Segment Information

9 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Segment Information

Segment Information

We have quantitatively and qualitatively determined that we operate in two operating segments, which are the Sleep and Respiratory Care segment and the SaaS segment.

We evaluate the performance of our segments based on net revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the year ended June 30, 2021. Segment net revenues and segment income from operations do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed.

Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, net interest expense (income), loss attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our Chief Operating Decision Maker evaluate the operating segments using discrete asset information.

The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):

	Three Months Ended March 31,				Nine Months Ended March 31,
	2022		2021		2022		2021
Net revenue by segment
Total Sleep and Respiratory Care	$	763,358	$	674,931	$	2,365,697	$	2,042,909
Software as a Service	101,142		93,836		297,693		277,813
Total	$	864,500	$	768,767	$	2,663,390	$	2,320,722
Depreciation and amortization by segment
Sleep and Respiratory Care	$	21,008	$	13,589	$	58,372	$	39,979
Software as a Service	1,863		1,491		5,421		3,599
Amortization of acquired intangible assets and corporate assets	19,435		24,908		58,405		76,456
Total	$	42,306	$	39,988	$	122,198	$	120,034
Net operating profit by segment
Sleep and Respiratory Care	$	267,808	$	253,693	$	847,589	$	763,534
Software as a Service	23,649		23,052		68,668		70,929
Total	$	291,457	$	276,745	$	916,257	$	834,463
Reconciling items
Corporate costs	$	38,480	$	34,950	$	114,922	$	106,307
Amortization of acquired intangible assets	18,712		18,369		56,446		57,443
Restructuring expenses	—		—		—		8,673
Interest expense (income), net	5,462		5,823		16,770		18,341
Loss attributable to equity method investments	2,627		4,969		5,927		9,895
(Gain) loss on equity investments	1,735		(4,666)		527		(9,442)
Other, net	(1,878)		(705)		(729)		(1,205)
Income before income taxes	$	226,319	$	218,005	$	722,394	$	644,451