Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 30, 2016 | Oct. 20, 2016 | |
Document and Entity Information | ||
Entity Registrant Name | ASPEN TECHNOLOGY INC /DE/ | |
Entity Central Index Key | 929,940 | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2016 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --06-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 77,231,153 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Revenue: | ||
Subscription and software | $ 113,444 | $ 111,859 |
Services and other | 6,606 | 8,437 |
Total revenue | 120,050 | 120,296 |
Cost of revenue: | ||
Subscription and software | 5,069 | 5,242 |
Services and other | 6,437 | 7,730 |
Total cost of revenue | 11,506 | 12,972 |
Gross profit | 108,544 | 107,324 |
Operating expenses: | ||
Selling and marketing | 22,025 | 22,436 |
Research and development | 18,632 | 16,597 |
General and administrative | 13,157 | 12,862 |
Total operating expenses, net | 53,814 | 51,895 |
Income from operations | 54,730 | 55,429 |
Interest income | 272 | 82 |
Interest expense | (869) | (1) |
Other income, net | 646 | 896 |
Income before provision for income taxes | 54,779 | 56,406 |
Provision for income taxes | 19,779 | 19,635 |
Net income | $ 35,000 | $ 36,771 |
Net income per common share: | ||
Basic (in dollars per share) | $ 0.44 | $ 0.44 |
Diluted (in dollars per share) | $ 0.44 | $ 0.44 |
Weighted average shares outstanding: | ||
Basic (in shares) | 79,048 | 83,876 |
Diluted (in shares) | 79,385 | 84,320 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net income | $ 35,000 | $ 36,771 |
Other comprehensive loss: | ||
Net unrealized gains (losses) on available for sale securities, net of tax effects of $15 and ($12) for the three months ended September 30, 2016 and 2015, respectively | (26) | 23 |
Foreign currency translation adjustments | (904) | (1,733) |
Total other comprehensive loss | (930) | (1,710) |
Comprehensive income | $ 34,070 | $ 35,061 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | ||
Net unrealized gains (losses) on available for sale securities, net of tax effects | $ 15 | $ (12) |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 48,377 | $ 318,336 |
Short-term marketable securities | 143,174 | 3,006 |
Accounts receivable, net | 21,847 | 20,476 |
Prepaid expenses and other current assets | 12,154 | 13,948 |
Prepaid income taxes | 112 | 5,557 |
Total current assets | 225,664 | 361,323 |
Property, equipment and leasehold improvements, net | 15,766 | 15,825 |
Computer software development costs, net | 680 | 720 |
Goodwill | 25,278 | 23,438 |
Intangible assets, net | 9,067 | 5,000 |
Non-current deferred tax assets | 12,264 | 12,236 |
Other non-current assets | 1,225 | 1,196 |
Total assets | 289,944 | 419,738 |
Current liabilities: | ||
Accounts payable | 3,754 | 3,559 |
Accrued expenses and other current liabilities | 29,968 | 36,105 |
Income taxes payable | 11,838 | 439 |
Borrowings under credit agreement | 140,000 | 140,000 |
Current deferred revenue | 226,105 | 252,520 |
Total current liabilities | 411,665 | 432,623 |
Non-current deferred revenue | 28,097 | 29,558 |
Other non-current liabilities | 33,767 | 32,591 |
Commitments and contingencies (Note 16) | ||
Series D redeemable convertible preferred stock | ||
Series D redeemable convertible preferred stock, $0.10 par value— Authorized— 3,636 shares as of September 30, 2016 and June 30, 2016 Issued and outstanding— none as of September 30, 2016 and June 30, 2016 | 0 | 0 |
Stockholders' deficit: | ||
Common stock, $0.10 par value— Authorized—210,000,000 shares Issued— 102,218,791 shares at September 30, 2016 and 102,031,960 shares at June 30, 2016 Outstanding— 77,468,068 shares at September 30, 2016 and 80,177,950 shares at June 30, 2016 | 10,222 | 10,203 |
Additional paid-in capital | 646,647 | 659,287 |
Retained earnings (deficit) | 29,324 | (5,676) |
Accumulated other comprehensive income | 1,721 | 2,651 |
Treasury stock, at cost—24,750,723 shares of common stock at September 30, 2016 and 21,854,010 shares at June 30, 2016 | (871,499) | (741,499) |
Total stockholders’ deficit | (183,585) | (75,034) |
Total liabilities and stockholders’ deficit | $ 289,944 | $ 419,738 |
CONSOLIDATED BALANCE SHEETS (U6
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2016 | Jun. 30, 2016 |
Statement of Financial Position [Abstract] | ||
Series D redeemable convertible preferred stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Series D redeemable convertible preferred stock, authorized | 3,636 | 3,636 |
Series D redeemable convertible preferred stock, issued | 0 | 0 |
Series D redeemable convertible preferred stock, outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, authorized | 210,000,000 | 210,000,000 |
Common stock, issued | 102,218,791 | 102,031,960 |
Common stock, outstanding | 77,468,068 | 80,177,950 |
Treasury stock, shares | 24,750,723 | 21,854,010 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 35,000 | $ 36,771 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,791 | 1,547 |
Net foreign currency gains | (745) | (1,189) |
Stock-based compensation | 4,958 | 4,423 |
Deferred income taxes | (46) | 0 |
Provision for (recovery from) bad debts | (7) | 26 |
Tax benefits from stock-based compensation | 584 | 1,577 |
Excess tax benefits from stock-based compensation | (584) | (1,577) |
Other non-cash operating activities | 90 | 159 |
Changes in assets and liabilities: | ||
Accounts receivable | (1,355) | 8,769 |
Prepaid expenses, prepaid income taxes, and other assets | 1,885 | 812 |
Accounts payable, accrued expenses, income taxes payable and other liabilities | 12,520 | 2,348 |
Deferred revenue | (27,841) | (35,220) |
Net cash provided by operating activities | 26,250 | 18,446 |
Cash flows from investing activities: | ||
Purchases of marketable securities | (193,748) | 0 |
Maturities of marketable securities | 53,184 | 10,370 |
Purchases of property, equipment and leasehold improvements | (898) | (1,119) |
Payments for business acquisitions | (5,400) | 0 |
Payments for capitalized computer software costs | (51) | 0 |
Net cash (used in) provided by investing activities | (146,913) | 9,251 |
Cash flows from financing activities: | ||
Exercises of stock options | 3,089 | 611 |
Repurchases of common stock | (151,621) | (55,033) |
Payments of tax withholding obligations related to restricted stock | (1,297) | (1,125) |
Excess tax benefits from stock-based compensation | 584 | 1,577 |
Net cash used in financing activities | (149,245) | (53,970) |
Effect of exchange rate changes on cash and cash equivalents | (51) | (237) |
Decrease in cash and cash equivalents | (269,959) | (26,510) |
Cash and cash equivalents, beginning of period | 318,336 | 156,249 |
Cash and cash equivalents, end of period | 48,377 | 129,739 |
Supplemental disclosure of cash flow information: | ||
Income taxes paid, net | 1,239 | 2,895 |
Interest paid | 850 | 1 |
Supplemental disclosure of non-cash investing and financing activities: | ||
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses | 506 | (631) |
Change in common stock repurchases included in accrued expenses | $ (1,621) | $ 33 |
Interim Unaudited Consolidated
Interim Unaudited Consolidated Financial Statements | 3 Months Ended |
Sep. 30, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Interim Unaudited Consolidated Financial Statements | Interim Unaudited Consolidated Financial Statements The accompanying interim unaudited consolidated financial statements of Aspen Technology, Inc. and its subsidiaries have been prepared on the same basis as our annual consolidated financial statements. We have omitted certain information and footnote disclosures normally included in our annual consolidated financial statements. Such interim unaudited consolidated financial statements have been prepared in conformity with U.S. Generally Accepted Accounting Principles (GAAP), as defined in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) Topic 270, Interim Reporting , for interim financial information and with the instructions to Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. It is suggested that these unaudited consolidated financial statements be read in conjunction with the audited consolidated financial statements for the year ended June 30, 2016 , which are contained in our Annual Report on Form 10-K, as previously filed with the U.S. Securities and Exchange Commission (SEC). In the opinion of management, all adjustments, consisting of normal and recurring adjustments, considered necessary for a fair presentation of the financial position, results of operations, and cash flows at the dates and for the periods presented have been included and all intercompany accounts and transactions have been eliminated in consolidation. The results of operations for the three months ended September 30, 2016 are not necessarily indicative of the results to be expected for the subsequent quarter or for the full fiscal year. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Unless the context requires otherwise, references to we, our and us refer to Aspen Technology, Inc. and its subsidiaries. |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies (a) Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. (b) Significant Accounting Policies Our significant accounting policies are described in Note 2 to the consolidated financial statements included in our Annual Report on Form 10-K for the fiscal year ended June 30, 2016 . There were no material changes to our significant accounting policies during the three months ended September 30, 2016 . (c) Revenue Recognition We generate revenue from the following sources: (1) Subscription and software revenue; and (2) Services and other revenue. We sell our software products to end users primarily under fixed-term licenses. We license our software products primarily through a subscription offering which we refer to as our aspenONE licensing model. Our aspenONE products are organized into two suites: 1) engineering and 2) manufacturing and supply chain, or MSC. The aspenONE licensing model provides customers with access to all of the products within the aspenONE suite(s) they license. We refer to these arrangements as token arrangements. Tokens are fixed units of measure. The amount of software usage is limited by the number of tokens purchased by the customer. We also license our software through point product term arrangements, which include software maintenance and support, known as our Premier Plus SMS offering, for the entire term, as well as perpetual license arrangements. Four basic criteria must be satisfied before software license revenue can be recognized: persuasive evidence of an arrangement between us and an end user; delivery of our product has occurred; the fee for the product is fixed or determinable; and collection of the fee is probable. Persuasive evidence of an arrangement —We use a signed contract as evidence of an arrangement for software licenses and SMS. For professional services we use a signed contract and a work proposal to evidence an arrangement. In cases where both a signed contract and a purchase order are required by the customer, we consider both taken together as evidence of the arrangement. Delivery of our product —Software and the corresponding access keys are generally delivered to customers via electronic delivery or via physical medium with standard shipping terms of Free Carrier, our warehouse (i.e., FCA, named place). Our software license agreements do not contain conditions for acceptance. Fee is fixed or determinable —We assess whether a fee is fixed or determinable at the outset of the arrangement. Significant judgment is involved in making this assessment. As a standard business practice, we offer fixed-term license arrangements, which are generally payable on an annual basis. We cannot assert that the fees under our aspenONE licensing model and point product arrangements with Premier Plus SMS are fixed or determinable because of the rights provided to customers and economics of the arrangements and because we do not have an established history of collecting under the terms of these contracts without providing concessions to customers. As a result, the amount of revenue recognized for these arrangements is limited by the amount of customer payments that become due. Collection of fee is probable —We assess the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness, economic conditions in the customer's industry and geographic location, and general economic conditions. If in our judgment collection of a fee is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. Vendor-Specific Objective Evidence of Fair Value (VSOE) We have established VSOE for professional services and certain training offerings, but not for our software products or our SMS offerings. We assess VSOE for SMS, professional services, and training, based on an analysis of standalone sales of the offerings using the bell-shaped curve approach. We do not have a history of selling our Premier Plus SMS offering to customers on a standalone basis, and as a result are unable to establish VSOE for this deliverable. We allocate the arrangement consideration among the elements included in our multi-element arrangements using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met. If VSOE does not exist for an undelivered element in an arrangement, revenue is deferred until such evidence does exist for the undelivered elements, or until all elements are delivered, whichever is earlier. Subscription and Software Revenue Subscription and software revenue consists primarily of product and related revenue from our (i) aspenONE licensing model; (ii) point product arrangements with our Premier Plus SMS offering included for the contract term; and (iii) perpetual arrangements. When a customer elects to license our products under our aspenONE licensing model, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any new unspecified future software products and updates that may be introduced into the licensed aspenONE software suite. Due to our obligation to provide unspecified future software products and updates, we are required to recognize revenue ratably over the term of the arrangement, once the other revenue recognition criteria noted above have been met. Our point product arrangements with Premier Plus SMS include SMS for the term of the arrangement. Since we do not have VSOE for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable. As a result, revenue associated with point product arrangements with Premier Plus SMS included for the contract term is recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. Services and Other Revenue Professional Services Revenue Professional services are provided to customers on a time-and-materials (T&M) or fixed-price basis. We recognize professional services fees for our T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Revenue from fixed-price engagements is recognized using the proportional performance method based on the ratio of costs incurred to the total estimated project costs. Project costs are typically expensed as incurred. The use of the proportional performance method is dependent upon our ability to reliably estimate the costs to complete a project. We use historical experience as a basis for future estimates to complete current projects. Additionally, we believe that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue. In certain circumstances, professional services revenue may be recognized over a longer time period than the period over which the services are performed. If the costs to complete a project are not estimable or the completion is uncertain, the revenue is recognized upon completion of the services. In circumstances in which professional services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed, or (ii) the license term. When we provide professional services considered essential to the functionality of the software, we recognize the combined revenue from the sale of the software and related services using the completed contract or percentage-of-completion method. We have occasionally been required to commit unanticipated additional resources to complete projects, which resulted in losses on those contracts. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. Training Revenue We provide training services to our customers, including on-site, Internet-based, public and customized training. Revenue is recognized in the period in which the services are performed. In circumstances in which training services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed or (ii) the license term. Deferred Revenue Deferred revenue includes amounts billed or collected in advance of revenue recognition, including arrangements under the aspenONE licensing model, point product arrangements with Premier Plus SMS, professional services, and training. Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS, VSOE does not exist for the undelivered elements, and as a result, the arrangement fees are recognized ratably (i.e., on a subscription basis) over the term of the license. Deferred revenue is recorded as each invoice becomes due. Other Licensing Matters Our standard licensing agreements include a product warranty provision. We have not experienced significant claims related to software warranties beyond the scope of SMS support, which we are already obligated to provide, and consequently, we have not established reserves for warranty obligations. Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. As of September 30, 2016 and June 30, 2016 , we had not experienced any material losses related to these indemnification obligations and no claims with respect thereto were outstanding. We do not expect significant claims related to these indemnification obligations, and consequently, have not established any related reserves. (d) Loss Contingencies We accrue 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. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. Please refer to Note 16 for discussion of these matters and related liability accruals. (e) Foreign Currency Transactions Foreign currency exchange gains and losses generated from the settlement and remeasurement of transactions denominated in currencies other than the functional currency of our subsidiaries are recognized in our results of operations as incurred as a component of other income, net. Net foreign currency gains were $0.6 million and $0.9 million during the three-months ended September 30, 2016 and 2015 , respectively. (f) Research and Development Expense We charge 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. In the three months ended September 30, 2016 and September 30, 2015 , we acquired technology for $0.4 million and $0.3 million , respectively. At the time we acquired the technology, the projects to develop commercially available products did not meet the accounting definition of having reached technological feasibility and therefore the cost of the acquired technology was expensed as a research and development expense. (g) Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) , and requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We will adopt ASU No. 2014-09 during the first quarter of fiscal 2019. We are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The amendment provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for a cloud computing arrangement as a service contract. The amendment was effective for annual reporting periods beginning on or after December 15, 2015. We adopted ASU No. 2015-05 during the first quarter of fiscal 2017. The adoption of ASU No. 2015-05 did not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the amendment, lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendment identifies several areas for simplification applicable to entities that issue share-based payment awards to their employees, including income tax consequences, the option to recognize gross stock compensation expense with actual forfeitures recognized when they occur, and certain classifications on the statements of cash flows. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-09 on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The amendment changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) . The amendment updates the guidance as to how certain cash receipts and cash payments should be presented and classified, and is intended to reduce the existing diversity in practice. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-15 on our consolidated financial statements. |
Marketable Securities
Marketable Securities | 3 Months Ended |
Sep. 30, 2016 | |
Marketable Securities [Abstract] | |
Marketable Securities | Marketable Securities The following table summarizes the fair value, the amortized cost and unrealized holding gains (losses) on our marketable securities as of September 30, 2016 and June 30, 2016 : Fair Value Cost Unrealized Gains Unrealized Losses (Dollars in Thousands) September 30, 2016: U.S. corporate bonds $ 143,174 $ 143,215 $ — $ (41 ) Total short-term marketable securities $ 143,174 $ 143,215 $ — $ (41 ) June 30, 2016: U.S. corporate bonds $ 3,006 $ 3,006 $ — $ — Total short-term marketable securities $ 3,006 $ 3,006 $ — $ — Our marketable securities were classified as available-for-sale and reported at fair value on the unaudited consolidated balance sheets. Net unrealized gains (losses) were reported as a separate component of accumulated other comprehensive income, net of tax. Realized gains (losses) on investments were recognized in earnings as incurred. Our investments consisted primarily of investment grade fixed income corporate debt securities with maturity dates ranging from October 2016 through May 2017 as of September 30, 2016 and August 2016 as of June 30, 2016 . |
Fair Value
Fair Value | 3 Months Ended |
Sep. 30, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value We determine 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 we have 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 of $30.8 million and $286.2 million as of September 30, 2016 and June 30, 2016 , respectively, were reported at fair value utilizing quoted market prices in identical markets, or “Level 1 inputs.” Our cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. Marketable securities of $143.2 million and $3.0 million as of September 30, 2016 and June 30, 2016 , respectively, were reported at fair value calculated in accordance with the market approach, utilizing market consensus pricing models with quoted prices that were directly or indirectly observable, or “Level 2 inputs.” Financial instruments not measured or recorded at fair value in the accompanying unaudited consolidated financial statements consist of accounts receivable, installments receivable, accounts payable and accrued liabilities. The estimated fair value of these financial instruments approximates their carrying value. The estimated fair value of the borrowings under the Credit Agreement (described below in Note 11, Credit Agreement) approximates its carrying value due to the floating interest rate. |
Accounts Receivable
Accounts Receivable | 3 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts Receivable Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of September 30, 2016 and June 30, 2016 : Gross Allowance Net (Dollars in Thousands) September 30, 2016: Accounts receivable $ 23,155 $ 1,308 $ 21,847 $ 23,155 $ 1,308 $ 21,847 June 30, 2016: Accounts receivable $ 22,080 $ 1,604 $ 20,476 $ 22,080 $ 1,604 $ 20,476 As of September 30, 2016 , we had two customer receivable balances that individually represented approximately 22% and 13% of our total receivables. The balance that represented approximately 22% of our total receivables as of September 30, 2016 was collected subsequent to September 30, 2016 . |
Property and Equipment
Property and Equipment | 3 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property, equipment and leasehold improvements in the accompanying unaudited consolidated balance sheets consisted of the following: September 30, June 30, (Dollars in Thousands) Property, equipment and leasehold improvements - at cost: Computer equipment $ 10,590 $ 10,387 Purchased software 23,354 23,705 Furniture & fixtures 6,990 6,712 Leasehold improvements 13,122 12,523 Accumulated depreciation (38,290 ) (37,502 ) Property, equipment and leasehold improvements - net $ 15,766 $ 15,825 |
Acquisitions
Acquisitions | 3 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On October 26, 2016, we completed the acquisition of all the outstanding shares of Mtelligence Corporation (“Mtelligence”), a California-based provider of predictive and prescriptive maintenance software and related services used to optimize asset performance, for total cash consideration of $37.4 million . The purchase price consisted of $31.9 million of cash paid at closing and up to an additional $5.5 million to be held back until April 2018 as security for certain obligations of the Sellers. In August 2016, we acquired certain technology and trademarks for total cash consideration of $6.0 million . The purchase price consisted of $5.4 million of cash paid at closing and up to an additional $0.6 million to be paid in August 2017. The acquisition met the definition of a business combination as it contained inputs and processes that are capable of being operated as a business. The preliminary allocation of the purchase price as of September 30, 2016 allocated $4.0 million to developed technology and $2.0 million to goodwill. The fair value of the developed technology of $4.0 million was determined using the replacement cost approach. The developed technology is being amortized on a straight-line basis over its estimated useful life of 6 years . The acquisition is treated as an asset purchase for tax purposes and accordingly, the goodwill resulting from the acquisition is expected to be deductible. Fidelis Group, LLC In June 2016, we completed the acquisition of all the outstanding shares of Fidelis Group, LLC ("Fidelis"), a provider of asset reliability software used to predict and optimize asset performance. The purchase price consisted of $8.0 million of cash paid at closing and up to an additional $2.0 million to be paid in December 2017. A preliminary allocation of the purchase price is as follows. The valuation of the net assets acquired and the deferred tax liabilities, including adjustments identified subsequent to the acquisition date, are considered preliminary as of September 30, 2016. Amount (Dollars in Thousands) Tangible assets acquired, net $ 65 Identifiable intangible assets: Developed technology 1,272 Customer relationships 753 In-process research and development 3,097 Goodwill 6,706 Deferred tax liabilities, net (1,893 ) Total assets acquired $ 10,000 We used the income approach to determine the values of the identifiable intangible assets. The weighted-average discount rate (or rate of return) used to determine the value of the Fidelis intangible assets was 18% and the effective tax rate used was 34% . The values of the developed technology, in-process research and development and customer relationships are being amortized on a straight-line basis over their estimated useful lives of 10 years , 11 years and 8 years , respectively. The in-process research and development will begin amortization upon completion, which is expected in fiscal 2017. The goodwill, which is not deductible for tax purposes, reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Fidelis products and services to our existing customers. The results of operations of Fidelis have been included prospectively in our results of operations since the date of acquisition. |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. Intangible assets consist of the following as of September 30, 2016 and June 30, 2016 : Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in Thousands) September 30, 2016: Technology and patents $ 7,868 $ (2,628 ) $ 5,240 In process research & development 3,097 — $ 3,097 Customer relationships 753 (23 ) $ 730 Total $ 11,718 $ (2,651 ) $ 9,067 June 30, 2016: Technology and patents $ 3,696 $ (2,596 ) $ 1,100 In process research & development $ 3,200 $ — $ 3,200 Customer relationships $ 700 $ — $ 700 Total $ 7,596 $ (2,596 ) $ 5,000 Total amortization expense related to intangible assets is included in operating expenses and amounted to less than $0.1 million and $0.1 million for the three months ended September 30, 2016 and September 30, 2015 , respectively. Amortization expense is expected to be approximately $0.7 million in fiscal 2017 , $1.2 million in fiscal 2018 , $1.2 million in fiscal 2019 , $1.2 million in fiscal 2020 , $1.2 million in fiscal 2021 , and $3.6 million thereafter. |
Goodwill
Goodwill | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for our subscription and software reporting unit during the three months ended September 30, 2016 was as follows: Gross Carrying Amount Accumulated impairment losses Effect of currency translation Net Carrying Amount (Dollars in Thousands) Goodwill, net, at June 30, 2016 $ 89,007 $ (65,569 ) $ — $ 23,438 Goodwill from acquisition 2,000 — — 2,000 Subsequent Fidelis goodwill adjustment (78 ) — — (78 ) Foreign currency translation and other — — (82 ) (82 ) Goodwill, net, at September 30, 2016 $ 90,929 $ (65,569 ) $ (82 ) $ 25,278 No triggering events indicating goodwill impairment occurred during the three months ended September 30, 2016 . |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 3 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other current liabilities in the accompanying unaudited consolidated balance sheets consist of the following: September 30, June 30, (Dollars in Thousands) Royalties and outside commissions $ 2,657 $ 2,640 Payroll and payroll-related 11,247 17,809 Other 16,064 15,656 Total accrued expenses and other current liabilities $ 29,968 $ 36,105 Other non-current liabilities in the accompanying unaudited consolidated balance sheets consist of the following: September 30, June 30, (Dollars in Thousands) Deferred rent $ 6,516 $ 6,361 Uncertain tax positions 20,778 23,535 Other 6,473 2,695 Total other non-current liabilities $ 33,767 $ 32,591 |
Credit Agreement
Credit Agreement | 3 Months Ended |
Sep. 30, 2016 | |
Debt Disclosure [Abstract] | |
Credit Agreement | Credit Agreement On February 26, 2016, we entered into a $250.0 million Credit Agreement (the “Credit Agreement”) with JPMorgan Chase Bank, N.A., as administrative agent, Silicon Valley Bank, as syndication agent, and the lenders and other parties named therein (the “Lenders”). The indebtedness evidenced by the Credit Agreement matures on February 26, 2021. Prior to the maturity of the Credit Agreement, any amounts borrowed may be repaid and, subject to the terms and conditions of the Credit Agreement, borrowed again in whole or in part without penalty. As of September 30, 2016 , we had $140.0 million in outstanding borrowings under the Credit Agreement. Debt issuance costs related to the Credit Agreement were recorded in prepaid expenses and other current assets in our consolidated balance sheet. Borrowings under the Credit Agreement bear interest at a rate equal to either, at our option, the sum of (a) the highest of (1) the rate of interest publicly announced by JPMorgan Chase Bank, N.A. as its prime rate in effect, (2) the Federal Funds Effective Rate plus 0.5% , and (3) the one-month Adjusted LIBO Rate plus 1.0% , plus (b) a margin initially of 0.5% for the first full fiscal quarter ending after the date of the Credit Agreement and thereafter based on our Leverage Ratio; or the Adjusted LIBO Rate plus a margin initially of 1.5% for the first full fiscal quarter ending after the date of the Credit Agreement and thereafter based on our Leverage Ratio. We must also pay, on a quarterly basis, an unused commitment fee at a rate of between 0.2% and 0.3% per annum, based on our Leverage Ratio. The interest rate as of September 30, 2016 was 2.03% . All borrowings under the Credit Agreement are secured by liens on substantially all of our assets. The 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 Credit Agreement contains financial covenants regarding maintenance as of the end of each fiscal quarter, commencing with the quarter ending June 30, 2016, of a maximum Leverage Ratio of 3.0 to 1.0 and a minimum Interest Coverage Ratio of 3.0 to 1.0 . As of September 30, 2016 we were in compliance with these covenants. |
Stock-Based Compensation
Stock-Based Compensation | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The weighted average estimated fair value of option awards granted during the three months ended September 30, 2016 and 2015 was $12.96 and $13.59 , respectively. We utilized the Black-Scholes option valuation model with the following weighted average assumptions: Three Months Ended 2016 2015 Risk-free interest rate 1.1 % 1.4 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 4.6 4.6 Expected volatility factor 31.5 % 34.1 % The stock-based compensation expense and its classification in the unaudited consolidated statements of operations for the three months ended September 30, 2016 and 2015 are as follows: Three Months Ended 2016 2015 (Dollars in Thousands) Recorded as expenses: Cost of services and other $ 369 $ 357 Selling and marketing 955 912 Research and development 1,062 824 General and administrative 2,572 2,330 Total stock-based compensation $ 4,958 $ 4,423 A summary of stock option and RSU activity under all equity plans for the three months ended September 30, 2016 is as follows: Stock Options Restricted Stock Units Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in 000’s) Shares Weighted Average Grant Date Fair Value Outstanding at June 30, 2016 1,314,142 $ 32.47 7.23 $ 12,340 493,332 $ 41.06 Granted 451,877 45.43 399,684 45.44 Settled (RSUs) — (85,469 ) 41.86 Exercised (129,147 ) 24.34 — Cancelled / Forfeited (35,905 ) 38.62 (29,432 ) 42.25 Outstanding at September 30, 2016 1,600,967 $ 36.65 7.92 $ 16,242 778,115 $ 43.18 Vested and exercisable at September 30, 2016 793,402 $ 29.79 6.61 $ 13,493 — Vested and expected to vest as of September 30, 2016 1,518,819 $ 36.26 7.86 $ 16,001 695,341 $ 43.12 The weighted average grant-date fair value of RSUs granted during the three months ended September 30, 2016 and 2015 was $45.44 and $44.33 , respectively. During the three months ended September 30, 2016 and 2015 , the total fair value of shares vested from RSU grants was $4.0 million and $3.4 million , respectively. At September 30, 2016 , the total future unrecognized compensation cost related to stock options was $9.3 million and is expected to be recorded over a weighted average period of 3.1 years. At September 30, 2016 , the total future unrecognized compensation cost related to RSUs was $30.1 million and is expected to be recorded over a weighted average period of 3.1 years. The total intrinsic value of options exercised during the three months ended September 30, 2016 and 2015 was $2.7 million and $0.9 million , respectively. We received $3.1 million and $0.6 million in cash proceeds from option exercises during the three months ended September 30, 2016 and 2015 , respectively. We withheld $1.3 million and $1.1 million for withholding taxes on vested RSUs during the three months ended September 30, 2016 and 2015 , respectively. At September 30, 2016 , common stock reserved for future issuance or settlement under equity compensation plans was 5.1 million shares. |
Stockholders' Deficit
Stockholders' Deficit | 3 Months Ended |
Sep. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Deficit | Stockholders’ Deficit Stock Repurchases On January 28, 2015, our Board of Directors approved a share repurchase program for up to $450.0 million worth of our common stock. On April 26, 2016, the Board of Directors approved a $400.0 million increase in the share repurchase plan. The timing and amount of any shares repurchased are based on market conditions and other factors. All shares of our common stock repurchased have been recorded as treasury stock under the cost method. On August 29, 2016, as part of our common stock repurchase program, we entered into an accelerated share repurchase program (the "ASR Program") with a third-party financial institution. Pursuant to the terms of the ASR Program, we made an upfront payment of $100.0 million in exchange for an initial delivery of approximately 1.76 million shares of our common stock, representing 80% of the total shares ultimately expected to be delivered over the program's term. The initial shares received, which had an aggregate cost of $80.0 million based on the August 29, 2016 closing share price, were recorded as an increase to treasury stock. As of September 30, 2016 , $20.0 million , representing the difference between the upfront $100.0 million payment and the $80.0 million cost of the initial share delivery, was recorded as a reduction to additional paid-in capital in our consolidated balance sheet. At the ASR Program's conclusion, the financial institution may be required to deliver additional shares of common stock to us, or, under certain circumstances, we may be required to, at our election, deliver shares of our common stock or make a cash payment to the financial institution. Final settlement of the ASR Program is expected to occur during the second quarter of fiscal 2017, with the number of shares to be delivered, or the amount of any cash payment to be made, determined based on the volume-weighted average price per share of our common stock over the term of the ASR Program, less an agreed-upon discount. During the three months ended September 30, 2016 we repurchased 1,138,858 and 1,757,855 shares of our common stock for $50.0 million and $80.0 million in the open market and as part of the ASR Program, respectively. As of September 30, 2016 , the total remaining value under the share repurchase program approved on January 28, 2015 and amended on April 26, 2016 was approximately $371.3 million . Accumulated Other Comprehensive Income As of September 30, 2016 , accumulated other comprehensive income was comprised of foreign currency translation adjustments of $1.8 million and net unrealized losses on available for sale securities of less than $0.1 million . As of September 30, 2015 , accumulated other comprehensive income was comprised of foreign currency translation adjustments of $4.8 million and net unrealized gains on available for sale securities of less than $0.1 million . As of June 30, 2016 , accumulated other comprehensive income was comprised of foreign currency translation adjustments of $2.7 million and net unrealized losses on available for sale securities of less than $0.1 million . As of June 30, 2015 , accumulated other comprehensive income was comprised of foreign currency translation adjustments of $6.5 million and net unrealized losses on available for sale securities of less than $0.1 million . |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Sep. 30, 2016 | |
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. The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the three months ended September 30, 2016 and 2015 are as follows: Three Months Ended 2016 2015 (Dollars and Shares in Thousands, Except per Share Data) Net income $ 35,000 $ 36,771 Weighted average shares outstanding 79,048 83,876 Dilutive impact from: Share-based payment awards 337 444 Dilutive weighted average shares outstanding 79,385 84,320 Income per share Basic $ 0.44 $ 0.44 Dilutive $ 0.44 $ 0.44 For the three months ended September 30, 2016 and 2015 , certain employee equity awards were anti-dilutive based on the treasury stock method. Additionally, options to purchase 762,113 shares of our common stock were not included in the computation of dilutive weighted average shares outstanding, as of September 30, 2016 , because their exercise prices ranged from $44.38 per share to $47.40 per share and were greater than the average market price of our common stock during the periods then ended. These options were outstanding as of September 30, 2016 and expire at various dates through June 30, 2020. 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 September 30, 2016 and 2015 : Three Months Ended 2016 2015 (Shares in Thousands) Employee equity awards 1,535 1,187 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate for the periods presented was primarily the result of income earned in the U.S., taxed at U.S. federal and state statutory income tax rates, income earned in foreign tax jurisdictions taxed at the applicable rates, as well as the impact of permanent differences between book and tax income. Our effective tax rate for the three months ended September 30, 2016 was 36.1% as compared to 34.8% for the corresponding period of the prior fiscal year. Our effective tax rate increased for the three months ended September 30, 2016 compared to the same period in 2015 primarily due to an increase in the uncertain tax positions liability. During the three months ended September 30, 2016 and 2015 , our income tax expense was driven primarily by pre-tax profitability in our domestic and foreign operations, the impact of permanent items, and an increase in the uncertain tax positions liability mentioned above. The permanent items are predominantly a U.S. domestic production activity deduction being slightly offset by non-deductible stock-based compensation expense. We use the “with and without” ordering approach to calculate our tax provision when necessary. This methodology requires us to utilize all other tax attributes before recognizing excess tax benefits. Excess tax benefits are generated when the deductible value of stock-based compensation for income tax purposes exceeds the value recognized for financial statement purposes. Excess tax benefits are not included as a component of deferred tax assets. When realized, excess tax benefits reduce income taxes payable and increase additional paid in capital. In our unaudited consolidated statements of cash flows, the excess tax benefits of $0.6 million and $1.6 million were reported as sources of cash flows from financing activities with offsetting reductions to cash flows from operating activities during the three months ended September 30, 2016 and 2015 , respectively. 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. We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest those earnings 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 our consolidated financial position or results of operations. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We lease certain facilities under non-cancellable operating leases with terms in excess of one year . Rental expense on leased facilities under operating leases was approximately $2.2 million and $2.1 million during the three months ended September 30, 2016 and 2015 , respectively. Standby letters of credit for $3.0 million as of September 30, 2016 secure our performance on professional services contracts, certain facility leases and potential liabilities. This is a decrease from $3.5 million as of June 30, 2016 . The letters of credit expire at various dates through fiscal 2018. Legal Matters In the ordinary course of business, we are, from time to time, involved in lawsuits, claims, investigations, proceedings and threats of litigation. These matters include an April 2004 claim by a customer that certain of our software products and implementation services failed to meet the customer's expectations. In March 2014, a judgment was issued by the trial court against us in the amount of approximately 1.9 million Euro (“€”) plus interest and a portion of legal fees. We subsequently filed an appeal of that judgment. As of September 2016 , the appellate court determined that we are liable for damages in the amount of approximately €1.7 million plus interest, with the possibility of additional damages to be determined in further proceedings by the appellate court. While the outcome of the proceedings and claims referenced above cannot be predicted with certainty, there were no such matters, as of September 30, 2016 that, in the opinion of management, are reasonably possible to have a material adverse effect on our financial position, results of operations or cash flows. Liabilities, if applicable, related to the aforementioned matters discussed in this Note have been included in our accrued liabilities at September 30, 2016 , and are not material to our financial position for the period then ended. As of September 30, 2016 , we do not believe that there is a reasonable possibility of a material loss exceeding the amounts already accrued for the proceedings or matters discussed above. However, the results of litigation (including the above-referenced appeal) and claims cannot be predicted with certainty; unfavorable resolutions are possible and could materially affect our results of operations, cash flows or financial position. In addition, regardless of the outcome, litigation could have an adverse impact on us because of attorneys' fees and costs, diversion of management resources and other factors. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | Segment 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. Our chief operating decision maker is our President and Chief Executive Officer. The subscription and software segment is engaged in the licensing of process optimization software solutions and associated support services. The services segment includes professional services and training. We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments. The following table presents a summary of our reportable segments’ profits: Subscription and software Services Total (Dollars in Thousands) Three Months Ended September 30, 2016 Segment revenue $ 113,444 $ 6,606 $ 120,050 Segment expenses (1) (45,726 ) (6,437 ) (52,163 ) Segment profit $ 67,718 $ 169 $ 67,887 Three Months Ended September 30, 2015 Segment revenue $ 111,859 $ 8,437 $ 120,296 Segment expenses (1) (44,275 ) (7,730 ) (52,005 ) Segment profit $ 67,584 $ 707 $ 68,291 (1) Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing, research and development, stock-based compensation and certain corporate expenses incurred in support of the segments. Segment expenses do not include allocations of general and administrative; interest income, net; and other income, net. Reconciliation to Income before Income Taxes The following table presents a reconciliation of total segment profit to income before income taxes for the three months ended September 30, 2016 and 2015 : Three Months Ended 2016 2015 (Dollars in Thousands) Total segment profit for reportable segments $ 67,887 $ 68,291 General and administrative (13,157 ) (12,862 ) Other income, net 646 896 Interest income (expense), net (597 ) 81 Income before income taxes $ 54,779 $ 56,406 |
Significant Accounting Polici25
Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Revenue Recognition | Revenue Recognition We generate revenue from the following sources: (1) Subscription and software revenue; and (2) Services and other revenue. We sell our software products to end users primarily under fixed-term licenses. We license our software products primarily through a subscription offering which we refer to as our aspenONE licensing model. Our aspenONE products are organized into two suites: 1) engineering and 2) manufacturing and supply chain, or MSC. The aspenONE licensing model provides customers with access to all of the products within the aspenONE suite(s) they license. We refer to these arrangements as token arrangements. Tokens are fixed units of measure. The amount of software usage is limited by the number of tokens purchased by the customer. We also license our software through point product term arrangements, which include software maintenance and support, known as our Premier Plus SMS offering, for the entire term, as well as perpetual license arrangements. Four basic criteria must be satisfied before software license revenue can be recognized: persuasive evidence of an arrangement between us and an end user; delivery of our product has occurred; the fee for the product is fixed or determinable; and collection of the fee is probable. Persuasive evidence of an arrangement —We use a signed contract as evidence of an arrangement for software licenses and SMS. For professional services we use a signed contract and a work proposal to evidence an arrangement. In cases where both a signed contract and a purchase order are required by the customer, we consider both taken together as evidence of the arrangement. Delivery of our product —Software and the corresponding access keys are generally delivered to customers via electronic delivery or via physical medium with standard shipping terms of Free Carrier, our warehouse (i.e., FCA, named place). Our software license agreements do not contain conditions for acceptance. Fee is fixed or determinable —We assess whether a fee is fixed or determinable at the outset of the arrangement. Significant judgment is involved in making this assessment. As a standard business practice, we offer fixed-term license arrangements, which are generally payable on an annual basis. We cannot assert that the fees under our aspenONE licensing model and point product arrangements with Premier Plus SMS are fixed or determinable because of the rights provided to customers and economics of the arrangements and because we do not have an established history of collecting under the terms of these contracts without providing concessions to customers. As a result, the amount of revenue recognized for these arrangements is limited by the amount of customer payments that become due. Collection of fee is probable —We assess the probability of collecting from each customer at the outset of the arrangement based on a number of factors, including the customer's payment history, its current creditworthiness, economic conditions in the customer's industry and geographic location, and general economic conditions. If in our judgment collection of a fee is not probable, revenue is recognized as cash is collected, provided all other conditions for revenue recognition have been met. Vendor-Specific Objective Evidence of Fair Value (VSOE) We have established VSOE for professional services and certain training offerings, but not for our software products or our SMS offerings. We assess VSOE for SMS, professional services, and training, based on an analysis of standalone sales of the offerings using the bell-shaped curve approach. We do not have a history of selling our Premier Plus SMS offering to customers on a standalone basis, and as a result are unable to establish VSOE for this deliverable. We allocate the arrangement consideration among the elements included in our multi-element arrangements using the residual method. Under the residual method, the VSOE of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue upon delivery of the software, assuming all other revenue recognition criteria are met. If VSOE does not exist for an undelivered element in an arrangement, revenue is deferred until such evidence does exist for the undelivered elements, or until all elements are delivered, whichever is earlier. Subscription and Software Revenue Subscription and software revenue consists primarily of product and related revenue from our (i) aspenONE licensing model; (ii) point product arrangements with our Premier Plus SMS offering included for the contract term; and (iii) perpetual arrangements. When a customer elects to license our products under our aspenONE licensing model, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any new unspecified future software products and updates that may be introduced into the licensed aspenONE software suite. Due to our obligation to provide unspecified future software products and updates, we are required to recognize revenue ratably over the term of the arrangement, once the other revenue recognition criteria noted above have been met. Our point product arrangements with Premier Plus SMS include SMS for the term of the arrangement. Since we do not have VSOE for our Premier Plus SMS offering, the SMS element of our point product arrangements is not separable. As a result, revenue associated with point product arrangements with Premier Plus SMS included for the contract term is recognized ratably over the term of the arrangement, once the other revenue recognition criteria have been met. Services and Other Revenue Professional Services Revenue Professional services are provided to customers on a time-and-materials (T&M) or fixed-price basis. We recognize professional services fees for our T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Revenue from fixed-price engagements is recognized using the proportional performance method based on the ratio of costs incurred to the total estimated project costs. Project costs are typically expensed as incurred. The use of the proportional performance method is dependent upon our ability to reliably estimate the costs to complete a project. We use historical experience as a basis for future estimates to complete current projects. Additionally, we believe that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue. In certain circumstances, professional services revenue may be recognized over a longer time period than the period over which the services are performed. If the costs to complete a project are not estimable or the completion is uncertain, the revenue is recognized upon completion of the services. In circumstances in which professional services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed, or (ii) the license term. When we provide professional services considered essential to the functionality of the software, we recognize the combined revenue from the sale of the software and related services using the completed contract or percentage-of-completion method. We have occasionally been required to commit unanticipated additional resources to complete projects, which resulted in losses on those contracts. Provisions for estimated losses on contracts are made during the period in which such losses become probable and can be reasonably estimated. Training Revenue We provide training services to our customers, including on-site, Internet-based, public and customized training. Revenue is recognized in the period in which the services are performed. In circumstances in which training services are sold as a single arrangement with, or in contemplation of, a new aspenONE license or point product arrangement with Premier Plus SMS, revenue is deferred and recognized on a ratable basis over the longer of (i) the period the services are performed or (ii) the license term. Deferred Revenue Deferred revenue includes amounts billed or collected in advance of revenue recognition, including arrangements under the aspenONE licensing model, point product arrangements with Premier Plus SMS, professional services, and training. Under the aspenONE licensing model and for point product arrangements with Premier Plus SMS, VSOE does not exist for the undelivered elements, and as a result, the arrangement fees are recognized ratably (i.e., on a subscription basis) over the term of the license. Deferred revenue is recorded as each invoice becomes due. Other Licensing Matters Our standard licensing agreements include a product warranty provision. We have not experienced significant claims related to software warranties beyond the scope of SMS support, which we are already obligated to provide, and consequently, we have not established reserves for warranty obligations. Our agreements with our customers generally require us to indemnify the customer against claims that our software infringes third-party patent, copyright, trademark or other proprietary rights. Such indemnification obligations are generally limited in a variety of industry-standard respects, including our right to replace an infringing product. As of September 30, 2016 and June 30, 2016 , we had not experienced any material losses related to these indemnification obligations and no claims with respect thereto were outstanding. We do not expect significant claims related to these indemnification obligations, and consequently, have not established any related reserves. |
Loss Contingencies | Loss Contingencies We accrue 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. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria. Please refer to Note 16 for discussion of these matters and related liability accruals. |
Foreign Currency Transactions | Foreign Currency Transactions Foreign currency exchange gains and losses generated from the settlement and remeasurement of transactions denominated in currencies other than the functional currency of our subsidiaries are recognized in our results of operations as incurred as a component of other income, net. Net foreign currency gains were $0.6 million and $0.9 million during the three-months ended September 30, 2016 and 2015 , respectively. |
Research and Development Expense | Research and Development Expense We charge 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. In the three months ended September 30, 2016 and September 30, 2015 , we acquired technology for $0.4 million and $0.3 million , respectively. At the time we acquired the technology, the projects to develop commercially available products did not meet the accounting definition of having reached technological feasibility and therefore the cost of the acquired technology was expensed as a research and development expense. |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 supersedes the revenue recognition requirements in Revenue Recognition (Topic 605) , and requires entities to recognize revenue when they transfer promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled to in exchange for those goods or services. As currently issued and amended, ASU 2014-09 is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, though early adoption is permitted for annual reporting periods beginning after December 15, 2016. We will adopt ASU No. 2014-09 during the first quarter of fiscal 2019. We are currently evaluating the impact of ASU No. 2014-09 on our consolidated financial statements, implementing accounting system changes related to the adoption, and considering additional disclosure requirements. In April 2015, the FASB issued ASU No. 2015-05, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Fees Paid in a Cloud Computing Arrangement . The amendment provides guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If the arrangement does not include a software license, the customer should account for a cloud computing arrangement as a service contract. The amendment was effective for annual reporting periods beginning on or after December 15, 2015. We adopted ASU No. 2015-05 during the first quarter of fiscal 2017. The adoption of ASU No. 2015-05 did not have a material impact on our consolidated financial position, results of operations or cash flows. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) . Under the amendment, lessees will be required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-02 on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting . The amendment identifies several areas for simplification applicable to entities that issue share-based payment awards to their employees, including income tax consequences, the option to recognize gross stock compensation expense with actual forfeitures recognized when they occur, and certain classifications on the statements of cash flows. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2016. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-09 on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses (Topic 326). The amendment changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, held-to-maturity debt securities, loans, and other instruments. For available-for-sale debt securities with unrealized losses, the losses will be recognized as allowances rather than as reductions in the amortized cost of the securities. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-13 on our consolidated financial statements. In August 2016, the FASB issued ASU No. 2016-15, Statement of Cash Flows (Topic 230) . The amendment updates the guidance as to how certain cash receipts and cash payments should be presented and classified, and is intended to reduce the existing diversity in practice. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We are currently evaluating the impact of ASU No. 2016-15 on our consolidated financial statements. |
Intangible Assets (Policies)
Intangible Assets (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use. Intangible assets consist of the following as of September 30, 2016 and June 30, 2016 : Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in Thousands) September 30, 2016: Technology and patents $ 7,868 $ (2,628 ) $ 5,240 In process research & development 3,097 — $ 3,097 Customer relationships 753 (23 ) $ 730 Total $ 11,718 $ (2,651 ) $ 9,067 June 30, 2016: Technology and patents $ 3,696 $ (2,596 ) $ 1,100 In process research & development $ 3,200 $ — $ 3,200 Customer relationships $ 700 $ — $ 700 Total $ 7,596 $ (2,596 ) $ 5,000 Total amortization expense related to intangible assets is included in operating expenses and amounted to less than $0.1 million and $0.1 million for the three months ended September 30, 2016 and September 30, 2015 , respectively. Amortization expense is expected to be approximately $0.7 million in fiscal 2017 , $1.2 million in fiscal 2018 , $1.2 million in fiscal 2019 , $1.2 million in fiscal 2020 , $1.2 million in fiscal 2021 , and $3.6 million thereafter. |
Goodwill Goodwill (Policies)
Goodwill Goodwill (Policies) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | The changes in the carrying amount of goodwill for our subscription and software reporting unit during the three months ended September 30, 2016 was as follows: Gross Carrying Amount Accumulated impairment losses Effect of currency translation Net Carrying Amount (Dollars in Thousands) Goodwill, net, at June 30, 2016 $ 89,007 $ (65,569 ) $ — $ 23,438 Goodwill from acquisition 2,000 — — 2,000 Subsequent Fidelis goodwill adjustment (78 ) — — (78 ) Foreign currency translation and other — — (82 ) (82 ) Goodwill, net, at September 30, 2016 $ 90,929 $ (65,569 ) $ (82 ) $ 25,278 No triggering events indicating goodwill impairment occurred during the three months ended September 30, 2016 . |
Marketable Securities (Tables)
Marketable Securities (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Marketable Securities [Abstract] | |
Summary of the fair value, the amortized cost and unrealized holding gains (losses) on marketable securities | The following table summarizes the fair value, the amortized cost and unrealized holding gains (losses) on our marketable securities as of September 30, 2016 and June 30, 2016 : Fair Value Cost Unrealized Gains Unrealized Losses (Dollars in Thousands) September 30, 2016: U.S. corporate bonds $ 143,174 $ 143,215 $ — $ (41 ) Total short-term marketable securities $ 143,174 $ 143,215 $ — $ (41 ) June 30, 2016: U.S. corporate bonds $ 3,006 $ 3,006 $ — $ — Total short-term marketable securities $ 3,006 $ 3,006 $ — $ — |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net allowance for doubtful accounts | Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of September 30, 2016 and June 30, 2016 : Gross Allowance Net (Dollars in Thousands) September 30, 2016: Accounts receivable $ 23,155 $ 1,308 $ 21,847 $ 23,155 $ 1,308 $ 21,847 June 30, 2016: Accounts receivable $ 22,080 $ 1,604 $ 20,476 $ 22,080 $ 1,604 $ 20,476 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, equipment and leasehold improvements | Property, equipment and leasehold improvements in the accompanying unaudited consolidated balance sheets consisted of the following: September 30, June 30, (Dollars in Thousands) Property, equipment and leasehold improvements - at cost: Computer equipment $ 10,590 $ 10,387 Purchased software 23,354 23,705 Furniture & fixtures 6,990 6,712 Leasehold improvements 13,122 12,523 Accumulated depreciation (38,290 ) (37,502 ) Property, equipment and leasehold improvements - net $ 15,766 $ 15,825 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Business Combinations [Abstract] | |
Schedule of recognized identified assets acquired and liabilities assumed | A preliminary allocation of the purchase price is as follows. The valuation of the net assets acquired and the deferred tax liabilities, including adjustments identified subsequent to the acquisition date, are considered preliminary as of September 30, 2016. Amount (Dollars in Thousands) Tangible assets acquired, net $ 65 Identifiable intangible assets: Developed technology 1,272 Customer relationships 753 In-process research and development 3,097 Goodwill 6,706 Deferred tax liabilities, net (1,893 ) Total assets acquired $ 10,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets consist of the following as of September 30, 2016 and June 30, 2016 : Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in Thousands) September 30, 2016: Technology and patents $ 7,868 $ (2,628 ) $ 5,240 In process research & development 3,097 — $ 3,097 Customer relationships 753 (23 ) $ 730 Total $ 11,718 $ (2,651 ) $ 9,067 June 30, 2016: Technology and patents $ 3,696 $ (2,596 ) $ 1,100 In process research & development $ 3,200 $ — $ 3,200 Customer relationships $ 700 $ — $ 700 Total $ 7,596 $ (2,596 ) $ 5,000 |
Goodwill (Tables)
Goodwill (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in carrying amount of goodwill by reporting unit | The changes in the carrying amount of goodwill for our subscription and software reporting unit during the three months ended September 30, 2016 was as follows: Gross Carrying Amount Accumulated impairment losses Effect of currency translation Net Carrying Amount (Dollars in Thousands) Goodwill, net, at June 30, 2016 $ 89,007 $ (65,569 ) $ — $ 23,438 Goodwill from acquisition 2,000 — — 2,000 Subsequent Fidelis goodwill adjustment (78 ) — — (78 ) Foreign currency translation and other — — (82 ) (82 ) Goodwill, net, at September 30, 2016 $ 90,929 $ (65,569 ) $ (82 ) $ 25,278 |
Accrued Expenses and Other Li34
Accrued Expenses and Other Liabilities (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of accrued expenses and other current liabilities | Accrued expenses and other current liabilities in the accompanying unaudited consolidated balance sheets consist of the following: September 30, June 30, (Dollars in Thousands) Royalties and outside commissions $ 2,657 $ 2,640 Payroll and payroll-related 11,247 17,809 Other 16,064 15,656 Total accrued expenses and other current liabilities $ 29,968 $ 36,105 |
Schedule of other non-current liabilities | Other non-current liabilities in the accompanying unaudited consolidated balance sheets consist of the following: September 30, June 30, (Dollars in Thousands) Deferred rent $ 6,516 $ 6,361 Uncertain tax positions 20,778 23,535 Other 6,473 2,695 Total other non-current liabilities $ 33,767 $ 32,591 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of weighted average assumptions | We utilized the Black-Scholes option valuation model with the following weighted average assumptions: Three Months Ended 2016 2015 Risk-free interest rate 1.1 % 1.4 % Expected dividend yield 0.0 % 0.0 % Expected life (in years) 4.6 4.6 Expected volatility factor 31.5 % 34.1 % |
Schedule of stock-based compensation expense | The stock-based compensation expense and its classification in the unaudited consolidated statements of operations for the three months ended September 30, 2016 and 2015 are as follows: Three Months Ended 2016 2015 (Dollars in Thousands) Recorded as expenses: Cost of services and other $ 369 $ 357 Selling and marketing 955 912 Research and development 1,062 824 General and administrative 2,572 2,330 Total stock-based compensation $ 4,958 $ 4,423 |
Schedule of stock option and RSU activity | A summary of stock option and RSU activity under all equity plans for the three months ended September 30, 2016 is as follows: Stock Options Restricted Stock Units Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in 000’s) Shares Weighted Average Grant Date Fair Value Outstanding at June 30, 2016 1,314,142 $ 32.47 7.23 $ 12,340 493,332 $ 41.06 Granted 451,877 45.43 399,684 45.44 Settled (RSUs) — (85,469 ) 41.86 Exercised (129,147 ) 24.34 — Cancelled / Forfeited (35,905 ) 38.62 (29,432 ) 42.25 Outstanding at September 30, 2016 1,600,967 $ 36.65 7.92 $ 16,242 778,115 $ 43.18 Vested and exercisable at September 30, 2016 793,402 $ 29.79 6.61 $ 13,493 — Vested and expected to vest as of September 30, 2016 1,518,819 $ 36.26 7.86 $ 16,001 695,341 $ 43.12 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Earnings Per Share [Abstract] | |
Schedule of calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding | The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the three months ended September 30, 2016 and 2015 are as follows: Three Months Ended 2016 2015 (Dollars and Shares in Thousands, Except per Share Data) Net income $ 35,000 $ 36,771 Weighted average shares outstanding 79,048 83,876 Dilutive impact from: Share-based payment awards 337 444 Dilutive weighted average shares outstanding 79,385 84,320 Income per share Basic $ 0.44 $ 0.44 Dilutive $ 0.44 $ 0.44 |
Schedule of employee equity awards excluded from the calculation of dilutive weighted average shares outstanding | 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 September 30, 2016 and 2015 : Three Months Ended 2016 2015 (Shares in Thousands) Employee equity awards 1,535 1,187 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2016 | |
Segment Reporting [Abstract] | |
Summary of reportable segments' profits | The following table presents a summary of our reportable segments’ profits: Subscription and software Services Total (Dollars in Thousands) Three Months Ended September 30, 2016 Segment revenue $ 113,444 $ 6,606 $ 120,050 Segment expenses (1) (45,726 ) (6,437 ) (52,163 ) Segment profit $ 67,718 $ 169 $ 67,887 Three Months Ended September 30, 2015 Segment revenue $ 111,859 $ 8,437 $ 120,296 Segment expenses (1) (44,275 ) (7,730 ) (52,005 ) Segment profit $ 67,584 $ 707 $ 68,291 (1) Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing, research and development, stock-based compensation and certain corporate expenses incurred in support of the segments. Segment expenses do not include allocations of general and administrative; interest income, net; and other income, net. |
Schedule of reconciliation of total segment operating profit to income before income taxes | The following table presents a reconciliation of total segment profit to income before income taxes for the three months ended September 30, 2016 and 2015 : Three Months Ended 2016 2015 (Dollars in Thousands) Total segment profit for reportable segments $ 67,887 $ 68,291 General and administrative (13,157 ) (12,862 ) Other income, net 646 896 Interest income (expense), net (597 ) 81 Income before income taxes $ 54,779 $ 56,406 |
Significant Accounting Polici38
Significant Accounting Policies - Revenue Recognition and Other Licensing Matters (Details) - claims | Sep. 30, 2016 | Jun. 30, 2016 |
Other Licensing Matters | ||
Number of claims outstanding | 0 | 0 |
Significant Accounting Polici39
Significant Accounting Policies - Foreign Currency Transactions (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Other income (expense), net | ||
Foreign Currency Transactions | ||
Foreign currency transaction and remeasurement gains (losses) | $ 0.6 | $ 0.9 |
Significant Accounting Polici40
Significant Accounting Policies - Research and Development Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Accounting Policies [Abstract] | ||
Research and development expense | $ 0.4 | $ 0.3 |
Marketable Securities - Fair Va
Marketable Securities - Fair Value, Amortized Cost and Unrealized Holding Gains (Losses) (Details) - Short-term marketable securities - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Marketable Securities | ||
Fair Value | $ 143,174 | $ 3,006 |
Cost | 143,215 | 3,006 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | (41) | 0 |
U.S. corporate bonds | ||
Marketable Securities | ||
Fair Value | 143,174 | 3,006 |
Cost | 143,215 | 3,006 |
Unrealized Gains | 0 | 0 |
Unrealized Losses | $ (41) | $ 0 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 |
Level 1 Inputs | ||
Fair Value | ||
Cash equivalents | $ 30.8 | $ 286.2 |
Level 2 Inputs | U.S. corporate bonds | ||
Fair Value | ||
Marketable securities | $ 143.2 | $ 3 |
Accounts Receivable - Schedule
Accounts Receivable - Schedule of Accounts Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Accounts Receivable | ||
Account receivable, Gross | $ 23,155 | $ 22,080 |
Account receivable, Allowance | 1,308 | 1,604 |
Account receivable, Net | $ 21,847 | $ 20,476 |
Accounts Receivable (Details)
Accounts Receivable (Details) - Accounts Receivable - Customer Concentration Risk | 3 Months Ended |
Sep. 30, 2016customer | |
Concentration Risk [Line Items] | |
Number of customers | 2 |
Customer One | |
Concentration Risk [Line Items] | |
Percentage of total accounts receivables | 22.00% |
Customer Two | |
Concentration Risk [Line Items] | |
Percentage of total accounts receivables | 13.00% |
Property and Equipment - Proper
Property and Equipment - Property, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (38,290) | $ (37,502) |
Property, equipment and leasehold improvements - net | 15,766 | 15,825 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 10,590 | 10,387 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 23,354 | 23,705 |
Furniture & fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 6,990 | 6,712 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | $ 13,122 | $ 12,523 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Oct. 26, 2016 | Aug. 31, 2016 | Jun. 30, 2016 | Sep. 30, 2016 | Sep. 30, 2015 |
Business Acquisition [Line Items] | |||||
Cash paid | $ 5,400 | $ 0 | |||
Goodwill | $ 23,438 | $ 25,278 | |||
Effective income tax rate (as a percent) | 36.10% | 34.80% | |||
Acquisition of Technology and Trademarks | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 6,000 | ||||
Cash paid | 5,400 | ||||
Future contingent consideration payment | 600 | ||||
Goodwill | $ 2,000 | ||||
Finite-lived intangible asset, useful life | 6 years | ||||
Fidelis Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Cash paid | 8,000 | ||||
Future contingent consideration payment | $ 2,000 | ||||
Goodwill | $ 6,706 | ||||
Weighted average discount rate (as a percent) | 18.00% | ||||
Effective income tax rate (as a percent) | 34.00% | ||||
Developed Technology Rights | Acquisition of Technology and Trademarks | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | $ 4,000 | ||||
Developed Technology Rights | Fidelis Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | $ 1,272 | ||||
Finite-lived intangible asset, useful life | 10 years | ||||
In Process Research and Development | Fidelis Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | $ 3,097 | ||||
Finite-lived intangible asset, useful life | 11 years | ||||
Customer Relationship | Fidelis Group, LLC | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | $ 753 | ||||
Finite-lived intangible asset, useful life | 8 years | ||||
Subsequent Event | Mtelligence Corporation | |||||
Business Acquisition [Line Items] | |||||
Consideration transferred | $ 37,400 | ||||
Cash paid | 31,900 | ||||
Future contingent consideration payment | $ 5,500 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Business Acquisition [Line Items] | ||
Goodwill | $ 25,278 | $ 23,438 |
Fidelis Group, LLC | ||
Business Acquisition [Line Items] | ||
Tangible assets acquired, net | 65 | |
Goodwill | 6,706 | |
Deferred tax liabilities, net | (1,893) | |
Total assets acquired | 10,000 | |
Developed Technology Rights | Fidelis Group, LLC | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | 1,272 | |
Customer Relationship | Fidelis Group, LLC | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | 753 | |
In Process Research and Development | Fidelis Group, LLC | ||
Business Acquisition [Line Items] | ||
Finite-lived intangible assets acquired | $ 3,097 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 11,718 | $ 7,596 |
Accumulated Amortization | (2,651) | (2,596) |
Net Carrying Amount | 9,067 | 5,000 |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 7,868 | 3,696 |
Accumulated Amortization | (2,628) | (2,596) |
Net Carrying Amount | 5,240 | 1,100 |
In process research & development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,097 | 3,200 |
Accumulated Amortization | 0 | 0 |
Net Carrying Amount | 3,097 | 3,200 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 753 | 700 |
Accumulated Amortization | (23) | 0 |
Net Carrying Amount | $ 730 | $ 700 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible asset amortization expense | $ 0.1 | $ 0.1 |
Amortization expense - 2017 | 0.7 | |
Amortization expense - 2018 | 1.2 | |
Amortization expense - 2019 | 1.2 | |
Amortization expense - 2020 | 1.2 | |
Amortization expense - 2021 | 1.2 | |
Amortization expense - Thereafter | $ 3.6 |
Goodwill - Goodwill, Net (Detai
Goodwill - Goodwill, Net (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2016USD ($) | |
Goodwill: | |
Goodwill, net, beginning balance | $ 23,438 |
Goodwill, net, ending balance | 25,278 |
Subscription and software | |
Goodwill: | |
Goodwill, gross, beginning balance | 89,007 |
Accumulated impairment losses, beginning balance | (65,569) |
Goodwill, net, beginning balance | 23,438 |
Acquisition | 2,000 |
Goodwill, Purchase Accounting Adjustments | (78) |
Effect of currency translation | (82) |
Goodwill, gross, ending balance | 90,929 |
Accumulated impairment losses, ending balance | (65,569) |
Goodwill, net, ending balance | $ 25,278 |
Goodwill - Impairment Loss (Det
Goodwill - Impairment Loss (Details) | 3 Months Ended |
Sep. 30, 2016event | |
Goodwill: | |
Number of triggering events indicating goodwill impairment occurred | 0 |
Accrued Expenses and Other Li52
Accrued Expenses and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Accrued expenses and other current liabilities | ||
Royalties and outside commissions | $ 2,657 | $ 2,640 |
Payroll and payroll-related | 11,247 | 17,809 |
Other | 16,064 | 15,656 |
Total accrued expenses and other current liabilities | $ 29,968 | $ 36,105 |
Accrued Expenses and Other Li53
Accrued Expenses and Other Liabilities - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2016 | Jun. 30, 2016 |
Other non-current liabilities | ||
Deferred rent | $ 6,516 | $ 6,361 |
Uncertain tax positions | 20,778 | 23,535 |
Other | 6,473 | 2,695 |
Total other non-current liabilities | $ 33,767 | $ 32,591 |
Credit Agreement (Details)
Credit Agreement (Details) | Feb. 26, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) |
Credit Agreement | |||
Amount outstanding | $ 140,000,000 | $ 140,000,000 | |
Line of Credit | Credit Agreement | |||
Credit Agreement | |||
Principal amount | $ 250,000,000 | ||
Amount outstanding | $ 140,000,000 | ||
Margin rate (as a percent) | 0.50% | ||
Effective interest rate (as a percent) | 2.03% | ||
Maximum leverage ratio | 3 | ||
Minimum interest coverage ratio | 3 | ||
Line of Credit | Credit Agreement | Minimum | |||
Credit Agreement | |||
Commitment fee percentage (as a percent) | 0.20% | ||
Line of Credit | Credit Agreement | Maximum | |||
Credit Agreement | |||
Commitment fee percentage (as a percent) | 0.30% | ||
Line of Credit | Credit Agreement | Federal Funds Effective Rate | |||
Credit Agreement | |||
Variable rate spread (as a percent) | 0.50% | ||
Line of Credit | Credit Agreement | Adjusted LIBOR | |||
Credit Agreement | |||
Variable rate spread (as a percent) | 1.00% | ||
Margin rate (as a percent) | 1.50% |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Restricted Stock Units | ||
Stock-based compensation, additional disclosures | ||
Weighted average grant-date fair value of RSUs granted | $ 45.44 | $ 44.33 |
Total fair value of shares vested from RSU grants | $ 4 | $ 3.4 |
Total unrecognized compensation cost | $ 30.1 | |
Total unrecognized compensation cost, period of recognition | 3 years 22 days | |
Excess tax benefits from stock-based compensation | $ 1.3 | $ 1.1 |
Stock Options | ||
Stock-based compensation, additional disclosures | ||
Weighted average fair value (in dollars per share) | $ 12.96 | $ 13.59 |
Total unrecognized compensation cost | $ 9.3 | |
Total unrecognized compensation cost, period of recognition | 3 years 1 month 7 days | |
Total intrinsic value of options exercised | $ 2.7 | $ 0.9 |
Cash proceeds from option exercises | $ 3.1 | $ 0.6 |
2010 Plan | ||
Stock-based compensation, additional disclosures | ||
Common stock reserved for future issuance or settlement (in shares) | 5,100,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock-Based Compensation Accounting (Details) - Stock Options - $ / shares | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Stock-Based Compensation Accounting | ||
Weighted average fair value (in dollars per share) | $ 12.96 | $ 13.59 |
Risk-free interest rate (as a percent) | 1.10% | 1.40% |
Expected dividend yield (as a percent) | 0.00% | 0.00% |
Expected life (in years) | 4 years 7 months 6 days | 4 years 7 months 6 days |
Expected volatility factor (as a percent) | 31.50% | 34.10% |
Stock-Based Compensation - St57
Stock-Based Compensation - Stock-Based Compensation Expense and its Classification in the Consolidated Statements of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Recorded as expenses: | ||
Total stock-based compensation | $ 4,958 | $ 4,423 |
Cost of services and other | ||
Recorded as expenses: | ||
Total stock-based compensation | 369 | 357 |
Selling and marketing | ||
Recorded as expenses: | ||
Total stock-based compensation | 955 | 912 |
Research and development | ||
Recorded as expenses: | ||
Total stock-based compensation | 1,062 | 824 |
General and administrative | ||
Recorded as expenses: | ||
Total stock-based compensation | $ 2,572 | $ 2,330 |
Stock-Based Compensation - St58
Stock-Based Compensation - Stock Option Activity (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2016 | Jun. 30, 2016 | |
Stock options activity | ||
Outstanding, beginning of period (in shares) | 1,314,142 | |
Granted (in shares) | 451,877 | |
Exercised (in shares) | (129,147) | |
Cancelled / Forfeited (in shares) | (35,905) | |
Outstanding, end of period (in shares) | 1,600,967 | 1,314,142 |
Vested and exercisable, end of period (in shares) | 793,402 | |
Vested and expected to vest, end of period (in shares) | 1,518,819 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 32.47 | |
Granted (in dollars per share) | 45.43 | |
Exercised (in dollars per share) | 24.34 | |
Cancelled / Forfeited (in dollars per share) | 38.62 | |
Outstanding, end of period (in dollars per share) | 36.65 | $ 32.47 |
Vested and exercisable, end of period (in dollars per share) | 29.79 | |
Vested and expected to vest, end of period (in dollars per share) | $ 36.26 | |
Weighted Average Remaining Contractual Term | ||
Outstanding, end of period | 7 years 11 months 3 days | 7 years 2 months 24 days |
Vested and exercisable, end of period | 6 years 7 months 11 days | |
Vested and expected to vest, end of period | 7 years 10 months 11 days | |
Aggregate Intrinsic Value | ||
Outstanding, end of period | $ 16,242 | $ 12,340 |
Vested and exercisable, end of period | 13,493 | |
Vested and expected to vest, end of period | $ 16,001 |
Stock-Based Compensation - RSU
Stock-Based Compensation - RSU Activity (Details) - Restricted Stock Units | 3 Months Ended | |
Sep. 30, 2016$ / sharesshares | Sep. 30, 2015$ / shares | |
Restricted stock units activity | ||
Outstanding, beginning of period (in shares) | shares | 493,332 | |
Granted (in shares) | shares | 399,684 | |
Settled (in shares) | shares | (85,469) | |
Cancelled / Forfeited (in shares) | shares | (29,432) | |
Outstanding, end of period (in shares) | shares | 778,115 | |
Vested and expected to vest (in shares) | shares | 695,341 | |
Weighted Average Grant Date Fair Value | ||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 41.06 | |
Granted (in dollars per share) | $ / shares | 45.44 | $ 44.33 |
Settled (RSUs) (in dollars per share) | $ / shares | 41.86 | |
Cancelled / Forfeited (in dollars per share) | $ / shares | 42.25 | |
Outstanding, end of period (in dollars per share) | $ / shares | $ 43.18 | |
Vested and expected to vest, end of period (in dollars per share) | $ / shares | 43.12 |
Stockholders' Deficit - Stock R
Stockholders' Deficit - Stock Repurchase Program (Details) - USD ($) | Aug. 29, 2016 | Sep. 30, 2016 | Apr. 26, 2016 | Jan. 28, 2015 |
Class of Stock [Line Items] | ||||
Repurchase of common stock (in shares) | 1,138,858 | |||
Repurchase of common stock, amount | $ 50,000,000 | |||
Remaining capacity under the stock repurchase program | $ 371,300,000 | |||
Approved stock repurchase program, authorized amount (up to) | $ 400,000,000 | $ 450,000,000 | ||
Accelerated Share Repurchase Program | ||||
Class of Stock [Line Items] | ||||
Accelerated share repurchases, payment | $ 100,000,000 | |||
Repurchase of common stock (in shares) | 1,757,855 | 1,757,855 | ||
Percentage of shares to be repurchased | 80.00% | |||
Repurchase of common stock, amount | $ 80,000,000 | $ 80,000,000 | ||
Reduction to additional paid-in capital | $ 20,000,000 |
Stockholders' Deficit - Accumul
Stockholders' Deficit - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 | Sep. 30, 2015 | Jun. 30, 2015 |
Accumulated Other Comprehensive Income | ||||
Foreign translation adjustments | $ 1.8 | $ 2.7 | $ 4.8 | $ 6.5 |
Maximum | ||||
Accumulated Other Comprehensive Income | ||||
Net unrealized gains (losses) on available for sale securities | $ (0.1) | $ 0.1 | $ (0.1) | $ (0.1) |
Net Income Per Share - Calculat
Net Income Per Share - Calculations of Basic and Diluted Net Income per Share and Basic and Dilutive Weighted Average Shares Outstanding (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Earnings Per Share [Abstract] | ||
Net income | $ 35,000 | $ 36,771 |
Weighted average shares outstanding (in shares) | 79,048 | 83,876 |
Dilutive impact from: | ||
Share-based payment awards (in shares) | 337 | 444 |
Dilutive weighted average shares outstanding (in shares) | 79,385 | 84,320 |
Income per share | ||
Basic (in dollars per share) | $ 0.44 | $ 0.44 |
Dilutive (in dollars per share) | $ 0.44 | $ 0.44 |
Net Income Per Share - Stock Op
Net Income Per Share - Stock Options Excluded from the Computation of Dilutive Weighted Average Shares Outstanding (Details) | 3 Months Ended |
Sep. 30, 2016$ / sharesshares | |
Stock Options | |
Employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive | |
Options to purchase shares of common stock (in shares) | shares | 762,113 |
Stock Options | |
Employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive | |
Exercise price range, low end of range (in dollars per share) | $ 44.38 |
Exercise price range, high end of range (in dollars per share) | $ 47.40 |
Net Income Per Share - Employee
Net Income Per Share - Employee Equity Awards Excluded from the Calculation of Dilutive Weighted Average Shares Outstanding (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Employee Equity Awards | ||
Employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive | ||
Employee equity awards (in shares) | 1,535 | 1,187 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||
Effective income tax rate (as a percent) | 36.10% | 34.80% |
Excess tax benefits from stock-based compensation | $ 584 | $ 1,577 |
Commitments and Contingencies -
Commitments and Contingencies - Rental Expense (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Operating Leases | ||
Rent expense | $ 2.2 | $ 2.1 |
Minimum | ||
Operating Leases | ||
Operating lease terms | 1 year |
Commitments and Contingencies67
Commitments and Contingencies - Standby Letters of Credit (Details) - USD ($) $ in Millions | Sep. 30, 2016 | Jun. 30, 2016 |
Standby Letter of Credit | ||
Operating Leases | ||
Standby letters of credit | $ 3 | $ 3.5 |
Commitments and Contingencies68
Commitments and Contingencies - Legal Matters (Details) € in Millions | 1 Months Ended | |
Mar. 31, 2014EUR (€) | Sep. 30, 2016EUR (€)claims | |
Legal Matters | ||
Matters that might have a material adverse effect on financial position, results of operations or cash flows | claims | 0 | |
Customer claim | ||
Legal Matters | ||
Judgment issued | € 1.9 | |
Damages, plus interest, with the possibility of additional damages to be determined | € 1.7 |
Segment Information - Summary o
Segment Information - Summary of Reportable Segments' Profits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Summary of reportable segments' profits | ||
Segment revenue | $ 120,050 | $ 120,296 |
Segment profit | 54,730 | 55,429 |
Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 120,050 | 120,296 |
Segment expenses | (52,163) | (52,005) |
Segment profit | 67,887 | 68,291 |
Subscription and software | Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 113,444 | 111,859 |
Segment expenses | (45,726) | (44,275) |
Segment profit | 67,718 | 67,584 |
Services | Operating segments | ||
Summary of reportable segments' profits | ||
Segment revenue | 6,606 | 8,437 |
Segment expenses | (6,437) | (7,730) |
Segment profit | $ 169 | $ 707 |
Segment Information - Reconcili
Segment Information - Reconciliation of Total Segment Profit to Income before Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2016 | Sep. 30, 2015 | |
Reconciliation to Income before Income Taxes | ||
Total segment profit for reportable segments | $ 54,730 | $ 55,429 |
General and administrative | (13,157) | (12,862) |
Other income, net | 646 | 896 |
Income before provision for income taxes | 54,779 | 56,406 |
Operating segments | ||
Reconciliation to Income before Income Taxes | ||
Total segment profit for reportable segments | 67,887 | 68,291 |
Segment Reconciling Items | ||
Reconciliation to Income before Income Taxes | ||
General and administrative | (13,157) | (12,862) |
Other income, net | 646 | 896 |
Interest income (expense), net | $ (597) | $ 81 |