Agreement effective as of May 16, 2016 between the Company and Christopher Simon (filed as
Exhibit 10.1 to the Company’s Form 8-K dated May 10, 2016 and incorporated herein by reference).

Executive Severance Agreement between the Company and Christopher A. Simon dated as of November 7, 2017
(filed as Exhibit 10.4 to the Company’s Form 10-Q dated for the quarter ended September 30, 2017 and
incorporated herein by reference).

Change in Control Agreement between the Company and Christopher A. Simon dated as of November 7, 2017
(filed as Exhibit 10.5 to the Company’s Form 8-K dated 10-Q dated for the quarter ended September 30, 2017 and
incorporated herein by reference).

Form of Executive Severance Agreement between the Company and executive officers other than Christopher A.
Simon (filed as Exhibit 10.2 to the Company’s Form 10-Q for the quarter ended September 30, 2017 and
incorporated herein by reference).

Form of Change in Control Agreement between the Company and executive officers other than Christopher A.
Simon (filed as Exhibit 10.3 to the Company’s Form 10-Q for the quarter ended September 30, 2017 and
incorporated herein by reference).

Haemonetics Corporation Worldwide Employee Bonus Plan (as amended and restated effective April 23, 2019)
(filed as Exhibit 10.1 to the Company's Form 8-K dated April 29, 2019 and incorporated herein by reference).

Form of Indemnification Agreement (as executed with each director and executive officer of the Company) (filed
as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended September 29, 2018 and incorporated herein by
reference).
Office Lease Agreement, dated as of December 18, 2018, by and between OPG 125 Summer Owner (DE) LLC and
the Company (filed as Exhibit 10.1 to the Company's Form 10-Q for the quarter ended December 29, 2018 and
incorporated herein by reference).

Lease dated August 26, 2019 by and between the Company and HRP Wood Road, LLC (filed as Exhibit 10.6 to the
Company's Form 10-Q for the quarter ended September 28, 2019 and incorporated herein by reference).

Lease dated July 17, 1990 between the Buncher Company and the Company of property in Pittsburgh,
Pennsylvania (filed as Exhibit 10-K to the Company's Form S-1 No. 33-39490 and incorporated herein by
reference).

First Amendment to lease dated July 17, 1990, made as of April 30, 1991 between Buncher Company and the
Company of property in Pittsburgh, Pennsylvania (filed as Exhibit 10AI to the Company's Form 10-Q for the
quarter ended December 28, 1996 and incorporated herein by reference).
Second Amendment to lease dated July 17, 1990, made as of October 18, 2000 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10AG to the Company's Form 10-K for the
year ended March 29, 2003 and incorporated herein by reference).

Third Amendment to lease dated July 17, 1990, made as of March 23, 2004 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10D to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).

Fourth Amendment to lease dated July 17, 1990, made as of March 12, 2008 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10E to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).

Fifth Amendment to lease dated July 17, 1990, made as of October 1, 2008 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10F to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).
Sixth Amendment to lease dated July 17, 1990 made as of January 8, 2010 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10G to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).

10AI

10AJ

10AK

10AL

Seventh Amendment to lease dated July 17, 1990, made as of March 31, 2011 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10H to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).

Eighth Amendment to lease dated July 17, 1990, made as of February 26, 2013 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10I to the Company's Form 10-K for the
year ended March 30, 2013 and incorporated herein by reference).

Ninth Amendment to lease dated July 17, 1990, made as of March 12, 2014 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10J to the Company's Form 10-K for the
year ended March 31, 2018 and incorporated herein by reference).

Tenth Amendment to lease dated July 17, 1990, made as of May 31, 2017 between Buncher Company and the
Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10K to the Company's Form 10-K for the
year ended March 31, 2018 and incorporated herein by reference).

10AM Eleventh Amendment to lease dated July 17, 1990, made as of March 2, 2018 between Buncher Company and the

Company for the property in Pittsburgh, Pennsylvania (filed as Exhibit 10L to the Company's Form 10-K for the
year ended March 31, 2018 and incorporated herein by reference).

10AN

10AO

10AP

10AQ

10AR

10AS

10AT

10AU

10AV

Lease dated February 21, 2000 between BBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de
Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec,
S.A. de C.V. with authorization of El Florido California, S.A. de C.V., for property located in Tijuana, Mexico
(filed as Exhibit 10J to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by
reference).
Amendment to Lease dated February 21, 2000 made as of July 25, 2008 between BBVA Bancomer Servicios, S.A.,
as Trustee of the “Submetropoli de Tijuana” Trust Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as
successor in interest to Ensatec, S.A. de C.V., for property located in Tijuana, Mexico (filed as Exhibit 10K to the
Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference).
Extension to Lease dated February 21, 2000, made as of August 14, 2011 between PROCADEF 1, S.A.P.I. de C.V.
and Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for
property located in Tijuana, Mexico (Spanish to English translation filed as Exhibit 10L to the Company's Form 10-
K for the year ended March 30, 2013 and incorporated herein by reference).
Amendment Letter to Lease dated February 21, 2000, made as of August 14, 2011 between BBVA Bancomer
Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de
R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for property located in Tijuana, Mexico (filed as
Exhibit 10M to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by
reference).

Notice of Assignment to Lease dated February 21, 2000, made as of February 23, 2012 between BBVA Bancomer
Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust and Haemonetics Mexico Manufacturing, S. de
R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V. for property located in Tijuana, Mexico (Spanish to
English translation filed as Exhibit 10N to the Company's Form 10-K for the year ended March 30, 2013 and
incorporated herein by reference).
Amendment to Lease dated February 21, 2000 made as of January 1, 2018 between MEGA2013, S.A.P.I. de CV (as
successor in interest to ABBVA Bancomer Servicios, S.A., as Trustee of the “Submetropoli de Tijuana” Trust) and
Haemonetics Mexico Manufacturing, S. de R.L. de C.V., as successor in interest to Ensatec, S.A. de C.V., for
property located in Tijuana, Mexico (filed as Exhibit 10R to the Company's Form 10-K for the year ended March
31, 2018 and incorporated herein by reference).
Lease Agreement effective December 3, 2007 between Mrs. Blanca Estela Colunga Santelices, by her own right,
and Pall Life Sciences Mexico, S.de R.L. de C.V. for the property located in Tijuana, Mexico (Spanish to English
translation filed as Exhibit 10W to the Company's Form 10-K for the year ended March 30, 2013 and incorporated
herein by reference).
Assignment to Lease Agreement effective December 3, 2007, made as of December 2, 2011 between Mrs. Blanca
Estela Colunga Santelices, by her own right, Pall Life Sciences Mexico, S.de R.L. de C.V., (“Assignor”) and
Haemonetics Mexico Manufacturing, S. de R.L. de C.V.as successor in interest to Pall Mexico Manufacturing S. de
R.L. de C.V., (“Assignee”) assigned in favor of the property located in Tijuana, Mexico (filed as Exhibit 10X to the
Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference).

Amendment to Lease Agreement effective December 3, 2007, made in 2017 between Mrs. Blanca Estela Colunga
Santelices, by her own right, Pall Life Sciences Mexico, S.de R.L. de C.V. (“Assignor”) and Haemonetics Mexico
Manufacturing, S. de R.L. de C.V. as successor in interest to Pall Mexico Manufacturing S. de R.L. de C.V.,
(“Assignee”) assigned in favor of the property located in Tijuana, Mexico (filed as Exhibit 10U to the Company's
Form 10-K for the year ended March 31, 2018 and incorporated herein by reference).

10AW Sublease Contract to Lease Agreement effective December 3, 2007, made as of December 3, 2011 between

Haemonetics Mexico Manufacturing, S. de R.L. de C.V. as successor in interest to Pall Mexico Manufacturing,
S.de R.L. de C.V., and Pall Life Sciences Mexico, S. de R.L. de C.V., for the property located in Tijuana, Mexico
(filed as Exhibit 10Y to the Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by
reference).

10AX

10AY

10AZ

Sublease Contract to Lease Agreement effective December 3, 2007, made as of February 23, 2012 between
Haemonetics Mexico Manufacturing, S. de R.L. de C.V. as successor in interest to Pall Mexico Manufacturing S.
de R.L. de C.V. and Ensatec, S.A. de C.V., for the property located in Tijuana, Mexico (filed as Exhibit 10Z to the
Company's Form 10-K for the year ended March 30, 2013 and incorporated herein by reference).
Lease dated September 19, 2013 between the Penang Development Corporation and Haemonetics Malaysia Sdn
Bhd of the property located in Penang, Malaysia (filed as Exhibit 10D to the Company's 10-Q for the quarter ended
June 28, 2014 and incorporated herein by reference).

Credit Agreement, dated as of June 15, 2018, by and among Haemonetics Corporation, the Lenders from time to
time party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent (filed as Exhibit 10.1 to the
Company’s Form 8-K dated July 18, 2018 and incorporated herein by reference).

4. Subsidiaries Certifications and Consents
21.1

Subsidiaries of the Company.

23.1

31.1

31.2

32.1

32.2

101**

104

Consent of the Independent Registered Public Accounting Firm.

Certification pursuant to Section 302 of Sarbanes-Oxley Act of 2002, of Christopher A. Simon, President and Chief
Executive Officer of the Company.

Certification pursuant to Section 302 of Sarbanes-Oxley of 2002 of William Burke, Executive Vice President, Chief
Financial Officer of the Company.

Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002, of Christopher A. Simon, President and Chief Executive Officer of the Company.

Certification Pursuant to 18 United States Code Section 1350, as adopted Pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002, of William Burke, Executive Vice President, Chief Financial Officer of the Company.

The following materials from Haemonetics Corporation on Form 10-K for the year ended March 28, 2020,
formatted in inline Extensible Business Reporting Language (XBRL) includes: (i) Consolidated Statements of
Income, (ii) Consolidated Statements of Comprehensive Income, (iii) Consolidated Balance Sheets,
(iv) Consolidated Statement of Stockholders' Equity, (v) Consolidated Statements of Cash Flows, and (vi) Notes to
Consolidated Financial Statements.
Cover Page Interactive Data File (embedded within the Inline XBRL document and contained in Exhibit 101).

* Document filed or furnished with this report.
† Agreement, plan, or arrangement related to the compensation of officers or directors.
‡ Confidential treatment has been requested as to portions of the exhibit. Confidential materials omitted and filed separately

with the Securities and Exchange Commission.

** In accordance with Rule 406T of Regulation S-T, the XBRL-related information in Exhibit 101 to this Form 10-Q is

deemed not filed or part of a registration statement or prospectus for purposes of sections 11 or 12 of the Securities Act, is
deemed not filed for the purposes of section 18 of the Exchange Act, and otherwise is not subject to liability under these
sections.

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the Registrant has duly caused this
report to be signed on its behalf by the undersigned, thereunto duly authorized.

SIGNATURES

HAEMONETICS CORPORATION

By: /s/ Christopher A. Simon
Christopher A. Simon
President, Chief Executive Officer and a Director

Date : May 20, 2020

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the Registrant and in the capacities and on the dates indicated.

Signature

Title

Date

/s/ Christopher A. Simon

Christopher A. Simon

President, Chief Executive Officer and a Director

May 20, 2020

(Principal Executive Officer)

/s/ William Burke

William Burke

/s/ Dan Goldstein

Dan Goldstein

/s/ Robert Abernathy

Robert Abernathy

/s/ Catherine Burzik

Catherine Burzik

/s/ Michael J. Coyle

Michael J. Coyle

/s/ Charles Dockendorff

Charles Dockendorff

/s/ Ronald Gelbman

Ronald Gelbman

/s/ Mark Kroll

Mark Kroll

/s/ Claire Pomeroy

Claire Pomeroy

/s/ Richard Meelia

Richard Meelia

/s/ Ellen Zane

Ellen Zane

Executive Vice President, Chief Financial Officer

May 20, 2020

(Principal Financial Officer)

Vice President, Corporate Controller

(Principal Accounting Officer)

Director

May 20, 2020

SCHEDULE II

HAEMONETICS CORPORATION

VALUATION AND QUALIFYING ACCOUNTS

(In thousands)

For Year Ended March 28, 2020

Allowance for Doubtful Accounts

For Year Ended March 30, 2019

Allowance for Doubtful Accounts

For Year Ended March 31, 2018

Allowance for Doubtful Accounts

Balance at
Beginning of
Fiscal Year

Charged to
Costs and
Expenses

Write-Offs
(Net of Recoveries)

Balance at End
of Fiscal Year

3,937

2,111

2,184

373

2,111

208

486

285

281

3,824

3,937

2,111

SHARE PRICE PERFORMANCE

The following graph compares the cumulative five-year total return on Haemonetics Corporation’s common stock relative to the
cumulative total returns of the Standard & Poor’s (“S&P”) 500 Index, the S&P Health Care Equipment Index, the S&P MidCap 400 Index
and the S&P SmallCap 600 Index. An investment of $100 (with reinvestment of all dividends) is assumed to have been made in our
common stock and in each of the indices on March 27, 2015 and the relative performance is tracked through March 28, 2020.
Measurement points below reflect the last trading day of each respective fiscal year of Haemonetics Corporation, with results rounded to
the nearest whole dollar. We include both the S&P MidCap 400 Index and the S&P SmallCap 600 Index for comparison as they are used
in measuring performance under certain equity compensation grants made to Haemonetics Corporation’s executives (Haemonetics
Corporation was moved from the S&P SmallCap 600 Index to the S&P MidCap 400 Index during fiscal 2019).

COMPARISON OF 5 YEAR CUMULATIVE TOTAL RETURN
Among Haemonetics Corporation, S&P 500 Index, S&P Health Care Equipment Index,
S&P MidCap 400 Index and S&P SmallCap 600 Index

$250

$200

$150

$100

$50

March 28, 2015

March 28, 2016

March 28, 2017

March 28, 2018

March 28, 2019

March 28, 2020

Haemonetics Corporation

S&P 500 Index

S&P MidCap 400 Index

S&P SmallCap 600 Index

S&P Health Care Equipment Index

Haemonetics Corp.

S&P 500 Index

S&P Health Care Equipment Index

S&P MidCap 400 Index
S&P SmallCap 600 Index

3/27/2015

4/1/2016

3/31/2017

3/29/2018

3/29/2019

3/27/2020

$ 100

$ 100
$ 100

$ 103

$
$

98
98

$
$

120

129

118
122

$
$

165

136

161

131
137

$
$

198

149

187

134
139

$
$

228

137

161

102
101

Note: The stock price performance included in this graph is not necessarily indicative of future stock price performance. This graph
shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
or otherwise subject to the liabilities of that section nor shall it be deemed incorporated by reference in any filing under the
Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing.

LEADERSHIP

BOARD OF DIRECTORS1

Richard J. Meelia (Chairman)
Principal, Meelia Ventures, LLC; Retired
Chairman, President and Chief Executive
Officer, Covidien plc

Michael J. Coyle
Executive Vice President and Group
President, Cardiac and Vascular Group,
Medtronic plc

Mark W. Kroll, Ph.D.
Adjunct Full Professor, University of
Minnesota; Retired Senior Executive Officer,
St. Jude Medical, Inc.

Robert E. Abernathy
Retired Chairman and Chief
Executive Officer, Halyard Health, Inc.

Charles J. Dockendorff
Retired Executive Vice President, Chief
Financial Officer, Covidien plc

Claire Pomeroy, M.D., M.B.A.
President, Albert and Mary Lasker
Foundation

Catherine M. Burzik
President and Chief Executive Officer, CFB
Interests, LLC; former President and Chief
Executive Officer, Kinetic Concepts, Inc.

Ronald G. Gelbman
Retired Worldwide Chair of the
Pharmaceuticals, Health Systems and
Diagnostics Group, Johnson & Johnson

Ellen M. Zane
CEO Emeritus and Vice Chair of the Board
of Trustees at Tufts Medical Center and
Floating Hospital for Children

1 Christopher A. Simon, President and Chief Executive Officer of Haemonetics Corporation, is also a director.

EXECUTIVE OFFICERS

Christopher A. Simon
President, Chief Executive Officer and a
Director

Anila Lingamneni
Executive Vice President, Chief Technology Officer

Michelle L. Basil
Executive Vice President, General Counsel

Josep L. Llorens
Senior Vice President, Global Manufacturing and Supply Chain

William P. Burke
Executive Vice President, Chief Financial
Officer

Jacqueline D. Scanlan
Senior Vice President, Human Resources

CORPORATE DIRECTORY

Corporate Headquarters
Haemonetics Corporation
125 Summer Street
Boston, MA 02110
Phone: 781.848.7100
Website: www.haemonetics.com

For a complete list of Haemonetics
Corporation’s locations and addresses,
please visit: www.haemonetics.com

INVESTOR INFORMATION

Annual Meeting of Shareholders
The 2020 Annual Meeting will be held:
Tuesday, July 21, 2020 at 8:00 AM ET
Haemonetics Corporation
125 Summer Street
Boston, MA 02110

Independent Registered Public
Accounting Firm
Ernst & Young LLP
200 Clarendon Street
Boston, MA 02116

Investor Relations
Olga Guyette
Director, Investor Relations
Haemonetics Corporation
125 Summer Street
Boston, MA 02110
Phone: 781.848.7100
Email: olga.guyette@haemonetics.com

Trademarks
For a complete list of Haemonetics
Corporation’s trademarks, please visit
www.haemonetics.com/trademarks

NYSE Certification
In 2019, Haemonetics submitted to the New
York Stock Exchange the required annual
CEO certification stating that the CEO was
not aware of any violation by the Company
of the NYSE corporate governance listing
standards

Stock Listing
Haemonetics Corporation stock is traded on
the New York Stock Exchange (NYSE:
HAE)

Transfer Agent and Registrar
Inquiries concerning the transfer of shares,
lost stock certificates, duplicate mailings or
changes of address should be directed to:

Computershare Shareholder Services
462 S. 4th Street, Suite 1600
Louisville, KY 40202
Phone: 800.368.5948
Website: www.computershare.com/investor