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Segment Information
3 Months Ended
Sep. 30, 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, 2022. 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.
Additionally, effective in the first quarter of fiscal year 2023, we updated the extent of allocation and method of attribution of certain shared costs that are principally managed at the corporate level as part of our evaluation of segment operating performance. As a result, certain shared administrative costs, including shared IT, legal and other administrative functions, which were previously included in segment operating results, are now reported in Corporate costs within our reconciliation of segment operating profit to income before income taxes. The financial information presented herein reflects the impact of the preceding reporting change for all periods presented.
The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):
Three Months Ended
September 30,
20222021
Net revenue by segment
Total Sleep and Respiratory Care$844,443 $806,499 
Software as a Service105,851 97,516 
Total$950,294 $904,015 
Depreciation and amortization by segment
Sleep and Respiratory Care$19,767 $18,017 
Software as a Service1,913 1,701 
Amortization of acquired intangible assets and corporate assets14,593 19,384 
Total$36,273 $39,102 
Net operating profit by segment
Sleep and Respiratory Care$352,560 $336,996 
Software as a Service24,441 21,907 
Total$377,001 $358,903 
Reconciling items
Corporate costs$86,938 $78,224 
Amortization of acquired intangible assets14,324 18,766 
Interest expense (income), net7,134 5,360 
Loss attributable to equity method investments2,028 1,386 
(Gain) loss on equity investments3,280 (5,612)
Other, net1,504 1,991 
Income before income taxes$261,793 $258,788