RESMED INCRMD
RESMED INC Segments Disclosure
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. As a result, certain costs relating to quality and regulatory assurance, commercial legal, operations, sales and marketing, customer service, information technology, and other administrative costs, which were previously included in Corporate costs within our reconciliation of segment operating profit to income before income taxes, are now reported in segment operating results. The financial information presented herein reflects the impact of the preceding reporting change for all periods presented.
The table below presents a reconciliation of net revenues, significant expenses, net operating profit and depreciation and amortization by reportable segments for the years ended June 30, 2025, 2024 and 2023 (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| Net revenue by segment | |||||||||||||||||
Sleep and Breathing Health | $ | 4,504,890 | $ | 4,101,172 | $ | 3,725,017 | |||||||||||
Residential Care Software | 641,437 | 584,125 | 497,976 | ||||||||||||||
| Total | $ | 5,146,327 | $ | 4,685,297 | $ | 4,222,993 | |||||||||||
Significant segment expenses | |||||||||||||||||
Cost of Sales | |||||||||||||||||
Sleep and Breathing Health | $ | 1,852,574 | $ | 1,782,023 | $ | 1,659,037 | |||||||||||
Residential Care Software | 195,043 | 190,186 | 174,718 | ||||||||||||||
| Total | $ | 2,047,617 | $ | 1,972,209 | $ | 1,833,755 | |||||||||||
Selling, general, and administrative | |||||||||||||||||
Sleep and Breathing Health | $ | 491,591 | $ | 451,334 | $ | 443,467 | |||||||||||
Residential Care Software(1) | 143,435 | 143,999 | 120,483 | ||||||||||||||
| Total | $ | 635,026 | $ | 595,333 | $ | 563,950 | |||||||||||
Research and development | |||||||||||||||||
Sleep and Breathing Health | $ | 196,340 | $ | 186,461 | $ | 175,393 | |||||||||||
Residential Care Software | 97,959 | 95,490 | 87,120 | ||||||||||||||
| Total | $ | 294,299 | $ | 281,951 | $ | 262,513 | |||||||||||
| Net operating profit by segment | |||||||||||||||||
Sleep and Breathing Health | $ | 1,964,385 | $ | 1,681,354 | $ | 1,447,120 | |||||||||||
Residential Care Software | 205,000 | 154,450 | 115,655 | ||||||||||||||
| Total | $ | 2,169,385 | $ | 1,835,804 | $ | 1,562,775 | |||||||||||
| Reconciling items | |||||||||||||||||
| Corporate costs | $ | 406,114 | $ | 357,937 | $ | 338,362 | |||||||||||
| Amortization of acquired intangible assets | 77,389 | 79,484 | 72,416 | ||||||||||||||
| Restructuring expenses | — | 64,228 | 9,177 | ||||||||||||||
Masks with magnets field safety notification expenses (2) | (1,512) | 6,351 | — | ||||||||||||||
Astral field safety notification expenses (3) | — | 7,911 | — | ||||||||||||||
| Acquisition related expenses | 2,031 | — | 10,949 | ||||||||||||||
| Interest (income) expense, net | (4,114) | 45,708 | 47,379 | ||||||||||||||
| (Gain) loss attributable to equity method investments | (3,644) | 1,848 | 7,265 | ||||||||||||||
| (Gain) loss on equity investments | 10,299 | 4,045 | (9,922) | ||||||||||||||
| Gain on insurance recoveries | — | — | (20,227) | ||||||||||||||
| Other, net | 5,256 | 3,494 | 5,712 | ||||||||||||||
| Income before income taxes | $ | 1,677,566 | $ | 1,264,798 | $ | 1,101,664 | |||||||||||
| Depreciation and amortization by segment | |||||||||||||||||
Sleep and Breathing Health | $ | 110,543 | $ | 86,070 | $ | 82,544 | |||||||||||
Residential Care Software | 9,467 | 10,241 | 9,119 | ||||||||||||||
| Amortization of acquired intangible assets and corporate assets | 78,463 | 80,559 | 73,493 | ||||||||||||||
| Total | $ | 198,473 | $ | 176,870 | $ | 165,156 | |||||||||||
(1) During the fiscal year ended June 30, 2024, we recorded $4.1 million of operating lease right-of-use asset impairments within our Residential Care Software segment. The impairments related to leases for office space and were recorded within selling, general and administrative expenses.
(2) The masks with magnets field safety notification expenses relate to estimated costs to provide alternative masks to patients in response to updated contraindications for use of masks that incorporate magnets.
(3) The Astral field safety notification expenses relate to estimated costs associated with the replacement of a certain component in some of our Astral ventilation devices that were manufactured between 2013 to 2019.
The following table summarizes our net revenue disaggregated by segment, product and region for the years ended June 30, 2025, 2024 and 2023 (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| U.S., Canada and Latin America | |||||||||||||||||
| Devices | $ | 1,654,413 | $ | 1,522,758 | $ | 1,444,361 | |||||||||||
| Masks and other | 1,343,101 | 1,199,798 | 1,039,026 | ||||||||||||||
| Total U.S., Canada and Latin America | $ | 2,997,514 | $ | 2,722,556 | $ | 2,483,387 | |||||||||||
| Combined Europe, Asia and other markets | |||||||||||||||||
| Devices | $ | 1,010,760 | $ | 921,253 | $ | 826,341 | |||||||||||
| Masks and other | 496,616 | 457,363 | 415,289 | ||||||||||||||
| Total Combined Europe, Asia and other markets | $ | 1,507,376 | $ | 1,378,616 | $ | 1,241,630 | |||||||||||
| Global revenue | |||||||||||||||||
| Devices | $ | 2,665,173 | $ | 2,444,011 | $ | 2,270,702 | |||||||||||
| Masks and other | 1,839,717 | 1,657,161 | 1,454,315 | ||||||||||||||
Total Sleep and Breathing Health | $ | 4,504,890 | $ | 4,101,172 | $ | 3,725,017 | |||||||||||
Residential Care Software | 641,437 | 584,125 | 497,976 | ||||||||||||||
| Total | $ | 5,146,327 | $ | 4,685,297 | $ | 4,222,993 | |||||||||||
Revenue information by geographic area for the years ended June 30, 2025, 2024 and 2023 is summarized below (in thousands):
| 2025 | 2024 | 2023 | |||||||||||||||
| United States | $ | 3,285,581 | $ | 2,980,053 | $ | 2,719,923 | |||||||||||
| Rest of the World | 1,860,746 | 1,705,244 | 1,503,070 | ||||||||||||||
| Total | $ | 5,146,327 | $ | 4,685,297 | $ | 4,222,993 | |||||||||||
Long-lived assets of geographic areas are those assets used in our operations in each geographical area, and excludes goodwill, other intangible assets, and deferred tax assets. Long-lived assets by geographic area as of June 30, 2025 and 2024 is summarized below (in thousands):
| 2025 | 2024 | ||||||||||
| Australia | $ | 170,836 | $ | 197,017 | |||||||
| United States | 180,770 | 160,606 | |||||||||
| Singapore | 98,509 | 89,679 | |||||||||
| Rest of the World | 100,675 | 100,723 | |||||||||
| Total | $ | 550,790 | $ | 548,025 | |||||||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Aug 8, 2025 | Showing above |
| 2024 | Aug 9, 2024 | |
| 2023 | Aug 11, 2023 | |
| 2022 | Aug 12, 2022 | |
| 2021 | Aug 17, 2021 | |
| 2020 | Aug 13, 2020 | |
| 2019 | Aug 8, 2019 | |
| 2018 | Aug 17, 2018 | |
| 2017 | Aug 4, 2017 | |
| 2016 | Aug 5, 2016 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.