Cover
Cover - shares | 3 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2022 | |
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 $0.004 per share | |
Trading Symbol | RMD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,483,650 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0000943819 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 207,163 | $ 273,710 |
Accounts receivable, net of allowances of $23,867 and $23,259 at September 30, 2022 and June 30, 2022, respectively | 620,483 | 575,950 |
Inventories (note 3) | 864,852 | 743,910 |
Prepaid expenses and other current assets (note 3) | 341,199 | 337,908 |
Total current assets | 2,033,697 | 1,931,478 |
Non-current assets: | ||
Property, plant and equipment, net (note 3) | 487,376 | 498,181 |
Operating lease right-of-use assets | 125,319 | 132,314 |
Goodwill (note 4) | 1,938,843 | 1,936,442 |
Other intangible assets, net (note 3) | 338,151 | 345,944 |
Deferred income taxes | 80,745 | 79,746 |
Prepaid taxes and other non-current assets | 173,429 | 171,748 |
Total non-current assets | 3,143,863 | 3,164,375 |
Total assets | 5,177,560 | 5,095,853 |
Current liabilities: | ||
Accounts payable | 181,485 | 159,245 |
Accrued expenses | 324,055 | 344,722 |
Operating lease liabilities, current | 21,076 | 21,856 |
Deferred revenue | 108,195 | 108,667 |
Income taxes payable (note 6) | 47,942 | 44,893 |
Short-term debt, net (note 8) | 9,906 | 9,916 |
Total current liabilities | 692,659 | 689,299 |
Non-current liabilities: | ||
Deferred revenue | 97,620 | 95,455 |
Deferred income taxes | 11,830 | 9,714 |
Operating lease liabilities, non-current | 114,214 | 120,453 |
Other long-term liabilities | 5,838 | 5,974 |
Long-term debt, net (note 8) | 785,436 | 765,325 |
Long-term income taxes payable (note 6) | 37,076 | 48,882 |
Total non-current liabilities | 1,052,014 | 1,045,803 |
Total liabilities | 1,744,673 | 1,735,102 |
Commitments and contingencies (note 10) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.004 par value, 350,000,000 shares authorized; 188,295,266 issued and 146,459,032 outstanding at September 30, 2022 and 188,246,955 issued and 146,410,721 outstanding at June 30, 2022 | 586 | 586 |
Additional paid-in capital | 1,701,902 | 1,682,432 |
Retained earnings | 3,759,783 | 3,613,736 |
Treasury stock, at cost, 41,836,234 shares at September 30, 2022 and June 30, 2022 | (1,623,256) | (1,623,256) |
Accumulated other comprehensive loss | (406,128) | (312,747) |
Total stockholders’ equity | 3,432,887 | 3,360,751 |
Total liabilities and stockholders’ equity | $ 5,177,560 | $ 5,095,853 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 23,867 | $ 23,259 |
Preferred stock, par value per share (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value per share (dollars per share) | $ 0.004 | $ 0.004 |
Common stock, shares authorized (shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (shares) | 188,295,266 | 188,246,955 |
Common stock, shares outstanding (shares) | 146,459,032 | 146,410,721 |
Treasury stock, shares (shares) | 41,836,234 | 41,836,234 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Net revenue | $ 950,294 | $ 904,015 |
Cost of sales (exclusive of amortization shown separately below) | 403,110 | 386,667 |
Amortization of acquired intangible assets | 6,374 | 11,059 |
Total cost of sales | 409,484 | 397,726 |
Gross profit | 540,810 | 506,289 |
Operating Expenses | ||
Selling, general, and administrative | 193,933 | 176,719 |
Research and development | 63,188 | 59,950 |
Amortization of acquired intangible assets | 7,950 | 7,707 |
Total operating expenses | 265,071 | 244,376 |
Income from operations | 275,739 | 261,913 |
Other income (loss), net: | ||
Interest (expense) income, net | (7,134) | (5,360) |
Loss attributable to equity method investments (note 5) | (2,028) | (1,386) |
Gain (loss) on equity investments (note 5) | (3,280) | 5,612 |
Other, net | (1,504) | (1,991) |
Total other income (loss), net | (13,946) | (3,125) |
Income before income taxes | 261,793 | 258,788 |
Income taxes | 51,315 | 55,175 |
Net income | $ 210,478 | $ 203,613 |
Basic earnings per share (dollars per share) | $ 1.44 | $ 1.40 |
Diluted earnings per share (dollars per share) | 1.43 | 1.39 |
Dividend declared per share (dollars per share) | $ 0.44 | $ 0.42 |
Basic shares outstanding (000's) (in shares) | 146,431 | 145,680 |
Diluted shares outstanding (000's) (in shares) | 147,134 | 146,860 |
Total Sleep and Respiratory Care | ||
Net revenue | $ 844,443 | $ 806,499 |
Cost of sales (exclusive of amortization shown separately below) | 363,844 | 349,681 |
Amortization of acquired intangible assets | 1,228 | 900 |
Software as a Service | ||
Net revenue | 105,851 | 97,516 |
Cost of sales (exclusive of amortization shown separately below) | 39,266 | 36,986 |
Amortization of acquired intangible assets | $ 5,146 | $ 10,159 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income | $ 210,478 | $ 203,613 |
Other comprehensive income (loss): | ||
Foreign currency translation (loss) gain adjustments | (93,381) | (23,516) |
Comprehensive income | $ 117,097 | $ 180,097 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements Of Changes In Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Common stock, shares outstanding, beginning balance (shares) at Jun. 30, 2021 | 187,485,000 | |||||
Beginning balance at Jun. 30, 2021 | $ 2,885,679 | $ 583 | $ 1,622,199 | $ (1,623,256) | $ 3,079,640 | $ (193,487) |
Treasury stock, common, beginning balance (shares) at Jun. 30, 2021 | (41,836,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 61,000 | |||||
Common stock issued on exercise of options | 4,354 | 4,354 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 1,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (195) | (195) | ||||
Stock-based compensation costs | 17,303 | 17,303 | ||||
Other comprehensive income (loss) | (23,516) | (23,516) | ||||
Net income | 203,613 | 203,613 | ||||
Dividends declared | (61,189) | (61,189) | ||||
Common stock, shares outstanding, ending balance (shares) at Sep. 30, 2021 | 187,547,000 | |||||
Ending balance at Sep. 30, 2021 | $ 3,026,049 | $ 583 | 1,643,661 | $ (1,623,256) | 3,222,064 | (217,003) |
Treasury stock, common, ending balance (shares) at Sep. 30, 2021 | (41,836,000) | |||||
Common stock, shares outstanding, beginning balance (shares) at Jun. 30, 2022 | 146,410,721 | 188,247,000 | ||||
Beginning balance at Jun. 30, 2022 | $ 3,360,751 | $ 586 | 1,682,432 | $ (1,623,256) | 3,613,736 | (312,747) |
Treasury stock, common, beginning balance (shares) at Jun. 30, 2022 | (41,836,234) | (41,836,000) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 45,000 | |||||
Common stock issued on exercise of options | $ 2,610 | 2,610 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 3,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (59) | (59) | ||||
Stock-based compensation costs | 16,919 | 16,919 | ||||
Other comprehensive income (loss) | (93,381) | (93,381) | ||||
Net income | 210,478 | 210,478 | ||||
Dividends declared | $ (64,431) | (64,431) | ||||
Common stock, shares outstanding, ending balance (shares) at Sep. 30, 2022 | 146,459,032 | 188,295,000 | ||||
Ending balance at Sep. 30, 2022 | $ 3,432,887 | $ 586 | $ 1,701,902 | $ (1,623,256) | $ 3,759,783 | $ (406,128) |
Treasury stock, common, ending balance (shares) at Sep. 30, 2022 | (41,836,234) | (41,836,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements Of Changes In Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividend declared per share (dollars per share) | $ 0.44 | $ 0.42 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements Of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 210,478 | $ 203,613 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 36,273 | 39,102 |
Amortization of right-of-use assets | 7,761 | 8,517 |
Stock-based compensation costs | 16,919 | 17,303 |
Loss attributable to equity method investments (note 5) | 2,028 | 1,386 |
(Gain) loss on equity investments (note 5) | 3,280 | (5,612) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (56,238) | 33,704 |
Inventories | (147,096) | (55,976) |
Prepaid expenses, net deferred income taxes and other current assets | (36,784) | (14,391) |
Accounts payable, accrued expenses, income taxes payable and other | 8,041 | (293,303) |
Net cash (used in) / provided by operating activities | 44,662 | (65,657) |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (29,056) | (27,340) |
Patent registration and acquisition costs | (3,317) | (4,453) |
Business acquisitions, net of cash acquired | (19,100) | 0 |
Purchases of investments (note 5) | (4,291) | (6,600) |
(Payments) / proceeds on maturity of foreign currency contracts | (3,042) | (3,481) |
Net cash used in investing activities | (58,806) | (41,874) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | 2,610 | 4,354 |
Taxes paid related to net share settlement of equity awards | (59) | (195) |
Proceeds from borrowings, net of borrowing costs | 50,000 | 150,000 |
Repayment of borrowings | (30,000) | 0 |
Dividends paid | (64,431) | (61,189) |
Net cash (used in) / provided by financing activities | (41,880) | 92,970 |
Effect of exchange rate changes on cash | (10,523) | (4,568) |
Net decrease in cash and cash equivalents | (66,547) | (19,129) |
Cash and cash equivalents at beginning of period | 273,710 | 295,278 |
Cash and cash equivalents at end of period | 207,163 | 276,149 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid, net of refunds | 53,437 | 345,909 |
Interest paid | 7,134 | 5,360 |
Fair value of assets acquired, excluding cash | 9,506 | 0 |
Liabilities assumed | (3,975) | 0 |
Goodwill on acquisition | 19,281 | 0 |
Deferred payments | (2,856) | 0 |
Fair value of contingent consideration | (2,856) | 0 |
Cash paid for acquisitions | $ 19,100 | $ 0 |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2023. The condensed consolidated financial statements for the three months ended September 30, 2022 and September 30, 2021 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K (our “Form 10-K”) for the year ended June 30, 2022. 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 provision of 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 The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended 2022 2021 U.S., Canada and Latin America Devices $ 339,545 $ 275,932 Masks and other 238,560 215,106 Total Sleep and Respiratory Care $ 578,105 $ 491,038 Software as a Service 105,851 97,516 Total $ 683,956 $ 588,554 Combined Europe, Asia and other markets Devices $ 178,032 $ 218,226 Masks and other 88,306 97,235 Total Sleep and Respiratory Care $ 266,338 $ 315,461 Global revenue Devices $ 517,577 $ 494,158 Masks and other 326,866 312,341 Total Sleep and Respiratory Care $ 844,443 $ 806,499 Software as a Service 105,851 97,516 Total $ 950,294 $ 904,015 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 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 (in thousands): September 30, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 620,483 $ 575,950 Accounts receivable, net Unbilled revenue, current 23,615 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 8,106 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (108,195) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (97,620) (95,455) 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 our 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 participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. 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 elected two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our SaaS contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. 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. Lease Revenue We lease Sleep and Respiratory Care medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts include 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. Operating lease revenue was $23.7 million for the three months ended September 30, 2022 and $25.2 million for the three months ended September 30, 2021. 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. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have quantitatively and qualitatively determined that we operate in two operating segments, which are the Sleep and Respiratory Care segment and the SaaS segment. We evaluate the performance of our segments based on net revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the year ended June 30, 2022. Segment net revenues and segment income from operations do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed. Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, net interest expense (income), loss attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our Chief Operating Decision Maker evaluate the operating segments using discrete asset information. Additionally, effective in the first quarter of fiscal year 2023, we updated the extent of allocation and method of attribution of certain shared costs that are principally managed at the corporate level as part of our evaluation of segment operating performance. As a result, certain shared administrative costs, including shared IT, legal and other administrative functions, which were previously included in segment operating results, are now reported in Corporate costs within our reconciliation of segment operating profit to income before income taxes. The financial information presented herein reflects the impact of the preceding reporting change for all periods presented. The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands): Three Months Ended 2022 2021 Net revenue by segment Total Sleep and Respiratory Care $ 844,443 $ 806,499 Software as a Service 105,851 97,516 Total $ 950,294 $ 904,015 Depreciation and amortization by segment Sleep and Respiratory Care $ 19,767 $ 18,017 Software as a Service 1,913 1,701 Amortization of acquired intangible assets and corporate assets 14,593 19,384 Total $ 36,273 $ 39,102 Net operating profit by segment Sleep and Respiratory Care $ 352,560 $ 336,996 Software as a Service 24,441 21,907 Total $ 377,001 $ 358,903 Reconciling items Corporate costs $ 86,938 $ 78,224 Amortization of acquired intangible assets 14,324 18,766 Interest expense (income), net 7,134 5,360 Loss attributable to equity method investments 2,028 1,386 (Gain) loss on equity investments 3,280 (5,612) Other, net 1,504 1,991 Income before income taxes $ 261,793 $ 258,788 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 3 Months Ended |
Sep. 30, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands): Inventories September 30, June 30, Raw materials $ 398,520 $ 355,225 Work in progress 4,491 3,077 Finished goods 461,841 385,608 Total inventories $ 864,852 $ 743,910 Prepaid expenses and other current assets September 30, June 30, Prepaid taxes $ 92,226 $ 99,352 Prepaid inventories 122,839 107,291 Other prepaid expenses and current assets 126,134 131,265 Total prepaid expenses and other current assets $ 341,199 $ 337,908 Property, Plant and Equipment September 30, June 30, Property, plant and equipment, at cost $ 1,107,564 $ 1,131,295 Accumulated depreciation and amortization (620,188) (633,114) Property, plant and equipment, net $ 487,376 $ 498,181 Other Intangible Assets September 30, June 30, Developed/core product technology $ 354,770 $ 350,671 Accumulated amortization (244,255) (239,647) Developed/core product technology, net 110,515 111,024 Customer relationships 258,312 257,034 Accumulated amortization (97,143) (91,731) Customer relationships, net 161,169 165,303 Other intangibles 194,970 204,580 Accumulated amortization (128,503) (134,963) Other intangibles, net 66,467 69,617 Total other intangibles, net $ 338,151 $ 345,944 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, which we amortize over the estimated useful life of the assets, generally between two years to fifteen years. There are no expected residual values related to these intangible assets. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands): Three Months Ended September 30, 2022 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 — 19,281 Foreign currency translation adjustments (16,880) — (16,880) Balance at the end of the period $ 644,125 $ 1,294,718 $ 1,938,843 |
Investments
Investments | 3 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method. Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the condensed consolidated balance sheets. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the condensed consolidated balance sheets. Non-marketable equity securities 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 assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the condensed consolidated statements of operations. 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 as a component of other income (loss), net on the condensed consolidated statements of operations. Equity investments by measurement category were as follows (in thousands): Measurement category September 30, June 30, Fair value $ 5,887 $ 9,167 Measurement alternative 43,581 39,290 Equity method 7,890 9,918 Total $ 57,358 $ 58,375 The following tables show a reconciliation of the changes in our equity investments (in thousands): Three Months Ended September 30, 2022 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 Additions to investments 4,291 — — 4,291 Unrealized losses on marketable equity securities — (3,280) — (3,280) Loss attributable to equity method investments — — (2,028) (2,028) Carrying value at the end of the period $ 43,581 $ 5,887 $ 7,890 $ 57,358 Three Months Ended September 30, 2021 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Additions to investments 3,000 3,600 — 6,600 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Unrealized gains on marketable equity securities — 454 — 454 Impairment of investments (209) — — (209) Loss attributable to equity method investments — — (1,386) (1,386) Carrying value at the end of the period $ 31,160 $ 33,138 $ 15,768 $ 80,066 Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of September 30, 2022 for the three months ended September 30, 2022 were $3.3 million. Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of September 30, 2021 for the three months ended September 30, 2021 were $5.6 million. |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740 Income Taxes , each interim reporting period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. On September 19, 2021, we concluded the settlement agreement with the Australian Taxation Office (“ATO”) in relation to the previously disclosed transfer pricing dispute for the tax years 2009 through 2018 (“ATO settlement”). The ATO settlement fully resolved the dispute for all prior years, with no admission of liability and provides clarity in relation to certain future taxation principles. On September 28, 2021, we remitted final payment to the ATO of $284.8 million, consisting of the agreed settlement amount of $381.7 million less prior remittances made to the ATO of $96.9 million. |
Product Warranties
Product Warranties | 3 Months Ended |
Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | Product Warranties Changes in the liability for warranty costs, which is included in accrued expenses in our condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended 2022 2021 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 2,088 5,413 Warranty costs incurred for the period (2,612) (3,972) Foreign currency translation adjustments (1,272) (513) Balance at the end of the period $ 24,093 $ 22,960 |
Debt
Debt | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following (in thousands): September 30, June 30, Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs $ (94) $ (84) Short-term debt, net $ 9,906 $ 9,916 Long-term debt $ 790,000 $ 770,000 Deferred borrowing costs (4,564) (4,675) Long-term debt, net $ 785,436 $ 765,325 Total debt $ 795,342 $ 775,241 Credit Facility On June 29, 2022, we entered into a second amended and restated credit agreement (the “Revolving Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as documentation agent. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million and 1.00 times the EBITDA (as defined in the Revolving Credit Agreement) for the trailing twelve-month measurement period. The Revolving Credit Agreement amends and restates that certain Amended and Restated Credit Agreement, dated as of April 17, 2018, among ResMed, MUFG Union Bank, N.A., Westpac Banking Corporation and the lenders party thereto. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement and First Amendment to Unconditional Guaranty 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, which amends that certain Syndicated Facility Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty a senior unsecured term credit facility of $200.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Pty 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 June 29, 2027, 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 $5.0 million principal payment required on each such semi-annual amortization date. The outstanding principal amounts will bear interest at a rate equal to the Adjusted Term SOFR (as defined in the Revolving Credit Facility) 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 September 30, 2022, the interest rate that was being charged on the outstanding principal amounts was 3.5%. An applicable commitment fee of 0.075% to 0.150% (depending on the then-applicable leverage ratio) applies on the unused portion of the revolving credit facility. As of September 30, 2022, we had $1.4 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 Adjusted Term SOFR plus the spreads described above, its carrying amount is equivalent to its fair value as at September 30, 2022 and June 30, 2022, which was $300.0 million and $280.0 million, respectively. Quoted market prices in active markets for similar liabilities based inputs (Level 2) 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. 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 (as defined in the Note Purchase Agreement) 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. This ratio is calculated at the end of each reporting period for which the Note Purchase Agreement requires us to deliver financial statements, using the results of the 12 consecutive month period ending with such reporting period. 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 September 30, 2022 and June 30, 2022, the Senior Notes had a carrying amount of $500.0 million, excluding deferred borrowing costs, and an estimated fair value of $455.7 million and $477.7 million, respectively. Quoted market prices in active markets for similar liabilities based inputs (Level 2) were used to estimate fair value. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share is computed 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 113,167 and 1,322 for the three months ended September 30, 2022 and 2021, respectively, as the effect would have been anti-dilutive. Basic and diluted earnings per share are calculated as follows (in thousands except per share data): Three Months Ended 2022 2021 Numerator: Net income $ 210,478 $ 203,613 Denominator: Basic weighted-average common shares outstanding 146,431 145,680 Effect of dilutive securities: Stock options and restricted stock units 703 1,180 Diluted weighted average shares 147,134 146,860 Basic earnings per share $ 1.44 $ 1.40 Diluted earnings per share $ 1.43 $ 1.39 |
Legal Actions, Contingencies an
Legal Actions, Contingencies and Commitments | 3 Months Ended |
Sep. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Actions, Contingencies and Commitments | 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. On June 2, 2021, New York University ("NYU") filed a complaint for patent infringement in the United States District Court, District of Delaware against ResMed Inc., case no. 1:21-cv-00813 (JPM). The complaint alleges that the AutoSet or AutoRamp features of ResMed’s AirSense 10 AutoSet flow generators infringe one or more claims of various NYU patents, including U.S. Patent Nos. 6,988,994; 9,108,009; 9,168,344; 9,427,539; 9,533,115; 9,867,955; and 10,384,024. According to the complaint, the NYU patents are directed to systems and methods for diagnosis and treating sleeping disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. We answered the complaint on September 30, 2021 and filed a motion to dismiss the complaint on the basis that the patents are invalid because the subject matter of the patents is not patentable under the Supreme Court and Federal Circuit precedent. The motion to dismiss was granted in part and denied in part. We have also requested that the court dismiss the case based on NYU’s license of the patents to Fisher & Paykel and Fisher & Paykel’s prior settlement with us. The matter is proceeding to discovery while the court considers our request. We have also filed petitions for inter partes review with the Patent Trial and Appeal Board (“PTAB”) of the United States Patent and Trademark Office seeking to invalidate the asserted claims of the patents-in-suit. A determination by the PTAB whether to institute the petitions is expected by early December 2022. If the petitions are instituted by the PTAB, a final written decision determining the invalidity of the challenged claims is expected by December 2023. On January 27, 2021, the International Trade Commission ("ITC") instituted In Re Certain UMTS and LTE Cellular Communications Modules and Products Containing the Same, Investigation No. 337-TA-1240, by complainants Philips RS North America, LLC and Koninklijke Philips N.V. (collectively “Philips”) against Quectel Wireless Solutions Co., Ltd; Thales DIS AIS USA, LLC, Thales DIS AIS Deutschland GmbH; Telit Wireless Solutions, Inc., Telit Communications PLC, CalAmp. Corp., Xirgo Technologies, LLC, and Laird Connectivity, Inc. (collectively “respondents”). In the ITC investigation, Philips seeks an order excluding communications modules, and products that contain them, from importation into the United States based on alleged infringement of 3G and 4G standard essential patents held by Philips. On October 6-14, 2021, the administrative law judge held a hearing on the merits. The administrative law judge issued an initial determination on April 1, 2022, finding no violation of any of the Philips' patents asserted in the ITC. Philips sought review by the full ITC. On July 6, 2022, the Commission affirmed the administrative law judge’s determination that there was no violation of asserted Philips' patents. The Commission terminated the ITC proceedings. Philips did not appeal the ITC’s decision. On December 17, 2020, Philips filed companion cases for patent infringement against the same defendants in the United States District Court for the District of Delaware, case nos. 1:20-cv-01707, 01708, 01709, 01710, 01711, and 01713 (CFC) seeking damages, an injunction, and a declaration from the court on the amount of a fair reasonable and non-discriminatory license rate for the standard essential patents it is asserting against the communications module defendants. The district court cases have been stayed pending the resolution of the ITC proceedings. Philips has not yet moved to lift the stay following the termination of the ITC Investigation. We are not a party to the ITC investigation or the district court cases, but we sell products that incorporate some of the communications modules at issue in the cases. On June 16, 2022, Cleveland Medical Devices Inc. ("Cleveland Medical") filed suit for patent infringement against ResMed Inc. in the United States District Court for the District of Delaware, case no. 1:22-cv-00794. Cleveland Medical asserts that numerous ResMed connected devices, when combined with certain ResMed data platforms and/or software, including AirView and ResScan, infringe one or more of eight Cleveland Medical patents, including U.S. Patent Nos. 10,076,269; 10,426,399; 10,925,535; 11,064,937; 10,028,698; 10,478,118; 11,202,603; and 11,234,637. We have moved to dismiss the action because Cleveland Medical sued the wrong ResMed entity. We have also moved to dismiss all claims based on U.S. Patent No. 10,076,269, as well as indirect and willful infringement allegations as to the remaining patents asserted against ResMed. Based on currently available information, we are unable to make a reasonable estimate of loss or range of losses, if any, arising from matters that remain open. 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 limited recourse 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. During the three months ended September 30, 2022 and September 30, 2021, receivables sold with limited recourse were $39.9 million and $49.5 million, respectively. As of September 30, 2022, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $22.4 million and $1.2 million, respectively. As of June 30, 2022, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $24.2 million and $2.1 million, respectively. Commitments |
Summary Of Significant Accoun_2
Summary Of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2023. The condensed consolidated financial statements for the three months ended September 30, 2022 and September 30, 2021 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K (our “Form 10-K”) for the year ended June 30, 2022. |
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 provision of 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 The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended 2022 2021 U.S., Canada and Latin America Devices $ 339,545 $ 275,932 Masks and other 238,560 215,106 Total Sleep and Respiratory Care $ 578,105 $ 491,038 Software as a Service 105,851 97,516 Total $ 683,956 $ 588,554 Combined Europe, Asia and other markets Devices $ 178,032 $ 218,226 Masks and other 88,306 97,235 Total Sleep and Respiratory Care $ 266,338 $ 315,461 Global revenue Devices $ 517,577 $ 494,158 Masks and other 326,866 312,341 Total Sleep and Respiratory Care $ 844,443 $ 806,499 Software as a Service 105,851 97,516 Total $ 950,294 $ 904,015 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 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 (in thousands): September 30, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 620,483 $ 575,950 Accounts receivable, net Unbilled revenue, current 23,615 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 8,106 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (108,195) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (97,620) (95,455) 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 our 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 participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. 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 elected two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our SaaS contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. 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. |
Lease Revenue | Lease RevenueWe lease Sleep and Respiratory Care medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts include 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. |
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. |
Summary Of Significant Accoun_3
Summary Of Significant Accounting Policies (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Summary Of Net Revenue Disaggregated By Product And Region | The following table summarizes our net revenue disaggregated by segment, product and region (in thousands): Three Months Ended 2022 2021 U.S., Canada and Latin America Devices $ 339,545 $ 275,932 Masks and other 238,560 215,106 Total Sleep and Respiratory Care $ 578,105 $ 491,038 Software as a Service 105,851 97,516 Total $ 683,956 $ 588,554 Combined Europe, Asia and other markets Devices $ 178,032 $ 218,226 Masks and other 88,306 97,235 Total Sleep and Respiratory Care $ 266,338 $ 315,461 Global revenue Devices $ 517,577 $ 494,158 Masks and other 326,866 312,341 Total Sleep and Respiratory Care $ 844,443 $ 806,499 Software as a Service 105,851 97,516 Total $ 950,294 $ 904,015 |
Summary Of Contract Balances | The following table summarizes our contract balances (in thousands): September 30, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 620,483 $ 575,950 Accounts receivable, net Unbilled revenue, current 23,615 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 8,106 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (108,195) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (97,620) (95,455) Deferred revenue (non-current liabilities) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Segment Reporting [Abstract] | |
Summary of Revenue By Segment and Reconciling Items | The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands): Three Months Ended 2022 2021 Net revenue by segment Total Sleep and Respiratory Care $ 844,443 $ 806,499 Software as a Service 105,851 97,516 Total $ 950,294 $ 904,015 Depreciation and amortization by segment Sleep and Respiratory Care $ 19,767 $ 18,017 Software as a Service 1,913 1,701 Amortization of acquired intangible assets and corporate assets 14,593 19,384 Total $ 36,273 $ 39,102 Net operating profit by segment Sleep and Respiratory Care $ 352,560 $ 336,996 Software as a Service 24,441 21,907 Total $ 377,001 $ 358,903 Reconciling items Corporate costs $ 86,938 $ 78,224 Amortization of acquired intangible assets 14,324 18,766 Interest expense (income), net 7,134 5,360 Loss attributable to equity method investments 2,028 1,386 (Gain) loss on equity investments 3,280 (5,612) Other, net 1,504 1,991 Income before income taxes $ 261,793 $ 258,788 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule Of Inventories | Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands): Inventories September 30, June 30, Raw materials $ 398,520 $ 355,225 Work in progress 4,491 3,077 Finished goods 461,841 385,608 Total inventories $ 864,852 $ 743,910 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets September 30, June 30, Prepaid taxes $ 92,226 $ 99,352 Prepaid inventories 122,839 107,291 Other prepaid expenses and current assets 126,134 131,265 Total prepaid expenses and other current assets $ 341,199 $ 337,908 |
Components Of Property, Plant And Equipment | Property, Plant and Equipment September 30, June 30, Property, plant and equipment, at cost $ 1,107,564 $ 1,131,295 Accumulated depreciation and amortization (620,188) (633,114) Property, plant and equipment, net $ 487,376 $ 498,181 |
Schedule Of Other Intangible Assets, Net | Other Intangible Assets September 30, June 30, Developed/core product technology $ 354,770 $ 350,671 Accumulated amortization (244,255) (239,647) Developed/core product technology, net 110,515 111,024 Customer relationships 258,312 257,034 Accumulated amortization (97,143) (91,731) Customer relationships, net 161,169 165,303 Other intangibles 194,970 204,580 Accumulated amortization (128,503) (134,963) Other intangibles, net 66,467 69,617 Total other intangibles, net $ 338,151 $ 345,944 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule Of Changes In Carrying Amount Of Goodwill | A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands): Three Months Ended September 30, 2022 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 — 19,281 Foreign currency translation adjustments (16,880) — (16,880) Balance at the end of the period $ 644,125 $ 1,294,718 $ 1,938,843 |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule Of Investments | Equity investments by measurement category were as follows (in thousands): Measurement category September 30, June 30, Fair value $ 5,887 $ 9,167 Measurement alternative 43,581 39,290 Equity method 7,890 9,918 Total $ 57,358 $ 58,375 |
Schedule Of Changes In Equity Investments | The following tables show a reconciliation of the changes in our equity investments (in thousands): Three Months Ended September 30, 2022 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 Additions to investments 4,291 — — 4,291 Unrealized losses on marketable equity securities — (3,280) — (3,280) Loss attributable to equity method investments — — (2,028) (2,028) Carrying value at the end of the period $ 43,581 $ 5,887 $ 7,890 $ 57,358 Three Months Ended September 30, 2021 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Additions to investments 3,000 3,600 — 6,600 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Unrealized gains on marketable equity securities — 454 — 454 Impairment of investments (209) — — (209) Loss attributable to equity method investments — — (1,386) (1,386) Carrying value at the end of the period $ 31,160 $ 33,138 $ 15,768 $ 80,066 |
Product Warranties (Tables)
Product Warranties (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Product Warranties Disclosures [Abstract] | |
Schedule Of Changes In Liability For Warranty Costs | Changes in the liability for warranty costs, which is included in accrued expenses in our condensed consolidated balance sheets, are as follows (in thousands): Three Months Ended 2022 2021 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 2,088 5,413 Warranty costs incurred for the period (2,612) (3,972) Foreign currency translation adjustments (1,272) (513) Balance at the end of the period $ 24,093 $ 22,960 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): September 30, June 30, Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs $ (94) $ (84) Short-term debt, net $ 9,906 $ 9,916 Long-term debt $ 790,000 $ 770,000 Deferred borrowing costs (4,564) (4,675) Long-term debt, net $ 785,436 $ 765,325 Total debt $ 795,342 $ 775,241 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows (in thousands except per share data): Three Months Ended 2022 2021 Numerator: Net income $ 210,478 $ 203,613 Denominator: Basic weighted-average common shares outstanding 146,431 145,680 Effect of dilutive securities: Stock options and restricted stock units 703 1,180 Diluted weighted average shares 147,134 146,860 Basic earnings per share $ 1.44 $ 1.40 Diluted earnings per share $ 1.43 $ 1.39 |
Summary Of Significant Accoun_4
Summary Of Significant Accounting Policies (Narrative) (Details) $ in Millions | 3 Months Ended | |
Sep. 30, 2022 USD ($) segment | Sep. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||
Number of operating segments | segment | 2 | |
Operating lease revenue | $ | $ 23.7 | $ 25.2 |
Minimum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Deferred revenue recognized, term | 1 year | |
Maximum | ||
Summary Of Significant Accounting Policies [Line Items] | ||
Deferred revenue recognized, term | 5 years |
Summary Of Significant Accoun_5
Summary Of Significant Accounting Policies (Summary Of Net Revenue Disaggregated By Product And Region) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | $ 950,294 | $ 904,015 |
Total Sleep and Respiratory Care | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 844,443 | 806,499 |
Software as a Service | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 105,851 | 97,516 |
U.S., Canada and Latin America | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 683,956 | 588,554 |
U.S., Canada and Latin America | Devices | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 339,545 | 275,932 |
U.S., Canada and Latin America | Masks and other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 238,560 | 215,106 |
U.S., Canada and Latin America | Total Sleep and Respiratory Care | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 578,105 | 491,038 |
U.S., Canada and Latin America | Software as a Service | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 105,851 | 97,516 |
Combined Europe, Asia and other markets | Devices | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 178,032 | 218,226 |
Combined Europe, Asia and other markets | Masks and other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 88,306 | 97,235 |
Combined Europe, Asia and other markets | Total Sleep and Respiratory Care | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 266,338 | 315,461 |
Global revenue | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 950,294 | 904,015 |
Global revenue | Devices | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 517,577 | 494,158 |
Global revenue | Masks and other | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 326,866 | 312,341 |
Global revenue | Total Sleep and Respiratory Care | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | 844,443 | 806,499 |
Global revenue | Software as a Service | ||
Disaggregation of Revenue [Line Items] | ||
Net revenue by segment | $ 105,851 | $ 97,516 |
Summary Of Significant Accoun_6
Summary Of Significant Accounting Policies (Summary Of Contract Balances) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Contract assets | ||
Accounts receivable, net | $ 620,483 | $ 575,950 |
Contract liabilities | ||
Deferred revenue, current | (108,195) | (108,667) |
Deferred revenue, non-current | (97,620) | (95,455) |
Accounts receivable, net | ||
Contract assets | ||
Accounts receivable, net | 620,483 | 575,950 |
Prepaid expenses and other current assets | ||
Contract assets | ||
Unbilled revenue, current | 23,615 | 25,692 |
Prepaid taxes and other non-current assets | ||
Contract assets | ||
Unbilled revenue, non-current | 8,106 | 8,840 |
Deferred revenue (current liabilities) | ||
Contract liabilities | ||
Deferred revenue, current | (108,195) | (108,667) |
Deferred revenue (non-current liabilities) | ||
Contract liabilities | ||
Deferred revenue, non-current | $ (97,620) | $ (95,455) |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 3 Months Ended |
Sep. 30, 2022 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information (Summary Of
Segment Information (Summary Of Revenue By Segment And Reconciling Items) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Segment Reporting Information [Line Items] | ||
Net revenue by segment | $ 950,294 | $ 904,015 |
Depreciation and amortization by segment | 36,273 | 39,102 |
Net operating profit by segment | 275,739 | 261,913 |
Amortization of acquired intangible assets | 7,950 | 7,707 |
Loss attributable to equity method investments | 2,028 | 1,386 |
(Gain) loss on equity investments | 3,280 | (5,612) |
Other, net | (1,504) | (1,991) |
Income before income taxes | 261,793 | 258,788 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Net operating profit by segment | 377,001 | 358,903 |
Corporate Costs | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization by segment | 14,593 | 19,384 |
Reconciling items | ||
Segment Reporting Information [Line Items] | ||
Corporate costs | 86,938 | 78,224 |
Amortization of acquired intangible assets | 14,324 | 18,766 |
Interest expense (income), net | 7,134 | 5,360 |
Loss attributable to equity method investments | 2,028 | 1,386 |
(Gain) loss on equity investments | 3,280 | (5,612) |
Other, net | 1,504 | 1,991 |
Income before income taxes | 261,793 | 258,788 |
Total Sleep and Respiratory Care | ||
Segment Reporting Information [Line Items] | ||
Net revenue by segment | 844,443 | 806,499 |
Total Sleep and Respiratory Care | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization by segment | 19,767 | 18,017 |
Net operating profit by segment | 352,560 | 336,996 |
Software as a Service | ||
Segment Reporting Information [Line Items] | ||
Net revenue by segment | 105,851 | 97,516 |
Software as a Service | Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization by segment | 1,913 | 1,701 |
Net operating profit by segment | $ 24,441 | $ 21,907 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Supplemental Balance Sheet Information [Abstract] | ||
Raw materials | $ 398,520 | $ 355,225 |
Work in progress | 4,491 | 3,077 |
Finished goods | 461,841 | 385,608 |
Total inventories | $ 864,852 | $ 743,910 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Schedule Of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Prepaid expenses and other current assets | ||
Prepaid taxes | $ 92,226 | $ 99,352 |
Prepaid inventories | 122,839 | 107,291 |
Other prepaid expenses and current assets | 126,134 | 131,265 |
Total prepaid expenses and other current assets | $ 341,199 | $ 337,908 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information (Components Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Supplemental Balance Sheet Information [Abstract] | ||
Property, plant and equipment, at cost | $ 1,107,564 | $ 1,131,295 |
Accumulated depreciation and amortization | (620,188) | (633,114) |
Property, plant and equipment, net | $ 487,376 | $ 498,181 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information (Schedule Of Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, net | $ 338,151 | $ 345,944 |
Developed/core product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 354,770 | 350,671 |
Accumulated amortization | (244,255) | (239,647) |
Total other intangibles, net | 110,515 | 111,024 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 258,312 | 257,034 |
Accumulated amortization | (97,143) | (91,731) |
Total other intangibles, net | 161,169 | 165,303 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 194,970 | 204,580 |
Accumulated amortization | (128,503) | (134,963) |
Total other intangibles, net | $ 66,467 | $ 69,617 |
Minimum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 2 years | |
Maximum | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, estimated useful life | 15 years |
Goodwill (Schedule Of Changes I
Goodwill (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 1,936,442 |
Business acquisitions | 19,281 |
Foreign currency translation adjustments | (16,880) |
Balance at the end of the period | 1,938,843 |
Total Sleep and Respiratory Care | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 641,724 |
Business acquisitions | 19,281 |
Foreign currency translation adjustments | (16,880) |
Balance at the end of the period | 644,125 |
SaaS | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,294,718 |
Business acquisitions | 0 |
Foreign currency translation adjustments | 0 |
Balance at the end of the period | $ 1,294,718 |
Investments (Schedule Of Invest
Investments (Schedule Of Investments) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Fair value | $ 5,887 | $ 9,167 |
Measurement alternative | 43,581 | 39,290 |
Equity method | 7,890 | 9,918 |
Total | $ 57,358 | $ 58,375 |
Investments (Schedule Of Change
Investments (Schedule Of Changes In Equity Investments) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Debt and Equity Investments [Roll Forward] | ||
Balance at the beginning of the period | $ 58,375 | $ 69,240 |
Additions to investments | 4,291 | 6,600 |
Observable price adjustments on non-marketable equity securities | 5,367 | |
Unrealized gains (losses) on marketable equity securities | (3,280) | 454 |
Impairment of investments | (209) | |
Loss attributable to equity method investments | (2,028) | (1,386) |
Carrying value at the end of the period | 57,358 | 80,066 |
Non-marketable securities | ||
Debt and Equity Investments [Roll Forward] | ||
Balance at the beginning of the period | 39,290 | 23,002 |
Additions to investments | 4,291 | 3,000 |
Observable price adjustments on non-marketable equity securities | 5,367 | |
Impairment of investments | (209) | |
Carrying value at the end of the period | 43,581 | 31,160 |
Marketable securities | ||
Debt and Equity Investments [Roll Forward] | ||
Balance at the beginning of the period | 9,167 | 29,084 |
Additions to investments | 3,600 | |
Unrealized gains (losses) on marketable equity securities | (3,280) | 454 |
Carrying value at the end of the period | 5,887 | 33,138 |
Equity method investments | ||
Debt and Equity Investments [Roll Forward] | ||
Balance at the beginning of the period | 9,918 | 17,154 |
Loss attributable to equity method investments | (2,028) | (1,386) |
Carrying value at the end of the period | $ 7,890 | $ 15,768 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | ||
Equity securities, net unrealized gain (loss) | $ (3.3) | $ 5.6 |
Income Taxes (Details)
Income Taxes (Details) - Domestic Tax Authority - Australian Taxation Office $ in Millions | Sep. 28, 2021 USD ($) |
Operating Loss Carryforwards [Line Items] | |
Tax settlement, remitted final payment | $ 284.8 |
Tax settlement, gross amount | 381.7 |
Tax settlement, prior remittances | $ 96.9 |
Product Warranties (Schedule Of
Product Warranties (Schedule Of Changes In Liability For Warranty Costs) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 25,889 | $ 22,032 |
Warranty accruals for the period | 2,088 | 5,413 |
Warranty costs incurred for the period | (2,612) | (3,972) |
Foreign currency translation adjustments | (1,272) | (513) |
Balance at the end of the period | $ 24,093 | $ 22,960 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 10,000 | $ 10,000 |
Deferred borrowing costs | (94) | (84) |
Short-term debt, net | 9,906 | 9,916 |
Long-term debt | 790,000 | 770,000 |
Deferred borrowing costs | (4,564) | (4,675) |
Long-term debt, net | 785,436 | 765,325 |
Total debt | $ 795,342 | $ 775,241 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 3 Months Ended | |||
Jun. 29, 2022 USD ($) | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jul. 10, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||
Debt to consolidated EBITDA ratio | 3.50 | |||
Line of credit facility collateral, maximum percentage of ownership interests held in subsidiary | 10% | |||
Senior notes, carrying amount | $ 500,000,000 | $ 500,000,000 | ||
Outstanding debt | 795,342,000 | 775,241,000 | ||
3.24% Senior Notes Due July 10, 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 250,000,000 | |||
Interest rate | 3.24% | |||
3.45% Senior Notes Due July 10, 2029 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 250,000,000 | |||
Interest rate | 3.45% | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | 455,700,000 | 477,700,000 | ||
Revolving Credit Agreement, Term Credit Agreement, And Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding debt | 800,000,000 | |||
Revolving Credit Facility And Term Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 300,000,000 | $ 280,000,000 | ||
Revolving Credit Facility And Term Credit Agreement | Mufg Union Bank Na And Westpac Banking Corporation | ||||
Debt Instrument [Line Items] | ||||
Interest rate on outstanding principal amount | 3.50% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Available for draw | $ 1,400,000,000 | |||
Revolving Credit Facility | Mufg Union Bank Na And Westpac Banking Corporation | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | |||
Uncommitted option to increase credit facility | $ 1,000,000,000 | |||
EBITDA multiple of trailing twelve-month measurement period | 1 | |||
Revolving Credit Facility | Mufg Union Bank Na And Westpac Banking Corporation | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage rate on unused portion of credit facility | 0.075% | |||
Revolving Credit Facility | Mufg Union Bank Na And Westpac Banking Corporation | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage rate on unused portion of credit facility | 0.15% | |||
Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal payment | $ 5,000,000 | |||
Term Loan Credit Agreement | Minimum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0.75% | |||
Term Loan Credit Agreement | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0% | |||
Term Loan Credit Agreement | Maximum | London Interbank Offered Rate (LIBOR) | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 1.50% | |||
Term Loan Credit Agreement | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0.50% | |||
ResMed Limited | Revolving Credit Facility | Mufg Union Bank | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share, amount | 113,167 | 1,322 |
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 | 3 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||
Net income | $ 210,478 | $ 203,613 |
Denominator: | ||
Basic weighted-average common shares outstanding (shares) | 146,431 | 145,680 |
Effect of dilutive securities: | ||
Stock options and restricted stock units (shares) | 703 | 1,180 |
Diluted weighted average shares (shares) | 147,134 | 146,860 |
Basic earnings per share (dollars per share) | $ 1.44 | $ 1.40 |
Diluted earnings per share (dollars per share) | $ 1.43 | $ 1.39 |
Legal Actions, Contingencies _2
Legal Actions, Contingencies and Commitments (Narrative) (Details) € in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 EUR (€) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Receivables sold with limited recourse | $ 39.9 | $ 49.5 | ||
Maximum potential contingent liability | 22.4 | $ 24.2 | ||
Contingent provision | $ 1.2 | $ 2.1 | ||
Contractual obligation | € | € 950 |