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Segment Information | 12 Months Ended
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Jun. 30, 2020
Segment Information [Abstract] |
Segment Information | (15) Segment Information We have 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 sales and income from operations. The accounting policies of the segments are the same as those described in note 2 – significant accounting policies. Segment net sales 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 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, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2020, 2019 and 2018 (in thousands):
|  | 2020 |  | 2019 |  | 2018
Revenue by segment |  |  |  |  |  |  |  |  |
Total Sleep and Respiratory Care |  | $ | 2,602,381 |  | $ | 2,330,783 |  | $ | 2,183,193
Software as a Service |  |  | 356,734 |  |  | 281,137 |  |  | 157,003
Deferred revenue fair value adjustment* |  |  | (2,102) |  |  | (5,348) |  |  | -
Total Software as a Service |  |  | 354,632 |  |  | 275,789 |  |  | 157,003
Total |  | $ | 2,957,013 |  | $ | 2,606,572 |  | $ | 2,340,196
Depreciation and amortization by segment |  |  |  |  |  |  |  |  |
Sleep and Respiratory Care |  | $ | 69,444 |  | $ | 70,094 |  | $ | 70,366
Software as a Service |  |  | 3,850 |  |  | 3,250 |  |  | 809
Amortization of acquired intangible assets and corporate costs |  |  | 81,556 |  |  | 77,451 |  |  | 48,785
Total |  | $ | 154,850 |  | $ | 150,795 |  | $ | 119,960
Net operating profit by segment |  |  |  |  |  |  |  |  |
Sleep and Respiratory Care |  | $ | 934,697 |  | $ | 766,068 |  | $ | 656,311
Software as a Service |  |  | 82,152 |  |  | 74,886 |  |  | 55,224
Total |  | $ | 1,016,849 |  | $ | 840,954 |  | $ | 711,535
Reconciling items |  |  |  |  |  |  |  |  |
Corporate costs |  | $ | 125,993 |  | $ | 124,682 |  | $ | 104,889
Amortization of acquired intangible assets |  |  | 79,695 |  |  | 74,938 |  |  | 46,383
Litigation settlement expenses |  |  | (600) |  |  | 41,199 |  |  | -
Restructuring expenses |  |  | - |  |  | 9,401 |  |  | 18,432
Acquisition related expenses |  |  | - |  |  | 6,123 |  |  | -
Deferred revenue fair value adjustment* |  |  | 2,102 |  |  | 5,348 |  |  | -
Interest expense (income), net |  |  | 39,356 |  |  | 33,857 |  |  | 11,977
Loss attributable to equity method investments |  |  | 25,058 |  |  | 15,833 |  |  | -
Other, net |  |  | 12,157 |  |  | 10,726 |  |  | 8,542
Income before income taxes |  | $ | 733,088 |  | $ | 518,847 |  | $ | 521,312
* The deferred revenue fair value adjustment is a purchase price accounting adjustment related to MatrixCare which was acquired on November 13, 2018. The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2020, 2019 and 2018 (in thousands):
|  | 2020 |  | 2019 |  | 2018
U.S., Canada and Latin America |  |  |  |  |  |  |  |  |
Devices |  | $ | 792,766 |  | $ | 743,066 |  | $ | 689,603
Masks and other |  |  | 779,561 |  |  | 677,430 |  |  | 600,480
Total Sleep and Respiratory Care |  | $ | 1,572,327 |  | $ | 1,420,496 |  | $ | 1,290,083
Software as a Service |  |  | 354,632 |  |  | 275,789 |  |  | 157,003
Total |  | $ | 1,926,959 |  | $ | 1,696,285 |  | $ | 1,447,086
Combined Europe, Asia and other markets |  |  |  |  |  |  |  |  |
Devices |  | $ | 715,056 |  | $ | 618,525 |  | $ | 613,978
Masks and other |  |  | 314,998 |  |  | 291,762 |  |  | 279,133
Total Sleep and Respiratory Care |  | $ | 1,030,054 |  | $ | 910,287 |  | $ | 893,111
Global revenue |  |  |  |  |  |  |  |  |
Devices |  | $ | 1,507,822 |  | $ | 1,361,591 |  | $ | 1,303,581
Masks and other |  |  | 1,094,559 |  |  | 969,192 |  |  | 879,613
Total Sleep and Respiratory Care |  | $ | 2,602,381 |  | $ | 2,330,783 |  | $ | 2,183,194
Software as a Service |  |  | 354,632 |  |  | 275,789 |  |  | 157,003
Total |  | $ | 2,957,013 |  | $ | 2,606,572 |  | $ | 2,340,197
Revenue information by geographic area for the years ended June 30, 2020, 2019 and 2018 is summarized below (in thousands):
|  | 2020 |  | 2019 |  | 2018
United States |  | $ | 1,828,575 |  | $ | 1,588,655 |  | $ | 1,345,212
Rest of the World |  |  | 1,128,438 |  |  | 1,017,917 |  |  | 994,984
Total |  | $ | 2,957,013 |  | $ | 2,606,572 |  | $ | 2,340,196
Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2020, 2019 and 2018, is summarized below (in thousands):
|  | 2020 |  | 2019 |  | 2018
United States |  | $ | 164,155 |  | $ | 149,706 |  | $ | 142,337
Australia |  |  | 162,490 |  |  | 165,425 |  |  | 173,394
Singapore |  |  | 39,977 |  |  | 19,465 |  |  | 17,657
Rest of the World |  |  | 50,713 |  |  | 52,864 |  |  | 53,162
Total |  | $ | 417,335 |  | $ | 387,460 |  | $ | 386,550

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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