Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | |
Jun. 30, 2023 | Aug. 15, 2023 | |
Cover [Abstract] | ||
Document Type | 10-K | |
Document Annual Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Current Fiscal Year End Date | --06-30 | |
Document Transition Report | false | |
Entity File Number | 333-262106 | |
Entity Registrant Name | Aspen Technology, Inc | |
Entity Central Index Key | 0001897982 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-3100817 | |
Entity Address, Address Line One | 20 Crosby Drive | |
Entity Address, City or Town | Bedford | |
Entity Address, State or Province | MA | |
Entity Address, Postal Zip Code | 01730 | |
City Area Code | 781 | |
Local Phone Number | 221-6400 | |
Title of 12(b) Security | Common stock, $0.0001 par value per share | |
Trading Symbol | AZPN | |
Security Exchange Name | NASDAQ | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
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 | |
ICFR Auditor Attestation Flag | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 64,382,647 | |
Documents Incorporated by Reference [Text Block] | Portions of the registrant’s definitive proxy statement related to the registrant's 2023 Annual Meeting of Stockholders to be filed with the Securities and Exchange Commission pursuant to Regulation 14A not later than 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K are incorporated by reference in Part III, Items 10-14 of this Annual Report on Form 10-K. | |
Entity Public Float | $ 4.4 |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Boston, Massachusetts |
Auditor Firm ID | 185 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Revenue: | ||||
Total revenue | $ 405,296 | $ 1,044,178 | $ 482,311 | $ 300,640 |
Cost of revenue: | ||||
Total cost of revenue | 156,396 | 373,589 | 199,916 | 163,010 |
Gross profit | 248,900 | 670,589 | 282,395 | 137,630 |
Operating expenses: | ||||
Selling and marketing | 108,463 | 482,656 | 103,311 | |
Research and development | 64,285 | 209,347 | 59,646 | |
General and administrative | 39,878 | 161,651 | 32,638 | |
Restructuring costs | 117 | 0 | 2,474 | |
Total operating expenses | 212,743 | 853,654 | 260,123 | 198,069 |
(Loss) income from operations | 36,157 | (183,065) | 22,272 | (60,439) |
Other (expense) income, net | 310 | 29,418 | 1,048 | 5,359 |
Interest income, net | 3,494 | 31,917 | 3,222 | (115) |
(Loss) income before provision for income taxes | 39,961 | (180,566) | 24,446 | (65,913) |
(Benefit) for income taxes | (13,185) | (72,806) | (17,498) | (45,305) |
Net (loss) income | $ 53,146 | $ (107,760) | $ 41,944 | $ (20,608) |
Net (loss) income per common share: | ||||
Basic | $ 1.30 | $ (1.67) | $ 1.05 | $ (0.57) |
Diluted | $ 1.30 | $ (1.67) | $ 1.05 | $ (0.57) |
Weighted average shares outstanding: | ||||
Basic | 40,931 | 64,621 | 39,768 | 36,308 |
Diluted | 41,008 | 64,621 | 39,845 | 36,308 |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 405,296 | $ 1,044,178 | $ 300,640 | |
License and solutions | ||||
Cost of revenue: | ||||
Total cost of revenue | 125,258 | 279,564 | 125,181 | |
Weighted average shares outstanding: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 278,589 | 669,185 | 180,914 | |
Maintenance | ||||
Cost of revenue: | ||||
Total cost of revenue | 15,030 | 36,650 | 18,610 | |
Weighted average shares outstanding: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 103,786 | 316,911 | 92,562 | |
Services and other | ||||
Cost of revenue: | ||||
Total cost of revenue | 16,108 | 57,375 | 19,219 | |
Weighted average shares outstanding: | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 22,921 | $ 58,082 | $ 27,164 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Net (loss) income | $ 53,146 | $ (107,760) | $ (20,608) |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 289 | 7,548 | 122 |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, Tax | (176) | 146 | (288) |
Other Comprehensive (Income) Loss, Defined Benefit Plan, after Reclassification Adjustment, after Tax | 807 | (524) | 723 |
Total other comprehensive income | 1,096 | 7,024 | 845 |
Comprehensive (loss) income | $ 54,242 | $ (100,736) | $ (19,763) |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 241,209 | $ 449,725 |
Accounts receivable, net | 122,789 | 111,027 |
Current contract assets, net | 367,539 | 428,833 |
Prepaid expenses and other current assets | 27,728 | 23,461 |
Prepaid income taxes | 11,424 | 17,503 |
Total current assets | 833,064 | 1,047,490 |
Property, equipment and leasehold improvements, net | 18,670 | 17,148 |
Goodwill | 8,330,811 | 8,266,809 |
Intangible assets, net | 4,659,657 | 5,112,781 |
Non-current contract assets, net | 536,104 | 428,232 |
Contract costs | 15,992 | 5,473 |
Operating lease right-of-use assets | 67,642 | 78,286 |
Deferred tax assets | 10,638 | 4,937 |
Other non-current assets | 13,474 | 8,766 |
Total assets | 14,486,052 | 14,969,922 |
Current liabilities: | ||
Accounts payable | 20,299 | 21,416 |
Accrued expenses and other current liabilities | 99,526 | 90,123 |
Current operating lease liabilities | 12,928 | 7,191 |
Income taxes payable | 46,205 | 6,768 |
Current borrowings | 0 | 28,000 |
Current contract liabilities | 151,450 | 143,327 |
Total current liabilities | 352,427 | 300,936 |
Non-current contract liabilities | 30,103 | 21,081 |
Deferred tax liabilities | 957,911 | 1,145,408 |
Non-current operating lease liabilities | 55,442 | 71,933 |
Non-current borrowings, net | 0 | 245,647 |
Other non-current liabilities | $ 19,240 | $ 15,560 |
Common stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, outstanding | 64,465,242 | 64,425,378 |
Common stock, issued | 64,952,868 | 64,425,378 |
Common stock, authorized | 600,000,000 | |
Stockholders' equity: | ||
Common stock, 0.0001 par value—Authorized—600,000,000 shares Issued— 64,952,868 shares at June 30, 2023 and 64,425,378 shares at June 30, 2022 Outstanding— 64,465,242 shares at June 30, 2023 and 64,425,378 shares at June 30, 2022 | $ 6 | $ 6 |
Additional paid-in capital | 13,194,028 | 13,107,570 |
(Accumulated deficit) retained earnings | (41,391) | 66,369 |
Accumulated other comprehensive income (loss) | $ 2,436 | $ (4,588) |
Treasury Stock, Common, Shares | 487,626 | 0 |
Treasury stock, at cost- 487,626 shares of common stock at June 30, 2023 and none at June 30, 2022 | $ (84,150) | $ 0 |
Total stockholders’ equity | 13,070,929 | 13,169,357 |
Total liabilities and stockholders’ equity | 14,486,052 | 14,969,922 |
Related Party | ||
Current assets: | ||
Receivables from related parties | 62,375 | 16,941 |
Current liabilities: | ||
Due to related parties | 22,019 | 4,111 |
Stockholders' equity: | ||
Receivables from related parties | 62,375 | 16,941 |
Due to related parties | 22,019 | 4,111 |
Receivables from related parties | 62,375 | 16,941 |
Due to related parties | $ 22,019 | $ 4,111 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Jun. 30, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | |
Common stock, authorized | 600,000,000 | |
Common stock, issued | 64,952,868 | 64,425,378 |
Common stock, outstanding | 64,465,242 | 64,425,378 |
Treasury Stock, Common, Shares | 487,626 | 0 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock, Common |
Balance at Sep. 30, 2020 | $ 237,828,000 | $ 244,357,000 | $ (6,529,000) | $ 0 | ||
Balance (in shares) at Sep. 30, 2020 | 0 | |||||
Comprehensive income (loss): | ||||||
Net (loss) income | (20,608,000) | (20,608,000) | ||||
Net transfer from (to) Emerson | 1,553,281,000 | 1,553,281,000 | ||||
Other comprehensive loss | 845,000 | 845,000 | ||||
Balance at Sep. 30, 2021 | 1,771,346,000 | 1,777,030,000 | (5,684,000) | $ 0 | ||
Balance (in shares) at Sep. 30, 2021 | 0 | |||||
Comprehensive income (loss): | ||||||
Net (loss) income | 53,146,000 | |||||
Net transfer from (to) Emerson | 5,971,995,000 | 5,971,995,000 | ||||
Recapitilization as a result of Transactions and Merger, Shares | $ 64,305,618 | |||||
Recapitilization as a result of Transactions and Merger | 6,000 | (7,735,802,000) | ||||
Other comprehensive loss | 1,096,000 | 1,096,000 | ||||
Stock-based compensation | $ 14,664,000 | |||||
Balance at Jun. 30, 2022 | $ 13,169,357,000 | $ 6,000 | 0 | (4,588,000) | $ 0 | |
Balance (in shares) at Jun. 30, 2022 | 64,425,378 | 64,425,378 | 0 | |||
(Accumulated deficit) retained earnings | $ 66,369,000 | 66,369,000 | ||||
Comprehensive income (loss): | ||||||
Additional paid-in capital | 13,107,570,000 | 13,107,570,000 | ||||
Net (loss) income | (107,760,000) | (107,760,000) | ||||
Other comprehensive loss | 7,024,000 | |||||
Exercise of stock options | 36,046,000 | 36,046,000 | ||||
Exercise of stock options (in shares) | 365,937 | |||||
Issuance of restricted stock units and net share settlement related to withholding taxes | (18,588,000) | (18,588,000) | ||||
Issuance of restricted stock units and net share settlement related to withholding taxes (in shares) | 161,553 | |||||
Repurchase of common stock | (100,000,000) | 15,850,000 | $ 84,150,000 | |||
Repurchase of common stock (in shares) | 487,626 | |||||
Stock-based compensation | 84,850,000 | 84,850,000 | ||||
Balance at Jun. 30, 2023 | $ 13,070,929,000 | $ 6,000 | 0 | $ 2,436,000 | $ (84,150,000) | |
Balance (in shares) at Jun. 30, 2023 | 64,952,868 | 64,952,868 | 487,626 | |||
(Accumulated deficit) retained earnings | $ (41,391,000) | $ (41,391,000) | ||||
Comprehensive income (loss): | ||||||
Additional paid-in capital | $ 13,194,028,000 | $ 13,194,028,000 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Cash flows from operating activities: | ||||
Net (loss) income | $ 53,146 | $ (107,760) | $ 41,944 | $ (20,608) |
Adjustments, Noncash Items, to Reconcile Net Income (Loss) to Cash Provided by (Used in) Operating Activities [Abstract] | ||||
Depreciation and amortization | 119,930 | 491,419 | 150,350 | 125,642 |
Reduction in the carrying amount of right-of-use assets | 5,915 | 13,869 | 7,627 | 5,515 |
Net foreign currency losses (gains) | 4,079 | 1,232 | ||
Net foreign currency losses (gains) | (306) | 4,100 | 5,525 | |
Net realized loss on settlement of foreign currency forward contracts | 0 | 26,176 | 0 | |
Stock-based compensation | 15,763 | 84,850 | 16,131 | 1,744 |
Deferred income taxes | (79,021) | (192,926) | (84,713) | (57,086) |
Provision for uncollectible receivables | 794 | 7,827 | 853 | (145) |
Other non-cash operating activities | 228 | (228) | (289) | 165 |
Changes in assets and liabilities: | ||||
Accounts receivable | 11,204 | (25,538) | 4,486 | (5,476) |
Contract assets | (78,122) | (21,658) | 82,898 | (17,868) |
Contract costs | (4,992) | (10,165) | 4,992 | 0 |
Lease liabilities | (5,558) | (13,655) | 5,979 | (4,673) |
Prepaid expenses, prepaid income taxes, and other assets | (8,776) | 7,625 | 6,965 | 1,553 |
Accounts payable, accrued expenses, income taxes payable and other liabilities | (23,674) | 18,315 | (25,908) | (1,740) |
Contract liabilities | 22,431 | 16,979 | 17,291 | 22,252 |
Net cash provided by operating activities | 28,962 | 299,209 | 19,776 | 54,800 |
Cash flows from investing activities: | ||||
Purchase of property, equipment and leasehold improvements | (2,263) | (6,577) | (4,870) | (6,185) |
Proceeds from sale of property and equipment | 91 | 0 | 91 | 0 |
Payments for business acquisitions, net of cash acquired | 5,571,931 | 72,498 | 5,572,996 | 1,588,802 |
Net payments for settlement of foreign currency forward contracts | 0 | 26,176 | 0 | |
Payments for equity method investments | (24) | (700) | (24) | 0 |
Payments for capitalized computer software development costs | (508) | (366) | 508 | 0 |
Purchase of other assets | (553) | (1,000) | (838) | (5) |
Net cash (used in) investing activities | (5,575,188) | (107,317) | (5,579,145) | (1,594,982) |
Cash flows from financing activities: | ||||
Issuance of shares of common stock | 5,702 | 36,736 | 5,702 | 0 |
Repurchases of common stock | 0 | (100,000) | 0 | |
Payment of tax withholding obligations related to restricted stock | (1,676) | (20,836) | (1,676) | 0 |
Deferred business acquisition payments | (1,200) | (1,363) | (1,200) | 0 |
Repayments of amounts borrowed under term loan | (6,000) | 0 | ||
Net transfers (to) from Parent Company | 5,971,995 | 19,933 | 5,987,190 | 1,551,537 |
Payments of debt issuance costs | 0 | 2,375 | 0 | |
Net cash (used in) provided by financing activities | 5,968,821 | (383,771) | 5,984,016 | 1,551,537 |
Effect of exchange rate changes on cash and cash equivalents | 1,417 | (16,637) | 1,419 | (141) |
(Decrease) increase in cash and cash equivalents | 424,012 | (208,516) | 426,066 | 11,214 |
Cash and cash equivalents, beginning of period | 25,713 | 449,725 | 23,659 | 14,499 |
Cash and cash equivalents, end of period | 449,725 | 241,209 | $ 449,725 | 25,713 |
Supplemental disclosure of cash flow information: | ||||
Income taxes paid, net | 84,997 | 79,819 | 9,600 | |
Interest paid | 237 | 13,615 | 693 | |
Supplemental disclosure of non-cash activities: | ||||
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses | (363) | (915) | 483 | |
Lease liabilities arising from obtaining right-of-use assets | $ 280 | $ 1,345 | $ 219 |
Operations
Operations | 12 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | 1. Organization and Basis of Presentation Aspen Technology, Inc., together with its subsidiaries (“AspenTech” or “Company”), is a leading industrial software company that develops solutions to address complex industrial environments where it is critical to optimize the asset design, operations and maintenance lifecycle. Through the Company’s unique combination of product capabilities and deep domain expertise and award-winning innovation, customers across diverse end markets in capital-intensive industries can improve their operational excellence while achieving sustainability goals. On October 10, 2021, Emerson Electric Co. (“Emerson” or “Parent Company”) entered into a definitive agreement (the “Transaction Agreement”) with AspenTech Corporation (f/k/a Aspen Technology, Inc.) (“Heritage AspenTech”) to contribute the Emerson industrial software business (the “Industrial Software Business”), along with $6.014 billion in cash, to create AspenTech (the “Transaction”). The Industrial Software Business included Open Systems International, Inc. (“OSI Inc.”) and the Geological Simulation Software business (“GSS”), which the Company has renamed as Subsurface Science & Engineering (“SSE”). The Transaction closed on May 16, 2022 (“Closing Date”). Emerson owns 55% of AspenTech on a fully diluted basis as of June 30, 2023. On December 23, 2022, the Company entered into a credit agreement with Emerson (the “Emerson Credit Agreement”), which will provide for an aggregate term loan commitment of $630.0 million. Refer to Note 19, “Related-Party Transactions”, for further discussion of the Emerson Credit Agreement. On July 27, 2022, the Company entered into a definitive agreement to acquire Mining Software Holdings Pty Ltd (“Micromine”) for AU$900.0 million in cash (approximately $623.0 million based on exchange rates when the acquisition was initially announced). Micromine is a global leader in design and operational management solutions for the metals and mining industry. The Company intended to finance the transaction primarily through debt financing under the Emerson Credit Agreement. On August 1, 2023, the Company announced the termination of the agreement to purchase Micromine due to uncertainty regarding the obtainment of certain regulatory approvals. The Company operates globally in 82 countries as of June 30, 2023. Basis of Presentation The accompanying consolidated and combined financial statements include the accounts of Aspen Technology, Inc. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. The Company has prepared the accompanying consolidated and combined financial statements pursuant to the rules and regulations of the U.S. Securities and Exchange Commission (the “SEC”) and in accordance with generally accepted accounting principles in the United States (“GAAP”). The Transaction was accounted for as a business combination in accordance with GAAP, with the Industrial Software Business treated as the “acquirer” and Heritage AspenTech treated as the “acquired” company for financial reporting purposes. On the Closing Date, the Company changed its fiscal year end from September 30 to June 30. The consolidated and combined financial statements for the year ended June 30, 2023 comprise the results of the Industrial Software Business and Heritage AspenTech (“fiscal 2023” or “fiscal year 2023”). The consolidated and combined financial statements for the nine months ended June 30, 2022 comprise the results of the Industrial Software Business and include the results of Heritage AspenTech from the Closing Date through June 30, 2022 (“fiscal 2022” or “fiscal year 2022”). The consolidated and combined financial statements for the year ended September 30, 2021 comprise the results of the Industrial Software Business only and do not include the results of Heritage AspenTech (“fiscal 2021” or “fiscal year 2021”). This Annual Report on Form 10-K also includes an unaudited consolidated and combined statements of operations and cash flows for the comparable period of July 1, 2021 to June 30, 2022; see Note 23, “Transition Period Comparative Data” for further information. The preparation of financial statements and related disclosures in conformity with GAAP requires us to make judgments, assumptions, and estimates that affect the amounts reported in the consolidated and combined financial statements and accompanying notes. The actual results that the Company experiences may differ materially from its estimates. Certain reclassifications have been made to the amounts in prior periods in order to conform to the current period’s presentation. The Company has evaluated subsequent events through the date that the financial statements were issued. Russia and Ukraine The Company maintains operations in Russia and licenses software and provides related services to customers in Russia and areas of Ukraine that are not under sanction. The Company had net sales of approximately $44.6 million and $9.9 million for fiscal 2023 and 2022, respectively, and total assets of approximately $39.7 million and $23.4 million as of June 30, 2023 and 2022, respectively, related to operations in Russia. The Company may be required to cease or suspend operations in Russia or, should the conflict or the effects of sanctions, export control measures and business restrictions worsen, the Company may voluntarily elect to do so. For example, the Company has recently terminated all engineering services in Russia, which may impact the ability to renew existing contracts and provide support to customers. While the Company continues to evaluate the impact, if any, of the various sanctions, export control measures and business restrictions imposed by the United States, other governments, and financial institutions on the ability to do business in Russia and areas of Ukraine that are not under sanction, maintain contracts with vendors and pay employees in Russia, and receive payment from customers in Russia and areas of Ukraine that are not under sanction, there is no assurance that the Company will be able to do so in the future. Any disruption to, or suspension of, the Company's business and operations in Russia would result in the loss of revenue from the business in Russia and would negatively impact growth. The Company may also suffer reputational harm as a result of continued operations in Russia, which may adversely impact sales and other businesses in other countries. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Revenue Recognition In accordance with ASC 606, Revenue from Contracts with Customers , the Company accounts for a customer contract when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable that the Company will collect substantially all of the consideration to which they are entitled to. The Company evaluates its contracts with customers to identify the promised goods or services and recognizes revenue for the identified performance obligations at the amount the Company expects to be entitled to in exchange for those goods or services. A performance obligation is a promise in a contract to transfer a distinct good or service to a customer. Revenue is recognized when, or as, performance obligations are satisfied, and control has transferred to the customer. The Company disaggregates its revenue into three categories: (i) license and solutions, (ii) maintenance and (iii) services and other. License and solutions License and solutions revenue is primarily derived from the sale of term software licenses. It also includes revenue derived from the sale of perpetual and term software licenses, along with professional services, sold by OSI Inc. See Note 3, “Revenue from Contracts with Customers” and Note 22, “Segment and Geographic Information,” for additional information about the Company's revenues disaggregated by region and type of performance obligation. Term software license revenue is recognized at a point in time when control transfers to the customer, which generally aligns with the first day of the contractual term. Prior to the third quarter of fiscal 2023, OSI Inc. software licenses were primarily sold with professional services and hardware to form an integrated solution for the customer. The professional services and hardware sold with the license significantly customized the underlying functionality and usability of the software. As such, neither the license, hardware, nor professional services were considered distinct within the context of the contract and were therefore considered a single performance obligation. Because the integrated solution had no alternative use to the Company and the Company held an enforceable right to payment, revenue was recognized over time (typically one to two years) using an input measure of progress based on the ratio of actual costs incurred to date to the total estimated cost to complete. For integrated solution contracts executed prior to the third quarter of fiscal 2023, revenue continues to be recognized over time until the implementation is complete. At the start of the third quarter of fiscal 2023, the Company completed a series of business transformation activities relating to OSI Inc. products and services in conjunction with its ongoing integration activities. As part of a change in the related go-to-market strategy, the Company has invested in tools and processes to simplify and streamline the implementation services to significantly reduce the complexity and interdependency associated with its software. In addition, the Company has identified and trained several third-party implementation service partners to operate autonomously and directly with OSI Inc. customers to implement its products. Accordingly, effective January 1, 2023 following the completion of these business transformation activities, for all new OSI Inc. contracts, the Company accounts for the OSI Inc. software license, hardware, maintenance, and professional services as separate and distinct performance obligations. Software license revenue is recognized at a point in time when control transfers to the customer, which generally aligns with the first day of the contractual term. Hardware revenue is recognized at the point in time when control transfers to the customer, which generally occurs upon delivery. The recognition of maintenance revenue at OSI Inc. is unchanged and continues to be recognized ratably over the maintenance term as discussed further below. Professional services revenue is recognized over time (typically one to two years) using the proportional performance method by comparing the costs incurred to the total estimated project costs as discussed further below. Maintenance Software maintenance revenue is recognized ratably over the maintenance term and includes technical support, software assurance patch management services and the right to receive any when-and-if available updates to the software. For term software licenses, maintenance is included with the license. For perpetual software licenses, maintenance is initially sold with the license and subsequently sold separately, both primarily on an annual basis. Software maintenance does not significantly modify or otherwise depend on other performance obligations within the contracts and therefore is accounted for as a separate performance obligation. For maintenance sold with an integrated solution by OSI Inc., the maintenance term begins once implementation is complete. Services and other Services and other revenue is derived from the sale of professional services and training. Professional service revenue, when not sold as part of an integrated solution by OSI Inc., is provided to customers on a time-and-materials (“T&M”) or fixed-price basis. The obligation to provide professional services is generally satisfied over time, with the customer simultaneously receiving and consuming the benefits as the Company satisfies its performance obligation. Professional service revenue is recognized by measuring progress toward the completion of the Company’s obligations. The Company recognizes professional services revenue for its T&M contracts based upon hours worked at contractually agreed-upon hourly rates. Fixed-price engagements recognize revenue using the proportional performance method by comparing the costs incurred to the total estimated project cost. The use of the proportional performance method depends on the Company’s ability to reliably estimate the costs to complete a project. Historical experience is used as a basis for future estimates to complete current projects. Additionally, the Company believes that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue. Training services provided to customers include on-site internet-based and customized training. These services are considered separate performance obligations as they do not significantly modify, integrate or otherwise depend on other performance obligations included in a contract. Revenue is recognized as the customer consumes the benefits of the services the Company provides. Contracts with Multiple Performance Obligations The Company allocates total contract consideration to each distinct performance obligation in an arrangement on a relative standalone selling price basis. The standalone selling price reflects the price that would be charged for a specific product or service if it was sold separately in similar circumstances and to similar customers. When two or more contracts are entered into at or near the same time with the same customer, the Company evaluates the facts and circumstances associated with the negotiation of those contracts. Where the contracts are negotiated as a package, the Company will account for them as a single arrangement and allocate the consideration for the combined contracts among the performance obligations accordingly. When available, the Company uses directly observable transactions to determine the standalone selling prices for performance obligations. If directly observable data is not available when software licenses are sold together with software maintenance in a bundled arrangement, the Company estimates a standalone selling price for these distinct performance obligations using relevant information, including the Company’s overall pricing objectives and strategies, historical pricing data, market consideration and other factors. Contract Modifications The Company sometimes enters into agreements to modify previously executed contracts, which constitute contract modifications. The Company assesses each of these contract modifications to determine (i) if the additional products and services are distinct from the products and services in the original arrangement; and (ii) if the amount of consideration expected for the added products and services reflects the standalone selling price of those products and services, as adjusted for contract-specific circumstances. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both requirements is considered a change to the original contract and is accounted for on either (i) a prospective basis as a termination of the existing contract and the creation of a new contract or (ii) a cumulative catch-up basis. Contract Assets and Contract Liabilities Payment terms and conditions vary by contract type. Terms generally include a requirement of payment annually over the term of the license arrangement. During the majority of each customer contract term, the amount invoiced is generally less than the amount of revenue recognized to date, primarily because the Company transfers control of the performance obligation related to the software license at the inception of the contract term, and the allocation of contract consideration to the license performance obligation is a significant portion of the total contract consideration. Therefore, the Company's contracts often result in the recording of a contract asset throughout the majority of the contract term. The Company records a contract asset when revenue recognized on a contract exceeds the billings. The Company records accounts receivable when it has the unconditional right to issue an invoice and receive payment regardless of whether revenue has been recognized. If revenue is not yet recognizable and the Company has a right to invoice or has received consideration, a contract liability is recorded to defer the revenue until recognition is appropriate. If revenue is recognizable in advance of the right to invoice, and the right to consideration is conditional on something other than the passage of time, a contract asset is recorded until invoicing occurs. The Company defers unearned maintenance and service revenue when it has the right to invoice, with recognition of the revenue recognized over the support period. Contract assets and contract liabilities are presented net at the contract level for each reporting period. Payment Terms The Company generally receives payment from a customer after the performance obligation related to the term license has been satisfied, and therefore, its contracts with terms greater than one year generally contain a significant financing component. The significant financing component is calculated utilizing an interest rate that derives the net present value of the performance obligations delivered on an upfront basis based on the allocation of consideration. The Company has instituted a customer portfolio approach in assigning interest rates. The rates are determined at contract inception and are based on the credit characteristics of the customers within each portfolio. Perpetual software licenses, sold along with professional services and hardware as an integrated solution, generally require payments from the customer aligned with progress milestones in the contract. Payment terms on invoiced amounts are typically net 30 days. The Company does not offer return rights for its products and services in the ordinary course of business, and contracts generally do not include customer acceptance clauses. (b) Management Estimates The preparation of the consolidated and combined financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that could affect the reported amounts of assets, liabilities, revenue and expenses for the periods presented. Actual results could differ from those estimates. (c) Concentration of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk are principally cash and cash equivalents, contract assets, and accounts receivable. The Company's cash is held in financial institutions and its cash equivalents are invested in money market funds that the Company believes to be of high credit quality. Concentration of credit risk with respect to contract assets and accounts receivables is limited to certain customers to which the Company makes substantial sales. To reduce risk, the Company assesses the financial strength of the Company's customers. The Company does not require collateral or other security in support of its contact assets and accounts receivables. At June 30, 2023 and 2022, the Company h ad no customer receivable balances that represented 10% or more of its total accounts receivable. (d) Cash and Cash Equivalents Cash and cash equivalents are reflected on the consolidated and combined balance sheets and consist of highly liquid investments with original maturities of three months or less. (e) Foreign Currency Translation The determination of the functional currency of subsidiaries is based on the subsidiaries’ financial and operational environment. Gains and losses from foreign currency translation related to entities whose functional currency is not the Company's reporting currency are credited or charged to accumulated other comprehensive income included in stockholders’ equity in the consolidated and combined balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated and combined statements of operations as incurred as a component of other income (expense), net. There were net foreign currency transaction and remeasurement losses of $4.1 million in fiscal 2023, gains of $0.3 million in fiscal 2022, and losses of $5.5 million in fiscal 2021. (f) Fair Value Measurement Accounting Standards Codification (ASC) 820, Fair Value Measurement , establishes a formal hierarchy and framework for measuring certain financial statement items at fair value, and requires disclosures about fair value measurements and the reliability of valuation inputs. Under ASC 820, measurement assumes the transaction to sell an asset or transfer a liability occurs in the principal or at least the most advantageous market for that asset or liability. Within the hierarchy, Level 1 instruments use observable market prices for the identical item in active markets and have the most reliable valuations. Level 2 instruments are valued through broker/dealer quotation or through market-observable inputs for similar items in active markets, including forward and spot prices, interest rates and volatilities. Level 3 instruments are valued using inputs not observable in an active market, such as Business-developed future cash flow estimates, and are considered the least reliable. (g) Business Combinations Identifying the acquirer in a business combination is based on the concept of ‘control’. Normally, where an acquisition is affected by an exchange of equity interests, the shareholders of the entity that issues securities (the legal parent entity) retain the majority holding in the combined group. The cost of an acquisition is measured as the aggregate of the consideration transferred, which is measured at acquisition date fair value. Any contingent consideration to be transferred by the acquirer will be recognized at fair value at the acquisition date. Assets and liabilities acquired in business combinations are accounted for using the acquisition method and recorded at their respective fair values. Goodwill represents the excess of consideration paid over the net assets acquired and is assigned to the reporting unit that acquires the business. The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement. During the measurement period, which may be up to one year from the acquisition date, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions, tax-related valuation allowances and pre-acquisition contingencies are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated and combined statement of operations. Acquisition-related costs are expensed as incurred and included in operating expenses. The majority of acquisition-related costs incurred by Heritage AspenTech incurred prior to or in connection with the closing of the Transaction are not included within the accompanying consolidated and combined statements of operations. (h) Intangible Assets Intangible Assets Acquired in a Business Combination ASC 805, Business Combinations , requires the identification of acquired intangible assets as part of a business combination. Acquired intangible assets generally consist of intellectual property such as technology and trademarks, customer relationships and backlog. The methods used to value such intangible assets require the use of estimates including forecast performance discount rates and customer attrition rates. Future results are impacted by the amortization periods adopted and changes to the estimated useful lives would result in different effects on the consolidated and combined statements of operations. Computer Software Developed for Internal Use Computer software developed for internal use is capitalized in accordance with ASC 350-40, Intangibles Goodwill and Other—Internal Use Software . The Company capitalizes costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion. In fiscal 2023, 2022 and 2021, there were no capitalized direct labor costs associated with the Company's development of software for internal use. Computer Software Developed for Sal e Computer software developed for sale is capitalized in accordance with ASC 985-20, Software - Costs of Software to Be Sold, Leased, or Marketed . Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bear to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years. Total computer software costs capitalized and total amortization expense charged to operations were not material for fiscal 2023, 2022 or 2021. Amortization Expense All of the Company’s identifiable finite-lived intangible assets are subject to amortization on a straight-line basis over their estimated useful lives. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Amortization expenses associated with developed technology and capitalized costs relating to computer software developed for sale are included in cost of revenue, while amortization expenses associated with customer relationships and backlog are included in the selling and marketing. Amortization expenses associated with computer software developed for internal use are included in each respective financial statement caption based on which business function the software is attributable to. Each period, the Company evaluated the estimated remaining useful lives of intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Intangible assets are removed from the accounts when fully amortized and no longer in use. (i) Property, Equipment and Leasehold Improvements The Company records investments in leasehold improvements and equipment at cost. Depreciation is recorded using the straight-line method over estimated service lives, which for equipment is three years to 10 years and for leasehold improvements, the remaining term of the lease or the life of the underlying asset, whichever is shorter. (j) Impairment Assessment Finite-lived Intangible Assets and Long-lived Assets The Company evaluates finite-lived intangible assets and long-lived assets for possible impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. This includes but is not limited to significant adverse changes in business climate, market conditions or other events that indicate an asset's carrying amount may not be recoverable. Recoverability of these assets is measured by comparing the carrying amount of each asset to the future undiscounted cash flows the asset is expected to generate. If the undiscounted cash flows used in the test for recoverability are less than the carrying amount of these assets, the carrying amount of such assets is reduced to fair value. Goodwill and Indefinite-lived Intangible Assets The Company evaluates and tests the recoverability of its: (i) goodwill, and (ii) indefinite-lived intangible assets (which consists entirely of the trademark associated with the Heritage AspenTech acquisition), for impairment at least annually on May 31 of each fiscal year or more often if and when circumstances indicate that goodwill or the indefinite-lived intangible asset may not be recoverable. The Company first assesses qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit or fair value of an indefinite-lived intangible asset is less than its carrying amount. If the Company determines based on this assessment that it is more likely than not that the fair value of a reporting unit or fair value of an indefinite-lived intangible asset is less than its carrying amount, the Company performs the impairment test. The first step requires the Company to determine the fair value of the reporting unit or fair value of an indefinite-lived intangible asset and compare it to the carrying amount of the reporting unit, including goodwill, or carrying amount of the indefinite-lived intangible asset. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit or indefinite-lived intangible asset exceeds its fair value, the goodwill of the reporting unit is impaired or the indefinite-lived intangible asset is impaired. Fair value of a reporting unit is determined using a combined weighted average of a market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, the Company would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on the Company's most recent long-term financial projections. The discount rate the Company would utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows. There we re no impairments of intangible assets, long-lived assets or goodwill d uring fiscal 2023, 2022 and 2021, respectively. (k) Leases The Company leases offices and equipment under operating lease arrangements. The Company determines whether an arrangement is, or contains, a lease at contract inception. An arrangement contains a lease if the Company has the right to direct the use of and obtain substantially all of the economic benefits of an identified asset. Right-of-use assets and lease liabilities are recognized at lease commencement based on the present value of lease payments over the lease term. Leases with an initial term of 12 months or less are not recognized on the balance sheet and are recorded as short-term lease expense. The discount rate used to calculate present value is the Company’s incremental borrowing rate based on the lease term and the economic environment of the applicable country or region. Certain leases have renewal options or options to terminate prior to lease expiration, which are included in the measurement of right-of-use assets and lease liabilities when it is reasonably certain they will be exercised. The Company has elected to account for lease and non-lease components as a single lease component for its office facilities. Some lease arrangements include payments that are adjusted periodically based on actual charges incurred for common area maintenance, utilities, taxes and insurance, or changes in an index or rate referenced in the lease. The fixed portion of these payments is included in the measurement of right-of-use assets and lease liabilities at lease commencement, while the variable portion is recorded as variable lease expense. The Company’s leases do not contain material residual value guarantees or restrictive covenants. (l) Derivatives and Hedging The Company utilizes derivative instruments to manage exposures to foreign currency exchange rate risks. The primary objective of holding derivatives is to reduce the volatility of cash flows associated with changes in foreign currency exchange rates. The Company's derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risks by limiting its counterparties to major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored. Management does not expect material losses as a result of defaults by counterparties. The Company accounts for derivative transactions in accordance with ASC Topic 815, Derivatives and Hedging , and recognizes derivatives instruments as either assets or liabilities in the consolidated and combined balance sheet and measures those instruments at fair value. The Company’s foreign currency forward contracts as described in Note 17 “Derivatives” do not qualify for hedge accounting. Accordingly, the changes in fair value of the derivative transactions are presented in earnings. (m) Comprehensive (Loss) Income Comprehensive (loss) income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive (loss) income and its components for fiscal 2023 , 2022 and 2021 are disclosed in the accompanying consolidated and combined statements of comprehensive (loss) income. (n) Accounting for Stock-Based Compensation Substantially all stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the requisite service period. (o) Income Taxes Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment. The Company does not provide deferred taxes on unremitted earnings of foreign subsidiaries since they intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to its consolidated and combined financial position or results of operations. The Company is continuously subject to examination by the Internal Revenue Service (the “IRS”), as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by the Company on its income tax returns. In accordance with provisions of ASC 740, an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. The Company accounts for interest and penalties related to uncertain tax positions as part of the provision for income taxes. (p) Loss Contingencies The Company accrues estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. The Company believes it has sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. (q) Research and Development Expense The Company charges research and development expenditures to expense as the costs are incurred. Research and development expenses consist primarily of personnel expenses related to the creation of new products, enhancements and engineering changes to existing products and costs of acquired technology prior to establishing technological feasibility. (r) Net Parent Investment The net parent investment balance included in the consolidated and combined balance sheets represents Emerson’s historical investment in the Industrial Software Business, the Industrial Software Business’s accumulated net earnings after income taxes, and the net effect of transactions with Emerson prior to the Transaction. (s) New Accounting Pronouncements Adopted in Fiscal 2023 and 2022 There were no new accounting pronouncements adopted in fiscal 2023. Effective October 1, 2021, the Company adopted the following accounting standard updates which had no impact or an immaterial impact on the Company’s consolidated and combined financial statements. These included: • Updates to ASC 805, Business Combination s, which clarify the accounting for contract assets and liabilities assumed in a business combination. In general, these updates will result in contract assets and liabilities being recognized at their historical amounts under ASC 606, rather than at fair value in accordance with the general requirements of ASC 805. • Updates to ASC 740, Income Taxes , which require the recognition of a franchise tax that is partially based on income as an incom |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue from Contracts with Customers Contract Assets and Contract Liabilities The contract assets are subject to credit risk and reviewed in accordance with ASC 326, Financial Instruments-Credit Losses . The Company monitors the credit quality of customer contract asset balances on an individual basis, at each reporting date, through credit characteristics, geographic location, and the industry in which they operate. The Company recognizes an impairment on contract assets if, subsequent to contract inception, it becomes probable payment is not collectible. An allowance for expected credit loss reflects losses expected over the remaining term of the contract asset and is determined based upon historical losses, customer-specific factors, and current economic conditions. The potential impact of credit losses on contract assets was immaterial as of June 30, 2023. The Company's contract assets and contract liabilities were as follows as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Contract assets 903,643 857,065 Contract liabilities (181,553) (164,408) $ 722,090 $ 692,657 The majority of the Company’s contract balances are related to arrangements where revenue is recognized at a point in time and payments are made according to a contractual billing schedule. The change in the net contract asset balance during fiscal 2023 was primarily due to greater revenue recognition as compared to billings. Revenue recognized during fiscal 2023 include d $113.8 million that was includ ed in the beginning contract liability balance. Contract Costs The Company pays commissions for new product sales and implementation services as well as for renewals of existing contracts. Commissions paid to obtain renewal contracts are not commensurate with the commissions paid for new product sales or implementation services, and therefore, a portion of the commissions paid for new contracts and implementation services relate to future renewals and are therefore deferred and amortized over an estimated period of benefit of four years to eight years. The Company accounts for new product sales commissions using a portfolio approach and allocates the cost of commissions in proportion to the allocation of transaction price of license and maintenance performance obligations, including assumed renewals. Commissions allocated to the license and license renewal components are expensed at the time the license revenue is recognized. Commissions allocated to maintenance are capitalized and amortized on a straight-line basis over a period of four years to eight years for new contracts, reflecting the Company's estimate of the expected period that they will benefit from those commissions. Amortization of capitalized contract costs is included in selling and marketing expenses in the Company's statement of operations. Transaction Price Allocated to Remaining Performance Obligations The following table includes the aggregate amount of the transaction price allocated as of June 30, 2023 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Year Ended June 30, 2024 2025 2026 2027 2028 Thereafter Total (Dollars in Thousands) License and solutions $ 173,439 $ 93,226 $ 29,501 $ 7,872 $ 762 $ 585 $ 305,385 Maintenance 303,462 205,930 153,905 110,455 64,004 29,818 867,574 Services and other 79,903 17,743 10,519 3,802 2,251 2,456 116,674 Total 556,804 316,899 193,925 122,129 67,017 32,859 1,289,633 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following as of June 30, 2023 and 2022: Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2023: (Dollars in Thousands) Gross carrying amount $ 1,903,599 $ 464,400 $ 3,082,541 $ 11,526 $ 5,462,066 Less: Accumulated amortization (341,964) (13,821) (437,673) (8,951) (802,409) Net carrying amount $ 1,561,635 $ 450,579 $ 2,644,868 $ 2,575 $ 4,659,657 Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2022: (Dollars in Thousands) Gross carrying amount $ 1,882,037 $ 464,400 $ 3,072,738 $ 10,149 $ 5,429,324 Less: Accumulated amortization (153,758) (9,379) (144,888) (8,518) (316,543) Net carrying amount $ 1,728,279 $ 455,021 $ 2,927,850 $ 1,631 $ 5,112,781 Of the total intangible assets net carrying amount of $4.7 billion at June 30, 2023, $430.0 million relates to the registered trademarks associated with the Heritage AspenTech acquisition that are not subject to amortization. The increase in the intangible asset gross carrying amount from June 30, 2022 was primarily due to the Inmation acquisition. See Note 4, “Acquisitions.” Total intangible asset amortization expense for fiscal 2023, 2022 and 2021 was $485.9 million, $116.7 million and $120.3 million, respectively. The significant increase in amortization expense for fiscal 2023 was due to a full year of amortization expense associated with the Heritage AspenTech acquisition. Based on intangible asset balances as of June 30, 2023, expected future amortization expense is as follows: Year Ended June 30, Amortization Expense (Dollars in Thousands) 2024 $ 486,701 2025 473,317 2026 382,641 2027 382,083 2028 370,722 Thereafter 2,134,193 Total $ 4,229,657 |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill during fiscal 2023 and 2022 were as follows: Carrying Value (Dollars in Thousands) Balance, September 30, 2021 $ 1,044,383 Acquisition of Heritage AspenTech 7,222,799 Foreign currency translation (373) Balance, June 30, 2022 8,266,809 Acquisition of Inmation 63,026 Purchase accounting adjustment from Heritage AspenTech acquisition 1,684 Foreign currency translation (708) Balance, June 30, 2023 $ 8,330,811 Reporting Units In accordance with ASC 350, Intangibles - Goodwill and Other , the Company determined its reporting units based upon whether discrete financial information is available and if management regularly reviews the operating results of the component. As of June 30, 2022, the Company was comprised of three operating and reportable segments and reporting units: OSI, Inc., SSE and Heritage AspenTech. During the three months ended September 30, 2022, the Company completed certain integration activities and changes to its organizational structure that triggered a change in the composition of its operating and reportable segments. As a result, beginning with the interim period ended September 30, 2022, the Company is now comprised of a single operating and reportable segment. See Note 22 “Segment and Geographic Information” for further information on the change to the Company’s operating and reportable segments. In conjunction with the change in operating and reportable segments, the Company also changed the composition of its reporting units. Beginning with the interim period ended September 30, 2022, the Company is now comprised of a single reporting unit. The Company performed goodwill impairment assessments on each reporting unit immediately before and after the change in organizational structure and concluded that there was no goodwill impairment. Goodwill Impairment Test The carrying value of the Company’s goodwill was $8.3 billion as of June 30, 2023. The Company performed its annual goodwill impairment test on May 31, 2023, which included a qualitative assessment and evaluation of the relevant events and circumstances that would materially impact the fair value of its reporting unit. Based on this qualitative assessment and evaluation, the Company does not believe it is more likely than not that the fair value of its reporting unit was less than its carrying amount. As such, the Company did not recognize any goodwill impairment losses in fiscal 2023. There were also no impairment losses recognized during fiscal 2022 and 2021. |
Restructuring and Related Activ
Restructuring and Related Activities | 12 Months Ended |
Jun. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure | Restructuring Costs Restructuring expenses were $0.0 million, $0.1 million, and $2.5 million respectively, for 2023, 2022, and 2021. SSE severance in 2021 related to a restructuring action to reduce 39 positions and transfer responsibilities to Emerson shared-service centers. OSI Inc. restructuring expense in 2021 related mostly to severance and resulted from a reduction in force, mainly in Asia. |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. The Company determines whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. The Company recognizes lease expense on a straight-line basis over the lease term. The Company's leases have remaining lease terms of less than one year to approximately 12 years, some of which include options to extend the leases for up to five years, and some of which include the option to terminate the leases upon advanced notice of 60 days or more. If the Company is reasonably certain they will exercise an option to extend or terminate the lease, the time period covered by the extension or termination option is included in the lease term. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in the lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The Company has lease agreements with lease and non-lease components, which are accounted for combined as one lease component. Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of total lease expense for fiscal 2023, 2022, and 2021 were as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Operating lease expense $ 17,417 $ 4,769 $ 6,365 Variable lease expense $ 813 $ 518 $ 797 Short term lease expense $ 125 $ 723 $ 889 The following table summarizes the balances of the Company’s operating lease right-of-use assets and operating lease liabilities as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Operating lease right-of-use assets $ 67,642 $ 78,286 Current operating lease liabilities $ 12,928 $ 7,191 Non-current operating lease liabilities $ 55,442 $ 71,933 The weighted-average remaining lease term for operating leases was nine years and the weighted-average discount rate was 3.0% as of June 30, 2023 and 2022, respectively. The following table represents the future maturities of the Company's operating lease liabilities as of June 30, 2023: Year Ending June 30, (Dollars in Thousands) 2024 $ 14,409 2025 10,472 2026 7,327 2027 6,578 2028 6,085 Thereafter 32,179 Total lease payments 77,050 Less: imputed interest (8,680) $ 68,370 |
Fair Value (Notes)
Fair Value (Notes) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value The Company determines fair value by utilizing a fair value hierarchy that ranks the quality and reliability of the information used in its determination. Fair values determined using “Level 1 inputs” utilize unadjusted quoted prices in active markets for identical assets or liabilities that the Company has the ability to access. Fair values determined using “Level 2 inputs” utilize data points that are observable, such as quoted prices, interest rates and yield curves for similar assets and liabilities. Cash equivalents are reported at fair value utilizing quoted market prices in identical markets, or “Level 1 Inputs.” The Company's cash equivalents consist of short-term money market instruments. Equity method investments are reported at fair value calculated in accordance with the market approach, utilizing market consensus pricing models with quoted prices that are directly or indirectly observable, or “Level 2 Inputs.” The following table summarizes financial assets and liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated and combined balance sheets as of June 30, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements at Reporting Date Using, Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) (Dollars in Thousands) June 30, 2023 Cash equivalents $ 132,918 $ — Equity method investments — 2,673 June 30, 2022 Cash equivalents $ 2,998 $ — Equity method investments — 1,761 Financial instruments not measured or recorded at fair value in the accompanying consolidated and combined financial statements consist of accounts receivable, accounts payable and accrued liabilities. The estimated fair value of these financial instruments approximates its carrying value. The estimated fair value of the borrowings under the Amended and Restated Credit Agreement (described below in Note 13, “Debt”) approximates its carrying value due to the floating interest rate. |
Accounts Receivable (Notes)
Accounts Receivable (Notes) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Financing Receivables [Text Block] | Accounts Receivable The Company's accounts receivable, net of the related allowance for doubtful accounts, were as follows as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Accounts receivable, gross $ 129,887 $ 112,216 Allowance for doubtful accounts (7,098) (1,189) Account receivable, net $ 122,789 $ 111,027 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property, Equipment and Leasehold Improvements Property, equipment and leasehold improvements in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Property, equipment and leasehold improvements, at cost: Computer equipment, furniture & fixtures $ 26,918 $ 27,465 Leasehold improvements 8,544 7,158 Construction in progress 1,658 493 Property, equipment and leasehold improvements, at cost 37,120 35,116 Accumulated depreciation (18,450) (17,968) Property, equipment and leasehold improvements, net $ 18,670 $ 17,148 Property and equipment are stated at cost. The Company records depreciation using the straight-line method over their estimated useful lives, as follows: Asset Classification Estimated Useful Life Computer equipment three years Furniture and fixtures 10 years Leasehold improvements Life of lease or asset, whichever is shorter Depreciation expense was $5.5 million, $3.2 million and $5.3 million for fiscal 2023, 2022 and 2021, respectively. |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other current liabilities in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Compensation-related $ 62,162 $ 62,813 Acquisition related 8,984 5,799 Professional fees 6,265 4,448 Accrued taxes 3,065 4,102 Royalties and outside commissions 654 2,773 Other 18,396 10,188 Total accrued expenses and other current liabilities $ 99,526 $ 90,123 Other non-current liabilities in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Uncertain tax positions $ 9,139 $ 3,593 Accrued pension 5,917 1,345 Asset retirement obligations 830 831 Other 3,354 9,791 Total other non-current liabilities $ 19,240 $ 15,560 |
Credit Agreement
Credit Agreement | 12 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Debt Bridge Facility On July 27, 2022, the Company entered into a $475.0 million senior unsecured bridge facility (the “Bridge Facility”) with JPMorgan Chase Bank, N.A. (“JPMorgan”), as Administrative Agent, to finance the Micromine acquisition. The Bridge Facility was entered into under the existing Amended and Restated Credit Agreement dated as of December 23, 2019, with JPMorgan (“Amended and Restated Credit Agreement”). The Company may elect that each incremental borrowing under the Bridge Facility bear interest at a rate per annum equal to (a) the Alternate Base Rate (“ABR”), plus the applicable margin or (b) the Adjusted Term Secured Overnight Financing Rate (“SOFR”), plus the applicable margin. As consideration for JPMorgan’s agreement to act as administrative agent for the Bridge Facility, the Company is required to pay a fee of $50,000 per annum, payable on the closing date of the loan and every anniversary thereof during the term of the loan. For the year ended June 30, 2023, the Company paid a total of $2.4 million in fees to JPMorgan to secure the Bridge Facility. On December 23, 2022, the Company terminated the Bridge Facility, and at the same time entered into the Emerson Credit Agreement, which will provide for an aggregate term loan commitment of $630.0 million. There were no amounts outstanding under the Bridge Facility at the time it was terminated. Refer to Note 19, “Related-Party Transactions”, for further discussion of the Emerson Credit Agreement. Amended and Restated Credit Agreement The Company also has an Amended and Restated Credit Agreement with JPMorgan that provides for a $200.0 million secured revolving credit facility and a $320.0 million secured term loan facility. On January 17, 2023, the Company paid off the outstanding balance of its existing JPMorgan term loan facility of $264.0 million, plus accrued interest. There were no amounts outstanding under the revolving credit facility at either June 30, 2023 and 2022. Any outstanding balances of the indebtedness under the revolving credit facility mature o n December 23, 2024. The Amended and Restated Credit Agreement contains customary affirmative and negative covenants, including restrictions on incurrence of additional debt, liens, fundamental changes, asset sales, restricted payments (including dividends) and transactions with affiliates. There are also financial covenants measured at the end of each fiscal quarter including a maximum leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 2.50 to 1.00. As of June 30, 2023, the Company was in compliance with these covenants. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Emerson Performance Shares and Restricted Stock Units Certain employees of the Industrial Software Business participate in Emerson stock-based compensation plans, and were granted performance share and restricted stock units. Compensation expense is recognized based on Emerson’s cost of the awards under ASC 718, Compensation- Stock Compensation . All awards granted under these stock-based compensation plans are based on Emerson’s common stock and are not indicative of the results that the Industrial Software Business would have experienced as a separate and independent business for the periods presented. Stock-based compensation expense reflected in the Company's financial statements relating to these awards was $1.8 million, $1.1 million, and $1.7 million for fiscal 2023, 2022 and 2021, respectively. Heritage AspenTech Equity Incentive Awards Pursuant to the terms of the Transaction Agreement, each outstanding option to purchase shares of Heritage AspenTech common stock, whether vested or unvested, that was unexercised as of immediately prior to the Closing Date was converted into an option to acquire shares of AspenTech. Each converted option is subject to the same terms and conditions as applied to the original option. In addition, each outstanding award of restricted stock units with respect to shares of Heritage AspenTech common stock that were unvested as of immediately prior to the Closing Date was converted into an award of restricted stock units with respect to shares of AspenTech. Each converted restricted stock unit is also subject to the same terms and conditions as applied to the original restricted stock unit. Immediately prior to the Closing Date, Heritage AspenTech had 1,326,860 stock options to purchase common stock (stock options) and 504,386 restricted stock units (RSUs) outstanding, which were converted to 1,165,494 AspenTech stock options and 453,397 AspenTech RSUs after the Closing Date. ASC 805 requires the Company to determine the fair value of the AspenTech share-based payment awards related to the replacement of the Heritage AspenTech share-based payment awards, and allocate the total fair value based on the services that are attributable to the pre- and post-combination service periods, respectively. The portion that is attributable to the pre-combination service period was considered part of the consideration transferred for Heritage AspenTech and included as part of the purchase price. The portion that is attributable to the post-combination service period is being recognized as stock-based compensation expense in the post-combination consolidated financial statements over the remaining requisite service period. The fair value of the replacement awards that are attributable to pre- and post-combination services was as follows: Pre-combination portion Post-combination portion (Dollars in Thousands) Restricted stock units $ 22,422 $ 61,898 Stock options 79,883 34,752 Total $ 102,305 $ 96,650 AspenTech Equity Incentive Awards Omnibus Plan On May 16, 2022, the stockholders of the Company approved the Aspen Technology, Inc. 2022 Omnibus Incentive Plan (the “Omnibus Plan”). The Omnibus Plan was previously approved by the Company’s board of directors, subject to stockholders’ approval. The Omnibus Plan permits the grant of restricted stock, restricted stock units, stock options (incentive stock options and nonqualified stock options), stock appreciation rights, performance awards, cash-based awards and other stock-based awards. A total of 4,564,508 shares of the Company's common stock is available for grants under the Omnibus Plan, subject to adjustment under certain circumstances described in the Omnibus Plan. Option awards have been granted with an exercise price equal to the market closing price of the Company's stock on the trading day prior to the grant date. Those options generally vest over four years and expire within seven years or 10 years of grant. RSUs generally vest over four years. Employee Stock Purchase Plan On May 16, 2022, the stockholders of AspenTech approved the Aspen Technology, Inc. 2022 Employee Stock Purchase Plan (the “ESPP”). The ESPP was previously approved by AspenTech’s board of directors, subject to stockholders’ approval. A total of 184,010 shares of AspenTech common stock is available for grants under the ESPP, subject to adjustment under certain circumstances described in the ESPP. The ESPP permits eligible employees to purchase a limited amount of common stock as defined in the ESPP through payroll deductions at a purchase price equal to 85% of the lower of (a) the fair market value of the common stock on the first trading day of each ESPP offering period and (b) the fair market value of the common stock on the last day of each six-month offering period. As of June 30, 2023, there were 154,174 shares of common stock available for issuance under the ESPP. Stock Compensation Accounting The Company's stock-based compensation is accounted for as awards of equity instruments. Its policy is to issue new shares upon the exercise of vested stock awards. The Company utilized the Black-Scholes option valuation model for estimating the fair value of options granted. The Black-Scholes option valuation model incorporates assumptions regarding expected stock price volatility, the expected life of the option, the risk-free interest rate, dividend yield and the market value of its common stock. The expected stock price volatility is determined based on its stock’s historic prices over a period commensurate with the expected life of the award. The expected life of an option represents the period for which options are expected to be outstanding as determined by historic option exercises and cancellations. The risk-free interest rate is based on the U.S. Treasury yield curve for notes with terms approximating the expected life of the options granted. The expected dividend yield is zero, based on the Company's history and expectation of not paying dividends on common shares. The Company recognized stock-based compensation expense on a straight-line basis, net of forfeitures as they occur, over the requisite service period for time-vested awards. The Company utilized the Black-Scholes option valuation model with the following weighted average assumptions: Year Ended June 30, 2023 2022 Risk-free interest rate 3.4 % 3.0 % Expected dividend yield None None Expected life (in years) 4.8 5.2 Expected volatility factor 38.2 % 36.1 % The stock-based compensation expense and its classification in the accompanying consolidated and combined statements of operations for fiscal 2023, 2022 and 2021 was as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Recorded as expenses: Cost of license and solutions $ 3,565 $ 1,351 $ — Cost of maintenance 1,893 344 — Cost of service and other 1,995 282 — Selling and marketing 16,202 2,850 — Research and development 21,790 3,507 — General and administrative 39,405 7,429 1,744 Total stock-based compensation $ 84,850 $ 15,763 $ 1,744 A summary of stock option and RSU activity under all equity plans in fiscal 2023 and 2022 is as follows: Stock Options Restricted Stock Units Shares Weighted Weighted Aggregate Shares Weighted Outstanding at September 30, 2021 — $ — — $ — — $ — Issuance of replacement awards 1,165,494 101.44 453,397 166.30 Issuance of non-replacement awards 76,056 193.55 124,226 193.70 Settled (RSUs) (87,930) 188.32 Exercised (62,250) 93.32 Cancelled / Forfeited (3,447) 138.78 (5,149) 184.62 Outstanding at June 30, 2022 1,175,853 $ 120.03 7.06 $ 75,597 484,544 $ 188.45 Granted 208,361 205.46 257,773 201.59 Settled (RSUs) (244,161) 193.72 Exercised (347,238) 96.12 Cancelled / Forfeited (31,150) 178.39 (41,788) 194.48 Outstanding at June 30, 2023 1,005,826 $ 144.17 6.44 $ 32,935 456,368 $ 192.55 Exercisable at June 30, 2023 643,086 $ 125.00 5.42 $ 29,872 Vested and expected to vest at June 30, 2023 983,744 $ 143.36 6.39 $ 32,719 390,284 $ 192.37 The weighted average estimated fair value of option awards granted during fiscal 2023 and 2022 was $79.02 and $71.90, respectively. During fiscal 2023 and 2022, the weighted average grant-date fair value of RSUs granted was $201.59 and $193.70, respectively. During fiscal 2023 and 2022, the total fair value of vested shares from RSU grants amounted to $50.5 million and $46.6 million, respectively. As of June 30, 2023, the total future unrecognized compensation cost related to stock options and RSUs was $23.4 million and $47.6 million, respectively, and are expected to be recorded over a weighted average period of 2.26 years and 2.54 years, respectively. During fiscal 2023 and 2022, the weighted average exercise price of stock options granted was $205.46 and $193.35, respectively. The total intrinsic value of options exercised during fiscal 2023 and 2022 was $42.8 million and $18.7 million, respectively. The Company received $45.0 million and $23.0 million in cash proceeds from issuances of shares of common stock during fiscal 2023 and 2022, respectively. The Company paid $18.0 million and $16.0 million for withholding taxes on vested RSUs during fiscal 2023 and 2022, respectively. At June 30, 2023, common stock reserved for future issuance under equity compensation plans was 4.0 million shares. |
Stock Repurchases
Stock Repurchases | 12 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
Equity | Stock Repurchases On May 5, 2023, the Company entered into an accelerated share repurchase program ( “ ASR Program ” ) with JPMorgan to repurchase an aggregate of $100.0 million of the Company's common stock. Pursuant to the terms of the ASR Program, the Company made an initial payment to JPMorgan and received an initial delivery of 487,626 shares of the Company's common stock, which represents approximately 80% of the total number of shares of the Company's common stock expected to be purchased under the ASR Program. Under the ASR Program, upon settlement, the Company will either receive additional shares of common stock from JPMorgan or be required to deliver additional shares of common stock or cash to JPMorgan. The final number of shares the Company will repurchase will be based on the average of the daily volume-weighted average prices of the Company's common stock during the term of the ASR Program. Cash settlement is not mandatory pursuant to the terms of the ASR Program, and the Company intends to settle the ASR Program with the issuance of shares. The $100.0 million payment made to JPMorgan was recognized as a reduction to stockholders’ equity, consisting of a $84.1 million increase in treasury stock, which represents the value of the initial 487,626 shares received upon initial settlement, and a $15.9 million decrease to additional-paid-in-capital. The amount recognized in additional-paid-in-capital represents the trade-date value of the stock held by JPMorgan pending final settlement of the ASR Program, which is an equity-classified forward purchase contract on the Company's own common stock. The ASR Program settled on August 7, 2023, resulting in an additional delivery of 107,045 shares of the Company's common stock. |
Net Income Per Share (Notes)
Net Income Per Share (Notes) | 9 Months Ended |
Jun. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic income per share is determined by dividing net income by the weighted average common shares outstanding during the period. Diluted income per share is determined by dividing net income by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted net income per share based on the treasury stock method. Prior to the Transaction, the Industrial Software Business did not have any shares of common stock outstanding. Accordingly, net loss per share for fiscal 2022 and 2021 has been calculated using weighted average shares outstanding (basic and diluted) assuming the number of shares of common stock issued to Emerson on the closing date of the Transaction were issued on October 1, 2020. The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding are as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars and Shares in Thousands, Except per Share Data) Net (loss) income $ (107,760) $ 53,146 $ (20,608) Weighted average shares outstanding 64,621 40,931 36,308 Dilutive impact from: Employee equity awards — 77 — Dilutive weighted average shares outstanding 64,621 41,008 36,308 Income per share Basic $ (1.67) $ 1.30 $ (0.57) Dilutive $ (1.67) $ 1.30 $ (0.57) For fiscal year 2023 and 2022 , certain employee equity awards were anti-dilutive based on the treasury stock method. The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of June 30, 2023 and 2022: Year Ended June 30, 2023 2022 (Shares in Thousands) Employee equity awards 1,312 65 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Fair Value | DerivativesIn connection with the agreement to purchase Micromine, the Company entered into a series of foreign currency forward contracts during fiscal 2023 to mitigate the impact of foreign currency exchange associated with the forecasted payment of the purchase price. On June 21, 2023, the Company terminated all outstanding foreign currency forward contracts. As a result, the Company recognized net realized losses of $26.2 million for the year ended June 30, 2023, included in other (expense) income, net on the consolidated and combined statements of operations related to these contracts. There are no outstanding forward currency forward contracts, or any other derivative contracts, as of June 30, 2023. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes (Loss) income before provision for income taxes consists of the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Domestic $ (201,620) $ 29,905 $ (86,550) Foreign 21,054 10,056 20,637 (Loss) income before provision for income taxes $ (180,566) $ 39,961 $ (65,913) The (benefit) for income taxes shown in the accompanying consolidated and combined statements of operations is composed of the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Federal— Current $ 112,181 $ 59,162 $ 2,702 Deferred (184,400) (70,046) (48,043) State— Current 6,333 4,385 1,004 Deferred (7,301) (10,431) (4,980) Foreign— Current 9,293 3,465 4,191 Deferred (8,912) 280 (179) $ (72,806) $ (13,185) $ (45,305) The (benefit) for income taxes differs from that based on the federal statutory rate due to the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Taxes at U.S. statutory rate (21%) $ (37,919) $ 8,392 $ (13,842) State and local taxes, net of federal tax benefit (1,762) (7,003) (3,141) Foreign derived intangible income (FDII) (36,436) (17,150) — Global Intangible Low-Taxed Income (GILTI) 3,027 446 — Foreign taxes and rate differences (2,943) 2,669 1,181 Uncertain tax positions 405 (2,556) (2,522) Stock-based compensation 4,828 152 — Return to Provision 4,070 498 — Tax credits (396) (3,385) (523) Change in valuation allowance (5,680) 5,287 (27,953) Other — (535) 1,495 (Benefit) for income taxes $ (72,806) $ (13,185) $ (45,305) The Company's tax benefit for the fiscal 2023 was favorably impacted primarily by the Foreign-Derived Intangible Income (“FDII”) deduction, the benefit from the deduction of state taxes, the difference in foreign tax rates, and the change in valuation allowance on certain jurisdictions, offset by Global Intangible Low-Taxed Income (“GILTI”), stock-based compensation, and return to provision adjustment. Assuming certain requirements are met, the FDII deduction is a benefit for U.S. companies that sell their products or services to customers for use outside the U.S. Net deferred tax liabilities consist of the following at June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Deferred tax assets: Federal, state and foreign credits $ 7,171 $ 10,162 Net operating loss carryforwards 10,720 11,557 Deferred revenue 15,962 11,783 Other reserves and accruals 22,346 23,429 Intangible assets 19,369 19,215 Capitalized research and development 46,693 2,479 Property, leasehold improvements and other basis differences 4,186 5,135 Other temporary differences 2,660 3,615 Total gross deferred tax assets 129,107 87,375 Valuation allowance (15,995) (24,110) Total net deferred tax assets 113,112 63,265 Deferred tax liabilities: Intangible assets (1,005,672) (1,099,532) Contract assets and costs (41,643) (91,298) Deferred revenue (3,315) (1,092) Property, leasehold improvements, and other basis differences (5,820) (7,634) Other temporary differences (3,935) (4,180) Total gross deferred tax liabilities (1,060,385) (1,203,736) Net deferred tax (liabilities) $ (947,273) $ (1,140,471) Reflected in the deferred tax assets above at June 30, 2023, the Company has foreign net operating loss carryforwards of $45.3 million, with unlimited carryforwards, federal and state research & development (R&D) credits of $6.7 million and foreign R&D credits of $0.5 million which begin to expire in 2027. The Company's valuation allowance for deferred tax assets was $16.0 million and $24.1 million as of June 30, 2023 and 2022, respectively. The significant items of the valuation allowance as of June 30, 2023 are attributable to a reserve against foreign deferred tax assets of $3.2 million, foreign net operating losses of $5.7 million and state R&D credits of $6.4 million. For fiscal 2023, the Company's income tax provision included amounts determined under the provisions of ASC 740 intended to satisfy additional income tax assessments, including interest and penalties, that could result from any tax return positions for which the likelihood of sustaining the position on audit does not meet a threshold of “ more likely than not. ” Tax liabilities were recorded as a component of their income taxes payable and other non-current liabilities. The ultimate amount of taxes due will not be known until examinations are completed and settled or the audit periods are closed by statutes. At June 30, 2023, the amount of unrecognized tax benefits, excluding interest and penalties is $7.6 million. Upon being recognized, $7.6 million would reduce the effective tax rate. A reconciliation of the reserve for uncertain tax positions, excluding interest and penalties, is as follows: Year Ended June 30, 2023 2022 (Dollars in Thousands) Beginning balance $ 6,716 $ 8,032 Additions for current year tax positions 1,011 396 Additions for prior year tax positions 1,657 1,761 Reductions for prior year tax positions — (2,250) Reductions for settlements with tax authorities — — Reductions for expirations of statute of limitations (1,823) (1,223) Uncertain tax positions, excluding interest and penalties, end of year $ 7,561 $ 6,716 The Company's policy is to recognize interest and penalties related to income tax matters as provision for (benefit from) income taxes. As of June 30, 2023, the Company had approximately $1.1 million of accrued interest and $0.5 million of penalties related to uncertain tax positions. The total amount of uncertain tax positions, including interest and penalties, is $9.1 million. The Company recorded a benefit for interest and penalties of approximately $(0.2) million during fiscal 2023 mainly due to expirations of statute of limitations. It is reasonably possible as of June 30, 2023 that the liability for unrecognized tax benefits for the uncertain tax position will decrease by approximately $1.5 million over the next twelve-month period. The Company is subject to income tax in many jurisdictions outside the United States. The Company is no longer under examination by the taxing authority regarding any U.S. federal income tax returns for fiscal years prior to 2020. Its operations in certain jurisdictions remain subject to examination for tax years 2014 to 2022, some of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to its consolidated and combined financial statements. |
Related Party Disclosures
Related Party Disclosures | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure | Related-Party Transactions The Company utilizes some aspects of Emerson ’ s centralized treasury function to manage the working capital and financing needs of its business operations. This function oversees a cash pooling arrangement which sweeps certain Company cash accounts into pooled Emerson cash accounts on a daily basis. Pooled cash and nontrade balances attributable to Emerson have been presented as receivables from related parties or due to related parties in the consolidated and combined financial statements of the Company. Before the closing of the Transaction, the Industrial Software Business was charged for costs directly attributable to the SSE business and OSI Inc. and was allocated a portion of Emerson’s costs, including general corporate costs, information technology costs, insurance and other benefit costs, and shared service and other costs. All of these costs are reflected in the Company’s consolidated and combined financial statements. Management believes the methodologies and assumptions used to allocate these costs are reasonable. At the closing of the Transaction, Emerson and the Company entered into a transition service agreement (“TSA”) for the provision of certain transitionary services from Emerson to AspenTech. Pursuant to the TSA, Emerson provides AspenTech and its subsidiaries with certain services, including information technology, human resources and other specified services, as well as access to certain of Emerson’s existing facilities. TSA related activities have been recorded as cost of goods sold or operating expenses from related parties and resulting balances have been presented as receivable from or due to related parties in the consolidated and combined financial statements presented. Receivables from related parties and due to related parties reported in the consolidated and combined balance sheets as of June 30, 2023 and 2022 include the following: June 30, 2023 2022 (Dollars in Thousands) Interest bearing receivables from related parties $ 61,948 $ 16,122 Trade receivables from related parties 427 819 Interest bearing payables to related parties 21,866 2,028 Trade payables to related parties 153 2,083 Allocations and charges from Emerson are as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Corporate costs $ — $ 3,212 $ 5,536 Information technology 2,949 1,684 1,908 Insurance and other benefits — 446 1,263 Shared services and other 5,571 10,294 9,300 Corporate costs, human resources, and insurance and other benefits are recorded in general and administrative expenses and information technology, facility charges, and shared services and other are allocated to cost of goods sold and operating expenses based on systematic methods. Before the closing of the Transaction, OSI Inc. and the SSE business engaged in various transactions to sell software and purchase goods in the ordinary course of business with affiliates of Emerson. At the closing, the Company and Emerson entered into a commercial agreement to allow Emerson to distribute software and services from AspenTech (the “Commercial Agreement”). Pursuant to the Commercial Agreement as amended from time to time in accordance with the Stockholders Agreement, AspenTech will grant Emerson the right to distribute, on a non-exclusive basis, certain (i) existing Heritage AspenTech products, (ii) existing Emerson products being transferred to AspenTech pursuant to the Transaction Agreement and (iii) future AspenTech products as mutually agreed upon, in each case, to end-users through Emerson acting as an agent, reseller or original equipment manufacturer. Commercial Agreement related activities have been recorded as revenues and expenses from related parties and resulting trade balances have been presented as trade receivables from related parties in the consolidated and combined financial statements presented. Revenue from Emerson are as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended Year Ended September 30, 2021 (Dollars in Thousands) Revenue from Emerson affiliates $ 30 $ — $ 2 Purchases from Emerson affiliates 445 2,337 241 Emerson Share Maintenance Rights Immediately following the closing of the Transaction, Emerson beneficially owned 55% of the fully diluted shares of AspenTech common stock. Emerson has the right to acquire additional equity securities of AspenTech pursuant to pre-agreed procedures and rights in order to maintain its ownership interest. No additional shares of common stock, or any other equity securities of AspenTech, were issued by the Company to Emerson subsequent to the closing of the Transaction through June 30, 2023. Business combination with related party The Inmation acquisition completed on August 29, 2022 was considered a related party transaction. Refer to Note 4, “Acquisitions”, for further discussion. Credit agreement with related party On December 23, 2022, the Company entered into the Emerson Credit Agreement with Emerson, which provides for an aggregate term loan commitment of $630.0 million. Under the terms of the Agreement, the Company will use the proceeds from borrowings under the Agreement to pay in part the cash consideration for funding the Micromine acquisition and pay the fees and expenses incurred in connection with the Emerson Credit Agreement. Principal outstanding under the Emerson Credit Agreement bears interest at a rate per annum equal to Term SOFR Rate (as such term is defined in Emerson Credit Agreement) plus an amount ranging from 1.25% to 1.75%. Any term loan made under the Emerson Credit Agreement is unsecured and matures on the fifth anniversary of the date the term loan is funded. The Company is permitted to prepay the term loan in whole or in part upon provision of notice in accordance with the Emerson Credit Agreement. Upon an event of default (as such term is defined in the Emerson Credit Agreement), the loan may become due and payable in full upon provision of notice in accordance with the Emerson Credit Agreement. In addition, the Emerson Credit Agreement includes a mandatory prepayment provision if at any time Emerson fails to beneficially own more than 40% of AspenTech common stock for a period of more than 30 consecutive days and Emerson provides us written notice requiring us to prepay the term loan. In such an event, the Company would have no less than either 30 days or 180 days from the date of such notice, depending upon the circumstances giving rise to the decrease in Emerson’s ownership interest, to prepay the term loan. The Emerson Credit Agreement contains affirmative and negative covenants customary for facilities of this type, including restrictions on incurrence of additional debt, liens, fundamental changes, asset sales, restricted payments and transactions with affiliates. The Agreement also contains financial covenants regarding maintenance as of the end of each fiscal quarter of a maximum leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 2.50 to 1.00. As of June 30, 2023, the Company was in compliance with all the loan covenants. There was no amount outstanding under the Emerson Credit Agreement at June 30, 2023. On August 18, 2023, the Emerson Credit Agreement was terminated in connection with the termination of the agreement to purchase Micromine. No amounts were outstanding under the Emerson Credit Agreement subsequent to June 30, 2023 through the termination date. |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company accrues estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. The Company believes it has sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. There were no known contingent liabilities (including guarantees, taxes and other claims) that management believes will be material in relation to the Company’s consolidated and combined financial statements, nor were there any material commitments outside the normal course of business. |
Retirement Plans
Retirement Plans | 9 Months Ended |
Jun. 30, 2022 | |
Retirement Benefits [Abstract] | |
Retirement and Profit Sharing Plans | Retirement Plans Most of the Company’s U.S. and non-U.S. employees participate in defined contribution plans, including 401(k), profit sharing, and other savings plans that provide retirement benefits. In the United States, the Company maintains a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code (IRC) covering all eligible employees, as defined. Under the plan, a participant may elect to defer receipt of a stated percentage of his or her compensation, subject to limitation under the IRC, which would otherwise be payable to the participant for any plan year. The Company may make discretionary contributions to this plan, including making matching contributions of 50%, up to a maximum of 6% of an employee’s pretax contribution. The Company made matching contributions of approximately $4.7 million, $1.9 million and $2.0 million in fiscal 2023, 2022 and 2021, respectively. Additionally, the Company participates in certain government mandated defined contribution plans throughout the world for which the Company complies with all funding requirements. The total expenses related to employees participating in these plans were $2.7 million, $2.0 million, and $5.1 million for fiscal 2023, 2022 and 2021, respectively. Certain non-U.S. employees participate in Company-specific or statutorily required defined benefit plans. In general, the Company’s policy is to fund these plans based on legal requirements, required benefit payments, and other factors. Defined benefit plan expense, benefits paid, and benefit plan contributions made by the Company were not material for all periods presented. The non-U.S. defined benefit liability was $8.7 million and $7.0 million as of June 30, 2023 and 2022, respectively, as the projected benefit obligation and fair value of plan assets were $13.6 million and $4.8 million as of June 30, 2023 and $11.6 million and $4.6 million as of June 30, 2022, while the deferred actuarial gain in accumulated other comprehensive income was $0.1 million as of June 30, 2023 and a gain of $0.8 million as of June 30, 2022. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. Prior to the Transaction, the Industrial Software Business had two operating and reportable segments: OSI Inc. and the GSS business (subsequently renamed Subsurface Science & Engineering Solutions, or “SSE”, after the Closing Date). The Transaction resulted in the creation of a third operating and reportable segment: Heritage AspenTech. During the three months ended September 30, 2022, the Company completed certain integration activities and changes to its organizational structure that triggered a change in the composition of its operating and reportable segments. As a result, beginning with the interim period ended September 30, 2022, the Company is now comprised of a single operating and reportable segment. Accordingly, the Company has restated its operating and reportable segment information for fiscal 2022 and 2021. The Company’s chief operating decision maker is its President and Chief Executive Officer. Geographic Information Summarized below is information about the Company’s geographic operations: Revenue by Destination Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Americas $ 486,506 $ 234,383 $ 182,314 Asia, Middle East and Africa 281,974 85,955 60,300 Europe 275,698 84,958 58,026 Total $ 1,044,178 $ 405,296 $ 300,640 Americas included revenue in the U.S. of $387.8 million, $173.5 million, and $123.2 million for fiscal 2023, 2022, and 2021, respectively. Property, Equipment, and Leasehold Improvements, Net June 30, 2023 2022 (Dollars in Thousands) Americas $ 15,793 $ 14,591 Asia, Middle East and Africa 1,923 1,154 Europe 954 1,403 Total $ 18,670 $ 17,148 Property, equipment, and leasehold improvements located in the U.S. were $13.4 million and $13.0 million, as of June 30, 2023 and 2022, respectively. |
Interim Reporting
Interim Reporting | 9 Months Ended |
Jun. 30, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Transition Period Comparative DataAs discussed in Note 1, this Annual Report on Form 10-K includes financial information for the year ended June 30, 2023, nine-month period ended June 30, 2022, and the year ended September 30, 2021. The Consolidated and Combined Statements of Operations and Cash Flows for the twelve-months ended June 30, 2023 and 2022, are summarized below. All data for the twelve-month period ended June 30, 2022, are derived from the Company’s unaudited consolidated and combined financial statements. Twelve-Month Period Ended June 30, (Dollars in Thousands, Except per Share Data) 2023 2022 (unaudited) Revenue $ 1,044,178 $ 482,311 Cost of revenue 373,589 199,916 Gross profit 670,589 282,395 Operating expenses 853,654 260,123 (Loss) income from operations (183,065) 22,272 Other (expense), net (29,418) (1,048) Interest income, net 31,917 3,222 (Loss) income before provision for income taxes (180,566) 24,446 (Benefit) for income taxes (72,806) (17,498) Net (loss) income $ (107,760) $ 41,944 Net (loss) income per common share: Basic $ (1.67) $ 1.05 Diluted $ (1.67) $ 1.05 Weighted average shares outstanding: Basic 64,621 39,768 Diluted 64,621 39,845 Twelve-Month Period Ended June 30, (Dollars in Thousands) 2023 2022 (unaudited) Cash flows from operating activities: Net (loss) income $ (107,760) $ 41,944 Adjustments to reconcile net (loss) income to net cash provided by operating activities: Depreciation and amortization 491,419 150,350 Reduction in the carrying amount of right-of-use assets 13,869 7,627 Net foreign currency losses (gains) 4,079 1,232 Net realized loss on settlement of foreign currency forward contracts 26,176 — Stock-based compensation 84,850 16,131 Deferred tax liability (192,926) (84,713) Provision for bad debts 7,827 853 Other non-cash operating activities (228) 289 Changes in assets and liabilities: Accounts receivable (25,538) (4,486) Contract assets (21,658) (82,898) Contract costs (10,165) (4,992) Lease liabilities (13,655) (5,979) Prepaid expenses, prepaid income taxes, and other assets 7,625 (6,965) Accounts payable, accrued expenses, income taxes payable and other liabilities 18,315 (25,908) Contract liabilities 16,979 17,291 Net cash provided by operating activities 299,209 19,776 Cash flows from investing activities: Purchase of property, equipment and leasehold improvements (6,577) (4,870) Proceeds from sale of property and equipment — 91 Payments for business acquisitions, net of cash acquired (72,498) (5,572,996) Net payments for settlement of foreign currency forward contracts (26,176) — Payments for equity method investments (700) (24) Payments for capitalized computer software costs (366) (508) Purchase of other assets (1,000) (838) Net cash (used in) investing activities (107,317) (5,579,145) Cash flows from financing activities: Issuance of shares of common stock 36,736 5,702 Repurchases of common stock (100,000) — Payment of tax withholding obligations related to restricted stock (20,836) (1,676) Deferred business acquisition payments (1,363) (1,200) Repayments of amounts borrowed under term loan (276,000) (6,000) Net transfers (to) from Parent Company (19,933) 5,987,190 Payments of debt issuance costs (2,375) — Net cash (used in) provided by financing activities (383,771) 5,984,016 Effect of exchange rate changes on cash and cash equivalents (16,637) 1,419 (Decrease) increase in cash and cash equivalents (208,516) 426,066 Cash and cash equivalents, beginning of year 449,725 23,659 Cash and cash equivalents, end of year $ 241,209 $ 449,725 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 28, 2023, the Company entered into the Plantweb Optics Analytics Assignment and License Agreement with Emerson for the purchase of Emerson’s Plantweb Optics Analytics software and the perpetual and royalty-free licensing of other Emerson intellectual property for $12.5 million, paid on July 28, 2023. On August 1, 2023, the Company announced that its Board of Directors approved a share repurchase authorization (the “Share Repurchase Authorization”), pursuant to which the Company may repurchase up to $300.0 million in the aggregate of the Company’s outstanding shares of common stock, by means of open market transactions, block transactions, privately negotiated purchase transactions or any other purchase techniques, including 10b5-1 trading plans. The Share Repurchase Authorization will commence after the conclusion of the Company’s ASR Program. On August 1, 2023, the Company announced the termination of the agreement to purchase Micromine. See Note 1, “Organization and Basis of Presentation” for further information. On August 7, 2023, the Company settled the ASR Program. See Note 15, “Stock Repurchase” for further information. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Cash and Cash Equivalents | Cash and Cash EquivalentsCash and cash equivalents are reflected on the consolidated and combined balance sheets and consist of highly liquid investments with original maturities of three months or less. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer [Policy Text Block] | Revenue from Contracts with Customers Contract Assets and Contract Liabilities The contract assets are subject to credit risk and reviewed in accordance with ASC 326, Financial Instruments-Credit Losses . The Company monitors the credit quality of customer contract asset balances on an individual basis, at each reporting date, through credit characteristics, geographic location, and the industry in which they operate. The Company recognizes an impairment on contract assets if, subsequent to contract inception, it becomes probable payment is not collectible. An allowance for expected credit loss reflects losses expected over the remaining term of the contract asset and is determined based upon historical losses, customer-specific factors, and current economic conditions. The potential impact of credit losses on contract assets was immaterial as of June 30, 2023. The Company's contract assets and contract liabilities were as follows as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Contract assets 903,643 857,065 Contract liabilities (181,553) (164,408) $ 722,090 $ 692,657 The majority of the Company’s contract balances are related to arrangements where revenue is recognized at a point in time and payments are made according to a contractual billing schedule. The change in the net contract asset balance during fiscal 2023 was primarily due to greater revenue recognition as compared to billings. Revenue recognized during fiscal 2023 include d $113.8 million that was includ ed in the beginning contract liability balance. Contract Costs The Company pays commissions for new product sales and implementation services as well as for renewals of existing contracts. Commissions paid to obtain renewal contracts are not commensurate with the commissions paid for new product sales or implementation services, and therefore, a portion of the commissions paid for new contracts and implementation services relate to future renewals and are therefore deferred and amortized over an estimated period of benefit of four years to eight years. The Company accounts for new product sales commissions using a portfolio approach and allocates the cost of commissions in proportion to the allocation of transaction price of license and maintenance performance obligations, including assumed renewals. Commissions allocated to the license and license renewal components are expensed at the time the license revenue is recognized. Commissions allocated to maintenance are capitalized and amortized on a straight-line basis over a period of four years to eight years for new contracts, reflecting the Company's estimate of the expected period that they will benefit from those commissions. Amortization of capitalized contract costs is included in selling and marketing expenses in the Company's statement of operations. Transaction Price Allocated to Remaining Performance Obligations The following table includes the aggregate amount of the transaction price allocated as of June 30, 2023 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Year Ended June 30, 2024 2025 2026 2027 2028 Thereafter Total (Dollars in Thousands) License and solutions $ 173,439 $ 93,226 $ 29,501 $ 7,872 $ 762 $ 585 $ 305,385 Maintenance 303,462 205,930 153,905 110,455 64,004 29,818 867,574 Services and other 79,903 17,743 10,519 3,802 2,251 2,456 116,674 Total 556,804 316,899 193,925 122,129 67,017 32,859 1,289,633 Disaggregated Revenue Information The table below reflects disaggregated revenues by business for fiscal 2023, 2022 and 2021: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Heritage AspenTech $ 760,802 $ 173,810 $ — SSE 120,092 88,272 127,388 OSI Inc. 163,284 143,214 173,252 Total $ 1,044,178 $ 405,296 $ 300,640 |
Intangible Assets (Policies)
Intangible Assets (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of the following as of June 30, 2023 and 2022: Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2023: (Dollars in Thousands) Gross carrying amount $ 1,903,599 $ 464,400 $ 3,082,541 $ 11,526 $ 5,462,066 Less: Accumulated amortization (341,964) (13,821) (437,673) (8,951) (802,409) Net carrying amount $ 1,561,635 $ 450,579 $ 2,644,868 $ 2,575 $ 4,659,657 Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2022: (Dollars in Thousands) Gross carrying amount $ 1,882,037 $ 464,400 $ 3,072,738 $ 10,149 $ 5,429,324 Less: Accumulated amortization (153,758) (9,379) (144,888) (8,518) (316,543) Net carrying amount $ 1,728,279 $ 455,021 $ 2,927,850 $ 1,631 $ 5,112,781 Of the total intangible assets net carrying amount of $4.7 billion at June 30, 2023, $430.0 million relates to the registered trademarks associated with the Heritage AspenTech acquisition that are not subject to amortization. The increase in the intangible asset gross carrying amount from June 30, 2022 was primarily due to the Inmation acquisition. See Note 4, “Acquisitions.” Total intangible asset amortization expense for fiscal 2023, 2022 and 2021 was $485.9 million, $116.7 million and $120.3 million, respectively. The significant increase in amortization expense for fiscal 2023 was due to a full year of amortization expense associated with the Heritage AspenTech acquisition. Based on intangible asset balances as of June 30, 2023, expected future amortization expense is as follows: Year Ended June 30, Amortization Expense (Dollars in Thousands) 2024 $ 486,701 2025 473,317 2026 382,641 2027 382,083 2028 370,722 Thereafter 2,134,193 Total $ 4,229,657 |
Goodwill (Policies)
Goodwill (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill during fiscal 2023 and 2022 were as follows: Carrying Value (Dollars in Thousands) Balance, September 30, 2021 $ 1,044,383 Acquisition of Heritage AspenTech 7,222,799 Foreign currency translation (373) Balance, June 30, 2022 8,266,809 Acquisition of Inmation 63,026 Purchase accounting adjustment from Heritage AspenTech acquisition 1,684 Foreign currency translation (708) Balance, June 30, 2023 $ 8,330,811 Reporting Units In accordance with ASC 350, Intangibles - Goodwill and Other , the Company determined its reporting units based upon whether discrete financial information is available and if management regularly reviews the operating results of the component. As of June 30, 2022, the Company was comprised of three operating and reportable segments and reporting units: OSI, Inc., SSE and Heritage AspenTech. During the three months ended September 30, 2022, the Company completed certain integration activities and changes to its organizational structure that triggered a change in the composition of its operating and reportable segments. As a result, beginning with the interim period ended September 30, 2022, the Company is now comprised of a single operating and reportable segment. See Note 22 “Segment and Geographic Information” for further information on the change to the Company’s operating and reportable segments. In conjunction with the change in operating and reportable segments, the Company also changed the composition of its reporting units. Beginning with the interim period ended September 30, 2022, the Company is now comprised of a single reporting unit. The Company performed goodwill impairment assessments on each reporting unit immediately before and after the change in organizational structure and concluded that there was no goodwill impairment. Goodwill Impairment Test The carrying value of the Company’s goodwill was $8.3 billion as of June 30, 2023. The Company performed its annual goodwill impairment test on May 31, 2023, which included a qualitative assessment and evaluation of the relevant events and circumstances that would materially impact the fair value of its reporting unit. Based on this qualitative assessment and evaluation, the Company does not believe it is more likely than not that the fair value of its reporting unit was less than its carrying amount. As such, the Company did not recognize any goodwill impairment losses in fiscal 2023. There were also no impairment losses recognized during fiscal 2022 and 2021. |
Leases (Policies)
Leases (Policies) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | Leases The Company has operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. The Company determines whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. The Company recognizes lease expense on a straight-line basis over the lease term. The Company's leases have remaining lease terms of less than one year to approximately 12 years, some of which include options to extend the leases for up to five years, and some of which include the option to terminate the leases upon advanced notice of 60 days or more. If the Company is reasonably certain they will exercise an option to extend or terminate the lease, the time period covered by the extension or termination option is included in the lease term. Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in the lease contracts is typically not readily determinable. As such, the Company utilizes the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as incentives received. The Company has lease agreements with lease and non-lease components, which are accounted for combined as one lease component. Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of total lease expense for fiscal 2023, 2022, and 2021 were as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Operating lease expense $ 17,417 $ 4,769 $ 6,365 Variable lease expense $ 813 $ 518 $ 797 Short term lease expense $ 125 $ 723 $ 889 The following table summarizes the balances of the Company’s operating lease right-of-use assets and operating lease liabilities as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Operating lease right-of-use assets $ 67,642 $ 78,286 Current operating lease liabilities $ 12,928 $ 7,191 Non-current operating lease liabilities $ 55,442 $ 71,933 The weighted-average remaining lease term for operating leases was nine years and the weighted-average discount rate was 3.0% as of June 30, 2023 and 2022, respectively. The following table represents the future maturities of the Company's operating lease liabilities as of June 30, 2023: Year Ending June 30, (Dollars in Thousands) 2024 $ 14,409 2025 10,472 2026 7,327 2027 6,578 2028 6,085 Thereafter 32,179 Total lease payments 77,050 Less: imputed interest (8,680) $ 68,370 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability [Table Text Block] | The Company's contract assets and contract liabilities were as follows as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Contract assets 903,643 857,065 Contract liabilities (181,553) (164,408) $ 722,090 $ 692,657 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block] | Transaction Price Allocated to Remaining Performance Obligations The following table includes the aggregate amount of the transaction price allocated as of June 30, 2023 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Year Ended June 30, 2024 2025 2026 2027 2028 Thereafter Total (Dollars in Thousands) License and solutions $ 173,439 $ 93,226 $ 29,501 $ 7,872 $ 762 $ 585 $ 305,385 Maintenance 303,462 205,930 153,905 110,455 64,004 29,818 867,574 Services and other 79,903 17,743 10,519 3,802 2,251 2,456 116,674 Total 556,804 316,899 193,925 122,129 67,017 32,859 1,289,633 |
Acquisitions (Tables)
Acquisitions (Tables) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 8 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Aug. 29, 2022 | May 16, 2022 | Oct. 10, 2021 | Oct. 01, 2020 | Jun. 30, 2022 | May 16, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | |
Business Acquisition [Line Items] | ||||||||||||
Accounts receivable | $ 43,163 | $ 24,782 | $ 43,163 | |||||||||
Accounts payable | 56,005 | 1,321 | 56,005 | |||||||||
Accrued expenses and other current liabilities | $ 11,885 | |||||||||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 11 years | |||||||||||
Amortization | $ 66,500 | |||||||||||
Acquisitions | Acquisitions Inmation Software GmbH On August 29, 2022, the Company completed the acquisition of inmation Software GmbH (“Inmation”) for total cash consideration of $87.2 million. The purchase price consisted of $78.9 million of cash paid at closing and an additional $8.3 million to be held back until August 2023 as security for certain representations, warranties, and obligations of the sellers. The holdback is recorded in accrued expenses and other current liabilities in the consolidated and combined balance sheets. The total cash acquired from Inmation was approximately $6.4 million resulting in a net cash payment of $72.5 million. The Company recognized goodwill of $63.0 million (none of which is expected to be tax deductible) and identifiable intangible assets of $31.5 million, primarily consisting of developed technology and customer relationships, with a useful l ife of approximately five years for developed technology and seven years for customer relationships. The fair values of assets acquired and liabilities assumed represent the preliminary fair value estimates, and are subject to subsequent adjustments as the Company obtains additional information during the measurement period and finalizes its fair value estimates. Inmation’s revenue and net loss included in the Company’s consolidated and combined income statement from the acquisition date to June 30, 2023 were $4.9 million and $5.0 million, respectively. Results included amortization of developed technology and customer relationships of $4.8 million. Prior to the closing date, Inmation was considered a related party to AspenTech as Emerson, through one of its subsidiaries, held an equity-method investment in Inmation. At the time of close, $17.6 million was paid to Emerson in exchange for all of its shares in Inmation, with another $2.0 million to be paid 12 months after the close. Heritage AspenTech On October 10, 2021, Emerson entered into the Transaction with Heritage AspenTech to contribute the Industrial Software Business comprised of OSI and SSE, along with $6.014 billion in cash, to create AspenTech. On the Closing Date, Emerson owned 55% of the outstanding common shares of AspenTech on a fully diluted basis, while the stockholders of Heritage AspenTech owned the remaining 45%. The acquisition-date fair value of the purchase consideration totaled $11.19 billion, which was determined as follows (in thousands): Fair value of Heritage AspenTech common stock (66,662,482 common shares) $ 11,085,971 Stock-based compensation awards attributable to pre-combination service 102,305 Total purchase consideration $ 11,188,276 The fair value of the shares of Heritage AspenTech common stock was determined based on the closing market price of Heritage AspenTech common stock on the Closing Date. The Company also replaced Heritage AspenTech equity awards with AspenTech equity awards. As a result, the portion of the aggregate fair-value of the replacement awards attributable to the pre-combination service period was included in the computation of the fair value of consideration transferred. See Note 14, “Stock-Based Compensation”. Of the total cash contribution of $6.014 billion made by Emerson to the Industrial Software Business, $5.846 billion was paid in cash to the holders of Heritage AspenTech common stock at $87.69 per share (on a fully diluted basis), with $168.3 million of cash remaining on AspenTech’s consolidated and combined balance sheet as of the Closing Date which is not included in the allocation of purchase consideration above. Additionally, the holders of Heritage AspenTech common stock received 27,998,104 shares of AspenTech common stock, with an aggregate fair value of $5.240 billion. The following table summarizes the estimated fair value of the assets acquired and liabilities assumed on the Closing Date. Amount (Dollars in Thousands) Cash and cash equivalents $ 273,728 Accounts receivable 43,163 Current and non-current contract assets 730,548 Intangible assets 4,390,667 Other net assets acquired 66,753 Total asset acquired (excluding Goodwill) 5,504,859 Accounts payable, accrued expenses, and other current liabilities 56,005 Current and non-current deferred revenue 62,319 Current and non-current borrowings under credit agreement 282,000 Deferred income taxes 1,078,463 Other net liabilities assumed 62,279 Total liabilities assumed 1,541,066 Net identifiable assets acquired 3,963,793 Goodwill 7,224,483 Net assets acquired $ 11,188,276 Of the $4.39 billion of acquired intangible assets, $430.0 million was assigned to registered trademarks that are not subject to amortization and were recognized at fair value on the acquisition date. The remaining $3.96 billion of acquired intangible assets are being amortized straight-line over their estimated useful lives. The definite-lived intangible assets include acquired developed technology of $1.35 billion (10-year useful life), customer relationships of $2.3 billion (15-year useful life), and backlog of $310.0 million (three-year useful life). The $7.2 billion of goodwill is attributable primarily to expected synergies and the assembled workforce. $34.0 million of the goodwill is expected to be deductible for income tax purposes. During the year ended June 30, 2023, the Company recorded purchase price allocation adjustments that increased goodwill by $1.7 million. Heritage AspenTech’s revenue and earnings included in the Company’s consolidated and combined statement of operations from the acquisition date to the period ending June 30, 2022 are $173.8 million and $71.8 million, respectively. Pro forma Financial Information (Unaudited) The following unaudited pro forma consolidated financial results of operations are presented as if the Heritage AspenTech acquisition occurred on October 1, 2020. The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time. Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Total revenue $ 819,098 $ 1,031,065 Net income (loss) $ 18,193 $ (55,410) OSI Inc. On October 1, 2020, the Industrial Software Business completed the acquisition of OSI Inc. for approximately $1.589 billion net of cash acquired. The Industrial Software Business recognized goodwill of $967.4 million (none of which is expected to be tax deductible) and identifiable intangible assets of $783.4 million, primarily technology, customer relationships, and trademarks with a weighted-average useful life of approximately 11 years. The purchase price of the OSI Inc. acquisition was allocated to assets and liabilities as follows: (Dollars in Thousands) Accounts receivable $ 24,782 Current contract assets 41,454 Other current assets 3,576 Property, equipment and leasehold improvements 7,153 Intangible assets 783,400 Operating lease right-of-use assets and other 28,182 Total assets acquired (excluding Goodwill) 888,547 Accounts payable 1,321 Current contract liabilities 24,041 Accrued expenses and other current liabilities 11,885 Operating lease liability 28,388 Deferred income taxes 192,592 Non-current contract liabilities 7,701 Other non-current liabilities 1,200 Total liabilities assumed 267,128 Net identifiable assets acquired 621,419 Goodwill 967,383 Net assets acquired $ 1,588,802 OSI Inc.’s revenue and earnings included in the Company’s consolidated and combined income statement from the acquisition date to the first reporting period ending on September 30, 2021 were $173.3 million and a net loss of $46.4 million, respectively. The results included first-year pretax acquisition accounting charges related to backlog and deferred revenue of $30.4 million and $13.7 million, respectively. Results also included amortization of technology, customer relationships, and trademarks of $66.5 million. | |||||||||||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 34,000 | $ 34,000 | ||||||||||
Business Acquisition, Percentage of Voting Interests Acquired | 45% | 45% | ||||||||||
Business Acquisition, Pro Forma Net Income (Loss) | $ 18,193 | (55,410) | ||||||||||
Business Acquisition, Pro Forma Revenue | 819,098 | 1,031,065 | ||||||||||
Business Acquisitions, Purchase Price Allocation, Subsequent Years, Remaining Adjustments | $ 1,700 | $ 1,700 | ||||||||||
Business Acquisition, Share Price | $ 87.69 | $ 87.69 | ||||||||||
Business Combination, Consideration Transferred | $ 87,200 | $ 6,014,000 | ||||||||||
Business Combination, Consideration Transferred, Cash Paid | 78,900 | |||||||||||
Business Combination, Consideration Transferred, Cash Acquired | 6,400 | |||||||||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | $ 102,305 | |||||||||||
Business Combination, Consideration Transferred, Exchange of Shares | 17,600 | |||||||||||
Business Combination, Consideration Transferred, Exchange of Shares, After | 2,000 | |||||||||||
Business Combination, Consideration Transferred, Net Cash Paid | 72,500 | |||||||||||
Business Combination, Consideration Transferred, Hold Back | 8,300 | |||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | 11,188,276 | $ 11,188,276 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Long-term Debt | 282,000 | 282,000 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 31,500 | 4,390,667 | 4,390,667 | |||||||||
Current contract liabilities | $ 24,041 | |||||||||||
Cash Acquired from Acquisition | 5,846,000 | |||||||||||
Cash and cash equivalents | 273,728 | 273,728 | ||||||||||
Current contract assets | 41,454 | |||||||||||
Deferred income taxes | 1,078,463 | 192,592 | 1,078,463 | |||||||||
Deferred Revenue | 62,319 | 62,319 | ||||||||||
Finite-Lived Intangible Assets, Accumulated Amortization | $ (316,543) | (316,543) | (802,409) | (802,409) | $ (316,543) | |||||||
Goodwill | $ 63,000 | 7,224,483 | 967,383 | 8,266,809 | 7,224,483 | 8,266,809 | 8,330,811 | 8,330,811 | 8,266,809 | 1,044,383 | ||
Intangible assets | 783,400 | |||||||||||
Intangible assets, net | 3,960,000 | 5,112,781 | 3,960,000 | 5,112,781 | 4,659,657 | 4,659,657 | 5,112,781 | $ 30,400 | ||||
Non-current contract liabilities | 7,701 | |||||||||||
Net identifiable assets acquired | 3,963,793 | 621,419 | 3,963,793 | |||||||||
Net (loss) income | 66,369 | (13,223) | 53,146 | 5,000 | (107,760) | 41,944 | (20,608) | |||||
Operating lease right-of-use assets and other | 66,753 | 28,182 | 66,753 | |||||||||
Other non-current liabilities | 62,279 | 1,200 | 62,279 | |||||||||
Other current assets | 730,548 | 3,576 | 730,548 | |||||||||
Other Payments to Acquire Businesses | $ 168,300 | |||||||||||
Operating lease liability | 28,388 | 68,370 | 68,370 | |||||||||
Property, equipment and leasehold improvements | $ 7,153 | |||||||||||
Schedule of recognized identified assets acquired and liabilities assumed | The following table summarizes the estimated fair value of the assets acquired and liabilities assumed on the Closing Date. Amount (Dollars in Thousands) Cash and cash equivalents $ 273,728 Accounts receivable 43,163 Current and non-current contract assets 730,548 Intangible assets 4,390,667 Other net assets acquired 66,753 Total asset acquired (excluding Goodwill) 5,504,859 Accounts payable, accrued expenses, and other current liabilities 56,005 Current and non-current deferred revenue 62,319 Current and non-current borrowings under credit agreement 282,000 Deferred income taxes 1,078,463 Other net liabilities assumed 62,279 Total liabilities assumed 1,541,066 Net identifiable assets acquired 3,963,793 Goodwill 7,224,483 Net assets acquired $ 11,188,276 | The purchase price of the OSI Inc. acquisition was allocated to assets and liabilities as follows: (Dollars in Thousands) Accounts receivable $ 24,782 Current contract assets 41,454 Other current assets 3,576 Property, equipment and leasehold improvements 7,153 Intangible assets 783,400 Operating lease right-of-use assets and other 28,182 Total assets acquired (excluding Goodwill) 888,547 Accounts payable 1,321 Current contract liabilities 24,041 Accrued expenses and other current liabilities 11,885 Operating lease liability 28,388 Deferred income taxes 192,592 Non-current contract liabilities 7,701 Other non-current liabilities 1,200 Total liabilities assumed 267,128 Net identifiable assets acquired 621,419 Goodwill 967,383 Net assets acquired $ 1,588,802 | ||||||||||
Total revenue | $ 173,800 | $ 405,296 | $ 4,900 | $ 1,044,178 | $ 482,311 | $ 300,640 | ||||||
Total assets acquired (excluding Goodwill) | $ 5,504,859 | $ 888,547 | 5,504,859 | |||||||||
Total liabilities assumed | $ 1,541,066 | $ 267,128 | $ 1,541,066 | |||||||||
Business Acquisition, Pro Forma Information | The following unaudited pro forma consolidated financial results of operations are presented as if the Heritage AspenTech acquisition occurred on October 1, 2020. The unaudited pro forma information is presented for informational purposes only and is not indicative of the results of operations that would have been achieved had the acquisition occurred as of that time. Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Total revenue $ 819,098 $ 1,031,065 Net income (loss) $ 18,193 $ (55,410) | |||||||||||
Schedule of Business Acquisitions, by Acquisition | The acquisition-date fair value of the purchase consideration totaled $11.19 billion, which was determined as follows (in thousands): Fair value of Heritage AspenTech common stock (66,662,482 common shares) $ 11,085,971 Stock-based compensation awards attributable to pre-combination service 102,305 Total purchase consideration $ 11,188,276 | |||||||||||
Minimum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangible asset, useful life | 5 years | |||||||||||
Maximum | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Finite-lived intangible asset, useful life | 7 years |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | Year Ended June 30, Amortization Expense (Dollars in Thousands) 2024 $ 486,701 2025 473,317 2026 382,641 2027 382,083 2028 370,722 Thereafter 2,134,193 Total $ 4,229,657 |
Intangible assets | Intangible assets consist of the following as of June 30, 2023 and 2022: Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2023: (Dollars in Thousands) Gross carrying amount $ 1,903,599 $ 464,400 $ 3,082,541 $ 11,526 $ 5,462,066 Less: Accumulated amortization (341,964) (13,821) (437,673) (8,951) (802,409) Net carrying amount $ 1,561,635 $ 450,579 $ 2,644,868 $ 2,575 $ 4,659,657 Developed Technology Trademarks Customer Relationships and Backlog Capitalized Software and Other Total June 30, 2022: (Dollars in Thousands) Gross carrying amount $ 1,882,037 $ 464,400 $ 3,072,738 $ 10,149 $ 5,429,324 Less: Accumulated amortization (153,758) (9,379) (144,888) (8,518) (316,543) Net carrying amount $ 1,728,279 $ 455,021 $ 2,927,850 $ 1,631 $ 5,112,781 Of the total intangible assets net carrying amount of $4.7 billion at June 30, 2023, $430.0 million relates to the registered trademarks associated with the Heritage AspenTech acquisition that are not subject to amortization. |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill by reporting unit | The changes in the carrying amount of goodwill during fiscal 2023 and 2022 were as follows: Carrying Value (Dollars in Thousands) Balance, September 30, 2021 $ 1,044,383 Acquisition of Heritage AspenTech 7,222,799 Foreign currency translation (373) Balance, June 30, 2022 8,266,809 Acquisition of Inmation 63,026 Purchase accounting adjustment from Heritage AspenTech acquisition 1,684 Foreign currency translation (708) Balance, June 30, 2023 $ 8,330,811 Reporting Units In accordance with ASC 350, Intangibles - Goodwill and Other , the Company determined its reporting units based upon whether discrete financial information is available and if management regularly reviews the operating results of the component. As of June 30, 2022, the Company was comprised of three operating and reportable segments and reporting units: OSI, Inc., SSE and Heritage AspenTech. During the three months ended September 30, 2022, the Company completed certain integration activities and changes to its organizational structure that triggered a change in the composition of its operating and reportable segments. As a result, beginning with the interim period ended September 30, 2022, the Company is now comprised of a single operating and reportable segment. See Note 22 “Segment and Geographic Information” for further information on the change to the Company’s operating and reportable segments. In conjunction with the change in operating and reportable segments, the Company also changed the composition of its reporting units. Beginning with the interim period ended September 30, 2022, the Company is now comprised of a single reporting unit. The Company performed goodwill impairment assessments on each reporting unit immediately before and after the change in organizational structure and concluded that there was no goodwill impairment. Goodwill Impairment Test |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Lease, Cost [Table Text Block] | Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of total lease expense for fiscal 2023, 2022, and 2021 were as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Operating lease expense $ 17,417 $ 4,769 $ 6,365 Variable lease expense $ 813 $ 518 $ 797 Short term lease expense $ 125 $ 723 $ 889 The following table summarizes the balances of the Company’s operating lease right-of-use assets and operating lease liabilities as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Operating lease right-of-use assets $ 67,642 $ 78,286 Current operating lease liabilities $ 12,928 $ 7,191 Non-current operating lease liabilities $ 55,442 $ 71,933 The weighted-average remaining lease term for operating leases was nine years and the weighted-average discount rate was 3.0% as of June 30, 2023 and 2022, respectively. |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | The following table represents the future maturities of the Company's operating lease liabilities as of June 30, 2023: Year Ending June 30, (Dollars in Thousands) 2024 $ 14,409 2025 10,472 2026 7,327 2027 6,578 2028 6,085 Thereafter 32,179 Total lease payments 77,050 Less: imputed interest (8,680) $ 68,370 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value Option, Disclosures [Table Text Block] | The following table summarizes financial assets and liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated and combined balance sheets as of June 30, 2023 and 2022, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value: Fair Value Measurements at Reporting Date Using, Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs) Significant Other Observable Inputs (Level 2 Inputs) (Dollars in Thousands) June 30, 2023 Cash equivalents $ 132,918 $ — Equity method investments — 2,673 June 30, 2022 Cash equivalents $ 2,998 $ — Equity method investments — 1,761 |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | accounts receivable, net of the related allowance for doubtful accounts, were as follows as of June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Accounts receivable, gross $ 129,887 $ 112,216 Allowance for doubtful accounts (7,098) (1,189) Account receivable, net $ 122,789 $ 111,027 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property, equipment and leasehold improvements | Property, equipment and leasehold improvements in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Property, equipment and leasehold improvements, at cost: Computer equipment, furniture & fixtures $ 26,918 $ 27,465 Leasehold improvements 8,544 7,158 Construction in progress 1,658 493 Property, equipment and leasehold improvements, at cost 37,120 35,116 Accumulated depreciation (18,450) (17,968) Property, equipment and leasehold improvements, net $ 18,670 $ 17,148 Property and equipment are stated at cost. The Company records depreciation using the straight-line method over their estimated useful lives, as follows: Asset Classification Estimated Useful Life Computer equipment three years Furniture and fixtures 10 years Leasehold improvements Life of lease or asset, whichever is shorter |
Accrued Expenses and Other Li_2
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Compensation-related $ 62,162 $ 62,813 Acquisition related 8,984 5,799 Professional fees 6,265 4,448 Accrued taxes 3,065 4,102 Royalties and outside commissions 654 2,773 Other 18,396 10,188 Total accrued expenses and other current liabilities $ 99,526 $ 90,123 |
Other non-current liabilities | Other non-current liabilities in the accompanying consolidated and combined balance sheets consist of the following: June 30, 2023 2022 (Dollars in Thousands) Uncertain tax positions $ 9,139 $ 3,593 Accrued pension 5,917 1,345 Asset retirement obligations 830 831 Other 3,354 9,791 Total other non-current liabilities $ 19,240 $ 15,560 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 9 Months Ended | 12 Months Ended | |
May 16, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |||
Weighted average assumptions | Year Ended June 30, 2023 2022 Risk-free interest rate 3.4 % 3.0 % Expected dividend yield None None Expected life (in years) 4.8 5.2 Expected volatility factor 38.2 % 36.1 % | ||
Stock-based compensation expense | The stock-based compensation expense and its classification in the accompanying consolidated and combined statements of operations for fiscal 2023, 2022 and 2021 was as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Recorded as expenses: Cost of license and solutions $ 3,565 $ 1,351 $ — Cost of maintenance 1,893 344 — Cost of service and other 1,995 282 — Selling and marketing 16,202 2,850 — Research and development 21,790 3,507 — General and administrative 39,405 7,429 1,744 Total stock-based compensation $ 84,850 $ 15,763 $ 1,744 | ||
Stock options and RSU activity | A summary of stock option and RSU activity under all equity plans in fiscal 2023 and 2022 is as follows: Stock Options Restricted Stock Units Shares Weighted Weighted Aggregate Shares Weighted Outstanding at September 30, 2021 — $ — — $ — — $ — Issuance of replacement awards 1,165,494 101.44 453,397 166.30 Issuance of non-replacement awards 76,056 193.55 124,226 193.70 Settled (RSUs) (87,930) 188.32 Exercised (62,250) 93.32 Cancelled / Forfeited (3,447) 138.78 (5,149) 184.62 Outstanding at June 30, 2022 1,175,853 $ 120.03 7.06 $ 75,597 484,544 $ 188.45 Granted 208,361 205.46 257,773 201.59 Settled (RSUs) (244,161) 193.72 Exercised (347,238) 96.12 Cancelled / Forfeited (31,150) 178.39 (41,788) 194.48 Outstanding at June 30, 2023 1,005,826 $ 144.17 6.44 $ 32,935 456,368 $ 192.55 Exercisable at June 30, 2023 643,086 $ 125.00 5.42 $ 29,872 Vested and expected to vest at June 30, 2023 983,744 $ 143.36 6.39 $ 32,719 390,284 $ 192.37 | ||
Disclosure of Share-Based Compensation Arrangements by Share-Based Payment Award | The fair value of the replacement awards that are attributable to pre- and post-combination services was as follows: Pre-combination portion Post-combination portion (Dollars in Thousands) Restricted stock units $ 22,422 $ 61,898 Stock options 79,883 34,752 Total $ 102,305 $ 96,650 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding are as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars and Shares in Thousands, Except per Share Data) Net (loss) income $ (107,760) $ 53,146 $ (20,608) Weighted average shares outstanding 64,621 40,931 36,308 Dilutive impact from: Employee equity awards — 77 — Dilutive weighted average shares outstanding 64,621 41,008 36,308 Income per share Basic $ (1.67) $ 1.30 $ (0.57) Dilutive $ (1.67) $ 1.30 $ (0.57) | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | For fiscal year 2023 and 2022 , certain employee equity awards were anti-dilutive based on the treasury stock method. The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of June 30, 2023 and 2022: Year Ended June 30, 2023 2022 (Shares in Thousands) Employee equity awards 1,312 65 |
Income Taxes (Tables)
Income Taxes (Tables) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | ||
Income before provision for income taxes | (Loss) income before provision for income taxes consists of the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Domestic $ (201,620) $ 29,905 $ (86,550) Foreign 21,054 10,056 20,637 (Loss) income before provision for income taxes $ (180,566) $ 39,961 $ (65,913) | |
Provision for income taxes | The (benefit) for income taxes shown in the accompanying consolidated and combined statements of operations is composed of the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Federal— Current $ 112,181 $ 59,162 $ 2,702 Deferred (184,400) (70,046) (48,043) State— Current 6,333 4,385 1,004 Deferred (7,301) (10,431) (4,980) Foreign— Current 9,293 3,465 4,191 Deferred (8,912) 280 (179) $ (72,806) $ (13,185) $ (45,305) | |
Income tax reconciliation based on federal statutory rate | The (benefit) for income taxes differs from that based on the federal statutory rate due to the following: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Taxes at U.S. statutory rate (21%) $ (37,919) $ 8,392 $ (13,842) State and local taxes, net of federal tax benefit (1,762) (7,003) (3,141) Foreign derived intangible income (FDII) (36,436) (17,150) — Global Intangible Low-Taxed Income (GILTI) 3,027 446 — Foreign taxes and rate differences (2,943) 2,669 1,181 Uncertain tax positions 405 (2,556) (2,522) Stock-based compensation 4,828 152 — Return to Provision 4,070 498 — Tax credits (396) (3,385) (523) Change in valuation allowance (5,680) 5,287 (27,953) Other — (535) 1,495 (Benefit) for income taxes $ (72,806) $ (13,185) $ (45,305) The Company's tax benefit for the fiscal 2023 was favorably impacted primarily by the Foreign-Derived Intangible Income (“FDII”) deduction, the benefit from the deduction of state taxes, the difference in foreign tax rates, and the change in valuation allowance on certain jurisdictions, offset by Global Intangible Low-Taxed Income (“GILTI”), stock-based compensation, and return to provision adjustment. Assuming certain requirements are met, the FDII deduction is a benefit for U.S. companies that sell their products or services to customers for use outside the U.S. | |
Deferred tax assets and liabilities | Net deferred tax liabilities consist of the following at June 30, 2023 and 2022: June 30, 2023 2022 (Dollars in Thousands) Deferred tax assets: Federal, state and foreign credits $ 7,171 $ 10,162 Net operating loss carryforwards 10,720 11,557 Deferred revenue 15,962 11,783 Other reserves and accruals 22,346 23,429 Intangible assets 19,369 19,215 Capitalized research and development 46,693 2,479 Property, leasehold improvements and other basis differences 4,186 5,135 Other temporary differences 2,660 3,615 Total gross deferred tax assets 129,107 87,375 Valuation allowance (15,995) (24,110) Total net deferred tax assets 113,112 63,265 Deferred tax liabilities: Intangible assets (1,005,672) (1,099,532) Contract assets and costs (41,643) (91,298) Deferred revenue (3,315) (1,092) Property, leasehold improvements, and other basis differences (5,820) (7,634) Other temporary differences (3,935) (4,180) Total gross deferred tax liabilities (1,060,385) (1,203,736) Net deferred tax (liabilities) $ (947,273) $ (1,140,471) Reflected in the deferred tax assets above at June 30, 2023, the Company has foreign net operating loss carryforwards of $45.3 million, with unlimited carryforwards, federal and state research & development (R&D) credits of $6.7 million and foreign R&D credits of $0.5 million which begin to expire in 2027. The Company's valuation allowance for deferred tax assets was $16.0 million and $24.1 million as of June 30, 2023 and 2022, respectively. The significant items of the valuation allowance as of June 30, 2023 are attributable to a reserve against foreign deferred tax assets of $3.2 million, foreign net operating losses of $5.7 million and state R&D credits of $6.4 million. For fiscal 2023, the Company's income tax provision included amounts determined under the provisions of ASC 740 intended to satisfy additional income tax assessments, including interest and penalties, that could result from any tax return positions for which the likelihood of sustaining the position on audit does not meet a threshold of “ more likely than not. ” Tax liabilities were recorded as a component of their income taxes payable and other non-current liabilities. The ultimate amount of taxes due will not be known until examinations are completed and settled or the audit periods are closed by statutes. | |
Reconciliation of reserve for uncertain tax positions | A reconciliation of the reserve for uncertain tax positions, excluding interest and penalties, is as follows: Year Ended June 30, 2023 2022 (Dollars in Thousands) Beginning balance $ 6,716 $ 8,032 Additions for current year tax positions 1,011 396 Additions for prior year tax positions 1,657 1,761 Reductions for prior year tax positions — (2,250) Reductions for settlements with tax authorities — — Reductions for expirations of statute of limitations (1,823) (1,223) Uncertain tax positions, excluding interest and penalties, end of year $ 7,561 $ 6,716 |
Related Party Disclosures (Tabl
Related Party Disclosures (Tables) | 9 Months Ended |
Jun. 30, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Accounts Payable and Accrued Liabilities | Receivables from related parties and due to related parties reported in the consolidated and combined balance sheets as of June 30, 2023 and 2022 include the following: June 30, 2023 2022 (Dollars in Thousands) Interest bearing receivables from related parties $ 61,948 $ 16,122 Trade receivables from related parties 427 819 Interest bearing payables to related parties 21,866 2,028 Trade payables to related parties 153 2,083 |
Investments in and Advances to Affiliates | Year Ended Nine Months Ended June 30, 2022 Year Ended Year Ended September 30, 2021 (Dollars in Thousands) Revenue from Emerson affiliates $ 30 $ — $ 2 Purchases from Emerson affiliates 445 2,337 241 |
Restructuring and Related Costs | Allocations and charges from Emerson are as follows: Year Ended Nine Months Ended June 30, 2022 Year Ended September 30, 2021 (Dollars in Thousands) Corporate costs $ — $ 3,212 $ 5,536 Information technology 2,949 1,684 1,908 Insurance and other benefits — 446 1,263 Shared services and other 5,571 10,294 9,300 |
Operations - Narrative (Details
Operations - Narrative (Details) $ in Thousands, $ in Millions | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | |||||||
Aug. 29, 2022 USD ($) | Oct. 10, 2021 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) countries | Jun. 30, 2023 USD ($) countries | Jun. 30, 2022 USD ($) | Sep. 30, 2021 USD ($) | Jul. 27, 2022 USD ($) | Jul. 27, 2022 AUD ($) | May 16, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||
Assets | $ 14,969,922 | $ 14,969,922 | $ 14,486,052 | $ 14,486,052 | $ 14,969,922 | ||||||
Business Combination, Consideration Transferred | $ 87,200 | $ 6,014,000 | |||||||||
Total revenue | 173,800 | 405,296 | 4,900 | 1,044,178 | 482,311 | $ 300,640 | |||||
Business Acquisition, Percentage of Voting Interests Acquired | 45% | ||||||||||
Revenue from Contract with Customer, Including Assessed Tax Russia | 9,900 | 44,600 | |||||||||
Assets Russia | $ 23,400 | $ 23,400 | $ 39,700 | $ 39,700 | $ 23,400 | ||||||
Business Combination, Consideration Transferred AUD | $ 900 | ||||||||||
Business Combination, Consideration Transferred USD | $ 623,000 | ||||||||||
Number of countries of operations | countries | 82 | 82 | |||||||||
Business Acquisition, Percentage of Voting Interests Acquired, Emerson | 55% |
Significant Accounting Polici_3
Significant Accounting Policies - Computer Software Development Costs (Details) | Jun. 30, 2023 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Construction in progress | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Significant Accounting Polici_4
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | |||
Net Foreign Currency Loss (Gain) Due to Revaluation | $ (306) | $ 4,100 | $ 5,525 |
Significant Accounting Polici_5
Significant Accounting Policies - Concentration of Credit Risk (Details) | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Concentration of Credit Risk | ||
Concentration risk, number of customers | no | no |
Customer One | Accounts and installments receivable | Customers concentration risk | ||
Concentration of Credit Risk | ||
Percentage of total receivables | 10% |
Significant Accounting Polici_6
Significant Accounting Policies - Comprehensive Income (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Accounting Policies [Abstract] | |||
Foreign currency translation adjustments | $ 289 | $ 7,548 | $ 122 |
Significant Accounting Polici_7
Significant Accounting Policies Significant Accounting Policies - Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease right-of-use assets | $ 67,642 | $ 78,286 |
Current operating lease liabilities | 12,928 | 7,191 |
Non-current operating lease liabilities | $ 55,442 | $ 71,933 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Contract Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Revenue from Contract with Customer [Abstract] | ||
Contract assets | $ 903,643 | $ 857,065 |
Deferred revenue | (181,553) | (164,408) |
Net contract assets | 722,090 | $ 692,657 |
Recognized Deferred Revenue | $ 113,800 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Contract Costs (Details) | Jun. 30, 2023 |
Minimum | |
Contract costs, amortization period | 4 years |
Maximum | |
Contract costs, amortization period | 8 years |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Transaction Price Allocated to Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Transaction price allocated to remaining performance obligations | $ 1,289,633 |
License and solutions | |
Transaction price allocated to remaining performance obligations | 305,385 |
Maintenance | |
Transaction price allocated to remaining performance obligations | 867,574 |
Services and other | |
Transaction price allocated to remaining performance obligations | 116,674 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-07-01 | |
Transaction price allocated to remaining performance obligations | 556,804 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | |
Transaction price allocated to remaining performance obligations | 316,899 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 173,439 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 303,462 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | 79,903 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Transaction price allocated to remaining performance obligations | 193,925 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 93,226 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 205,930 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | 17,743 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | |
Transaction price allocated to remaining performance obligations | 122,129 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 29,501 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 153,905 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | 10,519 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | |
Transaction price allocated to remaining performance obligations | 67,017 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 7,872 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 110,455 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | 3,802 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01 | |
Transaction price allocated to remaining performance obligations | 32,859 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 762 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 64,004 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | 2,251 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01 | License and solutions | |
Transaction price allocated to remaining performance obligations | 585 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01 | Maintenance | |
Transaction price allocated to remaining performance obligations | 29,818 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2028-07-01 | Services and other | |
Transaction price allocated to remaining performance obligations | $ 2,456 |
Revenue from Contracts with C_7
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Total revenue | $ 173,800 | $ 405,296 | $ 4,900 | $ 1,044,178 | $ 482,311 | $ 300,640 |
Revenue from Contract with Customer, Excluding Assessed Tax | 405,296 | 1,044,178 | 300,640 | |||
Heritage AspenTech | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 173,810 | 760,802 | 0 | |||
SSE | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 88,272 | 120,092 | 127,388 | |||
OSI Inc. | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 143,214 | 163,284 | 173,252 | |||
Term licenses | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 278,589 | 669,185 | 180,914 | |||
Maintenance | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 103,786 | 316,911 | 92,562 | |||
Professional services and other | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 22,921 | 58,082 | 27,164 | |||
North America | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | 173,500 | 387,800 | 123,200 | |||
Europe | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 84,958 | $ 275,698 | $ 58,026 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Sep. 30, 2021 | May 16, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |||
Finite-Lived Intangible Assets, Net, Total Acquired | $ 4,390 | ||
Business Acquisition, Percentage of Voting Interests Acquired, Emerson | 55% | ||
Net Income (Loss), Acquisition Date Period | $ 71.8 | $ (46.4) | |
Revenue from Contract with Customer, Including Assessed Tax, OSI | $ 173.3 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | May 16, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | $ 5,462,066 | $ 5,429,324 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (802,409) | (316,543) | ||
Finite-Lived Intangible Assets, Net | 4,659,657 | $ 30,400 | 5,112,781 | $ 3,960,000 |
Patented Technology [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 1,903,599 | 1,882,037 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (341,964) | (153,758) | ||
Finite-Lived Intangible Assets, Net | 1,561,635 | 1,728,279 | 1,350,000 | |
Trademarks | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 464,400 | 464,400 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (13,821) | (9,379) | ||
Finite-Lived Intangible Assets, Net | 450,579 | 455,021 | 430,000 | |
Customer Relationships [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 3,082,541 | 3,072,738 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (437,673) | (144,888) | ||
Finite-Lived Intangible Assets, Net | 2,644,868 | 2,927,850 | 2,300,000 | |
Software and Software Development Costs [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Gross | 11,526 | 10,149 | ||
Finite-Lived Intangible Assets, Accumulated Amortization | (8,951) | (8,518) | ||
Finite-Lived Intangible Assets, Net | $ 2,575 | $ 1,631 | ||
Order or Production Backlog | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Assets, Net | $ 310,000 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset amortization expense | $ 116,700 | $ 485,900 | $ 120,300 |
Amortization expense - 2022 | 486,701 | ||
Amortization expense - 2023 | 473,317 | ||
Amortization expense - 2024 | 382,641 | ||
Amortization expense - 2025 | 382,083 | ||
Amortization expense - 2026 | 370,722 | ||
Amortization expense - Thereafter | 2,134,193 | ||
Finite Lived Intangible Assets Future Amortization Expense | $ 4,229,657 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||||
Aug. 29, 2022 | May 16, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | Oct. 01, 2020 | |
Goodwill: | ||||||
Goodwill | $ 63,000 | $ 7,224,483 | $ 8,266,809 | $ 8,330,811 | $ 1,044,383 | $ 967,383 |
Goodwill from acquisitions, net of adjustments | $ 63,026 | $ 7,222,799 | ||||
Goodwill, Purchase Accounting Adjustments | 1,684 | |||||
Goodwill, effect of currency translation | $ (373) | $ (708) |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Aug. 29, 2022 | Jun. 30, 2022 | May 16, 2022 | Sep. 30, 2021 | Oct. 01, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 8,330,811 | $ 63,000 | $ 8,266,809 | $ 7,224,483 | $ 1,044,383 | $ 967,383 |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2021 USD ($) country | |
Restructuring and Related Activities [Abstract] | |||
Restructuring costs | $ | $ 117 | $ 0 | $ 2,474 |
Restructuring and Related Cost, Number of Positions Eliminated | country | 39 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | Oct. 01, 2020 | |
Lessee, Lease, Description [Line Items] | ||||
Lessor, Operating Lease, Option to Terminate | 60 days | |||
Operating Lease, Cost | $ 4,769 | $ 17,417 | $ 6,365 | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years | |||
Operating Lease, Weighted Average Discount Rate, Percent | 3% | |||
2024 | $ 14,409 | |||
2025 | 10,472 | |||
2026 | 7,327 | |||
2027 | 6,578 | |||
2028 | 6,085 | |||
Thereafter | 32,179 | |||
Total lease payments | 77,050 | |||
Less: imputed interest | (8,680) | |||
Operating lease liability | 68,370 | $ 28,388 | ||
Operating lease right-of-use assets | 78,286 | 67,642 | ||
Current operating lease liabilities | 7,191 | 12,928 | ||
Non-current operating lease liabilities | 71,933 | 55,442 | ||
Variable Lease, Cost | 518 | 813 | 797 | |
Short-term Lease, Cost | $ 723 | 125 | $ 889 | |
Amortization expense - 2022 | 486,701 | |||
Amortization expense - 2023 | $ 473,317 | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 1 year | |||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lessee, Operating Lease, Term of Contract | 12 years | |||
Lessee, Operating Lease, Renewal Term | 5 years |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Fair Value, Inputs, Level 2 [Member] | ||
Equity Method Investments, Fair Value Disclosure | $ 2,673 | $ 1,761 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 132,918 | $ 2,998 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Accounts receivable, gross | $ 112,216 | $ 129,887 |
Allowance for doubtful accounts | (1,189) | (7,098) |
Accounts receivable, net | $ 111,027 | $ 122,789 |
Concentration risk, number of customers | no | no |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Percentage of total receivables | 10% |
Property and Equipment - Proper
Property and Equipment - Property, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, at cost | $ 37,120 | $ 35,116 |
Accumulated depreciation | (18,450) | (17,968) |
Property, equipment and leasehold improvements, net | 18,670 | 17,148 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, at cost | 26,918 | 27,465 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, at cost | 8,544 | 7,158 |
Construction in Progress | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements, at cost | $ 1,658 | $ 493 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 3.2 | $ 5.5 | $ 5.3 |
Property and Equipment - Estima
Property and Equipment - Estimate Useful Lives of Property and Equipment (Details) | Jun. 30, 2023 |
Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Construction in progress | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 3 years |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated Useful Life | 10 years |
Accrued Expenses and Other Li_3
Accrued Expenses and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Accrued expenses and other current liabilities | ||
Compensation-related | $ 62,162 | $ 62,813 |
Deferred acquisition payments | 8,984 | 5,799 |
Professional fees | 6,265 | 4,448 |
Income taxes payable | 3,065 | 4,102 |
Uncertain tax positions | 654 | 2,773 |
Other Accrued Liabilities, Current | 18,396 | 10,188 |
Accrued Liabilities, Current, Total | $ 99,526 | $ 90,123 |
Accrued Expenses and Other Li_4
Accrued Expenses and Other Liabilities - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Other non-current liabilities | ||
Liability for Uncertainty in Income Taxes, Noncurrent | $ 9,139 | $ 3,593 |
Other Employee-related Liabilities | 5,917 | 1,345 |
Asset retirement obligations | 830 | 831 |
Other Accrued Liabilities, Noncurrent | 3,354 | 9,791 |
Other Liabilities, Noncurrent | $ 19,240 | $ 15,560 |
Credit Agreement - Narrative (D
Credit Agreement - Narrative (Details) | 12 Months Ended | |||
Jun. 30, 2023 USD ($) | Dec. 23, 2022 USD ($) | Jul. 27, 2022 USD ($) | Jun. 30, 2022 USD ($) | |
Line of Credit Facility [Line Items] | ||||
Current borrowings | $ 0 | $ 28,000,000 | ||
Non-current borrowings, net | $ 0 | 245,647,000 | ||
Maximum leverage ratio | 3.50 | |||
Minimum interest coverage ratio | 2.50 | |||
Bridge Loan | $ 475,000,000 | |||
Debt Instrument, Fee Amount | $ 50,000 | |||
Debt Instrument, Frequency of Fee | annum | |||
Emerson Electric Co. | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 630,000,000 | |||
Maximum leverage ratio | 3.50 | |||
Minimum interest coverage ratio | 2.50 | |||
Revolving Credit Facility [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 200,000,000 | |||
Letters of Credit Outstanding, Amount | 0 | $ 0 | ||
Secured Debt [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt Instrument, Face Amount | $ 320,000,000 |
Credit Agreement Maturities of
Credit Agreement Maturities of Term Loan Facility (Details) $ in Millions | Jan. 17, 2023 USD ($) |
Debt Disclosure [Abstract] | |
Repayments of Short-Term Debt | $ 264 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Plans and General Award Terms (Details) - USD ($) $ in Thousands, shares in Millions | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Stock-based compensation, additional disclosures | |||
Common stock reserved for future issuance or settlement (in shares) | 4 | ||
Share-based Payment Arrangement, Expense | $ 15,763 | $ 84,850 | $ 1,744 |
Emerson stock-based compensation plans | |||
Stock-based compensation, additional disclosures | |||
Share-based Payment Arrangement, Expense | $ 1,100 | $ 1,800 | $ 1,700 |
Stock Options | |||
General award terms | |||
Award vesting period | 4 years | ||
Stock Options | Minimum | |||
General award terms | |||
Contractual terms | 7 years | ||
Stock Options | Maximum | |||
General award terms | |||
Contractual terms | 10 years |
Stock-Based Compensation - St_2
Stock-Based Compensation - Stock-Based Compensation Accounting (Details) - Stock Options - $ / shares | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Weighted average assumptions | ||
Weighted average fair value (in dollars per share) | $ 71.90 | $ 79.02 |
Risk-free interest rate (as a percent) | 3% | 3.40% |
Expected dividend yield (as a percent) | 0% | 0% |
Expected life (in years) | 5 years 2 months 12 days | 4 years 9 months 18 days |
Expected volatility factor (as a percent) | 36.10% | 38.20% |
Stock-Based Compensation - St_3
Stock-Based Compensation - Stock Based Compensation Expense and its Classification in the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Recorded as expenses: | |||
Total stock-based compensation | $ 15,763 | $ 84,850 | $ 1,744 |
Cost of maintenance | |||
Recorded as expenses: | |||
Total stock-based compensation | 344 | 1,893 | 0 |
Cost of services and other | |||
Recorded as expenses: | |||
Total stock-based compensation | 282 | 1,995 | 0 |
Selling and marketing | |||
Recorded as expenses: | |||
Total stock-based compensation | 2,850 | 16,202 | 0 |
Research and development | |||
Recorded as expenses: | |||
Total stock-based compensation | 3,507 | 21,790 | 0 |
General and administrative | |||
Recorded as expenses: | |||
Total stock-based compensation | 7,429 | 39,405 | 1,744 |
License and solutions | |||
Recorded as expenses: | |||
Total stock-based compensation | $ 1,351 | $ 3,565 | $ 0 |
Stock-Based Compensation - St_4
Stock-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | May 16, 2022 | |
Equity Incentive Plan 2022 | ||||
Weighted Average Grant Date Fair Value | ||||
Maximum number of shares authorized (in shares) | 4,564,508 | |||
2022 Employee Stock Purchase Plan | ||||
Weighted Average Grant Date Fair Value | ||||
Maximum number of shares authorized (in shares) | 154,174 | 184,010 | ||
Purchase price of common stock, percent | 85% | |||
Stock Options | ||||
Stock options activity | ||||
Outstanding, beginning of period (in shares) | 1,326,860 | 0 | 1,175,853 | |
Granted (in shares) | 208,361 | |||
Exercised (in shares) | (62,250) | (347,238) | ||
Cancelled / Forfeited (in shares) | (3,447) | (31,150) | ||
Outstanding, end of period (in shares) | 1,175,853 | 1,175,853 | 1,005,826 | |
Vested and exercisable, end of period (in shares) | 643,086 | |||
Vested and expected to vest, end of period (in shares) | 983,744 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | $ 0 | $ 120.03 | ||
Granted (in dollars per share) | 193.35 | 205.46 | ||
Exercised (in dollars per share) | 93.32 | 96.12 | ||
Cancelled / Forfeited (in dollars per share) | 138.78 | 178.39 | ||
Outstanding, end of period (in dollars per share) | $ 120.03 | $ 120.03 | 144.17 | |
Vested and exercisable, end of period (in dollars per share) | 125 | |||
Vested and expected to vest, end of period (in dollars per share) | $ 143.36 | |||
Weighted Average Remaining Contractual Term | ||||
Outstanding, end of period | 7 years 21 days | 6 years 5 months 8 days | ||
Vested and exercisable, end of period | 5 years 5 months 1 day | |||
Vested and expected to vest, end of period | 6 years 4 months 20 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 0 | $ 75,597 | ||
Outstanding, end of period | $ 75,597 | $ 75,597 | 32,935 | |
Vested and exercisable, end of period | 29,872 | |||
Vested and expected to vest, end of period | $ 32,719 | |||
Weighted Average Grant Date Fair Value | ||||
Expected life (in years) | 5 years 2 months 12 days | 4 years 9 months 18 days | ||
Weighted average fair value (in dollars per share) | $ 71.90 | $ 79.02 | ||
Risk-free interest rate (as a percent) | 3% | 3.40% | ||
Expected dividend yield (as a percent) | 0% | 0% | ||
Expected volatility factor (as a percent) | 36.10% | 38.20% | ||
Stock Options | Minimum | ||||
Weighted Average Grant Date Fair Value | ||||
Contractual terms | 7 years | |||
Stock Options | Maximum | ||||
Weighted Average Grant Date Fair Value | ||||
Contractual terms | 10 years | |||
Restricted Stock Units | ||||
Stock options activity | ||||
Outstanding, beginning of period (in shares) | 504,386 | |||
Restricted stock units activity | ||||
Outstanding, beginning of period (in shares) | 0 | 484,544 | ||
Granted (in shares) | 257,773 | |||
Settled (in shares) | (87,930) | (244,161) | ||
Cancelled / Forfeited (in shares) | (5,149) | (41,788) | ||
Outstanding, end of period (in shares) | 484,544 | 484,544 | 456,368 | |
Vested and expected to vest (in shares) | 390,284 | |||
Weighted Average Grant Date Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 0 | $ 188.45 | ||
Granted (in dollars per share) | 193.70 | 201.59 | ||
Settled (RSUs) (in dollars per share) | 188.32 | 193.72 | ||
Cancelled / Forfeited (in dollars per share) | 184.62 | 194.48 | ||
Outstanding, end of period (in dollars per share) | $ 188.45 | $ 188.45 | $ 192.55 | |
Vested and expected to vest, end of period (in dollars per share) | 192.37 | |||
Total fair value of shares vested from RSU grants | $ 46,600 | $ 50,500 | ||
Share-based Payment Arrangement [Member] | ||||
Stock options activity | ||||
Granted (in shares) | 76,056 | |||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 193.55 | |||
Restricted stock units activity | ||||
Granted (in shares) | 124,226 | |||
Weighted Average Grant Date Fair Value | ||||
Granted (in dollars per share) | $ 193.70 | |||
Share-based Payment Arrangement [Member] | Emerson stock-based compensation plans | ||||
Stock options activity | ||||
Granted (in shares) | 1,165,494 | |||
Weighted Average Exercise Price | ||||
Granted (in dollars per share) | $ 101.44 | |||
Restricted stock units activity | ||||
Granted (in shares) | 453,397 | |||
Weighted Average Grant Date Fair Value | ||||
Granted (in dollars per share) | $ 166.30 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | May 17, 2022 | May 16, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Issuance of shares of common stock | $ 5,702 | $ 36,736 | $ 5,702 | $ 0 | ||
Payments related to tax withholding | 1,676 | $ 20,836 | 1,676 | 0 | ||
Common stock reserved for future issuance or settlement (in shares) | 4,000,000 | |||||
Share-based Payment Arrangement, Expense | 15,763 | $ 84,850 | 1,744 | |||
Post-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 96,650 | |||||
Pre-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 102,305 | |||||
Emerson stock-based compensation plans | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Payment Arrangement, Expense | $ 1,100 | $ 1,800 | $ 1,700 | |||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted (in dollars per share) | $ 193.70 | $ 201.59 | ||||
Total fair value of shares vested from RSU grants | $ 46,600 | $ 50,500 | ||||
Total unrecognized compensation cost | $ 47,600 | |||||
Total unrecognized compensation cost, period of recognition | 2 years 6 months 14 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 504,386 | |||||
Restricted Stock Units | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 453,397 | |||||
Restricted Stock Units | Post-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 61,898 | |||||
Restricted Stock Units | Pre-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 22,422 | |||||
Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Total unrecognized compensation cost | $ 23,400 | |||||
Total unrecognized compensation cost, period of recognition | 2 years 3 months 3 days | |||||
Granted (in dollars per share) | $ 193.35 | $ 205.46 | ||||
Total intrinsic value of options exercised | $ 18,700 | $ 42,800 | ||||
Issuance of shares of common stock | 45,000 | 23,000 | ||||
Payments related to tax withholding | $ 18,000 | $ 16,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,175,853 | 1,005,826 | 1,175,853 | 0 | 1,326,860 | |
Share-based Payment Arrangement, Option [Member] | Share-based Payment Arrangement, Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 1,165,494 | |||||
Share-based Payment Arrangement, Option [Member] | Post-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 34,752 | |||||
Share-based Payment Arrangement, Option [Member] | Pre-combination portion | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 79,883 |
Stock Repurchases - Narrative (
Stock Repurchases - Narrative (Details) - USD ($) | 12 Months Ended | ||
May 05, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | |
Common Stock | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 100,000,000 | ||
Repurchase of common stock (in shares) | 487,626 | ||
Repurchase of common stock, amount | $ 100,000,000 | ||
Treasury Stock, Value | (84,150,000) | $ 0 | |
Treasury Stock, Value, Acquired, Cost Method | $ (100,000,000) |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 8 Months Ended | 9 Months Ended | 10 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | May 16, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Treasury Stock, Value, Acquired, Cost Method | $ 100,000 | ||||||
Net (loss) income | $ 66,369 | $ (13,223) | $ 53,146 | $ 5,000 | $ (107,760) | $ 41,944 | $ (20,608) |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 65,000 | 1,312 | |||||
Basic | 40,931,000 | 64,621,000 | 39,768,000 | 36,308,000 | |||
Dilutive impact from employee equity awards | 77,000 | 0 | 0 | ||||
Diluted | 41,008,000 | 64,621,000 | 39,845,000 | 36,308,000 | |||
Basic | $ 1.30 | $ (1.67) | $ 1.05 | $ (0.57) | |||
Diluted | $ 1.30 | $ (1.67) | $ 1.05 | $ (0.57) |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Net realized loss on settlement of foreign currency forward contracts | $ 0 | $ 26,176 | $ 0 |
Income Taxes - Income (Loss) be
Income Taxes - Income (Loss) before Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Income (loss) before provision for income taxes | ||||
Domestic | $ 29,905 | $ (201,620) | $ (86,550) | |
Foreign | 10,056 | 21,054 | 20,637 | |
(Loss) income before provision for income taxes | 39,961 | (180,566) | (65,913) | |
Federal | ||||
Current | 59,162 | 112,181 | 2,702 | |
Deferred | (70,046) | (184,400) | (48,043) | |
State | ||||
Current | 4,385 | 6,333 | 1,004 | |
Deferred | (10,431) | (7,301) | (4,980) | |
Foreign | ||||
Current | 3,465 | 9,293 | 4,191 | |
Deferred | 280 | (8,912) | (179) | |
(Benefit) for income taxes | $ (13,185) | $ (72,806) | $ (17,498) | $ (45,305) |
Income Taxes - Provision For (B
Income Taxes - Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Income Tax Reconciliation | ||||
Taxes at U.S. statutory rate (21%) | $ 8,392 | $ (37,919) | $ (13,842) | |
State and local taxes, net of federal tax benefit | (7,003) | (1,762) | (3,141) | |
Foreign derived intangible income (FDII) | 17,150 | 36,436 | 0 | |
Global Intangible Low-Taxed Income (GILTI) | 446 | 3,027 | 0 | |
Foreign taxes and rate differences | 2,669 | (2,943) | 1,181 | |
Uncertain tax positions | (2,556) | 405 | (2,522) | |
Stock-based compensation | 152 | 4,828 | 0 | |
Return to Provision | 498 | 4,070 | 0 | |
Tax credits | (3,385) | (396) | (523) | |
Change in valuation allowance | 5,287 | (5,680) | (27,953) | |
Other | (535) | 0 | 1,495 | |
(Benefit) for income taxes | $ (13,185) | $ (72,806) | $ (17,498) | $ (45,305) |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | ||
Federal, state and foreign credits | $ 7,171 | $ 10,162 |
Net operating loss carryforwards | 10,720 | 11,557 |
Deferred revenue | 15,962 | 11,783 |
Other reserves and accruals | 22,346 | 23,429 |
Intangible assets | 19,369 | 19,215 |
Deferred Tax Assets, in Process Research and Development | 46,693 | 2,479 |
Property, leasehold improvements and other basis differences | 4,186 | 5,135 |
Other temporary differences | 2,660 | 3,615 |
Total gross deferred tax assets | 129,107 | 87,375 |
Valuation allowance | (15,995) | (24,110) |
Total net deferred tax assets | 113,112 | 63,265 |
Components of Deferred Tax Liabilities [Abstract] | ||
Intangible assets | (1,005,672) | (1,099,532) |
Contract assets and costs | 41,643 | 91,298 |
Deferred revenue | (3,315) | (1,092) |
Property, leasehold improvements, and other basis differences | (5,820) | (7,634) |
Other temporary differences | (3,935) | (4,180) |
Total gross deferred tax liabilities | (1,060,385) | (1,203,736) |
Net deferred tax (liabilities) | (947,273) | $ (1,140,471) |
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | $ 5,700 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Tax Credit Carryforward | |||
Deferred tax assets, valuation allowance | $ 24,110 | $ 15,995 | |
Unrecognized Tax Benefits | 6,716 | 7,561 | $ 8,032 |
Accrued interest | 1,100 | ||
Accrued penalties related to uncertain tax positions | 500 | ||
Benefit for interest and penalties | (200) | ||
Foreign derived intangible income (FDII) | 17,150 | 36,436 | $ 0 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | $ 0 | 0 | |
Decrease in Unrecognized Tax Benefits is Reasonably Possible | 1,500 | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Reserves | 3,200 | ||
Deferred Tax Assets, Tax Credit Carryforwards, Research | 6,400 | ||
Deferred Tax Assets, Operating Loss Carryforwards, Foreign | 5,700 | ||
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 9,100 | ||
Foreign | |||
Tax Credit Carryforward | |||
Net operating loss carryforwards | 45,300 | ||
Research and development tax credit carryforward | Foreign | |||
Tax Credit Carryforward | |||
Tax credit carryforward | 500 | ||
Research and development tax credit carryforward | State and Local Jurisdiction [Member] | |||
Tax Credit Carryforward | |||
Tax credit carryforward | $ 6,700 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Reserve For Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Jun. 30, 2023 | |
Reconciliation of the reserve for uncertain tax positions | ||
Beginning balance | $ 8,032 | $ 6,716 |
Gross (decreases) increases - tax positions in prior period | 396 | 1,011 |
Additions for prior year tax positions | 1,761 | 1,657 |
Reductions for prior year tax positions | (2,250) | 0 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | 0 |
Reductions for expirations of statute of limitations | (1,223) | (1,823) |
Uncertain tax positions, excluding interest and penalties, end of year | $ 6,716 | $ 7,561 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) | 1 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) | Sep. 30, 2021 USD ($) | Dec. 23, 2022 USD ($) | |
Related Party Transaction [Line Items] | |||||
Maximum leverage ratio | 3.50 | ||||
Minimum interest coverage ratio | 2.50 | ||||
Emerson Electric Co. | |||||
Related Party Transactions [Abstract] | |||||
Revenue from Emerson affiliates | $ 0 | $ 30,000 | $ 2,000 | ||
Purchases from Emerson affiliates | 2,337,000 | 445,000 | 241,000 | ||
Related Party Transaction [Line Items] | |||||
Revenue from Emerson affiliates | 0 | $ 30,000 | 2,000 | ||
Debt Instrument, Face Amount | $ 630,000,000 | ||||
Maximum leverage ratio | 3.50 | ||||
Minimum interest coverage ratio | 2.50 | ||||
Emerson Electric Co. | Minimum | |||||
Related Party Transaction [Line Items] | |||||
Variable rate spread (as a percent) | 1.25% | ||||
Emerson Electric Co. | Maximum | |||||
Related Party Transaction [Line Items] | |||||
Variable rate spread (as a percent) | 1.75% | ||||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Interest bearing receivables from related parties | $ 16,122,000 | 16,122,000 | $ 61,948,000 | ||
Accounts Receivable, after Allowance for Credit Loss | 819,000 | 819,000 | 427,000 | ||
Interest bearing payables to related parties | 2,028,000 | 2,028,000 | 21,866,000 | ||
Trade payables to related parties | $ 2,083,000 | 2,083,000 | 153,000 | ||
Emerson Electric Co. | |||||
Related Party Transaction [Line Items] | |||||
Merger Agreement Ownership Percentage of Combined Company | 0.55 | ||||
Corporate costs | |||||
Related Party Transaction [Line Items] | |||||
Payments of Distributions to Affiliates | 3,212,000 | 5,536,000 | |||
Information technology | |||||
Related Party Transaction [Line Items] | |||||
Payments of Distributions to Affiliates | 1,684,000 | 2,949,000 | 1,908,000 | ||
Insurance and other benefits | |||||
Related Party Transaction [Line Items] | |||||
Payments of Distributions to Affiliates | 446,000 | 1,263,000 | |||
Shared services and other | |||||
Related Party Transaction [Line Items] | |||||
Payments of Distributions to Affiliates | $ 10,294,000 | $ 5,571,000 | $ 9,300,000 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | Sep. 30, 2020 | |
Retirement Benefits [Abstract] | ||||
Employer matching contributions (as a percent) | 50% | |||
Maximum employee's pretax contribution that can be matched (as a percent) | 6% | |||
Employer matching contributions | $ 4.7 | $ 1.9 | $ 2 | |
Liability, Defined Benefit Plan | 7 | $ 8.7 | ||
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 0.8 | 0.1 | ||
Defined Benefit Plan, Plan Assets, Amount | 4.6 | 4.8 | ||
Defined Benefit Plan, Benefit Obligation | 11.6 | 13.6 | ||
Defined Contribution Plan, Cost | $ 2 | $ 2.7 | $ 5.1 |
Segment and Geographic Inform_2
Segment and Geographic Information - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | |
Geographic Information | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 405,296 | $ 1,044,178 | $ 300,640 | |
Property, equipment and leasehold improvements, net | 17,148 | 18,670 | $ 17,148 | |
Interest Income (Expense), Net | 3,494 | 31,917 | 3,222 | (115) |
United States | ||||
Geographic Information | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 173,500 | 387,800 | 123,200 | |
Property, equipment and leasehold improvements, net | 13,000 | 13,400 | 13,000 | |
Americas | ||||
Geographic Information | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 234,383 | 486,506 | 182,314 | |
Property, equipment and leasehold improvements, net | 14,591 | 15,793 | 14,591 | |
Europe | ||||
Geographic Information | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 84,958 | 275,698 | 58,026 | |
Property, equipment and leasehold improvements, net | 1,403 | 954 | 1,403 | |
Asia, Middle East and Africa | ||||
Geographic Information | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 85,955 | 281,974 | $ 60,300 | |
Property, equipment and leasehold improvements, net | $ 1,154 | $ 1,923 | $ 1,154 |
Segment and Geographic Inform_3
Segment and Geographic Information - Domestic and International Sales as a Percentage of Total Revenue (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2023 | Sep. 30, 2021 | |
Geographic Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 405,296 | $ 1,044,178 | $ 300,640 |
United States | |||
Geographic Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | 173,500 | 387,800 | 123,200 |
Europe | |||
Geographic Information | |||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 84,958 | $ 275,698 | $ 58,026 |
Interim Reporting (Details)
Interim Reporting (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |||||
May 16, 2022 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Sep. 30, 2021 | Jun. 30, 2021 | Sep. 30, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||
Increase (Decrease) in Accounts Receivable | $ (11,204) | $ 25,538 | $ (4,486) | $ 5,476 | |||
Increase (Decrease) in Contract with Customer, Asset | 78,122 | 21,658 | (82,898) | 17,868 | |||
Increase (Decrease) in Deferred Charges | 4,992 | 10,165 | (4,992) | 0 | |||
Increase (decrease) in lease liabilities | 5,558 | 13,655 | (5,979) | 4,673 | |||
Increase (Decrease) in Prepaid Expense and Other Assets | 8,776 | (7,625) | (6,965) | (1,553) | |||
Accounts payable, accrued expenses, income taxes payable and other liabilities | (23,674) | 18,315 | (25,908) | (1,740) | |||
Contract liabilities | 22,431 | 16,979 | 17,291 | 22,252 | |||
Net Cash Provided by (Used in) Operating Activities | 28,962 | 299,209 | 19,776 | 54,800 | |||
Payments to Acquire Property, Plant, and Equipment | (2,263) | (6,577) | (4,870) | (6,185) | |||
Proceeds from Sale of Property, Plant, and Equipment | (91) | 0 | (91) | 0 | |||
Payments to Acquire Businesses, Net of Cash Acquired | $ 11,188,276 | (5,571,931) | (72,498) | (5,572,996) | (1,588,802) | ||
Payments for equity method investments | (24) | (700) | (24) | 0 | |||
Payments for Software to be Sold | 508 | 366 | (508) | 0 | |||
Purchase of other assets | (553) | (1,000) | (838) | (5) | |||
Net Cash Provided by (Used in) Investing Activities | (5,575,188) | (107,317) | (5,579,145) | (1,594,982) | |||
Issuance of shares of common stock | 5,702 | 36,736 | 5,702 | 0 | |||
Payments related to tax withholding | (1,676) | (20,836) | (1,676) | 0 | |||
Payments for Deferred Business Acquisition Costs | 1,200 | 1,363 | 1,200 | 0 | |||
Repayments of Lines of Credit | (276,000) | (6,000) | |||||
Net transfers (to) from Parent Company | (5,971,995) | (19,933) | (5,987,190) | (1,551,537) | |||
Net Cash Provided by (Used in) Financing Activities | 5,968,821 | (383,771) | 5,984,016 | 1,551,537 | |||
Effect of exchange rate changes on cash and cash equivalents | 1,417 | (16,637) | 1,419 | (141) | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 424,012 | (208,516) | 426,066 | 11,214 | |||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 449,725 | 241,209 | 449,725 | $ 25,713 | $ 23,659 | $ 14,499 | |
Net foreign currency losses (gains) | $ 4,079 | $ 1,232 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - USD ($) shares in Millions, $ in Millions | Aug. 01, 2023 | Jul. 28, 2023 |
Subsequent Event [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Shares to be Repurchased Next Year | 300 | |
Payment for Plantweb Optics Analytics | $ 12.5 |
Uncategorized Items - azpn-2023
Label | Element | Value |
APIC, Share-Based Payment Arrangement, Increase for Cost Recognition | us-gaap_AdjustmentsToAdditionalPaidInCapitalSharebasedCompensationRequisiteServicePeriodRecognitionValue | $ 14,664,000 |
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 5,621,000 |
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures | (5,632,000) |
Recapitilization as a result of Transactions and Merger | azpn_RecapitilizationAsAResultOfTransactionsAndMerger | 5,357,121,000 |
Additional Paid-in Capital [Member] | ||
Stock Issued During Period, Value, Stock Options Exercised | us-gaap_StockIssuedDuringPeriodValueStockOptionsExercised | 5,621,000 |
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | us-gaap_StockIssuedDuringPeriodValueRestrictedStockAwardNetOfForfeitures | (5,632,000) |
Recapitilization as a result of Transactions and Merger | azpn_RecapitilizationAsAResultOfTransactionsAndMerger | 13,092,917,000 |
Retained Earnings [Member] | ||
Net Income (Loss) | us-gaap_NetIncomeLoss | 66,369,000 |
Net Income (Loss) | us-gaap_NetIncomeLoss | $ (13,223,000) |
Common Stock [Member] | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period | us-gaap_StockIssuedDuringPeriodSharesStockOptionsExercised | 61,292 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | us-gaap_StockIssuedDuringPeriodSharesRestrictedStockAwardNetOfForfeitures | 58,468 |
Heritage AspenTech [Member] | ||
Amortization of Intangible Assets | us-gaap_AmortizationOfIntangibleAssets | $ 430,000,000 |
OSI Inc. [Member] | ||
Payments to Acquire Businesses, Net of Cash Acquired | us-gaap_PaymentsToAcquireBusinessesNetOfCashAcquired | 1,588,802,000 |
Deferred Revenue | us-gaap_DeferredRevenue | $ 13,700,000 |