Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Jul. 28, 2017 | Dec. 31, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 30, 2017 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Trading Symbol | rmd | ||
Entity Registrant Name | RESMED INC | ||
Entity Central Index Key | 943,819 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 8,675,392,803 | ||
Entity Common Stock, Shares Outstanding | 142,209,115 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 821,935 | $ 731,434 |
Accounts receivable, net of allowance for doubtful accounts of $11,150 and $12,555 at June 30, 2017 and June 30, 2016, respectively | 450,530 | 382,086 |
Inventories (note 5) | 268,319 | 224,456 |
Prepaid expenses and other current assets | 103,219 | 81,743 |
Total current assets | 1,644,003 | 1,419,719 |
Non-current assets: | ||
Property, plant and equipment, net (note 6) | 394,241 | 384,276 |
Goodwill (note 7) | 1,064,874 | 1,059,245 |
Other intangible assets, net (note 7) | 261,800 | 299,808 |
Deferred income taxes (note 14) | 61,503 | 55,496 |
Other assets | 42,066 | 38,161 |
Total non-current assets | 1,824,484 | 1,836,986 |
Total assets | 3,468,487 | 3,256,705 |
Current liabilities: | ||
Accounts payable | 92,763 | 92,571 |
Accrued expenses (note 9) | 186,295 | 156,805 |
Deferred revenue | 51,918 | 50,009 |
Income taxes payable | 29,150 | 39,166 |
Short-term debt (note 11) | 299,438 | |
Total current liabilities | 360,126 | 637,989 |
Non-current liabilities: | ||
Deferred revenue | 53,235 | 40,281 |
Deferred income taxes (note 14) | 13,822 | 9,061 |
Other long-term liabilities | 2,427 | 1,211 |
Long-term debt (note 11) | 1,078,611 | 873,332 |
Total non-current liabilities | 1,148,095 | 923,885 |
Total liabilities | 1,508,221 | 1,561,874 |
Commitments and contingencies (note 18 and 19) | ||
Stockholders' equity: (note 12) | ||
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued | ||
Common stock, $0.004 par value, 350,000,000 shares authorized; 183,260,958 issued and 142,174,724 outstanding at June 30, 2017 and 181,747,157 issued and 140,660,923 outstanding at June 30, 2016 | 569 | 563 |
Additional paid-in capital | 1,379,130 | 1,303,238 |
Retained earnings | 2,316,237 | 2,160,299 |
Treasury stock, at cost, 41,086,234 shares at June 30, 2017, and 41,086,234 shares at June 30, 2016 | (1,546,611) | (1,546,611) |
Accumulated other comprehensive (loss) income | (189,059) | (222,658) |
Total stockholders' equity | 1,960,266 | 1,694,831 |
Total liabilities and stockholders' equity | $ 3,468,487 | $ 3,256,705 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Consolidated Balance Sheets [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 11,150 | $ 12,555 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.004 | $ 0.004 |
Common stock, shares authorized | 350,000,000 | 350,000,000 |
Common stock, shares issued | 183,260,958 | 181,747,157 |
Common stock, shares outstanding | 142,174,724 | 140,660,923 |
Treasury stock, shares held | 41,086,234 | 41,086,234 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements Of Income [Abstract] | |||
Net revenue | $ 2,066,737 | $ 1,838,713 | $ 1,678,912 |
Cost of sales (excluding amortization of acquired intangible assets) | 864,992 | 772,216 | 667,516 |
Gross profit | 1,201,745 | 1,066,497 | 1,011,396 |
Operating expenses: | |||
Selling, general and administrative | 553,968 | 488,057 | 478,627 |
Research and development | 144,467 | 118,651 | 114,865 |
Restructuring expenses (note 23) | 12,358 | 6,914 | |
Litigation settlement expenses (note 24) | 8,500 | ||
Acquisition related expenses (note 20) | 10,076 | ||
Amortization of acquired intangible assets | 46,578 | 23,923 | 8,668 |
Total operating expenses | 775,947 | 637,545 | 602,160 |
Income from operations | 425,798 | 428,952 | 409,236 |
Other income, net: | |||
Interest income | 17,085 | 16,860 | 26,208 |
Interest expense | (28,236) | (11,206) | (5,778) |
Other, net (note 13) | 4,096 | 4,960 | 6,250 |
Total other income, net | (7,055) | 10,614 | 26,680 |
Income before income taxes | 418,743 | 439,566 | 435,916 |
Income taxes (note 14) | 76,459 | 87,157 | 83,030 |
Net income | $ 342,284 | $ 352,409 | $ 352,886 |
Basic earnings per share | $ 2.42 | $ 2.51 | $ 2.51 |
Diluted earnings per share (note 4) | 2.40 | 2.49 | 2.47 |
Dividend declared per share | $ 1.32 | $ 1.20 | $ 1.12 |
Basic shares outstanding (000's) | 141,360 | 140,242 | 140,468 |
Diluted shares outstanding (000's) | 142,453 | 141,669 | 142,687 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Consolidated Statements Of Comprehensive Income [Abstract] | |||
Net income | $ 342,284 | $ 352,409 | $ 352,886 |
Other comprehensive (loss) income: | |||
Foreign currency translation (loss) gain adjustments | 33,599 | (49,142) | (325,073) |
Comprehensive income | $ 375,883 | $ 303,267 | $ 27,813 |
Consolidated Statements Of Stoc
Consolidated Statements Of Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-In Capital [Member] | Treasury Stock [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total | |
Beginning balance at Jun. 30, 2014 | $ 561 | $ 1,117,644 | $ (1,291,910) | $ 1,780,396 | $ 151,557 | $ 1,758,248 | |
Beginning balance, shares at Jun. 30, 2014 | 176,747,000 | (36,442,000) | |||||
Common stock issued on exercise of options (note 12) | $ 8 | 36,565 | 36,573 | ||||
Common stock issued on exercise of options, shares (note 12) | 1,954,000 | ||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 12) | $ 3 | (11,406) | (11,403) | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax, shares (note 12) | 651,000 | ||||||
Common stock issued on employee stock purchase plan (note 12) | $ 1 | 13,412 | 13,413 | ||||
Common stock issued on employee stock purchase plan, shares (note 12) | 309,000 | ||||||
Treasury stock purchases | $ (11) | $ (152,644) | (152,655) | ||||
Treasury stock purchases, shares | (2,744,000) | ||||||
Tax benefit from exercise of options | 24,868 | 24,868 | |||||
Stock-based compensation costs | 47,712 | 47,712 | |||||
Other comprehensive income | (325,073) | (325,073) | |||||
Net income | 352,886 | 352,886 | |||||
Dividends declared | (157,262) | (157,262) | |||||
Ending balance at Jun. 30, 2015 | $ 562 | 1,228,795 | $ (1,444,554) | 1,976,020 | (173,516) | 1,587,307 | |
Ending balance, shares at Jun. 30, 2015 | 179,661,000 | (39,186,000) | |||||
Common stock issued on exercise of options (note 12) | $ 5 | 26,247 | 26,252 | ||||
Common stock issued on exercise of options, shares (note 12) | 1,176,000 | ||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 12) | $ 3 | (12,388) | (12,385) | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax, shares (note 12) | 619,000 | ||||||
Common stock issued on employee stock purchase plan (note 12) | $ 1 | 14,081 | 14,082 | ||||
Common stock issued on employee stock purchase plan, shares (note 12) | 291,000 | ||||||
Treasury stock purchases | $ (8) | $ (102,057) | (102,065) | ||||
Treasury stock purchases, shares | (1,900,000) | ||||||
Stock-based compensation costs | 46,503 | 46,503 | |||||
Other comprehensive income | (49,142) | (49,142) | |||||
Net income | 352,409 | 352,409 | |||||
Dividends declared | (168,130) | (168,130) | |||||
Ending balance at Jun. 30, 2016 | $ 563 | 1,303,238 | $ (1,546,611) | 2,160,299 | (222,658) | 1,694,831 | |
Ending balance, shares at Jun. 30, 2016 | 181,747,000 | (41,086,000) | |||||
Common stock issued on exercise of options (note 12) | $ 3 | 22,246 | $ 22,249 | ||||
Common stock issued on exercise of options, shares (note 12) | 740,000 | 741,911 | [1] | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 12) | $ 2 | (8,159) | $ (8,157) | ||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax, shares (note 12) | 447,000 | ||||||
Common stock issued on employee stock purchase plan (note 12) | $ 1 | 15,884 | 15,885 | ||||
Common stock issued on employee stock purchase plan, shares (note 12) | 327,000 | ||||||
Treasury stock purchases | |||||||
Treasury stock purchases, shares | |||||||
Stock-based compensation costs | 45,921 | 45,921 | |||||
Other comprehensive income | 33,599 | 33,599 | |||||
Net income | 342,284 | 342,284 | |||||
Dividends declared | (186,346) | (186,346) | |||||
Ending balance at Jun. 30, 2017 | $ 569 | $ 1,379,130 | $ (1,546,611) | $ 2,316,237 | $ (189,059) | $ 1,960,266 | |
Ending balance, shares at Jun. 30, 2017 | 183,261,000 | (41,086,000) | |||||
[1] | Includes 1,508 shares netted for tax. |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 342,284 | $ 352,409 | $ 352,886 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 112,157 | 86,849 | 73,056 |
Stock-based compensation costs | 45,925 | 46,408 | 47,855 |
Impairment of long-lived assets | 2,815 | ||
Impairment of cost-method investments (note 8) | 1,955 | 750 | |
Changes in fair value of business combination contingent consideration (note 20) | 10,076 | (2,986) | (132) |
Payment of business combination contingent consideration (note 20) | (8,460) | ||
Gain on disposal of business | (709) | ||
Excess tax benefit from stock-based compensation arrangements | (24,959) | ||
Changes in operating assets and liabilities, net of effect of acquisitions: | |||
Accounts receivable, net | (63,604) | (27,307) | (28,259) |
Inventories, net | (41,599) | 30,492 | (99,524) |
Prepaid expenses, net deferred income taxes and other current assets | (19,257) | 12,121 | (22,849) |
Accounts payable, accrued expenses and other | 34,576 | 46,382 | 85,815 |
Net cash provided by operating activities | 414,053 | 547,933 | 383,180 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (62,219) | (58,534) | (62,502) |
Patent registration costs | (9,257) | (9,295) | (9,442) |
Business acquisitions, net of cash acquired | (7,274) | (1,041,864) | (29,407) |
Investments in cost-method investments | (6,464) | (8,965) | (10,750) |
Proceeds from disposal of cost-method investment | 468 | 937 | |
Purchases of foreign currency contracts | (700) | ||
(Payment)/proceeds on maturity of foreign currency contracts | 3,324 | (7,564) | (31,207) |
Net cash used in investing activities | (81,890) | (1,125,754) | (143,071) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net | 30,161 | 27,694 | 38,806 |
Excess tax benefit from stock-based compensation arrangements | 24,959 | ||
Purchases of treasury stock | (102,058) | (160,300) | |
Payment of business combination contingent consideration (note 20) | (11,682) | (1,228) | (458) |
Proceeds from borrowings, net of borrowing costs | 450,000 | 1,140,000 | 180,000 |
Repayment of borrowings | (545,000) | (283,694) | (181,536) |
Dividends paid | (186,346) | (168,130) | (157,262) |
Net cash (used in) provided by financing activities | (262,867) | 612,584 | (255,791) |
Effect of exchange rate changes on cash | 21,205 | (20,578) | (172,799) |
Net increaase (decrease) in cash and cash equivalents | 90,501 | 14,185 | (188,481) |
Cash and cash equivalents at beginning of period | 731,434 | 717,249 | 905,730 |
Cash and cash equivalents at end of period | 821,935 | 731,434 | 717,249 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net of refunds | 92,901 | 68,966 | 48,533 |
Interest paid | 28,236 | 11,206 | 5,778 |
Fair value of assets acquired, excluding cash | 10,460 | 338,353 | 20,408 |
Liabilities assumed | (877) | (79,808) | (8,528) |
Goodwill on acquisition | (645) | 796,306 | 20,947 |
Deferred payments | (84) | 120 | (1,703) |
Fair value of contingent consideration | (1,580) | (13,107) | (1,717) |
Cash paid for acquisition | $ 7,274 | $ 1,041,864 | $ 29,407 |
Organization And Basis Of Prese
Organization And Basis Of Presentation | 12 Months Ended |
Jun. 30, 2017 | |
Organization And Basis Of Presentation [Abstract] | |
Organization And Basis Of Presentation | (1) Organization and Basis of Presentation ResMed Inc. (referred to herein as “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia , France and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Norway and Sweden. |
Summary Of Significant Accounti
Summary Of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Summary Of Significant Accounting Policies | (2) Summary of Significant Accounting Policies (a) Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. (b) Revenue Recognition We generally record revenue on product sales at the time of shipment, which is when title transfers to the customer. We do not record revenue on product sales which require customer acceptance until we receive acceptance. We initially defer service revenue received in advance from service contracts and recognize that deferred revenue ratably over the life of the service contract. We initially defer revenue we receive in advance from rental unit contracts and recognize that deferred revenue ratably over the life of the rental contract. Otherwise, we recognize revenue from rental unit contracts ratably over the life of the rental contract. We include in revenue freight charges we bill to customers. We charge all freight-related expenses to cost of sales. Taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, are excluded from revenue. We do not recognize revenues to the extent that we offer a right of return or other recourse with respect to the sale of our products, other than returns for product defects or other warranty claims, nor do we recognize revenues if we offer variable sale prices for subsequent events or activities. However, as part of our sales processes we may provide upfront discounts for large orders, one-time special pricing to support new product introductions, sales rebates for centralized purchasing entities or price-breaks for regular order volumes. We record the costs of all such programs as an adjustment to revenue at the time the related revenue is recognized. Our products are predominantly therapy-based equipment and require no installation. Therefore, we have no installation obligations. For multiple-element arrangements, we allocate arrangement consideration to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor–specific objective evidence. We also generate revenue from time-based licensing of our software and associated services. In most instances, revenue is generated under sales agreements with multiple elements comprising subscription fees and professional services, which typically have contract terms of one to three years. We evaluate each element in these multiple-element arrangements to determine whether they represent a separate unit of accounting and recognize each element as the services are performed. (c) Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. Our cash and cash equivalents balance at June 30, 2017 , include $276.5 million in cash which is subject to notice periods of up to 90 days. The se cash balances earn interest rates above normal term deposit rates otherwise available and are held at highly rated financial institutions. (d) Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). (e) Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two to ten years except for buildings which are depreciated over an estimated useful life of 40 years and leasehold improvements, which we amortize over the lease term. We charge maintenance and repairs to expense as we incur them. (f) Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally five years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two to fifteen years. We evaluate the recoverability of intangible assets periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. We have not identified any impairment of intangible assets during any of the periods presented. (g) Goodwill We conducted our annual review for goodwill impairment during the final quarter of the year ended June 30, 2017 . Our goodwill impairment tests are performed at our reporting unit level which is one level below our operating segment. Fair value is determined based on estimated discounted cash flows. Our goodwill impairment review involved the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Factors considered included, but were not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 - Compare the fair value for each reporting unit to its carrying value, including goodwill. For each reporting unit where the carrying value, including goodwill, exceeds the reporting unit’s fair value, move on to Step 2. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. Step 2 - Allocate the fair value of the reporting unit to its identifiable tangible and non-goodwill intangible assets and liabilities. This will derive an implied fair value for the goodwill. Then, compare the implied fair value of the reporting unit’s goodwill with the carrying amount of the reporting unit’s goodwill. If the carrying amount of the reporting unit’s goodwill is greater than the implied fair value of its goodwill, an impairment loss must be recognized for the excess. The results of our review indicated that no impaired goodwill exists as the fair value for each reporting unit exceeded its carrying value. (h) Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates, but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. (i) Research and Development We record all research and development expenses in the period we incur them. (j) Financial Instruments The carrying value of financial instruments, such as cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. We do not hold or issue financial instruments for trading purposes. The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. (k) Foreign Exchange Risk Management We enter into various types of foreign exchange contracts in managing our foreign exchange risk, including derivative financial instruments encompassing forward exchange contracts and foreign currency options. The purpose of our foreign currency hedging activities is to protect us from adverse exchange rate fluctuations with respect to net cash movements resulting from the sales of products to foreign customers and Australian and Singapore manufacturing activities. We enter into foreign exchange contracts to hedge anticipated sales and manufacturing costs, principally denominated in Australian and Singapore dollars, and Euros. The terms of such foreign exchange contracts generally do not exceed three years. We have determined our hedge program to be a non-effective hedge as defined. We record the foreign currency derivatives portfolio at fair value and include it in other assets and accrued expenses in our consolidated balance sheets. We do not offset the fair value amounts recognized for foreign currency derivatives. We classify purchases of foreign currency derivatives and proceeds received from the exercise of foreign currency derivatives as an investing activity within our consolidated statements of cash flows. We record all movements in the fair value of the foreign currency derivatives within other income, net in our consolidated statements of income. (l) Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. (m) Provision for Warranty We provide for the estimated cost of product warranties 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. ( n ) Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in bad debt expense. We determine the adequacy of this allowance by periodically evaluating individual customer receivables, considering a customer’s financial condition, credit history and current economic conditions. We are also contingently liable, within certain limits, in the event of a customer default, to independent leasing companies in connection with customer leasing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. ( o ) Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2017 and 2015, but during the fiscal year ended June 30, 2016 , we recognized $ 2.8 million of impairment charges. ( p ) Contingencies We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
New Accounting Pronouncements
New Accounting Pronouncements | 12 Months Ended |
Jun. 30, 2017 | |
New Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements | (3) New Accounting Pronouncements (a) Recently issued accounting standards not yet adopted ASU No. 2014-09, “Revenue from Contracts with Customers” In May, 2014, the FASB issued Accounting Standards Update (ASU), ASU No. 2014-09, “Revenue from Contracts with Customers” (Topic 606), which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. Since its initial release, the FASB has issued several amendments to the standard, which include clarification of accounting guidance related to identification of performance obligations, intellectual property licenses, and principal vs. agent considerations. ASU 2014-09 and all subsequent amendments (collectively, the “ new revenue recognition standards ” ) will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The guidance also requires improved disclosures on the nature, amount, timing, and uncertainty of revenue that is recognized. We formed an implementation team in fiscal year June 30, 2017 to oversee adoption of the new revenue recognition standards. The implementation team has commenced the diagnostic phase of its project which has included composition and detailed review of our contract portfolio and selection of sample contracts for assessment which, we expect to complete in the second quarter of the year ending June 30, 2018 . T here are a number of steps in the team ’ s project plan that remain to be completed including: finalizing contract reviews, evaluating the impact, and working through required changes to systems, business processes and controls to support the adoption of the new revenue recognition standards. W e expect there will be changes to our accounting policies to align with terminology and concepts in the new revenue recognition standards as well as increased disclosures relating to our revenue streams, contract-related balances and contract details. The new revenue recognition standard is effective for us beginning in the first quarter of the fiscal year ending June 30, 2019 and early application is permitted for annual or interim periods beginning after December 15, 2016 . The new guidance can be applied retrospectively to each prior reporting period presented, or retrospectively with the cumulative effect of the change recognized at the date of the initial application. Assuming the impact is not material, we expect to adopt the new revenue recognition standards using the modified retrospective method with an adjustment to beginning retained earnings for the cumulative effect of the change. ASU No. 2016-01, "Financial Instruments - Overall" In January 2016, the FASB issued Accounting Standards Update ASU No. 2016-01, "Financial Instruments - Overall" (Topic 825-10). The amendments address certain aspects of recognition, measurement, presentation, and disclosure of financial instruments, and require equity securities to be measured at fair value with changes in fair value recognized through net income. The amendments also simplify the impairment assessment of equity investments without readily determinable fair values by requiring a qualitative assessment for impairment quarterly at each reporting period. The amendments in ASU 2016-01 will be effective for our first quarter of the fiscal year ending June 30, 2019. An entity should apply the amendments by means of a cumulative-effect adjustment to the balance sheet as of the beginning of the fiscal year of adoption, with prospective adoption of the amendments related to equity securities without readily determinable fair values existing as of the date of adoption. We are currently assessing the impact as this standard will be relevant for our Cost-Method Investments. ASU No. 2016-02, “Leases” In February 2016, the FASB issued Accounting Standard Update ASU No. 2016-02, “Leases” (Topic 842). Under the new guidance, lessees are required to recognize a right-of-use asset and a lease liability on the balance sheet for all leases, other than those that meet the definition of a short-term lease. This update will establish a lease asset and lease liability by lessees for those leases classified as operating under current GAAP. Leases will be classified as either operating or finance under the new guidance. Operating leases will result in straight-line expense in the income statement, similar to current operating leases, and finance leases will result in more expense being recognized in the earlier years of the lease term, similar to current capital leases. For lessors, the update will more closely align lease accounting to comparable guidance in the new revenue standards described. The new standard is effective for us beginning in the first quarter of the fiscal year ending June 30, 2020 and early application is not permitted. ASU 2016-02 will be adopted on a modified retrospective transition basis for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. We are currently evaluating the impact of this standard on its consolidated financial statements and expect to commence an implementation project during the fiscal year ending June 30, 2018. While the formal impact assessment has not commenced, we expect this amendment will affect the way we account for operating leases where we are the lessee (as described above), require reassessment of how we account for revenue where we are the lessor and will result in increased disclosures for all lease arrangements. ASU No. 2016-16 , “ Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory ” In October 2016, the FASB iss ued Accounting Standard Update ASU No. 2016-16, “Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory” (Topic 740). Under the new guidance , an entity is required to recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs and eliminates the exception for an intra-entity transfer of an asset other than inventory. ASU 2016-1 6 will be effective for the first quarter of our fiscal year ending June 30, 2019 , with early adoption permitted. I f we enter into transactions within the scope of the standard, it could result in additional deferred tax balances being recognized at the time of the transfer. (b) Recently adopted accounting pronouncements ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" In April, 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs". ASU 2015-03 more closely align s the presentation of debt issuance costs under U.S. GAAP with the presentation under comparable I nternational F inancial R eporting Standards , or IFRS, by requiring that debt issuance costs be presented on the balance sheet as a direct deduction from the carrying amount of the related debt liability. As of July 1, 2016, we adopted ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs" which amended ASC 835-30, Interest – Imputation of Interest. As a result of the adoption , $2.2 million was reclassified from other assets and $0.6 million and $1.6 million we recognised in short-term debt and long-term debt , respectively in the company’s consolidated balance sheet as of June 30, 2016. The adoption of this guidance did not impact the company’s consolidated statements of income, comprehensive income, stockholders’ equity or cash flows. ASU No. 2015-11, “Simplifying the Measurement of Inventory” In July 2015, the FASB issued ASU No. 2015-11, “Simplifying the Measurement of Inventory” which requires an entity to measure inventory within the scope of this ASU at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this guidance more closely align the measurement of inventory in GAAP with the measurement of inventory in IFRS. This accounting guidance was effective for us beginning in the first quarter of our fiscal year ending, June 30, 2018, however we have elected to early-adopt this amendment which can only be adopted on a prospective basis. There has been no impact on our consolidated financial statements and related disclosures as a result of this adoption. ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting” On March 30, 2016, the FASB issued ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, which requires companies to recognize additional tax benefits or expenses related to the vesting or settlement of employee share-based awards (the difference between the actual benefit for tax purposes and the tax benefit initially recognized for financial reporting purposes) as income tax benefit or expense in earnings, rather than in additional paid-in capital, in the reporting period in which they occur. This ASU also requires companies to classify cash flows resulting from employee share-based payments, including the additional tax benefits or expenses related to the vesting or settlement of share-based awards, as cash flows from operating activities rather than financing activities. Although this change will reduce some of the administrative complexities of tracking share-based awards, it will increase the volatility of our income tax expense and cash flows from operations. The new standard is effective for annual reporting periods beginning after December 15, 2016, with early adoption permitted. We elected to early adopt this ASU during the fourth quarter of fiscal year 2016 and we re therefore required to report the impacts as though the ASU had been adopted on July 1, 2015, the beginning of our fiscal year, and to reflect the tax benefit as a discrete item within each of the respective interim reporting periods. Accordingly, we recognized additional income tax benefits as an increase to earnings of $6.1 million and $11.2 million during the year s ended June 30, 2017 and June 30, 2016, respectively. We also recognized additional income tax benefits as an increase to operating cash flows of $9.2 million and $14.5 million for the year s ended June 30, 2017 and June 30, 2016, respectively. The new accounting standard did not impact any periods prior to July 1, 2015, as we applied the changes on a prospective basis. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (4) Earnings Per Share We compute basic earnings per share by dividing the net income available to common stockholders by the weighted average number of shares of common stock outstanding. For purposes of calculating diluted earnings per share, the denominator includes both the weighted average number of shares of common stock outstanding and the number of dilutive common stock equivalents such as stock options and restricted stock units. The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings per share were 173,000 , 297,000 a nd 62,000 f or the years ended June 30, 2017, 2016 and 2015 , respectively, as the effect would have been anti-dilutive. Basic and diluted earnings per share for the years ended June 30, 2017, 2016 and 2015 are calculated as follows (in thousands except per share data): 2017 2016 2015 Numerator: Net Income, used in calculating diluted earnings per share $ 342,284 $ 352,409 $ 352,886 Denominator: Basic weighted-average common shares outstanding 141,360 140,242 140,468 Effect of dilutive securities: Stock options and restricted stock units 1,093 1,427 2,219 Diluted weighted average shares 142,453 141,669 142,687 Basic earnings per share $ 2.42 $ 2.51 $ 2.51 Diluted earnings per share $ 2.40 $ 2.49 $ 2.47 |
Inventories
Inventories | 12 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Inventories | (5) Inventories Inventories were comprised of the following as of June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Raw materials $ 75,658 $ 67,121 Work in progress 4,297 3,939 Finished goods 188,364 153,396 Total inventories $ 268,319 $ 224,456 |
Property, Plant And Equipment,
Property, Plant And Equipment, Net | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant And Equipment, Net [Abstract] | |
Property, Plant And Equipment, Net | (6) Property, Plant and Equipment, net Property, plant and equipment, net is comprised of the following as of June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Machinery and equipment $ 230,632 $ 197,485 Computer equipment 154,032 154,105 Furniture and fixtures 47,074 40,776 Vehicles 7,667 9,060 Clinical, demonstration and rental equipment 86,024 79,641 Leasehold improvements 35,932 33,795 Land 55,311 54,338 Buildings 233,868 229,502 850,540 798,702 Accumulated depreciation and amortization (456,299) (414,426) Property, plant and equipment, net $ 394,241 $ 384,276 |
Goodwill And Other Intangible A
Goodwill And Other Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill And Other Intangible Assets, Net [Abstract] | |
Goodwill And Other Intangible Assets, Net | (7) Goodwill and Other Intangible Assets, net Goodwill Changes in the carrying amount of goodwill for the years ended June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Balance at the beginning of the period $ 1,059,245 $ 264,261 Business acquisitions (note 22) (645) 796,306 Foreign currency translation adjustments 6,274 (1,322) Balance at the end of the period $ 1,064,874 $ 1,059,245 For each of the years ended June 30, 2017 and June 30, 2016 , we have not recorded any goodwill impairments. Other Intangible Assets Other intangibles, net are comprised of the following as of June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Developed/core product technology $ 206,258 $ 202,050 Accumulated amortization (93,079) (63,825) Developed/core product technology, net 113,179 138,225 Trade names 48,768 47,897 Accumulated amortization (10,894) (3,832) Trade names, net 37,874 44,065 Non-compete agreements 3,660 3,089 Accumulated amortization (2,236) (1,899) Non-compete agreements, net 1,424 1,190 Customer relationships 122,458 118,528 Accumulated amortization (40,050) (26,783) Customer relationships, net 82,408 91,745 In-process research and development 4,100 4,100 In-process research and development, net 4,100 4,100 Patents 85,780 74,034 Accumulated amortization (62,965) (53,551) Patents, net 22,815 20,483 Total other intangibles, net $ 261,800 $ 299,808 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships , and patents, and we amortize them over the estimated useful life of the assets, generally between two and fifteen years . There are no expected residual values related to these intangible assets. In-process research and development is amortized over the estimated the useful life of the assets, once the research and development efforts are completed. At least on an annual basis, we evaluate the in-process research and development balances for impairment. Refer to note 22 of the consolidated financial statements for details of acquisitions made during the year. Amortization expense related to identifiable intangible assets, including patents, for the year ended June 30, 2017 was $46.6 million . Estimated annual amortization expense for the years ending June 30, 2018 through June 30, 2022 , is shown below (in thousands): Fiscal Year Amortization expense 2018 $ 53,761 2019 51,705 2020 46,610 2021 38,623 2022 29,397 |
Cost-Method Investments
Cost-Method Investments | 12 Months Ended |
Jun. 30, 2017 | |
Cost-Method Investments [Abstract] | |
Cost-Method Investments | (8) Cost-Method Investments The aggregate carrying amount of our cost-method investments at June 30, 2017 and June 30, 2016 , included within our other long-term assets on our consolidated balance sheets, was $ 38.3 million and $ 33.8 million, respectively. We periodically evaluate the carrying value of our cost-method investments, when events and circumstances indicate that the carrying amount of an asset may not be recovered. We determine the fair value of our cost-method investments to evaluate whether impairment losses shall be recorded using Level 3 inputs. These investments include our holdings in privately held service and research companies that are not exchange traded and therefore not supported with observable market prices. However, these investments are valued by reference to their net asset values which can be market supported and unobservable inputs including future cash flows. We have determined, that the fair value of our cost-method investments exceed their carrying values. The following table shows a reconciliation of the changes in our cost-method investments during the years ended June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Balance at the beginning of the period $ 33,815 $ 25,600 Investments 6,464 8,965 Impairment of investments (1,955) (750) Balance at the end of the period $ 38,324 $ 33,815 |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2017 | |
Accrued Expenses [Abstract] | |
Accrued Expenses | (9) Accrued Expenses Accrued expenses at June 30, 2017 and June 30, 2016 consist of the following (in thousands): 2017 2016 Product warranties $ 19,558 $ 15,043 Consulting and professional fees 10,506 11,948 Value added taxes and other taxes due 18,228 14,769 Employee related costs 100,410 83,407 Marketing and promotional programs 2,661 2,401 Business acquisition contingent consideration 651 10,450 Hedging instruments 460 243 Liability on receivables sold with recourse (note 19) 18,068 4,615 Accrued interest 1,050 1,271 Other 14,703 12,658 $ 186,295 $ 156,805 |
Product Warranties
Product Warranties | 12 Months Ended |
Jun. 30, 2017 | |
Product Warranties [Abstract] | |
Product Warranties | (10) Product Warranties We include the liability for warranty costs in accrued expenses in our consolidated balance sheets. Changes in the liability for product warranty for the years ended June 30, 2017 and June 30, 2016 are as follows (in thousands): 2017 2016 Balance at the beginning of the period $ 15,043 $ 9,823 Fair value of warranty obligations acquired on business combination - 971 Warranty accruals for the period 19,805 15,014 Warranty costs incurred for the period (15,489) (10,667) Foreign currency translation adjustments 199 (98) Balance at the end of the period $ 19,558 $ 15,043 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2017 | |
Debt [Abstract] | |
Debt | (11) Debt D ebt at June 30, 2017 and June 30, 2016 consists of the following (in thousands): June 30, 2017 June 30, 2016 Short-term debt $ - $ 300,000 Deferred borrowing costs - (562) Short-term debt, net - 299,438 Long-term debt 1,080,000 875,000 Deferred borrowing costs (1,389) (1,668) Long-term debt, net 1,078,611 873,332 Total debt $ 1,078,611 $ 1,172,770 Credit Facility On October 31, 2013, we entered into a revolving credit agreement, as borrower, with lenders, including Union Bank, N.A., as administrative agent, joint lead arranger, swing line lender and letters of credit issuer, and HSBC Bank USA, National Association, as syndication agent and joint lead arranger, providing for a revolving credit facility of $700 million, with an uncommitted option to increase the revolving credit facility by an additional $300 million. On April 4, 2016, in connection with our acquisition of Brightree LLC (“Brightree”), we entered into a first amendment to the revolving credit agreement to increase the size of the revolving credit facility from $700 million to $1 billion, with an uncommitted option to increase the revolving credit facility by an additional $300 million, and to make other modifications to provide for the acquisition of Brightree. On January 9, 2017, we entered into a second amendment to our agreement with our existing lenders, including MUFG Union Bank, N.A. as successor in interest to Union Bank, N.A., as Administrative Agent, Joint Lead Arranger, Swing Line Lender and L/C Issuer; and HSBC Bank USA, National Association, as Syndication Agent and Joint Lead Arranger. The second amendment, among other things, increases the size of our senior unsecured revolving credit facility from $1.0 billion to $1.3 billion, with an uncommitted option to increase the revolving credit facility by an additional $300 million. The credit facility terminates on October 31, 2018 , when all unpaid principal and interest under the loans must be repaid. The outstanding principal amount due under the credit facility will bear interest at a rate equal to LIBOR plus 1.0% to 2.0% (depending on the then-applicable leverage ratio). At June 30, 2017 , the interest rate that was being charged on the outstanding principal amount was 2.7% . A commitment fee of 0.15% to 0.25% (depending on the then-applicable leverage ratio) applies on the unused portion of the credit facility. The credit facility also includes a $25 million sublimit for letters of credit. Our obligations under the revolving credit agreement (as amended) are unsecured but are guaranteed by certain of our direct and indirect U. S. subsidiaries, including ResMed Corp., ResMed Motor Technologies Inc., Birdie Inc., Inova Labs, Inc., Brightree, Brightree Services LLC, Brightree Home Health & Hospice LLC and Strategic AR LLC, under an unconditional guaranty. The credit agreement contains customary covenants, including certain financial covenants and an obligation that we maintain certain financial ratios, including a maximum leverage ratio of funded debt to EBITDA (as defined in the credit agreement) and an interest coverage ratio. At June 30, 2017 , we were in compliance with our debt covenants and there was $ 1,080.0 million outstanding under the revolving credit facility. We expect to satisfy all of our liquidity requirements through a combination of cash on hand, cash generated from operations and debt facilities. Term Loan On April 4, 2016, in connection with the Brightree acquisition, we also entered into the term loan credit agreement providing a $300 million senior unsecured one -year term loan credit facility. The proceeds from the funding of the term loan credit facility were used to pay a portion of the acquisition consideration for the Brightree acquisition, as well as to pay fees and expenses in connection with the acquisition, the amendment to the revolving credit agreement and the t erm l oan c redit a greement. On March 30, 2017 we drew down $300 million from the revolving credit facility to pay off all outstanding amounts under the term loan credit facility, in advance of the scheduled termination of the term loan credit facility on April 3, 2017. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Stockholders' Equity | (12) Stockholders’ Equity Common Stock. On February 21, 2014, our board of directors approved a new share repurchase program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. The program allows us to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block transactions, as market and business conditions warrant and subject to applicable legal requirements. The 20.0 million shares the new program authorizes us to purchase are in addition to the shares we repurchased on or before February 21, 2014 under our previous programs. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases since February 21, 2014 have been executed in accordance with this program. We temporarily suspended our share repurchase program due to recent acquisitions. Accordingly, we did no t repurchase any shares during the year ended June 30, 2017 . However, we expect to resume the share repurchase program during fiscal year 2018 . As noted above, we did not repurchase any shares during the year ended June 30, 2017. During the year ended June 30, 2016 , we repurchased 1.9 million shares at a cost of $ 1 0 2. 1 million prior to the temporary suspension of the share repurchase program . As of June 30, 2017 , we have repurchased a total of 41.1 million shares at a cost of $ 1 . 5 billion . Shares that are repurchased are classified as “treasury stock pending future use” and reduce the number of shares outstanding used in calculating earnings per share. At June 30, 2017 , 13.6 million additional shares can be repurchased under the approved share repurchase program. Preferred Stock. In April 1997, our board of directors authorized 2,000,000 shares of $ 0.01 par value preferred stock. No such shares were issued or outstanding at June 30, 2017 . Stock Options and Restricted Stock Units. We have granted stock options and restricted stock units to personnel, including officers and directors, in accordance with the ResMed Inc. 2009 Incentive Award Plan (the “2009 Plan”). These options and restricted stock units vest over one to four years and the options have expiration dates of seven years from the date of grant. We have granted the options with an exercise price equal to the market value as determined at the date of grant. The maximum number of shares of our common stock authorized for issuance under the 2009 Plan is 43.7 million . The number of securities remaining available for future issuance under the 2009 Plan at June 30, 2017 is 11.6 million . The number of shares of our common stock available for issuance under the 2009 Plan will be reduced by (i) 2.8 shares for each one share of common stock delivered in settlement of any “full-value award,” which is any award other than a stock option, stock appreciation right or other award for which the holder pays the intrinsic value and (ii) one share for each share of common stock delivered in settlement of all other awards. The maximum number of shares, which may be subject to awards granted under the 2009 Plan to any individual during any calendar year, may not exceed 3 million shares of our common stock (except in a participant’s initial year of hiring up to 4.5 million shares of our common stock may be granted). At June 30, 2017 , there was $73.2 million in unrecognized compensation costs related to unvested stock-based compensation arrangements. This is expected to be recognized over a weighted average period of 2.3 years. The aggregate intrinsic value of the stock-based compensation arrangements outstanding and exercisable at June 30, 2017 and June 30, 2016 was $194.5 million and $164.9 million, respectively. The aggregate intrinsic value of the options exercised during the fiscal years 2017 , 2016 and 2015 , was $28.1 million, $40.4 million and $80.2 million, respectively. The following table summarizes option activity during the year ended June 30, 2017 : Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,924,229 $ 38.70 3.2 Granted 313,255 58.42 Exercised* (741,911) 30.12 Forfeited - - Outstanding at end of period 1,495,573 $ 47.09 3.9 Exercise price of granted options $ 58.42 Options exercisable at end of period 968,023 $ 41.32 * Includes 1,508 shares netted for tax. The following table summarizes the activity of restricted stock units, including performance restricted stock units, during year ended June 30, 2017 : Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,861,510 $ 50.52 1.4 Granted 864,562 54.57 Vested* (584,517) 47.77 Expired (178,376) 50.08 Forfeited (56,784) 50.74 Outstanding at end of period 1,906,395 $ 53.26 1.6 * Includes 137,932 shares netted for tax. Employee Stock Purchase Plan (the “ESPP”). Under the ESPP, we offer participants the right to purchase shares of our common stock at a discount during successive offering periods. Each offering period under the ESPP will be for a period of time determined by the board of directors’ compensation committee of no less than 3 months and no more than 27 months. The purchase price for our common stock under the ESPP will be the lower of 85 % of the fair market value of our common stock on the date of grant or 85 % of the fair market value of our common stock on the date of purchase. An individual participant cannot subscribe for more than $ 25,000 in common stock during any calendar year. At June 30, 2017 , the number of shares remaining available for future issuance under the ESPP is 0.8 million shares. During years ended June 30, 2017 and June 30, 2016 , we issued 327,000 and 291,000 shares to our employees in two offerings and we recognized $ 4.2 million and $ 4.3 million, respectively, of stock compensation expense associated with the ESPP. The following table summarizes the total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2017, 2016 and 2015 (in thousands): 2017 2016 2015 Cost of sales - capitalized as part of inventory $ 2,877 $ 2,731 $ 2,605 Selling, general and administrative expenses 37,096 36,994 38,755 Research and development expenses 5,952 6,683 6,495 Stock-based compensation costs 45,925 46,408 47,855 Tax benefit* (20,100) (25,020) (14,100) Stock-based compensation costs, net of tax benefit $ 25,825 $ 21,388 $ 33,755 * Includes an additional tax benefit of $6 .1 and $11.2 million for the years ended June 30, 2017 and June 30, 2016, respectively, associated with the early adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, discussed in Note 3 - New Accounting Pronouncements. |
Other, Net
Other, Net | 12 Months Ended |
Jun. 30, 2017 | |
Other, Net [Abstract] | |
Other, Net | (13) Other, net Other, net, in the consolidated statements of income is comprised of the following for the years ended 2017, 2016 and 2015 ( in thousands): 2017 2016 2015 Gain (loss) on foreign currency transactions and hedging, net $ 5,434 $ 4,169 $ 5,068 Impairment of cost method investments (1,955) (750) - Other 617 1,541 1,182 $ 4,096 $ 4,960 $ 6,250 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | (14) Income Taxes Income before income taxes for the years ended June 30, 2017, 2016 and 2015 , was taxed under the following jurisdictions (in thousands): 2017 2016 2015 U.S. $ (4,985) $ 1,785 $ 11,431 Non-U.S. 423,728 437,781 424,485 $ 418,743 $ 439,566 $ 435,916 The provision for income taxes is presented below (in thousands): 2017 2016 2015 Current: Federal $ 16,468 $ 24,325 $ 28,429 State (1,159) 5,805 695 Non-U.S. 65,612 58,023 50,892 80,921 88,153 80,016 Deferred: Federal 11,385 5,640 (4,269) State 2,706 (1,644) (180) Non-U.S. (18,553) (4,992) 7,463 (4,462) (996) 3,014 Provision for income taxes $ 76,459 $ 87,157 $ 83,030 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 35 % to pretax income as a result of the following (in thousands): 2017 2016 2015 Taxes computed at statutory U.S. rate $ 146,560 $ 153,848 $ 152,570 Increase (decrease) in income taxes resulting from: State income taxes, net of U.S. tax benefit (1,294) 2,573 348 Research and development credit (2,804) (5,138) (4,821) Tax effect of dividends 97,662 80,754 56,219 Change in valuation allowance 4,021 (5,882) (614) Effect of non-U.S. tax rates (97,141) (91,124) (87,721) Foreign tax credits (67,689) (44,835) (36,725) Stock-based compensation expense (3,107) (8,170) 3,158 Other 251 5,131 616 $ 76,459 $ 87,157 $ 83,030 The components of our deferred tax assets and liabilities at June 30, 2017 and June 30, 2016 , are as follows (in thousands): 2017 2016 Deferred tax assets: Employee liabilities $ 19,275 $ 15,514 Inventories 10,126 9,714 Provision for warranties 4,766 4,081 Provision for doubtful debts 2,967 3,708 Net operating loss carryforwards 36,117 33,881 Capital loss carryover 2,625 2,109 Property, plant and equipment 3,850 - Stock-based compensation expense 15,143 15,460 Other 5,805 4,655 100,674 89,122 Less valuation allowance (15,259) (10,807) Deferred tax assets 85,415 78,315 Deferred tax liabilities: Unrealized foreign exchange gains (735) (1,016) Property, plant and equipment - (4,383) Goodwill and other intangibles (36,999) (26,481) Deferred tax liabilities (37,734) (31,880) Net deferred tax asset $ 47,681 $ 46,435 We reported the net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2017 and June 30, 2016 , as follows (in thousands): 2017 2016 Non-current deferred tax asset 61,503 55,496 Non-current deferred tax liability (13,822) (9,061) Net deferred tax asset $ 47,681 $ 46,435 A s of June 30, 2017 , we had $114.6 million of U.S. federal and state net operating loss carryforwards and $90.4 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2018 or carry forward indefinitely. The valuation allowance at June 30, 2017 relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $12.1 million and capital loss and other items of $3.2 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized. A substantial portion of our manufacturing operations and administrative functions in Malaysia and Singapore operate under various tax holidays and tax incentive programs that will expire in whole or in part at various dates through June 30, 202 0. The end of c ertain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and tax incentive programs increased our net earnings by $19.5 million ( $0.14 per diluted share) for the year ended June 30, 2017 and $19.2 million ( $0.14 per diluted share) for the year ended June 30, 2016 . At June 30, 2017 , applicable U.S. federal income taxes and foreign withholding taxes have not been provided on the accumulated earnings of foreign subsidiaries that are expected to be permanently reinvested. The total amount of these undistributed earnings at June 30, 2017 amounted to approximately $1.5 billion. If these earnings had not been permanently reinvested, deferred taxes of approximately $358 million would have been recognized in the consolidated financial statements. In accounting for uncertainty in income taxes, we recognize a tax benefit in the financial statements for an uncertain tax position only if management’s assessment is that the position is “more likely than not” (that is, a likelihood greater than 50 percent) to be allowed by the tax jurisdiction based solely on the technical merits of the position. The term “tax position” refers to a position in a previously filed tax return or a position expected to be taken in a future tax return that is reflected in measuring current or deferred income tax assets and liabilities for annual periods. The Company recognizes interest and penalties related to unrecognized tax benefits within the income tax expense line in the accompanying consolidated statements of income. Accrued interest and penalties are included within the related tax liability line in the consolidated balance sheets. Based on all known facts and circumstances and current tax law, we believe the total amount of unrecognized tax benefits on June 30, 2017 , is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate . Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. We are currently under audit by the Australian Taxation Office for the tax years 2009 to 2013 . Although we do not believe that any material adjustments will result from this audit , the outcome of tax audits cannot be predicted with certainty. Any final assessment resulting from tax audits may result in material changes to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Segment Information | (15) Segment Information We predominantly operate in a single operating segment, which is the sleep and respiratory disorders sector of the medical device industry. Due to the acquisition of Brightree LLC in April 2016, our operations now include the supply of business management software and services to medical equipment and home health providers. However, these operations, both in terms of revenue and profit, are not material to our global operations and therefore have not been separately reported as a segment. Sales of device s for each of the years ended June 30, 2017, 2016 and 2015 , were $ 1,161.0 million , $ 1,064.2 million and $ 975.9 million, respectively. Sales of masks and other accessories for each of the years ended June 30, 2017, 2016 and 2015 , were $ 767.7 million , $745.6 million and $703.0 million, respectively. We allocate revenue to a geographic area based on where the products are shipped to or where the services are performed. Revenue information by geographic area for the years ended June 30, 2017, 2016 and 2015 , is summarized below (in thousands): Revenue from external sources for the years ended June 30, 2017 2016 2015 United States $ 1,229,196 $ 1,056,453 $ 904,342 Germany 153,283 163,257 184,245 Rest of the World 684,258 619,003 590,325 Total $ 2,066,737 $ 1,838,713 $ 1,678,912 Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2017, 2016 and 2015 , is summarized below (in thousands): Long lived assets at June 30, 2017 2016 2015 United States $ 150,677 $ 148,789 $ 140,344 Australia 183,159 185,978 197,609 Rest of the World 60,405 49,509 49,805 Total $ 394,241 $ 384,276 $ 387,758 |
Stock-Based Employee Compensati
Stock-Based Employee Compensation | 12 Months Ended |
Jun. 30, 2017 | |
Stock-Based Employee Compensation [Abstract] | |
Stock-Based Employee Compensation | (16) Stock-based Employee Compensation We measure the compensation expense of all stock-based awards at fair value on the grant date. We estimate the fair value of stock options and purchase rights granted under the ESPP using the Black-Scholes valuation model. The fair value of restricted stock units is equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to, during the vesting period. We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest. We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the following assumptions: Fiscal Year Ended June 30, 2017 2016 Stock options: Weighted average grant date fair value $ 10.89 $ 12.18 Weighted average risk-free interest rate 1.61% 1.66% Expected life in years 4.9 4.9 Dividend yield 2.02% - 2.29% 2.06% - 2.09% Expected volatility 25% 27% ESPP purchase rights: Weighted average grant date fair value $ 12.50 $ 13.61 Weighted average risk-free interest rate 0.5% 0.2% Expected life in years 6 months 6 months Dividend yield 1.92% - 2.27% 1.96% - 2.14% Expected volatility 23% 23% - 32% During the fiscal years ended June 30, 2017 and June 30, 2016 , we granted 243,000 and 208,000, performance restricted stock units (“PRSUs”), which contain a market condition, with the ultimate realizable number of PRSUs dependent on relative total stockholder return over a three -year period, up to a maximum amount to be issued under the award of 200 % of the original grant. The weighted average grant date fair value of PRSUs granted during the fiscal years 2017 and 2016 was estimated at $51.60 and $53.11 per PRSU, respectively, using a Monte-Carlo simulation valuation model. |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Jun. 30, 2017 | |
Employee Retirement Plans [Abstract] | |
Employee Retirement Plans | (17) Employee Retirement Plans We contribute to a number of employee retirement plans for the benefit of our employees. Details of the main plans are as follows: (1) Australia - We contribute to defined contribution plans for each employee resident in Australia. All Australian employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Employees may contribute additional funds to the plans. We contribute to the plans at the rate of approximately 9.5 % of the salaries of all Australian employees. Our total contributions to the plans for the years ended June 30, 2017, 2016 and 2015 , were $ 9.9 million, $ 9.1 million and $ 9.9 million, respectively. (2) United States - We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 4 % of the employee’s salary. Our total contributions to the plan were $ 4.3 million, $ 3.3 million and $ 3.2 million in fiscal 2017, 2016 and 2015 , respectively. (3) Singapore - We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 16% of the employee’s salary. Our total contributions to the plan were $1.7 million, $ 1.4 million and $1.2 million in fiscal 2017, 2016 and 2015, respectively. |
Commitments
Commitments | 12 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Commitments | (18) Commitments We lease buildings, motor vehicles and office equipment under operating leases. We expense rental charges for operating leases on a straight-line basis over the lease term taking into account rent concessions or holidays. Rent expenses under operating leases for the years ended June 30, 2017, 2016 and 2015 , were approximately $ 20.1 mill ion, $ 17.4 million and $ 17.0 million, respectively. At June 30, 2017 we had the following future minimum lease payments under non-cancelable operating leases (in thousands): Fiscal Years Operating Leases 2018 $ 19,232 2019 14,208 2020 7,912 2021 5,030 2022 4,009 Thereafter 7,852 Total minimum lease payments $ 58,243 |
Legal Actions And Contingencies
Legal Actions And Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Legal Actions And Contingencies | (19) Legal Actions and Contingencies 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. Contingent Obligations Under Recourse Provisions We use independent leasing companies to provide financing to certain customers for the purchase of our products. In some cases, we are contingently liable in the event of a customer default, to the leasing companies, within certain limits, for unpaid installment receivables transferred to the leasing companies. The gross amount of receivables sold, with recourse, during the fiscal years 2017 and 2016 , amounted to $ 99.3 million and $67.1 million, respectively. The maximum potential amount of contingent liability under these arrangements at June 30, 2017 and June 30, 2016 , were $27.5 million, and $12.9 million, respectively. The recourse liability recognized by us at June 30, 2017 and June 30, 2016 in relation to these arrangements was $1.4 million and $0.7 million, respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | (20) Fair Value Measurements In determining the fair value measurements of our financial assets and liabilities, we consider the principal and most advantageous market in which we transact and consider assumptions that market participants would use when pricing the financial asset or liability. We maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The hierarchies of inputs are as follows: • Level 1: Input prices quoted in an active market for identical financial assets or liabilities; • Level 2: Inputs other than prices quoted in Level 1, such as prices quoted for similar financial assets and liabilities in active markets, prices for identical assets and liabilities in markets that are not active or other inputs that are observable or can be corroborated by observable market data; and • Level 3: Input prices quoted that are significant to the fair value of the financial assets or liabilities which are not observable nor supported by an active market. The following table summarizes our financial assets and liabilities, as at June 30, 2017 and June 30, 2016 using the valuation input hierarchy (in thousands): Level 1 Level 2 Level 3 Total Balances at June 30, 2017 Foreign currency hedging instruments, net $ - $ 2,760 $ - $ 2,760 Business acquisition contingent consideration $ - $ - $ (1,580) $ (1,580) Balances at June 30, 2016 Foreign currency hedging instruments, net $ - $ 4,185 $ - $ 4,185 Business acquisition contingent consideration $ - $ - $ (10,450) $ (10,450) We determine the fair value of our financial assets and liabilities as follows: Foreign currency options – These financial instruments are valued using third-party valuation models based on market observable inputs, including interest rate curves, on-market spot currency prices, volatilities and credit risk. Contingent consideration – These liabilities include the fair value estimates of additional future payments that may be required for some of our previous business acquisitions based on the achievement of certain performance milestones. Each potential future payment is valued using the estimated probability of achieving each milestone, which is then discounted to present value. During the year ended June 30, 2017 we recognized a charge of $10.1 million representing additional contingent consideration associated with the acquisition of Curative Medical Technology Inc. (“Curative Medical”), following the achievement of performance milestones under the purchase agreement which exceeded our earlier expectations. The following is a reconciliation of changes in the fair value of contingent consideration during fiscal years ended June 30, 2017 and June 30, 2016 (in thousands): 2017 2016 Balance at the beginning of the period $ (10,450) $ (1,584) Acquisition date fair value of contingent consideration (1,580) (13,107) Changes in fair value included in operating income (10,076) 2,986 Payments 20,142 1,228 Foreign currency translation adjustments 384 27 Balance at the end of the period $ (1,580) $ (10,450) We did not have any significant non-financial assets or liabilities measured at fair value on June 30, 2017 or June 30, 2016 . |
Derivative Instruments And Hedg
Derivative Instruments And Hedging Activities | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities [Abstract] | |
Derivative Instruments And Hedging Activities | (21) Derivative Instruments and Hedging Activities We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through both our Australian and Singaporean manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased currency options and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed three years. The goal of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, Australian and Singapore dollars . Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. We have determined our hedge program to be a non-effective hedge as defined under the FASB issued authoritative guidance. All movements in the fair value of the foreign currency instruments are recorded within o ther income, net in our consolidated statements of income and through changes in our operating assets and liabilities within our consolidated statements of cash flows . We do not enter into financial instruments for trading or speculative purposes. We held foreign currency instruments with notional amounts totaling $ 568.2 million and $ 612.2 million at June 30, 2017 and June 30, 2016 , respectively, to hedge foreign currency fluctuations. These contracts mature at various dates prior to June 30, 201 9 . The following table summarizes the amount and location of our derivative financial instruments as of June 30, 2017 and June 30, 2016 (in thousands): June 30, 2017 June 30, 2016 Balance Sheet Caption Foreign currency hedging instruments $ 2,614 $ 2,346 Other assets - current Foreign currency hedging instruments 1,273 2,082 Other assets - non current Foreign currency hedging instruments (1,127) (243) Accrued expenses $ 2,760 $ 4,185 The following table summarizes the amount and location of gains (losses) associated with our derivative financial instruments and other foreign-currency-denominated transactions for the fiscal year s ended June 30, 2017 and June 30, 2016 , respectively (in thousands): Gain /(Loss) Recognized Income Statement Caption Year Ended June 30, 2017 2016 Foreign currency hedging instruments $ 1,812 $ (5,192) Other, net Other foreign-currency-denominated transactions 3,622 9,361 Other, net $ 5,434 $ 4,169 Other, net We are exposed to credit-related losses in the event of non-performance by counter parties to financial instruments. We minimize counterparty credit risk by entering into derivative transactions with major financial institutions and we do not expect material losses as a result of default by our counterparties. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Business Combinations | (22) Business Combinations Fiscal year ended June 30, 2017 On May 31, 2017 , we completed the acquisition of assets in Conduit Technology, LLC (“Conduit”), a provider of documentation and workflow solutions. On June 30, 2017 , we completed the acquisition of assets in AllCall Connect, LLC (“AllCall”), a provider of a live-calling solution for CPAP patient resupply. These acquisitions have been accounted for as business combinations using purchase accounting and are included in our consolidated financial statements from their respective acquisition dates. The acquisitions, individually and collectively, are not considered a material business combination and accordingly pro forma information is not provided. The acquisitions were funded through cash on-hand. We have not yet completed the purchase price allocations associated with the Conduit and AllCall acquisitions. We expect to complete our Conduit and AllCall purchase price allocations during the quarter ending September 30, 2017. We do not believe that the completion of this work will materially modify the preliminary purchase price allocation for Conduit or AllCall. The cost of the acquisitions was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of these acquisitions, which is deductible for tax purposes, mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. The fair values of assets acquired and liabilities assumed, and the estimated useful lives of intangible assets acquired are as follows (in thousands): Preliminary Intangible assets - useful life Current assets $ - Property, plant and equipment 69 Trade names 100 3 years Non-compete 520 1 - 3 years Developed technology 1,800 5 years Customer relationships 2,160 5 years Goodwill 2,000 Assets acquired $ 6,649 Current liabilities (60) Total liabilities assumed $ (60) Net assets acquired $ 6,589 During the year ended June 30, 2017 we did no t record material acquisition-related expenses. Fiscal year ended June 30, 2016 Brightree On April 4, 2016 we completed the acquisition of Brightree LLC (“Brightree”), a provider of cloud-based clinical and business management software for the post-acute care industry, for a total purchase consideration paid of $802 million. This acquisition has been accounted for as a business combination using purchase accounting and included in our consolidated financial statements from April 4, 2016. The acquisition was funded through cash on-hand, funds available from the existing revolving credit facility, an increase in the size of our revolving credit facility from $700 million to $1 billion and we also entered into a $300 million senior unsecured one -year term loan credit facility. We completed the purchase price allocation in relation to this acquisition during the quarter ended March 31, 2017. 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 these acquisitions, which is deductible for tax purposes, mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. The fair values of assets acquired and liabilities assumed, and the estimated useful lives of intangible assets acquired, are as follows (in thousands): Brightree Adjustments Final Intangible assets - useful life Current assets $ 13,868 1,442 15,310 Property, plant and equipment 1,045 - 1,045 Trade names 28,700 - 28,700 10 years In-process research and development 4,100 - 4,100 n/a Developed technology 114,700 - 114,700 5 to 6 years Customer relationships 51,000 - 51,000 10 to 15 years Goodwill 602,090 906 602,996 Assets acquired $ 815,503 $ 2,348 $ 817,851 Current liabilities (9,399) - (9,399) Deferred revenue (4,571) - (4,571) Deferred tax liabilities - - - Total liabilities assumed $ (13,970) $ - $ (13,970) Net assets acquired $ 801,533 $ 2,348 $ 803,881 The acquisition is considered a material business combination and accordingly unaudited pro forma information presented below for the fiscal years ended June 30, 2016 and 2015, include the effects of pro forma adjustments as if the acquisition of Brightree occurred on July 1, 2014. The pro forma results were prepared using the acquisition method of accounting and combine our historical results and Brightree’s for the fiscal years ended June 30, 2016 and 2015, including the effects of the business combination, primarily amortization expense related to the fair value of identifiable intangible assets acquired, interest expense associated with the financing obtained by us in connection with the acquisition, and the elimination of incurred acquisition-related costs. The pro forma financial information presented below is not necessarily indicative of the results of operations that would have been achieved if the acquisition occurred at the beginning of the earliest period presented, nor is it intended to be a projection of future results. Unaudited Proforma Consolidated Results Years Ended June 30, (In thousands, except per share information) 2016 2015 Revenue $ 1,931,257 $ 1,780,727 Net income attributable to stockholders $ 354,565 $ 347,563 Basic earnings per share $ 2.53 $ 2.47 Diluted earnings per share $ 2.54 $ 2.44 The unaudited pro forma consolidated results for the years ended June 30, 2016, and 2015 reflect primarily the following pro forma pre-tax adjustments: · Addition of net amortization expense related to the fair value of identifiable intangible assets acquired of $19.9 million and $26.2 million for the years ended June 30, 2016 and June 30, 2015, respectively. · Addition of net interest expense associated with debt that was issued to finance the acquisition of $16.1 million and $16.5 million for the years ended June 30, 2016 and June 30, 2015, respectively. · Elimination of pre-tax acquisition-related costs totaling $4.1 million from the results for the year ended June 30, 2016. · Addition of net income tax expense of $1.3 million for the year ended June 30, 2016 and elimination of net income tax expense of $3.1 million for the year ended June 30, 2015, respectively. Although Brightree and its U.S. subsidiaries had historically elected to be treated as a partnership for U.S. Federal and state income tax purposes, and therefore, no income tax expense or benefit was previously recognized by Brightree in the U.S., the pro forma financial information assumes that Brightree’s historical income tax expense is based on a U.S. statutory rate of 37% . Brightree’s historical income tax expense was a benefit of $1.2 million and $0.4 million for the twelve months ended June 30, 2016 and 2015, respectively. The effective tax rate of the combined company could be significantly different depending on post-acquisition activities, such as the tax treatment applicable to each entity and the geographical mix of taxable income affecting state and foreign taxes, among other factors. Other Acquisitions On October 2, 2015 , we completed the acquisition of 100% of the shares in Curative Medical Technology Inc., a leading provider of non-invasive ventilation and sleep-disordered breathing medical devices and accessories in China. Curative Medical has its manufacturing base in Suzhou, China, offices in Beijing, Germany and the United States, and a distributor network throughout China and in other select markets. On November 6, 2015 , we completed the acquisition of 100% of the shares in Maribo Medico A/S, a distributor of medical equipment for treating, diagnosing, and managing sleep-disordered breathing and other respiratory disorders in Denmark and the Nordics. On November 30, 2015 , we completed the acquisition of 100% of the shares in Bennett Precision Tooling Pty Ltd, an Australian based company that designs and manufactures tools specializing in applications for Liquid Silicon Rubber. On January 29, 2016 , we completed the acquisition of 100% of the shares in Inova Labs Inc. (“Inova Labs”), a medical device company specializing in the development and commercialization of innovative oxygen therapy products. These acquisitions have been accounted for as business combinations using purchase accounting and are included in our consolidated financial statements from their respective acquisition dates. The acquisitions, individually and collectively, are not considered a material business combination and accordingly pro forma information is not provided. The acquisitions were funded through cash on-hand and by drawing on our existing credit facility. We have completed the purchase price allocation in relation to all these acquisitions. The cost of the acquisitions was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of these acquisitions, which is not deductible for tax purposes, mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. The fair values of assets acquired and liabilities assumed, and the estimated useful lives of intangible assets acquired are as follows (in thousands): Preliminary Adjustments Final Intangible assets - useful life Current assets $ 49,370 3,184 52,554 Property, plant and equipment 5,294 - 5,294 Trade names 17,400 - 17,400 7 years Non-compete 1,400 - 1,400 5 years Developed technology 20,515 585 21,100 5 years Customer relationships 37,303 600 37,903 5 to 8 years Goodwill 194,216 (3,551) 190,665 Assets acquired $ 325,498 $ 818 $ 326,316 Current liabilities (21,147) (370) (21,517) Debt assumed (21,201) - (21,201) Deferred revenue (4,283) - (4,283) Deferred tax liabilities (19,207) (448) (19,655) Total liabilities assumed $ (65,838) $ (818) $ (66,656) Net assets acquired $ 259,660 $ - $ 259,660 During the year ended June 30, 2016 , we recorded $ 5.3 million in acquisition-related expenses. |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Jun. 30, 2017 | |
Restructuring Expenses [Abstract] | |
Restructuring Expenses | (23) Restructuring Expenses During the year ended June 30, 2017 , we incurred restructuring expenses of $ 12.4 million associated with the reorganization of our Paris manufacturing activities and German research and development activities. The restructuring expenses consisted primarily of severance payments to employees, site closure costs and associated project cancellation costs. We recorded the full amount of $12.4 million during the year ended June 30, 2017 , within our operating expenses and separately disclosed the amount as restructuring expenses and had $6.5 million remaining in our employee related costs accrual at year end. During the year ended June 30, 2016, we incurred restructuring expenses of $6.9 million associated with rationalizing our European research & development operations and manufacturing facilities. The restructur ing expenses consisted primarily of severance payments and an asset write-down of a legacy manufacturing facility. We recorded and paid the full amount of $6. 9 million during the year ended June 30, 2016 , within our operating expenses and separately disclosed the amount as restructuring expenses. We did not recognize any restructuring expense for the year ended June 30, 2015. |
Litigation Settlement Expenses
Litigation Settlement Expenses | 12 Months Ended |
Jun. 30, 2017 | |
Litigation Settlement Expenses [Abstract] | |
Litigation Settlement Expenses | (24 ) Litigation Settlement Expenses During the fiscal year ended June 30, 2017 we recognized litigation settlement expenses of $8.5 million associated with an agreement with Chinese manufacturer, BMC Medical, and its U.S. distributor, 3B, to settle all outstanding disputes. The material terms of the settlement were: · ResMed paid 3B the amount of $8.5 million to settle all claims in the Florida case, including claims against our three customers. · We agreed that for five years from the date of the agreement, we would not initiate legal suit against BMC for patent infringement for selling their range of devices and masks that were the subject of the current dispute. BMC agreed to pay us royalties on the sale of those products in the United States. · Mutual release and dismissal of all litigation current at the time of settlement, worldwide, including all validity challenges. It was agreed that neither party will initiate legal suit against the other for a period of five years without a 90 day meet and confer process. |
Schedule II Valuation And Quali
Schedule II Valuation And Qualifying Accounts And Reserves | 12 Months Ended |
Jun. 30, 2017 | |
Schedule II Valuation And Qualifying Accounts And Reserves [Abstract] | |
Schedule II Valuation And Qualifying Accounts And Reserves | Schedule II RESMED INC. AND SUBSIDIARIES V ALUATION AND Q UALIFYING A CCOUNTS AND R ESERVES Y EARS E NDED June 30, 2017, 2016 and 2015 (in thousands) Balance at Beginning of Period Charged to costs and expenses Other (deductions) Balance at end of period Year ended June 30, 2017 Applied against asset account Allowance for doubtful accounts $12,555 4,269 (5,674) $11,150 Year ended June 30, 2016 Applied against asset account Allowance for doubtful accounts $12,276 3,383 (3,104) $12,555 Year ended June 30, 2015 Applied against asset account Allowance for doubtful accounts $10,971 3,559 (2,254) $12,276 See accompanying report of independent registered public accounting firm. |
Summary Of Significant Accoun33
Summary Of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2017 | |
Summary Of Significant Accounting Policies [Abstract] | |
Basis Of Consolidation | Basis of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant inter-company transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from management’s estimates. |
Revenue Recognition | Revenue Recognition We generally record revenue on product sales at the time of shipment, which is when title transfers to the customer. We do not record revenue on product sales which require customer acceptance until we receive acceptance. We initially defer service revenue received in advance from service contracts and recognize that deferred revenue ratably over the life of the service contract. We initially defer revenue we receive in advance from rental unit contracts and recognize that deferred revenue ratably over the life of the rental contract. Otherwise, we recognize revenue from rental unit contracts ratably over the life of the rental contract. We include in revenue freight charges we bill to customers. We charge all freight-related expenses to cost of sales. Taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, are excluded from revenue. We do not recognize revenues to the extent that we offer a right of return or other recourse with respect to the sale of our products, other than returns for product defects or other warranty claims, nor do we recognize revenues if we offer variable sale prices for subsequent events or activities. However, as part of our sales processes we may provide upfront discounts for large orders, one-time special pricing to support new product introductions, sales rebates for centralized purchasing entities or price-breaks for regular order volumes. We record the costs of all such programs as an adjustment to revenue at the time the related revenue is recognized. Our products are predominantly therapy-based equipment and require no installation. Therefore, we have no installation obligations. For multiple-element arrangements, we allocate arrangement consideration to the deliverables by use of the relative selling price method. The selling price used for each deliverable is based on vendor–specific objective evidence. We also generate revenue from time-based licensing of our software and associated services. In most instances, revenue is generated under sales agreements with multiple elements comprising subscription fees and professional services, which typically have contract terms of one to three years. We evaluate each element in these multiple-element arrangements to determine whether they represent a separate unit of accounting and recognize each element as the services are performed. |
Cash And Cash Equivalents | Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. Our cash and cash equivalents balance at June 30, 2017 , include $276.5 million in cash which is subject to notice periods of up to 90 days. The se cash balances earn interest rates above normal term deposit rates otherwise available and are held at highly rated financial institutions. |
Inventories | Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). |
Property, Plant And Equipment | Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two to ten years except for buildings which are depreciated over an estimated useful life of 40 years and leasehold improvements, which we amortize over the lease term. We charge maintenance and repairs to expense as we incur them. |
Intangible Assets | Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally five years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two to fifteen years. We evaluate the recoverability of intangible assets periodically and take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists. We have not identified any impairment of intangible assets during any of the periods presented. |
Goodwill | Goodwill We conducted our annual review for goodwill impairment during the final quarter of the year ended June 30, 2017 . Our goodwill impairment tests are performed at our reporting unit level which is one level below our operating segment. Fair value is determined based on estimated discounted cash flows. Our goodwill impairment review involved the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. Factors considered included, but were not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 - Compare the fair value for each reporting unit to its carrying value, including goodwill. For each reporting unit where the carrying value, including goodwill, exceeds the reporting unit’s fair value, move on to Step 2. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. Step 2 - Allocate the fair value of the reporting unit to its identifiable tangible and non-goodwill intangible assets and liabilities. This will derive an implied fair value for the goodwill. Then, compare the implied fair value of the reporting unit’s goodwill with the carrying amount of the reporting unit’s goodwill. If the carrying amount of the reporting unit’s goodwill is greater than the implied fair value of its goodwill, an impairment loss must be recognized for the excess. The results of our review indicated that no impaired goodwill exists as the fair value for each reporting unit exceeded its carrying value. |
Foreign Currency | Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates, but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. |
Research And Development | Research and Development We record all research and development expenses in the period we incur them. |
Financial Instruments | Financial Instruments The carrying value of financial instruments, such as cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. We do not hold or issue financial instruments for trading purposes. The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. |
Foreign Exchange Risk Management | Foreign Exchange Risk Management We enter into various types of foreign exchange contracts in managing our foreign exchange risk, including derivative financial instruments encompassing forward exchange contracts and foreign currency options. The purpose of our foreign currency hedging activities is to protect us from adverse exchange rate fluctuations with respect to net cash movements resulting from the sales of products to foreign customers and Australian and Singapore manufacturing activities. We enter into foreign exchange contracts to hedge anticipated sales and manufacturing costs, principally denominated in Australian and Singapore dollars, and Euros. The terms of such foreign exchange contracts generally do not exceed three years. We have determined our hedge program to be a non-effective hedge as defined. We record the foreign currency derivatives portfolio at fair value and include it in other assets and accrued expenses in our consolidated balance sheets. We do not offset the fair value amounts recognized for foreign currency derivatives. We classify purchases of foreign currency derivatives and proceeds received from the exercise of foreign currency derivatives as an investing activity within our consolidated statements of cash flows. We record all movements in the fair value of the foreign currency derivatives within other income, net in our consolidated statements of income. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. |
Provision For Warranty | Provision for Warranty We provide for the estimated cost of product warranties at the time the related revenue is recognized. We determine the amount of this provision by using a financial model, which takes into consideration actual historical expenses and potential risks associated with our different products. We use this financial model to calculate the future probable expenses related to warranty and the required level of the warranty provision. Although we engage in product improvement programs and processes, our warranty obligation is affected by product failure rates and costs incurred to correct those product failures. Should actual product failure rates or estimated costs to repair those product failures differ from our estimates, we would be required to revise our estimated warranty provision. |
Allowance For Doubtful Accounts | Allowance for Doubtful Accounts We maintain an allowance for doubtful accounts for estimated losses resulting from the inability of our customers to make required payments, which results in bad debt expense. We determine the adequacy of this allowance by periodically evaluating individual customer receivables, considering a customer’s financial condition, credit history and current economic conditions. We are also contingently liable, within certain limits, in the event of a customer default, to independent leasing companies in connection with customer leasing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. |
Impairment Of Long-Lived Assets | Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2017 and 2015, but during the fiscal year ended June 30, 2016 , we recognized $ 2.8 million of impairment charges. |
Contingencies | Contingencies We record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule Of Basic And Diluted Earnings Per Share | 2017 2016 2015 Numerator: Net Income, used in calculating diluted earnings per share $ 342,284 $ 352,409 $ 352,886 Denominator: Basic weighted-average common shares outstanding 141,360 140,242 140,468 Effect of dilutive securities: Stock options and restricted stock units 1,093 1,427 2,219 Diluted weighted average shares 142,453 141,669 142,687 Basic earnings per share $ 2.42 $ 2.51 $ 2.51 Diluted earnings per share $ 2.40 $ 2.49 $ 2.47 |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Inventories [Abstract] | |
Schedule Of Inventories | 2017 2016 Raw materials $ 75,658 $ 67,121 Work in progress 4,297 3,939 Finished goods 188,364 153,396 Total inventories $ 268,319 $ 224,456 |
Property, Plant And Equipment36
Property, Plant And Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant And Equipment, Net [Abstract] | |
Components Of Property, Plant And Equipment | 2017 2016 Machinery and equipment $ 230,632 $ 197,485 Computer equipment 154,032 154,105 Furniture and fixtures 47,074 40,776 Vehicles 7,667 9,060 Clinical, demonstration and rental equipment 86,024 79,641 Leasehold improvements 35,932 33,795 Land 55,311 54,338 Buildings 233,868 229,502 850,540 798,702 Accumulated depreciation and amortization (456,299) (414,426) Property, plant and equipment, net $ 394,241 $ 384,276 |
Goodwill And Other Intangible37
Goodwill And Other Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill And Other Intangible Assets, Net [Abstract] | |
Schedule Of Changes In Carrying Amount Of Goodwill | 2017 2016 Balance at the beginning of the period $ 1,059,245 $ 264,261 Business acquisitions (note 22) (645) 796,306 Foreign currency translation adjustments 6,274 (1,322) Balance at the end of the period $ 1,064,874 $ 1,059,245 |
Schedule Of Other Intangible Assets | 2017 2016 Developed/core product technology $ 206,258 $ 202,050 Accumulated amortization (93,079) (63,825) Developed/core product technology, net 113,179 138,225 Trade names 48,768 47,897 Accumulated amortization (10,894) (3,832) Trade names, net 37,874 44,065 Non-compete agreements 3,660 3,089 Accumulated amortization (2,236) (1,899) Non-compete agreements, net 1,424 1,190 Customer relationships 122,458 118,528 Accumulated amortization (40,050) (26,783) Customer relationships, net 82,408 91,745 In-process research and development 4,100 4,100 In-process research and development, net 4,100 4,100 Patents 85,780 74,034 Accumulated amortization (62,965) (53,551) Patents, net 22,815 20,483 Total other intangibles, net $ 261,800 $ 299,808 |
Schedule Of Amortization Expense Related To Identifiable Intangible Assets, Including Patents | Fiscal Year Amortization expense 2018 $ 53,761 2019 51,705 2020 46,610 2021 38,623 2022 29,397 |
Cost-Method Investments (Tables
Cost-Method Investments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Cost-Method Investments [Abstract] | |
Schedule Of Reconciliation Of Changes In Cost-Method Investments | 2017 2016 Balance at the beginning of the period $ 33,815 $ 25,600 Investments 6,464 8,965 Impairment of investments (1,955) (750) Balance at the end of the period $ 38,324 $ 33,815 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Accrued Expenses [Abstract] | |
Schedule Of Accrued Expenses | 2017 2016 Product warranties $ 19,558 $ 15,043 Consulting and professional fees 10,506 11,948 Value added taxes and other taxes due 18,228 14,769 Employee related costs 100,410 83,407 Marketing and promotional programs 2,661 2,401 Business acquisition contingent consideration 651 10,450 Hedging instruments 460 243 Liability on receivables sold with recourse (note 19) 18,068 4,615 Accrued interest 1,050 1,271 Other 14,703 12,658 $ 186,295 $ 156,805 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Product Warranties [Abstract] | |
Schedule Of Changes In Liability For Warranty Costs | 2017 2016 Balance at the beginning of the period $ 15,043 $ 9,823 Fair value of warranty obligations acquired on business combination - 971 Warranty accruals for the period 19,805 15,014 Warranty costs incurred for the period (15,489) (10,667) Foreign currency translation adjustments 199 (98) Balance at the end of the period $ 19,558 $ 15,043 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Debt [Abstract] | |
Schedule Of Debt | June 30, 2017 June 30, 2016 Short-term debt $ - $ 300,000 Deferred borrowing costs - (562) Short-term debt, net - 299,438 Long-term debt 1,080,000 875,000 Deferred borrowing costs (1,389) (1,668) Long-term debt, net 1,078,611 873,332 Total debt $ 1,078,611 $ 1,172,770 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Stockholders' Equity [Abstract] | |
Schedule Of Option Activity | Weighted Average Exercise Price Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,924,229 $ 38.70 3.2 Granted 313,255 58.42 Exercised* (741,911) 30.12 Forfeited - - Outstanding at end of period 1,495,573 $ 47.09 3.9 Exercise price of granted options $ 58.42 Options exercisable at end of period 968,023 $ 41.32 * Includes 1,508 shares netted for tax. |
Schedule Of Activity Of Restricted Stock Units | Weighted Average Grant-Date Fair Value Weighted Average Remaining Contractual Term in Years Outstanding at beginning of period 1,861,510 $ 50.52 1.4 Granted 864,562 54.57 Vested* (584,517) 47.77 Expired (178,376) 50.08 Forfeited (56,784) 50.74 Outstanding at end of period 1,906,395 $ 53.26 1.6 * Includes 137,932 shares netted for tax. |
Schedule Of Total Stock-Based Compensation Costs Incurred And Associated Tax Benefit Recognized | 2017 2016 2015 Cost of sales - capitalized as part of inventory $ 2,877 $ 2,731 $ 2,605 Selling, general and administrative expenses 37,096 36,994 38,755 Research and development expenses 5,952 6,683 6,495 Stock-based compensation costs 45,925 46,408 47,855 Tax benefit* (20,100) (25,020) (14,100) Stock-based compensation costs, net of tax benefit $ 25,825 $ 21,388 $ 33,755 * Includes an additional tax benefit of $6 .1 and $11.2 million for the years ended June 30, 2017 and June 30, 2016, respectively, associated with the early adoption of ASU 2016-09, “Improvements to Employee Share-Based Payment Accounting”, discussed in Note 3 - New Accounting Pronouncements. |
Other, Net (Tables)
Other, Net (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Other, Net [Abstract] | |
Schedule Of Other Net Income | 2017 2016 2015 Gain (loss) on foreign currency transactions and hedging, net $ 5,434 $ 4,169 $ 5,068 Impairment of cost method investments (1,955) (750) - Other 617 1,541 1,182 $ 4,096 $ 4,960 $ 6,250 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Taxes [Abstract] | |
Schedule Of Income Before Income Taxes Under The Jurisdictions | 2017 2016 2015 U.S. $ (4,985) $ 1,785 $ 11,431 Non-U.S. 423,728 437,781 424,485 $ 418,743 $ 439,566 $ 435,916 |
Schedule Of Provision For Income Taxes | 2017 2016 2015 Current: Federal $ 16,468 $ 24,325 $ 28,429 State (1,159) 5,805 695 Non-U.S. 65,612 58,023 50,892 80,921 88,153 80,016 Deferred: Federal 11,385 5,640 (4,269) State 2,706 (1,644) (180) Non-U.S. (18,553) (4,992) 7,463 (4,462) (996) 3,014 Provision for income taxes $ 76,459 $ 87,157 $ 83,030 |
Schedule Of Provision For Income Tax Differ From The Amount Of Income Tax | 2017 2016 2015 Taxes computed at statutory U.S. rate $ 146,560 $ 153,848 $ 152,570 Increase (decrease) in income taxes resulting from: State income taxes, net of U.S. tax benefit (1,294) 2,573 348 Research and development credit (2,804) (5,138) (4,821) Tax effect of dividends 97,662 80,754 56,219 Change in valuation allowance 4,021 (5,882) (614) Effect of non-U.S. tax rates (97,141) (91,124) (87,721) Foreign tax credits (67,689) (44,835) (36,725) Stock-based compensation expense (3,107) (8,170) 3,158 Other 251 5,131 616 $ 76,459 $ 87,157 $ 83,030 |
Components Of Deferred Tax Assets And Liabilities | 2017 2016 Deferred tax assets: Employee liabilities $ 19,275 $ 15,514 Inventories 10,126 9,714 Provision for warranties 4,766 4,081 Provision for doubtful debts 2,967 3,708 Net operating loss carryforwards 36,117 33,881 Capital loss carryover 2,625 2,109 Property, plant and equipment 3,850 - Stock-based compensation expense 15,143 15,460 Other 5,805 4,655 100,674 89,122 Less valuation allowance (15,259) (10,807) Deferred tax assets 85,415 78,315 Deferred tax liabilities: Unrealized foreign exchange gains (735) (1,016) Property, plant and equipment - (4,383) Goodwill and other intangibles (36,999) (26,481) Deferred tax liabilities (37,734) (31,880) Net deferred tax asset $ 47,681 $ 46,435 |
Schedule Of Deferred Tax Assets And Liabilities Classified As Current And Non-Current | 2017 2016 Non-current deferred tax asset 61,503 55,496 Non-current deferred tax liability (13,822) (9,061) Net deferred tax asset $ 47,681 $ 46,435 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Information [Abstract] | |
Schedule Of Revenue By Geographic Area | Revenue from external sources for the years ended June 30, 2017 2016 2015 United States $ 1,229,196 $ 1,056,453 $ 904,342 Germany 153,283 163,257 184,245 Rest of the World 684,258 619,003 590,325 Total $ 2,066,737 $ 1,838,713 $ 1,678,912 |
Schedule Of Long-Lived Assets By Geographic Areas | Long lived assets at June 30, 2017 2016 2015 United States $ 150,677 $ 148,789 $ 140,344 Australia 183,159 185,978 197,609 Rest of the World 60,405 49,509 49,805 Total $ 394,241 $ 384,276 $ 387,758 |
Stock-Based Employee Compensa46
Stock-Based Employee Compensation (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Stock-Based Employee Compensation [Abstract] | |
Schedule Of Assumptions For Fair Value Of Stock Option Plans And Purchase Rights Granted | Fiscal Year Ended June 30, 2017 2016 Stock options: Weighted average grant date fair value $ 10.89 $ 12.18 Weighted average risk-free interest rate 1.61% 1.66% Expected life in years 4.9 4.9 Dividend yield 2.02% - 2.29% 2.06% - 2.09% Expected volatility 25% 27% ESPP purchase rights: Weighted average grant date fair value $ 12.50 $ 13.61 Weighted average risk-free interest rate 0.5% 0.2% Expected life in years 6 months 6 months Dividend yield 1.92% - 2.27% 1.96% - 2.14% Expected volatility 23% 23% - 32% |
Commitments (Tables)
Commitments (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments And Contingencies [Abstract] | |
Schedule Of Future Minimum Lease Payments | Fiscal Years Operating Leases 2018 $ 19,232 2019 14,208 2020 7,912 2021 5,030 2022 4,009 Thereafter 7,852 Total minimum lease payments $ 58,243 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value Measurements [Abstract] | |
Summary Of Financial Assets And Liabilities | Level 1 Level 2 Level 3 Total Balances at June 30, 2017 Foreign currency hedging instruments, net $ - $ 2,760 $ - $ 2,760 Business acquisition contingent consideration $ - $ - $ (1,580) $ (1,580) Balances at June 30, 2016 Foreign currency hedging instruments, net $ - $ 4,185 $ - $ 4,185 Business acquisition contingent consideration $ - $ - $ (10,450) $ (10,450) |
Reconciliation For Fair Value Measurements Using Significant Unobservable Inputs | 2017 2016 Balance at the beginning of the period $ (10,450) $ (1,584) Acquisition date fair value of contingent consideration (1,580) (13,107) Changes in fair value included in operating income (10,076) 2,986 Payments 20,142 1,228 Foreign currency translation adjustments 384 27 Balance at the end of the period $ (1,580) $ (10,450) |
Derivative Instruments And He49
Derivative Instruments And Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments And Hedging Activities [Abstract] | |
Summary Of Amount And Location Of Derivative Financial Instruments | June 30, 2017 June 30, 2016 Balance Sheet Caption Foreign currency hedging instruments $ 2,614 $ 2,346 Other assets - current Foreign currency hedging instruments 1,273 2,082 Other assets - non current Foreign currency hedging instruments (1,127) (243) Accrued expenses $ 2,760 $ 4,185 |
Summary Of Gains (Losses) Associated With Derivative Financial Instruments | Gain /(Loss) Recognized Income Statement Caption Year Ended June 30, 2017 2016 Foreign currency hedging instruments $ 1,812 $ (5,192) Other, net Other foreign-currency-denominated transactions 3,622 9,361 Other, net $ 5,434 $ 4,169 Other, net |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Conduit And AllCall [Member] | |
Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives | Preliminary Intangible assets - useful life Current assets $ - Property, plant and equipment 69 Trade names 100 3 years Non-compete 520 1 - 3 years Developed technology 1,800 5 years Customer relationships 2,160 5 years Goodwill 2,000 Assets acquired $ 6,649 Current liabilities (60) Total liabilities assumed $ (60) Net assets acquired $ 6,589 |
Brightree LLC [Member] | |
Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives | Brightree Adjustments Final Intangible assets - useful life Current assets $ 13,868 1,442 15,310 Property, plant and equipment 1,045 - 1,045 Trade names 28,700 - 28,700 10 years In-process research and development 4,100 - 4,100 n/a Developed technology 114,700 - 114,700 5 to 6 years Customer relationships 51,000 - 51,000 10 to 15 years Goodwill 602,090 906 602,996 Assets acquired $ 815,503 $ 2,348 $ 817,851 Current liabilities (9,399) - (9,399) Deferred revenue (4,571) - (4,571) Deferred tax liabilities - - - Total liabilities assumed $ (13,970) $ - $ (13,970) Net assets acquired $ 801,533 $ 2,348 $ 803,881 |
Pro Forma Information | Unaudited Proforma Consolidated Results Years Ended June 30, (In thousands, except per share information) 2016 2015 Revenue $ 1,931,257 $ 1,780,727 Net income attributable to stockholders $ 354,565 $ 347,563 Basic earnings per share $ 2.53 $ 2.47 Diluted earnings per share $ 2.54 $ 2.44 |
Other Acquisitions [Member] | |
Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives | Preliminary Adjustments Final Intangible assets - useful life Current assets $ 49,370 3,184 52,554 Property, plant and equipment 5,294 - 5,294 Trade names 17,400 - 17,400 7 years Non-compete 1,400 - 1,400 5 years Developed technology 20,515 585 21,100 5 years Customer relationships 37,303 600 37,903 5 to 8 years Goodwill 194,216 (3,551) 190,665 Assets acquired $ 325,498 $ 818 $ 326,316 Current liabilities (21,147) (370) (21,517) Debt assumed (21,201) - (21,201) Deferred revenue (4,283) - (4,283) Deferred tax liabilities (19,207) (448) (19,655) Total liabilities assumed $ (65,838) $ (818) $ (66,656) Net assets acquired $ 259,660 $ - $ 259,660 |
Summary Of Significant Accoun51
Summary Of Significant Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Time deposits | $ 276,500 | ||
Impairment of long-lived assets | $ 2,815 | ||
Impairment of goodwill | $ 0 | ||
Patents [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 5 years | ||
Minimum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Contract term under revenue recognition | 1 year | ||
Estimated useful life of property, plant and equipment, years | 2 years | ||
Intangible assets, estimated useful life | 2 years | ||
Maximum [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Contract term under revenue recognition | 3 years | ||
Contract term under foreign exchange | 3 years | ||
Estimated useful life of property, plant and equipment, years | 10 years | ||
Intangible assets, estimated useful life | 15 years | ||
Buildings [Member] | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property, plant and equipment, years | 40 years |
New Accounting Pronouncements (
New Accounting Pronouncements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | $ 42,066 | $ 38,161 | ||
Short-term debt | 299,438 | |||
Long-term debt | 1,078,611 | 873,332 | ||
Additional income tax benefits as an increase to earnings | [1] | 20,100 | 25,020 | $ 14,100 |
Additional income tax benefits as an increase to operating cash flows | $ 24,959 | |||
ASU 2015-03 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Other assets | 2,200 | |||
Short-term debt | 600 | |||
Long-term debt | 1,600 | |||
ASU 2016-09 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Additional income tax benefits as an increase to earnings | 6,100 | 11,200 | ||
Additional income tax benefits as an increase to operating cash flows | $ 9,200 | $ 14,500 | ||
[1] | Includes an additional tax benefit of $6.1 and $11.2 million for the years ended June 30, 2017 and June 30, 2016, respectively, associated with the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting", discussed in Note 3 - New Accounting Pronouncements. |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | |||
Stock options and restricted stock units not included in the computation of diluted earnings per share | 173,000 | 297,000 | 62,000 |
Earnings Per Share (Schedule Of
Earnings Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Numerator: | |||
Net Income, used in calculating diluted earnings per share | $ 342,284 | $ 352,409 | $ 352,886 |
Denominator: | |||
Basic weighted-average common shares outstanding | 141,360 | 140,242 | 140,468 |
Effect of dilutive securities: | |||
Stock options and restricted stock units | 1,093 | 1,427 | 2,219 |
Diluted weighted average shares | 142,453 | 141,669 | 142,687 |
Basic earnings per share | $ 2.42 | $ 2.51 | $ 2.51 |
Diluted earnings per share | $ 2.40 | $ 2.49 | $ 2.47 |
Inventories (Schedule Of Invent
Inventories (Schedule Of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Inventories [Abstract] | ||
Raw materials | $ 75,658 | $ 67,121 |
Work in progress | 4,297 | 3,939 |
Finished goods | 188,364 | 153,396 |
Total inventories | $ 268,319 | $ 224,456 |
Property, Plant And Equipment56
Property, Plant And Equipment, Net (Components Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 850,540 | $ 798,702 |
Accumulated depreciation and amortization | (456,299) | (414,426) |
Property, plant and equipment, net | 394,241 | 384,276 |
Machinery And Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 230,632 | 197,485 |
Computer Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 154,032 | 154,105 |
Furniture And Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 47,074 | 40,776 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,667 | 9,060 |
Clinical, Demonstration And Rental Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 86,024 | 79,641 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 35,932 | 33,795 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 55,311 | 54,338 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 233,868 | $ 229,502 |
Goodwill And Other Intangible57
Goodwill And Other Intangible Assets, Net (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Goodwill [Line Items] | |
Impairment of goodwill | $ 0 |
Amortization expense related to identifiable intangible assets | $ 46,600 |
Minimum [Member] | |
Goodwill [Line Items] | |
Intangible assets, estimated useful life | 2 years |
Maximum [Member] | |
Goodwill [Line Items] | |
Intangible assets, estimated useful life | 15 years |
Goodwill And Other Intangible58
Goodwill And Other Intangible Assets, Net (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill And Other Intangible Assets, Net [Abstract] | |||
Balance at the beginning of the period | $ 1,059,245 | $ 264,261 | |
Business acquisition (note 22) | (645) | 796,306 | $ 20,947 |
Foreign currency translation adjustments | 6,274 | (1,322) | |
Balance at the end of the period | $ 1,064,874 | $ 1,059,245 | $ 264,261 |
Goodwill And Other Intangible59
Goodwill And Other Intangible Assets, Net (Schedule Of Other Intangible Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, net | $ 261,800 | $ 299,808 |
Developed/Core Product Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 206,258 | 202,050 |
Accumulated amortization | (93,079) | (63,825) |
Total other intangibles, net | 113,179 | 138,225 |
Trade Names [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 48,768 | 47,897 |
Accumulated amortization | (10,894) | (3,832) |
Total other intangibles, net | 37,874 | 44,065 |
Non Compete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 3,660 | 3,089 |
Accumulated amortization | (2,236) | (1,899) |
Total other intangibles, net | 1,424 | 1,190 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 122,458 | 118,528 |
Accumulated amortization | (40,050) | (26,783) |
Total other intangibles, net | 82,408 | 91,745 |
In-Process Research And Development [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 4,100 | 4,100 |
Total other intangibles, net | 4,100 | 4,100 |
Patents [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 85,780 | 74,034 |
Accumulated amortization | (62,965) | (53,551) |
Total other intangibles, net | $ 22,815 | $ 20,483 |
Goodwill And Other Intangible60
Goodwill And Other Intangible Assets, Net (Schedule Of Amortization Expense Related To Identifiable Intangible Assets, Including Patents) (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Goodwill And Other Intangible Assets, Net [Abstract] | |
2,018 | $ 53,761 |
2,019 | 51,705 |
2,020 | 46,610 |
2,021 | 38,623 |
2,022 | $ 29,397 |
Cost-Method Investments (Narrat
Cost-Method Investments (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cost-Method Investments [Abstract] | |||
Aggregate carrying amount of cost-method investments | $ 38,324 | $ 33,815 | $ 25,600 |
Impairment losses related to cost-method investments | $ 1,955 | $ 750 |
Cost-Method Investments (Schedu
Cost-Method Investments (Schedule Of Reconciliation Of Changes In Cost-Method Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Cost-Method Investments [Abstract] | |||
Balance at the beginning of the period | $ 33,815 | $ 25,600 | |
Investments | 6,464 | 8,965 | $ 10,750 |
Impairment of investments | (1,955) | (750) | |
Balance at the end of the period | $ 38,324 | $ 33,815 | $ 25,600 |
Accrued Expenses (Schedule Of A
Accrued Expenses (Schedule Of Accrued Expenses) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accrued Expenses [Abstract] | ||
Product warranties | $ 19,558 | $ 15,043 |
Consulting and professional fees | 10,506 | 11,948 |
Value added taxes and other taxes due | 18,228 | 14,769 |
Employee related costs | 100,410 | 83,407 |
Marketing and promotional programs | 2,661 | 2,401 |
Business acquisition contingent consideration | 651 | 10,450 |
Hedging instruments | 460 | 243 |
Liability on receivables sold with recourse (note 19) | 18,068 | 4,615 |
Accrued interest | 1,050 | 1,271 |
Other | 14,703 | 12,658 |
Total accrued expenses | $ 186,295 | $ 156,805 |
Product Warranties (Schedule Of
Product Warranties (Schedule Of Changes In Liability For Warranty Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Product Warranties [Abstract] | ||
Balance at the beginning of the period | $ 15,043 | $ 9,823 |
Fair value of warranty obligations acquired on business combination | 971 | |
Warranty accruals for the period | 19,805 | 15,014 |
Warranty costs incurred for the period | (15,489) | (10,667) |
Foreign currency translation adjustments | 199 | (98) |
Balance at the end of the period | $ 19,558 | $ 15,043 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) - USD ($) $ in Thousands | Mar. 30, 2017 | Jan. 09, 2017 | Apr. 04, 2016 | Oct. 31, 2013 | Jun. 30, 2017 | Jan. 08, 2017 | Jun. 30, 2016 | Apr. 03, 2016 |
Debt Instrument [Line Items] | ||||||||
Outstanding under the revolving credit facility | $ 1,078,611 | $ 873,332 | ||||||
Outstanding under the revolving credit facility | $ 1,080,000 | $ 875,000 | ||||||
Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of the term loan | $ 300,000 | |||||||
Union Bank, N.A. and HSBC Bank USA [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Interest rate on outstanding principal amount | 2.70% | |||||||
Union Bank, N.A. and HSBC Bank USA [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,300,000 | $ 700,000 | $ 1,000,000 | $ 700,000 | ||||
Uncommitted option to increase credit facility | $ 300,000 | 300,000 | ||||||
Credit facility termination date | Oct. 31, 2018 | |||||||
Union Bank, N.A. and HSBC Bank USA [Member] | Letters Of Credit [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 25,000 | |||||||
Minimum [Member] | Union Bank, N.A. and HSBC Bank USA [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fees percentage rate on unused portion of credit facility | 0.15% | |||||||
Minimum [Member] | Union Bank, N.A. and HSBC Bank USA [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility interest rate equal to reference rate plus | 1.00% | |||||||
Maximum [Member] | Union Bank, N.A. and HSBC Bank USA [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Commitment fees percentage rate on unused portion of credit facility | 0.25% | |||||||
Maximum [Member] | Union Bank, N.A. and HSBC Bank USA [Member] | Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Credit facility interest rate equal to reference rate plus | 2.00% | |||||||
Brightree LLC [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000 | $ 700,000 | ||||||
Brightree LLC [Member] | Term Loan Credit Agreement [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 300,000 | |||||||
Credit facility term, years | 1 year | |||||||
Brightree LLC [Member] | Union Bank, N.A. and HSBC Bank USA [Member] | Revolving Credit Facility [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | $ 1,000,000 | |||||||
Uncommitted option to increase credit facility | $ 300,000 |
Debt (Schedule Of Debt) (Detail
Debt (Schedule Of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Debt [Abstract] | ||
Short-term debt | $ 300,000 | |
Deferred borrowing costs | (562) | |
Short-term debt, net | 299,438 | |
Long-term debt | $ 1,080,000 | 875,000 |
Deferred borrowing costs | (1,389) | (1,668) |
Long-term debt, net | 1,078,611 | 873,332 |
Total debt | $ 1,078,611 | $ 1,172,770 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) | 12 Months Ended | ||||
Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015USD ($)shares | Feb. 21, 2014shares | Apr. 30, 1997$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized to be repurchased under repurchase program | 20,000,000 | ||||
Cost of common shares repurchased | $ | $ 102,065,000 | $ 152,655,000 | |||
Total number of shares repurchased pursuant to the repurchase program | 41,086,234 | 41,086,234 | |||
Total cost of shares repurchased pursuant to the repurchase program | $ | $ 1,546,611,000 | $ 1,546,611,000 | |||
Additional shares that can be repurchased under the approved share repurchase program | 13,600,000 | ||||
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | 2,000,000 | ||
Preferred stock at par value | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | ||
Preferred stock, shares issued | 0 | 0 | |||
Stock option expiration period | 7 years | ||||
Common stock authorized for issuance | 43,700,000 | ||||
Reduction in the number of shares of common stock available for issuance | 2.8 | ||||
Number of securities remaining available for future issuance | 11,600,000 | ||||
Maximum number of shares subject to awards granted | 3,000,000 | ||||
Number of common stock shares granted in participant's initial year of hiring | 4,500,000 | ||||
Unrecognized compensation costs related to unvested stock-based compensation arrangements | $ | $ 73,200,000 | ||||
Expected weighted average period of unrecognized compensation costs related to unvested stock-based compensation arrangements | 2 years 3 months 18 days | ||||
Aggregate intrinsic value of the stock-based compensation arrangements outstanding | $ | $ 194,500,000 | ||||
Aggregate intrinsic value of the stock-based compensation arrangements exercisable | $ | $ 164,900,000 | ||||
Aggregate intrinsic value of the options exercised | $ | 28,100,000 | 40,400,000 | 80,200,000 | ||
Stock-based compensation expense | $ | 45,925,000 | 46,408,000 | 47,855,000 | ||
Treasury Stock [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Cost of common shares repurchased | $ | $ 102,057,000 | $ 152,644,000 | |||
Common shares repurchased | 1,900,000 | 2,744,000 | |||
Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of securities remaining available for future issuance | 800,000 | ||||
Stock issued under Employee Stock Purchase Plans | 327,000 | 291,000 | |||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of grant | 85.00% | ||||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of purchase | 85.00% | ||||
Stock-based compensation expense | $ | $ 4,200,000 | $ 4,300,000 | |||
Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options and restricted stock units vesting period | 1 year | ||||
Minimum [Member] | Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock purchase program offering period | 3 months | ||||
Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options and restricted stock units vesting period | 4 years | ||||
Maximum [Member] | Employee Stock Purchase Plan [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Employee stock purchase program offering period | 27 months | ||||
Common stock shares subscribed | $ | $ 25,000 |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule Of Option Activity) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Stockholders' Equity [Abstract] | |||
Options, Outstanding at beginning of period | 1,924,229 | ||
Options, Granted | 313,255 | ||
Options, Exercised | [1] | (741,911) | |
Options, Forfeited | |||
Options, Outstanding at end of period | 1,495,573 | 1,924,229 | |
Options, Exercise price of granted options | $ 58.42 | ||
Options exercisable at end of period | 968,023 | ||
Weighted Average Exercise Price, Outstanding at beginning of period | $ 38.70 | ||
Weighted Average Exercise Price, Granted | 58.42 | ||
Weighted Average Exercise Price, Exercised | [1] | 30.12 | |
Weighted Average Exercise Price, Forfeited | |||
Weighted Average Exercise Price, Outstanding at end of period | 47.09 | $ 38.70 | |
Weighted Average Exercise Price, Options exercisable at end of period | $ 41.32 | ||
Weighted Average Remaining Contractual Term in Years, Outstanding | 3 years 10 months 24 days | 3 years 2 months 12 days | |
Exercisable shares, netted for tax | 1,508 | ||
[1] | Includes 1,508 shares netted for tax. |
Stockholders' Equity (Schedul69
Stockholders' Equity (Schedule Of Activity Of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted Stock Units, Outstanding at beginning of period | 1,861,510 | ||
Restricted Stock Units, Granted | 864,562 | ||
Restricted Stock Units, Vested | [1] | (584,517) | |
Restricted Stock Units, Expired | (178,376) | ||
Restricted Stock Units, Forfeited | (56,784) | ||
Restricted Stock Units, Outstanding at end of period | 1,906,395 | 1,861,510 | |
Weighted Average Grant-Date Fair Value, Outstanding at beginning of period | $ 50.52 | ||
Weighted Average Grant-Date Fair Value, Granted | 54.57 | ||
Weighted Average Grant-Date Fair Value, Vested | [1] | 47.77 | |
Weighted Average Grant-Date Fair Value, Expired | 50.08 | ||
Weighted Average Grant-Date Fair Value, Forfeited | 50.74 | ||
Weighted Average Grant-Date Fair Value, Outstanding at end of period | $ 53.26 | $ 50.52 | |
Weighted Average Remaining Contractual Term in Years, Outstanding | 1 year 7 months 6 days | 1 year 4 months 24 days | |
Exercisable shares, netted for tax | 137,932 | ||
[1] | Includes 137,932 shares netted for tax. |
Stockholders' Equity (Schedul70
Stockholders' Equity (Schedule Of Total Stock-Based Compensation Costs Incurred And Associated Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation costs | $ 45,925 | $ 46,408 | $ 47,855 | |
Tax benefit | [1] | (20,100) | (25,020) | (14,100) |
Stock-based compensation costs, net of tax benefit | 25,825 | 21,388 | 33,755 | |
Additional tax benefit | 6,100 | 11,200 | ||
Cost of Sales - Capitalized As Part Of Inventory [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation costs | 2,877 | 2,731 | 2,605 | |
Selling, general and Administrative Expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation costs | 37,096 | 36,994 | 38,755 | |
Research and Development Expense [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Stock-based compensation costs | $ 5,952 | $ 6,683 | $ 6,495 | |
[1] | Includes an additional tax benefit of $6.1 and $11.2 million for the years ended June 30, 2017 and June 30, 2016, respectively, associated with the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting", discussed in Note 3 - New Accounting Pronouncements. |
Other, Net (Schedule Of Other N
Other, Net (Schedule Of Other Net Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Other, Net [Abstract] | |||
Gain (loss) on foreign currency transactions and hedging, net | $ 5,434 | $ 4,169 | $ 5,068 |
Impairment of investments | (1,955) | (750) | |
Other | 617 | 1,541 | 1,182 |
Other, net income | $ 4,096 | $ 4,960 | $ 6,250 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | ||
Income Taxes [Line Items] | ||||
Additional income tax benefits as an increase to earnings | [1] | $ 20,100 | $ 25,020 | $ 14,100 |
U.S. Federal income tax rate | 35.00% | |||
Increase to net earnings from tax holidays and tax incentives program | $ 19,500 | $ 19,200 | ||
Increase to net earnings per diluted share from tax holidays and tax incentives program | $ 0.14 | $ 0.14 | ||
Undistributed earnings | $ 1,500,000 | |||
Amount of deferred taxes that would have been recognized if the earnings has not been permanently reinvested | $ 358,000 | |||
Australian Taxation Office [Member] | Minimum [Member] | ||||
Income Taxes [Line Items] | ||||
Tax year under audit | 2,009 | |||
Australian Taxation Office [Member] | Maximum [Member] | ||||
Income Taxes [Line Items] | ||||
Tax year under audit | 2,013 | |||
Domestic Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 114,600 | |||
Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 90,400 | |||
Valuation Allowance | Foreign Tax Authority [Member] | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 12,100 | |||
Capital loss | 3,200 | |||
ASU 2016-09 [Member] | ||||
Income Taxes [Line Items] | ||||
Additional income tax benefits as an increase to earnings | $ 6,100 | $ 11,200 | ||
[1] | Includes an additional tax benefit of $6.1 and $11.2 million for the years ended June 30, 2017 and June 30, 2016, respectively, associated with the early adoption of ASU 2016-09, "Improvements to Employee Share-Based Payment Accounting", discussed in Note 3 - New Accounting Pronouncements. |
Income Taxes (Schedule Of Incom
Income Taxes (Schedule Of Income Before Income Taxes Under The Jurisdictions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Abstract] | |||
U.S. | $ (4,985) | $ 1,785 | $ 11,431 |
Non-U.S. | 423,728 | 437,781 | 424,485 |
Income before income taxes | $ 418,743 | $ 439,566 | $ 435,916 |
Income Taxes (Schedule Of Provi
Income Taxes (Schedule Of Provision For Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Abstract] | |||
Current: Federal | $ 16,468 | $ 24,325 | $ 28,429 |
Current: State | (1,159) | 5,805 | 695 |
Current: Non-U.S. | 65,612 | 58,023 | 50,892 |
Current, Total | 80,921 | 88,153 | 80,016 |
Deferred: Federal | 11,385 | 5,640 | (4,269) |
Deferred: State | 2,706 | (1,644) | (180) |
Deferred: Non-U.S. | (18,553) | (4,992) | 7,463 |
Deferred, Total | (4,462) | (996) | 3,014 |
Provision for income taxes | $ 76,459 | $ 87,157 | $ 83,030 |
Income Taxes (Schedule Of Pro75
Income Taxes (Schedule Of Provision For Income Tax Differ From The Amount Of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Taxes [Abstract] | |||
Taxes computed at statutory U.S. rate | $ 146,560 | $ 153,848 | $ 152,570 |
State income taxes, net of U.S. tax benefit | (1,294) | 2,573 | 348 |
Research and development credit | (2,804) | (5,138) | (4,821) |
Tax effect of dividends | 97,662 | 80,754 | 56,219 |
Change in valuation allowance | 4,021 | (5,882) | (614) |
Effect of non-U.S. tax rates | (97,141) | (91,124) | (87,721) |
Foreign tax credits | (67,689) | (44,835) | (36,725) |
Stock-based compensation expense | (3,107) | (8,170) | 3,158 |
Other | 251 | 5,131 | 616 |
Provision for income taxes | $ 76,459 | $ 87,157 | $ 83,030 |
Income Taxes (Components Of Def
Income Taxes (Components Of Deferred Tax Assets And Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Income Taxes [Abstract] | ||
Employee liabilities | $ 19,275 | $ 15,514 |
Inventories | 10,126 | 9,714 |
Provision for warranties | 4,766 | 4,081 |
Provision for doubtful debts | 2,967 | 3,708 |
Net operating loss carryforwards | 36,117 | 33,881 |
Capital loss carryover | 2,625 | 2,109 |
Property, plant and equipment | 3,850 | |
Stock-based compensation expense | 15,143 | 15,460 |
Other | 5,805 | 4,655 |
Deferred tax assets, Gross | 100,674 | 89,122 |
Less valuation allowance | (15,259) | (10,807) |
Deferred tax assets | 85,415 | 78,315 |
Unrealized foreign exchange gains | (735) | (1,016) |
Property, plant and equipment | (4,383) | |
Goodwill and other intangibles | (36,999) | (26,481) |
Deferred tax liabilities | (37,734) | (31,880) |
Net deferred tax asset | $ 47,681 | $ 46,435 |
Income Taxes (Schedule Of Defer
Income Taxes (Schedule Of Deferred Tax Assets And Liabilities Classified As Current And Non-Current) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Income Taxes [Abstract] | ||
Non-current deferred tax asset | $ 61,503 | $ 55,496 |
Non-current deferred tax liability | (13,822) | (9,061) |
Net deferred tax asset | $ 47,681 | $ 46,435 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 2,066,737 | $ 1,838,713 | $ 1,678,912 |
Devices [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | 1,161,000 | 1,064,200 | 975,900 |
Masks And Other Accessories [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Sales | $ 767,700 | $ 745,600 | $ 703,000 |
Segment Information (Schedule O
Segment Information (Schedule Of Revenue By Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 2,066,737 | $ 1,838,713 | $ 1,678,912 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,229,196 | 1,056,453 | 904,342 |
Germany [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 153,283 | 163,257 | 184,245 |
Rest Of The World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 684,258 | $ 619,003 | $ 590,325 |
Segment Information (Schedule80
Segment Information (Schedule Of Long-Lived Assets By Geographic Areas) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | $ 394,241 | $ 384,276 | $ 387,758 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | 150,677 | 148,789 | 140,344 |
Australia [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | 183,159 | 185,978 | 197,609 |
Rest Of The World [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long lived assets | $ 60,405 | $ 49,509 | $ 49,805 |
Stock-Based Employee Compensa81
Stock-Based Employee Compensation (Narrative) (Details) - Performance Restricted Stock Units (PRSUs) [Member] - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Performance restricted stock units granted | 243,000 | 208,000 |
Relative total shareholder return period | 3 years | 3 years |
Maximum amount of performance restricted stock units to be issued, percentage of the original grant | 200.00% | 200.00% |
Weighted average fair value of performance restricted stock units granted | $ 51.60 | $ 53.11 |
Stock-Based Employee Compensa82
Stock-Based Employee Compensation (Schedule Of Assumptions For Fair Value Of Stock Option Plans And Purchase Rights Granted) (Details) - $ / shares | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 10.89 | $ 12.18 |
Weighted average risk-free interest rate | 1.61% | 1.66% |
Expected life in years | 4 years 10 months 24 days | 4 years 10 months 24 days |
Expected volatility | 25.00% | 27.00% |
ESPP Purchase Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average grant date fair value | $ 12.50 | $ 13.61 |
Weighted average risk-free interest rate | 0.50% | 0.20% |
Expected life in years | 6 months | 6 months |
Expected volatility | 23.00% | |
Minimum [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 2.02% | 2.06% |
Minimum [Member] | ESPP Purchase Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 1.92% | 1.96% |
Expected volatility | 23.00% | |
Maximum [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 2.29% | 2.09% |
Maximum [Member] | ESPP Purchase Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 2.27% | 2.14% |
Expected volatility | 32.00% |
Employee Retirement Plans (Narr
Employee Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Australia [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 9.50% | ||
Total contribution by the company to the employee retirement plans | $ 9.9 | $ 9.1 | $ 9.9 |
United States [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 4.00% | ||
Total contribution by the company to the employee retirement plans | $ 4.3 | 3.3 | 3.2 |
Singapore [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 16.00% | ||
Total contribution by the company to the employee retirement plans | $ 1.7 | $ 1.4 | $ 1.2 |
Commitments (Schedule Of Future
Commitments (Schedule Of Future Minimum Lease Payments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Commitments And Contingencies [Abstract] | |||
2,018 | $ 19,232 | ||
2,019 | 14,208 | ||
2,020 | 7,912 | ||
2,021 | 5,030 | ||
2,022 | 4,009 | ||
Thereafter | 7,852 | ||
Total minimum lease payments | 58,243 | ||
Rent expenses | $ 20,100 | $ 17,400 | $ 17,000 |
Legal Actions And Contingenci85
Legal Actions And Contingencies (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Loss Contingencies [Line Items] | ||
Receivables sold to leasing companies under debt factoring arrangements | $ 99.3 | $ 67.1 |
Contingent Obligations Under Recourse Provisions [Member] | ||
Loss Contingencies [Line Items] | ||
Maximum potential contingent liability | 27.5 | 12.9 |
Recourse liability recognized | $ 1.4 | $ 0.7 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Fair Value Measurements [Abstract] | |||
Additional business acquisition contingent consideration | $ 10,076 | $ (2,986) | $ (132) |
Fair Value Measurements (Summar
Fair Value Measurements (Summary Of Financial Assets And Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency hedging instruments, net | $ 2,760 | $ 4,185 |
Business acquisition contingent consideration | (1,580) | (10,450) |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency hedging instruments, net | ||
Business acquisition contingent consideration | ||
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency hedging instruments, net | 2,760 | 4,185 |
Business acquisition contingent consideration | ||
Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency hedging instruments, net | ||
Business acquisition contingent consideration | $ (1,580) | $ (10,450) |
Fair Value Measurements (Reconc
Fair Value Measurements (Reconciliation For Fair Value Measurements Using Significant Unobservable Inputs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Measurements [Abstract] | ||
Balance at the beginning of the period | $ (10,450) | $ (1,584) |
Acquisition date fair value of contingent consideration | (1,580) | (13,107) |
Changes in fair value included in operating income | (10,076) | 2,986 |
Payments | 20,142 | 1,228 |
Foreign currency translation adjustments | 384 | 27 |
Balance at the end of the period | $ (1,580) | $ (10,450) |
Derivative Instruments And He89
Derivative Instruments And Hedging Activities (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments And Hedging Activities [Abstract] | ||
Terms of foreign currency hedging contracts, maximum | 3 years | |
Notional amount of foreign currency hedging contracts held | $ 568.2 | $ 612.2 |
Derivative Instruments And He90
Derivative Instruments And Hedging Activities (Summary Of Amount And Location Of Derivative Financial Instruments) (Details) - Foreign Currency Hedging Instruments [Member] - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Derivatives, Fair Value [Line Items] | ||
Foreign currency hedging instruments, assets (liabilities) | $ 2,760 | $ 4,185 |
Other Assets - Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency hedging instruments, assets | 2,614 | 2,346 |
Other Assets - Non Current [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency hedging instruments, assets | 1,273 | 2,082 |
Accrued Expenses [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Foreign currency hedging instruments, liabilities | $ (1,127) | $ (243) |
Derivative Instruments And He91
Derivative Instruments And Hedging Activities (Summary Of Gains (Losses) Associated With Derivative Financial Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Gain (loss) recognized in income | $ 5,434 | $ 4,169 | $ 5,068 |
Derivatives Not Designated As Hedging Instruments [Member] | Other, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency hedging instruments | 5,434 | 4,169 | |
Foreign Currency Hedging Instruments [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Other, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency hedging instruments | 1,812 | (5,192) | |
Other Foreign-Currency-Denominated Transactions [Member] | Derivatives Not Designated As Hedging Instruments [Member] | Other, Net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency hedging instruments | $ 3,622 | $ 9,361 |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | Apr. 04, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Apr. 03, 2016 |
Business Combinations [Line Items] | |||||
Amortization of intangible assets | $ 46,600 | ||||
Interest expense | 28,236 | $ 11,206 | $ 5,778 | ||
Acquisition-related costs | 10,076 | ||||
Income tax expense (benefit) | $ 76,459 | 87,157 | 83,030 | ||
U.S. Federal income tax rate | 35.00% | ||||
Brightree LLC [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Apr. 4, 2016 | ||||
Total purchase price of acquisition | $ 802,000 | ||||
Income tax expense (benefit) | (1,200) | (400) | |||
Brightree LLC [Member] | Pro Forma [Member] | |||||
Business Combinations [Line Items] | |||||
Amortization of intangible assets | 19,900 | 26,200 | |||
Interest expense | 16,100 | 16,500 | |||
Acquisition-related costs | 4,100 | ||||
Income tax expense (benefit) | $ 1,300 | $ 3,100 | |||
U.S. Federal income tax rate | 37.00% | ||||
Brightree LLC [Member] | Revolving Credit Facility [Member] | |||||
Business Combinations [Line Items] | |||||
Maximum borrowing capacity | 1,000,000 | $ 700,000 | |||
Brightree LLC [Member] | Term Loan Credit Agreement [Member] | |||||
Business Combinations [Line Items] | |||||
Maximum borrowing capacity | $ 300,000 | ||||
Credit facility term, years | 1 year | ||||
Curative Medical [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Oct. 2, 2015 | ||||
Percentage of outstanding shares acquired | 100.00% | ||||
Maribo Medico A/S [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Nov. 6, 2015 | ||||
Percentage of outstanding shares acquired | 100.00% | ||||
Bennett Precision Tooling Pty Ltd [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Nov. 30, 2015 | ||||
Percentage of outstanding shares acquired | 100.00% | ||||
Inova Labs [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Jan. 29, 2016 | ||||
Percentage of outstanding shares acquired | 100.00% | ||||
Conduit [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | May 31, 2017 | ||||
AllCall [Member] | |||||
Business Combinations [Line Items] | |||||
Date of acquisition agreement | Jun. 30, 2017 | ||||
Conduit And AllCall [Member] | |||||
Business Combinations [Line Items] | |||||
Acquisition-related costs | $ 0 | ||||
Other Acquisitions [Member] | |||||
Business Combinations [Line Items] | |||||
Acquisition-related costs | $ 5,300 |
Business Combinations (Fair Val
Business Combinations (Fair Values Of Assets Acquired, Liabilities Assumed, And Estimated Useful Lives) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Conduit And AllCall [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Property, plant and equipment | $ 69 | |
Goodwill | 2,000 | |
Assets acquired | 6,649 | |
Current liabilities | (60) | |
Total liabilities assumed | (60) | |
Net assets acquired | $ 6,589 | |
Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Current assets | $ 13,868 | |
Property, plant and equipment | 1,045 | |
Goodwill | 602,090 | |
Assets acquired | 815,503 | |
Current liabilities | (9,399) | |
Deferred revenue | (4,571) | |
Total liabilities assumed | (13,970) | |
Net assets acquired | 801,533 | |
Brightree LLC [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 1,442 | |
Goodwill | 906 | |
Assets acquired | 2,348 | |
Net assets acquired | 2,348 | |
Brightree LLC [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 15,310 | |
Property, plant and equipment | 1,045 | |
Goodwill | 602,996 | |
Assets acquired | 817,851 | |
Current liabilities | (9,399) | |
Deferred revenue | (4,571) | |
Total liabilities assumed | (13,970) | |
Net assets acquired | 803,881 | |
Other Acquisitions [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 49,370 | |
Property, plant and equipment | 5,294 | |
Goodwill | 194,216 | |
Assets acquired | 325,498 | |
Current liabilities | (21,147) | |
Debt assumed | (21,201) | |
Deferred revenue | (4,283) | |
Deferred tax liabilities | (19,207) | |
Total liabilities assumed | (65,838) | |
Net assets acquired | 259,660 | |
Other Acquisitions [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 3,184 | |
Goodwill | (3,551) | |
Assets acquired | 818 | |
Current liabilities | (370) | |
Deferred tax liabilities | (448) | |
Total liabilities assumed | (818) | |
Other Acquisitions [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Current assets | 52,554 | |
Property, plant and equipment | 5,294 | |
Goodwill | 190,665 | |
Assets acquired | 326,316 | |
Current liabilities | (21,517) | |
Debt assumed | (21,201) | |
Deferred revenue | (4,283) | |
Deferred tax liabilities | (19,655) | |
Total liabilities assumed | (66,656) | |
Net assets acquired | 259,660 | |
Trade Names [Member] | Conduit And AllCall [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 3 years | |
Trade Names [Member] | Conduit And AllCall [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 100 | |
Trade Names [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 28,700 | |
Intangible assets, useful life | 10 years | |
Trade Names [Member] | Brightree LLC [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 28,700 | |
Trade Names [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 7 years | |
Trade Names [Member] | Other Acquisitions [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 17,400 | |
Trade Names [Member] | Other Acquisitions [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 17,400 | |
In-Process Research And Development [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 4,100 | |
In-Process Research And Development [Member] | Brightree LLC [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 4,100 | |
Non-Compete [Member] | Conduit And AllCall [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 520 | |
Non-Compete [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Non-Compete [Member] | Other Acquisitions [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 1,400 | |
Non-Compete [Member] | Other Acquisitions [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 1,400 | |
Non-Compete [Member] | Minimum [Member] | Conduit And AllCall [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 1 year | |
Non-Compete [Member] | Maximum [Member] | Conduit And AllCall [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 3 years | |
Developed Technology [Member] | Conduit And AllCall [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Developed Technology [Member] | Conduit And AllCall [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 1,800 | |
Developed Technology [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 114,700 | |
Developed Technology [Member] | Brightree LLC [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 114,700 | |
Developed Technology [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Developed Technology [Member] | Other Acquisitions [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 20,515 | |
Developed Technology [Member] | Other Acquisitions [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 585 | |
Developed Technology [Member] | Other Acquisitions [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 21,100 | |
Developed Technology [Member] | Minimum [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Developed Technology [Member] | Maximum [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 6 years | |
Customer Relationships [Member] | Conduit And AllCall [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Customer Relationships [Member] | Conduit And AllCall [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 2,160 | |
Customer Relationships [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 51,000 | |
Customer Relationships [Member] | Brightree LLC [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 51,000 | |
Customer Relationships [Member] | Other Acquisitions [Member] | Preliminary [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 37,303 | |
Customer Relationships [Member] | Other Acquisitions [Member] | Adjustments [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | 600 | |
Customer Relationships [Member] | Other Acquisitions [Member] | Final [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets | $ 37,903 | |
Customer Relationships [Member] | Minimum [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 10 years | |
Customer Relationships [Member] | Minimum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 5 years | |
Customer Relationships [Member] | Maximum [Member] | Brightree LLC [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 15 years | |
Customer Relationships [Member] | Maximum [Member] | Other Acquisitions [Member] | ||
Business Combinations [Line Items] | ||
Intangible assets, useful life | 8 years |
Business Combinations (Pro Form
Business Combinations (Pro Forma Information) (Details) - Brightree LLC [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Business Acquisition [Line Items] | ||
Revenue | $ 1,931,257 | $ 1,780,727 |
Net income attributable to stockholders | $ 354,565 | $ 347,563 |
Basic earnings per share | $ 2.53 | $ 2.47 |
Diluted earnings per share | $ 2.54 | $ 2.44 |
Restructuring Expenses (Narrati
Restructuring Expenses (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 12,358 | $ 6,914 |
Reorganization Of Global Research And Development Activities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | 12,400 | |
Employee related costs | $ 6,500 | |
Rationalizing European Research And Development Operations And Manufacturing Facilities [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring expenses | $ 6,900 |
Litigation Settlement Expenses
Litigation Settlement Expenses (Narrative) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2017USD ($) | |
Litigation Settlement Expenses [Member] | |
Litigation settlement expenses | $ 8,500 |
Settlement agreement, term | Mutual release and dismissal of all litigation current at the time of settlement, worldwide, including all validity challenges. It was agreed that neither party will initiate legal suit against the other for a period of five years without a 90 day meet and confer process. |
BMC [Member] | |
Litigation Settlement Expenses [Member] | |
Settlement agreement, term | We agreed that for five years from the date of the agreement, we would not initiate legal suit against BMC for patent infringement for selling their range of devices and masks that were the subject of the current dispute. BMC agreed to pay us royalties on the sale of those products in the United States. |
Schedule II Valuation And Qua97
Schedule II Valuation And Qualifying Accounts And Reserves (Details) - Applied Against Asset Account Allowance For Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | |||
Balance at Beginning of Period | $ 12,555 | $ 12,276 | $ 10,971 |
Charged to costs and expenses | 4,269 | 3,383 | 3,559 |
Other (deductions) | (5,674) | (3,104) | (2,254) |
Balance at end of period | $ 11,150 | $ 12,555 | $ 12,276 |