Resmed RMD · USD

Segment Information We have two operating segments, which are the Sleep and Breathing Health segment and the Residential Care Software segment. During fiscal year 2025, we renamed our operating segments from Sleep and Respiratory Care to Sleep and Breathing Health and from Software as a Service to Residential Care Software in alignment with our 2030 strategy. There have been no changes in the preparation and disclosure of financial information by operating segment. The identification of operating segments is based on our internal organizational structure and the information regularly reviewed by our Chief Executive Officer, who is our Chief Operating Decision Maker (CODM). Our CODM evaluates segment performance and makes resource allocation decisions based on net revenue and net operating profit. Impacts to segment net operating profit are referenced by our CODM when deciding to enter new markets, launch new products, reinvest profits, acquire or otherwise invest in other companies, and for monitoring actual results against forecasts. The accounting policies of the segments are the same as those described in Note 2 – Summary of Significant Accounting Policies. Segment net sales and segment net operating profit do not include inter-segment profits and revenue is allocated to a geographic area based on where the products are shipped to or where the services are performed.Certain items are maintained at the corporate level and are not allocated to the segments. The non-allocated items include corporate headquarters costs, stock-based compensation, amortization expense from acquired intangibles, restructuring expenses, field safety notification expenses, acquisition related expenses, net interest expense (income), gains and losses attributable to equity method investments, gains and losses on equity investments, and other, net. We neither discretely allocate assets to our operating segments, nor does our CODM evaluate the operating segments using discrete asset information.Additionally, effective in the third quarter of fiscal year 2024, we updated the method of attribution of certain costs that are principally managed at the segment level as part of our evaluation of segment operating performance.

Debt Debt at June 30, 2025 and June 30, 2024 consists of the following (in thousands): 20252024Short-term debt$10,000 $10,000 Deferred borrowing costs(100)(100)Short-term debt, net$9,900 $9,900 Long-term debt$660,000 $700,000 Deferred borrowing costs(1,608)(2,687)Long-term debt, net$658,392 $697,313 Total debt$668,292 $707,213 Credit FacilityOn June 29, 2022, we entered into a second amended and restated credit agreement, or the Revolving Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger, sole book runner, swing line lender and letter of credit issuer, Westpac Banking Corporation, as syndication agent and joint lead arranger, HSBC Bank USA, National Association, as syndication agent and joint lead arranger, and Wells Fargo Bank, National Association, as documentation agent. The Revolving Credit Agreement, among other things, provided a senior unsecured revolving credit facility of $1,500.0 million, with an uncommitted option to increase the revolving credit facility by an additional amount equal to the greater of $1,000.0 million or 1.0 times the EBITDA (as defined in the Revolving Credit Agreement) for the trailing twelve-month measurement period. The Revolving Credit Agreement amends and restates that certain Amended and Restated Credit Agreement, dated as of April 17, 2018, among Resmed, MUFG Union Bank, N.A., Westpac Banking Corporation and the lenders party thereto.Additionally, on June 29, 2022, ResMed Pty Limited entered into a Second Amendment to the Syndicated Facility Agreement and First Amendment to Unconditional Guaranty Agreement, or the Term Credit Agreement, as borrower, with lenders MUFG Union Bank, N.A., as administrative agent, joint lead arranger and joint book runner, and Westpac Banking Corporation, as syndication agent, joint lead arranger and joint book runner, which amends that certain Syndicated Facility Agreement dated as of April 17, 2018. The Term Credit Agreement, among other things, provides ResMed Pty Limited a senior unsecured term credit facility of $200.0 million. Our obligations under the Revolving Credit Agreement are guaranteed by certain of our direct and indirect U.S. subsidiaries, and ResMed Pty Limited’s obligations under the Term Credit Agreement are guaranteed by us and certain of our direct and indirect U.S. subsidiaries.

Income Taxes Income before income taxes for the years ended June 30, 2025, 2024 and 2023, was taxed under the following jurisdictions (in thousands): 202520242023U.S.$359,741 $181,107 $128,589 Non-U.S.1,317,825 1,083,691 973,075 Income before income taxes$1,677,566 $1,264,798 $1,101,664 The provision for income taxes is presented below (in thousands): 202520242023Current:Federal$19,744 $57,103 $36,631 State19,919 17,250 14,142 Non-U.S.298,170 219,372 198,767 337,833 293,725 249,540 Deferred: Federal(5,701)(22,915)(21,721)State(1,231)(4,632)(2,389)Non-U.S.(54,058)(22,331)(21,322)(60,990)(49,878)(45,432)Provision for income taxes$276,843 $243,847 $204,108 The provision for income taxes differs from the amount of income tax determined by applying the applicable U.S. federal income tax rate of 21% for the years ended June 30, 2025, 2024 and 2023, to pretax income as a result of the following (in thousands): 202520242023Taxes computed at statutory U.S. rate$352,289 $265,608 $231,349 Increase (decrease) in income taxes resulting from:State income taxes, net of U.S. tax benefit15,590 8,609 9,448 Research and development credit(28,859)(27,786)(21,481)Change in valuation allowance20,644 849 (5,007)Effect of non-U.S.

Leases(a)Leases where Resmed is the LesseeWe determine whether a contract is, or contains, a lease at inception. Right of use, or ROU, assets represent our right to use an underlying asset during the lease term, and lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at lease commencement based upon the estimated present value of unpaid lease payments over the lease term. We use our incremental borrowing rate based on the information available at lease commencement in determining the present value of unpaid lease payments. ROU assets also include any lease payments made at or before lease commencement and any initial direct costs incurred and exclude any lease incentives received.We determine the lease term as the non-cancellable period of the lease and may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Leases with a term of 12 months or less are not recognized on the balance sheet. Some of our leases include variable lease payments that are based on costs incurred or actual usage or adjusted periodically based on an index or a rate. Our leases do not contain any residual value guarantees and we do not account for lease and non-lease components as a single lease component. Operating leases are included in operating lease right-of-use assets and operating lease liabilities on our consolidated balance sheets. We lease certain office space, warehouses and distribution centers, manufacturing facilities, vehicles, and equipment with remaining lease terms ranging from less than 1 year to 17 years, some of which include options to extend or terminate the leases.Operating lease costs for the years ended June 30, 2025, 2024 and 2023 were $39.0 million, $40.8 million and $33.6 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2025, 2024 and 2023. Future lease payments under non-cancellable operating leases as of June 30, 2025 are as follows (in thousands):Total20262027202820292030ThereafterMinimum lease payments$216,318 $36,501 $30,216 $24,367 $22,566 $19,056 $83,612 Less: imputed interest(32,797)Total lease liabilities$183,521 As of June 30, 2025, future operating lease commitments for leases that have not yet commenced were not material.

We seek to address cybersecurity risks through a cross-functional approach that is focused on preserving the confidentiality, integrity, and availability of the information that we collect and store by identifying, preventing, and mitigating cybersecurity threats and effectively responding to cybersecurity incidents when they occur. Our cybersecurity program is designed to protect information and information systems from unauthorized access, use, disclosure, disruption, modification, or destruction. Our management team has adopted policies, standards, processes, and practices and implemented controls and procedures that allow us to assess, identify and manage material risks from cybersecurity threats enabling our board of directors to actively oversee the strategic direction, objectives, and effectiveness of our cybersecurity risk management framework. Our processes are integrated into our overall enterprise risk management program, as implemented by management and as overseen by our board of directors. Our board of directors has an important role in risk oversight. To identify and assess material risks from cybersecurity threats, we use a risk assessment process aligned with standard industry frameworks such as the National Institute of Standards and Technology, or NIST, International Organization for Standardization, or ISO, 27001 and other industry standards. We engage in regular network and endpoint monitoring, vulnerability assessments, and penetration testing, among other exercises. We continuously monitor threats and unauthorized access to our network through both internal and external third-party resources. We have developed incident response plans which include triage, assessing the severity of incidents, escalation protocols, containment of incidents, investigation of incidents, and remediation. We provide annual privacy and security training for all employees which incorporates awareness of cyber threats (including but not limited to malware, ransomware, and social engineering attacks), password hygiene and incident reporting processes. We have also implemented processes to identify, monitor and address material risks from cybersecurity threats associated with our use of critical third-party service providers, including those in our supply chain or who have access to our systems, data or facilities that house such systems or data.

DOCUMENTS INCORPORATED BY REFERENCEPortions of the registrant’s definitive Proxy Statement to be delivered to stockholders in connection with the registrant’s 2025 Annual Meeting of Stockholders, to be filed within 120 days after the end of the fiscal year covered by this Form 10-K, are incorporated by reference into Part III of this report.

InvestmentsEquity investments by measurement category as of June 30, 2025 and June 30, 2024 were as follows (in thousands):Measurement category20252024Fair value$13,080 $12,026 Measurement alternative63,642 73,739 Equity method76,178 65,462 Total$152,900 $151,227 The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2025 (in thousands):Non-marketable securitiesMarketable securitiesEquity method investmentsTotalBalance at the beginning of the period$73,739 $12,026 $65,462 $151,227 Additions to investments5,778 — 638 6,416 Impairment of investments(11,742)— — (11,742)Realized gains on marketable and non-marketable equity securities389 — — 389 Proceeds from exits of investments(4,628)— — (4,628)Unrealized gains on marketable equity securities— 1,054 — 1,054 Gain attributable to equity method investments— — 3,644 3,644 Foreign currency translation adjustments106 — 6,434 6,540 Carrying value at the end of the period$63,642 $13,080 $76,178 $152,900 The following table shows a reconciliation of the changes in our equity investments for the year ended June 30, 2024 (in thousands):Non-marketable securitiesMarketable securitiesEquity method investmentsTotalBalance at the beginning of the period$68,748 $12,423 $65,366 $146,537 Additions to investments8,640 1,000 3,125 12,765 Observable price adjustments on non-marketable equity securities2,315 — — 2,315 Impairment of investments(4,963)— — (4,963)Proceeds from exits of investments(1,000)— — (1,000)Unrealized losses on marketable equity securities— (1,397)— (1,397)Loss attributable to equity method investments— — (1,848)(1,848)Foreign currency translation adjustments(1)— (1,181)(1,182)Carrying value at the end of the period$73,739 $12,026 $65,462 $151,227 Net unrealized gains and losses recognized in the years ended June 30, 2025, 2024 and 2023 for equity investments in non-marketable and marketable securities still held as of those respective dates were a loss of $10.7 million, a loss of $4.0 million, and a gain of $6.0 million, respectively.

Accrued Expenses Accrued expenses at June 30, 2025 and June 30, 2024 consist of the following (in thousands): 20252024Product warranties$37,230 $35,134 Consulting and professional fees40,297 27,143 Value added taxes and other taxes due35,584 27,016 Employee related costs235,450 223,862 Promotional and marketing9,391 6,023 Foreign currency hedging instruments2,695 4,654 Accrued interest8,642 9,206 Logistics and occupancy costs13,982 17,996 Inventory in transit6,063 8,045 Other12,919 18,599 Total accrued expenses$402,253 $377,678