Form: 10-Q

Quarterly report pursuant to Section 13 or 15(d)

April 30, 2021

false--06-30Q32021US0000943819YesYes0000943819us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300000943819us-gaap:AdditionalPaidInCapitalMember2020-01-012020-03-310000943819us-gaap:AdditionalPaidInCapitalMember2019-07-012019-09-300000943819us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310000943819us-gaap:AdditionalPaidInCapitalMember2020-10-012020-12-310000943819us-gaap:AdditionalPaidInCapitalMember2019-10-012019-12-310000943819us-gaap:CommonStockMember2021-01-012021-03-310000943819us-gaap:CommonStockMember2020-07-012020-09-300000943819us-gaap:CommonStockMember2020-01-012020-03-310000943819us-gaap:CommonStockMember2019-07-012019-09-300000943819us-gaap:CommonStockMember2020-10-012020-12-310000943819us-gaap:CommonStockMember2019-10-012019-12-310000943819us-gaap:RetainedEarningsMember2021-03-310000943819us-gaap:AdditionalPaidInCapitalMember2021-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310000943819us-gaap:RetainedEarningsMember2020-12-310000943819us-gaap:AdditionalPaidInCapitalMember2020-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-3100009438192020-12-310000943819srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2020-09-300000943819us-gaap:RetainedEarningsMember2020-09-300000943819us-gaap:AdditionalPaidInCapitalMember2020-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-300000943819srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-09-3000009438192020-09-300000943819srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:AccountingStandardsUpdate201613Member2020-06-300000943819us-gaap:RetainedEarningsMember2020-06-300000943819us-gaap:AdditionalPaidInCapitalMember2020-06-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-300000943819us-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:TreasuryStockMember2021-03-310000943819us-gaap:CommonStockMember2021-03-310000943819us-gaap:TreasuryStockMember2020-12-310000943819us-gaap:CommonStockMember2020-12-310000943819us-gaap:TreasuryStockMember2020-09-300000943819us-gaap:CommonStockMember2020-09-300000943819us-gaap:TreasuryStockMember2020-06-300000943819us-gaap:CommonStockMember2020-06-300000943819us-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:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2021-01-012021-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2021-01-012021-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2021-01-012021-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2021-01-012021-03-310000943819rmd:MasksMemberrmd:GlobalMember2021-01-012021-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-01-012021-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2021-01-012021-03-310000943819rmd:DevicesMemberrmd:GlobalMember2021-01-012021-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-01-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2021-01-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2021-01-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2021-01-012021-03-310000943819rmd:UsCanadaAndLatinAmericaMember2021-01-012021-03-310000943819rmd:GlobalMember2021-01-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2020-07-012021-03-310000943819rmd:SoftwareAsServiceMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012021-03-310000943819rmd:SoftwareAsServiceMemberrmd:GlobalMember2020-07-012021-03-310000943819rmd:MasksMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012021-03-310000943819rmd:MasksMemberrmd:GlobalMember2020-07-012021-03-310000943819rmd:MasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012021-03-310000943819rmd:DevicesMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012021-03-310000943819rmd:DevicesMemberrmd:GlobalMember2020-07-012021-03-310000943819rmd:DevicesMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:UsCanadaAndLatinAmericaMember2020-07-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:GlobalMember2020-07-012021-03-310000943819rmd:DevicesAndMasksMemberrmd:CombinedEuropeAsiaAndOtherMarketsMember2020-07-012021-03-310000943819rmd:UsCanadaAndLatinAmericaMember2020-07-012021-03-310000943819rmd:GlobalMember2020-07-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2020-01-012020-03-310000943819rmd: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:GlobalMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceBeforeDeferredRevenueAdjustmentMember2019-07-012020-03-310000943819rmd: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:GlobalMember2019-07-012020-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-012020-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-03-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-10-012019-12-310000943819us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-07-012019-09-300000943819rmd:SoftwareAsServiceMember2020-07-012021-03-310000943819rmd:DevicesAndMasksMember2020-07-012021-03-310000943819us-gaap:OperatingSegmentsMember2021-01-012021-03-310000943819us-gaap:OperatingSegmentsMember2020-07-012021-03-310000943819us-gaap:OperatingSegmentsMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMember2019-07-012020-03-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2021-03-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2020-06-300000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2019-07-012020-06-300000943819us-gaap:SeniorNotesMember2021-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2021-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMember2020-06-300000943819rmd:ResmedLimitedMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-07-012021-03-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-050000943819rmd:ResmedLimitedMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2018-04-170000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-170000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-07-012021-03-310000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-03-310000943819srt:MinimumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-07-012021-03-310000943819srt:MaximumMemberus-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2020-07-012021-03-310000943819rmd:TaxYearOneToTaxYearTwoMember2021-03-310000943819rmd:TaxYear2009To2013Member2020-07-012021-03-310000943819rmd:TaxYearOneToTaxYearTwoMember2021-01-012021-03-310000943819rmd:TaxYearOneToTaxYearTwoMember2020-07-012021-03-310000943819rmd:SleepAndRespiratoryMember2020-07-012021-03-310000943819rmd:SaasMember2020-07-012021-03-310000943819rmd:SleepAndRespiratoryMember2021-03-310000943819rmd:SaasMember2021-03-310000943819rmd:SleepAndRespiratoryMember2020-06-300000943819rmd:SaasMember2020-06-300000943819us-gaap:OtherIntangibleAssetsMember2021-03-310000943819us-gaap:CustomerRelationshipsMember2021-03-310000943819rmd:DevelopedOrCoreProductTechnologyMember2021-03-310000943819us-gaap:OtherIntangibleAssetsMember2020-06-300000943819us-gaap:CustomerRelationshipsMember2020-06-300000943819rmd:DevelopedOrCoreProductTechnologyMember2020-06-300000943819us-gaap:RetainedEarningsMember2021-01-012021-03-310000943819us-gaap:RetainedEarningsMember2020-10-012020-12-3100009438192020-10-012020-12-310000943819us-gaap:RetainedEarningsMember2020-07-012020-09-3000009438192020-07-012020-09-300000943819us-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:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2021-01-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2021-01-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2020-07-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2020-07-012021-03-310000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2020-01-012020-03-310000943819us-gaap:OperatingSegmentsMemberrmd:DevicesAndMasksMember2019-07-012020-03-310000943819rmd:RevolvingCreditAgreementTermCreditAgreementAndSeniorNotesMember2021-03-310000943819rmd:SeniorNotesTwoMember2020-07-012021-03-310000943819rmd:SeniorNotesOneMember2020-07-012021-03-310000943819rmd:RevolvingCreditFacilityAndTermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMember2021-03-310000943819rmd:SeniorNotesTwoMember2021-03-310000943819rmd:SeniorNotesOneMember2021-03-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-012021-03-310000943819rmd:ResmedLimitedMembersrt:MinimumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2020-07-012021-03-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:LondonInterbankOfferedRateLIBORMember2020-07-012021-03-310000943819rmd:ResmedLimitedMembersrt:MaximumMemberrmd:TermLoanCreditAgreementMemberrmd:MufgUnionBankNaAndWestpacBankingCorporationMemberus-gaap:BaseRateMember2020-07-012021-03-310000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2021-03-310000943819rmd:DeferredRevenueNonCurrentLiabilitiesMember2020-06-300000943819rmd:DeferredRevenueCurrentLiabilitiesMember2021-03-310000943819rmd:DeferredRevenueCurrentLiabilitiesMember2020-06-300000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2021-03-310000943819rmd:PrepaidTaxesAndOtherNonCurrentAssetsMember2020-06-300000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2021-03-310000943819us-gaap:PrepaidExpensesAndOtherCurrentAssetsMember2020-06-300000943819rmd:SoftwareAsServiceMember2021-01-012021-03-310000943819rmd:SleepAndRespiratoryMember2021-01-012021-03-310000943819rmd:SoftwareAsServiceMember2020-07-012021-03-310000943819rmd:SleepAndRespiratoryMember2020-07-012021-03-310000943819rmd:SoftwareAsServiceMember2020-01-012020-03-310000943819rmd:SleepAndRespiratoryMember2020-01-012020-03-310000943819rmd:SoftwareAsServiceMember2019-07-012020-03-310000943819rmd:SleepAndRespiratoryMember2019-07-012020-03-310000943819rmd:AccountsReceivableNetMember2021-03-310000943819rmd:AccountsReceivableNetMember2020-06-300000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-11-052018-11-050000943819us-gaap:RevolvingCreditFacilityMemberrmd:MufgUnionBankMember2018-04-172018-04-170000943819srt:MinimumMember2020-07-012021-03-310000943819srt:MaximumMember2020-07-012021-03-310000943819rmd:PortableOxygenConcentratorBusinessClosureMember2020-07-012021-03-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2020-07-012021-03-310000943819us-gaap:GuaranteeOfIndebtednessOfOthersMember2019-07-012020-03-310000943819us-gaap:EquityMethodInvestmentsMember2021-03-310000943819rmd:NonMarketableSecuritiesMember2021-03-310000943819rmd:MarketableSecuritiesMember2021-03-3100009438192021-03-310000943819us-gaap:EquityMethodInvestmentsMember2020-06-300000943819rmd:NonMarketableSecuritiesMember2020-06-300000943819rmd:MarketableSecuritiesMember2020-06-3000009438192020-06-300000943819us-gaap:EquityMethodInvestmentsMember2020-03-310000943819rmd:NonMarketableSecuritiesMember2020-03-310000943819rmd:MarketableSecuritiesMember2020-03-3100009438192020-03-310000943819us-gaap:EquityMethodInvestmentsMember2019-06-300000943819rmd:NonMarketableSecuritiesMember2019-06-300000943819rmd:MarketableSecuritiesMember2019-06-3000009438192019-06-300000943819us-gaap:OperatingSegmentsMemberrmd:SoftwareAsServiceMember2019-07-012020-03-310000943819us-gaap:MaterialReconcilingItemsMember2021-01-012021-03-310000943819us-gaap:CorporateNonSegmentMember2021-01-012021-03-3100009438192021-01-012021-03-310000943819us-gaap:MaterialReconcilingItemsMember2020-07-012021-03-310000943819us-gaap:CorporateNonSegmentMember2020-07-012021-03-310000943819us-gaap:MaterialReconcilingItemsMember2020-01-012020-03-310000943819us-gaap:CorporateNonSegmentMember2020-01-012020-03-3100009438192020-01-012020-03-310000943819us-gaap:MaterialReconcilingItemsMember2019-07-012020-03-310000943819us-gaap:CorporateNonSegmentMember2019-07-012020-03-310000943819us-gaap:EquityMethodInvestmentsMember2020-07-012021-03-310000943819rmd:NonMarketableSecuritiesMember2020-07-012021-03-310000943819rmd:MarketableSecuritiesMember2020-07-012021-03-310000943819us-gaap:EquityMethodInvestmentsMember2019-07-012020-03-310000943819rmd:NonMarketableSecuritiesMember2019-07-012020-03-310000943819rmd:MarketableSecuritiesMember2019-07-012020-03-3100009438192019-07-012020-03-3100009438192021-04-2600009438192020-07-012021-03-31rmd: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 March 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)

(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. ¨    

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 26, 2021, there were 145,517,832 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

34

Item 4

Mine Safety Disclosures

34

  

Item 5

Other Information

34

Item 6

Exhibits

35

Signatures

36

 

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,
2021

June 30,
2020

Assets

Current assets:

Cash and cash equivalents

$

230,635 

$

463,156 

Accounts receivable, net of allowances of $32,811 and $28,508
  at March 31, 2021 and June 30, 2020, respectively

525,014 

474,643 

Inventories (note 3)

484,061 

416,915 

Prepaid expenses and other current assets

226,440 

168,745 

Total current assets

1,466,150 

1,523,459 

Non-current assets:

Property, plant and equipment, net (note 3)

455,106 

417,335 

Operating lease right-of-use assets

128,755 

118,348 

Goodwill (note 4)

1,925,991 

1,890,324 

Other intangible assets, net (note 3)

409,559 

448,168 

Deferred income taxes

49,936 

41,065 

Prepaid taxes and other non-current assets

150,227 

148,677 

Total non-current assets

3,119,574 

3,063,917 

Total assets

$

4,585,724 

$

4,587,376 

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

117,222 

$

135,786 

Accrued expenses

304,693 

270,353 

Operating lease liabilities, current

22,499 

21,263 

Deferred revenue

105,342 

98,617 

Income taxes payable (note 6)

314,795 

64,755 

Short-term debt, net (note 8)

11,990 

11,987 

Total current liabilities

876,541 

602,761 

Non-current liabilities:

Deferred revenue

86,898 

87,307 

Deferred income taxes

12,474 

13,011 

Operating lease liabilities, non-current

115,266 

101,880 

Other long-term liabilities

6,067 

8,347 

Long-term debt, net (note 8)

719,046 

1,164,133 

Long-term income taxes payable (note 6)

60,198 

112,910 

Total non-current liabilities

999,949 

1,487,588 

Total liabilities

1,876,490 

2,090,349 

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;
  187,352,828 issued and 145,516,594 outstanding at March 31, 2021 and
  186,723,407 issued and 144,887,175 outstanding at June 30, 2020

582 

580 

Additional paid-in capital

1,586,545 

1,570,694 

Retained earnings

2,941,336 

2,832,991 

Treasury stock, at cost, 41,836,234 shares at March 31, 2021 and June 30, 2020

(1,623,256)

(1,623,256)

Accumulated other comprehensive loss

(195,973)

(283,982)

Total stockholders’ equity

2,709,234 

2,497,027 

Total liabilities and stockholders’ equity

$

4,585,724 

$

4,587,376 

 

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
March 31,

Nine Months Ended
March 31,

2021

2020

2021

2020

Net revenue - Sleep and Respiratory Care products

$

674,931 

$

679,895 

$

2,042,909 

$

1,923,513 

Net revenue - Software as a Service

93,836 

89,560 

277,813 

263,156 

Net revenue

768,767 

769,455 

2,320,722 

2,186,669 

Cost of sales - Sleep and Respiratory Care products

270,351 

277,065 

833,203 

790,858 

Cost of sales - Software as a Service

40,234 

30,592 

105,050 

89,775 

Cost of sales (exclusive of amortization shown separately below)

310,585 

307,657 

938,253 

880,633 

Amortization of acquired intangible assets - Sleep and Respiratory Care products

900 

2,152 

3,995 

6,609 

Amortization of acquired intangible assets - Software as a Service

10,024 

9,984 

30,071 

31,015 

Amortization of acquired intangible assets

10,924 

12,136 

34,066 

37,623 

Total cost of sales

321,509 

319,793 

972,319 

918,256 

Gross profit

447,258 

449,662 

1,348,403 

1,268,413 

 

Selling, general, and administrative

160,446 

172,441 

488,904 

511,304 

Research and development

55,941 

51,449 

165,409 

149,425 

Amortization of acquired intangible assets

7,445 

8,272 

23,377 

21,872 

Restructuring expenses (note 11)

-

-

8,673 

-

Litigation settlement expenses

-

-

-

(600)

Total operating expenses

223,832 

232,162 

686,363 

682,001 

Income from operations

223,426 

217,500 

662,040 

586,412 

Other income (loss), net:

Interest income

55 

116 

303 

766 

Interest expense

(5,878)

(9,968)

(18,644)

(31,180)

Loss attributable to equity method investments (note 5)

(4,969)

(5,295)

(9,895)

(19,082)

Other, net

5,371 

(10,698)

10,647 

(15,922)

Total other income (loss), net

(5,421)

(25,845)

(17,589)

(65,418)

Income before income taxes

218,005 

191,655 

644,451 

520,994 

Income taxes

296,486 

28,518 

365,046 

77,155 

Net income (loss)

$

(78,481)

$

163,137 

$

279,405 

$

443,839 

Basic earnings (loss) per share (note 9)

$

(0.54)

$

1.13 

$

1.92 

$

3.08 

Diluted earnings (loss) per share (note 9)

$

(0.54)

$

1.12 

$

1.91 

$

3.05 

Dividend declared per share

$

0.39 

$

0.39 

$

1.17 

$

1.17 

Basic shares outstanding (000's)

145,513 

144,638 

145,217 

144,112 

Diluted shares outstanding (000's)

145,513 

145,680 

146,394 

145,490 

 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
March 31,

Nine Months Ended
March 31,

2021

2020

2021

2020

Net income (loss)

$

(78,481)

$

163,137 

$

279,405 

$

443,839 

Other comprehensive income (loss):

Foreign currency translation (loss) gain adjustments

(32,822)

(120,318)

88,009 

(113,427)

Comprehensive income (loss)

$

(111,303)

$

42,819 

$

367,414 

$

330,412 

 

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, 2020

186,723 

$

580 

$

1,570,694 

(41,836)

$

(1,623,256)

$

2,832,991 

$

(283,982)

$

2,497,027 

Common stock issued on exercise of options

18 

-

1,026 

-

-

-

-

1,026 

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

3 

-

227 

-

-

-

-

227 

Stock-based compensation costs

-

-

16,071 

-

-

-

-

16,071 

Other comprehensive income

-

-

-

-

-

-

43,791 

43,791 

Cumulative effect adjustment from adoption of the credit loss standard, net of tax

-

-

-

-

-

(1,143)

-

(1,143)

Net income

-

-

-

-

-

178,372 

-

178,372 

Dividends declared

-

-

-

-

-

(56,511)

-

(56,511)

Balance, September 30, 2020

186,744 

$

580 

$

1,588,018 

(41,836)

$

(1,623,256)

$

2,953,709 

$

(240,191)

$

2,678,860 

Common stock issued on exercise of options

29 

-

1,857