RESMED INCRMD

RESMED INC Goodwill & Intangibles Disclosure

10-KFiled Aug 8, 20252 min read
Goodwill and Other Intangible Assets, net
Goodwill
For each of the years ended June 30, 2025 and June 30, 2024, we have not recorded any goodwill impairments. Changes in the carrying amount of goodwill is comprised of the following for the year ended June 30, 2025 (in thousands):
2025
Sleep and Breathing Health
Residential Care Software
Total
Balance at the beginning of the period$757,529 $2,084,526 $2,842,055 
Business acquisitions101,323 — 101,323 
Adjustment to fair values of preliminary purchase price allocations(185)— (185)
Foreign currency translation adjustments24,911 78,576 103,487 
Balance at the end of the period$883,578 $2,163,102 $3,046,680 
Other Intangible Assets
Other intangibles, net are comprised of the following as of June 30, 2025 and June 30, 2024 (in thousands):
20252024
Developed/core product technology$396,242 $384,679 
Accumulated amortization(315,032)(280,970)
Developed/core product technology, net81,210 103,709 
Customer relationships475,541 432,470 
Accumulated amortization(189,050)(150,486)
Customer relationships, net286,491 281,984 
Other intangibles267,499 252,210 
Accumulated amortization(170,339)(151,999)
Other intangibles, net97,160 100,211 
Total other intangibles, net$464,861 $485,904 
Intangible assets consist of developed/core product technology, trade names, non-compete agreements, customer relationships, and patents, and we amortize them over the estimated useful life of the assets, generally between two years and fifteen years. There are no expected residual values related to these intangible assets.
Amortization expense related to identified intangible assets for the years ended June 30, 2025 and June 30, 2024 was $77.4 million and $79.5 million, respectively. Amortization expense related to patents, included in other intangibles, for the years ended June 30, 2025 and June 30, 2024 was $8.2 million and $7.6 million, respectively. Total estimated annual amortization expense for the years ending June 30, 2026 through June 30, 2030, is shown below (in thousands):
Fiscal Years Ending June 30
20262027202820292030
Estimated amortization expense$84,859 $65,853 $57,248 $50,983 $45,795 

Historical Timeline

Fiscal YearFiled
2025Aug 8, 2025Showing above
2024Aug 9, 2024
2023Aug 11, 2023
2022Aug 12, 2022
2021Aug 17, 2021
2020Aug 13, 2020
2019Aug 8, 2019
2018Aug 17, 2018
2017Aug 4, 2017
2016Aug 5, 2016

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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