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11. Segment Information
During the first quarter of fiscal 2011, we changed our reportable segments to align with how
operating results are reported internally to the Chief Executive Officer, who constitutes our Chief
Operating Decision Maker (“CODM”) for purposes of making decisions about how to allocate
resources and assess performance. Beginning July 1, 2010, the CODM reviews revenue and income
or loss from operations based on three geographic operating segments: North America, Europe and
Asia Pacific.
The costs associated with shared central functions are not allocated to the reporting segments
and instead are reported and disclosed under the caption “Corporate and global functions,” which
includes expenses related to corporate support functions, software and manufacturing engineering,
and the global component of our IT operations and customer service, sales and design support. We
do not allocate non-operating income to our segment results. There are no internal revenue
transactions between our reporting segments and all intersegment transfers are recorded at cost for
presentation to the CODM, for example, products manufactured by our Venlo, the Netherlands facility
for the Asia-Pacific segment; therefore, there is no intercompany profit or loss recognized on these
transactions. At this time, we do not allocate support costs across operating segments or corporate
and global functions, which may limit the comparability of income from operations by segment.
Revenue by segment and geography is based on the country-specific website through which
the customer’s order was transacted. The following tables set forth revenue and income from
operations by operating segment. Operating income by segment has not been disclosed for fiscal
2009 as we cannot practicably restate this item based on the lack of availability of information and a
change in financial reporting systems in fiscal 2010. Revenue has been disclosed for all periods.
2011 2010 2009
Year Ended June 30,
Revenue:
North America (1) . . . . . . . . . . . . . . . . . . . . $ 452,770 $ 384,034 $ 319,954
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . 321,716 258,534 180,714
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . 42,523 27,467 15,158
Total revenue . . . . . . . . . . . . . . . . . . . . $ 817,009 $ 670,035 $ 515,826
(1) Includes referral fee revenue from membership discount programs of $0, $5,247, and $20,142, respectively.
2011 2010
Year Ended June 30,
Income from Operations:
North America . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 132,299 $ 103,639
Europe . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 91,959 72,464
Asia Pacific . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,641 8,898
Corporate and global functions . . . . . . . . . . . . . . . (138,819) (108,153)
Total income from operations. . . . . . . . . . . . . $ 93,080 $ 76,848
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