Cover
Cover - USD ($) | 12 Months Ended | ||
Jun. 30, 2023 | Aug. 07, 2023 | Dec. 31, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2023 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity File Number | 001-15317 | ||
Entity Registrant Name | ResMed Inc. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 98-0152841 | ||
Entity Address, Address Line One | 9001 Spectrum Center Blvd. | ||
Entity Address, City or Town | San Diego | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 92123 | ||
Entity Address, Country | US | ||
City Area Code | 858 | ||
Local Phone Number | 836-5000 | ||
Title of 12(b) Security | Common Stock, par value $0.004 per share | ||
Trading Symbol | RMD | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 30,200,969,929 | ||
Entity Common Stock, Shares Outstanding | 147,071,404 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive Proxy Statement to be delivered to stockholders in connection with the registrant’s 2023 Annual Meeting of Stockholders, to be filed within 120 days after the end of the fiscal year covered by this Form 10-K, are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000943819 | ||
Document Fiscal Year Focus | 2023 | ||
Document Transition Report | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | San Diego, CA |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 227,891 | $ 273,710 |
Accounts receivable, net of allowances of $23,603 and $23,259 at June 30, 2023 and June 30, 2022, respectively | 704,909 | 575,950 |
Inventories (note 3) | 998,012 | 743,910 |
Prepaid expenses and other current assets (note 3) | 437,018 | 337,908 |
Total current assets | 2,367,830 | 1,931,478 |
Non-current assets: | ||
Property, plant and equipment, net (note 3) | 537,856 | 498,181 |
Operating lease right-of-use assets (note 9) | 127,955 | 132,314 |
Goodwill (note 4) | 2,770,299 | 1,936,442 |
Other intangible assets, net (note 4) | 552,341 | 345,944 |
Deferred income taxes (note 12) | 132,974 | 79,746 |
Prepaid taxes and other non-current assets | 262,453 | 171,748 |
Total non-current assets | 4,383,878 | 3,164,375 |
Total assets | 6,751,708 | 5,095,853 |
Current liabilities: | ||
Accounts payable | 150,756 | 159,245 |
Accrued expenses (note 6) | 365,660 | 344,722 |
Operating lease liabilities, current (note 9) | 21,919 | 21,856 |
Deferred revenue | 138,072 | 108,667 |
Income taxes payable (note 12) | 72,224 | 44,893 |
Short-term debt, net (note 8) | 9,902 | 9,916 |
Total current liabilities | 758,533 | 689,299 |
Non-current liabilities: | ||
Deferred revenue | 119,186 | 95,455 |
Deferred income taxes (note 12) | 90,650 | 9,714 |
Operating lease liabilities, non-current (note 9) | 116,853 | 120,453 |
Other long-term liabilities | 68,166 | 5,974 |
Long-term debt, net (note 8) | 1,431,234 | 765,325 |
Long-term income taxes payable (note 12) | 37,183 | 48,882 |
Total non-current liabilities | 1,863,272 | 1,045,803 |
Total liabilities | 2,621,805 | 1,735,102 |
Commitments and contingencies (note 15) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.004 par value, 350,000,000 shares authorized; 188,900,583 issued and 147,064,349 outstanding at June 30, 2023 and 188,246,955 issued and 146,410,721 outstanding at June 30, 2022 | 588 | 586 |
Additional paid-in capital | 1,772,083 | 1,682,432 |
Retained earnings | 4,253,016 | 3,613,736 |
Treasury stock, at cost, 41,836,234 shares at June 30, 2023 and June 30, 2022 | (1,623,256) | (1,623,256) |
Accumulated other comprehensive loss | (272,528) | (312,747) |
Total stockholders’ equity | 4,129,903 | 3,360,751 |
Total liabilities and stockholders’ equity | $ 6,751,708 | $ 5,095,853 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 23,603 | $ 23,259 |
Preferred stock at par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.004 | $ 0.004 |
Common stock, shares authorized (in shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (in shares) | 188,900,583 | 188,246,955 |
Common stock issued on exercise of options (note 11) (in shares) | 147,064,349 | 146,410,721 |
Treasury stock, shares (in shares) | 41,836,234 | 41,836,234 |
Consolidated Statements Of Inco
Consolidated Statements Of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Net revenue | $ 4,222,993 | $ 3,578,127 | $ 3,196,825 |
Cost of sales (exclusive of amortization shown separately below) | 1,836,935 | 1,514,166 | 1,312,598 |
Amortization of acquired intangible assets | 30,396 | 39,650 | 45,127 |
Total cost of sales | 1,867,331 | 1,553,816 | 1,357,725 |
Gross profit | 2,355,662 | 2,024,311 | 1,839,100 |
Operating Expenses [Abstract] | |||
Selling, general, and administrative | 874,003 | 737,508 | 670,387 |
Research and development | 287,642 | 253,575 | 225,284 |
Amortization of acquired intangible assets | 42,020 | 31,078 | 31,078 |
Restructuring expenses (note 18) | 9,177 | 0 | 8,673 |
Acquisition related expenses | 10,949 | 1,864 | 0 |
Total operating expenses | 1,223,791 | 1,024,025 | 935,422 |
Income from operations | 1,131,871 | 1,000,286 | 903,678 |
Other income (loss), net: | |||
Interest (expense) income, net | (47,379) | (22,312) | (23,627) |
Loss attributable to equity method investments (note 5) | (7,265) | (8,486) | (11,205) |
Gain (loss) on equity investments (note 5) | 9,922 | (12,202) | 14,515 |
Gain on insurance recoveries | 20,227 | 0 | 0 |
Other, net | (5,712) | 3,197 | 301 |
Total other income (loss), net | (30,207) | (39,803) | (20,016) |
Income before income taxes | 1,101,664 | 960,483 | 883,662 |
Income taxes (note 12) | 204,108 | 181,046 | 409,157 |
Net income | $ 897,556 | $ 779,437 | $ 474,505 |
Basic earnings per share (note 11) (in dollars per share) | $ 6.12 | $ 5.34 | $ 3.27 |
Diluted earnings per share (note 11) (in dollars per share) | 6.09 | 5.30 | 3.24 |
Dividend declared per share (in dollars per share) | $ 1.76 | $ 1.68 | $ 1.56 |
Basic shares outstanding (000's) (in shares) | 146,765 | 146,066 | 145,313 |
Diluted shares outstanding (000's) (in shares) | 147,455 | 147,043 | 146,451 |
Sleep and Respiratory Care products | |||
Net revenue | $ 3,725,017 | $ 3,177,298 | $ 2,823,235 |
Cost of sales (exclusive of amortization shown separately below) | 1,662,957 | 1,365,421 | 1,177,309 |
Amortization of acquired intangible assets | 5,340 | 4,105 | 4,895 |
Software as a Service | |||
Net revenue | 497,976 | 400,829 | 373,590 |
Cost of sales (exclusive of amortization shown separately below) | 173,978 | 148,745 | 135,289 |
Amortization of acquired intangible assets | $ 25,056 | $ 35,545 | $ 40,232 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 897,556 | $ 779,437 | $ 474,505 |
Other comprehensive income (loss): | |||
Unrealized losses on designated hedging instruments | (35,596) | 0 | 0 |
Foreign currency translation (loss) gain adjustments | 75,815 | (119,260) | 90,495 |
Comprehensive income | $ 937,775 | $ 660,177 | $ 565,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders’ Equity - USD ($) $ in Thousands | Total | Cumulative effect adjustment from adoption of the credit loss standard, net of tax | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Retained Earnings Cumulative effect adjustment from adoption of the credit loss standard, net of tax | Accumulated Other Comprehensive Income (Loss) |
Common stock, shares outstanding, beginning balance (in shares) at Jun. 30, 2020 | 186,723,000 | |||||||
Beginning balance at Jun. 30, 2020 | $ 2,497,027 | $ (1,143) | $ 580 | $ 1,570,694 | $ (1,623,256) | $ 2,832,991 | $ (1,143) | $ (283,982) |
Treasury stock, common, beginning balance (in shares) at Jun. 30, 2020 | (41,836,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued on exercise of options (note 10) (in shares) | 64,000 | |||||||
Common stock issued on exercise of options (note 10) | 3,954 | 3,954 | ||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) (in shares) | 469,000 | |||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ (50,207) | $ 2 | (50,209) | |||||
Common stock issued on employee stock purchase plan (note 10) (in shares) | 229,000 | 229,000 | ||||||
Common stock issued on employee stock purchase plan (note 10) | $ 33,834 | $ 1 | 33,833 | |||||
Stock-based compensation costs | 63,927 | 63,927 | ||||||
Other comprehensive income (loss) | 90,495 | 90,495 | ||||||
Net income | 474,505 | 474,505 | ||||||
Dividends declared | (226,713) | (226,713) | ||||||
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2021 | 187,485,000 | |||||||
Ending balance at Jun. 30, 2021 | 2,885,679 | $ 583 | 1,622,199 | $ (1,623,256) | 3,079,640 | (193,487) | ||
Treasury stock, common, ending balance (in shares) at Jun. 30, 2021 | (41,836,000) | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued on exercise of options (note 10) (in shares) | 177,000 | |||||||
Common stock issued on exercise of options (note 10) | 11,205 | 11,205 | ||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) (in shares) | 369,000 | |||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ (52,406) | $ 2 | (52,408) | |||||
Common stock issued on employee stock purchase plan (note 10) (in shares) | 216,000 | 216,000 | ||||||
Common stock issued on employee stock purchase plan (note 10) | $ 36,180 | $ 1 | 36,179 | |||||
Stock-based compensation costs | 65,257 | 65,257 | ||||||
Other comprehensive income (loss) | (119,260) | (119,260) | ||||||
Net income | 779,437 | 779,437 | ||||||
Dividends declared | $ (245,341) | (245,341) | ||||||
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2022 | 146,410,721 | 188,247,000 | ||||||
Ending balance at Jun. 30, 2022 | $ 3,360,751 | $ 586 | 1,682,432 | $ (1,623,256) | 3,613,736 | (312,747) | ||
Treasury stock, common, ending balance (in shares) at Jun. 30, 2022 | (41,836,234) | (41,836,000) | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Common stock issued on exercise of options (note 10) (in shares) | 157,000 | 157,000 | ||||||
Common stock issued on exercise of options (note 10) | $ 9,696 | 9,696 | ||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) (in shares) | 277,000 | |||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax (note 11) | $ (30,631) | $ 1 | (30,632) | |||||
Common stock issued on employee stock purchase plan (note 10) (in shares) | 220,000 | 220,000 | ||||||
Common stock issued on employee stock purchase plan (note 10) | $ 39,446 | $ 1 | 39,445 | |||||
Stock-based compensation costs | 71,142 | 71,142 | ||||||
Other comprehensive income (loss) | 40,219 | 40,219 | ||||||
Net income | 897,556 | 897,556 | ||||||
Dividends declared | $ (258,276) | (258,276) | ||||||
Common stock, shares outstanding, ending balance (in shares) at Jun. 30, 2023 | 147,064,349 | 188,901,000 | ||||||
Ending balance at Jun. 30, 2023 | $ 4,129,903 | $ 588 | $ 1,772,083 | $ (1,623,256) | $ 4,253,016 | $ (272,528) | ||
Treasury stock, common, ending balance (in shares) at Jun. 30, 2023 | (41,836,234) | (41,836,000) |
Consolidated Statements of St_2
Consolidated Statements of Stockholders’ Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividend declared per share (in dollars per share) | $ 1.76 | $ 1.68 | $ 1.56 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | |||
Net income | $ 897,556 | $ 779,437 | $ 474,505 |
Adjustment to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 165,156 | 159,609 | 156,758 |
Amortization of right-of-use assets | 32,406 | 34,232 | 34,760 |
Stock-based compensation costs (note 10) | 71,142 | 65,257 | 63,927 |
Loss attributable to equity method investments, net of dividends received (note 5) | 10,138 | 8,486 | 11,205 |
(Gain) loss on equity investments (note 5) | (9,922) | 12,202 | (14,515) |
Restructuring expenses (note 18) | 9,177 | 0 | 8,673 |
Gain on insurance recoveries | (20,227) | 0 | 0 |
Changes in operating assets and liabilities: | |||
Accounts receivable | (106,511) | 19,346 | (129,195) |
Inventories | (248,833) | (311,681) | (21,954) |
Prepaid expenses, net deferred income taxes and other current assets | (138,125) | (168,109) | (58,154) |
Accounts payable, accrued expenses and other | 31,342 | (247,632) | 210,708 |
Net cash provided by operating activities | 693,299 | 351,147 | 736,718 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (119,672) | (134,835) | (102,712) |
Patent registration costs | (14,328) | (21,201) | (14,114) |
Business acquisitions, net of cash acquired | (1,012,749) | (42,784) | (39,067) |
Purchases of investments (note 5) | (32,229) | (20,724) | (21,788) |
Proceeds from sale of investment (note 5) | 3,937 | 6,802 | 0 |
Proceeds / (payments) on maturity of foreign currency contracts | 15,196 | (17,176) | 19,219 |
Net cash used in investing activities | (1,159,845) | (229,918) | (158,462) |
Cash flows from financing activities: | |||
Proceeds from issuance of common stock, net | 49,142 | 47,384 | 37,790 |
Taxes paid related to net share settlement of equity awards | (30,631) | (52,406) | (50,209) |
Payments of business combination contingent consideration | (2,361) | 0 | (3,500) |
Proceeds from borrowings, net of borrowing costs | 1,070,000 | 288,000 | 90,000 |
Repayment of borrowings | (405,000) | (166,000) | (612,000) |
Dividends paid | (258,276) | (245,341) | (226,713) |
Net cash provided by (used in) financing activities | 422,874 | (128,363) | (764,632) |
Effect of exchange rate changes on cash | (2,147) | (14,434) | 18,498 |
Net decrease in cash and cash equivalents | (45,819) | (21,568) | (167,878) |
Cash and cash equivalents at beginning of period | 273,710 | 295,278 | 463,156 |
Cash and cash equivalents at end of period | 227,891 | 273,710 | 295,278 |
Supplemental disclosure of cash flow information: | |||
Income taxes paid, net of refunds | 216,866 | 478,120 | 221,359 |
Interest paid | 47,379 | 22,312 | 23,989 |
Fair value of assets acquired, excluding cash | 359,730 | 15,648 | 16,671 |
Liabilities assumed | (131,765) | (4,672) | (1,543) |
Goodwill on acquisition | 786,990 | 38,953 | 24,671 |
Previously held equity interest | 0 | (4,078) | 0 |
Deferred payments | 2,542 | (3,067) | 3,768 |
Fair value of contingent consideration | (2,387) | 0 | 0 |
Cash paid for acquisitions | $ 1,015,110 | $ 42,784 | $ 43,567 |
Organization and Basis of Prese
Organization and Basis of Presentation | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation ResMed Inc. (referred to herein as “we”, “us”, “our” or the “Company”) is a Delaware corporation formed in March 1994 as a holding company for the ResMed Group. Through our subsidiaries, we design, manufacture and market equipment for the diagnosis and treatment of sleep-disordered breathing and other respiratory disorders, including obstructive sleep apnea. Our manufacturing operations are located in Australia, Singapore, Malaysia, France, China and the United States. Major distribution and sales sites are located in the United States, Germany, France, the United Kingdom, Switzerland, Australia, Japan, China, Finland, Norway and Sweden. We also operate a Software as a Service (“SaaS”) business in the United States and Germany that includes out-of-hospital software platforms designed to support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 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 intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Certain prior period amounts have been reclassified to conform to the current period presentation. Actual results could differ from management’s estimates. (b) Revenue Recognition In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Respiratory Care”) and the supply of business management software as a service to out-of-hospital care providers (“SaaS”). Our Sleep and Respiratory Care revenue relates primarily to the sale of our products that are therapy-based equipment. Some contracts include additional performance obligations such as the provision of extended warranties and provision of data for patient monitoring. Our SaaS revenue relates to the provision of software access with ongoing support and maintenance services as well as professional services such as training and consulting. Disaggregation of revenue See Note 13 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2023, 2022 and 2021. Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Care business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our SaaS business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some SaaS contracts. Generally, deferred revenue will be recognized over a period of one year to five years. Our contracts do not contain significant financing components. The following table summarizes our contract balances as of June 30, 2023 and 2022 (in thousands): 2023 2022 Balance sheet caption Contract assets Accounts receivable, net $ 704,909 $ 575,950 Accounts receivable, net Unbilled revenue, current 31,521 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 10,078 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (138,072) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (119,186) (95,455) Deferred revenue (non-current liabilities) Transaction price determination Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Respiratory Care segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. rebates, discounts, free goods) and returns offered to our customers and their customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. However, returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Respiratory Care contracts that have a single performance obligation, which is the shipment of our therapy-based equipment. Accounting and practical expedient elections We have elected to account for shipping and handling activities associated with our Sleep and Respiratory Care segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date and which is relevant for some of our SaaS contracts. The second practical expedient adopted permits relief from considering a significant financing component when the payment for the good or service is expected to be one year or less. (c) Concentration of Credit Risk and Significant Customers Financial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the significant majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented. (d) Fair Value of Financial Instruments The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. The carrying value of cash equivalents, accounts receivable and accounts payable, approximate their fair value because of their short-term nature. The carrying value of long-term debt related to our Revolving Credit and Term Credit Agreements approximates its fair value as the principal amounts outstanding are subject to variable interest rates that are based on market rates which are regularly reset. The carrying value of long-term debt related to our Senior Notes can differ to its fair value as the principal amounts outstanding are subject to fixed interest rates as outlined in Note 8 - Debt. Foreign currency hedging instruments are marked to market and therefore reflect their fair value. In addition, we measure investments in publicly held equity securities and privately held equity securities for which there has been an observable price change in an identical or similar security, at fair value. We do not hold or issue financial instruments for trading purposes. (e) Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. (f) Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). (g) Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of forty years and leasehold improvements, which we amortize over the shorter of the useful life or the lease term. We charge maintenance and repairs to expense as we incur them. Depreciation expense for property, plant, and equipment was $84.7 million, $81.0 million, and $78.4 million for the years ended June 30, 2023, 2022 and 2021, respectively. (h) Intangible Assets We capitalize the registration costs for new patents and amortize the costs over the estimated useful life of the patent, which is generally ten years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately. We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years. We take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets. We have not identified any impairment of intangible assets during any of the periods presented. (i) Goodwill We conduct our annual review for goodwill impairment during the final quarter of the fiscal year. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. During the annual reviews for the years ended June 30, 2023, 2022 and 2021, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill, and therefore goodwill was not impaired. (j) Equity investments We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our accounting for investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method. Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the consolidated balance sheets. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the consolidated statements of income. Equity investments whereby we have significant influence but not control over the investee and are not the primary beneficiary of the investee’s activities, are accounted for under the equity method. Under this method, we record our share of gains or losses attributable to equity method investments as a component of other income (loss), net on the consolidated statements of income. (k) Research and Development We record all research and development expenses in the period we incur them. (l) Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. (m) Foreign Exchange Risk Management We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments. Fair Value and Net Investment Hedging On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item. The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item as the hedged item, other, net, in the consolidated statement of income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net. The notional value of outstanding foreign cross-currency swaps was $1,046.6 million at June 30, 2023. These contracts mature at various dates prior to December 31, 2029. Non-Designated Hedges We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed two years. The purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All movements in the fair value of the foreign currency instruments are recorded within other, net in our consolidated statements of income. The notional value of the outstanding non-designated hedges was $954.7 million and $602.0 million at June 30, 2023 and June 30, 2022, respectively. These contracts mature at various dates prior to December 15, 2024. We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy. 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. (n) Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense. (o) Provision for Warranty We provide for the estimated cost of product warranties on our Sleep and Respiratory Care products at the time the related revenue is recognized. We determine the amount of this provision by using a financial model, which takes into consideration actual historical expenses and potential risks associated with our different products. We use this financial model to calculate the future probable expenses related to warranty and the required level of the warranty provision. Although we engage in product improvement programs and processes, our warranty obligation is affected by product failure rates and costs incurred to correct those product failures. Should actual product failure rates or estimated costs to repair those product failures differ from our estimates, we would be required to revise our estimated warranty provision. (p) Allowance for Credit Losses We maintain an allowance for credit losses on customer receivables based on our historical write-off experience, an assessment of our customers’ financial conditions and available information that is relevant to assessing the collectability of cash flows, which includes current conditions and forecasts about future economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible. We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. (q) Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2023, 2022 and 2021. (r) Contingencies |
Supplemental Balance Sheet Info
Supplemental Balance Sheet Information | 12 Months Ended |
Jun. 30, 2023 | |
Supplemental Balance Sheet Information [Abstract] | |
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Components of selected captions in the consolidated balance sheets consisted of the following as of June 30, 2023 and June 30, 2022 (in thousands): Inventories 2023 2022 Raw materials $ 459,126 $ 355,225 Work in progress 3,956 3,077 Finished goods 534,930 385,608 Total inventories $ 998,012 $ 743,910 Prepaid expenses and other current assets 2023 2022 Prepaid taxes $ 114,009 $ 99,352 Prepaid inventories 143,084 107,291 Other prepaid expenses and current assets 179,925 131,265 Total prepaid expenses and other current assets $ 437,018 $ 337,908 Property, plant and equipment 2023 2022 Machinery and equipment $ 443,781 $ 390,634 Computer equipment and software 189,568 199,671 Furniture and fixtures 61,663 54,098 Vehicles and aircraft 20,587 19,231 Clinical, demonstration and rental equipment 115,696 105,440 Leasehold improvements 91,499 80,855 Land 52,055 51,864 Buildings 231,019 229,502 Property, plant and equipment, at cost $ 1,205,868 $ 1,131,295 Accumulated depreciation and amortization (668,012) (633,114) Property, plant and equipment, net $ 537,856 $ 498,181 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets, net | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets, net | Goodwill and Other Intangible Assets, net Goodwill For each of the years ended June 30, 2023 and June 30, 2022, we have not recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2023 (in thousands): 2023 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 767,709 786,990 Foreign currency translation adjustments 9,115 37,752 46,867 Balance at the end of the period $ 670,120 $ 2,100,179 $ 2,770,299 Other Intangible Assets Other intangibles, net are comprised of the following as of June 30, 2023 and June 30, 2022 (in thousands): 2023 2022 Developed/core product technology $ 398,740 $ 350,671 Accumulated amortization (265,802) (239,647) Developed/core product technology, net 132,938 111,024 Customer relationships 443,652 257,034 Accumulated amortization (124,220) (91,731) Customer relationships, net 319,432 165,303 Other intangibles 244,373 204,580 Accumulated amortization (144,402) (134,963) Other intangibles, net 99,971 69,617 Total other intangibles, net $ 552,341 $ 345,944 Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years. There are no expected residual values related to these intangible assets. Amortization expense related to identified intangible assets for the years ended June 30, 2023 and June 30, 2022 was $72.4 million and $70.7 million, respectively. Amortization expense related to patents for the years ended June 30, 2023 and June 30, 2022 was $7.0 million and $6.2 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2024 through June 30, 2028, is shown below (in thousands): Fiscal Years Ending June 30 2024 2025 2026 2027 2028 Estimated amortization expense $ 86,633 $ 82,227 $ 77,005 $ 58,127 $ 23,175 |
Investments
Investments | 12 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Investments | Investments Equity investments by measurement category as of June 30, 2023 and June 30, 2022 were as follows (in thousands): Measurement category 2023 2022 Fair value $ 12,423 $ 9,167 Measurement alternative 68,748 39,290 Equity method 65,366 9,918 Total $ 146,537 $ 58,375 The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2023 (in thousands): Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 Additions to investments (1) 21,738 4,991 62,733 89,462 Observable price adjustments on non-marketable equity securities 12,612 — — 12,612 Impairment of investments (4,892) — — (4,892) Realized gains on marketable and non-marketable equity securities 3,937 — — 3,937 Proceeds from exits of investments (3,937) — — (3,937) Unrealized losses on marketable equity securities — (1,735) — (1,735) Loss attributable to equity method investments — — (7,265) (7,265) Dividends received — — (2,873) (2,873) Foreign currency translation adjustments — — 2,853 2,853 Carrying value at the end of the period $ 68,748 $ 12,423 $ 65,366 $ 146,537 (1) Includes additions from purchases and an equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 17 herein. The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2022 (in thousands): Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Net additions (reductions) to investments (2) 11,775 (3,202) 1,250 9,823 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Impairment of investments (3,209) — — (3,209) Realized gains on marketable and non-marketable equity securities 2,355 1,626 — 3,981 Unrealized losses on marketable equity securities — (18,341) — (18,341) Loss attributable to equity method investments — — (8,486) (8,486) Carrying value at the end of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 (2) Net additions (reductions) to investments includes additions from purchases, reductions due to exits of securities, or reclassifications due to our acquisition of an investee in which we held a prior equity interest. |
Accrued Expenses
Accrued Expenses | 12 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued Expenses | Accrued Expenses Accrued expenses at June 30, 2023 and June 30, 2022 consist of the following (in thousands): 2023 2022 Product warranties (note 7) $ 27,621 $ 25,889 Consulting and professional fees 26,148 25,073 Value added taxes and other taxes due 23,636 26,340 Employee related costs 220,785 194,736 Promotional and marketing 9,366 6,485 Foreign currency hedging instruments 9,558 1,947 Accrued interest 9,375 7,983 Logistics and occupancy costs 16,278 32,160 Inventory in transit 10,034 11,554 Other 12,859 12,555 Total accrued expenses $ 365,660 $ 344,722 |
Product Warranties
Product Warranties | 12 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Product Warranties | 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, 2023 and June 30, 2022 are as follows (in thousands): 2023 2022 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 15,628 17,442 Warranty costs incurred for the period (13,734) (12,124) Foreign currency translation adjustments (162) (1,461) Balance at the end of the period $ 27,621 $ 25,889 |
Debt
Debt | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt at June 30, 2023 and June 30, 2022 consists of the following (in thousands): 2023 2022 Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs (98) (84) Short-term debt, net 9,902 9,916 Long-term debt $ 1,435,000 $ 770,000 Deferred borrowing costs (3,766) (4,675) Long-term debt, net $ 1,431,234 $ 765,325 Total debt $ 1,441,136 $ 775,241 Credit Facility On June 29, 2022, we entered into a second amended and restated credit agreement (the “Revolving Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as documentation agent. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA (as defined in the Revolving Credit Agreement) for the trailing twelve-month measurement period. The Revolving Credit Facility amends and restates that certain Amended and Restated Credit Agreement, dated as of April 17, 2018, among ResMed, MUFG Union Bank, N.A., Westpac Banking Corporation and the lenders party thereto. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement and First Amendment to Unconditional Guaranty Agreement (the “Term Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger and joint book runner, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner, which amends that certain Syndicated Facility Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty a senior unsecured term credit facility of $200.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Pty Limited’s obligations under the Term Credit Agreement are guaranteed by us and certain of our direct and indirect U.S. subsidiaries. The Revolving Credit Agreement and Term Credit Agreement contain customary covenants, including, in each case, a financial covenant that requires that we maintain a maximum leverage ratio of funded debt to EBITDA (as defined in the Revolving Credit Agreement and Term Credit Agreement, as applicable). The entire principal amounts of the revolving credit facility and term credit facility, and, in each case, any accrued but unpaid interest may be declared immediately due and payable if an event of default occurs, as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable. Events of default under the Revolving Credit Agreement and the Term Credit Agreement include, in each case, failure to make payments when due, the occurrence of a default in the performance of any covenants in the respective agreements or related documents, or certain changes of control of us, or the respective guarantors of the obligations borrowed under the Revolving Credit Agreement and Term Credit Agreement. The Revolving Credit Agreement and Term Credit Agreement each terminate on June 29, 2027, when all unpaid principal and interest under the loans must be repaid. Amounts borrowed under the Term Credit Agreement will also amortize on a semi-annual basis, with a $5.0 million principal payment required on each such semi-annual amortization date. The outstanding principal amounts will bear interest at a rate equal to the Adjusted Term SOFR (as defined in the Revolving Credit Facility) plus 0.75% to 1.50% (depending on the then-applicable leverage ratio) or the Base Rate (as defined in the Revolving Credit Agreement and the Term Credit Agreement, as applicable) plus 0.0% to 0.50% (depending on the then-applicable leverage ratio). At June 30, 2023, the interest rate that was being charged on the outstanding principal amounts was 6.07%. An applicable commitment fee of 0.075% to 0.150% (depending on the then-applicable leverage ratio) applies on the unused portion of the revolving credit facility. As of June 30, 2023, we had $745.0 million available for draw down under the revolving credit facility. We are required to disclose the fair value of financial instruments for which it is practicable to estimate the value, even though these instruments are not recognized at fair value in the consolidated balance sheets. As the Revolving Credit and Term Credit Agreements’ interest rate is calculated as Adjusted Term SOFR plus the spreads described above, its carrying amount is equivalent to its fair value as at June 30, 2023 and June 30, 2022, which was $945.0 million and $280.0 million, respectively. Senior Notes On July 10, 2019, we entered into a Note Purchase Agreement with the purchasers to that agreement, in connection with the issuance and sale of $250.0 million principal amount of our 3.24% senior notes due July 10, 2026, and $250.0 million principal amount of our 3.45% senior notes due July 10, 2029 (collectively referred to as the “Senior Notes”). Our obligations under the Note Purchase Agreement and the Senior Notes are unconditionally and irrevocably guaranteed by certain of our direct and indirect U.S. subsidiaries. The net proceeds from this transaction were used to pay down borrowings on our Revolving Credit Agreement. Under the terms of the Note Purchase Agreement, we agreed to customary covenants including with respect to our corporate existence, transactions with affiliates, and mergers and other extraordinary transactions. We also agreed that, subject to limited exceptions, we will maintain a ratio of consolidated funded debt to consolidated EBITDA (as defined in the Note Purchase Agreement) of no more than 3.50 to 1.00 as of the last day of any fiscal quarter, and will not at any time permit the amount of all priority secured and unsecured debt of us and our subsidiaries to exceed 10.0% of our consolidated tangible assets, determined as of the end of our most recently ended fiscal quarter. This ratio is calculated at the end of each reporting period for which the Note Purchase Agreement requires us to deliver financial statements, using the results of the 12 consecutive month period ending with such reporting period. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases (a) Leases where ResMed is the Lessee We determine whether a contract is, or contains, a lease at inception. Right of Use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received. We determine the lease term as the non-cancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 13 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2023, 2022 and 2021 were $33.6 million, $35.3 million and $35.5 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2023, 2022 and 2021. Future lease payments under non-cancellable operating leases as of June 30, 2023 are as follows (in thousands): Total 2024 2025 2026 2027 2028 Thereafter Minimum lease payments $ 155,299 $ 24,754 $ 20,087 $ 18,199 $ 17,004 $ 16,584 $ 58,671 Less: imputed interest (16,527) Total lease liabilities $ 138,772 As of June 30, 2023, we had additional operating lease commitments of $57.3 million for manufacturing and office space that have not yet commenced. These leases will commence during the years ended June 30, 2024 and June 30, 2025 with lease terms of 10 years to 15 years. The supplemental information related to operating leases for the years ended June 30, 2023 and June 30, 2022 was as follows (in thousands): 2023 2022 Weighted-average inputs: Weighted-average remaining lease term (years) 8.2 8.8 Weighted-average discount rate 2.7 % 2.8 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 29,047 $ 26,462 Right of use assets obtained in exchange for new lease liabilities: $ 16,803 $ 41,382 (b) Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Contract terms for operating lease contracts vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $88.6 million, $90.1 million and $93.4 million for the years ended June 30, 2023, 2022 and 2021, respectively. |
Leases | Leases (a) Leases where ResMed is the Lessee We determine whether a contract is, or contains, a lease at inception. Right of Use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received. We determine the lease term as the non-cancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 13 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2023, 2022 and 2021 were $33.6 million, $35.3 million and $35.5 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2023, 2022 and 2021. Future lease payments under non-cancellable operating leases as of June 30, 2023 are as follows (in thousands): Total 2024 2025 2026 2027 2028 Thereafter Minimum lease payments $ 155,299 $ 24,754 $ 20,087 $ 18,199 $ 17,004 $ 16,584 $ 58,671 Less: imputed interest (16,527) Total lease liabilities $ 138,772 As of June 30, 2023, we had additional operating lease commitments of $57.3 million for manufacturing and office space that have not yet commenced. These leases will commence during the years ended June 30, 2024 and June 30, 2025 with lease terms of 10 years to 15 years. The supplemental information related to operating leases for the years ended June 30, 2023 and June 30, 2022 was as follows (in thousands): 2023 2022 Weighted-average inputs: Weighted-average remaining lease term (years) 8.2 8.8 Weighted-average discount rate 2.7 % 2.8 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 29,047 $ 26,462 Right of use assets obtained in exchange for new lease liabilities: $ 16,803 $ 41,382 (b) Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Contract terms for operating lease contracts vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $88.6 million, $90.1 million and $93.4 million for the years ended June 30, 2023, 2022 and 2021, respectively. |
Leases | Leases (a) Leases where ResMed is the Lessee We determine whether a contract is, or contains, a lease at inception. Right of Use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred, and exclude any lease incentives received. We determine the lease term as the non-cancellable period of the lease, and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage, or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 13 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2023, 2022 and 2021 were $33.6 million, $35.3 million and $35.5 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2023, 2022 and 2021. Future lease payments under non-cancellable operating leases as of June 30, 2023 are as follows (in thousands): Total 2024 2025 2026 2027 2028 Thereafter Minimum lease payments $ 155,299 $ 24,754 $ 20,087 $ 18,199 $ 17,004 $ 16,584 $ 58,671 Less: imputed interest (16,527) Total lease liabilities $ 138,772 As of June 30, 2023, we had additional operating lease commitments of $57.3 million for manufacturing and office space that have not yet commenced. These leases will commence during the years ended June 30, 2024 and June 30, 2025 with lease terms of 10 years to 15 years. The supplemental information related to operating leases for the years ended June 30, 2023 and June 30, 2022 was as follows (in thousands): 2023 2022 Weighted-average inputs: Weighted-average remaining lease term (years) 8.2 8.8 Weighted-average discount rate 2.7 % 2.8 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 29,047 $ 26,462 Right of use assets obtained in exchange for new lease liabilities: $ 16,803 $ 41,382 (b) Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Contract terms for operating lease contracts vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $88.6 million, $90.1 million and $93.4 million for the years ended June 30, 2023, 2022 and 2021, respectively. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | 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 program authorizes us to purchase are in addition to the shares we repurchased on or before February 21, 2014 under our previous programs. There is no expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion of our board of directors. All share repurchases since February 21, 2014 have been executed in accordance with this program. We have temporarily suspended our repurchase program and, accordingly, did not repurchase any shares during fiscal years 2023 or 2022. As of June 30, 2023, we have repurchased a total of 41.8 million shares at a cost of $1.6 billion. Shares that are repurchased are classified as “treasury stock pending future use” and reduce the number of shares outstanding used in calculating earnings per share. At June 30, 2023, 12.9 million additional shares can be repurchased under the approved share repurchase program. Preferred Stock. In April 1997, our board of directors authorized 2.0 million shares of 0.01 par value preferred stock. No such shares were issued or outstanding at June 30, 2023. Stock Options and Restricted Stock Units. We have granted stock options, restricted stock units (“RSUs”) and performance restricted stock units (“PRSUs”) to personnel, including officers and directors, in accordance with the ResMed Inc. 2009 Incentive Award Plan (the “2009 Plan”). Options and restricted stock units vest over one year to four years and the options have expiration dates of seven years from the date of grant. We have granted the options with an exercise price equal to the market value as determined at the date of grant. We have granted PRSUs that are subject to a market condition, with the ultimate realizable number of PRSUs dependent on relative total stockholder return over a period of three years. The maximum amounts to be issued under the awards range from 200% to 225% of the original grant. At the annual meeting of our stockholders in November 2017, our stockholders approved an amendment and restatement to the 2009 Plan to increase the number of shares of common stock that may be issued or transferred pursuant to awards under the 2009 Plan by 7.4 million. The amendment and restatement imposes a maximum award amount which may be granted under the 2009 Plan to non-employee director in a calendar year, which when taken together with any other cash fees earned for services as a non-employee director during the calendar year, has a total value of $0.7 million, or $1.2 million in the case of a non-employee director who is also serving as chairman of our board of directors. The amendment and restatement also increased the maximum amount payable pursuant to cash-denominated performance awards granted in any calendar year from $3.0 million to $5.0 million. In addition, the amendment and restatement extended the existing prohibition on the payment of dividends or dividend equivalents on unvested awards to apply to all awards, including time-based restricted stock, deferred stock and stock payment. The term of the 2009 Plan was extended by four years so that the plan expires on September 11, 2027. The maximum number of shares of our common stock authorized for issuance under the 2009 Plan is 51.1 million. The number of securities remaining available for future issuance under the 2009 Plan at June 30, 2023 is 14.4 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 a purchase price and (ii) one share for each share of common stock delivered in settlement of all other awards. The maximum number of shares, which may be subject to awards granted under the 2009 Plan to any individual during any calendar year, may not exceed 3 million shares of our common stock (except in a participant’s initial year of hiring up to 4.5 million shares of our common stock may be granted). In certain regions, shares are withheld on behalf of employees to satisfy statutory tax withholding requirements upon exercise or vesting of awards. The number of shares withheld is based upon the closing price of our common stock on the trading day of the applicable settlement date. The remaining shares are delivered to the recipient as shares of our common stock. The amount remitted to the tax authorities for the employees’ tax obligation is reflected as a financing activity on our consolidated statements of cash flows. Shares withheld by us as a result of the net settlement are not considered issued and outstanding and are added to the reserves of the 2009 Plan. The total fair value of RSUs and PRSUs that vested during the years ended June 30, 2023, 2022 and 2021, was $66.8 million, $65.5 million and $59.6 million, respectively. The following table summarizes the activity of RSUs, including PRSUs, during year ended June 30, 2023 (in thousands, except years and per share amounts): Restricted Weighted Weighted Outstanding at beginning of period 681 $ 203.46 1.6 Granted 434 224.02 Vested* (416) 160.50 Performance factor adjustment 115 — Forfeited (52) 216.75 Outstanding at end of period 762 $ 227.82 1.7 * Includes 139 thousand shares netted for tax. The following table summarizes option activity during the year ended June 30, 2023 (in thousands, except years and per share amounts): Options Weighted Weighted Outstanding at beginning of period 938 $ 112.91 3.2 Granted 100 223.94 Exercised (157) 62.07 Forfeited — — Outstanding at end of period 881 $ 134.52 3.0 Options exercisable at end of period 734 $ 115.37 2.4 Options vested and expected to vest at end of period 873 $ 133.56 3.0 The aggregate intrinsic value of options exercised during the fiscal years 2023, 2022 and 2021, was $25.4 million, $33.7 million and $8.9 million, respectively. As at June 30, 2023, the aggregate intrinsic value of options outstanding, exercisable, and vested and expected to vest were $76.8 million, $76.6 million and $76.8 million respectively. Employee Stock Purchase Plan (the “ESPP”). Under the ESPP, we offer participants the right to purchase shares of our common stock at a discount during successive offering periods. Each offering period under the ESPP will be for a period of time determined by the board of directors’ compensation committee of no less than 3 months and no more than 27 months. The purchase price for our common stock under the ESPP will be the lower of 85% of the fair market value of our common stock on the date of grant or 85% of the fair market value of our common stock on the date of purchase. An individual participant cannot subscribe for more than $25,000 in common stock during any calendar year. At June 30, 2023, the number of shares remaining available for future issuance under the ESPP is 1.3 million shares. During years ended June 30, 2023, 2022 and 2021, we issued 220,000, 216,000 and 229,000 shares to our employees in two offerings and we recognized $11.5 million, $11.0 million and $10.9 million, respectively, of stock compensation expense associated with the ESPP. Stock–based Employee compensation. We measure the compensation expense of all stock-based awards at fair value on the grant date. We estimate the fair value of stock options and purchase rights granted under the ESPP using the Black-Scholes valuation model. The fair value of restricted stock units is equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to, during the vesting period. The fair value of performance restricted stock units is measured using a Monte-Carlo simulation valuation model. We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest. We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the assumptions in the following tables. The risk-free interest rate is estimated using the U.S. Treasury yield curve and is based on the term of the award. The expected term of awards is estimated from the vesting period of the award, as well as historical exercise behavior, and represents the period of time the awards granted are expected to be outstanding. Expected volatility is estimated based upon the historical volatility of ResMed stock. We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the following assumptions for the years ended June 30, 2023, 2022 and 2021: 2023 2022 2021 Stock options: Weighted average grant date fair value $74.95 $72.16 $53.67 Weighted average risk-free interest rate 3.85% 1.29% 0.37% Expected life in years 4.9 4.9 4.9 Dividend yield 0.78% 0.66% 0.75% Expected volatility 34% 32% 31% ESPP purchase rights: Weighted average grant date fair value $52.38 $50.46 $48.18 Weighted average risk-free interest rate 3.6% 0.3% 0.1% Expected life in years 6 months 6 months 6 months Dividend yield 0.75% - 0.84% 0.63% - 0.98% 0.79% - 0.98% Expected volatility 27% - 34% 20% - 34% 30% - 60% The following table summarizes the total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Cost of sales $ 6,465 $ 5,218 $ 4,153 Selling, general and administrative expenses 53,049 50,791 51,727 Research and development expenses 11,628 9,248 8,047 Stock-based compensation costs 71,142 65,257 63,927 Tax benefit (24,860) (29,262) (23,346) Stock-based compensation costs, net of tax benefit $ 46,282 $ 35,995 $ 40,581 |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | 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 272,104, 67,000 and 141,000 for the years ended June 30, 2023, 2022 and 2021, respectively, as the effect would have been anti-dilutive. Basic and diluted earnings per share for the years ended June 30, 2023, 2022 and 2021 are calculated as follows (in thousands except per share data): 2023 2022 2021 Numerator: Net income $ 897,556 $ 779,437 $ 474,505 Denominator: Basic weighted-average common shares outstanding 146,765 146,066 145,313 Effect of dilutive securities: Stock options and restricted stock units 690 977 1,138 Diluted weighted average shares 147,455 147,043 146,451 Basic earnings per share $ 6.12 $ 5.34 $ 3.27 Diluted earnings per share $ 6.09 $ 5.30 $ 3.24 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before income taxes for the years ended June 30, 2023, 2022 and 2021, was taxed under the following jurisdictions (in thousands): 2023 2022 2021 U.S. $ 128,589 $ (85,919) $ 71,867 Non-U.S. 973,075 1,046,402 811,795 Income before income taxes $ 1,101,664 $ 960,483 $ 883,662 The provision for income taxes is presented below (in thousands): 2023 2022 2021 Current: Federal $ 36,631 $ 4,376 $ (115,109) State 14,142 10,700 9,041 Non-U.S. 198,767 177,788 531,812 249,540 192,864 425,744 Deferred: Federal (21,721) (12,612) (22,791) State (2,389) (2,773) (4,205) Non-U.S. (21,322) 3,567 10,409 (45,432) (11,818) (16,587) Provision for income taxes $ 204,108 $ 181,046 $ 409,157 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2023, 2022 and 2021, to pretax income as a result of the following (in thousands): 2023 2022 2021 Taxes computed at statutory U.S. rate $ 231,349 $ 201,701 $ 185,569 Increase (decrease) in income taxes resulting from: State income taxes, net of U.S. tax benefit 9,448 5,703 4,836 Research and development credit (21,481) (17,517) (20,257) Change in valuation allowance (5,007) 858 (3,785) Effect of non-U.S. tax rates (3,982) (4,384) (12,130) Foreign tax credits (3,988) (2,299) (7,210) Stock-based compensation expense (6,282) (11,294) (4,498) Uncertain tax position — — 248,773 Other 4,051 8,278 17,859 Provision for income taxes $ 204,108 $ 181,046 $ 409,157 We reported net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2023 and June 30, 2022, as follows (in thousands): 2023 2022 Non-current deferred tax asset $ 132,974 $ 79,746 Non-current deferred tax liability (90,650) (9,714) Net deferred tax asset $ 42,324 $ 70,032 The components of our deferred tax assets and liabilities at June 30, 2023 and June 30, 2022, are as follows (in thousands): 2023 2022 Deferred tax assets: Employee liabilities $ 34,314 $ 28,556 Tax credit carry overs 6,051 7,723 Inventories 13,212 10,570 Provision for warranties 5,348 4,814 Provision for doubtful debts 6,103 5,096 Net operating loss carryforwards 22,387 27,490 Capital loss carryover 917 4,715 Stock-based compensation expense 8,670 6,425 Deferred revenue 23,908 25,748 Research and development capitalization 111,704 82,074 Lease liabilities 21,347 21,702 Hedging contracts 27,666 — Other 454 (3,395) 282,081 221,518 Less valuation allowance (8,536) (13,572) Deferred tax assets 273,545 207,946 Deferred tax liabilities: Goodwill and other intangibles (198,418) (108,078) Right of use assets (20,501) (20,345) Property, plant and equipment (12,302) (9,491) Deferred tax liabilities (231,221) (137,914) Net deferred tax asset $ 42,324 $ 70,032 As of June 30, 2023, we had $15.6 million of U.S. federal and state net operating loss carryforwards and $6.1 million of non-U.S. net operating loss carryforwards, which expire in various years beginning in 2024 or carry forward indefinitely. The valuation allowance at June 30, 2023 relates to a provision for uncertainty of the utilization of net operating loss carryforwards of $0.8 million and capital loss and other items of $7.8 million. We believe that it is more likely than not that the benefits of deferred tax assets, net of any valuation allowance, will be realized. A substantial portion of our manufacturing operations and administrative functions in Singapore operate under certain tax holidays and tax incentive programs that will expire in whole or in part at various dates through June 30, 2030. The end of certain tax holidays may be extended if specific conditions are met. The net impact of these tax holidays and tax incentive programs increased our net income by $40.5 million ($0.27 per diluted share) for the year ended June 30, 2023, $38.0 million ($0.26 per diluted share) for the year ended June 30, 2022, and $33.6 million ($0.23 per diluted share) for the year ended June 30, 2021. As a result of the Tax Cuts and Jobs Act of 2017 (the “U.S. Tax Act”), we have treated all non-U.S. historical earnings as taxable. Therefore, future repatriation of cash held by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated. The total amount of these undistributed earnings at June 30, 2023 amounted to approximately $4.2 billion. In the event our non-U.S. earnings had not been permanently reinvested, approximately $5.5 million in U.S. state deferred taxes would have been recognized in the consolidated financial statements. The U.S. Tax Act also introduced U.S. taxation on certain global intangible low-taxed income (“GILTI”). We have elected to account for tax expense attributable to GILTI tax as a period cost when incurred. 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. We recognize 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, 2023 is not material to our results of operations, financial condition or cash flows, and if recognized, would not have a material impact on our effective tax rate. Our income tax returns are based on calculations and assumptions subject to audit by various tax authorities. In addition, the calculation of our tax liabilities involves dealing with uncertainties in the application of complex tax laws. We regularly assess the potential outcomes of examinations by tax authorities in determining the adequacy of our provision for income taxes. Any final assessment resulting from tax audits may result in material changes to our past or future taxable income, tax payable or deferred tax assets, and may require us to pay penalties and interest that could materially adversely affect our financial results. On September 19, 2021, we concluded the settlement agreement with the Australian Taxation Office (“ATO”) in relation to the previously disclosed transfer pricing dispute for the tax years 2009 through 2018 (“ATO settlement”). The ATO settlement fully resolved the dispute for all prior years, with no admission of liability and provides clarity in relation to certain future taxation principles. The final net impact of the ATO settlement was recorded during the years ended June 30, 2021 and 2022 in the amount of $238.7 million, which represents a gross amount of $381.7 million, including interest and penalties of $48.1 million, and adjustments for credits and deductions of $143.0 million. As a result of the ATO settlement and due to movements in foreign currencies, we recorded a benefit of $14.1 million within other comprehensive income, and a $4.1 million reduction of tax credits, which was recorded to income tax expense. As a result of the ATO settlement, we reversed our previously recorded uncertain tax position. On September 28, 2021, we remitted final payment to the ATO of $284.8 million, consisting of the agreed settlement amount of $381.7 million less prior remittances made to the ATO of $96.9 million. Tax years 2018 to 2022 remain subject to future examination by the major tax jurisdictions in which we are subject to tax. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We have two operating segments, which are the Sleep and Respiratory Care segment and the SaaS segment. We evaluate the performance of our segments based on net sales and income from operations. The accounting policies of the segments are the same as those described in note 2 – Summary of Significant Accounting Policies. Segment net sales and segment income from operations do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed. Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, acquisition related expenses, net interest expense (income), loss attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our Chief Operating Decision Maker evaluate the operating segments using discrete asset information. Additionally, effective in the first quarter of fiscal year 2023, we updated the extent of allocation and method of attribution of certain shared costs that are principally managed at the corporate level as part of our evaluation of segment operating performance. As a result, certain shared administrative costs, including shared IT, legal and other administrative functions, which were previously included in segment operating results, are now reported in Corporate costs within our reconciliation of segment operating profit to income before income taxes. The financial information presented herein reflects the impact of the preceding reporting change for all periods presented. The table below presents a reconciliation of net revenues, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Net revenue by segment Sleep and Respiratory Care $ 3,725,017 $ 3,177,298 $ 2,823,235 Software as a Service 497,976 400,829 373,590 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 Depreciation and amortization by segment Sleep and Respiratory Care $ 82,544 $ 79,367 $ 73,151 Software as a Service 9,119 7,315 5,230 Amortization of acquired intangible assets and corporate assets 73,493 72,927 78,377 Total $ 165,156 $ 159,609 $ 156,758 Net operating profit by segment Sleep and Respiratory Care $ 1,502,475 $ 1,311,559 $ 1,170,305 Software as a Service 115,529 93,044 92,357 Total $ 1,618,004 $ 1,404,603 $ 1,262,662 Reconciling items Corporate costs $ 393,591 $ 331,725 $ 268,874 Amortization of acquired intangible assets 72,416 70,728 76,205 Restructuring expenses 9,177 — 13,905 Acquisition related expenses 10,949 1,864 — Interest expense (income), net 47,379 22,312 23,627 Loss attributable to equity method investments 7,265 8,486 11,205 (Gain) loss on equity investments (9,922) 12,202 (14,515) Gain on insurance recoveries (20,227) — — Other, net 5,712 (3,197) (301) Income before income taxes $ 1,101,664 $ 960,483 $ 883,662 The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 U.S., Canada and Latin America Devices $ 1,444,361 $ 1,070,420 $ 863,661 Masks and other 1,039,026 911,387 841,452 Total U.S., Canada and Latin America $ 2,483,387 $ 1,981,807 $ 1,705,113 Combined Europe, Asia and other markets Devices $ 826,341 $ 796,488 $ 746,379 Masks and other 415,289 399,003 371,743 Total Combined Europe, Asia and other markets $ 1,241,630 $ 1,195,491 $ 1,118,122 Global revenue Devices $ 2,270,702 $ 1,866,908 $ 1,610,040 Masks and other 1,454,315 1,310,390 1,213,195 Total Sleep and Respiratory Care $ 3,725,017 $ 3,177,298 $ 2,823,235 Software as a Service 497,976 400,829 373,590 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 Revenue information by geographic area for the years ended June 30, 2023, 2022 and 2021 is summarized below (in thousands): 2023 2022 2021 United States $ 2,719,923 $ 2,249,381 $ 1,962,721 Rest of the World 1,503,070 1,328,746 1,234,104 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 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, 2023 and 2022 is summarized below (in thousands): 2023 2022 Australia $ 200,752 $ 192,833 United States 164,448 169,090 Singapore 83,711 72,821 Rest of the World 88,945 63,437 Total $ 537,856 $ 498,181 |
Employee Retirement Plans
Employee Retirement Plans | 12 Months Ended |
Jun. 30, 2023 | |
Retirement Benefits [Abstract] | |
Employee Retirement Plans | Employee Retirement Plans We contribute to a number of employee retirement plans for the benefit of our employees. Details of the main plans are as follows: Australia We contribute to defined contribution plans for each employee resident in Australia at the rate of approximately 10.5% of salaries. Employees may contribute additional funds to the plans. All Australian employees, after serving a qualifying period, are entitled to benefits on retirement, disability or death. Our total contributions to the plans for the years ended June 30, 2023, 2022 and 2021, were $13.0 million, $11.8 million and $10.7 million, respectively. United States We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 4.0% of the employee’s salary. Our total contributions to the plan were $12.7 million, $11.9 million and $9.6 million in fiscal 2023, 2022 and 2021, respectively. Singapore We sponsor a defined contribution plan available to substantially all domestic employees. Company contributions to this plan are based on a percentage of employee contributions to a maximum of 17.0% of the employee’s salary. Our total contributions to the plan were $3.6 million, $3.1 million and $2.5 million in fiscal 2023, 2022 and 2021, respectively. |
Legal Actions, Contingencies An
Legal Actions, Contingencies And Commitments | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Actions, Contingencies And Commitments | Legal Actions, Contingencies and Commitments Litigation In the normal course of business, we are subject to routine litigation incidental to our business. While the results of this litigation cannot be predicted with certainty, we believe that their final outcome will not, individually or in aggregate, have a material adverse effect on our consolidated financial statements taken as a whole. On June 2, 2021, New York University ("NYU") filed a complaint for patent infringement in the United States District Court, District of Delaware against ResMed Inc., case no. 1:21-cv-00813 (JPM). The complaint alleges that the AutoSet or AutoRamp features of ResMed’s AirSense 10 AutoSet flow generators infringe one or more claims of various NYU patents, including U.S. Patent Nos. 6,988,994; 9,108,009; 9,168,344; 9,427,539; 9,533,115; 9,867,955; and 10,384,024. According to the complaint, the NYU patents are directed to systems and methods for diagnosis and treating sleeping disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. We answered the complaint on September 30, 2021 and filed a motion to dismiss the complaint on the basis that the patents are invalid because the subject matter of the patents is not patentable under the Supreme Court and Federal Circuit precedent. The motion to dismiss was granted in part and denied in part. We have also requested that the court dismiss the case based on NYU’s license of the patents to Fisher & Paykel and Fisher & Paykel’s prior settlement with us; that request is pending. In December 2022, the Patent Trial and Appeals Board (“PTAB”) of the Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU against us, determining that there is a reasonable likelihood that we will prevail. The PTAB’s final written decisions on the validity of the asserted claims is expected by December 2023. On April 10, 2023, the district court granted our request to stay the case pending the PTAB’s decision on the validity of the patents asserted by NYU. On January 27, 2021, the International Trade Commission ("ITC") instituted In Re Certain UMTS and LTE Cellular Communications Modules and Products Containing the Same, Investigation No. 337-TA-1240, by complainants Philips RS North America, LLC and Koninklijke Philips N.V. (collectively “Philips”) against Quectel Wireless Solutions Co., Ltd; Thales DIS AIS USA, LLC, Thales DIS AIS Deutschland GmbH; Telit Wireless Solutions, Inc., Telit Communications PLC, CalAmp. Corp., Xirgo Technologies, LLC, and Laird Connectivity, Inc. (collectively “respondents”). In the ITC investigation, Philips seeks an order excluding communications modules, and products that contain them, from importation into the United States based on alleged infringement of 3G and 4G standard essential patents held by Philips. On October 6-14, 2021, the administrative law judge held a hearing on the merits. The administrative law judge issued an initial determination on April 1, 2022, finding no violation of any of the Philips' patents asserted in the ITC. Philips sought review by the full ITC. On July 6, 2022, the Commission affirmed the administrative law judge’s determination that there was no violation of asserted Philips' patents. The Commission terminated the ITC proceedings. Philips did not appeal the ITC’s decision. On December 17, 2020, Philips filed companion cases for patent infringement against the same defendants in the United States District Court for the District of Delaware, case nos. 1:20-cv-01707, 01708, 01709, 01710, 01711, and 01713 (CFC) seeking damages, an injunction, and a declaration from the court on the amount of a fair reasonable and non-discriminatory license rate for the standard essential patents it is asserting against the communications module defendants. The district court cases were stayed pending the resolution of the ITC proceedings. The parties have returned to the district court for further proceedings. We were not a party to the ITC investigation, and we are not a party to the district court cases, but we sell products that incorporate communications modules at issue in the district court case. On June 16, 2022, Cleveland Medical Devices Inc. ("Cleveland Medical") filed suit for patent infringement against ResMed Inc. in the United States District Court for the District of Delaware, case no. 1:22-cv-00794. Cleveland Medical asserts that numerous ResMed connected devices, when combined with certain ResMed data platforms and/or software, including AirView and ResScan, infringe one or more of eight Cleveland Medical patents, including U.S. Patent Nos. 10,076,269; 10,426,399; 10,925,535; 11,064,937; 10,028,698; 10,478,118; 11,202,603; and 11,234,637. We have moved to dismiss the action because Cleveland Medical sued the wrong ResMed entity. We have also moved to dismiss all claims based on U.S. Patent No. 10,076,269, as well as indirect and willful infringement allegations as to the remaining patents asserted against ResMed; that motion is pending. On March 23, 2023, we filed a petition with the Patent Trial and Appeals Board (“PTAB”) of the Patent and Trademark Office seeking review of the validity of Cleveland Medical U.S. Patent 10,076,269. The PTAB will decide whether to review the validity of the ‘269 patent by September 2023. The parties are engaged in discovery in the Delaware action. The case is set for trial in August 2024. On March 23, 2023, ResMed Corp. filed suit in the Southern District of California, case no. 23-cv-00500-TWR-JLB, seeking a declaration that it does not infringe U.S. patent number 11,602,284 recently issued to Cleveland Medical. Cleveland Medical has asked the court to dismiss the California case or to move it to Delaware. Based on currently available information, we are unable to make a reasonable estimate of loss or range of losses, if any, arising from matters that remain open. Contingent Obligations Under Recourse Provisions We use independent financing institutions to offer some of our customers financing for the purchase of some of our products. Under these arrangements, if the customer qualifies under the financing institutions’ credit criteria and finances the transaction, the customers repay the financing institution on a fixed payment plan. For some of these arrangements, the customer’s receivable balance is with limited recourse whereby we are responsible for repaying the financing company should the customer default. We record a contingent provision, which is estimated based on historical default rates. This is applied to receivables sold with recourse and is recorded in accrued expenses. During the year ended June 30, 2023 and 2022, receivables sold with limited recourse were $181.2 million and $157.6 million, respectively. As of June 30, 2023, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $32.6 million and $0.6 million, respectively. As of June 30, 2022, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $24.2 million and $2.1 million, respectively. Commitments In the normal course of business, we enter into agreements to purchase goods or services that are not cancelable without penalty, primarily related to supply arrangements. Obligations under our purchase agreements at June 30, 2023 were as follows (in thousands): Total Fiscal Years Ending June 30 2024 2025 2026 2027 2028 Thereafter Minimum purchase obligations $ 1,390,640 $ 1,034,859 $ 345,033 $ 10,013 $ 735 $ — $ — |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Fair Values of Derivative Instruments The following table presents our assets and liabilities related to derivative instruments on a gross basis within the consolidated balance sheets (in thousands): June 30, June 30, Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 2,126 $ 151 Prepaid expenses and other current assets Foreign currency hedging instruments 279 9 Prepaid taxes and other non-current assets Total derivative assets $ 2,405 $ 160 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 19,743 $ — Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 40,803 — Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 9,558 1,947 Accrued expenses Foreign currency hedging instruments 595 — Other long-term liabilities Total derivative liabilities $ 70,699 $ 1,947 Fair Value Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized in other comprehensive income (loss) $ (5,414) $ — $ — Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) 3,754 — — Gain (loss) recognized on cross-currency swap in other, net (14,329) — — Gain (loss) recognized on intercompany debt in other, net 14,329 — — Net Investment Hedge Gains (Losses) We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ (40,803) $ — $ — Gain (loss) recognized from the excluded components in interest (expense) income, net 9,482 — — Non-designated Derivative Gains (Losses) We recognized the following gains (losses) in the consolidated statement of operations on derivatives not designated as hedging instruments (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized on foreign currency hedging instruments in other, net $ 8,576 $ (19,511) $ 18,544 Gain (loss) recognized on other foreign-currency-denominated transactions in other, net (12,780) 22,320 (19,297) Total (4,204) 2,809 (753) |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations On November 21, 2022, we completed our acquisition of 100% of the shares in MediFox-Dan Investment GmbH and its subsidiaries (“MEDIFOX DAN”), a German leader in software solutions for a wide variety of out-of-hospital care providers, for $997.5 million. This acquisition has been accounted for as a business combination using purchase accounting and included in our consolidated financial statements from November 21, 2022. The acquisition was paid for using funds drawn down from our Revolving Credit Agreement. The total purchase price was allocated to MEDIFOX DAN's tangible and identifiable intangible assets and liabilities based upon estimated fair values as of the November 21, 2022 closing date, as follows (in thousands): Final Intangible assets - useful life Cash $ 7,372 Accounts receivable 16,096 Property, plant and equipment 7,731 Equity method investment 57,298 Other assets 18,523 Accounts payable and accrued expenses (19,359) Deferred revenue (18,349) Other liabilities (11,623) Identifiable intangible assets: Developed technology 43,081 6 - 7 years Customer relationships 175,445 11 - 13 years Trade names 32,050 10 years Deferred tax liabilities (78,458) Goodwill 767,709 Purchase price $ 997,516 We completed the purchase price allocation in relation to this acquisition during the quarter ended June 30, 2023. The cost of the acquisition was allocated to the assets acquired and liabilities assumed based on estimates of their fair values at the date of acquisition. Key assumptions used to determine the fair value of intangible assets acquired included forecast revenue growth rates, forecast earnings before interest, tax, depreciation, and amortization, and weighted average cost of capital. The goodwill recognized as part of the acquisition is reflected in our SaaS segment and is not deductible for tax purposes. It mainly represents the synergies that are unique to our combined businesses and the potential for new products and services to be developed in the future. Pro forma results of operations have not been presented because the effects of this acquisition were not material to our consolidated statements of income. We recorded acquisition related expenses of $10.9 million and $1.9 million during the years ended June 30, 2023 and June 30, 2022, respectively. We did not have material acquisition related expenses during the year ended June 30, 2021. |
Restructuring Expenses
Restructuring Expenses | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Expenses During the year ended June 30, 2023, we incurred restructuring expenses of $9.2 million associated with the reorganization and rationalization of our operations. We recorded the full amount of $9.2 million during the year ended June 30, 2023, of which $6.7 million related to our Sleep and Respiratory Care segment and $2.5 million related to our SaaS segment. The restructuring expenses consisted primarily of severance to employees and were separately disclosed within our operating expenses. We had $7.8 million remaining in our accruals at year end which will be paid during the year ended June 30, 2024. We did not incur material restructuring expenses during the year ended June 30, 2022. During the year ended June 30, 2021, we closed our Portable Oxygen Concentrator business, which was part of the Sleep and Respiratory Care segment. We recognized restructuring expenses of $13.9 million primarily related to inventory write- |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts and Reserves | 12 Months Ended |
Jun. 30, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II Valuation and Qualifying Accounts and Reserves | SCHEDULE II RESMED INC. AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS AND RESERVES June 30, 2023, 2022 and 2021 (in thousands) Balance at Charged to costs and expenses Other Balance at Year ended June 30, 2023 Applied against asset account Allowance for trade accounts receivable $ 23,259 $ 5,770 $ (5,426) $ 23,603 Year ended June 30, 2022 Applied against asset account Allowance for trade accounts receivable $ 32,138 $ 2,620 $ (11,499) $ 23,259 Year ended June 30, 2021 Applied against asset account Allowance for trade accounts receivable (1) $ 30,013 $ 7,805 $ (5,680) $ 32,138 (1) Beginning balance is adjusted to reflect the cumulative pre-tax effect of adopting Accounting Standards Update No. 2016-13, “Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments” (Topic 326), effective July 1, 2021. See accompanying report of independent registered public accounting firm. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Pay vs Performance Disclosure | |||
Net income | $ 897,556 | $ 779,437 | $ 474,505 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Jun. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 12 Months Ended |
Jun. 30, 2023 | |
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 intercompany transactions and balances have been eliminated in consolidation. The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management estimates and assumptions that affect amounts reported in the consolidated financial statements and accompanying notes. Certain prior period amounts have been reclassified to conform to the current period presentation. Actual results could differ from management’s estimates. |
Revenue Recognition | Revenue Recognition In accordance with Accounting Standard Codification (“ASC”) Topic 606, “Revenue from Contracts with Customers”, we account for a contract with a customer when there is a legally enforceable contract, the rights of the parties are identified, the contract has commercial substance, and collectability of the contract consideration is probable. We have determined that we have two operating segments, which are the sleep and respiratory disorders sector of the medical device industry (“Sleep and Respiratory Care”) and the supply of business management software as a service to out-of-hospital care providers (“SaaS”). Our Sleep and Respiratory Care revenue relates primarily to the sale of our products that are therapy-based equipment. Some contracts include additional performance obligations such as the provision of extended warranties and provision of data for patient monitoring. Our SaaS revenue relates to the provision of software access with ongoing support and maintenance services as well as professional services such as training and consulting. Disaggregation of revenue See Note 13 – Segment Information for our net revenue disaggregated by segment, product and region for the years ended June 30, 2023, 2022 and 2021. Performance obligations and contract balances Revenue is recognized when performance obligations under the terms of a contract with a customer are satisfied; generally, this occurs with the transfer of risk and/or control of our products at a point in time. For products in our Sleep and Respiratory Care business, we transfer control and recognize a sale when products are shipped to the customer in accordance with the contractual shipping terms. For our SaaS business, revenue associated with cloud-hosted services are recognized as they are provided. We defer the recognition of a portion of the consideration received when performance obligations are not yet satisfied. Consideration received from customers in advance of revenue recognition is classified as deferred revenue. Performance obligations resulting in deferred revenue in our Sleep and Respiratory Care business relate primarily to extended warranties on our devices and the provision of data for patient monitoring. Performance obligations resulting in deferred revenue in our SaaS business relate primarily to the provision of software access with maintenance and support over an agreed term and material rights associated with future discounts upon renewal of some SaaS contracts. Generally, deferred revenue will be recognized over a period of one year to five years. Our contracts do not contain significant financing components. The following table summarizes our contract balances as of June 30, 2023 and 2022 (in thousands): 2023 2022 Balance sheet caption Contract assets Accounts receivable, net $ 704,909 $ 575,950 Accounts receivable, net Unbilled revenue, current 31,521 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 10,078 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (138,072) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (119,186) (95,455) Deferred revenue (non-current liabilities) Transaction price determination Revenue is measured as the amount of consideration we expect to receive in exchange for transferring goods or providing services. In our Sleep and Respiratory Care segment, the amount of consideration received and revenue recognized varies with changes in marketing incentives (e.g. rebates, discounts, free goods) and returns offered to our customers and their customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on an analysis of our historical experience. However, returns of products, excluding warranty-related returns, have historically been infrequent and insignificant. We adjust the estimate of revenue at the earlier of when the most likely amount of consideration can be estimated, the amount expected to be received changes, or when the consideration becomes fixed. We offer our Sleep and Respiratory Care customers cash or product rebates based on volume or sales targets measured over quarterly or annual periods. We estimate rebates based on each customer’s expected achievement of its targets. In accounting for these rebate programs, we reduce revenue ratably as sales occur over the rebate period by the expected value of the rebates to be returned to the customer. Rebates measured over a quarterly period are updated based on actual sales results and, therefore, no estimation is required to determine the reduction to revenue. For rebates measured over annual periods, we update our estimates each quarter based on actual sales results and updated forecasts for the remaining rebate periods. We participate in programs where we issue credits to our Sleep and Respiratory Care distributors when they are required to sell our products below negotiated list prices if we have preexisting contracts with the distributors' customers. We reduce revenue for future credits at the time of sale to the distributor, which we estimate based on historical experience using the expected value method. We also offer discounts to both our Sleep and Respiratory Care as well as our SaaS customers as part of normal business practice and these are deducted from revenue when the sale occurs. When Sleep and Respiratory Care or SaaS contracts have multiple performance obligations, we generally use an observable price to determine the stand-alone selling price by reference to pricing and discounting practices for the specific product or service when sold separately to similar customers. Revenue is then allocated proportionately, based on the determined stand-alone selling price, to each performance obligation. An allocation is not required for many of our Sleep and Respiratory Care contracts that have a single performance obligation, which is the shipment of our therapy-based equipment. Accounting and practical expedient elections We have elected to account for shipping and handling activities associated with our Sleep and Respiratory Care segment as a fulfillment cost within cost of sales, and record shipping and handling costs collected from customers in net revenue. We have also elected for all taxes assessed by government authorities that are imposed on and concurrent with revenue-producing transactions, such as sales and value added taxes, to be excluded from revenue and presented on a net basis. We have adopted two practical expedients including the “right to invoice” practical expedient, which allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date and which is relevant for some of our SaaS contracts. The second practical expedient adopted permits relief from considering a significant financing component when the payment for the good or service is expected to be one year or less. |
Concentration of Credit Risk and Significant Customers | Concentration of Credit Risk and Significant CustomersFinancial instruments that are potentially subject to concentrations of credit risk consist primarily of cash and cash equivalents, marketable securities, derivatives and trade receivables. Our cash and cash equivalents are generally held with large, diverse financial institutions to reduce the amount of exposure to any single financial institution. Our derivative contracts are transacted with various financial institutions with high credit standings and any exposure to counterparty credit-related losses in these contracts is largely mitigated with collateralization and master-netting agreements. The risk with respect to trade receivables is mitigated by credit evaluations we perform on our customers, the short duration of our payment terms for the significant majority of our customer contracts and by the diversification of our customer base. No single customer accounted for 10% or more of our total revenues for any of the periods presented. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of financial instruments is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure our financial instruments at fair value at each reporting period using a fair value hierarchy that requires that we maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs that are supported by little or no market activity. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash equivalents include certificates of deposit and other highly liquid investments and we state them at cost, which approximates market. We consider investments with original maturities of 90 days or less to be cash equivalents for purposes of the consolidated statements of cash flows. |
Inventories | Inventories We state inventories at the lower of cost (determined principally by the first-in, first-out method) or net realizable value. We include material, labor and manufacturing overhead costs in finished goods and work-in-process inventories. We review and provide for any product obsolescence in our manufacturing and distribution operations by assessing throughout the year individual products and components (based on estimated future usage and sales). |
Property, Plant and Equipment | Property, Plant and Equipment We record property, plant and equipment, including rental and demonstration equipment at cost. We compute depreciation expense using the straight-line method over the estimated useful lives of the assets. Useful lives are generally two years to ten years except for buildings which are depreciated over an estimated useful life of forty years and leasehold improvements, which we amortize over the shorter of the useful life or 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 ten years. If a patent is superseded or a product is retired, any unamortized costs are written off immediately.We amortize all of our other intangible assets on a straight-line basis over their estimated useful lives, which range from two years to fifteen years. We take into account events or circumstances that warrant revised estimates of useful lives or that indicate that impairment exists and, at least annually, evaluate the recoverability of intangible assets. We have not identified any impairment of intangible assets during any of the periods presented. |
Goodwill | Goodwill We conduct our annual review for goodwill impairment during the final quarter of the fiscal year. Our goodwill impairment review is performed at our reporting unit level, which is one level below our operating segments and involves the following steps: Step 0 or Qualitative assessment – Evaluate qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. The factors we consider include, but are not limited to, macroeconomic conditions, industry and market considerations, cost factors, overall financial performance or events-specific to that reporting unit. If or when we determine it is more likely than not that the fair value of a reporting unit is less than the carrying amount, including goodwill, we would move to Step 1 of the quantitative method. Step 1 – Compare the fair value for each reporting unit to its carrying value, including goodwill. Fair value is determined based on estimated discounted cash flows. A goodwill impairment charge is recognized for the amount that the carrying amount of a reporting unit, including goodwill, exceeds its fair value, limited to the total amount of goodwill allocated to that reporting unit. If a reporting unit’s fair value exceeds the carrying value, no further work is performed and no impairment charge is necessary. During the annual reviews for the years ended June 30, 2023, 2022 and 2021, we completed a Step 0 or Qualitative assessment and determined it was more likely than not that the fair value of our reporting units exceeded their carrying amounts, including goodwill, and therefore goodwill was not impaired. |
Equity Investments | Equity investments We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our accounting for investments in marketable equity securities, non-marketable equity securities, and investments accounted for under the equity method. Our marketable equity securities are publicly traded stocks measured at fair value and classified within Level 1 in the fair value hierarchy because we use quoted prices for identical assets in active markets. Marketable equity securities are recorded in prepaid expenses and other current assets on the consolidated balance sheets. Non-marketable equity securities consist of investments in privately held companies without readily determinable fair values and are recorded in prepaid taxes and other non-current assets on the consolidated balance sheets. Non-marketable equity securities are reported at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar investment of the same issuer. We assess non-marketable equity securities at least quarterly for impairment and consider qualitative and quantitative factors including the investee's financial metrics, product and commercial outlook and cash usage. All gains and losses on marketable and non-marketable equity securities, realized and unrealized, are recognized in gain (loss) on equity investments as a component of other income (loss), net on the consolidated statements of income. |
Research and Development | Research and Development We record all research and development expenses in the period we incur them. |
Foreign Currency | Foreign Currency The consolidated financial statements of our non-U.S. subsidiaries, whose functional currencies are other than the U.S. dollar, are translated into U.S. dollars for financial reporting purposes. We translate assets and liabilities of non-U.S. subsidiaries whose functional currencies are other than the U.S. dollar at period end exchange rates but translate revenue and expense transactions at average exchange rates for the period. We recognize cumulative translation adjustments as part of comprehensive income, as detailed in the consolidated statements of comprehensive income, and include those adjustments in accumulated other comprehensive income in the consolidated balance sheets until such time the relevant subsidiary is sold or substantially or completely liquidated. We reflect gains and losses on transactions denominated in other than the functional currency of an entity in our results of operations. |
Foreign Exchange Risk Management | Foreign Exchange Risk Management We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments. Fair Value and Net Investment Hedging On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as the hedged item. The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item as the hedged item, other, net, in the consolidated statement of income. The initial fair value of hedge components excluded from the assessment of effectiveness is recognized in the statement of income under a systematic and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and the amounts recognized in earnings is recorded as a component of other comprehensive income. The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be recognized in interest (expense) income, net. The notional value of outstanding foreign cross-currency swaps was $1,046.6 million at June 30, 2023. These contracts mature at various dates prior to December 31, 2029. Non-Designated Hedges We transact business in various foreign currencies, including a number of major European currencies as well as the Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore manufacturing activities, and international sales operations. We have established a foreign currency hedging program using purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not exceed two years. The purpose of this hedging program is to economically manage the financial impact of foreign currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All movements in the fair value of the foreign currency instruments are recorded within other, net in our consolidated statements of income. The notional value of the outstanding non-designated hedges was $954.7 million and $602.0 million at June 30, 2023 and June 30, 2022, respectively. These contracts mature at various dates prior to December 15, 2024. We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy. 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. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. We measure deferred tax assets and liabilities using the enacted tax rates we expect to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. We recognize the impact of a tax position in the consolidated financial statements only if that position is more likely than not of being sustained upon examination by taxing authorities, based on the technical merits of the position. Any interest and penalties related to uncertain tax positions are reflected in income tax expense. |
Provision for Warranty | Provision for WarrantyWe provide for the estimated cost of product warranties on our Sleep and Respiratory Care products at the time the related revenue is recognized. We determine the amount of this provision by using a financial model, which takes into consideration actual historical expenses and potential risks associated with our different products. We use this financial model to calculate the future probable expenses related to warranty and the required level of the warranty provision. Although we engage in product improvement programs and processes, our warranty obligation is affected by product failure rates and costs incurred to correct those product failures. Should actual product failure rates or estimated costs to repair those product failures differ from our estimates, we would be required to revise our estimated warranty provision. |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses on customer receivables based on our historical write-off experience, an assessment of our customers’ financial conditions and available information that is relevant to assessing the collectability of cash flows, which includes current conditions and forecasts about future economic conditions. Customer receivables are charged against the allowance when they are deemed uncollectible. We are also contingently liable, within certain limits, in the event of a customer default, to independent financing companies in connection with customer financing programs. We monitor the collection status of these installment receivables and provide for estimated losses separately under accrued expenses within our consolidated balance sheets based upon our historical collection experience with such receivables and a current assessment of our credit exposure. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We periodically evaluate the carrying value of long-lived assets to be held and used, including certain identifiable intangible assets, when events and circumstances indicate that the carrying amount of an asset may not be recovered. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future net cash flows expected to be generated by the asset. If assets are considered to be impaired, we recognize as the impairment the amount by which the carrying amount of the assets exceeds the fair value of the assets. We report assets to be disposed of at the lower of the carrying amount or fair value less costs to sell. We did not recognize impairment charges in relation to long-lived assets during the fiscal years ended June 30, 2023, 2022 and 2021. |
Contingencies | ContingenciesWe record a liability in the consolidated financial statements for loss contingencies when a loss is known or considered probable and the amount can be reasonably estimated. If the reasonable estimate of a known or probable loss is a range, and no amount within the range is a better estimate than any other, the minimum amount of the range is accrued. If a loss is reasonably possible but not known or probable, and can be reasonably estimated, the estimated loss or range of loss is disclosed. When determining the estimated loss or range of loss, significant judgment is required to estimate the amount and timing of a loss to be recorded. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Contract Balances | The following table summarizes our contract balances as of June 30, 2023 and 2022 (in thousands): 2023 2022 Balance sheet caption Contract assets Accounts receivable, net $ 704,909 $ 575,950 Accounts receivable, net Unbilled revenue, current 31,521 25,692 Prepaid expenses and other current assets Unbilled revenue, non-current 10,078 8,840 Prepaid taxes and other non-current assets Contract liabilities Deferred revenue, current (138,072) (108,667) Deferred revenue (current liabilities) Deferred revenue, non-current (119,186) (95,455) Deferred revenue (non-current liabilities) |
Supplemental Balance Sheet In_2
Supplemental Balance Sheet Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Supplemental Balance Sheet Information [Abstract] | |
Schedule of Inventories | Components of selected captions in the consolidated balance sheets consisted of the following as of June 30, 2023 and June 30, 2022 (in thousands): Inventories 2023 2022 Raw materials $ 459,126 $ 355,225 Work in progress 3,956 3,077 Finished goods 534,930 385,608 Total inventories $ 998,012 $ 743,910 |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets 2023 2022 Prepaid taxes $ 114,009 $ 99,352 Prepaid inventories 143,084 107,291 Other prepaid expenses and current assets 179,925 131,265 Total prepaid expenses and other current assets $ 437,018 $ 337,908 |
Schedule of Components of Property, Plant and Equipment | Property, plant and equipment 2023 2022 Machinery and equipment $ 443,781 $ 390,634 Computer equipment and software 189,568 199,671 Furniture and fixtures 61,663 54,098 Vehicles and aircraft 20,587 19,231 Clinical, demonstration and rental equipment 115,696 105,440 Leasehold improvements 91,499 80,855 Land 52,055 51,864 Buildings 231,019 229,502 Property, plant and equipment, at cost $ 1,205,868 $ 1,131,295 Accumulated depreciation and amortization (668,012) (633,114) Property, plant and equipment, net $ 537,856 $ 498,181 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets, net (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Carrying Amount of Goodwill | Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2023 (in thousands): 2023 Sleep and SaaS Total Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442 Business acquisitions 19,281 767,709 786,990 Foreign currency translation adjustments 9,115 37,752 46,867 Balance at the end of the period $ 670,120 $ 2,100,179 $ 2,770,299 |
Schedule of Other Intangible Assets, Net | Other intangibles, net are comprised of the following as of June 30, 2023 and June 30, 2022 (in thousands): 2023 2022 Developed/core product technology $ 398,740 $ 350,671 Accumulated amortization (265,802) (239,647) Developed/core product technology, net 132,938 111,024 Customer relationships 443,652 257,034 Accumulated amortization (124,220) (91,731) Customer relationships, net 319,432 165,303 Other intangibles 244,373 204,580 Accumulated amortization (144,402) (134,963) Other intangibles, net 99,971 69,617 Total other intangibles, net $ 552,341 $ 345,944 |
Schedule of Amortization Expense Related to Identifiable Intangible Assets, Including Patents | Total estimated annual amortization expense for the years ending June 30, 2024 through June 30, 2028, is shown below (in thousands): Fiscal Years Ending June 30 2024 2025 2026 2027 2028 Estimated amortization expense $ 86,633 $ 82,227 $ 77,005 $ 58,127 $ 23,175 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Equity Method Investments and Joint Ventures [Abstract] | |
Schedule of Investments | Equity investments by measurement category as of June 30, 2023 and June 30, 2022 were as follows (in thousands): Measurement category 2023 2022 Fair value $ 12,423 $ 9,167 Measurement alternative 68,748 39,290 Equity method 65,366 9,918 Total $ 146,537 $ 58,375 |
Schedule of Changes in Equity Investments | The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2023 (in thousands): Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 Additions to investments (1) 21,738 4,991 62,733 89,462 Observable price adjustments on non-marketable equity securities 12,612 — — 12,612 Impairment of investments (4,892) — — (4,892) Realized gains on marketable and non-marketable equity securities 3,937 — — 3,937 Proceeds from exits of investments (3,937) — — (3,937) Unrealized losses on marketable equity securities — (1,735) — (1,735) Loss attributable to equity method investments — — (7,265) (7,265) Dividends received — — (2,873) (2,873) Foreign currency translation adjustments — — 2,853 2,853 Carrying value at the end of the period $ 68,748 $ 12,423 $ 65,366 $ 146,537 (1) Includes additions from purchases and an equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 17 herein. The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2022 (in thousands): Non-marketable securities Marketable securities Equity method investments Total Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240 Net additions (reductions) to investments (2) 11,775 (3,202) 1,250 9,823 Observable price adjustments on non-marketable equity securities 5,367 — — 5,367 Impairment of investments (3,209) — — (3,209) Realized gains on marketable and non-marketable equity securities 2,355 1,626 — 3,981 Unrealized losses on marketable equity securities — (18,341) — (18,341) Loss attributable to equity method investments — — (8,486) (8,486) Carrying value at the end of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375 |
Accrued Expenses (Tables)
Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses | Accrued expenses at June 30, 2023 and June 30, 2022 consist of the following (in thousands): 2023 2022 Product warranties (note 7) $ 27,621 $ 25,889 Consulting and professional fees 26,148 25,073 Value added taxes and other taxes due 23,636 26,340 Employee related costs 220,785 194,736 Promotional and marketing 9,366 6,485 Foreign currency hedging instruments 9,558 1,947 Accrued interest 9,375 7,983 Logistics and occupancy costs 16,278 32,160 Inventory in transit 10,034 11,554 Other 12,859 12,555 Total accrued expenses $ 365,660 $ 344,722 |
Product Warranties (Tables)
Product Warranties (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Changes in Liability for Warranty Costs | Changes in the liability for product warranty for the years ended June 30, 2023 and June 30, 2022 are as follows (in thousands): 2023 2022 Balance at the beginning of the period $ 25,889 $ 22,032 Warranty accruals for the period 15,628 17,442 Warranty costs incurred for the period (13,734) (12,124) Foreign currency translation adjustments (162) (1,461) Balance at the end of the period $ 27,621 $ 25,889 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Debt at June 30, 2023 and June 30, 2022 consists of the following (in thousands): 2023 2022 Short-term debt $ 10,000 $ 10,000 Deferred borrowing costs (98) (84) Short-term debt, net 9,902 9,916 Long-term debt $ 1,435,000 $ 770,000 Deferred borrowing costs (3,766) (4,675) Long-term debt, net $ 1,431,234 $ 765,325 Total debt $ 1,441,136 $ 775,241 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Future Minimum Lease Payments | Future lease payments under non-cancellable operating leases as of June 30, 2023 are as follows (in thousands): Total 2024 2025 2026 2027 2028 Thereafter Minimum lease payments $ 155,299 $ 24,754 $ 20,087 $ 18,199 $ 17,004 $ 16,584 $ 58,671 Less: imputed interest (16,527) Total lease liabilities $ 138,772 |
Schedule of Operating Lease Disclosure | The supplemental information related to operating leases for the years ended June 30, 2023 and June 30, 2022 was as follows (in thousands): 2023 2022 Weighted-average inputs: Weighted-average remaining lease term (years) 8.2 8.8 Weighted-average discount rate 2.7 % 2.8 % Cash flow information: Operating cash flows paid for amounts included in the measurement of lease liabilities $ 29,047 $ 26,462 Right of use assets obtained in exchange for new lease liabilities: $ 16,803 $ 41,382 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Activity of Restricted Stock Units | The following table summarizes the activity of RSUs, including PRSUs, during year ended June 30, 2023 (in thousands, except years and per share amounts): Restricted Weighted Weighted Outstanding at beginning of period 681 $ 203.46 1.6 Granted 434 224.02 Vested* (416) 160.50 Performance factor adjustment 115 — Forfeited (52) 216.75 Outstanding at end of period 762 $ 227.82 1.7 * Includes 139 thousand shares netted for tax. |
Schedule of Option Activity | The following table summarizes option activity during the year ended June 30, 2023 (in thousands, except years and per share amounts): Options Weighted Weighted Outstanding at beginning of period 938 $ 112.91 3.2 Granted 100 223.94 Exercised (157) 62.07 Forfeited — — Outstanding at end of period 881 $ 134.52 3.0 Options exercisable at end of period 734 $ 115.37 2.4 Options vested and expected to vest at end of period 873 $ 133.56 3.0 |
Schedule of Assumptions for Fair Value of Stock Option Plans and Purchase Rights Granted | We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the following assumptions for the years ended June 30, 2023, 2022 and 2021: 2023 2022 2021 Stock options: Weighted average grant date fair value $74.95 $72.16 $53.67 Weighted average risk-free interest rate 3.85% 1.29% 0.37% Expected life in years 4.9 4.9 4.9 Dividend yield 0.78% 0.66% 0.75% Expected volatility 34% 32% 31% ESPP purchase rights: Weighted average grant date fair value $52.38 $50.46 $48.18 Weighted average risk-free interest rate 3.6% 0.3% 0.1% Expected life in years 6 months 6 months 6 months Dividend yield 0.75% - 0.84% 0.63% - 0.98% 0.79% - 0.98% Expected volatility 27% - 34% 20% - 34% 30% - 60% |
Schedule of Total Stock-Based Compensation Costs Incurred and Associated Tax Benefit Recognized | The following table summarizes the total stock-based compensation costs incurred and the associated tax benefit recognized during the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Cost of sales $ 6,465 $ 5,218 $ 4,153 Selling, general and administrative expenses 53,049 50,791 51,727 Research and development expenses 11,628 9,248 8,047 Stock-based compensation costs 71,142 65,257 63,927 Tax benefit (24,860) (29,262) (23,346) Stock-based compensation costs, net of tax benefit $ 46,282 $ 35,995 $ 40,581 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Earnings Per Share | Basic and diluted earnings per share for the years ended June 30, 2023, 2022 and 2021 are calculated as follows (in thousands except per share data): 2023 2022 2021 Numerator: Net income $ 897,556 $ 779,437 $ 474,505 Denominator: Basic weighted-average common shares outstanding 146,765 146,066 145,313 Effect of dilutive securities: Stock options and restricted stock units 690 977 1,138 Diluted weighted average shares 147,455 147,043 146,451 Basic earnings per share $ 6.12 $ 5.34 $ 3.27 Diluted earnings per share $ 6.09 $ 5.30 $ 3.24 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes Under the Jurisdictions | Income before income taxes for the years ended June 30, 2023, 2022 and 2021, was taxed under the following jurisdictions (in thousands): 2023 2022 2021 U.S. $ 128,589 $ (85,919) $ 71,867 Non-U.S. 973,075 1,046,402 811,795 Income before income taxes $ 1,101,664 $ 960,483 $ 883,662 |
Schedule of Provision for Income Taxes | The provision for income taxes is presented below (in thousands): 2023 2022 2021 Current: Federal $ 36,631 $ 4,376 $ (115,109) State 14,142 10,700 9,041 Non-U.S. 198,767 177,788 531,812 249,540 192,864 425,744 Deferred: Federal (21,721) (12,612) (22,791) State (2,389) (2,773) (4,205) Non-U.S. (21,322) 3,567 10,409 (45,432) (11,818) (16,587) Provision for income taxes $ 204,108 $ 181,046 $ 409,157 |
Schedule of Provision for Income Tax Differ From the Amount of Income Tax | The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2023, 2022 and 2021, to pretax income as a result of the following (in thousands): 2023 2022 2021 Taxes computed at statutory U.S. rate $ 231,349 $ 201,701 $ 185,569 Increase (decrease) in income taxes resulting from: State income taxes, net of U.S. tax benefit 9,448 5,703 4,836 Research and development credit (21,481) (17,517) (20,257) Change in valuation allowance (5,007) 858 (3,785) Effect of non-U.S. tax rates (3,982) (4,384) (12,130) Foreign tax credits (3,988) (2,299) (7,210) Stock-based compensation expense (6,282) (11,294) (4,498) Uncertain tax position — — 248,773 Other 4,051 8,278 17,859 Provision for income taxes $ 204,108 $ 181,046 $ 409,157 |
Schedule of Deferred Tax Assets and Liabilities Classified as Current and Non-Current | We reported net deferred tax assets and liabilities in our consolidated balance sheets at June 30, 2023 and June 30, 2022, as follows (in thousands): 2023 2022 Non-current deferred tax asset $ 132,974 $ 79,746 Non-current deferred tax liability (90,650) (9,714) Net deferred tax asset $ 42,324 $ 70,032 |
Schedule of Components of Deferred Tax Assets and Liabilities | The components of our deferred tax assets and liabilities at June 30, 2023 and June 30, 2022, are as follows (in thousands): 2023 2022 Deferred tax assets: Employee liabilities $ 34,314 $ 28,556 Tax credit carry overs 6,051 7,723 Inventories 13,212 10,570 Provision for warranties 5,348 4,814 Provision for doubtful debts 6,103 5,096 Net operating loss carryforwards 22,387 27,490 Capital loss carryover 917 4,715 Stock-based compensation expense 8,670 6,425 Deferred revenue 23,908 25,748 Research and development capitalization 111,704 82,074 Lease liabilities 21,347 21,702 Hedging contracts 27,666 — Other 454 (3,395) 282,081 221,518 Less valuation allowance (8,536) (13,572) Deferred tax assets 273,545 207,946 Deferred tax liabilities: Goodwill and other intangibles (198,418) (108,078) Right of use assets (20,501) (20,345) Property, plant and equipment (12,302) (9,491) Deferred tax liabilities (231,221) (137,914) Net deferred tax asset $ 42,324 $ 70,032 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Segment and Reconciling Items | The table below presents a reconciliation of net revenues, depreciation and amortization and net operating profit by reportable segments for the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 Net revenue by segment Sleep and Respiratory Care $ 3,725,017 $ 3,177,298 $ 2,823,235 Software as a Service 497,976 400,829 373,590 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 Depreciation and amortization by segment Sleep and Respiratory Care $ 82,544 $ 79,367 $ 73,151 Software as a Service 9,119 7,315 5,230 Amortization of acquired intangible assets and corporate assets 73,493 72,927 78,377 Total $ 165,156 $ 159,609 $ 156,758 Net operating profit by segment Sleep and Respiratory Care $ 1,502,475 $ 1,311,559 $ 1,170,305 Software as a Service 115,529 93,044 92,357 Total $ 1,618,004 $ 1,404,603 $ 1,262,662 Reconciling items Corporate costs $ 393,591 $ 331,725 $ 268,874 Amortization of acquired intangible assets 72,416 70,728 76,205 Restructuring expenses 9,177 — 13,905 Acquisition related expenses 10,949 1,864 — Interest expense (income), net 47,379 22,312 23,627 Loss attributable to equity method investments 7,265 8,486 11,205 (Gain) loss on equity investments (9,922) 12,202 (14,515) Gain on insurance recoveries (20,227) — — Other, net 5,712 (3,197) (301) Income before income taxes $ 1,101,664 $ 960,483 $ 883,662 |
Schedule of Revenue by Segment, Product, and Region | The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2023, 2022 and 2021 (in thousands): 2023 2022 2021 U.S., Canada and Latin America Devices $ 1,444,361 $ 1,070,420 $ 863,661 Masks and other 1,039,026 911,387 841,452 Total U.S., Canada and Latin America $ 2,483,387 $ 1,981,807 $ 1,705,113 Combined Europe, Asia and other markets Devices $ 826,341 $ 796,488 $ 746,379 Masks and other 415,289 399,003 371,743 Total Combined Europe, Asia and other markets $ 1,241,630 $ 1,195,491 $ 1,118,122 Global revenue Devices $ 2,270,702 $ 1,866,908 $ 1,610,040 Masks and other 1,454,315 1,310,390 1,213,195 Total Sleep and Respiratory Care $ 3,725,017 $ 3,177,298 $ 2,823,235 Software as a Service 497,976 400,829 373,590 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 |
Schedule of Revenue by Geographic Area | Revenue information by geographic area for the years ended June 30, 2023, 2022 and 2021 is summarized below (in thousands): 2023 2022 2021 United States $ 2,719,923 $ 2,249,381 $ 1,962,721 Rest of the World 1,503,070 1,328,746 1,234,104 Total $ 4,222,993 $ 3,578,127 $ 3,196,825 |
Schedule of Long-Lived Assets by Geographic Areas | Long-lived assets by geographic area as of June 30, 2023 and 2022 is summarized below (in thousands): 2023 2022 Australia $ 200,752 $ 192,833 United States 164,448 169,090 Singapore 83,711 72,821 Rest of the World 88,945 63,437 Total $ 537,856 $ 498,181 |
Legal Actions, Contingencies _2
Legal Actions, Contingencies And Commitments (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Obligations Under Purchase Agreements | Obligations under our purchase agreements at June 30, 2023 were as follows (in thousands): Total Fiscal Years Ending June 30 2024 2025 2026 2027 2028 Thereafter Minimum purchase obligations $ 1,390,640 $ 1,034,859 $ 345,033 $ 10,013 $ 735 $ — $ — |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Fair Values of Derivative Instruments | The following table presents our assets and liabilities related to derivative instruments on a gross basis within the consolidated balance sheets (in thousands): June 30, June 30, Balance Sheet Caption Derivative Assets Not Designated as Hedging Instruments Foreign currency hedging instruments $ 2,126 $ 151 Prepaid expenses and other current assets Foreign currency hedging instruments 279 9 Prepaid taxes and other non-current assets Total derivative assets $ 2,405 $ 160 Derivative Liabilities Designated as Hedging Instruments Foreign cross-currency swaps – Fair Value Hedge $ 19,743 $ — Other long-term liabilities Foreign cross-currency swaps – Net Investment Hedge 40,803 — Other long-term liabilities Not Designated as Hedging Instruments Foreign currency hedging instruments 9,558 1,947 Accrued expenses Foreign currency hedging instruments 595 — Other long-term liabilities Total derivative liabilities $ 70,699 $ 1,947 |
Schedule of Derivative Gains (Losses) | We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized in other comprehensive income (loss) $ (5,414) $ — $ — Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) 3,754 — — Gain (loss) recognized on cross-currency swap in other, net (14,329) — — Gain (loss) recognized on intercompany debt in other, net 14,329 — — We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) $ (40,803) $ — $ — Gain (loss) recognized from the excluded components in interest (expense) income, net 9,482 — — We recognized the following gains (losses) in the consolidated statement of operations on derivatives not designated as hedging instruments (in thousands): Twelve Months Ended 2023 2022 2021 Gain (loss) recognized on foreign currency hedging instruments in other, net $ 8,576 $ (19,511) $ 18,544 Gain (loss) recognized on other foreign-currency-denominated transactions in other, net (12,780) 22,320 (19,297) Total (4,204) 2,809 (753) |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The total purchase price was allocated to MEDIFOX DAN's tangible and identifiable intangible assets and liabilities based upon estimated fair values as of the November 21, 2022 closing date, as follows (in thousands): Final Intangible assets - useful life Cash $ 7,372 Accounts receivable 16,096 Property, plant and equipment 7,731 Equity method investment 57,298 Other assets 18,523 Accounts payable and accrued expenses (19,359) Deferred revenue (18,349) Other liabilities (11,623) Identifiable intangible assets: Developed technology 43,081 6 - 7 years Customer relationships 175,445 11 - 13 years Trade names 32,050 10 years Deferred tax liabilities (78,458) Goodwill 767,709 Purchase price $ 997,516 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | 12 Months Ended | ||
Jun. 30, 2023 USD ($) segment | Jun. 30, 2022 USD ($) | Jun. 30, 2021 USD ($) | |
Summary Of Significant Accounting Policies [Line Items] | |||
Number of operating segments | segment | 2 | ||
Depreciation | $ 84,700,000 | $ 81,000,000 | $ 78,400,000 |
Impairment of intangible assets | 0 | $ 0 | $ 0 |
Currency Swap | Fair Value And Net Investment Hedging | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Outstanding foreign cross-currency swaps | $ 1,046,600,000 | ||
Patents | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Intangible assets, estimated useful life | 10 years | ||
Minimum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue recognized, term | 1 year | ||
Estimated useful life of property, plant and equipment, years | 2 years | ||
Intangible assets, estimated useful life | 2 years | ||
Maximum | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Deferred revenue recognized, term | 5 years | ||
Estimated useful life of property, plant and equipment, years | 10 years | ||
Intangible assets, estimated useful life | 15 years | ||
Buildings | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Estimated useful life of property, plant and equipment, years | 40 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Summary of Contract Balances) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Contract assets | ||
Accounts receivable, net | $ 704,909 | $ 575,950 |
Contract liabilities | ||
Deferred revenue, current | (138,072) | (108,667) |
Deferred revenue, non-current | (119,186) | (95,455) |
Accounts receivable, net | ||
Contract assets | ||
Accounts receivable, net | 704,909 | 575,950 |
Prepaid expenses and other current assets | ||
Contract assets | ||
Unbilled revenue, current | 31,521 | 25,692 |
Prepaid taxes and other non-current assets | ||
Contract assets | ||
Unbilled revenue, non-current | 10,078 | 8,840 |
Deferred revenue (current liabilities) | ||
Contract liabilities | ||
Deferred revenue, current | (138,072) | (108,667) |
Deferred revenue (non-current liabilities) | ||
Contract liabilities | ||
Deferred revenue, non-current | $ (119,186) | $ (95,455) |
Supplemental Balance Sheet In_3
Supplemental Balance Sheet Information (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Inventories | ||
Raw materials | $ 459,126 | $ 355,225 |
Work in progress | 3,956 | 3,077 |
Finished goods | 534,930 | 385,608 |
Total inventories | $ 998,012 | $ 743,910 |
Supplemental Balance Sheet In_4
Supplemental Balance Sheet Information (Schedule of Prepaid Expenses and Other Current Assets) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Prepaid expenses and other current assets | ||
Prepaid taxes | $ 114,009 | $ 99,352 |
Prepaid inventories | 143,084 | 107,291 |
Other prepaid expenses and current assets | 179,925 | 131,265 |
Total prepaid expenses and other current assets | $ 437,018 | $ 337,908 |
Supplemental Balance Sheet In_5
Supplemental Balance Sheet Information (Components of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 1,205,868 | $ 1,131,295 |
Accumulated depreciation and amortization | (668,012) | (633,114) |
Property, plant and equipment, net | 537,856 | 498,181 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 443,781 | 390,634 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 189,568 | 199,671 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 61,663 | 54,098 |
Clinical, demonstration and rental equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 115,696 | 105,440 |
Vehicles and aircraft | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 20,587 | 19,231 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 91,499 | 80,855 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | 52,055 | 51,864 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, at cost | $ 231,019 | $ 229,502 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets, net (Schedule of Changes in Carrying Amount of Goodwill) (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 1,936,442 |
Business acquisitions | 786,990 |
Foreign currency translation adjustments | 46,867 |
Balance at the end of the period | 2,770,299 |
Sleep and Respiratory Care | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 641,724 |
Business acquisitions | 19,281 |
Foreign currency translation adjustments | 9,115 |
Balance at the end of the period | 670,120 |
SaaS | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,294,718 |
Business acquisitions | 767,709 |
Foreign currency translation adjustments | 37,752 |
Balance at the end of the period | $ 2,100,179 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets, net (Schedule of Other Intangible Assets, Net) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Total other intangibles, net | $ 552,341 | $ 345,944 |
Developed/core product technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 398,740 | 350,671 |
Accumulated amortization | (265,802) | (239,647) |
Total other intangibles, net | 132,938 | 111,024 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 443,652 | 257,034 |
Accumulated amortization | (124,220) | (91,731) |
Total other intangibles, net | 319,432 | 165,303 |
Other intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Other intangibles, gross | 244,373 | 204,580 |
Accumulated amortization | (144,402) | (134,963) |
Total other intangibles, net | $ 99,971 | $ 69,617 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets, net (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 30,396 | $ 39,650 | $ 45,127 |
Foreign currency hedging instruments | Non-Designated Hedges | |||
Finite-Lived Intangible Assets [Line Items] | |||
Outstanding foreign cross-currency swaps | 954,700 | 602,000 | |
Identified Intangible Assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 72,400 | 70,700 | |
Patents | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful life | 10 years | ||
Amortization expense | $ 7,000 | $ 6,200 | |
Minimum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful life | 2 years | ||
Maximum | |||
Finite-Lived Intangible Assets [Line Items] | |||
Intangible assets, estimated useful life | 15 years |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets, net (Schedule of Amortization Expense Related to Identifiable Intangible Assets, Including Patents) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2024 | $ 86,633 |
2025 | 82,227 |
2026 | 77,005 |
2027 | 58,127 |
2028 | $ 23,175 |
Investments (Schedule of Invest
Investments (Schedule of Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Equity Method Investments and Joint Ventures [Abstract] | ||
Fair value | $ 12,423 | $ 9,167 |
Measurement alternative | 68,748 | 39,290 |
Equity method | 65,366 | 9,918 |
Total | $ 146,537 | $ 58,375 |
Investments (Schedule of Change
Investments (Schedule of Changes In Equity Investments) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Method Investments [Roll Forward] | |||
Balance at the beginning of the period | $ 58,375 | $ 69,240 | |
Net additions (reductions) to investments | 89,462 | 9,823 | |
Observable price adjustments on non-marketable equity securities | 12,612 | 5,367 | |
Impairment of investments | (4,892) | (3,209) | |
Realized gains on marketable and non-marketable equity securities | 3,937 | 3,981 | |
Proceeds from exits of investments | (3,937) | ||
Unrealized losses on marketable equity securities | (1,735) | (18,341) | |
Loss attributable to equity method investments | (7,265) | (8,486) | $ (11,205) |
Dividends received | (2,873) | ||
Foreign currency translation adjustments | 2,853 | ||
Carrying value at the end of the period | 146,537 | 58,375 | 69,240 |
Non-marketable securities | |||
Equity Method Investments [Roll Forward] | |||
Balance at the beginning of the period | 39,290 | 23,002 | |
Net additions (reductions) to investments | 21,738 | 11,775 | |
Observable price adjustments on non-marketable equity securities | 12,612 | 5,367 | |
Impairment of investments | (4,892) | (3,209) | |
Realized gains on marketable and non-marketable equity securities | 3,937 | 2,355 | |
Proceeds from exits of investments | (3,937) | ||
Unrealized losses on marketable equity securities | 0 | 0 | |
Loss attributable to equity method investments | 0 | 0 | |
Dividends received | 0 | ||
Foreign currency translation adjustments | 0 | ||
Carrying value at the end of the period | 68,748 | 39,290 | 23,002 |
Marketable securities | |||
Equity Method Investments [Roll Forward] | |||
Balance at the beginning of the period | 9,167 | 29,084 | |
Net additions (reductions) to investments | 4,991 | (3,202) | |
Observable price adjustments on non-marketable equity securities | 0 | 0 | |
Impairment of investments | 0 | 0 | |
Realized gains on marketable and non-marketable equity securities | 0 | 1,626 | |
Proceeds from exits of investments | 0 | ||
Unrealized losses on marketable equity securities | (1,735) | (18,341) | |
Loss attributable to equity method investments | 0 | 0 | |
Dividends received | 0 | ||
Foreign currency translation adjustments | 0 | ||
Carrying value at the end of the period | 12,423 | 9,167 | 29,084 |
Equity method investments | |||
Equity Method Investments [Roll Forward] | |||
Balance at the beginning of the period | 9,918 | 17,154 | |
Net additions (reductions) to investments | 62,733 | 1,250 | |
Observable price adjustments on non-marketable equity securities | 0 | 0 | |
Impairment of investments | 0 | 0 | |
Realized gains on marketable and non-marketable equity securities | 0 | 0 | |
Proceeds from exits of investments | 0 | ||
Unrealized losses on marketable equity securities | 0 | 0 | |
Loss attributable to equity method investments | (7,265) | (8,486) | |
Dividends received | (2,873) | ||
Foreign currency translation adjustments | 2,853 | ||
Carrying value at the end of the period | $ 65,366 | $ 9,918 | $ 17,154 |
Investments (Narrative) (Detail
Investments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Equity Method Investments and Joint Ventures [Abstract] | |||
Equity securities, unrealized gain (loss) | $ 6 | $ (16.2) | $ 14.5 |
Accrued Expenses (Details)
Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Payables and Accruals [Abstract] | ||
Product warranties (note 7) | $ 27,621 | $ 25,889 |
Consulting and professional fees | 26,148 | 25,073 |
Value added taxes and other taxes due | 23,636 | 26,340 |
Employee related costs | 220,785 | 194,736 |
Promotional and marketing | 9,366 | 6,485 |
Foreign currency hedging instruments | 9,558 | 1,947 |
Accrued interest | 9,375 | 7,983 |
Logistics and occupancy costs | 16,278 | 32,160 |
Inventory in transit | 10,034 | 11,554 |
Other | 12,859 | 12,555 |
Total accrued expenses | $ 365,660 | $ 344,722 |
Product Warranties (Schedule of
Product Warranties (Schedule of Changes in Liability for Warranty Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | ||
Balance at the beginning of the period | $ 25,889 | $ 22,032 |
Warranty accruals for the period | 15,628 | 17,442 |
Warranty costs incurred for the period | (13,734) | (12,124) |
Foreign currency translation adjustments | (162) | (1,461) |
Balance at the end of the period | $ 27,621 | $ 25,889 |
Debt (Schedule of Debt) (Detail
Debt (Schedule of Debt) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Debt Disclosure [Abstract] | ||
Short-term debt | $ 10,000 | $ 10,000 |
Deferred borrowing costs | (98) | (84) |
Short-term debt, net | 9,902 | 9,916 |
Long-term debt | 1,435,000 | 770,000 |
Deferred borrowing costs | (3,766) | (4,675) |
Long-term debt, net | 1,431,234 | 765,325 |
Total debt | $ 1,441,136 | $ 775,241 |
Debt (Narrative) (Details)
Debt (Narrative) (Details) | 12 Months Ended | |||
Jun. 29, 2022 USD ($) | Jun. 30, 2023 USD ($) | Jun. 30, 2022 USD ($) | Jul. 10, 2019 USD ($) | |
Debt Instrument [Line Items] | ||||
Debt to consolidated EBITDA ratio | 3.50 | |||
Line of credit facility collateral, maximum percentage of ownership interests held in subsidiary | 10% | |||
Outstanding debt | $ 1,441,136,000 | $ 775,241,000 | ||
3.24% Senior Notes Due July 10, 2026 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 250,000,000 | |||
Interest rate | 3.24% | |||
3.45% Senior Notes Due July 10, 2029 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 250,000,000 | |||
Interest rate | 3.45% | |||
Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Long-term debt, fair value | 462,200,000 | 477,700,000 | ||
Outstanding loan balance | 500,000,000 | 500,000,000 | ||
Revolving Credit Agreement, Term Credit Agreement, And Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Outstanding debt | 1,445,000,000 | |||
Revolving Credit Facility And Term Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Available for draw | 745,000,000 | |||
Long-term debt, fair value | $ 945,000,000 | $ 280,000,000 | ||
Revolving Credit Facility And Term Credit Agreement | MUFG Union Bank NA and Westpac Banking Corporation | ||||
Debt Instrument [Line Items] | ||||
Interest rate on outstanding principal amount | 6.07% | |||
Revolving Credit Facility | MUFG Union Bank NA and Westpac Banking Corporation | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 1,500,000,000 | |||
Uncommitted option to increase credit facility | $ 1,000,000,000 | |||
EBITDA multiple of trailing twelve-month measurement period | 1 | |||
Revolving Credit Facility | MUFG Union Bank NA and Westpac Banking Corporation | Minimum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage rate on unused portion of credit facility | 0.075% | |||
Revolving Credit Facility | MUFG Union Bank NA and Westpac Banking Corporation | Maximum | ||||
Debt Instrument [Line Items] | ||||
Commitment fees percentage rate on unused portion of credit facility | 0.15% | |||
Revolving Credit Facility | MUFG Union Bank | ResMed Limited | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity | $ 200,000,000 | |||
Term Loan Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Principal payment | $ 5,000,000 | |||
Term Loan Credit Agreement | Minimum | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0.75% | |||
Term Loan Credit Agreement | Minimum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0% | |||
Term Loan Credit Agreement | Maximum | Secured Overnight Financing Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 1.50% | |||
Term Loan Credit Agreement | Maximum | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Credit facility interest rate equal to reference rate plus | 0.50% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease costs | $ 33.6 | $ 35.3 | $ 35.5 |
Operating lease commitments not yet commenced | 57.3 | ||
Operating lease revenue | $ 88.6 | $ 90.1 | $ 93.4 |
Minimum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 1 year | ||
Lease terms, not yet commenced | 10 years | ||
Maximum | |||
Lessee, Lease, Description [Line Items] | |||
Lease terms | 13 years | ||
Lease terms, not yet commenced | 15 years |
Leases (Schedule of Future Mini
Leases (Schedule of Future Minimum Lease Payments) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 24,754 |
2025 | 20,087 |
2026 | 18,199 |
2027 | 17,004 |
2028 | 16,584 |
Thereafter | 58,671 |
Total minimum lease payments | 155,299 |
Less: imputed interest | (16,527) |
Total lease liabilities | $ 138,772 |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Disclosure) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Weighted-average remaining lease term (years) | 8 years 2 months 12 days | 8 years 9 months 18 days |
Weighted-average discount rate | 2.70% | 2.80% |
Operating cash flows paid for amounts included in the measurement of lease liabilities | $ 29,047 | $ 26,462 |
Right of use assets obtained in exchange for new lease liabilities: | $ 16,803 | $ 41,382 |
Stockholders' Equity (Narrative
Stockholders' Equity (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Oct. 31, 2017 USD ($) | Nov. 30, 2017 USD ($) shares | Jun. 30, 2023 USD ($) offering $ / shares shares | Jun. 30, 2022 USD ($) $ / shares shares | Jun. 30, 2021 USD ($) shares | Jun. 30, 2020 shares | Feb. 21, 2014 shares | Apr. 30, 1997 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares authorized to be repurchased under repurchase program (in shares) | 20,000,000 | |||||||
Total number of shares repurchased pursuant to the repurchase program (in shares) | 41,836,234 | 41,836,234 | ||||||
Additional shares that can be repurchased under the approved share repurchase program (in shares) | 12,900,000 | |||||||
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 | 2,000,000 | |||||
Preferred stock at par value (in dollars per share) | $ / shares | $ 0.01 | $ 0.01 | $ 0.01 | |||||
Preferred stock, shares outstanding (in shares) | 0 | |||||||
Preferred stock, shares issued (in shares) | 0 | 0 | ||||||
Expiration period | 7 years | |||||||
Reduction in the number of shares of common stock available for issuance (in shares) | 2.8 | |||||||
Number of shares given for each share of common stock delivered in settlement of all other awards (in shares) | 1 | |||||||
Maximum number of shares subject to awards granted (in shares) | 3,000,000 | |||||||
Number of common stock shares granted in participant's initial year of hiring (in shares) | 4,500,000 | |||||||
Fair value of RSUs and PRSUs | $ | $ 66,800 | $ 65,500 | $ 59,600 | |||||
Aggregate intrinsic value of the options exercised | $ | 25,400 | $ 33,700 | $ 8,900 | |||||
Aggregate intrinsic value of the stock-based compensation arrangements outstanding | $ | 76,800 | |||||||
Aggregate intrinsic value of the stock-based compensation arrangements exercisable | $ | 76,600 | |||||||
Aggregate intrinsic value of the stock-based compensation arrangements exercisable, vested and expected to vest | $ | $ 76,800 | |||||||
Shares issued under Employee Stock Purchase Plan (in shares) | 220,000 | 216,000 | 229,000 | |||||
Stock-based compensation expense | $ | $ 71,142 | $ 65,257 | $ 63,927 | |||||
Unrecognized compensation costs related to unvested stock-based compensation arrangements | $ | $ 133,500 | |||||||
Expected weighted average period of unrecognized compensation costs related to unvested stock-based compensation arrangements | 2 years 7 months 6 days | |||||||
Treasury Stock | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Total number of shares repurchased pursuant to the repurchase program (in shares) | 41,836,000 | 41,836,000 | 41,836,000 | 41,836,000 | ||||
Total cost of shares repurchased pursuant to the repurchase program | $ | $ 1,600,000 | |||||||
2009 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock authorized for issuance and pending registration (in shares) | 7,400,000 | |||||||
Extended period | 4 years | |||||||
Common stock authorized for issuance (in shares) | 51,100,000 | |||||||
Common stock reserved for future issuance (in shares) | 14,400,000 | |||||||
Amended And Restated 2009 Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum amount payable pursuant to cash denominated performance awards granted | $ | $ 3,000 | $ 5,000 | ||||||
Amended And Restated 2009 Plan | Non Employee Director | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum award amount with other cash fees earned for services | $ | 700 | |||||||
Amended And Restated 2009 Plan | Board Of Directors Chairman | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum award amount with other cash fees earned for services | $ | $ 1,200 | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock reserved for future issuance (in shares) | 1,300,000 | |||||||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of grant | 85% | |||||||
Percentage of purchase price of common stock lower than the fair market value of common stock on the date of purchase | 85% | |||||||
Number of offerings | offering | 2 | |||||||
Stock-based compensation expense | $ | $ 11,500 | $ 11,000 | $ 10,900 | |||||
Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 1 year | |||||||
Minimum | Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock purchase program offering period | 3 months | |||||||
Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Maximum | Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Employee stock purchase program offering period | 27 months | |||||||
Common stock shares subscribed | $ | $ 25 | |||||||
Performance Restricted Stock Units (PRSUs) | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Performance Restricted Stock Units (PRSUs) | Minimum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 200% | |||||||
Performance Restricted Stock Units (PRSUs) | Maximum | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting percentage | 225% |
Stockholders' Equity (Schedule
Stockholders' Equity (Schedule of Activity of Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) - $ / shares | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Restricted Stock Units | ||
Outstanding at beginning of period (in shares) | 681,000 | |
Granted (in shares) | 434,000 | |
Vested (in shares) | (416,000) | |
Performance factor adjustment (in shares) | 115,000 | |
Forfeited (in shares) | (52,000) | |
Outstanding at end of period (in shares) | 762,000 | 681,000 |
Weighted Average Grant-Date Fair Value | ||
Outstanding at beginning of period (in dollars per share) | $ 203.46 | |
Granted (in dollars per share) | 224.02 | |
Vested (in dollars per share) | 160.50 | |
Performance factor adjustments (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 216.75 | |
Outstanding at end of period (in dollars per share) | $ 227.82 | $ 203.46 |
Weighted Average Remaining Contractual Term in Years | ||
Outstanding | 1 year 8 months 12 days | 1 year 7 months 6 days |
Exercisable shares, netted for tax (in shares) | 139,000 |
Stockholders' Equity (Schedul_2
Stockholders' Equity (Schedule of Option Activity) (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Options | ||
Outstanding at beginning of period (in shares) | 938 | |
Granted (in shares) | 100 | |
Exercised (in shares) | (157) | |
Forfeited (in shares) | 0 | |
Outstanding at end of period (in shares) | 881 | 938 |
Options exercisable at end of period (in shares) | 734 | |
Options vested and expected to vest at end of period (in shares) | 873 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 112.91 | |
Granted (in dollars per share) | 223.94 | |
Exercised (in dollars per share) | 62.07 | |
Forfeited (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | 134.52 | $ 112.91 |
Options exercisable at end of period (in dollars per share) | 115.37 | |
Options vested and expected to vest at end of period (in dollars per share) | $ 133.56 | |
Weighted Average Remaining Contractual Term in Years | ||
Outstanding at end of period | 3 years | 3 years 2 months 12 days |
Options exercisable at end of period | 2 years 4 months 24 days | |
Options vested and expected to vest at end of period | 3 years |
Stockholders' Equity (Schedul_3
Stockholders' Equity (Schedule of Assumptions for Fair Value of Stock Option Plans and Purchase Rights Granted) (Details) - $ / shares | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Stock options: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 74.95 | $ 72.16 | $ 53.67 |
Weighted average risk-free interest rate | 3.85% | 1.29% | 0.37% |
Expected life in years | 4 years 10 months 24 days | 4 years 10 months 24 days | 4 years 10 months 24 days |
Dividend yield | 0.78% | 0.66% | 0.75% |
Expected volatility | 34% | 32% | 31% |
ESPP purchase rights: | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (in dollars per share) | $ 52.38 | $ 50.46 | $ 48.18 |
Weighted average risk-free interest rate | 3.60% | 0.30% | 0.10% |
Expected life in years | 6 months | 6 months | 6 months |
Expected volatility, minimum | 27% | 20% | 30% |
Expected volatility, maximum | 34% | 34% | 60% |
ESPP purchase rights: | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.75% | 0.63% | 0.79% |
ESPP purchase rights: | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.84% | 0.98% | 0.98% |
Stockholders' Equity (Schedul_4
Stockholders' Equity (Schedule of Total Stock-Based Compensation Costs Incurred and Associated Tax Benefit Recognized) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation costs | $ 71,142 | $ 65,257 | $ 63,927 |
Tax benefit | (24,860) | (29,262) | (23,346) |
Stock-based compensation costs, net of tax benefit | 46,282 | 35,995 | 40,581 |
Cost of sales | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation costs | 6,465 | 5,218 | 4,153 |
Selling, general and administrative expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation costs | 53,049 | 50,791 | 51,727 |
Research and development expenses | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Stock-based compensation costs | $ 11,628 | $ 9,248 | $ 8,047 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount (in shares) | 272,104 | 67,000 | 141,000 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Numerator: | |||
Net income | $ 897,556 | $ 779,437 | $ 474,505 |
Denominator: | |||
Basic weighted-average common shares outstanding (in shares) | 146,765 | 146,066 | 145,313 |
Effect of dilutive securities: | |||
Stock options and restricted stock units (in shares) | 690 | 977 | 1,138 |
Diluted weighted average shares (in shares) | 147,455 | 147,043 | 146,451 |
Basic earnings per share (in dollars per share) | $ 6.12 | $ 5.34 | $ 3.27 |
Diluted earnings per share (in dollars per share) | $ 6.09 | $ 5.30 | $ 3.24 |
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, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
U.S. | $ 128,589 | $ (85,919) | $ 71,867 |
Non-U.S. | 973,075 | 1,046,402 | 811,795 |
Income before income taxes | $ 1,101,664 | $ 960,483 | $ 883,662 |
Income Taxes (Schedule of Provi
Income Taxes (Schedule of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Current: | |||
Federal | $ 36,631 | $ 4,376 | $ (115,109) |
State | 14,142 | 10,700 | 9,041 |
Non-U.S. | 198,767 | 177,788 | 531,812 |
Total | 249,540 | 192,864 | 425,744 |
Deferred: | |||
Federal | (21,721) | (12,612) | (22,791) |
State | (2,389) | (2,773) | (4,205) |
Non-U.S. | (21,322) | 3,567 | 10,409 |
Total | (45,432) | (11,818) | (16,587) |
Provision for income taxes | $ 204,108 | $ 181,046 | $ 409,157 |
Income Taxes (Schedule of Pro_2
Income Taxes (Schedule of Provision for Income Tax Differ From the Amount of Income Tax) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |||
Taxes computed at statutory U.S. rate | $ 231,349 | $ 201,701 | $ 185,569 |
State income taxes, net of U.S. tax benefit | 9,448 | 5,703 | 4,836 |
Research and development credit | (21,481) | (17,517) | (20,257) |
Change in valuation allowance | (5,007) | 858 | (3,785) |
Effect of non-U.S. tax rates | (3,982) | (4,384) | (12,130) |
Foreign tax credits | (3,988) | (2,299) | (7,210) |
Stock-based compensation expense | (6,282) | (11,294) | (4,498) |
Uncertain tax position | 0 | 0 | 248,773 |
Other | 4,051 | 8,278 | 17,859 |
Provision for income taxes | $ 204,108 | $ 181,046 | $ 409,157 |
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, 2023 | Jun. 30, 2022 |
Income Tax Disclosure [Abstract] | ||
Non-current deferred tax asset | $ 132,974 | $ 79,746 |
Non-current deferred tax liability | (90,650) | (9,714) |
Net deferred tax asset | $ 42,324 | $ 70,032 |
Income Taxes (Components of Def
Income Taxes (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Employee liabilities | $ 34,314 | $ 28,556 |
Tax credit carry overs | 6,051 | 7,723 |
Inventories | 13,212 | 10,570 |
Provision for warranties | 5,348 | 4,814 |
Provision for doubtful debts | 6,103 | 5,096 |
Net operating loss carryforwards | 22,387 | 27,490 |
Capital loss carryover | 917 | 4,715 |
Stock-based compensation expense | 8,670 | 6,425 |
Deferred revenue | 23,908 | 25,748 |
Research and development capitalization | 111,704 | 82,074 |
Lease liabilities | 21,347 | 21,702 |
Hedging contracts | 27,666 | 0 |
Other | 454 | (3,395) |
Deferred tax assets, Gross | 282,081 | 221,518 |
Less valuation allowance | (8,536) | (13,572) |
Deferred tax assets | 273,545 | 207,946 |
Deferred tax liabilities: | ||
Goodwill and other intangibles | (198,418) | (108,078) |
Right of use assets | (20,501) | (20,345) |
Property, plant and equipment | (12,302) | (9,491) |
Deferred tax liabilities | (231,221) | (137,914) |
Net deferred tax asset | $ 42,324 | $ 70,032 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Sep. 28, 2021 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Income Taxes [Line Items] | ||||
Increase to net earnings from tax holidays and tax incentives program | $ 40.5 | $ 38 | $ 33.6 | |
Increase to net earnings per diluted share from tax holidays and tax incentives program (in dollars per share) | $ 0.27 | $ 0.26 | $ 0.23 | |
Undistributed earnings | $ 4,200 | |||
Australian Taxation Office | ||||
Income Taxes [Line Items] | ||||
Percentage of recognized tax benefit for uncertain tax position | 50% | |||
Domestic Tax Authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | $ 15.6 | |||
Domestic Tax Authority | Australian Taxation Office | ||||
Income Taxes [Line Items] | ||||
Net impact of settlement | $ 238.7 | $ 238.7 | ||
Gross settlement | $ 381.7 | 381.7 | 381.7 | |
Penalties and interest | 48.1 | 48.1 | ||
Liability (refund) adjustment from settlement with taxing authority | 143 | 143 | ||
Remitted final payment | 284.8 | |||
Prior remittance payments | $ 96.9 | |||
Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 6.1 | |||
Foreign Tax Authority | Australian Taxation Office | ||||
Income Taxes [Line Items] | ||||
Other comprehensive income, foreign currency translation adjustment, tax | 14.1 | 14.1 | ||
Tax credits and deductions | $ 4.1 | $ 4.1 | ||
State and Local Jurisdiction | ||||
Income Taxes [Line Items] | ||||
Amount of deferred taxes that would have been recognized if the earnings has not been permanently reinvested | 5.5 | |||
Valuation Allowance | Foreign Tax Authority | ||||
Income Taxes [Line Items] | ||||
Operating loss carryforwards | 0.8 | |||
Capital loss | $ 7.8 |
Segment Information (Narrative)
Segment Information (Narrative) (Details) | 12 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Segment Information (Summary of
Segment Information (Summary of Revenue by Segment And Reconciling Items) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenue by segment | $ 4,222,993 | $ 3,578,127 | $ 3,196,825 |
Depreciation and amortization by segment | 165,156 | 159,609 | 156,758 |
Net operating profit by segment | 1,131,871 | 1,000,286 | 903,678 |
Restructuring expenses | 9,177 | 0 | 8,673 |
Acquisition related expenses | 10,949 | 1,864 | 0 |
Loss attributable to equity method investments | (7,265) | (8,486) | (11,205) |
(Gain) loss on equity investments | 9,922 | (12,202) | 14,515 |
Gain on insurance recoveries | 20,227 | 0 | 0 |
Other, net | (5,712) | 3,197 | 301 |
Income before income taxes | 1,101,664 | 960,483 | 883,662 |
Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Net operating profit by segment | 1,618,004 | 1,404,603 | 1,262,662 |
Corporate Costs | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization by segment | 73,493 | 72,927 | 78,377 |
Reconciling items | |||
Segment Reporting Information [Line Items] | |||
Corporate costs | 393,591 | 331,725 | 268,874 |
Amortization of acquired intangible assets | 72,416 | 70,728 | 76,205 |
Restructuring expenses | 9,177 | 0 | 13,905 |
Acquisition related expenses | 10,949 | 1,864 | 0 |
Interest expense (income), net | 47,379 | 22,312 | 23,627 |
Loss attributable to equity method investments | 7,265 | 8,486 | 11,205 |
(Gain) loss on equity investments | (9,922) | 12,202 | (14,515) |
Gain on insurance recoveries | (20,227) | 0 | 0 |
Other, net | 5,712 | (3,197) | (301) |
Income before income taxes | 1,101,664 | 960,483 | 883,662 |
Sleep and Respiratory Care | |||
Segment Reporting Information [Line Items] | |||
Net revenue by segment | 3,725,017 | 3,177,298 | 2,823,235 |
Sleep and Respiratory Care | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization by segment | 82,544 | 79,367 | 73,151 |
Net operating profit by segment | 1,502,475 | 1,311,559 | 1,170,305 |
Software as a Service | |||
Segment Reporting Information [Line Items] | |||
Net revenue by segment | 497,976 | 400,829 | 373,590 |
Software as a Service | Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Depreciation and amortization by segment | 9,119 | 7,315 | 5,230 |
Net operating profit by segment | $ 115,529 | $ 93,044 | $ 92,357 |
Segment Information (Schedule o
Segment Information (Schedule of Revenue by Segment, Product, And Region) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | |||
Net revenue | $ 4,222,993 | $ 3,578,127 | $ 3,196,825 |
Global revenue | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 4,222,993 | 3,578,127 | 3,196,825 |
Software as a Service | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 497,976 | 400,829 | 373,590 |
Operating Segments | Sleep and Respiratory Care | U.S., Canada and Latin America | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 2,483,387 | 1,981,807 | 1,705,113 |
Operating Segments | Sleep and Respiratory Care | U.S., Canada and Latin America | Devices | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 1,444,361 | 1,070,420 | 863,661 |
Operating Segments | Sleep and Respiratory Care | U.S., Canada and Latin America | Masks and other | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 1,039,026 | 911,387 | 841,452 |
Operating Segments | Sleep and Respiratory Care | Combined Europe, Asia and other markets | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 1,241,630 | 1,195,491 | 1,118,122 |
Operating Segments | Sleep and Respiratory Care | Combined Europe, Asia and other markets | Devices | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 826,341 | 796,488 | 746,379 |
Operating Segments | Sleep and Respiratory Care | Combined Europe, Asia and other markets | Masks and other | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 415,289 | 399,003 | 371,743 |
Operating Segments | Sleep and Respiratory Care | Global revenue | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 3,725,017 | 3,177,298 | 2,823,235 |
Operating Segments | Sleep and Respiratory Care | Global revenue | Devices | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 2,270,702 | 1,866,908 | 1,610,040 |
Operating Segments | Sleep and Respiratory Care | Global revenue | Masks and other | |||
Segment Reporting Information [Line Items] | |||
Net revenue | 1,454,315 | 1,310,390 | 1,213,195 |
Operating Segments | Software as a Service | Global revenue | |||
Segment Reporting Information [Line Items] | |||
Net revenue | $ 497,976 | $ 400,829 | $ 373,590 |
Segment Information (Schedule_2
Segment Information (Schedule of Revenue by Geographic Area) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 4,222,993 | $ 3,578,127 | $ 3,196,825 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 2,719,923 | 2,249,381 | 1,962,721 |
Rest of the World | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 1,503,070 | $ 1,328,746 | $ 1,234,104 |
Segment Information (Schedule_3
Segment Information (Schedule of Long-Lived Assets by Geographic Areas) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 537,856 | $ 498,181 |
Australia | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 200,752 | 192,833 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 164,448 | 169,090 |
Singapore | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 83,711 | 72,821 |
Rest of the World | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 88,945 | $ 63,437 |
Employee Retirement Plans (Deta
Employee Retirement Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
United States | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 4% | ||
Total contribution by the company to the employee retirement plans | $ 12.7 | $ 11.9 | $ 9.6 |
Australia | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 10.50% | ||
Total contribution by the company to the employee retirement plans | $ 13 | 11.8 | 10.7 |
Singapore | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of contribution by the company to the retirement plans | 17% | ||
Total contribution by the company to the employee retirement plans | $ 3.6 | $ 3.1 | $ 2.5 |
Legal Actions, Contingencies _3
Legal Actions, Contingencies And Commitments (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Receivables sold with limited recourse | $ 181.2 | $ 157.6 |
Maximum exposure on outstanding receivables | 32.6 | 24.2 |
Contingent provision | $ 0.6 | $ 2.1 |
Legal Actions, Contingencies _4
Legal Actions, Contingencies And Commitments (Obligations Under Purchase Agreements) (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Minimum purchase obligations | |
Total | $ 1,390,640 |
2024 | 1,034,859 |
2025 | 345,033 |
2026 | 10,013 |
2027 | 735 |
2028 | 0 |
Thereafter | $ 0 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Schedule Of Fair Values of Derivative Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 2,405 | $ 160 |
Derivative Liabilities | $ 70,699 | $ 1,947 |
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] | Prepaid expenses and other current assets (note 3) | Prepaid expenses and other current assets (note 3) |
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Prepaid taxes and other non-current assets | Prepaid taxes and other non-current assets |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Prepaid taxes and other non-current assets, Prepaid expenses and other current assets (note 3) | Prepaid taxes and other non-current assets, Prepaid expenses and other current assets (note 3) |
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued expenses (note 6) | Accrued expenses (note 6) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses (note 6), Other long-term liabilities | Accrued expenses (note 6), Other long-term liabilities |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Prepaid expenses and other current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 2,126 | $ 151 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Prepaid taxes and other non-current assets | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 279 | 9 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Accrued Expenses | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 9,558 | 1,947 |
Not Designated as Hedging Instruments | Foreign currency hedging instruments | Other Noncurrent Liabilities | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 595 | 0 |
Designated as Hedging Instruments | Foreign currency hedging instruments | Fair Value Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | 19,743 | 0 |
Designated as Hedging Instruments | Foreign currency hedging instruments | Net Investment Hedging | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Liabilities | $ 40,803 | $ 0 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Schedule Of Fair Value Hedge Gains (Losses) (Details) - Currency Swap - Fair Value Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in other comprehensive income (loss) | $ (5,414) | $ 0 | $ 0 |
Gain (loss) recognized on cross-currency swap in interest (expense) income, net (amount excluded from effectiveness testing) | 3,754 | 0 | 0 |
Gain (loss) recognized on cross-currency swap in other, net | (14,329) | 0 | 0 |
Gain (loss) recognized on intercompany debt in other, net | $ 14,329 | $ 0 | $ 0 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Schedule Of Net Investment Hedge Gains (Losses) (Details) - Currency Swap - Net Investment Hedging - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized in cumulative translation adjustment within other comprehensive income (loss) | $ (40,803) | $ 0 | $ 0 |
Interest Expense | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Gain (loss) recognized from the excluded components in interest (expense) income, net | $ 9,482 | $ 0 | $ 0 |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Schedule Of Non-designated Derivative Gains (Losses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Total | $ (4,204) | $ 2,809 | $ (753) |
Foreign currency hedging instruments | Not Designated as Hedging Instruments | Other Nonoperating Income (Expense) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Total | 8,576 | (19,511) | 18,544 |
Other Foreign Exchange Contracts | Not Designated as Hedging Instruments | Other Nonoperating Income (Expense) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Total | $ (12,780) | $ 22,320 | $ (19,297) |
Business Combinations (Narrativ
Business Combinations (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Nov. 21, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combinations [Line Items] | ||||
Acquisition related expenses | $ 10,949 | $ 1,864 | $ 0 | |
MEDIFOX DAN | ||||
Business Combinations [Line Items] | ||||
Percentage of business acquired | 100% | |||
Purchase price | $ 997,500 |
Business Combinations (Schedule
Business Combinations (Schedule Of Tangible and Identifiable Intangible Assets and Liabilities) (Details) - USD ($) $ in Thousands | Nov. 21, 2022 | Jun. 30, 2023 | Jun. 30, 2022 |
Business Combinations [Line Items] | |||
Goodwill | $ 2,770,299 | $ 1,936,442 | |
MEDIFOX DAN | |||
Business Combinations [Line Items] | |||
Cash | $ 7,372 | ||
Accounts receivable | 16,096 | ||
Property, plant and equipment | 7,731 | ||
Equity method investment | 57,298 | ||
Other assets | 18,523 | ||
Accounts payable and accrued expenses | (19,359) | ||
Deferred revenue | (18,349) | ||
Other liabilities | (11,623) | ||
Deferred tax liabilities | (78,458) | ||
Goodwill | 767,709 | ||
Purchase price | 997,516 | ||
MEDIFOX DAN | Developed technology | |||
Business Combinations [Line Items] | |||
Identifiable intangible assets | $ 43,081 | ||
MEDIFOX DAN | Developed technology | Minimum | |||
Business Combinations [Line Items] | |||
Intangible assets - useful life | 6 years | ||
MEDIFOX DAN | Developed technology | Maximum | |||
Business Combinations [Line Items] | |||
Intangible assets - useful life | 7 years | ||
MEDIFOX DAN | Customer relationships | |||
Business Combinations [Line Items] | |||
Identifiable intangible assets | $ 175,445 | ||
MEDIFOX DAN | Customer relationships | Minimum | |||
Business Combinations [Line Items] | |||
Intangible assets - useful life | 11 years | ||
MEDIFOX DAN | Customer relationships | Maximum | |||
Business Combinations [Line Items] | |||
Intangible assets - useful life | 13 years | ||
MEDIFOX DAN | Trade names | |||
Business Combinations [Line Items] | |||
Identifiable intangible assets | $ 32,050 | ||
Intangible assets - useful life | 10 years |
Restructuring Expenses (Details
Restructuring Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 9,177 | $ 0 | $ 8,673 |
Remaining in our accruals | 7,800 | ||
Sleep And Respiratory Care Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 6,700 | ||
Saas Segment | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | $ 2,500 | ||
Portable Oxygen Concentrator Business Closure | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring expenses | 13,900 | ||
Inventory write-downs | 5,200 | ||
Accelerated amortization | 5,100 | ||
Asset impairments | 2,300 | ||
Employee-related costs | 700 | ||
Contract cancellation costs | 600 | ||
Cost of sales | 5,200 | ||
Restructuring costs | $ 8,700 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts and Reserves (Details) - Applied Against Asset Account Allowance For Doubtful Accounts - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Period | $ 23,259 | $ 32,138 | $ 30,013 |
Charged to costs and expenses | 5,770 | 2,620 | 7,805 |
Other (deductions) | (5,426) | (11,499) | (5,680) |
Balance at end of period | $ 23,603 | $ 23,259 | $ 32,138 |
Uncategorized Items - rmd-20230
Label | Element | Value |
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |