XML 37 R22.htm IDEA: XBRL DOCUMENT
v3.23.2

Segment Information | 12 Months Ended
--- | ---
Jun. 30, 2023
Segment Reporting [Abstract] |
Segment Information | 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 – Summary of 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 (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, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2023, 2022 and 2021 (in thousands):
| 2023 |  | 2022 |  | 2021
Net revenue by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 3,725,017 |  |  | $ | 3,177,298 |  |  | $ | 2,823,235 |
Software as a Service | 497,976 |  |  | 400,829 |  |  | 373,590 |
Total | $ | 4,222,993 |  |  | $ | 3,578,127 |  |  | $ | 3,196,825 |
Depreciation and amortization by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 82,544 |  |  | $ | 79,367 |  |  | $ | 73,151 |
Software as a Service | 9,119 |  |  | 7,315 |  |  | 5,230 |
Amortization of acquired intangible assets and corporate assets | 73,493 |  |  | 72,927 |  |  | 78,377 |
Total | $ | 165,156 |  |  | $ | 159,609 |  |  | $ | 156,758 |
Net operating profit by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 1,502,475 |  |  | $ | 1,311,559 |  |  | $ | 1,170,305 |
Software as a Service | 115,529 |  |  | 93,044 |  |  | 92,357 |
Total | $ | 1,618,004 |  |  | $ | 1,404,603 |  |  | $ | 1,262,662 |
Reconciling items |  |  |  |  |
Corporate costs | $ | 393,591 |  |  | $ | 331,725 |  |  | $ | 268,874 |
Amortization of acquired intangible assets | 72,416 |  |  | 70,728 |  |  | 76,205 |
Restructuring expenses | 9,177 |  |  | — |  |  | 13,905 |
Acquisition related expenses | 10,949 |  |  | 1,864 |  |  | — |
Interest expense (income), net | 47,379 |  |  | 22,312 |  |  | 23,627 |
Loss attributable to equity method investments | 7,265 |  |  | 8,486 |  |  | 11,205 |
(Gain) loss on equity investments | (9,922) |  |  | 12,202 |  |  | (14,515) |
Gain on insurance recoveries | (20,227) |  |  | — |  |  | — |
Other, net | 5,712 |  |  | (3,197) |  |  | (301) |
Income before income taxes | $ | 1,101,664 |  |  | $ | 960,483 |  |  | $ | 883,662 |
The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2023, 2022 and 2021 (in thousands):
| 2023 |  | 2022 |  | 2021
U.S., Canada and Latin America |  |  |  |  |
Devices | $ | 1,444,361 |  |  | $ | 1,070,420 |  |  | $ | 863,661 |
Masks and other | 1,039,026 |  |  | 911,387 |  |  | 841,452 |
Total U.S., Canada and Latin America | $ | 2,483,387 |  |  | $ | 1,981,807 |  |  | $ | 1,705,113 |
Combined Europe, Asia and other markets |  |  |  |  |
Devices | $ | 826,341 |  |  | $ | 796,488 |  |  | $ | 746,379 |
Masks and other | 415,289 |  |  | 399,003 |  |  | 371,743 |
Total Combined Europe, Asia and other markets | $ | 1,241,630 |  |  | $ | 1,195,491 |  |  | $ | 1,118,122 |
Global revenue |  |  |  |  |
Devices | $ | 2,270,702 |  |  | $ | 1,866,908 |  |  | $ | 1,610,040 |
Masks and other | 1,454,315 |  |  | 1,310,390 |  |  | 1,213,195 |
Total Sleep and Respiratory Care | $ | 3,725,017 |  |  | $ | 3,177,298 |  |  | $ | 2,823,235 |
Software as a Service | 497,976 |  |  | 400,829 |  |  | 373,590 |
Total | $ | 4,222,993 |  |  | $ | 3,578,127 |  |  | $ | 3,196,825 |
Revenue information by geographic area for the years ended June 30, 2023, 2022 and 2021 is summarized below (in thousands):
| 2023 |  | 2022 |  | 2021
United States | $ | 2,719,923 |  |  | $ | 2,249,381 |  |  | $ | 1,962,721 |
Rest of the World | 1,503,070 |  |  | 1,328,746 |  |  | 1,234,104 |
Total | $ | 4,222,993 |  |  | $ | 3,578,127 |  |  | $ | 3,196,825 |
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, 2023 and 2022 is summarized below (in thousands):
| 2023 |  | 2022
Australia | $ | 200,752 |  |  | $ | 192,833 |
United States | 164,448 |  |  | 169,090 |
Singapore | 83,711 |  |  | 72,821 |
Rest of the World | 88,945 |  |  | 63,437 |
Total | $ | 537,856 |  |  | $ | 498,181 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-22 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-15 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-31 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-42 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-40 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-26 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-34 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-41 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-21 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration