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Segment Information | 12 Months Ended
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Jun. 30, 2021
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 including stock-based compensation, amortization expense of acquired intangibles, restructuring expenses, litigation settlement expenses, acquisition related expenses, deferred revenue fair value adjustment, net interest expense, loss attributable to equity method 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, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2021, 2020 and 2019 (in thousands):
|  | 2021 |  | 2020 |  | 2019
Net revenue by segment |  |  |  |  |  |  |  |  |
Total Sleep and Respiratory Care |  | $ | 2,823,235 |  | $ | 2,602,381 |  | $ | 2,330,783
Software as a Service |  |  | 373,590 |  |  | 356,734 |  |  | 281,137
Deferred revenue fair value adjustment (1) |  |  | - |  |  | (2,102) |  |  | (5,348)
Total Software as a Service |  |  | 373,590 |  |  | 354,632 |  |  | 275,789
Total |  | $ | 3,196,825 |  | $ | 2,957,013 |  | $ | 2,606,572
Depreciation and amortization by segment |  |  |  |  |  |  |  |  |
Sleep and Respiratory Care |  | $ | 73,151 |  | $ | 69,444 |  | $ | 70,094
Software as a Service |  |  | 5,230 |  |  | 3,850 |  |  | 3,250
Amortization of acquired intangible assets and corporate assets |  |  | 78,377 |  |  | 81,556 |  |  | 77,451
Total |  | $ | 156,758 |  | $ | 154,850 |  | $ | 150,795
Net operating profit by segment |  |  |  |  |  |  |  |  |
Sleep and Respiratory Care |  | $ | 1,036,712 |  | $ | 934,697 |  | $ | 766,068
Software as a Service |  |  | 93,037 |  |  | 82,152 |  |  | 74,886
Total |  | $ | 1,129,749 |  | $ | 1,016,849 |  | $ | 840,954
Reconciling items |  |  |  |  |  |  |  |  |
Corporate costs |  | $ | 141,193 |  | $ | 125,993 |  | $ | 124,682
Amortization of acquired intangible assets |  |  | 76,205 |  |  | 79,695 |  |  | 74,938
Restructuring expenses |  |  | 8,673 |  |  | - |  |  | 9,401
Litigation settlement expenses |  |  | - |  |  | (600) |  |  | 41,199
Acquisition related expenses |  |  | - |  |  | - |  |  | 6,123
Deferred revenue fair value adjustment (1) |  |  | - |  |  | 2,102 |  |  | 5,348
Interest expense (income), net |  |  | 23,627 |  |  | 39,356 |  |  | 33,857
Loss attributable to equity method investments |  |  | 11,205 |  |  | 25,058 |  |  | 15,833
Other, net |  |  | (14,816) |  |  | 12,157 |  |  | 10,726
Income before income taxes |  | $ | 883,662 |  | $ | 733,088 |  | $ | 518,847
(1)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, 2021, 2020 and 2019 (in thousands):
|  | 2021 |  | 2020 |  | 2019
U.S., Canada and Latin America |  |  |  |  |  |  |  |  |
Devices |  | $ | 863,661 |  | $ | 792,766 |  | $ | 743,066
Masks and other |  |  | 841,452 |  |  | 779,561 |  |  | 677,430
Total Sleep and Respiratory Care |  | $ | 1,705,113 |  | $ | 1,572,327 |  | $ | 1,420,496
Software as a Service |  |  | 373,590 |  |  | 354,632 |  |  | 275,789
Total |  | $ | 2,078,703 |  | $ | 1,926,959 |  | $ | 1,696,285
Combined Europe, Asia and other markets |  |  |  |  |  |  |  |  |
Devices |  | $ | 746,379 |  | $ | 715,056 |  | $ | 618,525
Masks and other |  |  | 371,743 |  |  | 314,998 |  |  | 291,762
Total Sleep and Respiratory Care |  | $ | 1,118,122 |  | $ | 1,030,054 |  | $ | 910,287
Global revenue |  |  |  |  |  |  |  |  |
Devices |  | $ | 1,610,040 |  | $ | 1,507,822 |  | $ | 1,361,591
Masks and other |  |  | 1,213,195 |  |  | 1,094,559 |  |  | 969,192
Total Sleep and Respiratory Care |  | $ | 2,823,235 |  | $ | 2,602,381 |  | $ | 2,330,783
Software as a Service |  |  | 373,590 |  |  | 354,632 |  |  | 275,789
Total |  | $ | 3,196,825 |  | $ | 2,957,013 |  | $ | 2,606,572
Revenue information by geographic area for the years ended June 30, 2021, 2020 and 2019 is summarized below (in thousands):
|  | 2021 |  | 2020 |  | 2019
United States |  | $ | 1,962,721 |  | $ | 1,828,575 |  | $ | 1,588,655
Rest of the World |  |  | 1,234,104 |  |  | 1,128,438 |  |  | 1,017,917
Total |  | $ | 3,196,825 |  | $ | 2,957,013 |  | $ | 2,606,572
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, 2021, 2020 and 2019, is summarized below (in thousands):
|  |  |  |  | 2021 |  | 2020
Australia |  |  |  |  |  | 186,289 |  |  | 162,490
United States |  |  |  |  | $ | 159,815 |  | $ | 164,155
Singapore |  |  |  |  |  | 64,182 |  |  | 39,977
Rest of the World |  |  |  |  |  | 53,204 |  |  | 50,713
Total |  |  |  |  | $ | 463,490 |  | $ | 417,335

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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