Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2020 | Jan. 31, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-27038 | |
Entity Registrant Name | NUANCE COMMUNICATIONS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-3156479 | |
Entity Address, Address Line One | 1 Wayside Road | |
Entity Address, City or Town | Burlington, | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01803 | |
City Area Code | 781 | |
Local Phone Number | 565-5000 | |
Title of 12(b) Security | Common stock, par value $0.001 | |
Trading Symbol | NUAN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 285,060,048 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001002517 | |
Current Fiscal Year End Date | --09-30 | |
Entity Emerging Growth Company | false |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | ||
Hosting and professional services | $ 195,832 | $ 173,921 |
Product and licensing | 86,037 | 125,015 |
Maintenance and support | 63,884 | 62,573 |
Total revenues | 345,753 | 361,509 |
Cost of revenues: | ||
Hosting and professional services | 105,615 | 101,330 |
Product and licensing | 14,415 | 33,944 |
Maintenance and support | 7,486 | 7,863 |
Amortization of intangible assets | 4,262 | 6,569 |
Total cost of revenues | 131,778 | 149,706 |
Gross profit | 213,975 | 211,803 |
Operating expenses: | ||
Research and development | 56,457 | 54,605 |
Sales and marketing | 65,405 | 65,776 |
General and administrative | 41,145 | 38,334 |
Depreciation, Depletion and Amortization, Nonproduction | 10,531 | 9,189 |
Acquisition-related costs, net | 325 | 1,220 |
Restructuring and other charges, net | 8,566 | 6,683 |
Total operating expenses | 182,429 | 175,807 |
Income from operations | 31,546 | 35,996 |
Other income (expense): | ||
Interest income | 228 | 2,186 |
Interest expense | (23,014) | (23,815) |
Other income (expense), net | 497 | (12,040) |
Income before income taxes | 9,257 | 2,327 |
(Benefit) provision for income taxes | 2,303 | (41,297) |
Net income from continuing operations | 14,895 | 48,685 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 7,941 | 5,061 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 6,954 | $ 43,624 |
Net income per common share - basic: | ||
Continuing operations | $ 0.05 | $ 0.17 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.03 | 0.02 |
Income (Loss) from Continuing Operations, Per Basic Share | 0.02 | 0.15 |
Continuing operations | 0.05 | 0.17 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.03 | 0.02 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.02 | $ 0.15 |
Weighted average common shares outstanding: | ||
Basic | 283,818 | 284,130 |
Diluted | 314,210 | 289,453 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 14,895 | $ 48,685 |
Other comprehensive income (loss): | ||
Foreign currency translation adjustment | 15,814 | 4,424 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Reclassification Adjustment from AOCI, Realized upon Sale or Liquidation, before Tax | 0 | 12,331 |
Pension Adjustments | 14 | 2,007 |
Unrealized (loss) gain on marketable securities | (29) | (32) |
Other Comprehensive Income (Loss), Net of Tax | 15,799 | 18,730 |
Comprehensive income | $ 30,694 | $ 67,415 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 299,446 | $ 301,233 |
Marketable securities | 74,862 | 71,114 |
Accounts receivable, less allowances for doubtful accounts of $9,305 and $8,649 | 216,447 | 175,583 |
Prepaid expenses and other current assets | 157,482 | 152,563 |
Disposal Group, Including Discontinued Operation, Assets, Current | 35,965 | 35,492 |
Total current assets | 784,202 | 735,985 |
Land, building and equipment, net | 138,639 | 137,299 |
Goodwill | 2,131,095 | 2,120,495 |
Intangible assets, net | 153,424 | 167,270 |
Operating Lease, Right-of-Use Asset | 101,172 | 104,839 |
Other assets | 262,464 | 248,414 |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 76,689 | 79,030 |
Total assets | 3,647,685 | 3,593,332 |
Long-term Debt and Lease Obligation, Current | 432,209 | |
Current liabilities: | ||
Contingent And Deferred Acquisition Payments | 4,524 | 4,224 |
Accounts payable | 81,461 | 71,833 |
Accrued expenses and other current liabilities | 157,779 | 199,254 |
Deferred revenue | 273,145 | 249,484 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 26,160 | 29,138 |
Total current liabilities | 1,596,080 | 986,142 |
Long-term debt | 495,977 | 1,104,464 |
Deferred revenue, net of current portion | 101,632 | 98,696 |
Deferred Tax Liabilities, Gross | 64,094 | 70,116 |
Operating Lease, Liability, Noncurrent | 100,339 | 103,996 |
Other liabilities | 65,085 | 64,597 |
Disposal Group, Including Discontinued Operation, Liabilities, Noncurrent | 18,099 | 21,388 |
Total liabilities | 2,441,306 | 2,449,399 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Common stock, $0.001 par value per share; 560,000 shares authorized; 288,669 and 286,703 shares issued and 284,918 and 282,952 shares outstanding, respectively | 289 | 287 |
Additional paid-in capital | 1,528,975 | 1,550,568 |
Treasury stock, at cost (3,751 shares) | (16,788) | (16,788) |
Accumulated other comprehensive loss | (102,119) | (117,918) |
Accumulated deficit | (257,321) | (272,216) |
Members' Equity | 1,153,036 | 1,143,933 |
Total liabilities and stockholders’ equity | $ 3,647,685 | $ 3,593,332 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Accounts receivable, allowances for doubtful accounts | $ 9,305 | $ 8,649 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 560,000 | 560,000 |
Common stock, shares issued | 288,669 | 286,703 |
Common stock, shares outstanding | 284,918 | 282,952 |
Treasury stock, shares | 3,751 | 3,751 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | $ 6,954 | $ 43,624 |
Depreciation | 7,993 | 7,793 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of Intangible Assets | 14,793 | 15,758 |
Stock-based compensation | 34,906 | 30,402 |
Amortization of Debt Issuance Costs | 12,324 | 12,744 |
Deferred tax benefit | (5,435) | (42,900) |
Loss on extinguishment of debt | 0 | 15,000 |
Other | 3,028 | 41 |
Changes in operating assets and liabilities, excluding effects of acquisitions: | ||
Accounts receivable | (40,023) | (21,164) |
Prepaid expenses and other assets | (5,892) | 27,414 |
Accounts payable | 11,636 | (1,703) |
Accrued expenses and other liabilities | (9,480) | (70,017) |
Deferred revenue | 23,814 | 27,686 |
Net Cash Provided by (Used in) Continuing Operations | 54,618 | 44,678 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | 6,570 | 8,875 |
Net cash provided by operating activities | 61,188 | 53,553 |
Cash flows from investing activities: | ||
Capital expenditures | (17,400) | (14,204) |
Net distribution from Cerence upon the spin-off | 0 | 139,090 |
Purchases of marketable securities and other investments | (41,366) | (86,699) |
Proceeds from sales and maturities of marketable securities and other investments | 37,582 | 82,588 |
Payments for (Proceeds from) Other Investing Activities | (545) | 1,272 |
Net cash used in investing activities | (21,979) | (17,043) |
Cash flows from financing activities: | ||
Repurchase and redemption of debt | 0 | (313,500) |
Payments for repurchase of common stock | 0 | (92,444) |
Payments for taxes related to net share settlement of equity awards | (43,729) | (29,958) |
Proceeds from (Payments for) Other Financing Activities | 6 | 725 |
Net cash used in financing activities | (43,735) | (297,537) |
Effects of exchange rate changes on cash and cash equivalents | 2,739 | 1,524 |
Net decrease in cash and cash equivalents | (1,787) | (259,503) |
Cash and cash equivalents at beginning of period | 301,233 | |
Cash and cash equivalents at end of period | $ 299,446 | $ 301,458 |
Statement of Equity Statement
Statement of Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Retained Earnings [Member] | Treasury Stock [Member] | AOCI Attributable to Parent [Member] | Additional Paid-in Capital [Member] | Common Stock [Member] |
Members' Equity | $ 1,143,933 | |||||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 3,117 | |||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | 0 | $ 0 | $ 0 | $ 0 | $ 3 | $ (3) |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Shares | 1,151 | |||||
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | (43,703) | 0 | 0 | 0 | (43,702) | $ (1) |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | (75,455) | 0 | 0 | 0 | (75,455) | 0 |
Net income | (14,895) | 14,895 | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (15,799) | 0 | $ 0 | (15,799) | 0 | $ 0 |
Shares, Issued | (3,751) | 288,669 | ||||
Stockholders' Equity Attributable to Parent | $ (257,321) | $ (16,788) | $ (102,119) | $ 1,528,975 | $ 289 | |
Members' Equity | $ 1,153,036 |
Organization and Presentation
Organization and Presentation | 3 Months Ended |
Dec. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Presentation | Organization and Presentation Nuance Communications, Inc. ("we", "Nuance", "our", "us", or the "Company") is a pioneer and leader in conversational and cognitive artificial intelligence ("AI") innovations that bring intelligence to everyday work and life. Our solutions and technologies can understand, analyze and respond to human language to increase productivity and amplify human intelligence. Our solutions are used by businesses in the healthcare, financial services, telecommunications and travel industries, among others. We had three reportable segments as of December 31, 2020: Healthcare, Enterprise, and Other. See Note 17 for a description of each of these segments. Although we believe the disclosures included herein are adequate to ensure that the condensed consolidated financial statements are fairly presented, certain information and footnote disclosures to the financial statements have been condensed or omitted in accordance with the rules and regulations of the SEC. Accordingly, the condensed consolidated financial statements and the footnotes included herein should be read in conjunction with the audited financial statements and the footnotes included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2020. The results of operations for the interim periods presented are not necessarily indicative of the results for the entire fiscal year or any future period. As more fully described in Note 10, during the first quarter of fiscal year 2021, our common stock price exceeded 130% of the applicable conversion price for each of our convertible debentures for at least 20 trading days during the 30 consecutive trading days ending December 31, 2020. As a result, the holders of our 1.25% 2025 Debentures, 1.5% 2035 Debentures, and 1.0% 2035 Debentures have the right to convert all or any portion of their debentures between January 1, 2021 and March 31, 2021. Additionally, the holders of the 1.5% 2035 Debentures will have the right to redeem the notes in November 2021. All three convertible notes with a total net book value of $1.05 billion were included within current liabilities as of December 31, 2020. Should any holders elect to convert, the principal amount of the convertible debentures would be payable in cash, and any amount payable in excess of the principal amount would be paid in cash or shares of our common stock at our election. Although the holders of our 1.25% 2025 and 1.5% 2035 Debentures previously had the right to convert their debentures between October 1, 2020 and December 31, 2020 as our common stock price exceeded 130% of the applicable conversion price for these debentures for at least 20 trading days during the 30 consecutive trading days ending September 30, 2020, only one holder of $0.02 million notional amount exercised their conversion right during the fiscal quarter ended December 31, 2020. Our convertible debentures are actively traded in the open market at a trading price consistently in excess of their conversion values. Therefore, we believe that it is uneconomic, and thus unlikely, for the holders to early exercise their conversion rights. In the event that the holders presented an amount for settlement that exceeded our then available sources of liquidity, we may need to obtain additional financing, which we believe would be available to us based upon our assessment of the prevailing market and business conditions and our experience of successful capital raising activities. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Recently Adopted Accounting Standards Internal-Use Software In August 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2018-15, "Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract", which became effective for us during the first quarter of fiscal year 2021. The guidance requires that implementation costs related to a hosting arrangement that is a service contract be capitalized and amortized over the term of the hosting arrangement, starting when the module or component of the hosting arrangement is ready for its intended use. The guidance is applied retrospectively to each period presented. The implementation did not have a material impact on our condensed consolidated financial statements. Current Expected Credit Losses In June 2016, the FASB issued ASU 2016-13, "Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" which became effective for us during the first quarter of fiscal year 2021. The guidance requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financial assets using a forward-looking approach, taking into consideration historical experience, current conditions, and supportable forecasts that impact collectibility. The implementation did not have a material impact on our condensed consolidated financial statements. Issued Accounting Standards Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB and are adopted by us as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on our consolidated financial position, results of operations or cash flows, or do not apply to our operations. Convertible Notes In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity," which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The new guidance eliminates two of the three models in Accounting Standards Codification ("ASC") 470-202 that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model in ASC 470-20 and those that require bifurcation in accordance with ASC 815-153 will be accounted for separately. For contracts in an entity’s own equity, the new guidance eliminates some of the requirements in ASC 815-404 for equity classification. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The guidance will be effective for annual periods beginning after December 15, 2021, and interim periods therein. Early adoption is permitted for all entities for fiscal periods beginning after December 15, 2020, including interim periods within the same fiscal year. Entities are allowed to adopt the guidance using either the modified or full retrospective approach. We are currently assessing the provisions of the guidance and the impact on our consolidated financial statements. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | We derive revenue from the following sources: (1) hosting services, (2) software licenses, including royalties, (3) maintenance and support ("M&S"), (4) professional services, and (5) sale of hardware. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and the collectibility of the consideration is probable. The majority of our arrangements with customers typically contain multiple products and services. We account for individual products and services separately if they are distinct--that is, if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. We recognize revenue after applying the following five steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract, including whether they are distinct within the context of the contract; • determination of the transaction price, including the constraint on variable consideration; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, performance obligations are satisfied. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price ("SSP") of each distinct performance obligation. In determining SSP, we maximize observable inputs and consider a number of data points, including: • the pricing of standalone sales (in the instances where available); • the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis; • contractually stated prices for deliverables that are intended to be sold on a standalone basis; and • other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type. We only include estimated amounts of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASU No. 2014-09, "Revenue from Contracts with Customers: Topic 606" ("ASC 606"), which we estimate based on historical return experience and other relevant factors and record a reduction to revenue and accounts receivable. Other forms of contingent revenue or variable consideration are infrequent. Revenue is recognized when control of these products and services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We assess the timing of the transfer of products or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. In accordance with the practical expedient in ASC 606-10-32-18, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of financing to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set-up fees nor other upfront fees paid by our customers to represent a financing component. Certain products are sold through distributors or resellers. Certain distributors and resellers have been granted right of return and selling incentives which are accounted for as variable consideration when estimating the amount of revenue to be recognized. Returns and credits are estimated at the contract inception and updated at the end of each reporting period as additional information becomes available. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate the variable consideration associated with this group of customers. Reimbursements for out-of-pocket costs generally include, but are not limited to, costs related to transportation, lodging and meals. Revenue from reimbursed out-of-pocket costs is accounted for as variable consideration. Shipping and handling activities are not considered a contract performance obligation. We record shipping and handling costs billed to customers as revenue with offsetting costs recorded as cost of revenue. Performance Obligations Hosting Hosting services, which allow our customers to use the hosted software over the contract period without taking possession of the software, are provided on a usage basis as consumed or on a fixed fee subscription basis. Our hosting contract terms generally range from one to five years. As each day of providing services is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, we have determined that our hosting services arrangements are a single performance obligation comprised of a series of distinct services. These services include variable consideration, which is typically a function of usage. We recognize revenue as each distinct service period is performed (i.e., recognized as incurred). Subscription-based revenue represents a single promise to stand-ready to provide access to our hosting services. Revenue is recognized over time on a ratable basis over the hosting contract term, which generally ranges from one to five years. Software Licenses On-premise software licenses sold with non-distinct professional services to customize and/or integrate the underlying software are accounted for as a combined performance obligation. Revenue from the combined performance obligation is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours. Revenue from distinct on-premise software licenses, which do not require professional services to customize and/or integrate the software license, is recognized at the point in time when the software is made available to the customer and control is transferred. Revenue from software licenses sold on a royalty basis, where the license of intellectual property is the predominant item to which the royalty relates, is recognized in the period the usage occurs in accordance with the practical expedient in ASC 606-10-55-65(A). Maintenance and Support Our M&S contracts generally include telephone support and the right to receive unspecified upgrades and updates on a when-and-if available basis. M&S revenue is recognized over time on a ratable basis over the contract period because we transfer control evenly by providing a stand-ready service. Professional Services Revenue from distinct professional services, including training, is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours. Hardware Hardware revenue is recognized at the point in time when control is transferred to the customer, which is typically upon delivery. Significant Judgments Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our license contracts often include professional services to customize and/or integrate the licenses into the customer’s environment. Judgment is required to determine whether the license is considered distinct and accounted for separately, or not distinct and accounted for together with professional services. Judgments are required to determine the SSP for each distinct performance obligation. When SSP is directly observable, we estimate SSP based upon the historical transaction prices, adjusted for geographic considerations, customer classes, and customer relationship profiles. In instances where SSP is not directly observable, we determine SSP using information that may include market conditions and other observable inputs. We may have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining SSP. Determining SSP for performance obligations which we never sell separately also requires significant judgment. In estimating the SSP for such performance obligations, we consider the likely price that would have resulted from established pricing practices had the deliverable been offered separately and the prices a customer would likely be willing to pay. From time to time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenues on a gross basis) or agent (i.e. report revenues on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Generally, we control a promised good or service before transferring that good or service to the customer and act as the principal to the transaction. Determining whether we control the good or service before it is transferred to the customer may require judgment. Disaggregated Revenue We disaggregate revenue from contracts with customers by reportable segment and products and services as this presentation depicts the timing, risks and uncertainty of our revenue streams, which is also in line with how we manage our businesses, assess performance, and determine management compensation. Our disaggregated revenue from continuing operations is as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Hosting and professional services Product and licensing Maintenance and support Total Hosting and professional services Product and licensing Maintenance and support Total Healthcare $ 110,803 $ 54,783 $ 33,746 $ 199,332 $ 88,427 $ 91,792 $ 33,591 $ 213,810 Enterprise 78,741 30,286 30,125 139,152 77,637 31,736 29,011 138,384 Other 6,288 968 13 7,269 7,857 1,487 (29) 9,315 Total revenues $ 195,832 $ 86,037 $ 63,884 $ 345,753 $ 173,921 $ 125,015 $ 62,573 $ 361,509 Hardware revenue comprised approximately $6.6 million of total product and license revenue for the three months ended December 31, 2020, and $6.4 million of total product and license revenue for the three months ended December 31, 2019. Contract Acquisition Costs We are required to capitalize certain contract acquisition costs under ASC 606. The capitalized costs primarily relate to paid commissions and other direct, incremental costs to acquire customer contracts. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate contract acquisition costs for groups of customer contracts. We elect to apply the practical expedient in ASC 340-40-25-4 and will expense contract acquisition costs as incurred where the expected period of benefit is one year or less. Sales commissions paid on renewal maintenance and support are not commensurate with sales commissions paid on the initial maintenance and support contract. Contract acquisition costs are deferred and amortized on a straight-line basis over the period of benefit, which we have estimated to be between one and five years. The period of benefit was determined based on an average customer contract term, expected contract renewals, changes in technology and our ability to retain customers including canceled contracts. Contract acquisition costs are classified as current or noncurrent assets based on when the expense will be recognized. The current and noncurrent portions of contract acquisition costs are included in Prepaid expenses and other current assets, and Other assets, respectively. As of December 31, 2020, we had $27.1 million of current contract acquisition costs from continuing operations and $63.0 million of noncurrent contract acquisition costs from continuing operations. As of September 30, 2020, we had $20.9 million of current contract acquisition costs from continuing operations and $51.6 million of noncurrent contract acquisition costs from continuing operations. Commission expense is primarily included in sales and marketing expense on the consolidated statements of operations. We had amortization expense related to contract acquisition costs from continuing operations of $4.7 million for the three months ended December 31, 2020, and $3.6 million for the three months ended December 31, 2019. There was no impairment related to commission costs capitalized. Capitalized Contract Costs We capitalize incremental costs incurred to fulfill our contracts that (1) relate directly to the contract, (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (3) are expected to be recovered through revenue generated under the contract. Our capitalized costs consist primarily of setup costs, such as costs to stand-up, customize, and develop applications for each customer. These costs are incurred to satisfy our stand-ready obligation to provide access to our connected offerings. The contract costs are expensed to cost of revenue as we satisfy our stand-ready obligation over the contract term, which we estimate to be between one and five years. The contract term estimation was determined based on an average customer contract term, expected contract renewals, changes in technology, and our ability to retain customers including canceled contracts. We classify capitalized contract costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of capitalized contract fulfillment costs are included in Prepaid expenses and other current assets, and Other assets, respectively. At December 31, 2020, we had $19.0 million of short-term contract costs from continuing operations included with Prepaid expenses and other current assets and $31.9 million of long-term costs from continuing operations included within Other assets. As of September 30, 2020, we had $18.0 million of short-term contract costs from continuing operations included with Prepaid expenses and other current assets and $30.7 million of long-term costs from continuing operations included within Other assets. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in Accounts receivable, net in our consolidated balance sheets at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not solely subject to the passage of time. The current and noncurrent portions of contract assets are included in Prepaid expenses and other current assets, and Other assets. As of December 31, 2020, we had $48.3 million of current contract assets from continuing operations and $106.1 million of noncurrent contract assets from continuing operations. As of September 30, 2020, we had $48.7 million of current contract assets from continuing operations and $107.4 million of noncurrent contract assets from continuing operations. The table below shows significant changes in contract assets of continuing operations (dollars in thousands): Contract assets Balance as of September 30, 2020 $ 156,142 Revenues recognized but not billed 99,618 Amounts reclassified to accounts receivable (101,358) Balance at December 31, 2020 $ 154,402 Our contract liabilities, or Deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify Deferred revenue as current or noncurrent based on when we expect to recognize the revenues. At December 31, 2020, we had $374.8 million of Deferred revenue. The table below shows significant changes in Deferred revenue of continuing operations (dollars in thousands): Deferred revenue Balance as of September 30, 2020 $ 348,180 Amounts bill but not recognized 213,232 Revenue recognized (186,635) Balance at December 31, 2020 $ 374,777 Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2020 (dollars in thousands): Within One Year Two to Four Years Greater than Four Years Total Total revenue $ 714,055 $ 952,108 $ 38,966 $ 1,705,129 |
Disposition of Business (Notes)
Disposition of Business (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Spin-off of Automotive On October 1, 2019, we completed the spin-off of our Automotive business as an independent public company, Cerence, and a pro rata and tax-free distribution to our stockholders of all of the outstanding shares of Cerence owned by Nuance on October 1, 2019. The distribution was made in the amount of one share of Cerence common stock for every eight shares of Nuance common stock owned by Nuance’s stockholders of record as of 5:00 p.m. Eastern Time on September 17, 2019. In connection with the spin-off, on September 30, 2019, we sold 1.8% of our equity interest in Cerence to a non-affiliated third party for a total cash consideration of $9.8 million. The difference between the consideration received and the carrying amount of the non-controlling interest was recognized in additional paid-in capital, which was subsequently derecognized as part of the spin-off transaction. Effective as of October 1, 2019, for all periods presented, the results of operations of our former Automotive business have been included within discontinued operations. For the three months ended December 31, 2019, we incurred cash payments of $13.3 million related to the separation and spin-off of our Automotive business, which have been presented as operating cash flows from discontinued operations. The historical results of operations of Automotive have been included within discontinued operations in our condensed consolidated financial statements. The following table summarizes the results of the discontinued operations (dollars in thousands): Three Months Ended December 31, 2020 2019 Medical Transcription and EHR go-live Medical Transcription and EHR go-live Automotive Total Major line items constituting net income (loss) of discontinued operations: Revenue $ 47,650 $ 56,724 $ — $ 56,724 Cost of revenue 29,152 34,683 — 34,683 Research and development 1,298 1,948 — 1,948 Sales and marketing 908 696 — 696 General and administrative 12 (20) — (20) Amortization of intangible assets 2,444 3,360 — 3,360 Acquisition-related costs, net — (53) — (53) Restructuring and other charges, net 4,438 — 7,386 7,386 Income (loss) from discontinued operations before income taxes 9,398 16,110 (7,386) 8,724 Provision (benefit) for income taxes 1,457 4,857 (1,194) 3,663 Net income (loss) from discontinued operations $ 7,941 $ 11,253 $ (6,192) $ 5,061 Supplemental information: Depreciation $ 1,063 $ 1,601 $ — $ 1,601 Amortization $ 2,444 $ 3,418 $ — $ 3,418 Stock compensation $ 287 $ 831 $ — $ 831 Capital expenditures $ 57 $ 21 $ — $ 21 The following table summarizes the assets and liabilities of our Medical Transcription and EHR Implementation Businesses included within discontinued operations. (dollars in thousands): December 31, 2020 September 30, 2020 Major classes of assets of discontinued operations: Accounts receivable, net $ 25,328 $ 24,993 Prepaid expenses and other current assets 10,637 10,499 Land, building and equipment, net 6,295 6,129 Goodwill 13,722 13,217 Intangible assets, net 43,770 46,214 Right-of-use assets 5,189 5,437 Other noncurrent assets 7,713 8,033 Total assets $ 112,654 $ 114,522 Major classes of liabilities of discontinued operations: Accounts payable $ 3,247 $ 3,289 Accrued expenses and other current liabilities 12,286 14,010 Deferred revenue 14,433 17,452 Operating lease liabilities 3,231 3,625 Other noncurrent liabilities 11,062 12,150 Total liabilities $ 44,259 $ 50,526 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | The changes in the carrying amount of goodwill by reportable segment for the three months ended December 31, 2020 are as follows (dollars in thousands): Goodwill Healthcare Enterprise Other Total Balance as of September 30, 2020 $ 1,424,959 $ 682,600 $ 12,936 $ 2,120,495 Purchase accounting adjustments — — — — Effect of foreign currency translation 3,902 6,369 329 10,600 Balance at December 31, 2020 $ 1,428,861 $ 688,969 $ 13,265 $ 2,131,095 Other Intangible Assets The changes in the carrying amount of intangible assets for the three months ended December 31, 2020 are as follows (dollars in thousands): Intangible Assets Balance at September 30, 2020 $ 167,270 Amortization (14,793) Effect of foreign currency translation 947 Balance at December 31, 2020 $ 153,424 |
Financial Instruments and Hedgi
Financial Instruments and Hedging Activities | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments and Hedging Activities | Derivatives Not Designated as Hedges Forward Currency Contracts We have operations in a number of international locations where currency exchange rates can be volatile. We utilize foreign currency forward contracts to mitigate the risks associated with changes in foreign currency exchange rates so that our exposure to foreign currencies will be mitigated or offset by the gains or losses on the foreign currency forward contracts. Generally, we enter into such contracts for less than 90 days and have no cash requirements until maturity. As of December 31, 2020 and September 30, 2020, we had outstanding contracts with a total notional value of $24.3 million and $40.7 million, respectively. We did not designate any forward contracts as hedging instruments for the three months ended December 31, 2020 or 2019. Therefore, changes in fair value of foreign currency forward contracts were recognized within Other income (expense), net in our condensed consolidated statements of operations. The cash flows related to the settlement of forward contracts not designated as hedging instruments are included in cash flows from investing activities within our condensed consolidated statement of cash flows. A summary of the derivative instruments is as follows (dollars in thousands): Derivatives Not Designated as Hedges Balance Sheet Classification Fair Value December 31, September 30, Foreign currency forward contracts Prepaid expenses and other current assets $ 139 $ 109 Foreign currency forward contracts Accrued expenses and other current liabilities $ (124) $ (92) A summary of other (expense) income, net related to foreign currency forward contracts for the three months ended December 31, 2020 and 2019 is as follows (dollars in thousands): Income Statement Classification Three Months Ended December 31, Derivatives Not Designated as Hedges (Loss) Income Recognized 2020 2019 Foreign currency forward contracts Other (expense) income, net $ (548) $ 585 |
Fair Value Measures
Fair Value Measures | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measures | Fair value is defined as the price that would be received to sell an asset, or paid to transfer a liability, in an orderly transaction between market participants at the measurement date. Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs. When determining the fair value measurements for assets and liabilities required to be recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use when pricing the asset or liability, such as inherent risk, transfer restrictions, and risk of nonperformance. The determination of the applicable level within the hierarchy of a particular financial asset or liability depends on the lowest level of inputs that are significant to the fair value measurement as of the measurement date as follows: • Level 1: Quoted prices for identical assets or liabilities in active markets. • Level 2: Observable inputs other than those described as Level 1. • Level 3: Unobservable inputs that are supportable by little or no market activities and are based on significant assumptions and estimates. Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and September 30, 2020 consisted of the following (dollars in thousands): December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (a) $ 161,056 $ — $ — $ 161,056 Time deposits (b) — 57,425 — 57,425 Commercial paper, $54,502 at cost (b) — 54,545 — 54,545 Corporate notes and bonds, $10,742 at cost (b) — 10,743 — 10,743 Foreign currency exchange contracts (b) — 139 — 139 Total assets at fair value $ 161,056 $ 122,852 $ — $ 283,908 Liabilities: Foreign currency exchange contracts (b) $ — (124) $ — $ (124) Contingent acquisition payments (c) — — (1,847) (1,847) Total liabilities at fair value $ — $ (124) $ (1,847) $ (1,971) September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (a) $ 182,645 $ — $ — $ 182,645 Time deposits (b) — 95,180 — 95,180 Commercial paper, $33,265 at cost (b) — 33,290 — 33,290 Corporate notes and bonds, $15,460 at cost (b) — 15,480 — 15,480 Foreign currency exchange contracts (b) — 109 — 109 Total assets at fair value $ 182,645 $ 144,059 $ — $ 326,704 Liabilities: Foreign currency exchange contracts (b) $ — $ (92) $ — $ (92) Contingent acquisition payments (c) — — (1,796) (1,796) Total liabilities at fair value $ — $ (92) $ (1,796) $ (1,888) (a) Money market funds and time deposits with original maturity of 90 days or less are included within cash and cash equivalents in the consolidated balance sheets and are valued at quoted market prices in active markets. (b) Time deposits, commercial paper, corporate notes and bonds, and foreign currency exchange contracts are recorded at fair market values, which are determined based on the most recent observable inputs for similar instruments in active markets or quoted prices for identical or similar instruments in markets that are not active or are directly or indirectly observable. Time deposits are generally for terms of one year or less. Commercial paper and corporate notes and bonds generally mature within three years and had a weighted average maturity of 0.41 years as of December 31, 2020 and 0.31 years as of September 30, 2020. (c) The fair values of our contingent consideration arrangements were determined using either the option pricing model with Monte Carlo simulation or the probability-weighted discounted cash flow method. The estimated fair value of our long-term debt was approximately $2,875.4 million (face value $1,666.5 million) as of December 31, 2020 and $2,355.5 million (face value $1,666.5 million) as of September 30, 2020 based on Level 2 measurements. The fair value of each borrowing was estimated using the average of the bid and ask trading quotes at each respective reporting date. There was no balance outstanding under our revolving credit agreement as of December 31, 2020 or September 30, 2020. Additionally, contingent acquisition payments are recorded at fair values upon the acquisition and are remeasured in subsequent reporting periods with the changes in fair values recorded within acquisition-related costs, net. Such payments are contingent upon the achievement of specified performance targets and are valued using the option pricing model with Monte Carlo simulation or the probability-weighted discounted cash flow model (Level 3 measurement). The following table provides a summary of changes in the aggregate fair value of the contingent acquisition payments for all periods presented (dollars in thousands): Three Months Ended December 31, 2020 2019 Balance at beginning of period $ 1,796 $ 2,550 Payments and foreign currency translation 51 (57) Balance at end of period $ 1,847 $ 2,493 Contingent acquisition payments are to be made in periods through fiscal year 2021. As of December 31, 2020, the maximum amount payable based on the agreements was $3.0 million if the specified performance targets are achieved. |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 3 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (dollars in thousands): December 31, September 30, Compensation $ 74,403 $ 110,827 Cost of revenue related liabilities 22,145 25,434 Accrued interest payable 3,087 13,484 Consulting and professional fees 11,305 10,589 Sales and marketing incentives 1,537 2,021 Sales and other taxes payable 6,685 6,339 Operating lease obligations 26,108 26,284 Other 12,509 4,276 Total $ 157,779 $ 199,254 |
Restructuring and Other Charges
Restructuring and Other Charges, net | 3 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring and other charges, net include restructuring expenses together with other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business. The following table represents the roll forward of restructuring liabilities for the three months ended December 31, 2020 (dollars in thousands): Personnel Facilities Total Balance at September 30, 2020 $ 1,243 $ 15,614 $ 16,857 Restructuring charges, net 4,789 3,071 7,860 Non-cash adjustment (839) (1,374) (2,213) Cash payments (3,126) (1,242) (4,368) Balance at December 31, 2020 $ 2,067 $ 16,069 $ 18,136 The table below presents the Restructuring and other charges, net associated with each segment, but excluded from calculation of each segment's profit (dollars in thousands): Three Months Ended December 31, 2020 2019 Personnel Facilities Total Restructuring Other Charges Total Personnel Facilities Total Restructuring Other Charges Total Healthcare $ 2,632 $ 567 $ 3,199 $ — $ 3,199 $ 1,276 $ 1,527 $ 2,803 $ — $ 2,803 Enterprise 1,182 2,472 3,654 — 3,654 1,304 505 1,809 — 1,809 Other — 29 29 — 29 — (365) (365) — (365) Corporate 975 3 978 706 1,684 333 (532) (199) 2,635 2,436 Total $ 4,789 $ 3,071 $ 7,860 $ 706 $ 8,566 $ 2,913 $ 1,135 $ 4,048 $ 2,635 $ 6,683 Fiscal Year 2021 For the three months ended December 31, 2020, we recorded restructuring charges of $7.9 million, which included $4.8 million related to the termination of approximately 57 employees and a $3.1 million charge related to closing certain idle facilities. These actions were part of our strategic initiatives focused on investment rationalization, process optimization and cost reduction as we continue to evaluate the geographic footprint of our offices and facilities. We expect the remaining outstanding severance of $2.1 million to be substantially paid during fiscal year 2021, and the remaining $16.1 million of lease payments to be made through fiscal year 2027, in accordance with the terms of the applicable leases. Additionally, for the three months ended December 31, 2020, we recorded $0.7 million professional services expenses related to other corporate initiatives. Fiscal Year 2020 For the three months ended December 31, 2019, we recorded restructuring charges of $4.0 million, which included $2.9 million related to the termination of approximately 37 employees and $1.1 million related to closing certain restructuring facilities. These actions were part of our strategic initiatives focused on investment rationalization, process optimization and cost reduction. Additionally, for the three months ended December 31, 2019, we recorded $2.8 million costs related to the separation of our Automotive business, which was offset in part by a $0.2 million cash receipt from insurance claims. |
Debt and Credit Facilities
Debt and Credit Facilities | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt and Credit Facilities | As of December 31, 2020 and September 30, 2020, we had the following borrowing obligations (dollars in thousands): December 31, September 30, 5.625% Senior Notes due 2026, net of deferred issuance costs of $3.7 million and $3.9 million, respectively. Effective interest rate 5.625%. $ 496,302 $ 496,148 1.000% Convertible Debentures due 2035, net of unamortized discount of $57.9 million and $64.8 million, respectively, and deferred issuance costs of $2.6 million and $2.9 million, respectively. Effective interest rate 5.622%. 616,037 608,767 1.250% Convertible Debentures due 2025, net of unamortized discount of $42.9 million and $45.2 million, respectively, and deferred issuance costs of $1.8 million and $1.9 million, respectively. Effective interest rate 5.578%. 217,910 215,582 1.500% Convertible Debentures due 2035, net of unamortized discount of $8.1 million and $10.4 million, respectively, and deferred issuance costs of $0.3 million and $0.3 million, respectively. Effective interest rate 5.394%. 219,064 216,627 Deferred issuance costs related to our Revolving Credit Facility (325) (451) Total debt 1,548,988 1,536,673 Less: current portion (a) (1,053,011) (432,209) Total long-term debt $ 495,977 $ 1,104,464 (a) As of December 31, 2020, the holders have the right to convert all or any portion of the 1.25% 2025 Debentures, 1.5% 2035 Debentures, and 1.0% 2035 Debentures between January 1, 2021 and March 31, 2021. Additionally, the holders of the 1.5% 2035 Debentures will have the right to redeem the notes in November 2021. As a result, the net carrying amounts of the convertible debentures were included in current liabilities as of December 31, 2020. The following table summarizes the maturities of our borrowing obligations as of December 31, 2020 (dollars in thousands): Fiscal Year Convertible Debentures (a) Senior Notes Total 2021 $ 1,166,539 $ — $ 1,166,539 2022 — — — 2023 — — — 2024 — — — 2025 — — — Thereafter — 500,000 500,000 Total before unamortized discount 1,166,539 500,000 1,666,539 Less: unamortized discount and issuance costs (113,528) (4,023) (117,551) Total debt $ 1,053,011 $ 495,977 $ 1,548,988 (a) As more fully described below, as of December 31, 2020, the holders have the right to convert all or any portion of the 1.25% 2025 Debentures, 1.5% 2035 Debentures, and 1.0% 2035 Debentures between January 1, 2021 and March 31, 2021. Additionally, the holders of the 1.5% 2035 Debentures will have the right to redeem the notes in November 2021. As a result, these convertible debentures were treated as if they were due in fiscal year 2021. 5.625% Senior Notes due 2026 In December 2016, we issued $500.0 million aggregate principal amount of 5.625% Senior Notes due on December 15, 2026 (the "2026 Senior Notes") in a private placement. The proceeds from the 2026 Senior Notes were approximately $495.0 million, net of issuance costs, and we used the proceeds to repurchase a portion of our then outstanding 5.375% Senior Notes due 2020. The 2026 Senior Notes bear interest at 5.625% per year, payable in cash semi-annually in arrears. The 2026 Senior Notes are unsecured senior obligations and are guaranteed on an unsecured senior basis by certain of our domestic subsidiaries ("Subsidiary Guarantors"). The 2026 Senior Notes and the guarantees rank equally in right of payment with all of our and the Subsidiary Guarantors’ existing and future unsecured senior debt and rank senior in right of payment to all of our and the Subsidiary Guarantors’ future unsecured subordinated debt. The 2026 Senior Notes and guarantees effectively rank junior to all our secured debt and that of the Subsidiary Guarantors to the extent of the value of the collateral securing such debt and to all liabilities, including trade payables, of our subsidiaries that have not guaranteed the 2026 Senior Notes. At any time before December 15, 2021, we may redeem all or a portion of the 2026 Senior Notes at a redemption price equal to 100% of the aggregate principal amount of the 2026 Senior Notes to be redeemed, plus a "make-whole" premium and accrued and unpaid interest to, but excluding, the redemption date. At any time on or after December 15, 2021, we may redeem all or a portion of the 2026 Senior Notes at certain redemption prices expressed as percentages of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. At any time and from time to time before December 15, 2021, we may redeem up to 35% of the aggregate outstanding principal amount of the 2026 Senior Notes with the net cash proceeds received by us from certain equity offerings at a price equal to 105.625% of the aggregate principal amount, plus accrued and unpaid interest to, but excluding, the redemption date, provided that the redemption occurs no later than 120 days after the closing of the related equity offering, and at least 50% of the original aggregate principal amount of the 2026 Senior Notes remains outstanding immediately thereafter. Upon the occurrence of a change in control or sale of substantially all assets, we must offer to repurchase the 2026 Senior Notes at a price equal to 100% in the case of an asset sale, or 101% in the case of a change of control, of the principal amount plus accrued and unpaid interest to, but excluding, the repurchase date. 1.0% Convertible Debentures due 2035 In December 2015, we issued $676.5 million in aggregate principal amount of 1.0% Senior Convertible Debentures due in 2035 (the "1.0% 2035 Debentures") in a private placement. Total proceeds were $663.8 million, net of issuance costs, and we used a portion to repurchase $38.3 million in aggregate principal on our 2.75% Senior Convertible Debentures due in 2031 (the “2.75% 2031 Debentures”) and to repay the aggregate principal balance of $472.5 million on our term loan under the amended and restated credit agreement. The 1.0% 2035 Debentures bear interest at 1.0% per year, payable in cash semi-annually in arrears. In addition to ordinary interest and default additional interest, beginning with the semi-annual interest period commencing on December 15, 2022, contingent interest will accrue during any regular semi-annual interest period where the average trading price of our 1.0% 2035 Debentures for the ten trading day period immediately preceding the first day of such semi-annual period is greater than or equal to $1,200 per $1,000 principal amount of our 1.0% 2035 Debentures, in which case, contingent interest will accrue at a rate of 0.50% per annum of such average trading price. The 1.0% 2035 Debentures mature on December 15, 2035, subject to the right of the holders to require us to redeem the 1.0% 2035 Debentures on December 15, 2022, 2027, or 2032. The 1.0% 2035 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 1.0% 2035 Debentures. The 1.0% 2035 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. We account separately for the liability and equity components of the 1.0% 2035 Debentures in accordance with authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. The guidance requires the carrying amount of the liability component to be estimated by measuring the fair value of a similar liability that does not have an associated conversion feature and record the remainder in stockholders’ equity. At issuance, we allocated $495.4 million to long-term debt, and $181.1 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through December 2022. If converted, the principal amount of the 1.0% 2035 Debentures is payable in cash and any amounts payable in excess of the principal amount will be paid in cash or shares of our common stock, at our election. The conversion of the 1.0% 2035 Debentures will be based upon a conversion ratio of 41.4576 common shares per $1,000 principal amount, subject to adjustments. Conversion is only allowed in the following circumstances and to the following extent: (i) prior to June 15, 2035, on any date during any fiscal quarter (and only during such fiscal quarter) if the closing sale price of our common stock was more than 130% of the then current conversion price for at least 20 trading days in the period of the 30 consecutive trading days ending on the last trading day of the previous fiscal quarter; (ii) during the five consecutive business-day period following any five consecutive trading-day period in which the trading price for $1,000 principal amount of the 1.0% 2035 Debentures for each day during such five trading-day period was less than 98% of the closing sale price of our common stock multiplied by the then current conversion rate; (iii) upon the occurrence of specified corporate transactions, as described in the indenture for the 1.0% 2035 Debentures; or (iv) at the option of the holder at any time on or after June 15, 2035. Additionally, we may redeem the 1.0% 2035 Debentures, in whole or in part, on or after December 20, 2022 for cash at a price equal to 100% of the principal amount of the 1.0% 2035 Debentures to be purchased plus any accrued and unpaid interest, including any additional interest to, but excluding, the repurchase date. Each holder shall have the right, at such holder’s option, to require us to repurchase all or any portion of the 1.0% 2035 Debentures held by such holder on December 15, 2022, December 15, 2027, or December 15, 2032 at par plus accrued and unpaid interest. If we undergo a fundamental change or non-stock change of control (as described in the indenture for the 1.0% 2035 Debentures) prior to maturity, holders will have the option to require us to repurchase all or any portion of their debentures for cash at a price equal to 100% of the principal amount of the 1.0% 2035 Debentures to be purchased plus any accrued and unpaid interest. The 1.0% 2035 Debentures were convertible as of December 31, 2020, as our common stock price exceeded the conversion threshold price of 130% of the applicable conversion price per share for at least 20 trading days during the 30 consecutive trading days ending December 31, 2020. As a result, the holders of our 1.0% 2035 Debentures have the right to convert all or any portion of their debentures between January 1, 2021 and March 31, 2021. As of December 31, 2020, the net carrying amount of the 1.0% 2035 Debentures was included within the current portion of long-term debt. As of December 31, 2020, the if-converted value of the 1.0% 2035 Debentures exceeded its principal amount by $560.0 million. 1.25% Convertible Debentures due 2025 In March 2017, we issued $350.0 million in aggregate principal amount of 1.25% Senior Convertible Debentures due in 2025 (the "1.25% 2025 Debentures") in a private placement. The proceeds were approximately $343.6 million, net of issuance costs. We used a portion of the proceeds to repurchase 5.8 million shares of our common stock for $99.1 million and $17.8 million in aggregate principal on our 2.75% 2031 Debentures. The 1.25% 2025 Debentures bear interest at 1.25% per year, payable in cash semi-annually in arrears, beginning on October 1, 2017. The 1.25% 2025 Debentures mature on April 1, 2025. The 1.25% 2025 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 1.25% 2025 Debentures. The 1.25% 2025 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. We account separately for the liability and equity components of the 1.25% 2025 Debentures in accordance with authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. The guidance requires the carrying amount of the liability component to be estimated by measuring the fair value of a similar liability that does not have an associated conversion feature and record the remainder in stockholders’ equity. At issuance, we allocated $252.1 million to long-term debt, and $97.9 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through April 1, 2025. If converted, the principal amount of the 1.25% 2025 Debentures is payable in cash and any amounts payable in excess of the principal amount will be paid in cash or shares of our common stock, at our election. The conversion of the 1.25% 2025 Debentures will be based upon a conversion ratio of 50.7957 common shares per $1,000 principal amount, subject to adjustments. Conversion is only allowed in the following circumstances and to the following extent: (i) prior to October 1, 2024, on any date during any fiscal quarter (and only during such fiscal quarter) if the closing sale price of our common stock was more than 130% of the then current conversion price for at least 20 trading days in the period of the 30 consecutive trading days ending on the last trading day of the previous fiscal quarter; (ii) at any time on or after October 1, 2024; (iii) during the five consecutive business-day period immediately following any five consecutive trading-day period in which the trading price for $1,000 principal amount of the 1.25% 2025 Debentures for each day during such five trading-day period was less than 98% of the closing sale price of our common stock multiplied by the then current conversion rate; or (iv) upon the occurrence of specified corporate transactions, as described in the indenture for the 1.25% 2025 Debentures. We may not redeem the 1.25% 2025 Debentures prior to the maturity date. If we undergo a fundamental change or non-stock change of control (as described in the indenture for the 1.25% 2025 Debentures) prior to maturity, holders will have the option to require us to repurchase all or any portion of their debentures for cash at a price equal to 100% of the principal amount of the 1.25% 2025 Debentures to be purchased plus any accrued and unpaid interest. During the second quarter of fiscal year 2020, we repurchased $87.3 million notional amount of our 1.25% 2025 Debentures for $112.3 million, of which we allocated $72.8 million to debt and $39.5 million to equity based upon ASC 470-20. Also, in connection with the repurchases, we wrote off $16.7 million of unamortized discount and $0.7 million of unamortized costs. As a result, we recorded a $2.8 million loss associated with the repurchases. Following the repurchases, $262.7 million in aggregate principal amount of the 1.25% 2025 Debentures remains outstanding. The 1.25% 2025 Debentures were convertible as of December 31, 2020, as our common stock price exceeded the conversion threshold price of 130% of the applicable conversion price per share for at least 20 trading days during the 30 consecutive trading days ending December 31, 2020. As a result, the holders of our 1.25% 2025 Debentures have the right to convert all or any portion of their debentures between January 1, 2021 and March 31, 2021. The holders previously had the right to convert all or any portion of their debentures at the aforementioned conversion ratio beginning October 1, 2020 through December 31, 2020. As of December 31, 2020, the net carrying amount of the 1.25% 2025 Debentures was included within the current portion of long-term debt, and $44.7 million has been reclassified from permanent equity to mezzanine equity. As of December 31, 2020, the if-converted value of the 1.25% 2025 Debentures exceeded its principal amount by $325.6 million. 1.50% Convertible Debentures due 2035 In June 2015, we issued $263.9 million in aggregate principal amount of 1.5% Senior Convertible Debentures due in 2035 in exchange for $256.2 million in aggregate principal amount of our 2.75% 2031 Debentures. Total proceeds, net of issuance costs, were $253.2 million. The 1.5% 2035 Debentures were issued at 97.09% of the principal amount, which resulted in a discount of $7.7 million. The 1.5% 2035 Debentures bear interest at 1.5% per year, payable in cash semi-annually in arrears. In addition to ordinary interest and default additional interest, beginning with the semi-annual interest period commencing on November 1, 2021, contingent interest will accrue during any regular semi-annual interest period where the average trading price of our 1.5% 2035 Debentures for the ten trading day period immediately preceding the first day of such semi-annual period is greater than or equal to $1,200 per $1,000 principal amount of our 1.5% 2035 Debentures, in which case, contingent interest will accrue at a rate of 0.50% per annum of such average trading price. The 1.5% 2035 Debentures mature on November 1, 2035, subject to the right of the holders to require us to redeem the 1.5% 2035 Debentures on November 1, 2021, 2026, or 2031. The 1.5% 2035 Debentures are general senior unsecured obligations and rank equally in right of payment with all of our existing and future unsecured, unsubordinated indebtedness and senior in right of payment to any indebtedness that is contractually subordinated to the 1.5% 2035 Debentures. The 1.5% 2035 Debentures will be effectively subordinated to indebtedness and other liabilities of our subsidiaries. We account separately for the liability and equity components of the 1.5% 2035 Debentures in accordance with authoritative guidance for convertible debt instruments that may be settled in cash upon conversion. At issuance, we allocated $208.6 million to long-term debt, and $55.3 million has been recorded as additional paid-in capital, which is being amortized to interest expense using the effective interest rate method through November 2021. If converted, the principal amount of the 1.5% 2035 Debentures is payable in cash and any amounts payable in excess of the principal amount, will be paid in cash or shares of our common stock, at our election. The conversion of the 1.5% 2035 Debentures will be based upon a conversion ratio of 48.5216 common shares per $1,000 principal amount, subject to adjustments. Conversion is only allowed in the following circumstances and to the following extent: (i) prior to May 1, 2035, on any date during any fiscal quarter beginning after September 30, 2015 (and only during such fiscal quarter) if the closing sale price of our common stock was more than 130% of the then current conversion price for at least 20 trading days in the period of the 30 consecutive trading days ending on the last trading day of the previous fiscal quarter; (ii) during the five consecutive business-day period following any five consecutive trading-day period in which the trading price for $1,000 principal amount of the 1.5% 2035 Debentures for each day during such five trading-day period was less than 98% of the closing sale price of our common stock multiplied by the then current conversion rate; (iii) upon the occurrence of specified corporate transactions, as described in the indenture for the 1.5% 2035 Debentures; or (iv) at the option of the holder at any time on or after May 1, 2035. Additionally, we may redeem the 1.5% 2035 Debentures, in whole or in part, on or after November 5, 2021 for cash at a price equal to 100% of the principal amount of the 1.5% 2035 Debentures to be purchased plus any accrued and unpaid interest, including any additional interest to, but excluding, the repurchase date. Each holder shall have the right, at such holder’s option, to require us to repurchase all or any portion of the 1.5% 2035 Debentures held by such holder on November 1, 2021, November 1, 2026, or November 1, 2031 at par plus accrued and unpaid interest. If we undergo a fundamental change (as described in the indenture for the 1.5% 2035 Debentures) prior to maturity, holders will have the option to require us to repurchase all or any portion of their debentures for cash at a price equal to 100% of the principal amount of the 1.5% 2035 Debentures to be purchased plus any accrued and unpaid interest. During the second quarter of fiscal year 2020, we repurchased $36.5 million notional amount of 1.5% 2035 Debentures for $41.3 million, of which we allocated $34.7 million to debt and $6.6 million to equity based upon ASC 470-20. Also, in connection with the repurchases, we wrote off $2.5 million of unamortized discount and $0.1 million of unamortized costs. As a result, we recorded a $0.8 million loss associated with the repurchases. Following the repurchases, $227.4 million in aggregate principal amount of the 1.5% 2035 Debentures remains outstanding. The 1.5% 2035 Debentures were convertible as of December 31, 2020, as our common stock price exceeded the conversion threshold price of 130% of the applicable conversion price per share for at least 20 trading days during the 30 consecutive trading days ending December 31, 2020. As a result, the holders of our 1.5% 2035 Debentures have the right to convert all or any portion of their debentures between January 1, 2021 and March 31, 2021. The holders previously had the right to convert all or any portion of their debentures at the aforementioned conversion ratio beginning October 1, 2020 through December 31, 2020. As of December 31, 2020, the net carrying amount of the 1.5% 2035 Debentures was included within the current portion of long-term debt, and $8.6 million has been reclassified from permanent equity to mezzanine equity. As of December 31, 2020, the if-converted value of the 1.5% 2035 Debentures exceeded its principal amount by $259.1 million. Revolving Credit Facility On July 31, 2020, we amended our revolving credit agreement (the "Amended Revolving Credit Agreement") to, among other things, extend the expiration from April 15, 2021 to April 15, 2022. The Amended Revolving Credit Agreement provides for aggregate borrowing commitments of $242.5 million (the "Revolving Credit Facility"), including the revolving facility loans, the swingline loans and issuance of letters of credit. The borrowing outstanding under the Revolving Credit Facility bears interest at either (i) LIBOR plus an applicable margin of 1.50% or 1.75%, or (ii) the alternative base rate plus an applicable margin of 0.50% or 0.75%. The Revolving Credit Facility is secured by substantially all our assets. The Revolving Credit Agreement contains customary affirmative and negative covenants and conditions to borrowing, as well as customary events of default. At any time that there are any outstanding borrowings (excluding up to $25,000,000 of issued and undrawn Letters of Credit) under the Revolving Credit Facility, we are required to maintain a Consolidated Senior Secured Leverage Ratio (as defined in the Revolving Credit Agreement) not exceeding 4.00 to 1.00. We were in compliance with all the debt covenants as of December 31, 2020. |
Stockholders' Equity Stockholde
Stockholders' Equity Stockholders' Equity (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure [Text Block] | Share Repurchases On April 29, 2013, our Board of Directors approved a share repurchase program for up to $500.0 million, which was increased by $500.0 million on April 29, 2015. On August 1, 2018, our Board of Directors approved an additional $500.0 million under our share repurchase program. Under the terms of the share repurchase program, we have the ability to repurchase shares from time to time through a variety of methods, which may include open market purchases, privately negotiated transactions, block trades, accelerated stock repurchase transactions, or any combination of such methods. The share repurchase program does not require us to acquire any specific number of shares and may be modified, suspended, extended or terminated by us at any time without prior notice. The timing and the amount of any purchases are subject to our assessment of the prevailing market conditions, general economic conditions, capital allocation alternatives, and other factors. We did not repurchase any shares of our common stock for the three months ended December 31, 2020, and we repurchased 5.7 million shares of our common stock for $92.4 million for the three months ended December 31, 2019 under the program. The amount paid in excess of par value is recognized in additional paid in capital and these shares were retired upon repurchase. Since the commencement of the program, we have repurchased 73.8 million shares for $1,238.8 million. As of December 31, 2020, approximately $261.2 million remained available for future repurchases under the program. |
Net Income (Loss) Per Share
Net Income (Loss) Per Share | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Net (Loss) Income Per Share | The following table sets forth the computation for basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended December 31, 2020 2019 Numerator: Net income from continuing operations $ 6,954 $ 43,624 Net income from discontinued operations 7,941 5,061 Net income $ 14,895 $ 48,685 Denominator: Weighted average common shares outstanding — basic 283,818 284,130 Dilutive effect of convertible instruments 21,636 — Dilutive effect of employee stock compensation plans (a) 8,756 5,323 Weighted average common shares outstanding — diluted 314,210 289,453 Net income per common share - basic: Continuing operations $ 0.02 $ 0.15 Discontinued operations 0.03 0.02 Total net income per basic common share $ 0.05 $ 0.17 Net income per common share - diluted: Continuing operations $ 0.02 $ 0.15 Discontinued operations 0.03 0.02 Total net income per diluted common share $ 0.05 $ 0.17 Anti-dilutive equity instruments excluded from the calculation 580 1,336 Contingently issuable awards excluded from the calculation — 2,932 |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock-Based Compensation | On January 22, 2020, our shareholders adopted our 2020 Stock Plan (the "2020 Stock Plan"). The 2020 Stock Plan (i) grants the Company's compensation committee the discretionary authority over the plan; (ii) makes employees, directors, consultants, and advisors of the Company and its subsidiaries eligible to receive awards; (iii) sets the number of shares of common stock that may be issued in satisfaction of awards to be 9,000,000 shares, plus the number of shares available for issuance under the amended and restated 2000 Stock Plan (the "Amended and Restated 2000 Stock Plan"); and (iv) identifies the annual limits on shares granted to each individual and the types of awards permissible. As of December 31, 2020, we had 11.3 million shares available for future grants under the 2020 Stock Plan. We recognize stock-based compensation expenses over the requisite service periods. Our share-based awards are classified within equity upon issuance. The amounts included in the consolidated statements of operations related to stock-based compensation are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Cost of hosting and professional services $ 6,563 $ 4,977 Cost of product and licensing 75 129 Cost of maintenance and support 426 393 Research and development 8,440 8,440 Sales and marketing 8,943 7,025 General and administrative 10,459 9,438 Total $ 34,906 $ 30,402 Stock Options The table below summarizes activities related to stock options for the three months ended December 31, 2020: Number of Weighted Weighted Aggregate Intrinsic Value (a) Outstanding at September 30, 2020 9,355 $ 17.18 Outstanding at December 31, 2020 9,355 $ 17.18 1.3 years $ 0.3 million Exercisable at December 31, 2020 9,355 $ 17.18 1.3 years $ 0.3 million Exercisable at December 31, 2019 9,978 $ 17.18 2.3 years $ — million (a) The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2020 ($44.09) over the exercise price of the underlying options. The aggregate intrinsic values of stock options exercised during the three months ended December 31, 2020 and 2019 were de minimis. Restricted Units Restricted units are not included in issued and outstanding common stock until the units are vested and underlying shares are released. The purchase price for vested restricted units is $0.001 per share. The table below summarizes activities relating to restricted units for the three months ended December 31, 2020: Number of Shares Underlying Restricted Units — Performance-Based Awards Number of Shares Underlying Restricted Units — Time-Based Awards Outstanding at September 30, 2020 2,620,120 7,157,649 Granted 665,977 1,905,186 Earned/released (301,870) (2,814,891) Forfeited (97,668) (175,998) Outstanding at December 31, 2020 2,886,559 6,071,946 Weighted average remaining recognition period of outstanding Restricted Units 1.5 years 1.8 years Unrecognized stock-based compensation expense of outstanding Restricted Units $30.3 million $81.9 million Aggregate intrinsic value of outstanding Restricted Units (a) $127.3 million $267.7 million (a) The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2020 ($44.09) over the purchase price of the underlying restricted units. A summary of the weighted-average grant-date fair value of restricted units granted, and the aggregate intrinsic value of restricted units vested during the periods noted is as follows: Three Months Ended December 31, 2020 2019 Weighted-average grant-date fair value per share $ 37.26 $ 17.08 Total intrinsic value of shares vested (in millions) $ 119.4 $ 95.4 Performance-based restricted units outstanding as of December 31, 2020 include performance goals based on total shareholder return relative to our peers during the performance period. The awards actually earned will be up to two hundred percent of the target number of the performance-based restricted units. Compensation expense is recorded ratably over the performance period of the award based on the grant date fair value as determined using a Monte Carlo simulation model. Below is a summary of key assumptions of the valuation: Three Months Ended December 31, 2021 2020 Dividend yield 0.0 % 0.0 % Expected volatility 34.95 % 27.73 % Risk-free interest rate 0.21 % 1.62 % Expected term (in years) 3 3 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | The components of income from continuing operations before income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Domestic $ (4,995) $ (3,422) Foreign 14,252 5,749 Income before income taxes $ 9,257 $ 2,327 The components of provision (benefit) for income taxes from continuing operations are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Domestic $ (2,892) $ (43,145) Foreign 5,195 1,848 Provision (benefit) for income taxes $ 2,303 $ (41,297) Effective tax rate 24.9 % (1,774.7) % The effective income tax rate is based upon the income for the year, the composition of the income in different countries, changes relating to valuation allowances and as necessary, and adjustments, if any, for the potential tax consequences of resolving audits or other tax contingencies. Our effective income tax rate may vary based on the geographic mix of our income. Our effective income tax rate was 24.9% for the three months ended December 31, 2020, compared to (1,774.7)% for the three months ended December 31, 2019. The effective tax rate for the three months ended December 31, 2020 differed from the U.S. federal statutory rate of 21.0% primarily due to the base erosion anti-abuse tax offset by a change in the valuation allowance in the United States. The effective tax rate for the three months ended December 31, 2019 differed from the U.S. federal statutory rate of 21.0% primarily due to a net tax benefit related an adjustment to domestic valuation allowance in connection with the Cerence spin-off. We have made a policy election to classify the deferred tax assets and liabilities associated with assets and liabilities held for sale (including those of our medical transcription and EHR go-live businesses) with other deferred tax assets and liabilities. As a result, the deferred tax assets included in Other Assets as of December 31, 2020 include deferred tax liabilities of approximately $50.0 million associated with our medical transcription business. Valuation Allowances As of December 31, 2020 and September 30, 2020, we had a full valuation allowance against net domestic deferred tax assets and certain foreign deferred tax assets. We intend to maintain valuation allowances on these deferred tax assets until there is sufficient evidence to support the release of all or some portion of these allowances. A significant portion of our domestic deferred tax assets relate to U.S. net operating losses. Cumulative pretax losses have historically represented significant negative evidence of our ability to realize our domestic deferred tax assets. We continue to evaluate all sources of domestic taxable income including both the reversal of existing deferred tax liabilities and the likelihood that we could sustain pretax profitability in the future. As of December 31, 2020, we believe that there is a reasonable possibility that within the next twelve months these sources of taxable income may become sufficient positive evidence to support a conclusion that a substantial portion of the domestic valuation allowance, excluding capital losses, could be released. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Litigation and Other Claims Similar to many companies in the software industry, we are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including actions with respect to contracts, intellectual property, employment, benefits and securities matters. At each balance sheet date, we evaluate contingent liabilities associated with these matters in accordance with ASC 450 "Contingencies". If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Significant judgments are required for the determination of probability and the range of the outcomes, and the estimates are based only on the information available at the time. Due to the inherent uncertainties involved in claims, legal proceedings, and in estimating the losses that may arise, actual outcomes may differ from our estimates. Contingencies deemed not probable or for which losses were not estimable in one period may become probable, or losses may become estimable in later periods which may have a material impact on our results of operations and financial position. As additional information becomes available, we reassess the potential liability related to our pending claims and litigation and may revise our estimates. As of December 31, 2020, accrued losses were not material to our condensed consolidated financial statements, and we do not expect any pending matter to have a material impact on our condensed consolidated financial statements. Guarantees and Other We include indemnification provisions in the contracts we enter into with customers and business partners. Generally, these provisions require us to defend claims arising out of our products’ infringement of third-party intellectual property rights, breach of contractual obligations and/or unlawful or otherwise culpable conduct. The indemnity obligations generally cover damages, costs and attorneys’ fees arising out of such claims. In most, but not all cases, our total liability under such provisions is limited to either the value of the contract or a specified, agreed upon amount. In some cases, our total liability under such provisions is unlimited. In many, but not all cases, the term of the indemnity provision is perpetual. While the maximum potential amount of future payments we could be required to make under all the indemnification provisions is unlimited, we believe the estimated fair value of these provisions is minimal due to the low frequency with which these provisions have been triggered. We indemnify our directors and officers to the fullest extent permitted by Delaware law, which provides among other things, indemnification to directors and officers for expenses, judgments, fines, penalties and settlement amounts incurred by such persons in their capacity as a director or officer of the company, regardless of whether the individual is serving in any such capacity at the time the liability or expense is incurred. Additionally, in connection with certain acquisitions, we agreed to indemnify the former officers and members of the boards of directors of those companies, on similar terms as described above, for a period of six years from the acquisition date. In certain cases, we purchase director and officer insurance policies related to these obligations, which fully cover the six-year period. To the extent that we do not purchase a director and officer insurance policy for the full period of any contractual indemnification, and such directors and officers do not have coverage under separate insurance policies, we would be required to pay for costs incurred, if any, as described above. |
Leases (Notes)
Leases (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | Operating Leases Operating Leases We have various operating leases for office space, data centers, office equipment and automobiles around the world with lease terms expiring between 2021 and 2030. We determine if an arrangement is a lease at inception. The current portion of our operating lease liabilities is included in accrued expenses and other current liabilities and the long-term portion is included in operating lease liabilities. Operating lease assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The interest rate used to determine the present value of the future lease payments is our incremental borrowing rate. Due to the interest rate implicit in most of our leases not being readily determinable, our incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Operating lease assets also include any prepaid lease payments and lease incentives. Our lease terms include periods under options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Our lease agreements generally contain lease and non-lease components. Non-lease components primarily include payments for maintenance and utilities. We combine fixed payments for non-lease components with our lease payments and account for them together as a single lease component which increases the amount of our lease assets and liabilities. Payments under our lease arrangements are primarily fixed. Variable rents, if any, are expensed as incurred. As of December 31, 2020 , our operating leases had a weighted average remaining lease term of 4.8 years and a weighted average discount rate of 3.8%. Future lease payments under operating leases as of December 31, 2020 were as follows (dollars in thousands): Fiscal Year Operating Leases Operating leases under restructuring Total 2021 $ 18,945 $ 3,171 $ 22,116 2022 21,671 3,828 25,499 2023 16,494 3,440 19,934 2024 14,110 1,996 16,106 2025 12,360 1,346 13,706 Thereafter 41,524 1,843 43,367 Total $ 125,104 $ 15,624 $ 140,728 As of December 31, 2020, we have subleased certain office space that is included in the above table to third parties. As of December 31, 2020, the aggregate sublease income to be recognized during the remaining lease terms is $11.1 million, with approximately an average of $1.8 million annually for each of the next five fiscal years and approximately $2.1 million thereafter. Our operating lease cost was approximately $7.2 million for the three months ended December 31, 2020 and $7.8 million for the three months ended December 31, 2019. Operating lease payments included within operating cash flows were $7.7 million for the three months ended December 31, 2020 and $7.6 million for the three months ended December 31, 2019. |
Segment and Geographic Informat
Segment and Geographic Information and Significant Customers | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information and Significant Customers | Our Chief Operating Decision Maker ("CODM") regularly reviews segment revenues and segment profits for performance evaluation and resources allocation. Segment revenues include certain acquisition-related adjustments for revenues that would otherwise have been recognized without the acquisition. Segment profits reflect controllable costs directly related to each segment and the allocation of certain corporate expenses such as corporate sales and marketing expenses and research and development project costs that benefit multiple segments. Certain items such as stock-based compensation, amortization of intangible assets, acquisition-related costs, net, restructuring and other charges, net, other income (expenses), net and certain unallocated corporate expenses are excluded from segment profits, which allow for more meaningful comparisons to the financial results of the historical operations for performance evaluation and resources allocation by our CODM. • The Healthcare segment is primarily engaged in providing clinical speech and clinical language understanding solutions that improve the clinical documentation process, from capturing the complete patient record to improving clinical documentation and quality measures for reimbursement. • The Enterprise segment is primarily engaged in using speech, natural language understanding, and artificial intelligence to provide automated customer solutions and services for voice, mobile, web and messaging channels. • The Other segment consists primarily of voicemail transcription services. As more fully described in Note 4, on November 17, 2020, we entered into a definitive agreement to sell our medical transcription and EHR go-live businesses. Effective the first quarter of fiscal year 2021, the results of operations of our medical transcription and EHR go-live businesses are included within discontinued operations for all periods presented. Our Healthcare segment revenue and segment profit for the historical periods have been recast to reflect the forementioned change. We do not track our assets by segment. Consequently, it is not practical to show assets or depreciation by segment. The following table presents segment results along with a reconciliation of segment profit to Income before income taxes (dollars in thousands): Three Months Ended December 31, 2020 2019 Segment revenues : Healthcare $ 199,332 $ 213,810 Enterprise 139,152 138,473 Other 7,269 9,315 Total segment revenues $ 345,753 $ 361,598 Less: acquisition-related revenues adjustments — (89) Total revenues $ 345,753 $ 361,509 Segment profit: Healthcare $ 74,812 $ 73,714 Enterprise 41,468 41,767 Other 4,971 5,115 Total segment profit $ 121,251 $ 120,596 Corporate expenses and other, net (31,115) (30,448) Acquisition-related revenues — (89) Stock-based compensation (34,906) (30,402) Amortization of intangible assets (14,793) (15,758) Acquisition-related costs, net (325) (1,220) Restructuring and other charges, net (8,566) (6,683) Other expenses, net (22,289) (33,669) Income before income taxes $ 9,257 $ 2,327 No country outside of the United States provided greater than 10% of our total revenues. Revenues, classified by the major geographic areas in which our customers are located, were as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 United States $ 272,598 $ 297,375 International 73,155 64,134 Total revenues $ 345,753 $ 361,509 |
Supplemental Cash Flow (Notes)
Supplemental Cash Flow (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow [Abstract] | |
Cash Flow, Supplemental Disclosures [Text Block] | . Supplemental Cash Flow Information Cash paid for Interest and Income Taxes: Three Months Ended December 31, 2020 2019 (Dollars in thousands) Interest paid $ 21,087 $ 26,692 Income taxes paid $ 2,738 $ 1,615 |
subsequent event (Notes)
subsequent event (Notes) | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Event [Line Items] | |
COVID-19 Pandemic | COVID-19 Pandemic The novel coronavirus ("COVID-19") pandemic has disrupted economic markets, and the future economic impact, duration and spread of COVID-19 is still uncertain at this time. The COVID-19 pandemic adversely affected our results of operations and liquidity for fiscal year 2020, and may continue to adversely impact our business, results of operations, cash flows and financial condition. While we have not experienced significant disruptions to our ability to conduct business thus far as a result of the pandemic, we are currently conducting business with substantial modifications to employee travel, employee work locations, virtualization or cancellation of customer and employee events, and remote sales, implementation, and support activities, among other modifications. The full extent to which the coronavirus pandemic will impact our business, operations, and financial results in the future will depend on numerous evolving factors and may not be accurately predicted at this time. |
COVID-19 Pandemic
COVID-19 Pandemic | 3 Months Ended |
Dec. 31, 2020 | |
COVID-19 Pandemic [Abstract] | |
COVID-19 Pandemic | COVID-19 Pandemic The novel coronavirus ("COVID-19") pandemic has disrupted economic markets, and the future economic impact, duration and spread of COVID-19 is still uncertain at this time. The COVID-19 pandemic adversely affected our results of operations and liquidity for fiscal year 2020, and may continue to adversely impact our business, results of operations, cash flows and financial condition. While we have not experienced significant disruptions to our ability to conduct business thus far as a result of the pandemic, we are currently conducting business with substantial modifications to employee travel, employee work locations, virtualization or cancellation of customer and employee events, and remote sales, implementation, and support activities, among other modifications. The full extent to which the coronavirus pandemic will impact our business, operations, and financial results in the future will depend on numerous evolving factors and may not be accurately predicted at this time. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | We derive revenue from the following sources: (1) hosting services, (2) software licenses, including royalties, (3) maintenance and support ("M&S"), (4) professional services, and (5) sale of hardware. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and the collectibility of the consideration is probable. The majority of our arrangements with customers typically contain multiple products and services. We account for individual products and services separately if they are distinct--that is, if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer. We recognize revenue after applying the following five steps: • identification of the contract, or contracts, with a customer; • identification of the performance obligations in the contract, including whether they are distinct within the context of the contract; • determination of the transaction price, including the constraint on variable consideration; • allocation of the transaction price to the performance obligations in the contract; and • recognition of revenue when, or as, performance obligations are satisfied. We allocate the transaction price of the arrangement based on the relative estimated standalone selling price ("SSP") of each distinct performance obligation. In determining SSP, we maximize observable inputs and consider a number of data points, including: • the pricing of standalone sales (in the instances where available); • the pricing established by management when setting prices for deliverables that are intended to be sold on a standalone basis; • contractually stated prices for deliverables that are intended to be sold on a standalone basis; and • other pricing factors, such as the geographical region in which the products are sold and expected discounts based on the customer size and type. We only include estimated amounts of variable consideration in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASU No. 2014-09, "Revenue from Contracts with Customers: Topic 606" ("ASC 606"), which we estimate based on historical return experience and other relevant factors and record a reduction to revenue and accounts receivable. Other forms of contingent revenue or variable consideration are infrequent. Revenue is recognized when control of these products and services is transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those services. We assess the timing of the transfer of products or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. In accordance with the practical expedient in ASC 606-10-32-18, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of financing to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set-up fees nor other upfront fees paid by our customers to represent a financing component. Certain products are sold through distributors or resellers. Certain distributors and resellers have been granted right of return and selling incentives which are accounted for as variable consideration when estimating the amount of revenue to be recognized. Returns and credits are estimated at the contract inception and updated at the end of each reporting period as additional information becomes available. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate the variable consideration associated with this group of customers. Reimbursements for out-of-pocket costs generally include, but are not limited to, costs related to transportation, lodging and meals. Revenue from reimbursed out-of-pocket costs is accounted for as variable consideration. Shipping and handling activities are not considered a contract performance obligation. We record shipping and handling costs billed to customers as revenue with offsetting costs recorded as cost of revenue. Performance Obligations Hosting Hosting services, which allow our customers to use the hosted software over the contract period without taking possession of the software, are provided on a usage basis as consumed or on a fixed fee subscription basis. Our hosting contract terms generally range from one to five years. As each day of providing services is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, we have determined that our hosting services arrangements are a single performance obligation comprised of a series of distinct services. These services include variable consideration, which is typically a function of usage. We recognize revenue as each distinct service period is performed (i.e., recognized as incurred). Subscription-based revenue represents a single promise to stand-ready to provide access to our hosting services. Revenue is recognized over time on a ratable basis over the hosting contract term, which generally ranges from one to five years. Software Licenses On-premise software licenses sold with non-distinct professional services to customize and/or integrate the underlying software are accounted for as a combined performance obligation. Revenue from the combined performance obligation is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours. Revenue from distinct on-premise software licenses, which do not require professional services to customize and/or integrate the software license, is recognized at the point in time when the software is made available to the customer and control is transferred. Revenue from software licenses sold on a royalty basis, where the license of intellectual property is the predominant item to which the royalty relates, is recognized in the period the usage occurs in accordance with the practical expedient in ASC 606-10-55-65(A). Maintenance and Support Our M&S contracts generally include telephone support and the right to receive unspecified upgrades and updates on a when-and-if available basis. M&S revenue is recognized over time on a ratable basis over the contract period because we transfer control evenly by providing a stand-ready service. Professional Services Revenue from distinct professional services, including training, is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours. Hardware Hardware revenue is recognized at the point in time when control is transferred to the customer, which is typically upon delivery. Significant Judgments Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our license contracts often include professional services to customize and/or integrate the licenses into the customer’s environment. Judgment is required to determine whether the license is considered distinct and accounted for separately, or not distinct and accounted for together with professional services. Judgments are required to determine the SSP for each distinct performance obligation. When SSP is directly observable, we estimate SSP based upon the historical transaction prices, adjusted for geographic considerations, customer classes, and customer relationship profiles. In instances where SSP is not directly observable, we determine SSP using information that may include market conditions and other observable inputs. We may have more than one SSP for individual products and services due to the stratification of those products and services by customers and circumstances. In these instances, we may use information such as the size of the customer and geographic region in determining SSP. Determining SSP for performance obligations which we never sell separately also requires significant judgment. In estimating the SSP for such performance obligations, we consider the likely price that would have resulted from established pricing practices had the deliverable been offered separately and the prices a customer would likely be willing to pay. From time to time, we may enter into arrangements with third party suppliers to resell products or services. In such cases, we evaluate whether we are the principal (i.e. report revenues on a gross basis) or agent (i.e. report revenues on a net basis). In doing so, we first evaluate whether we control the good or service before it is transferred to the customer. If we control the good or service before it is transferred to the customer, we are the principal; if not, we are the agent. Generally, we control a promised good or service before transferring that good or service to the customer and act as the principal to the transaction. Determining whether we control the good or service before it is transferred to the customer may require judgment. Disaggregated Revenue We disaggregate revenue from contracts with customers by reportable segment and products and services as this presentation depicts the timing, risks and uncertainty of our revenue streams, which is also in line with how we manage our businesses, assess performance, and determine management compensation. Our disaggregated revenue from continuing operations is as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Hosting and professional services Product and licensing Maintenance and support Total Hosting and professional services Product and licensing Maintenance and support Total Healthcare $ 110,803 $ 54,783 $ 33,746 $ 199,332 $ 88,427 $ 91,792 $ 33,591 $ 213,810 Enterprise 78,741 30,286 30,125 139,152 77,637 31,736 29,011 138,384 Other 6,288 968 13 7,269 7,857 1,487 (29) 9,315 Total revenues $ 195,832 $ 86,037 $ 63,884 $ 345,753 $ 173,921 $ 125,015 $ 62,573 $ 361,509 Hardware revenue comprised approximately $6.6 million of total product and license revenue for the three months ended December 31, 2020, and $6.4 million of total product and license revenue for the three months ended December 31, 2019. Contract Acquisition Costs We are required to capitalize certain contract acquisition costs under ASC 606. The capitalized costs primarily relate to paid commissions and other direct, incremental costs to acquire customer contracts. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate contract acquisition costs for groups of customer contracts. We elect to apply the practical expedient in ASC 340-40-25-4 and will expense contract acquisition costs as incurred where the expected period of benefit is one year or less. Sales commissions paid on renewal maintenance and support are not commensurate with sales commissions paid on the initial maintenance and support contract. Contract acquisition costs are deferred and amortized on a straight-line basis over the period of benefit, which we have estimated to be between one and five years. The period of benefit was determined based on an average customer contract term, expected contract renewals, changes in technology and our ability to retain customers including canceled contracts. Contract acquisition costs are classified as current or noncurrent assets based on when the expense will be recognized. The current and noncurrent portions of contract acquisition costs are included in Prepaid expenses and other current assets, and Other assets, respectively. As of December 31, 2020, we had $27.1 million of current contract acquisition costs from continuing operations and $63.0 million of noncurrent contract acquisition costs from continuing operations. As of September 30, 2020, we had $20.9 million of current contract acquisition costs from continuing operations and $51.6 million of noncurrent contract acquisition costs from continuing operations. Commission expense is primarily included in sales and marketing expense on the consolidated statements of operations. We had amortization expense related to contract acquisition costs from continuing operations of $4.7 million for the three months ended December 31, 2020, and $3.6 million for the three months ended December 31, 2019. There was no impairment related to commission costs capitalized. Capitalized Contract Costs We capitalize incremental costs incurred to fulfill our contracts that (1) relate directly to the contract, (2) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (3) are expected to be recovered through revenue generated under the contract. Our capitalized costs consist primarily of setup costs, such as costs to stand-up, customize, and develop applications for each customer. These costs are incurred to satisfy our stand-ready obligation to provide access to our connected offerings. The contract costs are expensed to cost of revenue as we satisfy our stand-ready obligation over the contract term, which we estimate to be between one and five years. The contract term estimation was determined based on an average customer contract term, expected contract renewals, changes in technology, and our ability to retain customers including canceled contracts. We classify capitalized contract costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of capitalized contract fulfillment costs are included in Prepaid expenses and other current assets, and Other assets, respectively. At December 31, 2020, we had $19.0 million of short-term contract costs from continuing operations included with Prepaid expenses and other current assets and $31.9 million of long-term costs from continuing operations included within Other assets. As of September 30, 2020, we had $18.0 million of short-term contract costs from continuing operations included with Prepaid expenses and other current assets and $30.7 million of long-term costs from continuing operations included within Other assets. Trade Accounts Receivable and Contract Balances We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in Accounts receivable, net in our consolidated balance sheets at their net estimated realizable value. We maintain an allowance for doubtful accounts to provide for the estimated amount of receivables that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors. Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period. Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not solely subject to the passage of time. The current and noncurrent portions of contract assets are included in Prepaid expenses and other current assets, and Other assets. As of December 31, 2020, we had $48.3 million of current contract assets from continuing operations and $106.1 million of noncurrent contract assets from continuing operations. As of September 30, 2020, we had $48.7 million of current contract assets from continuing operations and $107.4 million of noncurrent contract assets from continuing operations. The table below shows significant changes in contract assets of continuing operations (dollars in thousands): Contract assets Balance as of September 30, 2020 $ 156,142 Revenues recognized but not billed 99,618 Amounts reclassified to accounts receivable (101,358) Balance at December 31, 2020 $ 154,402 Our contract liabilities, or Deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify Deferred revenue as current or noncurrent based on when we expect to recognize the revenues. At December 31, 2020, we had $374.8 million of Deferred revenue. The table below shows significant changes in Deferred revenue of continuing operations (dollars in thousands): Deferred revenue Balance as of September 30, 2020 $ 348,180 Amounts bill but not recognized 213,232 Revenue recognized (186,635) Balance at December 31, 2020 $ 374,777 Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2020 (dollars in thousands): Within One Year Two to Four Years Greater than Four Years Total Total revenue $ 714,055 $ 952,108 $ 38,966 $ 1,705,129 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies Recently Issued Accounting Pronouncements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Recently Issued Accounting Pronouncements [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Issued Accounting Standards Not Yet Adopted From time to time, new accounting pronouncements are issued by the FASB and are adopted by us as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on our consolidated financial position, results of operations or cash flows, or do not apply to our operations. Convertible Notes In August 2020, the FASB issued ASU 2020-06, "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity," which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. The new guidance eliminates two of the three models in Accounting Standards Codification ("ASC") 470-202 that require separating embedded conversion features from convertible instruments. As a result, only conversion features accounted for under the substantial premium model in ASC 470-20 and those that require bifurcation in accordance with ASC 815-153 will be accounted for separately. For contracts in an entity’s own equity, the new guidance eliminates some of the requirements in ASC 815-404 for equity classification. The guidance also addresses how convertible instruments are accounted for in the diluted earnings per share calculation and requires enhanced disclosures about the terms of convertible instruments and contracts in an entity’s own equity. The guidance will be effective for annual periods beginning after December 15, 2021, and interim periods therein. Early adoption is permitted for all entities for fiscal periods beginning after December 15, 2020, including interim periods within the same fiscal year. Entities are allowed to adopt the guidance using either the modified or full retrospective approach. We are currently assessing the provisions of the guidance and the impact on our consolidated financial statements. |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Three Months Ended December 31, 2020 2019 Hosting and professional services Product and licensing Maintenance and support Total Hosting and professional services Product and licensing Maintenance and support Total Healthcare $ 110,803 $ 54,783 $ 33,746 $ 199,332 $ 88,427 $ 91,792 $ 33,591 $ 213,810 Enterprise 78,741 30,286 30,125 139,152 77,637 31,736 29,011 138,384 Other 6,288 968 13 7,269 7,857 1,487 (29) 9,315 Total revenues $ 195,832 $ 86,037 $ 63,884 $ 345,753 $ 173,921 $ 125,015 $ 62,573 $ 361,509 |
Contract with Customer, Contract Asset, Contract Liability, and Receivable [Table Text Block] | The table below shows significant changes in contract assets of continuing operations (dollars in thousands): Contract assets Balance as of September 30, 2020 $ 156,142 Revenues recognized but not billed 99,618 Amounts reclassified to accounts receivable (101,358) Balance at December 31, 2020 $ 154,402 Deferred revenue Balance as of September 30, 2020 $ 348,180 Amounts bill but not recognized 213,232 Revenue recognized (186,635) Balance at December 31, 2020 $ 374,777 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Remaining Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at December 31, 2020 (dollars in thousands): Within One Year Two to Four Years Greater than Four Years Total Total revenue $ 714,055 $ 952,108 $ 38,966 $ 1,705,129 |
Disposition of Business (Tables
Disposition of Business (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table summarizes the results of the discontinued operations (dollars in thousands): Three Months Ended December 31, 2020 2019 Medical Transcription and EHR go-live Medical Transcription and EHR go-live Automotive Total Major line items constituting net income (loss) of discontinued operations: Revenue $ 47,650 $ 56,724 $ — $ 56,724 Cost of revenue 29,152 34,683 — 34,683 Research and development 1,298 1,948 — 1,948 Sales and marketing 908 696 — 696 General and administrative 12 (20) — (20) Amortization of intangible assets 2,444 3,360 — 3,360 Acquisition-related costs, net — (53) — (53) Restructuring and other charges, net 4,438 — 7,386 7,386 Income (loss) from discontinued operations before income taxes 9,398 16,110 (7,386) 8,724 Provision (benefit) for income taxes 1,457 4,857 (1,194) 3,663 Net income (loss) from discontinued operations $ 7,941 $ 11,253 $ (6,192) $ 5,061 Supplemental information: Depreciation $ 1,063 $ 1,601 $ — $ 1,601 Amortization $ 2,444 $ 3,418 $ — $ 3,418 Stock compensation $ 287 $ 831 $ — $ 831 Capital expenditures $ 57 $ 21 $ — $ 21 The following table summarizes the assets and liabilities of our Medical Transcription and EHR Implementation Businesses included within discontinued operations. (dollars in thousands): December 31, 2020 September 30, 2020 Major classes of assets of discontinued operations: Accounts receivable, net $ 25,328 $ 24,993 Prepaid expenses and other current assets 10,637 10,499 Land, building and equipment, net 6,295 6,129 Goodwill 13,722 13,217 Intangible assets, net 43,770 46,214 Right-of-use assets 5,189 5,437 Other noncurrent assets 7,713 8,033 Total assets $ 112,654 $ 114,522 Major classes of liabilities of discontinued operations: Accounts payable $ 3,247 $ 3,289 Accrued expenses and other current liabilities 12,286 14,010 Deferred revenue 14,433 17,452 Operating lease liabilities 3,231 3,625 Other noncurrent liabilities 11,062 12,150 Total liabilities $ 44,259 $ 50,526 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of goodwill by reportable segment for the three months ended December 31, 2020 are as follows (dollars in thousands): Goodwill Healthcare Enterprise Other Total Balance as of September 30, 2020 $ 1,424,959 $ 682,600 $ 12,936 $ 2,120,495 Purchase accounting adjustments — — — — Effect of foreign currency translation 3,902 6,369 329 10,600 Balance at December 31, 2020 $ 1,428,861 $ 688,969 $ 13,265 $ 2,131,095 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | The changes in the carrying amount of intangible assets for the three months ended December 31, 2020 are as follows (dollars in thousands): Intangible Assets Balance at September 30, 2020 $ 167,270 Amortization (14,793) Effect of foreign currency translation 947 Balance at December 31, 2020 $ 153,424 |
Financial Instruments and Hed_2
Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Quantitative Summary of Fair Value of Derivative Instruments | A summary of the derivative instruments is as follows (dollars in thousands): Derivatives Not Designated as Hedges Balance Sheet Classification Fair Value December 31, September 30, Foreign currency forward contracts Prepaid expenses and other current assets $ 139 $ 109 Foreign currency forward contracts Accrued expenses and other current liabilities $ (124) $ (92) |
Summarized Activity of Derivative Instruments | A summary of other (expense) income, net related to foreign currency forward contracts for the three months ended December 31, 2020 and 2019 is as follows (dollars in thousands): Income Statement Classification Three Months Ended December 31, Derivatives Not Designated as Hedges (Loss) Income Recognized 2020 2019 Foreign currency forward contracts Other (expense) income, net $ (548) $ 585 |
Fair Value Measures (Tables)
Fair Value Measures (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring Basis | Assets and liabilities measured at fair value on a recurring basis at December 31, 2020 and September 30, 2020 consisted of the following (dollars in thousands): December 31, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (a) $ 161,056 $ — $ — $ 161,056 Time deposits (b) — 57,425 — 57,425 Commercial paper, $54,502 at cost (b) — 54,545 — 54,545 Corporate notes and bonds, $10,742 at cost (b) — 10,743 — 10,743 Foreign currency exchange contracts (b) — 139 — 139 Total assets at fair value $ 161,056 $ 122,852 $ — $ 283,908 Liabilities: Foreign currency exchange contracts (b) $ — (124) $ — $ (124) Contingent acquisition payments (c) — — (1,847) (1,847) Total liabilities at fair value $ — $ (124) $ (1,847) $ (1,971) September 30, 2020 Level 1 Level 2 Level 3 Total Assets: Money market funds (a) $ 182,645 $ — $ — $ 182,645 Time deposits (b) — 95,180 — 95,180 Commercial paper, $33,265 at cost (b) — 33,290 — 33,290 Corporate notes and bonds, $15,460 at cost (b) — 15,480 — 15,480 Foreign currency exchange contracts (b) — 109 — 109 Total assets at fair value $ 182,645 $ 144,059 $ — $ 326,704 Liabilities: Foreign currency exchange contracts (b) $ — $ (92) $ — $ (92) Contingent acquisition payments (c) — — (1,796) (1,796) Total liabilities at fair value $ — $ (92) $ (1,796) $ (1,888) |
Changes in Fair Value of Contingent Earn-Out Liabilities | The following table provides a summary of changes in the aggregate fair value of the contingent acquisition payments for all periods presented (dollars in thousands): Three Months Ended December 31, 2020 2019 Balance at beginning of period $ 1,796 $ 2,550 Payments and foreign currency translation 51 (57) Balance at end of period $ 1,847 $ 2,493 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consisted of the following (dollars in thousands): December 31, September 30, Compensation $ 74,403 $ 110,827 Cost of revenue related liabilities 22,145 25,434 Accrued interest payable 3,087 13,484 Consulting and professional fees 11,305 10,589 Sales and marketing incentives 1,537 2,021 Sales and other taxes payable 6,685 6,339 Operating lease obligations 26,108 26,284 Other 12,509 4,276 Total $ 157,779 $ 199,254 |
Restructuring and Other Charg_2
Restructuring and Other Charges, net (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Restructuring and Related Activities [Abstract] | |
Accrual Activity Relating to Restructuring and Other Charges | The following table represents the roll forward of restructuring liabilities for the three months ended December 31, 2020 (dollars in thousands): Personnel Facilities Total Balance at September 30, 2020 $ 1,243 $ 15,614 $ 16,857 Restructuring charges, net 4,789 3,071 7,860 Non-cash adjustment (839) (1,374) (2,213) Cash payments (3,126) (1,242) (4,368) Balance at December 31, 2020 $ 2,067 $ 16,069 $ 18,136 |
Debt and Credit Facilities (Tab
Debt and Credit Facilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | (a) |
Borrowing Obligations and Applicable Margin for Borrowings | As of December 31, 2020 and September 30, 2020, we had the following borrowing obligations (dollars in thousands): December 31, September 30, 5.625% Senior Notes due 2026, net of deferred issuance costs of $3.7 million and $3.9 million, respectively. Effective interest rate 5.625%. $ 496,302 $ 496,148 1.000% Convertible Debentures due 2035, net of unamortized discount of $57.9 million and $64.8 million, respectively, and deferred issuance costs of $2.6 million and $2.9 million, respectively. Effective interest rate 5.622%. 616,037 608,767 1.250% Convertible Debentures due 2025, net of unamortized discount of $42.9 million and $45.2 million, respectively, and deferred issuance costs of $1.8 million and $1.9 million, respectively. Effective interest rate 5.578%. 217,910 215,582 1.500% Convertible Debentures due 2035, net of unamortized discount of $8.1 million and $10.4 million, respectively, and deferred issuance costs of $0.3 million and $0.3 million, respectively. Effective interest rate 5.394%. 219,064 216,627 Deferred issuance costs related to our Revolving Credit Facility (325) (451) Total debt 1,548,988 1,536,673 Less: current portion (a) (1,053,011) (432,209) Total long-term debt $ 495,977 $ 1,104,464 |
Net Income (Loss) Per Share (Ta
Net Income (Loss) Per Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share, Basic and Diluted [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation for basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended December 31, 2020 2019 Numerator: Net income from continuing operations $ 6,954 $ 43,624 Net income from discontinued operations 7,941 5,061 Net income $ 14,895 $ 48,685 Denominator: Weighted average common shares outstanding — basic 283,818 284,130 Dilutive effect of convertible instruments 21,636 — Dilutive effect of employee stock compensation plans (a) 8,756 5,323 Weighted average common shares outstanding — diluted 314,210 289,453 Net income per common share - basic: Continuing operations $ 0.02 $ 0.15 Discontinued operations 0.03 0.02 Total net income per basic common share $ 0.05 $ 0.17 Net income per common share - diluted: Continuing operations $ 0.02 $ 0.15 Discontinued operations 0.03 0.02 Total net income per diluted common share $ 0.05 $ 0.17 Anti-dilutive equity instruments excluded from the calculation 580 1,336 Contingently issuable awards excluded from the calculation — 2,932 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Stock Based Compensation Included in Consolidated Statements of Operations | The amounts included in the consolidated statements of operations related to stock-based compensation are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Cost of hosting and professional services $ 6,563 $ 4,977 Cost of product and licensing 75 129 Cost of maintenance and support 426 393 Research and development 8,440 8,440 Sales and marketing 8,943 7,025 General and administrative 10,459 9,438 Total $ 34,906 $ 30,402 |
Summary of Stock Options Activity | The table below summarizes activities related to stock options for the three months ended December 31, 2020: Number of Weighted Weighted Aggregate Intrinsic Value (a) Outstanding at September 30, 2020 9,355 $ 17.18 Outstanding at December 31, 2020 9,355 $ 17.18 1.3 years $ 0.3 million Exercisable at December 31, 2020 9,355 $ 17.18 1.3 years $ 0.3 million Exercisable at December 31, 2019 9,978 $ 17.18 2.3 years $ — million (a) The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2020 ($44.09) over the exercise price of the underlying options. |
Summary of Activity Relating to Restricted Units and Restricted Stock Awards | he table below summarizes activities relating to restricted units for the three months ended December 31, 2020: Number of Shares Underlying Restricted Units — Performance-Based Awards Number of Shares Underlying Restricted Units — Time-Based Awards Outstanding at September 30, 2020 2,620,120 7,157,649 Granted 665,977 1,905,186 Earned/released (301,870) (2,814,891) Forfeited (97,668) (175,998) Outstanding at December 31, 2020 2,886,559 6,071,946 Weighted average remaining recognition period of outstanding Restricted Units 1.5 years 1.8 years Unrecognized stock-based compensation expense of outstanding Restricted Units $30.3 million $81.9 million Aggregate intrinsic value of outstanding Restricted Units (a) $127.3 million $267.7 million (a) The aggregate intrinsic value in this table represents any excess of the closing market price of our common stock as of December 31, 2020 ($44.09) over the purchase price of the underlying restricted units. |
Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units and Restricted Stock Awards Vested | A summary of the weighted-average grant-date fair value of restricted units granted, and the aggregate intrinsic value of restricted units vested during the periods noted is as follows: Three Months Ended December 31, 2020 2019 Weighted-average grant-date fair value per share $ 37.26 $ 17.08 Total intrinsic value of shares vested (in millions) $ 119.4 $ 95.4 Performance-based restricted units outstanding as of December 31, 2020 include performance goals based on total shareholder return relative to our peers during the performance period. The awards actually earned will be up to two hundred percent of the target number of the performance-based restricted units. Compensation expense is recorded ratably over the performance period of the award based on the grant date fair value as determined using a Monte Carlo simulation model. Below is a summary of key assumptions of the valuation: |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Benefit from Income Taxes | The components of income from continuing operations before income taxes are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Domestic $ (4,995) $ (3,422) Foreign 14,252 5,749 Income before income taxes $ 9,257 $ 2,327 The components of provision (benefit) for income taxes from continuing operations are as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 Domestic $ (2,892) $ (43,145) Foreign 5,195 1,848 Provision (benefit) for income taxes $ 2,303 $ (41,297) Effective tax rate 24.9 % (1,774.7) % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | Future lease payments under operating leases as of December 31, 2020 were as follows (dollars in thousands): Fiscal Year Operating Leases Operating leases under restructuring Total 2021 $ 18,945 $ 3,171 $ 22,116 2022 21,671 3,828 25,499 2023 16,494 3,440 19,934 2024 14,110 1,996 16,106 2025 12,360 1,346 13,706 Thereafter 41,524 1,843 43,367 Total $ 125,104 $ 15,624 $ 140,728 |
Segment and Geographic Inform_2
Segment and Geographic Information and Significant Customers (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Results Along with Reconciliation of Segment Profit to Income Before Income Taxes | The following table presents segment results along with a reconciliation of segment profit to Income before income taxes (dollars in thousands): Three Months Ended December 31, 2020 2019 Segment revenues : Healthcare $ 199,332 $ 213,810 Enterprise 139,152 138,473 Other 7,269 9,315 Total segment revenues $ 345,753 $ 361,598 Less: acquisition-related revenues adjustments — (89) Total revenues $ 345,753 $ 361,509 Segment profit: Healthcare $ 74,812 $ 73,714 Enterprise 41,468 41,767 Other 4,971 5,115 Total segment profit $ 121,251 $ 120,596 Corporate expenses and other, net (31,115) (30,448) Acquisition-related revenues — (89) Stock-based compensation (34,906) (30,402) Amortization of intangible assets (14,793) (15,758) Acquisition-related costs, net (325) (1,220) Restructuring and other charges, net (8,566) (6,683) Other expenses, net (22,289) (33,669) Income before income taxes $ 9,257 $ 2,327 |
Classification of Revenue By Major Geographic Areas | Revenues, classified by the major geographic areas in which our customers are located, were as follows (dollars in thousands): Three Months Ended December 31, 2020 2019 United States $ 272,598 $ 297,375 International 73,155 64,134 Total revenues $ 345,753 $ 361,509 |
Supplemental Cash Flow (Tables)
Supplemental Cash Flow (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Supplemental Cash Flow [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | Cash paid for Interest and Income Taxes: Three Months Ended December 31, 2020 2019 (Dollars in thousands) Interest paid $ 21,087 $ 26,692 Income taxes paid $ 2,738 $ 1,615 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Hardware revenue | $ 6,600 | $ 6,400 |
Document Period End Date | Dec. 31, 2020 | |
Hosting Revenue | $ 195,832 | 173,921 |
Product and licensing | 86,037 | 125,015 |
Revenue, Maintenance and Support | 63,884 | 62,573 |
Revenues | 345,753 | 361,509 |
Health Care Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Hosting Revenue | 110,803 | 88,427 |
Product and licensing | 54,783 | 91,792 |
Revenue, Maintenance and Support | 33,746 | 33,591 |
Revenues | 199,332 | 213,810 |
Enterprise Segment [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Hosting Revenue | 78,741 | 77,637 |
Product and licensing | 30,286 | 31,736 |
Revenue, Maintenance and Support | 30,125 | 29,011 |
Revenues | 139,152 | 138,384 |
Other Segments [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Hosting Revenue | 6,288 | 7,857 |
Product and licensing | 968 | 1,487 |
Revenue, Maintenance and Support | 13 | (29) |
Revenues | $ 7,269 | $ 9,315 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Balance as of September 30, 2020 | $ 156,142 |
Revenues recognized but not billed | 99,618 |
Amounts reclassified to accounts receivable | (101,358) |
Balance at December 31, 2020 | $ 154,402 |
Revenue Recognition Contract Li
Revenue Recognition Contract Liability (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Amounts bill but not recognized | $ 213,232 |
Revenue recognized | (186,635) |
Balance at December 31, 2020 | $ 374,777 |
Revenue Recognition Remaining P
Revenue Recognition Remaining Performance Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred Revenue | $ 374,800 | |
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent | 106,100 | $ 107,400 |
Revenue, Remaining Performance Obligation, Amount | 1,705,129 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 714,055 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 9 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 952,108 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Amount | $ 38,966 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue Recognition Revenue R_3
Revenue Recognition Revenue Recognition (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Oct. 01, 2019 | |
Revenue from Contract with Customer [Abstract] | ||||
Contract with Customer, Asset, after Allowance for Credit Loss, Current | $ 48,300 | $ 48,700 | ||
Deferred Costs, Current | 19,000 | 18,000 | ||
Contract with Customer, Liability | 374,777 | $ 348,180 | ||
Capitalized Contract Cost, Net | 27,100 | 20,900 | ||
Hardware revenue | 6,600 | $ 6,400 | ||
Capitalized Contract Cost, Net, Noncurrent | 63,000 | 51,600 | ||
Capitalized Contract Cost, Amortization | 4,700 | $ 3,600 | ||
Deferred Costs, Noncurrent | 31,900 | 30,700 | ||
Contract with Customer, Asset, after Allowance for Credit Loss, Noncurrent | $ 106,100 | $ 107,400 |
Disposition of Business (Detail
Disposition of Business (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Sep. 30, 2020 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Discontinued Operation, Equity Method Investment Retained after Disposal, Ownership Interest Prior to Disposal | 1.80% | |||
Disposal Group, Deferred Gain on Disposal | $ 9,800 | |||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $ 6,570 | $ 8,875 | ||
Document Fiscal Year Focus | 2021 | |||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | $ 25,328 | 24,993 | ||
Provision for Income Taxes, Discontinued Operations | 3,663 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 7,941 | 5,061 | ||
Depreciation, Discontinued Operations | 1,601 | |||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 3,418 | |||
Stock Compensation Expense, Discontinued Operations | 831 | |||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 10,637 | 10,499 | ||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 6,295 | 6,129 | ||
Disposal Group, Including Discontinued Operation, Goodwill | 13,722 | 13,217 | ||
Disposal Group, Including Discontinued Operation, Intangible Assets | 43,770 | 46,214 | ||
Disposal Group, Including Discontinued Operation, Other Assets | 7,713 | 8,033 | ||
Disposal Group, Including Discontinued Operation, Assets | 112,654 | 114,522 | ||
Disposal Group, Including Discontinued Operation, Accounts Payable | 3,247 | 3,289 | ||
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 12,286 | 14,010 | ||
Disposal Group, Including Discontinued Operation, Deferred Revenue | 14,433 | 17,452 | ||
Disposal Group, Including Discontinued Operation, Revenue | 56,724 | |||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 34,683 | |||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 8,724 | |||
Disposal Group, Including Discontinued Operation, Other Liabilities | 11,062 | 12,150 | ||
Disposal Group, Including Discontinued Operation, Liabilities | 44,259 | $ 50,526 | ||
Disposal Group, Capital Expenditures | 21 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,954 | 43,624 | ||
Restructuring Charges [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 7,386 | |||
Acquisition-related Costs [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | (53) | |||
Other Expense [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 3,360 | |||
General and Administrative Expense | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | (20) | |||
Sales and marketing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 696 | |||
Research and Development | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 1,948 | |||
Imaging [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Provision for Income Taxes, Discontinued Operations | 4,857 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 11,253 | |||
Depreciation, Discontinued Operations | 1,601 | |||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 3,418 | |||
Stock Compensation Expense, Discontinued Operations | 831 | |||
Disposal Group, Including Discontinued Operation, Revenue | 56,724 | |||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 34,683 | |||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 16,110 | |||
Disposal Group, Capital Expenditures | (21) | |||
Imaging [Member] | Restructuring Charges [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | |||
Imaging [Member] | Acquisition-related Costs [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | (53) | |||
Imaging [Member] | Other Expense [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 3,360 | |||
Imaging [Member] | General and Administrative Expense | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | (20) | |||
Imaging [Member] | Sales and marketing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 696 | |||
Imaging [Member] | Research and Development | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 1,948 | |||
Automotive Segment [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Provision for Income Taxes, Discontinued Operations | 1,457 | (1,194) | ||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 7,941 | (6,192) | ||
Depreciation, Discontinued Operations | 1,063 | 0 | ||
Disposal Group, Including Discontinued Operation, Depreciation and Amortization | 2,444 | 0 | ||
Stock Compensation Expense, Discontinued Operations | 287 | 0 | ||
Disposal Group, Including Discontinued Operation, Revenue | 47,650 | 0 | ||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 29,152 | 0 | ||
Disposal Group, Including Discontinued Operation, Operating Income (Loss) | 9,398 | (7,386) | ||
Disposal Group, Capital Expenditures | (57) | 0 | ||
Automotive Segment [Member] | Restructuring Charges [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 4,438 | 7,386 | ||
Automotive Segment [Member] | Acquisition-related Costs [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 0 | 0 | ||
Automotive Segment [Member] | Other Expense [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 2,444 | 0 | ||
Automotive Segment [Member] | General and Administrative Expense | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 12 | 0 | ||
Automotive Segment [Member] | Sales and marketing | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | 908 | 0 | ||
Automotive Segment [Member] | Research and Development | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposal Group, Including Discontinued Operation, Operating Expense | $ 1,298 | $ 0 |
Business Acquisitions (Componen
Business Acquisitions (Components of Acquisition-Related Costs, Net) (Detail) | 3 Months Ended |
Dec. 31, 2020 | |
Business Acquisition [Line Items] | |
Document Period End Date | Dec. 31, 2020 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets Goodwill, Changes in Carrying values (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Goodwill [Line Items] | |
Balance as of September 30, 2020 | $ 2,120,495 |
Purchase accounting adjustments | 0 |
Effect of foreign currency translation | 10,600 |
Balance at December 31, 2020 | 2,131,095 |
Healthcare | |
Goodwill [Line Items] | |
Balance as of September 30, 2020 | 1,424,959 |
Purchase accounting adjustments | 0 |
Effect of foreign currency translation | 3,902 |
Balance at December 31, 2020 | 1,428,861 |
Enterprise | |
Goodwill [Line Items] | |
Balance as of September 30, 2020 | 682,600 |
Purchase accounting adjustments | 0 |
Effect of foreign currency translation | 6,369 |
Balance at December 31, 2020 | 688,969 |
Other | |
Goodwill [Line Items] | |
Balance as of September 30, 2020 | 12,936 |
Purchase accounting adjustments | 0 |
Effect of foreign currency translation | 329 |
Balance at December 31, 2020 | $ 13,265 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Balance at September 30, 2020 | $ 167,270 | |
Amortization | (14,793) | $ (15,758) |
Effect of foreign currency translation | 947 | |
Balance at December 31, 2020 | $ 153,424 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets Goodwill Impairment Assessment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Goodwill | $ 2,131,095 | $ 2,120,495 |
Financial Instruments and Hed_3
Financial Instruments and Hedging Activities (Additional Information) (Detail) - Derivatives Not Designated as Hedges - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Derivative, Notional Amount | $ 24,300 | $ 40,700 | |
Maximum | |||
Derivative Instruments and Hedging Activities Disclosure [Line Items] | |||
Term of foreign currency forward contracts | 90 days | ||
Foreign currency forward contracts | Other Income And Expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in Income | $ (548) | $ 585 |
Financial Instruments and Hed_4
Financial Instruments and Hedging Activities (Quantitative Summary of Fair Value of Derivative Instruments) (Detail) - Foreign currency forward contracts - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Asset, at Fair Value | $ 139 | $ 109 |
Accrued Expenses And Other Current Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Instruments Not Designated as Hedging Instruments, Liability, at Fair Value | $ 124 | $ 92 |
Financial Instruments and Hed_5
Financial Instruments and Hedging Activities (Summarized Activity of Derivative Instruments) (Detail) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Sep. 30, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Document Period End Date | Dec. 31, 2020 | |
Derivatives Not Designated as Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative, Notional Amount | $ 24.3 | $ 40.7 |
Fair Value Measures (Assets and
Fair Value Measures (Assets and Liabilities Measured at Fair Value on Recurring Basis) (Detail) - USD ($) | 3 Months Ended | ||
Dec. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available for sale Securities, Weighted Average Maturity | 4 months 28 days | 3 months 21 days | |
Document Period End Date | Dec. 31, 2020 | ||
Fair Value, Measurements, Recurring | |||
Assets: | |||
Money market funds | $ 161,056,000 | $ 182,645,000 | |
Bank Time Deposits, Fair Value Disclosure | 57,425,000 | 95,180,000 | |
Commercial Paper, Fair value | 54,545,000 | 33,290,000 | |
Corporate notes and bonds, Fair Value | 10,743,000 | 15,480,000 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 139,000 | 109,000 | |
Total assets at fair value | 283,908,000 | 326,704,000 | |
Liabilities: | |||
Contingent earn-out | (1,847,000) | (1,796,000) | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | (124,000) | (92,000) | |
Total liabilities at fair value | (1,971,000) | (1,888,000) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 1 | |||
Assets: | |||
Money market funds | 161,056,000 | 182,645,000 | |
Bank Time Deposits, Fair Value Disclosure | 0 | 0 | |
Commercial Paper, Fair value | 0 | 0 | |
Corporate notes and bonds, Fair Value | 0 | 0 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Total assets at fair value | 161,056,000 | 182,645,000 | |
Liabilities: | |||
Contingent earn-out | 0 | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 2 | |||
Assets: | |||
Money market funds | 0 | 0 | |
Bank Time Deposits, Fair Value Disclosure | 57,425,000 | 95,180,000 | |
Commercial Paper, Fair value | 54,545,000 | 33,290,000 | |
Corporate notes and bonds, Fair Value | 10,743,000 | 15,480,000 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 139,000 | 109,000 | |
Total assets at fair value | 122,852,000 | 144,059,000 | |
Liabilities: | |||
Contingent earn-out | 0 | 0 | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | (124,000) | (92,000) | |
Total liabilities at fair value | (124,000) | (92,000) | |
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3 | |||
Assets: | |||
Money market funds | 0 | 0 | |
Bank Time Deposits, Fair Value Disclosure | 0 | 0 | |
Commercial Paper, Fair value | 0 | 0 | |
Corporate notes and bonds, Fair Value | 0 | 0 | |
Foreign Currency Contract, Asset, Fair Value Disclosure | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities: | |||
Contingent earn-out | (1,847,000) | (1,796,000) | |
Foreign Currency Contracts, Liability, Fair Value Disclosure | 0 | 0 | |
Total liabilities at fair value | (1,847,000) | (1,796,000) | |
Corporate Debt Securities [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | 10,742,000 | 15,460,000 | |
Commercial Paper [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale Securities, Amortized Cost Basis | $ 54,502,000 | $ 33,265,000 |
Fair Value Measures (Changes in
Fair Value Measures (Changes in Fair Value of Contingent Earn-Out Liabilities) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Document Period End Date | Dec. 31, 2020 | |
Balance at beginning of period | $ 1,796 | $ 2,550 |
Payments and foreign currency translation | 51 | 57 |
Balance at end of period | 1,847 | $ 2,493 |
Contingent Consideration Payment, Higher End | $ 3,000 |
Fair Value Measures Fair Value
Fair Value Measures Fair Value Measures - Additional Debt Details (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Long-term Debt, Fair Value | $ 2,875.4 | $ 2,355.5 |
Debt Instrument, Face Amount | $ 1,666.5 | $ 1,666.5 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Payables and Accruals [Abstract] | ||
Compensation | $ 74,403 | $ 110,827 |
Cost of revenue related liabilities | 22,145 | 25,434 |
Sales and marketing incentives | 11,305 | 10,589 |
Consulting and professional fees | 3,087 | 13,484 |
Operating Lease, Liability, Current | 26,108 | 26,284 |
Operating lease obligations | 1,537 | 2,021 |
Sales and marketing incentives | 6,685 | 6,339 |
Other | 12,509 | 4,276 |
Total | $ 157,779 | $ 199,254 |
Restructuring and Other Charg_3
Restructuring and Other Charges, net (Accrual Activity Relating to Restructuring and Other Charges) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring [Roll Forward] | ||
Balance at September 30, 2020 | $ 16,857 | |
Restructuring charges | 7,860 | $ 4,048 |
Restructuring Reserve, Accrual Adjustment | (2,213) | |
Cash payments | (4,368) | |
Balance at June 30, 2020 | 18,136 | |
Restructuring and Other Charges | 8,566 | 6,683 |
Personnel | ||
Restructuring [Roll Forward] | ||
Balance at September 30, 2020 | 1,243 | |
Restructuring charges | 4,789 | 2,913 |
Restructuring Reserve, Accrual Adjustment | (839) | |
Cash payments | (3,126) | |
Balance at June 30, 2020 | 2,067 | |
Facilities | ||
Restructuring [Roll Forward] | ||
Balance at September 30, 2020 | 15,614 | |
Restructuring charges | 3,071 | $ 1,135 |
Restructuring Reserve, Accrual Adjustment | (1,374) | |
Cash payments | (1,242) | |
Balance at June 30, 2020 | $ 16,069 |
Restructuring and Other Charg_4
Restructuring and Other Charges, net (By Segment) (Detail) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ (7,860) | $ (4,048) |
Restructuring Charges and Other Expenses | $ (8,566) | $ (6,683) |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 57 | 37 |
Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | $ (3,199) | $ (2,803) |
Restructuring Charges and Other Expenses | (3,199) | (2,803) |
Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 3,654 | 1,809 |
Restructuring Charges and Other Expenses | 3,654 | 1,809 |
Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (29) | 365 |
Restructuring Charges and Other Expenses | (29) | 365 |
Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (978) | 199 |
Restructuring Charges and Other Expenses | (1,684) | (2,436) |
Personnel | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (4,789) | (2,913) |
Personnel | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (2,632) | (1,276) |
Personnel | Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 1,182 | 1,304 |
Personnel | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | 0 | 0 |
Personnel | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (975) | (333) |
Facilities | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (3,071) | (1,135) |
Facilities | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (567) | (1,527) |
Facilities | Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (2,472) | (505) |
Facilities | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (29) | 365 |
Facilities | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring charges | (3) | 532 |
Other Restructuring [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Charges | 706 | 2,635 |
Other Restructuring [Member] | Healthcare | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Charges | 0 | 0 |
Other Restructuring [Member] | Enterprise | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Charges | 0 | 0 |
Other Restructuring [Member] | Other | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Charges | 0 | 0 |
Other Restructuring [Member] | Corporate | ||
Restructuring Cost and Reserve [Line Items] | ||
Other Charges | $ 706 | $ 2,635 |
Restructuring and Other Charg_5
Restructuring and Other Charges, net (Additional Information) (Detail) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Other Restructuring [Member] | Corporate | Stand-up and separation [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 700 | ||
Restructuring Charges and Other Expenses | 8,566 | $ 6,683 | |
Restructuring Reserve | $ 18,136 | $ 16,857 | |
Document Fiscal Year Focus | 2021 | ||
Restructuring charges | $ 7,860 | $ 4,048 | |
Restructuring and Related Cost, Expected Number of Positions Eliminated | 57 | 37 | |
Personnel | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 2,067 | 1,243 | |
Restructuring charges | 4,789 | $ 2,913 | |
Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 16,069 | $ 15,614 | |
Restructuring charges | 3,071 | 1,135 | |
Other Expense [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 2,800 | ||
Corporate | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charges and Other Expenses | 1,684 | 2,436 | |
Restructuring charges | 978 | (199) | |
Corporate | Personnel | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | 975 | 333 | |
Corporate | Facilities | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring charges | $ 3 | $ (532) |
Debt and Credit Facilities (Bor
Debt and Credit Facilities (Borrowing Obligations) (Detail) - USD ($) $ in Thousands | Mar. 01, 2017 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 22, 2016 |
Debt Instrument [Line Items] | ||||
Long-Term Debt, Maturity, Year One | $ 1,166,539 | |||
Long-Term Debt, Maturity, Year Two | 0 | |||
Long-Term Debt, Maturity, Year Three | 0 | |||
Long-Term Debt, Maturity, Year Four | 0 | |||
Long-Term Debt, Maturity, Year Five | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 500,000 | |||
Total debt | 1,548,988 | $ 1,536,673 | ||
Less: current portion (a) | (1,053,011) | (432,209) | ||
Total long-term debt | 495,977 | 1,104,464 | ||
Debt Issuance Costs, Noncurrent, Net | (325) | (451) | ||
Long-term Debt, Gross | 1,666,539 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (117,551) | |||
5.625% Senior Notes due 2026 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, net of unamortized premium | 496,302 | 496,148 | $ 500,000 | |
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, net of unamortized premium | 616,037 | 608,767 | ||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||
Debt Instrument [Line Items] | ||||
Repayments of Debt | $ 17,800 | |||
1.25% Convertible Debentures due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Debentures, net of unamortized discount | 217,910 | 215,582 | ||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Convertible Debentures, net of unamortized discount | 219,064 | $ 216,627 | ||
Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Maturity, Year One | 0 | |||
Long-Term Debt, Maturity, Year Two | 0 | |||
Long-Term Debt, Maturity, Year Three | 0 | |||
Long-Term Debt, Maturity, Year Four | 0 | |||
Long-Term Debt, Maturity, Year Five | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 500,000 | |||
Total debt | 495,977 | |||
Long-term Debt, Gross | 500,000 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | (4,023) | |||
Convertible Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Long-Term Debt, Maturity, Year One | 1,166,539 | |||
Long-Term Debt, Maturity, Year Two | 0 | |||
Long-Term Debt, Maturity, Year Three | 0 | |||
Long-Term Debt, Maturity, Year Four | 0 | |||
Long-Term Debt, Maturity, Year Five | 0 | |||
Long-term Debt, Maturities, Repayments of Principal in Rolling after Year Five | 0 | |||
Total debt | 1,053,011 | |||
Long-term Debt, Gross | 1,166,539 | |||
Debt Instrument, Unamortized Discount (Premium) and Debt Issuance Costs, Net | $ (113,528) |
Debt and Credit Facilities Borr
Debt and Credit Facilities Borrowing Obligations Detail (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Sep. 30, 2020 |
Borrowing Obligations Detail [Abstract] | ||
Long-term Debt, Fair Value | $ 2,875.4 | $ 2,355.5 |
Debt Instrument, Face Amount | $ 1,666.5 | $ 1,666.5 |
Debt and Credit Facilities 5.37
Debt and Credit Facilities 5.375% Senior Notes due 2020 (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Dec. 22, 2016 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,666,500 | $ 1,666,500 | ||
Repayment of Long-term Debt, Long-term Lease Obligation, and Capital Security | 0 | $ 313,500 | ||
Loss on extinguishment of debt | $ 0 | $ 15,000 | ||
5.375% Senior Notes due August 15, 2020 | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% |
Debt and Credit Facilities 6.0%
Debt and Credit Facilities 6.0% Senior Notes due 2024 (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 22, 2016 |
Debt Instrument [Line Items] | |||
Debt Instrument, Face Amount | $ 1,666,500 | $ 1,666,500 | |
5.625% Senior Notes due 2026 [Member] | |||
Debt Instrument [Line Items] | |||
Senior Notes, Noncurrent | $ 496,302 | $ 496,148 | $ 500,000 |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% |
Debt Instrument, Unamortized Premium | $ 0 | $ 0 | |
Unamortized Debt Issuance Expense | $ 3,698 | $ 3,852 |
Debt and Credit Facilities 1.0%
Debt and Credit Facilities 1.0% Convertible Debentures due 2035 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Dec. 07, 2015 | Jun. 01, 2015 | Oct. 24, 2011 |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,666,500 | $ 1,666,500 | ||||||
Debt Issuance Costs, Noncurrent, Net | 325 | $ 451 | ||||||
Loss on extinguishment of debt | $ 0 | $ 15,000 | ||||||
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 676,500 | |||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 181,100 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | |||||
Debt Instrument, Repurchased Face Amount | $ 472,500 | |||||||
debt instrument net proceeds | 663,800 | |||||||
Convertible Debt, Noncurrent | $ 495,400 | |||||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||
Debt Instrument, Repurchased Face Amount | $ 38,300 | |||||||
Repayments of Debt | $ 17,800 | |||||||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 263,900 | |||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 55,300 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | 1.50% | |||||
Debt Instrument, Repurchased Face Amount | $ 36,500 | |||||||
debt instrument net proceeds | $ 253,200 | |||||||
Convertible Debt, Noncurrent | $ 208,600 |
Debt and Credit Facilities 2.75
Debt and Credit Facilities 2.75% Convertible Debentures due 2031 (Details) - USD ($) $ in Thousands | Mar. 01, 2017 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Oct. 24, 2011 |
Debt Instrument [Line Items] | |||||
Loss on extinguishment of debt | $ 0 | $ 15,000 | |||
Debt Instrument, Face Amount | 1,666,500 | $ 1,666,500 | |||
Debt Issuance Costs, Noncurrent, Net | $ 325 | $ 451 | |||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | |||||
Debt Instrument [Line Items] | |||||
Debt Instrument, Repurchased Face Amount | $ 38,300 | ||||
Repayments of Debt | $ 17,800 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% |
Debt and Credit Facilities 1.5%
Debt and Credit Facilities 1.5% Convertible Debentures due 2035 (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Jun. 01, 2015 | |
Debt Instrument [Line Items] | ||||
Debt Instrument, Face Amount | $ 1,666,500 | $ 1,666,500 | ||
Debt Issuance Costs, Noncurrent, Net | $ 325 | $ 451 | ||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
debt instrument net proceeds | $ 253,200 | |||
Debt Instrument, Face Amount | $ 263,900 | |||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | 1.50% | |
Debt issuance Percentage of Principal Amount | 97.09% | |||
Debt Instrument, Unamortized Discount (Premium), Net | $ 7,700 | |||
Debt Instrument, Unamortized Discount | $ 8,065 | $ 10,422 | ||
Convertible Debt, Noncurrent | 208,600 | |||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 55,300 | |||
Debt Instrument, Repurchased Face Amount | $ 36,500 | |||
Debt Instrument, Repurchase Amount | 41,300 | |||
debt repurchase allocation - Debt portion | 34,700 | |||
Debt repurchase allocation - Equity portion | 6,600 | |||
Unamortized Loss Reacquired Debt, Noncurrent | 2,500 | |||
debt issuance cost write off | 100 | |||
loss on extinguishment of debt | $ 800 | |||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 227,400 | |||
Change of Control [Member] | Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 100.00% |
Debt and Credit Facilities Cred
Debt and Credit Facilities Credit Facility (Details) | 3 Months Ended | |||
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Apr. 15, 2016USD ($) | |
Line of Credit Facility [Line Items] | ||||
Debt Issuance Costs, Noncurrent, Net | $ 325,000 | $ 451,000 | ||
Loss on extinguishment of debt | 0 | $ (15,000,000) | ||
Pledged Financial Instruments, Not Separately Reported, Securities for Letter of Credit Facilities | 25,000,000 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 240,300,000 | $ 242,500,000 | ||
Letters of Credit Outstanding, Amount | $ 2,200,000 | |||
Banking Regulation, Supplementary Leverage Ratio, Undercapitalized, Minimum | 4 | |||
Minimum | London Interbank Offered Rate [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||
Minimum | Base Rate [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||
Maximum | London Interbank Offered Rate [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% | |||
Maximum | Base Rate [Member] | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% |
Debt and Credit Facilities Appl
Debt and Credit Facilities Applicable Borrowing Rates and Additional Detail (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Mar. 13, 2017 | Dec. 22, 2016 | Dec. 07, 2015 | Jun. 01, 2015 | Oct. 24, 2011 | |
5.625% Senior Notes due 2026 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.63% | 5.63% | ||||||
nuan_DebtInstrumentMaturityYear | 2026 | 2026 | ||||||
Unamortized Debt Issuance Expense | $ 3,698 | $ 3,852 | ||||||
Debt Instrument, Unamortized Premium | $ 0 | $ 0 | ||||||
5.375% Senior Notes due August 15, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 5.375% | |||||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||
Convertible Debentures One Point Five Percent Due November One Twenty Thirty Five [Member] [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.50% | 1.50% | 1.50% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.394% | 5.39% | ||||||
nuan_DebtInstrumentMaturityYear | 2035 | 2035 | ||||||
Unamortized Debt Issuance Expense | $ 266 | $ 346 | ||||||
Debt Instrument, Unamortized Discount | $ 8,065 | $ 10,422 | ||||||
Convertible Debentures One Percent Due Twenty Thirty Five [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.00% | 1.00% | 1.00% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.622% | 5.62% | ||||||
nuan_DebtInstrumentMaturityYear | 2035 | 2035 | ||||||
Unamortized Debt Issuance Expense | $ 2,600 | $ 2,932 | ||||||
Debt Instrument, Unamortized Discount | $ 57,851 | $ 64,789 | ||||||
Convertible Debentures 1.25% Due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | 1.25% | |||||
Debt Instrument, Interest Rate, Effective Percentage | 5.578% | 5.578% | ||||||
nuan_DebtInstrumentMaturityYear | 2025 | 2025 | ||||||
Unamortized Debt Issuance Expense | $ 1,818 | $ 1,924 | ||||||
Debt Instrument, Unamortized Discount | $ 42,928 | $ 45,150 | ||||||
Minimum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | |||||||
Minimum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | London Interbank Offered Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||||
Maximum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | Base Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 0.75% | |||||||
Maximum | Revolving Credit Facility Due April Fifteenth Twenty Twenty One [Member] | London Interbank Offered Rate [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Basis Spread on Variable Rate | 1.75% |
Debt and Credit Facilities 5.62
Debt and Credit Facilities 5.625% Senior Notes due December 2026 (Details) - 5.625% Senior Notes due 2026 [Member] - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 22, 2016 | |
Debt Instrument [Line Items] | ||||
Senior Notes, Noncurrent | $ 496,302 | $ 496,148 | $ 500,000 | |
Debt Instrument, Interest Rate, Stated Percentage | 5.625% | 5.625% | 5.625% | |
Proceeds from Issuance of Senior Long-term Debt | $ 495,000 | |||
Before December 15, 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 100.00% | |||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 35.00% | |||
From Equity Offering [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 105.625% | |||
after December 15, 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 50.00% | |||
Change of control before December 15, 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Aggregate Principal Amount of Senior Notes, Redemption Price, Percentage | 101.00% |
Debt and Credit Facilities 1.25
Debt and Credit Facilities 1.25% Convertible Debentures due 2025 (Details) - USD ($) shares in Millions, $ in Millions | Mar. 01, 2017 | Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2020 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 13, 2017 | Oct. 24, 2011 |
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Face Amount | $ 1,666.5 | $ 1,666.5 | ||||||
Stock Repurchased and Retired During Period, Shares | 5.7 | 73.8 | ||||||
Stock Repurchased During Period, Value | $ 92.4 | $ 1,238.8 | ||||||
Convertible Debentures 1.25% Due 2025 [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Convertible Debt, Noncurrent | $ 252.1 | |||||||
Debt Instrument, Face Amount | $ 350 | |||||||
Debt Instrument, Interest Rate, Stated Percentage | 1.25% | 1.25% | 1.25% | |||||
debt instrument net proceeds | $ 343.6 | |||||||
Stock Repurchased and Retired During Period, Shares | 5.8 | |||||||
Stock Repurchased During Period, Value | $ 99.1 | |||||||
Debt Instrument, Convertible, Carrying Amount of Equity Component | $ 97.9 | |||||||
Debt Instrument, Repurchased Face Amount | $ 87.3 | |||||||
Debt Instrument, Repurchase Amount | 112.3 | |||||||
debt repurchase allocation - Debt portion | 72.8 | |||||||
Debt repurchase allocation - Equity portion | 39.5 | |||||||
Unamortized Loss Reacquired Debt, Noncurrent | 16.7 | |||||||
debt issuance cost write off | 0.7 | |||||||
loss on extinguishment of debt | $ 2.8 | |||||||
Debtor-in-Possession Financing, Borrowings Outstanding | $ 262.7 | |||||||
Convertible Debentures Two Point Seven Five Percent Due November One Twenty Thirty One [Member] | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.75% | |||||||
Repayments of Debt | $ 17.8 | |||||||
Debt Instrument, Repurchased Face Amount | $ 38.3 |
Stockholders' Equity Stockhol_2
Stockholders' Equity Stockholders' Equity (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | 86 Months Ended | ||||
Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2020 | Aug. 01, 2018 | Apr. 29, 2015 | Apr. 29, 2013 | |
Stockholders Equity Note [Line Items] | ||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased, Value | $ 500 | $ 500 | $ 500 | |||
Stock Repurchased and Retired During Period, Shares | 5.7 | 73.8 | ||||
Stock Repurchased During Period, Value | $ 92.4 | $ 1,238.8 | ||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 261.2 |
Net Income (Loss) Per Share (Ad
Net Income (Loss) Per Share (Additional Information) (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Net income | $ 14,895 | $ 48,685 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,954 | 43,624 |
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | $ 7,941 | $ 5,061 |
Weighted Average Number of Shares Outstanding, Basic | 283,818 | 284,130 |
Dilutive Securities, Effect on Basic Earnings Per Share | 8,756 | 5,323 |
Weighted Average Number of Shares Outstanding, Diluted | 314,210 | 289,453 |
Earnings Per Share, Basic | $ 0.05 | $ 0.17 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Basic Share | 0.03 | 0.02 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.02 | $ 0.15 |
Weighted Average Number of Shares, Contingently Issuable | 0 | 2,932 |
Income (Loss) from Continuing Operations, Per Diluted Share | $ 0.02 | $ 0.15 |
Discontinued Operation, Income (Loss) from Discontinued Operation, Net of Tax, Per Diluted Share | 0.03 | 0.02 |
Earnings Per Share, Diluted | $ 0.05 | $ 0.17 |
Anti-dilutive common equivalent shares excluded from computation of diluted net income (loss) per share | 580 | 1,336 |
Stock-Based Compensation (Inclu
Stock-Based Compensation (Included in Consolidated Statements of Operations) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Document Period End Date | Dec. 31, 2020 | |
Stock based compensation | $ 34,906 | $ 30,402 |
Cost of hosting and professional services | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 6,563 | 4,977 |
Cost of product and licensing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 75 | 129 |
Cost of maintenance and support | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 426 | 393 |
Research and development | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 8,440 | 8,440 |
Sales and marketing | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | 8,943 | 7,025 |
General and administrative | ||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||
Stock based compensation | $ 10,459 | $ 9,438 |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Activity Relating to Restricted Units) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Document Period End Date | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 9,355 | 9,355 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 3 months 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 17.18 | $ 17.18 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 0.3 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 9,355 | 9,978 | |
Restricted Units, Outstanding [Roll Forward] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 1 year 3 months 18 days | 2 years 3 months 18 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0.3 | $ 0 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 17.18 | $ 17.18 | |
Number of Shares Underlying Restricted Units — Performance-Based Awards | |||
Restricted Units, Outstanding [Roll Forward] | |||
Outstanding at September 30, 2019 | 2,620,120 | ||
Granted | 665,977 | ||
Earned/released | (301,870) | ||
Forfeited | (97,668) | ||
Outstanding at June 30, 2020 | 2,886,559 | ||
Weighted average remaining recognition period of outstanding Restricted Units | 1 year 6 months | ||
Unrecognized stock-based compensation expense of outstanding Restricted Units | $ 30.3 | ||
Aggregate intrinsic value of outstanding Restricted Units (a) | $ 127.3 | ||
Number of Shares Underlying Restricted Units — Time-Based Awards | |||
Restricted Units, Outstanding [Roll Forward] | |||
Outstanding at September 30, 2019 | 7,157,649 | ||
Granted | 1,905,186 | ||
Earned/released | (2,814,891) | ||
Forfeited | (175,998) | ||
Outstanding at June 30, 2020 | 6,071,946 | ||
Weighted average remaining recognition period of outstanding Restricted Units | 1 year 9 months 18 days | ||
Unrecognized stock-based compensation expense of outstanding Restricted Units | $ 81.9 | ||
Aggregate intrinsic value of outstanding Restricted Units (a) | $ 267.7 |
Stock-Based Compensation (Sum_2
Stock-Based Compensation (Summary of Weighted-Average Grant-Date Fair Value and Intrinsic Value of Restricted Units Vested) (Detail) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Document Period End Date | Dec. 31, 2020 | |
Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted-average grant-date fair value per share | $ 37.26 | $ 17.08 |
Total intrinsic value of shares vested (in millions) | $ 119.4 | $ 95.4 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Incentive Plan (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
dividend yield | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Intrinsic Value | $ 0.3 | $ 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 11.3 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.95% | 27.73% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 21.00% | 1.62% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 3 years |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 34.95% | 27.73% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 21.00% | 1.62% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 3 years | 3 years |
Income Taxes Components of Inco
Income Taxes Components of Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Components of Income (Loss) before Income Taxes [Abstract] | ||
Effective Income Tax Rate Reconciliation, Percent | (1774.70%) | |
Deferred tax benefit | $ (5,435) | $ (42,900) |
Document Period End Date | Dec. 31, 2020 | |
Domestic | $ (4,995) | (3,422) |
Foreign | 14,252 | 5,749 |
Income before income taxes | $ 9,257 | $ 2,327 |
Income Taxes (Components of Ben
Income Taxes (Components of Benefit from Income Taxes) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Domestic | $ (2,892) | $ (43,145) |
Foreign | 5,195 | 1,848 |
(Benefit) provision for income taxes | $ 2,303 | $ (41,297) |
Effective tax rate | (1774.70%) |
Income Taxes (Additional Inform
Income Taxes (Additional Information) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | ||
(Benefit) provision for income taxes | $ (2,303) | $ 41,297 |
Effective Income Tax Rate Reconciliation, Percent | (1774.70%) |
Income Taxes Income tax prior p
Income Taxes Income tax prior period adjustment (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||
(Benefit) provision for income taxes | $ 2,303 | $ (41,297) | |||
Deferred Tax Liabilities, Gross | 64,094 | $ 70,116 | |||
Income (Loss) from Discontinued Operations, Net of Tax, Attributable to Parent | 7,941 | 5,061 | |||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 6,954 | 43,624 | |||
Liabilities | 2,441,306 | 2,449,399 | |||
Accumulated deficit | (257,321) | (272,216) | |||
Members' Equity | $ 1,153,036 | $ 1,240,519 | $ 1,143,933 | $ 1,143,933 | $ 2,173,150 |
Income (Loss) from Continuing Operations, Per Basic Share | $ 0.02 | $ 0.15 | |||
Earnings Per Share, Basic | 0.05 | 0.17 | |||
Income (Loss) from Continuing Operations, Per Diluted Share | 0.02 | 0.15 | |||
Earnings Per Share, Diluted | $ 0.05 | $ 0.17 |
Commitments and Contingencies (
Commitments and Contingencies (Details) | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Indemnification term for former officers and directors | 6 years |
Leases (Details)
Leases (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Sublease Income | $ 11.1 |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 9 months 18 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.80% |
Operating Leases, Rent Expense | $ 7.2 |
Operating Lease, Payments | $ 7.7 |
Leases Operating Leases (Detail
Leases Operating Leases (Details) $ in Thousands | 3 Months Ended |
Dec. 31, 2020USD ($) | |
Future minimum rental payments [Line Items] | |
Sublease Income | $ 11,100 |
Future Minimum Sublease Rentals, Sale Leaseback Transactions | 1,800 |
Future Minimum Sublease Rentals, Sale Leaseback Transactions, Thereafter | 2,100 |
Operating Leases, Rent Expense | 7,200 |
Operating Lease, Payments | 7,700 |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | 22,116 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 25,499 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 19,934 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 16,106 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 13,706 |
Thereafter | 43,367 |
Lessee, Operating Lease, Liability, to be Paid | 140,728 |
Non-Restructuring Operating Leases [Member] | |
Future minimum rental payments [Line Items] | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | 18,945 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 21,671 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 16,494 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 14,110 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 12,360 |
Thereafter | 41,524 |
Lessee, Operating Lease, Liability, to be Paid | 125,104 |
Restructuring Operating Leases [Member] | |
Future minimum rental payments [Line Items] | |
Lessee, Operating Lease, Liability, to be Paid, Remainder of Fiscal Year | 3,171 |
Lessee, Operating Lease, Liability, to be Paid, Year One | 3,828 |
Lessee, Operating Lease, Liability, to be Paid, Year Two | 3,440 |
Lessee, Operating Lease, Liability, to be Paid, Year Three | 1,996 |
Lessee, Operating Lease, Liability, to be Paid, Year Four | 1,346 |
Thereafter | 1,843 |
Lessee, Operating Lease, Liability, to be Paid | $ 15,624 |
Segment and Geographic Inform_3
Segment and Geographic Information and Significant Customers (Segment Results Along with Reconciliation of Segment Profit to Income Before Income Taxes) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Segment Revenues | $ 345,753 | $ 361,509 |
Segment profit | 121,251 | 120,596 |
Corporate expenses and other, net | (31,115) | (30,448) |
Acquisition-related revenues | 0 | (89) |
Stock-based compensation | (34,906) | (30,402) |
Amortization of intangible assets | (14,793) | (15,758) |
Business Combination, Acquisition Related Costs | (325) | (1,220) |
Restructuring and other charges, net | (8,566) | (6,683) |
Income before income taxes | 9,257 | 2,327 |
Nonoperating Income (Expense) | (22,289) | (33,669) |
Operating Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
segment revenue | 345,753 | 361,598 |
Segment Reconciling Items [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 0 | (89) |
Health Care Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 199,332 | 213,810 |
segment revenue | 199,332 | 213,810 |
Segment profit | 74,812 | 73,714 |
Enterprise Segment [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 139,152 | 138,384 |
segment revenue | 139,152 | 138,473 |
Segment profit | 41,468 | 41,767 |
Other Segments [Member] | ||
Segment Reporting Information [Line Items] | ||
Segment Revenues | 7,269 | 9,315 |
segment revenue | 7,269 | 9,315 |
Segment profit | $ 4,971 | $ 5,115 |
Segment and Geographic Inform_4
Segment and Geographic Information and Significant Customers (Classification of Revenue by Major Geographic Areas) (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | $ 345,753 | $ 361,509 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | 272,598 | 297,375 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Segment Revenues | $ 73,155 | $ 64,134 |
Supplemental Cash Flow Suppleme
Supplemental Cash Flow Supplemental Cash Flow (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 21,087 | $ 26,692 |
Income Taxes Paid | $ 2,738 | $ 1,615 |
Uncategorized Items - nuan-2020
Label | Element | Value |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | $ 6,399,000 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | 56,000 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 66,182,000 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 33,129,000 |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | 92,444,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (132,773,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (114,043,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (117,918,000) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | 6,399,000 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 0 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 0 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 0 |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | 0 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (244,927,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (272,216,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (293,612,000) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 0 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 0 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 48,685,000 |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | 0 |
Common Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 287,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 290,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 288,000 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | 6,000 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 0 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 2,000 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ 0 |
Shares, Issued | us-gaap_SharesIssued | 287,626,000 |
Shares, Issued | us-gaap_SharesIssued | 286,703,000 |
Shares, Issued | us-gaap_SharesIssued | 289,680,000 |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | $ 6,000 |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | us-gaap_StockIssuedDuringPeriodSharesEmployeeStockPurchasePlans | 5,582,000 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Shares | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingShares | 1,942,000 |
Stock Repurchased and Retired During Period, Shares | us-gaap_StockRepurchasedAndRetiredDuringPeriodShares | 5,694,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | $ 2,597,889,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 1,615,989,000 |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | 1,550,568,000 |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | (50,000) |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 66,182,000 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 33,127,000 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | 0 |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | 92,438,000 |
Treasury Stock [Member] | ||
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (16,788,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (16,788,000) |
Stockholders' Equity Attributable to Parent | us-gaap_StockholdersEquity | (16,788,000) |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | us-gaap_OtherComprehensiveIncomeLossNetOfTaxPortionAttributableToParent | 0 |
Stock Issued During Period, Value, Employee Stock Purchase Plan | us-gaap_StockIssuedDuringPeriodValueEmployeeStockPurchasePlan | 0 |
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | 0 |
Cancellation of Restricted Stock and Repurchase of Common Stock at Cost for Employee Tax Withholding, Value | nuan_CancellationOfRestrictedStockAndRepurchaseOfCommonStockAtCostForEmployeeTaxWithholdingValue | 0 |
Net Income (Loss) Attributable to Parent | us-gaap_NetIncomeLoss | $ 0 |
Shares, Issued | us-gaap_SharesIssued | (3,751,000) |
Shares, Issued | us-gaap_SharesIssued | (3,751,000) |
Shares, Issued | us-gaap_SharesIssued | (3,751,000) |
Stock Repurchased and Retired During Period, Value | us-gaap_StockRepurchasedAndRetiredDuringPeriodValue | $ 0 |