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Segment Information | 12 Months Ended
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Jun. 30, 2024
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, restructuring expenses, field safety notification expenses, acquisition related expenses, net interest expense (income), gains and losses 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 third quarter of fiscal year 2024, we updated the method of attribution of certain costs that are principally managed at the segment level as part of our evaluation of segment operating performance. As a result, certain costs relating to quality and regulatory assurance, commercial legal, operations, sales and marketing, customer service, information technology, and other administrative costs, which were previously included in Corporate costs within our reconciliation of segment operating profit to income before income taxes, are now reported in segment operating results. 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, 2024, 2023 and 2022 (in thousands):
| 2024 |  | 2023 |  | 2022
Net revenue by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 4,101,172 |  |  | $ | 3,725,017 |  |  | $ | 3,177,298 |
Software as a Service | 584,125 |  |  | 497,976 |  |  | 400,829 |
Total | $ | 4,685,297 |  |  | $ | 4,222,993 |  |  | $ | 3,578,127 |
Depreciation and amortization by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 86,070 |  |  | $ | 82,544 |  |  | $ | 79,367 |
Software as a Service | 10,241 |  |  | 9,119 |  |  | 7,315 |
Amortization of acquired intangible assets and corporate assets | 80,559 |  |  | 73,493 |  |  | 72,927 |
Total | $ | 176,870 |  |  | $ | 165,156 |  |  | $ | 159,609 |
Net operating profit by segment |  |  |  |  |
Sleep and Respiratory Care | $ | 1,681,354 |  |  | $ | 1,447,120 |  |  | $ | 1,279,591 |
Software as a Service (1) | 154,450 |  |  | 115,655 |  |  | 93,756 |
Total | $ | 1,835,804 |  |  | $ | 1,562,775 |  |  | $ | 1,373,347 |
Reconciling items |  |  |  |  |
Corporate costs | $ | 357,937 |  |  | $ | 338,362 |  |  | $ | 300,469 |
Amortization of acquired intangible assets | 79,484 |  |  | 72,416 |  |  | 70,728 |
Restructuring expenses | 64,228 |  |  | 9,177 |  |  | — |
Masks with magnets field safety notification expenses (2) | 6,351 |  |  | — |  |  | — |
Astral field safety notification expenses (3) | 7,911 |  |  | — |  |  | — |
Acquisition related expenses | — |  |  | 10,949 |  |  | 1,864 |
Interest expense (income), net | 45,708 |  |  | 47,379 |  |  | 22,312 |
Loss attributable to equity method investments | 1,848 |  |  | 7,265 |  |  | 8,486 |
(Gain) loss on equity investments | 4,045 |  |  | (9,922) |  |  | 12,202 |
Gain on insurance recoveries | — |  |  | (20,227) |  |  | — |
Other, net | 3,494 |  |  | 5,712 |  |  | (3,197) |
Income before income taxes | $ | 1,264,798 |  |  | $ | 1,101,664 |  |  | $ | 960,483 |
(1) During the fiscal year ended June 30, 2024, we recorded $4.1 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. The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2024, 2023 and 2022 (in thousands):
| 2024 |  | 2023 |  | 2022
U.S., Canada and Latin America |  |  |  |  |
Devices | $ | 1,522,758 |  |  | $ | 1,444,361 |  |  | $ | 1,070,420 |
Masks and other | 1,199,798 |  |  | 1,039,026 |  |  | 911,387 |
Total U.S., Canada and Latin America | $ | 2,722,556 |  |  | $ | 2,483,387 |  |  | $ | 1,981,807 |
Combined Europe, Asia and other markets |  |  |  |  |
Devices | $ | 921,253 |  |  | $ | 826,341 |  |  | $ | 796,488 |
Masks and other | 457,363 |  |  | 415,289 |  |  | 399,003 |
Total Combined Europe, Asia and other markets | $ | 1,378,616 |  |  | $ | 1,241,630 |  |  | $ | 1,195,491 |
Global revenue |  |  |  |  |
Devices | $ | 2,444,011 |  |  | $ | 2,270,702 |  |  | $ | 1,866,908 |
Masks and other | 1,657,161 |  |  | 1,454,315 |  |  | 1,310,390 |
Total Sleep and Respiratory Care | $ | 4,101,172 |  |  | $ | 3,725,017 |  |  | $ | 3,177,298 |
Software as a Service | 584,125 |  |  | 497,976 |  |  | 400,829 |
Total | $ | 4,685,297 |  |  | $ | 4,222,993 |  |  | $ | 3,578,127 |
Revenue information by geographic area for the years ended June 30, 2024, 2023 and 2022 is summarized below (in thousands):
| 2024 |  | 2023 |  | 2022
United States | $ | 2,980,053 |  |  | $ | 2,719,923 |  |  | $ | 2,249,381 |
Rest of the World | 1,705,244 |  |  | 1,503,070 |  |  | 1,328,746 |
Total | $ | 4,685,297 |  |  | $ | 4,222,993 |  |  | $ | 3,578,127 |
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, 2024 and 2023 is summarized below (in thousands):
| 2024 |  | 2023
Australia | $ | 197,017 |  |  | $ | 200,752 |
United States | 160,606 |  |  | 164,448 |
Singapore | 89,679 |  |  | 83,711 |
Rest of the World | 100,723 |  |  | 88,945 |
Total | $ | 548,025 |  |  | $ | 537,856 |

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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/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards 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