Segment Information

3 Months Ended

Sep. 30, 2023

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 fiscal year ended June 30, 2023. 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.

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

	Three Months Ended September 30,
	2023		2022
Net revenue by segment
Sleep and Respiratory Care	$	963,037	$	844,443
Software as a Service	139,284		105,851
Total	$	1,102,321	$	950,294
Depreciation and amortization by segment
Sleep and Respiratory Care	$	20,519	$	19,767
Software as a Service	2,760		1,913
Amortization of acquired intangible assets and corporate assets	21,655		14,593
Total	$	44,934	$	36,273
Net operating profit by segment
Sleep and Respiratory Care	$	390,415	$	352,560
Software as a Service	31,258		24,441
Total	$	421,673	$	377,001
Reconciling items
Corporate costs	$	103,378	$	86,938
Amortization of acquired intangible assets	21,387		14,324
Astral field safety notification expenses (1)	7,911		—
Interest expense (income), net	14,957		7,134
Loss attributable to equity method investments	3,895		2,028
(Gain) loss on equity investments	602		3,280
Other, net	(2,648)		1,504
Income before income taxes	$	272,191	$	261,793

(1)    The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.