RESMED INC (RMD) · Material Event (8-K) SEC Filing

EX-99.1 2 d158732dex991.htm EX-99.1 EX-99.1 Exhibit 99.1 For investors For media +1 858-221-3304 +1 619-510-1281 [email protected] [email protected] Resmed Inc. Announces Results for the Fourth Quarter of Fiscal Year 2026 Q4 revenue increased by 9% to a record $1.5 billion; up 8% on a constant currency basis Q4 GAAP diluted earnings per share up 2% to $2.64; non-GAAP diluted earnings per share up 16% to $2.95 Returned $1.0 billion to shareholders through share repurchases and dividends during FY2026, an increase of more than 70% Note: A webcast of Resmed s conference call will be available at 4:30 p.m. ET today at http://investor.resmed.com SAN DIEGO, August 6, 2026 Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended June 30, 2026. We closed fiscal year 2026 with strong fourth quarter results, reflecting continued momentum of our global business, sustained demand for our market-leading products, and disciplined execution of our strategy, said Resmed s Chairman and CEO, Mick Farrell. Year-over-year, we delivered 9% reported revenue growth, 90 basis points of gross margin expansion, and a 16% increase in earnings per share. For full year 2026, our $1.6 billion in free cash flow enabled us to invest in innovation, strengthen our market leadership, and return more than $1 billion to our shareholders. As we enter fiscal year 2027, we will leverage our global scale and enhance our digital capabilities to benefit our patients, providers, and customers. We will use our industry-leading portfolio to improve patient outcomes, reduce healthcare costs, and drive long-term profitable growth for our shareholders. Financial Highlights FY 2026 revenue increased by 10% to $5.7 billion; up 8% on a constant currency basis FY 2026 GAAP gross margin up 170 bps to 61.1%; non-GAAP gross margin up 240 bps to 62.4% FY 2026 GAAP operating margin up 70 bps to 33.4%, non-GAAP operating margin up 180 bps to 36.1% FY 2026 GAAP diluted earnings per share of $10.43; non-GAAP diluted earnings per share of $11.17, an increase of 17% FY 2026 operating cash flow of $1.8 billion; free cash flow of $1.6 billion Guiding to more than $1.85 billion in capital to be returned to shareholders through share repurchases and dividends during FY 2027; announced quarterly dividend increase of 10% to $0.66 per quarter Other Business and Operational Highlights Announced agreement to sell MatrixCare business; transaction expected to close during the first quarter of Resmed s fiscal year 2027. Completed acquisition of Noctrix Health, a medical device company selling FDA De Novo classified wearable therapeutics for Restless Leg Syndrome, or RLS. Partnered with URA to expand access to sleep health education and pathways to care, helping more people sleep better and improve their overall health. Following other successful launches in APAC, EMEA and the Americas, launched AirSense 11 in Taiwan. Additionally, launched AirCurve 11 ST/ST-A in the U.S. and AirTouch F30i Comfort in Brazil and Chile. RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 2 of 10 Financial Results and Operating Metrics Unaudited; $ in millions, except for per share amounts Three Months Ended June 30,2026 June 30,2025 % Change ConstantCurrency (A) Revenue $ 1,464 $ 1,348 9 % 8 % Gross margin 58.8 % 60.8 % (200) bps Non-GAAP gross margin (B) 62.3 % 61.4 % 90 bps Research and development expenses 106 86 22 19 Selling, general, and administrative expenses 296 267 11 8 Non-GAAP selling, general, and administrative expenses(B) 291 265 10 7 Income from operations 449 455 (1) Operating margin 30.7 % 33.7 % (300) bps Non-GAAP income from operations (B) 515 476 8 Non-GAAP operating margin 35.2 % 35.3 % (10) bps Net income 383 380 1 Non-GAAP net income (B) 428 375 14 Diluted earnings per share $ 2.64 $ 2.58 2 Non-GAAP diluted earnings per share (B) $ 2.95 $ 2.55 16 Operating cash flow 455 539 (16) Free cash flow(C) 404 508 (21) Twelve Months Ended June 30,2026 June 30,2025 % Change ConstantCurrency (A) Revenue $ 5,653 $ 5,146 10 % 8 % Gross margin 61.1 % 59.4 % 170 bps Non-GAAP gross margin (B) 62.4 % 60.0 % 240 bps Research and development expenses 378 331 14 12 Selling, general, and administrative expenses 1,120 993 13 10 Non-GAAP selling, general, and administrative expenses(B) 1,108 991 12 9 Income from operations 1,887 1,685 12 Operating margin 33.4 % 32.7 % 70 bps Non-GAAP income from operations (B) 2,039 1,763 16 Non-GAAP operating margin 36.1 % 34.3 % 180 bps Net income 1,523 1,401 9 Non-GAAP net income (B) 1,632 1,407 16 Diluted earnings per share $ 10.43 $ 9.51 10 Non-GAAP diluted earnings per share (B) $ 11.17 $ 9.55 17 Operating cash flow 1,806 1,752 3 Free cash flow(C) 1,650 1,662 (1 ) (A) In order to provide a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency fluctuations, we provide certain financial information on a constant currency basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP. (B) See the reconciliation of non-GAAP financial measures in the table at the end of the press release. (C) Free cash flow is equal to operating cash flow less purchases of property, plant and equipment. RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 3 of 10 Discussion of Fourth Quarter Results All comparisons are to the prior year period unless otherwise noted Strong revenue growth: Revenue increased 9% (8% in constant currency) to approximately $1.5 billion, driven by strong demand across sleep devices, masks, accessories, and software solutions. Global momentum: Americas Sleep and Breathing Health revenue grew 8%, Rest of World Sleep and Breathing Health grew 10% in constant currency, and Residential Care Software revenue increased 2% in constant currency. Healthy profitability: GAAP gross margin of 58.8%. Non-GAAP gross margin increased 90 basis points to 62.3%, predominantly from productivity pipeline execution. The primary difference is our $42 million Astral field safety notification expenses. Robust earnings growth: GAAP income from operations of $449 million and GAAP diluted earnings per share of $2.64. Non-GAAP income from operations increased 8% and non-GAAP diluted earnings per share grew 16% to $2.95, predominantly attributable to strong sales growth and gross margin improvement. Strong cash generation: Operating cash flow totaled $455 million and free cash flow totaled $404 million, supporting $287 million returned to shareholders through dividends and share repurchases while maintaining investment in innovation and growth initiatives. Dividend program The Resmed board of directors today declared a quarterly cash dividend of $0.66 per share, representing an increase of 10% over our previous quarterly dividend. The dividend will have a record date of August 20, 2026, payable on September 24, 2026. The dividend will be paid in U.S. currency to holders of Resmed s common stock trading on the New York Stock Exchange. Holders of CHESS Depositary Interests ( CDIs ) trading on the Australian Securities Exchange will receive an equivalent amount in Australian currency, based on the exchange rate on the record date, and reflecting the 10:1 ratio between CDIs and NYSE shares. The ex-dividend date will be August 19, 2026, for common stockholders and for CDI holders. Resmed has received a waiver from the ASX s settlement operating rules, which will allow Resmed to defer processing conversions between its common stock and CDI registers from August 19, 2026, through August 20, 2026, inclusive. Webcast details Resmed will discuss its fourth quarter fiscal year 2026 results on its webcast at 1:30 p.m. U.S. Pacific Time today. The live webcast of the call can be accessed on Resmed s Investor Relations website at investor.resmed.com. Please go to this section of the website and click on the icon for the Q4 2026 Earnings Webcast to register and listen to the live webcast. A replay of the earnings webcast will be accessible on the website and available approximately two hours after the live webcast. In addition, a telephone replay of the conference call will be available approximately three hours after the webcast by dialing +1 877-660-6853 (U.S.) or +1 201-612-7415 (outside U.S.) and entering the passcode 13761408. The telephone replay will be available until August 20, 2026. About Resmed Resmed (NYSE: RMD, ASX: RMD) creates life-changing health technologies that people love. We re relentlessly committed to pioneering innovative technology to empower millions of people in 140 countries to live happier, healthier lives. Our AI-powered digital health solutions, cloud-connected devices and intelligent software make home healthcare more personalized, accessible and effective. Ultimately, Resmed envisions a world where every person can achieve their full potential through better sleep and breathing, with care delivered in their own home. Learn more about how we re redefining sleep health at Resmed.com and follow @Resmed. RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 4 of 10 Safe harbor statement Statements contained in this release that are not historical facts are forward-looking statements as contemplated by the Private Securities Litigation Reform Act of 1995. These forward-looking statements including statements regarding Resmed s projections of future revenue or earnings, expenses, new product development, new product launches, new markets for its products, the integration of acquisitions, our supply chain, domestic and international regulatory developments, litigation, tax outlook, and the expected impact of macroeconomic conditions of our business are subject to risks and uncertainties, which could cause actual results to materially differ from those projected or implied in the forward-looking statements. Additional risks and uncertainties are discussed in Resmed s periodic reports on file with the U.S. Securities & Exchange Commission. Resmed does not undertake to update its forward-looking statements. More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 5 of 10 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Operations (Unaudited; $ in thousands, except for per share amounts) Three Months Ended Twelve Months Ended June 30,2026 June 30,2025 June 30,2026 June 30,2025 Net revenue $ 1,463,647 $ 1,347,993 $ 5,653,443 $ 5,146,327 Cost of sales 552,245 520,068 2,128,040 2,060,753 Amortization of acquired intangibles (1) 8,301 9,367 31,779 32,116 Masks with magnets field safety notification expenses (1) (1,512 ) (1,512 ) Astral field safety notification expenses (1) 41,885 41,885 Total cost of sales $ 602,431 $ 527,923 $ 2,201,704 $ 2,091,357 Gross profit $ 861,216 $ 820,070 $ 3,451,739 $ 3,054,970 Research and development 105,726 86,443 378,285 331,284 Selling, general, and administrative 290,655 265,125 1,108,042 991,019 Acquisition and portfolio review related expenses (1) 5,628 2,031 11,486 2,031 Total selling, general, and administrative 296,283 267,156 1,119,528 993,050 Amortization of acquired intangibles (1) 10,499 11,928 45,466 45,273 Restructuring expenses (1) 21,745 Total operating expenses $ 412,508 $ 365,527 $ 1,565,024 $ 1,369,607 Income from operations $ 448,708 $ 454,543 $ 1,886,715 $ 1,685,363 Other income (expenses), net: Interest (expense) income, net $ 20,885 $ 5,757 $ 49,914 $ 4,114 Gain (loss) attributable to equity method investments 2,232 1,269 6,955 3,644 Gain (loss) on equity investments 1,001 (2,533 ) (15,014 ) (10,299 ) Other, net 1,338 (983 ) (9,154 ) (5,256 ) Total other income (expenses), net 25,456 3,510 32,701 (7,797 ) Income before income taxes $ 474,164 $ 458,053 $ 1,919,416 $ 1,677,566 Income taxes 90,732 78,348 396,123 276,843 Net income $ 383,432 $ 379,705 $ 1,523,293 $ 1,400,723 Basic earnings per share $ 2.65 $ 2.59 $ 10.47 $ 9.55 Diluted earnings per share $ 2.64 $ 2.58 $ 10.43 $ 9.51 Non-GAAP diluted earnings per share (1) $ 2.95 $ 2.55 $ 11.17 $ 9.55 Basic shares outstanding 144,706 146,472 145,523 146,716 Diluted shares outstanding 144,976 147,037 146,054 147,340 (1) See the reconciliation of non-GAAP financial measures in the table at the end of the press release. More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 6 of 10 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Balance Sheets (Unaudited; $ in thousands) June 30,2026 June 30,2025 Assets Current assets: Cash and cash equivalents $ 1,469,234 $ 1,209,450 Accounts receivable, net 1,036,233 939,492 Inventories 945,805 927,711 Prepayments and other current assets 416,081 428,952 Assets held for sale $ 457,386 $ Total current assets $ 4,324,739 $ 3,505,605 Non-current assets: Property, plant, and equipment, net $ 581,829 $ 550,790 Operating lease right-of-use assets 153,167 167,497 Goodwill and other intangibles, net 3,362,312 3,511,541 Deferred income taxes and other non-current assets 543,903 438,958 Total non-current assets $ 4,641,211 $ 4,668,786 Total assets $ 8,965,950 $ 8,174,391 Liabilities and Stockholders Equity Current liabilities: Accounts payable $ 308,923 $ 278,157 Accrued expenses 494,921 402,253 Operating lease liabilities, current 29,141 30,506 Deferred revenue 162,911 166,030 Income taxes payable 98,108 132,274 Short-term debt 259,950 9,900 Liabilities held for sale $ 41,156 $ Total current liabilities $ 1,395,110 $ 1,019,120 Non-current liabilities: Deferred revenue $ 170,951 $ 156,803 Deferred income taxes 64,640 77,682 Operating lease liabilities, non-current 137,413 153,015 Other long-term liabilities 213,028 141,520 Long-term debt 399,415 658,392 Total non-current liabilities $ 985,447 $ 1,187,412 Total liabilities $ 2,380,557 $ 2,206,532 Stockholders equity Common stock $ 764 $ 761 Additional paid-in capital 2,190,614 2,033,599 Retained earnings 7,255,121 6,081,490 Treasury stock (2,778,591 ) (2,073,292 ) Accumulated other comprehensive income (82,515 ) (74,699 ) Total stockholders equity $ 6,585,393 $ 5,967,859 Total liabilities and stockholders equity $ 8,965,950 $ 8,174,391 More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 7 of 10 RESMED INC. AND SUBSIDIARIES Condensed Consolidated Statements of Cash Flows (Unaudited; $ in thousands) Three Months Ended Twelve Months Ended June 30,2026 June 30,2025 June 30,2026 June 30,2025 Cash flows from operating activities: Net income $ 383,432 $ 379,705 $ 1,523,293 $ 1,400,723 Adjustment to reconcile net income to cash provided by operating activities: Depreciation and amortization 44,778 63,628 201,342 198,473 Amortization of right-of-use assets 10,343 10,660 42,810 37,338 Stock-based compensation costs 27,458 24,751 104,348 91,661 (Gain) loss attributable to equity method investments, net of dividends received 2,340 (1,269 ) (2,382 ) (3,644 ) (Gain) loss on equity investments (1,000 ) 2,533 15,014 10,299 Gain on previously held equity investment (4,353 ) (4,353 ) Changes in operating assets and liabilities: Accounts receivable, net (37,209 ) (5,215 ) (96,778 ) (76,684 ) Inventories, net (33,866 ) (32,133 ) (9,920 ) (80,165 ) Prepaid expenses, net deferred income taxes and other current assets 12,150 47,017 (140,260 ) 82,629 Accounts payable, accrued expenses, income taxes payable and other 50,558 49,089 172,715 90,958 Net cash provided by (used in) operating activities $ 454,631 $ 538,766 $ 1,805,829 $ 1,751,588 Cash flows from investing activities: Purchases of property, plant, and equipment (51,127 ) (30,585 ) (156,285 ) (89,865 ) Patent registration and acquisition costs (5,384 ) (3,193 ) (18,670 ) (10,777 ) Purchases of intangible assets (739 ) (2,218 ) Business acquisitions, net of cash acquired (325,319 ) (138,578 ) (350,724 ) (139,248 ) Purchases of investments (2,000 ) (2,013 ) (28,536 ) (6,416 ) Proceeds from exits of investments 250 2,752 4,628 Proceeds (payments) on maturity of foreign currency contracts 918 40,406 8,482 41,633 Net cash provided by (used in) investing activities $ (383,651 ) $ (133,713 ) $ (545,199 ) $ (200,045 ) Cash flows from financing activities: Proceeds from issuance of common stock, net 29,314 30,156 74,503 74,439 Purchases of treasury stock (200,000 ) (100,008 ) (700,037 ) (300,025 ) Acquisition of consolidated subsidiary (10,855 ) (10,855 ) Taxes paid related to net share settlement of equity awards (388 ) (590 ) (21,833 ) (18,077 ) Payments of business combination contingent consideration (855 ) Repayment of borrowings (5,000 ) (5,000 ) (10,000 ) (40,000 ) Dividends paid (87,090 ) (77,590 ) (349,662 ) (310,880 ) Net cash provided by (used in) financing activities $ (263,164 ) $ (163,887 ) $ (1,007,029 ) $ (606,253 ) Effect of exchange rate changes on cash $ 905 $ 35,573 $ 6,183 $ 25,799 Net increase (decrease) in cash and cash equivalents (191,279 ) 276,739 259,784 971,089 Cash and cash equivalents at beginning of period 1,660,513 932,711 1,209,450 238,361 Cash and cash equivalents at end of period $ 1,469,234 $ 1,209,450 $ 1,469,234 $ 1,209,450 More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 8 of 10 RESMED INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited; $ in thousands, except for per share amounts) The measures non-GAAP gross profit and non-GAAP gross margin exclude amortization expense from acquired intangibles and field safety notification expenses and are reconciled below: Three Months Ended Twelve Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenue $ 1,463,647 $ 1,347,993 $ 5,653,443 $ 5,146,327 GAAP cost of sales $ 602,431 $ 527,923 $ 2,201,704 $ 2,091,357 Less: Amortization of acquired intangibles (A) (8,301 ) (9,367 ) (31,779 ) (32,116 ) Less: Masks with magnets field safety notification expenses (A) 1,512 1,512 Less: Astral field safety notification expenses (A) (41,885 ) (41,885 ) Non-GAAP cost of sales $ 552,245 $ 520,068 $ 2,128,040 $ 2,060,753 GAAP gross profit $ 861,216 $ 820,070 $ 3,451,739 $ 3,054,970 GAAP gross margin 58.8 % 60.8 % 61.1 % 59.4 % Non-GAAP gross profit $ 911,402 $ 827,925 $ 3,525,403 $ 3,085,574 Non-GAAP gross margin 62.3 % 61.4 % 62.4 % 60.0 % The measures non-GAAP selling, general, and administrative expenses and non-GAAP selling, general, and administrative expenses as a percentage of revenues exclude acquisition and portfolio review related expenses and are reconciled below: Three Months Ended Twelve Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 Revenue $ 1,463,647 $ 1,347,993 $ 5,653,443 $ 5,146,327 GAAP selling, general, and administrative 296,283 267,156 1,119,528 993,050 Less: Acquisition and portfolio review related expenses (A) (5,628 ) (2,031 ) (11,486 ) (2,031 ) Non-GAAP selling, general, and administrative 290,655 265,125 1,108,042 991,019 As a percentage of revenue: GAAP selling, general, and administrative expenses 20.2 % 19.8 % 19.8 % 19.3 % Non-GAAP selling, general, and administrative expenses 19.9 % 19.7 % 19.6 % 19.3 % More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 9 of 10 RESMED INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited; $ in thousands, except for per share amounts) The measure non-GAAP income from operations is reconciled with GAAP income from operations below: Three Months Ended Twelve Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP income from operations $ 448,708 $ 454,543 $ 1,886,715 $ 1,685,363 Amortization of acquired intangibles cost of sales (A) 8,301 9,367 31,779 32,116 Amortization of acquired intangibles operating expenses (A) 10,499 11,928 45,466 45,273 Restructuring (A) 21,745 Masks with magnets field safety notification expenses (A) (1,512 ) (1,512 ) Astral field safety notification expenses (A) 41,885 41,885 Acquisition and portfolio review related expenses (A) 5,628 2,031 11,486 2,031 Non-GAAP income from operations $ 515,021 $ 476,357 $ 2,039,076 $ 1,763,271 The measures non-GAAP net income and non-GAAP diluted earnings per share are reconciled with GAAP net income and GAAP diluted earnings per share in the table below: Three Months Ended Twelve Months Ended June 30, 2026 June 30, 2025 June 30, 2026 June 30, 2025 GAAP net income $ 383,432 $ 379,705 $ 1,523,293 $ 1,400,723 Amortization of acquired intangibles cost of sales (A) 8,301 9,367 31,779 32,116 Amortization of acquired intangibles operating expenses (A) 10,499 11,928 45,466 45,273 Restructuring expenses (A) 21,745 Gain on previously held equity investment(A) (4,353 ) (4,353 ) Masks with magnets field safety notification expenses (A) (1,512 ) (1,512 ) Astral field safety notification expenses (A) 41,885 41,885 Acquisition and portfolio review related expenses (A) 5,628 2,031 11,486 2,031 Tax benefit from business cessation(A) (21,430 ) (21,430 ) Income tax effect of interest and penalties on income tax refunds (A) (29,976 ) Income tax effect on non-GAAP adjustments (A) (17,059 ) (5,544 ) (39,453 ) (20,448 ) Non-GAAP net income (A) $ 428,333 $ 374,545 $ 1,631,848 $ 1,406,777 GAAP diluted shares outstanding 144,976 147,037 146,054 147,340 GAAP diluted earnings per share $ 2.64 $ 2.58 $ 10.43 $ 9.51 Non-GAAP diluted earnings per share (A) $ 2.95 $ 2.55 $ 11.17 $ 9.55 (A) Resmed adjusts for the impact of the amortization of acquired intangibles, restructuring expenses, gains on previously held equity investments, field safety notification expenses, acquisition and portfolio review related expenses and associated tax effects, in addition to tax benefits from business cessation, and the tax effect of interest and penalties on tax refunds from their evaluation of ongoing operations, and believes that investors benefit from adjusting these items to facilitate a more meaningful evaluation of current operating performance. Resmed believes that non-GAAP diluted earnings per share is an additional measure of performance that investors can use to compare operating results between reporting periods. Resmed uses non-GAAP information internally in planning, forecasting, and evaluating the results of operations in the current period and in comparing it to past periods. Resmed believes this information provides investors better insight when evaluating Resmed s performance from core operations and provides consistent financial reporting. The use of non-GAAP measures is intended to supplement, and not to replace, the presentation of net income and other GAAP measures. Like all non-GAAP measures, non-GAAP earnings are subject to inherent limitations because they do not include all the expenses that must be included under GAAP. More RMD Fourth Quarter 2026 Earnings Press Release August 6, 2026 Page 10 of 10 RESMED INC. AND SUBSIDIARIES Revenue by Product and Region (Unaudited; $ in millions, except for per share amounts) Three Months Ended June 30,2026 (A) June 30,2025 (A) % Change ConstantCurrency (B) Americas (C) Devices $ 459 $ 433 6 % Masks and other 394 359 10 Total Americas (C) $ 853 $ 792 8 Rest of World (C) Devices $ 291 $ 261 12 % 9 % Masks and other 148 128 16 12 Total Rest of World (C) $ 439 $ 389 13 10 Global revenue Total Devices $ 750 $ 694 8 % 7 % Total Masks and other 542 487 11 10 Total Sleep and Breathing Health $ 1,292 $ 1,181 9 8 Residential Care Software 172 167 3 2 Total $ 1,464 $ 1,348 9 8 Twelve Months Ended June 30,2026 (A) June 30,2025 (A) %Change ConstantCurrency (B) Americas (C) Devices $ 1,768 $ 1,654 7 % Masks and other 1,513 1,343 13 Total Americas (C) $ 3,281 $ 2,998 9 Rest of World (C) Devices $ 1,124 $ 1,011 11 % 6 % Masks and other 572 497 15 9 Total Rest of World (C) $ 1,697 $ 1,507 13 7 Global revenue Total Devices $ 2,892 $ 2,665 9 % 7 % Total Masks and other 2,085 1,840 13 12 Total Sleep and Breathing Health $ 4,978 $ 4,505 10 9 Residential Care Software 676 641 5 4 Total $ 5,653 $ 5,146 10 8 (A) Totals and subtotals may not add due to rounding. (B) In order to provide a framework for assessing how our underlying businesses performed excluding the effect of foreign currency fluctuations, we provide certain financial information on a constant currency basis, which is in addition to the actual financial information presented. In order to calculate our constant currency information, we translate the current period financial information using the foreign currency exchange rates that were in effect during the previous comparable period. However, constant currency measures should not be considered in isolation or as an alternative to U.S. dollar measures that reflect current period exchange rates, or to other financial measures calculated and presented in accordance with U.S. GAAP. (C) Historically we have presented our geographical split of revenue as U.S., Canada, and Latin America and Combined Europe, Asia, and other markets . Effective this quarter, this presentation has been renamed to Americas (formerly U.S., Canada, and Latin America) and Rest of World (formerly Combined Europe, Asia, and other markets). The methodology for attributing revenue to these geographies remains unchanged. Revenue from prior periods is consistent and comparable to previous reporting. End