Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 30, 2017 | Aug. 03, 2017 | Dec. 31, 2016 | |
Document and Entity Information | |||
Entity Registrant Name | ASPEN TECHNOLOGY INC /DE/ | ||
Entity Central Index Key | 929,940 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2017 | ||
Amendment Flag | false | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 4,159,380,633 | ||
Entity Common Stock, Shares Outstanding | 73,099,209 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenue: | |||
Subscription and software | $ 453,512 | $ 440,408 | $ 405,640 |
Services and other | 29,430 | 31,936 | 34,761 |
Total revenue | 482,942 | 472,344 | 440,401 |
Cost of revenue: | |||
Subscription and software | 21,051 | 20,376 | 21,165 |
Services and other | 26,415 | 28,235 | 28,411 |
Total cost of revenue | 47,466 | 48,611 | 49,576 |
Gross profit | 435,476 | 423,733 | 390,825 |
Operating expenses: | |||
Selling and marketing | 92,633 | 91,536 | 92,736 |
Research and development | 79,530 | 67,152 | 69,584 |
General and administrative | 51,297 | 53,664 | 48,713 |
Total operating expenses | 223,460 | 212,352 | 211,033 |
Income from operations | 212,016 | 211,381 | 179,792 |
Interest income | 808 | 441 | 487 |
Interest (expense) | (3,787) | (1,212) | (30) |
Other income (expense), net | 1,309 | 29 | (778) |
Income before provision for income taxes | 210,346 | 210,639 | 179,471 |
Provision for income taxes | 48,150 | 70,688 | 61,064 |
Net income | $ 162,196 | $ 139,951 | $ 118,407 |
Net income per common share: | |||
Basic (in dollars per share) | $ 2.12 | $ 1.69 | $ 1.34 |
Diluted (in dollars per share) | $ 2.11 | $ 1.68 | $ 1.33 |
Weighted average shares outstanding: | |||
Basic (in shares) | 76,491 | 82,892 | 88,398 |
Diluted (in shares) | 76,978 | 83,309 | 89,016 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net income | $ 162,196 | $ 139,951 | $ 118,407 |
Other comprehensive loss: | |||
Net unrealized gains (losses) on available for sale securities, net of tax effects of $12 and $15 for fiscal years 2016 and 2015 | 0 | 22 | (29) |
Foreign currency translation adjustments | (1,192) | (3,841) | (2,873) |
Total other comprehensive loss | (1,192) | (3,819) | (2,902) |
Comprehensive income | $ 161,004 | $ 136,132 | $ 115,505 |
CONSOLIDATED STATEMENTS OF COM4
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract] | |||
Net unrealized gains (losses) on available for sale securities, tax effects | $ 0 | $ 12 | $ 15 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 101,954 | $ 318,336 |
Short-term marketable securities | 0 | 3,006 |
Accounts receivable, net | 27,670 | 20,476 |
Prepaid expenses and other current assets | 12,061 | 13,948 |
Prepaid income taxes | 4,501 | 5,557 |
Total current assets | 146,186 | 361,323 |
Property, equipment and leasehold improvements, net | 13,400 | 15,825 |
Computer software development costs, net | 667 | 720 |
Goodwill | 51,248 | 23,438 |
Intangible assets, net | 20,789 | 5,000 |
Non-current deferred tax assets | 14,352 | 12,236 |
Other non-current assets | 1,300 | 1,196 |
Total assets | 247,942 | 419,738 |
Current liabilities: | ||
Accounts payable | 5,467 | 3,559 |
Accrued expenses and other current liabilities | 48,149 | 36,105 |
Income taxes payable | 1,603 | 439 |
Borrowings under credit agreement | 140,000 | 140,000 |
Current deferred revenue | 272,024 | 252,520 |
Total current liabilities | 467,243 | 432,623 |
Non-current deferred revenue | 28,335 | 29,558 |
Other non-current liabilities | 13,148 | 32,591 |
Commitments and contingencies (Note 16) | ||
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of June 30, 2017 and 2016 Issued and outstanding—none as of June 30, 2017 and 2016 | 0 | 0 |
Stockholders' deficit: | ||
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—102,567,129 shares at June 30, 2017 and 102,031,960 shares at June 30, 2016 Outstanding—73,421,153 shares at June 30, 2017 and 80,177,950 shares at June 30, 2016 | 10,257 | 10,203 |
Additional paid-in capital | 687,479 | 659,287 |
Retained earnings (deficit) | 156,520 | (5,676) |
Accumulated other comprehensive income | 1,459 | 2,651 |
Treasury stock, at cost—29,145,976 shares of common stock at June 30, 2017 and 21,854,010 shares at June 30, 2016 | (1,116,499) | (741,499) |
Total stockholders' deficit | (260,784) | (75,034) |
Total liabilities and stockholders' deficit | $ 247,942 | $ 419,738 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2017 | 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 | 102,567,129 | 102,031,960 |
Common stock, outstanding | 73,421,153 | 80,177,950 |
Treasury stock, shares | 29,145,976 | 21,854,010 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' (DEFICIT) EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Deficit) | Accumulated Other Comprehensive Income | Treasury Stock |
Balance at Jun. 30, 2014 | $ 83,676 | $ 10,103 | $ 591,324 | $ (264,034) | $ 9,372 | $ (263,089) |
Balance (in shares) at Jun. 30, 2014 | 101,033,740 | 9,371,890 | ||||
Comprehensive income (loss): | ||||||
Net income | 118,407 | 118,407 | ||||
Other comprehensive loss | (2,902) | (2,902) | ||||
Exercise of stock options | 4,666 | $ 31 | 4,635 | |||
Exercise of stock options (in shares) | 308,847 | |||||
Withholding taxes related to restricted stock units net share settlement | (5,657) | $ 27 | (5,684) | |||
Withholding taxes related to restricted stock units net share settlement (in shares) | 264,933 | |||||
Repurchase of common stock | $ (298,344) | $ (298,344) | ||||
Repurchase of common stock (in shares) | 7,731,428 | 7,731,428 | ||||
Stock-based compensation | $ 14,584 | 14,584 | ||||
Excess tax benefits from stock-based compensation | 37,024 | 37,024 | ||||
Balance at Jun. 30, 2015 | (48,546) | $ 10,161 | 641,883 | (145,627) | 6,470 | $ (561,433) |
Balance (in shares) at Jun. 30, 2015 | 101,607,520 | 17,103,318 | ||||
Comprehensive income (loss): | ||||||
Net income | 139,951 | 139,951 | ||||
Other comprehensive loss | (3,819) | (3,819) | ||||
Exercise of stock options | 3,920 | $ 20 | 3,900 | |||
Exercise of stock options (in shares) | 201,706 | |||||
Withholding taxes related to restricted stock units net share settlement | (4,409) | $ 22 | (4,431) | |||
Withholding taxes related to restricted stock units net share settlement (in shares) | 222,734 | |||||
Repurchase of common stock | $ (180,066) | $ (180,066) | ||||
Repurchase of common stock (in shares) | 4,750,692 | 4,750,692 | ||||
Stock-based compensation | $ 15,727 | 15,727 | ||||
Excess tax benefits from stock-based compensation | 2,208 | 2,208 | ||||
Balance at Jun. 30, 2016 | $ (75,034) | $ 10,203 | 659,287 | (5,676) | 2,651 | $ (741,499) |
Balance (in shares) at Jun. 30, 2016 | 102,031,960 | 102,031,960 | 21,854,010 | |||
Comprehensive income (loss): | ||||||
Net income | $ 162,196 | 162,196 | ||||
Other comprehensive loss | (1,192) | (1,192) | ||||
Exercise of stock options | 9,273 | $ 34 | 9,239 | |||
Exercise of stock options (in shares) | 332,937 | |||||
Withholding taxes related to restricted stock units net share settlement | (5,792) | $ 20 | (5,812) | |||
Withholding taxes related to restricted stock units net share settlement (in shares) | 202,232 | |||||
Repurchase of common stock | $ (375,000) | $ (375,000) | ||||
Repurchase of common stock (in shares) | 5,185,257 | 7,291,966 | ||||
Stock-based compensation | $ 18,800 | 18,800 | ||||
Excess tax benefits from stock-based compensation | 5,965 | 5,965 | ||||
Balance at Jun. 30, 2017 | $ (260,784) | $ 10,257 | $ 687,479 | $ 156,520 | $ 1,459 | $ (1,116,499) |
Balance (in shares) at Jun. 30, 2017 | 102,567,129 | 102,567,129 | 29,145,976 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Operating activities: | |||
Net income | $ 162,196 | $ 139,951 | $ 118,407 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 6,405 | 6,061 | 6,216 |
Net foreign currency gains | (1,036) | (3,666) | (1,552) |
Stock-based compensation expense | 18,800 | 15,727 | 14,584 |
Deferred income taxes | (4,286) | 2,499 | 20,112 |
Provision for (recovery from) bad debts | 199 | 260 | (513) |
Tax benefits from stock-based compensation | (5,965) | (2,208) | (37,024) |
Excess tax benefits from stock-based compensation | (5,965) | (2,208) | (37,024) |
Other non-cash operating activities | 602 | 321 | 1,619 |
Changes in assets and liabilities, excluding initial effects of acquisitions: | |||
Accounts receivable | (7,480) | 9,382 | 8,028 |
Prepaid expenses, prepaid income taxes, and other assets | (2,421) | (6,106) | 4,232 |
Accounts payable, accrued expenses, income taxes payable and other liabilities | (9,070) | (4,489) | 5,933 |
Deferred revenue | 18,477 | (6,196) | 14,919 |
Net cash provided by operating activities | 182,386 | 153,744 | 191,985 |
Investing activities: | |||
Purchases of marketable securities | (683,748) | 0 | (50,065) |
Maturities of marketable securities | 686,346 | 58,973 | 85,535 |
Purchase of property, equipment and leasehold improvements | (2,720) | (3,483) | (7,645) |
Payments for business acquisitions, net of cash acquired | (36,171) | (8,000) | 0 |
Payments for capitalized computer software costs | (405) | (269) | (359) |
Net cash (used in) provided by investing activities | (36,698) | 47,221 | 27,466 |
Financing activities: | |||
Exercise of stock options | 9,273 | 3,924 | 4,662 |
Repurchases of common stock | (371,491) | (178,604) | (297,246) |
Payment of tax withholding obligations related to restricted stock | (5,764) | (4,480) | (5,699) |
Excess tax benefits from stock-based compensation | 5,965 | 2,208 | 37,024 |
Proceeds from credit agreement | 0 | 140,000 | 0 |
Payments of credit agreement issuance costs | 0 | (1,707) | 0 |
Net cash used in financing activities | (362,017) | (38,659) | (261,259) |
Effect of exchange rate changes on cash and cash equivalents | (53) | (219) | (1,469) |
(Decrease) increase in cash and cash equivalents | (216,382) | 162,087 | (43,277) |
Cash and cash equivalents, beginning of year | 318,336 | 156,249 | 199,526 |
Cash and cash equivalents, end of year | 101,954 | 318,336 | 156,249 |
Supplemental disclosure of cash flow information: | |||
Income tax paid, net | 65,536 | 69,028 | 3,712 |
Interest paid | 3,444 | 963 | 30 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Change in landlord improvement allowance included in leasehold improvements and deferred rent liability | 0 | 0 | 6,064 |
Change in purchases of property, equipment and leasehold improvements included in accounts payable and accrued expenses | (47) | (825) | 675 |
Change in common stock repurchases included in accounts payable and accrued expenses | $ 3,509 | $ 1,462 | $ 1,098 |
Operations
Operations | 12 Months Ended |
Jun. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Operations | Operations Aspen Technology, Inc., together with its subsidiaries, is a leading global supplier of asset optimization solutions that optimize asset design, operations and maintenance lifecycle in complex, industrial environments. Our aspenONE software and related services have been developed specifically for companies in the process and other capital-intensive industries such as energy, chemicals, engineering and construction, as well as pharmaceuticals, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Customers use our solutions to improve their competitiveness and profitability by increasing throughput, energy efficiency, and production, reducing unplanned downtime, enhancing capital efficiency, and decreasing working capital requirements over the entire asset lifecycle to support operational excellence. We operate globally in 31 countries as of June 30, 2017 . |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2017 | |
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. Reclassifications Certain line items in prior period financial statements have been reclassified to conform to currently reported presentations. (b) Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. (c) Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. (d) 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, which includes software maintenance and support, known as our Premier Plus SMS offering, for the entire term. Our aspenONE products are organized into three suites: 1) engineering; 2) manufacturing and supply chain; and 3) asset performance management. 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 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, AspenTech). 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, economics of the arrangements, and because we do not have an established history of our arrangements going to term end date 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. 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 and because we do not have VSOE for our Premier Plus SMS offering, 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 and related costs are 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. 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 June 30, 2017 and 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. (e) Computer Software Development Costs Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bears to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years . Total computer software costs capitalized were $0.4 million , $0.3 million and $0.4 million during the years ended June 30, 2017 , 2016 and 2015 , respectively. Total amortization expense charged to operations was approximately $0.5 million , $0.6 million and $0.7 million for the years ended June 30, 2017 , 2016 and 2015 , respectively. Computer software development accumulated amortization totaled $74.3 million and $73.8 million as of June 30, 2017 and 2016 , respectively. Weighted average remaining useful life of computer software development costs was 0.6 years and 0.7 years at June 30, 2017 and 2016 , respectively. At each balance sheet date, we evaluate the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products. During the years ending June 30, 2017 , 2016 and 2015 , our computer software development costs were not considered impaired and as such, we did not recognize impairment losses during the periods then ended. (f) Foreign Currency Translation The determination of the functional currency of subsidiaries is based on the subsidiaries' financial and operational environment and is the local currency of the subsidiary. Gains and losses from foreign currency translation related to entities whose functional currency is their local currency are credited or charged to accumulated other comprehensive income included in stockholders' deficit in the consolidated balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated statements of operations as incurred as a component of other income (expense), net. Net foreign currency transaction and remeasurement gains were less than $0.6 million in fiscal 2017 and losses were less than $0.1 million and $0.8 million in fiscal 2016 and 2015 , respectively. (g) Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents, marketable securities, accounts receivable and installments receivable. Our cash is held in financial institutions and our cash equivalents are invested in money market mutual funds that we believe to be of high credit quality. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. Concentration of credit risk with respect to receivables is limited to certain customers to which we make substantial sales. To reduce risk, we assess the financial strength of our customers. We do not require collateral or other security in support of our receivables. As of June 30, 2017 , we had one customer receivable balances that represented approximately 18% of our total receivables. As of June 30, 2016 , we had two customer receivable balances that represented approximately 10% and 15% of our total receivables, and were collected subsequent to June 30, 2016 . (h) Computer Software Developed for Internal Use and Long-Lived Assets Computer Software Developed for Internal Use: Computer software developed for internal use is capitalized in accordance with ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software . We capitalize direct labor costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion. In fiscal 2017 and 2016 there were no capitalized direct labor costs associated with our development of software for internal use. In fiscal 2015 , we capitalized direct labor costs of $0.3 million associated with our development of software for internal use. These costs are included within property, plant and equipment in our consolidated balance sheets. Impairment of Long-Lived Assets: We evaluate our long-lived assets, which include finite-lived intangible assets, property and leasehold improvements for impairment as events and circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. We assess the recoverability of the asset or a group of assets based on the undiscounted future cash flows the asset is expected to generate, and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying value. If an asset or a group of assets are deemed to be impaired, the amount of the impairment loss, if any, represents the excess of the asset's or a group of assets' carrying value compared to their estimated fair values. (i) Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income and its components for fiscal 2017 , 2016 and 2015 are disclosed in the accompanying consolidated statements of comprehensive income. As of June 30, 2017 , 2016 and 2015 , accumulated other comprehensive income is comprised of foreign translation adjustments of $1.5 million , $2.7 million $6.5 million , respectively, and net unrealized gains (losses) on available for sale securities of less than $0.1 million , $(0.1) million and ($0.1) million , respectively. (j) Accounting for Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. (k) Income Taxes Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment. We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to our consolidated financial position or results of operations. We are continuously subject to examination by the IRS, as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by us on our income tax returns. In accordance with provisions of ASC Topic 740, Income Taxes (ASC 740), an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. We account for interest and penalties related to uncertain tax positions as part of the provision for income taxes. (l) 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. Refer to Note 16 for discussion of these matters and related liability accruals. (m) Advertising Costs Advertising costs are expensed as incurred and are classified as sales and marketing expenses. We incurred advertising expenses of $3.2 million , $2.3 million and $2.9 million during fiscal 2017 , 2016 and 2015 , respectively. (n) 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. During fiscal 2017 , 2016 and 2015 , we acquired certain technologies for $2.3 million , $0.3 million and $3.3 million , respectively. At the time we acquired the technology, the project to develop a commercially available product did not meet the definition of having reached technological feasibility and as such, the entire cost of the acquired technology was expensed as research and development expense. (o) Recent Accounting Pronouncements In May 2014, the 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. Based on our preliminary assessment, the adoption of ASU No. 2014-09 will impact the timing of a portion of the revenue recognized from our term contracts. We are continuing to evaluate the impact of ASU No. 2014-09 on our consolidated financial statements and implementing accounting system changes related to the adoption. 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. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business. The amendment changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not anticipate the adoption of ASU No. 2017-01 will have a material effect on the consolidated financial statements or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350) - Simplifying the Test for Goodwill Impairment. The amendment eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not anticipate the adoption of ASU No. 2017-04 will have a material effect on the consolidated financial statements or related disclosures. |
Marketable Securities (Notes)
Marketable Securities (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Marketable Securities Our marketable securities are classified as available-for-sale and reported at fair value on the consolidated balance sheets. Net unrealized gains (losses) are reported as a separate component of accumulated other comprehensive income, net of tax. Realized gains and losses on investments are recognized in earnings as incurred. We had no investments in marketable securities as of June 30, 2017 and $3.0 million of investments in marketable securities as of June 30, 2016 , which were comprised of U.S. corporate bonds with maturities of less than one year. We review our marketable securities for impairment at each reporting period to determine if any of our securities have experienced an other-than-temporary decline in fair value in accordance with the provisions of ASC Topic 320, Investments—Debt and Equity Securities . We consider factors, such as the length of time and extent to which the market value has been less than the cost, the financial condition and near-term prospects of the issuer, our intent to sell, or whether it is more likely than not we will be required to sell the investment before recovery of its amortized cost basis. If we believe that an other-than-temporary decline in fair value has occurred, we write down the investment to fair value and recognize the credit loss in earnings and the non-credit loss in accumulated other comprehensive income. During fiscal 2017 and 2016 , our marketable securities were not considered other-than-temporarily impaired and, as such, we did not recognize impairment losses during the periods then ended. |
Fair Value (Notes)
Fair Value (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Fair Value Disclosures [Text Block] | 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 $79.7 million and $286.2 million as of June 30, 2017 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. We held no marketable securities as of June 30, 2017 . Marketable securities of $3.0 million as of June 30, 2016 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 (Notes)
Accounts Receivable (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Financing Receivables [Text Block] | Accounts Receivable Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of June 30, 2017 and 2016 : Gross Allowance Net (Dollars in Thousands) June 30, 2017: Accounts Receivable $ 28,955 $ 1,285 $ 27,670 June 30, 2016: Accounts Receivable $ 22,080 $ 1,604 $ 20,476 As of June 30, 2017 , we had one customer receivable balance that individually represented approximately 18% of our total receivables. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property, equipment and leasehold improvements in the accompanying consolidated balance sheets consist of the following: Year Ended June 30, 2017 2016 (Dollars in Thousands) Property, equipment and leasehold improvements, at cost: Computer equipment $ 8,262 $ 10,387 Purchased software 24,091 23,705 Furniture & fixtures 6,805 6,712 Leasehold improvements 12,025 12,523 Property, equipment and leasehold improvements, at cost 51,183 53,327 Accumulated depreciation (37,783 ) (37,502 ) Property, equipment and leasehold improvements, net $ 13,400 $ 15,825 Property and equipment are stated at cost. We provide for depreciation and amortization, primarily computed using the straight-line method, by charges to operations in amounts estimated to allocate the cost of the assets over their estimated useful lives, as follows: Asset Classification Estimated Useful Life Computer equipment 3 years Purchased software 3 - 5 years Furniture and fixtures 3 - 10 years Leasehold improvements Life of lease or asset, whichever is shorter During fiscal 2017 , we wrote off fully depreciated property, equipment and leasehold improvements that were no longer in use with gross book values of $3.3 million . Depreciation expense was $ 5.0 million , $ 5.1 million and $ 4.7 million for fiscal 2017 , 2016 and 2015 , respectively. We account for asset retirement obligations in accordance with ASC Topic 410, Asset Retirement and Environmental Obligations . Our asset retirement obligations relate to leasehold improvements for leased properties. The balance of our asset retirement obligations was $0.9 million as of June 30, 2017 and 2016 , respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 30, 2017 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions Mtelligence Corporation On October 26, 2016, we completed the acquisition of all the outstanding shares of Mtelligence Corporation (“Mtell”), a 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 an additional $5.5 million to be held back until April 2018 as security for certain representations, warranties, and obligations of the sellers. The holdback was recorded at its fair value as of the acquisition date of $5.3 million , and is recorded in other current liabilities in our consolidated balance sheet. A preliminary allocation of the purchase price is as follows. The valuation of certain acquired customer contract obligations is considered preliminary as of June 30, 2017 . Amount (Dollars in Thousands) Tangible assets acquired, net $ 779 Identifiable intangible assets: Developed technology 11,385 Customer relationships 679 Non-compete agreements 553 Goodwill 25,888 Deferred tax liabilities, net (2,099 ) Total assets acquired $ 37,185 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 Mtell intangible assets was 19% and the effective tax rate used was 34% . The values of the developed technology, customer relationships and non-compete agreements are being amortized on a straight-line basis, except technology, which is being amortized on a proportional use basis, over their estimated useful lives of 12 years , 6 years and 3 years , respectively. 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 Mtell products and services to our existing customers. The results of operations of Mtell have been included prospectively in our results of operations since the date of acquisition. Technology and Trademarks 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. We allocated $4.0 million of the purchase price 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. An allocation of the purchase price is as follows, including adjustments identified subsequent to the acquisition date. Amount (Dollars in Thousands) Tangible assets acquired, net $ 49 Identifiable intangible assets: Developed technology 1,272 Customer relationships 753 In-process research and development 3,097 Goodwill 6,722 Deferred tax liabilities, net (1,893 ) Total assets acquired $ 10,000 |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and 2016 : Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in Thousands) June 30, 2017: Technology and patents $ 22,350 $ (3,254 ) $ 19,096 Customer relationships 1,432 (169 ) 1,263 Non-compete agreements 553 (123 ) 430 Total $ 24,335 $ (3,546 ) $ 20,789 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 Amortization expense for technology and patents is included in operating expenses and amounted to $1.0 million , $0.1 million and $0.7 million in fiscal 2017 , 2016 and 2015 , respectively. Amortization expense is expected to be approximately $2.1 million in fiscal 2018 , $2.1 million in fiscal 2019 , $2.1 million in fiscal 2020 , $2.2 million in fiscal 2021 , $2.5 million in fiscal 2022 , and $9.8 million thereafter. |
Goodwill
Goodwill | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill | Goodwill The changes in the carrying amount of goodwill for our subscription and software reporting unit during fiscal years ending June 30, 2017 and 2016 were as follows: Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount June 30, 2016: $ 89,007 $ (65,569 ) $ — $ 23,438 Goodwill from Mtell acquisition 28,160 — — 28,160 Goodwill from technology acquisition 2,000 — — 2,000 Subsequent Fidelis goodwill adjustment (62 ) — — (62 ) Subsequent Mtell goodwill adjustment (2,272 ) — — (2,272 ) Foreign currency translation — — (16 ) (16 ) June 30, 2017: $ 116,833 $ (65,569 ) $ (16 ) $ 51,248 Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount June 30, 2015: $ 82,929 $ (65,569 ) $ — $ 17,360 Goodwill from Fidelis acquisition 6,784 — — 6,784 Foreign currency translation — — (706 ) (706 ) June 30, 2016: $ 89,713 $ (65,569 ) $ (706 ) $ 23,438 We test goodwill for impairment annually (or more often if impairment indicators arise), at the reporting unit level. We first assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine based on this assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform the two-step goodwill impairment test. The first step requires us to determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill, of such reporting unit. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit exceeds its fair value, the goodwill of the unit may be impaired. The amount of impairment, if any, is measured based upon the implied fair value of goodwill at the valuation date. Fair value of a reporting unit is determined using a combined weighted average of a market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, we would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on our most recent long-term financial projections. The discount rate we would utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows. We have elected December 31 st as the annual impairment assessment date and perform additional impairment tests if triggering events occur. We performed our annual impairment test for the subscription and software reporting unit as of December 31, 2016 and, based upon the results of our qualitative assessment, determined that it was not likely that its fair value was less than its carrying amount. As such, we did not perform the two-step goodwill impairment test and did not recognize impairment losses as a result of our analysis. If an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, goodwill will be evaluated for impairment between annual tests. No triggering events indicating goodwill impairment occurred during fiscal 2017 , 2016 and 2015 . |
Accrued Expenses and Other Liab
Accrued Expenses and Other Liabilities | 12 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued Expenses and Other Liabilities | Accrued Expenses and Other Liabilities Accrued expenses and other current liabilities in the accompanying consolidated balance sheets consist of the following: June 30, June 30, (Dollars in Thousands) Payroll and payroll-related $ 20,864 $ 17,809 Royalties and outside commissions 2,733 2,640 Professional fees 2,216 1,696 Deferred acquisition payments 8,548 584 Other 13,788 13,376 Total accrued expenses and other current liabilities $ 48,149 $ 36,105 Other non-current liabilities in the accompanying consolidated balance sheets consist of the following: June 30, June 30, (Dollars in Thousands) Deferred rent $ 6,916 $ 6,361 Uncertain tax positions 3,921 23,535 Deferred acquisition payments — 2,000 Other 2,311 695 Total other non-current liabilities $ 13,148 $ 32,591 |
Credit Agreement
Credit Agreement | 12 Months Ended |
Jun. 30, 2017 | |
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”). On August 9, 2017, we entered into an Amendment to increase the Credit Agreement to $350.0 million . 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 June 30, 2017 , we had $140.0 million in outstanding borrowings under the Credit Agreement. 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 June 30, 2017 was 2.73% . 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. We were in compliance with all covenants as of June 30, 2017 . |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Stock Compensation Plans In December 2016, the shareholders approved the establishment of the 2016 Omnibus Incentive Plan (the 2016 Plan), which provides for the issuance of a maximum of 6,000,000 shares of common stock. The 2016 Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-related awards, and performance awards that may be settled in cash, stock, or other property. As of June 30, 2017 , there were 6,000,000 shares of common stock available for issuance subject to awards under the 2016 Plan. In April 2010, the shareholders approved the establishment of the 2010 Equity Incentive Plan (the 2010 Plan), which provides for the issuance of a maximum of 7,000,000 shares of common stock. The 2010 Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-related awards, and performance awards that may be settled in cash, stock, or other property. As of June 30, 2017 , there were 2,781,925 shares of common stock available for issuance subject to awards under the 2010 Plan. In May 2005, the shareholders approved the establishment of the 2005 Stock Incentive Plan (the 2005 Plan), which provides for the issuance of a maximum of 4,000,000 shares of common stock. The 2005 Plan provides for the grant of incentive and nonqualified stock options and other stock-based awards, including the grant of shares based upon certain conditions, the grant of securities convertible into common stock and the grant of stock appreciation rights. Restricted stock and other stock-based awards granted under the 2005 Plan may not exceed, in the aggregate, 4,000,000 shares of common stock. The 2005 Plan expired on March 31, 2015. General Award Terms We issue stock options and restricted stock units (RSUs) to our employees and outside directors, pursuant to shareholder-approved equity compensation plans. Option awards are granted with an exercise price equal to the market closing price of our stock on the trading day prior to the grant date. Those options generally vest over four years and expire within 7 or 10 years of grant. RSUs generally vest over four years . Historically, our practice has been to settle stock option exercises and RSU vesting through newly-issued shares. Stock Compensation Accounting Our stock-based compensation is accounted for as awards of equity instruments. Our policy is to issue new shares upon the exercise of stock awards. We use the "with-and-without" approach for determining if excess tax benefits are realized under ASC 718. We utilize the Black-Scholes option valuation model for estimating the fair value of options granted. The Black-Scholes option valuation model incorporates assumptions regarding expected stock price volatility, the expected life of the option, the risk-free interest rate, dividend yield and the market value of our common stock. The expected stock price volatility is determined based on our stock's historic prices over a period commensurate with the expected life of the award. The expected life of an option represents the period for which options are expected to be outstanding as determined by historic option exercises and cancellations. The risk-free interest rate is based on the U.S. Treasury yield curve for notes with terms approximating the expected life of the options granted. The expected dividend yield is zero, based on our history and expectation of not paying dividends on common shares. We recognize compensation costs on a straight-line basis, net of estimated forfeitures, over the requisite service period for time-vested awards. The weighted average estimated fair value of option awards granted during fiscal 2017 , 2016 and 2015 was $13.16 , $13.16 , and $13.43 , respectively. We utilized the Black-Scholes option valuation model with the following weighted average assumptions: Year Ended June 30, 2017 2016 2015 Risk-free interest rate 1.2 % 1.4 % 1.5 % Expected dividend yield None None None Expected life (in years) 4.6 4.6 4.6 Expected volatility factor 31 % 34 % 35 % The stock-based compensation expense and its classification in the accompanying consolidated statements of operations for fiscal 2017 , 2016 and 2015 was as follows: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Recorded as expenses: Cost of service and other $ 1,477 $ 1,390 $ 1,351 Selling and marketing 3,652 4,351 3,056 Research and development 5,806 3,423 3,881 General and administrative 7,865 6,563 6,296 Total stock-based compensation $ 18,800 $ 15,727 $ 14,584 A summary of stock option and RSU activity under all equity plans in fiscal 2017 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 482,982 46.31 532,656 46.59 Settled (RSUs) (310,074 ) 41.71 Exercised (332,937 ) 27.85 Cancelled / Forfeited (110,629 ) 39.40 (99,916 ) 40.42 Outstanding at June 30, 2017 1,353,558 $ 37.98 7.30 $ 23,535 615,998 $ 45.62 Exercisable at June 30, 2017 808,094 $ 33.04 6.35 $ 17,958 Vested and expected to vest at June 30, 2017 1,288,241 $ 37.61 7.23 $ 22,877 542,323 $ 45.58 During fiscal 2017 , 2016 and 2015 , the weighted average grant-date fair value of RSUs granted was $46.59 , $41.86 and $42.65 , respectively. During fiscal 2017 , 2016 and 2015 the total fair value of vested shares from RSU grants amounted to $16.6 million , $12.7 million and $16.1 million , respectively. As of June 30, 2017 , the total future unrecognized compensation cost related to stock options and RSUs was $6.1 million and $23.0 million , respectively, and are expected to be recorded over a weighted average period of 2.5 years and 2.6 years , respectively. During fiscal 2017 , 2016 and 2015 the weighted average exercise price of stock options granted was $46.31 , $42.66 and $42.66 . The total intrinsic value of options exercised during fiscal 2017 , 2016 and 2015 was $7.9 million , $4.1 million and $8.2 million , respectively. We received $9.3 million , $3.9 million and $4.6 million in cash proceeds from option exercises during fiscal 2017 , 2016 and 2015 , respectively. We paid $5.8 million , $4.4 million and $5.7 million for withholding taxes on vested RSUs during fiscal 2017 , 2016 and 2015 , respectively. At June 30, 2017 , common stock reserved for future issuance or settlement under equity compensation plans was 10.8 million shares. |
Common Stock
Common Stock | 12 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Common Stock | Common Stock On January 22, 2015, our Board of Directors approved a share repurchase program for up to $450 million worth of our common stock. On April 26, 2016 and June 8, 2017, the Board of Directors approved a $400 million and $200 million increase in our current share repurchase plan, respectively. The timing and amount of any shares repurchased are based on market conditions and other factors. All share repurchases of our common stock 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 the delivery of approximately 2.1 million shares of our common stock, which was 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. These shares were recorded as an increase to treasury stock. During fiscal 2017 , we repurchased 5,185,257 shares of our common stock in the open market for $275.0 million and 2,106,709 shares of our common stock for $100.0 million as part of the ASR Program. We repurchased 4,750,692 shares and 7,731,428 shares of our common stock for $180.1 million and $298.3 million during fiscal 2016 and 2015 , respectively. As of June 30, 2017 , the remaining dollar value under the stock repurchase program approved on January 22, 2015 and amended on April 26, 2016 was $346.3 million . |
Net Income Per Share (Notes)
Net Income Per Share (Notes) | 12 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Text Block] | 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 years ended June 30, 2017 , 2016 and 2015 are as follows: Year Ended June 30, 2017 2016 2015 (Dollars and Shares in Thousands, Except per Share Data) Net income $ 162,196 $ 139,951 $ 118,407 Weighted average shares outstanding 76,491 82,892 88,398 Dilutive impact from: Employee equity awards 487 417 618 Dilutive weighted average shares outstanding 76,978 83,309 89,016 Income per share Basic $ 2.12 $ 1.69 $ 1.34 Dilutive $ 2.11 $ 1.68 $ 1.33 For the years ended June 30, 2017 , 2016 and 2015 , certain employee equity awards were anti-dilutive based on the treasury stock method. Additionally, during the year ended June 30, 2017 , options to purchase 27,778 shares of our common stock were not included in the computation of dilutive weighted average shares outstanding, because their exercise prices ranged from $54.22 per share to $63.05 per share and were greater than the average market price of our common stock during the period then ended. These options were outstanding as of June 30, 2017 and expire at various dates through June 5, 2027. The following potential common shares were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive at the balance sheet date: Year Ended June 30, 2017 2016 2015 (Shares in Thousands) Employee equity awards 525 1,028 587 |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Income before provision for income taxes consists of the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Domestic $ 202,053 $ 201,885 $ 175,805 Foreign 8,293 8,754 3,666 Income before provision for income taxes $ 210,346 $ 210,639 $ 179,471 The provision for income taxes shown in the accompanying consolidated statements of operations is composed of the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Federal— Current $ 69,385 $ 56,535 $ — Deferred (22,449 ) 7,496 55,895 State— Current 1,737 1,866 2,176 Deferred (1,079 ) 204 729 Foreign— Current 2,067 4,554 3,382 Deferred (1,511 ) 33 (1,118 ) $ 48,150 $ 70,688 $ 61,064 The provision for income taxes differs from that based on the federal statutory rate due to the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Federal tax provision at statutory rate $ 73,621 $ 73,723 $ 62,815 State income taxes 967 1,153 2,114 Subpart F and dividend income 2,912 3,581 2,799 Foreign taxes and rate differences (206 ) (663 ) (222 ) Stock-based compensation 991 1,359 763 Tax credits (6,614 ) (3,867 ) (3,562 ) Tax contingencies (19,645 ) (581 ) (641 ) Return to provision adjustments 464 658 384 Domestic Production Activity Deduction (6,261 ) (4,892 ) (3,600 ) Valuation allowance 1,522 49 176 Other 399 168 38 Provision for income taxes $ 48,150 $ 70,688 $ 61,064 Deferred tax assets (liabilities) consist of the following at June 30, 2017 and 2016 : Year Ended June 30, 2017 2016 (Dollars in Thousands) Deferred tax assets: Federal and state credits $ 2,553 $ 1,270 Capital loss carryforwards 7,940 8,073 Net operating loss carryforwards 3,028 1,742 Deferred revenue 5,881 7,821 Other reserves and accruals 10,701 6,762 Intangible assets 1,730 1,616 Property, leasehold improvements, and other basis differences 2,470 1,853 Other temporary differences 971 870 35,274 30,007 Deferred tax liabilities: Deferred revenue (44 ) (1,276 ) Intangible assets (7,017 ) (2,912 ) Property, leasehold improvements, and other basis differences (2,634 ) (3,305 ) Other temporary differences — (508 ) (9,695 ) (8,001 ) Valuation allowance (11,259 ) (10,119 ) Net deferred tax assets $ 14,320 $ 11,887 Reflected in the deferred tax assets above at June 30, 2017 , we have foreign net operating loss carryforwards of $3.0 million , some of which will expire beginning in 2019 and others with unlimited carryforwards, and state research and development credits of $2.4 million which begin to expire in 2025. In fiscal 2017 and fiscal 2016 , we recorded reductions in the income taxes payable of $6.0 million and $2.2 million , respectively, with an increase to additional paid in capital, for the benefits of excess stock-based compensation deductions recognized during the period primarily in the United States. Our valuation allowance for deferred tax assets was $11.3 million and $10.1 million as of June 30, 2017 and 2016 respectively. The most significant portion of the valuation allowance is attributable to a reserve against US capital loss carryforward deferred tax assets of $8.0 million and state R&D tax credits. For fiscal 2017 , our income tax provision included amounts determined under the provisions of ASC 740 intended to satisfy additional income tax assessments, including interest and penalties, that could result from any tax return positions for which the likelihood of sustaining the position on audit does not meet a threshold of "more likely than not." Tax liabilities were recorded as a component of our income taxes payable and other non-current liabilities. The ultimate amount of taxes due will not be known until examinations are completed and settled or the audit periods are closed by statutes. A reconciliation of the reserve for uncertain tax positions is as follows: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Uncertain tax positions, beginning of year $ 23,535 $ 19,870 $ 21,193 Gross (decreases) increases—tax positions in prior period (19,116 ) 67 238 Gross increases—tax positions in current period — 5,474 — Gross decreases—lapse of statutes (830 ) (1,772 ) (1,024 ) Currency translation adjustment 332 (104 ) (537 ) Uncertain tax positions, end of year $ 3,921 $ 23,535 $ 19,870 At June 30, 2017 , the total amount of unrecognized tax benefits is $3.9 million . Upon being recognized, the amount would reduce the effective tax rate. Our policy is to recognize interest and penalties related to income tax matters as provision for (benefit from) income taxes. At June 30, 2017 , we had approximately $0.5 million of accrued interest and $0.2 million of penalties related to uncertain tax positions. We recorded a benefit for interest and penalties of approximately $1.3 million during fiscal 2017 . During the fourth quarter of fiscal 2017 , we settled an audit with the Internal Revenue Services (“IRS”) for the fiscal 2015. As a result of settling the audit, we released a significant portion of our reserve for US tax positions. The amount reversed in the fourth quarter related to settling the tax audit was $19.2 million . We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 2007 to 2016, some of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Operating Leases We lease certain facilities and various office equipment under non-cancellable operating leases with terms in excess of one year. Rental expense, including short term leases, maintenance charges and taxes on leased facilities, was approximately $8.4 million , $8.3 million and $8.3 million for fiscal years 2017 , 2016 and 2015 , respectively. Future minimum lease payments under these leases as of June 30, 2017 are as follows: Year Ended June 30, Operating Leases (Dollars in Thousands) 2018 $ 6,240 2019 7,926 2020 7,093 2021 5,810 2022 5,248 Thereafter 11,492 Total $ 43,809 Letters of Credit Standby letters of credit for $2.9 million secure our performance on professional services contracts and certain facility leases. The letters of credit expire at various dates through fiscal 2025. 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. In March 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. As of June 30, 2017 , there has been no change to the appellate court’s determination. While the outcome of the proceedings and claims referenced above cannot be predicted with certainty, there are no such matters, as of June 30, 2017 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 June 30, 2017 , and are not material to our financial position for the periods then ended. As of June 30, 2017 , 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. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Jun. 30, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Retirement and Profit Sharing Plans | Retirement Plans We maintain a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code (IRC) covering all eligible employees, as defined. Under the plan, a participant may elect to defer receipt of a stated percentage of his or her compensation, subject to limitation under the IRC, which would otherwise be payable to the participant for any plan year. We may make discretionary contributions to this plan, including making matching contributions of 50% , up to a maximum of 6% of an employee's pretax contribution. We made matching contributions of approximately $2.5 million , $2.4 million and $2.2 million in fiscal 2017 , 2016 and 2015 , respectively. Additionally, we participate in certain government mandated and defined contribution plans throughout the world for which we comply with all funding requirements. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. Our chief operating decision maker is our President and Chief Executive Officer. We have two operating and reportable segments, which are consistent with our reporting units: i) subscription and software and ii) services. The subscription and software segment is engaged in the licensing of asset optimization software solutions and associated support services. The services segment includes professional services and training. The accounting policies of the operating segments are the same as those described in the summary of significant accounting policies (refer to Note 2). 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 Services Total (Dollars in Thousands) Year Ended June 30, 2017: Segment revenue $ 453,512 $ 29,430 $ 482,942 Segment expenses(1) (193,214 ) (26,415 ) (219,629 ) Segment profit $ 260,298 $ 3,015 $ 263,313 Year Ended June 30, 2016: Segment revenue $ 440,408 $ 31,936 $ 472,344 Segment expenses(1) (179,064 ) (28,235 ) (207,299 ) Segment profit $ 261,344 $ 3,701 $ 265,045 Year Ended June 30, 2015: Segment revenue $ 405,640 $ 34,761 $ 440,401 Segment expenses(1) (183,485 ) (28,411 ) (211,896 ) Segment profit $ 222,155 $ 6,350 $ 228,505 ____________________________________________ (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 (expense), net. Reconciliation to Income Before Provision for Income Taxes The following table presents a reconciliation of total segment operating profit to income before provision for income taxes: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Total segment profit for reportable segments $ 263,313 $ 265,045 $ 228,505 General and administrative (51,297 ) (53,664 ) (48,713 ) Other income (expense), net 1,309 29 (778 ) Interest income (expense), net (2,979 ) (771 ) 457 Income before provision for income taxes $ 210,346 $ 210,639 $ 179,471 Geographic Information: Revenue to external customers is attributed to individual countries based on the location the product or services are sold. Domestic and international sales as a percentage of total revenue are as follows: Year Ended June 30, 2017 2016 2015 United States 37.9 % 35.4 % 34.6 % Europe 28.1 29.6 30.6 Other(1) 34.0 35.0 34.8 100.0 % 100.0 % 100.0 % ____________________________________________ (1) Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East. We have long-lived assets of approximately $71.9 million that are located domestically and $15.5 million that reside in other geographic locations as of June 30, 2017 . We had long-lived assets of approximately $31.6 million that were located domestically and $14.6 million that reside in other geographic locations as of June 30, 2016 . |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) The following tables present quarterly consolidated statement of operations data for fiscal 2017 and 2016 . The below data is unaudited but, in our opinion, reflects all adjustments necessary for a fair presentation of this data in accordance with GAAP: Three Months Ended June 30, March 31, December 31, 2016 September 30, (Dollars and Shares in Thousands, Except per Share Data) Total revenue $ 123,682 $ 119,277 $ 119,933 $ 120,050 Gross profit 111,568 107,010 108,354 108,544 Income from operations 48,948 52,273 56,065 54,730 Net income 54,352 35,834 37,010 35,000 Net income per common share: Basic $ 0.73 $ 0.47 $ 0.48 $ 0.44 Diluted $ 0.73 $ 0.47 $ 0.48 $ 0.44 Weighted average shares outstanding: Basic 74,294 75,676 76,905 79,048 Diluted 74,830 76,182 77,318 79,385 Three Months Ended June 30, March 31, December 31, 2015 September 30, (Dollars and Shares in Thousands, Except per Share Data) Total revenue $ 113,680 $ 119,217 $ 119,151 $ 120,296 Gross profit 101,949 107,197 107,263 107,324 Income from operations 48,972 50,681 56,299 55,429 Net income 33,326 33,171 36,683 36,771 Net income per common share: Basic $ 0.41 $ 0.40 $ 0.44 $ 0.44 Diluted $ 0.41 $ 0.40 $ 0.44 $ 0.44 Weighted average shares outstanding: Basic 81,282 83,081 83,315 83,876 Diluted 81,599 83,373 83,703 84,320 |
Significant Accounting Polici28
Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (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. Reclassifications Certain line items in prior period financial statements have been reclassified to conform to currently reported presentations. |
Management Estimates | (b) Management Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America 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. |
Cash and Cash Equivalents | (c) Cash and Cash Equivalents Cash and cash equivalents consist of short-term, highly liquid investments with remaining maturities of three months or less when purchased. |
Revenue Recognition | (d) 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, which includes software maintenance and support, known as our Premier Plus SMS offering, for the entire term. Our aspenONE products are organized into three suites: 1) engineering; 2) manufacturing and supply chain; and 3) asset performance management. 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 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, AspenTech). 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, economics of the arrangements, and because we do not have an established history of our arrangements going to term end date 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. 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 and because we do not have VSOE for our Premier Plus SMS offering, 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 and related costs are 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. 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 June 30, 2017 and 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. |
Computer Software Development Costs | (e) Computer Software Development Costs Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bears to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years . Total computer software costs capitalized were $0.4 million , $0.3 million and $0.4 million during the years ended June 30, 2017 , 2016 and 2015 , respectively. Total amortization expense charged to operations was approximately $0.5 million , $0.6 million and $0.7 million for the years ended June 30, 2017 , 2016 and 2015 , respectively. Computer software development accumulated amortization totaled $74.3 million and $73.8 million as of June 30, 2017 and 2016 , respectively. Weighted average remaining useful life of computer software development costs was 0.6 years and 0.7 years at June 30, 2017 and 2016 , respectively. At each balance sheet date, we evaluate the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products. During the years ending June 30, 2017 , 2016 and 2015 , our computer software development costs were not considered impaired and as such, we did not recognize impairment losses during the periods then ended. |
Foreign Currency Transactions | (f) Foreign Currency Translation The determination of the functional currency of subsidiaries is based on the subsidiaries' financial and operational environment and is the local currency of the subsidiary. Gains and losses from foreign currency translation related to entities whose functional currency is their local currency are credited or charged to accumulated other comprehensive income included in stockholders' deficit in the consolidated balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated statements of operations as incurred as a component of other income (expense), net. Net foreign currency transaction and remeasurement gains were less than $0.6 million in fiscal 2017 and losses were less than $0.1 million and $0.8 million in fiscal 2016 and 2015 , respectively. |
Concentration of Credit Risk | (g) Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents, marketable securities, accounts receivable and installments receivable. Our cash is held in financial institutions and our cash equivalents are invested in money market mutual funds that we believe to be of high credit quality. We diversify our investment portfolio by investing in multiple types of investment-grade securities and attempt to mitigate a risk of loss by using a third-party investment manager. Concentration of credit risk with respect to receivables is limited to certain customers to which we make substantial sales. To reduce risk, we assess the financial strength of our customers. We do not require collateral or other security in support of our receivables. As of June 30, 2017 , we had one customer receivable balances that represented approximately 18% of our total receivables. As of June 30, 2016 , we had two customer receivable balances that represented approximately 10% and 15% of our total receivables, and were collected subsequent to June 30, 2016 . |
Computer Software Developed for Internal Use | (h) Computer Software Developed for Internal Use and Long-Lived Assets Computer Software Developed for Internal Use: Computer software developed for internal use is capitalized in accordance with ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software . We capitalize direct labor costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion. In fiscal 2017 and 2016 there were no capitalized direct labor costs associated with our development of software for internal use. In fiscal 2015 , we capitalized direct labor costs of $0.3 million associated with our development of software for internal use. These costs are included within property, plant and equipment in our consolidated balance sheets. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets: We evaluate our long-lived assets, which include finite-lived intangible assets, property and leasehold improvements for impairment as events and circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. We assess the recoverability of the asset or a group of assets based on the undiscounted future cash flows the asset is expected to generate, and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying value. If an asset or a group of assets are deemed to be impaired, the amount of the impairment loss, if any, represents the excess of the asset's or a group of assets' carrying value compared to their estimated fair values. |
Comprehensive Income | (i) Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income and its components for fiscal 2017 , 2016 and 2015 are disclosed in the accompanying consolidated statements of comprehensive income. As of June 30, 2017 , 2016 and 2015 , accumulated other comprehensive income is comprised of foreign translation adjustments of $1.5 million , $2.7 million $6.5 million , respectively, and net unrealized gains (losses) on available for sale securities of less than $0.1 million , $(0.1) million and ($0.1) million , respectively. |
Accounting for Stock-Based Compensation | (j) Accounting for Stock-Based Compensation Stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period. |
Income Taxes | (k) Income Taxes Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment. We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to our consolidated financial position or results of operations. We are continuously subject to examination by the IRS, as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by us on our income tax returns. In accordance with provisions of ASC Topic 740, Income Taxes (ASC 740), an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. We account for interest and penalties related to uncertain tax positions as part of the provision for income taxes. |
Loss Contingencies | (l) 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. Refer to Note 16 for discussion of these matters and related liability accruals. |
Advertising Costs | (m) Advertising Costs Advertising costs are expensed as incurred and are classified as sales and marketing expenses. We incurred advertising expenses of $3.2 million , $2.3 million and $2.9 million during fiscal 2017 , 2016 and 2015 , respectively. |
Research and Development Expense | (n) 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. During fiscal 2017 , 2016 and 2015 , we acquired certain technologies for $2.3 million , $0.3 million and $3.3 million , respectively. At the time we acquired the technology, the project to develop a commercially available product did not meet the definition of having reached technological feasibility and as such, the entire cost of the acquired technology was expensed as research and development expense. |
Recent Accounting Pronouncements | (o) Recent Accounting Pronouncements In May 2014, the 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. Based on our preliminary assessment, the adoption of ASU No. 2014-09 will impact the timing of a portion of the revenue recognized from our term contracts. We are continuing to evaluate the impact of ASU No. 2014-09 on our consolidated financial statements and implementing accounting system changes related to the adoption. 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. In January 2017, the FASB issued ASU No. 2017-01, Business Combinations (Topic 805) - Clarifying the Definition of a Business. The amendment changes the definition of a business to assist entities in evaluating when a set of transferred assets and activities constitutes a business. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not anticipate the adoption of ASU No. 2017-01 will have a material effect on the consolidated financial statements or related disclosures. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other Topics (Topic 350) - Simplifying the Test for Goodwill Impairment. The amendment eliminates Step 2 of the goodwill impairment test and requires goodwill impairment to be measured as the amount by which a reporting unit’s carrying amount exceeds its fair value, not to exceed the carrying amount of its goodwill. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2017. Early adoption is permitted. We do not anticipate the adoption of ASU No. 2017-04 will have a material effect on the consolidated financial statements or related disclosures. |
Accounts Receivable (Tables)
Accounts Receivable (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Fair Value [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of June 30, 2017 and 2016 : Gross Allowance Net (Dollars in Thousands) June 30, 2017: Accounts Receivable $ 28,955 $ 1,285 $ 27,670 June 30, 2016: Accounts Receivable $ 22,080 $ 1,604 $ 20,476 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Property, equipment and leasehold improvements | Property, equipment and leasehold improvements in the accompanying consolidated balance sheets consist of the following: Year Ended June 30, 2017 2016 (Dollars in Thousands) Property, equipment and leasehold improvements, at cost: Computer equipment $ 8,262 $ 10,387 Purchased software 24,091 23,705 Furniture & fixtures 6,805 6,712 Leasehold improvements 12,025 12,523 Property, equipment and leasehold improvements, at cost 51,183 53,327 Accumulated depreciation (37,783 ) (37,502 ) Property, equipment and leasehold improvements, net $ 13,400 $ 15,825 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
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 certain acquired customer contract obligations is considered preliminary as of June 30, 2017 . Amount (Dollars in Thousands) Tangible assets acquired, net $ 779 Identifiable intangible assets: Developed technology 11,385 Customer relationships 679 Non-compete agreements 553 Goodwill 25,888 Deferred tax liabilities, net (2,099 ) Total assets acquired $ 37,185 An allocation of the purchase price is as follows, including adjustments identified subsequent to the acquisition date. Amount (Dollars in Thousands) Tangible assets acquired, net $ 49 Identifiable intangible assets: Developed technology 1,272 Customer relationships 753 In-process research and development 3,097 Goodwill 6,722 Deferred tax liabilities, net (1,893 ) Total assets acquired $ 10,000 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible assets | Intangible assets consist of the following as of June 30, 2017 and 2016 : Gross Carrying Amount Accumulated Amortization Net Carrying Amount (Dollars in Thousands) June 30, 2017: Technology and patents $ 22,350 $ (3,254 ) $ 19,096 Customer relationships 1,432 (169 ) 1,263 Non-compete agreements 553 (123 ) 430 Total $ 24,335 $ (3,546 ) $ 20,789 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) | 12 Months Ended |
Jun. 30, 2017 | |
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 fiscal years ending June 30, 2017 and 2016 were as follows: Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount June 30, 2016: $ 89,007 $ (65,569 ) $ — $ 23,438 Goodwill from Mtell acquisition 28,160 — — 28,160 Goodwill from technology acquisition 2,000 — — 2,000 Subsequent Fidelis goodwill adjustment (62 ) — — (62 ) Subsequent Mtell goodwill adjustment (2,272 ) — — (2,272 ) Foreign currency translation — — (16 ) (16 ) June 30, 2017: $ 116,833 $ (65,569 ) $ (16 ) $ 51,248 Gross Carrying Amount Accumulated Impairment Losses Effect of Currency Translation Net Carrying Amount June 30, 2015: $ 82,929 $ (65,569 ) $ — $ 17,360 Goodwill from Fidelis acquisition 6,784 — — 6,784 Foreign currency translation — — (706 ) (706 ) June 30, 2016: $ 89,713 $ (65,569 ) $ (706 ) $ 23,438 |
Accrued Expenses and Other Li34
Accrued Expenses and Other Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Balance Sheet Related Disclosures [Abstract] | |
Accrued expenses and other current liabilities | Accrued expenses and other current liabilities in the accompanying consolidated balance sheets consist of the following: June 30, June 30, (Dollars in Thousands) Payroll and payroll-related $ 20,864 $ 17,809 Royalties and outside commissions 2,733 2,640 Professional fees 2,216 1,696 Deferred acquisition payments 8,548 584 Other 13,788 13,376 Total accrued expenses and other current liabilities $ 48,149 $ 36,105 |
Other non-current liabilities | Other non-current liabilities in the accompanying consolidated balance sheets consist of the following: June 30, June 30, (Dollars in Thousands) Deferred rent $ 6,916 $ 6,361 Uncertain tax positions 3,921 23,535 Deferred acquisition payments — 2,000 Other 2,311 695 Total other non-current liabilities $ 13,148 $ 32,591 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Weighted average assumptions | We utilized the Black-Scholes option valuation model with the following weighted average assumptions: Year Ended June 30, 2017 2016 2015 Risk-free interest rate 1.2 % 1.4 % 1.5 % Expected dividend yield None None None Expected life (in years) 4.6 4.6 4.6 Expected volatility factor 31 % 34 % 35 % |
Stock-based compensation expense | The stock-based compensation expense and its classification in the accompanying consolidated statements of operations for fiscal 2017 , 2016 and 2015 was as follows: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Recorded as expenses: Cost of service and other $ 1,477 $ 1,390 $ 1,351 Selling and marketing 3,652 4,351 3,056 Research and development 5,806 3,423 3,881 General and administrative 7,865 6,563 6,296 Total stock-based compensation $ 18,800 $ 15,727 $ 14,584 |
Stock options and RSU activity | A summary of stock option and RSU activity under all equity plans in fiscal 2017 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 482,982 46.31 532,656 46.59 Settled (RSUs) (310,074 ) 41.71 Exercised (332,937 ) 27.85 Cancelled / Forfeited (110,629 ) 39.40 (99,916 ) 40.42 Outstanding at June 30, 2017 1,353,558 $ 37.98 7.30 $ 23,535 615,998 $ 45.62 Exercisable at June 30, 2017 808,094 $ 33.04 6.35 $ 17,958 Vested and expected to vest at June 30, 2017 1,288,241 $ 37.61 7.23 $ 22,877 542,323 $ 45.58 |
Net Income Per Share Net Income
Net Income Per Share Net Income Per Share - Employee Equity Awards Excluded from the Calculation of Dilutive Weighted Average Shares Outstanding (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following potential common shares were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive at the balance sheet date: Year Ended June 30, 2017 2016 2015 (Shares in Thousands) Employee equity awards 525 1,028 587 |
Net Income Per Share Net Inco37
Net Income Per Share Net Income Per Share - Calculations of Basic and Diluted Net Income per Share and Basic and Dilutive Weighted Average Shares Outstanding (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the years ended June 30, 2017 , 2016 and 2015 are as follows: Year Ended June 30, 2017 2016 2015 (Dollars and Shares in Thousands, Except per Share Data) Net income $ 162,196 $ 139,951 $ 118,407 Weighted average shares outstanding 76,491 82,892 88,398 Dilutive impact from: Employee equity awards 487 417 618 Dilutive weighted average shares outstanding 76,978 83,309 89,016 Income per share Basic $ 2.12 $ 1.69 $ 1.34 Dilutive $ 2.11 $ 1.68 $ 1.33 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Income before provision for income taxes | Income before provision for income taxes consists of the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Domestic $ 202,053 $ 201,885 $ 175,805 Foreign 8,293 8,754 3,666 Income before provision for income taxes $ 210,346 $ 210,639 $ 179,471 |
Provision for income taxes | The provision for income taxes shown in the accompanying consolidated statements of operations is composed of the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Federal— Current $ 69,385 $ 56,535 $ — Deferred (22,449 ) 7,496 55,895 State— Current 1,737 1,866 2,176 Deferred (1,079 ) 204 729 Foreign— Current 2,067 4,554 3,382 Deferred (1,511 ) 33 (1,118 ) $ 48,150 $ 70,688 $ 61,064 |
Income tax reconciliation based on federal statutory rate | The provision for income taxes differs from that based on the federal statutory rate due to the following: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Federal tax provision at statutory rate $ 73,621 $ 73,723 $ 62,815 State income taxes 967 1,153 2,114 Subpart F and dividend income 2,912 3,581 2,799 Foreign taxes and rate differences (206 ) (663 ) (222 ) Stock-based compensation 991 1,359 763 Tax credits (6,614 ) (3,867 ) (3,562 ) Tax contingencies (19,645 ) (581 ) (641 ) Return to provision adjustments 464 658 384 Domestic Production Activity Deduction (6,261 ) (4,892 ) (3,600 ) Valuation allowance 1,522 49 176 Other 399 168 38 Provision for income taxes $ 48,150 $ 70,688 $ 61,064 |
Deferred tax assets and liabilities | Deferred tax assets (liabilities) consist of the following at June 30, 2017 and 2016 : Year Ended June 30, 2017 2016 (Dollars in Thousands) Deferred tax assets: Federal and state credits $ 2,553 $ 1,270 Capital loss carryforwards 7,940 8,073 Net operating loss carryforwards 3,028 1,742 Deferred revenue 5,881 7,821 Other reserves and accruals 10,701 6,762 Intangible assets 1,730 1,616 Property, leasehold improvements, and other basis differences 2,470 1,853 Other temporary differences 971 870 35,274 30,007 Deferred tax liabilities: Deferred revenue (44 ) (1,276 ) Intangible assets (7,017 ) (2,912 ) Property, leasehold improvements, and other basis differences (2,634 ) (3,305 ) Other temporary differences — (508 ) (9,695 ) (8,001 ) Valuation allowance (11,259 ) (10,119 ) Net deferred tax assets $ 14,320 $ 11,887 |
Reconciliation of reserve for uncertain tax positions | A reconciliation of the reserve for uncertain tax positions is as follows: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Uncertain tax positions, beginning of year $ 23,535 $ 19,870 $ 21,193 Gross (decreases) increases—tax positions in prior period (19,116 ) 67 238 Gross increases—tax positions in current period — 5,474 — Gross decreases—lapse of statutes (830 ) (1,772 ) (1,024 ) Currency translation adjustment 332 (104 ) (537 ) Uncertain tax positions, end of year $ 3,921 $ 23,535 $ 19,870 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of future minimum lease payments | Future minimum lease payments under these leases as of June 30, 2017 are as follows: Year Ended June 30, Operating Leases (Dollars in Thousands) 2018 $ 6,240 2019 7,926 2020 7,093 2021 5,810 2022 5,248 Thereafter 11,492 Total $ 43,809 |
Segment and Geographic Inform40
Segment and Geographic Information (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Summary of reportable segments' profits | The following table presents a summary of our reportable segments' profits: Subscription Services Total (Dollars in Thousands) Year Ended June 30, 2017: Segment revenue $ 453,512 $ 29,430 $ 482,942 Segment expenses(1) (193,214 ) (26,415 ) (219,629 ) Segment profit $ 260,298 $ 3,015 $ 263,313 Year Ended June 30, 2016: Segment revenue $ 440,408 $ 31,936 $ 472,344 Segment expenses(1) (179,064 ) (28,235 ) (207,299 ) Segment profit $ 261,344 $ 3,701 $ 265,045 Year Ended June 30, 2015: Segment revenue $ 405,640 $ 34,761 $ 440,401 Segment expenses(1) (183,485 ) (28,411 ) (211,896 ) Segment profit $ 222,155 $ 6,350 $ 228,505 ____________________________________________ (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 (expense), net. |
Reconciliation of total segment operating profit to income before provision for income taxes | The following table presents a reconciliation of total segment operating profit to income before provision for income taxes: Year Ended June 30, 2017 2016 2015 (Dollars in Thousands) Total segment profit for reportable segments $ 263,313 $ 265,045 $ 228,505 General and administrative (51,297 ) (53,664 ) (48,713 ) Other income (expense), net 1,309 29 (778 ) Interest income (expense), net (2,979 ) (771 ) 457 Income before provision for income taxes $ 210,346 $ 210,639 $ 179,471 |
Domestic and international Sales as a Percentage of total revenue | Revenue to external customers is attributed to individual countries based on the location the product or services are sold. Domestic and international sales as a percentage of total revenue are as follows: Year Ended June 30, 2017 2016 2015 United States 37.9 % 35.4 % 34.6 % Europe 28.1 29.6 30.6 Other(1) 34.0 35.0 34.8 100.0 % 100.0 % 100.0 % ____________________________________________ (1) Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East. |
Quarterly Financial Data (Una41
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2017 | |
Quarterly Financial Data [Abstract] | |
Quarterly consolidated statement of operations data | The following tables present quarterly consolidated statement of operations data for fiscal 2017 and 2016 . The below data is unaudited but, in our opinion, reflects all adjustments necessary for a fair presentation of this data in accordance with GAAP: Three Months Ended June 30, March 31, December 31, 2016 September 30, (Dollars and Shares in Thousands, Except per Share Data) Total revenue $ 123,682 $ 119,277 $ 119,933 $ 120,050 Gross profit 111,568 107,010 108,354 108,544 Income from operations 48,948 52,273 56,065 54,730 Net income 54,352 35,834 37,010 35,000 Net income per common share: Basic $ 0.73 $ 0.47 $ 0.48 $ 0.44 Diluted $ 0.73 $ 0.47 $ 0.48 $ 0.44 Weighted average shares outstanding: Basic 74,294 75,676 76,905 79,048 Diluted 74,830 76,182 77,318 79,385 Three Months Ended June 30, March 31, December 31, 2015 September 30, (Dollars and Shares in Thousands, Except per Share Data) Total revenue $ 113,680 $ 119,217 $ 119,151 $ 120,296 Gross profit 101,949 107,197 107,263 107,324 Income from operations 48,972 50,681 56,299 55,429 Net income 33,326 33,171 36,683 36,771 Net income per common share: Basic $ 0.41 $ 0.40 $ 0.44 $ 0.44 Diluted $ 0.41 $ 0.40 $ 0.44 $ 0.44 Weighted average shares outstanding: Basic 81,282 83,081 83,315 83,876 Diluted 81,599 83,373 83,703 84,320 |
Operations - Narrative (Details
Operations - Narrative (Details) | Jun. 30, 2017country |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of countries of operations | 31 |
Significant Accounting Polici43
Significant Accounting Policies - Computer Software Development Costs (Details) - Computer Software Development Costs - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Computer Software Development Costs for Internal Use | |||
Maximum period over which amortization of computer software development costs provided on a product-by-product basis using straight-line method | 3 years | ||
Computer software cost capitalized | $ 0.4 | $ 0.3 | $ 0.4 |
Amortization expense charged to operations | 0.5 | 0.6 | $ 0.7 |
Computer software development accumulated amortization | $ 74.3 | $ 73.8 | |
Weighted average remaining useful life of computer software development costs | 7 months 9 days | 8 months 1 day |
Significant Accounting Polici44
Significant Accounting Policies - Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Foreign Currency Transactions | |||
Net foreign currency transaction and remeasurement gains (losses) | $ 0.6 | $ (0.1) | $ (0.8) |
Significant Accounting Polici45
Significant Accounting Policies - Concentration of Credit Risk (Details) - customer_receivable_balance | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Concentration of Credit Risk | ||
Number of customer's receivables balance representing a concentration | 1 | 2 |
Customer One | Accounts and installments receivable | Customers concentration risk | ||
Concentration of Credit Risk | ||
Percentage of total receivables | 18.00% | 10.00% |
Customer Two | Accounts and installments receivable | Customers concentration risk | ||
Concentration of Credit Risk | ||
Percentage of total receivables | 15.00% |
Significant Accounting Polici46
Significant Accounting Policies - Computer Software Developed For Internal Use (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Software Development | |||
Computer Software Development Costs for Internal Use | |||
Capitalized costs for computer software developed for internal use, net | $ 0 | $ 0 | $ 0.3 |
Significant Accounting Polici47
Significant Accounting Policies - Comprehensive Income (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Comprehensive Income | |||
Foreign translation adjustments | $ 1.5 | $ 2.7 | $ 6.5 |
Maximum | |||
Comprehensive Income | |||
Net unrealized gains (losses) on available for sale securities | $ 0.1 | $ (0.1) | $ (0.1) |
Significant Accounting Polici48
Significant Accounting Policies - Advertising Costs & Research and Development Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Advertising expenses | |||
Advertising expenses | $ 3.2 | $ 2.3 | $ 2.9 |
Research and Development Expense | |||
Technology acquired | $ 2.3 | $ 0.3 | $ 3.3 |
Marketable Securities (Details)
Marketable Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Available-for-sale Securities, Debt Securities | $ 0 | $ 3,006 |
Debt Securities Maturities One Year Or Less [Member] | Domestic Corporate Debt Securities [Member] | ||
Available-for-sale Securities, Debt Securities | $ 0 | $ 3,006 |
Fair Value (Details)
Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Available-for-sale Securities, Debt Securities | $ 0 | $ 3,006 |
Fair Value, Inputs, Level 1 [Member] | ||
Cash and Cash Equivalents, Fair Value Disclosure | $ 79,700 | $ 286,200 |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value [Abstract] | ||
Accounts Receivable, Gross, Current | $ 28,955 | $ 22,080 |
Allowance for Doubtful Accounts Receivable, Current | 1,285 | 1,604 |
Accounts Receivable, Net, Current | $ 27,670 | $ 20,476 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | ||
Percentage of total receivables | 18.00% | 10.00% |
Property and Equipment - Proper
Property and Equipment - Property, Equipment and Leasehold Improvements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | $ 51,183 | $ 53,327 |
Accumulated depreciation | (37,783) | (37,502) |
Property, equipment and leasehold improvements-net | 13,400 | 15,825 |
Computer equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 8,262 | 10,387 |
Purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 24,091 | 23,705 |
Furniture & fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | 6,805 | 6,712 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property, equipment and leasehold improvements-at cost | $ 12,025 | $ 12,523 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |||
Fully depreciated property, equipment and leasehold improvements written-off, gross book value | $ 3.3 | ||
Depreciation | 5 | $ 5.1 | $ 4.7 |
Asset retirement obligation | $ 0.9 | $ 0.9 |
Property and Equipment - Estima
Property and Equipment - Estimate Useful Lives of Property and Equipment (Details) | 12 Months Ended |
Jun. 30, 2017 | |
Purchased software | Minimum | |
Property and Equipment | |
Estimated Useful Life | 3 years |
Purchased software | Maximum | |
Property and Equipment | |
Estimated Useful Life | 5 years |
Furniture & fixtures | Minimum | |
Property and Equipment | |
Estimated Useful Life | 3 years |
Furniture & fixtures | Maximum | |
Property and Equipment | |
Estimated Useful Life | 10 years |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Oct. 26, 2016 | Aug. 31, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Sep. 30, 2016 |
Acquisition | |||||||
Net foreign currency transaction and remeasurement losses | $ (600) | $ 100 | $ 800 | ||||
Purchase price | 36,171 | 8,000 | $ 0 | ||||
Goodwill | $ 23,438 | $ 51,248 | 23,438 | ||||
Mtelligence Corporation [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 37,400 | ||||||
Acquisition | |||||||
Purchase price | 31,900 | ||||||
Future contingent consideration payment | 5,500 | ||||||
Weighted average discount rate (as a percent) | 19.00% | ||||||
Effective tax rate (as a percent) | 34.00% | ||||||
Business Combination, Contingent Consideration, Liability | $ 5,300 | ||||||
Goodwill | $ 25,888 | ||||||
Acquisition of Technology and Trademarks [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Business Combination, Consideration Transferred | $ 6,000 | ||||||
Acquisition | |||||||
Purchase price | 5,400 | ||||||
Future contingent consideration payment | $ 600 | ||||||
Finite-lived intangible asset, useful life | 6 years | ||||||
Goodwill | $ 2,000 | ||||||
Fidelis | |||||||
Acquisition | |||||||
Purchase price | 8,000 | ||||||
Future contingent consideration payment | $ 2,000 | $ 2,000 | |||||
Goodwill | $ 6,722 | ||||||
Developed technology | Mtelligence Corporation [Member] | |||||||
Acquisition | |||||||
Finite-lived intangible asset, useful life | 12 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 11,385 | ||||||
Developed technology | Acquisition of Technology and Trademarks [Member] | |||||||
Acquisition | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 4,000 | ||||||
Developed technology | Fidelis | |||||||
Acquisition | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 1,272 | ||||||
In process research & development | Fidelis | |||||||
Acquisition | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 3,097 | ||||||
Customer relationships | Mtelligence Corporation [Member] | |||||||
Acquisition | |||||||
Finite-lived intangible asset, useful life | 6 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 679 | ||||||
Customer relationships | Fidelis | |||||||
Acquisition | |||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 753 | ||||||
Noncompete Agreements [Member] | Mtelligence Corporation [Member] | |||||||
Acquisition | |||||||
Finite-lived intangible asset, useful life | 3 years | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | $ 553 |
Acquisitions - Schedule of Reco
Acquisitions - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Oct. 26, 2016 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 36,171 | $ 8,000 | $ 0 | ||
Goodwill | $ 23,438 | 51,248 | 23,438 | ||
Mtelligence Corporation [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | $ 31,900 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 5,500 | ||||
Tangible assets acquired, net | 779 | ||||
Goodwill | 25,888 | ||||
Deferred tax liabilities, net | (2,099) | ||||
Total assets acquired | 37,185 | ||||
Mtelligence Corporation [Member] | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 11,385 | ||||
Mtelligence Corporation [Member] | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 679 | ||||
Mtelligence Corporation [Member] | Noncompete Agreements [Member] | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 553 | ||||
Fidelis | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Gross | 8,000 | ||||
Business Combination, Contingent Consideration Arrangements, Range of Outcomes, Value, High | $ 2,000 | $ 2,000 | |||
Tangible assets acquired, net | 49 | ||||
Goodwill | 6,722 | ||||
Deferred tax liabilities, net | (1,893) | ||||
Total assets acquired | 10,000 | ||||
Fidelis | Developed technology | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 1,272 | ||||
Fidelis | Customer relationships | |||||
Business Acquisition [Line Items] | |||||
Finite-lived intangible assets acquired | 753 | ||||
Fidelis | In process research & development | |||||
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 | Jun. 30, 2017 | Jun. 30, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 24,335 | $ 7,596 |
Accumulated Amortization | (3,546) | (2,596) |
Net Carrying Amount | 20,789 | 5,000 |
In process research & development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 3,200 | |
Accumulated Amortization | 0 | |
Net Carrying Amount | 3,200 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,432 | 700 |
Accumulated Amortization | (169) | 0 |
Net Carrying Amount | 1,263 | 700 |
Noncompete Agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 553 | |
Accumulated Amortization | (123) | |
Net Carrying Amount | 430 | |
Technology and patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 22,350 | 3,696 |
Accumulated Amortization | (3,254) | (2,596) |
Net Carrying Amount | $ 19,096 | $ 1,100 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Intangible asset amortization expense | $ 1 | $ 0.1 | $ 0.7 |
Amortization expense - 2018 | 2.1 | ||
Amortization expense - 2019 | 2.1 | ||
Amortization expense - 2020 | 2.1 | ||
Amortization expense - 2021 | 2.2 | ||
Amortization expense - 2022 | 2.5 | ||
Amortization expense - Thereafter | $ 9.8 |
Goodwill - Schedule of Goodwill
Goodwill - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Sep. 30, 2016 | Jun. 30, 2015 | |
Goodwill: | ||||
Goodwill | $ 51,248 | $ 23,438 | ||
Subscription and software | ||||
Goodwill: | ||||
Goodwill, gross, beginning balance | 89,713 | 82,929 | ||
Accumulated impairment losses, beginning balance | (65,569) | (65,569) | ||
Goodwill | 51,248 | 23,438 | $ 17,360 | |
Effect of currency translation | (16) | (706) | ||
Goodwill, gross, ending balance | 116,833 | 89,713 | ||
Accumulated impairment losses, ending balance | (65,569) | (65,569) | ||
Acquisition of Technology and Trademarks [Member] | ||||
Goodwill: | ||||
Goodwill | $ 2,000 | |||
Acquisition of Technology and Trademarks [Member] | Subscription and software | ||||
Goodwill: | ||||
Acquisition | 2,000 | |||
Fidelis Group, LLC [Member] | ||||
Goodwill: | ||||
Goodwill | 6,722 | |||
Fidelis Group, LLC [Member] | Subscription and software | ||||
Goodwill: | ||||
Acquisition | 6,784 | |||
Goodwill, Purchase Accounting Adjustments | (62) | |||
Mtelligence Corporation [Member] | ||||
Goodwill: | ||||
Goodwill | 25,888 | |||
Mtelligence Corporation [Member] | Subscription and software | ||||
Goodwill: | ||||
Acquisition | 28,160 | |||
Goodwill, Purchase Accounting Adjustments | (2,272) | |||
Goodwill Foreign Currency Translation Gain Loss [Member] | Subscription and software | ||||
Goodwill: | ||||
Goodwill, gross, beginning balance | $ 89,007 | |||
Goodwill, gross, ending balance | $ 89,007 |
Goodwill - Narrative (Details)
Goodwill - Narrative (Details) | 12 Months Ended | ||
Jun. 30, 2017USD ($)triggering_event | Jun. 30, 2016triggering_event | Jun. 30, 2015triggering_event | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Impairment loss recognized | $ | $ 0 | ||
Number of triggering events indicating goodwill impairment occurred | triggering_event | 0 | 0 | 0 |
Accrued Expenses and Other Li61
Accrued Expenses and Other Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Accrued expenses and other current liabilities | ||
Payroll and payroll-related | $ 20,864 | $ 17,809 |
Royalties and outside commissions | 2,733 | 2,640 |
Professional fees | 2,216 | 1,696 |
Deferred acquisition payments | 8,548 | 584 |
Other | 13,788 | 13,376 |
Total accrued expenses and other current liabilities | $ 48,149 | $ 36,105 |
Accrued Expenses and Other Li62
Accrued Expenses and Other Liabilities - Other Non-Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Other non-current liabilities | ||
Deferred rent | $ 6,916 | $ 6,361 |
Uncertain tax positions | 3,921 | 23,535 |
Deferred acquisition payments | 0 | 2,000 |
Other | 2,311 | 695 |
Total other non-current liabilities | $ 13,148 | $ 32,591 |
Credit Agreement - Narrative (D
Credit Agreement - Narrative (Details) | Feb. 26, 2016USD ($) | Aug. 09, 2017USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||
Borrowings under credit agreement | $ 140,000,000 | $ 140,000,000 | ||
Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 250,000,000 | |||
Borrowings under credit agreement | $ 140,000,000 | |||
Margin rate (as a percent) | 0.50% | |||
Effective interest rate (as a percent) | 2.73% | |||
Maximum leverage ratio | 3 | |||
Minimum interest coverage ratio | 3 | |||
Federal Funds Effective Rate | Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate spread (as a percent) | 0.50% | |||
Adjusted LIBOR | Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Variable rate spread (as a percent) | 1.00% | |||
Margin rate (as a percent) | 1.50% | |||
Minimum | Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage (as a percent) | 0.20% | |||
Maximum | Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Commitment fee percentage (as a percent) | 0.30% | |||
Subsequent Event [Member] | Credit Agreement | Line of Credit | ||||
Line of Credit Facility [Line Items] | ||||
Principal amount | $ 350,000,000 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Compensation Plans and General Award Terms (Details) - shares | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | Apr. 30, 2010 | May 31, 2005 | |
Stock-based compensation, additional disclosures | ||||
Common stock reserved for future issuance or settlement (in shares) | 10,800,000 | |||
2016 Plan | ||||
Stock-based compensation, additional disclosures | ||||
Maximum number of shares authorized (in shares) | 6,000,000 | |||
Common stock reserved for future issuance or settlement (in shares) | 6,000,000 | |||
2010 Plan | ||||
Stock-based compensation, additional disclosures | ||||
Maximum number of shares authorized (in shares) | 7,000,000 | |||
Common stock reserved for future issuance or settlement (in shares) | 2,781,925 | |||
2005 Plan | ||||
Stock-based compensation, additional disclosures | ||||
Maximum number of shares authorized (in shares) | 4,000,000 | |||
Common stock reserved for future issuance or settlement (in shares) | 4,000,000 | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 6 months | |||
General award terms | ||||
Award vesting period | 4 years | |||
Stock Options | Minimum | ||||
General award terms | ||||
Contractual terms | 7 years | |||
Stock Options | Maximum | ||||
General award terms | ||||
Contractual terms | 10 years | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months | |||
General award terms | ||||
Award vesting period | 4 years |
Stock-Based Compensation - St65
Stock-Based Compensation - Stock-Based Compensation Accounting (Details) - Stock Options - $ / shares | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Weighted average assumptions | |||
Weighted average fair value (in dollars per share) | $ 13.16 | $ 13.16 | $ 13.43 |
Risk-free interest rate (as a percent) | 1.20% | 1.40% | 1.50% |
Expected dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Expected life (in years) | 4 years 7 months 6 days | 4 years 7 months 6 days | 4 years 7 months 6 days |
Expected volatility factor (as a percent) | 31.00% | 34.00% | 35.00% |
Stock-Based Compensation - St66
Stock-Based Compensation - Stock Based Compensation Expense and its Classification in the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Recorded as expenses: | |||
Total stock-based compensation | $ 18,800 | $ 15,727 | $ 14,584 |
Cost of services and other | |||
Recorded as expenses: | |||
Total stock-based compensation | 1,477 | 1,390 | 1,351 |
Selling and marketing | |||
Recorded as expenses: | |||
Total stock-based compensation | 3,652 | 4,351 | 3,056 |
Research and development | |||
Recorded as expenses: | |||
Total stock-based compensation | 5,806 | 3,423 | 3,881 |
General and administrative | |||
Recorded as expenses: | |||
Total stock-based compensation | $ 7,865 | $ 6,563 | $ 6,296 |
Stock-Based Compensation - St67
Stock-Based Compensation - Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2016USD ($)$ / sharesshares | Jun. 30, 2015$ / shares | |
Stock Options | |||
Stock options activity | |||
Outstanding, beginning of period (in shares) | shares | 1,314,142 | ||
Granted (in shares) | shares | 482,982 | ||
Exercised (in shares) | shares | (332,937) | ||
Cancelled / Forfeited (in shares) | shares | (110,629) | ||
Outstanding, end of period (in shares) | shares | 1,353,558 | 1,314,142 | |
Vested and exercisable, end of period (in shares) | shares | 808,094 | ||
Vested and expected to vest, end of period (in shares) | shares | 1,288,241 | ||
Weighted Average Exercise Price | |||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 32.47 | ||
Granted (in dollars per share) | $ / shares | 46.31 | $ 42.66 | $ 42.66 |
Exercised (in dollars per share) | $ / shares | 27.85 | ||
Cancelled / Forfeited (in dollars per share) | $ / shares | 39.40 | ||
Outstanding, end of period (in dollars per share) | $ / shares | 37.98 | $ 32.47 | |
Vested and exercisable, end of period (in dollars per share) | $ / shares | 33.04 | ||
Vested and expected to vest, end of period (in dollars per share) | $ / shares | $ 37.61 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding, end of period | 7 years 3 months 20 days | 7 years 2 months 24 days | |
Vested and exercisable, end of period | 6 years 4 months 7 days | ||
Vested and expected to vest, end of period | 7 years 2 months 24 days | ||
Aggregate Intrinsic Value | |||
Outstanding, beginning of period | $ | $ 12,340 | ||
Outstanding, end of period | $ | 23,535 | $ 12,340 | |
Vested and exercisable, end of period | $ | 17,958 | ||
Vested and expected to vest, end of period | $ | $ 22,877 | ||
Restricted Stock Units | |||
Restricted stock units activity | |||
Outstanding, beginning of period (in shares) | shares | 493,332 | ||
Granted (in shares) | shares | 532,656 | ||
Settled (in shares) | shares | (310,074) | ||
Cancelled / Forfeited (in shares) | shares | (99,916) | ||
Outstanding, end of period (in shares) | shares | 615,998 | 493,332 | |
Vested and expected to vest (in shares) | shares | 542,323 | ||
Weighted Average Grant Date Fair Value | |||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 41.06 | ||
Granted (in dollars per share) | $ / shares | 46.59 | $ 41.86 | $ 42.65 |
Settled (RSUs) (in dollars per share) | $ / shares | 41.71 | ||
Cancelled / Forfeited (in dollars per share) | $ / shares | 40.42 | ||
Outstanding, end of period (in dollars per share) | $ / shares | $ 45.62 | $ 41.06 | |
Vested and expected to vest, end of period (in dollars per share) | $ / shares | 45.58 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Disclosures (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Payments related to tax withholding | $ 5,764 | $ 4,480 | $ 5,699 |
Common stock reserved for future issuance or settlement (in shares) | 10,800,000 | ||
Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Granted (in dollars per share) | $ 46.59 | $ 41.86 | $ 42.65 |
Total fair value of shares vested from RSU grants | $ 16,600 | $ 12,700 | $ 16,100 |
Total unrecognized compensation cost | $ 23,000 | ||
Total unrecognized compensation cost, period of recognition | 2 years 7 months | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total unrecognized compensation cost | $ 6,100 | ||
Total unrecognized compensation cost, period of recognition | 2 years 6 months | ||
Granted (in dollars per share) | $ 46.31 | $ 42.66 | $ 42.66 |
Total intrinsic value of options exercised | $ 7,900 | $ 4,100 | $ 8,200 |
Cash proceeds from option exercises | 9,300 | 3,900 | 4,600 |
Payments related to tax withholding | $ 5,800 | $ 4,400 | $ 5,700 |
2010 Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock reserved for future issuance or settlement (in shares) | 2,781,925 |
Common Stock - Narrative (Detai
Common Stock - Narrative (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 08, 2017 | Aug. 29, 2016 | Apr. 26, 2016 | Jan. 22, 2015 | |
Common Stock | ||||||||
Approved stock repurchase program, authorized amount | $ 200,000,000 | $ 400,000,000 | $ 450,000,000 | |||||
Repurchase of common stock (in shares) | 5,185,257 | 4,750,692 | 7,731,428 | |||||
Repurchase of common stock, amount | $ 375,000,000 | $ 180,066,000 | $ 298,344,000 | |||||
Remaining capacity under the stock repurchase program | $ 346,300,000 | |||||||
Accelerated Share Repurchase Program [Member] | ||||||||
Common Stock | ||||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ (100,000,000) | |||||||
Repurchase of common stock (in shares) | 2,100,000 | 2,106,709 | ||||||
Repurchase of common stock, amount | $ 100,000,000 | |||||||
Open Market Transaction [Member] | ||||||||
Common Stock | ||||||||
Repurchase of common stock, amount | $ 275,000,000 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Treasury Stock, Value, Acquired, Cost Method | $ 375,000 | $ 180,066 | $ 298,344 | ||||||||
Net Income (Loss) Attributable to Parent | $ 54,352 | $ 35,834 | $ 37,010 | $ 35,000 | $ 33,326 | $ 33,171 | $ 36,683 | $ 36,771 | $ 162,196 | $ 139,951 | $ 118,407 |
Weighted Average Number of Shares Outstanding, Basic | 74,294,000 | 75,676,000 | 76,905,000 | 79,048,000 | 81,282,000 | 83,081,000 | 83,315,000 | 83,876,000 | 76,491,000 | 82,892,000 | 88,398,000 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 487,000 | 417,000 | 618,000 | ||||||||
Weighted Average Number of Shares Outstanding, Diluted | 74,830,000 | 76,182,000 | 77,318,000 | 79,385,000 | 81,599,000 | 83,373,000 | 83,703,000 | 84,320,000 | 76,978,000 | 83,309,000 | 89,016,000 |
Earnings Per Share, Basic | $ 0.73 | $ 0.47 | $ 0.48 | $ 0.44 | $ 0.41 | $ 0.40 | $ 0.44 | $ 0.44 | $ 2.12 | $ 1.69 | $ 1.34 |
Earnings Per Share, Diluted | $ 0.73 | $ 0.47 | $ 0.48 | $ 0.44 | $ 0.41 | $ 0.40 | $ 0.44 | $ 0.44 | $ 2.11 | $ 1.68 | $ 1.33 |
Employee Stock Option [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 27,778 | ||||||||||
Stock Compensation Plan [Member] | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 525,000 | 1,028,000 | 587,000 | ||||||||
Employee Stock Option [Member] | |||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit | $ 54.22 | ||||||||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit | $ 63.05 | ||||||||||
Accelerated Share Repurchase Program [Member] | |||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 100,000 |
Income Taxes - Income (Loss) be
Income Taxes - Income (Loss) before Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income (loss) before provision for income taxes | |||
Domestic | $ 202,053 | $ 201,885 | $ 175,805 |
Foreign | 8,293 | 8,754 | 3,666 |
Income before provision for income taxes | 210,346 | 210,639 | 179,471 |
Federal | |||
Current | 69,385 | 56,535 | 0 |
Deferred | (22,449) | 7,496 | 55,895 |
State | |||
Current | 1,737 | 1,866 | 2,176 |
Deferred | (1,079) | 204 | 729 |
Foreign | |||
Current | 2,067 | 4,554 | 3,382 |
Deferred | (1,511) | 33 | (1,118) |
Provision for income taxes | $ 48,150 | $ 70,688 | $ 61,064 |
Income Taxes - Provision For (B
Income Taxes - Provision For (Benefit From) Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Reconciliation | |||
Federal tax provision at statutory rate | $ 73,621 | $ 73,723 | $ 62,815 |
State income taxes | 967 | 1,153 | 2,114 |
Subpart F and dividend income | 2,912 | 3,581 | 2,799 |
Foreign taxes and rate differences | (206) | (663) | (222) |
Stock-based compensation | 991 | 1,359 | 763 |
Tax credits | (6,614) | (3,867) | (3,562) |
Tax contingencies | (19,645) | (581) | (641) |
Return to provision adjustments | 464 | 658 | 384 |
Domestic Production Activity Deduction | (6,261) | (4,892) | (3,600) |
Valuation allowance | 1,522 | 49 | 176 |
Other | 399 | 168 | 38 |
Provision for income taxes | $ 48,150 | $ 70,688 | $ 61,064 |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Jun. 30, 2016 |
Deferred tax assets: | ||
Federal and state credits | $ 2,553 | $ 1,270 |
Capital loss carryforwards | 7,940 | 8,073 |
Net operating loss carryforwards | 3,028 | 1,742 |
Deferred revenue | 5,881 | 7,821 |
Other reserves and accruals | 10,701 | 6,762 |
Intangible assets | 1,730 | 1,616 |
Property, leasehold improvements, and other basis differences | 2,470 | 1,853 |
Other temporary differences | 971 | 870 |
Deferred tax assets, total | 35,274 | 30,007 |
Deferred tax liabilities: | ||
Deferred revenue | (44) | (1,276) |
Intangible assets | (7,017) | (2,912) |
Property, leasehold improvements, and other basis differences | (2,634) | (3,305) |
Other temporary differences | 0 | (508) |
Deferred tax liabilities, total | (9,695) | (8,001) |
Valuation allowance | 11,259 | 10,119 |
Net deferred tax assets | $ 14,320 | $ 11,887 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reduction in income taxes payable | ||||
Reduction in income taxes payable | $ 5,965 | $ 2,208 | $ 37,024 | |
Deferred tax asset valuation allowance | ||||
Deferred tax asset valuation allowance | $ (11,259) | (11,259) | $ (10,119) | |
Unrecognized tax benefits that if recognized would reduce the effective tax rate | 3,900 | 3,900 | ||
Accrued interest | 500 | 500 | ||
Accrued penalties related to uncertain tax positions | 200 | 200 | ||
Benefit for interest and penalties | 1,300 | |||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 19,200 | |||
Foreign | ||||
Tax Credit Carryforward | ||||
Net operating loss carryforwards | 3,000 | 3,000 | ||
Research and development tax credit carryforward | State | ||||
Tax Credit Carryforward | ||||
Tax credit carryforward | 2,400 | 2,400 | ||
Foreign tax credit carryforwards | Domestic | U.S. Federal | ||||
Tax Credit Carryforward | ||||
Tax credit carryforward | $ 8,000 | $ 8,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of the Reserve For Uncertain Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation of the reserve for uncertain tax positions | |||
Uncertain tax positions, beginning of year | $ 23,535 | $ 19,870 | $ 21,193 |
Gross (decreases) increases - tax positions in prior period | (19,116) | 67 | 238 |
Gross increases—tax positions in current period | 0 | 5,474 | 0 |
Gross decreases—lapse of statutes | (830) | (1,772) | (1,024) |
Currency translation adjustment | 332 | (104) | (537) |
Uncertain tax positions, end of year | $ 3,921 | $ 23,535 | $ 19,870 |
Commitments and Contingencies -
Commitments and Contingencies - Future Minimum Lease Payments (Details) $ in Thousands | Jun. 30, 2017USD ($) |
Gross Payments | |
2,018 | $ 6,240 |
2,019 | 7,926 |
2,020 | 7,093 |
2,021 | 5,810 |
2,022 | 5,248 |
Thereafter | 11,492 |
Total | $ 43,809 |
Commitments and Contingencies77
Commitments and Contingencies - Narrative (Details) € in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Mar. 31, 2014EUR (€) | Jun. 30, 2017USD ($)triggering_event | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2017EUR (€)triggering_event | |
Leases, Operating [Abstract] | |||||
Rent expense | $ | $ 8.4 | $ 8.3 | $ 8.3 | ||
Standby letters of credit | $ | $ 2.9 | ||||
Legal Matters | |||||
Matters that might have a material adverse effect on financial position, results of operations or cash flows | triggering_event | 0 | 0 | |||
Customer Claim | |||||
Legal Matters | |||||
Judgment issued | € | € 1.9 | ||||
Damages, plus interest, with the possibility of additional damages to be determined | € | € 1.7 |
Retirement Plans - Narrative (D
Retirement Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |||
Employer matching contributions (as a percent) | 50.00% | ||
Maximum employee's pretax contribution that can be matched (as a percent) | 6.00% | ||
Employer matching contributions | $ 2.5 | $ 2.4 | $ 2.2 |
Segment and Geographic Inform79
Segment and Geographic Information - Narrative (Details) $ in Millions | 12 Months Ended | |
Jun. 30, 2017USD ($)segments | Jun. 30, 2016USD ($) | |
Geographic Information | ||
Number of operating segments | segments | 2 | |
Number of reportable segments | segments | 2 | |
United States | ||
Geographic Information | ||
Long-lived assets | $ | $ 71.9 | $ 31.6 |
Other geographic locations | ||
Geographic Information | ||
Long-lived assets | $ | $ 15.5 | $ 14.6 |
Segment and Geographic Inform80
Segment and Geographic Information - Summary of Segments' Profits (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Summary of operating segments | |||||||||||
Segment revenue | $ 123,682 | $ 119,277 | $ 119,933 | $ 120,050 | $ 113,680 | $ 119,217 | $ 119,151 | $ 120,296 | $ 482,942 | $ 472,344 | $ 440,401 |
Income from operations | $ 48,948 | $ 52,273 | $ 56,065 | $ 54,730 | $ 48,972 | $ 50,681 | $ 56,299 | $ 55,429 | 212,016 | 211,381 | 179,792 |
Operating Segments | |||||||||||
Summary of operating segments | |||||||||||
Segment revenue | 482,942 | 472,344 | 440,401 | ||||||||
Segment expenses | (219,629) | (207,299) | (211,896) | ||||||||
Income from operations | 263,313 | 265,045 | 228,505 | ||||||||
Operating Segments | Subscription and software | |||||||||||
Summary of operating segments | |||||||||||
Segment revenue | 453,512 | 440,408 | 405,640 | ||||||||
Segment expenses | (193,214) | (179,064) | (183,485) | ||||||||
Income from operations | 260,298 | 261,344 | 222,155 | ||||||||
Operating Segments | Services | |||||||||||
Summary of operating segments | |||||||||||
Segment revenue | 29,430 | 31,936 | 34,761 | ||||||||
Segment expenses | (26,415) | (28,235) | (28,411) | ||||||||
Income from operations | $ 3,015 | $ 3,701 | $ 6,350 |
Segment and Geographic Inform81
Segment and Geographic Information - Reconciliation of Total Segment Operating Profit (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Reconciliation to Income Before Income Taxes | |||||||||||
Income from operations | $ 48,948 | $ 52,273 | $ 56,065 | $ 54,730 | $ 48,972 | $ 50,681 | $ 56,299 | $ 55,429 | $ 212,016 | $ 211,381 | $ 179,792 |
General and administrative | (51,297) | (53,664) | (48,713) | ||||||||
Other income (expense), net | 1,309 | 29 | (778) | ||||||||
Income before provision for income taxes | 210,346 | 210,639 | 179,471 | ||||||||
Operating Segments | |||||||||||
Reconciliation to Income Before Income Taxes | |||||||||||
Income from operations | 263,313 | 265,045 | 228,505 | ||||||||
Segment Reconciling Items | |||||||||||
Reconciliation to Income Before Income Taxes | |||||||||||
General and administrative | (51,297) | (53,664) | (48,713) | ||||||||
Other income (expense), net | 1,309 | 29 | (778) | ||||||||
Interest income (net) | $ (2,979) | $ (771) | $ 457 |
Segment and Geographic Inform82
Segment and Geographic Information - Domestic and International Sales as a Percentage of Total Revenue (Details) - Geographic concentration risk - Revenue | 12 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Geographic Information | |||
Sales as a percentage of total revenue | 100.00% | 100.00% | 100.00% |
United States | |||
Geographic Information | |||
Sales as a percentage of total revenue | 37.90% | 35.40% | 34.60% |
Europe | |||
Geographic Information | |||
Sales as a percentage of total revenue | 28.10% | 29.60% | 30.60% |
Other | |||
Geographic Information | |||
Sales as a percentage of total revenue | 34.00% | 35.00% | 34.80% |
Quarterly Financial Data (Una83
Quarterly Financial Data (Unaudited) - (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2015 | |
Total revenue | $ 123,682 | $ 119,277 | $ 119,933 | $ 120,050 | $ 113,680 | $ 119,217 | $ 119,151 | $ 120,296 | $ 482,942 | $ 472,344 | $ 440,401 |
Gross profit | 111,568 | 107,010 | 108,354 | 108,544 | 101,949 | 107,197 | 107,263 | 107,324 | 435,476 | 423,733 | 390,825 |
Income from operations | 48,948 | 52,273 | 56,065 | 54,730 | 48,972 | 50,681 | 56,299 | 55,429 | 212,016 | 211,381 | 179,792 |
Net income | $ 54,352 | $ 35,834 | $ 37,010 | $ 35,000 | $ 33,326 | $ 33,171 | $ 36,683 | $ 36,771 | $ 162,196 | $ 139,951 | $ 118,407 |
Net income per common share: | |||||||||||
Basic (in dollars per share) | $ 0.73 | $ 0.47 | $ 0.48 | $ 0.44 | $ 0.41 | $ 0.40 | $ 0.44 | $ 0.44 | $ 2.12 | $ 1.69 | $ 1.34 |
Diluted (in dollars per share) | $ 0.73 | $ 0.47 | $ 0.48 | $ 0.44 | $ 0.41 | $ 0.40 | $ 0.44 | $ 0.44 | $ 2.11 | $ 1.68 | $ 1.33 |
Weighted average shares outstanding: | |||||||||||
Basic (in shares) | 74,294 | 75,676 | 76,905 | 79,048 | 81,282 | 83,081 | 83,315 | 83,876 | 76,491 | 82,892 | 88,398 |
Diluted (in shares) | 74,830 | 76,182 | 77,318 | 79,385 | 81,599 | 83,373 | 83,703 | 84,320 | 76,978 | 83,309 | 89,016 |