Cover
Cover - shares | 9 Months Ended | |
Mar. 31, 2023 | Apr. 24, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
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 $0.004 per share | |
Trading Symbol | RMD | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 146,930,660 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --06-30 | |
Entity Central Index Key | 0000943819 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 227,894 | $ 273,710 |
Accounts receivable, net of allowances of $24,852 and $23,259 at March 31, 2023 and June 30, 2022, respectively | 686,264 | 575,950 |
Inventories (note 3) | 1,011,269 | 743,910 |
Prepaid expenses and other current assets (note 3) | 412,388 | 337,908 |
Total current assets | 2,337,815 | 1,931,478 |
Non-current assets: | ||
Property, plant and equipment, net (note 3) | 528,778 | 498,181 |
Operating lease right-of-use assets | 127,508 | 132,314 |
Goodwill (note 4) | 2,783,624 | 1,936,442 |
Other intangible assets, net (note 3) | 569,678 | 345,944 |
Deferred income taxes | 95,603 | 79,746 |
Prepaid taxes and other non-current assets | 270,873 | 171,748 |
Total non-current assets | 4,376,064 | 3,164,375 |
Total assets | 6,713,879 | 5,095,853 |
Current liabilities: | ||
Accounts payable | 161,896 | 159,245 |
Accrued expenses | 347,354 | 344,722 |
Operating lease liabilities, current | 23,129 | 21,856 |
Deferred revenue | 141,043 | 108,667 |
Income taxes payable (note 6) | 78,368 | 44,893 |
Short-term debt, net (note 8) | 9,901 | 9,916 |
Total current liabilities | 761,691 | 689,299 |
Non-current liabilities: | ||
Deferred revenue | 108,875 | 95,455 |
Deferred income taxes | 113,015 | 9,714 |
Operating lease liabilities, non-current | 115,090 | 120,453 |
Other long-term liabilities | 69,553 | 5,974 |
Long-term debt, net (note 8) | 1,575,963 | 765,325 |
Long-term income taxes payable (note 6) | 37,183 | 48,882 |
Total non-current liabilities | 2,019,679 | 1,045,803 |
Total liabilities | 2,781,370 | 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; 188,760,643 issued and 146,924,409 outstanding at March 31, 2023 and 188,246,955 issued and 146,410,721 outstanding at June 30, 2022 | 588 | 586 |
Additional paid-in capital | 1,728,997 | 1,682,432 |
Retained earnings | 4,088,057 | 3,613,736 |
Treasury stock, at cost, 41,836,234 shares at March 31, 2023 and June 30, 2022 | (1,623,256) | (1,623,256) |
Accumulated other comprehensive loss | (261,877) | (312,747) |
Total stockholders’ equity | 3,932,509 | 3,360,751 |
Total liabilities and stockholders’ equity | $ 6,713,879 | $ 5,095,853 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 24,852 | $ 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) | 188,760,643 | 188,246,955 |
Common stock, shares outstanding (shares) | 146,924,409 | 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 | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Net revenue | $ 1,116,898 | $ 864,500 | $ 3,100,936 | $ 2,663,390 |
Cost of sales (exclusive of amortization shown separately below) | 490,824 | 362,321 | 1,340,660 | 1,128,314 |
Amortization of acquired intangible assets | 8,322 | 10,982 | 22,001 | 33,271 |
Total cost of sales | 499,146 | 373,303 | 1,362,661 | 1,161,585 |
Gross profit | 617,752 | 491,197 | 1,738,275 | 1,501,805 |
Operating Expenses | ||||
Selling, general, and administrative | 228,457 | 182,401 | 633,317 | 544,483 |
Research and development | 76,436 | 66,801 | 209,498 | 189,258 |
Amortization of acquired intangible assets | 12,188 | 7,730 | 29,701 | 23,175 |
Acquisition related expenses | 0 | 0 | 9,157 | 0 |
Total operating expenses | 317,081 | 256,932 | 881,673 | 756,916 |
Income from operations | 300,671 | 234,265 | 856,602 | 744,889 |
Other income (loss), net: | ||||
Interest (expense) income, net | (14,964) | (5,462) | (32,436) | (16,770) |
Loss attributable to equity method investments (note 5) | (183) | (2,627) | (5,037) | (5,927) |
Gain (loss) on equity investments (note 5) | 6,418 | (1,735) | 11,506 | (527) |
Other, net | (2,564) | 1,878 | (5,773) | 729 |
Total other income (loss), net | (11,293) | (7,946) | (31,740) | (22,495) |
Income before income taxes | 289,378 | 226,319 | 824,862 | 722,394 |
Income taxes | 56,878 | 47,307 | 156,970 | 138,018 |
Net income | $ 232,500 | $ 179,012 | $ 667,892 | $ 584,376 |
Basic earnings per share (dollars per share) | $ 1.58 | $ 1.22 | $ 4.55 | $ 4 |
Diluted earnings per share (dollars per share) | 1.58 | 1.22 | 4.53 | 3.97 |
Dividend declared per share (dollars per share) | $ 0.44 | $ 0.42 | $ 1.32 | $ 1.26 |
Basic shares outstanding (000's) (shares) | 146,914 | 146,240 | 146,681 | 145,969 |
Diluted shares outstanding (000's) (shares) | 147,395 | 146,962 | 147,400 | 147,034 |
Total Sleep and Respiratory Care | ||||
Net revenue | $ 980,116 | $ 763,358 | $ 2,741,541 | $ 2,365,697 |
Cost of sales (exclusive of amortization shown separately below) | 443,925 | 324,618 | 1,214,072 | 1,017,494 |
Amortization of acquired intangible assets | 1,367 | 1,071 | 3,939 | 3,043 |
Software as a Service | ||||
Net revenue | 136,782 | 101,142 | 359,395 | 297,693 |
Cost of sales (exclusive of amortization shown separately below) | 46,899 | 37,703 | 126,588 | 110,820 |
Amortization of acquired intangible assets | $ 6,955 | $ 9,911 | $ 18,062 | $ 30,228 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income | $ 232,500 | $ 179,012 | $ 667,892 | $ 584,376 |
Other comprehensive income (loss), net of taxes: | ||||
Unrealized losses on designated hedging instruments | (12,496) | 0 | (32,699) | 0 |
Foreign currency translation (loss) gain adjustments | 20,787 | (1,046) | 83,569 | (30,654) |
Comprehensive income | $ 240,791 | $ 177,966 | $ 718,762 | $ 553,722 |
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, 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] | ||||||
Net income | 584,376 | |||||
Common stock, shares outstanding, ending balance (shares) at Mar. 31, 2022 | 188,102,000 | |||||
Ending balance at Mar. 31, 2022 | 3,278,804 | $ 585 | 1,645,453 | $ (1,623,256) | 3,480,163 | (224,141) |
Treasury stock, common, ending balance (shares) at Mar. 31, 2022 | (41,836,000) | |||||
Common stock, shares outstanding, beginning balance (shares) at Sep. 30, 2021 | 187,547,000 | |||||
Beginning balance at Sep. 30, 2021 | 3,026,049 | $ 583 | 1,643,661 | $ (1,623,256) | 3,222,064 | (217,003) |
Treasury stock, common, beginning balance (shares) at Sep. 30, 2021 | (41,836,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 39,000 | |||||
Common stock issued on exercise of options | 2,378 | 2,378 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 361,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (49,830) | $ 2 | (49,832) | |||
Common stock issued on employee stock purchase plan (shares) | 101,000 | |||||
Common stock issued on employee stock purchase plan | 16,723 | 16,723 | ||||
Stock-based compensation costs | 16,101 | 16,101 | ||||
Other comprehensive income (loss) | (6,092) | (6,092) | ||||
Net income | 201,751 | 201,751 | ||||
Dividends declared | (61,245) | (61,245) | ||||
Common stock, shares outstanding, ending balance (shares) at Dec. 31, 2021 | 188,048,000 | |||||
Ending balance at Dec. 31, 2021 | 3,145,835 | $ 585 | 1,629,031 | $ (1,623,256) | 3,362,570 | (223,095) |
Treasury stock, common, ending balance (shares) at Dec. 31, 2021 | (41,836,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 49,000 | |||||
Common stock issued on exercise of options | 2,814 | 2,814 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 5,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (2,253) | (2,253) | ||||
Stock-based compensation costs | 15,861 | 15,861 | ||||
Other comprehensive income (loss) | (1,046) | (1,046) | ||||
Net income | 179,012 | 179,012 | ||||
Dividends declared | (61,419) | (61,419) | ||||
Common stock, shares outstanding, ending balance (shares) at Mar. 31, 2022 | 188,102,000 | |||||
Ending balance at Mar. 31, 2022 | $ 3,278,804 | $ 585 | 1,645,453 | $ (1,623,256) | 3,480,163 | (224,141) |
Treasury stock, common, ending balance (shares) at Mar. 31, 2022 | (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 | 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 | (41,836,000) | |||||
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] | ||||||
Net income | $ 667,892 | |||||
Common stock, shares outstanding, ending balance (shares) at Mar. 31, 2023 | 146,924,409 | 188,761,000 | ||||
Ending balance at Mar. 31, 2023 | $ 3,932,509 | $ 588 | 1,728,997 | $ (1,623,256) | 4,088,057 | (261,877) |
Treasury stock, common, ending balance (shares) at Mar. 31, 2023 | (41,836,234) | (41,836,000) | ||||
Common stock, shares outstanding, beginning balance (shares) at Sep. 30, 2022 | 188,295,000 | |||||
Beginning balance at Sep. 30, 2022 | $ 3,432,887 | $ 586 | 1,701,902 | $ (1,623,256) | 3,759,783 | (406,128) |
Treasury stock, common, beginning balance (shares) at Sep. 30, 2022 | (41,836,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 77,000 | |||||
Common stock issued on exercise of options | 5,120 | 5,120 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 265,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (29,654) | $ 1 | (29,655) | |||
Common stock issued on employee stock purchase plan (shares) | 100,000 | |||||
Common stock issued on employee stock purchase plan | 16,936 | $ 1 | 16,935 | |||
Stock-based compensation costs | 16,464 | 16,464 | ||||
Other comprehensive income (loss) | 135,960 | 135,960 | ||||
Net income | 224,914 | 224,914 | ||||
Dividends declared | (64,500) | (64,500) | ||||
Common stock, shares outstanding, ending balance (shares) at Dec. 31, 2022 | 188,737,000 | |||||
Ending balance at Dec. 31, 2022 | 3,738,127 | $ 588 | 1,710,766 | $ (1,623,256) | 3,920,197 | (270,168) |
Treasury stock, common, ending balance (shares) at Dec. 31, 2022 | (41,836,000) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Common stock issued on exercise of options (shares) | 18,000 | |||||
Common stock issued on exercise of options | 983 | 983 | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (shares) | 6,000 | |||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | (584) | (584) | ||||
Stock-based compensation costs | 17,832 | 17,832 | ||||
Other comprehensive income (loss) | 8,291 | 8,291 | ||||
Net income | 232,500 | 232,500 | ||||
Dividends declared | $ (64,640) | (64,640) | ||||
Common stock, shares outstanding, ending balance (shares) at Mar. 31, 2023 | 146,924,409 | 188,761,000 | ||||
Ending balance at Mar. 31, 2023 | $ 3,932,509 | $ 588 | $ 1,728,997 | $ (1,623,256) | $ 4,088,057 | $ (261,877) |
Treasury stock, common, ending balance (shares) at Mar. 31, 2023 | (41,836,234) | (41,836,000) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Changes in Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividend declared per share (dollars per share) | $ 0.44 | $ 0.44 | $ 0.44 | $ 0.42 | $ 0.42 | $ 0.42 | $ 1.32 | $ 1.26 |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 667,892 | $ 584,376 |
Adjustment to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 118,396 | 122,198 |
Amortization of right-of-use assets | 23,967 | 26,636 |
Stock-based compensation costs | 51,215 | 49,265 |
Loss attributable to equity method investments (note 5) | 5,037 | 5,927 |
(Gain) loss on equity investments (note 5) | (11,506) | 527 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (88,452) | 98,158 |
Inventories | (255,091) | (209,476) |
Prepaid expenses, net deferred income taxes and other current assets | (86,607) | (127,977) |
Accounts payable, accrued expenses, income taxes payable and other | 31,012 | (277,973) |
Net cash provided by operating activities | 455,863 | 271,661 |
Cash flows from investing activities: | ||
Purchases of property, plant and equipment | (85,223) | (106,192) |
Patent registration and acquisition costs | (10,043) | (17,449) |
Business acquisitions, net of cash acquired (note 12) | (1,011,225) | (35,915) |
Purchases of investments (note 5) | (29,729) | (16,614) |
Proceeds from exits of investments (note 5) | 3,937 | 6,802 |
(Payments) / proceeds on maturity of foreign currency contracts | 18,961 | (5,309) |
Net cash used in investing activities | (1,113,322) | (174,677) |
Cash flows from financing activities: | ||
Proceeds from issuance of common stock, net | 25,649 | 26,269 |
Taxes paid related to net share settlement of equity awards | (30,297) | (52,278) |
Payments of business combination contingent consideration | (316) | 0 |
Proceeds from borrowings, net of borrowing costs | 1,070,000 | 160,000 |
Repayment of borrowings | (260,000) | (136,000) |
Dividends paid | (193,571) | (183,853) |
Net cash (used in) / provided by financing activities | 611,465 | (185,862) |
Effect of exchange rate changes on cash | 178 | (4,631) |
Net decrease in cash and cash equivalents | (45,816) | (93,509) |
Cash and cash equivalents at beginning of period | 273,710 | 295,278 |
Cash and cash equivalents at end of period | 227,894 | 201,769 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid, net of refunds | 145,566 | 432,268 |
Interest paid | 32,436 | 16,770 |
Fair value of assets acquired, excluding cash | 359,730 | 8,986 |
Liabilities assumed | (148,132) | (2,492) |
Goodwill on acquisition | 803,357 | 33,499 |
Previously held equity interest | 0 | (4,078) |
Deferred payments | (874) | 0 |
Fair value of contingent consideration | (2,856) | 0 |
Cash paid for acquisitions | $ 1,011,225 | $ 35,915 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2023 | |
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 and Germany 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 and nine months ended March 31, 2023 and March 31, 2022 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 care 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 Nine Months Ended 2023 2022 2023 2022 U.S., Canada and Latin America Devices $ 372,071 $ 250,768 $ 1,057,141 $ 771,475 Masks and other 257,070 224,665 765,364 681,803 Total U.S., Canada and Latin America $ 629,141 $ 475,433 $ 1,822,505 $ 1,453,278 Combined Europe, Asia and other markets Devices $ 235,818 $ 182,307 $ 611,123 $ 608,268 Masks and other 115,157 105,618 307,913 304,151 Total Combined Europe, Asia and other markets $ 350,975 $ 287,925 $ 919,036 $ 912,419 Global revenue Total Devices $ 607,889 $ 433,075 $ 1,668,264 $ 1,379,743 Total Masks and other 372,227 330,283 1,073,277 985,954 Total Sleep and Respiratory Care $ 980,116 $ 763,358 $ 2,741,541 $ 2,365,697 Software as a Service 136,782 101,142 359,395 297,693 Total $ 1,116,898 $ 864,500 $ 3,100,936 $ 2,663,390 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 cloud-hosted 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): March 31, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 686,264 $ 575,950 Accounts receivable, net Unbilled revenue, current 25,904 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 9,700 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (141,043) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (108,875) (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 our historical experience. However, returns of products, excluding warranty-related returns, have historically been 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 each quarter 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 $22.1 million and $66.2 million for the three and nine months ended March 31, 2023 and $19.8 million and $69.4 million for the three and nine months ended March 31, 2022. 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 | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have quantitatively and qualitatively determined that we operate in two operating segments, which are the Sleep and Respiratory Care segment and the SaaS segment. We evaluate the performance of our segments based on net revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the fiscal year ended June 30, 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, acquisition related expenses, net interest expense (income), loss attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our Chief Operating Decision Maker evaluate the operating segments using discrete asset information. 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 Nine Months Ended 2023 2022 2023 2022 Net revenue by segment Total Sleep and Respiratory Care $ 980,116 $ 763,358 $ 2,741,541 $ 2,365,697 Software as a Service 136,782 101,142 359,395 297,693 Total $ 1,116,898 $ 864,500 $ 3,100,936 $ 2,663,390 Depreciation and amortization by segment Sleep and Respiratory Care $ 21,201 $ 21,008 $ 59,501 $ 58,372 Software as a Service 2,375 1,863 6,385 5,421 Amortization of acquired intangible assets and corporate assets 20,780 19,435 52,510 58,405 Total $ 44,356 $ 42,306 $ 118,396 $ 122,198 Net operating profit by segment Sleep and Respiratory Care $ 390,697 $ 315,055 $ 1,116,724 $ 976,520 Software as a Service 32,201 23,649 85,782 67,892 Total $ 422,898 $ 338,704 $ 1,202,506 $ 1,044,412 Reconciling items Corporate costs $ 101,717 $ 85,727 $ 285,045 $ 243,077 Amortization of acquired intangible assets 20,510 18,712 51,702 56,446 Acquisition related expenses — — 9,157 — Interest expense (income), net 14,964 5,462 32,436 16,770 Loss attributable to equity method investments 183 2,627 5,037 5,927 (Gain) loss on equity investments (6,418) 1,735 (11,506) 527 Other, net 2,564 (1,878) 5,773 (729) Income before income taxes $ 289,378 $ 226,319 $ 824,862 $ 722,394 |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 9 Months Ended |
Mar. 31, 2023 | |
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 March 31, June 30, Raw materials $ 468,817 $ 355,225 Work in progress 3,530 3,077 Finished goods 538,922 385,608 Total inventories $ 1,011,269 $ 743,910 Prepaid expenses and other current assets March 31, June 30, Prepaid taxes $ 117,762 $ 99,352 Prepaid inventories 139,116 107,291 Other prepaid expenses and current assets 155,510 131,265 Total prepaid expenses and other current assets $ 412,388 $ 337,908 Property, Plant and Equipment March 31, June 30, Property, plant and equipment, at cost $ 1,183,878 $ 1,131,295 Accumulated depreciation and amortization (655,100) (633,114) Property, plant and equipment, net $ 528,778 $ 498,181 Other Intangible Assets March 31, June 30, Developed/core product technology $ 402,043 $ 350,671 Accumulated amortization (260,957) (239,647) Developed/core product technology, net 141,086 111,024 Customer relationships 442,909 257,034 Accumulated amortization (114,636) (91,731) Customer relationships, net 328,273 165,303 Other intangibles 240,665 204,580 Accumulated amortization (140,346) (134,963) Other intangibles, net 100,319 69,617 Total other intangibles, net $ 569,678 $ 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 | 9 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands): Nine Months Ended March 31, 2023 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 784,076 803,357 Foreign currency translation adjustments 8,691 35,134 43,825 Balance at the end of the period $ 669,696 $ 2,113,928 $ 2,783,624 |
Investments
Investments | 9 Months Ended |
Mar. 31, 2023 | |
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 March 31, June 30, Fair value $ 12,115 $ 9,167 Measurement alternative 70,640 39,290 Equity method 67,697 9,918 Total $ 150,452 $ 58,375 The following tables show a reconciliation of the changes in our equity investments (in thousands): Nine Months Ended March 31, 2023 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 (1) 21,738 4,991 60,233 86,962 Observable price adjustments on non-marketable equity securities 12,612 — — 12,612 Unrealized losses on marketable equity securities — (2,043) — (2,043) Realized gains on marketable and non-marketable equity securities 3,937 — — 3,937 Proceeds from exits of investments (3,937) — — (3,937) Impairment of investments (3,000) — — (3,000) Loss attributable to equity method investments — — (5,037) (5,037) Foreign currency translation adjustments — — 2,583 2,583 Carrying value at the end of the period $ 70,640 $ 12,115 $ 67,697 $ 150,452 (1) Includes additions from purchases and an equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 12 herein. Nine Months Ended March 31, 2022 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Net additions (reductions) to investments (2) 7,665 (3,202) 1,250 5,713 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Unrealized losses on marketable equity securities — (9,666) — (9,666) Realized gains on marketable and non-marketable equity securities 2,355 1,626 — 3,981 Impairment of investments (209) — — (209) Loss attributable to equity method investments — — (5,927) (5,927) Carrying value at the end of the period $ 38,180 $ 17,842 $ 12,477 $ 68,499 (2) Includes additions from purchases, reductions due to exits of securities, or reclassifications due to our acquisition of an investee in which we held a prior equity interest. Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of March 31, 2023 for the three and nine months ended March 31, 2023 were $2.5 million and $7.6 million. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of March 31, 2022 for the three and nine months ended March 31, 2022 were $1.7 million and $4.5 million. |
Income Taxes
Income Taxes | 9 Months Ended |
Mar. 31, 2023 | |
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 | 9 Months Ended |
Mar. 31, 2023 | |
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): Nine Months Ended 2023 2022 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 9,368 14,653 Warranty costs incurred for the period (9,561) (9,689) Foreign currency translation adjustments 144 41 Balance at the end of the period $ 25,840 $ 27,037 |
Debt
Debt | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consisted of the following (in thousands): March 31, June 30, Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs (99) (84) Short-term debt, net $ 9,901 $ 9,916 Long-term debt $ 1,580,000 $ 770,000 Deferred borrowing costs (4,037) (4,675) Long-term debt, net $ 1,575,963 $ 765,325 Total debt $ 1,585,864 $ 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 or 1.0 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 Limited 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 March 31, 2023, the interest rate that was being charged on the outstanding principal amounts was 5.8%. 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 March 31, 2023, we had $605.0 million 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 March 31, 2023 and June 30, 2022, which was $1,090.0 million and $280.0 million, respectively. 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 March 31, 2023 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 $471.5 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 | 9 Months Ended |
Mar. 31, 2023 | |
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 403,736 and 307,368 for the three months ended March 31, 2023 and 2022, respectively, and 290,639 and 52,599 for the nine months ended March 31, 2023 and 2022, 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 Nine Months Ended 2023 2022 2023 2022 Numerator: Net income $ 232,500 $ 179,012 $ 667,892 $ 584,376 Denominator: Basic weighted-average common shares outstanding 146,914 146,240 146,681 145,969 Effect of dilutive securities: Stock options and restricted stock units 481 722 719 1,065 Diluted weighted average shares 147,395 146,962 147,400 147,034 Basic earnings per share $ 1.58 $ 1.22 $ 4.55 $ 4.00 Diluted earnings per share $ 1.58 $ 1.22 $ 4.53 $ 3.97 |
Legal Actions, Contingencies an
Legal Actions, Contingencies and Commitments | 9 Months Ended |
Mar. 31, 2023 | |
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; that request is pending. In December 2022, the Patent Trial and Appeals Board (“PTAB”) of the Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU against us, determining that there is a reasonable likelihood that we will prevail. The PTAB’s final written decisions on the validity of the asserted claims is expected by December 2023. On April 10, 2023, the district court granted our request to stay the case pending the PTAB’s decision on the validity of the patents asserted by NYU. 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 were stayed pending the resolution of the ITC proceedings. The parties have returned to the district court for further proceedings. We were not a party to the ITC investigation, and we are not a party to the district court cases, but we sell products that incorporate some of the communications modules at issue in the district court case. 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; that motion is pending. On March 23, 2023, we filed a petition with the Patent Trial and Appeals Board (“PTAB”) of the Patent and Trademark Office seeking review of the validity of Cleveland Medical U.S. Patent 10,076,269. The PTAB will decide whether to review the validity of the ‘269 patent by September 2023. The parties are engaged in discovery in the Delaware action. The case is set for trial in August 2024. On March 23, 2023, ResMed Corp. filed suit in the Southern District of California, case no. 23-cv-00500-TWR-JLB, seeking a declaration that it does not infringe U.S. patent number 11,602,284 recently issued to Cleveland Medical. 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 nine months ended March 31, 2023 and March 31, 2022, receivables sold with limited recourse were $131.8 million and $126.2 million, respectively. As of March 31, 2023, the maximum exposure on outstanding receivables sold with recourse and the associated contingent provision were $29.7 million and $1.0 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. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments. Fair Value and Net Investment Hedging On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item. The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item as the hedged item, other, net, in the condensed consolidated statement of operations. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of operations under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net. The notional value of outstanding foreign cross-currency swaps was $1,042.2 million at March 31, 2023. These contracts mature at various dates prior to December 31, 2029. Non-Designated Hedges We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars 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 purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and 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. All movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed consolidated statements of income. The notional value of the outstanding non-designated hedges was $1,080.9 million and $602.0 million at March 31, 2023 and June 30, 2022, respectively. These contracts mature at various dates prior to December 15, 2024. Fair Values of Derivative Instruments The following table presents our assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets (in thousands): March 31, June 30, Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 4,547 $ 151 Prepaid expenses and other current assets Foreign currency hedging instruments 903 9 Prepaid taxes and other non-current assets Total derivative assets $ 5,450 $ 160 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 18,191 $ — Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 37,321 — Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 4,607 1,947 Accrued expenses Foreign currency hedging instruments 1,469 — Other long-term liabilities Total derivative liabilities $ 61,588 $ 1,947 Fair Value Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized in other comprehensive income (loss) $ (524) $ — $ (5,134) $ — Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) 754 — 1,601 — Gain (loss) recognized on cross-currency swap in other, net (3,920) — (13,057) — Gain (loss) recognized on intercompany debt in other, net 3,920 — 13,057 — Net Investment Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ (14,490) $ — $ (37,321) $ — Gain (loss) recognized from the excluded components in interest (expense) income, net 1,910 — 4,036 — Non-designated Derivative Gains (Losses) We recognized the following gains (losses) in the condensed consolidated statement of operations on derivatives not designated as hedging instruments (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized on foreign currency hedging instruments in other, net $ (69) $ (327) $ 19,499 $ (4,327) Gain (loss) recognized on other foreign-currency-denominated transactions in other, net (2,914) 2,052 (25,619) 4,587 Total $ (2,983) $ 1,725 $ (6,120) $ 260 We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy. |
Business Combinations
Business Combinations | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business CombinationsOn November 21, 2022, we completed our acquisition of 100% of the shares in MediFox-Dan Investment GmbH and its subsidiaries (“MEDIFOX DAN”), a German leader in software solutions for a wide variety of out-of-hospital care providers, for $997.5 million. This acquisition has been accounted for as a business combination using purchase accounting and included in our condensed consolidated financial statements from November 21, 2022. The acquisition was paid for using funds drawn down from our Revolving Credit Agreement. The total purchase price was allocated to MEDIFOX DAN's tangible and identifiable intangible assets and liabilities based upon preliminary estimated fair values as of the November 21, 2022 closing date, as follows (in thousands): Preliminary Intangible assets - useful life Cash $ 7,372 Accounts receivable 16,096 Property, plant and equipment 7,731 Equity method investment 57,298 Other assets 18,523 Accounts payable and accrued expenses (19,358) Deferred revenue (18,349) Other liabilities (11,623) Identifiable intangible assets: Developed technology 43,081 6 - 7 years Customer relationships 175,445 11 - 13 years Trade names 32,050 10 years Deferred tax liabilities (94,826) Goodwill 784,076 Purchase price $ 997,516 We have not finalized the purchase price allocation in relation to this acquisition as certain appraisals associated with the valuation of intangible assets and income tax positions are not yet complete. We do not believe that the completion of this work will materially modify the preliminary purchase price allocation. We expect to complete our purchase price allocation during the quarter ending June 30, 2023. 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 our SaaS 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. Pro forma results of operations have not been presented because the effects of this acquisition were not material to our condensed consolidated statements of operations. We did not incur material acquisition related expenses during the three months ended March 31, 2023. During the nine months ended March 31, 2022, we recorded acquisition related expenses of $9.2 million related to the MEDIFOX DAN acquisition. We did not have material acquisition related expenses during the three and nine months ended March 31, 2022. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2023 | |
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 and Germany 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 and nine months ended March 31, 2023 and March 31, 2022 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 care 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 Nine Months Ended 2023 2022 2023 2022 U.S., Canada and Latin America Devices $ 372,071 $ 250,768 $ 1,057,141 $ 771,475 Masks and other 257,070 224,665 765,364 681,803 Total U.S., Canada and Latin America $ 629,141 $ 475,433 $ 1,822,505 $ 1,453,278 Combined Europe, Asia and other markets Devices $ 235,818 $ 182,307 $ 611,123 $ 608,268 Masks and other 115,157 105,618 307,913 304,151 Total Combined Europe, Asia and other markets $ 350,975 $ 287,925 $ 919,036 $ 912,419 Global revenue Total Devices $ 607,889 $ 433,075 $ 1,668,264 $ 1,379,743 Total Masks and other 372,227 330,283 1,073,277 985,954 Total Sleep and Respiratory Care $ 980,116 $ 763,358 $ 2,741,541 $ 2,365,697 Software as a Service 136,782 101,142 359,395 297,693 Total $ 1,116,898 $ 864,500 $ 3,100,936 $ 2,663,390 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 cloud-hosted 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): March 31, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 686,264 $ 575,950 Accounts receivable, net Unbilled revenue, current 25,904 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 9,700 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (141,043) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (108,875) (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 our historical experience. However, returns of products, excluding warranty-related returns, have historically been 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 each quarter 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) | 9 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule 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 Nine Months Ended 2023 2022 2023 2022 U.S., Canada and Latin America Devices $ 372,071 $ 250,768 $ 1,057,141 $ 771,475 Masks and other 257,070 224,665 765,364 681,803 Total U.S., Canada and Latin America $ 629,141 $ 475,433 $ 1,822,505 $ 1,453,278 Combined Europe, Asia and other markets Devices $ 235,818 $ 182,307 $ 611,123 $ 608,268 Masks and other 115,157 105,618 307,913 304,151 Total Combined Europe, Asia and other markets $ 350,975 $ 287,925 $ 919,036 $ 912,419 Global revenue Total Devices $ 607,889 $ 433,075 $ 1,668,264 $ 1,379,743 Total Masks and other 372,227 330,283 1,073,277 985,954 Total Sleep and Respiratory Care $ 980,116 $ 763,358 $ 2,741,541 $ 2,365,697 Software as a Service 136,782 101,142 359,395 297,693 Total $ 1,116,898 $ 864,500 $ 3,100,936 $ 2,663,390 |
Schedule of Contract Balances | The following table summarizes our contract balances (in thousands): March 31, June 30, Balance sheet caption Contract assets Accounts receivable, net $ 686,264 $ 575,950 Accounts receivable, net Unbilled revenue, current 25,904 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 9,700 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (141,043) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (108,875) (95,455) Deferred revenue (non-current liabilities) |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule 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 Nine Months Ended 2023 2022 2023 2022 Net revenue by segment Total Sleep and Respiratory Care $ 980,116 $ 763,358 $ 2,741,541 $ 2,365,697 Software as a Service 136,782 101,142 359,395 297,693 Total $ 1,116,898 $ 864,500 $ 3,100,936 $ 2,663,390 Depreciation and amortization by segment Sleep and Respiratory Care $ 21,201 $ 21,008 $ 59,501 $ 58,372 Software as a Service 2,375 1,863 6,385 5,421 Amortization of acquired intangible assets and corporate assets 20,780 19,435 52,510 58,405 Total $ 44,356 $ 42,306 $ 118,396 $ 122,198 Net operating profit by segment Sleep and Respiratory Care $ 390,697 $ 315,055 $ 1,116,724 $ 976,520 Software as a Service 32,201 23,649 85,782 67,892 Total $ 422,898 $ 338,704 $ 1,202,506 $ 1,044,412 Reconciling items Corporate costs $ 101,717 $ 85,727 $ 285,045 $ 243,077 Amortization of acquired intangible assets 20,510 18,712 51,702 56,446 Acquisition related expenses — — 9,157 — Interest expense (income), net 14,964 5,462 32,436 16,770 Loss attributable to equity method investments 183 2,627 5,037 5,927 (Gain) loss on equity investments (6,418) 1,735 (11,506) 527 Other, net 2,564 (1,878) 5,773 (729) Income before income taxes $ 289,378 $ 226,319 $ 824,862 $ 722,394 |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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 March 31, June 30, Raw materials $ 468,817 $ 355,225 Work in progress 3,530 3,077 Finished goods 538,922 385,608 Total inventories $ 1,011,269 $ 743,910 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets March 31, June 30, Prepaid taxes $ 117,762 $ 99,352 Prepaid inventories 139,116 107,291 Other prepaid expenses and current assets 155,510 131,265 Total prepaid expenses and other current assets $ 412,388 $ 337,908 |
Schedule of Components of Property, Plant and Equipment | Property, Plant and Equipment March 31, June 30, Property, plant and equipment, at cost $ 1,183,878 $ 1,131,295 Accumulated depreciation and amortization (655,100) (633,114) Property, plant and equipment, net $ 528,778 $ 498,181 |
Schedule of Other Intangible Assets, Net | Other Intangible Assets March 31, June 30, Developed/core product technology $ 402,043 $ 350,671 Accumulated amortization (260,957) (239,647) Developed/core product technology, net 141,086 111,024 Customer relationships 442,909 257,034 Accumulated amortization (114,636) (91,731) Customer relationships, net 328,273 165,303 Other intangibles 240,665 204,580 Accumulated amortization (140,346) (134,963) Other intangibles, net 100,319 69,617 Total other intangibles, net $ 569,678 $ 345,944 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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): Nine Months Ended March 31, 2023 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 784,076 803,357 Foreign currency translation adjustments 8,691 35,134 43,825 Balance at the end of the period $ 669,696 $ 2,113,928 $ 2,783,624 |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments | Equity investments by measurement category were as follows (in thousands): Measurement category March 31, June 30, Fair value $ 12,115 $ 9,167 Measurement alternative 70,640 39,290 Equity method 67,697 9,918 Total $ 150,452 $ 58,375 |
Schedule of Changes in Equity Investments | The following tables show a reconciliation of the changes in our equity investments (in thousands): Nine Months Ended March 31, 2023 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 (1) 21,738 4,991 60,233 86,962 Observable price adjustments on non-marketable equity securities 12,612 — — 12,612 Unrealized losses on marketable equity securities — (2,043) — (2,043) Realized gains on marketable and non-marketable equity securities 3,937 — — 3,937 Proceeds from exits of investments (3,937) — — (3,937) Impairment of investments (3,000) — — (3,000) Loss attributable to equity method investments — — (5,037) (5,037) Foreign currency translation adjustments — — 2,583 2,583 Carrying value at the end of the period $ 70,640 $ 12,115 $ 67,697 $ 150,452 (1) Includes additions from purchases and an equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 12 herein. Nine Months Ended March 31, 2022 Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Net additions (reductions) to investments (2) 7,665 (3,202) 1,250 5,713 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Unrealized losses on marketable equity securities — (9,666) — (9,666) Realized gains on marketable and non-marketable equity securities 2,355 1,626 — 3,981 Impairment of investments (209) — — (209) Loss attributable to equity method investments — — (5,927) (5,927) Carrying value at the end of the period $ 38,180 $ 17,842 $ 12,477 $ 68,499 |
Product Warranties (Tables)
Product Warranties (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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): Nine Months Ended 2023 2022 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 9,368 14,653 Warranty costs incurred for the period (9,561) (9,689) Foreign currency translation adjustments 144 41 Balance at the end of the period $ 25,840 $ 27,037 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt consisted of the following (in thousands): March 31, June 30, Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs (99) (84) Short-term debt, net $ 9,901 $ 9,916 Long-term debt $ 1,580,000 $ 770,000 Deferred borrowing costs (4,037) (4,675) Long-term debt, net $ 1,575,963 $ 765,325 Total debt $ 1,585,864 $ 775,241 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
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 Nine Months Ended 2023 2022 2023 2022 Numerator: Net income $ 232,500 $ 179,012 $ 667,892 $ 584,376 Denominator: Basic weighted-average common shares outstanding 146,914 146,240 146,681 145,969 Effect of dilutive securities: Stock options and restricted stock units 481 722 719 1,065 Diluted weighted average shares 147,395 146,962 147,400 147,034 Basic earnings per share $ 1.58 $ 1.22 $ 4.55 $ 4.00 Diluted earnings per share $ 1.58 $ 1.22 $ 4.53 $ 3.97 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The following table presents our assets and liabilities related to derivative instruments on a gross basis within the condensed consolidated balance sheets (in thousands): March 31, June 30, Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 4,547 $ 151 Prepaid expenses and other current assets Foreign currency hedging instruments 903 9 Prepaid taxes and other non-current assets Total derivative assets $ 5,450 $ 160 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 18,191 $ — Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 37,321 — Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 4,607 1,947 Accrued expenses Foreign currency hedging instruments 1,469 — Other long-term liabilities Total derivative liabilities $ 61,588 $ 1,947 |
Schedule of Derivative Gains (Losses) | We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized in other comprehensive income (loss) $ (524) $ — $ (5,134) $ — Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) 754 — 1,601 — Gain (loss) recognized on cross-currency swap in other, net (3,920) — (13,057) — Gain (loss) recognized on intercompany debt in other, net 3,920 — 13,057 — We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ (14,490) $ — $ (37,321) $ — Gain (loss) recognized from the excluded components in interest (expense) income, net 1,910 — 4,036 — We recognized the following gains (losses) in the condensed consolidated statement of operations on derivatives not designated as hedging instruments (in thousands): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Gain (loss) recognized on foreign currency hedging instruments in other, net $ (69) $ (327) $ 19,499 $ (4,327) Gain (loss) recognized on other foreign-currency-denominated transactions in other, net (2,914) 2,052 (25,619) 4,587 Total $ (2,983) $ 1,725 $ (6,120) $ 260 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Mar. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to MEDIFOX DAN's tangible and identifiable intangible assets and liabilities based upon preliminary estimated fair values as of the November 21, 2022 closing date, as follows (in thousands): Preliminary Intangible assets - useful life Cash $ 7,372 Accounts receivable 16,096 Property, plant and equipment 7,731 Equity method investment 57,298 Other assets 18,523 Accounts payable and accrued expenses (19,358) Deferred revenue (18,349) Other liabilities (11,623) Identifiable intangible assets: Developed technology 43,081 6 - 7 years Customer relationships 175,445 11 - 13 years Trade names 32,050 10 years Deferred tax liabilities (94,826) Goodwill 784,076 Purchase price $ 997,516 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Mar. 31, 2023 USD ($) segment | Mar. 31, 2022 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | ||||
Number of operating segments | segment | 2 | |||
Operating lease revenue | $ | $ 22.1 | $ 19.8 | $ 66.2 | $ 69.4 |
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 - Schedule Of Net Revenue Disaggregated By Product And Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | $ 1,116,898 | $ 864,500 | $ 3,100,936 | $ 2,663,390 |
Total Sleep and Respiratory Care | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 980,116 | 763,358 | 2,741,541 | 2,365,697 |
Software as a Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 136,782 | 101,142 | 359,395 | 297,693 |
U.S., Canada and Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 629,141 | 475,433 | 1,822,505 | 1,453,278 |
U.S., Canada and Latin America | Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 372,071 | 250,768 | 1,057,141 | 771,475 |
U.S., Canada and Latin America | Masks and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 257,070 | 224,665 | 765,364 | 681,803 |
Combined Europe, Asia and other markets | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 350,975 | 287,925 | 919,036 | 912,419 |
Combined Europe, Asia and other markets | Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 235,818 | 182,307 | 611,123 | 608,268 |
Combined Europe, Asia and other markets | Masks and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 115,157 | 105,618 | 307,913 | 304,151 |
Global revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 1,116,898 | 864,500 | 3,100,936 | 2,663,390 |
Global revenue | Devices | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 607,889 | 433,075 | 1,668,264 | 1,379,743 |
Global revenue | Masks and other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 372,227 | 330,283 | 1,073,277 | 985,954 |
Global revenue | Total Sleep and Respiratory Care | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | 980,116 | 763,358 | 2,741,541 | 2,365,697 |
Global revenue | Software as a Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Net revenue by segment | $ 136,782 | $ 101,142 | $ 359,395 | $ 297,693 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule Of Contract Balances (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Contract assets | ||
Accounts receivable, net | $ 686,264 | $ 575,950 |
Contract liabilities | ||
Deferred revenue, current | (141,043) | (108,667) |
Deferred revenue, non-current | (108,875) | (95,455) |
Accounts receivable, net | ||
Contract assets | ||
Accounts receivable, net | 686,264 | 575,950 |
Prepaid expenses and other current assets | ||
Contract assets | ||
Unbilled revenue, current | 25,904 | 25,692 |
Prepaid taxes and other non-current assets | ||
Contract assets | ||
Unbilled revenue, non-current | 9,700 | 8,840 |
Deferred revenue (current liabilities) | ||
Contract liabilities | ||
Deferred revenue, current | (141,043) | (108,667) |
Deferred revenue (non-current liabilities) | ||
Contract liabilities | ||
Deferred revenue, non-current | $ (108,875) | $ (95,455) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 9 Months Ended |
Mar. 31, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information - Schedule
Segment Information - Schedule Of Revenue By Segment And Reconciling Items (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||||
Net revenue by segment | $ 1,116,898 | $ 864,500 | $ 3,100,936 | $ 2,663,390 |
Depreciation and amortization by segment | 44,356 | 42,306 | 118,396 | 122,198 |
Net operating profit by segment | 300,671 | 234,265 | 856,602 | 744,889 |
Amortization of acquired intangible assets | 12,188 | 7,730 | 29,701 | 23,175 |
Acquisition related expenses | 0 | 0 | 9,157 | 0 |
Loss attributable to equity method investments | 183 | 2,627 | 5,037 | 5,927 |
(Gain) loss on equity investments | (11,506) | 527 | ||
Other, net | (2,564) | 1,878 | (5,773) | 729 |
Income before income taxes | 289,378 | 226,319 | 824,862 | 722,394 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Net operating profit by segment | 422,898 | 338,704 | 1,202,506 | 1,044,412 |
Corporate Costs | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization by segment | 20,780 | 19,435 | 52,510 | 58,405 |
Reconciling items | ||||
Segment Reporting Information [Line Items] | ||||
Corporate costs | 101,717 | 85,727 | 285,045 | 243,077 |
Amortization of acquired intangible assets | 20,510 | 18,712 | 51,702 | 56,446 |
Acquisition related expenses | 0 | 0 | 9,157 | 0 |
Interest expense (income), net | 14,964 | 5,462 | 32,436 | 16,770 |
Loss attributable to equity method investments | 183 | 2,627 | 5,037 | 5,927 |
(Gain) loss on equity investments | (6,418) | 1,735 | (11,506) | 527 |
Other, net | 2,564 | (1,878) | 5,773 | (729) |
Income before income taxes | 289,378 | 226,319 | 824,862 | 722,394 |
Total Sleep and Respiratory Care | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue by segment | 980,116 | 763,358 | 2,741,541 | 2,365,697 |
Total Sleep and Respiratory Care | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization by segment | 21,201 | 21,008 | 59,501 | 58,372 |
Net operating profit by segment | 390,697 | 315,055 | 1,116,724 | 976,520 |
Software as a Service | ||||
Segment Reporting Information [Line Items] | ||||
Net revenue by segment | 136,782 | 101,142 | 359,395 | 297,693 |
Software as a Service | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Depreciation and amortization by segment | 2,375 | 1,863 | 6,385 | 5,421 |
Net operating profit by segment | $ 32,201 | $ 23,649 | $ 85,782 | $ 67,892 |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information - Schedule Of Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Supplemental Balance Sheet Information [Abstract] | ||
Raw materials | $ 468,817 | $ 355,225 |
Work in progress | 3,530 | 3,077 |
Finished goods | 538,922 | 385,608 |
Total inventories | $ 1,011,269 | $ 743,910 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information - Schedule Of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Prepaid expenses and other current assets | ||
Prepaid taxes | $ 117,762 | $ 99,352 |
Prepaid inventories | 139,116 | 107,291 |
Other prepaid expenses and current assets | 155,510 | 131,265 |
Total prepaid expenses and other current assets | $ 412,388 | $ 337,908 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information - Schedule Of Components Of Property, Plant And Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Supplemental Balance Sheet Information [Abstract] | ||
Property, plant and equipment, at cost | $ 1,183,878 | $ 1,131,295 |
Accumulated depreciation and amortization | (655,100) | (633,114) |
Property, plant and equipment, net | $ 528,778 | $ 498,181 |
Supplemental Balance Sheet In_6
Supplemental Balance Sheet Information - Schedule Of Other Intangible Assets, Net (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Jun. 30, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, net | $ 569,678 | $ 345,944 |
Developed/core product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 402,043 | 350,671 |
Accumulated amortization | (260,957) | (239,647) |
Total other intangibles, net | 141,086 | 111,024 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 442,909 | 257,034 |
Accumulated amortization | (114,636) | (91,731) |
Total other intangibles, net | 328,273 | 165,303 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 240,665 | 204,580 |
Accumulated amortization | (140,346) | (134,963) |
Total other intangibles, net | $ 100,319 | $ 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
Goodwill - Schedule Of Changes In Carrying Amount Of Goodwill (Details) $ in Thousands | 9 Months Ended |
Mar. 31, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 1,936,442 |
Business acquisitions | 803,357 |
Foreign currency translation adjustments | 43,825 |
Balance at the end of the period | 2,783,624 |
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 | 8,691 |
Balance at the end of the period | 669,696 |
SaaS | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,294,718 |
Business acquisitions | 784,076 |
Foreign currency translation adjustments | 35,134 |
Balance at the end of the period | $ 2,113,928 |
Investments - Schedule Of Inves
Investments - Schedule Of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Fair value | $ 12,115 | $ 9,167 |
Measurement alternative | 70,640 | 39,290 |
Equity method | 67,697 | 9,918 |
Total | $ 150,452 | $ 58,375 |
Investments - Schedule Of Chang
Investments - Schedule Of Changes In Equity Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Debt and Equity Investments [Roll Forward] | ||||
Balance at the beginning of the period | $ 58,375 | $ 69,240 | ||
Net additions (reductions) to investments | 86,962 | 5,713 | ||
Observable price adjustments on non-marketable equity securities | 12,612 | 5,367 | ||
Unrealized losses on marketable equity securities | (2,043) | (9,666) | ||
Realized gains on marketable and non-marketable equity securities | 3,937 | 3,981 | ||
Proceeds from exits of investments | (3,937) | (6,802) | ||
Impairment of investments | (3,000) | (209) | ||
Loss attributable to equity method investments | $ (183) | $ (2,627) | (5,037) | (5,927) |
Foreign currency translation adjustments | 2,583 | |||
Carrying value at the end of the period | 150,452 | 68,499 | 150,452 | 68,499 |
Non-marketable securities | ||||
Debt and Equity Investments [Roll Forward] | ||||
Balance at the beginning of the period | 39,290 | 23,002 | ||
Net additions (reductions) to investments | 21,738 | 7,665 | ||
Observable price adjustments on non-marketable equity securities | 12,612 | 5,367 | ||
Realized gains on marketable and non-marketable equity securities | 3,937 | 2,355 | ||
Proceeds from exits of investments | (3,937) | |||
Impairment of investments | (3,000) | (209) | ||
Carrying value at the end of the period | 70,640 | 38,180 | 70,640 | 38,180 |
Marketable securities | ||||
Debt and Equity Investments [Roll Forward] | ||||
Balance at the beginning of the period | 9,167 | 29,084 | ||
Net additions (reductions) to investments | 4,991 | (3,202) | ||
Unrealized losses on marketable equity securities | (2,043) | (9,666) | ||
Realized gains on marketable and non-marketable equity securities | 0 | 1,626 | ||
Carrying value at the end of the period | 12,115 | 17,842 | 12,115 | 17,842 |
Equity method investments | ||||
Debt and Equity Investments [Roll Forward] | ||||
Balance at the beginning of the period | 9,918 | 17,154 | ||
Net additions (reductions) to investments | 60,233 | 1,250 | ||
Loss attributable to equity method investments | (5,037) | (5,927) | ||
Foreign currency translation adjustments | 2,583 | |||
Carrying value at the end of the period | $ 67,697 | $ 12,477 | $ 67,697 | $ 12,477 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Method Investments and Joint Ventures [Abstract] | ||||
Equity securities, net unrealized gain (loss) | $ 2.5 | $ (1.7) | $ 7.6 | $ (4.5) |
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 O
Product Warranties - Schedule Of Changes In Liability For Warranty Costs (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 25,889 | $ 22,032 |
Warranty accruals for the period | 9,368 | 14,653 |
Warranty costs incurred for the period | (9,561) | (9,689) |
Foreign currency translation adjustments | 144 | 41 |
Balance at the end of the period | $ 25,840 | $ 27,037 |
Debt - Schedule of Debt (Detail
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 10,000 | $ 10,000 |
Deferred borrowing costs | (99) | (84) |
Short-term debt, net | 9,901 | 9,916 |
Long-term debt | 1,580,000 | 770,000 |
Deferred borrowing costs | (4,037) | (4,675) |
Long-term debt, net | 1,575,963 | 765,325 |
Total debt | $ 1,585,864 | $ 775,241 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 9 Months Ended | |||
Jun. 29, 2022 USD ($) | Mar. 31, 2023 USD ($) | 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 | 1,585,864,000 | 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 | 471,500,000 | 477,700,000 | ||
Revolving Credit Agreement, Term Credit Agreement, and Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding debt | 1,590,000,000 | |||
Revolving Credit Facility and Term Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | $ 1,090,000,000 | $ 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 | 5.80% | |||
Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Available for draw | $ 605,000,000 | |||
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% | |||
Revolving Credit Facility | Mufg Union Bank | ResMed Limited | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal payment | $ 5,000,000 | |||
Term Loan Credit Agreement | Minimum | Secured Overnight Financing Rate | ||||
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 | Secured Overnight Financing Rate | ||||
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% |
Earnings Per Share - Narrative
Earnings Per Share - Narrative (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount (share) | 403,736 | 307,368 | 290,639 | 52,599 |
Earnings Per Share - Schedule O
Earnings Per Share - Schedule Of Basic And Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Mar. 31, 2023 | Mar. 31, 2022 | |
Numerator: | ||||||||
Net income | $ 232,500 | $ 224,914 | $ 210,478 | $ 179,012 | $ 201,751 | $ 203,613 | $ 667,892 | $ 584,376 |
Denominator: | ||||||||
Basic weighted-average common shares outstanding (shares) | 146,914 | 146,240 | 146,681 | 145,969 | ||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units (shares) | 481 | 722 | 719 | 1,065 | ||||
Diluted weighted average shares (shares) | 147,395 | 146,962 | 147,400 | 147,034 | ||||
Basic earnings per share (dollars per share) | $ 1.58 | $ 1.22 | $ 4.55 | $ 4 | ||||
Diluted earnings per share (dollars per share) | $ 1.58 | $ 1.22 | $ 4.53 | $ 3.97 |
Legal Actions, Contingencies _2
Legal Actions, Contingencies and Commitments (Details) $ in Millions | 9 Months Ended | |||
Jun. 30, 2022 USD ($) | Mar. 31, 2023 USD ($) | Mar. 31, 2022 USD ($) | Jun. 16, 2022 patent | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Number of patents | patent | 8 | |||
Receivables sold with limited recourse | $ 131.8 | $ 126.2 | ||
Maximum potential contingent liability | $ 24.2 | 29.7 | ||
Contingent provision | $ 2.1 | $ 1 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Currency Swap | Fair Value And Net Investment Hedging | ||
Derivative [Line Items] | ||
Notional value | $ 1,042.2 | |
Foreign currency hedging instruments | Non-Designated Hedges | ||
Derivative [Line Items] | ||
Notional value | $ 1,080.9 | $ 602 |
Derivative, term of contract | 3 years |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule Of Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jun. 30, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 5,450 | $ 160 |
Derivative Liabilities | $ 61,588 | $ 1,947 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets (note 3) | Prepaid expenses and other current assets (note 3) |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Prepaid taxes and other non-current assets | Prepaid taxes and other non-current assets |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses | Accrued expenses |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 4,547 | $ 151 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Prepaid taxes and other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 903 | 9 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Accrued expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 4,607 | 1,947 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Other long-term liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 1,469 | 0 |
Designated as Hedging Instruments | Foreign currency hedging instruments | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 18,191 | 0 |
Designated as Hedging Instruments | Foreign currency hedging instruments | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 37,321 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule Of Fair Value Hedge Gains (Losses) (Details) - Currency Swap - Fair Value Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in other comprehensive income (loss) | $ (524) | $ 0 | $ (5,134) | $ 0 |
Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) | 754 | 0 | 1,601 | 0 |
Gain (loss) recognized on cross-currency swap in other, net | (3,920) | 0 | (13,057) | 0 |
Gain (loss) recognized on intercompany debt in other, net | $ 3,920 | $ 0 | $ 13,057 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule Of Net Investment Hedge Gains (Losses) (Details) - Currency Swap - Net Investment Hedging - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) | $ (14,490) | $ 0 | $ (37,321) | $ 0 |
Interest Expense | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Gain (loss) recognized from the excluded components in interest (expense) income, net | $ 1,910 | $ 0 | $ 4,036 | $ 0 |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Schedule Of Non-designated Derivative Gains (Losses) (Details) - Not Designated as Hedging Instruments - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total | $ (2,983) | $ 1,725 | $ (6,120) | $ 260 |
Foreign currency hedging instruments | Other Nonoperating Income (Expense) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total | (69) | (327) | 19,499 | (4,327) |
Other Foreign Exchange Contracts | Other Nonoperating Income (Expense) | ||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||||
Total | $ (2,914) | $ 2,052 | $ (25,619) | $ 4,587 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Nov. 21, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | Mar. 31, 2023 | Mar. 31, 2022 | |
Business Acquisition [Line Items] | |||||
Acquisition related expenses | $ 0 | $ 0 | $ 9,157 | $ 0 | |
MEDIFOX DAN | |||||
Business Acquisition [Line Items] | |||||
Percentage of business acquired | 100% | ||||
Purchase price | $ 997,500 |
Business Combinations - Schedul
Business Combinations - Schedule Of Tangible and Identifiable Intangible Assets and Liabilities (Details) - USD ($) $ in Thousands | Nov. 21, 2022 | Mar. 31, 2023 | Jun. 30, 2022 |
Business Acquisition [Line Items] | |||
Goodwill | $ 2,783,624 | $ 1,936,442 | |
MEDIFOX DAN | |||
Business Acquisition [Line Items] | |||
Cash | $ 7,372 | ||
Accounts receivable | 16,096 | ||
Property, plant and equipment | 7,731 | ||
Equity method investment | 57,298 | ||
Other assets | 18,523 | ||
Accounts payable and accrued expenses | (19,358) | ||
Deferred revenue | (18,349) | ||
Other liabilities | (11,623) | ||
Deferred tax liabilities | (94,826) | ||
Goodwill | 784,076 | ||
Purchase price | 997,516 | ||
MEDIFOX DAN | Developed technology | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 43,081 | ||
MEDIFOX DAN | Developed technology | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible assets - useful life | 6 years | ||
MEDIFOX DAN | Developed technology | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible assets - useful life | 7 years | ||
MEDIFOX DAN | Customer relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 175,445 | ||
MEDIFOX DAN | Customer relationships | Minimum | |||
Business Acquisition [Line Items] | |||
Intangible assets - useful life | 11 years | ||
MEDIFOX DAN | Customer relationships | Maximum | |||
Business Acquisition [Line Items] | |||
Intangible assets - useful life | 13 years | ||
MEDIFOX DAN | Trade names | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets | $ 32,050 | ||
Intangible assets - useful life | 10 years |