ResMed — Apr 23, 2025 release

Exhibit 99.1     For investors    For media +1 858-836-5000    +1 619-510-1281 investorrelations@resmed.com    news@resmed.com Resmed Inc. Announces Results for the Third Quarter of Fiscal Year 2025     •   Year-over-year revenue grows 8%, operating profit up 14%, non-GAAP operating profit up 13%     •   Operating cash flow of $579 million 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, April 23, 2025 – Resmed Inc. (NYSE: RMD, ASX: RMD) today announced results for its quarter ended March 31, 2025. Third Quarter 2025 Highlights All comparisons are to the prior year period     •   Revenue increased by 8% to $1.3 billion; up 9% on a constant currency basis     •   Gross margin improved 140 bps to 59.3%; non-GAAP gross margin improved 140 bps to 59.9%     •   Income from operations increased 14%; non-GAAP income from operations up 13%     •   Operating cash flow of $579 million     •   Diluted earnings per share of $2.48; non-GAAP diluted earnings per share of $2.37 “Our positive fiscal year 2025 performance continued in the third quarter, with strong top-line revenue growth, margin expansion, and double-digit EPS growth resulting from solid customer demand for our best-in-class products and software solutions,” said Resmed’s Chairman and CEO, Mick Farrell. “We delivered 9% constant currency revenue growth and 140 bps improvement in non-GAAP gross margin. These results are evidence that sleep health customers recognize our products and software solutions as the gold standard for care. Our continued growth was achieved by the incredible commitment of our team that has created a clear market-leading value proposition in connected digital health. We remain laser-focused on continuing to address the over 2.3 billion people around the globe with sleep health and breathing health issues and all those who need world-class software for healthcare delivered at home. We will continue to drive increased patient flow as we accelerate education and awareness outreach to physicians, providers, patients, and beyond, ensuring a strong pipeline of people who need access to our products and solutions to improve their lives.” RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  2  of  10   Financial Results and Operating Metrics Unaudited; $ in millions, except for per share amounts        Three Months Ended        March 31, 2025     March 31, 2024     % Change     Constant Currency  (A)   Revenue    $ 1,291.7     $ 1,197.0       8 %      9 %  Gross margin      59.3 %      57.9 %      2     Non-GAAP gross margin  (B)      59.9 %      58.5 %      2     Selling, general, and administrative expenses      245.3       229.9       7       8   Research and development expenses      83.9       77.1       9       11   Income from operations      426.3       374.6       14     Non-GAAP income from operations  (B)      444.6       393.6       13     Net income      365.0       300.5       21     Non-GAAP net income  (B)      348.5       314.4       11     Diluted earnings per share    $ 2.48     $ 2.04       22     Non-GAAP diluted earnings per share  (B)    $ 2.37     $ 2.13       11            Nine Months Ended        March 31, 2025     March 31, 2024     % Change     Constant Currency  (A)   Revenue    $ 3,798.3     $ 3,462.1       10 %      10 %  Gross margin      58.8 %      56.0 %      5     Non-GAAP gross margin  (B)      59.4 %      57.2 %      4     Selling, general, and administrative expenses      725.9       674.9       8       8   Research and development expenses      244.8       226.7       8       9   Income from operations      1,230.8       938.7       31     Non-GAAP income from operations  (B)      1,286.9       1,077.9       19     Net income      1,021.0       728.7       40     Non-GAAP net income  (B)      1,032.2       833.0       24     Diluted earnings per share    $ 6.93     $ 4.94       40     Non-GAAP diluted earnings per share  (B)    $ 7.00     $ 5.65       24       (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. Discussion of Third Quarter Results All comparisons are to the prior year period unless otherwise noted     •   Revenue grew by 9 percent on a constant currency basis, driven by increased demand for our sleep devices and masks portfolio, as well as solid growth across our Residential Care Software business.     •   Revenue in the U.S., Canada, and Latin America, excluding Residential Care Software, grew by 9 percent. RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  3  of  10     •   Revenue in Europe, Asia, and other markets, excluding Residential Care Software, grew by 8 percent on a constant currency basis.     •   Residential Care Software revenue increased by 10 percent on a constant currency basis, reflecting continued organic growth in our Residential Care Software portfolio.     •   Gross margin increased by 140 basis points mainly due to manufacturing and logistics efficiencies as well as favorable shifts in product mix, partially offset by unfavorable foreign currency movements. Non-GAAP gross margin increased by 140 basis points due to the same factors.     •   Selling, general, and administrative expenses increased by 8 percent on a constant currency basis. The increase in SG&A expenses was mainly due to increases in employee-related costs and marketing expenses. SG&A expenses improved to 19.0 percent of revenue in the quarter, compared with 19.2 percent in the same period of the prior year.     •   Income from operations increased by 14 percent and non-GAAP income from operations increased by 13 percent.     •   Net income for the quarter was $365 million and diluted earnings per share was $2.48. Non-GAAP net income increased by 11 percent to $349 million, and non-GAAP diluted earnings per share increased by 11 percent to $2.37, predominantly attributable to strong sales growth and gross margin improvement.     •   Operating cash flow for the quarter was $579 million, compared to net income in the current quarter of $365 million and non-GAAP net income of $349 million. We received $107 million in tax refunds from the IRS during the quarter, of which $100 million had been previously recorded as a receivable. Operating cash flows excluding the impact of these tax refunds was $471 million.     •   During the quarter, we paid $78 million in dividends to shareholders and repurchased 314,000 shares for consideration of $75 million as part of our ongoing capital management. Other Business and Operational Highlights     •   Announced that our home sleep apnea test, NightOwl ™ , is now available across the United States. NightOwl is an FDA-cleared home sleep apnea test (HSAT) designed to offer healthcare providers a simplified, accurate, and efficient way to diagnose obstructive sleep apnea from the comfort of an individual’s home.     •   Unveiled the findings of our fifth annual Global Sleep Survey. With insights from 30,026 respondents across 13 markets, the study underscored a widespread global sleep crisis, with people losing an average of nearly three nights of restorative sleep each week.     •   Announced a comprehensive brand evolution designed to unify our brand portfolio to serve more people and healthcare providers worldwide and reflect our future physician and customer education.     •   Announced the publication of a landmark meta-analysis in The Lancet Respiratory Medicine , demonstrating that CPAP therapy significantly reduces the risk of death for people with obstructive sleep apnea (OSA).     •   Awarded as one of the “Top 100 Global Innovators” from LexisNexis. This prestigious award includes a roster of companies around the world that are driving innovation in the global economy. RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  4  of  10   Dividend program The Resmed board of directors today declared a quarterly cash dividend of $0.53 per share. The dividend will have a record date of May 8, 2025, payable on June 12, 2025. 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 May 7, 2025, 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 May 7, 2025, through May 8, 2025, inclusive. Webcast details Resmed will discuss its third quarter fiscal year 2025 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 “Q3 2025 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 13752711. The telephone replay will be available until May 7, 2025. About Resmed At Resmed (NYSE: RMD, ASX: RMD) we pioneer innovative solutions that treat and keep people out of the hospital, empowering them to live healthier, higher-quality lives. Our digital health technologies and cloud-connected medical devices transform care for people with sleep apnea, COPD, and other chronic diseases. Our comprehensive out-of-hospital software platforms support the professionals and caregivers who help people stay healthy in the home or care setting of their choice. By enabling better care, we improve quality of life, reduce the impact of chronic disease, and lower costs for consumers and healthcare systems in more than 140 countries. To learn more, visit  Resmed.com  and follow @Resmed. 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 Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  5  of  10 RESMED INC. AND SUBSIDIARIES   Condensed Consolidated Statements of Operations (Unaudited; $ in thousands, except for per share amounts)        Three Months Ended     Nine Months Ended        March 31, 2025     March 31, 2024     March 31, 2025     March 31, 2024   Net revenue    $ 1,291,736     $ 1,196,980     $ 3,798,334     $ 3,462,102   Cost of sales      517,883       496,387       1,540,684       1,483,088   Amortization of acquired intangibles  (1)      7,444       7,812       22,748       24,976   Masks with magnets field safety notification expenses (1)      —        —        —        6,351   Astral field safety notification expenses (1)      —        —        —        7,911                                    Total cost of sales    $ 525,327     $ 504,199     $ 1,563,432     $ 1,522,326                                    Gross profit    $ 766,409     $ 692,781     $ 2,234,902     $ 1,939,776   Selling, general, and administrative      245,302       229,919       725,894       674,948   Research and development      83,944       77,074       244,840       226,664   Amortization of acquired intangibles  (1)      10,895       11,204       33,345       35,259   Restructuring expenses  (1)      —        —        —        64,228                                    Total operating expenses    $ 340,141     $ 318,197     $ 1,004,079     $ 1,001,099                                    Income from operations    $ 426,268     $ 374,584     $ 1,230,823     $ 938,677   Other income (expenses), net:          Interest (expense) income, net    $ 793     $ (11,026 )    $ (1,643 )    $ (39,787 )  Gain (loss) attributable to equity method investments      335       440       2,375       (2,716 )  Gain (loss) on equity investments      (5,647 )      13,919       (7,765 )      11,429   Other, net      (4,056 )      (2,496 )      (4,277 )      (537 )                                   Total other income (expenses), net      (8,575 )      837       (11,310 )      (31,611 )                                   Income before income taxes    $ 417,693     $ 375,421     $ 1,219,513     $ 907,066   Income taxes      52,652       74,929       198,495       178,351                                    Net income    $ 365,041     $ 300,492     $ 1,021,018     $ 728,715                                    Basic earnings per share    $ 2.49     $ 2.04     $ 6.96     $ 4.96   Diluted earnings per share    $ 2.48     $ 2.04     $ 6.93     $ 4.94   Non-GAAP diluted earnings per share  (1)    $ 2.37     $ 2.13     $ 7.00     $ 5.65   Basic shares outstanding      146,719       146,959       146,797       147,056   Diluted shares outstanding      147,220       147,450       147,432       147,549     (1) See the reconciliation of non-GAAP financial measures in the table at the end of the press release. – More – RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  6  of  10 RESMED INC. AND SUBSIDIARIES   Condensed Consolidated Balance Sheets (Unaudited; $ in thousands)        March 31, 2025     June 30, 2024   Assets      Current assets:      Cash and cash equivalents    $ 932,711     $ 238,361   Accounts receivable, net      907,825       837,275   Inventories      862,641       822,250   Prepayments and other current assets      505,243       459,833                    Total current assets    $ 3,208,420     $ 2,357,719   Non-current assets:      Property, plant, and equipment, net    $ 535,339     $ 548,025   Operating lease right-of-use assets      152,603       151,121   Goodwill and other intangibles, net      3,279,030       3,327,959   Deferred income taxes and other non-current assets      391,430       487,570                    Total non-current assets    $ 4,358,402     $ 4,514,675                    Total assets    $ 7,566,822     $ 6,872,394                    Liabilities and Stockholders’ Equity      Current liabilities:      Accounts payable    $ 222,561     $ 237,728   Accrued expenses      386,325       377,678   Operating lease liabilities, current      28,749       25,278   Deferred revenue      160,445       152,554   Income taxes payable      132,530       107,517   Short-term debt      9,906       9,900                    Total current liabilities    $ 940,516     $ 910,655   Non-current liabilities:      Deferred revenue    $ 151,090     $ 137,343   Deferred income taxes      78,983       79,339   Operating lease liabilities, non-current      137,991       141,444   Other long-term liabilities      48,983       42,257   Long-term debt      663,126       697,313                    Total non-current liabilities    $ 1,080,173     $ 1,097,696                    Total liabilities    $ 2,020,689     $ 2,008,351                    Stockholders’ equity      Common stock    $ 761     $ 588   Additional paid-in capital      1,990,137       1,896,604   Retained earnings      5,779,375       4,991,647   Treasury stock      (1,973,284 )      (1,773,267 )  Accumulated other comprehensive income      (250,856 )      (251,529 )                   Total stockholders’ equity    $ 5,546,133     $ 4,864,043                    Total liabilities and stockholders’ equity    $ 7,566,822     $ 6,872,394                    – More – RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  7  of  10 RESMED INC. AND SUBSIDIARIES   Condensed Consolidated Statements of Cash Flows (Unaudited; $ in thousands)        Three Months Ended     Nine Months Ended        March 31, 2025     March 31, 2024     March 31, 2025     March 31, 2024   Cash flows from operating activities:          Net income    $ 365,041     $ 300,492     $ 1,021,018     $ 728,715   Adjustment to reconcile net income to cash provided by operating activities:          Depreciation and amortization      43,675       43,474       134,845       133,192   Amortization of right-of-use assets      8,235       11,168       26,678       28,262   Stock-based compensation costs      24,120       20,442       66,910       58,792   (Gain) loss attributable to equity method investments, net of dividends received      (335 )      (440 )      (2,375 )      2,716   (Gain) loss on equity investments      5,647       (13,919 )      7,765       (11,429 )  Non-cash restructuring expenses      —        —        —        33,239   Changes in operating assets and liabilities:          Accounts receivable, net      (40,033 )      (56,486 )      (71,469 )      (76,755 )  Inventories, net      29,864       86,199       (48,032 )      163,294   Prepaid expenses, net deferred income taxes and other current assets      79,357       (24,386 )      35,612       (98,976 )  Accounts payable, accrued expenses, income taxes payable and other      63,091       35,488       41,870       96                                    Net cash provided by (used in) operating activities    $ 578,662     $ 402,032     $ 1,212,822     $ 961,146   Cash flows from investing activities:          Purchases of property, plant, and equipment      (20,796 )      (21,191 )      (59,280 )      (74,579 )  Patent registration and acquisition costs      (2,992 )      (1,918 )      (7,584 )      (13,954 )  Business acquisitions, net of cash acquired      —        (3,080 )      (670 )      (113,767 )  Purchases of investments      (2,053 )      (2,387 )      (4,403 )      (9,692 )  Proceeds from exits of investments      —        —        4,378       250   Proceeds (payments) on maturity of foreign currency contracts      (5,945 )      (4,577 )      1,227       (11,533 )                                   Net cash provided by (used in) investing activities    $ (31,786 )    $ (33,153 )    $ (66,332 )    $ (223,275 )  Cash flows from financing activities:          Proceeds from issuance of common stock, net      9,022       4,892       44,283       25,399   Purchases of treasury stock      (75,026 )      (50,000 )      (200,017 )      (100,007 )  Taxes paid related to net share settlement of equity awards      (364 )      (314 )      (17,487 )      (8,336 )  Payments of business combination contingent consideration      —        —        (855 )      (1,293 )  Proceeds from borrowings, net of borrowing costs      —        —        —        105,000   Repayment of borrowings      —        (220,000 )      (35,000 )      (535,000 )  Dividends paid      (77,704 )      (70,492 )      (233,290 )      (211,767 )                                   Net cash provided by (used in) financing activities    $ (144,072 )    $ (335,914 )    $ (442,366 )    $ (726,004 )                                   Effect of exchange rate changes on cash    $ 7,963     $ (5,302 )    $ (9,774 )    $ (1,848 )                                   Net increase (decrease) in cash and cash equivalents      410,767       27,663       694,350       10,019   Cash and cash equivalents at beginning of period      521,944       210,247       238,361       227,891                                    Cash and cash equivalents at end of period    $ 932,711     $ 237,910     $ 932,711     $ 237,910                                    – More – RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    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 are reconciled below:        Three Months Ended     Nine Months Ended        March 31, 2025     March 31, 2024     March 31, 2025     March 31, 2024   Revenue    $ 1,291,736     $ 1,196,980     $ 3,798,334     $ 3,462,102   GAAP cost of sales    $ 525,327     $ 504,199     $ 1,563,432     $ 1,522,326   Less:  Amortization of acquired intangibles  (A)      (7,444 )      (7,812 )      (22,748 )      (24,976 )  Less : Masks with magnets field safety notification expenses (A)      —        —        —        (6,351 )                                   Less : Astral field safety notification expenses (A)      —        —        —        (7,911 )  Non-GAAP cost of sales    $ 517,883     $ 496,387     $ 1,540,684     $ 1,483,088   GAAP gross profit    $ 766,409     $ 692,781     $ 2,234,902     $ 1,939,776   GAAP gross margin      59.3 %      57.9 %      58.8 %      56.0 %  Non-GAAP gross profit    $ 773,853     $ 700,593     $ 2,257,650     $ 1,979,014   Non-GAAP gross margin      59.9 %      58.5 %      59.4 %      57.2 %  The measure “non-GAAP income from operations” is reconciled with GAAP income from operations below:          Three Months Ended           Nine Months Ended           March 31, 2025      March 31, 2024      March 31, 2025      March 31, 2024   GAAP income from operations    $ 426,268      $ 374,584      $ 1,230,823      $ 938,677   Amortization of acquired intangibles—cost of sales  (A)      7,444        7,812        22,748        24,976   Amortization of acquired intangibles—operating expenses  (A )      10,895        11,204        33,345        35,259   Restructuring  (A)      —         —         —         64,228   Masks with magnets field safety notification expenses (A)      —         —         —         6,351   Astral field safety notification expenses (A)      —         —         —         7,911   Acquisition-related expenses  (A)      —         —         —         483                                       Non-GAAP income from operations    $ 444,607      $ 393,600      $ 1,286,916      $ 1,077,885                                       – More – RMD Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  9  of  10   RESMED INC. AND SUBSIDIARIES Reconciliation of Non-GAAP Financial Measures (Unaudited; $ in thousands, except for per share amounts) 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      Nine Months Ended        March 31, 2025      March 31, 2024      March 31, 2025      March 31, 2024   GAAP net income    $ 365,041      $ 300,492      $ 1,021,018      $ 728,715   Amortization of acquired intangibles—cost of sales  (A)      7,444        7,812        22,748        24,976   Amortization of acquired intangibles—operating expenses  (A)      10,895        11,204        33,345        35,259   Restructuring expenses  (A)      —         —         —         64,228   Masks with magnets field safety notification expenses (A)      —         —         —         6,351   Astral field safety notification expenses (A)      —         —         —         7,911   Acquisition-related expenses  (A)      —         —         —         483   Income tax effect of interest and penalties on income tax refunds (A)      (29,976 )       —         (29,976 )       —    Income tax effect on non-GAAP adjustments (A)      (4,871 )       (5,083 )       (14,904 )       (34,969 )                                      Non-GAAP net income  (A)    $ 348,533      $ 314,425      $ 1,032,231      $ 832,954                                       GAAP diluted shares outstanding      147,220        147,450        147,432        147,549   GAAP diluted earnings per share    $ 2.48      $ 2.04      $ 6.93      $ 4.94   Non-GAAP diluted earnings per share  (A)    $ 2.37      $ 2.13      $ 7.00      $ 5.65     (A) Resmed adjusts for the impact of the amortization of acquired intangibles, interest and penalties on income tax refunds, restructuring expenses, field safety notification expenses, acquisition related expenses and associated tax effects 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 Third Quarter 2025 Earnings Press Release – April 23, 2025    Page  10  of  10   RESMED INC. AND SUBSIDIARIES Revenue by Product and Region (Unaudited; $ in millions, except for per share amounts)        Three Months Ended        March 31, 2025     (A)        March 31, 2024     (A)        % Change     Constant Currency  (B)   U.S., Canada, and Latin America                Devices    $ 422.7        $ 399.3          6 %    Masks and other      326.7          288.2          13                                      Total U.S., Canada and Latin America    $ 749.3        $ 687.5          9     Combined Europe, Asia, and other markets                Devices    $ 253.5        $ 238.9          6 %      9 %  Masks and other      127.7          122.6          4       7                                          Total Combined Europe, Asia and other markets    $ 381.3        $ 361.6          5       8   Global revenue                Total Devices    $ 676.2        $ 638.2          6 %      7 %  Total Masks and other      454.4          410.8          11       12                                          Total Sleep and Breathing Health    $ 1,130.6        $ 1,049.0          8       9   Residential Care Software      161.2          148.0          9       10                                          Total    $ 1,291.7        $ 1,197.0          8       9                                                 Nine Months Ended        March 31, 2025     (A)        March 31, 2024     (A)        % Change     Constant Currency  (B)   U.S., Canada, and Latin America                Devices    $ 1,221.6        $ 1,116.5          9 %    Masks and other      983.9          878.6          12                                      Total U.S., Canada and Latin America    $ 2,205.6        $ 1,995.2          11     Combined Europe, Asia, and other markets                Devices    $ 749.6        $ 692.4          8 %      9 %  Masks and other      368.7          342.3          8       9                                          Total Combined Europe, Asia and other markets    $ 1,118.3        $ 1,034.8          8       9   Global revenue                Total Devices    $ 1,971.3        $ 1,808.9          9 %      9 %  Total Masks and other      1,352.6          1,221.0          11       11                                          Total Sleep and Breathing Health    $ 3,323.9        $ 3,029.9          10       10   Residential Care Software      474.4          432.2          10       10                                          Total    $ 3,798.3        $ 3,462.1          10       10                                            (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. – End –