RMD 2022.12.31 10Q (As Filed Jan 26, 2023) PDF

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549
______________________________________________________________________________________________
FORM 10-Q
______________________________________________________________________________________________
(Mark One)
x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT

OF 1934
For the quarterly period ended December 31, 2022
o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT

OF 1934
For the transition period from _______to _______

Commission File Number: 001-15317
______________________________________________________________________________________________
ResMed Inc.
(Exact name of registrant as specified in its charter)
______________________________________________________________________________________________
Delaware
(State or other jurisdiction of incorporation or organization)
98-0152841
(I.R.S. Employer Identification No.)
9001 Spectrum Center Blvd.
San Diego, CA 92123
United States of America
(Address of principal executive offices, including zip code)
(858) 836-5000
(Registrant’s telephone number, including area code)
______________________________________________________________________________________________
Securities registered pursuant to Section 12(b) of the Exchange Act:
Trading
Title of each class Symbol(s) Name of each exchange on which registered
Common Stock, par value $0.004 per share RMD New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to
file such reports) and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted
pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period
that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller
reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,”
“smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large Accelerated Filer x Accelerated Filer o

Non-Accelerated Filer o Smaller Reporting Company o
Emerging Growth Company o
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period
for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
At January 23, 2023 there were 146,909,413 shares of Common Stock ($0.004 par value) outstanding. This number excludes
41,836,234 shares held by the registrant as treasury shares.
Table of Contents
RESMED INC. AND SUBSIDIARIES
INDEX
Part I Financial Information 3
Item 1 Financial Statements 3
Condensed Consolidated Balance Sheets (Unaudited) 3
Condensed Consolidated Statements of Operations (Unaudited) 4
Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5
Condensed Consolidated Statements of Changes in Equity (Unaudited) 6
Condensed Consolidated Statements of Cash Flows (Unaudited) 8
Notes to the Condensed Consolidated Financial Statements (Unaudited) 9
Item 2 Management’s Discussion and Analysis of Financial Condition and Results of Operations 23
Item 3 Quantitative and Qualitative Disclosures About Market Risk 36
Item 4 Controls and Procedures 39
Part II Other Information 40
Item 1 Legal Proceedings 40
Item 1A Risk Factors 40
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 40
Item 3 Defaults Upon Senior Securities 40
Item 4 Mine Safety Disclosures 40
Item 5 Other Information 40
Item 6 Exhibits 41
Signatures 42
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PART I – FINANCIAL INFORMATION Item 1

Item 1. Financial Statements
Condensed Consolidated Balance Sheets (Unaudited)
(In US$ and in thousands, except share and per share data)
December 31, June 30,
2022 2022
Assets
Current assets:
Cash and cash equivalents $ 253,199 $ 273,710
Accounts receivable, net of allowances of $27,118 and $23,259 at December 31, 2022 and June 30, 2022, 672,271 575,950
respectively
Inventories (note 3) 988,955 743,910
Prepaid expenses and other current assets (note 3) 410,731 337,908
Total current assets 2,325,156 1,931,478
Non-current assets:
Property, plant and equipment, net (note 3) 522,745 498,181
Operating lease right-of-use assets 128,222 132,314
Goodwill (note 4) 2,767,179 1,936,442
Other intangible assets, net (note 3) 586,857 345,944
Deferred income taxes 85,783 79,746
Prepaid taxes and other non-current assets 260,162 171,748
Total non-current assets 4,350,948 3,164,375
Total assets $ 6,676,104 $ 5,095,853
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 196,003 $ 159,245
Accrued expenses 312,169 344,722
Operating lease liabilities, current 22,429 21,856
Deferred revenue 133,909 108,667
Income taxes payable (note 6) 58,304 44,893
Short-term debt, net (note 8) 9,900 9,916
Total current liabilities 732,714 689,299
Non-current liabilities:
Deferred revenue 102,803 95,455
Deferred income taxes 107,540 9,714
Operating lease liabilities, non-current 116,445 120,453
Other long-term liabilities 50,603 5,974
Long-term debt, net (note 8) 1,790,689 765,325
Long-term income taxes payable (note 6) 37,183 48,882
Total non-current liabilities 2,205,263 1,045,803
Total liabilities 2,937,977 1,735,102
Commitments and contingencies (note 10)
Stockholders’ equity:
Preferred stock, $0.01 par value, 2,000,000 shares authorized; none issued — —
Common stock, $0.004 par value, 350,000,000 shares authorized; 188,737,368 issued and 146,901,134 588 586
outstanding at December 31, 2022 and 188,246,955 issued and 146,410,721 outstanding at June 30, 2022
Additional paid-in capital 1,710,766 1,682,432
Retained earnings 3,920,197 3,613,736
Treasury stock, at cost, 41,836,234 shares at December 31, 2022 and June 30, 2022 (1,623,256) (1,623,256)
Accumulated other comprehensive loss (270,168) (312,747)
Total stockholders’ equity 3,738,127 3,360,751
Total liabilities and stockholders’ equity $ 6,676,104 $ 5,095,853
See the accompanying notes to the unaudited condensed consolidated financial statements.
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Condensed Consolidated Statements of Operations (Unaudited)
(In US$ and in thousands, except per share data)
Three Months Ended Six Months Ended

December 31, December 31,
2022 2021 2022 2021
Net revenue - Sleep and Respiratory Care products $ 916,981 $ 795,840 $ 1,761,424 $ 1,602,339
Net revenue - Software as a Service 116,763 99,034 222,614 196,551
Net revenue 1,033,744 894,874 1,984,038 1,798,890
Cost of sales - Sleep and Respiratory Care products 406,303 343,194 770,146 692,876
Cost of sales - Software as a Service 40,421 36,131 79,688 73,117
Cost of sales (exclusive of amortization shown separately below) 446,724 379,325 849,834 765,993
Amortization of acquired intangible assets - Sleep and Respiratory 1,343 1,072 2,572 1,972
Care products
Amortization of acquired intangible assets - Software as a Service 5,962 10,159 11,108 20,317
Amortization of acquired intangible assets 7,305 11,231 13,680 22,289
Total cost of sales 454,029 390,556 863,514 788,282
Gross profit 579,715 504,318 1,120,524 1,010,608
Selling, general, and administrative 211,672 185,362 404,860 362,082

Research and development 69,874 62,507 133,062 122,457
Acquisition related expenses 8,412 — 9,157 —
Total operating expenses 299,521 255,607 564,592 499,984
Income from operations 280,194 248,711 555,932 510,624
Other income (loss), net:
Interest (expense) income, net (10,338) (5,948) (17,472) (11,308)
Loss attributable to equity method investments (note 5) (2,826) (1,914) (4,853) (3,300)
Gain (loss) on equity investments (note 5) 8,368 (4,404) 5,088 1,208
Other, net (1,707) 841 (3,211) (1,150)
Total other income (loss), net (6,503) (11,425) (20,448) (14,550)
Income before income taxes 273,691 237,286 535,484 496,074
Income taxes 48,777 35,535 100,092 90,710
Net income $ 224,914 $ 201,751 $ 435,392 $ 405,364
Basic earnings per share (note 9) $ 1.53 $ 1.38 $ 2.97 $ 2.78
Diluted earnings per share (note 9) $ 1.53 $ 1.37 $ 2.95 $ 2.76
Dividend declared per share $ 0.44 $ 0.42 $ 1.68 $ 0.84
Basic shares outstanding (000's) 146,704 145,990 146,568 145,835
Diluted shares outstanding (000's) 147,405 147,040 147,367 147,044
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Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
(In US$ and in thousands)

2022 2021 2022 2021
Net income $ 224,914 $ 201,751 $ 435,392 $ 405,364
Other comprehensive income (loss), net of taxes:
Unrealized losses on designated hedging instruments (20,203) — (20,203) —
Foreign currency translation (loss) gain adjustments 156,163 (6,092) 62,782 (29,608)
Comprehensive income $ 360,874 $ 195,659 $ 477,971 $ 375,756
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Condensed Consolidated Statements of Changes in Equity (Unaudited)
Accumulated
Common Stock Additional Treasury Stock ͏Other
͏Paid-in Retained ͏Comprehensive
Shares Amount Capital Shares Amount Earnings Income (Loss) Total
Balance, June 30, 2022 188,247 $ 586 $ 1,682,432 (41,836) $ (1,623,256) $ 3,613,736 $ (312,747) $ 3,360,751
Common stock issued on exercise of options 45 — 2,610 — — — — 2,610
Common stock issued on vesting of restricted stock units, 3 — (59) — — — — (59)
net of shares withheld for tax
Stock-based compensation costs — 16,919 — — — — 16,919
Other comprehensive income (loss) — — — — — — (93,381) (93,381)
Net income — — — — — 210,478 — 210,478
Dividends declared ($0.44 per common share) — — — — — (64,431) — (64,431)
Balance, September 30, 2022 188,295 $ 586 $ 1,701,902 (41,836) $ (1,623,256) $ 3,759,783 $ (406,128) $ 3,432,887
Common stock issued on exercise of options 77 5,120 — — — — 5,120
Common stock issued on vesting of restricted stock units, 265 1 (29,655) — — — — (29,654)
Common stock issued on employee stock purchase plan 100 1 16,935 — — — — 16,936
Stock-based compensation costs — — 16,464 — — — — 16,464
Other comprehensive income — — — — — — 135,960 135,960
Net income — — — — — 224,914 — 224,914
Balance, December 31, 2022 188,737 $ 588 $ 1,710,766 (41,836) $ (1,623,256) $ 3,920,197 $ (270,168) $ 3,738,127 ͏
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Condensed Consolidated Statements of Changes in Equity (Unaudited)
Accumulated
Common Stock Additional Treasury Stock ͏Other
͏Paid-in Retained ͏Comprehensive
Shares Amount Capital Shares Amount Earnings Income (Loss) Total
Balance, June 30, 2021 187,485 $ 583 $ 1,622,199 (41,836) $ (1,623,256) $ 3,079,640 $ (193,487) $ 2,885,679
Common stock issued on vesting of restricted stock units, 1 — (195) — — — — (195)
Other comprehensive income (loss) — — — — — — (23,516) (23,516)
Net income — — — — — 203,613 — 203,613
Balance, September 30, 2021 187,547 $ 583 $ 1,643,661 (41,836) $ (1,623,256) $ 3,222,064 $ (217,003) $ 3,026,049
Common stock issued on vesting of restricted stock units, 361 2 (49,832) — — — — (49,830)
Common stock issued on employee stock purchase plan 101 — 16,723 — — — — 16,723
Other comprehensive income — — — — — — (6,092) (6,092)
Net income — — — — — 201,751 — 201,751
Balance, December 31, 2021 188,048 $ 585 $ 1,629,031 (41,836) $ (1,623,256) $ 3,362,570 $ (223,095) $ 3,145,835
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Condensed Consolidated Statements of Cash Flows (Unaudited)
Six Months Ended

December 31,
2022 2021
Cash flows from operating activities:
Net income $ 435,392 $ 405,364
Adjustment to reconcile net income to net cash provided by operating activities:
Depreciation and amortization 74,040 79,891
Amortization of right-of-use assets 15,533 17,334
Stock-based compensation costs 33,383 33,404
Loss attributable to equity method investments (note 5) 4,853 3,300
(Gain) loss on equity investments (note 5) (5,088) (1,208)
Changes in operating assets and liabilities:
Accounts receivable (75,823) 82,469
Inventories (233,116) (139,249)
Prepaid expenses, net deferred income taxes and other current assets (66,646) (21,389)
Accounts payable, accrued expenses, income taxes payable and other (9,230) (305,694)
Net cash provided by operating activities 173,298 154,222
Cash flows from investing activities:
Purchases of property, plant and equipment (56,406) (57,747)
Patent registration and acquisition costs (7,636) (13,737)
Business acquisitions, net of cash acquired (note 12) (1,011,225) (35,915)
Purchases of investments (note 5) (17,132) (12,364)
(Payments) / proceeds on maturity of foreign currency contracts 7,181 (5,419)
Net cash used in investing activities (1,085,218) (125,182)
Cash flows from financing activities:
Proceeds from issuance of common stock, net 24,666 23,455
Taxes paid related to net share settlement of equity awards (29,713) (50,025)
Proceeds from borrowings, net of borrowing costs 1,070,000 160,000
Repayment of borrowings (45,000) (136,000)
Dividends paid (128,931) (122,434)
Net cash (used in) / provided by financing activities 891,022 (125,004)
Effect of exchange rate changes on cash 387 (4,838)
Net decrease in cash and cash equivalents (20,511) (100,802)
Cash and cash equivalents at beginning of period 273,710 295,278
Cash and cash equivalents at end of period $ 253,199 $ 194,476
Supplemental disclosure of cash flow information:
Income taxes paid, net of refunds $ 107,985 $ 382,903
Interest paid $ 17,472 $ 11,308
Fair value of assets acquired, excluding cash $ 359,730 $ 8,986
Liabilities assumed (144,778) (2,492)
Goodwill on acquisition 800,003 33,499
Previously held equity interest — (4,078)
Deferred payments (874) —
Fair value of contingent consideration (2,856) $ —
Cash paid for acquisitions $ 1,011,225 $ 35,915
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Notes to the Condensed Consolidated Financial Statements
(Unaudited)
(1) 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 and Germany 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, 2023.
The condensed consolidated financial statements for the three and six months ended December 31, 2022 and December 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, 2022.
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 care
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.
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(Unaudited)
Disaggregation of revenue
The following table summarizes our net revenue disaggregated by segment, product and region (in thousands):

2022 2021 2022 2021
U.S., Canada and Latin America
Devices $ 345,525 $ 244,775 $ 685,070 $ 520,707
Masks and other 269,733 242,032 508,293 457,139
Total U.S., Canada and Latin America $ 615,258 $ 486,807 $ 1,193,363 $ 977,846
Combined Europe, Asia and other markets
Devices $ 197,275 $ 207,736 $ 375,305 $ 425,961
Masks and other 104,448 101,297 192,756 198,532
Total Combined Europe, Asia and other markets $ 301,723 $ 309,033 $ 568,061 $ 624,493
Global revenue
Total Devices $ 542,800 $ 452,511 $ 1,060,375 $ 946,668
Total Masks and other 374,181 343,329 701,049 655,671
Total Sleep and Respiratory Care $ 916,981 $ 795,840 $ 1,761,424 $ 1,602,339
Software as a Service 116,763 99,034 222,614 196,551

Total $ 1,033,744 $ 894,874 $ 1,984,038 $ 1,798,890
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 cloud-hosted 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):

2022 2022 Balance sheet caption
Contract assets
Accounts receivable, net $ 672,271 $ 575,950 Accounts receivable, net
Unbilled revenue, current 23,110 25,692 Prepaid expenses and other current assets
Unbilled revenue, non-current 8,935 8,840 Prepaid taxes and other non-current assets
Contract liabilities
Deferred revenue, current (133,909) (108,667) Deferred revenue (current liabilities)
Deferred revenue, non-current (102,803) (95,455) Deferred revenue (non-current liabilities)
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
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(Unaudited)
customers. When we give customers the right to return eligible products and receive credit, returns are estimated based on
an analysis of our historical experience. However, returns of products, excluding warranty-related returns, have historically
been 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 each quarter 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 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. Operating lease revenue was $20.4 million and $44.1 million for the three
and six months ended December 31, 2022 and $24.4 million and $49.6 million for the three and six months ended
December 31, 2021.
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.
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(Unaudited)
(2) 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, 2022. 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, acquisition
related expenses, 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.
Additionally, effective in the first quarter of fiscal year 2023, we updated the extent of allocation and method of attribution
of certain shared costs that are principally managed at the corporate level as part of our evaluation of segment operating
performance. As a result, certain shared administrative costs, including shared IT, legal and other administrative functions,
which were previously included in segment operating results, are now reported in Corporate costs within our reconciliation
of segment operating profit to income before income taxes. The financial information presented herein reflects the impact
of the preceding reporting change for all periods presented.
The table below presents a reconciliation of net revenues and net operating profit by reportable segments (in thousands):

2022 2021 2022 2021
Net revenue by segment
Total Sleep and Respiratory Care $ 916,981 $ 795,840 $ 1,761,424 $ 1,602,339
Total $ 1,033,744 $ 894,874 $ 1,984,038 $ 1,798,890
Depreciation and amortization by segment

Sleep and Respiratory Care $ 18,533 $ 19,347 $ 38,301 $ 37,362
Amortization of acquired intangible assets and corporate assets 17,137 19,585 31,730 38,971
Total $ 37,767 $ 40,789 $ 74,040 $ 79,891
Net operating profit by segment

Sleep and Respiratory Care $ 373,367 $ 324,469 $ 726,027 $ 661,465
Total $ 402,181 $ 346,805 $ 779,608 $ 705,708
Reconciling items
Corporate costs $ 96,707 $ 79,125 $ 183,326 $ 157,350
Acquisition related expenses 8,412 — 9,157 —
Interest expense (income), net 10,338 5,948 17,472 11,308
Loss attributable to equity method investments 2,826 1,914 4,853 3,300
(Gain) loss on equity investments (8,368) 4,404 (5,088) (1,208)
Other, net 1,707 (841) 3,211 1,150
Income before income taxes $ 273,691 $ 237,286 $ 535,484 $ 496,074
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(Unaudited)
(3) Supplemental Balance Sheet Information
Components of selected captions in the condensed consolidated balance sheets consisted of the following (in thousands):

Inventories 2022 2022
Raw materials $ 463,438 $ 355,225
Work in progress 3,015 3,077
Finished goods 522,502 385,608
Total inventories $ 988,955 $ 743,910

Prepaid expenses and other current assets 2022 2022
Prepaid taxes $ 113,428 $ 99,352
Prepaid inventories 149,862 107,291
Other prepaid expenses and current assets 147,441 131,265
Total prepaid expenses and other current assets $ 410,731 $ 337,908

Property, Plant and Equipment 2022 2022
Property, plant and equipment, at cost $ 1,200,141 $ 1,131,295
Accumulated depreciation and amortization (677,396) (633,114)
Property, plant and equipment, net $ 522,745 $ 498,181

Other Intangible Assets 2022 2022
Developed/core product technology $ 401,409 $ 350,671
Accumulated amortization (252,696) (239,647)
Developed/core product technology, net 148,713 111,024
Customer relationships 440,729 257,034
Customer relationships, net 335,667 165,303
Other intangibles 239,686 204,580
Other intangibles, net 102,477 69,617
Total other intangibles, net $ 586,857 $ 345,944
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.
(4) Goodwill
A reconciliation of changes in our goodwill by reportable segment is as follows (in thousands):
Six Months Ended December 31, 2022

Sleep and SaaS Total
͏Respiratory Care
Balance at the beginning of the period $ 641,724 $ 1,294,718 $ 1,936,442
Business acquisitions 19,281 780,722 800,003
Foreign currency translation adjustments 6,254 24,480 30,734
Balance at the end of the period $ 667,259 $ 2,099,920 $ 2,767,179
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(5) 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):

Measurement category 2022 2022
Fair value $ 4,980 $ 9,167
Measurement alternative 65,697 39,290
Equity method 64,099 9,918
Total $ 134,776 $ 58,375
The following tables show a reconciliation of the changes in our equity investments (in thousands):

Non-marketable Marketable Equity method
securities securities investments Total
Balance at the beginning of the period $ 39,290 $ 9,167 $ 9,918 $ 58,375
(1)
Additions to investments 17,132 — 57,233 74,365
Observable price adjustments on non-marketable equity securities 9,275 — — 9,275
Unrealized losses on marketable equity securities — (4,187) — (4,187)
Loss attributable to equity method investments — — (4,853) (4,853)
Foreign currency translation adjustments — — 1,801 1,801
Carrying value at the end of the period $ 65,697 $ 4,980 $ 64,099 $ 134,776
(1) Includes equity method investment acquired and measured at fair value via our acquisition of MEDIFOX DAN. Refer to Note 12 herein.
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Non-marketable Marketable Equity method
securities securities investments Total
Balance at the beginning of the period $ 23,002 $ 29,084 $ 17,154 $ 69,240
Net additions (reductions) to investments (2) 4,665 (3,213) — 1,452
Observable price adjustments on non-marketable equity securities 5,367 — — 5,367
Unrealized losses on marketable equity securities — (7,942) — (7,942)
Realized gains on marketable and non-marketable equity securities 2,355 1,637 — 3,992
Impairment of investments (209) — — (209)
Loss attributable to equity method investments — — (3,300) (3,300)
Carrying value at the end of the period $ 35,180 $ 19,566 $ 13,854 $ 68,600
(2) 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.
Net unrealized gains recognized for equity investments in non-marketable and marketable securities held as of
December 31, 2022 for the three and six months ended December 31, 2022 were $8.4 million and $5.1 million. Net
unrealized losses recognized for equity investments in non-marketable and marketable securities held as of December 31,
2021 for the three and six months ended December 31, 2021 were $6.9 million and $2.8 million.
(6) 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.
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.
(7) 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):
Six Months Ended

December 31,
2022 2021
Balance at the beginning of the period $ 25,889 $ 22,032
Warranty accruals for the period 5,099 9,751
Warranty costs incurred for the period (5,480) (6,932)
Foreign currency translation adjustments 281 (371)
Balance at the end of the period $ 25,789 $ 24,480
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(8) Debt
Debt consisted of the following (in thousands):

2022 2022
Short-term debt $ 10,000 $ 10,000
Deferred borrowing costs $ (100) $ (84)
Short-term debt, net $ 9,900 $ 9,916
Long-term debt $ 1,795,000 $ 770,000

Deferred borrowing costs (4,311) (4,675)
Long-term debt, net $ 1,790,689 $ 765,325
Total debt $ 1,800,589 $ 775,241
Credit Facility
On June 29, 2022, we entered into a second amended and restated credit agreement (the “Revolving Credit Agreement”), as
borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line
lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank
USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as
documentation agent. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit
facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount
equal to the greater of $1,000.0 million and 1.00 times the EBITDA (as defined in the Revolving Credit Agreement) for the
trailing twelve-month measurement period. The Revolving Credit Agreement amends and restates that certain Amended
and Restated Credit Agreement, dated as of April 17, 2018, among ResMed, MUFG Union Bank, N.A., Westpac Banking
Corporation and the lenders party thereto.
Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility
Agreement and First Amendment to Unconditional Guaranty 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, which amends that certain Syndicated Facility
Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty a senior
unsecured term credit facility of $195.0 million.
Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S.
subsidiaries, and ResMed Pty 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 June 29, 2027, when all unpaid principal
and interest under the loans must be repaid. Amounts borrowed under the Term Credit Agreement will also amortize on a
semi-annual basis, with a $5.0 million principal payment required on each such semi-annual amortization date. The
outstanding principal amounts will bear interest at a rate equal to the Adjusted Term SOFR (as defined in the Revolving
Credit Facility) 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 December 31, 2022, the interest rate that was being charged on the outstanding principal
amounts was 5.2%. An applicable commitment fee of 0.075% to 0.150% (depending on the then-applicable leverage ratio)
applies on the unused portion of the revolving credit facility. As of December 31, 2022, we had $390.0 million available
for draw down under the revolving credit facility.
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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 Adjusted Term SOFR plus the spreads described above, its carrying
amount is equivalent to its fair value as at December 31, 2022 and June 30, 2022, which was $1,305.0 million and $280.0
million, respectively.
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 December 31, 2022 and
June 30, 2022, the Senior Notes had a carrying amount of $500.0 million, excluding deferred borrowing costs, and an
estimated fair value of $460.9 million and $477.7 million, respectively. Quoted market prices in active markets for similar
liabilities based inputs (Level 2) were used to estimate fair value.
At December 31, 2022, we were in compliance with our debt covenants and there was $1,805.0 million outstanding under
the Revolving Credit Agreement, Term Credit Agreement and Senior Notes.
(9) Earnings Per Share

Basic earnings 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 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 weighted average number of outstanding stock options and restricted stock units not included in the computation of
diluted earnings per share were 293,796 and 49,762 for the three months ended December 31, 2022 and 2021, respectively,
and 270,100 and 25,470 for the six months ended December 31, 2022 and 2021, respectively, as the effect would have been
anti-dilutive.
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Basic and diluted earnings per share are calculated as follows (in thousands except per share data):

2022 2021 2022 2021
Numerator:
Net income $ 224,914 $ 201,751 $ 435,392 $ 405,364
Denominator:
Basic weighted-average common shares outstanding 146,704 145,990 146,568 145,835
Effect of dilutive securities:
Stock options and restricted stock units 701 1,050 799 1,209
Diluted weighted average shares 147,405 147,040 147,367 147,044
Basic earnings per share $ 1.53 $ 1.38 $ 2.97 $ 2.78
Diluted earnings per share $ 1.53 $ 1.37 $ 2.95 $ 2.76
(10) Legal Actions, Contingencies and Commitments

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 ("NYU") filed a complaint for patent infringement in the United States District
Court, District of Delaware against ResMed Inc., case no. 1:21-cv-00813 (JPM). The complaint alleges that the AutoSet or
AutoRamp features of ResMed’s AirSense 10 AutoSet flow generators infringe one or more claims of various NYU
patents, including U.S. Patent Nos. 6,988,994; 9,108,009; 9,168,344; 9,427,539; 9,533,115; 9,867,955; and 10,384,024.
According to the complaint, the NYU patents are directed to systems and methods for diagnosis and treating sleeping
disorders during different sleep states. The complaint seeks monetary damages and attorneys’ fees. We 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. We have also requested that the court dismiss the case based on
NYU’s license of the patents to Fisher & Paykel and Fisher & Paykel’s prior settlement with us. The matter is proceeding
to discovery while the court considers our request. In December 2022, the Patent Trial and Appeals Board (“PTAB”) of the
Patent and Trademark Office granted our request to review the validity of the claims in the patents asserted by NYU
against us, determining that there is a reasonable likelihood that we will prevail. The PTAB’s final written decisions on the
validity of the asserted claims is expected by December 2023.
On January 27, 2021, the International Trade Commission ("ITC") 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 sought review
by the full ITC. On July 6, 2022, the Commission affirmed the administrative law judge’s determination that there was no
violation of asserted Philips' patents. The Commission terminated the ITC proceedings. Philips did not appeal the ITC’s
decision. 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 communications module defendants.
The district court cases were stayed pending the resolution of the ITC proceedings. The parties have returned to the district
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court for further proceedings. We are not a party to the ITC investigation or the district court cases, but we sell products
that incorporate some of the communications modules at issue in the district court case.
On June 16, 2022, Cleveland Medical Devices Inc. ("Cleveland Medical") filed suit for patent infringement against
ResMed Inc. in the United States District Court for the District of Delaware, case no. 1:22-cv-00794. Cleveland Medical
asserts that numerous ResMed connected devices, when combined with certain ResMed data platforms and/or software,
including AirView and ResScan, infringe one or more of eight Cleveland Medical patents, including U.S. Patent Nos.
10,076,269; 10,426,399; 10,925,535; 11,064,937; 10,028,698; 10,478,118; 11,202,603; and 11,234,637. We have moved to
dismiss the action because Cleveland Medical sued the wrong ResMed entity. We have also moved to dismiss all claims
based on U.S. Patent No. 10,076,269, as well as indirect and willful infringement allegations as to the remaining patents
asserted against ResMed.
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 six months ended December 31, 2022 and December 31, 2021, receivables sold with limited recourse were
$84.3 million and $94.2 million, respectively. As of December 31, 2022, the maximum exposure on outstanding
receivables sold with recourse and contingent provision were $24.1 million and $1.0 million, respectively. As of June 30,
2022, the maximum exposure on outstanding receivables sold with recourse and contingent provision were $24.2 million
and $2.1 million, respectively.
(11) Derivative Instruments and Hedging Activities

We may use derivative financial instruments, specifically foreign cross-currency swaps, purchased foreign currency call
options, collars and forward contracts to mitigate exposure from certain foreign currency risk. No derivatives are used for
trading or speculative purposes. We do not require or are not required to pledge collateral for the derivative instruments.
Fair Value and Net Investment Hedging
On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in
designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated
intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows
associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as
the hedged item.
The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with
changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded
certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that
qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item
as the hedged item, other, net, in the condensed consolidated statement of operations. The initial fair value of hedge
components excluded from the assessment of effectiveness is recognized in the statement of operations under a systematic
and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any
difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and
the amounts recognized in earnings is recorded as a component of other comprehensive income.
The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with
changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify
and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation
adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or
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substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be
recognized in interest (expense) income, net.
The notional value of outstanding foreign cross-currency swaps was $1,028.8 million at December 31, 2022. These
contracts mature at various dates prior to December 31, 2029.
Non-Designated Hedges
We transact business in various foreign currencies, including a number of major European currencies as well as the
Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore
manufacturing activities, and international sales operations. We have established a foreign currency hedging program using
purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial
assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not
exceed three years. The purpose of this hedging program is to economically manage the financial impact of foreign
currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or
decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by
gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All
movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed
consolidated statements of income.
The notional value of the outstanding non-designated hedges was $976.2 million and $602.0 million at December 31, 2022
and June 30, 2022, respectively. These contracts mature at various dates prior to June 30, 2024.
Fair Values of Derivative Instruments
The following table presents our assets and liabilities related to derivative instruments on a gross basis within the
condensed consolidated balance sheets (in thousands):

2022 2022 Balance Sheet Caption
Derivative Assets
Not Designated as Hedging Instruments
Foreign currency hedging instruments $ 13,944 $ 151 Prepaid expenses and other current assets
Foreign currency hedging instruments 672 9 Prepaid taxes and other non-current assets
Total derivative assets $ 14,616 $ 160
Derivative Liabilities
Designated as Hedging Instruments
Foreign cross-currency swaps – Fair Value Hedge $ 13,747 $ — Other long-term liabilities
Foreign cross-currency swaps – Net Investment Hedge 22,831 — Other long-term liabilities
Not Designated as Hedging Instruments
Foreign currency hedging instruments 2,079 1,947 Accrued expenses
Foreign currency hedging instruments 1,364 — Other long-term liabilities
Total derivative liabilities $ 40,021 $ 1,947
Fair Value Hedge Gains (Losses)

We recognized the following gains (losses) on the foreign cross currency swaps designated as fair value hedges (in
thousands):

2022 2021 2022 2021
Gain (loss) recognized in other comprehensive income (loss) $ (4,610) $ — $ (4,610) $ —
Gain (loss) recognized on cross-currency swap in interest (expense) 847 — 847 —
income, net (amount excluded from effectiveness testing)
Gain (loss) recognized on cross-currency swap in other, net (9,137) — (9,137) —
Gain (loss) recognized on long-term debt in other, net 9,137 — 9,137 —
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Net Investment Hedge Gains (Losses)
We recognized the following gains (losses) on the foreign cross currency swaps designated as net investment hedges (in
thousands):

2022 2021 2022 2021
Gain (loss) recognized in cumulative translation adjustment within $ (22,831) $ — $ (22,831) $ —
other comprehensive income (loss)
Gain (loss) recognized from the excluded components in interest 2,126 — 2,126 —
(expense) income, net
Non-designated Derivative Gains (Losses)

We recognized the following gains (losses) in the condensed consolidated statement of operations on derivatives not
designated as hedging instruments (in thousands):

2022 2021 2022 2021
Gain (loss) recognized on foreign currency hedging instruments in $ 40,090 $ (52) $ 19,568 $ (4,000)
other, net
Gain (loss) recognized on other foreign-currency-denominated (41,795) 549 (22,705) 2,535
transactions in other, net
Total $ (1,705) $ 497 $ (3,137) $ (1,465)
We classified the fair values of all hedging instruments as Level 2 measurements within the fair value hierarchy.
We are exposed to credit-related losses in the event of non-performance by counter parties to financial instruments. We
minimize counterparty credit risk by entering into derivative transactions with major financial institutions and we do not
expect material losses as a result of default by our counterparties.
(12) Business Combinations

On November 21, 2022, we completed our acquisition of 100% of the shares in MediFox-Dan Investment GmbH and its
subsidiaries (“MEDIFOX DAN”), a German leader in software solutions for a wide variety of out-of-hospital care
providers, for $997.5 million. This acquisition has been accounted for as a business combination using purchase accounting
and included in our condensed consolidated financial statements from November 21, 2022. The acquisition was paid for
using funds drawn down from our Revolving Credit Agreement.
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The total purchase price was allocated to MEDIFOX DAN's tangible and identifiable intangible assets and liabilities based
upon preliminary estimated fair values as of the November 21, 2022 closing date, as follows (in thousands):
Intangible assets
Preliminary - useful life
Cash $ 7,372
Accounts receivable 16,096
Property, plant and equipment 7,731
Equity method investment 57,298
Other assets 18,523
Accounts payable and accrued expenses (19,826)
Deferred revenue (18,349)
Other liabilities (11,623)
Identifiable intangible assets:
Developed technology 43,081 6 - 7 years
Customer relationships 175,445 11 - 13 years
Trade names 32,050 10 years
Deferred tax liabilities (91,004)
Goodwill 780,722
Purchase price $ 997,516
We have not finalized the purchase price allocation in relation to this acquisition as certain appraisals associated with the
valuation of intangible assets and income tax positions are not yet complete. We do not believe that the completion of this
work will materially modify the preliminary purchase price allocation. We expect to complete our purchase price allocation
during the quarter ending June 30, 2023. The cost of the acquisition was allocated to the assets acquired and liabilities
assumed based on estimates of their fair values at the date of acquisition. The goodwill recognized as part of the acquisition
is reflected in our SaaS segment and is not deductible for tax purposes. It mainly represents the synergies that are unique to
our combined businesses and the potential for new products and services to be developed in the future.
Pro forma results of operations have not been presented because the effects of this acquisition were not material to our
condensed consolidated statements of operations.
During the three and six months ended December 31, 2022, we recorded acquisition related expenses of $8.4 million and
$9.2 million, respectively, related to the MEDIFOX DAN acquisition. We did not have material acquisition related
expenses during the three and six months ended December 31, 2021.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
Special Note Regarding Forward-Looking Statements

This report contains or may contain certain forward-looking statements and information that are based on the beliefs of our
management as well as estimates and assumptions made by, and information currently available to, our management. All
statements other than statements regarding historical facts are forward-looking statements. The words “believe,” “expect,”
“intend,” “anticipate,” “will continue,” “will,” “estimate,” “plan,” “future” and other similar expressions, and negative
statements of such expressions, generally identify forward-looking statements, including, in particular, statements
regarding expectations of future revenue or earnings, expenses, new product development, new product launches, new
markets for our products, litigation, tax outlook and the effects of competition and public health crises (including the
COVID-19 pandemic) on our business. These forward-looking statements are made in accordance with the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995. You are cautioned not to place undue reliance on these
forward-looking statements. Forward-looking statements reflect the views of our management at the time the statements are
made and are subject to a number of risks, uncertainties, estimates and assumptions, including, without limitation, and in
addition to those identified in the text surrounding such statements, those identified in our annual report on Form 10-K for
the fiscal year ended June 30, 2022 and elsewhere in this report. Information that is based on estimates, forecasts,
projections, market research or similar methodologies is inherently subject to uncertainties and actual events or
circumstances may differ materially from events and circumstances reflected in this information. Unless otherwise
expressly stated, we obtained this industry, business, market, and other data from reports, research surveys, studies, and
similar data prepared by market research firms and other third parties, industry, medical and general publications,
government data, and similar sources.
In addition, important factors to consider in evaluating such forward-looking statements include changes or developments
in healthcare reform, social, economic, market, legal or regulatory circumstances, including the impact of public health
crises such as the novel strain of coronavirus (COVID-19) that has spread globally, changes in our business or growth
strategy or an inability to execute our strategy due to changes in our industry or the economy generally, the emergence of
new or growing competitors, the actions or omissions of third parties, including suppliers, customers, competitors and
governmental authorities and various other factors. If any one or more of these risks or uncertainties materialize, or
underlying estimates or assumptions prove incorrect, actual results may vary significantly from those expressed in our
forward-looking statements, and there can be no assurance that the forward-looking statements contained in this report will
in fact occur.
Before deciding to purchase, hold or sell our common stock, you should carefully consider the risks described in our annual
report on Form 10-K for the fiscal year ended June 30, 2022, in addition to the other cautionary statements and risks
described elsewhere in this report and in our other filings with the Securities and Exchange Commission (“SEC”),
including our subsequent reports on Forms 10-Q and 8-K. These risks and uncertainties are not the only ones we face.
Additional risks and uncertainties not presently known to us or that we currently deem immaterial may also affect our
business. If any of these known or unknown risks or uncertainties actually occurs with material adverse effects on us, our
business, financial condition and results of operations could be seriously harmed. In that event, the market price for our
common stock will likely decline and you may lose all or part of your investment.
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Overview
The following is an overview of our results of operations for the three and six months ended December 31, 2022.
Management’s discussion and analysis of financial condition and results of operations (“MD&A”) is intended to help the
reader understand our results of operations and financial condition. Management’s discussion and analysis is provided as a
supplement to, and should be read in conjunction with, the condensed consolidated financial statements and notes included
in this report.
We are a global leader in the development, manufacturing, distribution and marketing of medical devices and cloud-based
software applications that diagnose, treat and manage respiratory disorders, including sleep disordered breathing (“SDB”),
chronic obstructive pulmonary disease, neuromuscular disease and other chronic diseases. SDB includes obstructive sleep
apnea and other respiratory disorders that occur during sleep. Our products and solutions are designed to improve patient
quality of life, reduce the impact of chronic disease and lower healthcare costs as global healthcare systems continue to
drive a shift in care from hospitals to the home and lower cost settings. Our cloud-based software digital health
applications, along with our devices, are designed to provide connected care to improve patient outcomes and efficiencies
for our customers.
Since the development of continuous positive airway pressure therapy, we have expanded our business by developing or
acquiring a number of products and solutions for a broader range of respiratory disorders including technologies to be
applied in medical and consumer products, ventilation devices, diagnostic products, mask systems for use in the hospital
and home, headgear and other accessories, dental devices, and cloud-based software informatics solutions to manage
patient outcomes and customer and provider business processes. Our growth has been fueled by geographic expansion, our
research and product development efforts, acquisitions and an increasing awareness of SDB and respiratory conditions like
chronic obstructive pulmonary disease as significant health concerns.
We are committed to ongoing investment in research and development and product enhancements. During the three months
ended December 31, 2022, we invested $69.9 million on research and development activities, which represents 6.8% of net
revenues, with a continued focus on the development and commercialization of new, innovative products and solutions that
improve patient outcomes, create efficiencies for our customers and help physicians and providers better manage chronic
disease and lower healthcare costs. During the three months ended December 31, 2022 we continued the launch of
AirSense 11, which introduces new features such as a touch screen, algorithms for patients new to therapy and digital
enhancements and over-the-air update capabilities as well as continued to expand our global offering of devices to include
Card-to-Cloud ("C2C") versions of our prior model AirSense 10 and AirCurve 10 products that do not incorporate a
communications module. We introduced these C2C models to address the growing backlog of patients waiting for therapy
with our devices due to the global semiconductor supply shortage. Due to multiple acquisitions, including Brightree in
April 2016, HEALTHCAREfirst in July 2018, MatrixCare in November 2018, and MEDIFOX DAN in November 2022,
our operations now include 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. These platforms comprise our SaaS business. These
products, our cloud-based remote monitoring and therapy management system, and a robust product pipeline, should
continue to provide us with a strong platform for future growth.
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”).
Net revenue for the three months ended December 31, 2022 was $1,033.7 million, an increase of 16% compared to the
three months ended December 31, 2021. Gross margin was 56.1% for the three months ended December 31, 2022
compared to 56.4% for the three months ended December 31, 2021. Diluted earnings per share was $1.53 for the three
months ended December 31, 2022, compared to diluted earnings per share of $1.37 for the three months ended December
31, 2021.
At December 31, 2022, our cash and cash equivalents totaled $253.2 million, our total assets were $6.7 billion and our
stockholders’ equity was $3.7 billion.
In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign
currency fluctuations, we provide certain financial information on a “constant currency” basis, which is in addition to the
actual financial information presented. In order to calculate our constant currency information, we translate the current
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period financial information using the foreign currency exchange rates that were in effect during the previous comparable
period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar
measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance
with accounting principles generally accepted in the United States (“GAAP”).
Results of Operations
Three Months Ended December 31, 2022 Compared to the Three Months Ended December 31, 2021
Net Revenue
Net revenue for the three months ended December 31, 2022 increased to $1,033.7 million from $894.9 million for the three
months ended December 31, 2021, an increase of $138.9 million or 16% (a 20% increase on a constant currency basis).
Three Months Ended

December 31,
Constant
2022 2021 % Change Currency*
Devices $ 345,525 $ 244,775 41 %
Masks and other 269,733 242,032 11
Total U.S., Canada and Latin America $ 615,258 $ 486,807 26
Devices $ 197,275 $ 207,736 (5)% 5%
Masks and other 104,448 101,297 3 14
Total Combined Europe, Asia and other markets $ 301,723 $ 309,033 (2) 8
Global revenue
Total Devices $ 542,800 $ 452,511 20 % 25 %
Total Masks and other 374,181 343,329 9 13
Total Sleep and Respiratory Care $ 916,981 $ 795,840 15 20
Software as a Service 116,763 99,034 18

Total $ 1,033,744 $ 894,874 16 20
* Constant currency numbers exclude the impact of movements in international currencies.

Sleep and Respiratory Care
Net revenue from our Sleep and Respiratory Care business for the three months ended December 31, 2022 was $917.0
million, an increase of 15% compared to net revenue for the three months ended December 31, 2021. Movements in
international currencies against the U.S. dollar negatively impacted net revenue by approximately $35.8 million for the
three months ended December 31, 2022. Excluding the impact of currency movements, total Sleep and Respiratory Care
net revenue for the three months ended December 31, 2022 increased by 20% compared to the three months ended
December 31, 2021. The increase in net revenue was primarily attributable to an increase in unit sales of our devices and
masks.
Net revenue from our Sleep and Respiratory Care business in the U.S., Canada and Latin America for the three months
ended December 31, 2022 increased to $615.3 million from $486.8 million for the three months ended December 31, 2021,
an increase of $128.5 million or 26%. The increase was primarily due to an increase in unit sales of our devices, including
incremental sales of the C2C devices, and masks.
Net revenue in combined Europe, Asia and other markets decreased for the three months ended December 31, 2022 to
$301.7 million from $309.0 million for the three months ended December 31, 2021, a decrease of $7.3 million or 2% (an
8% increase on a constant currency basis). The constant currency increase in sales in combined Europe, Asia and other
markets predominantly reflects an increase in unit sales of our devices and masks.
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Net revenue from devices for the three months ended December 31, 2022 increased to $542.8 million from $452.5 million
for the three months ended December 31, 2021, an increase of $90.3 million or 20%, including an increase of 41% in the
U.S., Canada and Latin America and a decrease of 5% in combined Europe, Asia and other markets (a 5% increase on a
constant currency basis). Excluding the impact of foreign currency movements, device sales for the three months ended
December 31, 2022 increased by 25%.
Net revenue from masks and other for the three months ended December 31, 2022 increased to $374.2 million from $343.3
million for the three months ended December 31, 2021, an increase of $30.9 million or 9%, including an increase of 11% in
the U.S., Canada and Latin America and an increase of 3% in combined Europe, Asia and other markets (a 14% increase
on a constant currency basis). Excluding the impact of foreign currency movements, masks and other sales for the three
months ended December 31, 2022 increased by 13%.
Software as a Service
Net revenue from our SaaS business for the three months ended December 31, 2022 increased to $116.8 million from $99.0
million for the three months ended December 31, 2021, an increase of $17.7 million or 18%. The constant currency
increase was predominantly due to our recent acquisition of MEDIFOX DAN, which was acquired on November 21, 2022,
in addition to continued growth in the HME vertical within our SaaS business.
Six Months Ended December 31, 2022 Compared to the Six Months Ended December 31, 2021
Net Revenue
Net revenue for the six months ended December 31, 2022 increased to $1,984.0 million from $1,798.9 million for the six
months ended December 31, 2021, an increase of $185.1 million or 10% (a 14% increase on a constant currency basis).
Six Months Ended

December 31,
Constant
2022 2021 % Change Currency*
Devices $ 685,070 $ 520,707 32 %
Masks and other 508,293 457,139 11
Total U.S., Canada and Latin America $ 1,193,363 $ 977,846 22
Devices $ 375,305 $ 425,961 (12)% (2)%
Masks and other 192,756 198,532 (3) 9
Total Combined Europe, Asia and other markets $ 568,061 $ 624,493 (9) 2
Global revenue
Total Devices $ 1,060,375 $ 946,668 12 % 17 %
Total Masks and other 701,049 655,671 7 11
Total Sleep and Respiratory Care $ 1,761,424 $ 1,602,339 10 14
Software as a Service 222,614 196,551 13

Total $ 1,984,038 $ 1,798,890 10 14
Sleep and Respiratory Care

Net revenue from our Sleep and Respiratory Care business for the six months ended December 31, 2022 was $1,761.4
million, an increase of 10% compared to net revenue for the six months ended December 31, 2021. Movements in
international currencies against the U.S. dollar negatively impacted net revenue by approximately $72.3 million for the six
months ended December 31, 2022. Excluding the impact of currency movements, total Sleep and Respiratory Care net
revenue for the six months ended December 31, 2022 increased by 14% compared to the six months ended December 31,
2021. The increase in net revenue was primarily attributable to an increase in unit sales of our devices and masks.
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Net revenue from our Sleep and Respiratory Care business in the U.S., Canada and Latin America for the six months ended
December 31, 2022 increased to $1,193.4 million from $977.8 million for the six months ended December 31, 2021, an
increase of $215.5 million or 22%. The increase was primarily due to an increase in unit sales of our devices, including
incremental sales of the C2C devices, and masks.
Net revenue in combined Europe, Asia and other markets decreased for the six months ended December 31, 2022 to $568.1
million from $624.5 million for the six months ended December 31, 2021, a decrease of $56.4 million or 9% (a 2%
increase on a constant currency basis). The constant currency increase in sales in combined Europe, Asia and other markets
predominantly reflects an increase in unit sales of our masks, partially offset by a decrease in our unit sales of devices.
Net revenue from devices for the six months ended December 31, 2022 increased to $1,060.4 million from $946.7 million
for the six months ended December 31, 2021, an increase of $113.7 million or 12%, including an increase of 32% in the
U.S., Canada and Latin America and a decrease of 12% in combined Europe, Asia and other markets (a 2% decrease on a
constant currency basis). Excluding the impact of foreign currency movements, device sales for the six months ended
December 31, 2022 increased by 17%.
Net revenue from masks and other for the six months ended December 31, 2022 increased to $701.0 million from $655.7
million for the six months ended December 31, 2021, an increase of $45.4 million or 7%, including an increase of 11% in
the U.S., Canada and Latin America and a decrease of 3% in combined Europe, Asia and other markets (a 9% increase on a
constant currency basis). Excluding the impact of foreign currency movements, masks and other sales increased by 11%,
compared to the six months ended December 31, 2021.
Software as a Service
Net revenue from our SaaS business for the six months ended December 31, 2022 was increased to $222.6 million from
$196.6 million for the six months ended December 31, 2021, an increase of $26.1 million or 13%. The increase was
predominantly due to our recent acquisition of MEDIFOX DAN, which was acquired on November 21, 2022, in addition to
continued growth in the HME vertical within our SaaS business.
Gross Profit and Gross Margin

Gross profit increased for the three months ended December 31, 2022 to $579.7 million from $504.3 million for the three
months ended December 31, 2021, an increase of $75.4 million or 15%. Gross margin, which is gross profit as a percentage
of net revenue, for the three months ended December 31, 2022 was 56.1% compared to 56.4% for the three months ended
December 31, 2021.
The decrease in gross margin for the three months ended December 31, 2022 compared to the three months ended
December 31, 2021 was due primarily to unfavorable product mix, higher distribution and warehouse related costs, and
unfavorable foreign currency movements, partially offset by increases in average selling prices and a decrease in the
amortization of acquired intangible assets.
Gross profit increased for the six months ended December 31, 2022 to $1,120.5 million from $1,010.6 million for the six
months ended December 31, 2021, an increase of $109.9 million or 11%. Gross margin for the six months ended December
31, 2022 was 56.5% compared to 56.2% for the six months ended December 31, 2021.
The increase in gross margin for the six months ended December 31, 2022 compared to the six months ended December
31, 2021 was due primarily to favorable average selling prices and a decrease in the amortization of acquired intangible
assets, partially offset by unfavorable product mix changes and higher distribution and warehouse related costs.
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Operating Expenses
The following table summarizes our operating expenses (in thousands):
Three Months Ended

December 31,
Constant
2022 2021 Change % Change Currency
Selling, general, and administrative $ 211,672 $ 185,362 $ 26,310 14 % 20 %
as a % of net revenue 20.5 % 20.7 %
Research and development 69,874 62,507 7,367 12 % 15 %
Amortization of acquired intangible assets 9,563 7,738 1,825 24 % 24 %
Six Months Ended

December 31,
Constant
2022 2021 Change % Change Currency
Selling, general, and administrative $ 404,860 $ 362,082 $ 42,778 12 % 17 %
Research and development 133,062 122,457 10,605 9% 12 %
Amortization of acquired intangible assets 17,513 15,445 2,068 13 % 14 %
Selling, General, and Administrative Expenses

Selling, general, and administrative expenses increased for the three months ended December 31, 2022 to $211.7 million
from $185.4 million for the three months ended December 31, 2021, an increase of $26.3 million or 14%. Selling, general,
and administrative expenses were favorably impacted by the movement of international currencies against the U.S. dollar,
which decreased our expenses by approximately $10.3 million, as reported in U.S. dollars. Excluding the impact of foreign
currency movements, selling, general, and administrative expenses for the three months ended December 31, 2022
increased by 20% compared to the three months ended December 31, 2021. As a percentage of net revenue, selling,
general, and administrative expenses were 20.5% for the three months ended December 31, 2022, compared to 20.7% for
the three months ended December 31, 2021.
The constant currency increase in selling, general, and administrative expenses during the three months ended December
31, 2022 compared to the three months ended December 31, 2021 was primarily due to increases in employee-related costs,
increases in travel and entertainment expenses, and additional expenses associated with the consolidation of recent
acquisitions.
Selling, general, and administrative expenses increased for the six months ended December 31, 2022 to $404.9 million
from $362.1 million for the six months ended December 31, 2021, an increase of $42.8 million or 12%. Selling, general,
and administrative expenses were favorably impacted by the movement of international currencies against the U.S. dollar,
which decreased our expenses by approximately $20.5 million, as reported in U.S. dollars. Excluding the impact of foreign
currency movements, selling, general, and administrative expenses for the six months ended December 31, 2022 increased
by 17% compared to the six months ended December 31, 2021. As a percentage of net revenue, selling, general, and
administrative expenses were 20.4% for the six months ended December 31, 2022, compared to 20.1% for the six months
ended December 31, 2021.
The constant currency increase in selling, general, and administrative expenses during the six months ended December 31,
2022 compared to the six months ended December 31, 2021 was primarily due to increases in employee-related costs,
increases in travel and entertainment expenses, and additional expenses associated with the consolidation of recent
acquisitions.
Research and Development Expenses
Research and development expenses increased for the three months ended December 31, 2022 to $69.9 million from $62.5
million for the three months ended December 31, 2021, an increase of $7.4 million, or 12%. Research and development
expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased
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our expenses by approximately $2.2 million for the three months ended December 31, 2022, as reported in U.S. dollars.
Excluding the impact of foreign currency movements, research and development expenses increased by 15% compared to
the three months ended December 31, 2021. As a percentage of net revenue, research and development expenses were
6.8% for the three months ended December 31, 2022 compared to 7.0% for the three months ended December 31, 2021.
The increase in research and development expenses in constant currency terms was primarily due to increased investment
in our digital health technologies and SaaS solutions as well as additional expenses associated with the consolidation of
recent acquisitions.
Research and development expenses increased for the six months ended December 31, 2022 to $133.1 million from $122.5
million for the six months ended December 31, 2021, an increase of $10.6 million, or 9%. Research and development
expenses were favorably impacted by the movement of international currencies against the U.S. dollar, which decreased
our expenses by approximately $4.2 million for the six months ended December 31, 2022, as reported in U.S. dollars.
Excluding the impact of foreign currency movements, research and development expenses increased by 12% compared to
the six months ended December 31, 2021. As a percentage of net revenue, research and development expenses were 6.7%
for the six months ended December 31, 2022, compared to 6.8% for the six months ended December 31, 2021.
The increase in research and development expenses in constant currency terms was primarily due to increased investment
in our digital health technologies and SaaS solutions as well as additional expenses associated with the consolidation of
recent acquisitions.
Amortization of Acquired Intangible Assets
Amortization of acquired intangible assets for the three months ended December 31, 2022 totaled $9.6 million compared to
$7.7 million for the three months ended December 31, 2021. The increase in amortization expense was primarily
attributable to our acquisition of MEDIFOX DAN.
Amortization of acquired intangible assets for the six months ended December 31, 2022 totaled $17.5 million compared to
$15.4 million for the six months ended December 31, 2021. The increase in amortization expense was primarily
attributable to our acquisition of MEDIFOX DAN.
Total Other Income (Loss), Net

The following table summarizes our other income (loss) (in thousands):
Three Months Ended

December 31,
2022 2021 Change
Interest (expense) income, net $ (10,338) $ (5,948) $ (4,390)
Loss attributable to equity method investments (2,826) (1,914) (912)
Gain (loss) on equity investments 8,368 (4,404) 12,772
Other, net (1,707) 841 (2,548)
Total other income (loss), net $ (6,503) $ (11,425) $ 4,922
Six Months Ended

December 31,
2022 2021 Change
Interest (expense) income, net (17,472) (11,308) $ (6,164)
Loss attributable to equity method investments (4,853) (3,300) (1,553)
Gain (loss) on equity investments 5,088 1,208 3,880
Other, net (3,211) (1,150) (2,061)
Total other income (loss), net $ (20,448) $ (14,550) $ (5,898)
Total other income (loss), net for the three months ended December 31, 2022 was a loss of $6.5 million compared to a loss
of $11.4 million for the three months ended December 31, 2021. The decrease in loss was primarily due to gains associated
with our investments in marketable and non-marketable equity securities, which were a gain of $8.4 million for the three
months ended December 31, 2022 compared to a loss of $4.4 million for the three months ended December 31, 2021. The
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gain in investments for the three months ended December 31, 2022 is primarily attributable to observable price
adjustments on non-marketable equity securities. We recorded higher losses attributable to equity method investments for
the three months ended December 31, 2022 of $2.8 million compared to $1.9 million for the three months ended December
31, 2021. Additionally, interest expense, net, increased to $10.3 million for the three months ended December 31, 2022
compared to $5.9 million for the three months ended December 31, 2021 due to higher debt levels associated with the
acquisition of MEDIFOX DAN, which was funded by our Revolving Credit Agreement.
Total other income (loss), net for the six months ended December 31, 2022 was a loss of $20.4 million compared to a loss
of $14.6 million for the six months ended December 31, 2021. Interest expense, net, increased to $17.5 million for the six
months ended December 31, 2022 compared to $11.3 million for the six months ended December 31, 2021 due to higher
debt levels associated with the acquisition of MEDIFOX DAN, which was funded by our Revolving Credit Agreement. In
addition, we recorded higher losses attributable to equity method investments for the six months ended December 31, 2022
of $4.9 million compared to $3.3 million for the six months ended December 31, 2021. These losses were partially offset
by gains associated with our investments in marketable and non-marketable equity securities, which were a gain of $5.1
million for the six months ended December 31, 2022 compared to a gain of $1.2 million for the six months ended
December 31, 2021.
Income Taxes
Our effective income tax rate for the three and six months ended December 31, 2022 was 17.8% and 18.7% as compared to
15.0% and 18.3% for the three and six months ended December 31, 2021. Our effective rate of 17.8% for the three months
ended December 31, 2022 differs from the statutory rate of 21.0% primarily due to research credits, foreign operations and
windfall tax benefits related to the vesting or settlement of employee share-based awards. The increase in our effective tax
rate for the three and six months ended December 31, 2022 was primarily due to a reduction in the windfall tax benefits
related to the vesting or settlement of employee share-based awards.
Our Singapore operations operate under certain tax holidays and tax incentive programs that will expire in whole or in part
at various dates through June 30, 2030. As a result of the U.S. Tax Cuts and Jobs Act of 2017, we treated all non-U.S.
historical earnings as taxable during the year ended June 30, 2018. Therefore, future repatriation of cash held by our non-
U.S. subsidiaries will generally not be subject to U.S. federal tax, if repatriated.
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.
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.
Net Income and Earnings per Share

As a result of the factors above, our net income for the three months ended December 31, 2022 was $224.9 million
compared to $201.8 million for the three months ended December 31, 2021, an increase of $23.2 million, or 11%. Our net
income for the six months ended December 31, 2022 was $435.4 million compared to $405.4 million for the six months
ended December 31, 2021, an increase of $30.0 million, or 7%.
Our diluted earnings per share for the three months ended December 31, 2022 was $1.53 per diluted share compared to
$1.37 for the three months ended December 31, 2021, an increase of 12%. Our diluted earnings per share for the six
months ended December 31, 2022 was $2.95 per diluted share compared to $2.76 for the six months ended December 31,
2021, an increase of 7%.
Summary of Non-GAAP Financial Measures

In addition to financial information prepared in accordance with GAAP, our management uses certain non-GAAP financial
measures, such as non-GAAP revenue, non-GAAP cost of sales, non-GAAP gross profit, non-GAAP gross margin, non-
GAAP income from operations, non-GAAP net income, and non-GAAP diluted earnings per share, in evaluating the
performance of our business. We believe that these non-GAAP financial measures, when reviewed in conjunction with
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GAAP financial measures, can provide investors better insight when evaluating our performance from core operations and
can provide more consistent financial reporting across periods. For these reasons, we use non-GAAP information internally
in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods.
These non-GAAP financial measures should be considered in addition to, and not superior to or as a substitute for, GAAP
financial measures. We strongly encourage investors and shareholders to review our financial statements and publicly-filed
reports in their entirety and not to rely on any single financial measure. Non-GAAP financial measures as presented herein
may not be comparable to similarly titled measures used by other companies.
The measure “non-GAAP cost of sales” is equal to GAAP cost of sales less amortization of acquired intangible assets
relating to cost of sales. The measure “non-GAAP gross profit” is the difference between GAAP net revenue and non-
GAAP cost of sales, and “non-GAAP gross margin” is the ratio of non-GAAP gross profit to GAAP net revenue.
These non-GAAP measures are reconciled to their most directly comparable GAAP financial measures below (in
thousands, except percentages):

2022 2021 2022 2021
GAAP Net revenue $ 1,033,744 $ 894,874 $ 1,984,038 $ 1,798,890
GAAP Cost of sales $ 454,029 $ 390,556 $ 863,514 $ 788,282

Less: Amortization of acquired intangibles (7,305) (11,231) (13,680) (22,289)
Non-GAAP cost of sales $ 446,724 $ 379,325 $ 849,834 $ 765,993
GAAP gross profit $ 579,715 $ 504,318 $ 1,120,524 $ 1,010,608

GAAP gross margin 56.1 % 56.4 % 56.5 % 56.2 %
Non-GAAP gross profit $ 587,020 $ 515,549 $ 1,134,204 $ 1,032,897
Non-GAAP gross margin 56.8 % 57.6 % 57.2 % 57.4 %
The measure “non-GAAP income from operations” is equal to GAAP income from operations once adjusted for
amortization of acquired intangibles and acquisition-related expenses. Non-GAAP income from operations is reconciled
with GAAP income from operations below (in thousands):

2022 2021 2022 2021
GAAP income from operations $ 280,194 $ 248,711 $ 555,932 $ 510,624
Amortization of acquired intangibles - cost of sales 7,305 11,231 13,680 22,289
Amortization of acquired intangibles - operating expenses 9,563 7,738 17,513 15,445
Acquisition-related expenses 8,412 — 9,157 —
Non-GAAP income from operations $ 305,474 $ 267,680 $ 596,282 $ 548,358
The measure “non-GAAP net income” is equal to GAAP net income once adjusted for amortization of acquired intangibles
(net of tax), acquisition related expenses (net of tax) and reserve for disputed tax positions. The measure “non-GAAP
diluted earnings per share” is the ratio of non-GAAP net income to diluted shares outstanding. These non-GAAP measures
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are reconciled to their most directly comparable GAAP financial measures below (in thousands, except for per share
amounts):

2022 2021 2022 2021
GAAP net income $ 224,914 $ 201,751 $ 435,392 $ 405,364
Amortization of acquired intangibles - cost of sales, net of tax 5,494 8,564 10,329 16,999
Amortization of acquired intangibles - operating expenses, net of 7,192 5,901 13,222 11,780
tax
Acquisition related expenses, net of tax 6,782 — 7,527 —
Reserve for disputed tax positions — — — 4,111
Non-GAAP net income $ 244,382 $ 216,216 $ 466,470 $ 438,254
Diluted shares outstanding 147,405 147,040 147,367 147,044
GAAP diluted earnings per share $ 1.53 $ 1.37 $ 2.95 $ 2.76
Non-GAAP diluted earnings per share $ 1.66 $ 1.47 $ 3.17 $ 2.98
Liquidity and Capital Resources

Our principal sources of liquidity are our existing cash and cash equivalents, cash generated from operations and access to
our revolving credit facility. Our primary uses of cash have been for research and development activities, selling and
marketing activities, capital expenditures, strategic acquisitions and investments, dividend payments and repayment of debt
obligations. We expect that cash provided by operating activities may fluctuate in future periods as a result of several
factors, including fluctuations in our operating results, which include impacts from supply chain disruptions, working
capital requirements and capital deployment decisions.
Our future capital requirements will depend on many factors including our growth rate in net revenue, third-party
reimbursement of our products for our customers, the timing and extent of spending to support research development
efforts, the expansion of selling, general and administrative activities, the timing of introductions of new products, and the
expenditures associated with possible future acquisitions, investments or other business combination transactions. As we
assess inorganic growth strategies, we may need to supplement our internally generated cash flow with outside sources. If
we are required to access the debt market, we believe that we will be able to secure reasonable borrowing rates. As part of
our liquidity strategy, we will continue to monitor our current level of earnings and cash flow generation as well as our
ability to access the market considering those earning levels.
As of December 31, 2022 and June 30, 2022, we had cash and cash equivalents of $253.2 million and $273.7 million,
respectively. Our cash and cash equivalents held within the United States at December 31, 2022 and June 30, 2022 were
$72.6 million and $70.0 million, respectively. Our remaining cash and cash equivalent balances at December 31, 2022 and
June 30, 2022, were $180.6 million and $203.7 million, respectively. Our cash and cash equivalent balances are held at
highly rated financial institutions.
As of December 31, 2022, we had $390.0 million available for draw down under the revolver credit facility and a
combined total of $643.2 million in cash and available liquidity under the revolving credit facility.
As a result of the U.S. Tax Act, we treated all non-U.S. historical earnings as taxable, which resulted in additional tax
expense of $126.9 million which was payable over the proceeding eight years. Therefore, future repatriation of cash held
by our non-U.S. subsidiaries will generally not be subject to U.S. federal tax if repatriated.
We believe that our current sources of liquidity will be sufficient to fund our operations, including expected capital
expenditures, for the next 12 months and beyond.
Revolving Credit Agreement, Term Credit Agreement and Senior Notes
On June 29, 2022, we entered into a second amended and restated credit agreement (as amended from time to time, the
“Revolving Credit Agreement”). The Revolving Credit Agreement, among other things, provided a senior unsecured
revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an
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additional amount equal to the greater of $1,000.0 million and 1.00 times the EBITDA for the trailing twelve-month
measurement period. Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the
Syndicated Facility Agreement (the “Term Credit Agreement”). The Term Credit Agreement, among other things, provides
ResMed Limited a senior unsecured term credit facility of $195.0 million. The Revolving Credit Agreement and Term
Credit Agreement each terminate on June 29, 2027, when all unpaid principal and interest under the loans must be repaid.
As of December 31, 2022, we had $390.0 million available for draw down under the revolving credit facility.
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 (“Senior Notes”).
On December 31, 2022, there was a total of $1,805.0 million outstanding under the Revolving Credit Agreement, Term
Credit Agreement and Senior Notes. We expect to satisfy all of our liquidity and long-term debt requirements through a
combination of cash on hand, cash generated from operations and debt facilities.
Cash Flow Summary
The following table summarizes our cash flow activity (in thousands):
Six Months Ended

December 31,
2022 2021
Net cash provided by operating activities $ 173,298 $ 154,222
Net cash used in investing activities (1,085,218) (125,182)
Net cash (used in) / provided by financing activities 891,022 (125,004)
Effect of exchange rate changes on cash 387 (4,838)
Net decrease in cash and cash equivalents $ (20,511) $ (100,802)
Operating Activities
Cash provided by operating activities was $173.3 million for the six months ended December 31, 2022, compared to cash
provided of $154.2 million for the six months ended December 31, 2021. The $19.1 million increase in cash flow from
operations was primarily due to the payment of our tax settlement with the ATO of $284.8 million during the six months
ended December 31, 2021, partially offset by greater purchases of inventory to secure adequate components for increasing
sales demand and other net changes in working capital balances during the six months ended December 31, 2022 compared
to the six months ended December 31, 2021.
Investing Activities
Cash used in investing activities was $1,085.2 million for the six months ended December 31, 2022, compared to cash used
of $125.2 million for the six months ended December 31, 2021. The $960.0 million decrease in cash flow from investing
activities was primarily due to cash used to acquire MEDIFOX DAN.
Financing Activities
Cash provided by financing activities was $891.0 million for the six months ended December 31, 2022, compared to cash
used of $125.0 million for the six months ended December 31, 2021. The $1,016.0 million increase in cash flow from
financing activities was primarily due to borrowing activity under our Revolving Credit Agreement in order to finance our
acquisition of MEDIFOX DAN.
Dividends
During the three months ended December 31, 2022, we paid cash dividends of $0.44 per common share totaling $64.5
million. On January 26, 2023, our board of directors declared a cash dividend of $0.44 per common share, to be paid on
March 16, 2023, to shareholders of record as of the close of business on February 9, 2023. Future dividends are subject to
approval by our board of directors.
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Common Stock
Since the inception of our share repurchase programs and through December 31, 2022, we have repurchased a total of 41.8
million shares for an aggregate of $1.6 billion. We have temporarily suspended our share repurchase program due to recent
acquisitions and as a response to the COVID-19 pandemic. Accordingly, we did not repurchase any shares during the three
months ended December 31, 2022 and 2021. Shares that are repurchased are classified as treasury stock pending future use
and reduce the number of shares of common stock outstanding used in calculating earnings (loss) per share. There is no
expiration date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the
discretion of our board of directors. At December 31, 2022, 12.9 million additional shares can be repurchased under the
approved share repurchase program.
Critical Accounting Principles and Estimates

The preparation of financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that
affect our reported amounts of assets and liabilities, revenues and expenses and related disclosures of contingent assets and
liabilities. On an ongoing basis we evaluate our estimates, including those related to allowance for doubtful accounts,
inventory reserves, warranty obligations, goodwill, potentially impaired assets, intangible assets, income taxes and
contingencies.
We state these accounting policies in the notes to the financial statements and at relevant sections in this discussion and
analysis. The estimates are based on the information that is currently available to us and on various other assumptions that
we believe to be reasonable under the circumstances. Actual results could vary from those estimates under different
assumptions or conditions.
For a full discussion of our critical accounting policies, see our Annual Report on Form 10-K for the year ended June 30,
2022.
In addition to the critical accounting policies and estimates previously disclosed in our Form 10-K for the fiscal year ended
June 30, 2022, due to recent transactions and events, we also consider the following to be part of our critical accounting
policies and estimates due to the high degree of judgment and complexity in its application:
Business Combinations. The MEDIFOX DAN acquisition was accounted for using the acquisition method of accounting,
or acquisition accounting, in accordance with ASC Topic 805, Business Combinations. The acquisition method of
accounting involved the allocation of the purchase price to the estimated fair values of the assets acquired and liabilities
assumed. This allocation process involves the use of estimates and assumptions made in connection with determining the
fair value of assets acquired and liabilities assumed including cash flows expected to be derived from the use of the asset,
the timing of such cash flows, the remaining useful life of assets and applicable discount rates. Acquisition accounting
allows up to one year to obtain the information necessary to finalize the fair value of all assets acquired and liabilities
assumed on the November 21, 2022 acquisition date. As of January 26, 2023, we have recorded a preliminary allocation of
consideration to net tangible and intangible assets acquired, which is subject to revision as we obtain additional information
necessary to complete the fair value studies and acquisition accounting.
In the event that actual results vary from the estimates or assumptions used in the valuation or allocation process, we may
be required to record an impairment charge or an increase in depreciation or amortization in future periods, or both. Refer
to Note 12, Business Combinations, to the accompanying condensed consolidated financial statements for additional
information about accounting for the MEDIFOX DAN acquisition.
Recently Issued Accounting Pronouncements

See note 1 to the unaudited condensed consolidated financial statements for a description of recently issued accounting
pronouncements, including the expected dates of adoption and estimated effects on our results of operations, financial
positions and cash flows.
Contractual Obligations and Commitments

Other than for purchase obligations, debt, interest on debt and MEDIFOX DAN acquisition consideration, there have been
no material changes outside the ordinary course of business in our outstanding contractual obligations from those disclosed
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within “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report
on Form 10-K for the fiscal year ended June 30, 2022.
Details of our purchase obligations, debt and associated interest as of December 31, 2022 were as follows:
Payments Due by December 31,

Total 2023 2024 2025 2026 2027 Thereafter
Purchase obligations $ 1,682,235 $ 1,445,813 $ 222,034 $ 10,857 $ 326 $ 1,367 $ 1,838
Debt 1,805,000 10,000 10,000 10,000 260,000 1,265,000 250,000
Interest on debt 275,630 59,828 59,557 59,285 55,639 27,665 13,656
MEDIFOX DAN acquisition consideration (1) — — — — — — —
Total $ 3,762,865 $ 1,515,641 $ 291,591 $ 80,142 $ 315,965 $ 1,294,032 $ 265,494
(1) Refer to Note 12, Business Combinations, to the accompanying condensed consolidated financial statements for additional information about
our acquisition of MEDIFOX DAN, which completed on November 21, 2022.
Off-Balance Sheet Arrangements

As of December 31, 2022, we are not involved in any significant off-balance sheet arrangements, as defined in Item
303(a)(4)(ii) of Regulation S-K promulgated by the SEC.
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Quantitative and Qualitative Disclosures About Market Risk
Foreign Currency Market Risk

Our reporting currency is the U.S. dollar, although the financial statements of our non-U.S. subsidiaries are maintained in
their respective local currencies. We transact business in various foreign currencies, including a number of major European
currencies as well as the Australian and Singapore dollars. We have significant foreign currency exposure through our
Australian and Singapore manufacturing activities and our international sales operations.
Net Investment and Fair Value Hedging
On November 17, 2022, we executed foreign cross-currency swaps as net investment hedges and fair value hedges in
designated hedging relationships with either the foreign denominated net asset balances or the foreign denominated
intercompany loan as the hedged items. All derivatives are recorded at fair value as either an asset or liability. Cash flows
associated with derivative instruments are presented in the same category on the consolidated statements of cash flows as
the hedged item.
The purpose of the cross-currency swaps for the fair value hedge is to mitigate foreign currency risk associated with
changes in spot rates on foreign denominated intercompany debt between USD and EUR. For these hedges, we excluded
certain components from the assessment of hedge effectiveness that are not related to spot rates. For fair value hedges that
qualify and are designated for hedge accounting, the change in fair value of the derivative is recorded in the same line item
as the hedged item, Other, net, in the condensed consolidated statement of operations. The initial fair value of hedge
components excluded from the assessment of effectiveness is recognized in the statement of operations under a systematic
and rational method over the life of the hedging instrument and is presented in interest (expense) income, net. Any
difference between the change in the fair value of the hedge components excluded from the assessment of effectiveness and
the amounts recognized in earnings is recorded as a component of other comprehensive income.
The purpose of the cross-currency swaps for the net investment hedge is to mitigate foreign currency risk associated with
changes in spot rates on the net asset balances of our foreign functional subsidiaries. For net investment hedges that qualify
and are designated for hedge accounting, the change in fair value of the derivative is recorded in cumulative translation
adjustment within other comprehensive loss and reclassified into earnings when the hedged net investment is either sold or
substantially liquidated. The initial fair value of components excluded from the assessment of hedge effectiveness will be
recognized in interest (expense) income, net.
The notional value of outstanding foreign cross-currency swaps was $1,028.8 million at December 31, 2022. These
contracts mature at various dates prior to December 31, 2029.
Non-Designated Hedges
We transact business in various foreign currencies, including a number of major European currencies as well as the
Australian and Singapore dollars. We have foreign currency exposure through both our Australian and Singapore
manufacturing activities, and international sales operations. We have established a foreign currency hedging program using
purchased foreign currency call options, collars and forward contracts to hedge foreign-currency-denominated financial
assets, liabilities and manufacturing cash flows. The terms of such foreign currency hedging contracts generally do not
exceed three years. The purpose of this hedging program is to economically manage the financial impact of foreign
currency exposures denominated mainly in Euros, and Australian and Singapore dollars. Under this program, increases or
decreases in our foreign currency denominated financial assets, liabilities, and firm commitments are partially offset by
gains and losses on the hedging instruments. We do not designate these foreign currency contracts as hedges. All
movements in the fair value of the foreign currency instruments are recorded within other, net in our condensed
consolidated statements of income.
The notional value of the outstanding non-designated hedges was $976.2 million and $602.0 million at December 31, 2022
and June 30, 2022, respectively. These contracts mature at various dates prior to June 30, 2024.
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Fair Values of Derivative Instruments

The table below provides information (in U.S. dollars) on our foreign currency denominated operating assets and liabilities
and after considering our foreign currency hedging activities as of December 31, 2022 (in thousands):
U.S. Canadian Chinese

Dollar Euro Dollar Yuan
(USD) (EUR) (CAD) (CNY)
AUD Functional:
Net Assets/(Liabilities) 199,827 (84,420) — 17,308
Foreign Currency Hedges (210,000) 75,126 — (11,579)
Net Total (10,173) (9,294) — 5,729
USD Functional:
Net Assets/(Liabilities) — 300,505 31,768 —
Foreign Currency Hedges — (300,505) (18,464) —
Net Total — — 13,304 —
SGD Functional:
Net Assets/(Liabilities) 522,056 57,915 — 1,235
Foreign Currency Hedges (500,000) (59,028) — —
Net Total 22,056 (1,113) — 1,235
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The table below provides information about our material foreign currency derivative financial instruments and presents the
information in U.S. dollar equivalents. The table summarizes information on instruments and transactions that are sensitive
to foreign currency exchange rates, including foreign currency call options, collars, forward contracts and cross-currency
swaps held at December 31, 2022. The table presents the notional amounts and weighted average exchange rates by
contractual maturity dates for our foreign currency derivative financial instruments, including the forward contracts used to
hedge our foreign currency denominated assets and liabilities. These notional amounts generally are used to calculate
payments to be exchanged under the contracts (in thousands, except exchange rates).
Fair Value Assets / (Liabilities)

Total 2022 2022
AUD/USD
Contract amount 210,000 2,216 (190)
Ave. contractual exchange rate AUD 1 = USD 0.6756
AUD/Euro
Contract amount 128,788 (858) (413)
Ave. contractual exchange rate AUD 1 = EUR 0.6821
SGD/Euro
Contract amount 107,323 (1,464) 71
Ave. contractual exchange rate SGD 1 = Euro 0.7177
SGD/USD
Contract amount 500,000 10,206 (1,172)
Ave. contractual exchange rate SGD 1 = USD 0.7318
AUD/CNY
Contract amount 11,579 162 (37)
Ave. contractual exchange rate AUD 1 = CNY 4.6449
USD/EUR
Contract amount 1,028,796 (36,578) —
Ave. contractual exchange rate USD 1 = EUR 1.0406
USD/CAD
Contract amount 18,464 913 (46)
Ave. contractual exchange rate CAD 1 = USD 0.7751
Interest Rate Risk

We are exposed to risk associated with changes in interest rates affecting the return on our cash and cash equivalents and
debt. At December 31, 2022, we held cash and cash equivalents of $253.2 million, principally comprised of bank term
deposits and at-call accounts, and are invested at both short-term fixed interest rates and variable interest rates. At
December 31, 2022, there was $1,305.0 million outstanding under the Revolving Credit Agreement and Term Credit
Agreement, which are subject to variable interest rates. A hypothetical 10% change in interest rates during the three months
ended December 31, 2022, would not have had a material impact on pretax income. We have no interest rate hedging
agreements.
Inflation
Inflationary factors such as increases in the cost of our products, freight, overhead costs or wage rates may adversely affect
our operating results. Sustained inflationary pressures in the future may have an adverse effect on our ability to maintain
current levels of gross margin and operating expenses as a percentage of net revenue if we are unable to offset such higher
costs through price increases.
38
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Item 4 Controls and Procedures

We maintain disclosure controls and procedures that are designed to provide reasonable assurance that information
required to be disclosed in our reports made pursuant to the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms and
that information is accumulated and communicated to our management, including our chief executive officer and chief
financial officer, as appropriate, to allow timely decisions regarding required disclosure. In designing and evaluating the
disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed
and operated, can provide only reasonable assurance of achieving the desired control objectives, and in reaching a
reasonable level of assurance management necessarily was required to apply its judgment in evaluating the cost benefit
relationship of possible controls and procedures.
As required by Rule 13a-15(b) of the Exchange Act, we carried out an evaluation, under the supervision and with the
participation of our management, including our chief executive officer and chief financial officer, of the effectiveness of
the design and operation of our disclosure controls and procedures as of the end of the period covered by this report. Based
on the foregoing, our chief executive officer and chief financial officer concluded that our disclosure controls and
procedures were effective at the reasonable assurance level as of December 31, 2022.
There has been no change in our internal control over financial reporting during our most recent fiscal quarter that has
materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
39
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PART II – OTHER INFORMATION Item 1-6
PART II. OTHER INFORMATION
Item 1 Legal Proceedings

We are involved in various legal proceedings, claims, investigations and litigation that arise in the ordinary course of our
business. We investigate these matters as they arise, and accrue estimates for resolution of legal and other contingencies in
accordance with Accounting Standard Codification Topic 450, “Contingencies”. See note 10 to the unaudited condensed
consolidated financial statements included in this Quarterly Report on Form 10-Q.
Litigation is inherently uncertain. Accordingly, we cannot predict with certainty the outcome of these matters. But we do
not expect the outcome of these matters to have a material adverse effect on our consolidated financial statements when
taken as a whole.
Item 1A Risk Factors

The discussion of our business and operations should be read together with the risk factors and contained in our annual
report on Form 10-K for the fiscal year ended June 30, 2022, which was filed with the SEC and describe various material
risks and uncertainties to which we are or may become subject. As of December 31, 2022, there have been no further
material changes to such risk factors.
Item 2 Unregistered Sales of Equity Securities and Use of Proceeds

Purchases of equity securities. On February 21, 2014, our board of directors approved our current share repurchase
program, authorizing us to acquire up to an aggregate of 20.0 million shares of our common stock. The program allows us
to repurchase shares of our common stock from time to time for cash in the open market, or in negotiated or block
transactions, as market and business conditions warrant and subject to applicable legal requirements. There is no expiration
date for this program, and the program may be accelerated, suspended, delayed or discontinued at any time at the discretion
of our board of directors. All share repurchases after February 21, 2014 have been executed under this program.
We temporarily suspended our share repurchase program due to recent acquisitions and as a response to the COVID-19
pandemic. As a result, we did not repurchase any shares during the three months ended December 31, 2022. However,
there is no expiration date for this program, and we may, at any time, elect to resume the share repurchase program as the
circumstances allow. Since the inception of the share buyback programs, we have repurchased 41.8 million shares at a total
cost of $1.6 billion. At December 31, 2022, 12.9 million additional shares of common stock can be repurchased under the
approved share repurchase program.
Item 3 Defaults Upon Senior Securities

None
Item 4 Mine Safety Disclosures

None
Item 5 Other Information

None
40
Table of Contents
PART II – OTHER INFORMATION Item 1-6
Item 6 Exhibits
Exhibits (numbered in accordance with Item 601 of Regulation S-K)
3.1 First Restated Certificate of Incorporation of ResMed Inc., as amended. (Incorporated by reference to
Exhibit 3.1 to the Registrant’s Report on Form 10-Q for the quarter ended September 30, 2013)
3.2 Seventh Amended and Restated Bylaws of ResMed Inc., a Delaware Corporation (as Approved and
Adopted by Board Resolution September 10, 2021) (Incorporated by reference to Exhibit 3.1 to the
Registrant’s Report on Form 8-K filed on September 13, 2021)
31.1 Certification of Chief Executive Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2 Certification of Chief Financial Officer Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
32* Certification of Chief Executive Officer and Chief Financial Officer Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002
101 The following financial statements from ResMed Inc.’s Quarterly Report on Form 10-Q for the quarter
ended December 31, 2022, filed on January 26, 2023, 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).
* In accordance with Item 601(b)(32)(ii) of Regulation S-K and SEC Release No. 33-8238 and 34-47986, Final Rule: Management’s Reports on
Internal Control Over Financial Reporting and Certification of Disclosure in Exchange Act Periodic Reports, the certifications furnished in
Exhibit 32 hereto are deemed to accompany this Form 10-Q and will not be deemed “filed” for purposes of Section 18 of the Exchange Act.
Such certifications will not be deemed to be incorporated by reference into any filings under the Securities Act or the Exchange Act, except to
the extent that the registrant specifically incorporates it by reference.
41
Table of Contents
PART II – OTHER INFORMATION Signatures
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned, thereunto duly authorized.
January 26, 2023
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)
42

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

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

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

For the transition period from _______to _______

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

Large Accelerated Filer x Accelerated Filer o

Part I Financial Information 3

Item 1 Financial Statements 3

Condensed Consolidated Balance Sheets (Unaudited) 3

Condensed Consolidated Statements of Operations (Unaudited) 4

Condensed Consolidated Statements of Comprehensive Income (Unaudited) 5

Condensed Consolidated Statements of Changes in Equity (Unaudited) 6

Condensed Consolidated Statements of Cash Flows (Unaudited) 8

Notes to the Condensed Consolidated Financial Statements (Unaudited) 9

Item 3 Quantitative and Qualitative Disclosures About Market Risk 36

Item 4 Controls and Procedures 39

Part II Other Information 40

Item 1 Legal Proceedings 40

Item 1A Risk Factors 40

Item 2 Unregistered Sales of Equity Securities and Use of Proceeds 40

Item 3 Defaults Upon Senior Securities 40

Item 4 Mine Safety Disclosures 40

Item 5 Other Information 40

PART I – FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

RESMED INC. AND SUBSIDIARIES

Three Months Ended Six Months Ended

Selling, general, and administrative 211,672 185,362 404,860 362,082

PART I – FINANCIAL INFORMATION Item 1

RESMED INC. AND SUBSIDIARIES

Three Months Ended Six Months Ended

PART I – FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

Six Months Ended

PART I – FINANCIAL INFORMATION Item 1

RESMED INC. AND SUBSIDIARIES

(1) Summary of Significant Accounting Policies

PART I – FINANCIAL INFORMATION Item 1

Three Months Ended Six Months Ended

Software as a Service 116,763 99,034 222,614 196,551

Performance obligations and contract balances

December 31, June 30,

Transaction price determination

PART I – FINANCIAL INFORMATION Item 1

PART I – FINANCIAL INFORMATION Item 1

Three Months Ended Six Months Ended

Depreciation and amortization by segment

Net operating profit by segment

PART I – FINANCIAL INFORMATION Item 1

December 31, June 30,

December 31, June 30,

December 31, June 30,

December 31, June 30,

Six Months Ended December 31, 2022

PART I – FINANCIAL INFORMATION Item 1

December 31, June 30,

Six Months Ended December 31, 2022

For the transition period from _to _