Varex Imaging CorpVREX

Varex Imaging Corp Segments Disclosure

10-KFiled Nov 18, 20253 min read
SEGMENT INFORMATION
    The Company has two reportable operating segments: Medical and Industrial, which aligns with how its CEO, who is the Company's Chief Operating Decision Maker (“CODM”) reviews the Company’s performance. The segments align the Company’s products and service offerings with customer use in medical and industrial markets and are consistent with how the Company’s CEO evaluates the business for the allocation of resources. The CODM allocates resources to and evaluates the financial performance of each operating segment primarily based on revenues and gross profit. The operating and reportable segment structure provides alignment between business strategies and operating results.
Description of Segments
    The Medical segment designs, manufactures, sells, and services X-ray imaging components, including X-ray tubes, digital detectors and accessories, ionization chambers, high voltage connectors, image-processing software and workstations, 3D reconstruction software, computer-aided diagnostic software, automatic exposure control devices, generators, and heat exchangers.
These components are used in a range of medical imaging applications including CT, mammography, oncology, cardiac, surgery, dental, and other diagnostic radiography uses.
    The Industrial segment designs, develops, manufactures, sells and services X-ray imaging products for use in a number of markets, including security applications for cargo screening at ports and borders, baggage screening at airports, and nondestructive testing, irradiation, and inspection applications used in a number of other vertical markets, as well as X-ray imaging systems for industrial applications. The Company's industrial products include Linatron® X-ray linear accelerators, non-intrusive cargo inspection systems, X-ray tubes, digital detectors, high voltage connectors, and coolers. In addition, the Company licenses proprietary image-processing and detection software designed to work with other Varex products to provide packaged sub-assembly solutions to industrial customers.
    Accordingly, the following information is provided for purposes of achieving an understanding of operations, but it may not be indicative of the financial results of the reported segments were they independent organizations. In addition, comparisons of the Company’s operations to similar operations of other companies may not be meaningful.
    Information related to the Company’s segments is as follows:
Fiscal Years
(In millions)202520242023
Revenues, net
Medical$592.6 $581.7 $673.3 
Industrial252.0 229.3 220.1 
Total revenues844.6 811.0 893.4 
Cost of revenues
Medical392.5 405.0 467.8 
Industrial161.6 149.1 135.3 
Total cost of revenues554.1 554.1 603.1 
Gross profit
Medical200.1 176.7 205.5 
Industrial90.4 80.2 84.8 
Total gross profit290.5 256.9 290.3 
Total operating expenses318.3 224.8 213.2 
Interest and other expense, net(31.4)(27.1)(45.8)
(Loss) income before taxes(59.2)5.0 31.3 
Income tax expense (benefit)10.7 53.3 (16.6)
Net (loss) income(69.9)(48.3)47.9 
Less: Net income attributable to noncontrolling interests0.4 0.5 0.5 
Net (loss) income attributable to Varex$(70.3)$(48.8)$47.4 
    The Company does not disclose total assets by segment as this information is not provided to the CODM.
Geographic Information    
    The following table summarizes the Company’s long-lived assets by geographic region:
(In millions)October 3, 2025September 27, 2024
Americas$102.7 $109.2 
EMEA40.9 27.6 
APAC14.2 16.6 
Total property, plant, and equipment, net$157.8 $153.4 
    See Note 2, Revenue, for disaggregation of revenue by geographic region and country.
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About Segments Disclosures

Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.

Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.

Other Available Disclosures

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