Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Aug. 07, 2020 | Dec. 31, 2019 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 001-15317 | ||
Entity Registrant Name | ResMed Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0152841 | ||
Entity Address, Address Line One | 9001 Spectrum Center Blvd. | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92123 | ||
Entity Address, Country | US | ||
City Area Code | 858 | ||
Local Phone Number | 836-5000 | ||
Title of 12(b) Security | Common Stock, par value $0.004 per share | ||
Trading Symbol | RMD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 144,900,654 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Public Float | $ 22,240,443,784 | ||
Entity Central Index Key | 0000943819 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 463,156 | $ 147,128 |
Accounts receivable, net of allowance for doubtful accounts of $28,508 and $25,171 at June 30, 2020 and June 30, 2019, respectively | 474,643 | 528,484 |
Inventories (note 4) | 416,915 | 349,641 |
Prepaid expenses and other current assets | 168,745 | 120,113 |
Total current assets | 1,523,459 | 1,145,366 |
Non-current assets: | ||
Property, plant and equipment, net (note 4) | 417,335 | 387,460 |
Operating lease right-of-use assets (note 10) | 118,348 | |
Goodwill (note 5) | 1,890,324 | 1,856,449 |
Other intangible assets, net (note 5) | 448,168 | 521,950 |
Deferred income taxes (note 14) | 41,065 | 45,478 |
Prepaid taxes and other non-current assets | 148,677 | 150,979 |
Total non-current assets | 3,063,917 | 2,962,316 |
Total assets | 4,587,376 | 4,107,682 |
Current liabilities: | ||
Accounts payable | 135,786 | 115,725 |
Accrued expenses (note 7) | 270,353 | 266,359 |
Operating lease liabilities, current (note 10) | 21,263 | |
Deferred revenue | 98,617 | 88,667 |
Income taxes payable (note 14) | 64,755 | 73,248 |
Short-term debt, net (note 9) | 11,987 | 11,992 |
Total current liabilities | 602,761 | 555,991 |
Non-current liabilities: | ||
Deferred revenue | 87,307 | 81,143 |
Deferred income taxes (note 14) | 13,011 | 11,380 |
Operating lease liabilities, non-current (note 10) | 101,880 | |
Other long-term liabilities | 8,347 | 2,058 |
Long-term debt, net (note 9) | 1,164,133 | 1,258,861 |
Long-term income taxes payable (note 14) | 112,910 | 126,056 |
Total non-current liabilities | 1,487,588 | 1,479,498 |
Total liabilities | 2,090,349 | 2,035,489 |
Commitments and contingencies (note 17) | ||
Stockholders’ equity: (note 11) | ||
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued | ||
Common stock, $0.004 par value, 350,000,000 shares authorized; 186,723,407 issued and 144,887,175 outstanding at June 30, 2020 and 185,491,064 issued and 143,654,830 outstanding at June 30, 2019 | 580 | 575 |
Additional paid-in capital | 1,570,694 | 1,511,473 |
Retained earnings | 2,832,991 | 2,436,410 |
Treasury stock, at cost, 41,836,234 shares at June 30, 2020 and June 30, 2019 | (1,623,256) | (1,623,256) |
Accumulated other comprehensive loss | (283,982) | (253,009) |
Total stockholders' equity | 2,497,027 | 2,072,193 |
Total liabilities and stockholders' equity | $ 4,587,376 | $ 4,107,682 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, net allowance for doubtful accounts | $ 28,508 | $ 25,171 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.004 | $ 0.004 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 186,723,407 | 185,491,064 |
Common stock, shares outstanding | 144,887,175 | 143,654,830 |
Treasury stock, shares held | 41,836,234 | 41,836,234 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net revenue | $ 2,957,013,000 | $ 2,606,572,000 | $ 2,340,196,000 |
Cost of sales | 1,189,624,000 | 1,069,987,000 | 978,032,000 |
Amortization of acquired intangible assets | 49,603,000 | 42,514,000 | 27,266,000 |
Total cost of sales | 1,239,227,000 | 1,112,501,000 | 1,005,298,000 |
Gross profit | 1,717,786,000 | 1,494,071,000 | 1,334,898,000 |
Operating expenses: | |||
Selling, general and administrative | 676,689,000 | 645,010,000 | 600,369,000 |
Research and development | 201,946,000 | 180,651,000 | 155,149,000 |
Amortization of acquired intangible assets | 30,092,000 | 32,424,000 | 19,117,000 |
Restructuring expenses (note 19) | 9,401,000 | 18,432,000 | |
Litigation settlement expenses (note 20) | (600,000) | 41,199,000 | |
Acquisition related expenses (note 18) | 6,123,000 | ||
Total operating expenses | 908,127,000 | 914,808,000 | 793,067,000 |
Income from operations | 809,659,000 | 579,263,000 | 541,831,000 |
Other income (loss), net: | |||
Interest income | 1,021,000 | 2,299,000 | 16,378,000 |
Interest expense | (40,377,000) | (36,156,000) | (28,355,000) |
Loss attributable to equity method investments (note 6) | (25,058,000) | (15,833,000) | |
Other, net (note 13) | (12,157,000) | (10,726,000) | (8,542,000) |
Total other income (loss), net | (76,571,000) | (60,416,000) | (20,519,000) |
Income before income taxes | 733,088,000 | 518,847,000 | 521,312,000 |
Income taxes | 111,414,000 | 114,255,000 | 205,724,000 |
Net income | $ 621,674,000 | $ 404,592,000 | $ 315,588,000 |
Basic earnings per share (note 12) | $ 4.31 | $ 2.83 | $ 2.21 |
Diluted earnings per share (note 12) | 4.27 | 2.80 | 2.19 |
Dividend declared per share | $ 1.56 | $ 1.48 | $ 1.40 |
Basic shares outstanding (000's) | 144,338 | 143,111 | 142,764 |
Diluted shares outstanding (000's) | 145,652 | 144,484 | 143,987 |
Sleep And Respiratory Care [Member] | |||
Net revenue | $ 2,602,381,000 | $ 2,330,783,000 | $ 2,183,193,000 |
Cost of sales | 1,067,967,000 | 977,223,000 | 929,350,000 |
Amortization of acquired intangible assets | 8,584,000 | 8,591,000 | 7,217,000 |
Software As A Service [Member] | |||
Net revenue | 354,632,000 | 275,789,000 | 157,003,000 |
Cost of sales | 121,657,000 | 92,764,000 | 48,682,000 |
Amortization of acquired intangible assets | $ 41,019,000 | $ 33,923,000 | $ 20,049,000 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 621,674 | $ 404,592 | $ 315,588 |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain adjustments | (30,973) | (28,681) | (35,269) |
Comprehensive income | $ 590,701 | $ 375,911 | $ 280,319 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member]Cumulative Effect Of Change In Accounting Standards [Member] | Common Stock [Member] | Additional Paid-In Capital [Member]Cumulative Effect Of Change In Accounting Standards [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member]Cumulative Effect Of Change In Accounting Standards [Member] | Treasury Stock [Member] | Retained Earnings [Member]Cumulative Effect Of Change In Accounting Standards [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Cumulative Effect Of Change In Accounting Standards [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Cumulative Effect Of Change In Accounting Standards [Member] | Total |
Beginning balance at Jun. 30, 2017 | $ 569 | $ 1,379,130 | $ (1,546,611) | $ 2,316,237 | $ (189,059) | $ 1,960,266 | ||||||
Beginning balance, shares at Jun. 30, 2017 | 183,261,000 | (41,086,000) | ||||||||||
Common stock issued on exercise of options (note 11) | $ 2 | 18,759 | 18,761 | |||||||||
Common stock issued on exercise of options (note 11), shares | 539,000 | |||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ 1 | (15,385) | (15,384) | |||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11), shares | 214,000 | |||||||||||
Common stock issued on employee stock purchase plan (note 11) | $ 1 | 19,955 | $ 19,956 | |||||||||
Common stock issued on employee stock purchase plan (note 11), shares | 302,000 | 302,000 | ||||||||||
Treasury stock purchases | $ (2) | $ (53,801) | $ (53,803) | |||||||||
Treasury stock purchases, shares | (550,000) | |||||||||||
Stock-based compensation costs | 48,362 | 48,362 | ||||||||||
Other comprehensive income | (35,269) | (35,269) | ||||||||||
Net income | 315,588 | 315,588 | ||||||||||
Dividends declared | (199,497) | (199,497) | ||||||||||
Ending balance at Jun. 30, 2018 | $ 571 | 1,450,821 | $ (1,600,412) | 2,432,328 | (224,328) | 2,058,980 | ||||||
Ending balance, shares at Jun. 30, 2018 | 184,316,000 | (41,636,000) | ||||||||||
Common stock issued on exercise of options (note 11) | $ 1 | 12,329 | 12,330 | |||||||||
Common stock issued on exercise of options (note 11), shares | 252,000 | |||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ 3 | (28,104) | (28,101) | |||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11), shares | 638,000 | |||||||||||
Common stock issued on employee stock purchase plan (note 11) | $ 1 | 24,364 | $ 24,365 | |||||||||
Common stock issued on employee stock purchase plan (note 11), shares | 285,000 | 285,000 | ||||||||||
Treasury stock purchases | $ (1) | $ (22,844) | $ (22,845) | |||||||||
Treasury stock purchases, shares | (200,000) | |||||||||||
Stock-based compensation costs | 52,063 | 52,063 | ||||||||||
Other comprehensive income | (28,681) | (28,681) | ||||||||||
Net income | 404,592 | 404,592 | ||||||||||
Dividends declared | (211,712) | (211,712) | ||||||||||
Ending balance at Jun. 30, 2019 | $ 575 | 1,511,473 | $ (1,623,256) | $ (188,798) | 2,436,410 | (253,009) | $ (188,798) | 2,072,193 | ||||
Ending balance, shares at Jun. 30, 2019 | 185,491,000 | (41,836,000) | ||||||||||
Common stock issued on exercise of options (note 11) | $ 1 | 19,986 | $ 19,987 | |||||||||
Common stock issued on exercise of options (note 11), shares | 350,000 | 350,000 | ||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ 3 | (46,061) | $ (46,058) | |||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11), shares | 617,000 | |||||||||||
Common stock issued on employee stock purchase plan (note 11) | $ 1 | 28,196 | $ 28,197 | |||||||||
Common stock issued on employee stock purchase plan (note 11), shares | 265,000 | 265,000 | ||||||||||
Treasury stock purchases | ||||||||||||
Treasury stock purchases, shares | ||||||||||||
Stock-based compensation costs | 57,100 | 57,100 | ||||||||||
Other comprehensive income | (30,973) | (30,973) | ||||||||||
Net income | 621,674 | 621,674 | ||||||||||
Dividends declared | (225,093) | (225,093) | ||||||||||
Ending balance at Jun. 30, 2020 | $ 580 | $ 1,570,694 | $ (1,623,256) | $ 2,832,991 | $ (283,982) | $ 2,497,027 | ||||||
Ending balance, shares at Jun. 30, 2020 | 186,723,000 | (41,836,000) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 621,674 | $ 404,592 | $ 315,588 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 154,850 | 150,795 | 119,960 |
Amortization of right-of-use-assets | 26,523 | ||
Stock-based compensation costs | 57,559 | 52,073 | 48,412 |
Loss attributable to equity method investments (note 6) | 25,058 | 15,833 | |
Impairment of equity investments (note 6) | 14,519 | 15,007 | 11,593 |
Gain on previously held equity interest (note 18) | (1,909) | ||
Changes in fair value of business combination contingent consideration | (7) | (286) | 411 |
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable | 54,383 | (18,013) | (32,356) |
Inventories | (69,881) | (84,188) | 1,494 |
Prepaid expenses, net deferred income taxes and other current assets | (58,999) | (47,575) | (160,726) |
Accounts payable, accrued expenses and other | (23,424) | (27,278) | 200,650 |
Net cash provided by operating activities | 802,255 | 459,051 | 505,026 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (95,330) | (68,710) | (62,581) |
Patent registration costs | (10,608) | (8,632) | (8,876) |
Business acquisitions, net of cash acquired (note 13) | (27,910) | (951,383) | (902) |
Purchases of investments (note 6) | (31,616) | (46,717) | (14,495) |
Payments on maturity of foreign currency contracts | (14,397) | (264) | (14,970) |
Net cash used in investing activities | (179,861) | (1,075,706) | (101,824) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net | 48,182 | 36,727 | 38,717 |
Taxes paid related to net share settlement of equity awards | (46,061) | (28,104) | (15,385) |
Purchases of treasury stock | (22,844) | (53,801) | |
Payments of business combination contingent consideration | (302) | (909) | (486) |
Proceeds from borrowings, net of borrowing costs | 1,190,000 | 1,519,230 | 350,000 |
Repayment of borrowings | (1,284,012) | (711,745) | (1,146,242) |
Dividends paid | (225,093) | (211,712) | (199,497) |
Net cash provided by (used in) financing activities | (317,286) | 580,643 | (1,026,694) |
Effect of exchange rate changes on cash | 10,920 | (5,561) | (9,742) |
Net increaase (decrease) in cash and cash equivalents | 316,028 | (41,573) | (633,234) |
Cash and cash equivalents at beginning of period | 147,128 | 188,701 | 821,935 |
Cash and cash equivalents at end of period | 463,156 | 147,128 | 188,701 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net of refunds | 180,359 | 242,860 | 170,653 |
Interest paid | 40,377 | 36,156 | 28,355 |
Fair value of assets acquired, excluding cash | 14,919 | 429,522 | 290 |
Liabilities assumed | (4,292) | (265,217) | |
Goodwill on acquisition | 20,375 | 794,320 | 247 |
Deferred payments | (408) | 7,242 | (365) |
Fair value of contingent consideration | (3,500) | ||
Cash paid for acquisitions | $ 27,910 | $ 951,383 | $ 902 |
Organization And Basis Of Prese
Organization And Basis Of Presentation | 12 Months Ended |
Jun. 30, 2020 | |
Organization And Basis Of Presentation [Abstract] | |
Organization And Basis Of Presentation | (1) Organization and Basis of Presentation ResMed Inc. (referred to herein as “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a Software as a Service (“SaaS”) business in the United States that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. (b) Revenue Recognition In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Respiratory Care”) and the supply of business management software as a service to out-of-hospital health providers (“SaaS”). Our Sleep and Respiratory Care revenue relates primarily to the sale of our products that are therapy-based equipment. Some contracts include additional performance obligations such as the provision of extended warranties and data for patient monitoring. Our SaaS revenue relates to the provision of software access with ongoing support and maintenance services as well as professional services such as training and consulting. Disaggregation of revenue See note 15 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2020, 2019 and 2018. Effective in the fourth quarter of the fiscal year ended June 30, 2020, our consolidated statements of income separately present the revenues and related costs of the Sleep and Respiratory Care and SaaS segments. Net revenues and cost of sales were previously presented on an aggregate basis. This change separately states net sales of products and revenues from services, which materially aligns with net revenues associated with our Sleep and Respiratory Care and SaaS segments, respectively. While this change has been applied retrospectively to the consolidated statements of income for the years ended June 30, 2019 and 2018, there was no impact on net revenue, cost of sales, income from operations, income before taxes or net income as a result of this change. Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products are provided at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with professional services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Care business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our SaaS business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some SaaS contracts. Generally, deferred revenue will be recognized over a period of one year to five years . Our contracts do not contain significant financing components. The following table summarizes our contract balances as of June 30, 2020 and 2019 (in thousands): 2020 2019 Balance sheet caption Contract assets Accounts receivable, net $ 474,643 $ 528,484 Accounts receivable, net Unbilled revenue, current 9,452 9,834 Prepaid expenses and other current assets Unbilled revenue, non-current 6,957 4,592 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current ( 98,617 ) ( 88,667 ) Deferred revenue (current liabilities) Deferred revenue, non-current ( 87,307 ) ( 81,143 ) Deferred revenue (non-current liabilities) Transaction price determination Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Respiratory Care segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g., rebates, discounts, free goods) and returns offered to customers and their customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of historical experience. However, returns of products, excluding warranty-related returns, are infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates on a quarterly basis based on actual sales results and updated forecasts for the remaining rebate periods. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Respiratory Care contracts that have a single performance obligation, which is the shipment of our therapy-based equipment. Accounting and practical expedient elections We have elected to account for shipping and handling activities associated with our Sleep and Respiratory Care segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date and which is relevant for some of our SaaS contracts. The second practical expedient adopted permits relief from considering a significant financing component when the payment for the good or service is expected to be one year or less. (c) Concentration of Credit Risk and Significant Customers Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the significant majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented. (d) Fair Value of Financial Instruments The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The carrying value of cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt related to our Revolving Credit and Term Credit Agreements approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. The carrying value of long-term debt related to our Senior Notes can differ to its fair value as the principal amounts outstanding are subject to fixed interest rates as outlined in note 9 - Debt. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. We do not hold or issue financial instruments for trading purposes. (e) Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. (f) Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). ( g) Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of 40 years and leasehold improvements, which we amortize over the lease term. We charge maintenance and repairs to expense as we incur them. Depreciation expense for property, plant, and equipment was $ 65.6 million, $ 65.9 million, and $ 64.7 million for the years ended June 30, 2020, 2019 and 2018, respectively. (h) Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally ten years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years . We take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets. We have no t identified any impairment of intangible assets during any of the periods presented. (i) Goodwill We conducted our annual review for goodwill impairment during the final quarter of 2020. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. During the annual review, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill and, therefore, goodwill was no t impaired. (j) Equity investments Equity investments whereby we have significant influence but not control over the investee, and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values, and are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We estimate the fair value of our equity investments using Level 3 inputs to assess whether impairment losses shall be recorded. (k) Research and Development We record all research and development expenses in the period we incur them. (l) Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates, but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. (m) Foreign Exchange Risk Management We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through both our Australian and Singaporean manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased currency options and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years. The goal of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. We have determined our hedge program to be a non-effective hedge as defined under the FASB issued authoritative guidance. All movements in the fair value of the foreign currency instruments are recorded within other income, net in our consolidated statements of income and through changes in our operating assets and liabilities within our consolidated statements of cash flows. We classify purchases of foreign currency derivatives and proceeds received from the exercise of foreign currency derivatives as an investing activity within our consolidated statements of cash flows. We do not enter into financial instruments for trading or speculative purposes. We held foreign currency instruments with notional amounts totaling $ 495.2 million and $ 496.9 million at June 30, 2020 and June 30, 2019, respectively, to hedge foreign currency fluctuations. These contracts mature at various dates prior to June, 2021. (n) Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense. (o) Provision for Warranty We provide for the estimated cost of product warranties on our Sleep and Respiratory Care products at the time the related revenue is recognized. We determine the amount of this provision by using a financial model, which takes into consideration actual historical expenses and potential risks associated with our different products. We use this financial model to calculate the future probable expenses related to warranty and the required level of the warranty provision. Although we engage in product improvement programs and processes, our warranty obligation is affected by product failure rates and costs incurred to correct those product failures. Should actual product failure rates or estimated costs to repair those product failures differ from our estimates, we would be required to revise our estimated warranty provision. (p) Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in bad debt expense. We determine the adequacy of this allowance by periodically evaluating individual customer receivables, considering a customer’s financial condition, credit history and current economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible. We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. (q) Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2020, 2019 and 2018. (r) Contingencies We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | (3) New Accounting Pronouncements (a) Recently issued accounting standards not yet adopted ASU No. 2016-13 “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” (Topic 326), which amends the impairment model by requiring entities to use a forward-looking approach based on expected losses to estimate credit losses on certain types of financial instruments, including trade receivables. The guidance is effective for us beginning in the first quarter of the fiscal year ending June 30, 2021 and will be adopted using a modified retrospective approach, with a cumulative-effect adjustment recorded directly to retained earnings. We do not expect the adoption to have a material impact on our consolidated financial statements. ASU No. 2018-15 “Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” In August 2018, the FASB issued ASU No. 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software: Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract” (Subtopic 350-40), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The guidance is effective for us beginning in the first quarter of the fiscal year ending June 30, 2021 and will be applied prospectively. Under the new ASU, capitalized implementation costs will be presented as other non-current assets on our consolidated balance sheets and within operating cash flows on our consolidated statements of cash flows. The adoption of this ASU is not expected to have a material effect on our consolidated financial statements. ASU No. 2020-04 “Reference Rate Reform: Facilitation of the Effects of Reference Rate Reform on Financial Reporting” In March 2020, the FASB issued ASU No. 2020-04, “Facilitation of the Effects of Reference Rate Reform on Financial Reporting” (Topic 848), which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. The guidance is effective for us as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact that this guidance, if elected, will have on our consolidated financial statements. (b) Recently adopted accounting pronouncements ASU No. 2016-02, “Leases” In February 2016, the FASB issued ASU No. 2016-02, “Leases” (Topic 842). Under the new guidance, lessees are required to recognize a right-of-use asset (“ROU”) and a lease liability on the balance sheet for all leases, other than those that meet the definition of a short-term lease. This update establishes a lease asset and lease liability by lessees for those leases classified as operating under prior GAAP. Leases are classified as either operating or finance under the new guidance. Operating leases result in straight-line expense in the income statement, similar to prior operating lease treatment, and finance leases result in more expense being recognized in the earlier years of the lease term, similar to prior capital lease treatment. For lessors, the update more closely aligns lease accounting to comparable guidance in the new revenue standards described. Effective, July 1, 2019, we adopted the new standard on a modified retrospective transition basis for leases existing at, or entered into after, the date of adoption. In addition, we elected the package of practical expedients permitted under the transition guidance to not reassess (1) whether any expired or existing contracts are, or contain, leases, (2) the lease classification for expired or existing leases, and (3) initial direct costs for existing leases. In preparation for and upon adoption of this guidance, we have designed and operated internal controls over its implementation, which includes a system solution for lease administration, accounting and disclosures of financial information surrounding our leasing arrangements. The adoption of the guidance on July 1, 2019 resulted in the recognition of ROU assets of $ 77.6 million and lease liabilities of $ 81.3 million, which all related to operating leases. The ROU assets were lower than the lease liabilities due to the de-recognition of deferred rent balances of $ 3.7 million. We did not recognize any adjustment to the comparative period presented in the financial statements in accordance with our adoption method. The guidance did not have a material impact on our consolidated statements of income. See note 10 - Leases for further disclosures related to our leases under the new guidance. ASU No. 2017-04 “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” In January 2017, the FASB issued ASU No. 2017-04, “Intangibles-Goodwill and Other: Simplifying the Test for Goodwill Impairment” (Topic 350). ASU 2017-04 eliminates step two of the goodwill impairment test and specifies that goodwill impairment should be measured by comparing the fair value of a reporting unit with its carrying amount. Additionally, the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets should be disclosed. We adopted this guidance in the fourth quarter of fiscal year June 30, 2020. The adoption did not have a material impact on our consolidated financial statements. (c) Adjustment to prior periods As noted at note 2b) – Disaggregation of revenue, we now present revenue and cost of sales for our Sleep and Respiratory Care and SaaS segments on the consolidated statements of income. Additionally, within our consolidated statements of income for the years ended June 30, 2020, 2019 and 2018, cost of sales has been adjusted to include amortization of acquired intangible assets directly applicable to revenue. As a result, gross profit now includes amortization of acquired intangible assets relating to cost of sales and operating expenses have been reduced by this amount. There was no impact on income from operations, income before taxes or net income, as a result of this reclassification. The adjustments to the previously reported amounts are not material. The table below presents a reconciliation of amortization of acquired intangible assets by income statement caption summing to total amortization of acquired intangible assets as previously reported for the years ended June 30, 2019 and June 30, 2018 (in thousands): 2019 2018 Amortization of acquired intangible assets related to cost of sales $ 42,514 $ 27,266 Amortization of acquired intangible assets related to operating expenses 32,424 19,117 Total as previously reported $ 74,938 $ 46,383 The table below presents a reconciliation of gross profit as previously reported for the years ended June 30, 2019 and June 30, 2018 adjusted for the amortization of acquired intangible assets now included in cost of sales (in thousands): 2019 2018 Gross profit as previously reported $ 1,536,585 $ 1,362,164 Amortization of acquired intangible assets related to cost of sales ( 42,514 ) ( 27,266 ) Gross profit $ 1,494,071 $ 1,334,898 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2020 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | (4) Supplemental Balance Sheet Information Components of selected captions in the consolidated balance sheets consisted of the following as of June 30, 2020 and June 30, 2019 (in thousands): Inventories 2020 2019 Raw materials $ 128,096 $ 80,861 Work in progress 2,807 2,256 Finished goods 286,012 266,524 Total inventories $ 416,915 $ 349,641 Property, Plant and Equipment 2020 2019 Machinery and equipment $ 285,287 $ 262,010 Computer equipment 188,036 173,895 Furniture and fixtures 54,275 51,942 Vehicles 5,513 7,477 Clinical, demonstration and rental equipment 95,860 94,007 Leasehold improvements 60,490 34,210 Land 51,803 52,406 Buildings 227,902 223,028 Property, plant and equipment, at cost $ 969,166 $ 898,975 Accumulated depreciation and amortization ( 551,831 ) ( 511,515 ) Property, plant and equipment, net $ 417,335 $ 387,460 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill And Other Intangible Assets, Net [Abstract] | |
Goodwill And Other Intangible Assets, Net | (5) Goodwill and Other Intangible Assets, net Goodwill For each of the years ended June 30, 2020 and June 30, 2019, we have no t recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2020 (in thousands): 2020 Sleep and Respiratory Care SaaS Total Balance at the beginning of the period $ 616,965 $ 1,239,484 $ 1,856,449 Business acquisitions 266 20,109 20,375 Adjustment to fair values of preliminary purchase price allocations 526 16,283 16,809 Foreign currency translation adjustments ( 3,309 ) - ( 3,309 ) Balance at the end of the period $ 614,448 $ 1,275,876 $ 1,890,324 Other Intangible Assets Other intangibles, net are comprised of the following as of June 30, 2020 and June 30, 2019 (in thousands): 2020 2019 Developed/core product technology $ 382,806 $ 401,842 Accumulated amortization ( 197,670 ) ( 157,651 ) Developed/core product technology, net 185,136 244,191 Customer relationships 279,370 273,114 Accumulated amortization ( 80,922 ) ( 68,630 ) Customer relationships, net 198,448 204,484 Other intangibles 177,091 176,351 Accumulated amortization ( 112,507 ) ( 103,076 ) Other intangibles, net 64,584 73,275 Total other intangibles, net $ 448,168 $ 521,950 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years . There are no expected residual values related to these intangible assets. Refer to note 18 of the consolidated financial statements for details of acquisitions. Amortization expense related to identified intangible assets for the years ended June 30, 2020 and June 30, 2019 was $ 79.7 million and $ 74.9 million, respectively. Amortization expense related to patents for the years ended June 30, 2020 and June 30, 2019 was $ 8.3 million and $ 8.1 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2021 through June 30, 2025, is shown below (in thousands): Fiscal Years Ending June 30 2021 2022 2023 2024 2025 Estimated amortization expense $ 80,636 $ 72,219 $ 55,015 $ 50,628 $ 45,298 |
Investments
Investments | 12 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Investments | (6) Investments We have a number of equity investments in privately held companies that are unconsolidated entities and are recorded in the non-current balance of other assets on the consolidated balance sheets. The following table shows a reconciliation of the changes in all of our investments during the years ended June 30, 2020 and June 30, 2019 (in thousands): 2020 2019 Equity method investments Balance at the beginning of the period $ 21,667 $ - Investments 17,500 37,500 Loss attributable to equity method investments ( 25,058 ) ( 15,833 ) Carrying value of equity method investments 14,109 21,667 Non-marketable securities Balance at the beginning of the period $ 30,436 $ 41,226 Investments 14,116 9,217 Impairment of investments ( 14,519 ) ( 15,007 ) Acquisition of controlling interest in previously held investment - ( 5,000 ) Carrying value of non-marketable securities 30,033 30,436 Total investments in unconsolidated entities $ 44,142 $ 52,103 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | (7) Accrued Expenses Accrued expenses at June 30, 2020 and June 30, 2019 consist of the following (in thousands): 2020 2019 Product warranties (note 8) $ 21,132 $ 19,625 Consulting and professional fees 18,740 12,726 Value added taxes and other taxes due 26,627 25,555 Employee related costs 148,383 123,446 Hedging instruments 427 244 Liability on receivables sold with recourse (note 17) 6,647 1,752 Accrued interest 8,313 1,683 Logistics and occupancy costs 6,350 8,137 Inventory in transit 21,679 15,175 Business acquisition contingent consideration 3,500 - Litigation settlement expenses (note 20) - 41,199 Restructuring expenses (note 19) - 5,432 Other 8,555 11,385 $ 270,353 $ 266,359 |
Product Warranties
Product Warranties | 12 Months Ended |
Jun. 30, 2020 | |
Product Warranties [Abstract] | |
Product Warranties | (8) Product Warranties We include the liability for warranty costs in accrued expenses in our consolidated balance sheets. Changes in the liability for product warranty for the years ended June 30, 2020 and June 30, 2019 are as follows (in thousands): 2020 2019 Balance at the beginning of the period $ 19,625 $ 19,227 Warranty accruals for the period 14,167 15,416 Warranty costs incurred for the period ( 12,229 ) ( 14,634 ) Foreign currency translation adjustments ( 431 ) ( 384 ) Balance at the end of the period $ 21,132 $ 19,625 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Debt | (9) Debt Debt at June 30, 2020 and June 30, 2019 consists of the following (in thousands): 2020 2019 Short-term debt $ 12,000 $ 12,012 Deferred borrowing costs ( 13 ) ( 20 ) Short-term debt, net 11,987 11,992 - Long-term debt $ 1,168,000 $ 1,262,000 Deferred borrowing costs ( 3,867 ) ( 3,139 ) Long-term debt, net $ 1,164,133 $ 1,258,861 Total debt $ 1,176,120 $ 1,270,853 Credit Facility On April 17, 2018, we entered into an amended and restated credit agreement (the “Revolving Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, joint book runner, swing line lender and letter of credit issuer, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $ 800.0 million, with an uncommitted option to increase the revolving credit facility by an additional $ 300.0 million. Additionally, on April 17, 2018, ResMed Limited entered into a Syndicated Facility Agreement (the “Term Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger and joint book runner, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner. The Term Credit Agreement, among other things, provides ResMed Limited a senior unsecured term credit facility of $ 200.0 million. On November 5, 2018, we entered into a first amendment to the Revolving Credit Agreement to, among other things, increase the size of our senior unsecured revolving credit facility from $ 800.0 million to $ 1.6 billion, with an uncommitted option to increase the revolving credit facility by an additional $ 300.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Limited’s obligations under the Term Credit Agreement are guaranteed by us and certain of our direct and indirect U.S. subsidiaries. The Revolving Credit Agreement and Term Credit Agreement contain customary covenants, including, in each case, a financial covenant that requires that we maintain a maximum leverage ratio of funded debt to EBITDA (as defined in the Revolving Credit Agreement and Term Credit Agreement, as applicable). The entire principal amounts of the revolving credit facility and term credit facility, and, in each case, any accrued but unpaid interest may be declared immediately due and payable if an event of default occurs, as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable. Events of default under the Revolving Credit Agreement and the Term Credit Agreement include, in each case, failure to make payments when due, the occurrence of a default in the performance of any covenants in the respective agreements or related documents, or certain changes of control of us, or the respective guarantors of the obligations borrowed under the Revolving Credit Agreement and Term Credit Agreement. The Revolving Credit Agreement and Term Credit Agreement each terminate on April 17, 2023, when all unpaid principal and interest under the loans must be repaid. Amounts borrowed under the Term Credit Agreement will also amortize on a semi-annual basis, with a $ 6.0 million principal payment required on each such semi-annual amortization date. The outstanding principal amounts will bear interest at a rate equal to LIBOR plus 0.75 % to 1.50 % (depending on the then-applicable leverage ratio) or the Base Rate (as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable) plus 0.0 % to 0.50 % (depending on the then-applicable leverage ratio). At June 30, 2020, the interest rate that was being charged on the outstanding principal amounts was 1.2 %. An applicable commitment fee of 0.100 % to 0.175 % (depending on the then-applicable leverage ratio) applies on the unused portion of the revolving credit facility. As of June 30, 2020, we had $ 1.1 billion available for draw down under the revolving credit facility. We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets. As the Revolving Credit and Term Credit Agreements’ interest rate is calculated as LIBOR plus the spreads described above, its carrying amount is equivalent to its fair value as at June 30, 2020 and June 30, 2019, which was $ 680.0 million and $ 1,274.0 million, respectively. Quoted market prices in active markets for identical liabilities based inputs (Level 1) were used to estimate fair value. Senior Notes On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $ 250.0 million principal amount of our 3.24 % senior notes due July 10, 2026, and $ 250.0 million principal amount of our 3.45 % senior notes due July 10, 2029 (collectively referred to as the “Senior Notes”). Our obligations under the Note Purchase Agreement and the Senior Notes are unconditionally and irrevocably guaranteed by certain of our direct and indirect U.S. subsidiaries, including ResMed Corp., ResMed Motor Technologies Inc., Birdie Inc., Inova Labs, Inc., Brightree LLC, Brightree Home Health & Hospice LLC, Brightree Patient Collections LLC, ResMed Operations Inc., HEALTHCAREfirst Holding Company, HCF Holdco Company, HEALTHCAREfirst, Inc., CareFacts Information Systems, LLC and Lewis Computer Services, LLC, MatrixCare Holdings Inc., MatrixCare, Inc., Reciprocal Labs Corporation and ResMed SaaS Inc., under a Subsidiary Guaranty Agreement dated as of July 10, 2019. The net proceeds from this transaction were used to pay down borrowings on our Revolving Credit Agreement. Under the terms of the Note Purchase Agreement, we agreed to customary covenants including with respect to our corporate existence, transactions with affiliates, and mergers and other extraordinary transactions. We also agreed that, subject to limited exceptions, we will maintain a ratio of consolidated funded debt to consolidated EBITDA of no more than 3.50 to 1.00 as of the last day of any fiscal quarter, and will not at any time permit the amount of all priority secured and unsecured debt of us and our subsidiaries to exceed 10% of our consolidated tangible assets, determined as of the end of our most recently ended fiscal quarter. We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets. As of June 30, 2020, the Senior Notes have a carrying amount of $ 500.0 million, excluding deferred borrowing costs, and an estimated fair value of $ 538.9 million. Quoted market prices in active markets for identical liabilities based inputs (Level 1) were used to estimate fair value. At June 30, 2020, we were in compliance with our debt covenants and there was $ 1,180.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | (10) Leases (a) Leases where ResMed is the Lessee We determine whether a contract is, or contains, a lease at inception. ROU assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received. We determine the lease term as the non-cancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 15 years, some of which include options to extend or terminate the leases. Operating lease costs for the year ended June 30, 2020 were $ 26.5 million. Short-term and variable lease costs were not material for the year ended June 30, 2020. Future minimum lease payments under non-cancellable leases as of June 30, 2020 and for the periods ending June 30 of the years indicated below were as follows (in thousands): Total 2021 2022 2023 2024 2025 Thereafter Minimum lease payments $ 143,774 $ 24,810 $ 18,084 $ 14,853 $ 12,075 $ 10,493 $ 63,459 Less: imputed interest ( 20,631 ) Total lease liabilities $ 123,143 As of June 30, 2020, we had additional operating lease commitments of $ 14.1 million for office space that have not yet commenced. These leases will commence during the year ended June 30, 2021 with lease terms of 1 years to 11 years. The supplemental information related to operating leases for the year ended June 30, 2020 was as follows (in thousands): 2020 Weighted-average inputs: Weighted-average remaining lease term (years) 9.1 Weighted-average discount rate 3.2 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 24,104 Right of use assets obtained in exchange for new lease liabilities: $ 51,663 Disclosures related to periods prior to adopting the new lease guidance We lease certain facilities and equipment under operating leases expiring at various dates and most contain renewal options. Total expense for all operating leases was $ 23.4 million, $ 21.1 million, and $ 20.1 million for the years ended June 30, 2019, 2018, and 2017, respectively. Future minimum lease payments (including interest) under non-cancellable operating leases at June 30, 2019 were as follows (in thousands): Total 2020 2021 2022 2023 2024 Thereafter Remaining operating lease payments $ 98,013 $ 23,500 $ 17,161 $ 12,403 $ 9,478 $ 7,916 $ 27,555 (b) Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts include sales-type and operating leases, and contract terms vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. The components of lease revenue for the year ended June 30, 2020 were as follows (in thousands): 2020 Sales-type lease revenue $ 13,457 Operating lease revenue 87,874 Total lease revenue $ 101,331 Our net investment in sales-type leases were classified in the accompanying consolidated balance sheets captions as of June 30, 2020 as follows (in thousands): 2020 Accounts receivable, net $ 7,697 Prepaid taxes and other non-current assets 6,957 Total $ 14,654 Maturities of sales-type leases as of June 30, 2020 were as follows (in thousands): Total 2021 2022 2023 2024 2025 Thereafter Remaining lease payments $ 16,074 $ 8,034 $ 5,759 $ 2,281 $ - $ - $ - Less: imputed interest ( 1,420 ) Present value of remaining lease payments $ 14,654 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | (11) Stockholders’ Equity Common Stock. On February 21, 2014, our board of directors approved a new share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. The program allows us to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block transactions, as market and business conditions warrant and subject to applicable legal requirements. The 20.0 million shares the new program authorizes us to purchase are in addition to the shares we repurchased on or before February 21, 2014 under our previous programs. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases since February 21, 2014 have been executed in accordance with this program. We have temporarily suspended our repurchase program and, accordingly, did not repurchase any shares during fiscal year 2020. During fiscal year 2019, we repurchased 200,000 shares at a cost of $ 22.8 million shares under our share repurchase program. As of June 30, 2020, we have repurchased a total of 41.8 million shares at a cost of $ 1.6 billion . Shares that are repurchased are classified as “treasury stock pending future use” and reduce the number of shares outstanding used in calculating earnings per share. At June 30, 2020, 12.9 million additional shares can be repurchased under the approved share repurchase program. Preferred Stock. In April 1997, our board of directors authorized 2,000,000 shares of $ 0.01 par value preferred stock. No such shares were issued or outstanding at June 30, 2020. Stock Options and Restricted Stock Units. We have granted stock options, restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”) to personnel, including officers and directors, in accordance with the ResMed Inc. 2009 Incentive Award Plan (the “2009 Plan”). Options and restricted stock units vest over one year to four years and the options have expiration dates of seven years from the date of grant. We have granted the options with an exercise price equal to the market value as determined at the date of grant. We have granted PRSUs that are subject to a market condition, with the ultimate realizable number of PRSUs dependent on relative total stockholder return over a period of three years , up to a maximum amount to be issued under the award of 225 % of the original grant. At the annual meeting of our stockholders in November 2017, our stockholders approved an amendment and restatement to the 2009 Plan to increase the number of shares of common stock that may be issued or transferred pursuant to awards under the 2009 Plan by 7.4 million. The amendment and restatement imposes a maximum award amount which may be granted under the 2009 Plan to non-employee director in a calendar year, which when taken together with any other cash fees earned for services as a non-employee director during the calendar year, has a total value of $ 0.7 million, or $ 1.2 million in the case of a non-employee director who is also serving as chairman of our board of directors. The amendment and restatement also increased the maximum amount payable pursuant to cash-denominated performance awards granted in any calendar year from $ 3.0 million to $ 5.0 million. In addition, the amendment and restatement extended the existing prohibition on the payment of dividends or dividend equivalents on unvested awards to apply to all awards, including time-based restricted stock, deferred stock and stock payment. The term of the 2009 Plan was extended by four years so that the plan expires on September 11, 2027 . The maximum number of shares of our common stock authorized for issuance under the 2009 Plan is 51.1 million. The number of securities remaining available for future issuance under the 2009 Plan at June 30, 2020 is 15.8 million. The number of shares of our common stock available for issuance under the 2009 Plan will be reduced by (i) 2.8 shares for each one share of common stock delivered in settlement of any “full-value award,” which is any award other than a stock option, stock appreciation right or other award for which the holder pays the intrinsic value and (ii) one share for each share of common stock delivered in settlement of all other awards. The maximum number of shares, which may be subject to awards granted under the 2009 Plan to any individual during any calendar year, may not exceed 3 million shares of our common stock (except in a participant’s initial year of hiring up to 4.5 million shares of our common stock may be granted). In certain regions, shares are withheld on behalf of employees to satisfy statutory tax withholding requirements upon exercise or vesting of awards. The number of shares withheld is based upon the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares are delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees’ tax obligation is reflected as a financing activity on our consolidated statements of cash flows. Shares withheld by us as a result of the net settlement are not considered issued and outstanding and are added to the reserves of the 2009 Plan. The total fair value of RSUs and PRSUs that vested during the years ended June 30, 2020, 2019 and 2018, was $ 56.8 million, $ 52.3 million and $ 34.6 million, respectively. The following table summarizes the activity of RSUs, including PRSUs, during year ended June 30, 2020 (in thousands, except years and per share amounts) : Restricted Stock Units Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,446 $ 77.21 1.6 Granted 363 141.00 Vested* ( 929 ) 61.13 Performance factor adjustment 294 - Expired / cancelled ( 37 ) 91.66 Forfeited ( 5 ) 91.66 Outstanding at end of period 1,132 $ 103.77 1.6 * Includes 312 thousand shares netted for tax. The following table summarizes option activity during the year ended June 30, 2020 (in thousands, except years and per share amounts) : Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,260 $ 72.91 4.4 Granted 162 146.34 Exercised ( 350 ) 57.17 Forfeited ( 4 ) 110.19 Outstanding at end of period 1,068 $ 89.05 4.4 Options exercisable at end of period 641 $ 71.18 3.7 Options vested and expected to vest at end of period 1,046 $ 88.32 4.4 The aggregate intrinsic value of options exercised during the fiscal years 2020, 2019 and 2018, was $ 31.2 million, $ 15.1 million and $ 27.5 million, respectively. As at June 30, 2020, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest were $ 110.0 million, $ 77.4 million and $ 108.5 million respectively. Employee Stock Purchase Plan (the “ESPP”). Under the ESPP, we offer participants the right to purchase shares of our common stock at a discount during successive offering periods. Each offering period under the ESPP will be for a period of time determined by the board of directors’ compensation committee of no less than 3 months and no more than 27 months. The purchase price for our common stock under the ESPP will be the lower of 85 % of the fair market value of our common stock on the date of grant or 85 % of the fair market value of our common stock on the date of purchase. An individual participant cannot subscribe for more than $ 25,000 in common stock during any calendar year. At June 30, 2020, the number of shares remaining available for future issuance under the ESPP is 2.0 million shares. During years ended June 30, 2020, 2019 and 2018, we issued 265,000 , 285,000 and 302,000 shares to our employees in two offerings and we recognized $ 8.0 million, $ 6.4 million and $ 5.2 million, respectively, of stock compensation expense associated with the ESPP. Stock–based Employee compensation. We measure the compensation expense of all stock-based awards at fair value on the grant date. We estimate the fair value of stock options and purchase rights granted under the ESPP using the Black-Scholes valuation model. The fair value of restricted stock units is equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to, during the vesting period. The fair value of performance restricted stock units is measured using a Monte-Carlo simulation valuation model. We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest. We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the assumptions in the following tables. The risk-free interest rate is estimated using the U.S. Treasury yield curve and is based on the term of the award. The expected term of awards is estimated from the vesting period of the award, as well as historical exercise behavior, and represents the period of time the awards granted are expected to be outstanding. Expected volatility is estimated based upon the historical volatility of ResMed stock. We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the following assumptions for the years ended June 30, 2020, 2019 and 2018: 2020 2019 2018 Stock options: Weighted average grant date fair value $ 32.14 $ 21.92 $ 16.68 Weighted average risk-free interest rate 1.58 % 2.96 % 2.08 % Expected life in years 4.9 4.9 4.9 Dividend yield 1.07 % 1.34 % - 1.46 % 1.46 % - 1.65 % Expected volatility 25 % 23 % 23 % ESPP purchase rights: Weighted average grant date fair value $ 31.82 $ 22.12 $ 17.44 Weighted average risk-free interest rate 1.6 % 2.4 % 0.8 % Expected life in years 6 months 6 months 6 months Dividend yield 0.98 % - 1.42 % 1.40 % - 1.47 % 1.47 % - 1.92 % Expected volatility 23 % - 60 % 23 % 23 % The following table summarizes the total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Cost of sales - capitalized as part of inventory $ 3,703 $ 3,043 $ 2,990 Selling, general and administrative expenses 47,265 42,700 39,754 Research and development expenses 6,591 6,330 5,668 Stock-based compensation costs 57,559 52,073 48,412 Tax benefit ( 39,534 ) ( 26,658 ) ( 17,078 ) Stock-based compensation costs, net of tax benefit $ 18,025 $ 25,415 $ 31,334 At June 30, 2020, there was $ 92.6 million in unrecognized compensation costs related to unvested stock-based compensation arrangements. This is expected to be recognized over a weighted average period of 2.2 years. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (12) Earnings Per Share We compute basic earnings per share by dividing the net income available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding and the number of dilutive common stock equivalents such as stock options and restricted stock units. The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings per share were 164,000 , 200,000 and 153,000 for the years ended June 30, 2020, 2019 and 2018, respectively, as the effect would have been anti-dilutive. Basic and diluted earnings per share for the years ended June 30, 2020, 2019 and 2018 are calculated as follows (in thousands except per share data): 2020 2019 2018 Numerator: Net income $ 621,674 $ 404,592 $ 315,588 Denominator: Basic weighted-average common shares outstanding 144,338 143,111 142,764 Effect of dilutive securities: Stock options and restricted stock units 1,314 1,373 1,223 Diluted weighted average shares 145,652 144,484 143,987 Basic earnings per share $ 4.31 $ 2.83 $ 2.21 Diluted earnings per share $ 4.27 $ 2.80 $ 2.19 |
Other, Net
Other, Net | 12 Months Ended |
Jun. 30, 2020 | |
Other, Net [Abstract] | |
Other, Net | (13) Other, net Other, net, in the consolidated statements of income is comprised of the following for the years ended June 30, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Gain (loss) on foreign currency transactions and hedging, net $ 1,331 $ 1,712 $ ( 1,546 ) Impairment of equity investments (note 6) ( 14,519 ) ( 15,007 ) ( 11,593 ) Other 1,031 2,569 4,597 $ ( 12,157 ) $ ( 10,726 ) $ ( 8,542 ) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Income Taxes | (14) Income Taxes Income before income taxes for the years ended June 30, 2020, 2019 and 2018, was taxed under the following jurisdictions (in thousands): 2020 2019 2018 U.S. $ 60,548 $ ( 34,468 ) $ 42,627 Non-U.S. 672,540 553,315 478,685 $ 733,088 $ 518,847 $ 521,312 The provision for income taxes is presented below (in thousands): 2020 2019 2018 Current: Federal $ 9,790 $ 28,658 $ 128,971 State 6,898 7,595 948 Non-U.S. 124,602 127,540 68,858 141,290 163,793 198,777 Deferred: Federal ( 13,000 ) ( 30,456 ) 9,488 State ( 3,335 ) ( 5,408 ) ( 350 ) Non-U.S. ( 13,541 ) ( 13,674 ) ( 2,191 ) ( 29,876 ) ( 49,538 ) 6,947 Provision for income taxes $ 111,414 $ 114,255 $ 205,724 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21 % for the years ended June 30, 2020 and June 30, 2019 and 28 % for the year ended June 30, 2018, to pretax income as a result of the following (in thousands): 2020 2019 2018 Taxes computed at statutory U.S. rate $ 153,949 $ 108,958 $ 146,280 Increase (decrease) in income taxes resulting from: Transition tax - 6,038 126,753 State income taxes, net of U.S. tax benefit 3,563 2,186 2,427 Research and development credit ( 13,595 ) ( 12,953 ) ( 4,089 ) Change in statutory tax rates - - 16,685 Change in valuation allowance 7,216 ( 1,118 ) ( 2,962 ) Effect of non-U.S. tax rates ( 20,935 ) 25,045 ( 70,250 ) Foreign tax credits (1) ( 4,026 ) ( 7,806 ) ( 6,473 ) Stock-based compensation expense ( 20,696 ) ( 11,534 ) ( 7,045 ) Other 5,938 5,439 4,398 $ 111,414 $ 114,255 $ 205,724 (1) In fiscal year 2018, $ 75.5 million of the foreign tax credit is included as a reduction in the transition tax. The components of our deferred tax assets and liabilities at June 30, 2020 and June 30, 2019, are as follows (in thousands): 2020 2019 Deferred tax assets: Employee liabilities $ 21,272 $ 18,104 Tax credit carry overs 9,295 15,666 Inventories 9,129 4,905 Provision for warranties 3,585 3,551 Provision for doubtful debts 6,594 5,532 Net operating loss carryforwards 38,035 53,315 Capital loss carryover 10,864 6,640 Property, plant and equipment ( 724 ) 3,002 Stock-based compensation expense 6,035 10,769 Deferred revenue 15,343 9,619 Research and development capitalization 39,195 17,910 Other ( 2,282 ) ( 332 ) 156,341 148,681 Less valuation allowance ( 16,891 ) ( 11,644 ) Deferred tax assets 139,450 137,037 Deferred tax liabilities: Goodwill and other intangibles ( 111,396 ) ( 102,939 ) Deferred tax liabilities ( 111,396 ) ( 102,939 ) Net deferred tax asset $ 28,054 $ 34,098 We reported the net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2020 and June 30, 2019, as follows (in thousands): 2020 2019 Non-current deferred tax asset $ 41,065 $ 45,478 Non-current deferred tax liability ( 13,011 ) ( 11,380 ) Net deferred tax asset $ 28,054 $ 34,098 As of June 30, 2020, we had $ 30.4 million of U.S. federal and state net operating loss carryforwards and $ 6.8 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2020 or carry forward indefinitely. The valuation allowance at June 30, 2020 relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $ 1.6 million and capital loss and other items of $ 15.3 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized. A substantial portion of our manufacturing operations and administrative functions in Singapore operate under various tax holidays and tax incentive programs that will expire in whole or in part at various dates through June 30, 2030. The end of certain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and tax incentive programs increased our net earnings by $ 43.8 million ($ 0.30 per diluted share) for the year ended June 30, 2020 and $ 20.3 million ($ 0.14 per diluted share) for the year ended June 30, 2019. As a result of the U.S. Tax Act, we have treated all non-U.S. historical earnings as taxable, which resulted in additional tax expense of $ 126.9 million during the year ended June 30, 2018 and $ 6.0 million during the year ended June 30, 2019, which was payable over eight years . Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated. The total amount of these undistributed earnings at June 30, 2020 amounted to approximately $ 3.0 billion. On June 14, 2019, the U.S. Treasury Department issued final and temporary regulations relating to the repatriation of non-U.S. earnings. As a result, in the event our non-U.S. earnings had not been permanently reinvested, deferred taxes of approximately $ 194.4 million in U.S. federal deferred tax and $ 5.2 million in U.S. state deferred taxes would have been recognized in the consolidated financial statements. In accounting for uncertainty in income taxes, we recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (that is, a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for annual periods. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on June 30, 2020, is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate. Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. Any final assessment resulting from tax audits may result in material changes to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results . In connection with the audit by the Australian Taxation Office (“ATO”) for the tax years 2009 to 2013 , we received Notices of Amended Assessments in March 2018. Based on these assessments, the ATO asserted that we owe $ 151.7 million in additional income tax and $ 38.4 million in accrued interest, of which $ 75.9 million was paid in April 2018 under a payment arrangement with the ATO. In June 2018, we received a notice from the ATO claiming penalties of 50 % of the additional income tax that was assessed or $ 75.9 million. As of June 30, 2020, we recorded a receivable in prepaid taxes and other non-current assets for the amount paid as we ultimately expect this will be refunded by the ATO. The ATO is currently auditing tax years 2014 to 2018. We do not agree with the ATO’s assessments and continue to believe we are more likely than not to be successful in defending our position. Our income tax expense, short-term income taxes payable and long-term income taxes payable were impacted by charges associated with the U.S. Tax Act enacted on December 22, 2017, which resulted in additional income tax expense of $ 138.0 million during the year ended June 30, 2018. Specifically, the income tax expense includes the transition tax imposed on our accumulated foreign earnings, which resulted in additional income tax expense of $ 126.9 million for the year ended June 30, 2018. Additionally, it resulted in the write down in the carrying value of our net deferred tax assets due to the lower corporate tax rate and the reduction in the future value of deferred tax assets, which resulted in additional income tax expense of $ 11.1 million recorded in the year ended June 30, 2018. During the year ended June 30, 2019, we recorded additional tax expense of $ 6.0 million in transition tax imposed on our accumulated foreign earnings, which related to final treasury regulations issued and temporary guidance published during the year. On December 22, 2017, the SEC issued guidance under Staff Accounting Bulletin No. 118, Income Tax Accounting Implications of the Tax Cuts and Jobs Act (“SAB 118”) directing taxpayers to consider the impact of the U.S. Tax Act as “provisional” when it does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete its accounting for the change in tax law. Effective December 31, 2018, the accounting relating to the impact of U.S. legislation was no longer considered provisional. During the year ended June 30, 2018, we recorded additional tax expense of $ 138.0 million relating to changes in U.S. tax legislation. During the year ended June 30, 2019, we recorded additional tax expense of $ 6.0 million in additional transition tax, which related to final treasury regulations issued and temporary guidance published during the year. However, further adjustments could be required as a result of future legislation, amended tax returns, or tax examinations of the years impacted by the calculation. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Segment Information | (15) 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 – 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, acquisition related expenses, net interest expense 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, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 Revenue by segment Total Sleep and Respiratory Care $ 2,602,381 $ 2,330,783 $ 2,183,193 Software as a Service 356,734 281,137 157,003 Deferred revenue fair value adjustment* ( 2,102 ) ( 5,348 ) - Total Software as a Service 354,632 275,789 157,003 Total $ 2,957,013 $ 2,606,572 $ 2,340,196 Depreciation and amortization by segment Sleep and Respiratory Care $ 69,444 $ 70,094 $ 70,366 Software as a Service 3,850 3,250 809 Amortization of acquired intangible assets and corporate costs 81,556 77,451 48,785 Total $ 154,850 $ 150,795 $ 119,960 Net operating profit by segment Sleep and Respiratory Care $ 934,697 $ 766,068 $ 656,311 Software as a Service 82,152 74,886 55,224 Total $ 1,016,849 $ 840,954 $ 711,535 Reconciling items Corporate costs $ 125,993 $ 124,682 $ 104,889 Amortization of acquired intangible assets 79,695 74,938 46,383 Litigation settlement expenses ( 600 ) 41,199 - Restructuring expenses - 9,401 18,432 Acquisition related expenses - 6,123 - Deferred revenue fair value adjustment* 2,102 5,348 - Interest expense (income), net 39,356 33,857 11,977 Loss attributable to equity method investments 25,058 15,833 - Other, net 12,157 10,726 8,542 Income before income taxes $ 733,088 $ 518,847 $ 521,312 * The deferred revenue fair value adjustment is a purchase price accounting adjustment related to MatrixCare which was acquired on November 13, 2018. The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2020, 2019 and 2018 (in thousands): 2020 2019 2018 U.S., Canada and Latin America Devices $ 792,766 $ 743,066 $ 689,603 Masks and other 779,561 677,430 600,480 Total Sleep and Respiratory Care $ 1,572,327 $ 1,420,496 $ 1,290,083 Software as a Service 354,632 275,789 157,003 Total $ 1,926,959 $ 1,696,285 $ 1,447,086 Combined Europe, Asia and other markets Devices $ 715,056 $ 618,525 $ 613,978 Masks and other 314,998 291,762 279,133 Total Sleep and Respiratory Care $ 1,030,054 $ 910,287 $ 893,111 Global revenue Devices $ 1,507,822 $ 1,361,591 $ 1,303,581 Masks and other 1,094,559 969,192 879,613 Total Sleep and Respiratory Care $ 2,602,381 $ 2,330,783 $ 2,183,194 Software as a Service 354,632 275,789 157,003 Total $ 2,957,013 $ 2,606,572 $ 2,340,197 Revenue information by geographic area for the years ended June 30, 2020, 2019 and 2018 is summarized below (in thousands): 2020 2019 2018 United States $ 1,828,575 $ 1,588,655 $ 1,345,212 Rest of the World 1,128,438 1,017,917 994,984 Total $ 2,957,013 $ 2,606,572 $ 2,340,196 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, 2020, 2019 and 2018, is summarized below (in thousands): 2020 2019 2018 United States $ 164,155 $ 149,706 $ 142,337 Australia 162,490 165,425 173,394 Singapore 39,977 19,465 17,657 Rest of the World 50,713 52,864 53,162 Total $ 417,335 $ 387,460 $ 386,550 |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Jun. 30, 2020 | |
Employee Retirement Plans [Abstract] | |
Employee Retirement Plans | (16) Employee Retirement Plans We contribute to a number of employee retirement plans for the benefit of our employees. Details of the main plans are as follows: Australia We contribute to defined contribution plans for each employee resident in Australia at the rate of approximately 9.5 % of salaries. Employees may contribute additional funds to the plans. All Australian employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Our total contributions to the plans for the years ended June 30, 2020, 2019 and 2018, were $ 9.5 million, $ 10.0 million and $ 10.5 million, respectively. United States We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 4.0 % of the employee’s salary. Our total contributions to the plan were $ 9.3 million, $ 6.7 million and $ 5.0 million in fiscal 2020, 2019 and 2018, respectively. Singapore We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 17.0 % of the employee’s salary. Our total contributions to the plan were $ 2.9 million, $ 2.6 million and $ 2.2 million in fiscal 2020, 2019 and 2018, respectively. |
Legal Actions, Contingencies An
Legal Actions, Contingencies And Commitments | 12 Months Ended |
Jun. 30, 2020 | |
Legal Actions, Contingencies And Commitments [Abstract] | |
Legal Actions, Contingencies And Commitments | (17) Legal Actions, Contingencies and Commitments Litigation In the normal course of business, we are subject to routine litigation incidental to our business. While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole. Taxation Matters As described in note 14 – Income Taxes, we received Notices of Amended Assessments from the ATO for the tax years 2009 to 2013. Based on these assessments, the ATO asserted that we owe $ 151.7 million in additional income tax and $ 38.4 million in accrued interest, of which $ 75.9 million was paid in April 2018 under a payment arrangement with the ATO. In June 2018, we received a notice from the ATO claiming penalties of 50 % of the additional income tax that was assessed, or $ 75.9 million. As of June 30, 2020, we recorded a receivable in prepaid taxes and other non-current assets for the amount paid as we ultimately expect this will be refunded by the ATO. The ATO is currently auditing tax years 2014 to 2018. We do not agree with the ATO’s assessments and continue to believe we are more likely than not to be successful in defending our position. Contingent Obligations Under Recourse Provisions We use independent financing institutions to offer some of our customers financing for the purchase of some of our products. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the customers repay the financing institution on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with recourse, either limited or full, whereby we are responsible for repaying the financing company should the customer default. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with recourse and is recorded in accrued expenses. The following table summarizes the amount of total receivables sold with recourse during the years ended June 30, 2020 and June 30, 2019 (in thousands): 2020 2019 Full recourse $ - $ 33,954 Limited recourse 154,529 98,123 Total $ 154,529 $ 132,077 The following table summarizes the maximum exposure on outstanding receivables sold with recourse and provision for doubtful accounts as at June 30, 2020 and June 30, 2019 (in thousands): 2020 2019 Full recourse $ 916 $ 19,209 Limited recourse 21,890 10,241 Total $ 22,806 $ 29,450 Contingent provision for receivables with recourse $ ( 6,647 ) $ ( 1,752 ) Commitments In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily related to supply arrangements. Obligations under our purchase agreements at June 30, 2020 were as follows (in thousands): Fiscal Years Ending June 30 Total 2021 2022 2023 2024 2025 Thereafter Minimum purchase obligations $ 462,996 $ 458,623 $ 3,678 $ 518 $ 111 $ 66 $ - |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | (18) Business Combinations Fiscal year ended June 30, 2020 On January 31, 2020, we completed the acquisition of 100 % of the membership interests in SnapWorx, LLC (“SnapWorx”), a software company providing patient contact management and workflow optimization for the sleep apnea resupply market. This acquisition has been accounted for as a business combination using purchase accounting and the results of SnapWorx are included in our consolidated financial statements from the acquisition date. This acquisition is not considered a material business combination and accordingly pro forma information is not provided. The acquisition was funded by drawing on our existing revolving credit facility and through cash on-hand. We completed our purchase price allocation during the quarter ending June 30, 2020, which was not materially different from the preliminary purchase price allocation. The cost of the acquisition was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of the acquisition is reflected in the Software as a Service segment and is deductible for tax purposes. It mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. During the year ended June 30, 2020 we did no t record any material acquisition-related expenses. Fiscal year ended June 30, 2019 MatrixCare On November 13, 2018, we completed the acquisition of 100 % of the shares in MatrixCare, Inc. and its subsidiaries (“MatrixCare”), a provider of software solutions for skilled nursing, life plan communities, senior living and private duty, for base purchase consideration paid of $ 750.0 million. This acquisition has been accounted for as a business combination using purchase accounting and included in our consolidated financial statements from November 13, 2018. The acquisition was paid for using borrowings under our revolving credit facility. We completed the purchase price allocation in relation to this acquisition during the quarter ended December 31, 2019. The cost of the acquisition was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of the acquisition is reflected in the Software as a Service segment and is not deductible for tax purposes. It mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. The fair values of assets acquired and liabilities assumed, and the estimated useful lives of intangible assets acquired are as follows (in thousands): Preliminary as of June 30, 2019 Adjustments Final Intangible assets - useful life Current assets $ 50,325 $ - $ 50,325 Property, plant and equipment 4,401 - 4,401 Trade names 18,000 - 18,000 7 years Developed technology 133,000 - 133,000 7 years Customer relationships 114,000 2,000 116,000 15 years Goodwill 517,995 5,664 523,659 Assets acquired $ 837,721 $ 7,664 $ 845,385 Current liabilities ( 13,751 ) ( 255 ) ( 14,006 ) Deferred revenue ( 18,339 ) ( 166 ) ( 18,505 ) Deferred tax liabilities ( 41,570 ) ( 7,243 ) ( 48,813 ) Debt assumed ( 151,665 ) - ( 151,665 ) Total liabilities assumed $ ( 225,325 ) $ ( 7,664 ) $ ( 232,989 ) Net assets acquired $ 612,396 $ - $ 612,396 A reconciliation of the base consideration to the net consideration is as follows (in thousands): Base consideration $ 750,000 Cash acquired 15,873 Debt assumed ( 151,665 ) Net working capital and other adjustments ( 1,812 ) Net consideration $ 612,396 During the year ended June 30, 2019, revenues of $ 79.2 million and losses from operations of $ 9.1 million related to MatrixCare were included in the consolidated statement of comprehensive income. The losses from operations for the year ended June 30, 2019 was negatively impacted by $ 19.0 million of amortization of acquired intangible assets and fair value purchase price adjustments relating to deferred revenue of $ 5.3 million. Excluding the impact of these items, revenue for the year ended June 30, 2019 was $ 84.6 million and income from operations was $ 15.3 million. The acquisition is considered a material business combination and accordingly unaudited pro forma information presented below for the year ended June 30, 2019, includes the effects of pro forma adjustments as if the acquisition of MatrixCare occurred on July 1, 2017. The pro forma results were prepared using the acquisition method of accounting and combine our historical results and MatrixCare’s for the years ended June 30, 2019 and June 30, 2018, including the effects of the business combination, primarily amortization expense related to the fair value of identifiable intangible assets acquired, interest expense associated with the financing obtained by us in connection with the acquisition, and the elimination of incurred acquisition-related costs. The pro forma financial information presented below is not necessarily indicative of the results of operations that would have been achieved if the acquisition occurred at the beginning of the earliest period presented, nor is it intended to be a projection of future results. The following table summarized unaudited pro forma consolidated results for the years ended June 30, 2019 and 2018 (in thousands, except per share information): 2019 2018 Revenue $ 2,652,059 $ 2,457,242 Net income $ 446,721 $ 295,628 Basic earnings per share $ 3.12 $ 2.07 Diluted earnings per share $ 3.09 $ 2.05 The unaudited pro forma consolidated results for the years ended June 30, 2019 and June 30, 2018 reflect primarily the following pro forma pre-tax adjustments: Net amortization expense related to the fair value of identifiable intangible assets acquired of $ 0.6 million and $ 8.3 million for the years ended June 30, 2019 and June 30, 2018, respectively. Net interest expense associated with debt that was issued to finance the acquisition of $ 2.6 million and $ 12.7 million for the years ended June 30, 2019 and June 30, 2018, respectively. Elimination of pre-tax acquisition-related costs incurred by ResMed and MatrixCare of $ 3.7 million and $ 16.7 million, respectively, for the year ended June 30, 2019. Net income tax expense of $ 1.8 million and $ 3.2 million for the years ended June 30, 2019 and June 30, 2018, respectively. Other acquisitions During the year ended June 30, 2019, we also completed the following acquisitions: On July 6, 2018, we completed the acquisition of 100 % of the shares in HEALTHCAREfirst Holding Company (“HEALTHCAREfirst”), a provider of software solutions and services for home health and hospice agencies, for a total purchase consideration of $ 126.3 million. On October 15, 2018, we completed the acquisition of 100 % of the shares in HB Healthcare, a homecare provider in South Korea. On December 11, 2018, we completed the acquisition of assets in Interactive Health Network, a provider of integrated clinical and financial management software solution for long-term care companies. On December 13, 2018, we completed the acquisition of assets in Apacheta, a provider of cloud-based SaaS software that manages the medical equipment delivery process for HME dealers. On January 6, 2019, we completed the acquisition of Propeller Health, a digital therapeutics company providing connected health solutions for people living with chronic obstructive pulmonary disease and asthma, for a total purchase consideration of $ 242.9 million, which adjusts for cash acquired and debt assumed at the time of acquisition. We previously held a non-controlling interest in Propeller Health’s outstanding shares. As a result of the acquisition, we recognized a fair value gain of $ 1.9 million in other income during the year ended June 30, 2019 associated with the previous equity investment. These acquisitions have been accounted for as business combinations using purchase accounting and are included in our consolidated financial statements from the acquisition dates. These acquisitions, individually and collectively, are not considered a material business combination and accordingly pro forma information is not provided. The acquisitions were funded by drawing on our existing revolving credit facility and through cash on-hand. We have completed the purchase price allocation in relation to all of these acquisitions. The cost of the share acquisitions was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of these acquisitions, which is predominantly not deductible for tax purposes, mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. Goodwill from these acquisitions has been reflected in the Software as a Service segment except for the goodwill resulting from the HB Healthcare and Propeller Health acquisitions, which have been recorded in the Sleep and Respiratory Care segment. The fair values of assets acquired and liabilities assumed of acquisitions during the year ended June 30, 2019, excluding MatrixCare, and the estimated useful lives of intangible assets acquired are as follows (in thousands): Final Intangible assets - useful life Current assets $ 31,648 Property, plant and equipment 2,290 Deferred tax assets 5,211 Trade names 7,828 10 years Non-compete 1,000 3 years Developed technology 48,280 5 to 6 years Customer relationships 53,712 5 to 15 years Goodwill 287,469 Assets acquired $ 437,438 Current liabilities ( 7,648 ) Deferred revenue ( 3,619 ) Deferred tax liabilities ( 2,367 ) Debt assumed ( 35,104 ) Total liabilities assumed $ ( 48,738 ) Net assets acquired $ 388,700 During the year ended June 30, 2019, we recorded acquisition-related expenses of $ 6.1 million. |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Jun. 30, 2020 | |
Restructuring Expenses [Abstract] | |
Restructuring Expenses | (19) Restructuring Expenses During the year ended June 30, 2020, we did not incur material restructuring expenses. During the year ended June 30, 2019, we incurred restructuring expenses of $ 9.4 million associated with the reorganization, rationalization and relocation of some of our research and development and SaaS operations including the closure of our German research and development site. We recorded the full amount of $ 9.4 million during the year ended June 30, 2019, within our operating expenses, which was separately disclosed as restructuring expenses and had $ 5.4 million remaining in our accruals at year end, which was paid during the year ended June 30, 2020. The restructuring expenses consisted primarily of severance payments to employees and contract exit costs associated with several impacted sites. During the year ended June 30, 2018, we incurred restructuring expenses within the Sleep and Respiratory Care segment of $ 18.4 million associated with a global strategic workforce planning review, which resulted in a reduction in headcount across most of our functions and locations and closure of our Paris site. We recorded the full amount of $ 18.4 million during the year ended June 30, 2018, within our operating expenses which was separately disclosed as restructuring expenses. We had $ 1.5 million remaining in our employee related costs accrual at June 30, 2018, which was paid during the year ended June 30, 2019. The restructuring expenses consisted primarily of severance payments to employees and the remaining expense relating to legal and consulting services associated with the completion of the employee severances and contract exit costs associated with the Paris site. |
Litigation Settlement Expenses
Litigation Settlement Expenses | 12 Months Ended |
Jun. 30, 2020 | |
Litigation Settlement Expenses [Abstract] | |
Litigation Settlement Expenses | (20) Litigation Settlement Expenses We did no t recognize any material litigation settlement expenses during the years ended June 30, 2020 and 2018. During the year ended June 30, 2019 we recognized litigation settlement expenses of $ 41.2 million associated with a tentative agreement with the United States Department of Justice to civilly resolve the investigation of certain marketing practices. We finalized the settlement in December 2019, and announced it in January 2020 on terms that were consistent with our prior reserve. The settlement amount consisted of the payment to the United States and to various states that joined the action, as well as attorneys’ fees and other costs to the private litigants that filed the suits that the Department of Justice pursued. We also entered into a corporate integrity agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services with accompanying oversight of our sales and marketing practices in the United States for five years. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Jun. 30, 2020 | |
Schedule II Valuation And Qualifying Accounts And Reserves [Abstract] | |
Schedule II Valuation And Qualifying Accounts And Reserves | SCHEDULE II RESMED INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES June 30, 2020, 2019 and 2018 (in thousands) Balance at Beginning of Period Charged to costs and expenses Other (deductions) Balance at End of Period Year ended June 30, 2020 Applied against asset account Allowance for doubtful accounts $ 25,171 $ 18,283 $ ( 14,946 ) $ 28,508 Year ended June 30, 2019 Applied against asset account Allowance for doubtful accounts $ 19,258 $ 12,379 $ ( 6,466 ) $ 25,171 Year ended June 30, 2018 Applied against asset account Allowance for doubtful accounts $ 11,150 $ 15,189 $ ( 7,081 ) $ 19,258 See accompanying report of independent registered public accounting firm. |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Respiratory Care”) and the supply of business management software as a service to out-of-hospital health providers (“SaaS”). Our Sleep and Respiratory Care revenue relates primarily to the sale of our products that are therapy-based equipment. Some contracts include additional performance obligations such as the provision of extended warranties and data for patient monitoring. Our SaaS revenue relates to the provision of software access with ongoing support and maintenance services as well as professional services such as training and consulting. Disaggregation of revenue See note 15 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2020, 2019 and 2018. Effective in the fourth quarter of the fiscal year ended June 30, 2020, our consolidated statements of income separately present the revenues and related costs of the Sleep and Respiratory Care and SaaS segments. Net revenues and cost of sales were previously presented on an aggregate basis. This change separately states net sales of products and revenues from services, which materially aligns with net revenues associated with our Sleep and Respiratory Care and SaaS segments, respectively. While this change has been applied retrospectively to the consolidated statements of income for the years ended June 30, 2019 and 2018, there was no impact on net revenue, cost of sales, income from operations, income before taxes or net income as a result of this change. Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products are provided at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with professional services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Care business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our SaaS business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some SaaS contracts. Generally, deferred revenue will be recognized over a period of one year to five years . Our contracts do not contain significant financing components. The following table summarizes our contract balances as of June 30, 2020 and 2019 (in thousands): 2020 2019 Balance sheet caption Contract assets Accounts receivable, net $ 474,643 $ 528,484 Accounts receivable, net Unbilled revenue, current 9,452 9,834 Prepaid expenses and other current assets Unbilled revenue, non-current 6,957 4,592 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current ( 98,617 ) ( 88,667 ) Deferred revenue (current liabilities) Deferred revenue, non-current ( 87,307 ) ( 81,143 ) Deferred revenue (non-current liabilities) Transaction price determination Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Respiratory Care segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g., rebates, discounts, free goods) and returns offered to customers and their customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of historical experience. However, returns of products, excluding warranty-related returns, are infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates on a quarterly basis based on actual sales results and updated forecasts for the remaining rebate periods. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Respiratory Care contracts that have a single performance obligation, which is the shipment of our therapy-based equipment. Accounting and practical expedient elections We have elected to account for shipping and handling activities associated with our Sleep and Respiratory Care segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date and which is relevant for some of our SaaS contracts. The second practical expedient adopted permits relief from considering a significant financing component when the payment for the good or service is expected to be one year or less. |
Concentration Of Credit Risk And Significant Customers | Concentration of Credit Risk and Significant Customers Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the significant majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented. |
Fair Value Of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The carrying value of cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt related to our Revolving Credit and Term Credit Agreements approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. The carrying value of long-term debt related to our Senior Notes can differ to its fair value as the principal amounts outstanding are subject to fixed interest rates as outlined in note 9 - Debt. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. We do not hold or issue financial instruments for trading purposes. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. |
Inventories | Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). |
Property, Plant And Equipment | Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of 40 years and leasehold improvements, which we amortize over the lease term. We charge maintenance and repairs to expense as we incur them. Depreciation expense for property, plant, and equipment was $ 65.6 million, $ 65.9 million, and $ 64.7 million for the years ended June 30, 2020, 2019 and 2018, respectively. |
Intangible Assets | Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally ten years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years . We take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets. We have no t identified any impairment of intangible assets during any of the periods presented. |
Goodwill | Goodwill We conducted our annual review for goodwill impairment during the final quarter of 2020. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. During the annual review, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill and, therefore, goodwill was no t impaired. |
Equity Investments | Equity investments Equity investments whereby we have significant influence but not control over the investee, and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values, and are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We estimate the fair value of our equity investments using Level 3 inputs to assess whether impairment losses shall be recorded. |
Research And Development | Research and Development We record all research and development expenses in the period we incur them. |
Foreign Currency | Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates, but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. |
Foreign Exchange Risk Management | Foreign Exchange Risk Management We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through both our Australian and Singaporean manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased currency options and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years. The goal of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. We have determined our hedge program to be a non-effective hedge as defined under the FASB issued authoritative guidance. All movements in the fair value of the foreign currency instruments are recorded within other income, net in our consolidated statements of income and through changes in our operating assets and liabilities within our consolidated statements of cash flows. We classify purchases of foreign currency derivatives and proceeds received from the exercise of foreign currency derivatives as an investing activity within our consolidated statements of cash flows. We do not enter into financial instruments for trading or speculative purposes. We held foreign currency instruments with notional amounts totaling $ 495.2 million and $ 496.9 million at June 30, 2020 and June 30, 2019, respectively, to hedge foreign currency fluctuations. These contracts mature at various dates prior to June, 2021. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense. |
Provision For Warranty | Provision for Warranty We provide for the estimated cost of product warranties on our Sleep and Respiratory Care products at the time the related revenue is recognized. We determine the amount of this provision by using a financial model, which takes into consideration actual historical expenses and potential risks associated with our different products. We use this financial model to calculate the future probable expenses related to warranty and the required level of the warranty provision. Although we engage in product improvement programs and processes, our warranty obligation is affected by product failure rates and costs incurred to correct those product failures. Should actual product failure rates or estimated costs to repair those product failures differ from our estimates, we would be required to revise our estimated warranty provision. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in bad debt expense. We determine the adequacy of this allowance by periodically evaluating individual customer receivables, considering a customer’s financial condition, credit history and current economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible. We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2020, 2019 and 2018. |
Contingencies | Contingencies We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Contract Balances | 2020 2019 Balance sheet caption Contract assets Accounts receivable, net $ 474,643 $ 528,484 Accounts receivable, net Unbilled revenue, current 9,452 9,834 Prepaid expenses and other current assets Unbilled revenue, non-current 6,957 4,592 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current ( 98,617 ) ( 88,667 ) Deferred revenue (current liabilities) Deferred revenue, non-current ( 87,307 ) ( 81,143 ) Deferred revenue (non-current liabilities) |
New Accounting Pronouncements (
New Accounting Pronouncements (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
New Accounting Pronouncements [Abstract] | |
Summary Of Reconciliation Of Amortization Of Acquired Intangible Assets | 2019 2018 Amortization of acquired intangible assets related to cost of sales $ 42,514 $ 27,266 Amortization of acquired intangible assets related to operating expenses 32,424 19,117 Total as previously reported $ 74,938 $ 46,383 |
Summary Of Reconciliation Of Gross Profit | 2019 2018 Gross profit as previously reported $ 1,536,585 $ 1,362,164 Amortization of acquired intangible assets related to cost of sales ( 42,514 ) ( 27,266 ) Gross profit $ 1,494,071 $ 1,334,898 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule Of Inventories | Inventories 2020 2019 Raw materials $ 128,096 $ 80,861 Work in progress 2,807 2,256 Finished goods 286,012 266,524 Total inventories $ 416,915 $ 349,641 |
Components Of Property, Plant And Equipment | Property, Plant and Equipment 2020 2019 Machinery and equipment $ 285,287 $ 262,010 Computer equipment 188,036 173,895 Furniture and fixtures 54,275 51,942 Vehicles 5,513 7,477 Clinical, demonstration and rental equipment 95,860 94,007 Leasehold improvements 60,490 34,210 Land 51,803 52,406 Buildings 227,902 223,028 Property, plant and equipment, at cost $ 969,166 $ 898,975 Accumulated depreciation and amortization ( 551,831 ) ( 511,515 ) Property, plant and equipment, net $ 417,335 $ 387,460 |
Goodwill And Other Intangible_2
Goodwill And Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Goodwill And Other Intangible Assets, Net [Abstract] | |
Schedule Of Changes In Carrying Amount Of Goodwill | 2020 Sleep and Respiratory Care SaaS Total Balance at the beginning of the period $ 616,965 $ 1,239,484 $ 1,856,449 Business acquisitions 266 20,109 20,375 Adjustment to fair values of preliminary purchase price allocations 526 16,283 16,809 Foreign currency translation adjustments ( 3,309 ) - ( 3,309 ) Balance at the end of the period $ 614,448 $ 1,275,876 $ 1,890,324 |
Schedule Of Other Intangible Assets | 2020 2019 Developed/core product technology $ 382,806 $ 401,842 Accumulated amortization ( 197,670 ) ( 157,651 ) Developed/core product technology, net 185,136 244,191 Customer relationships 279,370 273,114 Accumulated amortization ( 80,922 ) ( 68,630 ) Customer relationships, net 198,448 204,484 Other intangibles 177,091 176,351 Accumulated amortization ( 112,507 ) ( 103,076 ) Other intangibles, net 64,584 73,275 Total other intangibles, net $ 448,168 $ 521,950 |
Schedule Of Amortization Expense Related To Identifiable Intangible Assets, Including Patents | Fiscal Years Ending June 30 2021 2022 2023 2024 2025 Estimated amortization expense $ 80,636 $ 72,219 $ 55,015 $ 50,628 $ 45,298 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Investments [Abstract] | |
Schedule Of Investments | 2020 2019 Equity method investments Balance at the beginning of the period $ 21,667 $ - Investments 17,500 37,500 Loss attributable to equity method investments ( 25,058 ) ( 15,833 ) Carrying value of equity method investments 14,109 21,667 Non-marketable securities Balance at the beginning of the period $ 30,436 $ 41,226 Investments 14,116 9,217 Impairment of investments ( 14,519 ) ( 15,007 ) Acquisition of controlling interest in previously held investment - ( 5,000 ) Carrying value of non-marketable securities 30,033 30,436 Total investments in unconsolidated entities $ 44,142 $ 52,103 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Accrued Expenses [Abstract] | |
Schedule Of Accrued Expenses | 2020 2019 Product warranties (note 8) $ 21,132 $ 19,625 Consulting and professional fees 18,740 12,726 Value added taxes and other taxes due 26,627 25,555 Employee related costs 148,383 123,446 Hedging instruments 427 244 Liability on receivables sold with recourse (note 17) 6,647 1,752 Accrued interest 8,313 1,683 Logistics and occupancy costs 6,350 8,137 Inventory in transit 21,679 15,175 Business acquisition contingent consideration 3,500 - Litigation settlement expenses (note 20) - 41,199 Restructuring expenses (note 19) - 5,432 Other 8,555 11,385 $ 270,353 $ 266,359 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Product Warranties [Abstract] | |
Schedule Of Changes In Liability For Warranty Costs | 2020 2019 Balance at the beginning of the period $ 19,625 $ 19,227 Warranty accruals for the period 14,167 15,416 Warranty costs incurred for the period ( 12,229 ) ( 14,634 ) Foreign currency translation adjustments ( 431 ) ( 384 ) Balance at the end of the period $ 21,132 $ 19,625 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Debt [Abstract] | |
Schedule Of Debt | 2020 2019 Short-term debt $ 12,000 $ 12,012 Deferred borrowing costs ( 13 ) ( 20 ) Short-term debt, net 11,987 11,992 - Long-term debt $ 1,168,000 $ 1,262,000 Deferred borrowing costs ( 3,867 ) ( 3,139 ) Long-term debt, net $ 1,164,133 $ 1,258,861 Total debt $ 1,176,120 $ 1,270,853 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule Of Future Minimum Lease Payments | Total 2021 2022 2023 2024 2025 Thereafter Minimum lease payments $ 143,774 $ 24,810 $ 18,084 $ 14,853 $ 12,075 $ 10,493 $ 63,459 Less: imputed interest ( 20,631 ) Total lease liabilities $ 123,143 |
Schedule Of Operating Lease Disclosure | 2020 Weighted-average inputs: Weighted-average remaining lease term (years) 9.1 Weighted-average discount rate 3.2 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 24,104 Right of use assets obtained in exchange for new lease liabilities: $ 51,663 |
Schedule Of Operating Lease Payments | Total 2020 2021 2022 2023 2024 Thereafter Remaining operating lease payments $ 98,013 $ 23,500 $ 17,161 $ 12,403 $ 9,478 $ 7,916 $ 27,555 |
Schedule Of Components Of Lease Revenue | 2020 Sales-type lease revenue $ 13,457 Operating lease revenue 87,874 Total lease revenue $ 101,331 |
Schedule Of Sales-type Lease, Net Investment In Lease | 2020 Accounts receivable, net $ 7,697 Prepaid taxes and other non-current assets 6,957 Total $ 14,654 |
Schedule Of Maturities Of Sales-type Leases | Total 2021 2022 2023 2024 2025 Thereafter Remaining lease payments $ 16,074 $ 8,034 $ 5,759 $ 2,281 $ - $ - $ - Less: imputed interest ( 1,420 ) Present value of remaining lease payments $ 14,654 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity [Abstract] | |
Schedule Of Option Activity | Options Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,260 $ 72.91 4.4 Granted 162 146.34 Exercised ( 350 ) 57.17 Forfeited ( 4 ) 110.19 Outstanding at end of period 1,068 $ 89.05 4.4 Options exercisable at end of period 641 $ 71.18 3.7 Options vested and expected to vest at end of period 1,046 $ 88.32 4.4 |
Schedule Of Activity Of Restricted Stock Units | Restricted Stock Units Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,446 $ 77.21 1.6 Granted 363 141.00 Vested* ( 929 ) 61.13 Performance factor adjustment 294 - Expired / cancelled ( 37 ) 91.66 Forfeited ( 5 ) 91.66 Outstanding at end of period 1,132 $ 103.77 1.6 * Includes 312 thousand shares netted for tax. |
Schedule Of Assumptions For Fair Value Of Stock Option Plans And Purchase Rights Granted | 2020 2019 2018 Stock options: Weighted average grant date fair value $ 32.14 $ 21.92 $ 16.68 Weighted average risk-free interest rate 1.58 % 2.96 % 2.08 % Expected life in years 4.9 4.9 4.9 Dividend yield 1.07 % 1.34 % - 1.46 % 1.46 % - 1.65 % Expected volatility 25 % 23 % 23 % ESPP purchase rights: Weighted average grant date fair value $ 31.82 $ 22.12 $ 17.44 Weighted average risk-free interest rate 1.6 % 2.4 % 0.8 % Expected life in years 6 months 6 months 6 months Dividend yield 0.98 % - 1.42 % 1.40 % - 1.47 % 1.47 % - 1.92 % Expected volatility 23 % - 60 % 23 % 23 % |
Schedule Of Total Stock-Based Compensation Costs Incurred And Associated Tax Benefit Recognized | 2020 2019 2018 Cost of sales - capitalized as part of inventory $ 3,703 $ 3,043 $ 2,990 Selling, general and administrative expenses 47,265 42,700 39,754 Research and development expenses 6,591 6,330 5,668 Stock-based compensation costs 57,559 52,073 48,412 Tax benefit ( 39,534 ) ( 26,658 ) ( 17,078 ) Stock-based compensation costs, net of tax benefit $ 18,025 $ 25,415 $ 31,334 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | 2020 2019 2018 Numerator: Net income $ 621,674 $ 404,592 $ 315,588 Denominator: Basic weighted-average common shares outstanding 144,338 143,111 142,764 Effect of dilutive securities: Stock options and restricted stock units 1,314 1,373 1,223 Diluted weighted average shares 145,652 144,484 143,987 Basic earnings per share $ 4.31 $ 2.83 $ 2.21 Diluted earnings per share $ 4.27 $ 2.80 $ 2.19 |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Other, Net [Abstract] | |
Schedule Of Other Net Income | 2020 2019 2018 Gain (loss) on foreign currency transactions and hedging, net $ 1,331 $ 1,712 $ ( 1,546 ) Impairment of equity investments (note 6) ( 14,519 ) ( 15,007 ) ( 11,593 ) Other 1,031 2,569 4,597 $ ( 12,157 ) $ ( 10,726 ) $ ( 8,542 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Income Taxes [Abstract] | |
Schedule Of Income Before Income Taxes Under The Jurisdictions | 2020 2019 2018 U.S. $ 60,548 $ ( 34,468 ) $ 42,627 Non-U.S. 672,540 553,315 478,685 $ 733,088 $ 518,847 $ 521,312 |
Schedule Of Provision For Income Taxes | 2020 2019 2018 Current: Federal $ 9,790 $ 28,658 $ 128,971 State 6,898 7,595 948 Non-U.S. 124,602 127,540 68,858 141,290 163,793 198,777 Deferred: Federal ( 13,000 ) ( 30,456 ) 9,488 State ( 3,335 ) ( 5,408 ) ( 350 ) Non-U.S. ( 13,541 ) ( 13,674 ) ( 2,191 ) ( 29,876 ) ( 49,538 ) 6,947 Provision for income taxes $ 111,414 $ 114,255 $ 205,724 |
Schedule Of Provision For Income Tax Differ From The Amount Of Income Tax | 2020 2019 2018 Taxes computed at statutory U.S. rate $ 153,949 $ 108,958 $ 146,280 Increase (decrease) in income taxes resulting from: Transition tax - 6,038 126,753 State income taxes, net of U.S. tax benefit 3,563 2,186 2,427 Research and development credit ( 13,595 ) ( 12,953 ) ( 4,089 ) Change in statutory tax rates - - 16,685 Change in valuation allowance 7,216 ( 1,118 ) ( 2,962 ) Effect of non-U.S. tax rates ( 20,935 ) 25,045 ( 70,250 ) Foreign tax credits (1) ( 4,026 ) ( 7,806 ) ( 6,473 ) Stock-based compensation expense ( 20,696 ) ( 11,534 ) ( 7,045 ) Other 5,938 5,439 4,398 $ 111,414 $ 114,255 $ 205,724 (1) In fiscal year 2018, $ 75.5 million of the foreign tax credit is included as a reduction in the transition tax. |
Components Of Deferred Tax Assets And Liabilities | 2020 2019 Deferred tax assets: Employee liabilities $ 21,272 $ 18,104 Tax credit carry overs 9,295 15,666 Inventories 9,129 4,905 Provision for warranties 3,585 3,551 Provision for doubtful debts 6,594 5,532 Net operating loss carryforwards 38,035 53,315 Capital loss carryover 10,864 6,640 Property, plant and equipment ( 724 ) 3,002 Stock-based compensation expense 6,035 10,769 Deferred revenue 15,343 9,619 Research and development capitalization 39,195 17,910 Other ( 2,282 ) ( 332 ) 156,341 148,681 Less valuation allowance ( 16,891 ) ( 11,644 ) Deferred tax assets 139,450 137,037 Deferred tax liabilities: Goodwill and other intangibles ( 111,396 ) ( 102,939 ) Deferred tax liabilities ( 111,396 ) ( 102,939 ) Net deferred tax asset $ 28,054 $ 34,098 |
Schedule Of Deferred Tax Assets And Liabilities Classified As Current And Non-Current | 2020 2019 Non-current deferred tax asset $ 41,065 $ 45,478 Non-current deferred tax liability ( 13,011 ) ( 11,380 ) Net deferred tax asset $ 28,054 $ 34,098 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Segment Information [Abstract] | |
Summary Of Revenue By Segment And Reconciling Items | 2020 2019 2018 Revenue by segment Total Sleep and Respiratory Care $ 2,602,381 $ 2,330,783 $ 2,183,193 Software as a Service 356,734 281,137 157,003 Deferred revenue fair value adjustment* ( 2,102 ) ( 5,348 ) - Total Software as a Service 354,632 275,789 157,003 Total $ 2,957,013 $ 2,606,572 $ 2,340,196 Depreciation and amortization by segment Sleep and Respiratory Care $ 69,444 $ 70,094 $ 70,366 Software as a Service 3,850 3,250 809 Amortization of acquired intangible assets and corporate costs 81,556 77,451 48,785 Total $ 154,850 $ 150,795 $ 119,960 Net operating profit by segment Sleep and Respiratory Care $ 934,697 $ 766,068 $ 656,311 Software as a Service 82,152 74,886 55,224 Total $ 1,016,849 $ 840,954 $ 711,535 Reconciling items Corporate costs $ 125,993 $ 124,682 $ 104,889 Amortization of acquired intangible assets 79,695 74,938 46,383 Litigation settlement expenses ( 600 ) 41,199 - Restructuring expenses - 9,401 18,432 Acquisition related expenses - 6,123 - Deferred revenue fair value adjustment* 2,102 5,348 - Interest expense (income), net 39,356 33,857 11,977 Loss attributable to equity method investments 25,058 15,833 - Other, net 12,157 10,726 8,542 Income before income taxes $ 733,088 $ 518,847 $ 521,312 * The deferred revenue fair value adjustment is a purchase price accounting adjustment related to MatrixCare which was acquired on November 13, 2018. |
Schedule Of Revenue By Segment, Product, And Region | 2020 2019 2018 U.S., Canada and Latin America Devices $ 792,766 $ 743,066 $ 689,603 Masks and other 779,561 677,430 600,480 Total Sleep and Respiratory Care $ 1,572,327 $ 1,420,496 $ 1,290,083 Software as a Service 354,632 275,789 157,003 Total $ 1,926,959 $ 1,696,285 $ 1,447,086 Combined Europe, Asia and other markets Devices $ 715,056 $ 618,525 $ 613,978 Masks and other 314,998 291,762 279,133 Total Sleep and Respiratory Care $ 1,030,054 $ 910,287 $ 893,111 Global revenue Devices $ 1,507,822 $ 1,361,591 $ 1,303,581 Masks and other 1,094,559 969,192 879,613 Total Sleep and Respiratory Care $ 2,602,381 $ 2,330,783 $ 2,183,194 Software as a Service 354,632 275,789 157,003 Total $ 2,957,013 $ 2,606,572 $ 2,340,197 |
Schedule Of Revenue By Geographic Area | 2020 2019 2018 United States $ 1,828,575 $ 1,588,655 $ 1,345,212 Rest of the World 1,128,438 1,017,917 994,984 Total $ 2,957,013 $ 2,606,572 $ 2,340,196 |
Schedule Of Long-Lived Assets By Geographic Areas | 2020 2019 2018 United States $ 164,155 $ 149,706 $ 142,337 Australia 162,490 165,425 173,394 Singapore 39,977 19,465 17,657 Rest of the World 50,713 52,864 53,162 Total $ 417,335 $ 387,460 $ 386,550 |
Legal Actions, Contingencies _2
Legal Actions, Contingencies And Commitments (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
Legal Actions, Contingencies And Commitments [Abstract] | |
Summary Of Receivables Sold With Recourse | 2020 2019 Full recourse $ - $ 33,954 Limited recourse 154,529 98,123 Total $ 154,529 $ 132,077 |
Summary Of Maximum Exposure On Outstanding Receivables Sold With Recourse And Provision | 2020 2019 Full recourse $ 916 $ 19,209 Limited recourse 21,890 10,241 Total $ 22,806 $ 29,450 Contingent provision for receivables with recourse $ ( 6,647 ) $ ( 1,752 ) |
Obligations Under Purchase Agreements | Fiscal Years Ending June 30 Total 2021 2022 2023 2024 2025 Thereafter Minimum purchase obligations $ 462,996 $ 458,623 $ 3,678 $ 518 $ 111 $ 66 $ - |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2020 | |
MatrixCare [Member] | |
Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives | Preliminary as of June 30, 2019 Adjustments Final Intangible assets - useful life Current assets $ 50,325 $ - $ 50,325 Property, plant and equipment 4,401 - 4,401 Trade names 18,000 - 18,000 7 years Developed technology 133,000 - 133,000 7 years Customer relationships 114,000 2,000 116,000 15 years Goodwill 517,995 5,664 523,659 Assets acquired $ 837,721 $ 7,664 $ 845,385 Current liabilities ( 13,751 ) ( 255 ) ( 14,006 ) Deferred revenue ( 18,339 ) ( 166 ) ( 18,505 ) Deferred tax liabilities ( 41,570 ) ( 7,243 ) ( 48,813 ) Debt assumed ( 151,665 ) - ( 151,665 ) Total liabilities assumed $ ( 225,325 ) $ ( 7,664 ) $ ( 232,989 ) Net assets acquired $ 612,396 $ - $ 612,396 |
Summary Of Reconciliation Of Base Consideration | Base consideration $ 750,000 Cash acquired 15,873 Debt assumed ( 151,665 ) Net working capital and other adjustments ( 1,812 ) Net consideration $ 612,396 |
Pro Forma Information | 2019 2018 Revenue $ 2,652,059 $ 2,457,242 Net income $ 446,721 $ 295,628 Basic earnings per share $ 3.12 $ 2.07 Diluted earnings per share $ 3.09 $ 2.05 |
Other Acquisitions [Member] | |
Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives | Final Intangible assets - useful life Current assets $ 31,648 Property, plant and equipment 2,290 Deferred tax assets 5,211 Trade names 7,828 10 years Non-compete 1,000 3 years Developed technology 48,280 5 to 6 years Customer relationships 53,712 5 to 15 years Goodwill 287,469 Assets acquired $ 437,438 Current liabilities ( 7,648 ) Deferred revenue ( 3,619 ) Deferred tax liabilities ( 2,367 ) Debt assumed ( 35,104 ) Total liabilities assumed $ ( 48,738 ) Net assets acquired $ 388,700 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Depreciation | $ 65,600,000 | $ 65,900,000 | $ 64,700,000 |
Impairment of intangible assets | 0 | ||
Impairment of goodwill | 0 | 0 | |
Foreign currency instruments with notional amounts | 495,200,000 | $ 496,900,000 | |
Lease liabilities | $ 123,143,000 | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue recognized, term | 1 year | ||
Estimated useful life of property, plant and equipment, years | 2 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue recognized, term | 5 years | ||
Estimated useful life of property, plant and equipment, years | 10 years | ||
Buildings [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property, plant and equipment, years | 40 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Summary Of Contract Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Contract assets | ||
Accounts receivable, net | $ 474,643 | $ 528,484 |
Contract liabilities | ||
Deferred revenue, current | (98,617) | (88,667) |
Deferred revenue, non-current | (87,307) | (81,143) |
Accounts Receivable, Net [Member] | ||
Contract assets | ||
Accounts receivable, net | 474,643 | 528,484 |
Prepaid Taxes And Other Non Current Assets [Member] | ||
Contract assets | ||
Unbilled revenue, current | 9,452 | 9,834 |
Unbilled revenue, non-current | $ 6,957 | $ 4,592 |
New Accounting Pronouncements_2
New Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2020 | Jul. 01, 2019 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU assets | $ 118,348 | ||
Lease liabilities | $ 123,143 | ||
ASU 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Estimated recognition of additional right-of-use assets and lease liabilities for operating leases | $ 3,700 | ||
Revision of Prior Period, Accounting Standards Update, Adjustment [Member] | ASU 2016-02 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease ROU assets | $ 77,600 | ||
Lease liabilities | $ 81,300 |
New Accounting Pronouncements_3
New Accounting Pronouncements (Summary Of Reconciliation Of Amortization Of Acquired Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of intangible assets | $ 49,603 | $ 42,514 | $ 27,266 |
Previously Reported [Member] | |||
Amortization of intangible assets | 74,938 | 46,383 | |
Restatement Adjustment [Member] | |||
Amortization of intangible assets | $ 32,424 | $ 19,117 |
New Accounting Pronouncements_4
New Accounting Pronouncements (Summary Of Reconciliation Of Gross Profit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Amortization of intangible assets related to cost of sales | $ (49,603) | $ (42,514) | $ (27,266) |
Gross profit | $ 1,717,786 | 1,494,071 | 1,334,898 |
Previously Reported [Member] | |||
Amortization of intangible assets related to cost of sales | (74,938) | (46,383) | |
Gross profit | $ 1,536,585 | $ 1,362,164 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Supplemental Balance Sheet Information [Abstract] | ||
Raw materials | $ 128,096 | $ 80,861 |
Work in progress | 2,807 | 2,256 |
Finished goods | 286,012 | 266,524 |
Total inventories | $ 416,915 | $ 349,641 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Components Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 969,166 | $ 898,975 |
Accumulated depreciation and amortization | (551,831) | (511,515) |
Property, plant and equipment, net | 417,335 | 387,460 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 285,287 | 262,010 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 188,036 | 173,895 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 54,275 | 51,942 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 5,513 | 7,477 |
Clinical, Demonstration And Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 95,860 | 94,007 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 60,490 | 34,210 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 51,803 | 52,406 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 227,902 | $ 223,028 |
Goodwill And Other Intangible_3
Goodwill And Other Intangible Assets, Net (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||
Impairment of goodwill | $ 0 | $ 0 | |
Amortization expense | 49,603,000 | 42,514,000 | $ 27,266,000 |
Identified Intangible Assets [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | 79,700,000 | 74,900,000 | |
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 8,300,000 | $ 8,100,000 | |
Minimum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful life | 2 years | ||
Maximum [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful life | 15 years |
Goodwill And Other Intangible_4
Goodwill And Other Intangible Assets, Net (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Balance at the beginning of the period | $ 1,856,449 |
Business acquisitions | 20,375 |
Adjustment to fair values of preliminary purchase price allocations | 16,809 |
Foreign currency translation adjustments | (3,309) |
Balance at the end of the period | 1,890,324 |
Sleep And Respiratory Care [Member] | |
Balance at the beginning of the period | 616,965 |
Business acquisitions | 266 |
Adjustment to fair values of preliminary purchase price allocations | 526 |
Foreign currency translation adjustments | (3,309) |
Balance at the end of the period | 614,448 |
Saas [Member] | |
Balance at the beginning of the period | 1,239,484 |
Business acquisitions | 20,109 |
Adjustment to fair values of preliminary purchase price allocations | 16,283 |
Foreign currency translation adjustments | |
Balance at the end of the period | $ 1,275,876 |
Goodwill And Other Intangible_5
Goodwill And Other Intangible Assets, Net (Schedule Of Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, net | $ 448,168 | $ 521,950 |
Developed/Core Product Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 382,806 | 401,842 |
Accumulated amortization | (197,670) | (157,651) |
Total other intangibles, net | 185,136 | 244,191 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 279,370 | 273,114 |
Accumulated amortization | (80,922) | (68,630) |
Total other intangibles, net | 198,448 | 204,484 |
Other Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 177,091 | 176,351 |
Accumulated amortization | (112,507) | (103,076) |
Total other intangibles, net | $ 64,584 | $ 73,275 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 2 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 15 years |
Goodwill And Other Intangible_6
Goodwill And Other Intangible Assets, Net (Schedule Of Amortization Expense Related To Identifiable Intangible Assets, Including Patents) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Goodwill And Other Intangible Assets, Net [Abstract] | |
2021 | $ 80,636 |
2022 | 72,219 |
2023 | 55,015 |
2024 | 50,628 |
2025 | $ 45,298 |
Investments (Schedule Of Invest
Investments (Schedule Of Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Equity Method Investments | |||
Balance at the beginning of the period | $ 21,667 | ||
Investments | 17,500 | $ 37,500 | |
Loss attributable to equity method investments | 25,058 | 15,833 | |
Carrying value of equity method investments | 14,109 | 21,667 | |
Non-marketable Securities | |||
Balance at the beginning of the period | 30,436 | 41,226 | |
Investments | 14,116 | 9,217 | |
Impairment of investments | (14,519) | (15,007) | $ (11,593) |
Acquisition of controlling interest in previously held investment | (5,000) | ||
Carrying value of non-marketable securities | 30,033 | 30,436 | $ 41,226 |
Total investments in unconsolidated entities | $ 44,142 | $ 52,103 |
Accrued Expenses (Schedule Of A
Accrued Expenses (Schedule Of Accrued Expenses) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Accrued Expenses [Abstract] | ||
Product warranties (note 8) | $ 21,132 | $ 19,625 |
Consulting and professional fees | 18,740 | 12,726 |
Value added taxes and other taxes due | 26,627 | 25,555 |
Employee related costs | 148,383 | 123,446 |
Hedging instruments | 427 | 244 |
Liability on receivables sold with recourse (note 17) | 6,647 | 1,752 |
Accrued interest | 8,313 | 1,683 |
Logistics and occupancy costs | 6,350 | 8,137 |
Inventory in transit | 21,679 | 15,175 |
Business acquisition contingent consideration | 3,500 | |
Litigation settlement expenses (note 20) | 41,199 | |
Restructuring expenses (note 19) | 5,432 | |
Other | 8,555 | 11,385 |
Total accrued expenses | $ 270,353 | $ 266,359 |
Product Warranties (Schedule Of
Product Warranties (Schedule Of Changes In Liability For Warranty Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Product Warranties [Abstract] | ||
Balance at the beginning of the period | $ 19,625 | $ 19,227 |
Warranty accruals for the period | 14,167 | 15,416 |
Warranty costs incurred for the period | (12,229) | (14,634) |
Foreign currency translation adjustments | (431) | (384) |
Balance at the end of the period | $ 21,132 | $ 19,625 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) | Nov. 05, 2018 | Apr. 17, 2018 | Jun. 30, 2020 | Jul. 10, 2019 | Jun. 30, 2019 | Nov. 04, 2018 |
Debt Instrument [Line Items] | ||||||
Debt to consolidated EBITDA ratio | 3.50 | |||||
Outstanding debt | $ 1,176,120,000 | $ 1,270,853,000 | ||||
Outstanding loan balance | 1,164,133,000 | 1,258,861,000 | ||||
Revolving Credit Facility And Term Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Available for draw | 1,100,000,000 | |||||
Principal payment | 6,000,000 | |||||
Long-term debt, fair value | $ 680,000,000 | $ 1,274,000,000 | ||||
MUFG Union Bank [Member] | ResMed Limited [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 200,000,000 | |||||
MUFG Union Bank, N.A. and Westpac Banking Corporation [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 1,600,000,000 | 800,000,000 | $ 800,000,000 | |||
Uncommitted option to increase credit facility | $ 300,000,000 | $ 300,000,000 | ||||
MUFG Union Bank, N.A. and Westpac Banking Corporation [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate on outstanding principal amount | 1.20% | |||||
Minimum [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility interest rate equal to reference rate plus | 0.75% | |||||
Minimum [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility interest rate equal to reference rate plus | 0.00% | |||||
Minimum [Member] | MUFG Union Bank, N.A. and Westpac Banking Corporation [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage rate on unused portion of credit facility | 0.10% | |||||
Maximum [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility interest rate equal to reference rate plus | 1.50% | |||||
Maximum [Member] | Revolving Credit Facility And Term Credit Agreement [Member] | Base Rate [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Credit facility interest rate equal to reference rate plus | 0.50% | |||||
Maximum [Member] | MUFG Union Bank, N.A. and Westpac Banking Corporation [Member] | Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Commitment fees percentage rate on unused portion of credit facility | 0.175% | |||||
Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding loan balance | $ 500,000,000 | |||||
Long-term debt, fair value | $ 538,900,000 | |||||
3.24% Senior Notes Due July 10, 2026 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 250,000,000 | |||||
Interest rate | 3.24% | |||||
3.45% Senior Notes Due July 10, 2029 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Principal amount | $ 250,000,000 | |||||
Interest rate | 3.45% | |||||
Revolving Credit Agreement, Term Credit Agreement, And Senior Notes [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Outstanding debt | $ 1,180,000,000 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Debt [Abstract] | ||
Short-term debt | $ 12,000 | $ 12,012 |
Deferred borrowing costs | (13) | (20) |
Short-term debt, net | 11,987 | 11,992 |
Long-term debt | 1,168,000 | 1,262,000 |
Deferred borrowing costs | (3,867) | (3,139) |
Long-term debt, net | 1,164,133 | 1,258,861 |
Total debt | $ 1,176,120 | $ 1,270,853 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2017 | |
Operating lease costs | $ 26.5 | |||
Expense for operating leases | $ 23.4 | $ 21.1 | $ 20.1 | |
Operating lease commitments not yet commenced | $ 14.1 | |||
Maximum [Member] | ||||
Lease terms | 15 years | |||
Lease terms, not yet commenced | 11 years | |||
Minimum [Member] | ||||
Lease terms | 1 year | |||
Lease terms, not yet commenced | 1 year |
Leases (Schedule Of Future Mini
Leases (Schedule Of Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 24,810 |
2022 | 18,084 |
2023 | 14,853 |
2024 | 12,075 |
2025 | 10,493 |
Thereafter | 63,459 |
Total minumum lease payments | 143,774 |
Less: imputed interest | (20,631) |
Total lease liabilities | $ 123,143 |
Leases (Schedule Of Operating L
Leases (Schedule Of Operating Lease Disclosure) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Abstract] | |
Weighted-average remaining lease term (years) | 9 years 1 month 6 days |
Weighted-average discount rate | 3.20% |
Operating cash flows paid for amounts included in the measurement of lease liabilities | $ 24,104 |
Right of use assets obtained in exchange for new lease liabilities | $ 51,663 |
Leases (Schedule Of Operating_2
Leases (Schedule Of Operating Lease Payments) (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Commitments [Abstract] | |
2020 | $ 23,500 |
2021 | 17,161 |
2022 | 12,403 |
2023 | 9,478 |
2024 | 7,916 |
Thereafter | 27,555 |
Total remaining operating lease payments | $ 98,013 |
Leases (Schedule Of Components
Leases (Schedule Of Components Of Lease Revenue) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2020USD ($) | |
Leases [Abstract] | |
Sales-type lease revenue | $ 13,457 |
Operating lease revenue | 87,874 |
Total lease revenue | $ 101,331 |
Leases (Schedule Of Sales-type
Leases (Schedule Of Sales-type Lease, Net Investment In Lease) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
Accounts receivable, net | $ 7,697 |
Prepaid taxes and other non-current assets | 6,957 |
Total | $ 14,654 |
Leases (Schedule Of Maturities
Leases (Schedule Of Maturities Of Sales-type Leases) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 8,034 |
2022 | 5,759 |
2023 | 2,281 |
Total remaining lease payments | 16,074 |
Less: imputed interest | (1,420) |
Present value of remaining lease payments | $ 14,654 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | Nov. 30, 2017USD ($)shares | Nov. 30, 2017USD ($)shares | Jun. 30, 2020USD ($)item$ / sharesshares | Jun. 30, 2019USD ($)$ / sharesshares | Jun. 30, 2018USD ($)shares | Feb. 21, 2014shares | Apr. 30, 1997$ / sharesshares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Shares authorized to be repurchased under repurchase program | shares | 20,000,000 | ||||||
Cost of common shares repurchased | $ | $ 22,845,000 | $ 53,803,000 | |||||
Total number of shares repurchased pursuant to the repurchase program | shares | 41,836,234 | 41,836,234 | |||||
Total cost of shares repurchased pursuant to the repurchase program | $ | $ 1,623,256,000 | $ 1,623,256,000 | |||||
Additional shares that can be repurchased under the approved share repurchase program | shares | 12,900,000 | ||||||
Preferred stock, shares authorized | shares | 2,000,000 | 2,000,000 | 2,000,000 | ||||
Preferred stock at par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||||
Preferred stock, shares issued | shares | 0 | 0 | |||||
Preferred stock, shares outstanding | shares | 0 | ||||||
Expiration period | 7 years | ||||||
Reduction in the number of shares of common stock available for issuance | 2.8 | ||||||
Maximum number of shares subject to awards granted | shares | 3,000,000 | ||||||
Number of common stock shares granted in participant's initial year of hiring | shares | 4,500,000 | ||||||
Fair value of RSUs and PRSUs | $ | $ 56,800,000 | $ 52,300,000 | 34,600,000 | ||||
Aggregate intrinsic value of the options exercised | $ | 31,200,000 | $ 15,100,000 | $ 27,500,000 | ||||
Aggregate intrinsic value of the stock-based compensation arrangements outstanding | $ | 110,000,000 | ||||||
Aggregate intrinsic value of the stock-based compensation arrangements exercisable | $ | 77,400,000 | ||||||
Aggregate intrinsic value of the stock-based compensation arrangements exercisable, vested and expected to vest | $ | $ 108,500,000 | ||||||
Shares issued under Employee Stock Purchase Plan | shares | 265,000 | 285,000 | 302,000 | ||||
Number of offerings for Employee Stock Purchase Plan | item | 2 | ||||||
Stock-based compensation expense | $ | $ 57,559,000 | $ 52,073,000 | $ 48,412,000 | ||||
Unrecognized compensation costs related to unvested stock-based compensation arrangements | $ | $ 92,600,000 | ||||||
Expected weighted average period of unrecognized compensation costs related to unvested stock-based compensation arrangements | 2 years 2 months 12 days | ||||||
Treasury Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Common shares repurchased under repurchase program | shares | 200,000 | 550,000 | |||||
Cost of common shares repurchased | $ | $ 22,844,000 | $ 53,801,000 | |||||
Total number of shares repurchased pursuant to the repurchase program | shares | 41,800,000 | ||||||
Total cost of shares repurchased pursuant to the repurchase program | $ | $ 1,600,000,000 | ||||||
Shares issued under Employee Stock Purchase Plan | shares | |||||||
2009 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Extended period | 4 years | ||||||
Expiration date | Sep. 11, 2027 | ||||||
Common stock authorized for issuance | shares | 51,100,000 | ||||||
Common stock authorized for issuance and pending registration | shares | 7,400,000 | 7,400,000 | |||||
Number of securities remaining available for future issuance | shares | 15,800,000 | ||||||
Amended And Restated 2009 Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum amount payable pursant to cash denominated performance awards granted | $ | $ 3,000,000 | $ 5,000,000 | |||||
Amended And Restated 2009 Plan [Member] | Non Employee Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum award amount with other cash fees earned for services | $ | 700,000 | ||||||
Amended And Restated 2009 Plan [Member] | Board Of Directors Chairman [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Maximum award amount with other cash fees earned for services | $ | $ 1,200,000 | ||||||
Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of securities remaining available for future issuance | shares | 2,000,000 | ||||||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of grant | 85.00% | ||||||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of purchase | 85.00% | ||||||
Stock-based compensation expense | $ | $ 8,000,000 | $ 6,400,000 | $ 5,200,000 | ||||
Minimum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 1 year | ||||||
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase program offering period | 3 months | ||||||
Maximum [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 4 years | ||||||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Employee stock purchase program offering period | 27 months | ||||||
Common stock shares subscribed | $ | $ 25,000 | ||||||
Performance Restricted Stock Units (PRSUs) [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting period | 3 years | ||||||
Maximum amount to be issued under award, percentage | 225.00% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Activity Of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units, Outstanding at beginning of period | 1,446,000 | ||
Restricted Stock Units, Granted | 363,000 | ||
Restricted Stock Units, Vested | [1] | (929,000) | |
Restricted Stock Units, Performance factor adjustment | (294,000) | ||
Restricted Stock Units, Expired / cancelled | (37,000) | ||
Restricted Stock Units, Forfeited | (5,000) | ||
Restricted Stock Units, Outstanding at end of period | 1,132,000 | 1,446,000 | |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ 77.21 | ||
Weighted Average Grant-Date Fair Value, Granted | 141 | ||
Weighted Average Grant-Date Fair Value, Vested | [1] | 61.13 | |
Weighted Average Grant-Date Fair Value, Performance factor adjustments | |||
Weighted Average Grant-Date Fair Value, Expired / cancelled | 91.66 | ||
Weighted Average Grant-Date Fair Value, Forfeited | 91.66 | ||
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ 103.77 | $ 77.21 | |
Weighted Average Remaining Contractual Term in Years, Outstanding | 1 year 7 months 6 days | 1 year 7 months 6 days | |
Exercisable shares, netted for tax | 312 | ||
[1] | Includes 312 thousand shares netted for tax. |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule Of Option Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Stockholders' Equity [Abstract] | ||
Options, Outstanding at beginning of period | 1,260 | |
Options, Granted | 162 | |
Options, Exercised | (350) | |
Options, Forfeited | (4) | |
Options, Outstanding at end of period | 1,068 | 1,260 |
Options exercisable at end of period | 641 | |
Options vested and expected to vest at end of period | 1,046 | |
Weighted Average Exercise Price, Outstanding at beginning of period | $ 72.91 | |
Weighted Average Exercise Price, Granted | 146.34 | |
Weighted Average Exercise Price, Exercised | 57.17 | |
Weighted Average Exercise Price, Forfeited | 110.19 | |
Weighted Average Exercise Price, Outstanding at end of period | 89.05 | $ 72.91 |
Weighted Average Exercise Price, Options exercisable at end of period | 71.18 | |
Weighted Average Exercise Price, Options vested and expected to vest at end of period | $ 88.32 | |
Weighted Average Remaining Contractual Term in Years, Outstanding at end of period | 4 years 4 months 24 days | 4 years 4 months 24 days |
Weighted Average Remaining Contractual Term in Years, Options exercisable at end of period | 3 years 8 months 12 days | |
Weighted Average Remaining Contractual Term in Years, Options vested and expected to vest at end of period | 4 years 4 months 24 days |
Stockholders' Equity (Schedul_3
Stockholders' Equity (Schedule Of Assumptions For Fair Value Of Stock Option Plans And Purchase Rights Granted) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 25.00% | 23.00% | 23.00% |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 32.14 | $ 21.92 | $ 16.68 |
Weighted average risk-free interest rate | 1.58% | 2.96% | 2.08% |
Expected life in years | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Dividend yield | 1.07% | ||
ESPP Purchase Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value | $ 31.82 | $ 22.12 | $ 17.44 |
Weighted average risk-free interest rate | 1.60% | 2.40% | 0.80% |
Expected life in years | 6 months | 6 months | 6 months |
Expected volatility | 23.00% | 23.00% | |
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.34% | 1.46% | |
Minimum [Member] | ESPP Purchase Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.98% | 1.40% | 1.47% |
Expected volatility | 23.00% | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.46% | 1.65% | |
Maximum [Member] | ESPP Purchase Rights [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 1.42% | 1.47% | 1.92% |
Expected volatility | 60.00% |
Stockholders' Equity (Schedul_4
Stockholders' Equity (Schedule Of Total Stock-Based Compensation Costs Incurred And Associated Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | $ 57,559 | $ 52,073 | $ 48,412 |
Tax benefit | (39,534) | (26,658) | (17,078) |
Stock-based compensation costs, net of tax benefit | 18,025 | 25,415 | 31,334 |
Cost of Sales - Capitalized As Part Of Inventory [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 3,703 | 3,043 | 2,990 |
Selling, General And Administrative Expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | 47,265 | 42,700 | 39,754 |
Research And Development Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation costs | $ 6,591 | $ 6,330 | $ 5,668 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Stock options and restricted stock units not included in the computation of diluted earnings per share | 164,000 | 200,000 | 153,000 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator: | |||
Net income | $ 621,674 | $ 404,592 | $ 315,588 |
Denominator: | |||
Basic weighted-average common shares outstanding | 144,338 | 143,111 | 142,764 |
Effect of dilutive securities: | |||
Stock options and restricted stock units | 1,314 | 1,373 | 1,223 |
Diluted weighted average shares | 145,652 | 144,484 | 143,987 |
Basic earnings per share | $ 4.31 | $ 2.83 | $ 2.21 |
Diluted earnings per share | $ 4.27 | $ 2.80 | $ 2.19 |
Other, Net (Schedule Of Other N
Other, Net (Schedule Of Other Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Other, Net [Abstract] | |||
Gain (loss) on foreign currency transactions and hedging, net | $ 1,331 | $ 1,712 | $ (1,546) |
Impairment of investments | (14,519) | (15,007) | (11,593) |
Other | 1,031 | 2,569 | 4,597 |
Other, net | $ (12,157) | $ (10,726) | $ (8,542) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Line Items] | ||||||
Additional income tax benefits as an increase to earnings | $ 39,534 | $ 26,658 | $ 17,078 | |||
Income taxes paid | 180,359 | 242,860 | 170,653 | |||
Income taxes payable | 64,755 | 73,248 | ||||
Income tax expense from transition tax | $ 124,602 | $ 127,540 | $ 68,858 | |||
Payable period of additional tax expense | 8 years | |||||
U.S. Federal income tax rate | 21.00% | 21.00% | 28.00% | |||
Increase to net earnings from tax holidays and tax incentives program | $ 43,800 | $ 20,300 | ||||
Increase to net earnings per diluted share from tax holidays and tax incentives program | $ 0.30 | $ 0.14 | ||||
Additional tax expense | $ 6,038 | $ 126,753 | ||||
Undistributed earnings | $ 3,000,000 | |||||
Tax cuts and jobs act, income tax expense (benefit) | 138,000 | |||||
Transition tax | $ 6,000 | |||||
Extraordinary Dispositions [Member] | ||||||
Income Taxes [Line Items] | ||||||
Amount of deferred taxes that would have been recognized if the earnings has not been permanently reinvested | $ 194,400 | |||||
Tax Year 2018 [Member] | Scenario, Plan [Member] | ||||||
Income Taxes [Line Items] | ||||||
Additional income tax expense from adjustment of deferred tax assets | 11,100 | |||||
Transition tax | 126,900 | |||||
Australian Taxation Office [Member] | ||||||
Income Taxes [Line Items] | ||||||
Percentage of penalties on additional income tax | 50.00% | |||||
Tax liabilities related to assessments | $ 75,900 | $ 75,900 | $ 151,700 | |||
Income taxes paid | $ 75,900 | |||||
Interest related to assessments | 38,400 | |||||
Income taxes payable | $ 75,900 | $ 151,700 | 75,900 | |||
Percentage of recognized tax benefit for uncertain tax position | 50.00% | |||||
Australian Taxation Office [Member] | Minimum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax year under audit | 2009 | |||||
Australian Taxation Office [Member] | Maximum [Member] | ||||||
Income Taxes [Line Items] | ||||||
Tax year under audit | 2013 | |||||
Domestic Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | $ 30,400 | |||||
Amount of deferred taxes that would have been recognized if the earnings has not been permanently reinvested | 5,200 | |||||
Tax cuts and jobs act, income tax expense (benefit) | $ 138,000 | |||||
Foreign Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | 6,800 | |||||
Tax cuts and jobs act, income tax expense (benefit) | 6,000 | $ 126,900 | ||||
Valuation Allowance | Foreign Tax Authority [Member] | ||||||
Income Taxes [Line Items] | ||||||
Operating loss carryforwards | 1,600 | |||||
Capital loss | $ 15,300 |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Before Income Taxes Under The Jurisdictions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Abstract] | |||
U.S. | $ 60,548 | $ (34,468) | $ 42,627 |
Non-U.S. | 672,540 | 553,315 | 478,685 |
Income before income taxes | $ 733,088 | $ 518,847 | $ 521,312 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Taxes [Abstract] | |||
Current: Federal | $ 9,790 | $ 28,658 | $ 128,971 |
Current: State | 6,898 | 7,595 | 948 |
Current: Non-U.S. | 124,602 | 127,540 | 68,858 |
Current, Total | 141,290 | 163,793 | 198,777 |
Deferred: Federal | (13,000) | (30,456) | 9,488 |
Deferred: State | (3,335) | (5,408) | (350) |
Deferred: Non-U.S. | (13,541) | (13,674) | (2,191) |
Deferred, Total | (29,876) | (49,538) | 6,947 |
Provision for income taxes | $ 111,414 | $ 114,255 | $ 205,724 |
Income Taxes (Schedule Of Pro_2
Income Taxes (Schedule Of Provision For Income Tax Differ From The Amount Of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Income Taxes [Abstract] | ||||
Taxes computed at statutory U.S. rate | $ 153,949 | $ 108,958 | $ 146,280 | |
Transition tax | 6,038 | 126,753 | ||
State income taxes, net of U.S. tax benefit | 3,563 | 2,186 | 2,427 | |
Research and development credit | (13,595) | (12,953) | (4,089) | |
Change in statutory tax rates | 16,685 | |||
Change in valuation allowance | 7,216 | (1,118) | (2,962) | |
Effect of non-U.S. tax rates | (20,935) | 25,045 | (70,250) | |
Foreign tax credits | [1] | (4,026) | (7,806) | (6,473) |
Stock-based compensation expense | (20,696) | (11,534) | (7,045) | |
Other | 5,938 | 5,439 | 4,398 | |
Provision for income taxes | $ 111,414 | 114,255 | $ 205,724 | |
Foreign tax credit included as a reduction in transition tax | $ 75,500 | |||
[1] | In fiscal year 2018, $ 75.5 million of the foreign tax credit is included as a reduction in the transition tax. |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Income Taxes [Abstract] | ||
Employee liabilities | $ 21,272 | $ 18,104 |
Tax credit carry overs | 9,295 | 15,666 |
Inventories | 9,129 | 4,905 |
Provision for warranties | 3,585 | 3,551 |
Provision for doubtful debts | 6,594 | 5,532 |
Net operating loss carryforwards | 38,035 | 53,315 |
Capital loss carryover | 10,864 | 6,640 |
Property, plant and equipment | (724) | |
Property, plant and equipment | 3,002 | |
Stock-based compensation expense | 6,035 | 10,769 |
Deferred revenue | 15,343 | 9,619 |
Research and development capitalization | 39,195 | 17,910 |
Other | (2,282) | (332) |
Deferred tax assets, Gross | 156,341 | 148,681 |
Less valuation allowance | (16,891) | (11,644) |
Deferred tax assets | 139,450 | 137,037 |
Goodwill and other intangibles | (111,396) | (102,939) |
Deferred tax liabilities | (111,396) | (102,939) |
Net deferred tax asset | $ 28,054 | $ 34,098 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities Classified As Current And Non-Current) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Income Taxes [Abstract] | ||
Non-current deferred tax asset | $ 41,065 | $ 45,478 |
Non-current deferred tax liability | (13,011) | (11,380) |
Net deferred tax asset | $ 28,054 | $ 34,098 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2020segment | |
Segment Information [Abstract] | |
Number of Reportable Segments | 2 |
Segment Information (Summary Of
Segment Information (Summary Of Revenue By Segment And Reconciling Items) (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2020 | ||
Segment Reporting Information [Line Items] | |||||
Revenues | $ 2,957,013,000 | $ 2,606,572,000 | $ 2,340,196,000 | ||
Depreciation and amortization | 154,850,000 | 150,795,000 | 119,960,000 | ||
Operating Income (Loss) | 809,659,000 | 579,263,000 | 541,831,000 | ||
Amortization of acquired intangible assets | 30,092,000 | 32,424,000 | 19,117,000 | ||
Litigation settlement expenses | (600,000) | 41,199,000 | $ 0 | ||
Restructuring expenses | 9,401,000 | 18,432,000 | |||
Acquisition related expenses | 0 | 6,100,000 | |||
Interest income | (1,021,000) | (2,299,000) | (16,378,000) | ||
Interest expense (income), net | 40,377,000 | 36,156,000 | 28,355,000 | ||
Loss attributable to equity method investments | (25,058,000) | (15,833,000) | |||
Other, net | (12,157,000) | (10,726,000) | (8,542,000) | ||
Income before income taxes | 733,088,000 | 518,847,000 | 521,312,000 | ||
Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Operating Income (Loss) | 1,016,849,000 | 840,954,000 | 711,535,000 | ||
Corporate Costs [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Depreciation and amortization | 81,556,000 | 77,451,000 | 48,785,000 | ||
Segment Reconciling Items [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Deferred revenue fair value adjustment | [1] | (2,102,000) | (5,348,000) | ||
Corporate costs | 125,993,000 | 124,682,000 | 104,889,000 | ||
Amortization of acquired intangible assets | 79,695,000 | 74,938,000 | 46,383,000 | ||
Litigation settlement expenses | (600,000) | 41,199,000 | |||
Restructuring expenses | 9,401,000 | 18,432,000 | |||
Acquisition related expenses | 6,123,000 | ||||
Deferred revenue fair value adjustment | [1] | 2,102,000 | 5,348,000 | ||
Interest expense (income), net | 39,356,000 | 33,857,000 | 11,977,000 | ||
Loss attributable to equity method investments | 25,058,000 | 15,833,000 | |||
Other, net | 12,157,000 | 10,726,000 | 8,542,000 | ||
Income before income taxes | 733,088,000 | 518,847,000 | 521,312,000 | ||
Sleep And Respiratory Care [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 2,602,381,000 | 2,330,783,000 | 2,183,193,000 | ||
Depreciation and amortization | 69,444,000 | 70,094,000 | 70,366,000 | ||
Operating Income (Loss) | 934,697,000 | 766,068,000 | 656,311,000 | ||
Software As A Service Before Deferred Revenue Adjustment [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 356,734,000 | 281,137,000 | 157,003,000 | ||
Software As A Service [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Deferred revenue fair value adjustment | [1] | (2,102,000) | (5,348,000) | ||
Deferred revenue fair value adjustment | [1] | 2,102,000 | 5,348,000 | ||
Software As A Service [Member] | Operating Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 354,632,000 | 275,789,000 | 157,003,000 | ||
Depreciation and amortization | 3,850,000 | 3,250,000 | 809,000 | ||
Operating Income (Loss) | $ 82,152,000 | $ 74,886,000 | $ 55,224,000 | ||
[1] | The deferred revenue fair value adjustment is a purchase price accounting adjustment related to MatrixCare which was acquired on November 13, 2018. |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue By Segment, Product, And Region) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net revenue | $ 2,957,013 | $ 2,606,572 | $ 2,340,196 |
U.S., Canada And Latin America [Member] | |||
Net revenue | 1,926,959 | 1,696,285 | 1,447,086 |
Global [Member] | |||
Net revenue | 2,957,013 | 2,606,572 | 2,340,197 |
Operating Segments [Member] | Devices [Member] | U.S., Canada And Latin America [Member] | |||
Net revenue | 792,766 | 743,066 | 689,603 |
Operating Segments [Member] | Devices [Member] | Combined Europe, Asia And Other Markets [Member] | |||
Net revenue | 715,056 | 618,525 | 613,978 |
Operating Segments [Member] | Devices [Member] | Global [Member] | |||
Net revenue | 1,507,822 | 1,361,591 | 1,303,581 |
Operating Segments [Member] | Masks And Other [Member] | U.S., Canada And Latin America [Member] | |||
Net revenue | 779,561 | 677,430 | 600,480 |
Operating Segments [Member] | Masks And Other [Member] | Combined Europe, Asia And Other Markets [Member] | |||
Net revenue | 314,998 | 291,762 | 279,133 |
Operating Segments [Member] | Masks And Other [Member] | Global [Member] | |||
Net revenue | 1,094,559 | 969,192 | 879,613 |
Operating Segments [Member] | Sleep And Respiratory Care [Member] | U.S., Canada And Latin America [Member] | |||
Net revenue | 1,572,327 | 1,420,496 | 1,290,083 |
Operating Segments [Member] | Sleep And Respiratory Care [Member] | Combined Europe, Asia And Other Markets [Member] | |||
Net revenue | 1,030,054 | 910,287 | 893,111 |
Operating Segments [Member] | Sleep And Respiratory Care [Member] | Global [Member] | |||
Net revenue | 2,602,381 | 2,330,783 | 2,183,194 |
Operating Segments [Member] | Software As A Service [Member] | U.S., Canada And Latin America [Member] | |||
Net revenue | 354,632 | 275,789 | 157,003 |
Operating Segments [Member] | Software As A Service [Member] | Global [Member] | |||
Net revenue | $ 354,632 | $ 275,789 | $ 157,003 |
Segment Information (Schedule_2
Segment Information (Schedule Of Revenue By Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 2,957,013 | $ 2,606,572 | $ 2,340,196 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 1,828,575 | 1,588,655 | 1,345,212 |
Rest Of The World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 1,128,438 | $ 1,017,917 | $ 994,984 |
Segment Information (Schedule_3
Segment Information (Schedule Of Long-Lived Assets By Geographic Areas) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | $ 417,335 | $ 387,460 | $ 386,550 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | 164,155 | 149,706 | 142,337 |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | 162,490 | 165,425 | 173,394 |
Singapore | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | 39,977 | 19,465 | 17,657 |
Rest Of The World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | $ 50,713 | $ 52,864 | $ 53,162 |
Employee Retirement Plans (Narr
Employee Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Australia Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 9.50% | ||
Total contribution by the company to the employee retirement plans | $ 9.5 | $ 10 | $ 10.5 |
United States Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 4.00% | ||
Total contribution by the company to the employee retirement plans | $ 9.3 | 6.7 | 5 |
Singapore Plan [Member] | Foreign Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 17.00% | ||
Total contribution by the company to the employee retirement plans | $ 2.9 | $ 2.6 | $ 2.2 |
Legal Actions, Contingencies _3
Legal Actions, Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jun. 30, 2018 | Apr. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2020 | |
Loss Contingencies [Line Items] | |||||
Income taxes payable | $ 73,248 | $ 64,755 | |||
Australian Taxation Office [Member] | |||||
Loss Contingencies [Line Items] | |||||
Percentage of penalties on additional income tax | 50.00% | ||||
Income taxes payable | $ 75,900 | $ 151,700 | |||
Tax liabilities related to assessments | $ 75,900 | $ 75,900 | 151,700 | ||
Interest related to assessments | $ 38,400 | ||||
Minimum [Member] | Australian Taxation Office [Member] | |||||
Loss Contingencies [Line Items] | |||||
Tax year under audit | 2009 | ||||
Maximum [Member] | Australian Taxation Office [Member] | |||||
Loss Contingencies [Line Items] | |||||
Tax year under audit | 2013 |
Legal Actions, Contingencies _4
Legal Actions, Contingencies And Commitments (Summary Of Receivables Sold With Recourse) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Total receivables sold | $ 154,529 | $ 132,077 |
Full Recourse [Member] | ||
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Total receivables sold | 33,954 | |
Limited Recourse [Member] | ||
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Total receivables sold | $ 154,529 | $ 98,123 |
Legal Actions, Contingencies _5
Legal Actions, Contingencies And Commitments (Summary Of Maximum Exposure On Outstanding Receivables Sold With Recourse And Provision) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Jun. 30, 2019 |
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Maximum exposure on outstanding receivables | $ 22,806 | $ 29,450 |
Contingent provision for receivables with recourse | (6,647) | (1,752) |
Full Recourse [Member] | ||
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Maximum exposure on outstanding receivables | 916 | 19,209 |
Limited Recourse [Member] | ||
Contingent Obligations Under Recourse Provisions [Line Items] | ||
Maximum exposure on outstanding receivables | $ 21,890 | $ 10,241 |
Legal Actions, Contingencies _6
Legal Actions, Contingencies And Commitments (Obligations Under Purchase Agreements) (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Legal Actions, Contingencies And Commitments [Abstract] | |
2021 | $ 458,623 |
2022 | 3,678 |
2023 | 518 |
2024 | 111 |
2025 | 66 |
Total minimum purchase obligations | $ 462,996 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) | Jan. 06, 2019 | Nov. 13, 2018 | Jul. 06, 2018 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 31, 2020 | Oct. 15, 2018 |
Business Combinations [Line Items] | ||||||||
Income (loss) from operations | $ 733,088,000 | $ 518,847,000 | $ 521,312,000 | |||||
Revenues | 2,957,013,000 | 2,606,572,000 | 2,340,196,000 | |||||
Income tax expense (benefit) | 111,414,000 | 114,255,000 | 205,724,000 | |||||
Amortization of intangible assets | $ 49,603,000 | $ 42,514,000 | $ 27,266,000 | |||||
U.S. Federal income tax rate | 21.00% | 21.00% | 28.00% | |||||
Acquisition related expenses | $ 0 | $ 6,100,000 | ||||||
Pro Forma [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Acquisition related expenses | 3,700,000 | |||||||
SnapWorx, LLC [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Percentage of acquisition shares | 100.00% | |||||||
MatrixCare [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Percentage of acquisition shares | 100.00% | |||||||
Total purchase price of acquisition | $ 750,000,000 | 750,000,000 | ||||||
Revenues | 79,200,000 | |||||||
Gain (loss) from acquisition | (9,100,000) | |||||||
Amortization of intangible assets | 19,000,000 | |||||||
Deferred revenue fair value adjustment | $ 5,300,000 | |||||||
MatrixCare [Member] | Excluding Impact Of Fair Value Purchase Price Adjustment To Deferred Revenue [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Revenues | 84,600,000 | |||||||
Gain (loss) from acquisition | 15,300,000 | |||||||
MatrixCare [Member] | Pro Forma [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Income tax expense (benefit) | 1,800,000 | $ 3,200,000 | ||||||
Amortization of intangible assets | 600,000 | 8,300,000 | ||||||
Net interest expense associated with debt issued | 2,600,000 | $ 12,700,000 | ||||||
Acquisition related expenses | 16,700,000 | |||||||
Healthcarefirst [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Percentage of acquisition shares | 100.00% | |||||||
Total purchase price of acquisition | $ 126,300,000 | |||||||
HB Healthcare [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Percentage of acquisition shares | 100.00% | |||||||
Propeller Health [Member] | ||||||||
Business Combinations [Line Items] | ||||||||
Total purchase price of acquisition | $ 242,900,000 | |||||||
Fair value gain | $ 1,900,000 |
Business Combinations (Fair Val
Business Combinations (Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Business Combinations [Line Items] | ||
Goodwill | $ 1,890,324 | $ 1,856,449 |
MatrixCare [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 50,325 | |
Property, plant and equipment | 4,401 | |
Goodwill | 523,659 | |
Assets acquired | 845,385 | |
Current liabilities | (14,006) | |
Deferred revenue | (18,505) | |
Deferred tax liabilities | (48,813) | |
Debt assumed | (151,665) | |
Total liabilities assumed | (232,989) | |
Net assets acquired | 612,396 | |
MatrixCare [Member] | Previously Reported [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 50,325 | |
Property, plant and equipment | 4,401 | |
Goodwill | 517,995 | |
Assets acquired | 837,721 | |
Current liabilities | (13,751) | |
Deferred revenue | (18,339) | |
Deferred tax liabilities | (41,570) | |
Debt assumed | (151,665) | |
Total liabilities assumed | (225,325) | |
Net assets acquired | 612,396 | |
MatrixCare [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Goodwill | 5,664 | |
Assets acquired | 7,664 | |
Current liabilities | (255) | |
Deferred revenue | (166) | |
Deferred tax liabilities | (7,243) | |
Total liabilities assumed | (7,664) | |
Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 31,648 | |
Property, plant and equipment | 2,290 | |
Deferred tax assets | 5,211 | |
Goodwill | 287,469 | |
Assets acquired | 437,438 | |
Current liabilities | (7,648) | |
Deferred revenue | (3,619) | |
Deferred tax liabilities | (2,367) | |
Debt assumed | (35,104) | |
Total liabilities assumed | (48,738) | |
Net assets acquired | $ 388,700 | |
Trade Names [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 7 years | |
Trade Names [Member] | MatrixCare [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 18,000 | |
Trade Names [Member] | MatrixCare [Member] | Previously Reported [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 18,000 | |
Trade Names [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 7,828 | |
Intangible assets, useful life | 10 years | |
Non-Compete [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 1,000 | |
Intangible assets, useful life | 3 years | |
Developed Technology [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 7 years | |
Developed Technology [Member] | MatrixCare [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 133,000 | |
Developed Technology [Member] | MatrixCare [Member] | Previously Reported [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 133,000 | |
Developed Technology [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 48,280 | |
Developed Technology [Member] | Minimum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Developed Technology [Member] | Maximum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 6 years | |
Customer Relationships [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 15 years | |
Customer Relationships [Member] | MatrixCare [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 116,000 | |
Customer Relationships [Member] | MatrixCare [Member] | Previously Reported [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 114,000 | |
Customer Relationships [Member] | MatrixCare [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 2,000 | |
Customer Relationships [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 53,712 | |
Customer Relationships [Member] | Minimum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Customer Relationships [Member] | Maximum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 15 years |
Business Combinations (Summary
Business Combinations (Summary Of Reconciliation Of Base Consideration) (Details) - MatrixCare [Member] - USD ($) $ in Thousands | Nov. 13, 2018 | Jun. 30, 2020 |
Business Acquisition [Line Items] | ||
Base consideration | $ 750,000 | $ 750,000 |
Cash acquired | 15,873 | |
Debt assumed | (151,665) | |
Net working capital and other adjustments | (1,812) | |
Net consideration | $ (612,396) |
Business Combinations (Pro Form
Business Combinations (Pro Forma Information) (Details) - MatrixCare [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Business Acquisition [Line Items] | ||
Revenue | $ 2,652,059 | $ 2,457,242 |
Net income | $ 446,721 | $ 295,628 |
Basic earnings per share | $ 3.12 | $ 2.07 |
Diluted earnings per share | $ 3.09 | $ 2.05 |
Restructuring Expenses (Narrati
Restructuring Expenses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 9,401 | $ 18,432 | |
Reorganization, Rationalization, And Relocation Of R&D And SaaS Operations [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 9,400 | ||
Employee related costs | $ 5,400 | ||
Global Strategic Workforce Planning Review [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 18,400 | ||
Global Strategic Workforce Planning Review [Member] | Paris [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Employee related costs | $ 1,500 |
Litigation Settlement Expenses
Litigation Settlement Expenses (Narrative) (Details) - USD ($) | 12 Months Ended | 36 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | |
Litigation Settlement Expenses [Member] | |||
Litigation settlement expenses | $ (600,000) | $ 41,199,000 | $ 0 |
BMC [Member] | |||
Litigation Settlement Expenses [Member] | |||
Settlement agreement, term | with the United States Department of Justice to civilly resolve the investigation of certain marketing practices. We finalized the settlement in December 2019, and announced it in January 2020 on terms that were consistent with our prior reserve. The settlement amount consisted of the payment to the United States and to various states that joined the action, as well as attorneys’ fees and other costs to the private litigants that filed the suits that the Department of Justice pursued. We also entered into a corporate integrity agreement with the Office of the Inspector General of the U.S. Department of Health and Human Services with accompanying oversight of our sales and marketing practices in the United States for five years. |
Schedule II Valuation And Qua_2
Schedule II Valuation And Qualifying Accounts And Reserves (Details) - Applied Against Asset Account Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 25,171 | $ 19,258 | $ 11,150 |
Charged to costs and expenses | 18,283 | 12,379 | 15,189 |
Other (deductions) | (14,946) | (6,466) | (7,081) |
Balance at end of period | $ 28,508 | $ 25,171 | $ 19,258 |