Business Segment Data

6 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Business Segment Data

Note 18 – Business Segment Data

Effective July 1, 2015, we revised our business segments in order to better align them with our strategic approach to the markets and customers we serve. Prior period segment amounts throughout the condensed consolidated financial statements have been reclassified to the new segment structure. The reclassification of historical business segment information had no impact on our basic financial statements.

The accounting principles applied at the operating segment level in determining income (loss) from operations are the same as those applied at the consolidated financial statement level. Goodwill was allocated to our segments based on the relative fair value of the components of our reporting units that were affected by our change in segments. Refer to Note 8 – Goodwill and Intangible Assets, Net for more information.

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 operating segments which are also our reporting segments.

Connected Car

Our Connected Car 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 Audio

Our Lifestyle Audio 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 Audio products are marketed worldwide under renowned brand names including AKG^®, Harman/Kardon^®, Infinity^®, JBL^®, JBL Professional, Lexicon^®, Mark Levinson^® and Revel^®.

Professional Solutions

Our Professional Solutions 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, mixing consoles, lighting, video and control and automation solutions equipment. 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 Solutions segment products are marketed globally under a number of brand names including AKG, AMX^®, Crown^®, JBL Professional, Lexicon, Martin^®, Soundcraft^® and Studer^®.

Connected Services

Our Connected Services segment includes the operating results of STC, Redbend, and our automotive services businesses. Our Connected 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. Our Connected 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 businesses, 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.

The following table reports Net sales and Operating income (loss) by each reporting segment for the three and six months ended December 31, 2015 and 2014:

	Three Months Ended December 31,						Six Months Ended December 31,
	2015			2014			2015			2014
Net sales:
Connected Car	$	736,969		$	722,461		$	1,492,452		$	1,422,577
Lifestyle Audio		625,146			518,964			1,087,429			925,440
Professional Solutions		248,871			267,358			495,977			521,795
Connected Services		169,726			73,555			343,426			141,204
Other		0			1,211			39			1,455
Eliminations **		(8,555	)		0			(16,278	)		0
Total	$	1,772,157		$	1,583,549		$	3,403,045		$	3,012,471
Operating income (loss):
Connected Car	$	84,266		$	76,699			171,485			149,346
Lifestyle Audio		83,016			54,776			130,709			103,849
Professional Solutions		23,952			35,820			49,637			59,085
Connected Services		4,867			15,010			10,058			20,609
Other		(36,948	)		(33,548	)		(71,269	)		(68,349	)
Total	$	159,153		$	148,757		$	290,620		$	264,540

	Three Months Ended December 31, 2015
	Net Sales			Eliminations **			Third Party Sales
Net sales:
Connected Car	$	736,969		$	0		$	736,969
Lifestyle Audio		625,146			(725	)		624,421
Professional Solutions		248,871			(596	)		248,275
Connected Services		169,726			(7,234	)		162,492
Other		0			0			0
Eliminations **		(8,555	)		8,555			0
Total	$	1,772,157		$	0		$	1,772,157

	Six Months Ended December 31, 2015
	Net Sales			Eliminations **			Third Party Sales
Net sales:
Connected Car	$	1,492,452		$	0		$	1,492,452
Lifestyle Audio		1,087,429			(1,255	)		1,086,174
Professional Solutions		495,977			(1,369	)		494,608
Connected Services		343,426			(13,654	)		329,772
Other		39			0			39
Eliminations **		(16,278	)		16,278			0
Total	$	3,403,045		$	0		$	3,403,045

** Represents elimination of inter-segment activity.