Segment Information (Tables)

9 Months Ended

Mar. 31, 2024

Schedule of Revenue by Segment and Reconciling Items

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,
	2024		2023		2024		2023
Net revenue by segment
Sleep and Respiratory Care	$	1,049,023	$	980,116	$	3,029,915	$	2,741,541
Software as a Service	147,957		136,782		432,187		359,395
Total	$	1,196,980	$	1,116,898	$	3,462,102	$	3,100,936

Depreciation and amortization by segment
Sleep and Respiratory Care	$	21,832	$	21,201	$	64,307	$	59,501
Software as a Service	2,358		2,375		7,843		6,385
Amortization of acquired intangible assets and corporate assets	19,284		20,780		61,042		52,510
Total	$	43,474	$	44,356	$	133,192	$	118,396

Net operating profit by segment
Sleep and Respiratory Care	$	456,182	$	381,143	$	1,240,061	$	1,079,682
Software as a Service (1)	38,754		32,201		111,846		85,908
Total	$	494,936	$	413,344	$	1,351,907	$	1,165,590

Reconciling items
Corporate costs	$	101,336	$	92,163	$	274,505	$	248,129
Amortization of acquired intangible assets	19,016		20,510		60,235		51,702
Restructuring expenses	—		—		64,228		—
Masks with magnets field safety notification expenses (2)	—		—		6,351		—
Astral field safety notification expenses (3)	—		—		7,911		—
Acquisition related expenses	—		—		—		9,157
Interest expense (income), net	11,026		14,964		39,787		32,436
(Gain) Loss attributable to equity method investments	(440)		183		2,716		5,037
(Gain) loss on equity investments	(13,919)		(6,418)		(11,429)		(11,506)
Other, net	2,496		2,564		537		5,773
Income before income taxes	$	375,421	$	289,378	$	907,066	$	824,862

(1) During the three and nine months ended March 31, 2024, we recorded $2.0 million of operating lease right-of-use asset impairments within our SaaS segment. The impairments related to leases for office space and were recorded within net operating profit.

(2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets.

(3) 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.