Form 10-Q RESMED INC For: Dec 31

January 28, 2022 6:03 AM EST

Get inside Wall Street with StreetInsider Premium. Claim your 1-week free trial here.
rmd-20211231x10q
false--06-30Q22022US0000943819YesYes0000943819us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300000943819us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000943819us-gaap:AdditionalPaidInCapitalMember2021-10-012021-12-310000943819us-gaap:AdditionalPaidInCapitalMember2020-10-012020-12-310000943819us-gaap:CommonStockMember2021-07-012021-09-300000943819us-gaap:CommonStockMember2020-07-012020-09-300000943819us-gaap:CommonStockMember2021-10-012021-12-310000943819us-gaap:CommonStockMember2020-10-012020-12-310000943819us-gaap:RetainedEarningsMember2021-12-310000943819us-gaap:AdditionalPaidInCapitalMember2021-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310000943819us-gaap:RetainedEarningsMember2021-09-300000943819us-gaap:AdditionalPaidInCapitalMember2021-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-3000009438192021-09-300000943819us-gaap:RetainedEarningsMember2021-06-300000943819us-gaap:AdditionalPaidInCapitalMember2021-06-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-300000943819us-gaap:RetainedEarningsMember2020-12-310000943819us-gaap:AdditionalPaidInCapitalMember2020-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310000943819srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-09-300000943819us-gaap:RetainedEarningsMember2020-09-300000943819us-gaap:AdditionalPaidInCapitalMember2020-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000943819srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-09-3000009438192020-09-300000943819us-gaap:RetainedEarningsMember2020-06-300000943819us-gaap:AdditionalPaidInCapitalMember2020-06-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000943819us-gaap:TreasuryStockMember2021-12-310000943819us-gaap:CommonStockMember2021-12-310000943819us-gaap:TreasuryStockMember2021-09-300000943819us-gaap:CommonStockMember2021-09-300000943819us-gaap:TreasuryStockMember2021-06-300000943819us-gaap:CommonStockMember2021-06-300000943819us-gaap:TreasuryStockMember2020-12-310000943819us-gaap:CommonStockMember2020-12-310000943819us-gaap:TreasuryStockMember2020-09-300000943819us-gaap:CommonStockMember2020-09-300000943819us-gaap:TreasuryStockMember2020-06-300000943819us-gaap:CommonStockMember2020-06-300000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2021-10-012021-12-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2021-10-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:UsCanadaAndLatinAmericaMember2021-10-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:GlobalMember2021-10-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-10-012021-12-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2021-10-012021-12-310000943819rmd:MasksMemberrmd:GlobalMember2021-10-012021-12-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-10-012021-12-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2021-10-012021-12-310000943819rmd:DevicesMemberrmd:GlobalMember2021-10-012021-12-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-10-012021-12-310000943819rmd:UsCanadaAndLatinAmericaMember2021-10-012021-12-310000943819rmd:GlobalMember2021-10-012021-12-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2021-07-012021-12-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2021-07-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:UsCanadaAndLatinAmericaMember2021-07-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:GlobalMember2021-07-012021-12-310000943819rmd:SleepAndRespiratoryMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-07-012021-12-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2021-07-012021-12-310000943819rmd:MasksMemberrmd:GlobalMember2021-07-012021-12-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-07-012021-12-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2021-07-012021-12-310000943819rmd:DevicesMemberrmd:GlobalMember2021-07-012021-12-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-07-012021-12-310000943819rmd:UsCanadaAndLatinAmericaMember2021-07-012021-12-310000943819rmd:GlobalMember2021-07-012021-12-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2020-10-012020-12-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2020-10-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:UsCanadaAndLatinAmericaMember2020-10-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:GlobalMember2020-10-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-10-012020-12-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2020-10-012020-12-310000943819rmd:MasksMemberrmd:GlobalMember2020-10-012020-12-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-10-012020-12-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2020-10-012020-12-310000943819rmd:DevicesMemberrmd:GlobalMember2020-10-012020-12-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-10-012020-12-310000943819rmd:UsCanadaAndLatinAmericaMember2020-10-012020-12-310000943819rmd:GlobalMember2020-10-012020-12-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012020-12-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2020-07-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:GlobalMember2020-07-012020-12-310000943819rmd:SleepAndRespiratoryMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012020-12-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012020-12-310000943819rmd:MasksMemberrmd:GlobalMember2020-07-012020-12-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012020-12-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012020-12-310000943819rmd:DevicesMemberrmd:GlobalMember2020-07-012020-12-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012020-12-310000943819rmd:UsCanadaAndLatinAmericaMember2020-07-012020-12-310000943819rmd:GlobalMember2020-07-012020-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-012021-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000943819us-gaap:OperatingSegmentsMember2021-10-012021-12-310000943819us-gaap:OperatingSegmentsMember2021-07-012021-12-310000943819us-gaap:OperatingSegmentsMember2020-10-012020-12-310000943819us-gaap:OperatingSegmentsMember2020-07-012020-12-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2021-12-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2021-06-300000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2020-07-012021-06-300000943819us-gaap:SeniorNotesMember2021-12-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2021-12-310000943819us-gaap:SeniorNotesMember2021-06-300000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2021-06-300000943819rmd:ResmedLimitedMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-07-012021-12-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-050000943819rmd:ResmedLimitedMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-07-012021-12-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-12-310000943819srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-07-012021-12-310000943819srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-07-012021-12-310000943819us-gaap:DomesticCountryMemberus-gaap:AustralianTaxationOfficeMember2021-12-310000943819rmd:SleepAndRespiratoryMember2021-07-012021-12-310000943819rmd:SaasMember2021-07-012021-12-310000943819rmd:SleepAndRespiratoryMember2021-12-310000943819rmd:SaasMember2021-12-310000943819rmd:SleepAndRespiratoryMember2021-06-300000943819rmd:SaasMember2021-06-300000943819us-gaap:OtherIntangibleAssetsMember2021-12-310000943819us-gaap:CustomerRelationshipsMember2021-12-310000943819rmd:DevelopedOrCoreProductTechnologyMember2021-12-310000943819us-gaap:OtherIntangibleAssetsMember2021-06-300000943819us-gaap:CustomerRelationshipsMember2021-06-300000943819rmd:DevelopedOrCoreProductTechnologyMember2021-06-300000943819us-gaap:RetainedEarningsMember2021-10-012021-12-310000943819us-gaap:RetainedEarningsMember2021-07-012021-09-300000943819us-gaap:RetainedEarningsMember2020-10-012020-12-310000943819us-gaap:RetainedEarningsMember2020-07-012020-09-300000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2021-10-012021-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SleepAndRespiratoryMember2021-10-012021-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2021-07-012021-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SleepAndRespiratoryMember2021-07-012021-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2020-10-012020-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SleepAndRespiratoryMember2020-10-012020-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2020-07-012020-12-310000943819us-gaap:OperatingSegmentsMemberrmd:SleepAndRespiratoryMember2020-07-012020-12-310000943819rmd:RevolvingCreditAgreementTermCreditAgreementAndSeniorNotesMember2021-12-310000943819rmd:SeniorNotesTwoMember2021-07-012021-12-310000943819rmd:SeniorNotesOneMember2021-07-012021-12-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-12-310000943819rmd:SeniorNotesTwoMember2021-12-310000943819rmd:SeniorNotesOneMember2021-12-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-07-012021-12-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2021-07-012021-12-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-07-012021-12-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2021-07-012021-12-310000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2021-12-310000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2021-06-300000943819rmd:DeferredRevenueCurrentLiabilitiesMember2021-12-310000943819rmd:DeferredRevenueCurrentLiabilitiesMember2021-06-300000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2021-12-310000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2021-06-300000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-12-310000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-06-3000009438192021-07-012021-09-3000009438192020-07-012020-09-300000943819rmd:SoftwareAsServiceMember2021-10-012021-12-310000943819rmd:SleepAndRespiratoryMember2021-10-012021-12-310000943819rmd:SoftwareAsServiceMember2021-07-012021-12-310000943819rmd:SleepAndRespiratoryMember2021-07-012021-12-310000943819rmd:SoftwareAsServiceMember2020-10-012020-12-310000943819rmd:SleepAndRespiratoryMember2020-10-012020-12-310000943819rmd:SoftwareAsServiceMember2020-07-012020-12-310000943819rmd:SleepAndRespiratoryMember2020-07-012020-12-310000943819rmd:AccountsReceivableNetMember2021-12-310000943819rmd:AccountsReceivableNetMember2021-06-300000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-052018-11-050000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-172018-04-170000943819srt:MinimumMember2021-07-012021-12-310000943819srt:MaximumMember2021-07-012021-12-310000943819rmd:PortableOxygenConcentratorBusinessClosureMember2020-10-012020-12-310000943819rmd:PortableOxygenConcentratorBusinessClosureMember2020-07-012020-12-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2021-07-012021-12-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2020-07-012020-12-310000943819us-gaap:DomesticCountryMemberus-gaap:AustralianTaxationOfficeMember2021-09-282021-09-280000943819us-gaap:DomesticCountryMemberus-gaap:AustralianTaxationOfficeMember2021-07-012021-12-310000943819us-gaap:EquityMethodInvestmentsMember2021-12-310000943819rmd:NonMarketableSecuritiesMember2021-12-310000943819rmd:MarketableSecuritiesMember2021-12-3100009438192021-12-310000943819us-gaap:EquityMethodInvestmentsMember2021-06-300000943819rmd:NonMarketableSecuritiesMember2021-06-300000943819rmd:MarketableSecuritiesMember2021-06-3000009438192021-06-300000943819us-gaap:EquityMethodInvestmentsMember2020-12-310000943819rmd:NonMarketableSecuritiesMember2020-12-310000943819rmd:MarketableSecuritiesMember2020-12-3100009438192020-12-310000943819us-gaap:EquityMethodInvestmentsMember2020-06-300000943819rmd:NonMarketableSecuritiesMember2020-06-300000943819rmd:MarketableSecuritiesMember2020-06-3000009438192020-06-300000943819us-gaap:MaterialReconcilingItemsMember2021-10-012021-12-310000943819us-gaap:CorporateNonSegmentMember2021-10-012021-12-3100009438192021-10-012021-12-310000943819us-gaap:MaterialReconcilingItemsMember2021-07-012021-12-310000943819us-gaap:CorporateNonSegmentMember2021-07-012021-12-310000943819us-gaap:MaterialReconcilingItemsMember2020-10-012020-12-310000943819us-gaap:CorporateNonSegmentMember2020-10-012020-12-3100009438192020-10-012020-12-310000943819us-gaap:MaterialReconcilingItemsMember2020-07-012020-12-310000943819us-gaap:CorporateNonSegmentMember2020-07-012020-12-310000943819us-gaap:EquityMethodInvestmentsMember2021-07-012021-12-310000943819rmd:NonMarketableSecuritiesMember2021-07-012021-12-310000943819rmd:MarketableSecuritiesMember2021-07-012021-12-310000943819us-gaap:EquityMethodInvestmentsMember2020-07-012020-12-310000943819rmd:NonMarketableSecuritiesMember2020-07-012020-12-310000943819rmd:MarketableSecuritiesMember2020-07-012020-12-3100009438192020-07-012020-12-3100009438192022-01-2400009438192021-07-012021-12-31rmd:segmentiso4217:USDxbrli:sharesxbrli:pureiso4217:USDxbrli:shares

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

______________________________________________________________________________________________

FORM 10-Q

 

______________________________________________________________________________________________

(Mark One)

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended December 31, 2021

 

 

¨

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______to _______

Commission File Number: 001-15317

______________________________________________________________________________________________

ResMed Inc.

(Exact name of registrant as specified in its charter)

______________________________________________________________________________________________

Delaware

(State or other jurisdiction of incorporation or organization)

98-0152841

(I.R.S. Employer Identification No.)

9001 Spectrum Center Blvd.

San Diego, CA 92123

United States of America

(Address of principal executive offices, including zip code)

(858) 836-5000

(Registrant’s telephone number, including area code)

 

______________________________________________________________________________________________

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class

Trading

Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.004 per share

RMD

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  x    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    

Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.:

Large Accelerated Filer

x

  

Accelerated Filer

 

¨

Non-Accelerated Filer

 

¨  

  

Smaller Reporting Company

 

¨

Emerging Growth Company

¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨    

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No   x

At January 24, 2022 there were 146,234,244 shares of Common Stock ($0.004 par value) outstanding. This number excludes 41,836,234 shares held by the registrant as treasury shares. 

RESMED INC. AND SUBSIDIARIES

Index

Part I

Financial Information

3

Item 1

Financial Statements

3

Condensed Consolidated Balance Sheets (Unaudited)

3

Condensed Consolidated Statements of Operations (Unaudited)

4

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

5

Condensed Consolidated Statements of Changes in Equity (Unaudited)

6

Condensed Consolidated Statements of Cash Flows (Unaudited)

8

Notes to the Condensed Consolidated Financial Statements (Unaudited)

9

Item 2

Management’s Discussion and Analysis of Financial Condition and Results of Operations

18

Item 3

Quantitative and Qualitative Disclosures About Market Risk

30

Item 4

Controls and Procedures

32

Part II

Other Information

33

Item 1

Legal Proceedings

33

Item 1A

Risk Factors

33

  

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

33

Item 3

Defaults Upon Senior Securities

33

Item 4

Mine Safety Disclosures

33

  

Item 5

Other Information

33

Item 6

Exhibits

34

Signatures

35

 

2


Table of Contents

PART I – FINANCIAL INFORMATION

Item 1

Item 1. Financial Statements

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets (Unaudited)

(In US$ and in thousands, except share and per share data)

December 31,
2021

June 30,
2021

Assets

Current assets:

Cash and cash equivalents

$

194,476 

$

295,278 

Accounts receivable, net of allowances of $28,215 and $32,138
  at December 31, 2021 and June 30, 2021, respectively

526,036 

614,292 

Inventories (note 3)

592,146 

457,033 

Prepaid taxes

89,229 

72,409 

Prepaid expenses and other current assets

145,353 

135,745 

Total current assets

1,547,240 

1,574,757 

Non-current assets:

Property, plant and equipment, net (note 3)

477,778 

463,490 

Operating lease right-of-use assets

146,045 

128,575 

Goodwill (note 4)

1,951,459 

1,927,901 

Other intangible assets, net (note 3)

372,013 

392,582 

Deferred income taxes

74,669 

79,904 

Prepaid taxes and other non-current assets

165,538 

160,916 

Total non-current assets

3,187,502 

3,153,368 

Total assets

$

4,734,742 

$

4,728,125 

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

163,369 

$

138,008 

Accrued expenses

286,803 

320,599 

Operating lease liabilities, current

23,912 

23,585 

Deferred revenue

111,647 

109,611 

Income taxes payable (note 6)

23,333 

307,963 

Short-term debt, net (note 8)

12,000 

12,000 

Total current liabilities

621,064 

911,766 

Non-current liabilities:

Deferred revenue

94,427 

91,496 

Deferred income taxes

12,873 

11,319 

Operating lease liabilities, non-current

132,970 

114,779 

Other long-term liabilities

6,350 

6,802 

Long-term debt, net (note 8)

667,979 

643,351 

Long-term income taxes payable (note 6)

53,244 

62,933 

Total non-current liabilities

967,843 

930,680 

Total liabilities

1,588,907 

1,842,446 

Commitments and contingencies (note 10)

 

 

Stockholders’ equity:

Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued

-

-

Common stock, $0.004 par value, 350,000,000 shares authorized;
  188,048,404 issued and 146,212,170 outstanding at December 31, 2021 and
  187,484,592 issued and 145,648,358 outstanding at June 30, 2021

585 

583 

Additional paid-in capital

1,629,031 

1,622,199 

Retained earnings

3,362,570 

3,079,640 

Treasury stock, at cost, 41,836,234 shares at December 31, 2021 and June 30, 2021

(1,623,256)

(1,623,256)

Accumulated other comprehensive loss

(223,095)

(193,487)

Total stockholders’ equity

3,145,835 

2,885,679 

Total liabilities and stockholders’ equity

$

4,734,742 

$

4,728,125 

 

See the accompanying notes to the unaudited condensed consolidated financial statements.

3


Table of Contents

PART I – FINANCIAL INFORMATION

Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(In US$ and in thousands, except per share data)

Three Months Ended
December 31,

Six Months Ended
December 31,

2021

2020

2021

2020

Net revenue - Sleep and Respiratory Care products

$

795,840 

$

708,178 

$

1,602,339 

$

1,367,979 

Net revenue - Software as a Service

99,034 

91,833 

196,551 

183,976 

Net revenue

894,874 

800,011 

1,798,890 

1,551,955 

Cost of sales - Sleep and Respiratory Care products

343,194 

293,862 

692,876 

562,852 

Cost of sales - Software as a Service

36,131 

32,502 

73,117 

64,816 

Cost of sales (exclusive of amortization shown separately below)

379,325 

326,364 

765,993 

627,668 

Amortization of acquired intangible assets - Sleep and Respiratory Care products

1,072 

1,140 

1,972 

3,095 

Amortization of acquired intangible assets - Software as a Service

10,159 

10,024 

20,317 

20,048 

Amortization of acquired intangible assets

11,231 

11,164 

22,289 

23,143 

Total cost of sales

390,556 

337,528 

788,282 

650,811 

Gross profit

504,318 

462,483 

1,010,608 

901,144 

 

Selling, general, and administrative

185,362 

169,470 

362,082 

328,459 

Research and development

62,507 

54,935 

122,457 

109,468 

Amortization of acquired intangible assets

7,738 

7,689 

15,445 

15,932 

Restructuring expenses (note 11)

-

8,673 

-

8,673 

Total operating expenses

255,607 

240,767 

499,984 

462,532 

Income from operations

248,711 

221,716 

510,624 

438,612 

Other income (loss), net:

Interest (expense) income, net

(5,948)

(5,792)

(11,308)

(12,517)

Loss attributable to equity method investments (note 5)

(1,914)

(2,640)

(3,300)

(4,928)

Gain (loss) on equity investments (note 5)

(4,404)

(3,700)

1,208 

4,776 

Other, net

841 

1,008 

(1,150)

503 

Total other income (loss), net

(11,425)

(11,124)

(14,550)

(12,166)

Income before income taxes

237,286 

210,592 

496,074 

426,446 

Income taxes

35,535 

31,078 

90,710 

68,560 

Net income

$

201,751 

$

179,514 

$

405,364 

$

357,886 

Basic earnings per share (note 9)

$

1.38 

$

1.24 

$

2.78 

$

2.47 

Diluted earnings per share (note 9)

$

1.37 

$

1.23 

$

2.76 

$

2.45 

Dividend declared per share

$

0.42 

$

0.39 

$

0.84 

$

0.78 

Basic shares outstanding (000's)

145,990 

145,246 

145,835 

145,053 

Diluted shares outstanding (000's)

147,040 

146,421 

147,044 

146,350 

 0


See the accompanying notes to the unaudited condensed consolidated financial statements.

4


Table of Contents

PART I – FINANCIAL INFORMATION

Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(In US$ and in thousands)

Three Months Ended
December 31,

Six Months Ended
December 31,

2021

2020

2021

2020

Net income

$

201,751 

$

179,514 

$

405,364 

$

357,886 

Other comprehensive income (loss):

Foreign currency translation (loss) gain adjustments

(6,092)

77,040 

(29,608)

120,831 

Comprehensive income

$

195,659 

$

256,554 

$

375,756 

$

478,717 

 

See the accompanying notes to the unaudited condensed consolidated financial statements.

5


Table of Contents

PART I – FINANCIAL INFORMATION

Item 1

RESMED INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity (Unaudited)

(In US$ and in thousands)

Common Stock

Additional
Paid-in

Treasury Stock

Retained

Accumulated
Other
Comprehensive

Shares

Amount

Capital

Shares

Amount

Earnings

Income (Loss)

Total

Balance, June 30, 2021

187,485 

$

583 

$

1,622,199 

(41,836)

$

(1,623,256)

$

3,079,640 

$

(193,487)

$

2,885,679 

Common stock issued on exercise of options

61 

-

4,354 

-

-

-

-

4,354 

Common stock issued on vesting of restricted stock units, net of shares withheld for tax

1 

-

(195)

-

-

-

-

(195)

Stock-based compensation costs

-

-

17,303 

-

-

-

-

17,303 

Other comprehensive income

-

-

-

-

-

-

(23,516)

(23,516)

Net income

-

-

-

-

-

203,613 

-

203,613 

Dividends declared ($0.42 per common share)

-

-

-

-

-

(61,189)

-

(61,189)

Balance, September 30, 2021

187,547 

$

583 

$

1,643,661 

(41,836)

$

(1,623,256)

$

3,222,064 

$

(217,003)

$

3,026,049 

Common stock issued on exercise of options

39 

-