Litigation Settlement Expenses

12 Months Ended

Jun. 30, 2018

Litigation Settlement Expenses [Abstract]

Litigation Settlement Expenses

(24)  Litigation Settlement Expenses

During the fiscal year ended June 30, 2017 we recognized litigation settlement expenses of $8.5 million associated with an agreement with Chinese manufacturer, BMC Medical, and its U.S. distributor, 3B, to settle all outstanding disputes. The material terms of the settlement were:

· ResMed paid 3B the amount of $8.5 million to settle all claims in the Florida case, including claims against our three customers.

· We agreed that for five years from the date of the agreement, we would not initiate legal suit against BMC for patent infringement for selling their range of devices and masks that were the subject of the current dispute.  BMC agreed to pay us royalties on the sale of those products in the United States.

· Mutual release and dismissal of all litigation current at the time of settlement, worldwide, including all validity challenges. It was agreed that neither party will initiate legal suit against the other for a period of five years without a 90 day meet and confer process.