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Segment Information
 6 Months Ended
Dec. 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, 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, acquisition related expenses, 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
December 31,		Six Months Ended
December 31,
2022202120222021
Net revenue by segment
Total Sleep and Respiratory Care$916,981 $795,840 $1,761,424 $1,602,339 
Software as a Service116,763 99,034 222,614 196,551 
Total$1,033,744 $894,874 $1,984,038 $1,798,890 
Depreciation and amortization by segment
Sleep and Respiratory Care$18,533 $19,347 $38,301 $37,362 
Software as a Service2,097 1,857 4,009 3,558 
Amortization of acquired intangible assets and corporate assets17,137 19,585 31,730 38,971 
Total$37,767 $40,789 $74,040 $79,891 
Net operating profit by segment
Sleep and Respiratory Care$373,367 $324,469 $726,027 $661,465 
Software as a Service28,814 22,336 53,581 44,243 
Total$402,181 $346,805 $779,608 $705,708 
Reconciling items
Corporate costs$96,707 $79,125 $183,326 $157,350 
Amortization of acquired intangible assets16,868 18,969 31,193 37,734 
Acquisition related expenses
8,412 — 9,157 — 
Interest expense (income), net10,338 5,948 17,472 11,308 
Loss attributable to equity method investments2,826 1,914 4,853 3,300 
(Gain) loss on equity investments(8,368)4,404 (5,088)(1,208)
Other, net1,707 (841)3,211 1,150 
Income before income taxes$273,691 $237,286 $535,484 $496,074