Business Segment Data

12 Months Ended

Jun. 30, 2015

Segment Reporting [Abstract]

Business Segment Data

Note 18—Business Segment Data

The accounting principles applied at the operating segment level in determining income from operations are the same as those applied at the consolidated financial statement level. While revenues are specifically identified with our Infotainment segment and the car audio portion of our Lifestyle segment, costs, expenses and assets for these businesses are allocated based on relative revenues or other measures of activity that management believes are reasonable.

We design and engineer connected products and solutions, including audio, visual and infotainment systems, enterprise automation solutions and software services for consumers, automakers, and enterprises worldwide. Our chief operating decision maker evaluates performance and allocates resources based on net sales, operating income and working capital in each of the reporting segments.

Infotainment

Our Infotainment segment designs, manufactures and markets infotainment systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers. Our premium scalable infotainment platforms deliver enhanced and connected capabilities to the car, including intelligent high-performance navigation with embedded solutions for wireless upgradeability, multimedia, premium entertainment, on-board and off-board connectivity and active safety systems. Our new intelligent connected navigation system enables a new generation of driver usability and feature functionality, including navigation solutions with over-the-air updates offering drivers better route instructions, more accurate and up-to-date navigation data and integrated features for a safer and more intuitive experience.

Lifestyle

Our Lifestyle segment designs, manufactures and markets car audio systems for vehicle applications to be installed primarily as original equipment by automotive manufacturers, as well as a wide range of mid-to high-end loudspeaker and electronics for home, multimedia and mobile applications. We believe that we continue to redefine audio excellence for the home, the car and on-the-go listening. Our Lifestyle products are marketed worldwide under renowned brand names including AKG, Harman/Kardon, Infinity, JBL, JBL Professional, Lexicon, Mark Levinson and Revel.

Professional

Our Professional segment designs, manufactures and markets an extensive range of audio, lighting, video and control and automation solutions for commercial, enterprise and public space applications, including concert halls, stadiums, airports, conference centers, educational institutions, command centers and houses of worship. We design products for recording, broadcast, cinema and music reproduction applications such as loudspeakers, power amplifiers, digital signal processors, microphones, headphones and mixing consoles. We also provide high-quality products to the sound reinforcement, music instrument support and broadcast and recording segments of the professional audio market. Our Professional segment products are marketed globally under a number of brand names including AKG, AMX, Crown, JBL Professional, Lexicon, Martin, Soundcraft and Studer.

Services

Our Services segment was formed in April 2015 with the acquisition of STC. Our Services segment creates innovative software solutions that integrate design, mobility, cloud and analytics and brings the benefits of the connected world to the automotive, retail, mobile, healthcare, media and consumer electronics markets. The Services segment offers services and solutions in order to help customers understand and visualize their data so they can make faster and more informed decisions, cloud-enable their business, support technical agility and exploit omni-channel strategies.

Other

Other includes compensation, benefits and occupancy costs for corporate employees, net of reporting segment allocations, expenses associated with new technology innovation and our corporate brand identity campaign and the operations of Redbend from the February 26, 2015 acquisition date.

The following table presents Net sales, Operating income (loss), Assets, Goodwill, Capital expenditures and Depreciation and amortization by each reporting segment:

	Year Ended June 30,
	2015			2014			2013
Net sales:
Infotainment	$	3,124,882		$	2,838,904		$	2,283,247
Lifestyle		1,886,850			1,656,094			1,338,355
Professional		1,048,964			853,144			672,805
Services		88,761			0			0
Other		5,840			341			3,435
Total	$	6,155,297		$	5,348,483		$	4,297,842
Operating income (loss):
Infotainment	$	342,350		$	195,403		$	90,799
Lifestyle		199,149			170,517			137,477
Professional		102,002			114,057			85,810
Services		1,009			0			0
Other		(174,916	)		(150,250	)		(112,835	)
Total	$	469,594		$	329,727		$	201,251
Assets:
Infotainment	$	1,503,000		$	1,191,124
Lifestyle		1,278,886			1,561,216
Professional		1,155,660			1,044,233
Services		1,093,970			0
Other		898,236			329,017
Total	$	5,929,752		$	4,125,590
Goodwill:
Infotainment	$	24,422		$	17,080
Lifestyle		159,088			137,950
Professional		387,861			385,922
Services		529,367			0
Other		186,442			0
Total	$	1,287,180		$	540,952
Capital expenditures:
Infotainment	$	117,318		$	91,472		$	54,364
Lifestyle		42,794			43,042			25,587
Professional		21,263			12,533			11,839
Services		5,233			0			0
Other		5,890			10,094			9,892
Total	$	192,498		$	157,141		$	101,682
Depreciation and amortization:
Infotainment	$	69,934		$	65,912		$	63,009
Lifestyle		42,269			34,581			36,572
Professional		34,112			20,866			16,882
Services		11,508			0			0
Other		11,407			10,969			11,705
Total	$	169,230		$	132,328		$	128,168

During fiscal years 2015, 2014 and 2013 we did not record any goodwill impairment charges. Refer to Note 8—Goodwill and Intangible Assets, Net for more information.

The following table presents Net sales and long-lived assets and net assets by geographic area as of and for the years ended June 30, 2015, 2014 and 2013. Net sales are attributable to geographic areas based upon the location of the customer.

	Year Ended June 30,
	2015		2014		2013
Net sales:
U.S.	$	1,930,526	$	1,626,814	$	1,181,113
Germany		1,696,559		1,722,739		1,482,036
Other Europe		1,141,343		969,021		819,074
Other		1,386,869		1,029,909		815,619
Total	$	6,155,297	$	5,348,483	$	4,297,842
Long-lived assets:
U.S.	$	642,197	$	339,226
Germany		134,841		141,987
Other Europe		320,884		141,481
Other		124,166		69,193
Total	$	1,222,088	$	691,887
Net Assets
U.S.	$	159,906	$	124,339
Germany		580,412		563,972
Other Europe		1,167,508		950,027
Other		485,000		154,683
Total	$	2,392,826	$	1,793,021