Business Segment Data

9 Months Ended

Mar. 31, 2016

Segment Reporting [Abstract]

Business Segment Data

Note 18 – Business Segment Data

Effective July 1, 2015, we revised our business segments in order to better align them with our strategic approach to the markets and customers we serve. Prior period segment amounts throughout the condensed consolidated financial statements have been reclassified to the new segment structure. The reclassification of historical business segment information had no impact on our basic financial statements.

The accounting principles applied at the operating segment level in determining income (loss) from operations are the same as those applied at the consolidated financial statement level. Goodwill was allocated to our segments based on the relative fair value of the components of our reporting units that were affected by our change in segments. Refer to Note 8 – Goodwill and Intangible Assets, Net for more information.

We design and engineer connected products and solutions, including audio, visual and infotainment systems, enterprise automation solutions and software services for consumers, automakers, and enterprises worldwide. Our chief operating decision maker evaluates performance and allocates resources based on net sales, operating income and working capital in each of the operating segments which are also our reporting segments.

Connected Car

Our Connected Car segment designs, manufactures and markets infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. Our scalable infotainment platforms deliver enhanced and connected capabilities to the car, including intelligent high-performance navigation with embedded solutions for multimedia, premium entertainment tuners, and on-board and off-board connectivity that addresses a wide range of vehicle categories. Leveraging a software-driven computer platform, we offer an integrated suite of technologies that extends beyond infotainment to encompass telematics, connected safety, and over-the-air update capabilities.  We also offer a comprehensive suite of automotive cyber security solutions through a multi-layer architecture that can protect not only future vehicles, but connected cars on the road today.

Lifestyle Audio

Our Lifestyle Audio segment designs, manufactures and markets car audio systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers, as well as a wide range of mid-to high-end loudspeaker and electronics for home, multimedia and mobile applications. We believe that we continue to redefine audio excellence for the home, the car and on-the-go listening. Our Lifestyle Audio products are marketed worldwide under renowned brand names including AKG^®, Harman/Kardon^®, Infinity^®, JBL^®, JBL Professional, Lexicon^®, Mark Levinson^® and Revel^®.

Professional Solutions

Our Professional Solutions segment designs, manufactures and markets an extensive range of audio, lighting, video and control and automation solutions for commercial, enterprise and public space applications, including concert halls, stadiums, airports, conference centers, educational institutions, command centers and houses of worship. We design products for recording, broadcast, cinema and music reproduction applications such as loudspeakers, power amplifiers, digital signal processors, microphones, headphones, mixing consoles, lighting, video and control and automation solutions equipment. We also provide high-quality products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. Our Professional Solutions segment products are marketed globally under a number of brand names including AKG, AMX^®, Crown^®, JBL Professional, Lexicon, Martin^®, Soundcraft^® and Studer^®.

Connected Services

Our Connected Services segment includes the operating results of STC, Redbend, and our automotive services businesses. Our Connected Services segment creates innovative software solutions that integrate design, mobility, cloud and analytics and brings the benefits of the connected world to the automotive, retail, mobile, healthcare, media and consumer electronics markets. Our Connected Services segment offers services and solutions in order to help customers understand and visualize their data so they can make faster and more informed decisions, cloud-enable their businesses, support technical agility and exploit omni-channel strategies.

Other

Other includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and our corporate brand identity campaign.

The following table reports Net sales and Operating income (loss) by each reporting segment for the three and nine months ended March 31, 2016 and 2015:

	Three Months Ended March 31,						Nine months ended March 31,
	2016			2015			2016			2015
Net sales:
Connected Car	$	766,757		$	730,216		$	2,259,209		$	2,152,793
Lifestyle Audio		472,781			424,482			1,560,210			1,349,922
Professional Solutions		232,016			242,329			727,993			764,124
Connected Services		166,015			67,166			509,441			208,370
Other		-			-			39			1,455
Eliminations**		(9,487	)		-			(25,765	)		-
Total	$	1,628,082		$	1,464,193		$	5,031,127		$	4,476,664
Operating income (loss):
Connected Car	$	95,617		$	73,661		$	267,102		$	223,007
Lifestyle Audio		60,574			44,626			191,283			148,475
Professional Solutions		2,667			16,043			52,304			75,128
Connected Services		11,799			6,303			21,857			26,912
Other		(35,304	)		(49,126	)		(106,573	)		(117,475	)
Total	$	135,353		$	91,507		$	425,973		$	356,047

	Three Months Ended March 31, 2016
	Net Sales			Eliminations **			Third Party Sales
Net sales:
Connected Car	$	766,757		$	-		$	766,757
Lifestyle Audio		472,781			(547	)		472,234
Professional Solutions		232,016			(465	)		231,551
Connected Services		166,015			(8,475	)		157,540
Other		-			-			-
Eliminations**		(9,487	)		9,487			-
Total	$	1,628,082		$	-		$	1,628,082

	Nine months ended March 31, 2016
	Net Sales			Eliminations **			Third Party Sales
Net sales:
Connected Car	$	2,259,209		$	-		$	2,259,209
Lifestyle Audio		1,560,210			(1,802	)		1,558,408
Professional Solutions		727,993			(1,834	)		726,159
Connected Services		509,441			(22,129	)		487,312
Other		39			-			39
Eliminations**		(25,765	)		25,765			-
Total	$	5,031,127		$	-		$	5,031,127

** Represents elimination of inter-segment activity.