ResMed Inc. Files 2024 10-K

TL;DR

ResMed's 2024 10-K is in! Check financials for FY ending June 30.

AI Summary

ResMed Inc. filed its 10-K for the fiscal year ending June 30, 2024, reporting on its financial performance and business operations. The company, headquartered in San Diego, CA, is a key player in the surgical and medical instruments sector. This filing provides a comprehensive overview of its fiscal health and strategic direction for investors and stakeholders.

Why It Matters

This 10-K filing provides crucial insights into ResMed's financial standing and operational performance for the fiscal year 2024, impacting investor decisions and market perception.

Risk Assessment

Risk Level: medium — The filing is a standard annual report and does not inherently indicate new or elevated risks.

Key Numbers

• FY 2024 — Fiscal Year (Reporting period for the 10-K)

Key Players & Entities

• RESMED INC (company) — Filer
• 20240630 (date) — Fiscal Year End
• 20240809 (date) — Filing Date
• 9001 SPECTRUM CENTER BLVD. (address) — Business Address
• SAN DIEGO (location) — City
• CA (location) — State
• 92123 (zip_code) — Zip Code
• 8587462400 (phone_number) — Business Phone

FAQ

Key Financial Figures

• $0.004 — ich registered Common Stock, par value $0.004 per share RMD New York Stock Exchange

Filing Documents

• rmd-20240630.htm (10-K) — 2420KB
• exhibit42-descriptionofres.htm (EX-4.2) — 21KB
• exhibit105-deferredcompens.htm (EX-10.5) — 232KB
• exhibit19-resmedinsidertra.htm (EX-19) — 173KB
• exhibit211-subsidiariesq4f.htm (EX-21.1) — 17KB
• exhibit231-auditorconsentq.htm (EX-23.1) — 3KB
• ex311-ceocertificationq4fy.htm (EX-31.1) — 10KB
• ex312-cfocertificationq4fy.htm (EX-31.2) — 10KB
• ex321-ceoandcfocertificati.htm (EX-32.1) — 9KB
• exhibit97-resmedclawbackpo.htm (EX-97) — 29KB
• image_01.jpg (GRAPHIC) — 98KB
• image_01a.jpg (GRAPHIC) — 0KB
• image_03.jpg (GRAPHIC) — 212KB
• image_0a.jpg (GRAPHIC) — 28KB
• image_1.jpg (GRAPHIC) — 8KB
• rmd-20240630_g1.jpg (GRAPHIC) — 93KB
• 0000943819-24-000013.txt ( ) — 12950KB
• rmd-20240630.xsd (EX-101.SCH) — 71KB
• rmd-20240630_cal.xml (EX-101.CAL) — 125KB
• rmd-20240630_def.xml (EX-101.DEF) — 357KB
• rmd-20240630_lab.xml (EX-101.LAB) — 969KB
• rmd-20240630_pre.xml (EX-101.PRE) — 678KB
• rmd-20240630_htm.xml (XML) — 1687KB

Business

Business 1 Item 1A

Risk Factors

Risk Factors 22 Item 1B Unresolved Staff Comments 43

Cybersecurity

Item 1C Cybersecurity 43 Item 2

Properties

Properties 45 Item 3

Legal Proceedings

Legal Proceedings 45 Item 4 Mine Safety Disclosures 45 Part II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46 Item 6

Selected Financial Data

Selected Financial Data 47 Item 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 49 Item 7A

Quantitative and Qualitative Disclosures About Market and Business Risks

Quantitative and Qualitative Disclosures About Market and Business Risks 61 Item 8 Consolidated Financial Statements and Supplementary Data 64 Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 99 Item 9A

Controls and Procedures

Controls and Procedures 99 Item 9B Other Information 102 Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 102 Part III Item 10 Directors, Executive Officers and Corporate Governance 103 Item 11

Executive Compensation

Executive Compensation 103 Item 12

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 103 Item 13 Certain Relationships and Related Transactions, and Director Independence 103 Item 14 Principal Accountant Fees and Services 103 Part IV Item 15 Exhibits and Consolidated Financial Statement Schedules 104 Item 16 Form 10-K Summary 105

Signatures

Signatures 106 As used in this 10-K, the terms "we", "us", "our" and "the Company" refer to ResMed Inc., a Delaware corporation, and its subsidiaries, on a consolidated basis, unless otherwise stated. Table of Contents

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES PART I Cautionary 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, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions 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 Part I, Item 1A "Risk Factors" 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 dat

BUSINESS

ITEM 1 BUSINESS General We are a global leader in digital health and cloud-connected medical devices. We design innovative solutions to treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, chronic obstructive pulmonary disease, or COPD, and other chronic diseases. Our comprehensive out-of-hospital, or OOH, software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, our products improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems. Following our formation in 1989, we commercialized a continuous positive airway pressure, or CPAP, treatment for obstructive sleep apnea, or OSA, which was the first successful non-invasive treatment for OSA. CPAP systems deliver pressurized air, typically through a mask, to prevent collapse of the upper airway during sleep. Since the development of CPAP, we have expanded our business by developing or acquiring a number of innovative products and solutions for a broad 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, and dental devices. In addition, we are a leading provider of cloud-based health applications, software and devices designed to provide connected care, enabling clinicians to manage more patients efficiently and effectively, as well as enabling and encouraging patients' long-term adherence to and satisfaction with their therapy. We also provide management software to agencies providing OOH care, including but not limited to home medical equipment, or HME, home health and hospice, skilled nursing, life plan community, senior living, outpat

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES We employ over 9,980 people and sell our products in over 140 countries through a combination of wholly owned subsidiaries and independent distributors. Our website address is www.resmed.com. We make our periodic reports, together with any amendments, available on our investor relations website (https://investor.resmed.com), free of charge, as soon as reasonably practicable after we electronically file or furnish the reports with the Securities and Exchange Commission, or SEC. The SEC maintains an internet site, www.sec.gov, which contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. We also make available on our investor relations website, public financial information for which a report is not required to be filed with or furnished to the SEC. Information contained on our website or in reports, other than those filed with or furnished to the SEC, is not part of or incorporated into this report. Corporate History Our Australian subsidiary, ResMed Holdings Pty Limited, was originally organized in 1989 by Dr. Peter Farrell to acquire from Baxter Center for Medical Research Pty Limited, or Baxter, the rights to certain technology relating to CPAP treatment as well as Baxter's existing CPAP device business. Baxter acquired the rights to the technology in 1987 and sold CPAP devices in Australia from 1988 until our acquisition of the business. ResMed Inc., a Delaware corporation, was formed in March 1994 as the ultimate holding company for our operating subsidiaries. In June 1995, we completed an initial public offering of common stock and our common stock began trading on the NASDAQ National Market. In September 1999, we transferred our principal listing to the New York Stock Exchange, or NYSE, trading under the ticker symbol "RMD". In November 1999, we established a secondary listing of our common stock via Chess Depositary Instruments, or CDIs,

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES The upper airway has no rigid support and is held open by active contraction of upper airway muscles. Normally, during REM sleep and deeper levels of non-REM sleep, upper airway muscles relax and the airway narrows. Individuals with narrow upper airways or poor muscle tone are prone to temporary collapses of the upper airway during sleep, called apneas, and to near closures of the upper airway called hypopneas. These breathing events result in a lowering of blood oxygen concentration, causing the central nervous system to react to the lack of oxygen or increased carbon dioxide and signaling the body to respond. Typically, the individual subconsciously arouses from sleep, causing the throat muscles to contract, opening the airway. After a few gasping breaths, blood oxygen levels increase and the individual can resume a deeper sleep until the cycle repeats itself. Sufferers of OSA typically experience ten or more such cycles per hour. While these awakenings greatly impair the quality of sleep, the individual is not normally aware of these disruptions. OSA has been recognized as a cause of hypertension and a significant comorbidity for heart disease, stroke, and type 2 diabetes. A long-term epidemiology study published in 2013 estimated that 26% of adults age 30-70 have some form of obstructive sleep apnea. Another study published in Lancet Respiratory Medicine in 2019 estimated that mild to severe OSA impacts more than 936 million people worldwide, including 54 million Americans. Of those impacted, it was estimated that more than 424 million would have moderate to severe sleep apnea. Despite the high prevalence of OSA, there is a general lack of awareness of OSA among both the medical community and the general public. It is estimated that less than 20% of those with OSA have been diagnosed or treated. Many healthcare professionals often do not diagnose OSA because they are unaware that such non-specific symptoms as excess

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES Before 1981, the primary treatment for OSA was a tracheotomy, a surgical procedure to create a hole in the patient's windpipe. Alternative surgical treatments have involved either uvulopalatopharyngoplasty, or UPPP, in which surgery is performed on the upper airway to remove excess tissue and streamline the shape of the airway or implant a device to add support to the soft palate. UPPP alone has a poor success rate; however, when performed in conjunction with multi-stage upper airway surgical procedures, a greater success rate has been claimed. These combined procedures, performed by highly specialized surgeons, are expensive and involve prolonged and often painful recovery periods. Consequently, surgical treatments are not considered first-line therapy for OSA. Other alternative treatments available today include nasal surgery, mandibular advancement surgery, dental appliances, palatal implants, somnoplasty, nasal devices, and electrical stimulation of the nerves or muscles. Alternative pharmaceutical therapy treatments expected to be indicated for OSA treatment are under development. A variety of devices are marketed for the treatment of OSA. Most are only partially effective. CPAP is a reliable treatment for all severities of OSA and is considered first-line therapy. Use of mandibular advancement devices is increasingly used as a second-line option in patients unable to use CPAP or those with mild OSA. These devices cause the mandible and tongue to be pulled forward and improve the dimensions of the upper airway. CPAP is a non-invasive means of treating OSA. CPAP was first used as a treatment for OSA in 1980 by Dr. Colin Sullivan, the past Chairman of our Medical Advisory Board, and was commercialized for treatment of OSA in the United States, or U.S., in the mid-1980s. During CPAP treatment, a patient sleeps with an interface connected to a small portable air device that delivers room air at a positive pressure. The

Item 1

PART I Item 1 RESMED INC. AND SUBSIDIARIES and have a decreased diffusion capacity. During sleep, chronic bronchitic patients display more severe hypoxemia. In general, the more hypoxic a COPD patient is during the day the more severe the hypoxemia experienced during sleep. Hypercapnia as a consequence of hypoventilation also occurs in COPD patients and is more pronounced in REM sleep. Some COPD patients may also suffer from comorbid OSA, a condition known as Overlap Syndrome. Home non-invasive ventilation has the potential to reduce healthcare costs associated with the management of patients with severe COPD by significantly increasing the time between hospital readmissions. Early research also suggests that home HFT may help improve clinical outcomes in hypoxemic COPD patients that frequently have exacerbations. Overlap Syndrome. In patients with COPD-OSA Overlap Syndrome, CPAP has been shown to provide benefits in relation to reducing mortality, decreasing hospitalizations and improving lung function and gas exchange. Non-invasive ventilation, or NIV, has been demonstrated to improve outcomes in patients with acute exacerbations of COPD through its ability to improve respiratory acidosis and decrease dyspnea and work of breathing. It may also increase survival rates and reduce length of hospital stays, as well as reducing complicating factors such as ventilator-associated pneumonia. In patients with stable COPD, the advantages of home NIV are less clear, but clinical studies have shown improvements in dyspnea scores and health-related quality-of-life measures and reductions in hospital readmissions and intensive care stays. Obesity Hypoventilation Syndrome. OHS is characterized by the combination of obesity, chronic alveolar hypoventilation leading to daytime hypercapnia and hypoxia and sleep apnea after the exclusion of other causes of alveolar hypoventilation. An estimated 90% of patients with OHS also have OSA. In patients with OHS, positive airway thera

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View this 10-K filing on SEC EDGAR