ResMed (RMD) 10-K risk factor changes: FY2023 vs FY2022

- Our business, financial condition and results of operations could continue to be harmed by the effects of [removed: the] [added: outbreaks of] COVID-19 [removed: pandemic] or similar public health crises.

- If we fail to [removed: attract,] [added: source,] develop and retain key employees our business may suffer.

- Actual or attempted breaches of security, unauthorized disclosure of information, [added: attacks such as] denial of [removed: service attacks] [added: service,] or the perception that personal and/or other sensitive or confidential information in our possession is not secure, could result in a material loss of business, substantial legal liability or significant harm to our reputation.

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

Our ability to compete successfully depends, in part, on our ability to develop, manufacture and market innovative new [added: products and enhance existing] products.

Current competitors, new entrants, academics, and others [removed: are trying to develop] [added: currently may be developing, or may develop,] new devices, alternative treatments or cures, and [added: targeted or indirect] pharmaceutical solutions to the conditions our products [removed: treat.][added: treat that could provide better features, clinical outcomes or economic value than those that we currently offer or subsequently develop.]

Many prospective customers have invested substantial personnel and financial resources to [added: create,] implement and integrate their current business management software into their operations and, therefore, may be reluctant or unwilling to change from their current [added: in-house] solution or provider to one of our platforms or products.

[removed: This] [added: Continuing] competition could increase pressure on us to reduce the selling prices of our products or could cause us to increase our spending on research and development and sales and marketing.

If we are unable to develop innovative new products, maintain competitive pricing, [added: enhance existing products,] and offer products that consumers perceive to be as good as those of our competitors, our sales and gross margins could decrease which would harm our business.

Our business, financial condition and results of operations could continue to be harmed by the effects of [removed: the] [added: outbreaks of] COVID-19 [removed: pandemic] or similar public health crises. We are subject to risks associated with public health threats, including [removed: the global] [added: outbreaks associated with] COVID-19 [removed: pandemic,] [added: and its variants,] which have had and may continue to have an adverse impact on certain aspects of our business.

[removed: The] [added: While most countries have removed or reduced the restrictions initially implemented in response to COVID-19, the] extent to which the COVID-19 pandemic [removed: and measures taken in response thereto] [added: or another public health crisis] impact our business, results of operations, and financial condition will depend on future developments which are highly uncertain and are difficult to predict.

These developments include, but are not limited to, future resurgences of the virus and its variants, actions taken to contain the virus or address its impact, [removed: and] the timing, distribution, and efficacy of vaccines and other [removed: treatments.][added: treatments, and the imposition of government lockdowns, quarantine and physical distancing requirements.]

[removed: The COVID-19 pandemic has continued to impact the] [added: Macroeconomic conditions have impacted our] global supply chain, primarily through constraints on raw materials and electronic components.

These constraints on raw materials and electronic components are also impacting companies outside of our direct industry, which [removed: is resulting] [added: has and continues to result] in a competitive supply environment causing higher costs, requiring us to commit to minimum purchase obligations as well as make upfront payments to our suppliers.

These disruptions have impacted and may continue to impact our ability to [added: produce and supply products in quantities necessary to]

[removed: produce and supply products in quantities necessary to] satisfy customer demand, which could negatively impact our results of operations.

Sales in combined Europe, Asia and other markets accounted for approximately [removed: 37%] [added: 36%] and [removed: 39%] [added: 37%] of our net revenues in the years ended June 30, [removed: 2022] [added: 2023] and June 30, [removed: 2021] [added: 2022,] respectively.

- the impact of public health epidemics/pandemics on the global [removed: economy, such as COVID-19 that has spread globally;][added: economy;]

While we are not presently aware of any direct impacts these restrictions have had on our suppliers’ supply chains, disruptions resulting from the conflict in Ukraine and the UFLPA may materially and negatively impact our suppliers’ ability to obtain [removed: a sufficient supply of raw materials necessary to meet the quantity and/or timing of our product demands.]

Although our sales into Russia and Ukraine did not constitute a material portion of our total revenue in [removed: 2022,] [added: fiscal year 2023,] further escalation of geopolitical tensions, or new geopolitical tensions, could have a broader impact that expands into other markets where we [added: do business, which could adversely affect our business and/or our supply chain, business partners or customers in the broader region.]

Any of the above factors may have a material adverse effect on our ability to increase or maintain our [removed: non-U.S. sales.][added: sales or otherwise have a material adverse impact on our business, financial condition, and results of operations.]

Our intellectual property may not protect our products, and/or our products may infringe on the intellectual property rights of third parties. We rely on a combination of [added: owned and licensed] patents, trade secrets and non-disclosure agreements to protect our intellectual property.

Additionally, there may be third-party patents, patent applications and other intellectual property [added: held by entities much larger than us, that are] relevant to our products and technology which are not known to us and that block or compete with our products.

If the outcome of any [removed: litigation or] [added: litigation,] proceeding [added: or claim] brought against us were adverse, we could be subject to significant liabilities to third-parties, could be required to obtain licenses from third-parties, could be forced to design around the patents at issue or could be required to cease sales of the affected products.

[removed: A] [added: In addition, a] license may not be available at all or on commercially viable terms, and we may not be able to redesign our products to avoid infringement.

Additionally, the laws regarding the enforceability of patents vary from country to country, and we cannot [removed: assure you] [added: provide assurance] that any patent issues we face will be uniformly resolved, or that local laws will provide us with consistent rights and benefits.

If we fail to [removed: attract,] [added: source,] develop and retain key employees our business may suffer. Our ability to compete effectively depends on our ability to [removed: attract] [added: source] and retain key employees, including people in senior management, sales, marketing, technology, and research and development positions.

Our ability to recruit and retain such talent will depend on a number of factors, including hiring practices of our competitors, compensation and benefits, [added: flexibility regarding virtual and hybrid] work [added: arrangements, work] location, work [removed: environment and] [added: environment,] industry economic [removed: conditions.][added: conditions, and corporate culture.]

Our leverage and debt service obligations could adversely affect our business. As of June 30, [removed: 2022,] [added: 2023,] our total consolidated debt was [removed: $0.8] [added: $1.4] billion and we may incur additional indebtedness in the [removed: future, including as a result of our pending acquisition of MEDIFOX DAN, which is expected to close during our fiscal year 2023.][added: future.]

In particular, a global semiconductor supply shortage [removed: is having] [added: has had and continues to have] wide-ranging effects across multiple industries, and it has impacted suppliers that incorporate semiconductors into the parts they supply to us.

High demand and shortages of supply have adversely affected and could materially adversely affect our ability to obtain sufficient quantities of semiconductors [added: and electronic components on commercially reasonable terms or at all.]

In addition, we [added: have and] may [added: continue to] be required to commit to greater purchase volumes and/or make prepayments to our suppliers.

[removed: Extended] [added: Purchase obligations, extended] lead [removed: times] [added: times,] and decreased availability of key components may also cause an adverse effect on our financial condition or results of operations.

In response to the global semiconductor supply shortage, we [removed: have recently] expanded our global offering of devices to include Card-to-Cloud (C2C) versions of our prior model AirSense 10 and AirCurve 10 offerings that do not incorporate a communications module.

We introduced C2C models to address the growing backlog of patients waiting for therapy with [removed: ResMed devices.][added: our devices during and after the COVID-19 pandemic.]

Additionally, [added: substantial] increases in product demand, including in response to a product recall by one of our competitors, Philips, have resulted and could continue to result in [removed: shipment delays,] higher costs for materials and components, and increased expenditures for freight and other expenses, which have and could continue to negatively impact our profit margins.

If supply constraints continue, our ability to meet [added: increased] demand and our corresponding ability to sell affected products may be materially reduced.

Actual or attempted breaches of security, unauthorized disclosure of information, [added: attacks such as] denial of [removed: service attacks] [added: service,] or the perception that personal and/or other sensitive or confidential information in our possession is not secure, could result in a material loss of business, substantial legal liability or significant harm to our reputation. Despite the implementation of security measures, our internal computer and information technology systems and those of our vendors and customers are vulnerable to attack and damage from computer viruses, malware, denial of service attacks, unauthorized access, or other harm, including from threat actors seeking to cause disruption to our business.

[removed: A material cyberattack or security incident could] cause interruptions in our operations and could result in a material disruption of our business operations, damage to our reputation, financial condition, results of operations, cash flows and prospects.

However, the techniques used in these attacks change frequently and may be difficult to detect for periods [added: of time and we may face difficulties in anticipating and implementing adequate preventative measures.]

- Global macroeconomic conditions, including inflation, supply chain disruptions, and fluctuations in foreign currency exchange rates, could continue to adversely affect our operations and profitability.

- We are subject to various risks relating to our compliance with fraud and abuse laws and transparency laws relating to our interactions with our customers, health care providers, and patients, which could subject us to government investigation, litigation, or other penalties to the extent our activities or relationships are found not to comply, and could result in changes in our business operations that could harm our ability to successfully market and sell our products and services.

- Environmental, social, and corporate governance (ESG) issues may have an adverse effect on our business, financial condition and results of operations and reputation.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

Conversely, the health care space is attractive to many companies, particularly new entrants interested in developing digital health models to compete with offerings of more established companies like us.

Additionally, one of our competitors, Philips, has an ongoing product recall.

We cannot predict the timing or nature of their substantial return to the market or the impact to our business, financial condition, and results of operations.

Numerous initiatives and reforms by legislators, regulators, and third-party payers to curb the rising cost of healthcare have catalyzed a consolidation of aggregate purchasing power within the markets in which we sell our products.

Global macroeconomic conditions, including inflation, supply chain disruptions, and fluctuations in foreign currency exchange rates, could continue to adversely affect our operations and profitability. The global decline in economic conditions, geopolitical instability, and other macroeconomic factors, including inflation, supply chain disruptions, interest rate and foreign currency rate fluctuations, and volatility in the capital markets could continue to negatively impact our business, financial condition, and results of operations.

The growth of our business and demand for our products are affected by changes in the health of the overall global economy.

Deterioration in the global economic environment may cause decreased demand for our products which could result in lower product sales, lower prices for our products, and reduced reimbursement rates by third-party payers, while increasing the cost of operating our business.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

Global economic conditions have also impacted foreign currency exchange rates relative to the U.S. dollar.

Although the majority of our net sales and cash generation have been made in the U.S., as our business in markets outside of the U.S. continues to increase, our exposure to foreign currency exchange risk related to our foreign sales and operations will increase.

Fluctuations in the rate of exchange between the U.S. dollar and foreign currencies, primarily the Australian Dollar, Singapore Dollar, Euro, Chinese Yuan, and Canadian Dollar, have had and could continue to have an adverse effect on our financial results, including our net sales, margins, gains and losses, as well as on the values of our assets and liabilities.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

a sufficient supply of raw materials necessary to meet the quantity and/or timing of our product demands.

We have in the past and may in the future be required to license patents and other intellectual property rights owned by other parties.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

If we become involved in any intellectual property litigation, we may be required to pay substantial damages, including but not limited to treble damages, attorneys’ fees and costs, for past infringement if it is ultimately determined that our products infringe a third party’s intellectual property rights.

Even if infringement claims against us are without merit, defending a lawsuit takes significant time, may be expensive and may divert management’s attention from other business matters.

Disruptions to our suppliers may limit our ability to manufacture our devices in a timely or cost-

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

effective manner, which could result in a significant reduction in sales and profitability.

Because C2C devices do not include communications capability they are not as appealing to our customers creating a risk that we will be forced to liquidate inventory of those devices as communications modules become available for our AirSense 10 and AirSense 11 devices.

Alternatively, the reintroduction of products by Philips could lead to reduced demand for our products.

A material cyberattack or security incident could

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

In addition, on July 26, 2023, the SEC issued a new proposed rule intended to enhance and standardize disclosures regarding cybersecurity risk management, strategy, governance and cybersecurity incident reporting, which will require us to develop additional policies and procedures to comply with these new rules and provide additional disclosure on our Annual Report on Form 10-K for the fiscal year ended June 30, 2024.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

We are limited under applicable fraud and abuse laws in the ways in which we market and sell to customers and patients.

We have from time to time found defects in our

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

In October 2022, the AHRQ concluded that randomized controlled clinical trials do not provide sufficient evidence that CPAP affects long-term clinically important outcomes.

We believe that the AHRQ methodology was too restrictive, that retrospective and prospective observational studies should have been included, that real world evidence should have been considered, and that CPAP therapy does have long-term positive effects on health outcomes.

To date, the AHRQ assessment has not impacted CMS or private payor reimbursement.

We are subject to various risks relating to our compliance with fraud and abuse laws and transparency laws relating to our interactions with our customers, health care providers, and patients, which could subject us to government investigation, litigation, or other penalties to the extent our activities or relationships are found not to comply, and could result in changes in our business operations that could harm our ability to successfully market and sell our products and services. We are subject to various risks relating to our compliance with fraud and abuse laws and transparency laws relating to our interactions with our customers, health care providers, and patients, which could subject us to government investigation, litigation, or other penalties to the extent our activities or relationships are found not to comply, and could result in changes in our business operations that could harm our ability to successfully market and sell our products and services We are subject to healthcare fraud and abuse regulation and enforcement by federal, state and foreign governments, which could significantly impact our business.

The U.S.

- Failure to comply with anti-kickback and fraud regulations could result in substantial penalties and changes in our business operations.

- Our results of operations may be materially affected by global economic conditions generally, including conditions in the financial markets.

Although there is still substantial uncertainty associated with the COVID-19 pandemic, we believe the global demand for ventilators and other respiratory support devices used to treat COVID-19 patients has largely been met.

In most markets, diagnostic pathways for sleep apnea treatment, including physician practices, HME distributors, and sleep clinics have largely recovered towards pre-pandemic levels.

Likewise, within our SaaS business we have observed stabilizing patient flow in out-of-hospital care settings impacted by COVID-19.

Further, we are being allocated certain components from our suppliers, particularly semiconductor chips, and we are thus being forced to allocate our outbound products to our customers.

Additionally, we have observed a reduction in both inbound and outbound transportation capacity as a result of port closures and delays associated with the pandemic, which is causing longer lead times in receiving raw materials into and distributing finished goods out of our manufacturing facilities, as well as increased freight costs.

Given the ongoing uncertainty regarding the duration and extent of the COVID-19 pandemic, we are uncertain as to the duration and extent of constraint on our supply chain.

While we expect COVID-19 may continue to negatively impact certain aspects of our business, given the rapid and evolving nature of the virus and the uncertainty about its impact on society and the global economy, we cannot predict the extent to which it will affect our global operations.

Furthermore, future public health crises are possible and could involve some or all of the risks discussed above.

do business, which could adversely affect our business and/or our supply chain, business partners or customers in the broader region.

Disruptions to our suppliers, including disruptions in connection with COVID-19 and its variants, may limit our ability to manufacture our devices in a timely or cost-effective manner, which could result in a significant reduction in sales and profitability.

and electronic components on commercially reasonable terms or at all.

Because C2C devices do not include communications capability they involve a more manual workflow for our customers, and may face resistance in the market as the backlog of patients waiting for treatment is reduced.

The C2C offering, while appropriate in the short term, also may not be consistent with our long term strategy of connecting all devices with AirView.

We have and may continue to be required to allocate or prioritize orders for our devices, and our failure to timely deliver desirable products to meet demand may harm relationships with our customers.

of time and we may face difficulties in anticipating and implementing adequate preventative measures.

The MEDIFOX DAN acquisition remains subject to regulatory clearances and other customary closing conditions and should the acquisition fail to close, we will not realize the benefits that we expect to receive from the acquisition.

disorders, as well as to non-sleep specialist physician practices that diagnose and treat sleep disorders.

If a service provider fails to provide sufficient capacity to support our

Further, there may be increasing scrutiny and changing expectations from the market and other stakeholders with respect to Environmental, Social and Governance (ESG) practices.

Any such regulatory changes or increased market expectations could also have a significant effect on our operating and financial decisions, including those involving capital expenditures to reduce emissions and comply with other regulatory requirements or stakeholder expectations.

Therefore, even if a product is approved for marketing, we cannot

In addition, under the ACA, in 2016, CMS adjusted the prices in non-competitive bidding areas to match competitive bidding prices.

CMS phased in the new rates beginning January 1, 2016, and were fully effective July 1, 2016.

This program has significantly reduced the Medicare reimbursement to our customers compared with reimbursement in 2011, at the beginning of the program.

The 21st Century Cures Act retroactively adjusted rates in non-bid areas to allow for the higher phase-in rates to be paid for items furnished between July 1, 2016 and December 31, 2016, rather than the lower fully-adjusted rates.

Rules issued by CMS in 2018 resumed the higher phase-in rates in rural and non-contiguous non-competitive bidding areas for items furnished between June 1, 2018 and December 31, 2020.

Pursuant to the CARES Act, these higher phase-in rates were extended through December 31, 2020, or through the end of the COVID-19 public health emergency, and were implemented in areas other than rural areas and noncontiguous areas for the same period.

On March 7, 2019, CMS announced it would initiate a new round of competitive bidding, named Round 2021, with contracts effective on January 1, 2021 through December 31, 2023.

In addition to adopting new bidding processes, CMS expanded the product categories included in competitive bidding to include non-invasive ventilators.

However, due to the COVID-19 pandemic, CMS removed NIVs from Round 2021 of the DMEPOS Competitive Bidding Program.

CPAP, and respiratory assist devices, and related supplies and accessories, which had been included in prior rounds of competitive bidding, were included in the 15 remaining product categories that were bid for in Round 2021.

However, CMS did not award competitive bidding contracts for any product categories other than OTS back and knee braces.

Payment for items where contracts were not awarded – including CPAP and respiratory assist devices – will be based on adjusted fee schedule amounts.

With respect to Medicare reimbursement, the Protecting Medicare and American Farmers From Sequester Cuts Act was signed into law Dec 10, 2021.

The law extended the 2% Medicare sequester moratorium through March 31, 2022, adjusted the sequester to 1% between April 1, 2022, and June 30, 2022 and reinstated the full 2% sequestration cut beginning July 1, 2022.

The reduction in payment to healthcare providers is to the calculated Medicare payment after the approved amount is determined, and the deductible and coinsurance are applied, and not the 20% coinsurance owed by the patient.

Further, the law eliminated the potential for an additional 4% Medicare sequester in 2022 due to statutory pay-as-you-go (PAYGO) requirement for one year.

These additional cuts will take effect in 2023 after adjournment of the first session of the 117th Congress.

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 [removed: SDB, COPD,] [added: sleep disordered breathing (“SDB”), chronic obstructive pulmonary disease,] neuromuscular disease and other chronic diseases.

Our cloud-based digital [added: software] health applications, along with our devices, are designed to provide connected care to improve patient outcomes and efficiencies for our customers.

During fiscal year [removed: 2022,] [added: 2023,] we invested [removed: $253.6] [added: $287.6] million on research and development activities, which represents [removed: 7.1%] [added: 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 fiscal year [removed: 2022] [added: 2023] 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 [removed: capabilities.][added: capabilities as well as continued our global offering of devices including Card-to-Cloud ("C2C") versions of our prior model AirSense 10 and AirCurve 10 products that do not incorporate a communications module.]

Due to multiple acquisitions, including Brightree in [removed: April] 2016, HEALTHCAREfirst [removed: in July 2018] and MatrixCare in [removed: November] 2018, and [removed: our pending acquisition of] MEDIFOX DAN [removed: which is expected to close during fiscal year 2023 subject to regulatory clearances,] [added: 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 [removed: products,] [added: platforms comprise] our [added: SaaS business and along with 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.

Net revenue in fiscal year [removed: 2022] [added: 2023] increased to [removed: $3,578.1] [added: $4,223.0] million, an increase of [removed: 12%] [added: 18%] compared to fiscal year [removed: 2021.][added: 2022.]

Gross profit increased for the year ended June 30, [removed: 2022] [added: 2023] to [removed: $2,024.3] [added: $2,355.7] million, from [removed: $1,839.1] [added: $2,024.3] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $185.2] [added: $331.4] million or [removed: 10%.][added: 16%.]

Our net income for the year ended June 30, [removed: 2022] [added: 2023] was [removed: $779.4] [added: $897.6] million or [removed: $5.30] [added: $6.09] per diluted share compared to net income of [removed: $474.5] [added: $779.4] million or [removed: $3.24] [added: $5.30] per diluted share for the year ended June 30, [removed: 2021.][added: 2022.]

Total operating cash flow for fiscal year [removed: 2022] [added: 2023] was [removed: $351.1] [added: $693.3] million and at June 30, [removed: 2022,] [added: 2023,] our cash and cash equivalents totaled [removed: $273.7] [added: $227.9] million.

At June 30, [removed: 2022,] [added: 2023,] our total assets were [removed: $5.1] [added: $6.8] billion and our stockholders’ equity was [removed: $3.4] [added: $4.1] billion.

We paid a quarterly dividend of [removed: $0.42] [added: $0.44] per share during fiscal [removed: 2022] [added: 2023] with a total amount of [removed: $245.3] [added: $258.3] million paid to stockholders.

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

For discussion related to the results of operations and changes in financial condition for the fiscal year ended June 30, [removed: 2021] [added: 2022] compared to fiscal year June 30, [removed: 2020,] [added: 2021,] please refer to Item 7 of Part II, “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report [added: on Form 10-K] for the Year Ended June 30, [removed: 2021,] [added: 2022,] which was filed with the United States Securities and Exchange Commission on August [removed: 16, 2021.][added: 12, 2022.]

Fiscal Year Ended June 30, [removed: 2022] [added: 2023] Compared to Fiscal Year Ended June 30, [removed: 2021][added: 2022]

Net revenue for the year ended June 30, [removed: 2022] [added: 2023] increased to [removed: $3,578.1] [added: $4,223.0] million from [removed: $3,196.8] [added: $3,578.1] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $381.3] [added: $644.9] million or [removed: 12%] [added: 18%] (a [removed: 13%] [added: 21%] increase on a constant currency basis).

The following table summarizes our net revenue disaggregated by segment, product and region for the year ended June 30, [removed: 2022] [added: 2023] compared to the year ended June 30, [removed: 2021] [added: 2022] (in thousands):

| | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | | | | | % Change | | | | | | Constant Currency* | | |

| Devices | | | $ | [removed: 1,070,420] [added: 1,444,361] | | | | | $ | [removed: 863,661] [added: 1,070,420] | | | | | [removed: 24] [added: 35] | | % | | | | | | |

| Masks and other | | | [removed: 911,387] [added: 1,039,026] | | | | | | [removed: 841,452] [added: 911,387] | | | | | | [removed: 8] [added: 14] | | | | | | | | |

| [removed: Software] [added: Software] as a [removed: Service] [added: Service] | | | [removed: 400,829] [added: 497,976] | | | | | | [removed: 373,590] [added: 400,829] | | | | | | [removed: 7] [added: 24] | | | | | | | | |

| Devices | | | $ | [removed: 796,488] [added: 826,341] | | | | | $ | [removed: 746,379] [added: 796,488] | | | | | [removed: 7] [added: 4] | | % | | | | [removed: 10] [added: 11] | | % |

| Masks and other | | | [removed: 399,003] [added: 415,289] | | | | | | [removed: 371,743] [added: 399,003] | | | | | | [removed: 7] [added: 4] | | | | | | 12 | | |

| Devices | | | $ | [removed: 1,866,908] [added: 2,270,702] | | | | | $ | [removed: 1,610,040] [added: 1,866,908] | | | | | [removed: 16] [added: 22] | | % | | | | [removed: 17] [added: 25] | | % |

| Masks and other | | | [removed: 1,310,390] [added: 1,454,315] | | | | | | [removed: 1,213,195] [added: 1,310,390] | | | | | | [removed: 8] [added: 11] | | | | | | [removed: 9] [added: 14] | | |

| [removed: Total] [added: Total] Sleep and Respiratory [removed: Care] [added: Care] | | | $ | [removed: 3,177,298] [added: 3,725,017] | | | | | $ | [removed: 2,823,235] [added: 3,177,298] | | | | | [removed: 13] [added: 17] | | | | | | [removed: 14] [added: 20] | | |

| [removed: Total] [added: Total] | | | $ | [removed: 3,578,127] [added: 4,222,993] | | | | | $ | [removed: 3,196,825] [added: 3,578,127] | | | | | [removed: 12] [added: 18] | | | | | | [removed: 13] [added: 21] | | |

Net revenue from our Sleep and Respiratory Care business for the year ended June 30, [removed: 2022] [added: 2023] increased to [removed: $3,177.3] [added: $3,725.0] million from [removed: $2,823.2] [added: $3,177.3] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $354.1] [added: $547.7] million or [removed: 13%.][added: 17%.]

Movements in international currencies against the U.S. dollar negatively impacted net revenues by approximately [removed: $43.0] [added: $95.6] million for the year ended June 30, [removed: 2022.][added: 2023.]

Excluding the impact of currency movements, total net revenue from our Sleep and Respiratory Care business for the year ended June 30, [removed: 2022] [added: 2023] increased by [removed: 14%] [added: 20%] compared to the year ended June 30, [removed: 2021.][added: 2022.]

Net revenue from our Sleep and Respiratory Care business in the United States, Canada and Latin America for the year ended June 30, [removed: 2022] [added: 2023] increased to [removed: $1,981.8] [added: $2,483.4] million from [removed: $1,705.1] [added: $1,981.8] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $276.7] [added: $501.6] million or [removed: 16%.][added: 25%.]

Net revenue from our Sleep and Respiratory Care business in combined Europe, Asia and other markets increased for the year ended June 30, [removed: 2022] [added: 2023] to [removed: $1,195.5] [added: $1,241.6] million from [removed: $1,118.1] [added: $1,195.5] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $77.4] [added: $46.1] million or [removed: 7%] [added: 4%] (an [removed: increase of] 11% [added: increase] on a constant currency basis).

Net revenue from devices for the year ended June 30, [removed: 2022] [added: 2023] increased to [removed: $1,866.9] [added: $2,270.7] million from [removed: $1,610.0] [added: $1,866.9] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $256.9] [added: $403.8] million or [removed: 16%,] [added: 22%,] including an increase of [removed: 24%] [added: 35%] in the United States, Canada and Latin America and an increase of [removed: 7%] [added: 4%] in combined Europe, Asia and other markets [removed: (a 10%] [added: (an 11%] increase on a constant currency basis).

Excluding the impact of foreign currency movements, device sales for the year ended June 30, [removed: 2022] [added: 2023] increased by [removed: 17%.][added: 25%.]

Net revenue from masks and other for the year ended June 30, [removed: 2022] [added: 2023] increased to [removed: $1,310.4] [added: $1,454.3] million from [removed: $1,213.2] [added: $1,310.4] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: 8%,] [added: 11%,] including an increase of [removed: 8%] [added: 14%] in the United States, Canada and Latin America and an increase of [removed: 7%] [added: 4%] in combined Europe, Asia and other markets (a 12% increase on a constant currency basis).

Excluding the impact of foreign currency movements, masks and other sales increased by [removed: 9%,] [added: 14%,] compared to the year ended June 30, [removed: 2021.][added: 2022.]

Net revenue from our SaaS business for the year ended June 30, [removed: 2022] [added: 2023] was [removed: $400.8] [added: $498.0] million, compared to [removed: $373.6] [added: $400.8] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $27.2] [added: $97.1] million or [removed: 7%.][added: 24%.]

Gross Profit and Gross Margin. Gross profit increased for the year ended June 30, [removed: 2022] [added: 2023] to [removed: $2,024.3] [added: $2,355.7] million from [removed: $1,839.1] [added: $2,024.3] million for the year ended June 30, [removed: 2021,] [added: 2022,] an increase of [removed: $185.2] [added: $331.4] million or [removed: 10%.][added: 16%.]

Gross margin, which is gross profit as a percentage of net revenue, was [removed: 56.6%] [added: 55.8%] for the year ended June 30, [removed: 2022,] [added: 2023,] compared with the [removed: 57.5%] [added: 56.6%] for the year ended June 30, [removed: 2021.][added: 2022.]

The decrease in gross margin was due primarily to [added: unfavorable product mix,] higher [removed: logistics] [added: component] and manufacturing costs, [added: higher warehouse related costs, and unfavorable foreign currency movements,] partially offset by [removed: favorable changes in product mix as we sold an increased proportion of higher acuity devices,] [added: increases] in [removed: addition to higher] average selling [removed: prices.][added: prices and a decrease in the amortization of acquired intangible assets.]

| Total U.S., Canada and Latin America | | | $ | 2,483,387 | | | | | $ | 1,981,807 | | | | | 25 | | | | | | | | |

| Total Combined Europe, Asia and other markets | | | $ | 1,241,630 | | | | | $ | 1,195,491 | | | | | 4 | | | | | | 11 | | |

| | | | | | | | | | | | | | | | | | | | | | | | |

The increase in net revenue associated with devices was primarily attributable to increased demand, reduced competitive supply, increases in average selling prices, and incremental sales of the C2C devices.

The increase in masks was primarily due to an increase in unit sales.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

The increase in net revenue associated with our devices was primarily attributable to increased demand, reduced competitive supply, and incremental sales of the C2C devices.

The increase in masks was primarily due to an increase in unit sales.

The constant currency increase in device sales in combined Europe, Asia and other was primarily attributable to increased demand as well as reduced competitive supply.

The increase in masks was primarily due to an increase in unit sales.

The increase was predominantly due to our recent acquisition of MEDIFOX DAN, which was acquired on November 21, 2022.

Excluding the MEDIFOX DAN acquisition, SaaS revenue increased 8% and was driven by continued growth in the HME vertical within our SaaS business.

| | | | 2023 | | | | | | 2022 | | | | | | | | | | | | | | | | | | | | |

| Selling, general, and administrative | | | $ | 874,003 | | | | | $ | 737,508 | | | | | $ | 136,495 | | | | | 19 | | % | | | | 22 | | % |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

the year ended June 30, 2022.

The increase in amortization expense was primarily attributable to our acquisition of MEDIFOX DAN.

During the year ended June 30, 2023, we incurred restructuring expenses of $9.2 million associated with the reorganization and rationalization of our operations.

We recorded the full amount of $9.2 million during the year ended June 30, 2023, of which $6.7 million related to our Sleep and Respiratory Care segment and $2.5 million related to our SaaS segment.

The restructuring expenses consisted primarily of severance to employees.

| Gain on insurance recoveries | | | 20,227 | | | | | | — | | | | | | 20,227 | | |

Interest expense, net, increased to $47.4 million for the year ended June 30, 2023 compared to $22.3 million for the year ended June 30, 2022 due to higher debt levels associated with the acquisition of MEDIFOX DAN, which was funded by our Revolving Credit Facility.

In addition, we recognized recoveries from business interruption insurance for $20.2 million for the year ended June 30, 2023.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| | | | 2023 | | | | | | 2022 | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| | | | 2023 | | | | | | 2022 | | |

| | | | | | | | | | | | |

| | | | 2023 | | | | | | 2022 | | |

| | | | | | | | | | | | |

| Restructuring expenses | | | 9,177 | | | | | | — | | |

| Acquisition-related expenses | | | 10,949 | | | | | | 1,864 | | |

| Gain on insurance recoveries | | | (20,227) | | | | | | — | | |

| Income tax effect on non-GAAP adjustments | | | (20,114) | | | | | | (17,044) | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| | | | | | | | | | | | |

| | | | 2023 | | | | | | 2022 | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

The $929.9 million increase in cash flow used in investing activities was primarily due to the cash used to acquire MEDIFOX DAN.

| Debt | | | $ | 1,447,164 | | | | | $ | 12,164 | | | | | $ | 10,000 | | | | | $ | 10,000 | | | | | $ | 1,165,000 | | | | | $ | — | | | | | $ | 250,000 | |

These platforms comprise our SaaS business.

Unrecognized tax benefits as described at Note 13 – Income Taxes impacted our diluted earnings per share by $1.70 for the year ended June 30, 2021.

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| PART II | | | Item 7 | | |

| RESMED INC. AND SUBSIDIARIES Management’s Discussion and Analysis of Financial Condition and Results of Operations | | | | | |

Key Trends and Economic Factors Affecting Our Business

Supply Chain Disruptions

The COVID-19 pandemic has continued to impact the global supply chain, primarily through a lack of availability of raw materials and electronic components.

The lack of raw materials and electronic components is also impacting companies outside of our direct industry, which is resulting in a competitive supply environment causing higher costs, requiring us to commit to minimum purchase obligations as well as make upfront payments to our suppliers.

Additionally, we have observed a reduction in both inbound and outbound transportation capacity as a result of port closures and delays associated with the pandemic, which is causing longer lead times in receiving raw materials into and distributing finished goods out of our manufacturing facilities, in addition to increased freight costs.

These highly competitive and constrained supply chain conditions are increasing our cost of sales, which has and may continue to decrease our gross margin.

Given the ongoing uncertainty regarding the duration and extent of the COVID-19 pandemic, we are uncertain as to the duration and extent of constraint on our supply chain.

Competitor Recall

An ongoing product recall by one of our competitors, Philips, has resulted in increased demand for our sleep and respiratory care devices.

The supply chain disruptions outlined above have constrained and restricted our ability to meet this increased demand and we expect these constraints will continue into the fiscal year ending June 30, 2023.

COVID-19

Although there is still substantial uncertainty associated with the COVID-19 pandemic, we believe the global demand for ventilators and other respiratory support devices used to treat COVID-19 patients has largely been met.

We did not observe material incremental demand for our ventilator devices and masks associated with the pandemic during the twelve months ended June 30, 2022.

In most markets, diagnostic pathways for sleep apnea treatment, including physician practices, home medical equipment (“HME”) distributors, and sleep clinics have largely recovered towards pre-pandemic levels as vaccines and boosters roll out globally.

Likewise, we have continued to observe stabilizing patient flow in our out-of-hospital care settings within our SaaS business.

Our ability to continue to operate without any significant negative impacts will in part depend on our ability to protect our employees.

We have endeavored and continue to follow recommended actions of government and health authorities to protect our employees worldwide as we progressively reopen our offices around the world.

The pandemic has not negatively impacted our liquidity position.

Impact on Our Business

As a result of these trends, we were not able to meet all the demand available in the market during the twelve months ended June 30, 2022.

We are being allocated components from our suppliers, particularly semiconductor chips, and we are thus being forced to allocate our outbound products to our customers.

We have established an allocation process with clear

guiding principles that give priority to the production and delivery of devices to meet the needs of the highest acuity patients first.

| Total Sleep and Respiratory Care | | | $ | 1,981,807 | | | | | $ | 1,705,113 | | | | | 16 | | | | | | | | |

| Total | | | $ | 2,382,636 | | | | | $ | 2,078,703 | | | | | 15 | | | | | | | | |

| Total Sleep and Respiratory Care | | | $ | 1,195,491 | | | | | $ | 1,118,122 | | | | | 7 | | | | | | 11 | | |

| Software as a Service | | | 400,829 | | | | | | 373,590 | | | | | | 7 | | | | | | 7 | | |

The increase in net revenue was primarily attributable to an increase in unit sales of our devices and masks, including recovery of core sleep patient flow that was previously impacted by the pandemic and increased demand following a recent product recall by one of our competitors, partially offset by decreased COVID-19 related demand for our ventilators.

The increase was primarily due to an increase in unit sales of our devices and masks, including recovery of core sleep patient flow that was previously impacted by the pandemic and increased demand following a recent product recall by one of our competitors, partially offset by decreased COVID-19 related demand for our ventilators.

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, including

recovery of core sleep patient flow that was previously impacted by the pandemic, partially offset by decreased COVID-19-related demand for our ventilators.

The increase was predominantly due to continued growth in our HME and Home Health and Hospice verticals, in addition to stabilizing patient flow in our Facilities vertical.

| | | | 2022 | | | | | | 2021 | | | | | | | | | | | | | | | | | | | | |

| Selling, general, and administrative | | | $ | 739,372 | | | | | $ | 670,387 | | | | | $ | 68,985 | | | | | 10 | | % | | | | 12 | | % |

We transact business in various foreign currencies, including a number of major European currencies as well as the Australian [removed: dollar.][added: and Singapore dollars.]

We have significant foreign currency exposure through [removed: both] our Australian and Singapore manufacturing activities and [added: our] international sales operations.

We have established a foreign currency hedging program using purchased [added: foreign] currency [removed: options] [added: call options, collars] and forward contracts to hedge foreign-currency-denominated financial assets, liabilities and manufacturing cash flows.

The [removed: goal] [added: purpose] of this hedging program is to economically manage the financial impact of foreign currency exposures [removed: predominantly] denominated [added: mainly] in [removed: euros,] [added: Euros, and] Australian [removed: dollars] and Singapore dollars.

Under this program, increases or decreases in our [removed: foreign-currency-denominated] [added: foreign currency denominated] financial assets, liabilities, and firm commitments are partially offset by gains and losses on the hedging instruments.

All movements in the fair value of the foreign currency [removed: derivatives] [added: instruments] are recorded within [removed: Other income, net, on] [added: other, net in] our [added: condensed] consolidated statements of income.

The table below provides information (in U.S. dollars) on our significant foreign-currency-denominated financial assets by legal entity functional currency as of June 30, [removed: 2022] [added: 2023] (in thousands):

| Foreign Currency Hedges | | | [removed: (60,000)] [added: (240,000)] | | | | | | [removed: 31,397] [added: (76,424)] | | | | | | — | | | | | | [removed: (11,941)] [added: —] | | |

| Net Assets/(Liabilities) | | | — | | | | | | [removed: —] [added: 311,950] | | | | | | [removed: 15,619] [added: 23,719] | | | | | | — | | |

| Foreign Currency Hedges | | | — | | | | | | [removed: —] [added: (305,697)] | | | | | | [removed: (19,423)] [added: (30,219)] | | | | | | — | | |

| Net Total | | | — | | | | | | [removed: —] [added: 6,253] | | | | | | [removed: (3,804)] [added: (6,500)] | | | | | | — | | |

| Foreign Currency Hedges | | | [removed: (385,000)] [added: (335,000)] | | | | | | [removed: —] [added: 114,636] | | | | | | — | | | | | | [removed: —] [added: (11,029)] | | |

The table below provides information about our [added: 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, [removed: collars and] [added: collars,] forward contracts [added: and cross-currency swaps] held at June 30, [removed: 2022.][added: 2023.]

The table presents the notional amounts and weighted average exchange rates by contractual maturity dates for our [added: foreign currency derivative financial instruments, including the forward contracts used to hedge our foreign currency denominated assets and liabilities.]

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

These notional amounts generally are used to calculate payments to be exchanged under the [removed: options] contracts (in thousands, except exchange [removed: rates):][added: rates).]

| [removed: USD/AUD] [added: AUD/USD] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | [removed: 60,000] | | | | | | [removed: —] | | | | | | [removed: 60,000] [added: 335,000] | | | | | | [removed: (190)] [added: (1,064)] | | | | | | [removed: (652)] [added: (190)] | | |

| Ave. contractual exchange rate | | | [removed: USD 1 = AUD 0.6928] | | | | | | | | | | | | [removed: USD] [added: AUD] 1 = [removed: AUD 0.6928] [added: USD 0.6708] | | | | | | | | | | | | | | |

| Ave. contractual exchange rate | | | [removed: AUD 1 = EUR 0.6867] | | | | | | [removed: AUD 1 = EUR 0.6800] | | | | | | AUD 1 = EUR [removed: 0.6857] [added: 0.6419] | | | | | | | | | | | | | | |

| Contract amount | | | [removed: 20,931] | | | | | | [removed: —] | | | | | | [removed: 20,931] [added: 11,029] | | | | | | [removed: 71] [added: (31)] | | | | | | [removed: (88)] [added: (37)] | | |

| Ave. contractual exchange rate | | | [removed: SGD 1 = Euro 0.7117] | | | | | | [removed: —] | | | | | | SGD 1 = Euro [removed: 0.7117] [added: 0.7022] | | | | | | | | | | | | | | |

| Contract amount | | | [removed: 385,000] | | | | | | [removed: —] | | | | | | [removed: 385,000] [added: 240,000] | | | | | | [removed: (1,172)] [added: (4,133)] | | | | | | [removed: (177)] [added: (1,172)] | | |

| Ave. contractual exchange rate | | | [removed: SGD 1 = USD 0.7216] | | | | | | | | | | | | SGD 1 = USD [removed: 0.7216] [added: 0.7566] | | | | | | | | | | | | | | |

| Ave. contractual exchange rate | | | [removed: AUD 1 = CNY 4.6449] | | | | | | | | | | | | AUD 1 = CNY [removed: 4.6449] [added: 4.7507] | | | | | | | | | | | | | | |

| [removed: EUR/USD] [added: USD/EUR] | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | [removed: —] | | | | | | [removed: —] | | | | | | [removed: —] [added: 30,219] | | | | | | [removed: —] [added: 156] | | | | | | [removed: 169] [added: (46)] | | |

| Ave. contractual exchange rate | | | [removed: USD 1 = EUR] | | | | | | | | | | | | USD 1 = EUR [added: 1.0406] | | | | | | | | | | | | | | |

| Ave. contractual exchange rate | | | [removed: USD 1 = CAD 1.2902] | | | | | | | | | | | | [removed: USD] [added: CAD] 1 = [removed: CAD 1.2902] [added: USD 0.7594] | | | | | | | | | | | | | | |

At June 30, [removed: 2022,] [added: 2023,] we held cash and cash equivalents of [removed: $273.7] [added: $227.9] million principally comprising of bank term deposits and at-call accounts and are invested at both short-term fixed interest rates and variable interest rates.

At June 30, [removed: 2022,] [added: 2023,] there was [removed: $280.0] [added: $945.0] million outstanding under the revolving credit and term loan facilities, which were subject to variable interest rates.

A hypothetical 10% change in interest rates during the year ended June 30, [removed: 2022,] [added: 2023,] would not have had a material impact on pretax income.

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 income.

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 $1,046.6 million at June 30, 2023.

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.

The terms of such foreign currency hedging contracts generally do not exceed three years.

We do not designate these foreign currency contracts as hedges.

The notional value of the outstanding non-designated hedges was $954.7 million and $602.0 million at June 30, 2023 and June 30, 2022, respectively.

These contracts mature at various dates prior to December 15, 2024.

\-57-

Fair Values of Derivative Instruments

| Net Assets/(Liabilities) | | | 339,015 | | | | | | (115,192) | | | | | | — | | | | | | 20,452 | | |

| Net Total | | | 4,015 | | | | | | (556) | | | | | | — | | | | | | 9,423 | | |

| Net Assets/(Liabilities) | | | 274,049 | | | | | | 102,676 | | | | | | — | | | | | | 1,323 | | |

| Net Total | | | 34,049 | | | | | | 26,252 | | | | | | — | | | | | | 1,323 | | |

\-58-

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| PART II | | | Item 7A | | |

| RESMED INC. AND SUBSIDIARIES Quantitative and Qualitative Disclosures About Market and Business Risks | | | | | |

| | | | | | | | | | | | | | | | Total | | | | | | June 30, 2023 | | | | | | June 30, 2022 | | |

| AUD/Euro | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | | | | | | | | | | | | | 212,896 | | | | | | (915) | | | | | | (413) | | |

| SGD/Euro | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | | | | | | | | | | | | | 125,554 | | | | | | (1,760) | | | | | | 71 | | |

| Contract amount | | | | | | | | | | | | | | | 1,046,572 | | | | | | (60,546) | | | | | | — | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| | | | | | |

| --- | --- | --- | --- | --- | --- |

We do not enter into financial instruments for trading or speculative purposes.

The foreign currency derivatives portfolio is recorded in the consolidated balance sheets at fair value and included in Other assets current, Other assets non-current, Accrued expenses and Other liabilities non-current.

| Net Assets/(Liabilities) | | | 105,745 | | | | | | (50,884) | | | | | | — | | | | | | 16,913 | | |

| Net Total | | | 45,745 | | | | | | (19,487) | | | | | | — | | | | | | 4,972 | | |

| Net Assets/(Liabilities) | | | 373,198 | | | | | | 14,852 | | | | | | — | | | | | | 882 | | |

| Net Total | | | (11,802) | | | | | | 14,852 | | | | | | — | | | | | | 882 | | |

foreign currency derivative financial instruments.

| Foreign Exchange Contracts | | | Year 1 | | | | | | Year 2 | | | | | | Total | | | | | | June 30, 2022 | | | | | | June 30, 2021 | | |

| AUD/EUR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | 88,959 | | | | | | 15,699 | | | | | | 104,658 | | | | | | (413) | | | | | | 1,172 | | |

| SGD/EUR | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |

| Contract amount | | | 11,941 | | | | | | — | | | | | | 11,941 | | | | | | (37) | | | | | | (130) | | |

| Contract amount | | | 19,423 | | | | | | — | | | | | | 19,423 | | | | | | (46) | | | | | | (44) | | |

\-60-

In addition, we are a leading provider of cloud-based [removed: software] health [removed: applications] [added: 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 [added: satisfaction with their therapy.]

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

[removed: We also provide management software to agencies providing out-of-hospital care, including] but not limited to home medical equipment, or HME, home health and hospice, skilled nursing, life plan community, senior living, and private duty services.

We employ over [removed: 8,100] [added: 10,140] people and sell our products in over 140 countries through a combination of wholly owned subsidiaries and independent distributors.

Since formation we have acquired a number of businesses, including distributors, suppliers, developers of medical equipment and related [removed: technologies] [added: technologies,] and software solution providers.

For example, in the United States our sleep and respiratory care products are sold by ResMed [removed: Corp.,] [added: Corp.] and our software is sold principally by our Brightree and MatrixCare subsidiaries.

See Note [removed: 14] [added: 13] – Segment Information of the Notes to Financial Statements (Part II, Item 8) for financial information regarding segment reporting.

We are focused on [removed: the] sleep and related respiratory [removed: care markets,] [added: care,] both of which we believe are globally [removed: underpenetrated markets,] [added: underpenetrated,] and where we believe our products can improve patient outcomes, create efficiencies for our customers, help physicians and providers better manage chronic disease and reduce overall healthcare system costs.

Additionally, our software solutions are focused on [removed: the] out-of-hospital [removed: care market,] [added: care,] which we believe is fragmented and [removed: underserved] [added: underserved,] and where we see significant opportunity to transform and significantly improve out-of-hospital healthcare through a strategy of enabling better patient care, improving clinical decision support, and driving interoperability across out-of-hospital care settings.

REM sleep, which is about 20-25% of total sleep experienced by adults, is characterized by a high level of brain activity, bursts of rapid eye movement, increased heart and respiration rates, and [added: paralysis of many muscles.]

[removed: In addition,] OSA has been recognized as a cause of hypertension and a significant comorbidity for heart disease, [removed: stroke] [added: stroke,] and type 2 diabetes.

Many healthcare professionals [removed: are] often [removed: unable to] [added: do not] diagnose OSA because they are unaware that such non-specific symptoms as excessive daytime sleepiness, [added: fatigue,] snoring, hypertension, and irritability are characteristic of OSA.

Studies have shown that sleep apnea is present in approximately 83% of patients with drug-resistant hypertension, approximately 77% of patients with obesity, approximately 76% of patients with chronic heart [removed: failure] [added: failure,] and approximately 72% of patients with type 2 diabetes.

The study concluded that people with obstructive sleep apnea who continued PAP therapy were 39% more likely to survive over a three-year period than OSA patients who [removed: didn’t.][added: did not.]

Hypoventilation syndromes are generally associated with obesity, chronic obstructive lung [removed: disease] [added: disease,] and neuromuscular disease.

Sleep fragmentation and the loss of the deeper levels of sleep caused by OSA can lead to excessive daytime sleepiness, [added: fatigue,] reduced cognitive function, including memory loss and lack of concentration, [removed: depression] [added: depression,] and irritability.

Several studies [removed: indicate] [added: demonstrate] that the oxygen desaturation, increased heart rate and elevated blood pressure caused by OSA may be associated with increased risk of cardiovascular morbidity and mortality due to angina, [removed: stroke] [added: stroke,] and heart attack.

Patients with OSA have been shown to have impaired daytime performance in a variety of cognitive functions including [removed: problem] [added: problem-] solving, response [removed: speed] [added: speed,] and visual motor coordination, and studies have linked OSA to increased occurrences of traffic and workplace accidents.

Simpler tests, using devices such as our ApneaLink Air, NightOwl, or our automatic positive airway pressure devices, monitor airflow during sleep, and use computer [added: programs to analyze airflow patterns.]

These tests allow sleep clinicians to detect any sleep disturbances such as apneas, [removed: hypopneas] [added: hypopneas,] or subconscious awakenings.

Alternative surgical treatments have involved either uvulopalatopharyngoplasty, or UPPP, in which surgery is performed on the upper airway to remove excess tissue and [removed: to] streamline the shape of the airway or [removed: implanting] [added: implant] a device to add support to the soft palate.

Surgical treatments are not considered [removed: first line] [added: first-line] therapy for OSA.

Other alternative treatments available today include nasal surgery, mandibular advancement surgery, dental appliances, palatal implants, somnoplasty, nasal [removed: devices] [added: devices,] and electrical stimulation of the nerves or muscles.

CPAP was first used as a treatment for OSA in 1980 by Dr. Colin Sullivan, the past Chairman of our Medical Advisory [removed: Board] [added: 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 [removed: a nasal] [added: an] interface connected to a small portable air device that delivers room air at a positive pressure.

CPAP is not a cure and, therefore, must be used [removed: on a] nightly [removed: basis] as long as treatment is required.

Patient compliance has been a major factor in the [removed: efficacy] [added: effectiveness] of CPAP treatment.

These include more comfortable patient interface systems; delay timers that gradually [removed: raise] [added: increase] air pressure allowing the patient to fall asleep more easily; bilevel air devices, including our AirCurve 10 Series and Lumis devices, which provide different air pressures for inhalation and exhalation; heated humidification systems to make the airflow more comfortable; and auto-titration devices that modulate the average pressure delivered during the night.

We aim to improve [removed: their] [added: patient] quality of life, slow down disease progression and reduce the costs of patient management.

We supply CPAP and bilevel device systems, [added: high flow therapy device systems (HFT),] non-invasive and invasive ventilators, [removed: humidifiers] [added: humidifiers,] and accessories, including [removed: masks] [added: masks, nasal cannula,] and tubing.

A recent study based on recent epidemiology data estimates that there are [removed: over 380] [added: approximately 480] million people worldwide who suffer from COPD, the world’s third leading cause of death.

Patients with chronic bronchitis present with low level of oxygen (hypoxemia) and elevated levels of carbon dioxide (hypercapnia), a chronic productive cough, cor [removed: pulmonale] [added: pulmonale,] and are commonly overweight.

[removed: In general,] the more hypoxic a COPD patient is during the day the more severe the hypoxemia experienced during sleep.

Symptoms of neuromuscular disease and respiratory failure include increasing generalized weakness and fatigue, dysphagia, dyspnoea on exertion and at rest, sleepiness, morning headache, difficulties with [removed: concentration] [added: concentration,] and mood changes.

Most neuromuscular diseases are characterized by progressive muscular impairment leading to loss of ambulation, being wheelchair-bound, swallowing difficulties, respiratory muscle [removed: weakness] [added: weakness,] and, eventually, death from respiratory failure.

Due to multiple acquisitions, including Brightree in April 2016, HEALTHCAREfirst in July [removed: 2018 and] [added: 2018,] MatrixCare in November 2018, [added: and MEDIFOX DAN in November 2022,] our operations now include [added: software] platforms that comprise our SaaS business.

With a comprehensive set of software and services offerings, our SaaS solutions enable providers to streamline workflow and deliver an improved patient experience across our existing vertical markets including HME and home infusion, facility-based organizations including skilled nursing, senior living, and life plan communities, home health and hospice providers, and to adjacent [removed: provider][added: providers through a growing portfolio of value-added solutions with broad applicability.]

We believe [removed: that] the [added: treatment of] sleep apnea and respiratory care [removed: markets] will continue to grow [removed: in the future] due to a number of factors, including increasing awareness of OSA, CSA and [removed: COPD,] [added: COPD;] improved understanding of the role of sleep apnea treatment in the management of cardiac, neurologic, [removed: metabolic] [added: metabolic,] and related [removed: disorders,] [added: disorders;] improved understanding of the role of non-invasive ventilation in the management of [removed: COPD,] [added: COPD;] and an increase in the use of digital and product technology to improve patient [removed: outcomes and create efficiencies for customers and providers.]

Our strategy for expanding our business operations and capitalizing on the growth of the sleep apnea and respiratory [removed: care markets,] [added: care,] as well as growth in out-of-hospital care settings, consists of the following key elements:

We have been a leading innovator of products designed to treat sleep apnea more effectively, increase patient [removed: comfort] [added: comfort, convenience,] and encourage compliance with prescribed therapy.

We also provide management software to agencies providing out-of-hospital care, including

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

In general,

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

Early research also suggests that home HFT may help improve clinical outcomes in hypoxemic COPD patients that frequently have exacerbations.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

outcomes and create efficiencies for customers and providers.

We are expanding our cloud-based patient management and engagement platforms, such as AirView, enabling remote monitoring, over-the-air trouble shooting and changing of device settings, U-Sleep enabling automated patient coaching through a text, email or interactive voice phone call and myAir, a patient engagement application that provides sleep coaching and a daily score based on users' sleep data.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

neurologists, and other medical subspecialists who treat these conditions and their associated comorbidities.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| MEDIFOX DAN solutions | | | MEDIFOX DAN’s software solutions are used by out-of-hospital care providers in Germany, especially home health and nursing home providers, and enable providers to achieve operating efficiencies and deliver better patient care and outcomes. | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

Some of the more recent real-world studies point to a link between PAP adherence and lower health care resource utilization.

Our primary markets are HME, pharmacy, home infusion, orthotics and prosthetics.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

We only sell our SaaS products in the United States and Germany.

The most disruptive effects of the COVID-19 pandemic are largely behind us.

Our Sydney manufacturing operation operates an Environmental Management System (EMS) certified to ISO 14001:2015.

We are progressively extending the EMS across our manufacturing network.

The principal factory for our Curative-branded products is in Suzhou, China.

Our Narval-branded products are manufactured in Lyon, France.

We will continue to expand and balance volume across our network to meet scale, cost, resilience, and environmental performance objectives, and to meet the needs of customers and patients.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

The DMEPOS Competitive Bidding Program was mandated by Congress through the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 (MMA).

CMS is required by law to recompete these contracts at least once every three years and to roll out the competitive bidding process nationally or adjust prices in non-competitive bidding areas to match competitive bidding prices.

The last round of competitive bid contracts lapsed, effective January 1, 2019.

CMS then removed 13 product categories, including CPAP and respiratory assist devices (or bilevel devices), from the Round 2021 Competitive Bidding Program competition.

As a result, these products are currently subject to a temporary gap period during which any Medicare-enrolled DMEPOS supplier may furnish DMEPOS items and services to patients.

CMS stated in rulemaking that it will be paying the single payment amounts established during the DMEPOS Competitive Bidding Program updated by an inflation adjustment factor on an annual basis for products furnished in the competitive bidding areas.

CMS will start bidding for the next round of the DMEPOS Competitive Bidding Program after the agency completes the formal public notice and comment rulemaking process.

In non-competitive bidding and non-rural areas, the Coronavirus Aid, Relief, and Economic Security (CARES) Act mandated that the fee schedule amounts for certain items furnished in rural and non-contiguous non-competitive bidding areas be based on a 50/50 blend of adjusted and unadjusted fee schedule amounts through the duration of the Public Health Emergency (PHE).

Through final rulemaking in December 2021, CMS finalized policy that they will continue paying suppliers the 50/50 blend of adjusted and unadjusted fee schedule rates for furnishing items and services in rural and non-contiguous areas regardless of the PHE.

The CARES Act also required payment in non-competitively bid areas other than rural or non-contiguous areas be based on a 75/25 blend of adjusted and unadjusted fee schedule amounts through the duration of the PHE, which ended on May 11, 2023.

The Consolidated Appropriations Act, 2023, requires that this 75/25 blended payment in non-competitively bid areas other than rural or non-contiguous areas continue beyond the end of PHE, through December 31, 2023.

The legislative landscape is complex, and changes with the influence of one party or the other.

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

for various reasons.

satisfaction with their therapy.

paralysis of many muscles.

programs to analyze airflow patterns.

In March 2020, the World Health Organization declared the outbreak of a novel strain of coronavirus, COVID-19, as a pandemic.

We have observed increased demand for our ventilator devices and masks, and during the first six months of the pandemic worked closely with governments, health authorities, hospitals, and physicians in over 100 countries to assess their needs and deliver the ventilation therapy that is essential to treat the respiratory complications of COVID-19.

Although there is still substantial uncertainty associated with the COVID-19 pandemic, we believe the global demand for ventilators and other respiratory support devices used to treat COVID-19 patients has largely been met.

Our primary focus with regards to the pandemic remains preservation of life; our strategy is to maximize the availability of ResMed ventilators and other respiratory support devices for the patients that need them most.

markets through a growing portfolio of value-added solutions with broad market applicability.

In 2016,

We commenced a controlled product launch of AirSense 11 in fiscal year 2021, which was followed by a broader launch throughout fiscal year 2022.

We also acquired a line of Chinese-developed and manufactured sleep and ventilation devices with the acquisition of Curative Medical in fiscal year 2016.

We only sell our SaaS products in the United States; however we will also have sales in Germany once ResMed’s acquisition of MEDIFOX DAN is complete.

Additionally, we have observed a reduction in both inbound and outbound transportation capacity as a result of port closures and delays associated with the pandemic, which is causing longer lead times in receiving raw materials into and distributing finished goods out of our manufacturing facilities, as well as increased freight costs.

In 2011, the Centers for Medicare & Medicaid Services, or CMS, implemented the Durable Medical Equipment, Prosthetics,

CMS is required by law to recompete these contracts at least once every three years.

In addition, the 2010 Patient Protection and Affordable Care Act, as amended by the Health Care and Education Reconciliation Act, or collectively, the ACA, required CMS to roll out the competitive bidding process nationally or adjust prices in non-competitive bidding areas, also known as the non-bid or Round 3 areas, to match competitive bidding prices by 2016.

CMS phased in the new rates beginning January 1, 2016, and the rates became fully effective July 1, 2016.

Through an Interim Final Rule issued in May 2018, CMS increased the fee schedule amounts for certain DME in non-bid areas that qualify as rural and non-contiguous, setting payment for these areas for June 1, 2018 to December 31, 2018 at a 50/50 blended reimbursement rate based on the pre-competitive bidding reimbursement rate and the adjusted reimbursement rate set through competitive bidding.

Due to the lapse of competitive bid contracts as of December 31, 2018, effective January 1, 2019, Medicare beneficiaries could receive DME from any Medicare-enrolled supplier during a temporary gap in the competitive bidding program between January 1, 2019 and December 31, 2020.

Pricing in competitive bidding areas and non-rural, contiguous non-bid areas continued to use adjusted fee schedule amounts, subject to annual Consumer Price Index (CPI) adjustments, during this temporary gap period beginning in 2019 through December 31, 2020.

On December 28, 2021, CMS released a Final Rule that, among other things, extended the blended fee schedule amounts for non-bid rural and non-contiguous areas through the end of the COVID-19 public health emergency, which has been renewed through October 13, 2022, and a blended fee schedule amount was implemented for all other areas for the same period.

CMS competed 16 product categories in Round 2021 of the DMEPOS competitive bidding program, which took effect on January 1, 2021 and extends through December 31, 2021.

There have been some revisions to the bidding methodology including the plan to implement surety bond requirements, lead item pricing, and setting reimbursement rates at the maximum winning bid rate instead of the median winning bid rate.

Although CMS previously expanded the categories of devices subject to competitive bidding to include non-invasive ventilators, or NIVs, starting in 2021, in response to the COVID-19 pandemic, CMS removed NIVs from Round 2021 of the DMEPOS Competitive Bidding Program.

Of the 15 remaining product categories that were bid for in Round 2021, CMS awarded competitive bidding contracts for only two categories, off-the-shelf (OTS) back braces and OTS knee braces.

All other product categories were removed from Round 2021.

Payment for the items where contracts were not awarded will be based on adjusted fee schedule amounts, pending further rulemaking.

Further, the law eliminated the potential for an additional 4% Medicare sequester in 2022 due to statutory pay-as-you-go (PAYGO) requirement for one year.

The cuts will take effect in 2023 after adjournment of the first session of the 117th Congress.

The ACA, which was passed both to expand the number of individuals with healthcare coverage and to develop additional revenue sources, also included, among other things, a deductible excise tax equal to 2.3% of the price for which medical devices are sold in the United States on any entity that manufactures or imports medical devices, with limited exceptions, beginning in 2013.

However, this excise tax was subsequently suspended by the U.S. Congress for medical device sales, beginning in 2016 and permanently repealed, effective January 1, 2020.

The ACA also provided for a number of Medicare regulatory requirements, including new face-to-face encounter requirements for DME and home health services.

Since its enactment, there have been judicial, executive and Congressional challenges to certain aspects of the ACA.

On June 17, 2021, the U.S. Supreme Court dismissed the most recent judicial challenge to the ACA brought by several states without specifically ruling on the constitutionality of the ACA.

Prior to the Supreme Court’s decision, President Biden issued an executive order to initiate a special enrollment period for purposes of obtaining health insurance coverage through the ACA marketplace, which began on February 15, 2021 and remained open through August 15, 2021.

The executive order also instructed certain governmental agencies to review and reconsider their existing policies and rules that limit access to healthcare, including among others, reexamining Medicaid demonstration projects and waiver programs that

include work requirements, and policies that create unnecessary barriers to obtaining access to health insurance coverage through Medicaid or the ACA.

In addition, on January 2, 2013, the American Taxpayer Relief Act of 2012 was signed into law, which, among other things, further reduced Medicare payments to several providers, including hospitals, and increased the statute of limitations period for the government to recover overpayments to providers from three to five years.

The markets for our products and services are highly competitive.

We compete on a market-by-market basis with various companies, some of which have greater financial, research, manufacturing and marketing resources than us.

See Note [removed: 16] [added: 15] – Legal Actions, Contingencies and Commitments of the Notes to Consolidated Financial Statements (Part II, Item 8) included in this report, which is incorporated by reference herein.

For the fiscal year ended June 30, [removed: 2022][added: 2023]

The aggregate market value of the voting and non-voting common equity held by non-affiliates of registrant as of December 31, [removed: 2021] [added: 2022] (the last business day of the registrant’s most recently completed second fiscal quarter), computed by reference to the closing sale price of such stock on the New York Stock Exchange, was [removed: $37,771,141,000.]

At August [removed: 8, 2022,] [added: 7, 2023,] the registrant had [removed: 146,424,981] [added: 147,071,404] shares of Common Stock, $0.004 par value, issued and outstanding.

Portions of the registrant’s definitive Proxy Statement to be delivered to stockholders in connection with the registrant’s [removed: 2022] [added: 2023] Annual Meeting of Stockholders, to be filed [removed: subsequent to] [added: within 120 days after] the [removed: date hereof,] [added: end of the fiscal year covered by this Form 10-K,] are incorporated by reference into Part III of this report.

| | | | | | | [Cautionary Note Regarding Forward Looking [removed: Statements](#i1f60984bb51544a482851b08d4a3bf6b_13)] [added: Statements](#i516b66c1c1ab48168478bc517c9ed3d2_13)] | | | [removed: [1](#i1f60984bb51544a482851b08d4a3bf6b_13)] [added: [1](#i516b66c1c1ab48168478bc517c9ed3d2_13)] | | |

| [Part [removed: I](#i1f60984bb51544a482851b08d4a3bf6b_10)] [added: I](#i516b66c1c1ab48168478bc517c9ed3d2_10)] | | | [Item [removed: 1](#i1f60984bb51544a482851b08d4a3bf6b_16)] [added: 1](#i516b66c1c1ab48168478bc517c9ed3d2_16)] | | | [removed: [Business](#i1f60984bb51544a482851b08d4a3bf6b_16)] [added: [Business](#i516b66c1c1ab48168478bc517c9ed3d2_16)] | | | [removed: [1](#i1f60984bb51544a482851b08d4a3bf6b_16)] [added: [1](#i516b66c1c1ab48168478bc517c9ed3d2_16)] | | |

| | | | [Item [removed: 1A](#i1f60984bb51544a482851b08d4a3bf6b_19)] [added: 1A](#i516b66c1c1ab48168478bc517c9ed3d2_19)] | | | [Risk [removed: Factors](#i1f60984bb51544a482851b08d4a3bf6b_19)] [added: Factors](#i516b66c1c1ab48168478bc517c9ed3d2_19)] | | | [removed: [22](#i1f60984bb51544a482851b08d4a3bf6b_19)] [added: [22](#i516b66c1c1ab48168478bc517c9ed3d2_19)] | | |

| | | | [Item [removed: 1B](#i1f60984bb51544a482851b08d4a3bf6b_22)] [added: 1B](#i516b66c1c1ab48168478bc517c9ed3d2_22)] | | | [Unresolved Staff [removed: Comments](#i1f60984bb51544a482851b08d4a3bf6b_22)] [added: Comments](#i516b66c1c1ab48168478bc517c9ed3d2_22)] | | | [removed: [41](#i1f60984bb51544a482851b08d4a3bf6b_22)] [added: [42](#i516b66c1c1ab48168478bc517c9ed3d2_22)] | | |

| | | | [Item [removed: 2](#i1f60984bb51544a482851b08d4a3bf6b_25)] [added: 2](#i516b66c1c1ab48168478bc517c9ed3d2_25)] | | | [removed: [Properties](#i1f60984bb51544a482851b08d4a3bf6b_25)] [added: [Properties](#i516b66c1c1ab48168478bc517c9ed3d2_25)] | | | [removed: [41](#i1f60984bb51544a482851b08d4a3bf6b_25)] [added: [42](#i516b66c1c1ab48168478bc517c9ed3d2_25)] | | |

| | | | [Item [removed: 3](#i1f60984bb51544a482851b08d4a3bf6b_28)] [added: 3](#i516b66c1c1ab48168478bc517c9ed3d2_28)] | | | [Legal [removed: Proceedings](#i1f60984bb51544a482851b08d4a3bf6b_28)] [added: Proceedings](#i516b66c1c1ab48168478bc517c9ed3d2_28)] | | | [removed: [42](#i1f60984bb51544a482851b08d4a3bf6b_28)] [added: [42](#i516b66c1c1ab48168478bc517c9ed3d2_28)] | | |

| | | | [Item [removed: 4](#i1f60984bb51544a482851b08d4a3bf6b_31)] [added: 4](#i516b66c1c1ab48168478bc517c9ed3d2_31)] | | | [Mine Safety [removed: Disclosures](#i1f60984bb51544a482851b08d4a3bf6b_31)] [added: Disclosures](#i516b66c1c1ab48168478bc517c9ed3d2_31)] | | | [removed: [42](#i1f60984bb51544a482851b08d4a3bf6b_31)] [added: [42](#i516b66c1c1ab48168478bc517c9ed3d2_31)] | | |

| [Part [removed: II](#i1f60984bb51544a482851b08d4a3bf6b_34)] [added: II](#i516b66c1c1ab48168478bc517c9ed3d2_34)] | | | [Item [removed: 5](#i1f60984bb51544a482851b08d4a3bf6b_37)] [added: 5](#i516b66c1c1ab48168478bc517c9ed3d2_37)] | | | [Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity [removed: Securities](#i1f60984bb51544a482851b08d4a3bf6b_37)] [added: Securities](#i516b66c1c1ab48168478bc517c9ed3d2_37)] | | | [removed: [43](#i1f60984bb51544a482851b08d4a3bf6b_37)] [added: [43](#i516b66c1c1ab48168478bc517c9ed3d2_37)] | | |

| | | | [Item [removed: 6](#i1f60984bb51544a482851b08d4a3bf6b_40)] [added: 6](#i516b66c1c1ab48168478bc517c9ed3d2_40)] | | | [Selected Financial [removed: Data](#i1f60984bb51544a482851b08d4a3bf6b_40)] [added: Data](#i516b66c1c1ab48168478bc517c9ed3d2_40)] | | | [removed: [44](#i1f60984bb51544a482851b08d4a3bf6b_40)] [added: [44](#i516b66c1c1ab48168478bc517c9ed3d2_40)] | | |

| | | | [Item [removed: 7](#i1f60984bb51544a482851b08d4a3bf6b_43)] [added: 7](#i516b66c1c1ab48168478bc517c9ed3d2_43)] | | | [Management’s Discussion and Analysis of Financial Condition and Results of [removed: Operations](#i1f60984bb51544a482851b08d4a3bf6b_43)] [added: Operations](#i516b66c1c1ab48168478bc517c9ed3d2_43)] | | | [removed: [46](#i1f60984bb51544a482851b08d4a3bf6b_43)] [added: [46](#i516b66c1c1ab48168478bc517c9ed3d2_43)] | | |

| | | | [Item [removed: 7A](#i1f60984bb51544a482851b08d4a3bf6b_79)] [added: 7A](#i516b66c1c1ab48168478bc517c9ed3d2_88)] | | | [Quantitative and Qualitative Disclosures About Market and Business [removed: Risks](#i1f60984bb51544a482851b08d4a3bf6b_79)] [added: Risks](#i516b66c1c1ab48168478bc517c9ed3d2_88)] | | | [removed: [59](#i1f60984bb51544a482851b08d4a3bf6b_79)] [added: [57](#i516b66c1c1ab48168478bc517c9ed3d2_88)] | | |

| | | | [Item [removed: 8](#i1f60984bb51544a482851b08d4a3bf6b_82)] [added: 8](#i516b66c1c1ab48168478bc517c9ed3d2_91)] | | | [Consolidated Financial Statements and Supplementary [removed: Data](#i1f60984bb51544a482851b08d4a3bf6b_82)] [added: Data](#i516b66c1c1ab48168478bc517c9ed3d2_91)] | | | [removed: [61](#i1f60984bb51544a482851b08d4a3bf6b_82)] [added: [60](#i516b66c1c1ab48168478bc517c9ed3d2_91)] | | |

| | | | [Item [removed: 9](#i1f60984bb51544a482851b08d4a3bf6b_169)] [added: 9](#i516b66c1c1ab48168478bc517c9ed3d2_172)] | | | [Changes in and Disagreements with Accountants on Accounting and Financial [removed: Disclosure](#i1f60984bb51544a482851b08d4a3bf6b_169)] [added: Disclosure](#i516b66c1c1ab48168478bc517c9ed3d2_172)] | | | [removed: [92](#i1f60984bb51544a482851b08d4a3bf6b_169)] [added: [96](#i516b66c1c1ab48168478bc517c9ed3d2_172)] | | |

| | | | [Item [removed: 9A](#i1f60984bb51544a482851b08d4a3bf6b_172)] [added: 9A](#i516b66c1c1ab48168478bc517c9ed3d2_175)] | | | [Controls and [removed: Procedures](#i1f60984bb51544a482851b08d4a3bf6b_172)] [added: Procedures](#i516b66c1c1ab48168478bc517c9ed3d2_175)] | | | [removed: [92](#i1f60984bb51544a482851b08d4a3bf6b_172)] [added: [96](#i516b66c1c1ab48168478bc517c9ed3d2_175)] | | |

| [Part [removed: III](#i1f60984bb51544a482851b08d4a3bf6b_184)] [added: III](#i516b66c1c1ab48168478bc517c9ed3d2_187)] | | | [Item [removed: 10](#i1f60984bb51544a482851b08d4a3bf6b_187)] [added: 10](#i516b66c1c1ab48168478bc517c9ed3d2_190)] | | | [Directors, Executive Officers and Corporate [removed: Governance](#i1f60984bb51544a482851b08d4a3bf6b_187)] [added: Governance](#i516b66c1c1ab48168478bc517c9ed3d2_190)] | | | [removed: [96](#i1f60984bb51544a482851b08d4a3bf6b_187)] [added: [101](#i516b66c1c1ab48168478bc517c9ed3d2_190)] | | |

| | | | [Item [removed: 12](#i1f60984bb51544a482851b08d4a3bf6b_193)] [added: 12](#i516b66c1c1ab48168478bc517c9ed3d2_196)] | | | [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder [removed: Matters](#i1f60984bb51544a482851b08d4a3bf6b_193)] [added: Matters](#i516b66c1c1ab48168478bc517c9ed3d2_196)] | | | [removed: [96](#i1f60984bb51544a482851b08d4a3bf6b_193)] [added: [101](#i516b66c1c1ab48168478bc517c9ed3d2_196)] | | |

| | | | [Item [removed: 13](#i1f60984bb51544a482851b08d4a3bf6b_196)] [added: 13](#i516b66c1c1ab48168478bc517c9ed3d2_199)] | | | [Certain Relationships and Related Transactions, and Director [removed: Independence](#i1f60984bb51544a482851b08d4a3bf6b_196)] [added: Independence](#i516b66c1c1ab48168478bc517c9ed3d2_199)] | | | [removed: [96](#i1f60984bb51544a482851b08d4a3bf6b_196)] [added: [101](#i516b66c1c1ab48168478bc517c9ed3d2_199)] | | |

| | | | [Item [removed: 14](#i1f60984bb51544a482851b08d4a3bf6b_199)] [added: 14](#i516b66c1c1ab48168478bc517c9ed3d2_202)] | | | [Principal [removed: Accounting] [added: Accountant] Fees and [removed: Services](#i1f60984bb51544a482851b08d4a3bf6b_199)] [added: Services](#i516b66c1c1ab48168478bc517c9ed3d2_202)] | | | [removed: [96](#i1f60984bb51544a482851b08d4a3bf6b_199)] [added: [101](#i516b66c1c1ab48168478bc517c9ed3d2_202)] | | |

| [Part [removed: IV](#i1f60984bb51544a482851b08d4a3bf6b_202)] [added: IV](#i516b66c1c1ab48168478bc517c9ed3d2_205)] | | | [Item [removed: 15](#i1f60984bb51544a482851b08d4a3bf6b_205)] [added: 15](#i516b66c1c1ab48168478bc517c9ed3d2_208)] | | | [Exhibits and Consolidated Financial Statement [removed: Schedules](#i1f60984bb51544a482851b08d4a3bf6b_205)] [added: Schedules](#i516b66c1c1ab48168478bc517c9ed3d2_208)] | | | [removed: [97](#i1f60984bb51544a482851b08d4a3bf6b_205)] [added: [102](#i516b66c1c1ab48168478bc517c9ed3d2_208)] | | |

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

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, [added: the integration of acquisitions, our supply chain, domestic and international regulatory developments,] litigation, tax [removed: outlook and] [added: outlook,] the [added: expected] impact of [removed: COVID-19.][added: COVID-19, its variants, and similar epidemics or pandemics, and macroeconomic conditions on our business.]

In addition, important factors to consider in evaluating such forward-looking statements include changes or developments in healthcare reform, social, [removed: economic,] [added: macroeconomic,] market, legal or regulatory circumstances, including the impact of public health crises such as [removed: the novel strain of coronavirus (COVID-19)] [added: COVID-19] and its [removed: variants that continues to spread globally;] [added: variants;] 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, disruptions and delays in the supply chain, the actions or omissions of third parties, including suppliers, customers, competitors and governmental authorities, geopolitical and economic conditions in foreign jurisdictions [removed: where we do] [added: impacting our] business, and various other factors.

If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements.

¨

Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to §240.10D-1(b).

¨

$30,200,969,929.

This determination of affiliate status with respect to the foregoing calculation is not a determination for other purposes.

DOCUMENTS INCORPORATED BY REFERENCE

| | | | [Item 9B](#i516b66c1c1ab48168478bc517c9ed3d2_184) | | | [Other Information](#i516b66c1c1ab48168478bc517c9ed3d2_184) | | | [100](#i516b66c1c1ab48168478bc517c9ed3d2_184) | | |

| | | | [Item 9C](#i516b66c1c1ab48168478bc517c9ed3d2_864) | | | [Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](#i516b66c1c1ab48168478bc517c9ed3d2_864) | | | [100](#i516b66c1c1ab48168478bc517c9ed3d2_864) | | |

| | | | [Item 11](#i516b66c1c1ab48168478bc517c9ed3d2_193) | | | [Executive Compensation](#i516b66c1c1ab48168478bc517c9ed3d2_193) | | | [101](#i516b66c1c1ab48168478bc517c9ed3d2_193) | | |

| | | | [Item 16](#i516b66c1c1ab48168478bc517c9ed3d2_211) | | | [Form 10-K Summary](#i516b66c1c1ab48168478bc517c9ed3d2_211) | | | [103](#i516b66c1c1ab48168478bc517c9ed3d2_211) | | |

| | | | | | | [Signatures](#i516b66c1c1ab48168478bc517c9ed3d2_214) | | | [104](#i516b66c1c1ab48168478bc517c9ed3d2_214) | | |

| | | | [Item 9B](#i1f60984bb51544a482851b08d4a3bf6b_181) | | | [Other Information](#i1f60984bb51544a482851b08d4a3bf6b_181) | | | [95](#i1f60984bb51544a482851b08d4a3bf6b_181) | | |

| | | | [Item 11](#i1f60984bb51544a482851b08d4a3bf6b_190) | | | [Executive Compensation](#i1f60984bb51544a482851b08d4a3bf6b_190) | | | [96](#i1f60984bb51544a482851b08d4a3bf6b_190) | | |

| | | | [Item 16](#i1f60984bb51544a482851b08d4a3bf6b_208) | | | [Form 10-K Summary](#i1f60984bb51544a482851b08d4a3bf6b_208) | | | [98](#i1f60984bb51544a482851b08d4a3bf6b_208) | | |

| | | | | | | [Signatures](#i1f60984bb51544a482851b08d4a3bf6b_211) | | | [99](#i1f60984bb51544a482851b08d4a3bf6b_211) | | |

Furthermore, many of these risks and uncertainties are currently amplified by and may continue to be amplified by the COVID-19 pandemic and the impact of varying private and governmental responses that affect our customers, employees, vendors and the economies and communities where they operate.

None.

We have received no written comments regarding our periodic or current reports from the staff of the SEC that were issued 180 days or more before the end of our fiscal year 2022 that remain unresolved.

At June 30, [removed: 2022,] [added: 2023,] our principal owned and leased properties were as follows:

| Sydney, Australia | | | Owned | | | [removed: 224,000] [added: 437,000] | | | Manufacturing, engineering, research and development, sales and administration | | |

| Munich, Germany | | | Leased | | | [removed: 60,000] [added: 61,000] | | | Sales and distribution | | |

| Lyon, France | | | Leased | | | 52,000 | | | [removed: Sales] [added: Sales, manufacturing] and distribution | | |

\-41-

[Table of Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)

| | | | | | |

| --- | --- | --- | --- | --- | --- |

| PART I | | | Item 1B — 4 | | |

| RESMED INC. AND SUBSIDIARIES | | | | | |

| Bloomington, Minnesota | | | Leased | | | 51,000 | | | SaaS sales and administration, engineering, research and development | | |

| Halifax, Canada | | | Leased | | | 47,000 | | | Engineering, research and development | | |

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

As of July 31, [removed: 2022,] [added: 2023,] there were [removed: 26] [added: 28] holders of record of our common stock, although the actual number of stockholders of our common stock is greater than this number of holders of record and many of these holders of record own shares as nominees on behalf of other beneficial owners.

As a result, we did not repurchase any shares during the twelve months ended June 30, [removed: 2022.][added: 2023.]

June 30, [removed: 2022,] [added: 2023,] 12.9 million additional shares can be repurchased under the approved share repurchase program.

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

The following graph compares the cumulative total stockholders return on our common stock from June 30, [removed: 2017] [added: 2018] through June 30, [removed: 2022,] [added: 2023,] with the comparable cumulative return of the S&P 500 index, the S&P 500 Health Care index, and the Dow Jones U.S. [added: Select] Medical [removed: Devices] [added: Equipment] index.

The graph assumes that $100 was invested in our common stock and each index on June 30, [removed: 2017.][added: 2018.]

[removed: ][added: ]

The following table shows total indexed return of stock price plus reinvestments of dividends, assuming an initial investment of $100 at June 30, [removed: 2017,] [added: 2018,] for the indicated periods.

| Index | | | [removed: 2017 | | |] 2018 | | | 2019 | | | 2020 | | | 2021 | | | 2022 | | | [added: 2023 | | |]

| S&P 500 | | | 100 | | | [removed: 114] [added: 108] | | | [removed: 123] [added: 114] | | | [removed: 130] [added: 158] | | | [removed: 180] [added: 139] | | | [removed: 158] [added: 164] | | |

We suspended our share repurchase program in fiscal year 2019.

Dividends

While we have historically paid dividends to holders of our common stock on a quarterly basis, the declaration and payment of future dividends will depend on many factors, including, but not limited to, our earnings, financial condition, business development needs and regulatory considerations, and are at the discretion of our board of directors.

| ResMed Inc. | | | 100 | | | 119 | | | 190 | | | 246 | | | 210 | | | 221 | | |

| S&P 500 Health Care | | | 100 | | | 111 | | | 121 | | | 152 | | | 155 | | | 160 | | |

| Dow Jones U.S. Select Medical Equipment | | | 100 | | | 120 | | | 133 | | | 182 | | | 152 | | | 171 | | |

In fiscal year 2019, we temporarily suspended our share repurchase program due to recent acquisitions, and more recently, as a response to the COVID-19 pandemic.

| ResMed Inc. | | | 100 | | | 135 | | | 162 | | | 257 | | | 332 | | | 285 | | |

| S&P 500 Health Care | | | 100 | | | 105 | | | 117 | | | 127 | | | 160 | | | 163 | | |

| Dow Jones U.S. Medical Devices | | | 100 | | | 121 | | | 145 | | | 160 | | | 219 | | | 184 | | |

The following table summarizes certain selected consolidated financial data for, and as of the end of, each of the fiscal years in the five-year period ended June 30, [removed: 2022.][added: 2023.]

The consolidated statement of income data for the years ended June 30, [removed: 2022, 2021] [added: 2023, 2022] and [removed: 2020] [added: 2021] and the consolidated balance sheet data as of June 30, [removed: 2022] [added: 2023] and [removed: 2021] [added: 2022] are derived from our audited consolidated financial statements included elsewhere in this report.

The consolidated statement of income data for the years ended June 30, [removed: 2019] [added: 2020] and [removed: 2018] [added: 2019] and the consolidated balance sheet data as of June 30, [removed: 2020, 2019] [added: 2021, 2020] and [removed: 2018] [added: 2019] are derived from our audited consolidated financial

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

| (In thousands, except per share data): | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Net revenue | | | | | | $ | [removed: 3,578,127] [added: 4,222,993] | | | | | $ | [removed: 3,196,825] [added: 3,578,127] | | | | | $ | [removed: 2,957,013] [added: 3,196,825] | | | | | $ | [removed: 2,606,572] [added: 2,957,013] | | | | | $ | [removed: 2,340,196] [added: 2,606,572] | |

| Cost of sales (exclusive of amortization shown separately below) | | | | | | [removed: 1,514,166] [added: 1,836,935] | | | | | | [removed: 1,312,598] [added: 1,514,166] | | | | | | [removed: 1,189,624] [added: 1,312,598] | | | | | | [removed: 1,069,987] [added: 1,189,624] | | | | | | [removed: 978,032] [added: 1,069,987] | | |

| Amortization of acquired intangible assets | | | | | | [removed: 39,650] [added: 30,396] | | | | | | [removed: 45,127] [added: 39,650] | | | | | | [removed: 49,603] [added: 45,127] | | | | | | [removed: 42,514] [added: 49,603] | | | | | | [removed: 27,266] [added: 42,514] | | |

| Total cost of sales | | | | | | [removed: 1,553,816] [added: 1,867,331] | | | | | | [removed: 1,357,725] [added: 1,553,816] | | | | | | [removed: 1,239,227] [added: 1,357,725] | | | | | | [removed: 1,112,501] [added: 1,239,227] | | | | | | [removed: 1,005,298] [added: 1,112,501] | | |

| Gross profit | | | | | | [removed: 2,024,311] [added: 2,355,662] | | | | | | [removed: 1,839,100] [added: 2,024,311] | | | | | | [removed: 1,717,786] [added: 1,839,100] | | | | | | [removed: 1,494,071] [added: 1,717,786] | | | | | | [removed: 1,334,898] [added: 1,494,071] | | |

| Selling, general and administrative expenses | | | | | | [removed: 739,372] [added: 874,003] | | | | | | [removed: 670,387] [added: 737,508] | | | | | | [removed: 676,689] [added: 670,387] | | | | | | [removed: 645,010] [added: 676,689] | | | | | | [removed: 600,369] [added: 645,010] | | |

| Research and development expenses | | | | | | [removed: 253,575] [added: 287,642] | | | | | | [removed: 225,284] [added: 253,575] | | | | | | [removed: 201,946] [added: 225,284] | | | | | | [removed: 180,651] [added: 201,946] | | | | | | [removed: 155,149] [added: 180,651] | | |

| Amortization of acquired intangible assets | | | | | | [removed: 31,078] [added: 42,020] | | | | | | 31,078 | | | | | | [removed: 30,092] [added: 31,078] | | | | | | [removed: 32,424] [added: 30,092] | | | | | | [removed: 19,117] [added: 32,424] | | |

| Restructuring expenses | | | | | | [removed: —] [added: 9,177] | | | | | | [removed: 8,673] [added: —] | | | | | | [removed: —] [added: 8,673] | | | | | | [removed: 9,401] [added: —] | | | | | | [removed: 18,432] [added: 9,401] | | |

| Litigation settlement expenses | | | | | | — | | | | | | — | | | | | | [removed: (600)] [added: —] | | | | | | [removed: 41,199] [added: (600)] | | | | | | [removed: —] [added: 41,199] | | |

| Acquisition related expenses | | | | | | [removed: —] [added: 10,949] | | | | | | [removed: —] [added: 1,864] | | | | | | — | | | | | | [removed: 6,123] [added: —] | | | | | | [removed: —] [added: 6,123] | | |

| Total operating expenses | | | | | | [removed: 1,024,025] [added: 1,223,791] | | | | | | [removed: 935,422] [added: 1,024,025] | | | | | | [removed: 908,127] [added: 935,422] | | | | | | [removed: 914,808] [added: 908,127] | | | | | | [removed: 793,067] [added: 914,808] | | |

| Income from operations | | | | | | [removed: 1,000,286] [added: 1,131,871] | | | | | | [removed: 903,678] [added: 1,000,286] | | | | | | [removed: 809,659] [added: 903,678] | | | | | | [removed: 579,263] [added: 809,659] | | | | | | [removed: 541,831] [added: 579,263] | | |

| Interest income (expense), net | | | | | | [removed: (22,312)] [added: (47,379)] | | | | | | [removed: (23,627)] [added: (22,312)] | | | | | | [removed: (39,356)] [added: (23,627)] | | | | | | [removed: (33,857)] [added: (39,356)] | | | | | | [removed: (11,977)] [added: (33,857)] | | |

| Loss attributable to equity method investments | | | | | | [removed: (8,486)] [added: (7,265)] | | | | | | [removed: (11,205)] [added: (8,486)] | | | | | | [removed: (25,058)] [added: (11,205)] | | | | | | [removed: (15,833)] [added: (25,058)] | | | | | | [removed: —] [added: (15,833)] | | |

| Other, net | | | | | | [removed: (9,005)] [added: 4,210] | | | | | | [removed: 14,816] [added: (9,005)] | | | | | | [removed: (12,157)] [added: 14,816] | | | | | | [removed: (10,726)] [added: (12,157)] | | | | | | [removed: (8,542)] [added: (10,726)] | | |

| Total other income (loss), net | | | | | | [removed: (39,803)] [added: (30,207)] | | | | | | [removed: (20,016)] [added: (39,803)] | | | | | | [removed: (76,571)] [added: (20,016)] | | | | | | [removed: (60,416)] [added: (76,571)] | | | | | | [removed: (20,519)] [added: (60,416)] | | |

| Income before income taxes | | | | | | [removed: 960,483] [added: 1,101,664] | | | | | | [removed: 883,662] [added: 960,483] | | | | | | [removed: 733,088] [added: 883,662] | | | | | | [removed: 518,847] [added: 733,088] | | | | | | [removed: 521,312] [added: 518,847] | | |

| Income taxes | | | | | | [removed: 181,046] [added: 204,108] | | | | | | [removed: 409,157] [added: 181,046] | | | | | | [removed: 111,414] [added: 409,157] | | | | | | [removed: 114,255] [added: 111,414] | | | | | | [removed: 205,724] [added: 114,255] | | |

| Net income | | | | | | $ | [removed: 779,437] [added: 897,556] | | | | | $ | [removed: 474,505] [added: 779,437] | | | | | $ | [removed: 621,674] [added: 474,505] | | | | | $ | [removed: 404,592] [added: 621,674] | | | | | $ | [removed: 315,588] [added: 404,592] | |

| Basic earnings per share | | | | | | $ | [removed: 5.34] [added: 6.12] | | | | | $ | [removed: 3.27] [added: 5.34] | | | | | $ | [removed: 4.31] [added: 3.27] | | | | | $ | [removed: 2.83] [added: 4.31] | | | | | $ | [removed: 2.21] [added: 2.83] | |

| Diluted earnings per share | | | | | | $ | [removed: 5.30] [added: 6.09] | | | | | $ | [removed: 3.24] [added: 5.30] | | | | | $ | [removed: 4.27] [added: 3.24] | | | | | $ | [removed: 2.80] [added: 4.27] | | | | | $ | [removed: 2.19] [added: 2.80] | |

| Dividends per share | | | | | | $ | [removed: 1.68] [added: 1.76] | | | | | $ | [removed: 1.56] [added: 1.68] | | | | | $ | 1.56 | | | | | $ | [removed: 1.48] [added: 1.56] | | | | | $ | [removed: 1.40] [added: 1.48] | |

| Basic shares outstanding | | | | | | [removed: 146,066] [added: 146,765] | | | | | | [removed: 145,313] [added: 146,066] | | | | | | [removed: 144,338] [added: 145,313] | | | | | | [removed: 143,111] [added: 144,338] | | | | | | [removed: 142,764] [added: 143,111] | | |

| Diluted shares outstanding | | | | | | [removed: 147,043] [added: 147,455] | | | | | | [removed: 146,451] [added: 147,043] | | | | | | [removed: 145,652] [added: 146,451] | | | | | | [removed: 144,484] [added: 145,652] | | | | | | [removed: 143,987] [added: 144,484] | | |

| Consolidated Balance Sheet Data (In thousands): | | | | | | [removed: 2022] [added: 2023] | | | | | | [removed: 2021] [added: 2022] | | | | | | [removed: 2020] [added: 2021] | | | | | | [removed: 2019] [added: 2020] | | | | | | [removed: 2018] [added: 2019] | | |

| Working capital | | | | | | $ | [removed: 1,242,179] [added: 1,609,297] | | | | | $ | [removed: 662,991] [added: 1,242,179] | | | | | $ | [removed: 920,698] [added: 662,991] | | | | | $ | [removed: 589,375] [added: 920,698] | | | | | $ | [removed: 554,468] [added: 589,375] | |

| Total assets | | | | | | [removed: 5,095,853] [added: 6,751,708] | | | | | | [removed: 4,728,125] [added: 5,095,853] | | | | | | [removed: 4,587,376] [added: 4,728,125] | | | | | | [removed: 4,107,682] [added: 4,587,376] | | | | | | [removed: 3,063,923] [added: 4,107,682] | | |

| Long-term debt, less current maturities | | | | | | [removed: 765,325] [added: 1,431,234] | | | | | | [removed: 643,351] [added: 765,325] | | | | | | [removed: 1,164,133] [added: 643,351] | | | | | | [removed: 1,258,861] [added: 1,164,133] | | | | | | [removed: 269,988] [added: 1,258,861] | | |

| Total stockholders’ equity | | | | | | $ | [removed: 3,360,751] [added: 4,129,903] | | | | | $ | [removed: 2,885,679] [added: 3,360,751] | | | | | $ | [removed: 2,497,027] [added: 2,885,679] | | | | | $ | [removed: 2,072,193] [added: 2,497,027] | | | | | $ | [removed: 2,058,980] [added: 2,072,193] | |

| Gain on insurance recoveries | | | | | | 20,227 | | | | | | — | | | | | | — | | | | | | — | | | | | | — | | |

[Table of Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)

| [Report of Independent Registered Public Accounting [removed: Firm](#i1f60984bb51544a482851b08d4a3bf6b_85)] [added: Firm](#i516b66c1c1ab48168478bc517c9ed3d2_94)] (KPMG LLP, San Diego, CA, Auditor Firm ID: 185) | | | [removed: [62](#i1f60984bb51544a482851b08d4a3bf6b_85)] [added: [61](#i516b66c1c1ab48168478bc517c9ed3d2_94)] | | |

| [Consolidated Balance Sheets as of June 30, [removed: 202](#i1f60984bb51544a482851b08d4a3bf6b_88)[2](#i1f60984bb51544a482851b08d4a3bf6b_88) [and 202](#i1f60984bb51544a482851b08d4a3bf6b_88)[1](#i1f60984bb51544a482851b08d4a3bf6b_88)] [added: 2023 and 2022](#i516b66c1c1ab48168478bc517c9ed3d2_97)] | | | [removed: [64](#i1f60984bb51544a482851b08d4a3bf6b_88)] [added: [64](#i516b66c1c1ab48168478bc517c9ed3d2_97)] | | |

| [Consolidated Statements of Income for the years ended June 30, [removed: 202](#i1f60984bb51544a482851b08d4a3bf6b_91)[2](#i1f60984bb51544a482851b08d4a3bf6b_91)[, 202](#i1f60984bb51544a482851b08d4a3bf6b_91)[1](#i1f60984bb51544a482851b08d4a3bf6b_91) [and 2](#i1f60984bb51544a482851b08d4a3bf6b_91)[02](#i1f60984bb51544a482851b08d4a3bf6b_91)[0](#i1f60984bb51544a482851b08d4a3bf6b_91)] [added: 2023, 2022 and 2021](#i516b66c1c1ab48168478bc517c9ed3d2_100)] | | | [removed: [65](#i1f60984bb51544a482851b08d4a3bf6b_91)] [added: [65](#i516b66c1c1ab48168478bc517c9ed3d2_100)] | | |

| [Consolidated Statements of Comprehensive Income for the years ended June 30, [removed: 202](#i1f60984bb51544a482851b08d4a3bf6b_94)[2](#i1f60984bb51544a482851b08d4a3bf6b_94)[, 202](#i1f60984bb51544a482851b08d4a3bf6b_94)[1](#i1f60984bb51544a482851b08d4a3bf6b_94) [and 20](#i1f60984bb51544a482851b08d4a3bf6b_94)[20](#i1f60984bb51544a482851b08d4a3bf6b_94)] [added: 2023, 2022 and 2021](#i516b66c1c1ab48168478bc517c9ed3d2_103)] | | | [removed: [66](#i1f60984bb51544a482851b08d4a3bf6b_94)] [added: [66](#i516b66c1c1ab48168478bc517c9ed3d2_103)] | | |

| [Consolidated Statements of Stockholders’ Equity for the years ended June 30, [removed: 202](#i1f60984bb51544a482851b08d4a3bf6b_97)[2](#i1f60984bb51544a482851b08d4a3bf6b_97)[, 202](#i1f60984bb51544a482851b08d4a3bf6b_97)[1](#i1f60984bb51544a482851b08d4a3bf6b_97) [and 20](#i1f60984bb51544a482851b08d4a3bf6b_97)[20](#i1f60984bb51544a482851b08d4a3bf6b_97)] [added: 2023, 2022 and 2021](#i516b66c1c1ab48168478bc517c9ed3d2_106)] | | | [removed: [67](#i1f60984bb51544a482851b08d4a3bf6b_97)] [added: [67](#i516b66c1c1ab48168478bc517c9ed3d2_106)] | | |

| [Consolidated Statements of Cash Flows for the years ended June 30, [removed: 202](#i1f60984bb51544a482851b08d4a3bf6b_100)[2](#i1f60984bb51544a482851b08d4a3bf6b_100)[, 202](#i1f60984bb51544a482851b08d4a3bf6b_100)[1](#i1f60984bb51544a482851b08d4a3bf6b_100) [and 20](#i1f60984bb51544a482851b08d4a3bf6b_100)[20](#i1f60984bb51544a482851b08d4a3bf6b_100)] [added: 2023, 2022 and 2021](#i516b66c1c1ab48168478bc517c9ed3d2_109)] | | | [removed: [68](#i1f60984bb51544a482851b08d4a3bf6b_100)] [added: [68](#i516b66c1c1ab48168478bc517c9ed3d2_109)] | | |

| [Notes to Consolidated Financial [removed: Statements](#i1f60984bb51544a482851b08d4a3bf6b_103)] [added: Statements](#i516b66c1c1ab48168478bc517c9ed3d2_112)] | | | [removed: [69](#i1f60984bb51544a482851b08d4a3bf6b_103)] [added: [69](#i516b66c1c1ab48168478bc517c9ed3d2_112)] | | |

| [Schedule II – Valuation and Qualifying Accounts and [removed: Reserves](#i1f60984bb51544a482851b08d4a3bf6b_166)] [added: Reserves](#i516b66c1c1ab48168478bc517c9ed3d2_169)] | | | [removed: [91](#i1f60984bb51544a482851b08d4a3bf6b_166)] [added: [95](#i516b66c1c1ab48168478bc517c9ed3d2_169)] | | |

Quarterly Financial Information (unaudited)—The quarterly results for the years ended June 30, [removed: 2022] [added: 2023] and [removed: 2021] [added: 2022] are summarized below (in thousands, except per share amounts):

| [removed: 2021] [added: 2023] | | | | | | First Quarter | | | | | | Second Quarter | | | | | | Third Quarter | | | | | | Fourth Quarter | | | | | | Fiscal Year | | |

| Basic earnings [removed: (loss)] per share | | | [removed: | | | 1.23 | | | | | | 1.24 | | | | |] [added: $] | [removed: (0.54)] [added: 6.12] | | | | | [added: $] | [removed: 1.34] [added: 5.34] | | | | | [added: $] | 3.27 | | [removed: |]

| Diluted earnings [removed: (loss)] per share | | | [removed: | | | 1.22 | | | | | | 1.23 | | | | |] [added: $] | [removed: (0.54)] [added: 6.09] | | | | | [added: $] | [removed: 1.33] [added: 5.30] | | | | | [added: $] | 3.24 | | [removed: |]

[Table of [removed: Contents](#i1f60984bb51544a482851b08d4a3bf6b_7)][added: Contents](#i516b66c1c1ab48168478bc517c9ed3d2_7)]

We have audited the accompanying consolidated balance sheets of ResMed Inc. and subsidiaries (the Company) as of June 30, [removed: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] the related consolidated statements of income, comprehensive income, stockholders’ equity, and cash flows for each of the years in the three-year period ended June 30, [removed: 2022,] [added: 2023,] and the related notes and financial statement schedule II (collectively, the consolidated financial statements).

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of June 30, [removed: 2022] [added: 2023] and [removed: 2021,] [added: 2022,] and the results of its operations and its cash flows for each of the years in the three-year period ended June 30, [removed: 2022,] [added: 2023,] in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of June 30, [removed: 2022,] [added: 2023,] based on criteria established in Internal Control [removed: –] [added: -] Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated August [removed: 11, 2022] [added: 10, 2023] expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

*Critical Audit [removed: Matter*][added: Matters*]

The critical audit [removed: matter] [added: matters] communicated below [removed: is a matter] [added: are matters] arising from the current period audit of the consolidated financial statements that [removed: was] [added: were] communicated or required to be communicated to the audit committee and that: (1) [removed: relates] [added: relate] to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments.