QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
x | Accelerated Filer | o | ||||||||||||
Non-Accelerated Filer | o | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Part I | ||||||||
Item 1 | ||||||||
PART I – FINANCIAL INFORMATION | Item 1 |
March 31, 2022 | June 30, 2021 | ||||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Accounts receivable, net of allowances of $ | |||||||||||
Inventories (note 3) | |||||||||||
Prepaid taxes | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Non-current assets: | |||||||||||
Property, plant and equipment, net (note 3) | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill (note 4) | |||||||||||
Other intangible assets, net (note 3) | |||||||||||
Deferred income taxes | |||||||||||
Prepaid taxes and other non-current assets | |||||||||||
Total non-current assets | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Stockholders’ Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable | $ | $ | |||||||||
Accrued expenses | |||||||||||
Operating lease liabilities, current | |||||||||||
Deferred revenue | |||||||||||
Income taxes payable (note 6) | |||||||||||
Short-term debt, net (note 8) | |||||||||||
Total current liabilities | |||||||||||
Non-current liabilities: | |||||||||||
Deferred revenue | |||||||||||
Deferred income taxes | |||||||||||
Operating lease liabilities, non-current | |||||||||||
Other long-term liabilities | |||||||||||
Long-term debt, net (note 8) | |||||||||||
Long-term income taxes payable (note 6) | |||||||||||
Total non-current liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies (note 10) | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, $ | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock, at cost, | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue - Sleep and Respiratory Care products | $ | $ | $ | $ | |||||||||||||||||||
Net revenue - Software as a Service | |||||||||||||||||||||||
Net revenue | |||||||||||||||||||||||
Cost of sales - Sleep and Respiratory Care products | |||||||||||||||||||||||
Cost of sales - Software as a Service | |||||||||||||||||||||||
Cost of sales (exclusive of amortization shown separately below) | |||||||||||||||||||||||
Amortization of acquired intangible assets - Sleep and Respiratory Care products | |||||||||||||||||||||||
Amortization of acquired intangible assets - Software as a Service | |||||||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Total cost of sales | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Restructuring expenses (note 11) | |||||||||||||||||||||||
Total operating expenses | |||||||||||||||||||||||
Income from operations | |||||||||||||||||||||||
Other income (loss), net: | |||||||||||||||||||||||
Interest (expense) income, net | ( | ( | ( | ( | |||||||||||||||||||
Loss attributable to equity method investments (note 5) | ( | ( | ( | ( | |||||||||||||||||||
Gain (loss) on equity investments (note 5) | ( | ( | |||||||||||||||||||||
Other, net | |||||||||||||||||||||||
Total other income (loss), net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | |||||||||||||||||||||||
Income taxes | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Basic earnings (loss) per share (note 9) | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings (loss) per share (note 9) | $ | $ | ( | $ | $ | ||||||||||||||||||
Dividend declared per share | $ | $ | $ | $ | |||||||||||||||||||
Basic shares outstanding (000's) | |||||||||||||||||||||||
Diluted shares outstanding (000's) |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Other comprehensive income (loss): | |||||||||||||||||||||||
Foreign currency translation (loss) gain adjustments | ( | ( | ( | ||||||||||||||||||||
Comprehensive income (loss) | $ | $ | ( | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | — | ( | — | — | — | — | ( | |||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, September 30, 2021 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | ( | — | — | — | — | ( | ||||||||||||||||||||
Common stock issued on employee stock purchase plan | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, December 31, 2021 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | ( | — | — | — | — | ( | ||||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, March 31, 2022 | $ | $ | ( | $ | ( | $ | $ | ( | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total | |||||||||||||||||||||
Shares | Amount | Shares | Amount | |||||||||||||||||||||||
Balance, June 30, 2020 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income (loss) | — | — | — | — | — | — | ||||||||||||||||||||
— | — | — | — | — | ( | — | ( | |||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, September 30, 2020 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | ( | — | — | — | — | ( | ||||||||||||||||||||
Common stock issued on employee stock purchase plan | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ||||||||||||||||||||
Net income | — | — | — | — | — | — | ||||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, December 31, 2020 | $ | $ | ( | $ | ( | $ | $ | ( | $ | |||||||||||||||||
Common stock issued on exercise of options | — | — | — | — | — | |||||||||||||||||||||
Common stock issued on vesting of restricted stock units, net of shares withheld for tax | ( | — | — | — | — | ( | ||||||||||||||||||||
Common stock issued on employee stock purchase plan | — | — | — | — | — | |||||||||||||||||||||
Stock-based compensation costs | — | — | — | — | — | — | ||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | ( | ( | ||||||||||||||||||
Net income (loss) | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Dividends declared ($ | — | — | — | — | — | ( | — | ( | ||||||||||||||||||
Balance, March 31, 2021 | $ | $ | ( | $ | ( | $ | $ | ( | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Cash flows from operating activities: | |||||||||||
Net income | $ | $ | |||||||||
Adjustment to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of right-of-use assets | |||||||||||
Stock-based compensation costs | |||||||||||
Loss attributable to equity method investments (note 5) | |||||||||||
(Gain) loss on equity investments (note 5) | ( | ||||||||||
Restructuring expenses (note 11) | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses, net deferred income taxes and other current assets | ( | ( | |||||||||
Accounts payable, accrued expenses, income taxes payable and other | ( | ||||||||||
Net cash provided by operating activities | |||||||||||
Cash flows from investing activities: | |||||||||||
Purchases of property, plant and equipment | ( | ( | |||||||||
Patent registration and acquisition costs | ( | ( | |||||||||
Business acquisitions, net of cash acquired | ( | ( | |||||||||
Purchases of investments (note 5) | ( | ( | |||||||||
Proceeds from sale of investment | |||||||||||
(Payments) / proceeds on maturity of foreign currency contracts | ( | ||||||||||
Net cash used in investing activities | ( | ( | |||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of common stock, net | |||||||||||
Taxes paid related to net share settlement of equity awards | ( | ( | |||||||||
Payments of business combination contingent consideration | ( | ||||||||||
Proceeds from borrowings, net of borrowing costs | |||||||||||
Repayment of borrowings | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash | ( | ||||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
Cash and cash equivalents at beginning of period | |||||||||||
Cash and cash equivalents at end of period | $ | $ | |||||||||
Supplemental disclosure of cash flow information: | |||||||||||
Income taxes paid, net of refunds | $ | $ | |||||||||
Interest paid | $ | $ | |||||||||
Fair value of assets acquired, excluding cash | $ | $ | |||||||||
Liabilities assumed | ( | ( | |||||||||
Goodwill on acquisition | |||||||||||
Previously held equity interest | ( | ||||||||||
Deferred payments | ( | ||||||||||
Cash paid for acquisitions | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
U.S., Canada and Latin America | |||||||||||||||||||||||
Devices | $ | $ | $ | $ | |||||||||||||||||||
Masks and other | |||||||||||||||||||||||
Total Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Software as a Service | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Combined Europe, Asia and other markets | |||||||||||||||||||||||
Devices | $ | $ | $ | $ | |||||||||||||||||||
Masks and other | |||||||||||||||||||||||
Total Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Global revenue | |||||||||||||||||||||||
Devices | $ | $ | $ | $ | |||||||||||||||||||
Masks and other | |||||||||||||||||||||||
Total Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Software as a Service | |||||||||||||||||||||||
Total | $ | $ | $ | $ |
March 31, 2022 | June 30, 2021 | Balance sheet caption | |||||||||||||||
Contract assets | |||||||||||||||||
Accounts receivable, net | $ | $ | Accounts receivable, net | ||||||||||||||
Unbilled revenue, current | Prepaid expenses and other current assets | ||||||||||||||||
Unbilled revenue, non-current | Prepaid taxes and other non-current assets | ||||||||||||||||
Contract liabilities | |||||||||||||||||
Deferred revenue, current | ( | ( | Deferred revenue (current liabilities) | ||||||||||||||
Deferred revenue, non-current | ( | ( | Deferred revenue (non-current liabilities) |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Sales-type lease revenue | $ | $ | $ | $ | |||||||||||||||||||
Operating lease revenue | |||||||||||||||||||||||
Total lease revenue | $ | $ | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Net revenue by segment | |||||||||||||||||||||||
Total Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Software as a Service | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Depreciation and amortization by segment | |||||||||||||||||||||||
Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Software as a Service | |||||||||||||||||||||||
Amortization of acquired intangible assets and corporate assets | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Net operating profit by segment | |||||||||||||||||||||||
Sleep and Respiratory Care | $ | $ | $ | $ | |||||||||||||||||||
Software as a Service | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
Reconciling items | |||||||||||||||||||||||
Corporate costs | $ | $ | $ | $ | |||||||||||||||||||
Amortization of acquired intangible assets | |||||||||||||||||||||||
Restructuring expenses | |||||||||||||||||||||||
Interest expense (income), net | |||||||||||||||||||||||
Loss attributable to equity method investments | |||||||||||||||||||||||
(Gain) loss on equity investments | ( | ( | |||||||||||||||||||||
Other, net | ( | ( | ( | ( | |||||||||||||||||||
Income before income taxes | $ | $ | $ | $ |
Inventories | March 31, 2022 | June 30, 2021 | |||||||||
Raw materials | $ | $ | |||||||||
Work in progress | |||||||||||
Finished goods | |||||||||||
Total inventories | $ | $ |
Property, Plant and Equipment | March 31, 2022 | June 30, 2021 | |||||||||
Property, plant and equipment, at cost | $ | $ | |||||||||
Accumulated depreciation and amortization | ( | ( | |||||||||
Property, plant and equipment, net | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Other Intangible Assets | March 31, 2022 | June 30, 2021 | |||||||||
Developed/core product technology | $ | $ | |||||||||
Accumulated amortization | ( | ( | |||||||||
Developed/core product technology, net | |||||||||||
Customer relationships | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Customer relationships, net | |||||||||||
Other intangibles | |||||||||||
Accumulated amortization | ( | ( | |||||||||
Other intangibles, net | |||||||||||
Total other intangibles, net | $ | $ |
Nine Months Ended March 31, 2022 | |||||||||||||||||
Sleep and Respiratory Care | SaaS | Total | |||||||||||||||
Balance at the beginning of the period | $ | $ | $ | ||||||||||||||
Business acquisitions | |||||||||||||||||
Foreign currency translation adjustments | ( | ( | |||||||||||||||
Balance at the end of the period | $ | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Measurement category | March 31, 2022 | June 30, 2021 | |||||||||
Fair value | $ | $ | |||||||||
Measurement alternative | |||||||||||
Equity method | |||||||||||
Total | $ | $ |
Nine Months Ended March 31, 2022 | |||||||||||||||||||||||
Non-marketable securities | Marketable securities | Equity method investments | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Net additions (reductions) to investments (1) | ( | ||||||||||||||||||||||
Observable price adjustments on non-marketable equity securities | |||||||||||||||||||||||
Unrealized losses on marketable equity securities | ( | ( | |||||||||||||||||||||
Realized gains on marketable and non-marketable equity securities | |||||||||||||||||||||||
Impairment of investments | ( | ( | |||||||||||||||||||||
Loss attributable to equity method investments | ( | ( | |||||||||||||||||||||
Carrying value at the end of the period | $ | $ | $ | $ |
Nine Months Ended March 31, 2021 | |||||||||||||||||||||||
Non-marketable securities | Marketable securities | Equity method investments | Total | ||||||||||||||||||||
Balance at the beginning of the period | $ | $ | $ | $ | |||||||||||||||||||
Additions to investments | |||||||||||||||||||||||
Observable price adjustments on non-marketable equity securities | |||||||||||||||||||||||
Unrealized gains on marketable equity securities | |||||||||||||||||||||||
Reclassifications (2) | ( | ||||||||||||||||||||||
Loss attributable to equity method investments | ( | ( | |||||||||||||||||||||
Carrying value at the end of the period | $ | $ | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Balance at the beginning of the period | $ | $ | |||||||||
Warranty accruals for the period | |||||||||||
Warranty costs incurred for the period | ( | ( | |||||||||
Foreign currency translation adjustments | |||||||||||
Balance at the end of the period | $ | $ |
March 31, 2022 | June 30, 2021 | ||||||||||
Short-term debt | $ | $ | |||||||||
Long-term debt | $ | $ | |||||||||
Deferred borrowing costs | ( | ( | |||||||||
Long-term debt, net | $ | $ | |||||||||
Total debt | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
PART I – FINANCIAL INFORMATION | Item 1 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Numerator: | |||||||||||||||||||||||
Net income (loss) | $ | $ | ( | $ | $ | ||||||||||||||||||
Denominator: | |||||||||||||||||||||||
Basic weighted-average common shares outstanding | |||||||||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||
Stock options and restricted stock units | |||||||||||||||||||||||
Diluted weighted average shares | |||||||||||||||||||||||
Basic earnings (loss) per share | $ | $ | ( | $ | $ | ||||||||||||||||||
Diluted earnings (loss) per share | $ | $ | ( | $ | $ |
PART I – FINANCIAL INFORMATION | Item 1 |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
Three Months Ended March 31, | % Change | Constant Currency* | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
U.S., Canada and Latin America | |||||||||||||||||||||||
Devices | $ | 250,768 | $ | 192,897 | 30 | % | |||||||||||||||||
Masks and other | 224,665 | 209,984 | 7 | ||||||||||||||||||||
Total Sleep and Respiratory Care | $ | 475,433 | $ | 402,881 | 18 | ||||||||||||||||||
Software as a Service | 101,142 | 93,836 | 8 | ||||||||||||||||||||
Total | $ | 576,575 | $ | 496,717 | 16 | ||||||||||||||||||
Combined Europe, Asia and other markets | |||||||||||||||||||||||
Devices | $ | 182,307 | $ | 172,838 | 5 | % | 10 | % | |||||||||||||||
Masks and other | 105,618 | 99,212 | 6 | 13 | |||||||||||||||||||
Total Sleep and Respiratory Care | $ | 287,925 | $ | 272,050 | 6 | 11 | |||||||||||||||||
Global revenue | |||||||||||||||||||||||
Devices | $ | 433,075 | $ | 365,735 | 18 | % | 21 | % | |||||||||||||||
Masks and other | 330,283 | 309,196 | 7 | 9 | |||||||||||||||||||
Total Sleep and Respiratory Care | $ | 763,358 | $ | 674,931 | 13 | 15 | |||||||||||||||||
Software as a Service | 101,142 | 93,836 | 8 | 8 | |||||||||||||||||||
Total | $ | 864,500 | $ | 768,767 | 12 | 14 |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
Nine Months Ended March 31, | % Change | Constant Currency* | |||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
U.S., Canada and Latin America | |||||||||||||||||||||||
Devices | $ | 771,475 | $ | 595,287 | 30 | % | |||||||||||||||||
Masks and other | 681,803 | 637,507 | 7 | ||||||||||||||||||||
Total Sleep and Respiratory Care | $ | 1,453,278 | $ | 1,232,794 | 18 | ||||||||||||||||||
Software as a Service | 297,693 | 277,813 | 7 | ||||||||||||||||||||
Total | $ | 1,750,971 | $ | 1,510,607 | 16 | ||||||||||||||||||
Combined Europe, Asia and other markets | |||||||||||||||||||||||
Devices | $ | 608,268 | $ | 536,856 | 13 | % | 15 | % | |||||||||||||||
Masks and other | 304,151 | 273,259 | 11 | 14 | |||||||||||||||||||
Total Sleep and Respiratory Care | $ | 912,419 | $ | 810,115 | 13 | 15 | |||||||||||||||||
Global revenue | |||||||||||||||||||||||
Devices | $ | 1,379,743 | $ | 1,132,143 | 22 | % | 23 | % | |||||||||||||||
Masks and other | 985,954 | 910,766 | 8 | 9 | |||||||||||||||||||
Total Sleep and Respiratory Care | $ | 2,365,697 | $ | 2,042,909 | 16 | 16 | |||||||||||||||||
Software as a Service | 297,693 | 277,813 | 7 | 7 | |||||||||||||||||||
Total | $ | 2,663,390 | $ | 2,320,722 | 15 | 15 |
PART I – FINANCIAL INFORMATION | Item 2 |
Three Months Ended March 31, | Change | % Change | Constant Currency | ||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
Selling, general, and administrative | $ | 182,401 | $ | 160,446 | $ | 21,955 | 14 | % | 17 | % | |||||||||||||||||||
as a % of net revenue | 21.1 | % | 20.9 | % | |||||||||||||||||||||||||
Research and development | 66,801 | 55,941 | 10,860 | 19 | % | 22 | % | ||||||||||||||||||||||
as a % of net revenue | 7.7 | % | 7.3 | % | |||||||||||||||||||||||||
Amortization of acquired intangible assets | 7,730 | 7,445 | 285 | 4 | % | 4 | % |
Nine Months Ended March 31, | Change | % Change | Constant Currency | ||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||
Selling, general, and administrative | $ | 544,483 | $ | 488,904 | $ | 55,579 | 11 | % | 13 | % | |||||||||||||||||||
as a % of net revenue | 20.4 | % | 21.1 | % | |||||||||||||||||||||||||
Research and development | 189,258 | 165,409 | 23,849 | 14 | % | 15 | % | ||||||||||||||||||||||
as a % of net revenue | 7.1 | % | 7.1 | % | |||||||||||||||||||||||||
Amortization of acquired intangible assets | 23,175 | 23,377 | (202) | (1) | % | (1) | % |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
Three Months Ended March 31, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Interest (expense) income, net | $ | (5,462) | $ | (5,823) | $ | 361 | |||||||||||
Loss attributable to equity method investments | (2,627) | (4,969) | 2,342 | ||||||||||||||
Gain (loss) on equity investments | (1,735) | 4,666 | (6,401) | ||||||||||||||
Other, net | 1,878 | 705 | 1,173 | ||||||||||||||
Total other income (loss), net | $ | (7,946) | $ | (5,421) | $ | (2,525) |
Nine Months Ended March 31, | |||||||||||||||||
2022 | 2021 | Change | |||||||||||||||
Interest (expense) income, net | $ | (16,770) | $ | (18,341) | $ | 1,571 | |||||||||||
Loss attributable to equity method investments | (5,927) | (9,895) | 3,968 | ||||||||||||||
Gain (loss) on equity investments | (527) | 9,442 | (9,969) | ||||||||||||||
Other, net | 729 | 1,205 | (476) | ||||||||||||||
Total other income (loss), net | $ | (22,495) | $ | (17,589) | $ | (4,906) |
PART I – FINANCIAL INFORMATION | Item 2 |
PART I – FINANCIAL INFORMATION | Item 2 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
GAAP Net revenue | $ | 864,500 | $ | 768,767 | $ | 2,663,390 | $ | 2,320,722 | |||||||||||||||
GAAP Cost of sales | $ | 373,303 | $ | 321,509 | $ | 1,161,585 | $ | 972,319 | |||||||||||||||
Less: Amortization of acquired intangibles | (10,982) | (10,924) | (33,271) | (34,066) | |||||||||||||||||||
Less: Restructuring - cost of sales | — | — | — | (5,232) | |||||||||||||||||||
Non-GAAP cost of sales | $ | 362,321 | $ | 310,585 | $ | 1,128,314 | $ | 933,021 | |||||||||||||||
GAAP gross profit | $ | 491,197 | $ | 447,258 | $ | 1,501,805 | $ | 1,348,403 | |||||||||||||||
GAAP gross margin | 56.8 | % | 58.2 | % | 56.4 | % | 58.1 | % | |||||||||||||||
Non-GAAP gross profit | $ | 502,179 | $ | 458,182 | $ | 1,535,076 | $ | 1,387,701 | |||||||||||||||
Non-GAAP gross margin | 58.1 | % | 59.6 | % | 57.6 | % | 59.8 | % |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
GAAP income from operations | $ | 234,265 | $ | 223,426 | $ | 744,889 | $ | 662,040 | |||||||||||||||
Amortization of acquired intangibles - cost of sales | 10,982 | 10,924 | 33,271 | 34,066 | |||||||||||||||||||
Amortization of acquired intangibles - operating expenses | 7,730 | 7,445 | 23,175 | 23,377 | |||||||||||||||||||
Restructuring - cost of sales | — | — | — | 5,232 | |||||||||||||||||||
Restructuring - operating expenses | — | — | — | 8,673 | |||||||||||||||||||
Non-GAAP income from operations | $ | 252,977 | $ | 241,795 | $ | 801,335 | $ | 733,388 |
PART I – FINANCIAL INFORMATION | Item 2 |
Three Months Ended March 31, | Nine Months Ended March 31, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
GAAP net income (loss) | $ | 179,012 | $ | (78,481) | $ | 584,376 | $ | 279,405 | |||||||||||||||
Amortization of acquired intangibles - cost of sales, net of tax | 8,374 | 8,395 | 25,373 | 26,136 | |||||||||||||||||||
Amortization of acquired intangibles - operating expenses, net of tax | 5,894 | 5,721 | 17,673 | 17,936 | |||||||||||||||||||
Reserve for disputed tax positions | — | 254,776 | 4,111 | 254,776 | |||||||||||||||||||
Restructuring - cost of sales, net of tax | — | — | — | 4,663 | |||||||||||||||||||
Restructuring - operating expenses, net of tax | — | — | — | 7,730 | |||||||||||||||||||
(Gain) loss on equity investments | — | — | — | (8,476) | |||||||||||||||||||
Non-GAAP net income | $ | 193,280 | $ | 190,411 | $ | 631,533 | $ | 582,170 | |||||||||||||||
GAAP diluted shares outstanding | 146,962 | 145,513 | 147,034 | 146,394 | |||||||||||||||||||
Anti-dilutive shares excluded from GAAP | — | 858 | — | — | |||||||||||||||||||
Non-GAAP diluted shares outstanding | 146,962 | 146,371 | 147,034 | 146,394 | |||||||||||||||||||
GAAP diluted earnings (loss) per share | $ | 1.22 | $ | (0.54) | $ | 3.97 | $ | 1.91 | |||||||||||||||
Non-GAAP diluted earnings per share | $ | 1.32 | $ | 1.30 | $ | 4.30 | $ | 3.98 |
PART I – FINANCIAL INFORMATION | Item 2 |
Nine Months Ended March 31, | |||||||||||
2022 | 2021 | ||||||||||
Net cash provided by operating activities | $ | 271,661 | $ | 510,193 | |||||||
Net cash used in investing activities | (174,677) | (110,390) | |||||||||
Net cash used in financing activities | (185,862) | (650,596) | |||||||||
Effect of exchange rate changes on cash | (4,631) | 18,272 | |||||||||
Net decrease in cash and cash equivalents | $ | (93,509) | $ | (232,521) |
PART I – FINANCIAL INFORMATION | Item 2 |
Payments Due by March 31, | |||||||||||||||||||||||||||||||||||||||||
Total | 2023 | 2024 | 2025 | 2026 | 2027 | Thereafter | |||||||||||||||||||||||||||||||||||
Purchase obligations | 1,570,247 | 1,465,590 | 89,710 | 13,555 | 1,392 | — | — |
PART I – FINANCIAL INFORMATION | Item 3 |
U.S. Dollar (USD) | Euro (EUR) | Canadian Dollar (CAD) | Chinese Yuan (CNY) | ||||||||||||||||||||
AUD Functional: | |||||||||||||||||||||||
Net Assets/(Liabilities) | 49,745 | (73,538) | — | 11,801 | |||||||||||||||||||
Foreign Currency Hedges | (60,000) | 55,478 | — | (12,616) | |||||||||||||||||||
Net Total | (10,255) | (18,060) | — | (815) | |||||||||||||||||||
USD Functional: | |||||||||||||||||||||||
Net Assets/(Liabilities) | — | — | 21,041 | — | |||||||||||||||||||
Foreign Currency Hedges | — | — | (20,028) | — | |||||||||||||||||||
Net Total | — | — | 1,013 | — | |||||||||||||||||||
SGD Functional: | |||||||||||||||||||||||
Net Assets/(Liabilities) | 345,779 | (24,829) | — | 931 | |||||||||||||||||||
Foreign Currency Hedges | (330,000) | — | — | — | |||||||||||||||||||
Net Total | 15,779 | (24,829) | — | 931 |
PART I – FINANCIAL INFORMATION | Item 3 |
Fair Value Assets / (Liabilities) | |||||||||||||||||||||||||||||
Foreign Exchange Contracts | Year 1 | Year 2 | Total | March 31, 2022 | June 30, 2021 | ||||||||||||||||||||||||
USD/AUD | |||||||||||||||||||||||||||||
Contract amount | 60,000 | — | 60,000 | 2,533 | (652) | ||||||||||||||||||||||||
Ave. contractual exchange rate | USD 1 = AUD 0.7196 | USD 1 = AUD 0.7196 | |||||||||||||||||||||||||||
AUD/Euro | |||||||||||||||||||||||||||||
Contract amount | 110,956 | — | 110,956 | (128) | 1,172 | ||||||||||||||||||||||||
Ave. contractual exchange rate | AUD 1 = Euro 0.6864 | AUD 1 = Euro 0.6864 | |||||||||||||||||||||||||||
SGD/Euro | |||||||||||||||||||||||||||||
Contract amount | 22,191 | — | 22,191 | (18) | (88) | ||||||||||||||||||||||||
Ave. contractual exchange rate | SGD 1 = Euro 0.7117 | — | SGD 1 = Euro 0.7117 | ||||||||||||||||||||||||||
SGD/USD | |||||||||||||||||||||||||||||
Contract amount | 330,000 | — | 330,000 | (641) | (177) | ||||||||||||||||||||||||
Ave. contractual exchange rate | SGD 1 = USD 0.7401 | SGD 1 = USD 0.7401 | |||||||||||||||||||||||||||
AUD/CNY | |||||||||||||||||||||||||||||
Contract amount | 12,616 | — | 12,616 | (611) | (130) | ||||||||||||||||||||||||
Ave. contractual exchange rate | AUD 1 = CNY 5.0312 | AUD 1 = CNY 5.0312 | |||||||||||||||||||||||||||
USD/EUR | |||||||||||||||||||||||||||||
Contract amount | — | — | 169 | ||||||||||||||||||||||||||
Ave. contractual exchange rate | USD 1 = EUR | USD 1 = EUR | |||||||||||||||||||||||||||
USD/CAD | |||||||||||||||||||||||||||||
Contract amount | 20,028 | — | 20,028 | 83 | (44) | ||||||||||||||||||||||||
Ave. contractual exchange rate | USD 1 = CAD 1.2431 | USD 1 = CAD 1.2431 |
3.1 | ||||||||
3.2 | ||||||||
31.1 | ||||||||
31.2 | ||||||||
32* | ||||||||
101 | The following financial statements from ResMed Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2022, filed on April 28, 2022, formatted in XBRL: (i) Condensed Consolidated Balance Sheets, (ii) Condensed Consolidated Statements of Operations, (iii) Condensed Consolidated Statements of Comprehensive Income, (iv) Condensed Consolidated Statements of Cash Flows, (v) the Notes to the Condensed Consolidated Financial Statements. | |||||||
104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101). |
ResMed Inc. | |||||
/s/ MICHAEL J. FARRELL | |||||
Michael J. Farrell | |||||
Chief executive officer | |||||
(Principal Executive Officer) |
/s/ BRETT A. SANDERCOCK | |||||
Brett A. Sandercock | |||||
Chief financial officer | |||||
(Principal Financial Officer) |
/s/ MICHAEL J. FARRELL | |||||
Michael J. Farrell | |||||
Chief executive officer | |||||
(Principal Executive Officer) |
/s/ BRETT A. SANDERCOCK | |||||
Brett A. Sandercock | |||||
Chief financial officer | |||||
(Principal Financial Officer) |
/s/ MICHAEL J. FARRELL | |||||
Michael J. Farrell | |||||
Chief executive officer | |||||
(Principal Executive Officer) |
/s/ BRETT A. SANDERCOCK | |||||
Brett A. Sandercock | |||||
Chief financial officer | |||||
(Principal Financial Officer) |
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for credit loss, current | $ 24,411 | $ 32,138 |
Preferred stock, par value per share (dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value per share (dollars per share) | $ 0.004 | $ 0.004 |
Common stock, shares authorized (shares) | 350,000,000 | 350,000,000 |
Common stock, shares issued (shares) | 188,102,293 | 187,484,592 |
Common stock, shares outstanding (shares) | 146,266,059 | 145,648,358 |
Treasury stock, shares (shares) | 41,836,234 | 41,836,234 |
Condensed Consolidated Statements Of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||||
Net income (loss) | $ 179,012 | $ (78,481) | $ 584,376 | $ 279,405 |
Other comprehensive income (loss): | ||||
Foreign currency translation (loss) gain adjustments | (1,046) | (32,822) | (30,654) | 88,009 |
Comprehensive income (loss) | $ 177,966 | $ (111,303) | $ 553,722 | $ 367,414 |
Condensed Consolidated Statements Of Changes In Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Mar. 31, 2022 |
Mar. 31, 2021 |
Jun. 30, 2021 |
Jun. 30, 2020 |
|
Statement of Stockholders' Equity [Abstract] | ||||||||||
Dividend declared per share (dollars per share) | $ 0.42 | $ 0.42 | $ 0.42 | $ 0.39 | $ 0.39 | $ 0.39 | $ 1.26 | $ 1.17 | ||
Stockholders' Equity Attributable to Parent | $ 3,278,804 | $ 3,145,835 | $ 3,026,049 | $ 2,709,234 | $ 2,864,984 | $ 2,678,860 | $ 3,278,804 | $ 2,709,234 | $ 2,885,679 | $ 2,497,027 |
Summary Of Significant Accounting Policies |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Significant Accounting Policies | Summary of Significant Accounting Policies 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 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. The condensed consolidated financial statements for the three and nine months ended March 31, 2022 and March 31, 2021 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K (our “Form 10-K”) for the year ended June 30, 2021. 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 health 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 The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
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 professional 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 (in thousands):
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 historical experience. However, returns of products, excluding warranty-related returns, are 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 on a quarterly basis 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 elected two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our SaaS contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. 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. Lease Revenue We lease Sleep and Respiratory Care medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts include sales-type and operating leases, and contract terms 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. The components of lease revenue were as follows (in thousands):
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. Recently adopted accounting pronouncements ASU No. 2021-08 “Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (Topic 805), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. The guidance is effective for us beginning in the first quarter of the year ending June 30, 2024 and early adoption is permitted. We elected to early adopt this standard in the second quarter of our fiscal year ending June 30, 2022. We do not expect the adoption of ASU 2021-08 to have a material impact on our consolidated financial statements.
|
Segment Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information | Segment Information We have quantitatively and qualitatively determined that we operate in 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 revenues and income from operations. The accounting policies of the segments are the same as those described in note 2 of our consolidated financial statements included in our Form 10-K for the year ended June 30, 2021. Segment net revenues 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, 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. The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):
|
Supplemental Balance Sheet Information |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information | Supplemental Balance Sheet Information Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands):
Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, which we amortize over the estimated useful life of the assets, generally between two years to fifteen years. There are no expected residual values related to these intangible assets.
|
Goodwill |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill | Goodwill A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands):
|
Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments We have equity investments in privately and publicly held companies that are unconsolidated entities. The following discusses our 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 condensed 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 condensed 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 condensed consolidated statements of operations. 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 condensed consolidated statements of operations. Equity investments by measurement category were as follows (in thousands):
The following tables show a reconciliation of the changes in our equity investments (in thousands):
(1)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.
(2)During the nine months ended March 31, 2021, one of our investments, which was previously accounted for under the measurement alternative, completed its initial public offering which resulted in a change of accounting methodology to fair value. Net unrealized losses recognized for equity investments in non-marketable and marketable securities held as of March 31, 2022 for the three and nine months ended March 31, 2022 were $1.7 million and $4.5 million, respectively. Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of March 31, 2021 for the three and nine months ended March 31, 2021 were $4.7 million and $9.4 million, respectively.
|
Income Taxes |
9 Months Ended |
---|---|
Mar. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In accordance with ASC 740 Income Taxes, each interim reporting period is considered integral to the annual period, and tax expense is measured using an estimated annual effective tax rate. An entity is required to record income tax expense each quarter based on its annual effective tax rate estimated for the full fiscal year and use that rate to provide for income taxes on a current year-to-date basis, adjusted for discrete taxable events that occur during the interim period. 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 $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.
|
Product Warranties |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties | Product Warranties Changes in the liability for warranty costs, which is included in accrued expenses in our condensed consolidated balance sheets, are as follows (in thousands):
|
Debt |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt | Debt Debt consisted of the following (in thousands):
Credit Facility On April 17, 2018, we entered into an amended and restated credit agreement (the “Revolving Credit Agreement”), as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, joint book runner, swing line lender and letter of credit issuer, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $800.0 million, with an uncommitted option to increase the revolving credit facility by an additional $300.0 million. Additionally, on April 17, 2018, ResMed Limited entered into a Syndicated Facility 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. The Term Credit Agreement, among other things, provides ResMed Limited a senior unsecured term credit facility of $200.0 million. On November 5, 2018, we entered into a first amendment to the Revolving Credit Agreement to, among other things, increase the size of our senior unsecured revolving credit facility from $800.0 million to $1.6 billion, with an uncommitted option to increase the revolving credit facility by an additional $300.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed 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 April 17, 2023, when all unpaid principal and interest under the loans must be repaid. Amounts borrowed under the Term Credit Agreement also amortize on a semi-annual basis, with a $6.0 million principal payment required on each such semi-annual amortization date. The outstanding principal amounts bear interest at a rate equal to LIBOR 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 March 31, 2022, the interest rate that was being charged on the outstanding principal amounts was 1.1%. An applicable commitment fee of 0.100% to 0.175% (depending on the then-applicable leverage ratio) applies on the unused portion of the revolving credit facility. As of March 31, 2022, we had $1.6 billion 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 LIBOR plus the spreads described above, its carrying amount is equivalent to its fair value as at March 31, 2022 and June 30, 2021, which was $182.0 million and $158.0 million, respectively. Quoted market prices in active markets for similar liabilities based inputs (Level 2) were used to estimate fair value. 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% 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. 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 of March 31, 2022 and June 30, 2021 the Senior Notes had a carrying amount of $500.0 million, excluding deferred borrowing costs, and an estimated fair value of $495.9 million and $530.4 million, respectively. Quoted market prices in active markets for similar liabilities based inputs (Level 2) were used to estimate fair value. At March 31, 2022, we were in compliance with our debt covenants and there was $682.0 million outstanding under the Revolving Credit Agreement, Term Credit Agreement and Senior Notes.
|
Earnings (Loss) Per Share |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings (Loss) Per Share | Earnings (Loss) Per ShareBasic earnings (loss) per share is computed 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 (loss) 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 calculation of diluted weighted average shares for the three months ended March 31, 2021 excluded 857,799 potentially dilutive common shares because we reported a net loss. The weighted average number of outstanding stock options and restricted stock units not included in the computation of diluted earnings (loss) per share were 307,368 and 225,580 for the three months ended March 31, 2022 and 2021, respectively, and 52,599 and 200,341 for the nine months ended March 31, 2022 and 2021, respectively, as the effect would have been anti-dilutive. Basic and diluted earnings per share are calculated as follows (in thousands except per share data):
|
Legal Actions and Contingencies |
9 Months Ended |
---|---|
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Actions and Contingencies | Legal Actions and Contingencies 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 filed a complaint for patent infringement in the United States District Court, District of Delaware against ResMed Inc., case no. 1:21-cv-00813 (CFC). The complaint alleges that the AutoSet and AutoRamp features of ResMed’s AirSense 10 AutoSet flow generators infringe one or more claims of various patents. According to the complaint, the patents are directed to systems and methods for diagnosing and treating patient sleeping disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. ResMed 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. The matter is proceeding to discovery. On January 27, 2021, the International Trade Commission 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 is seeking review by the full International Trade Commission, and the Commission is expected to issue its final determination on or about August 1, 2022. 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 defendants. The district court cases have been stayed pending the resolution of the ITC proceedings. ResMed is not a party to the ITC investigation or the district court cases but sells products that incorporate some of the communications modules at issue in the cases. On October 1, 2021 ResMed acquired Ectosense, manufacturer of the NightOwl device used for home sleep testing. Prior to the acquisition, Ectosense was named as a defendant in a trademark and false advertising complaint filed by Itamar Medical Ltd. in the district court for the Southern District of Florida, case no. 20-cv-60719-WPD, based on Ectosense’s description of the NightOwl’s measurement of peripheral arterial tone and use of the acronym “PAT” in its advertising. Ectosense filed a counterclaim for cancellation of Itamar’s “PAT” trademark and for false advertising by Itamar. Each party seeks damages and injunctive relief against the other. The matter was resolved on April 5, 2022, in a confidential settlement agreement to the mutual satisfaction of the parties. 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 nine months ended March 31, 2022 and March 31, 2021, receivables sold with limited recourse were $126.2 million and $112.2 million, respectively. As of March 31, 2022, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $47.0 million and $3.4 million, respectively. As of June 30, 2021, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $30.2 million and $8.2 million, respectively.
|
Restructuring Expenses |
9 Months Ended |
---|---|
Mar. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring ExpensesIn November 2020, we closed our Portable Oxygen Concentrator business, which was part of the Sleep and Respiratory Care segment. During the three and nine months ended March 31, 2021, we recognized restructuring expenses of $13.9 million primarily related to inventory write-downs of $5.2 million, accelerated amortization of acquired intangible assets of $5.1 million, asset impairments of $2.3 million, employee-related costs of $0.7 million and contract cancellation costs of $0.6 million. Of the total expense recognized during the three and nine months ended March 31, 2021, the inventory write-down of $5.2 million is presented within cost of sales and the remaining $8.7 million in restructuring costs is separately disclosed as restructuring expenses on the condensed consolidated statements of income. We did not incur additional material expenses in connection with this activity after March 31, 2021, and the restructure was completed as of June 30, 2021. |
Summary Of Significant Accounting Policies (Policy) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [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 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. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial information and with the instructions to Form 10-Q and the rules of the U.S. Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all necessary adjustments, which consisted only of normal recurring items, have been included in the accompanying financial statements to present fairly the results of the interim periods. The results of operations for the interim periods presented are not necessarily indicative of the results that may be expected for the fiscal year ending June 30, 2022. The condensed consolidated financial statements for the three and nine months ended March 31, 2022 and March 31, 2021 are unaudited and should be read in conjunction with the consolidated financial statements and notes thereto included in our Annual Report on Form 10-K (our “Form 10-K”) for the year ended June 30, 2021.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 health 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 The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
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 professional 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 (in thousands):
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 historical experience. However, returns of products, excluding warranty-related returns, are 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 on a quarterly basis 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 elected two practical expedients including the “right to invoice” practical expedient, which is relevant for some of our SaaS contracts as it allows us to recognize revenue in the amount of the invoice when it corresponds directly with the value of performance completed to date. 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lease Revenue | Lease Revenue We lease Sleep and Respiratory Care medical devices to customers primarily as a means to comply with local health insurer requirements in certain foreign geographies. Device rental contracts include sales-type and operating leases, and contract terms 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision For Warranty | 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.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recently Adopted Accounting Prounouncements | Recently adopted accounting pronouncements ASU No. 2021-08 “Business Combinations: Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” In October 2021, the FASB issued ASU No. 2021-08, “Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (Topic 805), which requires contract assets and contract liabilities acquired in a business combination to be recognized and measured by the acquirer on the acquisition date in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. This approach differs from the current requirement to measure contract assets and contract liabilities acquired in a business combination at fair value. The guidance is effective for us beginning in the first quarter of the year ending June 30, 2024 and early adoption is permitted. We elected to early adopt this standard in the second quarter of our fiscal year ending June 30, 2022. We do not expect the adoption of ASU 2021-08 to have a material impact on our consolidated financial statements.
|
Summary Of Significant Accounting Policies (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Net Revenue Disaggregated By Product And Region | The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary Of Contract Balances | The following table summarizes our contract balances (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Components Of Lease Revenue | The components of lease revenue were as follows (in thousands):
|
Segment Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Revenue By Segment and Reconciling Items | The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):
|
Supplemental Balance Sheet Information (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Supplemental Balance Sheet Information [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Inventories | Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components Of Property, Plant And Equipment |
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Other Intangible Assets, Net |
|
Goodwill (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Carrying Amount Of Goodwill | A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands):
|
Investments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity Method Investments and Joint Ventures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Investments | Equity investments by measurement category were as follows (in thousands):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Equity Investments | The following tables show a reconciliation of the changes in our equity investments (in thousands):
(1)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.
|
Product Warranties (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Product Warranties Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Changes In Liability For Warranty Costs | Changes in the liability for warranty costs, which is included in accrued expenses in our condensed consolidated balance sheets, are as follows (in thousands):
|
Debt (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt | Debt consisted of the following (in thousands):
|
Earnings (Loss) Per Share (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Basic And Diluted Earnings Per Share | Basic and diluted earnings per share are calculated as follows (in thousands except per share data):
|
Summary Of Significant Accounting Policies - Narrative (Details) |
9 Months Ended |
---|---|
Mar. 31, 2022
segment
| |
Summary Of Significant Accounting Policies [Line Items] | |
Number of operating segments | 2 |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Deferred revenue recognized, term | 1 year |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Deferred revenue recognized, term | 5 years |
Summary Of Significant Accounting Policies - Summary Of Contract Balances (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Contract assets | ||
Accounts receivable, net | $ 508,580 | $ 614,292 |
Contract liabilities | ||
Deferred revenue, current | (112,449) | (109,611) |
Deferred revenue, non-current | (94,094) | (91,496) |
Accounts receivable, net | ||
Contract assets | ||
Accounts receivable, net | 508,580 | 614,292 |
Prepaid expenses and other current assets | ||
Contract assets | ||
Unbilled revenue, current | 25,653 | 10,893 |
Prepaid taxes and other non-current assets | ||
Contract assets | ||
Unbilled revenue, non-current | 7,018 | 6,214 |
Deferred revenue (current liabilities) | ||
Contract liabilities | ||
Deferred revenue, current | (112,449) | (109,611) |
Deferred revenue (non-current liabilities) | ||
Contract liabilities | ||
Deferred revenue, non-current | $ (94,094) | $ (91,496) |
Summary Of Significant Accounting Policies - Schedule Of Components Of Lease Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Accounting Policies [Abstract] | ||||
Sales-type lease revenue | $ 946 | $ 2,031 | $ 6,598 | $ 5,854 |
Operating lease revenue | 19,797 | 22,746 | 69,380 | 72,551 |
Total lease revenue | $ 20,743 | $ 24,777 | $ 75,978 | $ 78,405 |
Segment Information - Narrative (Details) |
9 Months Ended |
---|---|
Mar. 31, 2022
segment
| |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
Supplemental Balance Sheet Information (Schedule Of Inventories) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Supplemental Balance Sheet Information [Abstract] | ||
Raw materials | $ 340,335 | $ 155,419 |
Work in progress | 4,481 | 4,647 |
Finished goods | 320,127 | 296,967 |
Total inventories | $ 664,943 | $ 457,033 |
Supplemental Balance Sheet Information (Components Of Property, Plant And Equipment) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Supplemental Balance Sheet Information [Abstract] | ||
Property, plant and equipment, at cost | $ 1,165,391 | $ 1,085,629 |
Accumulated depreciation and amortization | (652,141) | (622,139) |
Property, plant and equipment, net | $ 513,250 | $ 463,490 |
Goodwill (Schedule Of Changes In Carrying Amount Of Goodwill) (Details) $ in Thousands |
9 Months Ended |
---|---|
Mar. 31, 2022
USD ($)
| |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | $ 1,927,901 |
Business acquisitions | 33,499 |
Foreign currency translation adjustments | (15,083) |
Balance at the end of the period | 1,946,317 |
Total Sleep and Respiratory Care | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 633,183 |
Business acquisitions | 33,499 |
Foreign currency translation adjustments | (15,083) |
Balance at the end of the period | 651,599 |
SaaS | |
Goodwill [Roll Forward] | |
Balance at the beginning of the period | 1,294,718 |
Business acquisitions | 0 |
Foreign currency translation adjustments | 0 |
Balance at the end of the period | $ 1,294,718 |
Investments (Schedule Of Investments) (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Equity Method Investments and Joint Ventures [Abstract] | ||
Fair value | $ 17,842 | $ 29,084 |
Measurement alternative | 38,180 | 23,002 |
Equity method | 12,477 | 17,154 |
Total | $ 68,499 | $ 69,240 |
Investments (Narrative) (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Equity Method Investments and Joint Ventures [Abstract] | ||||
Equity securities, net unrealized gain (loss) | $ (1.7) | $ 4.7 | $ (4.5) | $ 9.4 |
Income Taxes (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Sep. 28, 2021 |
Mar. 31, 2022 |
|
Operating Loss Carryforwards [Line Items] | ||
Tax settlement, foreign currency translation benefit | $ 14.1 | |
Tax settlement, reduction of tax credits | 4.1 | |
Domestic Tax Authority | Australian Taxation Office | ||
Operating Loss Carryforwards [Line Items] | ||
Tax settlement, final net impact | 238.7 | |
Tax settlement, gross amount | $ 381.7 | 381.7 |
Tax settlement, interest and penalties | 48.1 | |
Tax settlement, adjustments for credits and deductions | $ 143.0 | |
Tax settlement, remitted final payment | 284.8 | |
Tax setttlement, prior remittances | $ 96.9 |
Product Warranties - Schedule Of Changes In Liability For Warranty Costs (Details) - USD ($) $ in Thousands |
9 Months Ended | |
---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Movement in Standard Product Warranty Accrual [Roll Forward] | ||
Balance at the beginning of the period | $ 22,032 | $ 21,132 |
Warranty accruals for the period | 14,653 | 11,521 |
Warranty costs incurred for the period | (9,689) | (11,253) |
Foreign currency translation adjustments | 41 | 1,566 |
Balance at the end of the period | $ 27,037 | $ 22,966 |
Debt - Schedule of Debt (Details) - USD ($) $ in Thousands |
Mar. 31, 2022 |
Jun. 30, 2021 |
---|---|---|
Debt Disclosure [Abstract] | ||
Short-term debt | $ 11,967 | $ 12,000 |
Long-term debt | 670,000 | 646,000 |
Deferred borrowing costs | (1,265) | (2,649) |
Long-term debt, net | 668,735 | 643,351 |
Total debt | $ 680,702 | $ 655,351 |
Earnings (Loss) Per Share (Narrative) (Details) - shares |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 857,799 | |||
Stock Options and Restricted Stock Units | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 307,368,000 | 225,580,000 | 52,599,000 | 200,341,000 |
Earnings (Loss) Per Share (Schedule Of Basic And Diluted Earnings Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | 9 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2022 |
Dec. 31, 2021 |
Sep. 30, 2021 |
Mar. 31, 2021 |
Dec. 31, 2020 |
Sep. 30, 2020 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Numerator: | ||||||||
Net income (loss) | $ 179,012 | $ 201,751 | $ 203,613 | $ (78,481) | $ 179,514 | $ 178,372 | $ 584,376 | $ 279,405 |
Denominator: | ||||||||
Basic weighted-average common shares outstanding (shares) | 146,240 | 145,513 | 145,969 | 145,217 | ||||
Effect of dilutive securities: | ||||||||
Stock options and restricted stock units (shares) | 722 | 0 | 1,065 | 1,177 | ||||
Diluted weighted average shares (shares) | 146,962 | 145,513 | 147,034 | 146,394 | ||||
Basic earnings (loss) per share (dollars per share) | $ 1.22 | $ (0.54) | $ 4.00 | $ 1.92 | ||||
Diluted earnings (loss) per share (dollars per share) | $ 1.22 | $ (0.54) | $ 3.97 | $ 1.91 |
Legal Actions and Contingencies (Details) - Contingent Obligations Under Recourse Provisions - USD ($) $ in Millions |
9 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Jun. 30, 2021 |
|
Loss Contingencies [Line Items] | |||
Receivables sold with limited recourse | $ 126.2 | $ 112.2 | |
Maximum potential contingent liability | 47.0 | $ 30.2 | |
Contingent provision | $ 3.4 | $ 8.2 |
Restructuring Expenses (Narrative) (Details) - USD ($) $ in Thousands |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Mar. 31, 2021 |
Mar. 31, 2022 |
Mar. 31, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | $ 0 | $ 0 | $ 0 | $ 8,673 |
Portable Oxygen Concentrator Business Closure | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring expenses | 13,900 | 13,900 | ||
Inventory write-downs | 5,200 | 5,200 | ||
Accelerated amortization | 5,100 | 5,100 | ||
Asset impairments | 2,300 | 2,300 | ||
Employee-related costs | 700 | 700 | ||
Contract cancellation costs | 600 | 600 | ||
Cost of sales | 5,200 | 5,200 | ||
Restructuring expenses | $ 8,700 | $ 8,700 |
Label | Element | Value |
---|---|---|
Accounting Standards Update [Extensible Enumeration] | us-gaap_AccountingStandardsUpdateExtensibleList | Accounting Standards Update 2016-13 [Member] |
D#!B3 _>!5DHF%I$2#(56:SD'O[[1M@:
M]9M;#/+$AITFD"_LC=S[,-&"5>#EI,C0UD@.^FW;Z=)^Q\$(:45(FQ".?1\*
M17IQ/" /\!SY&IMSATL.8/J110(57681F<)K@]=.PJV/#GQEW8[[GXBG^@Q&
M_$7L8B,M+K=@,;D)^%I@<%41<' ;_PA7SL>9%-L@]LSYQ#6G8PRMJ@P.[N
MT68B52PD?P3)^8\$5QQ0A[H86U4C'-S:_S6FQ==K9,*5OBTPH*HP.+B;YY-J
M#!WT^=S@ OUN'P.IJH_F#\&"09AL18^6@1J3O]MI=V[8QHJH>.+B1OP0*
M2I-8$8?^M/R9++B72 "6/0K[;2SS"ELPM !/'
M-]#!7EF;AHCD%5GKZGA-5676 4[D*\KV:338F&VRC%T&_.. .-V0R]AUD6]]
M]'0M'9(+H.,^=SYSF$^->"34 S@6<^')(H0-S<9?@1SI$V$KA[BP!*\+:.=,
M:B_K":7N(%(*TN)"MMQ:-BJ/C 1M4Z O61!_7HX$.*!.IW_[R*E;$,6L\7I
MV63T"/G,['>YT]LM()9X #@*7%- W\![[('>:]A9I2.1_\D@KT9B:>+RK",D
M&=Q[1!+.TSO!EL,29TW;.CQSS[^F^@-)H%\$JU\H&YP\X1S 4;_[1# !X!>&
MG0E&_XG<4=TB&L"14"R)&KY2X]DP6 W6='T74H 6_*HQ>.-H-I0ZW3]"B">YAYU]
M.>.IMM%["T5[_AJ6C5)/CB;Z">7X=(=/&-^=)ZN?CEZPK:G1?M$.H^"%B?@=
ME44:I7F%55%F49TF6(DH+?*HJ$N_CC,1U7%-=WKE#JPDF8F[T%68(TF49(+J
M-*K2@D1=0C$E4991E:2C!]]15611'L?>8!6518 NV'@=!Y,BCDK$\TZ![V8D
MV/?;:=&?!/=B6"*)XIBC2M(HKVHL\BI*2X%%6D=U^ !,<% FI P.=W+Z$Q(M.&8/A BS67"-D]Z)@B0\9K&&C $L9@MW8G'>Q&
MH'-:27FP%_(%+[G*!/., 2/>O1 O+RVM8WKY=.X=I!LY$OS/Z)"0F,Z%$P;<
MY7=X\&? \!10Q^\?H:3$^L\B#9:LM7$A4S)M742<6P,NL$E#T",FES!K%[%U
MB0G$.JS("JY6T (FP8% 5;0TNF)Z8879^!U]>G3K )4PFY"LRG)_2H7L(50/
M&80!*RM9\OU2I'C0,LLKK+6V%F!.< 6YQMH7RY#PE:@*A]SE $QF^+SM<(;J
MH.!306)5*1WW"4P3>"?N" -+V*X-0 QFOZ&F0#W^(CP7L:N]/V>4Z])])DTXZKNXYNO
M,? ?VL\=AA<+ZXR;H^5E%3A"4GMNB);-UM192/[CK@"PU<#)BT"B/731\5NIITCH&X5V60_C@=>-B\TU1\7%.U<\M I<$<
MY[[&N0QC5RO.,%@@W27L'(-Q+F-73V X4!W1@++BG;+BX\JJG5^6>F,*?:3
M)B_X],H16<-5?ZW4>H_@8#7B/7H$%\)D%+M+
DF/M4Q_ML'58=
MK6E;=E";4 %<2'<@36V(#G&^A\]7K45CLG,A);?4PK@%AB4%8 TQ*>,C>FJ[
MP+7F$160@PDC(D[LZ>4"SS&-D7>":=)&8=;^1C&*(+H&U"B "X:%YG84)O?3
M!"ER"1M6I"VP2Y(","" )4 BE*P4CB @': LK1?.Z: O: P15K,(/'TTA1I
M%8+",J0?CP#B0"0T9I[&:X& P@HAL/#^*]VH4$6[4$7@# -D@!2$.3/,Q85F
M&-9Z 8?U@KOP=OE\A5TU@-6BAHD5Z>,6:,X;B[8G@#6U\')&F=4%@#7/O($<
M3"@BQ ). > Y2E@B/+(8:V6#P\HFO/!V\C$&M S$QP N&!9'28RA68P^E(Q=
M;0-3<@L,KZB -9B2 6N^R 4]33'UI!B/A92QO9NG+OGX,R>[1/ FEHJU6;<3D@ UGP3 G"0RAAQ
M^XHA #S'F"+J$;5<:Q$>UB+];U3!2R60H@ 9%$@GA,)"JQ0^-)O0BT1=->(A
MT:3/4@F]= "2J&O-%QF @S") KHJ1*)""RL1/_U2*;0T$J>=) S
6.R066HX_?_ALU;W-&_4M,G=,X
MQ_/:QVD7I9&GN"06:(2\/7K>6C",8QY[$S87FZMVV)F2./.HME0D82K>*ED(
M48Y[J^60S8[D.T4OV9=DT3S,'5:11ZV%(PG#\?26/_=./4,KLT,'Z1#6.V[*
M'JC40/Q&*E'=-R-RBF>(^0:V0^&)>PMF(XHAC3P5?8>-
M8.L)5(S=MMF<,#6G>E?#F-!YG>\PPQE)/4\OJ 4A?1V$I2B4@!+*.'TH^*!Z
M[3^8I/@ Q4GCV84.QN60(N89WF5'*(D)]LBW+*3AWO'&)Q=QC=90D3>-"2#3
M6 A527?L+QM DL?+Q.ZP,PL5^Z+'8I:&,1N8==E!)44]
M_0^UG*7A3O&NV^\'CO(:E55;U++ME)C:!U.J0&@-;_ 1Z':A%H:TC -OQP_
M$:C*"1]*;#K/2QVZ1!JCA"2+I5[:X2R"?L7M*V;9Q\+L^])HH:#0]"9BY@);
MFLY9X3++$N;IIICE&@MS[3.O%(+HZ_KE>WDN./9_[TQVJ[NR)[,GG3''8\L\
M6[RJ65KA.,\]V8Q9T+$PZ'ZW3R^-^&[G;EJ9JZUCBR<&+C-ZV*,
CICE^IU70N
!,*O)-K6/YX+E.V]0,3];FUTGG]"&%_6)+-3JIKCF2'[NY75Y#"/'-W6HMG
M%Q7]WE [D5**3Z$G-S1MB<^I3QRW=Q_4+W; 0>-ZN Q Y%6HO63(+M7.UWVH
M2[X9N]2WTK4F#<=G/_4ZUU]R'XLZ/6_3QJ[IN@*XD>[9#[=WKZ3 SQ[R&F]]
M_5NY>B:WS);#V?/@P_Y,7)=F=+=3>JESKU-_BC3SZPK;M%-NUQ:,(TT:+X7V
MC&].>3IU*+KXNY-A8>;[(V=7Z^Y>RQVY+[H
+]L^,W0+@Z^%2M9>_^9!U?%V6C*A,A2GMB"QM^6+LE:-@0:7WJ;HX-+
M!@Z_]]9_%NW0LM:1+KW]W12I.ALM1ZJ@4K
J (TTQ^TKJ>.BZQ/UB2C/)_^&\]B/R,%>Y/03])H!"9"_Q)7.W_<;FF,KJU.E%"1IK0)2!<5
M[=3'XRY-H"]N"_5$BP<1[.^83G9_;+8(NG!)+Z>K[#0A:)L9V)H3QY(NC0\+
MVEVKT>GY#5X+DF"KZMO#7=EPWC:G6W8?A G8.6 _X!@O.H(S -0Q(VG2Z
MKI!YAM7(F^U>6RNL<+VVV-KVPUI(X@PF2L! Y1N;03_O&-R67QG=!-_4&LS7
M(=Y6-V9B0&H/]B,2ARQ7QW"""1"$'+^21D=KZ2V;K\5VX1^I'&
&2@P.
M_)VC+YUQ.BTTNUH$^!(HB\(E!=I"80:S 7S,@2V2
TJ9;EK@
MSW3;R0+G&=]+1L.ME12N[VE:O#U*D]=OIYNWF]W^LE]IOXGW?PR %:9UZP'8
M!%2S$PE,Y/IENW\(MDL+[M@&6)?3<0;_3XR+ O#[Q-JP?H@.-O]X+OX!4$L#
M!!0 ( -V5G%2F;SGWG@0 ,H) 9 >&PO=V]R:W-H965T
URLK/;.Z8EET<#5S\K
M8Z[A 37L:Z81KKZP@T!SO0XM^7':83%@[GK,Y W,'#XI:6L#=[+$\K5]2/Q&
MDLF9Y"YY%_ 3TU.8Q1-(HB1Y!V\V!CWS>+/_"OHEVC]N#L9JNB-_OH.?COBI
MQT_?P-]3Z92=0/BE@ATSO( ;6<(M%YW%$O[M_6LI?M>#*]65:5F!FX!JT:!^
MPF#;NV+DJAQ