Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

May 1, 2020

false--06-30Q32020US0000943819YesYes0000943819us-gaap:TreasuryStockMember2018-07-012018-09-300000943819us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000943819us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000943819us-gaap:AdditionalPaidInCapitalMember2019-01-012019-03-310000943819us-gaap:AdditionalPaidInCapitalMember2018-07-012018-09-300000943819us-gaap:AdditionalPaidInCapitalMember2019-10-012019-12-310000943819us-gaap:AdditionalPaidInCapitalMember2018-10-012018-12-310000943819us-gaap:CommonStockMember2020-01-012020-03-310000943819us-gaap:CommonStockMember2019-07-012019-09-300000943819us-gaap:CommonStockMember2019-01-012019-03-310000943819us-gaap:CommonStockMember2018-07-012018-09-300000943819us-gaap:CommonStockMember2019-10-012019-12-310000943819us-gaap:CommonStockMember2018-10-012018-12-310000943819us-gaap:RetainedEarningsMember2020-03-310000943819us-gaap:AdditionalPaidInCapitalMember2020-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-03-310000943819us-gaap:RetainedEarningsMember2019-12-310000943819us-gaap:AdditionalPaidInCapitalMember2019-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100009438192019-12-310000943819us-gaap:RetainedEarningsMember2019-09-300000943819us-gaap:AdditionalPaidInCapitalMember2019-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-09-3000009438192019-09-300000943819us-gaap:RetainedEarningsMember2019-06-300000943819us-gaap:AdditionalPaidInCapitalMember2019-06-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-06-300000943819us-gaap:RetainedEarningsMember2019-03-310000943819us-gaap:AdditionalPaidInCapitalMember2019-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-03-310000943819us-gaap:RetainedEarningsMember2018-12-310000943819us-gaap:AdditionalPaidInCapitalMember2018-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-12-3100009438192018-12-310000943819us-gaap:AdditionalPaidInCapitalMember2018-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-09-300000943819us-gaap:RetainedEarningsMember2018-06-300000943819us-gaap:AdditionalPaidInCapitalMember2018-06-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-06-300000943819us-gaap:TreasuryStockMember2020-03-310000943819us-gaap:CommonStockMember2020-03-310000943819us-gaap:TreasuryStockMember2019-12-310000943819us-gaap:CommonStockMember2019-12-310000943819us-gaap:TreasuryStockMember2019-09-300000943819us-gaap:CommonStockMember2019-09-300000943819us-gaap:TreasuryStockMember2019-06-300000943819us-gaap:CommonStockMember2019-06-300000943819us-gaap:TreasuryStockMember2019-03-310000943819us-gaap:CommonStockMember2019-03-310000943819us-gaap:TreasuryStockMember2018-12-310000943819us-gaap:CommonStockMember2018-12-310000943819us-gaap:TreasuryStockMember2018-09-300000943819us-gaap:CommonStockMember2018-09-300000943819us-gaap:TreasuryStockMember2018-06-300000943819us-gaap:CommonStockMember2018-06-300000943819rmd:EmployeeStockPurchasePlanMember2020-03-310000943819rmd:ResmedInc2009IncentiveAwardPlanMember2020-03-310000943819rmd:ResmedInc2009IncentiveAwardPlanMember2019-07-012020-03-310000943819us-gaap:RestrictedStockUnitsRSUMember2018-07-012019-06-300000943819us-gaap:RestrictedStockUnitsRSUMember2020-03-310000943819us-gaap:RestrictedStockUnitsRSUMember2019-06-300000943819srt:MinimumMemberrmd:ResmedInc2009IncentiveAwardPlanMember2019-07-012020-03-310000943819srt:MaximumMemberrmd:ResmedInc2009IncentiveAwardPlanMember2019-07-012020-03-310000943819rmd:AllOtherBusinessesAcquisitionMember2019-07-012020-03-310000943819rmd:MatrixcareMember2019-07-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2019-07-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2019-01-012019-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2018-07-012019-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2020-01-012020-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2020-01-012020-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2020-01-012020-03-310000943819rmd:MasksMemberrmd:GlobalMember2020-01-012020-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-01-012020-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2020-01-012020-03-310000943819rmd:DevicesMemberrmd:GlobalMember2020-01-012020-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-01-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2020-01-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2020-01-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-01-012020-03-310000943819rmd:UsCanadaAndLatinAmericaMember2020-01-012020-03-310000943819rmd:GlobalMember2020-01-012020-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2019-07-012020-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2019-07-012020-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2019-07-012020-03-310000943819rmd:MasksMemberrmd:GlobalMember2019-07-012020-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-07-012020-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2019-07-012020-03-310000943819rmd:DevicesMemberrmd:GlobalMember2019-07-012020-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-07-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2019-07-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2019-07-012020-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-07-012020-03-310000943819rmd:UsCanadaAndLatinAmericaMember2019-07-012020-03-310000943819rmd:GlobalMember2019-07-012020-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2019-01-012019-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2019-01-012019-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2019-01-012019-03-310000943819rmd:MasksMemberrmd:GlobalMember2019-01-012019-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-01-012019-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2019-01-012019-03-310000943819rmd:DevicesMemberrmd:GlobalMember2019-01-012019-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-01-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2019-01-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2019-01-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2019-01-012019-03-310000943819rmd:UsCanadaAndLatinAmericaMember2019-01-012019-03-310000943819rmd:GlobalMember2019-01-012019-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2018-07-012019-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2018-07-012019-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2018-07-012019-03-310000943819rmd:MasksMemberrmd:GlobalMember2018-07-012019-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2018-07-012019-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2018-07-012019-03-310000943819rmd:DevicesMemberrmd:GlobalMember2018-07-012019-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2018-07-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2018-07-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2018-07-012019-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2018-07-012019-03-310000943819rmd:UsCanadaAndLatinAmericaMember2018-07-012019-03-310000943819rmd:GlobalMember2018-07-012019-03-310000943819us-gaap:SeriesAPreferredStockMember2020-03-310000943819us-gaap:SeriesAPreferredStockMember2019-06-300000943819us-gaap:SeriesAPreferredStockMember1997-04-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-10-012019-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-01-012019-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-10-012018-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2018-07-012018-09-3000009438192018-07-012019-06-3000009438192017-07-012018-06-3000009438192016-07-012017-06-300000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2019-07-012020-03-310000943819us-gaap:OperatingSegmentsMember2019-07-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2019-01-012019-03-310000943819us-gaap:OperatingSegmentsMember2019-01-012019-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2018-07-012019-03-310000943819us-gaap:OperatingSegmentsMember2018-07-012019-03-310000943819us-gaap:SeniorNotesMember2020-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2020-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2019-06-300000943819rmd:ResmedLimitedMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2019-07-012020-03-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-050000943819rmd:ResmedLimitedMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2019-07-012020-03-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-03-310000943819srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2019-07-012020-03-310000943819srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2019-07-012020-03-310000943819srt:MinimumMember2020-03-310000943819srt:MaximumMember2020-03-310000943819us-gaap:EquityMethodInvestmentsMember2020-03-310000943819rmd:NonMarketableSecuritiesMember2020-03-310000943819us-gaap:EquityMethodInvestmentsMember2019-06-300000943819rmd:NonMarketableSecuritiesMember2019-06-300000943819us-gaap:EquityMethodInvestmentsMember2019-03-310000943819rmd:NonMarketableSecuritiesMember2019-03-310000943819rmd:NonMarketableSecuritiesMember2018-06-300000943819srt:MinimumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYearOneToTaxYearTwoMember2019-07-012020-03-310000943819srt:MinimumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYear2009To2013Member2019-07-012020-03-310000943819srt:MaximumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYearOneToTaxYearTwoMember2019-07-012020-03-310000943819srt:MaximumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYear2009To2013Member2019-07-012020-03-310000943819us-gaap:AustralianTaxationOfficeMemberrmd:TaxYearOneToTaxYearTwoMember2019-07-012020-03-310000943819srt:MinimumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYear2009To2013Member2018-03-012018-03-310000943819srt:MaximumMemberus-gaap:AustralianTaxationOfficeMemberrmd:TaxYear2009To2013Member2018-03-012018-03-310000943819us-gaap:AustralianTaxationOfficeMember2018-03-310000943819us-gaap:AustralianTaxationOfficeMember2018-03-012018-03-310000943819us-gaap:AustralianTaxationOfficeMember2018-04-012018-04-300000943819us-gaap:EquityMethodInvestmentsMember2019-07-012020-03-310000943819us-gaap:EquityMethodInvestmentsMember2018-07-012019-03-310000943819rmd:PropellerHealthMember2018-07-012019-06-300000943819rmd:NonMarketableSecuritiesMember2019-07-012020-03-310000943819rmd:NonMarketableSecuritiesMember2018-07-012019-03-310000943819rmd:LimitedRecourseMember2020-03-310000943819rmd:FullRecourseMember2020-03-310000943819rmd:LimitedRecourseMember2019-06-300000943819rmd:FullRecourseMember2019-06-300000943819rmd:SleepAndRespiratoryMember2019-07-012020-03-310000943819rmd:SaasMember2019-07-012020-03-310000943819rmd:SleepAndRespiratoryMember2020-03-310000943819rmd:SaasMember2020-03-310000943819rmd:SleepAndRespiratoryMember2019-06-300000943819rmd:SaasMember2019-06-300000943819us-gaap:OtherIntangibleAssetsMember2020-03-310000943819us-gaap:CustomerRelationshipsMember2020-03-310000943819rmd:DevelopedOrCoreProductTechnologyMember2020-03-310000943819us-gaap:OtherIntangibleAssetsMember2019-06-300000943819us-gaap:CustomerRelationshipsMember2019-06-300000943819rmd:DevelopedOrCoreProductTechnologyMember2019-06-300000943819us-gaap:RetainedEarningsMember2020-01-012020-03-310000943819us-gaap:RetainedEarningsMember2019-10-012019-12-3100009438192019-10-012019-12-310000943819us-gaap:RetainedEarningsMember2019-07-012019-09-3000009438192019-07-012019-09-300000943819us-gaap:RetainedEarningsMember2019-01-012019-03-310000943819us-gaap:RetainedEarningsMember2018-10-012018-12-3100009438192018-10-012018-12-310000943819us-gaap:RetainedEarningsMember2018-07-012018-09-3000009438192018-07-012018-09-300000943819rmd:SeniorNotesTwoMember2019-07-012020-03-310000943819rmd:SeniorNotesOneMember2019-07-012020-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-03-310000943819rmd:SeniorNotesTwoMember2020-03-310000943819rmd:SeniorNotesOneMember2020-03-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-07-012020-03-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2019-07-012020-03-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2019-07-012020-03-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2019-07-012020-03-310000943819us-gaap:RetainedEarningsMember2018-09-3000009438192018-09-300000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2020-03-310000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2019-06-300000943819rmd:DeferredRevenueCurrentLiabilitiesMember2020-03-310000943819rmd:DeferredRevenueCurrentLiabilitiesMember2019-06-300000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2020-03-310000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2019-06-300000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-03-310000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2019-06-3000009438192019-03-3100009438192018-06-300000943819rmd:MatrixcareMemberus-gaap:TradeNamesMember2020-03-310000943819rmd:MatrixcareMemberus-gaap:DevelopedTechnologyRightsMember2020-03-310000943819rmd:MatrixcareMemberus-gaap:CustomerRelationshipsMember2020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:TradeNamesMember2020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:NoncompeteAgreementsMember2020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:DevelopedTechnologyRightsMember2020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:CustomerRelationshipsMember2020-03-310000943819us-gaap:ScenarioAdjustmentMemberrmd:MatrixcareMemberus-gaap:CustomerRelationshipsMember2019-06-300000943819srt:ScenarioPreviouslyReportedMemberrmd:MatrixcareMemberus-gaap:TradeNamesMember2019-06-300000943819srt:ScenarioPreviouslyReportedMemberrmd:MatrixcareMemberus-gaap:DevelopedTechnologyRightsMember2019-06-300000943819srt:ScenarioPreviouslyReportedMemberrmd:MatrixcareMemberus-gaap:CustomerRelationshipsMember2019-06-300000943819rmd:MatrixcareMember2020-03-310000943819rmd:AllOtherBusinessesAcquisitionMember2020-03-310000943819us-gaap:ScenarioAdjustmentMemberrmd:MatrixcareMember2019-06-300000943819srt:ScenarioPreviouslyReportedMemberrmd:MatrixcareMember2019-06-300000943819rmd:PropellerHealthMember2019-01-062019-01-060000943819rmd:HealthcarefirstHoldingCompanyMember2018-07-062018-07-060000943819rmd:SnapworxLlcMember2020-01-310000943819rmd:MatrixcareMember2018-11-130000943819rmd:HbHealthcareMember2018-10-150000943819rmd:HealthcarefirstHoldingCompanyMember2018-07-060000943819srt:ScenarioPreviouslyReportedMember2019-01-012019-03-310000943819srt:RestatementAdjustmentMember2019-01-012019-03-310000943819srt:ScenarioPreviouslyReportedMember2018-07-012019-03-310000943819srt:RestatementAdjustmentMember2018-07-012019-03-310000943819srt:MinimumMemberrmd:AllOtherBusinessesAcquisitionMemberus-gaap:DevelopedTechnologyRightsMember2019-07-012020-03-310000943819srt:MaximumMemberrmd:AllOtherBusinessesAcquisitionMemberus-gaap:DevelopedTechnologyRightsMember2019-07-012020-03-310000943819srt:MaximumMemberrmd:AllOtherBusinessesAcquisitionMemberus-gaap:CustomerRelationshipsMember2019-07-012020-03-310000943819rmd:MatrixcareMemberus-gaap:TradeNamesMember2019-07-012020-03-310000943819rmd:MatrixcareMemberus-gaap:DevelopedTechnologyRightsMember2019-07-012020-03-310000943819rmd:MatrixcareMemberus-gaap:CustomerRelationshipsMember2019-07-012020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:TradeNamesMember2019-07-012020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:NoncompeteAgreementsMember2019-07-012020-03-310000943819rmd:AllOtherBusinessesAcquisitionMemberus-gaap:CustomerRelationshipsMember2019-07-012020-03-310000943819rmd:AccountsReceivableNetMember2020-03-310000943819rmd:AccountsReceivableNetMember2019-06-300000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-052018-11-050000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-172018-04-170000943819srt:MinimumMember2019-07-012020-03-310000943819srt:MaximumMember2019-07-012020-03-310000943819us-gaap:RestrictedStockUnitsRSUMember2019-07-012020-03-310000943819rmd:LimitedRecourseMember2019-07-012020-03-310000943819rmd:LimitedRecourseMember2018-07-012019-03-310000943819rmd:FullRecourseMember2018-07-012019-03-3100009438192020-03-3100009438192019-06-300000943819us-gaap:AustralianTaxationOfficeMember2018-06-012018-06-300000943819srt:MinimumMember2019-07-012019-07-010000943819srt:MaximumMember2019-07-012019-07-010000943819us-gaap:AccountingStandardsUpdate201602Member2019-07-010000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2019-07-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2019-01-012019-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2018-07-012019-03-310000943819rmd:MatrixcareMember2018-11-132018-11-130000943819us-gaap:MaterialReconcilingItemsMember2020-01-012020-03-3100009438192020-01-012020-03-310000943819us-gaap:MaterialReconcilingItemsMember2019-07-012020-03-310000943819us-gaap:MaterialReconcilingItemsMember2019-01-012019-03-3100009438192019-01-012019-03-310000943819us-gaap:MaterialReconcilingItemsMember2018-07-012019-03-3100009438192018-07-012019-03-3100009438192020-04-2700009438192019-07-012020-03-31iso4217: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 March 31, 2020

 

 

¨

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)

(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 and post such files).    

Yes  x    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, 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. (Check one):

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.

Yes  ¨    No   ¨

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 April 27, 2020, there were 144,668,429 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 Income (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

23

Item 3

Quantitative and Qualitative Disclosures About Market Risk

34

Item 4

Controls and Procedures

36

Part II

Other Information

37

Item 1

Legal Proceedings

37

Item 1A

Risk Factors

37

  

Item 2

Unregistered Sales of Equity Securities and Use of Proceeds

38

Item 3

Defaults Upon Senior Securities

38

Item 4

Mine Safety Disclosures

38

  

Item 5

Other Information

38

Item 6

Exhibits

39

Signatures

40

 

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)

March 31,
2020

June 30,
2019

Assets

Current assets:

Cash and cash equivalents

$

352,861 

$

147,128 

Accounts receivable, net of allowance for doubtful accounts of $28,833 and $25,171
  at March 31, 2020 and June 30, 2019, respectively

554,859 

528,484 

Inventories (note 3)

358,772 

349,641 

Prepaid expenses and other current assets

203,266 

120,113 

Total current assets

1,469,758 

1,145,366 

Non-current assets:

Property, plant and equipment, net (note 3)

397,209 

387,460 

Operating lease right-of-use assets (note 9)

126,277 

-

Goodwill (note 4)

1,884,458 

1,856,449 

Other intangible assets, net (note 3)

464,963 

521,950 

Deferred income taxes

27,321 

45,478 

Prepaid taxes and other non-current assets

140,557 

150,979 

Total non-current assets

3,040,785 

2,962,316 

Total assets

$

4,510,543 

$

4,107,682 

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

116,148 

$

115,725 

Accrued expenses

235,201 

266,359 

Operating lease liabilities, current (note 9)

22,795 

-

Deferred revenue

97,110 

88,667 

Income taxes payable (note 6)

68,278 

73,248 

Short-term debt, net (note 8)

11,987 

11,992 

Total current liabilities

551,519 

555,991 

Non-current liabilities:

Deferred revenue

84,615 

81,143 

Deferred income taxes

25,441 

11,380 

Operating lease liabilities, non-current (note 9)

107,251 

-

Other long-term liabilities

7,527 

2,058 

Long-term debt, net (note 8)

1,364,849 

1,258,861 

Long-term income taxes payable (note 6)

112,910 

126,056 

Total non-current liabilities

1,702,593 

1,479,498 

Total liabilities

2,254,112 

2,035,489 

Commitments and contingencies (note 12)

 

 

Stockholders’ equity: (note 10)

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

-

-

Common stock, $0.004 par value, 350,000,000 shares authorized;
  186,498,704 issued and 144,662,470 outstanding at March 31, 2020 and
  185,491,064 issued and 143,654,830 outstanding at June 30, 2019

579 

575 

Additional paid-in capital

1,533,905 

1,511,473 

Retained earnings

2,711,639 

2,436,410 

Treasury stock, at cost, 41,836,234 shares at March 31, 2020 and June 30, 2019

(1,623,256)

(1,623,256)

Accumulated other comprehensive loss

(366,436)

(253,009)

Total stockholders’ equity

2,256,431 

2,072,193 

Total liabilities and stockholders’ equity

$

4,510,543 

$

4,107,682 

 

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 Income (Unaudited)

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

Three Months Ended
March 31,

Nine Months Ended
March 31,

2020

2019

2020

2019

Net revenue

$

769,455 

$

662,228 

$

2,186,669 

$

1,901,608 

 

Cost of sales (exclusive of amortization shown separately below)

307,657 

270,318 

880,633 

782,874 

Amortization of acquired intangible assets

12,136 

10,940 

37,623 

27,095 

Total cost of sales

319,793 

281,258 

918,256 

809,969 

Gross profit

449,662 

380,970 

1,268,413 

1,091,639 

 

Selling, general and administrative

172,441 

164,529 

511,304 

473,410 

Research and development

51,449 

47,610 

149,425 

129,513 

Amortization of acquired intangible assets

8,272 

11,854 

21,872 

24,406 

Litigation settlement expenses

-

-

(600)

-

Acquisition related expenses

-

-

-

6,123 

Total operating expenses

232,162 

223,993 

682,001 

633,452 

Income from operations

217,500 

156,977 

586,412 

458,187 

Other income (loss), net:

Interest income

116 

415 

766 

2,014 

Interest expense

(9,968)

(12,413)

(31,180)

(23,608)

Loss attributable to equity method investments (note 5)

(5,295)

(5,996)

(19,082)

(9,371)

Other, net

(10,698)

(1,054)

(15,922)

(4,140)

Total other income (loss), net

(25,845)

(19,048)

(65,418)

(35,105)

Income before income taxes

191,655 

137,929 

520,994 

423,082 

Income taxes

28,518 

32,513 

77,155 

87,291 

Net income

$

163,137 

$

105,416 

$

443,839 

$

335,791 

Basic earnings per share (note 11)

$

1.13 

$

0.74 

$

3.08 

$

2.35 

Diluted earnings per share (note 11)

$

1.12 

$

0.73 

$

3.05 

$

2.33 

Dividend declared per share

$

0.39 

$

0.37 

$

1.17 

$

1.11 

Basic shares outstanding (000's)

144,638 

143,316 

144,112 

142,907 

Diluted shares outstanding (000's)

145,680 

144,333 

145,490 

144,344 

 


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
March 31,

Nine Months Ended
March 31,

2020

2019

2020

2019

Net income

$

163,137 

$

105,416 

$

443,839 

$

335,791 

Other comprehensive income (loss):

Foreign currency translation (loss) gain adjustments

(120,318)

(2,501)

(113,427)

(28,490)

Comprehensive income

$

42,819 

$

102,915 

$

330,412 

$

307,301 

 

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, 2019

185,491 

$

575 

$

1,511,473 

(41,836)

$

(1,623,256)

$

2,436,410 

$

(253,009)

$

2,072,193 

Common stock issued on exercise of options

110 

-

5,609 

-

-

-

-

5,609 

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

4 

-

(327)

-

-

-

-

(327)

Stock-based compensation costs

-

-

13,256 

-

-

-

-

13,256 

Other comprehensive income

-

-

-

-

-

-

(37,576)

(37,576)

Net income

-

-

-

-

-

120,148 

-

120,148 

Dividends declared

-

-

-

-

-

(56,052)

-

(56,052)

Balance, September 30, 2019

185,605 

$

575 

$

1,530,011 

(41,836)

$

(1,623,256)

$

2,500,506 

$

(290,585)

$

2,117,251 

Common stock issued on exercise of options

117 

-

6,498 

-

-

-

-

6,498 

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

576 

3 

(40,764)

-

-

-

-

(40,761)

Common stock issued on employee stock purchase plan

137 

-

12,190 

-

-

-

-

12,190 

Treasury stock purchases

-

-

-

-

-

-

-

Stock-based compensation costs

-

-

14,057 

-

-

-

-

14,057 

Other comprehensive income

-

-

-

-

-

-

44,467 

44,467 </