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Segment Information
 12 Months Ended
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):
202420232022
Net revenue by segment
Sleep and Respiratory Care$4,101,172 $3,725,017 $3,177,298 
Software as a Service584,125 497,976 400,829 
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 Service10,241 9,119 7,315 
Amortization of acquired intangible assets and corporate assets80,559 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 assets79,484 72,416 70,728 
Restructuring expenses64,228 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), net45,708 47,379 22,312 
Loss attributable to equity method investments1,848 7,265 8,486 
(Gain) loss on equity investments4,045 (9,922)12,202 
Gain on insurance recoveries— (20,227)— 
Other, net3,494 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):
202420232022
U.S., Canada and Latin America
Devices$1,522,758 $1,444,361 $1,070,420 
Masks and other1,199,798 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 other457,363 415,289 399,003 
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 other1,657,161 1,454,315 1,310,390 
Total Sleep and Respiratory Care$4,101,172 $3,725,017 $3,177,298 
Software as a Service584,125 497,976 400,829 
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):
202420232022
United States$2,980,053 $2,719,923 $2,249,381 
Rest of the World1,705,244 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):
20242023
Australia$197,017 $200,752 
United States160,606 164,448 
Singapore89,679 83,711 
Rest of the World100,723 88,945 
Total$548,025 $537,856