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Leases | 12 Months Ended
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Jun. 30, 2024
Leases [Abstract] |
Leases | Leases (a)Leases where ResMed is the Lessee We 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 15 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2024, 2023 and 2022 were $40.8 million, $33.6 million and $35.3 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2024, 2023 and 2022. Future lease payments under non-cancellable operating leases as of June 30, 2024 are as follows (in thousands):
| Total |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter
Minimum lease payments | $ | 197,933 |  |  | $ | 30,767 |  |  | $ | 26,247 |  |  | $ | 22,570 |  |  | $ | 20,454 |  |  | $ | 19,089 |  |  | $ | 78,806 |
Less: imputed interest | (31,211) |  |  |  |  |  |  |  |  |  |  |  |  |
Total lease liabilities | $ | 166,722 |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2024, future operating lease commitments for leases that have not yet commenced were not material. The supplemental information related to operating leases for the years ended June 30, 2024 and June 30, 2023 was as follows (in thousands):
| 2024 |  | 2023
Weighted-average inputs: |  |  |
Weighted-average remaining lease term (years) | 8.7 |  | 8.2
Weighted-average discount rate | 3.5 | % |  | 2.7 | %
Cash flow information: |  |  |
Operating cash flows paid for amounts included in the measurement of lease liabilities | $ | 30,573 |  |  | $ | 29,047 |
Right of use assets obtained in exchange for new lease liabilities: | $ | 54,588 |  |  | $ | 16,803 |
(b)Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily to comply with local health insurer requirements in certain foreign geographies. Device rental contracts are classified as operating leases, and contract terms vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $92.9 million, $88.6 million and $90.1 million for the years ended June 30, 2024, 2023 and 2022, respectively.
Leases | Leases (a)Leases where ResMed is the Lessee We 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 15 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2024, 2023 and 2022 were $40.8 million, $33.6 million and $35.3 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2024, 2023 and 2022. Future lease payments under non-cancellable operating leases as of June 30, 2024 are as follows (in thousands):
| Total |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter
Minimum lease payments | $ | 197,933 |  |  | $ | 30,767 |  |  | $ | 26,247 |  |  | $ | 22,570 |  |  | $ | 20,454 |  |  | $ | 19,089 |  |  | $ | 78,806 |
Less: imputed interest | (31,211) |  |  |  |  |  |  |  |  |  |  |  |  |
Total lease liabilities | $ | 166,722 |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2024, future operating lease commitments for leases that have not yet commenced were not material. The supplemental information related to operating leases for the years ended June 30, 2024 and June 30, 2023 was as follows (in thousands):
| 2024 |  | 2023
Weighted-average inputs: |  |  |
Weighted-average remaining lease term (years) | 8.7 |  | 8.2
Weighted-average discount rate | 3.5 | % |  | 2.7 | %
Cash flow information: |  |  |
Operating cash flows paid for amounts included in the measurement of lease liabilities | $ | 30,573 |  |  | $ | 29,047 |
Right of use assets obtained in exchange for new lease liabilities: | $ | 54,588 |  |  | $ | 16,803 |
(b)Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily to comply with local health insurer requirements in certain foreign geographies. Device rental contracts are classified as operating leases, and contract terms vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $92.9 million, $88.6 million and $90.1 million for the years ended June 30, 2024, 2023 and 2022, respectively.
Leases | Leases (a)Leases where ResMed is the Lessee We 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 15 years, some of which include options to extend or terminate the leases. Operating lease costs for the years ended June 30, 2024, 2023 and 2022 were $40.8 million, $33.6 million and $35.3 million, respectively. Short-term and variable lease costs were not material for the years ended June 30, 2024, 2023 and 2022. Future lease payments under non-cancellable operating leases as of June 30, 2024 are as follows (in thousands):
| Total |  | 2025 |  | 2026 |  | 2027 |  | 2028 |  | 2029 |  | Thereafter
Minimum lease payments | $ | 197,933 |  |  | $ | 30,767 |  |  | $ | 26,247 |  |  | $ | 22,570 |  |  | $ | 20,454 |  |  | $ | 19,089 |  |  | $ | 78,806 |
Less: imputed interest | (31,211) |  |  |  |  |  |  |  |  |  |  |  |  |
Total lease liabilities | $ | 166,722 |  |  |  |  |  |  |  |  |  |  |  |  |
As of June 30, 2024, future operating lease commitments for leases that have not yet commenced were not material. The supplemental information related to operating leases for the years ended June 30, 2024 and June 30, 2023 was as follows (in thousands):
| 2024 |  | 2023
Weighted-average inputs: |  |  |
Weighted-average remaining lease term (years) | 8.7 |  | 8.2
Weighted-average discount rate | 3.5 | % |  | 2.7 | %
Cash flow information: |  |  |
Operating cash flows paid for amounts included in the measurement of lease liabilities | $ | 30,573 |  |  | $ | 29,047 |
Right of use assets obtained in exchange for new lease liabilities: | $ | 54,588 |  |  | $ | 16,803 |
(b)Leases where ResMed is the Lessor We lease sleep and respiratory medical devices to customers primarily to comply with local health insurer requirements in certain foreign geographies. Device rental contracts are classified as operating leases, and contract terms vary by customer and include options to terminate or extend the contract. When lease contracts also include the sale of masks and accessories, we allocate contract consideration to those items on a relative standalone price basis and recognize revenue when control transfers to the customer. Operating lease revenue was $92.9 million, $88.6 million and $90.1 million for the years ended June 30, 2024, 2023 and 2022, respectively.

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