Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 000-26041 | |
Entity Registrant Name | F5, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1714307 | |
Entity Address, Address Line One | 801 5th Avenue | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98104 | |
City Area Code | 206 | |
Local Phone Number | 272-5555 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | FFIV | |
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 Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 58,611,430 | |
Entity Central Index Key | 0001048695 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 902,680 | $ 797,163 |
Short-term investments | 802 | 6,160 |
Accounts receivable, net of allowances of $3,038 and $3,561 | 388,325 | 454,832 |
Inventories | 69,760 | 35,874 |
Other current assets | 589,954 | 554,744 |
Total current assets | 1,951,521 | 1,848,773 |
Property and equipment, net | 161,525 | 170,422 |
Operating lease right-of-use assets | 188,973 | 195,471 |
Long-term investments | 6,343 | 5,068 |
Deferred tax assets | 324,875 | 295,308 |
Goodwill | 2,312,362 | 2,288,678 |
Other assets, net | 439,071 | 444,613 |
Total assets | 5,384,670 | 5,248,333 |
Current liabilities | ||
Accounts payable | 57,702 | 63,315 |
Accrued liabilities | 266,563 | 282,890 |
Deferred revenue | 1,178,158 | 1,126,576 |
Total current liabilities | 1,502,423 | 1,472,781 |
Deferred tax liabilities | 5,689 | 4,637 |
Deferred revenue, long-term | 633,818 | 648,545 |
Operating lease liabilities, long-term | 228,368 | 239,565 |
Other long-term liabilities | 81,106 | 82,573 |
Total long-term liabilities | 948,981 | 975,320 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity | ||
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, no par value; 200,000 shares authorized, 58,609 and 59,207 shares issued and outstanding | 19,029 | 24,399 |
Accumulated other comprehensive loss | (21,034) | (23,221) |
Retained earnings | 2,935,271 | 2,799,054 |
Total shareholders' equity | 2,933,266 | 2,800,232 |
Total liabilities and shareholders' equity | $ 5,384,670 | $ 5,248,333 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 3,038 | $ 3,561 |
Preferred stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 58,609,000 | 59,207,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | $ 681,354 | $ 703,175 | $ 1,373,951 | $ 1,403,553 |
Cost of net revenues | ||||
Cost of net revenues | 141,113 | 155,654 | 277,502 | 310,661 |
Gross profit | 540,241 | 547,521 | 1,096,449 | 1,092,892 |
Operating expenses | ||||
Sales and marketing | 210,800 | 233,076 | 409,727 | 466,181 |
Research and development | 122,207 | 141,363 | 241,782 | 283,686 |
General and administrative | 67,184 | 67,036 | 131,902 | 137,027 |
Restructuring charges | 90 | 0 | 8,562 | 8,740 |
Total | 400,281 | 441,475 | 791,973 | 895,634 |
Income from operations | 139,960 | 106,046 | 304,476 | 197,258 |
Other income, net | 5,974 | 2,737 | 15,856 | 7,439 |
Income before income taxes | 145,934 | 108,783 | 320,332 | 204,697 |
Provision for income taxes | 26,913 | 27,347 | 62,929 | 50,859 |
Net income | $ 119,021 | $ 81,436 | $ 257,403 | $ 153,838 |
Net income per share — basic (dollars per share) | $ 2.02 | $ 1.35 | $ 4.37 | $ 2.55 |
Weighted average shares — basic (shares) | 58,788 | 60,330 | 58,956 | 60,211 |
Net income per share — diluted (dollars per share) | $ 2 | $ 1.34 | $ 4.32 | $ 2.54 |
Weighted average shares — diluted (shares) | 59,580 | 60,691 | 59,617 | 60,537 |
Product | ||||
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | $ 300,162 | $ 340,581 | $ 606,021 | $ 681,139 |
Cost of net revenues | ||||
Cost of net revenues | 85,313 | 99,795 | 168,021 | 198,650 |
Service | ||||
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | 381,192 | 362,594 | 767,930 | 722,414 |
Cost of net revenues | ||||
Cost of net revenues | $ 55,800 | $ 55,859 | $ 109,481 | $ 112,011 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 119,021 | $ 81,436 | $ 257,403 | $ 153,838 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (386) | (266) | 2,118 | 1,984 |
Available-for-sale securities: | ||||
Unrealized gains on securities, net of taxes of $4 and $118 for the three months ended March 31, 2024 and 2023, respectively, and $16 and $232 for the six months ended March 31, 2024 and 2023, respectively | 20 | 1,060 | 69 | 1,827 |
Reclassification adjustment for realized losses included in net income, net of taxes of $0 and $58 for the three months ended March 31, 2024 and 2023, respectively, and $0 and $78 for the six months ended March 31, 2024 and 2023, respectively | 0 | (552) | 0 | (612) |
Net change in unrealized gains and losses on available-for-sale securities, net of tax | 20 | 508 | 69 | 1,215 |
Total other comprehensive (loss) income | (366) | 242 | 2,187 | 3,199 |
Comprehensive income | $ 118,655 | $ 81,678 | $ 259,590 | $ 157,037 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of unrealized gain (loss) on securities | $ 4 | $ 118 | $ 16 | $ 232 |
Tax effect of reclassification adjustment for realized (gains) losses | $ 0 | $ 58 | $ 0 | $ 78 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | AOCI Attributable to Parent | Retained Earnings |
Beginning Balance (in shares) at Sep. 30, 2022 | 59,860 | |||
Beginning Balance at Sep. 30, 2022 | $ 2,468,978 | $ 91,048 | $ (26,176) | $ 2,404,106 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 26 | |||
Exercise of employee stock options | 716 | $ 716 | ||
Issuance of stock under employee stock purchase plan (in shares) | 179 | |||
Issuance of stock under employee stock purchase plan | 21,745 | $ 21,745 | ||
Issuance of restricted stock (in shares) | 731 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (263) | |||
Repurchase of common stock | (40,005) | $ (40,005) | ||
Taxes paid related to net share settlement of equity awards (in shares) | (68) | |||
Taxes paid related to net share settlement of equity awards | (9,825) | $ (9,825) | ||
Stock-based compensation | 126,913 | $ 126,913 | ||
Net income | 153,838 | 153,838 | ||
Other comprehensive income (loss) | 3,199 | 3,199 | ||
Ending Balance ( in shares) at Mar. 31, 2023 | 60,465 | |||
Ending Balance at Mar. 31, 2023 | 2,725,559 | $ 190,592 | (22,977) | 2,557,944 |
Beginning Balance (in shares) at Dec. 31, 2022 | 60,117 | |||
Beginning Balance at Dec. 31, 2022 | 2,582,349 | $ 129,060 | (23,219) | 2,476,508 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 12 | |||
Exercise of employee stock options | 281 | $ 281 | ||
Issuance of restricted stock (in shares) | 355 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock | 0 | |||
Taxes paid related to net share settlement of equity awards (in shares) | (19) | |||
Taxes paid related to net share settlement of equity awards | (2,788) | $ (2,788) | ||
Stock-based compensation | 64,039 | $ 64,039 | ||
Net income | 81,436 | 81,436 | ||
Other comprehensive income (loss) | 242 | 242 | ||
Ending Balance ( in shares) at Mar. 31, 2023 | 60,465 | |||
Ending Balance at Mar. 31, 2023 | $ 2,725,559 | $ 190,592 | (22,977) | 2,557,944 |
Beginning Balance (in shares) at Sep. 30, 2023 | 59,207 | 59,207 | ||
Beginning Balance at Sep. 30, 2023 | $ 2,800,232 | $ 24,399 | (23,221) | 2,799,054 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 33 | |||
Exercise of employee stock options | 1,088 | $ 1,088 | ||
Issuance of stock under employee stock purchase plan (in shares) | 188 | |||
Issuance of stock under employee stock purchase plan | 21,469 | $ 21,469 | ||
Issuance of restricted stock (in shares) | 701 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (1,465) | |||
Repurchase of common stock | (250,029) | |||
Repurchase of common stock, including excise taxes | (251,589) | $ (130,403) | (121,186) | |
Taxes paid related to net share settlement of equity awards (in shares) | (55) | |||
Taxes paid related to net share settlement of equity awards | (8,667) | $ (8,667) | ||
Stock-based compensation | 111,143 | $ 111,143 | ||
Net income | 257,403 | 257,403 | ||
Other comprehensive income (loss) | $ 2,187 | 2,187 | ||
Ending Balance ( in shares) at Mar. 31, 2024 | 58,609 | 58,609 | ||
Ending Balance at Mar. 31, 2024 | $ 2,933,266 | $ 19,029 | (21,034) | 2,935,271 |
Beginning Balance (in shares) at Dec. 31, 2023 | 58,797 | |||
Beginning Balance at Dec. 31, 2023 | 2,860,977 | $ 18,348 | (20,668) | 2,863,297 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 19 | |||
Exercise of employee stock options | 680 | $ 680 | ||
Issuance of restricted stock (in shares) | 346 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (543) | |||
Repurchase of common stock | (100,011) | |||
Repurchase of common stock, including excise taxes | (100,351) | $ (53,304) | (47,047) | |
Taxes paid related to net share settlement of equity awards (in shares) | (10) | |||
Taxes paid related to net share settlement of equity awards | (1,836) | $ (1,836) | ||
Stock-based compensation | 55,141 | $ 55,141 | ||
Net income | 119,021 | 119,021 | ||
Other comprehensive income (loss) | $ (366) | (366) | ||
Ending Balance ( in shares) at Mar. 31, 2024 | 58,609 | 58,609 | ||
Ending Balance at Mar. 31, 2024 | $ 2,933,266 | $ 19,029 | $ (21,034) | $ 2,935,271 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities | ||
Net income | $ 257,403 | $ 153,838 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 111,143 | 126,913 |
Depreciation and amortization | 57,284 | 54,817 |
Non-cash operating lease costs | 16,596 | 20,231 |
Deferred income taxes | (28,935) | (49,492) |
Other | (2,829) | 1,878 |
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses): | ||
Accounts receivable | 66,569 | (14,317) |
Inventories | (33,886) | 17,620 |
Other current assets | (34,398) | (43,547) |
Other assets | (16,203) | 9,354 |
Accounts payable and accrued liabilities | (20,930) | (59,534) |
Deferred revenue | 36,855 | 102,933 |
Lease liabilities | (21,714) | (22,140) |
Net cash provided by operating activities | 386,955 | 298,554 |
Investing activities | ||
Purchases of investments | (1,000) | (689) |
Maturities of investments | 5,420 | 95,773 |
Sales of investments | 0 | 16,085 |
Acquisition of businesses, net of cash acquired | (32,939) | (35,006) |
Purchases of property and equipment | (18,503) | (23,793) |
Net cash (used in) provided by investing activities | (47,022) | 52,370 |
Financing activities | ||
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan | 22,557 | 22,461 |
Payments for repurchase of common stock | (250,029) | (40,005) |
Payments on term debt agreement | 0 | (350,000) |
Taxes paid related to net share settlement of equity awards | (8,667) | (9,825) |
Net cash used in financing activities | (236,139) | (377,369) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 103,794 | (26,445) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,779 | 2,979 |
Cash, cash equivalents and restricted cash, beginning of period | 800,835 | 762,207 |
Cash, cash equivalents and restricted cash, end of period | 906,408 | 738,741 |
Supplemental disclosures of cash flow information | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 26,169 | 27,200 |
Cash paid for interest on long-term debt | 0 | 2,970 |
Supplemental disclosures of non-cash activities | ||
Right-of-use assets obtained in exchange for lease obligations | $ 7,267 | $ 9,577 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business F5, Inc. (the "Company") is a leading provider of multi-cloud application security and delivery solutions which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's cloud, software, and hardware solutions enable its customers to deliver digital experiences to their customers faster, reliably, and at scale. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. In connection with its solutions, the Company offers a broad range of professional services, including consulting, training, maintenance, and other technical support services. Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. There have been no changes to the Company's significant accounting policies as of and for the three and six months ended March 31, 2024. New Accounting Pronouncements |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Capitalized Contract Acquisition Costs The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the six months ended March 31, 2024 and 2023 (in thousands): Six months ended 2024 2023 Balance, beginning of period $ 66,468 $ 77,220 Additional capitalized contract acquisition costs 13,851 13,123 Amortization of capitalized contract acquisition costs (18,015) (19,134) Balance, end of period $ 62,304 $ 71,209 Amortization of capitalized contract acquisition costs was $8.9 million and $9.4 million for the three months ended March 31, 2024 and 2023, respectively, and $18.0 million and $19.1 million for the six months ended March 31, 2024 and 2023, respectively, and is recorded in Sales and Marketing expense in the accompanying consolidated income statements. There was no impairment of any capitalized contract acquisition costs during any period presented. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company's contracts with customers. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations, or for contracts with customers that contain the Company's unconditional rights to consideration, for which the customer has not been billed. These liabilities are classified as current and non-current deferred revenue. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the six months ended March 31, 2024 and 2023 (in thousands): Six months ended 2024 2023 Balance, beginning of period $ 1,775,121 $ 1,691,580 Amounts added but not recognized as revenues 768,890 785,122 Deferred revenue acquired through acquisition of businesses — 1,800 Revenues recognized related to the opening balance of deferred revenue (732,035) (682,190) Balance, end of period $ 1,811,976 $ 1,796,312 Remaining Performance Obligations Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. The composition of unsatisfied performance obligations consists mainly of deferred service revenue, and to a lesser extent, deferred product revenue, for which the Company has an obligation to perform, and has not yet recognized as revenue in the consolidated financial statements. As of March 31, 2024, the total non-cancelable remaining performance obligations under the Company's contracts with customers was $1.8 billion and the Company expects to recognize revenues on approximately 65.0% of these remaining performance obligations over the next 12 months, 22.0% in year two, and the remaining balance thereafter. See Note 12, Segment Information, for disaggregated revenue by significant customer and geographic region, as well as disaggregated product revenue by systems and software. |
Fair Value Measures and Disclos
Fair Value Measures and Disclosures | 6 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Company determines fair value using a fair value hierarchy that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances and expands disclosure about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date, essentially the exit price. The levels of fair value hierarchy are: Level 1: Quoted prices in active markets for identical assets and liabilities at the measurement date that the Company has the ability to access. Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs for which there is little or no market data available. These inputs reflect management's assumptions of what market participants would use in pricing the asset or liability. Level 1 investments are valued based on quoted market prices in active markets and include the Company's cash equivalent investments. Level 2 investments, which include investments that are valued based on quoted prices in markets that are not active, broker or dealer quotations, actual trade data, benchmark yields or alternative pricing sources with reasonable levels of price transparency, include the Company's certificates of deposit, corporate bonds and notes, municipal bonds and notes, U.S. government securities, U.S. government agency securities and international government securities. Fair values for the Company's level 2 investments are based on similar assets without applying significant judgments. In addition, all of the Company's level 2 investments have a sufficient level of trading volume to demonstrate that the fair values used are appropriate for these investments. A financial instrument's level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes "observable" requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. Assets and Liabilities Measured and Recorded at Fair Value on a Recurring Basis The Company's financial assets measured at fair value on a recurring basis subject to the disclosure requirements at March 31, 2024 and September 30, 2023, were as follows (in thousands): Gross Unrealized Classification on Balance Sheet As of March 31, 2024 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income (loss) Money Market Funds Level 1 $ 396,387 $ — $ — $ 396,387 $ 396,387 $ — $ — Corporate bonds and notes Level 2 817 — (15) 802 — 802 — Total debt investments $ 397,204 $ — $ (15) $ 397,189 $ 396,387 $ 802 $ — Changes in fair value recorded in other net income (expense) Equity investments * $ 6,343 $ — $ — $ 6,343 Total equity investments 6,343 — — 6,343 Total investments $ 403,532 $ 396,387 $ 802 $ 6,343 * The fair value of this equity investment is measured at net asset value (NAV) which approximates fair value and is not classified within the fair value hierarchy . Gross Unrealized Classification on Balance Sheet As of September 30, 2023 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income (loss) Money Market Funds Level 1 $ 392,592 $ — $ — $ 392,592 $ 392,592 $ — $ — Corporate bonds and notes Level 2 4,412 — (88) 4,324 — 4,324 — Municipal bonds and notes Level 2 1,108 — (9) 1,099 — 1,099 — U.S. government agency securities Level 2 740 — (3) 737 — 737 — Total debt investments $ 398,852 $ — $ (100) $ 398,752 $ 392,592 $ 6,160 $ — Changes in fair value recorded in other net income (expense) Equity investments * $ 5,068 $ — $ — $ 5,068 Total equity investments 5,068 — — 5,068 Total investments $ 403,820 $ 392,592 $ 6,160 $ 5,068 * The fair value of this equity investment is measured at NAV which approximates fair value and is not classified within the fair value hierarchy . The Company uses the fair value hierarchy for financial assets and liabilities. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value due to their short-term nature. Interest income from cash, cash equivalents, and investments was $8.3 million and $2.9 million for the three months ended March 31, 2024 and 2023, respectively, and $16.1 million and $6.1 million for the six months ended March 31, 2024 and 2023, respectively. Interest income is included in other income (expense), net on the Company's consolidated income statements. Unrealized losses on investments held for a period greater than 12 months at March 31, 2024 and September 30, 2023 were not material. The Company invests in debt securities that are rated investment grade. The Company reviews the individual debt securities in its portfolio to determine whether a credit loss exists by comparing the extent to which the fair value is less than the amortized cost and considering any changes to ratings of a debt security by a ratings agency. The Company determined that as of March 31, 2024, there were no credit losses on any investments within its portfolio. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis The Company's non-financial long-lived assets, which include goodwill and other intangible assets, are not required to be carried at fair value on a recurring basis. These non-financial assets are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. The Company reviews goodwill for impairment annually, during the second quarter of each fiscal year, or as circumstances indicate the possibility of impairment. The Company monitors the carrying value of tangible and intangible long-lived assets for impairment whenever events or changes in circumstances indicate its carrying amount may not be recoverable. The Company did not recognize any impairment charges related to non-financial long-lived assets for the three and six months ended March 31, 2024 and 2023. |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 31, 2024 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal Year 2024 Acquisitions During the second quarter of fiscal 2024, the Company completed two acquisitions. The acquired assets and assumed liabilities of the acquisitions were not material and the Company recorded $23.6 million of goodwill as a result of the acquisitions. The acquisitions did not have a material impact to the Company's operating results. Fiscal Year 2023 Acquisition In February 2023, the Company acquired Lilac Cloud, Inc. ("Lilac"), a provider of innovative application delivery services. The acquired assets and assumed liabilities of Lilac were not material. The Company recorded $29.4 million of goodwill as a result of the acquisition. The measurement period for the Lilac acquisition lapsed during the second quarter of fiscal 2024. The acquisition did not have a material impact to the Company's operating results. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | Balance Sheet Details Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of the Company's cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows for the periods presented (in thousands): March 31, September 30, Cash and cash equivalents $ 902,680 $ 797,163 Restricted cash included in other assets, net 3,728 3,672 Total cash, cash equivalents and restricted cash $ 906,408 $ 800,835 Inventories Inventories consist of the following (in thousands): March 31, September 30, Finished goods $ 17,605 $ 11,699 Raw materials 52,155 24,175 $ 69,760 $ 35,874 Other Current Assets Other current assets consist of the following (in thousands): March 31, September 30, Unbilled receivables $ 379,904 $ 374,113 Prepaid expenses 116,621 84,506 Capitalized contract acquisition costs 30,411 31,206 Other 1 63,018 64,919 $ 589,954 $ 554,744 (1) As of March 31, 2024 and September 30, 2023, includes a deposit of $4.9 million and $36.2 million, respectively, used to support the working capital needs of the Company’s primary contract manufacturer's procurement of components used in the manufacturing of system hardware. As of March 31, 2024 and September 30, 2023, includes income tax receivables of $25.4 million and $5.2 million, respectively. Other Assets Other assets, net consist of the following (in thousands): March 31, September 30, Intangible assets $ 132,243 $ 150,969 Unbilled receivables 219,084 202,838 Capitalized contract acquisition costs 31,893 35,263 Other 55,851 55,543 $ 439,071 $ 444,613 Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, September 30, Payroll and benefits $ 152,574 $ 152,898 Operating lease liabilities, current 38,480 41,421 Income and other tax accruals 26,593 34,504 Other 48,916 54,067 $ 266,563 $ 282,890 Other Long-term Liabilities Other long-term liabilities consist of the following (in thousands): March 31, September 30, Income taxes payable $ 72,110 $ 73,751 Other 8,996 8,822 $ 81,106 $ 82,573 |
Debt Facilities
Debt Facilities | 6 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Debt Facilities Term Credit Agreement In connection with the acquisition of Shape, on January 24, 2020, the Company entered into a Term Credit Agreement ("Term Credit Agreement") with certain institutional lenders that provides for a senior unsecured term loan facility in an aggregate principal amount of $400.0 million (the "Term Loan Facility"). The Term Loan Facility had an original maturity date of January 24, 2023 with quarterly installments equal to 1.25% of the original principal amount. Borrowings under the Term Loan Facility bore interest at a rate equal to LIBOR, plus an applicable margin of 1.125% to 1.75% depending on the Company's leverage ratio. The proceeds from the Term Loan Facility were primarily used to finance the acquisition of Shape and related expenses. In connection with the Term Loan Facility, the Company incurred $2.2 million in debt issuance costs, which were recorded as a reduction to the carrying value of the principal amount of the debt. On December 15, 2022, the Company voluntarily prepaid, in full, all borrowings under the Term Loan Facility, including the outstanding principal balance of $350.0 million, and all accrued, but unpaid interest outstanding of $3.0 million. All remaining debt issuance costs were amortized to interest expense associated with the prepayment. As a result of the payoff of its Term Loan Facility, the Company was released of any and all obligations, maintenance of covenants, and indebtedness under the Term Credit Agreement. The weighted average interest rate on the principal amount under the Term Loan Facility outstanding balance was 4.072% for the period of October 1, 2022 to December 15, 2022. Revolving Credit Agreement On January 31, 2020, the Company entered into a Revolving Credit Agreement (the "Revolving Credit Agreement") that provides for a senior unsecured revolving credit facility in an aggregate principal amount of $350.0 million (the "Revolving Credit Facility"). The Company has the option to increase commitments under the Revolving Credit Facility from time to time, subject to certain conditions, by up to $150.0 million. Historically, borrowings under the Revolving Credit Facility bore interest at a rate equal to, at the Company's option, (a) LIBOR, adjusted for customary statutory reserves, plus an applicable margin of 1.125% to 1.75% depending on the Company's leverage ratio, or (b) an alternate base rate determined in accordance with the Revolving Credit Agreement, plus an applicable margin of 0.125% to 0.750% depending on the Company's leverage ratio. On May 26, 2023, the Company amended the Revolving Credit Agreement as a result of the cessation of the LIBOR borrowing reference rate. The amendment modified and directly replaced the LIBOR borrowing reference rate within the Revolving Credit Agreement to the Secured Overnight Financing Rate (SOFR). After the amendment, borrowings under the Revolving Credit Facility bear interest at a rate equal to, at the Company's option, (a) SOFR plus 0.10%, plus an applicable margin of 1.125% to 1.75% depending on the Company's leverage ratio, or (b) an alternate base rate determined in accordance with the Revolving Credit Agreement, plus an applicable margin of 0.125% to 0.750% depending on the Company's leverage ratio. The Revolving Credit Agreement also requires payment of a commitment fee calculated at a rate per annum of 0.125% to 0.300% depending on the Company's leverage ratio on the undrawn portion of the Revolving Credit Facility. Commitment fees incurred during the three and six months ended March 31, 2024 were not material. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of the Company's operating lease expenses for the three and six months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Operating lease expense $ 10,167 $ 12,181 $ 20,493 $ 24,697 Short-term lease expense 671 744 1,366 1,399 Variable lease expense 5,941 5,650 11,975 10,986 Total lease expense $ 16,779 $ 18,575 $ 33,834 $ 37,082 Variable lease expense primarily consists of common area maintenance, real estate taxes and parking expenses. Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate): March 31, September 30, Operating lease right-of-use assets, net $ 188,973 $ 195,471 Operating lease liabilities, current 1 38,480 41,421 Operating lease liabilities, long-term 228,368 239,565 Total operating lease liabilities $ 266,848 $ 280,986 Weighted average remaining lease term (in years) 8.3 8.6 Weighted average discount rate 2.91 % 2.77 % (1) Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets. As of March 31, 2024, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending September 30: Operating Lease 2024 (remainder) $ 23,702 2025 42,189 2026 34,948 2027 32,555 2028 29,502 2029 26,750 Thereafter 112,351 Total lease payments 301,997 Less: imputed interest (35,149) Total lease liabilities $ 266,848 Operating lease liabilities above do not include sublease income. As of March 31, 2024, the Company expects to receive sublease income of approximately $8.6 million, which consists of $2.6 million to be received for the remainder of fiscal 2024 and $6.0 million to be received over the two fiscal years thereafter. As of March 31, 2024, the Company had no significant operating leases that were executed but not yet commenced. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Product Warranties In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, resellers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold the other party harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. The Company has entered into indemnification agreements with its officers and directors and certain other employees, and the Company's bylaws contain similar indemnification obligations to the Company's agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Company offers warranties of one year for its systems product offerings. Additional warranty coverage can be purchased by customers through service maintenance agreements in yearly increments. The Company accrues for warranty costs as part of its cost of sales based on associated material product costs and technical support labor costs. Accrued warranty costs as of March 31, 2024 and September 30, 2023 were not material. Commitments In October 2022, the Company entered into an unconditional purchase commitment with one of its suppliers for the delivery of systems components. Under the terms of the agreement, the Company is obligated to purchase $10.0 million of component inventory annually, with a total committed amount of $40.0 million over a four The Company leases its facilities under operating leases that expire at various dates through 2033. There have been no material changes in the Company's lease obligations compared to those discussed in Note 7 to its annual consolidated financial statements. Legal Proceedings Lynwood Investment CY Limited v. F5 Networks et al. On June 8, 2020, Lynwood Investment CY Limited (“Lynwood”) filed a lawsuit in the United States District Court for the Northern District of California against the Company and certain affiliates, along with other defendants. In its complaint, Lynwood claims to be the assignee of all rights and interests of Rambler Internet Holding LLC (“Rambler”), and alleges that the intellectual property in the NGINX software originally released by the co-founder of NGINX in 2004 belongs to Rambler (and therefore Lynwood, by assignment) because the software was created and developed while the co-founder was employed by Rambler. Lynwood asserted 26 causes of action against the various defendants, including copyright infringement, violation of trademark law, tortious interference, conspiracy, and fraud. The complaint sought damages, disgorgement of profits, declarations of copyright and trademark ownership, trademark cancellations, and injunctive relief. Lynwood also initiated several trademark opposition and cancellation proceedings before the Trademark Trial and Appeal Board of the United States Patent and Trademark Office, which have all since been suspended. In August and October 2020, the Company and the other defendants filed motions to dismiss Lynwood’s case. On March 25 and 30, 2021, the Court granted the Company’s and the other defendants’ motions to dismiss with leave to amend. Lynwood filed its amended complaint on April 29, 2021, seeking the same relief against the Company and other defendants. On May 27, 2021, the Company and other defendants filed a consolidated motion to dismiss. The Court granted the consolidated motion to dismiss without leave to amend on August 16, 2022 and entered final judgment against Lynwood on September 9, 2022. On September 14, 2022, Lynwood filed a notice of appeal to the Ninth Circuit Court of Appeals to appeal the dismissal. Lynwood filed its opening brief on December 16, 2022. The Company filed its opening appellate brief on April 10, 2023, and Lynwood filed its reply on May 31, 2023. Following the Court’s order granting the consolidated motion to dismiss and final judgment in the Company’s favor, the Court subsequently granted the Company attorneys' fees of over $0.8 million, which Lynwood appealed to the Ninth Circuit Court of Appeals. The dismissal appeal and the fees appeal were heard by the Ninth Circuit Court of Appeals on December 7, 2023. The Court of Appeals has not yet ruled on the appeals. In addition to the above matters, the Company is subject to a variety of legal proceedings, claims, investigations, and litigation arising in the ordinary course of business, including intellectual property litigation. Management believes that the Company has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, the Company is unable to currently determine if an unfavorable outcome is probable or estimate any potential amount or range of possible loss of these or similar matters. There are many uncertainties associated with any litigation and these actions or other third-party claims against the Company may cause it to incur costly litigation and/or substantial settlement charges that could have a material adverse effect on the Company's business, financial condition, results of operations, and cash flows. The Company records an accrual for loss contingencies for legal proceedings when it believes that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. The Company has not recorded any accrual for loss contingencies associated with such legal proceedings or the investigations discussed above. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items in the related period. The effective tax rate was 18.4% and 19.6% for the three and six months ended March 31, 2024, respectively, compared to 25.1% and 24.8% for the three and six months ended March 31, 2023, respectively. The decrease in the effective tax rate for the three and six months ended March 31, 2024 as compared to the three and six months ended March 31, 2023 is primarily due to the tax impact of stock-based compensation. At March 31, 2024, the Company had $75.4 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. It is anticipated that the Company’s existing liabilities for unrecognized tax benefits will change within the next twelve months due to audit settlements or the expiration of statutes of limitations. The Company does not expect these changes to be material to the consolidated financial statements. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Shareholders' Equity Common Stock Repurchase On July 25, 2022, the Company announced that its Board of Directors authorized an additional $1.0 billion for its common stock share repurchase program. This authorization is incremental to the existing $5.4 billion program, initially approved in October 2010 and expanded in subsequent fiscal years. Acquisitions for the share repurchase programs will be made from time to time in private transactions, accelerated share repurchase programs, or open market purchases as permitted by securities laws and other legal requirements. The programs can be terminated at any time. The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program (in thousands, except per share data): Three months ended Six months ended 2024 2023 2024 2023 Shares repurchased 543 — 1,465 263 Average price per share $ 184.07 — $ 170.59 $ 151.87 Amount repurchased $ 100,011 — $ 250,029 $ 40,005 As of March 31, 2024, the Company had $672.4 million remaining authorized to purchase shares under its share repurchase program. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Mar. 31, 2024 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company's nonvested restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents and are not considered participating securities that should be included in the computation of earnings per share under the two-class method. The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended Six months ended 2024 2023 2024 2023 Numerator Net income $ 119,021 $ 81,436 $ 257,403 $ 153,838 Denominator Weighted average shares outstanding — basic 58,788 60,330 58,956 60,211 Dilutive effect of common shares from stock options and restricted stock units 792 361 661 326 Weighted average shares outstanding — diluted 59,580 60,691 59,617 60,537 Basic net income per share $ 2.02 $ 1.35 $ 4.37 $ 2.55 Diluted net income per share $ 2.00 $ 1.34 $ 4.32 $ 2.54 Anti-dilutive stock-based awards excluded from the calculations of diluted earnings per share were not material for the three and six months ended March 31, 2024 and 2023. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Management has determined that the Company is organized as, and operates in, one reportable operating segment. Revenues by Geographic Location and Other Information The Company does business in three main geographic regions: the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); and the Asia Pacific region (APAC). The Company's chief operating decision-maker reviews financial information presented on a consolidated basis accompanied by information about net product revenues and revenues by geographic region. The Company's foreign offices conduct sales, marketing, research and development, and support activities. Revenues are attributed by geographic location based on the location of the customer. The following presents revenues by geographic region (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Americas: United States $ 363,847 $ 359,906 $ 713,922 $ 735,654 Other 21,718 23,197 48,033 49,607 Total Americas 385,565 383,103 761,955 785,261 EMEA 178,386 190,439 371,749 374,554 APAC 117,403 129,633 240,247 243,738 $ 681,354 $ 703,175 $ 1,373,951 $ 1,403,553 The Company continues to offer its products through a range of consumption models, from physical systems to software solutions and managed services. The following presents net product revenues by systems and software (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Net product revenues Systems revenue $ 141,654 $ 208,689 $ 277,028 $ 381,721 Software revenue 158,508 131,892 328,993 299,418 Total net product revenue $ 300,162 $ 340,581 $ 606,021 $ 681,139 The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended Six months ended 2024 2023 2024 2023 Ingram Micro, Inc. 18.6 % 16.5 % 17.0 % 17.1 % Synnex Corporation 16.5 % 14.7 % 16.0 % 14.2 % The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): March 31, September 30, Americas: United States $ 119,617 $ 125,736 Other 2,083 2,592 Total Americas 121,700 128,328 EMEA 23,957 24,336 APAC 15,868 17,758 $ 161,525 $ 170,422 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Mar. 31, 2024 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges In the first quarter of fiscal 2024, the Company initiated a restructuring plan to match strategic and financial objectives and optimize resources for long term growth, including a reduction in force program. The Company recorded a restructuring charge of $9.8 million and did not record any significant subsequent charges related to the first quarter of fiscal 2024 restructuring plan. In the third quarter of fiscal 2023, the Company initiated a restructuring plan to better align strategic and financial objectives, optimize operations, and drive efficiencies for long-term growth and profitability, including a reduction in force affecting approximately 620 employees, or approximately 9% of the Company’s global workforce as of April 19, 2023. This included $53.2 million in severance benefits costs and related employer payroll taxes, and $3.5 million in charges related to the reduction of its leased facility space. The Company incurred $56.7 million in restructuring costs and did not record any significant subsequent charges related to the third quarter of fiscal 2023 restructuring plan. In the first quarter of fiscal 2023, the Company initiated a restructuring plan to match strategic and financial objectives and optimize resources for long term growth, including a reduction in force program. The Company recorded a restructuring charge of $8.7 million and did not record any significant subsequent charges related to the first quarter of fiscal 2023 restructuring plan. During the six months ended March 31, 2024 and 2023, the following activity was recorded (in thousands): Six months ended 2024 2023 Employee Severance, Benefits and Related Costs Accrued expenses, beginning of period $ 3,496 $ — Restructuring charges 1 8,562 8,740 Cash payments (11,501) (8,130) Accrued expenses, end of period $ 557 $ 610 (1) Includes relief of unused benefits and foreign currency fluctuations. Charges related to employee severance, benefits, and related costs are reflected in the restructuring charges line item on the Company's consolidated income statements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||
Net income | $ 119,021 | $ 81,436 | $ 257,403 | $ 153,838 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Rule 10b5-1 and Non-Rule 10b5-1 Trading Arrangements During the three months ended March 31, 2024, certain of our officers and directors adopted or terminated Rule 10b5-1 trading arrangements as follows: On March 6, 2024, Scot Rogers, EVP, General Counsel, adopted a written plan intended to satisfy the affirmative defense of Rule 10b5-1(c) that is designed to be in effect until March 6, 2025 with respect to the sale of 9,270 Company shares. |
Rule 10b5-1 Arrangement Adopted | true |
Rule 10b5-1 Arrangement Terminated | false |
Scot Rogers [Member] | |
Trading Arrangements, by Individual | |
Name | Scot Rogers |
Title | EVP, General Counsel |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 6, 2024 |
Aggregate Available | 9,270 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business F5, Inc. (the "Company") is a leading provider of multi-cloud application security and delivery solutions which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's cloud, software, and hardware solutions enable its customers to deliver digital experiences to their customers faster, reliably, and at scale. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. In connection with its solutions, the Company offers a broad range of professional services, including consulting, training, maintenance, and other technical support services. |
Basis of Presentation | Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023. |
Recent Accounting Pronouncements | There have been no changes to the Company's significant accounting policies as of and for the three and six months ended March 31, 2024. New Accounting Pronouncements |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Capitalized Contract Cost | The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the six months ended March 31, 2024 and 2023 (in thousands): Six months ended 2024 2023 Balance, beginning of period $ 66,468 $ 77,220 Additional capitalized contract acquisition costs 13,851 13,123 Amortization of capitalized contract acquisition costs (18,015) (19,134) Balance, end of period $ 62,304 $ 71,209 |
Contract with Customer, Asset and Liability | The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the six months ended March 31, 2024 and 2023 (in thousands): Six months ended 2024 2023 Balance, beginning of period $ 1,775,121 $ 1,691,580 Amounts added but not recognized as revenues 768,890 785,122 Deferred revenue acquired through acquisition of businesses — 1,800 Revenues recognized related to the opening balance of deferred revenue (732,035) (682,190) Balance, end of period $ 1,811,976 $ 1,796,312 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The Company's financial assets measured at fair value on a recurring basis subject to the disclosure requirements at March 31, 2024 and September 30, 2023, were as follows (in thousands): Gross Unrealized Classification on Balance Sheet As of March 31, 2024 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income (loss) Money Market Funds Level 1 $ 396,387 $ — $ — $ 396,387 $ 396,387 $ — $ — Corporate bonds and notes Level 2 817 — (15) 802 — 802 — Total debt investments $ 397,204 $ — $ (15) $ 397,189 $ 396,387 $ 802 $ — Changes in fair value recorded in other net income (expense) Equity investments * $ 6,343 $ — $ — $ 6,343 Total equity investments 6,343 — — 6,343 Total investments $ 403,532 $ 396,387 $ 802 $ 6,343 * The fair value of this equity investment is measured at net asset value (NAV) which approximates fair value and is not classified within the fair value hierarchy . Gross Unrealized Classification on Balance Sheet As of September 30, 2023 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income (loss) Money Market Funds Level 1 $ 392,592 $ — $ — $ 392,592 $ 392,592 $ — $ — Corporate bonds and notes Level 2 4,412 — (88) 4,324 — 4,324 — Municipal bonds and notes Level 2 1,108 — (9) 1,099 — 1,099 — U.S. government agency securities Level 2 740 — (3) 737 — 737 — Total debt investments $ 398,852 $ — $ (100) $ 398,752 $ 392,592 $ 6,160 $ — Changes in fair value recorded in other net income (expense) Equity investments * $ 5,068 $ — $ — $ 5,068 Total equity investments 5,068 — — 5,068 Total investments $ 403,820 $ 392,592 $ 6,160 $ 5,068 * The fair value of this equity investment is measured at NAV which approximates fair value and is not classified within the fair value hierarchy . |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Balance Sheet Details [Abstract] | |
Cash and Cash Equivalents | The following table provides a reconciliation of the Company's cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows for the periods presented (in thousands): March 31, September 30, Cash and cash equivalents $ 902,680 $ 797,163 Restricted cash included in other assets, net 3,728 3,672 Total cash, cash equivalents and restricted cash $ 906,408 $ 800,835 |
Inventories | Inventories consist of the following (in thousands): March 31, September 30, Finished goods $ 17,605 $ 11,699 Raw materials 52,155 24,175 $ 69,760 $ 35,874 |
Other Current Assets | Other current assets consist of the following (in thousands): March 31, September 30, Unbilled receivables $ 379,904 $ 374,113 Prepaid expenses 116,621 84,506 Capitalized contract acquisition costs 30,411 31,206 Other 1 63,018 64,919 $ 589,954 $ 554,744 (1) As of March 31, 2024 and September 30, 2023, includes a deposit of $4.9 million and $36.2 million, respectively, used to support the working capital needs of the Company’s primary contract manufacturer's procurement of components used in the manufacturing of system hardware. As of March 31, 2024 and September 30, 2023, includes income tax receivables of $25.4 million and $5.2 million, respectively. |
Other Assets, Noncurrent | Other assets, net consist of the following (in thousands): March 31, September 30, Intangible assets $ 132,243 $ 150,969 Unbilled receivables 219,084 202,838 Capitalized contract acquisition costs 31,893 35,263 Other 55,851 55,543 $ 439,071 $ 444,613 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, September 30, Payroll and benefits $ 152,574 $ 152,898 Operating lease liabilities, current 38,480 41,421 Income and other tax accruals 26,593 34,504 Other 48,916 54,067 $ 266,563 $ 282,890 |
Noncurrent Liabilities | Other long-term liabilities consist of the following (in thousands): March 31, September 30, Income taxes payable $ 72,110 $ 73,751 Other 8,996 8,822 $ 81,106 $ 82,573 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Lease, Cost | The components of the Company's operating lease expenses for the three and six months ended March 31, 2024 and 2023 were as follows (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Operating lease expense $ 10,167 $ 12,181 $ 20,493 $ 24,697 Short-term lease expense 671 744 1,366 1,399 Variable lease expense 5,941 5,650 11,975 10,986 Total lease expense $ 16,779 $ 18,575 $ 33,834 $ 37,082 |
Assets And Liabilities Lessee | Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate): March 31, September 30, Operating lease right-of-use assets, net $ 188,973 $ 195,471 Operating lease liabilities, current 1 38,480 41,421 Operating lease liabilities, long-term 228,368 239,565 Total operating lease liabilities $ 266,848 $ 280,986 Weighted average remaining lease term (in years) 8.3 8.6 Weighted average discount rate 2.91 % 2.77 % (1) Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets. |
Lessee, Operating Lease, Liability, Maturity | As of March 31, 2024, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending September 30: Operating Lease 2024 (remainder) $ 23,702 2025 42,189 2026 34,948 2027 32,555 2028 29,502 2029 26,750 Thereafter 112,351 Total lease payments 301,997 Less: imputed interest (35,149) Total lease liabilities $ 266,848 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program (in thousands, except per share data): Three months ended Six months ended 2024 2023 2024 2023 Shares repurchased 543 — 1,465 263 Average price per share $ 184.07 — $ 170.59 $ 151.87 Amount repurchased $ 100,011 — $ 250,029 $ 40,005 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Net Income Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended Six months ended 2024 2023 2024 2023 Numerator Net income $ 119,021 $ 81,436 $ 257,403 $ 153,838 Denominator Weighted average shares outstanding — basic 58,788 60,330 58,956 60,211 Dilutive effect of common shares from stock options and restricted stock units 792 361 661 326 Weighted average shares outstanding — diluted 59,580 60,691 59,617 60,537 Basic net income per share $ 2.02 $ 1.35 $ 4.37 $ 2.55 Diluted net income per share $ 2.00 $ 1.34 $ 4.32 $ 2.54 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | The following presents revenues by geographic region (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Americas: United States $ 363,847 $ 359,906 $ 713,922 $ 735,654 Other 21,718 23,197 48,033 49,607 Total Americas 385,565 383,103 761,955 785,261 EMEA 178,386 190,439 371,749 374,554 APAC 117,403 129,633 240,247 243,738 $ 681,354 $ 703,175 $ 1,373,951 $ 1,403,553 |
Schedule of Product Revenues by Systems and Software | The following presents net product revenues by systems and software (in thousands): Three months ended Six months ended 2024 2023 2024 2023 Net product revenues Systems revenue $ 141,654 $ 208,689 $ 277,028 $ 381,721 Software revenue 158,508 131,892 328,993 299,418 Total net product revenue $ 300,162 $ 340,581 $ 606,021 $ 681,139 |
Schedule of Revenue by Major Customers by Reporting Segments | The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended Six months ended 2024 2023 2024 2023 Ingram Micro, Inc. 18.6 % 16.5 % 17.0 % 17.1 % Synnex Corporation 16.5 % 14.7 % 16.0 % 14.2 % |
Long-lived Assets by Geographic Areas | The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): March 31, September 30, Americas: United States $ 119,617 $ 125,736 Other 2,083 2,592 Total Americas 121,700 128,328 EMEA 23,957 24,336 APAC 15,868 17,758 $ 161,525 $ 170,422 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Mar. 31, 2024 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | During the six months ended March 31, 2024 and 2023, the following activity was recorded (in thousands): Six months ended 2024 2023 Employee Severance, Benefits and Related Costs Accrued expenses, beginning of period $ 3,496 $ — Restructuring charges 1 8,562 8,740 Cash payments (11,501) (8,130) Accrued expenses, end of period $ 557 $ 610 (1) Includes relief of unused benefits and foreign currency fluctuations. |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Capitalized contract acquisition costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Changes In Capitalized Contract Cost [Roll Forward] | ||||
Beginning Balance | $ 66,468 | $ 77,220 | ||
Additional capitalized contract acquisition costs | 13,851 | 13,123 | ||
Amortization of capitalized contract acquisition costs | $ (8,900) | $ (9,400) | (18,015) | (19,134) |
Ending Balance | $ 62,304 | $ 71,209 | $ 62,304 | $ 71,209 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning Balance | $ 1,775,121 | $ 1,691,580 |
Amounts added but not recognized as revenues | 768,890 | 785,122 |
Deferred revenue acquired through acquisition of businesses | 0 | 1,800 |
Revenues recognized related to the opening balance of deferred revenue | (732,035) | (682,190) |
Ending Balance | $ 1,811,976 | $ 1,796,312 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortization of capitalized contract acquisition costs | $ 8,900,000 | $ 9,400,000 | $ 18,015,000 | $ 19,134,000 |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Billions | Mar. 31, 2024 USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 1.8 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, remaining performance obligation, percentage | 65% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, remaining performance obligation, percentage | 22% |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | $ 396,387 | $ 392,592 |
Cost or amortized cost | 397,204 | 398,852 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (15) | (100) |
Fair value | 397,189 | 398,752 |
Debt Securities, Available-for-sale, Current | 802 | 6,160 |
Debt Securities, Available-for-sale, Noncurrent | 0 | 0 |
Equity Securities, FV-NI | 6,343 | 5,068 |
Equity Securities, FV-NI, Current | 0 | 0 |
Equity Securities, FV-NI, Noncurrent | 6,343 | 5,068 |
Available-for-sale Securities | 403,532 | 403,820 |
Available-for-sale Securities, Current | 802 | 6,160 |
Long-term investments | 6,343 | 5,068 |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Equity Securities, FV-NI | 6,343 | 5,068 |
Equity Securities, FV-NI, Current | 0 | 0 |
Equity Securities, FV-NI, Noncurrent | 6,343 | 5,068 |
Money Market Funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 396,387 | 392,592 |
Money Market Funds | Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 396,387 | 392,592 |
Corporate Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 817 | 4,412 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (15) | (88) |
Corporate Debt Securities [Member] | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 802 | 4,324 |
Debt Securities, Available-for-sale, Current | 802 | 4,324 |
Debt Securities, Available-for-sale, Noncurrent | $ 0 | 0 |
Municipal Bonds And Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 1,108 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (9) | |
Municipal Bonds And Notes [Member] | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 1,099 | |
Debt Securities, Available-for-sale, Current | 1,099 | |
Debt Securities, Available-for-sale, Noncurrent | 0 | |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 740 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (3) | |
U.S. Government Agency Securities | Fair Value, Recurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 737 | |
Debt Securities, Available-for-sale, Current | 737 | |
Debt Securities, Available-for-sale, Noncurrent | $ 0 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest Income, Other | $ 8.3 | $ 2.9 | $ 16.1 | $ 6.1 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Feb. 01, 2023 | Mar. 31, 2024 | |
Fiscal Year 2024 Acquisitions | ||
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | $ 23,600 | |
Lilac Cloud, Inc. | ||
Business Acquisition [Line Items] | ||
Goodwill, Acquired During Period | $ 29,400 |
Balance Sheet Details - Cash an
Balance Sheet Details - Cash and Cash Equivalent (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 |
Balance Sheet Details [Abstract] | ||||
Cash and cash equivalents | $ 902,680 | $ 797,163 | ||
Restricted cash included in other assets, net | 3,728 | 3,672 | ||
Total cash, cash equivalents and restricted cash | $ 906,408 | $ 800,835 | $ 738,741 | $ 762,207 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Balance Sheet Details [Abstract] | ||
Finished goods | $ 17,605 | $ 11,699 |
Raw materials | 52,155 | 24,175 |
Inventories | $ 69,760 | $ 35,874 |
Balance Sheet Details - Other C
Balance Sheet Details - Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Balance Sheet Details [Abstract] | ||
Unbilled receivables | $ 379,904 | $ 374,113 |
Prepaid expenses | 116,621 | 84,506 |
Capitalized contract acquisition costs | 30,411 | 31,206 |
Other (1) | 63,018 | 64,919 |
Other Assets, Current | 589,954 | 554,744 |
(1)Deposit Assets | 4,900 | 36,200 |
(1)Income Taxes Receivable, Current | $ 25,400 | $ 5,200 |
Balance Sheet Details - Other A
Balance Sheet Details - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Balance Sheet Details [Abstract] | ||
Intangible assets | $ 132,243 | $ 150,969 |
Unbilled receivables | 219,084 | 202,838 |
Capitalized contract acquisition costs | 31,893 | 35,263 |
Other | 55,851 | 55,543 |
Other Assets, Noncurrent | $ 439,071 | $ 444,613 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Balance Sheet Details [Abstract] | ||
Payroll and benefits | $ 152,574 | $ 152,898 |
Operating lease liabilities, current | 38,480 | 41,421 |
Income and other tax accruals | 26,593 | 34,504 |
Other | 48,916 | 54,067 |
Accrued Liabilities, Current | $ 266,563 | $ 282,890 |
Balance Sheet Details - Other L
Balance Sheet Details - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Balance Sheet Details [Abstract] | ||
Income taxes payable | $ 72,110 | $ 73,751 |
Other | 8,996 | 8,822 |
Other long-term liabilities | $ 81,106 | $ 82,573 |
Debt Facilities - Narrative (De
Debt Facilities - Narrative (Details) | 2 Months Ended | 6 Months Ended | |||||
May 26, 2023 | Dec. 15, 2022 USD ($) | Jan. 31, 2020 USD ($) | Jan. 24, 2020 USD ($) | Dec. 15, 2022 | Mar. 31, 2024 USD ($) extension | Mar. 31, 2023 USD ($) | |
Debt Instrument [Line Items] | |||||||
Payments on term debt agreement | $ 0 | $ 350,000,000 | |||||
Term Loan Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 400,000,000 | ||||||
Redemption percentage | 1.25% | ||||||
Debt issuance costs | $ 2,200,000 | ||||||
Payments on term debt agreement | $ 350,000,000 | ||||||
Interest Expense, Long-Term Debt | $ 3,000,000 | ||||||
Line of Credit Facility, Interest Rate During Period | 4.072% | ||||||
Term Loan Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.125% | ||||||
Term Loan Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | ||||||
Revolving Credit Facility | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 350,000,000 | ||||||
Conditional increase in borrowing capacity | $ 150,000,000 | ||||||
Debt Instrument, Interest Rate, Basis for Effective Rate | 0.10 | ||||||
Number of extensions | extension | 2 | ||||||
Length of extension period | 1 year | ||||||
Long-term line of credit | $ 0 | ||||||
Outstanding line of credit balance | $ 350,000,000 | ||||||
Revolving Credit Facility | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.125% | 1.125% | |||||
Commitment fee percentage | 0.125% | ||||||
Revolving Credit Facility | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 1.75% | 1.75% | |||||
Commitment fee percentage | 0.30% | ||||||
Revolving Credit Facility | Alternate Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.125% | 0.125% | |||||
Revolving Credit Facility | Alternate Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 0.75% | 0.75% |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating lease expense | $ 10,167 | $ 12,181 | $ 20,493 | $ 24,697 |
Short-term lease expense | 671 | 744 | 1,366 | 1,399 |
Variable lease expense | 5,941 | 5,650 | 11,975 | 10,986 |
Total lease expense | $ 16,779 | $ 18,575 | $ 33,834 | $ 37,082 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 188,973 | $ 195,471 |
Operating lease liabilities, current | 38,480 | 41,421 |
Operating lease liabilities, long-term | 228,368 | 239,565 |
Total lease liabilities | $ 266,848 | $ 280,986 |
Weighted average remaining lease term (in years) | 8 years 3 months 18 days | 8 years 7 months 6 days |
Weighted average discount rate | 2.91% | 2.77% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Leases [Abstract] | ||
2024 (remainder) | $ 23,702 | |
2025 | 42,189 | |
2026 | 34,948 | |
2027 | 32,555 | |
2028 | 29,502 | |
2029 | 26,750 | |
Thereafter | 112,351 | |
Total lease payments | 301,997 | |
Less: imputed interest | (35,149) | |
Total lease liabilities | $ 266,848 | $ 280,986 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Millions | 6 Months Ended |
Mar. 31, 2024 USD ($) ft² | |
Lessee, Lease, Description [Line Items] | |
Sublease Income | $ 8.6 |
Sublease income payment remainder of fiscal year | 2.6 |
Lessor, Operating Lease, Payments to be Received, Two To Three Years | $ 6 |
Office Building | |
Lessee, Lease, Description [Line Items] | |
Operating lease, number of square feet | ft² | 515 |
Commitments And Contingencies (
Commitments And Contingencies (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Apr. 11, 2023 | Oct. 27, 2022 | Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Product warranty period | 1 year | ||
Unrecorded Unconditional Purchase Obligation, to be Paid, Year One | $ 10 | ||
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Two | 10 | ||
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Three | 10 | ||
Unrecorded Unconditional Purchase Obligation, to be Paid, Year Four | 10 | ||
Unrecorded Unconditional Purchase Obligation | $ 40 | $ 20 | |
Unrecorded Unconditional Purchase Obligation, Term | 4 years | ||
Unrecorded Unconditional Purchase Obligation, to be Paid, Remainder of Fiscal Year | $ 0 | ||
Loss Contingencies [Line Items] | |||
Litigation Settlement, Amount Awarded from Other Party | $ 0.8 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 18.40% | 25.10% | 19.60% | 24.80% |
Unrecognized tax benefit | $ 75.4 | $ 75.4 |
Shareholders' Equity - Class of
Shareholders' Equity - Class of Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 184.07 | $ 0 | $ 170.59 | $ 151.87 |
Stock Repurchased and Retired During Period, Value | $ 100,011 | $ 0 | $ 250,029 | $ 40,005 |
October Twenty Six Two Thousand Ten Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | 543 | 0 | 1,465 | 263 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - October Twenty Six Two Thousand Ten Program - USD ($) $ in Millions | Mar. 31, 2024 | Jul. 22, 2022 | Oct. 31, 2018 |
Equity, Class of Treasury Stock [Line Items] | |||
Stock Repurchase Program, Authorized Amount | $ 1,000 | $ 5,400 | |
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 672.4 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||||
Net income | $ 119,021 | $ 81,436 | $ 257,403 | $ 153,838 |
Denominator | ||||
Weighted average shares outstanding — basic (shares) | 58,788 | 60,330 | 58,956 | 60,211 |
Dilutive effect of common shares from stock options and restricted stock units | 792 | 361 | 661 | 326 |
Weighted average shares outstanding — diluted (shares) | 59,580 | 60,691 | 59,617 | 60,537 |
Basic net income per share (dollars per share) | $ 2.02 | $ 1.35 | $ 4.37 | $ 2.55 |
Diluted net income per share (dollars per share) | $ 2 | $ 1.34 | $ 4.32 | $ 2.54 |
Segment Information - Revenues
Segment Information - Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 681,354 | $ 703,175 | $ 1,373,951 | $ 1,403,553 |
United States | ||||
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 363,847 | 359,906 | 713,922 | 735,654 |
Other Americas [Member] | ||||
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 21,718 | 23,197 | 48,033 | 49,607 |
Total Americas | ||||
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 385,565 | 383,103 | 761,955 | 785,261 |
EMEA | ||||
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 178,386 | 190,439 | 371,749 | 374,554 |
APAC | ||||
Schedule of Revenues by Geographic Region [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 117,403 | $ 129,633 | $ 240,247 | $ 243,738 |
Segment Information - Product R
Segment Information - Product Revenues by Systems and Software (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 681,354 | $ 703,175 | $ 1,373,951 | $ 1,403,553 |
Product | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 300,162 | 340,581 | 606,021 | 681,139 |
Systems | Product | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | 141,654 | 208,689 | 277,028 | 381,721 |
Software | Product | ||||
Product Information [Line Items] | ||||
Revenue from contract with customer, excluding assessed tax | $ 158,508 | $ 131,892 | $ 328,993 | $ 299,418 |
Segment Information - Revenue b
Segment Information - Revenue by Major Customers (Details) - Net Revenue - Geographic Concentration | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Ingram Micro, Inc. | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | 18.60% | 16.50% | 17% | 17.10% |
Synnex Corporation | ||||
Revenue, Major Customer [Line Items] | ||||
Concentration risk percentage | 16.50% | 14.70% | 16% | 14.20% |
Segment Information - Long-live
Segment Information - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Sep. 30, 2023 |
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | $ 161,525 | $ 170,422 |
United States | ||
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | 119,617 | 125,736 |
Other Americas [Member] | ||
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | 2,083 | 2,592 |
Total Americas | ||
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | 121,700 | 128,328 |
EMEA | ||
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | 23,957 | 24,336 |
APAC | ||
Schedule of Long-lived Assets by Geographic Region [Line Items] | ||
Long-lived assets | $ 15,868 | $ 17,758 |
Segment Information - Narrative
Segment Information - Narrative (Details) | 6 Months Ended |
Mar. 31, 2024 segment geographic_region | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | segment | 1 |
Number of geographic regions | geographic_region | 3 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Restructuring Cost and Reserve [Line Items] | ||
Accrued expenses (Beginning balance) | $ 3,496 | $ 0 |
Severance Costs, Including Other Adjustments | 8,562 | 8,740 |
Payments for Restructuring | (11,501) | (8,130) |
Accrued expenses (Ending balance) | $ 557 | $ 610 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2024 USD ($) | Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) Rate | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 90 | $ 0 | $ 8,562 | $ 8,740 | |||
Q1 2024 Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Severance Costs | $ 9,800 | ||||||
Q3 2023 Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring charges | $ 56,700 | ||||||
Severance Costs | 53,200 | ||||||
Other Restructuring Costs | $ 3,500 | ||||||
Restructuring and Related Cost, Number of Positions Eliminated | 620 | ||||||
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | Rate | 9% | ||||||
Q1 2023 Restructuring Plan | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Severance Costs | $ 8,700 |