Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 29, 2019 | |
Cover page. | ||
Entity File Number | 000-26041 | |
Entity Address, Address Line One | 801 5th Avenue | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | FFIV | |
Entity Incorporation, State or Country Code | WA | |
Document Transition Report | false | |
Document Quarterly Report | true | |
Entity Registrant Name | F5 NETWORKS, INC. | |
Entity Central Index Key | 0001048695 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 60,130,021 | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Tax Identification Number | 91-1714307 | |
Security Exchange Name | NASDAQ | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98104 | |
City Area Code | 206 | |
Local Phone Number | 272-5555 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 688,350 | $ 424,707 |
Short-term investments | 298,137 | 614,705 |
Accounts receivable, net of allowances of $2,562 and $2,040 | 320,465 | 295,352 |
Inventories | 36,009 | 30,568 |
Other current assets | 161,940 | 52,326 |
Total current assets | 1,504,901 | 1,417,658 |
Property and equipment, net | 226,002 | 145,042 |
Long-term investments | 161,619 | 411,184 |
Deferred tax assets | 25,079 | 33,441 |
Goodwill | 1,065,379 | 555,965 |
Other assets, net | 194,295 | 42,186 |
Total assets | 3,177,275 | 2,605,476 |
Current liabilities | ||
Accounts payable | 55,630 | 57,757 |
Accrued liabilities | 213,195 | 180,979 |
Deferred revenue | 803,241 | 715,697 |
Total current liabilities | 1,072,066 | 954,433 |
Other long-term liabilities | 117,804 | 65,892 |
Deferred revenue, long-term | 363,271 | 299,624 |
Deferred tax liabilities | 352 | 35 |
Total long-term liabilities | 481,427 | 365,551 |
Commitments and contingencies (Note 7) | ||
Shareholders’ equity | ||
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, no par value; 200,000 shares authorized, 60,129 and 60,215 shares issued and outstanding | 98,722 | 20,427 |
Accumulated other comprehensive loss | (18,193) | (22,178) |
Retained earnings | 1,543,253 | 1,287,243 |
Total shareholders’ equity | 1,623,782 | 1,285,492 |
Total liabilities and shareholders’ equity | $ 3,177,275 | $ 2,605,476 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 2,562 | $ 2,040 |
Preferred stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 60,129,000 | 60,215,000 |
Common stock, shares outstanding | 60,129,000 | 60,215,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 563,394 | $ 542,203 | $ 1,652,059 | $ 1,598,698 |
Cost of net revenues | ||||
Cost of net revenues | 90,767 | 91,009 | 265,659 | 268,041 |
Gross profit | 472,627 | 451,194 | 1,386,400 | 1,330,657 |
Operating expenses | ||||
Sales and marketing | 195,852 | 165,806 | 531,065 | 503,710 |
Research and development | 116,894 | 94,061 | 305,246 | 271,006 |
General and administrative | 57,141 | 39,374 | 146,340 | 118,634 |
Total | 369,887 | 299,241 | 982,651 | 893,350 |
Income from operations | 102,740 | 151,953 | 403,749 | 437,307 |
Other income, net | 4,722 | 2,259 | 19,251 | 7,194 |
Income before income taxes | 107,462 | 154,212 | 423,000 | 444,501 |
Income Tax Expense (Benefit) | 21,557 | 31,469 | 90,103 | 123,693 |
Net income | $ 85,905 | $ 122,743 | $ 332,897 | $ 320,808 |
Net income per share — basic (dollars per share) | $ 1.43 | $ 2.01 | $ 5.55 | $ 5.21 |
Weighted average shares — basic (shares) | 59,981 | 60,970 | 59,963 | 61,531 |
Net income per share — diluted (dollars per share) | $ 1.43 | $ 1.99 | $ 5.51 | $ 5.16 |
Weighted average shares — diluted (shares) | 60,196 | 61,633 | 60,372 | 62,214 |
Product [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 248,929 | $ 238,835 | $ 720,665 | $ 703,696 |
Cost of net revenues | ||||
Cost of net revenues | 44,336 | 45,164 | 130,293 | 132,556 |
Service [Member] | ||||
Revenue from Contract with Customer, Excluding Assessed Tax | 314,465 | 303,368 | 931,394 | 895,002 |
Cost of net revenues | ||||
Cost of net revenues | $ 46,431 | $ 45,845 | $ 135,366 | $ 135,485 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income | $ 85,905 | $ 122,743 | $ 332,897 | $ 320,808 |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | 118 | (1,441) | 61 | (896) |
Available-for-sale securities: | ||||
Unrealized gains (losses) on securities, net of taxes of $197 and $177 for the three months ended June 30, 2019 and 2018, respectively, and $940 and $(1,010) for the nine months ended June 30, 2019 and 2018, respectively | 918 | 436 | 3,811 | (3,100) |
Reclassification adjustment for realized losses included in net income, net of taxes of $(35) and $0 for the three months ended June 30, 2019 and 2018, respectively, and $(35) and $(4) for the nine months ended June 30, 2019 and 2018, respectively | 112 | 1 | 113 | 10 |
Net change in unrealized gains (losses) on available-for-sale securities, net of tax | 1,030 | 437 | 3,924 | (3,090) |
Total other comprehensive income (loss) | 1,148 | (1,004) | 3,985 | (3,986) |
Comprehensive income | $ 87,053 | $ 121,739 | $ 336,882 | $ 316,822 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of unrealized gain (loss) on securities | $ 197 | $ 177 | $ 940 | $ (1,010) |
Tax effect of reclassification adjustment for realized (gains) losses | $ (35) | $ 0 | $ (35) | $ (4) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) $ in Thousands | Total | Common Stock [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Parent [Member] |
Common stock, shares outstanding | 62,594,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,229,392 | $ 17,627 | $ 1,229,762 | $ (17,997) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 3 | 3 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 475,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 48,815 | 48,815 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 959,000 | ||||
Stock Repurchased and Retired During Period, Shares | (3,211,000) | ||||
Stock Repurchased and Retired During Period, Value | $ (450,064) | (167,444) | (282,620) | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 121,007 | 121,007 | |||
Net income | 320,808 | 320,808 | |||
Other Comprehensive Income (Loss), Net of Tax | $ (3,986) | (3,986) | |||
Common stock, shares outstanding | 61,115,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,226,614 | 21,120 | 1,226,474 | (20,980) | |
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 282,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 28,900 | 28,900 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 324,000 | ||||
Stock Repurchased and Retired During Period, Shares | (903,000) | ||||
Stock Repurchased and Retired During Period, Value | $ (150,018) | (68,751) | (81,267) | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 38,739 | 38,739 | |||
Net income | 122,743 | 122,743 | |||
Other Comprehensive Income (Loss), Net of Tax | $ (1,004) | (1,003) | $ (1,003) | ||
Common stock, shares outstanding | 60,818,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,265,975 | 20,008 | 1,267,950 | (21,983) | |
Common stock, shares outstanding | 60,215,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,285,492 | 20,427 | 1,287,243 | (22,178) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 16 | 16 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 334,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 45,439 | 45,439 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 765,000 | ||||
Stock Repurchased and Retired During Period, Shares | (1,185,881) | ||||
Stock Repurchased and Retired During Period, Value | $ (201,045) | (88,110) | (112,935) | ||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | 120,950 | 120,950 | |||
Net income | 332,897 | 332,897 | |||
Other Comprehensive Income (Loss), Net of Tax | $ 3,985 | 3,985 | |||
Common stock, shares outstanding | 59,695,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,467,408 | 29,401 | 1,457,348 | (19,341) | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period | 1,000 | ||||
Stock Issued During Period, Value, Stock Options Exercised | $ 16 | 16 | |||
Stock Issued During Period, Shares, Employee Stock Purchase Plans | 199,000 | ||||
Stock Issued During Period, Value, Employee Stock Purchase Plan | $ 26,539 | 26,539 | |||
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 234,000 | ||||
Shares Issued, Value, Share-based Payment Arrangement, after Forfeiture | $ 42,766 | 42,766 | |||
Net income | 85,905 | 85,905 | |||
Other Comprehensive Income (Loss), Net of Tax | $ 1,148 | 1,148 | |||
Common stock, shares outstanding | 60,129,000 | ||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest | $ 1,623,782 | $ 98,722 | $ 1,543,253 | $ (18,193) |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Cash Flows [Abstract] | ||
Other Significant Noncash Transaction, Value of Consideration Received | $ 34,487 | $ 0 |
Operating activities | ||
Net income | 332,897 | 320,808 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Realized loss on disposition of assets and investments | 606 | 64 |
Stock-based compensation | 119,182 | 121,007 |
Provisions for doubtful accounts and sales returns | 65 | 1,494 |
Depreciation and amortization | 46,645 | 44,081 |
Deferred income taxes | 10,171 | 19,241 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (16,249) | (6,945) |
Inventories | (5,441) | (1,488) |
Other current assets | (54,381) | 11,590 |
Other assets | (8,785) | (68) |
Accounts payable and accrued liabilities | 37,932 | (16,423) |
Deferred revenue | 79,113 | 63,402 |
Net cash provided by operating activities | 541,755 | 556,763 |
Investing activities | ||
Purchases of investments | (210,109) | (499,084) |
Maturities of investments | 507,804 | 295,479 |
Sales of investments | 276,278 | 10,748 |
Cash provided by sale of fixed asset | 0 | 1,000 |
Payments to Acquire Businesses, Net of Cash Acquired | 611,550 | 0 |
Purchases of property and equipment | (83,008) | (36,074) |
Net cash used in investing activities | (120,585) | (227,931) |
Financing activities | ||
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan | 45,455 | 48,818 |
Repurchase of common stock | (201,045) | (450,064) |
Net cash used in financing activities | (155,590) | (401,246) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 265,580 | (72,414) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (111) | (1,588) |
Cash, cash equivalents and restricted cash, beginning of period | 425,894 | 674,452 |
Cash, cash equivalents and restricted cash, end of period | $ 688,350 | $ 599,268 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business F5 Networks, Inc. (the “Company”) is the leading developer and provider of application services. The Company’s core technology is a full-proxy, programmable, highly-scalable software platform called TMOS, which supports a broad array of features and functions designed to ensure that applications delivered over Internet Protocol (IP) networks are secure, fast and available. The Company’s offerings include software products for local and global traffic management, network and application security, identity and access management, web acceleration and a number of other network and application services. F5 offerings are available via software that can run individually or as part of an integrated solution on the Company’s high-performance, scalable, purpose-built BIG-IP appliances and VIPRION chassis-based hardware, as software-only Virtual Editions, or as software-based services available through a number of leading cloud marketplaces. The Company also offers distributed denial-of-service ( DDoS) protection, application security and other application services by subscription on its cloud-based Silverline managed service platform. In connection with its products, the Company offers a broad range of support and services including consulting, training, installation and maintenance. On May 8, 2019, the Company completed the acquisition of Nginx, Inc. ("Nginx"), the open source leader in application delivery for modern applications. The combined company will enable multi-cloud application services across all environments, providing the ease-of-use and flexibility developers require while also delivering the scale, security, reliability and enterprise readiness network operations teams demand. Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . There have been no material changes to our significant accounting policies as of and for the three and nine months ended June 30, 2019 , except for the accounting policies for revenue recognition and deferred contract costs that were updated as a result of adopting Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). For more information, refer to the "Revenue Recognition" and "Recently Adopted Accounting Standards" sections of Note 1 and Note 2 - Revenue from Contracts with Customers. Revenue Recognition On October 1, 2018, the Company adopted the new revenue recognition standard by applying the modified retrospective approach to those contracts which were not completed as of October 1, 2018. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue recognition standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. The Company sells products through distributors, resellers, and directly to end users. Revenue related to the Company's contracts with customers is recognized by following a five-step process: • Identify the contract(s) with a customer. Evidence of a contract generally consists of a purchase order issued pursuant to the terms and conditions of a distributor, reseller or end user agreement. • Identify the performance obligations in the contract. Performance obligations are explicitly identified in the Company's contracts and include hardware-based software, software-only solutions, cloud-based subscription services as well as a broad range of service performance obligations including consulting, training, installation and maintenance. • Determine the transaction price. The purchase price stated in an agreed upon purchase order is generally representative of the transaction price. The Company offers several programs in which customers are eligible for certain levels of rebates if certain conditions are met. When determining the transaction price, the Company considers the effects of any variable consideration. • Allocate the transaction price to the performance obligations in the contract. The transaction price in a contract is allocated based upon the relative standalone selling price of each distinct performance obligation identified in the contract. • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring control of promised products and services to a customer. The following is a description of the principal activities from which the Company generates revenue: Product Revenue from the sale of the Company's hardware and perpetual software products is generally recognized at a point in time when the product has been delivered and the customer is obligated to pay for the product. When rights of return are present and the Company cannot estimate returns, revenue is recognized when such rights of return lapse. Payment terms to domestic customers are generally net 30 days to net 45 days. Payment terms to international customers range from net 30 days to net 120 days based on normal and customary trade practices in the individual markets. Subscription The Company also offers several products by subscription, either through term-based license agreements or as a service through its cloud-based Silverline platform. Revenue for term-based license agreements is recognized at a point in time, when the Company delivers the software license to the customer and the subscription term has commenced. For the Company's software-as-a-service Silverline offerings, revenue is recognized ratably as the services are provided. Support and professional services Revenues for post-contract customer support (PCS) are recognized on a straight-line basis over the service contract term. PCS includes a limited period of telephone support, updates, repair or replacement of any failed product or component that fails during the term of the agreement, bug fixes and rights to upgrades, when and if available. Consulting services are customarily billed at fixed hourly rates, plus out-of-pocket expenses, and revenues are recognized as the consulting is completed. Similarly, training revenue is recognized as the training is completed. Contract acquisition costs Sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial service contracts and subscription offerings are deferred and then amortized as an expense on a straight-line basis over the period of benefit which management has determined to be 4.5 years and 3 years , respectively. Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price (SSP) for each distinct performance obligation. The Company sells post-contract customer support (PCS), subscriptions and professional services on a standalone basis and can therefore use a population of historical standalone sales to determine fair value. For distinct performance obligations that the Company does not generally sell on a standalone basis (hardware and perpetual software), a combination of the adjusted market assessment approach and the expected cost plus a margin approach are used to estimate the SSP. Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash and cash equivalents in deposits with five major financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash and cash equivalents. Amounts included in restricted cash represent those required to be set aside by a contractual agreement. The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s consolidated statements of cash flows for the periods presented (in thousands): June 30, June 30, 2019 2018 Cash and cash equivalents $ 688,350 $ 599,268 Restricted cash included in other assets, net 3,013 1,182 Total cash, cash equivalents and restricted cash $ 691,363 $ 600,450 Inventories The Company outsources the manufacturing of its pre-configured hardware platforms to contract manufacturers, who assemble each product to the Company’s specifications. As protection against component shortages and to provide replacement parts for its service teams, the Company also stocks limited supplies of certain key product components. The Company reduces inventory to net realizable value based on excess and obsolete inventories determined primarily by historical usage and forecasted demand. Inventories consist of hardware and related component parts and are recorded at the lower of cost and net realizable value (as determined by the first-in, first-out method). Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill has been recorded in connection with various acquisitions, including the acquisition on Nginx in the third quarter of fiscal 2019. For its annual goodwill impairment test in all periods to date, the Company has operated under one reporting unit and the fair value of its reporting unit has been determined by the Company’s enterprise value. The Company performs its annual goodwill impairment test during the second fiscal quarter. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. For its annual impairment test performed in the second quarter of fiscal 2019, the Company completed a quantitative assessment and determined that there was no impairment of goodwill. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from two to fifteen years . The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at June 30, 2019 and noted no indicators of impairment. Software Development Costs The authoritative guidance requires certain internal software development costs related to software to be sold to be capitalized upon the establishment of technological feasibility. The Company's software development costs incurred subsequent to achieving technological feasibility have not been significant and, as a result all software development costs have been expensed as research and development activities as incurred. Internal Use Software In accordance with the authoritative guidance, the Company capitalizes application development stage costs associated with the development of internal-use software and software developed related to its SaaS-based product offerings. The capitalized costs are then amortized over the estimated useful life of the software, which is generally three to five years , and are included in property and equipment in the accompanying consolidated balance sheets. Stock-Based Compensation The Company accounts for stock-based compensation using the straight-line attribution method for recognizing compensation expense. The Company recognized $41.0 million and $38.7 million of stock-based compensation expense for the three months ended June 30, 2019 and 2018 , respectively and $119.2 million and $121.0 million of stock-based compensation expense for the nine months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , there was $176.1 million of total unrecognized stock-based compensation cost, the majority of which will be recognized over the next two years . Going forward, stock-based compensation expenses may increase as the Company issues additional equity-based awards to continue to attract and retain key employees. The Company issues incentive awards to its employees through stock-based compensation consisting of restricted stock units (RSUs). On October 31, 2018 , the Company’s Board of Directors and Compensation Committee approved 774,313 RSUs to employees and executive officers pursuant to the Company’s annual equity awards program. The value of RSUs is determined using the fair value method, which in this case, is based on the number of shares granted and the quoted price of the Company’s common stock on the date of grant. The Company recognizes compensation expense for only the portion of restricted stock units that are expected to vest. Therefore, the Company applies estimated forfeiture rates that are derived from historical employee termination behavior. Based on historical differences with forfeitures of stock-based awards granted to the Company’s executive officers and Board of Directors versus grants awarded to all other employees, the Company has developed separate forfeiture expectations for these two groups. In determining the fair value of shares issued under the Employee Stock Purchase Plan (ESPP), the Company uses the Black-Scholes option pricing model. Compensation expense related to the shares issued pursuant to the ESPP is recognized on a straight-line basis over the offering period. The Company issues incentive awards to certain current executive officers as part of its annual equity awards program. Fifty percent of the aggregate number of RSUs issued to executive officers vest in equal quarterly increments, and 50% are subject to the Company achieving specified performance goals. For performance stock awards granted prior to fiscal 2018, attainment is based on the Company achieving specific quarterly revenue and EBITDA targets. In each case, 70% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal set by the Company's Board of Directors, and the other 30% is based on achieving at least 80% of the quarterly EBITDA goal set by the Company's Board of Directors. The quarterly performance stock grant is paid linearly over 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100% . Each goal is evaluated individually and subject to the 80% achievement threshold and the 100% over-achievement threshold. Each goal is also capped at achievement of 200% above target. For the fiscal 2018 and 2019 performance stock awards, the Company's Compensation Committee adopted a new set of metrics that are differentiated from the quarterly revenue and EBITDA measures, including (1) 50% of the annual performance stock grant is based on achieving 80% of the annual revenue goal set by the Company’s Board of Directors; (2) 25% of the annual performance stock grant is based on achieving at least a 18% increase in annual software revenue compared to the prior year; and (3) 25% of the annual performance stock grant is based on relative total shareholder return benchmarked to the S&P 500 index. In each case, no vesting or payment with respect to a performance goal shall occur unless a minimum threshold is met for the applicable goal. Vesting and payment with respect to the performance goal is linear above the threshold of the applicable goal and is capped at achievement of 200% above target. As of June 30, 2019 , the following annual equity grants for executive officers or a portion thereof are outstanding: Grant Date RSUs Granted Vesting Schedule Vesting Period Date Fully Vested November 1, 2018 144,066 Quarterly, Annually 1 3 years November 1, 2021 November 1, 2017 140,135 Quarterly, Annually 1 4 years November 1, 2021 November 1, 2016 115,347 Quarterly 4 years November 1, 2020 November 2, 2015 145,508 Quarterly 4 years November 1, 2019 (1) 50% of the annual equity grant vests in equal quarterly increments and 50% is subject to the Company achieving specified annual performance goals. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment. Common Stock Repurchase On October 31, 2018 , the Company announced that its Board of Directors authorized an additional $1.0 billion for its common stock share repurchase program. This new authorization is incremental to the existing $4.4 billion program, initially approved in October 2010 and expanded in each fiscal year. Acquisitions for the share repurchase programs will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. For the nine months ended June 30, 2019 , the Company repurchased and retired 1,185,881 shares at an average price of $169.53 per share and the Company had $1.4 billion remaining authorized to purchase shares at June 30, 2019 . In the second quarter of fiscal 2019, the Company announced that, in connection with its acquisition of Nginx, it was suspending the automatic component of its common stock share repurchase program. Management will continue to evaluate market conditions and other factors including the Company’s capital requirements in determining when and whether to repurchase shares and when and whether to re-implement an automatic component of its repurchase program. The program does not require the purchase of any minimum number of shares and the program may be modified, suspended or discontinued at any time. Earnings Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company’s nonvested restricted stock awards and restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents and are not considered participating securities that should be included in the computation of earnings per share under the two-class method. The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended Nine months ended 2019 2018 2019 2018 Numerator Net income $ 85,905 $ 122,743 $ 332,897 $ 320,808 Denominator Weighted average shares outstanding — basic 59,981 60,970 59,963 61,531 Dilutive effect of common shares from stock options and restricted stock units 215 663 409 683 Weighted average shares outstanding — diluted 60,196 61,633 60,372 62,214 Basic net income per share $ 1.43 $ 2.01 $ 5.55 $ 5.21 Diluted net income per share $ 1.43 $ 1.99 $ 5.51 $ 5.16 Anti-dilutive stock-based awards excluded from the calculations of diluted earnings per share were immaterial for the three and nine months ended June 30, 2019 and 2018. Comprehensive Income Comprehensive income includes certain changes in equity that are excluded from net income. Specifically, unrealized gains or losses on securities and foreign currency translation adjustments are included in accumulated other comprehensive income or loss. Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 and the related amendments outline a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company adopted this new accounting standard and the related amendments on October 1, 2018 using the modified retrospective method. See Note 2 - Revenue from Contracts with Customers for further details. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. The Company adopted this new accounting standard on October 1, 2018, which resulted in an immaterial reclassification of beginning and ending cash, cash equivalents and restricted cash for the periods presented within the statement of cash flows. Upon adoption of this new standard, restricted cash activity is no longer separately presented within the investing activities in the statement of cash flows. The overall adoption of the standard did not have a material impact to the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), which provides a more robust framework to use in determining when a set of assets and activities is considered a business. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (ASU 2017-09), which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than twelve months. The Company’s leases consist of operating leases for its offices and lab spaces. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. Adoption of the new lease standard requires measurement of leases at the beginning of the earliest period presented on a modified retrospective basis. The new standard will be effective for the Company beginning October 1, 2019. The Company anticipates that its long-term leases for office space will be recognized as lease liabilities and corresponding right-of-use assets, and will have a material impact on its consolidated balance sheets upon adoption. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) (ASU 2018-11), which provides an optional transition method to adopt ASU 2016-02, Leases (Topic 842) by allowing lessees to apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Comparative periods will still be presented under current GAAP (ASC 840), along with the applicable Topic 840 disclosures for those comparative periods. The new standard is effective at the same time as adoption of ASU 2016-02, Leases (Topic 842), which the Company is planning to adopt in the first quarter of fiscal year 2020. The Company plans to adopt the transitional provisions allowed under ASU 2018-11. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and hosting arrangements that include an internal use software license. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers (Notes) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers The following table summarizes the impact of adopting ASC 606 on the Company's consolidated balance sheet as of the date of adoption, October 1, 2018. This table does not represent the full consolidated balance sheet as it only reflects the accounts impacted by the adoption of ASC 606. Ending Balance as of September 30, 2018 (ASC 605) ASC 606 Adjustments Beginning Balance as of October 1, 2018 (ASC 606) Assets Other current assets 1 $ 52,326 $ 50,558 $ 102,884 Other assets, net 1 $ 42,186 $ 59,676 $ 101,862 Deferred tax assets $ 33,441 $ (7,902 ) $ 25,539 Liabilities and Shareholders' Equity Deferred revenue $ 715,697 $ 35,464 $ 751,161 Deferred revenue, long-term $ 299,624 $ 32,614 $ 332,238 Retained earnings 2 $ 1,287,243 $ 36,048 $ 1,323,291 (1) Upon the adoption of ASC 606, capitalized contract acquisition costs and unbilled accounts receivable are reported as part of other current assets and other assets, net. (2) The net increase to retained earnings of $36.0 million was primarily related to the capitalization of contract acquisition costs of $54.6 million , partially offset by a decrease of $8.8 million due to changes in deferred revenue and a decrease of $7.9 million from the impact on deferred income taxes. As a result of an increase in sales of the Company's software solutions sold as Enterprise License Agreements and annual subscriptions, the adoption of ASC 606 had a material impact to the Company's consolidated balance sheet as of June 30, 2019 and consolidated income statements for the three and nine months ended June 30, 2019. The following table summarizes the impact of adopting ASC 606 on the Company's consolidated balance sheet as of June 30, 2019 (in thousands): June 30, 2019 As Reported (ASC 606) Impacts Subsequent to the Date of Adoption Impacts on the Date of Adoption (October 1, 2018) Without Adoption (ASC 605) Assets Other current assets $ 161,940 $ 23,480 $ 50,558 $ 87,902 Other assets, net $ 194,295 $ 11,714 $ 59,676 $ 122,905 Deferred tax assets $ 25,079 $ (1,961 ) $ (7,902 ) $ 34,942 Total assets $ 3,177,275 $ 33,233 $ 102,332 $ 3,041,710 Liabilities and Shareholders' Equity Accrued liabilities $ 213,195 $ 4,916 $ — $ 208,279 Deferred revenue $ 803,241 $ 11,589 $ 35,464 $ 756,188 Deferred revenue, long-term $ 363,271 $ (10,472 ) $ 32,614 $ 341,129 Total liabilities $ 1,553,493 $ 6,033 $ 68,078 $ 1,479,382 Retained earnings $ 1,543,253 $ 25,406 $ 36,048 $ 1,481,799 Total liabilities and shareholders' equity $ 3,177,275 $ 31,439 $ 104,126 $ 3,041,710 The following table summarizes the impact of adopting ASC 606 on the Company's consolidated income statement for the three months ended June 30, 2019 (in thousands): Three Months Ended June 30, 2019 As Reported (ASC 606) Effect of Adoption of ASC 606 Without Adoption (ASC 605) Total net revenues $ 563,394 $ 29,338 $ 534,056 Total cost of net revenues $ 90,767 $ 626 $ 90,141 Gross profit $ 472,627 $ 28,712 $ 443,915 Total operating expenses $ 369,887 $ (1,352 ) $ 371,239 Income before income taxes $ 107,462 $ 30,064 $ 77,398 Provision for income taxes $ 21,557 $ 6,031 $ 15,526 Net income $ 85,905 $ 24,033 $ 61,872 Net income per share — basic $ 1.43 $ 0.40 $ 1.03 Net income per share — diluted $ 1.43 $ 0.40 $ 1.03 The following table summarizes the impact of adopting ASC 606 on the Company's consolidated income statement for the nine months ended June 30, 2019 (in thousands): Nine Months Ended June 30, 2019 As Reported (ASC 606) Effect of Adoption of ASC 606 Without Adoption (ASC 605) Total net revenues $ 1,652,059 $ 36,528 $ 1,615,531 Total cost of net revenues $ 265,659 $ 2,440 $ 263,219 Gross profit $ 1,386,400 $ 34,088 $ 1,352,312 Total operating expenses $ 982,651 $ 1,805 $ 980,846 Income before income taxes $ 423,000 $ 32,283 $ 390,717 Provision for income taxes $ 90,103 $ 6,877 $ 83,226 Net income $ 332,897 $ 25,406 $ 307,491 Net income per share — basic $ 5.55 $ 0.42 $ 5.13 Net income per share — diluted $ 5.51 $ 0.42 $ 5.09 The adoption of ASC 606 did not have a material impact to cash from or used in operating, financing, or investing activities on the Company’s consolidated statement of cash flows for the nine months ended June 30, 2019. Capitalized Contract Acquisition Costs The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ — Impacts from adoption of ASC 606 $ 54,608 Additional capitalized contract acquisition costs deferred $ 22,460 Amortization of capitalized contract acquisition costs $ (21,380 ) Balance, June 30, 2019 $ 55,688 Amortization of capitalized contract acquisition costs is recorded in Sales and Marketing expense in the accompanying consolidated income statements for the three and nine months ended June 30, 2019. There was no impairment of any capitalized contract acquisition costs. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to our contracts with customers. We record assets for amounts related to performance obligations that are satisfied but not yet billed and/or collected, in addition to contracts that have started, but not yet been fully billed. These assets are recorded as contract assets rather than receivables when receipt of the consideration is conditional on something other than the passage of time. Liabilities are recorded for amounts that are collected in advance of the satisfaction of performance obligations. These liabilities are classified as current and non-current deferred revenue. The table below shows significant movements in contract assets (current and noncurrent) for the nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ — Impacts from adoption of ASC 606 $ 57,499 Revenue recognized during period but not yet billed $ 15,240 Contract asset net additions $ 50,159 Contract assets reclassified to accounts receivable $ (29,386 ) Balance, June 30, 2019 $ 93,512 As of June 30, 2019, contract assets that are expected to be reclassified to receivables within the next 12 months are included in other current assets, with those expected to be transferred to receivables in more than 12 months included in other assets. There were no impairments of contract assets during the nine months ended June 30, 2019 . The impacts to deferred revenue from the adoption of ASC 606 are primarily related to unbilled accounts receivable now being capitalized and included as contract assets on the balance sheet. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ 1,015,321 Impacts from adoption of ASC 606 $ 68,078 Amounts billed but not recognized as revenues $ 731,306 Revenues recognized related to the opening balance of deferred revenue $ (648,193 ) Balance, June 30, 2019 $ 1,166,512 Our contract assets and liabilities are reported in a net position on a contract by contract basis at the end of each reporting period. Remaining Performance Obligations Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. The Company expects to recognize this amount as revenue over the following time periods (in thousands): 2,019 2,020 Thereafter Total Revenue expected to be recognized on remaining performance obligations $ 278,529 $ 574,901 $ 313,082 $ 1,166,512 See Note 9, Geographic Sales and Significant Customers, for disaggregated revenue by significant customer and geographic region. |
Business Combinations
Business Combinations | 9 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combinations The Company’s business combinations are accounted for under the acquisition method. The total purchase price is allocated to the tangible and intangible assets acquired and the liabilities assumed based on their estimated fair values. The excess of the purchase price over those fair values is recorded as goodwill. The fair value assigned to the tangible and intangible assets acquired and liabilities assumed are based on estimates and assumptions provided by management. Goodwill is not amortized but instead is tested for impairment at least annually, as described in Note 1. Fiscal Year 2019 Acquisition of Nginx, Inc. On March 9, 2019, the Company entered into a Merger Agreement (the “Merger Agreement”) with Nginx, Inc. ("Nginx"), a provider of open source web server software and application delivery solutions. The transaction closed on May 8, 2019 with Nginx becoming a wholly-owned subsidiary of F5. Pursuant to the Merger Agreement, at the effective time of the Merger, the capital stock of Nginx and the vested outstanding and unexercised stock options in Nginx were cancelled and converted to the right to receive approximately $643.2 million in cash, subject to certain adjustments and conditions set forth in the Merger Agreement, and the unvested stock options and restricted stock units in Nginx held by continuing employees of Nginx were assumed by F5, on the terms and conditions set forth in the Merger Agreement. Included in cash consideration was $19.0 million of transaction costs paid by F5 on behalf of Nginx. In addition, the Company incurred an additional $1.0 million of transaction costs associated with the acquisition which was included in General and Administrative expenses for the third quarter of fiscal 2019. Nginx is an open source leader in application delivery. The combined company will enable multi-cloud application services across all environments, providing the ease-of-use and flexibility developers require while also delivering the scale, security, reliability and enterprise readiness network operations teams demand. As a result of the acquisition, the Company acquired all the assets and assumed all the liabilities of Nginx. The goodwill related to the Nginx acquisition is comprised primarily of expected synergies from combining operations and the acquired intangible assets that do not qualify for separate recognition. The results of operations of Nginx have been included in the Company’s consolidated financial statements from the date of acquisition. The purchase price allocation is as follows (in thousands): Assets acquired Cash and cash equivalents $ 29,911 Fair value of tangible assets: Accounts receivable 7,306 Other current assets 4,214 Property and equipment, net 1,822 Deferred tax assets 10,357 Intangible assets 89,300 Goodwill 509,414 Total assets acquired $ 652,324 Liabilities assumed Accounts payable $ (1,081 ) Deferred revenue (4,000 ) Other liabilities (4,035 ) Total liabilities assumed $ (9,116 ) Net assets acquired $ 643,208 The allocation of the purchase price and the estimated useful lives associated with certain assets is as follows (in thousands): Estimated Amount Useful Life Net tangible assets $ 44,494 — Identifiable intangible assets: Developed technologies 62,500 7 years Customer relationships 12,000 15 years Trade name 14,500 7 years Non-competition agreements 300 2 years Goodwill 509,414 — Total purchase price $ 643,208 The developed technology intangible asset will be amortized on a straight-line basis over its estimated useful life of seven years and included in cost of net product revenues. The trade names and customer relationships intangible assets will be amortized on a straight-line basis over their estimated useful lives of seven years and fifteen years, respectively, and included in sales and marketing expenses. The weighted average life of the amortizable intangible assets recognized from the Nginx merger was 8.1 years The estimated useful lives for the acquired intangible assets were based on the expected future cash flows associated with the respective asset. Tax deductible goodwill based on the Company's preliminary calculation is $437.4 million . The unaudited pro forma financial information shown below summarizes the combined results of operations for F5 and Nginx as if the closing of the acquisition had occurred on October 1, 2017, the first day of F5's fiscal year 2018. The unaudited pro forma financial information includes adjustments that are directly attributable to the business combination and are factually supportable. The adjustments primarily reflect the amortization of acquired intangible assets, share-based compensation expense for replacement awards, as well as the pro forma tax impact for such adjustments at the statutory rate. The unaudited pro forma results for the nine months ended June 30, 2018 also includes $21.8 million in non-recurring retention costs for Nginx employees and $1.0 million in transaction costs associated with the acquisition. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating these companies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisitions had occurred at the beginning of the periods presented, nor are they indicative of future results of operations (in thousands, except per share amounts): Three months ended Nine months ended 2019 2018 2019 2018 Net revenue $ 568,272 $ 546,324 $ 1,671,875 $ 1,609,341 Net income $ 100,329 $ 110,800 $ 324,074 $ 267,742 For the three and nine months ended June 30, 2019, Nginx contributed $5.1 million to F5's consolidated net revenues and $5.9 million in losses to F5's consolidated net income. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements In accordance with the authoritative guidance on fair value measurements and disclosure under GAAP, the Company determines fair value using a fair value hierarchy that distinguishes between market participant assumptions developed based on market data obtained from sources independent of the reporting entity, and the reporting entity’s own assumptions about market participant assumptions developed based on the best information available in the circumstances and expands disclosure about fair value measurements. Fair value is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date, essentially the exit price. The levels of fair value hierarchy are: Level 1: Quoted prices in active markets for identical assets and liabilities at the measurement date that the Company has the ability to access. Level 2: Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets and liabilities in active markets; quoted prices for identical or similar assets and liabilities in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3: Unobservable inputs for which there is little or no market data available. These inputs reflect management’s assumptions of what market participants would use in pricing the asset or liability. Level 1 investments are valued based on quoted market prices in active markets and include the Company’s cash equivalent investments. Level 2 investments, which include investments that are valued based on quoted prices in markets that are not active, broker or dealer quotations, actual trade data, benchmark yields or alternative pricing sources with reasonable levels of price transparency, include the Company’s certificates of deposit, corporate bonds and notes, municipal bonds and notes, U.S. government securities, U.S. government agency securities and international government securities. Fair values for the Company’s level 2 investments are based on similar assets without applying significant judgments. In addition, all of the Company’s level 2 investments have a sufficient level of trading volume to demonstrate that the fair values used are appropriate for these investments. A financial instrument’s level within the fair value hierarchy is based upon the lowest level of any input that is significant to the fair value measurement. However, the determination of what constitutes “observable” requires significant judgment by the Company. The Company considers observable data to be market data which is readily available, regularly distributed or updated, reliable and verifiable, not proprietary, and provided by independent sources that are actively involved in the relevant market. The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at June 30, 2019 , were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, Cash equivalents $ 48,807 $ 228,127 $ — $ 276,934 Short-term investments Available-for-sale securities — certificates of deposits — 734 — 734 Available-for-sale securities — corporate bonds and notes — 256,422 — 256,422 Available-for-sale securities — municipal bonds and notes — 13,054 — 13,054 Available-for-sale securities — U.S. government securities — 25,929 — 25,929 Available-for-sale securities — U.S. government agency securities — 1,998 — 1,998 Long-term investments Available-for-sale securities — corporate bonds and notes — 155,348 — 155,348 Available-for-sale securities — municipal bonds and notes — 3,776 — 3,776 Available-for-sale securities — U.S. government agency securities — 2,495 — 2,495 Total $ 48,807 $ 687,883 $ — $ 736,690 The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2018 , were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2018 Cash equivalents $ 41,468 $ 13,118 $ — $ 54,586 Short-term investments Available-for-sale securities — certificates of deposits — 2,970 — 2,970 Available-for-sale securities — corporate bonds and notes — 393,750 — 393,750 Available-for-sale securities — municipal bonds and notes — 22,524 — 22,524 Available-for-sale securities — U.S. government securities — 120,078 — 120,078 Available-for-sale securities — U.S. government agency securities — 75,383 — 75,383 Long-term investments Available-for-sale securities — corporate bonds and notes — 367,710 — 367,710 Available-for-sale securities — municipal bonds and notes — 24,286 — 24,286 Available-for-sale securities — U.S. government securities — 12,771 — 12,771 Available-for-sale securities — U.S. government agency securities — 6,417 — 6,417 Total $ 41,468 $ 1,039,007 $ — $ 1,080,475 The Company uses the fair value hierarchy for financial assets and liabilities. The Company’s non-financial assets and liabilities, which include goodwill, intangible assets, and long-lived assets, are not required to be carried at fair value on a recurring basis. These non-financial assets and liabilities are measured at fair value on a non-recurring basis when there is an indicator of impairment, and they are recorded at fair value only when impairment is recognized. The Company reviews goodwill and intangible assets for impairment annually, during the second quarter of each fiscal year, or as circumstances indicate the possibility of impairment. The Company monitors the carrying value of long-lived assets for impairment whenever events or changes in circumstances indicate its carrying amount may not be recoverable. During the three and nine months ended June 30, 2019 and 2018, the Company did not recognize any impairment charges related to goodwill, intangible assets, or long-lived assets. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value due to their short-term nature. |
Short-Term and Long-Term Invest
Short-Term and Long-Term Investments | 9 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Short-Term and Long-Term Investments | Short-Term and Long-Term Investments Short-term investments consist of the following (in thousands): June 30, 2019 Cost or Cost Gross Gains Gross Losses Fair Value Certificates of deposits $ 734 $ — $ — $ 734 Corporate bonds and notes 256,471 238 (287 ) 256,422 Municipal bonds and notes 13,066 3 (15 ) 13,054 U.S. government securities 25,942 10 (23 ) 25,929 U.S. government agency securities 2,000 — (2 ) 1,998 $ 298,213 $ 251 $ (327 ) $ 298,137 September 30, 2018 Cost or Cost Gross Gains Gross Losses Fair Value Certificates of deposits $ 2,970 $ — $ — $ 2,970 Corporate bonds and notes 394,684 9 (943 ) 393,750 Municipal bonds and notes 22,588 1 (65 ) 22,524 U.S. government securities 120,283 — (205 ) 120,078 U.S. government agency securities 75,587 — (204 ) 75,383 $ 616,112 $ 10 $ (1,417 ) $ 614,705 Long-term investments consist of the following (in thousands): June 30, 2019 Cost or Cost Gross Gains Gross Losses Fair Value Corporate bonds and notes $ 154,893 $ 590 $ (135 ) $ 155,348 Municipal bonds and notes 3,776 8 (8 ) 3,776 U.S. government agency securities 2,500 — (5 ) 2,495 $ 161,169 $ 598 $ (148 ) $ 161,619 September 30, 2018 Cost or Cost Gross Gains Gross Losses Fair Value Corporate bonds and notes $ 370,377 $ 25 $ (2,692 ) $ 367,710 Municipal bonds and notes 24,468 — (182 ) 24,286 U.S. government securities 12,956 — (185 ) 12,771 U.S. government agency securities 6,500 — (83 ) 6,417 $ 414,301 $ 25 $ (3,142 ) $ 411,184 The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of June 30, 2019 (in thousands): Less Than 12 Months 12 Months or Greater Total June 30, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 66,064 $ (70 ) $ 165,970 $ (352 ) $ 232,034 $ (422 ) Municipal bonds and notes 1,105 — 10,786 (23 ) 11,891 (23 ) U.S. government securities — — 12,964 (23 ) 12,964 (23 ) U.S. government agency securities — — 4,492 (7 ) 4,492 (7 ) Total $ 67,169 $ (70 ) $ 194,212 $ (405 ) $ 261,381 $ (475 ) The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of September 30, 2018 (in thousands): Less Than 12 Months 12 Months or Greater Total September 30, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 543,729 $ (1,800 ) $ 152,097 $ (1,835 ) $ 695,826 $ (3,635 ) Municipal bonds and notes 26,846 (123 ) 14,363 (124 ) 41,209 (247 ) U.S. government securities 103,470 (281 ) 29,379 (109 ) 132,849 (390 ) U.S. government agency securities 44,812 (110 ) 36,987 (177 ) 81,799 (287 ) Total $ 718,857 $ (2,314 ) $ 232,826 $ (2,245 ) $ 951,683 $ (4,559 ) The Company invests in securities that are rated investment grade or better. The Company reviews the individual securities in its portfolio to determine whether a decline in a security's fair value below the amortized cost basis is other-than-temporary. The Company determined that as of June 30, 2019 , there were no investments in its portfolio that were other-than-temporarily impaired. |
Balance Sheet Details
Balance Sheet Details | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Balance Sheet Details Inventories consist of the following (in thousands): June 30, September 30, Finished goods $ 23,103 $ 21,339 Raw materials 12,906 9,229 $ 36,009 $ 30,568 Other current assets consist of the following (in thousands): June 30, September 30, Prepaid expenses $ 82,794 $ 39,531 Unbilled accounts receivable 51,798 — Other 27,348 12,795 $ 161,940 $ 52,326 Other assets, net consist of the following (in thousands): June 30, September 30, Intangible assets $ 113,389 $ 31,259 Other 80,906 10,927 $ 194,295 $ 42,186 Other Other long-term liabilities consist of the following (in thousands): June 30, September 30, Deferred rent $ 65,526 $ 31,151 Income taxes payable 35,655 30,864 Other 16,623 3,877 $ 117,804 $ 65,892 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Guarantees and Product Warranties In the normal course of business to facilitate sales of its products, the Company indemnifies other parties, including customers, resellers, lessors, and parties to other transactions with the Company, with respect to certain matters. The Company has agreed to hold the other party harmless against losses arising from a breach of representations or covenants, or out of intellectual property infringement or other claims made against certain parties. These agreements may limit the time within which an indemnification claim can be made and the amount of the claim. The Company has entered into indemnification agreements with its officers and directors and certain other employees, and the Company’s bylaws contain similar indemnification obligations to the Company’s agents. It is not possible to determine the maximum potential amount under these indemnification agreements due to the limited history of prior indemnification claims and the unique facts and circumstances involved in each particular agreement. The Company generally offers warranties of one year for hardware for those customers without service contracts, with the option of purchasing additional warranty coverage in yearly increments. The Company accrues for warranty costs as part of its cost of sales based on associated material product costs and technical support labor costs. Accrued warranty costs as of June 30, 2019 and September 30, 2018 were not considered material. Commitments As of June 30, 2019 , the Company’s principal commitments consisted of obligations outstanding under operating leases. The Company leases its facilities under operating leases that expire at various dates through 2033. There have been no material changes in the Company's lease obligations compared to those discussed in Note 7 to its annual consolidated financial statements. The Company currently has arrangements with contract manufacturers and other suppliers for the manufacturing of its products. The arrangement with the primary contract manufacturer allows them to procure component inventory on the Company’s behalf based on a rolling production forecast provided by the Company. The Company is obligated to the purchase of component inventory that the contract manufacturer procures in accordance with the forecast, unless it gives notice of order cancellation in advance of applicable lead times. There have been no material changes in the Company's inventory purchase obligations compared to those discussed in Note 7 to its annual consolidated financial statements. Legal Proceedings On April 4, 2016, the Company sued Radware, Inc. in the United States District Court for the Western District of Washington (the case was subsequently moved to the Northern District of California) accusing Radware of infringing three Company patents. The Company’s complaint sought a jury trial and an unspecified amount of monetary damages, as well as interest, costs, and injunctive relief. Radware moved to dismiss the allegations of one patent, but the motion was denied. Radware filed inter partes review (IPR) petitions on all of the asserted Company patents, but the US Patent Office dismissed all of the petitions. Radware also filed a counterclaim asserting that the Company infringed one of its now-expired patents. The Company filed an IPR petition against Radware’s counterclaim patent that resulted in cancellation of all but four of the patent’s claims by the Patent Office. The Court then held that F5 does not infringe the four remaining claims. F5's claims against Radware were later dismissed pursuant to a settlement agreement, the terms of which are confidential. The settlement did not have a material impact to the Company's consolidated financial statements. In addition to the above referenced matters, the Company is subject to other legal proceedings, claims, and litigation arising in the ordinary course of business. Management believes that the Company has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, the Company is unable currently to determine the ultimate outcome of these or similar matters or the potential exposure to loss, if any. There are many uncertainties associated with any litigation and these actions or other third-party claims against the Company may cause it to incur costly litigation and/or substantial settlement charges that could have a material adverse effect on the Company's business, financial condition, results of operations, and cash flows. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The effective tax rate was 20.1% and 21.3% for the three and nine months ended June 30, 2019 , respectively, compared to 20.4% and 27.8% for the three and nine months ended June 30, 2018 , respectively. The effective tax rate for the three and nine months ended June 30, 2019 and June 30, 2018 includes various impacts from the Tax Cuts and Jobs Act enacted on December 22, 2017. Significant impacts for the three and nine months ended June 30, 2019 include a further reduction in the U.S. federal income tax rate to 21%, a deduction for foreign derived intangible income, a tax on global intangible low taxed income, and repeal of the deduction for income attributable to domestic production activities. The nine months ended June 30, 2018 included one-time charges for the deemed repatriation of undistributed foreign earnings, and for the remeasurement of the Company’s net deferred tax assets to reflect the change in the U.S. federal income tax rate when temporary differences are expected to reverse. At June 30, 2019 , the Company had $35.8 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. It is anticipated that the Company’s existing liabilities for unrecognized tax benefits will change within the next twelve months due to audit settlements or the expiration of statutes of limitations. The Company does not expect these changes to be material to the consolidated financial statements. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense. The Company and its subsidiaries are subject to U.S. federal income tax as well as the income tax of multiple state and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for fiscal years through September 30, 2015. Major jurisdictions where there are wholly owned subsidiaries of F5 Networks, Inc. which require income tax filings include the United Kingdom, Japan, Singapore, Australia, and Israel. The earliest periods open for review by local taxing authorities are fiscal years 2017 for the United Kingdom, 2013 for Japan, 2014 for Singapore, 2015 for Australia, and 2013 for Israel. The Company is currently under audit by the IRS for fiscal year 2016, by various states for fiscal years 2014 through 2017, and by Israel for fiscal years 2013 to 2017. Within the next four fiscal quarters, the statute of limitations will begin to close on the fiscal year 2016 federal income tax return, fiscal years 2014, 2015 and 2016 state income tax returns, and fiscal years 2013 to 2017 foreign income tax returns. |
Geographic Sales and Significan
Geographic Sales and Significant Customers | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Geographic Sales and Significant Customers | Geographic Sales and Significant Customers Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Management has determined that the Company is organized as, and operates in, one reportable operating segment: the development, marketing and sale of application services that optimize the security, performance and availability of network applications, servers and storage systems. The Company does business in three main geographic regions: the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); and the Asia Pacific region (APAC). The Company’s chief operating decision-maker reviews financial information presented on a consolidated basis accompanied by information about revenues by geographic region. The Company’s foreign offices conduct sales, marketing and support activities. Revenues are attributed by geographic location based on the location of the customer. The following presents revenues by geographic region (in thousands): Three months ended Nine months ended 2019 2018 2019 2018 Americas: United States $ 273,273 $ 275,011 $ 820,061 $ 805,594 Other 27,429 30,453 79,697 87,359 Total Americas 300,702 305,464 899,758 892,953 EMEA 132,806 130,821 418,339 406,712 Asia Pacific 1 129,886 105,918 333,962 299,033 $ 563,394 $ 542,203 $ 1,652,059 $ 1,598,698 (1) Beginning with the first quarter of fiscal 2019, revenue from Japan is now included with the APAC region. This change has been applied to all periods presented for comparability purposes. The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended Nine months ended 2019 2018 2019 2018 Ingram Micro, Inc. 17.8 % 16.9 % 18.2 % 16.3 % Tech Data 10.8 % 11.0 % 10.2 % 11.8 % Arrow ECS 1 — 10.5 % 10.3 % 10.9 % Synnex Corporation 1 — 11.4 % — 11.2 % Westcon Group, Inc. 10.0 % 10.1 % 10.3 % 10.4 % (1) Arrow ECS accounted for under 10% of total net revenue for the three months ended June 30, 2019. Synnex Corporation accounted for under 10% of total net revenue for the three and nine months ended June 30, 2019. The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): June 30, September 30, United States $ 198,902 $ 126,790 EMEA 12,405 12,538 Other countries 14,695 5,714 $ 226,002 $ 145,042 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policy) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business F5 Networks, Inc. (the “Company”) is the leading developer and provider of application services. The Company’s core technology is a full-proxy, programmable, highly-scalable software platform called TMOS, which supports a broad array of features and functions designed to ensure that applications delivered over Internet Protocol (IP) networks are secure, fast and available. The Company’s offerings include software products for local and global traffic management, network and application security, identity and access management, web acceleration and a number of other network and application services. F5 offerings are available via software that can run individually or as part of an integrated solution on the Company’s high-performance, scalable, purpose-built BIG-IP appliances and VIPRION chassis-based hardware, as software-only Virtual Editions, or as software-based services available through a number of leading cloud marketplaces. The Company also offers distributed denial-of-service ( DDoS) protection, application security and other application services by subscription on its cloud-based Silverline managed service platform. In connection with its products, the Company offers a broad range of support and services including consulting, training, installation and maintenance. On May 8, 2019, the Company completed the acquisition of Nginx, Inc. ("Nginx"), the open source leader in application delivery for modern applications. The combined company will enable multi-cloud application services across all environments, providing the ease-of-use and flexibility developers require while also delivering the scale, security, reliability and enterprise readiness network operations teams demand. |
Basis of Presentation | Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements, but does not include all disclosures required by accounting principles generally accepted in the United States of America. In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission. The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . There have been no material changes to our significant accounting policies as of and for the three and nine months ended June 30, 2019 , except for the accounting policies for revenue recognition and deferred contract costs that were updated as a result of adopting Accounting Standards Update 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). For more information, refer to the "Revenue Recognition" and "Recently Adopted Accounting Standards" sections of Note 1 and Note 2 - Revenue from Contracts with Customers. |
Revenue Recognition | Revenue Recognition On October 1, 2018, the Company adopted the new revenue recognition standard by applying the modified retrospective approach to those contracts which were not completed as of October 1, 2018. Results for reporting periods beginning after October 1, 2018 are presented under the new revenue recognition standard, while prior period amounts are not adjusted and continue to be reported under the accounting standards in effect for the prior periods. The Company sells products through distributors, resellers, and directly to end users. Revenue related to the Company's contracts with customers is recognized by following a five-step process: • Identify the contract(s) with a customer. Evidence of a contract generally consists of a purchase order issued pursuant to the terms and conditions of a distributor, reseller or end user agreement. • Identify the performance obligations in the contract. Performance obligations are explicitly identified in the Company's contracts and include hardware-based software, software-only solutions, cloud-based subscription services as well as a broad range of service performance obligations including consulting, training, installation and maintenance. • Determine the transaction price. The purchase price stated in an agreed upon purchase order is generally representative of the transaction price. The Company offers several programs in which customers are eligible for certain levels of rebates if certain conditions are met. When determining the transaction price, the Company considers the effects of any variable consideration. • Allocate the transaction price to the performance obligations in the contract. The transaction price in a contract is allocated based upon the relative standalone selling price of each distinct performance obligation identified in the contract. • Recognize revenue when (or as) the entity satisfies a performance obligation. The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring control of promised products and services to a customer. The following is a description of the principal activities from which the Company generates revenue: Product Revenue from the sale of the Company's hardware and perpetual software products is generally recognized at a point in time when the product has been delivered and the customer is obligated to pay for the product. When rights of return are present and the Company cannot estimate returns, revenue is recognized when such rights of return lapse. Payment terms to domestic customers are generally net 30 days to net 45 days. Payment terms to international customers range from net 30 days to net 120 days based on normal and customary trade practices in the individual markets. Subscription The Company also offers several products by subscription, either through term-based license agreements or as a service through its cloud-based Silverline platform. Revenue for term-based license agreements is recognized at a point in time, when the Company delivers the software license to the customer and the subscription term has commenced. For the Company's software-as-a-service Silverline offerings, revenue is recognized ratably as the services are provided. Support and professional services Revenues for post-contract customer support (PCS) are recognized on a straight-line basis over the service contract term. PCS includes a limited period of telephone support, updates, repair or replacement of any failed product or component that fails during the term of the agreement, bug fixes and rights to upgrades, when and if available. Consulting services are customarily billed at fixed hourly rates, plus out-of-pocket expenses, and revenues are recognized as the consulting is completed. Similarly, training revenue is recognized as the training is completed. Contract acquisition costs Sales commissions earned by the Company's sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial service contracts and subscription offerings are deferred and then amortized as an expense on a straight-line basis over the period of benefit which management has determined to be 4.5 years and 3 years , respectively. Significant Judgments The Company’s contracts with customers often include promises to transfer multiple products and services. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Judgment is also required to determine the standalone selling price (SSP) for each distinct performance obligation. The Company sells post-contract customer support (PCS), subscriptions and professional services on a standalone basis and can therefore use a population of historical standalone sales to determine fair value. For distinct performance obligations that the Company does not generally sell on a standalone basis (hardware and perpetual software), a combination of the adjusted market assessment approach and the expected cost plus a margin approach are used to estimate the SSP. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy | Cash, Cash Equivalents and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company invests its cash and cash equivalents in deposits with five major financial institutions, which, at times, may exceed federally insured limits. The Company has not experienced any losses on its cash and cash equivalents. |
Inventory, Policy | Inventories The Company outsources the manufacturing of its pre-configured hardware platforms to contract manufacturers, who assemble each product to the Company’s specifications. As protection against component shortages and to provide replacement parts for its service teams, the Company also stocks limited supplies of certain key product components. The Company reduces inventory to net realizable value based on excess and obsolete inventories determined primarily by historical usage and forecasted demand. Inventories consist of hardware and related component parts and are recorded at the lower of cost and net realizable value (as determined by the first-in, first-out method). |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill represents the excess purchase price over the estimated fair value of net assets acquired as of the acquisition date. The Company tests goodwill for impairment on an annual basis and between annual tests when impairment indicators are identified, and goodwill is written down when impaired. Goodwill has been recorded in connection with various acquisitions, including the acquisition on Nginx in the third quarter of fiscal 2019. For its annual goodwill impairment test in all periods to date, the Company has operated under one reporting unit and the fair value of its reporting unit has been determined by the Company’s enterprise value. The Company performs its annual goodwill impairment test during the second fiscal quarter. As part of the annual goodwill impairment test, the Company has the option to perform a qualitative assessment to determine whether further impairment testing is necessary. Examples of events and circumstances that might indicate that the reporting unit’s fair value is less than its carrying amount include macro-economic conditions such as deterioration in the entity’s operating environment or industry or market considerations; entity-specific events such as increasing costs, declining financial performance, or loss of key personnel; or other events such as a sustained decrease in the stock price on either an absolute basis or relative to peers. If, as a result of its qualitative assessment, it is more-likely-than-not (i.e. greater than 50% chance) that the fair value of the Company’s reporting unit is less than its carrying amount, the quantitative impairment test will be required. Otherwise, no further testing will be required. For its annual impairment test performed in the second quarter of fiscal 2019, the Company completed a quantitative assessment and determined that there was no impairment of goodwill. The Company's intangible assets subject to amortization are amortized using the straight-line method over their estimated useful lives, ranging from two to fifteen years . The Company evaluates the recoverability of intangible assets periodically by taking into account events or circumstances that may warrant revised estimates of useful lives or that indicate the asset may be impaired. The Company considered potential impairment indicators of acquired intangible assets at June 30, 2019 and noted no indicators of impairment. |
Software Development Costs | Software Development Costs The authoritative guidance requires certain internal software development costs related to software to be sold to be capitalized upon the establishment of technological feasibility. The Company's software development costs incurred subsequent to achieving technological feasibility have not been significant and, as a result all software development costs have been expensed as research and development activities as incurred. |
Internal Use Software | Internal Use Software In accordance with the authoritative guidance, the Company capitalizes application development stage costs associated with the development of internal-use software and software developed related to its SaaS-based product offerings. The capitalized costs are then amortized over the estimated useful life of the software, which is generally three to five years , and are included in property and equipment in the accompanying consolidated balance sheets. |
Stock-Based Compensation | Stock-Based Compensation The Company accounts for stock-based compensation using the straight-line attribution method for recognizing compensation expense. The Company recognized $41.0 million and $38.7 million of stock-based compensation expense for the three months ended June 30, 2019 and 2018 , respectively and $119.2 million and $121.0 million of stock-based compensation expense for the nine months ended June 30, 2019 and 2018 , respectively. As of June 30, 2019 , there was $176.1 million of total unrecognized stock-based compensation cost, the majority of which will be recognized over the next two years . Going forward, stock-based compensation expenses may increase as the Company issues additional equity-based awards to continue to attract and retain key employees. The Company issues incentive awards to its employees through stock-based compensation consisting of restricted stock units (RSUs). On October 31, 2018 , the Company’s Board of Directors and Compensation Committee approved 774,313 RSUs to employees and executive officers pursuant to the Company’s annual equity awards program. The value of RSUs is determined using the fair value method, which in this case, is based on the number of shares granted and the quoted price of the Company’s common stock on the date of grant. The Company recognizes compensation expense for only the portion of restricted stock units that are expected to vest. Therefore, the Company applies estimated forfeiture rates that are derived from historical employee termination behavior. Based on historical differences with forfeitures of stock-based awards granted to the Company’s executive officers and Board of Directors versus grants awarded to all other employees, the Company has developed separate forfeiture expectations for these two groups. In determining the fair value of shares issued under the Employee Stock Purchase Plan (ESPP), the Company uses the Black-Scholes option pricing model. Compensation expense related to the shares issued pursuant to the ESPP is recognized on a straight-line basis over the offering period. The Company issues incentive awards to certain current executive officers as part of its annual equity awards program. Fifty percent of the aggregate number of RSUs issued to executive officers vest in equal quarterly increments, and 50% are subject to the Company achieving specified performance goals. For performance stock awards granted prior to fiscal 2018, attainment is based on the Company achieving specific quarterly revenue and EBITDA targets. In each case, 70% of the quarterly performance stock grant is based on achieving at least 80% of the quarterly revenue goal set by the Company's Board of Directors, and the other 30% is based on achieving at least 80% of the quarterly EBITDA goal set by the Company's Board of Directors. The quarterly performance stock grant is paid linearly over 80% of the targeted goals. At least 100% of both goals must be attained in order for the quarterly performance stock grant to be awarded over 100% . Each goal is evaluated individually and subject to the 80% achievement threshold and the 100% over-achievement threshold. Each goal is also capped at achievement of 200% above target. For the fiscal 2018 and 2019 performance stock awards, the Company's Compensation Committee adopted a new set of metrics that are differentiated from the quarterly revenue and EBITDA measures, including (1) 50% of the annual performance stock grant is based on achieving 80% of the annual revenue goal set by the Company’s Board of Directors; (2) 25% of the annual performance stock grant is based on achieving at least a 18% increase in annual software revenue compared to the prior year; and (3) 25% of the annual performance stock grant is based on relative total shareholder return benchmarked to the S&P 500 index. In each case, no vesting or payment with respect to a performance goal shall occur unless a minimum threshold is met for the applicable goal. Vesting and payment with respect to the performance goal is linear above the threshold of the applicable goal and is capped at achievement of 200% above target. As of June 30, 2019 , the following annual equity grants for executive officers or a portion thereof are outstanding: Grant Date RSUs Granted Vesting Schedule Vesting Period Date Fully Vested November 1, 2018 144,066 Quarterly, Annually 1 3 years November 1, 2021 November 1, 2017 140,135 Quarterly, Annually 1 4 years November 1, 2021 November 1, 2016 115,347 Quarterly 4 years November 1, 2020 November 2, 2015 145,508 Quarterly 4 years November 1, 2019 (1) 50% of the annual equity grant vests in equal quarterly increments and 50% is subject to the Company achieving specified annual performance goals. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance condition will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs based on the probability assessment. |
Common Stock Repurchase | Common Stock Repurchase On October 31, 2018 , the Company announced that its Board of Directors authorized an additional $1.0 billion for its common stock share repurchase program. This new authorization is incremental to the existing $4.4 billion program, initially approved in October 2010 and expanded in each fiscal year. Acquisitions for the share repurchase programs will be made from time to time in private transactions or open market purchases as permitted by securities laws and other legal requirements. For the nine months ended June 30, 2019 , the Company repurchased and retired 1,185,881 shares at an average price of $169.53 per share and the Company had $1.4 billion remaining authorized to purchase shares at June 30, 2019 . In the second quarter of fiscal 2019, the Company announced that, in connection with its acquisition of Nginx, it was suspending the automatic component of its common stock share repurchase program. Management will continue to evaluate market conditions and other factors including the Company’s capital requirements in determining when and whether to repurchase shares and when and whether to re-implement an automatic component of its repurchase program. The program does not require the purchase of any minimum number of shares and the program may be modified, suspended or discontinued at any time. |
Earnings Per Share | Earnings Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company’s nonvested restricted stock awards and restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents and are not considered participating securities that should be included in the computation of earnings per share under the two-class method. |
Comprehensive Income | Comprehensive Income Comprehensive income includes certain changes in equity that are excluded from net income. Specifically, unrealized gains or losses on securities and foreign currency translation adjustments are included in accumulated other comprehensive income or loss. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) (ASU 2014-09). ASU 2014-09 and the related amendments outline a new, single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The new model requires revenue recognition to depict the transfer of promised goods or services to customers in an amount that reflects the consideration a company expects to receive in exchange for those goods or services. The Company adopted this new accounting standard and the related amendments on October 1, 2018 using the modified retrospective method. See Note 2 - Revenue from Contracts with Customers for further details. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (ASU 2016-15), which clarifies how companies present and classify certain cash receipts and cash payments in the statement of cash flows. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash (ASU 2016-18), which requires a company’s cash flow statement to explain the changes during a reporting period of the totals for cash, cash equivalents, restricted cash and restricted cash equivalents. Additionally, amounts for restricted cash and restricted cash equivalents are to be included with cash and cash equivalents if the cash flow statement includes a reconciliation of the total cash balances for a reporting period. The Company adopted this new accounting standard on October 1, 2018, which resulted in an immaterial reclassification of beginning and ending cash, cash equivalents and restricted cash for the periods presented within the statement of cash flows. Upon adoption of this new standard, restricted cash activity is no longer separately presented within the investing activities in the statement of cash flows. The overall adoption of the standard did not have a material impact to the consolidated financial statements. In January 2017, the FASB issued ASU 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business (ASU 2017-01), which provides a more robust framework to use in determining when a set of assets and activities is considered a business. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (ASU 2017-09), which provides clarification on when modification accounting should be used for changes to the terms or conditions of a share-based payment award. This ASU does not change the accounting for modifications but clarifies that modification accounting guidance should only be applied if there is a change to the value, vesting conditions or award classification and would not be required if the changes are considered non-substantive. The Company adopted this new accounting standard on October 1, 2018. The adoption did not have an impact on the Company's consolidated financial statements. Recently Issued Accounting Pronouncements In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) (ASU 2016-02), which requires lessees to recognize on the balance sheet a right-of-use asset, representing its right to use the underlying asset for the lease term, and a corresponding lease liability for all leases with terms greater than twelve months. The Company’s leases consist of operating leases for its offices and lab spaces. The guidance also requires qualitative and quantitative disclosures designed to assess the amount, timing and uncertainty of cash flows arising from leases. Adoption of the new lease standard requires measurement of leases at the beginning of the earliest period presented on a modified retrospective basis. The new standard will be effective for the Company beginning October 1, 2019. The Company anticipates that its long-term leases for office space will be recognized as lease liabilities and corresponding right-of-use assets, and will have a material impact on its consolidated balance sheets upon adoption. In July 2018, the FASB issued ASU 2018-11, Leases (Topic 842) (ASU 2018-11), which provides an optional transition method to adopt ASU 2016-02, Leases (Topic 842) by allowing lessees to apply the new standard at the adoption date and recognize a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Comparative periods will still be presented under current GAAP (ASC 840), along with the applicable Topic 840 disclosures for those comparative periods. The new standard is effective at the same time as adoption of ASU 2016-02, Leases (Topic 842), which the Company is planning to adopt in the first quarter of fiscal year 2020. The Company plans to adopt the transitional provisions allowed under ASU 2018-11. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13), which replaces the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40) (ASU 2018-15), which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software, and hosting arrangements that include an internal use software license. The accounting for the service element of a hosting arrangement that is a service contract is not affected by the amendments in this update. The new standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. Early adoption is permitted. The Company does not anticipate that the adoption of this standard will have a material impact on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Cash and Cash Equivalents | The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s consolidated statements of cash flows for the periods presented (in thousands): June 30, June 30, 2019 2018 Cash and cash equivalents $ 688,350 $ 599,268 Restricted cash included in other assets, net 3,013 1,182 Total cash, cash equivalents and restricted cash $ 691,363 $ 600,450 |
Restrictions on Cash and Cash Equivalents | The following table provides a reconciliation of the Company’s cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company’s consolidated statements of cash flows for the periods presented (in thousands): June 30, June 30, 2019 2018 Cash and cash equivalents $ 688,350 $ 599,268 Restricted cash included in other assets, net 3,013 1,182 Total cash, cash equivalents and restricted cash $ 691,363 $ 600,450 |
Schedule of Nonvested Restricted Stock Units Activity | As of June 30, 2019 , the following annual equity grants for executive officers or a portion thereof are outstanding: Grant Date RSUs Granted Vesting Schedule Vesting Period Date Fully Vested November 1, 2018 144,066 Quarterly, Annually 1 3 years November 1, 2021 November 1, 2017 140,135 Quarterly, Annually 1 4 years November 1, 2021 November 1, 2016 115,347 Quarterly 4 years November 1, 2020 November 2, 2015 145,508 Quarterly 4 years November 1, 2019 (1) 50% of the annual equity grant vests in equal quarterly increments and 50% is subject to the Company achieving specified annual performance goals. |
Schedule of Computation of Basic and Diluted Net Income Per Share | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended Nine months ended 2019 2018 2019 2018 Numerator Net income $ 85,905 $ 122,743 $ 332,897 $ 320,808 Denominator Weighted average shares outstanding — basic 59,981 60,970 59,963 61,531 Dilutive effect of common shares from stock options and restricted stock units 215 663 409 683 Weighted average shares outstanding — diluted 60,196 61,633 60,372 62,214 Basic net income per share $ 1.43 $ 2.01 $ 5.55 $ 5.21 Diluted net income per share $ 1.43 $ 1.99 $ 5.51 $ 5.16 |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The following table summarizes the impact of adopting ASC 606 on the Company's consolidated balance sheet as of the date of adoption, October 1, 2018. This table does not represent the full consolidated balance sheet as it only reflects the accounts impacted by the adoption of ASC 606. Ending Balance as of September 30, 2018 (ASC 605) ASC 606 Adjustments Beginning Balance as of October 1, 2018 (ASC 606) Assets Other current assets 1 $ 52,326 $ 50,558 $ 102,884 Other assets, net 1 $ 42,186 $ 59,676 $ 101,862 Deferred tax assets $ 33,441 $ (7,902 ) $ 25,539 Liabilities and Shareholders' Equity Deferred revenue $ 715,697 $ 35,464 $ 751,161 Deferred revenue, long-term $ 299,624 $ 32,614 $ 332,238 Retained earnings 2 $ 1,287,243 $ 36,048 $ 1,323,291 (1) Upon the adoption of ASC 606, capitalized contract acquisition costs and unbilled accounts receivable are reported as part of other current assets and other assets, net. (2) The net increase to retained earnings of $36.0 million was primarily related to the capitalization of contract acquisition costs of $54.6 million , partially offset by a decrease of $8.8 million due to changes in deferred revenue and a decrease of $7.9 million from the impact on deferred income taxes. As a result of an increase in sales of the Company's software solutions sold as Enterprise License Agreements and annual subscriptions, the adoption of ASC 606 had a material impact to the Company's consolidated balance sheet as of June 30, 2019 and consolidated income statements for the three and nine months ended June 30, 2019. The following table summarizes the impact of adopting ASC 606 on the Company's consolidated balance sheet as of June 30, 2019 (in thousands): June 30, 2019 As Reported (ASC 606) Impacts Subsequent to the Date of Adoption Impacts on the Date of Adoption (October 1, 2018) Without Adoption (ASC 605) Assets Other current assets $ 161,940 $ 23,480 $ 50,558 $ 87,902 Other assets, net $ 194,295 $ 11,714 $ 59,676 $ 122,905 Deferred tax assets $ 25,079 $ (1,961 ) $ (7,902 ) $ 34,942 Total assets $ 3,177,275 $ 33,233 $ 102,332 $ 3,041,710 Liabilities and Shareholders' Equity Accrued liabilities $ 213,195 $ 4,916 $ — $ 208,279 Deferred revenue $ 803,241 $ 11,589 $ 35,464 $ 756,188 Deferred revenue, long-term $ 363,271 $ (10,472 ) $ 32,614 $ 341,129 Total liabilities $ 1,553,493 $ 6,033 $ 68,078 $ 1,479,382 Retained earnings $ 1,543,253 $ 25,406 $ 36,048 $ 1,481,799 Total liabilities and shareholders' equity $ 3,177,275 $ 31,439 $ 104,126 $ 3,041,710 The following table summarizes the impact of adopting ASC 606 on the Company's consolidated income statement for the three months ended June 30, 2019 (in thousands): Three Months Ended June 30, 2019 As Reported (ASC 606) Effect of Adoption of ASC 606 Without Adoption (ASC 605) Total net revenues $ 563,394 $ 29,338 $ 534,056 Total cost of net revenues $ 90,767 $ 626 $ 90,141 Gross profit $ 472,627 $ 28,712 $ 443,915 Total operating expenses $ 369,887 $ (1,352 ) $ 371,239 Income before income taxes $ 107,462 $ 30,064 $ 77,398 Provision for income taxes $ 21,557 $ 6,031 $ 15,526 Net income $ 85,905 $ 24,033 $ 61,872 Net income per share — basic $ 1.43 $ 0.40 $ 1.03 Net income per share — diluted $ 1.43 $ 0.40 $ 1.03 The following table summarizes the impact of adopting ASC 606 on the Company's consolidated income statement for the nine months ended June 30, 2019 (in thousands): Nine Months Ended June 30, 2019 As Reported (ASC 606) Effect of Adoption of ASC 606 Without Adoption (ASC 605) Total net revenues $ 1,652,059 $ 36,528 $ 1,615,531 Total cost of net revenues $ 265,659 $ 2,440 $ 263,219 Gross profit $ 1,386,400 $ 34,088 $ 1,352,312 Total operating expenses $ 982,651 $ 1,805 $ 980,846 Income before income taxes $ 423,000 $ 32,283 $ 390,717 Provision for income taxes $ 90,103 $ 6,877 $ 83,226 Net income $ 332,897 $ 25,406 $ 307,491 Net income per share — basic $ 5.55 $ 0.42 $ 5.13 Net income per share — diluted $ 5.51 $ 0.42 $ 5.09 The adoption of ASC 606 did not have a material impact to cash from or used in operating, financing, or investing activities on the Company’s consolidated statement of cash flows for the nine months ended June 30, 2019. |
Capitalized Contract Cost | The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ — Impacts from adoption of ASC 606 $ 54,608 Additional capitalized contract acquisition costs deferred $ 22,460 Amortization of capitalized contract acquisition costs $ (21,380 ) Balance, June 30, 2019 $ 55,688 |
Contract with Customer, Asset and Liability | The table below shows significant movements in contract assets (current and noncurrent) for the nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ — Impacts from adoption of ASC 606 $ 57,499 Revenue recognized during period but not yet billed $ 15,240 Contract asset net additions $ 50,159 Contract assets reclassified to accounts receivable $ (29,386 ) Balance, June 30, 2019 $ 93,512 nine months ended June 30, 2019 (in thousands): Balance, September 30, 2018 $ 1,015,321 Impacts from adoption of ASC 606 $ 68,078 Amounts billed but not recognized as revenues $ 731,306 Revenues recognized related to the opening balance of deferred revenue $ (648,193 ) Balance, June 30, 2019 $ 1,166,512 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | Remaining Performance Obligations Remaining performance obligations represent the amount of the transaction price under contracts with customers that are attributable to performance obligations that are unsatisfied or partially satisfied at the reporting date. The Company expects to recognize this amount as revenue over the following time periods (in thousands): 2,019 2,020 Thereafter Total Revenue expected to be recognized on remaining performance obligations $ 278,529 $ 574,901 $ 313,082 $ 1,166,512 |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The purchase price allocation is as follows (in thousands): Assets acquired Cash and cash equivalents $ 29,911 Fair value of tangible assets: Accounts receivable 7,306 Other current assets 4,214 Property and equipment, net 1,822 Deferred tax assets 10,357 Intangible assets 89,300 Goodwill 509,414 Total assets acquired $ 652,324 Liabilities assumed Accounts payable $ (1,081 ) Deferred revenue (4,000 ) Other liabilities (4,035 ) Total liabilities assumed $ (9,116 ) Net assets acquired $ 643,208 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The allocation of the purchase price and the estimated useful lives associated with certain assets is as follows (in thousands): Estimated Amount Useful Life Net tangible assets $ 44,494 — Identifiable intangible assets: Developed technologies 62,500 7 years Customer relationships 12,000 15 years Trade name 14,500 7 years Non-competition agreements 300 2 years Goodwill 509,414 — Total purchase price $ 643,208 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information shown below summarizes the combined results of operations for F5 and Nginx as if the closing of the acquisition had occurred on October 1, 2017, the first day of F5's fiscal year 2018. The unaudited pro forma financial information includes adjustments that are directly attributable to the business combination and are factually supportable. The adjustments primarily reflect the amortization of acquired intangible assets, share-based compensation expense for replacement awards, as well as the pro forma tax impact for such adjustments at the statutory rate. The unaudited pro forma results for the nine months ended June 30, 2018 also includes $21.8 million in non-recurring retention costs for Nginx employees and $1.0 million in transaction costs associated with the acquisition. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating these companies. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisitions had occurred at the beginning of the periods presented, nor are they indicative of future results of operations (in thousands, except per share amounts): Three months ended Nine months ended 2019 2018 2019 2018 Net revenue $ 568,272 $ 546,324 $ 1,671,875 $ 1,609,341 Net income $ 100,329 $ 110,800 $ 324,074 $ 267,742 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at June 30, 2019 , were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at June 30, Cash equivalents $ 48,807 $ 228,127 $ — $ 276,934 Short-term investments Available-for-sale securities — certificates of deposits — 734 — 734 Available-for-sale securities — corporate bonds and notes — 256,422 — 256,422 Available-for-sale securities — municipal bonds and notes — 13,054 — 13,054 Available-for-sale securities — U.S. government securities — 25,929 — 25,929 Available-for-sale securities — U.S. government agency securities — 1,998 — 1,998 Long-term investments Available-for-sale securities — corporate bonds and notes — 155,348 — 155,348 Available-for-sale securities — municipal bonds and notes — 3,776 — 3,776 Available-for-sale securities — U.S. government agency securities — 2,495 — 2,495 Total $ 48,807 $ 687,883 $ — $ 736,690 The Company’s financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2018 , were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Fair Value at September 30, 2018 Cash equivalents $ 41,468 $ 13,118 $ — $ 54,586 Short-term investments Available-for-sale securities — certificates of deposits — 2,970 — 2,970 Available-for-sale securities — corporate bonds and notes — 393,750 — 393,750 Available-for-sale securities — municipal bonds and notes — 22,524 — 22,524 Available-for-sale securities — U.S. government securities — 120,078 — 120,078 Available-for-sale securities — U.S. government agency securities — 75,383 — 75,383 Long-term investments Available-for-sale securities — corporate bonds and notes — 367,710 — 367,710 Available-for-sale securities — municipal bonds and notes — 24,286 — 24,286 Available-for-sale securities — U.S. government securities — 12,771 — 12,771 Available-for-sale securities — U.S. government agency securities — 6,417 — 6,417 Total $ 41,468 $ 1,039,007 $ — $ 1,080,475 |
Short-Term and Long-Term Inve_2
Short-Term and Long-Term Investments (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Schedule of Investments [Line Items] | |
Schedule of Short-Term and Long-Term Investments | Short-term investments consist of the following (in thousands): June 30, 2019 Cost or Cost Gross Gains Gross Losses Fair Value Certificates of deposits $ 734 $ — $ — $ 734 Corporate bonds and notes 256,471 238 (287 ) 256,422 Municipal bonds and notes 13,066 3 (15 ) 13,054 U.S. government securities 25,942 10 (23 ) 25,929 U.S. government agency securities 2,000 — (2 ) 1,998 $ 298,213 $ 251 $ (327 ) $ 298,137 September 30, 2018 Cost or Cost Gross Gains Gross Losses Fair Value Certificates of deposits $ 2,970 $ — $ — $ 2,970 Corporate bonds and notes 394,684 9 (943 ) 393,750 Municipal bonds and notes 22,588 1 (65 ) 22,524 U.S. government securities 120,283 — (205 ) 120,078 U.S. government agency securities 75,587 — (204 ) 75,383 $ 616,112 $ 10 $ (1,417 ) $ 614,705 Long-term investments consist of the following (in thousands): June 30, 2019 Cost or Cost Gross Gains Gross Losses Fair Value Corporate bonds and notes $ 154,893 $ 590 $ (135 ) $ 155,348 Municipal bonds and notes 3,776 8 (8 ) 3,776 U.S. government agency securities 2,500 — (5 ) 2,495 $ 161,169 $ 598 $ (148 ) $ 161,619 September 30, 2018 Cost or Cost Gross Gains Gross Losses Fair Value Corporate bonds and notes $ 370,377 $ 25 $ (2,692 ) $ 367,710 Municipal bonds and notes 24,468 — (182 ) 24,286 U.S. government securities 12,956 — (185 ) 12,771 U.S. government agency securities 6,500 — (83 ) 6,417 $ 414,301 $ 25 $ (3,142 ) $ 411,184 |
Schedule of Investments That Have Been in a Continuous Unrealized Loss Position | The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of June 30, 2019 (in thousands): Less Than 12 Months 12 Months or Greater Total June 30, 2019 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 66,064 $ (70 ) $ 165,970 $ (352 ) $ 232,034 $ (422 ) Municipal bonds and notes 1,105 — 10,786 (23 ) 11,891 (23 ) U.S. government securities — — 12,964 (23 ) 12,964 (23 ) U.S. government agency securities — — 4,492 (7 ) 4,492 (7 ) Total $ 67,169 $ (70 ) $ 194,212 $ (405 ) $ 261,381 $ (475 ) The following table summarizes investments that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for more than 12 months as of September 30, 2018 (in thousands): Less Than 12 Months 12 Months or Greater Total September 30, 2018 Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Corporate bonds and notes $ 543,729 $ (1,800 ) $ 152,097 $ (1,835 ) $ 695,826 $ (3,635 ) Municipal bonds and notes 26,846 (123 ) 14,363 (124 ) 41,209 (247 ) U.S. government securities 103,470 (281 ) 29,379 (109 ) 132,849 (390 ) U.S. government agency securities 44,812 (110 ) 36,987 (177 ) 81,799 (287 ) Total $ 718,857 $ (2,314 ) $ 232,826 $ (2,245 ) $ 951,683 $ (4,559 ) |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule Of Inventories | Inventories consist of the following (in thousands): June 30, September 30, Finished goods $ 23,103 $ 21,339 Raw materials 12,906 9,229 $ 36,009 $ 30,568 |
Schedule of Other Current Assets | Other current assets consist of the following (in thousands): June 30, September 30, Prepaid expenses $ 82,794 $ 39,531 Unbilled accounts receivable 51,798 — Other 27,348 12,795 $ 161,940 $ 52,326 |
Schedule of Other Assets, Noncurrent | Other assets, net consist of the following (in thousands): June 30, September 30, Intangible assets $ 113,389 $ 31,259 Other 80,906 10,927 $ 194,295 $ 42,186 |
Other Noncurrent Liabilities | Other Other long-term liabilities consist of the following (in thousands): June 30, September 30, Deferred rent $ 65,526 $ 31,151 Income taxes payable 35,655 30,864 Other 16,623 3,877 $ 117,804 $ 65,892 |
Geographic Sales and Signific_2
Geographic Sales and Significant Customers (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | The following presents revenues by geographic region (in thousands): Three months ended Nine months ended 2019 2018 2019 2018 Americas: United States $ 273,273 $ 275,011 $ 820,061 $ 805,594 Other 27,429 30,453 79,697 87,359 Total Americas 300,702 305,464 899,758 892,953 EMEA 132,806 130,821 418,339 406,712 Asia Pacific 1 129,886 105,918 333,962 299,033 $ 563,394 $ 542,203 $ 1,652,059 $ 1,598,698 (1) Beginning with the first quarter of fiscal 2019, revenue from Japan is now included with the APAC region. This change has been applied to all periods presented for comparability purposes. |
Schedule of Revenue by Major Customers by Reporting Segments | The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended Nine months ended 2019 2018 2019 2018 Ingram Micro, Inc. 17.8 % 16.9 % 18.2 % 16.3 % Tech Data 10.8 % 11.0 % 10.2 % 11.8 % Arrow ECS 1 — 10.5 % 10.3 % 10.9 % Synnex Corporation 1 — 11.4 % — 11.2 % Westcon Group, Inc. 10.0 % 10.1 % 10.3 % 10.4 % (1) Arrow ECS accounted for under 10% of total net revenue for the three months ended June 30, 2019. Synnex Corporation accounted for under 10% of total net revenue for the three and nine months ended June 30, 2019. |
Long-lived Assets by Geographic Areas | The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): June 30, September 30, United States $ 198,902 $ 126,790 EMEA 12,405 12,538 Other countries 14,695 5,714 $ 226,002 $ 145,042 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies (Narrative) (Details) | Oct. 31, 2018USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)shares | Jun. 30, 2019USD ($)$ / shares | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($)shares | Sep. 30, 2018USD ($) | Oct. 25, 2017USD ($) | Sep. 30, 2017USD ($) |
Schedule Of Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Cash and Cash Equivalents, at Carrying Value | $ 688,350,000 | $ 599,268,000 | $ 688,350,000 | $ 688,350,000 | $ 688,350,000 | $ 688,350,000 | $ 688,350,000 | $ 688,350,000 | $ 599,268,000 | $ 424,707,000 | |||
Revenue Recognition | |||||||||||||
Number of reportable segments | 1 | 1 | |||||||||||
Stock-Based Compensation | |||||||||||||
Share-based compensation expense | 41,000,000 | $ 38,700,000 | 119,200,000 | $ 121,000,000 | |||||||||
Unrecognized stock-based compensation cost | 176,100,000 | $ 176,100,000 | $ 176,100,000 | 176,100,000 | $ 176,100,000 | $ 176,100,000 | $ 176,100,000 | ||||||
Unrecognized stock-based compensation cost, period for recognition | 2 years | ||||||||||||
Common Stock Repurchase | |||||||||||||
Stock Repurchased and Retired During Period, Shares | shares | 903,000 | 1,185,881 | 3,211,000 | ||||||||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 169.53 | ||||||||||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | 1,400,000,000 | $ 1,400,000,000 | 1,400,000,000 | 1,400,000,000 | $ 1,400,000,000 | $ 1,400,000,000 | 1,400,000,000 | ||||||
Restricted Cash | 3,013,000 | $ 1,182,000 | 3,013,000 | 3,013,000 | 3,013,000 | 3,013,000 | 3,013,000 | 3,013,000 | $ 1,182,000 | ||||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 691,363,000 | $ 600,450,000 | $ 691,363,000 | $ 691,363,000 | $ 691,363,000 | $ 691,363,000 | $ 691,363,000 | $ 691,363,000 | $ 600,450,000 | $ 425,894,000 | $ 674,452,000 | ||
Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program | shares | 774,313 | ||||||||||||
Minimum [Member] | |||||||||||||
Revenue Recognition | |||||||||||||
Domestic accounts receivable terms of payment | 30 days | ||||||||||||
International accounts receivable terms of payment | 30 days | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 2 years | ||||||||||||
Maximum [Member] | |||||||||||||
Revenue Recognition | |||||||||||||
Domestic accounts receivable terms of payment | 45 days | ||||||||||||
International accounts receivable terms of payment | 120 days | ||||||||||||
Finite-Lived Intangible Asset, Useful Life | 15 years | ||||||||||||
October Twenty Six Two Thousand Ten Program [Member] | |||||||||||||
Common Stock Repurchase | |||||||||||||
Stock Repurchase Program, Authorized Amount | $ 1,000,000,000 | $ 4,400,000,000 | |||||||||||
Annual Equity Program [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Percentage of the aggregate number of RSUs granted that vest in equal quarterly increments | 50.00% | ||||||||||||
Portion of RSU grant subject to Company achieving specified quarterly revenue and EBITDA goals | 50.00% | ||||||||||||
Percentage of quarterly performance stock grant based on achieving quarterly revenue goal | 70.00% | ||||||||||||
Percentage of quarterly revenue goal to be achieved for performance stock grant | 80.00% | ||||||||||||
Percentage of quarterly performance stock grant based on achieving EBITDA goal | 30.00% | ||||||||||||
Percentage Of Quarterly Ebitda Goal To Be Achieved For Performance Stock Grant | 80.00% | ||||||||||||
Threshold percentage of targeted goals above which quarterly performance stock grant is paid linearly | 80.00% | ||||||||||||
Percentage of over-achievement threshold to which the goals are entitled | 100.00% | ||||||||||||
Percentage Of Over-Achievement To Which Quarterly Performance Based Vesting Cannot Exceed | 200.00% | ||||||||||||
Percentage Of Annual Performance Stock Grant Based On Achieving Annual Revenue Goal | 50.00% | ||||||||||||
Percentage Of Annual Revenue Goal To Be Achieved For Performance Stock Grant | 80.00% | ||||||||||||
Percentage Of Annual Performance Stock Grant Based On Achieving Annual Increase in Stand-alone Software Goal | 25.00% | ||||||||||||
Percentage Of Annual Increase in Stand-alone Software Goal To Be Achieved For Performance Stock Grant | 18.00% | ||||||||||||
Percentage Of Annual Performance Stock Grant Based On Achieving Relative Total Shareholder Return Benchmarked to the S&P 500 Index Goal | 25.00% | ||||||||||||
Percentage Of Over-Achievement To Which Annual Performance Based Vesting Cannot Exceed | 200.00% | ||||||||||||
Annual Equity Program [Member] | November 1, 2018 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program | shares | 144,066 | ||||||||||||
Annual equity awards program vesting period | 3 years | ||||||||||||
Annual Equity Program [Member] | November 1, 2017 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program | shares | 140,135 | ||||||||||||
Annual equity awards program vesting period | 4 years | ||||||||||||
Annual Equity Program [Member] | November 1, 2016 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program | shares | 115,347 | ||||||||||||
Annual equity awards program vesting period | 4 years | ||||||||||||
Annual Equity Program [Member] | November 2, 2015 [Member] | Restricted Stock Units (RSUs) [Member] | |||||||||||||
Stock-Based Compensation | |||||||||||||
Approved RSUs to employees and executive officers pursuant to the Company's annual equity awards program | shares | 145,508 | ||||||||||||
Annual equity awards program vesting period | 4 years | ||||||||||||
Software and Software Development Costs [Member] | Minimum [Member] | |||||||||||||
Revenue Recognition | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 3 years | ||||||||||||
Software and Software Development Costs [Member] | Maximum [Member] | |||||||||||||
Revenue Recognition | |||||||||||||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||||||||||||
Maintenance [Member] | |||||||||||||
Common Stock Repurchase | |||||||||||||
Capitalized contract cost, amortization period | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months | 4 years 6 months | ||||||
Subscription and Circulation [Member] | |||||||||||||
Common Stock Repurchase | |||||||||||||
Capitalized contract cost, amortization period | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies (Schedule Of Computation Of Basic And Diluted Net Income Per Share) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator | ||||
Net income | $ 85,905 | $ 122,743 | $ 332,897 | $ 320,808 |
Denominator | ||||
Weighted average shares outstanding - basic | 59,981 | 60,970 | 59,963 | 61,531 |
Dilutive effect of common shares from stock options and restricted stock units | 215 | 663 | 409 | 683 |
Weighted average shares outstanding - diluted | 60,196 | 61,633 | 60,372 | 62,214 |
Basic net income per share (dollars per share) | $ 1.43 | $ 2.01 | $ 5.55 | $ 5.21 |
Diluted net income per share (dollars per share) | $ 1.43 | $ 1.99 | $ 5.51 | $ 5.16 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Oct. 01, 2018 | Sep. 30, 2018 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 563,394 | $ 542,203 | $ 1,652,059 | $ 1,598,698 | ||
Other current assets | 161,940 | 161,940 | $ 102,884 | $ 52,326 | ||
Other assets, net | 194,295 | 194,295 | 101,862 | 42,186 | ||
Deferred tax assets | 25,079 | 25,079 | 25,539 | 33,441 | ||
Assets | 3,177,275 | 3,177,275 | 2,605,476 | |||
Accrued Liabilities, Current | 213,195 | 213,195 | 180,979 | |||
Deferred revenue | 803,241 | 803,241 | 751,161 | 715,697 | ||
Deferred revenue, long-term | 363,271 | 363,271 | 332,238 | 299,624 | ||
Liabilities | 1,553,493 | 1,553,493 | ||||
Retained earnings | 1,543,253 | 1,543,253 | 1,323,291 | 1,287,243 | ||
Capitalized contract cost, net | 55,688 | 55,688 | 0 | |||
Deferred revenue | 1,166,512 | 1,166,512 | 1,015,321 | |||
Liabilities and Equity | 3,177,275 | 3,177,275 | 2,605,476 | |||
Cost of Goods and Services Sold | 90,767 | 91,009 | 265,659 | 268,041 | ||
Gross Profit | 472,627 | 451,194 | 1,386,400 | 1,330,657 | ||
Operating Expenses | 369,887 | 299,241 | 982,651 | 893,350 | ||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 107,462 | 154,212 | 423,000 | 444,501 | ||
Income Tax Expense (Benefit) | 21,557 | 31,469 | 90,103 | 123,693 | ||
Net income | $ 85,905 | $ 122,743 | $ 332,897 | $ 320,808 | ||
Basic net income per share (dollars per share) | $ 1.43 | $ 2.01 | $ 5.55 | $ 5.21 | ||
Net income per share — diluted (dollars per share) | $ 1.43 | $ 1.99 | $ 5.51 | $ 5.16 | ||
Difference between Revenue Guidance in Effect before and after Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 29,338 | $ 36,528 | ||||
Other current assets | 50,558 | 23,480 | ||||
Other assets, net | 59,676 | 11,714 | ||||
Deferred tax assets | (7,902) | (1,961) | ||||
Assets | 102,332 | 33,233 | ||||
Accrued Liabilities, Current | 0 | 4,916 | ||||
Deferred revenue | 35,464 | 11,589 | ||||
Deferred revenue, long-term | 32,614 | (10,472) | ||||
Liabilities | 68,078 | 6,033 | ||||
Retained earnings | 36,048 | 25,406 | ||||
Capitalized contract cost, net | 54,600 | |||||
Deferred revenue | (8,800) | |||||
Liabilities and Equity | $ 104,126 | $ 31,439 | ||||
Cost of Goods and Services Sold | 626 | 2,440 | ||||
Gross Profit | 28,712 | 34,088 | ||||
Operating Expenses | (1,352) | 1,805 | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 30,064 | 32,283 | ||||
Income Tax Expense (Benefit) | 6,031 | 6,877 | ||||
Net income | $ 24,033 | $ 25,406 | ||||
Basic net income per share (dollars per share) | $ 0.40 | $ 0.42 | ||||
Net income per share — diluted (dollars per share) | $ 0.40 | $ 0.42 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 534,056 | $ 1,615,531 | ||||
Cost of Goods and Services Sold | 90,141 | 263,219 | ||||
Gross Profit | 443,915 | 1,352,312 | ||||
Operating Expenses | 371,239 | 980,846 | ||||
Income (Loss) from Continuing Operations before Equity Method Investments, Income Taxes, Noncontrolling Interest | 77,398 | 390,717 | ||||
Income Tax Expense (Benefit) | 15,526 | 83,226 | ||||
Net income | $ 61,872 | $ 307,491 | ||||
Basic net income per share (dollars per share) | $ 1.03 | $ 5.13 | ||||
Net income per share — diluted (dollars per share) | $ 1.03 | $ 5.09 | ||||
Calculated under Revenue Guidance in Effect before Topic 606 [Member] | Accounting Standards Update 2014-09 [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Other current assets | $ 87,902 | $ 87,902 | ||||
Other assets, net | 122,905 | 122,905 | ||||
Deferred tax assets | 34,942 | 34,942 | ||||
Assets | 3,041,710 | 3,041,710 | ||||
Accrued Liabilities, Current | 208,279 | 208,279 | ||||
Deferred revenue | 756,188 | 756,188 | ||||
Deferred revenue, long-term | 341,129 | 341,129 | ||||
Liabilities | 1,479,382 | 1,479,382 | ||||
Retained earnings | 1,481,799 | 1,481,799 | ||||
Liabilities and Equity | $ 3,041,710 | $ 3,041,710 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Capitalized contract acquisition costs (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Changes In Capitalized Contract Cost [Roll Forward] | |
Balance, September 30, 2018 | $ 0 |
Impacts from adoption of ASC 606 | 54,608 |
Additional capitalized contract acquisition costs deferred | 22,460 |
Amortization of capitalized contract acquisition costs | (21,380) |
Balance, June 30, 2019 | $ 55,688 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Change in Contract with Customer, Asset [Roll Forward] | |
Balance, September 30, 2018 | $ 0 |
Impacts from adoption of ASC 606 | 57,499 |
Revenue recognized during period but not yet billed | 15,240 |
Contract asset net additions | 50,159 |
Contract assets reclassified to accounts receivable | 29,386 |
Balance, June 30, 2019 | 93,512 |
Change in Contract with Customer, Liability [Roll Forward] | |
Balance, September 30, 2018 | 1,015,321 |
Impacts from adoption of ASC 606 | 68,078 |
Amounts billed but not recognized as revenues | 731,306 |
Revenues recognized related to the opening balance of deferred revenue | (648,193) |
Balance, June 30, 2019 | $ 1,166,512 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Remaining Performance Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1,166,512 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 278,529 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 574,901 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 313,082 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Business Combinations (Details)
Business Combinations (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,065,379,000 | $ 1,065,379,000 | $ 555,965,000 | ||
F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Pro Forma Revenue | 568,272,000 | $ 546,324,000 | 1,671,875,000 | $ 1,609,341,000 | |
Acquired Tangible Assets | 44,494,000 | 44,494,000 | |||
Cash Acquired from Acquisition | 29,911,000 | 29,911,000 | |||
Payments to Acquire Businesses, Gross | 643,208,000 | ||||
Business Acquisition, Transaction Costs | 19,000,000 | 19,000,000 | |||
Business Combination, Acquired Receivable, Fair Value | 7,306,000 | 7,306,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Other | 4,214,000 | 4,214,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 1,822,000 | 1,822,000 | |||
Business Combination Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Assets | 10,357,000 | 10,357,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 89,300,000 | $ 89,300,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 8 years 1 month 6 days | ||||
Goodwill | 509,414,000 | $ 509,414,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 652,324,000 | 652,324,000 | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Accounts Payable | (1,081,000) | (1,081,000) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities, Deferred Revenue | (4,000,000) | (4,000,000) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (4,035,000) | (4,035,000) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (9,116,000) | (9,116,000) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 643,208,000 | 643,208,000 | |||
Business Acquisition, Goodwill, Expected Tax Deductible Amount | 437,400,000 | 437,400,000 | |||
Business Acquisition, Pro Forma Information, Description | 100,329,000 | $ 110,800,000 | 324,074,000 | $ 267,742,000 | |
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual | 5,100,000 | ||||
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual | 5,900,000 | ||||
Developed Technology Rights [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 62,500,000 | $ 62,500,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Customer Relationships [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 12,000,000 | $ 12,000,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Trade Names [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 14,500,000 | $ 14,500,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 7 years | ||||
Non-competition Agreements [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Finite-Lived Intangibles | 300,000 | $ 300,000 | |||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 2 years | ||||
Acquisition-related Costs [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Retention costs | $ 21,800,000 | ||||
Business Acquisition, Transaction Costs | 1,000,000 | 1,000,000 | |||
General and Administrative Expense [Member] | F5 Networks Acquisition of Nginx [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Transaction Costs | $ 1,000,000 | $ 1,000,000 |
Fair Value Measurements (Schedu
Fair Value Measurements (Schedule of Financial Assets Measured at Fair Value on a Recurring Basis) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | $ 276,934 | $ 54,586 |
Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 48,807 | 41,468 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 228,127 | 13,118 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 0 | 0 |
Short-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 298,137 | 614,705 |
Short-Term Investments [Member] | Certificates of Deposit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 734 | 2,970 |
Short-Term Investments [Member] | Certificates of Deposit [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | Certificates of Deposit [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 734 | 2,970 |
Short-Term Investments [Member] | Certificates of Deposit [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | Corporate Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 256,422 | 393,750 |
Short-Term Investments [Member] | Corporate Bonds and Notes [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | Corporate Bonds and Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 256,422 | 393,750 |
Short-Term Investments [Member] | Corporate Bonds and Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | Municipal Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 13,054 | 22,524 |
Short-Term Investments [Member] | Municipal Bonds and Notes [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | Municipal Bonds and Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 13,054 | 22,524 |
Short-Term Investments [Member] | Municipal Bonds and Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | U.S. Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 25,929 | 120,078 |
Short-Term Investments [Member] | U.S. Government Securities [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | U.S. Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 25,929 | 120,078 |
Short-Term Investments [Member] | U.S. Government Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 1,998 | 75,383 |
Short-Term Investments [Member] | U.S. Government Agency Securities [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Short-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 1,998 | 75,383 |
Short-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 161,619 | 411,184 |
Long-Term Investments [Member] | Corporate Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 155,348 | 367,710 |
Long-Term Investments [Member] | Corporate Bonds and Notes [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | Corporate Bonds and Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 155,348 | 367,710 |
Long-Term Investments [Member] | Corporate Bonds and Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | Municipal Bonds and Notes [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 3,776 | 24,286 |
Long-Term Investments [Member] | Municipal Bonds and Notes [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | Municipal Bonds and Notes [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 3,776 | 24,286 |
Long-Term Investments [Member] | Municipal Bonds and Notes [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | U.S. Government Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 12,771 | |
Long-Term Investments [Member] | U.S. Government Securities [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | |
Long-Term Investments [Member] | U.S. Government Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 12,771 | |
Long-Term Investments [Member] | U.S. Government Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | |
Long-Term Investments [Member] | U.S. Government Agency Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 2,495 | 6,417 |
Long-Term Investments [Member] | U.S. Government Agency Securities [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Long-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 2,495 | 6,417 |
Long-Term Investments [Member] | U.S. Government Agency Securities [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Investments, fair value | 0 | 0 |
Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 736,690 | 1,080,475 |
Fair Value, Recurring [Member] | Quoted Prices in Active Markets for Identical Securities (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 48,807 | 41,468 |
Fair Value, Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | 687,883 | 1,039,007 |
Fair Value, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Assets, fair value disclosure | $ 0 | $ 0 |
Short-Term and Long-Term Inve_3
Short-Term and Long-Term Investments (Schedule of Short-Term and Long-Term Investments) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Short-term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | $ 298,213 | $ 616,112 |
Gross Unrealized Gains | 251 | 10 |
Gross Unrealized Losses | (327) | (1,417) |
Fair Value | 298,137 | 614,705 |
Short-term Investments [Member] | Certificates of Deposit [Member] | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 734 | 2,970 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 734 | 2,970 |
Short-term Investments [Member] | Corporate bonds and notes | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 256,471 | 394,684 |
Gross Unrealized Gains | 238 | 9 |
Gross Unrealized Losses | (287) | (943) |
Fair Value | 256,422 | 393,750 |
Short-term Investments [Member] | Municipal bonds and notes | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 13,066 | 22,588 |
Gross Unrealized Gains | 3 | 1 |
Gross Unrealized Losses | (15) | (65) |
Fair Value | 13,054 | 22,524 |
Short-term Investments [Member] | U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 25,942 | 120,283 |
Gross Unrealized Gains | 10 | 0 |
Gross Unrealized Losses | (23) | (205) |
Fair Value | 25,929 | 120,078 |
Short-term Investments [Member] | U.S. government agency securities | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 2,000 | 75,587 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (2) | (204) |
Fair Value | 1,998 | 75,383 |
Long Term Investments [Member] | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 161,169 | 414,301 |
Gross Unrealized Gains | 598 | 25 |
Gross Unrealized Losses | (148) | (3,142) |
Fair Value | 161,619 | 411,184 |
Long Term Investments [Member] | Corporate bonds and notes | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 154,893 | 370,377 |
Gross Unrealized Gains | 590 | 25 |
Gross Unrealized Losses | (135) | (2,692) |
Fair Value | 155,348 | 367,710 |
Long Term Investments [Member] | Municipal bonds and notes | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 3,776 | 24,468 |
Gross Unrealized Gains | 8 | 0 |
Gross Unrealized Losses | (8) | (182) |
Fair Value | 3,776 | 24,286 |
Long Term Investments [Member] | U.S. government securities | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 12,956 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (185) | |
Fair Value | 12,771 | |
Long Term Investments [Member] | U.S. government agency securities | ||
Schedule of Investments [Line Items] | ||
Cost or Amortized Cost | 2,500 | 6,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (5) | (83) |
Fair Value | $ 2,495 | $ 6,417 |
Short-Term and Long-Term Inve_4
Short-Term and Long-Term Investments (Schedule of Investments That Have Been in a Continuous Unrealized Loss Position) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Fair Value | ||
Less Than 12 Months | $ 67,169 | $ 718,857 |
12 Months or Greater | 194,212 | 232,826 |
Total | 261,381 | 951,683 |
Gross Unrealized Losses | ||
Less Than 12 Months | (70) | (2,314) |
12 Months or Greater | (405) | (2,245) |
Total | (475) | (4,559) |
Corporate Bonds and Notes [Member] | ||
Fair Value | ||
Less Than 12 Months | 66,064 | 543,729 |
12 Months or Greater | 165,970 | 152,097 |
Total | 232,034 | 695,826 |
Gross Unrealized Losses | ||
Less Than 12 Months | (70) | (1,800) |
12 Months or Greater | (352) | (1,835) |
Total | (422) | (3,635) |
Municipal Bonds and Notes [Member] | ||
Fair Value | ||
Less Than 12 Months | 1,105 | 26,846 |
12 Months or Greater | 10,786 | 14,363 |
Total | 11,891 | 41,209 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (123) |
12 Months or Greater | (23) | (124) |
Total | (23) | (247) |
U.S. Government Securities [Member] | ||
Fair Value | ||
Less Than 12 Months | 0 | 103,470 |
12 Months or Greater | 12,964 | 29,379 |
Total | 12,964 | 132,849 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (281) |
12 Months or Greater | (23) | (109) |
Total | (23) | (390) |
U.S. Government Agency Securities [Member] | ||
Fair Value | ||
Less Than 12 Months | 0 | 44,812 |
12 Months or Greater | 4,492 | 36,987 |
Total | 4,492 | 81,799 |
Gross Unrealized Losses | ||
Less Than 12 Months | 0 | (110) |
12 Months or Greater | (7) | (177) |
Total | $ (7) | $ (287) |
Balance Sheet Details (Schedule
Balance Sheet Details (Schedule of Inventories) (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Oct. 01, 2018 | Sep. 30, 2018 |
Inventory Disclosure [Abstract] | |||
Deferred Rent Credit, Noncurrent | $ 65,526 | $ 31,151 | |
Accrued Income Taxes, Noncurrent | 35,655 | 30,864 | |
Intangible Assets, Net (Excluding Goodwill) | 113,389 | 31,259 | |
Prepaid Expense, Current | 82,794 | 39,531 | |
Finished goods | 23,103 | 21,339 | |
Raw materials | 12,906 | 9,229 | |
Inventories, total | 36,009 | 30,568 | |
Unbilled Contracts Receivable | 51,798 | 0 | |
Other Assets, Miscellaneous, Current | 27,348 | 12,795 | |
Other Assets, Current | 161,940 | $ 102,884 | 52,326 |
Other Assets, Miscellaneous, Noncurrent | 80,906 | 10,927 | |
Other Assets, Noncurrent | 194,295 | $ 101,862 | 42,186 |
Other Accrued Liabilities, Noncurrent | 16,623 | 3,877 | |
Other Liabilities, Noncurrent | $ 117,804 | $ 65,892 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Loss Contingencies [Line Items] | ||
Standard product warranty accrual | $ 0 | $ 0 |
Product warranty period | 1 year | |
F5 Counterclaim of Radware, Ltd. and Radware, Inc. Patent Infringement Complaint [Member] | Pending Litigation [Member] | ||
Loss Contingencies [Line Items] | ||
Gain contingency, patents allegedly infringed upon, number | 3 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 20.10% | 20.40% | 21.30% | 27.80% |
Unrecognized tax benefit | $ 35.8 | $ 35.8 |
Geographic Sales and Signific_3
Geographic Sales and Significant Customers (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($)geographic_region | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||||||||
Number of reportable segments | 1 | 1 | ||||||
Number of geographic regions | geographic_region | 3 | |||||||
Net revenues | $ 563,394 | $ 542,203 | $ 1,652,059 | $ 1,598,698 | ||||
Long-lived assets | 226,002 | $ 226,002 | 226,002 | $ 226,002 | $ 226,002 | $ 145,042 | ||
Americas [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net revenues | 300,702 | 305,464 | 899,758 | 892,953 | ||||
United States [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net revenues | 273,273 | 275,011 | 820,061 | 805,594 | ||||
Long-lived assets | 198,902 | 198,902 | 198,902 | 198,902 | 198,902 | 126,790 | ||
Other [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net revenues | 27,429 | 30,453 | 79,697 | 87,359 | ||||
EMEA [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net revenues | 132,806 | 130,821 | 418,339 | 406,712 | ||||
Long-lived assets | 12,405 | 12,405 | 12,405 | 12,405 | 12,405 | 12,538 | ||
Asia Pacific [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Net revenues | 129,886 | $ 105,918 | 333,962 | $ 299,033 | ||||
Other International Countries [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Long-lived assets | $ 14,695 | $ 14,695 | $ 14,695 | $ 14,695 | $ 14,695 | $ 5,714 | ||
Worldwide Distributor 1 [Member] | Net Revenue [Member] | Geographic Concentration [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 17.80% | 16.90% | 18.20% | 16.30% | ||||
Worldwide Distributor 2 [Member] | Net Revenue [Member] | Geographic Concentration [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 10.80% | 11.00% | 10.20% | 11.80% | ||||
Worldwide Distributor 3 [Member] | Net Revenue [Member] | Geographic Concentration [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 0.00% | 10.50% | 10.30% | 10.90% | ||||
Worldwide Distributor4 [Member] | Net Revenue [Member] | Geographic Concentration [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 0.00% | 11.40% | 0.00% | 11.20% | ||||
Worldwide Distributor5 [Member] | Net Revenue [Member] | Geographic Concentration [Member] | ||||||||
Segment Reporting Information [Line Items] | ||||||||
Concentration risk percentage | 10.00% | 10.10% | 10.30% | 10.40% |
Uncategorized Items - ffiv10q63
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 36,048,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 36,048,000 |