v3.23.3
Segment Information
 3 Months Ended
Sep. 30, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
We have quantitatively and qualitatively determined that we operate in 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 revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the fiscal year ended June 30, 2023. Segment net revenues 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.
The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):
Three Months Ended
September 30,
20232022
Net revenue by segment
Sleep and Respiratory Care
$963,037 $844,443 
Software as a Service139,284 105,851 
Total$1,102,321 $950,294 
Depreciation and amortization by segment
Sleep and Respiratory Care$20,519 $19,767 
Software as a Service2,760 1,913 
Amortization of acquired intangible assets and corporate assets21,655 14,593 
Total$44,934 $36,273 
Net operating profit by segment
Sleep and Respiratory Care$390,415 $352,560 
Software as a Service31,258 24,441 
Total$421,673 $377,001 
Reconciling items
Corporate costs$103,378 $86,938 
Amortization of acquired intangible assets21,387 14,324 
Astral field safety notification expenses (1)
7,911 — 
Interest expense (income), net14,957 7,134 
Loss attributable to equity method investments3,895 2,028 
(Gain) loss on equity investments602 3,280 
Other, net(2,648)1,504 
Income before income taxes$272,191 $261,793 
(1)    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.