Cover Page
Cover Page - shares | 3 Months Ended | |
Dec. 31, 2020 | Jan. 29, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 000-26041 | |
Entity Registrant Name | F5 NETWORKS, INC. | |
Entity Incorporation, State or Country Code | WA | |
Entity Tax Identification Number | 91-1714307 | |
Entity Address, Address Line One | 801 5th Avenue | |
Entity Address, City or Town | Seattle | |
Entity Address, State or Province | WA | |
Entity Address, Postal Zip Code | 98104 | |
City Area Code | 206 | |
Local Phone Number | 272-5555 | |
Title of 12(b) Security | Common stock, no par value | |
Trading Symbol | FFIV | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 61,650,819 | |
Entity Central Index Key | 0001048695 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Current assets | ||
Cash and cash equivalents | $ 1,026,829 | $ 849,556 |
Short-term investments | 346,515 | 360,333 |
Accounts Receivable, net of allowances of $3,356 and $3,105 | 346,670 | 296,183 |
Inventories | 26,455 | 27,898 |
Other current assets | 283,341 | 259,506 |
Total current assets | 2,029,810 | 1,793,476 |
Property and equipment, net | 215,649 | 229,239 |
Operating lease right-of-use assets | 286,044 | 300,680 |
Long-term investments | 88,753 | 102,939 |
Deferred tax assets | 47,236 | 45,173 |
Goodwill | 1,863,892 | 1,858,966 |
Other assets, net | 367,955 | 347,447 |
Total assets | 4,899,339 | 4,677,920 |
Current liabilities | ||
Accounts payable | 57,542 | 64,472 |
Accrued liabilities | 305,792 | 321,398 |
Deferred revenue | 936,640 | 883,134 |
Current portion of long-term debt | 19,275 | 19,275 |
Total current liabilities | 1,319,249 | 1,288,279 |
Deferred tax liabilities | 1,965 | 602 |
Deferred revenue, long-term | 422,185 | 389,498 |
Operating lease liabilities, long-term | 328,468 | 338,715 |
Long-term debt | 364,229 | 369,047 |
Other long-term liabilities | 61,653 | 59,511 |
Total long-term liabilities | 1,178,500 | 1,157,373 |
Commitments and contingencies (Note 9) | ||
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, 61,632 and 61,099 shares issued and outstanding | 386,236 | 305,453 |
Accumulated other comprehensive loss | (17,855) | (18,716) |
Retained earnings | 2,033,209 | 1,945,531 |
Total shareholders' equity | 2,401,590 | 2,232,268 |
Total liabilities and shareholders' equity | $ 4,899,339 | $ 4,677,920 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowances | $ 3,356 | $ 3,105 |
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 | 61,632,000 | 61,099,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Net revenues | ||
Revenue from contract with customer, excluding assessed tax | $ 624,617 | $ 569,305 |
Cost of net revenues | ||
Cost of net revenues | 114,979 | 88,642 |
Gross profit | 509,638 | 480,663 |
Operating expenses | ||
Sales and marketing | 214,546 | 195,519 |
Research and development | 114,191 | 96,005 |
General and administrative | 63,153 | 59,004 |
Restructuring charges | 0 | 7,800 |
Total | 391,890 | 358,328 |
Income from operations | 117,748 | 122,335 |
Other (loss) income, net | (683) | 5,220 |
Income before income taxes | 117,065 | 127,555 |
Provision for income taxes | 29,387 | 29,028 |
Net income | $ 87,678 | $ 98,527 |
Net income per share — basic (dollars per share) | $ 1.43 | $ 1.62 |
Weighted average shares — basic (shares) | 61,440 | 60,649 |
Net income per share — diluted (dollars per share) | $ 1.41 | $ 1.62 |
Weighted average shares — diluted (shares) | 62,282 | 60,815 |
Product | ||
Net revenues | ||
Revenue from contract with customer, excluding assessed tax | $ 288,045 | $ 234,536 |
Cost of net revenues | ||
Cost of net revenues | 67,038 | 42,118 |
Service | ||
Net revenues | ||
Revenue from contract with customer, excluding assessed tax | 336,572 | 334,769 |
Cost of net revenues | ||
Cost of net revenues | $ 47,941 | $ 46,524 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 87,678 | $ 98,527 |
Other comprehensive income: | ||
Foreign currency translation adjustment | 1,278 | 634 |
Available-for-sale securities: | ||
Unrealized (losses) gains on securities, net of taxes of $(50) and $28 for the three months ended December 31, 2020 and 2019, respectively | (420) | 189 |
Reclassification adjustment for realized gains (losses) included in net income, net of taxes of $0 and $2 for the three months ended December 31, 2020 and 2019, respectively | 3 | (9) |
Net change in unrealized (losses) gains on available-for-sale securities, net of tax | (417) | 180 |
Total other comprehensive income | 861 | 814 |
Comprehensive income | $ 88,539 | $ 99,341 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Tax effect of unrealized gain (loss) on securities | $ (50) | $ 28 |
Tax effect of reclassification adjustment for realized (gains) losses | $ 0 | $ 2 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity Statement - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | AOCI Attributable to Parent | Retained Earnings |
Beginning Balance (in shares) at Sep. 30, 2019 | 60,367 | |||
Beginning Balance at Sep. 30, 2019 | $ 1,761,497 | $ 142,597 | $ (19,190) | $ 1,638,090 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 11 | |||
Exercise of employee stock options | 290 | $ 290 | ||
Issuance of stock under employee stock purchase plan (in shares) | 169 | |||
Issuance of stock under employee stock purchase plan | 20,669 | $ 20,669 | ||
Issuance of restricted stock (in shares) | 256 | |||
Issuance of restricted stock | 0 | |||
Cost of Issuance of Treasury Stock | 0 | |||
Stock-based compensation | 47,661 | $ 47,661 | ||
Net income | 98,527 | 98,527 | ||
Other comprehensive income | 814 | 814 | ||
Ending Balance ( in shares) at Dec. 31, 2019 | 60,803 | |||
Ending Balance at Dec. 31, 2019 | $ 1,929,458 | $ 211,217 | (18,376) | 1,736,617 |
Beginning Balance (in shares) at Sep. 30, 2020 | 61,099 | 61,099 | ||
Beginning Balance at Sep. 30, 2020 | $ 2,232,268 | $ 305,453 | (18,716) | 1,945,531 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 39 | |||
Exercise of employee stock options | 1,118 | $ 1,118 | ||
Issuance of stock under employee stock purchase plan (in shares) | 231 | |||
Issuance of stock under employee stock purchase plan | 26,077 | $ 26,077 | ||
Issuance of restricted stock (in shares) | 297 | |||
Issuance of restricted stock | 0 | |||
Cost of Issuance of Treasury Stock, Shares | (34) | |||
Cost of Issuance of Treasury Stock | (4,481) | $ (4,481) | ||
Stock-based compensation | 58,069 | $ 58,069 | ||
Net income | 87,678 | 87,678 | ||
Other comprehensive income | $ 861 | 861 | ||
Ending Balance ( in shares) at Dec. 31, 2020 | 61,632 | 61,632 | ||
Ending Balance at Dec. 31, 2020 | $ 2,401,590 | $ 386,236 | $ (17,855) | $ 2,033,209 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Operating activities | ||
Net income | $ 87,678 | $ 98,527 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 58,069 | 47,661 |
Depreciation and amortization | 27,660 | 18,979 |
Non-cash operating lease costs | 9,698 | 8,703 |
Deferred income taxes | (694) | (1,714) |
Impairment of assets | 6,873 | 0 |
Other | 307 | (31) |
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses): | ||
Accounts receivable | (54,416) | (32,683) |
Inventories | 1,443 | 2,020 |
Other current assets | (23,250) | (5,494) |
Other assets | (26,654) | 2,011 |
Accounts payable and accrued liabilities | (23,925) | (23,606) |
Deferred revenue | 86,193 | 39,856 |
Lease liabilities | (11,619) | (10,217) |
Net cash provided by operating activities | 137,363 | 144,012 |
Investing activities | ||
Purchases of investments | (42,765) | (180,557) |
Maturities of investments | 69,352 | 150,697 |
Sales of investments | 0 | 22,764 |
Acquisition of businesses, net of cash acquired | (1,247) | 0 |
Purchases of property and equipment | (4,697) | (22,304) |
Net cash provided by (used in) investing activities | 20,643 | (29,400) |
Financing activities | ||
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan | 27,196 | 20,959 |
Payments on term debt agreement | (5,000) | 0 |
Cost of Issuance of Treasury Stock | (4,481) | 0 |
Net cash provided by financing activities | 17,715 | 20,959 |
Net increase in cash, cash equivalents and restricted cash | 175,721 | 135,571 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,655 | 820 |
Cash, cash equivalents and restricted cash, beginning of period | 852,826 | 602,254 |
Cash, cash equivalents and restricted cash, end of period | 1,030,202 | 738,645 |
Supplemental disclosures of cash flow information | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 15,032 | 12,707 |
Cash paid for interest on long-term debt | 1,370 | 0 |
Supplemental disclosures of non-cash activities | ||
Right-of-use assets obtained in exchange for lease obligations | $ 1,614 | $ 394,315 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business F5 Networks, Inc. (the "Company") is a leading provider of multi-cloud application services which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's cloud, software, and hardware solutions enable its customers to deliver digital experiences to their customers faster, reliably, and at scale. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. In connection with its solutions, the Company offers a broad range of professional services, including consulting, training, installation, maintenance, and other technical support services. Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. In December 2019, a novel strain of coronavirus (“COVID-19“) was first identified, and in March 2020, the World Health Organization categorized COVID-19 as a pandemic. The Company assessed the impact that COVID-19 had on its results of operations, including, but not limited to an assessment of its allowance for current expected credit losses, the carrying value of short-term and long-term investments, the carrying value of goodwill and other long-lived assets, and the impact to revenue recognition and cost of revenues. The Company is actively monitoring the impact to the results of its business operations, and may make decisions required by federal, state or local authorities, or that are determined to be in the best interests of its employees, customers, partners, suppliers and stockholders. As of the filing date, the extent to which the COVID-19 pandemic may impact the Company’s financial condition or results of operations remains uncertain. Recently Adopted Accounting Standards 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 Company adopted this new standard prospectively on October 1, 2020. The adoption of this standard did not have a material impact to the Company’s consolidated financial statements or disclosures. 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 modifies the accounting for credit losses for most financial assets and requires the use of an expected loss model, replacing the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted this new standard on October 1, 2020 using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. The following accounting policies were updated as a result of the adoption of this standard. Investments The Company classifies its investment securities as available-for-sale. Investment securities, consisting of certificates of deposit, corporate and municipal bonds and notes, the United States government and agency securities and international government securities are reported at fair value with the related unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses and impairments due to credit losses, in which the fair value of a security is below its amortized cost and management’s intent is to sell the impaired security prior to its recovery, are included in other income (expense). An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in other income, net in the Company's consolidated income statements. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Investments in securities with maturities of less than one year or where management’s intent is to use the investments to fund current operations are classified as short-term investments. Investments with maturities of greater than one year are classified as long-term investments. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. The allowance for credit losses is based on the assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for credit losses on a collective basis by considering the age of each outstanding invoice, each customer’s expected ability to pay and collection history, current market conditions, and reasonable and supportable forecasts of future economic conditions to determine whether the allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. For the three months ended December 31, 2020 and 2019, the allowance for credit losses activity was not significant. There have been no additional changes to the Company's significant accounting policies as of and for the three months ended December 31, 2020. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contracts with Customers | Revenue from Contracts with Customers Capitalized Contract Acquisition Costs The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 70,396 $ 59,446 Additional capitalized contract acquisition costs deferred 9,725 7,412 Amortization of capitalized contract acquisition costs (8,152) (8,705) Balance, end of period $ 71,969 $ 58,153 Amortization of capitalized contract acquisition costs was $8.2 million and $8.7 million for the three months ended December 31, 2020 and 2019, respectively, and is recorded in Sales and Marketing expense in the accompanying consolidated income statements. There was no impairment of any capitalized contract acquisition costs during any period presented. Contract Balances Timing may differ between the satisfaction of performance obligations and the invoicing and collection of amounts related to the Company's contracts with customers. The Company records 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 three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 200,472 $ 132,492 Revenue recognized during period but not yet billed 18,316 3,407 Contract asset additions 55,834 12,930 Contract assets reclassified to accounts receivable (28,818) (13,584) Balance, end of period $ 245,804 $ 135,245 As of December 31, 2020, 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 three months ended December 31, 2020 and 2019. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 1,272,632 $ 1,198,116 Amounts billed but not recognized as revenues 421,918 346,132 Revenues recognized related to the opening balance of deferred revenue (335,725) (306,275) Balance, end of period $ 1,358,825 $ 1,237,973 The Company's 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. As of December 31, 2020, the total non-cancelable remaining performance obligations under the Company's contracts with customers was approximately $1.4 billion and the Company expects to recognize revenues on approximately 68.9% of these remaining performance obligations over the next 12 months, 18.9% in year two, and the remaining balance thereafter. See Note 12, Segment Information, for disaggregated revenue by significant customer and geographic region, as well as disaggregated product revenue by systems and software. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020, were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities Significant Other Significant Fair Value at Cash equivalents $ 286,495 $ 208,406 $ — $ 494,901 Short-term investments Available-for-sale securities — corporate bonds and notes — 179,694 — 179,694 Available-for-sale securities — municipal bonds and notes — 2,916 — 2,916 Available-for-sale securities — U.S. government securities — 116,526 — 116,526 Available-for-sale securities — U.S. government agency securities — 47,379 — 47,379 Long-term investments Available-for-sale securities — corporate bonds and notes — 72,173 — 72,173 Available-for-sale securities — U.S. government agency securities — 16,580 — 16,580 Total $ 286,495 $ 643,674 $ — $ 930,169 The Company's financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2020, were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Significant Fair Value at Cash equivalents $ 43,553 $ 207,417 $ — $ 250,970 Short-term investments Available-for-sale securities — corporate bonds and notes — 189,662 — 189,662 Available-for-sale securities — municipal bonds and notes — 6,146 — 6,146 Available-for-sale securities — U.S. government securities — 117,374 — 117,374 Available-for-sale securities — U.S. government agency securities — 47,151 — 47,151 Long-term investments Available-for-sale securities — corporate bonds and notes — 102,939 — 102,939 Total $ 43,553 $ 670,689 $ — $ 714,242 The Company uses the fair value hierarchy for financial assets and liabilities. The carrying amounts of other current financial assets and other current financial liabilities approximate fair value due to their short-term nature. 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. Included in the Company’s impairment considerations for non-financial assets and liabilities in the current quarter were the |
Short-Term and Long-Term Invest
Short-Term and Long-Term Investments | 3 Months Ended |
Dec. 31, 2020 | |
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): December 31, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 179,159 $ 540 $ (5) $ 179,694 Municipal bonds and notes 2,916 — — 2,916 U.S. government securities 116,515 15 (4) 116,526 U.S. government agency securities 47,377 3 (1) 47,379 $ 345,967 $ 558 $ (10) $ 346,515 September 30, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 188,932 $ 736 $ (6) $ 189,662 Municipal bonds and notes 6,143 3 — 6,146 U.S. government securities 117,363 14 (3) 117,374 U.S. government agency securities 47,148 3 — 47,151 $ 359,586 $ 756 $ (9) $ 360,333 Long-term investments consist of the following (in thousands): December 31, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 71,711 $ 462 $ — $ 72,173 U.S. government agency securities 16,580 — — 16,580 $ 88,291 $ 462 $ — $ 88,753 September 30, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 102,206 $ 756 $ (23) $ 102,939 $ 102,206 $ 756 $ (23) $ 102,939 Interest income from investments was $1.1 million and $5.6 million for the three months ended December 31, 2020 and 2019, respectively. Interest income is included in other income, net on the Company's consolidated income statements. 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 December 31, 2020 (in thousands): Less Than 12 Months 12 Months or Greater Total December 31, 2020 Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds and notes $ 26,703 $ (5) $ — $ — $ 26,703 $ (5) U.S. government securities 29,053 (4) — — 29,053 (4) U.S. government agency securities 33,127 (1) — — 33,127 (1) Total $ 88,883 $ (10) $ — $ — $ 88,883 $ (10) 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, 2020 (in thousands): Less Than 12 Months 12 Months or Greater Total September 30, 2020 Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds and notes $ 43,492 $ (28) $ 5,006 $ (1) $ 48,498 $ (29) U.S. government securities 41,812 (3) — — 41,812 (3) Total $ 85,304 $ (31) $ 5,006 $ (1) $ 90,310 $ (32) The Company invests in securities that are rated investment grade. Gross unrealized losses were not material for the three months ended December 31, 2020. 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 December 31, 2020, there were no investments in its portfolio that were other-than-temporarily impaired. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal Year 2020 Acquisition of Shape Security, Inc. On December 19, 2019, the Company entered into a Merger Agreement (the "Merger Agreement") with Shape Security, Inc. ("Shape"), a provider of fraud and abuse prevention solutions. The transaction closed on January 24, 2020 with Shape becoming a wholly-owned subsidiary of F5. Pursuant to the Merger Agreement, at the effective time of the acquisition, the capital stock of Shape and the vested outstanding and unexercised stock options in Shape were cancelled and converted to the right to receive approximately $1.0 billion in cash, subject to certain adjustments and conditions set forth in the Merger Agreement, and the unvested stock options and restricted stock units in Shape held by continuing employees of Shape were assumed by F5, on the terms and conditions set forth in the Merger Agreement. Included in cash consideration was $23.2 million of transaction costs paid by F5 on behalf of Shape. In addition, the Company incurred $15.3 million of transaction costs associated with the acquisition which was included in General and Administrative expenses in fiscal 2020. As a result of the acquisition, the Company acquired all the assets and assumed all the liabilities of Shape. The goodwill related to the Shape acquisition is comprised primarily of expected synergies from combining operations and the acquired intangible assets that do not qualify for separate recognition. Goodwill related to the Shape acquisition is not expected to be deductible for tax purposes. The results of operations of Shape have been included in the Company's consolidated financial statements from the date of acquisition. The allocated purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values is presented in the following table (in thousands): Estimated Useful Life Assets acquired Cash, cash equivalents, and restricted cash $ 53,934 Fair value of tangible assets: Accounts receivable 21,077 Deferred tax assets 24,619 Operating lease right-of-use assets 29,644 Other tangible assets 22,571 Identifiable intangible assets: Developed technologies 120,000 7 years Customer relationships 21,000 4 years Trade name 9,500 5 years Goodwill 804,537 Total assets acquired $ 1,106,882 Liabilities assumed Deferred revenue $ (39,000) Operating lease liabilities (30,773) Other assumed liabilities (18,571) Total liabilities assumed $ (88,344) Net assets acquired $ 1,018,538 The measurement period for the Shape acquisition will lapse in the second quarter of fiscal 2021. In the first quarter of fiscal 2021, the Company increased the carrying amount of goodwill by $4.9 million to reflect an adjustment to consideration exchanged for the purchase of Shape within the post-close measurement period. No other financial statement amounts were affected by this adjustment. The adjustment was not material to the current period or any of the previous period financial statements. 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 five years and four years, respectively, and included in sales and marketing expenses. The weighted average life of the amortizable intangible assets recognized from the Shape acquisition was 6.5 years as of January 24, 2020, the date the transaction closed. The estimated useful lives for the acquired intangible assets were based on the expected future cash flows associated with the respective asset. Since the Shape acquisition was completed on January 24, 2020, the F5 and Shape teams have been executing a plan to integrate ongoing operations. The pro forma financial information, as well as the revenue and earnings generated by Shape, were not considered material to the Company's operations. |
Balance Sheet Details
Balance Sheet Details | 3 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Details [Abstract] | |
Balance Sheet Details | Balance Sheet Details Cash, Cash Equivalents and Restricted Cash The following table provides a reconciliation of the Company's cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows for the periods presented (in thousands): December 31, September 30, Cash and cash equivalents $ 1,026,829 $ 849,556 Restricted cash included in other assets, net 3,373 3,270 Total cash, cash equivalents and restricted cash $ 1,030,202 $ 852,826 Inventories Inventories consist of the following (in thousands): December 31, September 30, Finished goods $ 15,839 $ 17,096 Raw materials 10,616 10,802 $ 26,455 $ 27,898 Other Current Assets Other current assets consist of the following (in thousands): December 31, September 30, Contract assets $ 163,546 $ 138,096 Prepaid expenses 59,232 47,197 Capitalized contract acquisition costs 30,687 29,650 Other 29,876 44,563 $ 283,341 $ 259,506 Other Assets Other assets, net consist of the following (in thousands): December 31, September 30, Intangible assets $ 223,371 $ 225,900 Contract assets 82,258 62,377 Capitalized contract acquisition costs 41,282 40,746 Other 21,044 18,424 $ 367,955 $ 347,447 Accrued Liabilities Accrued liabilities consist of the following (in thousands): December 31, September 30, Payroll and benefits $ 141,378 $ 169,708 Operating lease liabilities, current 46,763 46,010 Income and other tax accruals 39,760 33,048 Other 77,891 72,632 $ 305,792 $ 321,398 Other Long-term Liabilities Other long-term liabilities consist of the following (in thousands): December 31, September 30, Income taxes payable $ 52,523 $ 49,846 Other 9,130 9,665 $ 61,653 $ 59,511 |
Debt Facilities
Debt Facilities | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt Facilities | Debt Facilities Term Credit Agreement In connection with the acquisition of Shape, on January 24, 2020, the Company entered into a Term Credit Agreement ("Term Credit Agreement") with certain institutional lenders that provides for a senior unsecured term loan facility in an aggregate principal amount of $400.0 million (the "Term Loan Facility"). The proceeds from the Term Loan Facility were primarily used to finance the acquisition of Shape and related expenses. In connection with the Term Loan Facility, the Company incurred $2.2 million in debt issuance costs, which are recorded as a reduction to the carrying value of the principal amount of the debt. Borrowings under the Term Loan Facility bear interest at a rate equal to, at the Company's option, (a) LIBOR, adjusted for customary statutory reserves, plus an applicable margin of 1.125% to 1.75% depending on the Company's leverage ratio, or (b) an alternate base rate determined in accordance with the Term Credit Agreement, plus an applicable margin of 0.125% to 0.750% depending on the Company's leverage ratio. Interest on the outstanding principal of borrowings is currently due quarterly in arrears. As of December 31, 2020, the margin for LIBOR-based loans was 1.125% and the margin for alternate base rate loans was 0.125%. The Term Loan Facility matures on January 24, 2023 with quarterly installments (commencing with the first full fiscal quarter ended after January 24, 2020) equal to 1.25% of the original principal amount of the Term Loan Facility. The remaining outstanding principal of borrowings under the Term Loan Facility is due upon maturity on January 24, 2023. Borrowings under the Term Loan Facility may be voluntarily prepaid, in whole or in part, without penalty or premium. Borrowings repaid or prepaid under the Term Loan Facility may not be reborrowed. Among certain affirmative and negative covenants provided in the Term Credit Agreement, there is a financial covenant that requires the Company to maintain a leverage ratio, calculated as of the last day of each fiscal quarter, of consolidated total indebtedness to consolidated EBITDA. This covenant may result in a higher interest rate on its outstanding principal borrowings on the Term Loan Facility in future periods, depending on the Company's performance. As of December 31, 2020, the Company was in compliance with all covenants. As of December 31, 2020, $385.0 million of principal amount under the Term Loan Facility was outstanding, excluding unamortized debt issuance costs of $1.5 million. The weighted average interest rate on the principal amount under the Term Loan Facility outstanding balance was 2.106% for the period ending December 31, 2020. The following table presents the scheduled principal maturities as of December 31, 2020 (in thousands): Fiscal Years Ending September 30: Amount 2021 (remainder) $ 15,000 2022 20,000 2023 350,000 Total $ 385,000 Revolving Credit Agreement On January 31, 2020, the Company entered into a Revolving Credit Agreement (the "Revolving Credit Agreement") that provides for a senior unsecured revolving credit facility in an aggregate principal amount of $350.0 million (the "Revolving Credit Facility"). The Company has the option to increase commitments under the Revolving Credit Facility from time to time, subject to certain conditions, by up to $150.0 million. Borrowings under the Revolving Credit Facility bear interest at a rate equal to, at the Company's option, (a) LIBOR, adjusted for customary statutory reserves, plus an applicable margin of 1.125% to 1.75% depending on the Company's leverage ratio, or (b) an alternate base rate determined in accordance with the Revolving Credit Agreement, plus an applicable margin of 0.125% to 0.750% depending on the Company's leverage ratio. The Revolving Credit Agreement also requires payment of a commitment fee calculated at a rate per annum of 0.125% to 0.300% depending on the Company's leverage ratio on the undrawn portion of the Revolving Credit Facility. Commitment fees incurred during the three months ended December 31, 2020 were not material. |
Leases
Leases | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases During the first quarter of fiscal 2020, the Company adopted ASU 2016-02, Leases (Topic 842) (the "Leasing Standard") using the transition method provided in ASU 2018-11, Leases (Topic 842): Targeted Improvements . The impact of adopting the Leasing Standard resulted in the recognition of right-of-use assets and lease liabilities of $304.8 million and $386.4 million, respectively, on October 1, 2019, the date of adoption. The majority of the Company's operating lease payments relate to its corporate headquarters in Seattle, Washington, which includes approximately 515,000 square feet of office space. The lease commenced in April 2019 and expires in 2033 with an option for renewal. The Company has concluded that the renewal option is not yet likely to be exercised. The Company also leases additional office and lab space for product development and sales and support personnel in the United States and internationally. The Company's lease agreements do not contain any material residual value guarantees or material restrictive covenants. The components of the Company's operating lease expenses for the three months ended December 31, 2020 and 2019 were as follows (in thousands): Three months ended 2020 2019 Operating lease expense $ 12,181 $ 11,318 Short-term lease expense 986 814 Variable lease expense 7,026 5,839 Total lease expense $ 20,193 $ 17,971 Variable lease expense primarily consists of common area maintenance and parking expenses. The Company executed two sublease contracts that commenced during the first quarter of fiscal year 2020. Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate): December 31, 2020 September 30, 2020 Operating lease right-of-use assets, net $ 286,044 $ 300,680 Operating lease liabilities, current 1 46,763 46,010 Operating lease liabilities, long-term 328,468 338,715 Total operating lease liabilities $ 375,231 $ 384,725 Weighted average remaining lease term (in years) 10.1 10.2 Weighted average discount rate 2.59 % 2.58 % (1) Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets. As of December 31, 2020, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending September 30: Operating Lease 2021 (remainder) $ 41,075 2022 57,598 2023 44,656 2024 39,995 2025 33,588 2026 26,705 Thereafter 191,236 Total lease payments 434,853 Less: imputed interest (59,622) Total lease liabilities $ 375,231 Operating lease liabilities above do not include sublease income. As of December 31, 2020, the Company expects to receive sublease income of approximately $9.1 million, which consists of $3.3 million to be received for the remainder of fiscal 2021 and $5.8 million to be received over the two fiscal years thereafter. In the first quarter of fiscal 2021, the Company recorded an impairment of $6.7 million against the right-of-use asset related to the integration of the former Shape headquarters in Santa Clara, California. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020 and September 30, 2020 were not material. Commitments As of December 31, 2020, the Company's principal commitments consisted of borrowings under the Term Loan Facility and obligations outstanding under operating leases. Refer to Note 7 for the scheduled principal maturities of the Term Loan Facility as of December 31, 2020. 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 8 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 13 to its annual consolidated financial statements. Legal Proceedings On June 8, 2020, Lynwood Investment CY Limited (“Lynwood”) filed a lawsuit in the United States District Court for the Northern District of California against the Company and certain affiliates, along with other defendants. In its complaint, Lynwood claims to be the assignee of all rights and interests of Rambler Internet Holding LLC (“Rambler”), and alleges that the intellectual property in the NGINX software originally released by the co-founder of NGINX in 2004 belongs to Rambler (and therefore Lynwood, by assignment) because the software was created and developed while the co-founder was employed by Rambler. Lynwood asserts 26 causes of action against the various defendants, including copyright infringement, violation of trademark law, tortious interference, conspiracy, and fraud. The complaint seeks damages, disgorgement of profits, fees and costs, declarations of copyright and trademark ownership, trademark cancellations, and injunctive relief. Lynwood also initiated several trademark opposition and cancellation proceedings before the Trademark Trial and Appeal Board of the United States Patent and Trademark Office, which have all since been suspended. The Company and the other defendants have filed motions to dismiss all claims asserted against them in the lawsuit. In addition to the above matter, the Company is subject to a variety of legal proceedings, claims, investigations, and litigation arising in the ordinary course of business, including intellectual property litigation. Management believes that the Company has meritorious defenses to the allegations made in its pending cases and intends to vigorously defend these lawsuits; however, the Company is unable 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. The Company records an accrual for loss contingencies for legal proceedings when it believes that an unfavorable outcome is both (a) probable and (b) the amount or range of any possible loss is reasonably estimable. The Company has not recorded any accrual for loss contingencies associated with such legal proceedings or the investigations discussed above. |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company's tax provision for interim periods is determined using an estimated annual effective tax rate, adjusted for discrete items in the related period. The effective tax rate was 25.1% and 22.8% for the three months ended December 31, 2020 and 2019, respectively. The increase in the effective tax rate for the three months ended December 31, 2020 as compared to the three months ended December 31, 2019 is primarily due to the tax impact from stock-based compensation and other non-deductible expenses. At December 31, 2020, the Company had $54.3 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. |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Dec. 31, 2020 | |
Net Income Per Share [Abstract] | |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted net income per share is computed by dividing net income by the weighted average number of common and dilutive common stock equivalent shares outstanding during the period. The Company's nonvested restricted stock units do not have nonforfeitable rights to dividends or dividend equivalents and are not considered participating securities that should be included in the computation of earnings per share under the two-class method. The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended 2020 2019 Numerator Net income $ 87,678 $ 98,527 Denominator Weighted average shares outstanding — basic 61,440 60,649 Dilutive effect of common shares from stock options and restricted stock units 842 166 Weighted average shares outstanding — diluted 62,282 60,815 Basic net income per share $ 1.43 $ 1.62 Diluted net income per share $ 1.41 $ 1.62 Anti-dilutive stock-based awards excluded from the calculations of diluted earnings per share were not material for the three months ended December 31, 2020 and 2019. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision-maker, or decision-making group, in deciding how to allocate resources and in assessing performance. Management has determined that the Company is organized as, and operates in, one reportable operating segment: the development, marketing and sale of application services that optimize the security, performance and availability of network applications, servers and storage systems. Revenues by Geographic Location and Other Information The Company does business in three main geographic regions: the Americas (primarily the United States); Europe, the Middle East, and Africa (EMEA); and the Asia Pacific region (APAC). The Company's chief operating decision-maker reviews financial information presented on a consolidated basis accompanied by information about 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 2020 2019 Americas: United States $ 320,343 $ 275,499 Other 22,793 26,063 Total Americas 343,136 301,562 EMEA 162,084 155,952 Asia Pacific 119,397 111,791 $ 624,617 $ 569,305 The Company generates revenues from the sale of products and services. The Company continues to offer its products through a range of consumption models, from physical systems to software solutions and managed services. The following presents net product revenues by systems and software (in thousands): Three months ended 2020 2019 Net product revenues Systems revenue $ 178,571 $ 169,601 Software revenue 109,474 64,935 Total net product revenue $ 288,045 $ 234,536 The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended 2020 2019 Ingram Micro, Inc. 18.1 % 16.5 % Westcon Group, Inc. — 11.0 % Arrow ECS — 10.1 % Synnex Corporation 10.0 % — The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): December 31, September 30, United States $ 178,638 $ 190,509 EMEA 19,405 20,361 Other countries 17,606 18,369 $ 215,649 $ 229,239 |
Restructuring Charges
Restructuring Charges | 3 Months Ended |
Dec. 31, 2020 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring ChargesIn December 2019, the Company initiated a restructuring plan to match strategic and financial objectives and optimize resources for long term growth, including a reduction in force program affecting approximately 75 employees. The Company recorded a restructuring charge of $7.8 million in the first quarter of fiscal 2020. The Company does not expect to record any significant future charges related to the restructuring plan. During the three months ended December 31, 2019, the following activity was recorded (in thousands): Employee Severance, Benefits and Related Costs Accrued expenses, October 1, 2019 $ — Restructuring charges 7,800 Cash payments (5,282) Non-cash items — Accrued expenses, December 31, 2019 $ 2,518 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Acquisition of Volterra, Inc. On January 5, 2021, the Company entered into a Merger Agreement (the “Merger Agreement”) with Volterra, Inc. ("Volterra"), creator of the first universal edge-as-a-service platform. Pursuant to the Merger Agreement, at the effective time of the Merger, the capital stock of Volterra and the vested outstanding and unexercised stock options in Volterra will be cancelled and converted to the right to receive approximately $440 million in cash and $60 million in deferred consideration, subject to certain adjustments and conditions set forth in the Merger Agreement. The unvested stock options and restricted stock units in Volterra held by continuing employees of Volterra will be assumed by F5, on the terms and conditions set forth in the Merger Agreement. The transaction closed on January 22, 2021 with Volterra becoming a wholly-owned subsidiary of F5. During the first quarter of 2021, the Company incurred approximately $2.7 million of acquisition related expenses associated with the Volterra acquisition, which is included within General and Administrative operating expenses in the Company’s Consolidated Income Statement. As a result of limited access to Volterra information required to prepare initial accounting, together with the limited time since the acquisition date and the effort required to conform the financial statements to the Company's practices and policies, the initial accounting for the business combination is incomplete at the time of this filing. As a result, the Company is unable to provide the amounts recognized as of the acquisition date for the major classes of assets acquired and liabilities assumed, pre-acquisition contingencies and goodwill. Share Repurchase Activities On February 3, 2021, the Company entered into Accelerated Share Repurchase (ASR) agreements with two financial institutions under which the Company paid an aggregate of $500 million and received an initial delivery of shares, which approximates 80 percent of the total number of shares to be repurchased under the ASR agreements. The shares received by the Company were immediately retired. In accordance with the terms of the ASR agreements, the final number of shares to be repurchased and the average price paid per share will be determined upon settlement of the agreements by the end of the third quarter of fiscal 2021. The final number of shares to be repurchased will be based on the volume-weighted average price of the Company’s common stock over the duration of the ASR agreements, less applicable discounts. Upon settlement, the financial institutions may be required to deliver additional shares of common stock to the Company, or under certain conditions, the Company may be required to make a cash payment or deliver shares of common stock, at its election, to the financial institutions. Prior to entering into the ASR agreements, the Company had $1.3 billion remaining authorized under its share repurchase program. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business F5 Networks, Inc. (the "Company") is a leading provider of multi-cloud application services which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The Company's cloud, software, and hardware solutions enable its customers to deliver digital experiences to their customers faster, reliably, and at scale. The Company's enterprise-grade application services are available as cloud-based, software-as-a-service, and software-only solutions optimized for multi-cloud environments, with modules that can run independently, or as part of an integrated solution on its high-performance appliances. In connection with its solutions, the Company offers a broad range of professional services, including consulting, training, installation, maintenance, and other technical support services. |
Basis of Presentation | Basis of Presentation The year-end consolidated balance sheet data was derived from audited financial statements but does not include all disclosures required by accounting principles generally accepted in the United States of America ("GAAP"). In the opinion of management, the unaudited consolidated financial statements reflect all adjustments, consisting only of normal recurring adjustments, necessary for their fair statement in conformity with accounting principles generally accepted in the United States of America. Certain information and footnote disclosures normally included in annual financial statements have been condensed or omitted in accordance with the rules and regulations of the Securities and Exchange Commission ("SEC"). The information included in this Form 10-Q should be read in conjunction with Management’s Discussion and Analysis of Financial Condition and Results of Operations and financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2020. In December 2019, a novel strain of coronavirus (“COVID-19“) was first identified, and in March 2020, the World Health Organization categorized COVID-19 as a pandemic. The Company assessed the impact that COVID-19 had on its results of operations, including, but not limited to an assessment of its allowance for current expected credit losses, the carrying value of short-term and long-term investments, the carrying value of goodwill and other long-lived assets, and the impact to revenue recognition and cost of revenues. The Company is actively monitoring the impact to the results of its business operations, and may make decisions required by federal, state or local authorities, or that are determined to be in the best interests of its employees, customers, partners, suppliers and stockholders. As of the filing date, the extent to which the COVID-19 pandemic may impact the Company’s financial condition or results of operations remains uncertain. |
Recent Accounting Pronouncements | Recently Adopted Accounting Standards 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 Company adopted this new standard prospectively on October 1, 2020. The adoption of this standard did not have a material impact to the Company’s consolidated financial statements or disclosures. 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 modifies the accounting for credit losses for most financial assets and requires the use of an expected loss model, replacing the currently used incurred loss method. Under this model, entities will be required to estimate the lifetime expected credit loss on such instruments and record an allowance to offset the amortized cost basis of the financial asset, resulting in a net presentation of the amount expected to be collected on the financial asset. The Company adopted this new standard on October 1, 2020 using the modified retrospective approach. The adoption of this standard did not have a material impact on the Company’s condensed consolidated financial statements. The following accounting policies were updated as a result of the adoption of this standard. Investments The Company classifies its investment securities as available-for-sale. Investment securities, consisting of certificates of deposit, corporate and municipal bonds and notes, the United States government and agency securities and international government securities are reported at fair value with the related unrealized gains and losses included as a component of accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses and impairments due to credit losses, in which the fair value of a security is below its amortized cost and management’s intent is to sell the impaired security prior to its recovery, are included in other income (expense). An allowance for credit losses for the excess of amortized cost over the expected cash flows is recorded in other income, net in the Company's consolidated income statements. The cost of investments for purposes of computing realized and unrealized gains and losses is based on the specific identification method. Investments in securities with maturities of less than one year or where management’s intent is to use the investments to fund current operations are classified as short-term investments. Investments with maturities of greater than one year are classified as long-term investments. Accounts Receivable Trade accounts receivable are recorded at the invoiced amount, net of allowances for credit losses for any potential uncollectible amounts. The allowance for credit losses is based on the assessment of the collectability of accounts. Management regularly reviews the adequacy of the allowance for credit losses on a collective basis by considering the age of each outstanding invoice, each customer’s expected ability to pay and collection history, current market conditions, and reasonable and supportable forecasts of future economic conditions to determine whether the allowance is appropriate. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. For the three months ended December 31, 2020 and 2019, the allowance for credit losses activity was not significant. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Capitalized Contract Cost | The table below shows significant movements in capitalized contract acquisition costs (current and noncurrent) for the three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 70,396 $ 59,446 Additional capitalized contract acquisition costs deferred 9,725 7,412 Amortization of capitalized contract acquisition costs (8,152) (8,705) Balance, end of period $ 71,969 $ 58,153 |
Contract with Customer, Asset and Liability | The table below shows significant movements in contract assets (current and noncurrent) for the three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 200,472 $ 132,492 Revenue recognized during period but not yet billed 18,316 3,407 Contract asset additions 55,834 12,930 Contract assets reclassified to accounts receivable (28,818) (13,584) Balance, end of period $ 245,804 $ 135,245 The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the three months ended December 31, 2020 and 2019 (in thousands): Three months ended 2020 2019 Balance, beginning of period $ 1,272,632 $ 1,198,116 Amounts billed but not recognized as revenues 421,918 346,132 Revenues recognized related to the opening balance of deferred revenue (335,725) (306,275) Balance, end of period $ 1,358,825 $ 1,237,973 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
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 December 31, 2020, were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets for Identical Securities Significant Other Significant Fair Value at Cash equivalents $ 286,495 $ 208,406 $ — $ 494,901 Short-term investments Available-for-sale securities — corporate bonds and notes — 179,694 — 179,694 Available-for-sale securities — municipal bonds and notes — 2,916 — 2,916 Available-for-sale securities — U.S. government securities — 116,526 — 116,526 Available-for-sale securities — U.S. government agency securities — 47,379 — 47,379 Long-term investments Available-for-sale securities — corporate bonds and notes — 72,173 — 72,173 Available-for-sale securities — U.S. government agency securities — 16,580 — 16,580 Total $ 286,495 $ 643,674 $ — $ 930,169 The Company's financial assets measured at fair value on a recurring basis subject to the disclosure requirements at September 30, 2020, were as follows (in thousands): Fair Value Measurements at Reporting Date Using Quoted Prices in Active Markets Significant Significant Fair Value at Cash equivalents $ 43,553 $ 207,417 $ — $ 250,970 Short-term investments Available-for-sale securities — corporate bonds and notes — 189,662 — 189,662 Available-for-sale securities — municipal bonds and notes — 6,146 — 6,146 Available-for-sale securities — U.S. government securities — 117,374 — 117,374 Available-for-sale securities — U.S. government agency securities — 47,151 — 47,151 Long-term investments Available-for-sale securities — corporate bonds and notes — 102,939 — 102,939 Total $ 43,553 $ 670,689 $ — $ 714,242 |
Short-Term and Long-Term Inve_2
Short-Term and Long-Term Investments (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-Term and Long-Term Investments | Short-term investments consist of the following (in thousands): December 31, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 179,159 $ 540 $ (5) $ 179,694 Municipal bonds and notes 2,916 — — 2,916 U.S. government securities 116,515 15 (4) 116,526 U.S. government agency securities 47,377 3 (1) 47,379 $ 345,967 $ 558 $ (10) $ 346,515 September 30, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 188,932 $ 736 $ (6) $ 189,662 Municipal bonds and notes 6,143 3 — 6,146 U.S. government securities 117,363 14 (3) 117,374 U.S. government agency securities 47,148 3 — 47,151 $ 359,586 $ 756 $ (9) $ 360,333 Long-term investments consist of the following (in thousands): December 31, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 71,711 $ 462 $ — $ 72,173 U.S. government agency securities 16,580 — — 16,580 $ 88,291 $ 462 $ — $ 88,753 September 30, 2020 Cost or Gross Gross Fair Value Corporate bonds and notes $ 102,206 $ 756 $ (23) $ 102,939 $ 102,206 $ 756 $ (23) $ 102,939 |
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 December 31, 2020 (in thousands): Less Than 12 Months 12 Months or Greater Total December 31, 2020 Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds and notes $ 26,703 $ (5) $ — $ — $ 26,703 $ (5) U.S. government securities 29,053 (4) — — 29,053 (4) U.S. government agency securities 33,127 (1) — — 33,127 (1) Total $ 88,883 $ (10) $ — $ — $ 88,883 $ (10) 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, 2020 (in thousands): Less Than 12 Months 12 Months or Greater Total September 30, 2020 Fair Value Gross Fair Value Gross Fair Value Gross Corporate bonds and notes $ 43,492 $ (28) $ 5,006 $ (1) $ 48,498 $ (29) U.S. government securities 41,812 (3) — — 41,812 (3) Total $ 85,304 $ (31) $ 5,006 $ (1) $ 90,310 $ (32) |
Business Combinations (Tables)
Business Combinations (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The allocated purchase consideration to assets acquired and liabilities assumed based on preliminary estimated fair values is presented in the following table (in thousands): Estimated Useful Life Assets acquired Cash, cash equivalents, and restricted cash $ 53,934 Fair value of tangible assets: Accounts receivable 21,077 Deferred tax assets 24,619 Operating lease right-of-use assets 29,644 Other tangible assets 22,571 Identifiable intangible assets: Developed technologies 120,000 7 years Customer relationships 21,000 4 years Trade name 9,500 5 years Goodwill 804,537 Total assets acquired $ 1,106,882 Liabilities assumed Deferred revenue $ (39,000) Operating lease liabilities (30,773) Other assumed liabilities (18,571) Total liabilities assumed $ (88,344) Net assets acquired $ 1,018,538 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Balance Sheet Details [Abstract] | |
Cash and Cash Equivalents | The following table provides a reconciliation of the Company's cash and cash equivalents and restricted cash reported within the consolidated balance sheets that sum to the total cash, cash equivalents and restricted cash shown in the Company's consolidated statements of cash flows for the periods presented (in thousands): December 31, September 30, Cash and cash equivalents $ 1,026,829 $ 849,556 Restricted cash included in other assets, net 3,373 3,270 Total cash, cash equivalents and restricted cash $ 1,030,202 $ 852,826 |
Inventories | Inventories consist of the following (in thousands): December 31, September 30, Finished goods $ 15,839 $ 17,096 Raw materials 10,616 10,802 $ 26,455 $ 27,898 |
Other Current Assets | Other current assets consist of the following (in thousands): December 31, September 30, Contract assets $ 163,546 $ 138,096 Prepaid expenses 59,232 47,197 Capitalized contract acquisition costs 30,687 29,650 Other 29,876 44,563 $ 283,341 $ 259,506 |
Other Assets, Noncurrent | Other assets, net consist of the following (in thousands): December 31, September 30, Intangible assets $ 223,371 $ 225,900 Contract assets 82,258 62,377 Capitalized contract acquisition costs 41,282 40,746 Other 21,044 18,424 $ 367,955 $ 347,447 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): December 31, September 30, Payroll and benefits $ 141,378 $ 169,708 Operating lease liabilities, current 46,763 46,010 Income and other tax accruals 39,760 33,048 Other 77,891 72,632 $ 305,792 $ 321,398 |
Noncurrent Liabilities | Other long-term liabilities consist of the following (in thousands): December 31, September 30, Income taxes payable $ 52,523 $ 49,846 Other 9,130 9,665 $ 61,653 $ 59,511 |
Debt Facilities (Tables)
Debt Facilities (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The following table presents the scheduled principal maturities as of December 31, 2020 (in thousands): Fiscal Years Ending September 30: Amount 2021 (remainder) $ 15,000 2022 20,000 2023 350,000 Total $ 385,000 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Lease, Cost | The components of the Company's operating lease expenses for the three months ended December 31, 2020 and 2019 were as follows (in thousands): Three months ended 2020 2019 Operating lease expense $ 12,181 $ 11,318 Short-term lease expense 986 814 Variable lease expense 7,026 5,839 Total lease expense $ 20,193 $ 17,971 |
Assets And Liabilities Lessee | Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate): December 31, 2020 September 30, 2020 Operating lease right-of-use assets, net $ 286,044 $ 300,680 Operating lease liabilities, current 1 46,763 46,010 Operating lease liabilities, long-term 328,468 338,715 Total operating lease liabilities $ 375,231 $ 384,725 Weighted average remaining lease term (in years) 10.1 10.2 Weighted average discount rate 2.59 % 2.58 % (1) Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets. |
Lessee, Operating Lease, Liability, Maturity | As of December 31, 2020, the future operating lease payments for each of the next five years and thereafter is as follows (in thousands): Fiscal Years Ending September 30: Operating Lease 2021 (remainder) $ 41,075 2022 57,598 2023 44,656 2024 39,995 2025 33,588 2026 26,705 Thereafter 191,236 Total lease payments 434,853 Less: imputed interest (59,622) Total lease liabilities $ 375,231 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Net Income Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the computation of basic and diluted net income per share (in thousands, except per share data): Three months ended 2020 2019 Numerator Net income $ 87,678 $ 98,527 Denominator Weighted average shares outstanding — basic 61,440 60,649 Dilutive effect of common shares from stock options and restricted stock units 842 166 Weighted average shares outstanding — diluted 62,282 60,815 Basic net income per share $ 1.43 $ 1.62 Diluted net income per share $ 1.41 $ 1.62 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | The following presents revenues by geographic region (in thousands): Three months ended 2020 2019 Americas: United States $ 320,343 $ 275,499 Other 22,793 26,063 Total Americas 343,136 301,562 EMEA 162,084 155,952 Asia Pacific 119,397 111,791 $ 624,617 $ 569,305 |
Schedule of Product Revenues by Systems and Software | The following presents net product revenues by systems and software (in thousands): Three months ended 2020 2019 Net product revenues Systems revenue $ 178,571 $ 169,601 Software revenue 109,474 64,935 Total net product revenue $ 288,045 $ 234,536 |
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 2020 2019 Ingram Micro, Inc. 18.1 % 16.5 % Westcon Group, Inc. — 11.0 % Arrow ECS — 10.1 % Synnex Corporation 10.0 % — |
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): December 31, September 30, United States $ 178,638 $ 190,509 EMEA 19,405 20,361 Other countries 17,606 18,369 $ 215,649 $ 229,239 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 3 Months Ended |
Dec. 31, 2019 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | During the three months ended December 31, 2019, the following activity was recorded (in thousands): Employee Severance, Benefits and Related Costs Accrued expenses, October 1, 2019 $ — Restructuring charges 7,800 Cash payments (5,282) Non-cash items — Accrued expenses, December 31, 2019 $ 2,518 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Capitalized contract acquisition costs (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Changes In Capitalized Contract Cost [Roll Forward] | ||
Beginning Balance | $ 70,396 | $ 59,446 |
Additional capitalized contract acquisition costs deferred | 9,725 | 7,412 |
Amortization of capitalized contract acquisition costs | (8,152) | (8,705) |
Ending Balance | $ 71,969 | $ 58,153 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Narrative (Details) - USD ($) | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | ||
Amortization of capitalized contract acquisition costs | $ 8,152,000 | $ 8,705,000 |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Change in Contract with Customer, Asset [Roll Forward] | ||
Beginning Balance | $ 200,472 | $ 132,492 |
Revenue recognized during period but not yet billed | 18,316 | 3,407 |
Contract asset additions | 55,834 | 12,930 |
Contract assets reclassified to accounts receivable | (28,818) | (13,584) |
Ending Balance | 245,804 | 135,245 |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning Balance | 1,272,632 | 1,198,116 |
Amounts billed but not recognized as revenues | 421,918 | 346,132 |
Revenues recognized related to the opening balance of deferred revenue | (335,725) | (306,275) |
Ending Balance | $ 1,358,825 | $ 1,237,973 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Billions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 68.90% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 18.90% |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Fair Value Measurements - Sched
Fair Value Measurements - Schedule of Financial Assets Measured at Fair Value on a Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | $ 494,901 | $ 250,970 |
Investments, fair value | 930,169 | 714,242 |
Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 179,694 | 189,662 |
Debt Securities, Available-for-sale, Noncurrent | 72,173 | 102,939 |
Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 2,916 | 6,146 |
U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 116,526 | 117,374 |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 47,379 | 47,151 |
Debt Securities, Available-for-sale, Noncurrent | 16,580 | |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 286,495 | 43,553 |
Investments, fair value | 286,495 | 43,553 |
Level 1 | Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Debt Securities, Available-for-sale, Noncurrent | 0 | 0 |
Level 1 | Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Level 1 | U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Level 1 | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Debt Securities, Available-for-sale, Noncurrent | 0 | |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 208,406 | 207,417 |
Investments, fair value | 643,674 | 670,689 |
Level 2 | Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 179,694 | 189,662 |
Debt Securities, Available-for-sale, Noncurrent | 72,173 | 102,939 |
Level 2 | Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 2,916 | 6,146 |
Level 2 | U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 116,526 | 117,374 |
Level 2 | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 47,379 | 47,151 |
Debt Securities, Available-for-sale, Noncurrent | 16,580 | |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 0 | 0 |
Investments, fair value | 0 | 0 |
Level 3 | Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Debt Securities, Available-for-sale, Noncurrent | 0 | 0 |
Level 3 | Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Level 3 | U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | 0 |
Level 3 | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Debt Securities, Available-for-sale, Current | 0 | $ 0 |
Debt Securities, Available-for-sale, Noncurrent | $ 0 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Operating Lease, Impairment Loss | $ 6.7 | |
Fair Value, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Operating Lease, Impairment Loss | $ 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 | 3 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2020 | |
Schedule of Investments [Line Items] | |||
Interest income from investments | $ 1,100 | $ 5,600 | |
Short-Term Investments | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 345,967 | $ 359,586 | |
Gross unrealized gains | 558 | 756 | |
Gross unrealized losses | (10) | (9) | |
Fair value | 346,515 | 360,333 | |
Short-Term Investments | Corporate Bonds and Notes | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 179,159 | 188,932 | |
Gross unrealized gains | 540 | 736 | |
Gross unrealized losses | (5) | (6) | |
Fair value | 179,694 | 189,662 | |
Short-Term Investments | Municipal Bonds and Notes | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 2,916 | 6,143 | |
Gross unrealized gains | 0 | 3 | |
Gross unrealized losses | 0 | 0 | |
Fair value | 2,916 | 6,146 | |
Short-Term Investments | U.S. Government Securities | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 116,515 | 117,363 | |
Gross unrealized gains | 15 | 14 | |
Gross unrealized losses | (4) | (3) | |
Fair value | 116,526 | 117,374 | |
Short-Term Investments | U.S. Government Agency Securities | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 47,377 | 47,148 | |
Gross unrealized gains | 3 | 3 | |
Gross unrealized losses | (1) | 0 | |
Fair value | 47,379 | 47,151 | |
Long-Term Investments | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 88,291 | 102,206 | |
Gross unrealized gains | 462 | 756 | |
Gross unrealized losses | 0 | (23) | |
Fair value | 88,753 | 102,939 | |
Long-Term Investments | Corporate Bonds and Notes | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 71,711 | 102,206 | |
Gross unrealized gains | 462 | 756 | |
Gross unrealized losses | 0 | (23) | |
Fair value | 72,173 | $ 102,939 | |
Long-Term Investments | U.S. Government Agency Securities | |||
Schedule of Investments [Line Items] | |||
Cost or amortized cost | 16,580 | ||
Gross unrealized gains | 0 | ||
Gross unrealized losses | 0 | ||
Fair value | $ 16,580 |
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 | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value | ||
Less than 12 months | $ 88,883 | $ 85,304 |
12 months or greater | 0 | 5,006 |
Total | 88,883 | 90,310 |
Gross Unrealized Losses | ||
Less than 12 months | (10) | (31) |
12 months or greater | 0 | (1) |
Total | (10) | (32) |
Corporate Bonds and Notes | ||
Fair Value | ||
Less than 12 months | 26,703 | 43,492 |
12 months or greater | 0 | 5,006 |
Total | 26,703 | 48,498 |
Gross Unrealized Losses | ||
Less than 12 months | (5) | (28) |
12 months or greater | 0 | (1) |
Total | (5) | (29) |
U.S. Government Securities | ||
Fair Value | ||
Less than 12 months | 29,053 | 41,812 |
12 months or greater | 0 | 0 |
Total | 29,053 | 41,812 |
Gross Unrealized Losses | ||
Less than 12 months | (4) | (3) |
12 months or greater | 0 | 0 |
Total | (4) | $ (3) |
U.S. Government Agency Securities | ||
Fair Value | ||
Less than 12 months | 33,127 | |
12 months or greater | 0 | |
Total | 33,127 | |
Gross Unrealized Losses | ||
Less than 12 months | (1) | |
12 months or greater | 0 | |
Total | $ (1) |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - Shape Security, Inc. - USD ($) $ in Millions | Jan. 24, 2020 | Dec. 31, 2020 | Sep. 30, 2020 |
Business Acquisition [Line Items] | |||
Total purchase price | $ 1,000 | ||
Transaction costs | $ 23.2 | ||
Identifiable intangible assets useful life | 6 years 6 months | ||
Goodwill, Other Increase (Decrease) | $ 4.9 | ||
General and Administrative Expense | |||
Business Acquisition [Line Items] | |||
Business combination, acquisition related costs | $ 15.3 | ||
Developed Technology Rights | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 7 years | ||
Customer Relationships | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 4 years | ||
Trade Names | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 5 years |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jan. 24, 2020 | Dec. 31, 2020 | Sep. 30, 2020 |
Fair Value of intangible Assets [Abstract] | |||
Goodwill | $ 1,863,892 | $ 1,858,966 | |
Shape Security, Inc. | |||
Assets Acquired [Abstract] | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Cash and Equivalents | $ 53,934 | ||
Fair Value of intangible Assets [Abstract] | |||
Accounts receivable | 21,077 | ||
Deferred tax assets | 24,619 | ||
Operating lease right-of-use assets | 29,644 | ||
Other tangible assets | $ 22,571 | ||
Identifiable intangible assets useful life | 6 years 6 months | ||
Goodwill | $ 804,537 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total | 1,106,882 | ||
Liabilities Assumed Abstract [Abstract] | |||
Deferred revenue | (39,000) | ||
Operating lease liabilities | (30,773) | ||
Other assumed liabilities | (18,571) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities | (88,344) | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 1,018,538 | ||
Shape Security, Inc. | Developed Technology Rights | |||
Fair Value of intangible Assets [Abstract] | |||
Identifiable intangible assets: | $ 120,000 | ||
Identifiable intangible assets useful life | 7 years | ||
Shape Security, Inc. | Customer Relationships | |||
Fair Value of intangible Assets [Abstract] | |||
Identifiable intangible assets: | $ 21,000 | ||
Identifiable intangible assets useful life | 4 years | ||
Shape Security, Inc. | Trade Names | |||
Fair Value of intangible Assets [Abstract] | |||
Identifiable intangible assets: | $ 9,500 | ||
Identifiable intangible assets useful life | 5 years |
Balance Sheet Details - Cash an
Balance Sheet Details - Cash and Cash Equivalent (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Balance Sheet Details [Abstract] | ||||
Cash and cash equivalents | $ 1,026,829 | $ 849,556 | ||
Restricted cash included in other assets, net | 3,373 | 3,270 | ||
Total cash, cash equivalents and restricted cash | $ 1,030,202 | $ 852,826 | $ 738,645 | $ 602,254 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||
Finished goods | $ 15,839 | $ 17,096 |
Raw materials | 10,616 | 10,802 |
Inventories | $ 26,455 | $ 27,898 |
Balance Sheet Details - Other C
Balance Sheet Details - Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||
Contract assets | $ 163,546 | $ 138,096 |
Prepaid expenses | 59,232 | 47,197 |
Capitalized contract acquisition costs | 30,687 | 29,650 |
Other | 29,876 | 44,563 |
Other Assets, Current | $ 283,341 | $ 259,506 |
Balance Sheet Details - Other A
Balance Sheet Details - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||
Intangible assets | $ 223,371 | $ 225,900 |
Contract assets | 82,258 | 62,377 |
Capitalized contract acquisition costs | 41,282 | 40,746 |
Other | 21,044 | 18,424 |
Other Assets, Noncurrent | $ 367,955 | $ 347,447 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||
Payroll and benefits | $ 141,378 | $ 169,708 |
Operating lease liabilities, current | 46,763 | 46,010 |
Income and other tax accruals | 39,760 | 33,048 |
Other | 77,891 | 72,632 |
Accrued Liabilities, Current | $ 305,792 | $ 321,398 |
Balance Sheet Details - Other L
Balance Sheet Details - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||
Income taxes payable | $ 52,523 | $ 49,846 |
Other | 9,130 | 9,665 |
Other long-term liabilities | $ 61,653 | $ 59,511 |
Debt Facilities - Narrative (De
Debt Facilities - Narrative (Details) | Jan. 31, 2020USD ($) | Jan. 24, 2020USD ($) | Dec. 31, 2020USD ($)extension |
Term Loan Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 400,000,000 | ||
Debt issuance costs | $ 2,200,000 | $ 1,500,000 | |
Redemption percentage | 1.25% | ||
Long-term line of credit | $ 385,000,000 | ||
Interest rate at end of period | 2.106% | ||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Term Loan Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Term Loan Facility | Alternate Base Rate | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Term Loan Facility | Alternate Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Term Loan Facility | Alternate Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% | ||
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Aggregate principal amount | $ 350,000,000 | ||
Long-term line of credit | $ 0 | ||
Conditional increase in borrowing capacity | $ 150,000,000 | ||
Number of extensions | extension | 2 | ||
Length of extension period | 1 year | ||
Outstanding line of credit balance | $ 350,000,000 | ||
Revolving Credit Facility | Minimum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.125% | ||
Revolving Credit Facility | Maximum | |||
Debt Instrument [Line Items] | |||
Commitment fee percentage | 0.30% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.125% | ||
Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 1.75% | ||
Revolving Credit Facility | Alternate Base Rate | Minimum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.125% | ||
Revolving Credit Facility | Alternate Base Rate | Maximum | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 0.75% |
Debt Facilities - Long-term Deb
Debt Facilities - Long-term Debt Maturities (Details) - Term Loan Facility $ in Thousands | Dec. 31, 2020USD ($) |
Debt Instrument [Line Items] | |
2021 (remainder) | $ 15,000 |
2022 | 20,000 |
2023 | 350,000 |
Total | $ 385,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020USD ($)ft² | Sep. 30, 2020USD ($) | Oct. 01, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 286,044 | $ 300,680 | |
Sublease Income | 9,100 | ||
Sublease income payment remainder of fiscal year | 3,300 | ||
Payment to be received in year two and three | 5,800 | ||
Operating Lease, Impairment Loss | $ 6,700 | ||
Office Building | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease, number of square feet | ft² | 515 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease right-of-use assets | $ 304,800 | ||
Lease liabilities | $ 386,400 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating lease expense | $ 12,181 | $ 11,318 |
Short-term lease expense | 986 | 814 |
Variable lease expense | 7,026 | 5,839 |
Total lease expense | $ 20,193 | $ 17,971 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 286,044 | $ 300,680 |
Operating lease liabilities, current | 46,763 | 46,010 |
Operating lease liabilities, long-term | 328,468 | 338,715 |
Total lease liabilities | $ 375,231 | $ 384,725 |
Weighted average remaining lease term (in years) | 10 years 1 month 6 days | 10 years 2 months 12 days |
Weighted average discount rate | 2.59% | 2.58% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Sep. 30, 2020 |
Leases [Abstract] | ||
2021 (remainder) | $ 41,075 | |
2022 | 57,598 | |
2023 | 44,656 | |
2024 | 39,995 | |
2025 | 33,588 | |
2026 | 26,705 | |
Thereafter | 191,236 | |
Total lease payments | 434,853 | |
Less: imputed interest | (59,622) | |
Total lease liabilities | $ 375,231 | $ 384,725 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | 3 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period | 1 year |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Effective tax rate | 25.10% | 22.80% |
Unrecognized tax benefit | $ 54.3 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator | ||
Net income | $ 87,678 | $ 98,527 |
Denominator | ||
Weighted average shares outstanding — basic (shares) | 61,440 | 60,649 |
Dilutive effect of common shares from stock options and restricted stock units | 842 | 166 |
Weighted average shares outstanding — diluted (shares) | 62,282 | 60,815 |
Basic net income per share (dollars per share) | $ 1.43 | $ 1.62 |
Diluted net income per share (dollars per share) | $ 1.41 | $ 1.62 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2020USD ($)segmentgeographic_region | Dec. 31, 2019USD ($) | Sep. 30, 2020USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | segment | 1 | ||
Number of geographic regions | geographic_region | 3 | ||
Net revenues | $ 624,617 | $ 569,305 | |
Long-lived assets | 215,649 | $ 229,239 | |
Product | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 288,045 | 234,536 | |
Software [Member] | Product | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 109,474 | 64,935 | |
Systems [Member] | Product | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 178,571 | 169,601 | |
United States | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 320,343 | 275,499 | |
Long-lived assets | 178,638 | 190,509 | |
Other | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 22,793 | 26,063 | |
Total Americas | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 343,136 | 301,562 | |
EMEA | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 162,084 | 155,952 | |
Long-lived assets | 19,405 | 20,361 | |
Asia Pacific | |||
Segment Reporting Information [Line Items] | |||
Net revenues | 119,397 | $ 111,791 | |
Other countries | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | $ 17,606 | $ 18,369 | |
Ingram Micro, Inc. | Net Revenue | Geographic Concentration | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 18.10% | 16.50% | |
Westcon Group, Inc. | Net Revenue | Geographic Concentration | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 0.00% | 11.00% | |
Arrow ECS | Net Revenue | Geographic Concentration | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 0.00% | 10.10% | |
Synnex Corporation | Net Revenue | Geographic Concentration | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 10.00% | 0.00% |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($)employee | |
Restructuring Charges [Abstract] | ||
Number of employees in reduction of force program | employee | 75 | |
Restructuring charges | $ | $ 0 | $ 7,800 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Reserve [Roll Forward] | ||
Accrued expenses (Beginning balance) | $ 0 | |
Restructuring charges | $ 0 | 7,800 |
Cash payments | (5,282) | |
Non-cash items | 0 | |
Accrued expenses (Ending balance) | $ 2,518 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Millions | Feb. 03, 2021 | Jan. 22, 2021 | Dec. 31, 2020 |
Subsequent Event [Line Items] | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 1,300 | ||
Volterra [Member] | |||
Subsequent Event [Line Items] | |||
Transaction costs | $ 2.7 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 500 | ||
Accelerated Share Repurchases, Cash or Stock Settlement | approximates 80 percent of the total number of shares to be repurchased under the ASR agreements. | ||
Subsequent Event | Volterra [Member] | |||
Subsequent Event [Line Items] | |||
Payments to Acquire Businesses, Gross | $ 440 | ||
Business Combination, Consideration Transferred, Other | $ 60 |