Cover Page
Cover Page - shares | 6 Months Ended | |
Mar. 31, 2022 | Apr. 28, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 000-26041 | |
Entity Registrant Name | F5, 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 | 60,472,024 | |
Entity Central Index Key | 0001048695 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Current assets | ||
Cash and cash equivalents | $ 586,543 | $ 580,977 |
Short-term investments | 300,591 | 329,630 |
Accounts receivable, net of allowances of $4,336 and $3,696 | 414,218 | 340,536 |
Inventories | 27,883 | 22,055 |
Other current assets | 405,596 | 337,902 |
Total current assets | 1,734,831 | 1,611,100 |
Property and equipment, net | 178,742 | 191,164 |
Operating lease right-of-use assets | 227,576 | 244,934 |
Long-term investments | 34,911 | 132,778 |
Deferred tax assets | 158,357 | 128,193 |
Goodwill | 2,259,951 | 2,216,553 |
Other assets, net | 482,805 | 472,558 |
Total assets | 5,077,173 | 4,997,280 |
Current liabilities | ||
Accounts payable | 69,131 | 62,096 |
Accrued liabilities | 301,206 | 341,487 |
Deferred revenue | 1,043,482 | 968,669 |
Current portion of long-term debt | 359,410 | 19,275 |
Total current liabilities | 1,773,229 | 1,391,527 |
Deferred tax liabilities | 2,729 | 2,414 |
Deferred revenue, long-term | 556,254 | 521,173 |
Operating lease liabilities, long-term | 276,416 | 296,945 |
Long-term debt | 0 | 349,772 |
Other long-term liabilities | 71,417 | 75,236 |
Total long-term liabilities | 906,816 | 1,245,540 |
Commitments and contingencies (Note 8) | ||
Shareholders' equity | ||
Preferred stock, no par value; 10,000 shares authorized, no shares outstanding | 0 | 0 |
Common stock, no par value; 200,000 shares authorized, 60,465 and 60,652 shares issued and outstanding | 82,133 | 192,458 |
Accumulated other comprehensive loss | (22,628) | (20,073) |
Retained earnings | 2,337,623 | 2,187,828 |
Total shareholders' equity | 2,397,128 | 2,360,213 |
Total liabilities and shareholders' equity | $ 5,077,173 | $ 4,997,280 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, Allowance for Credit Loss | $ 4,336 | $ 3,696 |
Preferred stock, par value (dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 60,465,000 | 60,652,000 |
Consolidated Income Statements
Consolidated Income Statements - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | $ 634,224 | $ 645,287 | $ 1,321,324 | $ 1,269,904 |
Cost of net revenues | ||||
Cost of net revenues | 126,359 | 128,585 | 261,432 | 243,564 |
Gross profit | 507,865 | 516,702 | 1,059,892 | 1,026,340 |
Operating expenses | ||||
Sales and marketing | 228,826 | 244,908 | 462,861 | 459,454 |
Research and development | 135,838 | 140,453 | 266,109 | 254,644 |
General and administrative | 68,554 | 77,840 | 134,215 | 140,993 |
Restructuring charges | 0 | 0 | 7,909 | 0 |
Total | 433,218 | 463,201 | 871,094 | 855,091 |
Income from operations | 74,647 | 53,501 | 188,798 | 171,249 |
Other expense, net | (1,934) | (1,377) | (4,365) | (2,060) |
Income before income taxes | 72,713 | 52,124 | 184,433 | 169,189 |
Provision for income taxes | 16,477 | 8,883 | 34,638 | 38,270 |
Net income | $ 56,236 | $ 43,241 | $ 149,795 | $ 130,919 |
Net income per share — basic (dollars per share) | $ 0.93 | $ 0.71 | $ 2.47 | $ 2.14 |
Weighted average shares — basic (shares) | 60,573 | 60,667 | 60,693 | 61,058 |
Net income per share — diluted (dollars per share) | $ 0.92 | $ 0.70 | $ 2.43 | $ 2.10 |
Weighted average shares — diluted (shares) | 61,405 | 62,158 | 61,661 | 62,292 |
Product | ||||
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | $ 297,518 | $ 309,189 | $ 640,667 | $ 597,234 |
Cost of net revenues | ||||
Cost of net revenues | 71,234 | 73,289 | 152,896 | 140,327 |
Service | ||||
Net revenues | ||||
Revenue from contract with customer, excluding assessed tax | 336,706 | 336,098 | 680,657 | 672,670 |
Cost of net revenues | ||||
Cost of net revenues | $ 55,125 | $ 55,296 | $ 108,536 | $ 103,237 |
Consolidated Statements Of Comp
Consolidated Statements Of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 56,236 | $ 43,241 | $ 149,795 | $ 130,919 |
Other comprehensive (loss) income: | ||||
Foreign currency translation adjustment | (79) | (841) | (596) | 437 |
Available-for-sale securities: | ||||
Unrealized losses on securities, net of taxes of $(148) and $(142) for the three months ended March 31, 2022 and 2021, respectively, and $(222) and $(192) for the six months ended March 31, 2022 and 2021, respectively | (1,294) | (731) | (1,915) | (1,151) |
Reclassification adjustment for realized (losses) gains included in net income, net of taxes of $12 and $(61) for the three months ended March 31, 2022 and 2021, respectively, and $14 and $(61) for the six months ended March 31, 2022 and 2021, respectively | (40) | 233 | (44) | 236 |
Net change in unrealized losses on available-for-sale securities, net of tax | (1,334) | (498) | (1,959) | (915) |
Total other comprehensive loss | (1,413) | (1,339) | (2,555) | (478) |
Comprehensive income | $ 54,823 | $ 41,902 | $ 147,240 | $ 130,441 |
Consolidated Statements Of Co_2
Consolidated Statements Of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax effect of unrealized gain (loss) on securities | $ (148) | $ (142) | $ (222) | $ (192) |
Tax effect of reclassification adjustment for realized (gains) losses | $ 12 | $ (61) | $ 14 | $ (61) |
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, 2020 | 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) | 83 | |||
Exercise of employee stock options | 2,610 | $ 2,610 | ||
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) | 742 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (2,052) | |||
Repurchase of common stock | (400,000) | $ (311,056) | (88,944) | |
Adjustments To Additional Paid In Capital, Equity Forward Contract | (100,000) | $ (100,000) | ||
Cost of Issuance of Treasury Stock, Shares | (51) | |||
Taxes paid related to net share settlement of equity awards | (7,928) | $ (7,928) | ||
Stock-based compensation | 124,351 | $ 124,351 | ||
Net income | 130,919 | 130,919 | ||
Other comprehensive loss | (478) | (478) | ||
Ending Balance ( in shares) at Mar. 31, 2021 | 60,052 | |||
Ending Balance at Mar. 31, 2021 | 2,007,819 | $ 39,507 | (19,194) | 1,987,506 |
Beginning Balance (in shares) at Dec. 31, 2020 | 61,632 | |||
Beginning Balance at Dec. 31, 2020 | 2,401,590 | $ 386,236 | (17,855) | 2,033,209 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 44 | |||
Exercise of employee stock options | 1,492 | $ 1,492 | ||
Issuance of restricted stock (in shares) | 445 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (2,052) | |||
Repurchase of common stock | (400,000) | $ (311,056) | (88,944) | |
Adjustments To Additional Paid In Capital, Equity Forward Contract | (100,000) | $ (100,000) | ||
Cost of Issuance of Treasury Stock, Shares | (17) | |||
Taxes paid related to net share settlement of equity awards | (3,447) | $ (3,447) | ||
Stock-based compensation | 66,282 | $ 66,282 | ||
Net income | 43,241 | 43,241 | ||
Other comprehensive loss | (1,339) | (1,339) | ||
Ending Balance ( in shares) at Mar. 31, 2021 | 60,052 | |||
Ending Balance at Mar. 31, 2021 | $ 2,007,819 | $ 39,507 | (19,194) | 1,987,506 |
Beginning Balance (in shares) at Sep. 30, 2021 | 60,652 | 60,652 | ||
Beginning Balance at Sep. 30, 2021 | $ 2,360,213 | $ 192,458 | (20,073) | 2,187,828 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 96 | |||
Exercise of employee stock options | 2,303 | $ 2,303 | ||
Issuance of stock under employee stock purchase plan (in shares) | 169 | |||
Issuance of stock under employee stock purchase plan | 26,325 | $ 26,325 | ||
Issuance of restricted stock (in shares) | 775 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (1,148) | |||
Repurchase of common stock | (250,023) | $ (250,023) | ||
Cost of Issuance of Treasury Stock, Shares | (79) | |||
Taxes paid related to net share settlement of equity awards | (16,816) | $ (16,816) | ||
Stock-based compensation | 127,886 | $ 127,886 | ||
Net income | 149,795 | 149,795 | ||
Other comprehensive loss | $ (2,555) | (2,555) | ||
Ending Balance ( in shares) at Mar. 31, 2022 | 60,465 | 60,465 | ||
Ending Balance at Mar. 31, 2022 | $ 2,397,128 | $ 82,133 | (22,628) | 2,337,623 |
Beginning Balance (in shares) at Dec. 31, 2021 | 60,711 | |||
Beginning Balance at Dec. 31, 2021 | 2,405,361 | $ 145,189 | (21,215) | 2,281,387 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Exercise of employee stock options (in shares) | 46 | |||
Exercise of employee stock options | 1,048 | $ 1,048 | ||
Issuance of restricted stock (in shares) | 334 | |||
Issuance of restricted stock | 0 | |||
Repurchase of common stock (in shares) | (610) | |||
Repurchase of common stock | (125,012) | $ (125,012) | ||
Cost of Issuance of Treasury Stock, Shares | (16) | |||
Taxes paid related to net share settlement of equity awards | (3,222) | $ (3,222) | ||
Stock-based compensation | 64,130 | $ 64,130 | ||
Net income | 56,236 | 56,236 | ||
Other comprehensive loss | $ (1,413) | (1,413) | ||
Ending Balance ( in shares) at Mar. 31, 2022 | 60,465 | 60,465 | ||
Ending Balance at Mar. 31, 2022 | $ 2,397,128 | $ 82,133 | $ (22,628) | $ 2,337,623 |
Consolidated Statements Of Cash
Consolidated Statements Of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Operating activities | ||
Net income | $ 149,795 | $ 130,919 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 127,886 | 121,289 |
Depreciation and amortization | 59,798 | 56,185 |
Non-cash operating lease costs | 19,363 | 19,415 |
Deferred income taxes | (15,832) | (17,962) |
Impairment of assets | 6,175 | 40,698 |
Other | (439) | 105 |
Changes in operating assets and liabilities (excluding effects of the acquisition of businesses): | ||
Accounts receivable | (72,777) | (79,649) |
Inventories | (5,828) | 3,327 |
Other current assets | (60,896) | (32,939) |
Other assets | (27,893) | (29,066) |
Accounts payable and accrued liabilities | (35,649) | (14,529) |
Deferred revenue | 99,303 | 93,493 |
Lease liabilities | (26,131) | (25,447) |
Net cash provided by operating activities | 216,875 | 265,839 |
Investing activities | ||
Purchases of investments | (53,715) | (65,725) |
Maturities of investments | 96,349 | 126,711 |
Sales of investments | 78,988 | 269,986 |
Acquisition of businesses, net of cash acquired | (67,911) | (411,319) |
Purchases of property and equipment | (15,792) | (14,090) |
Net cash provided by (used in) investing activities | 37,919 | (94,437) |
Financing activities | ||
Proceeds from the exercise of stock options and purchases of stock under employee stock purchase plan | 28,628 | 28,687 |
Repurchase of common stock | (250,023) | (500,000) |
Payments on term debt agreement | (10,000) | (10,000) |
Taxes paid related to net share settlement of equity awards | (16,816) | (7,928) |
Net cash used in financing activities | (248,211) | (489,241) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 6,583 | (317,839) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (997) | 494 |
Cash, cash equivalents and restricted cash, beginning of period | 584,333 | 852,826 |
Cash, cash equivalents and restricted cash, end of period | 589,919 | 535,481 |
Supplemental disclosures of cash flow information | ||
Cash paid for amounts included in the measurement of operating lease liabilities | 30,346 | 30,809 |
Cash paid for interest on long-term debt | 2,383 | 2,724 |
Supplemental disclosures of non-cash activities | ||
Right-of-use assets obtained in exchange for lease obligations | $ 818 | $ 9,523 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Description of Business F5, Inc. (the "Company") is a leading provider of multi-cloud application security and delivery solutions 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. On October 1, 2021, the Company completed its acquisition of Threat Stack, Inc. ("Threat Stack"), a provider of cloud security and workload protection solutions. 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, 2021. There have been no changes to the Company's significant accounting policies as of and for the three and six months ended March 31, 2022, except for the accounting policy for investments, which has been updated to include equity investments. Investments The Company classifies its debt investments as available-for-sale. Debt investments, 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, credit allowances and impairments due to credit losses are included in other income (expense) in the Company’s consolidated income statements. Debt investments 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. Debt investments with maturities of greater than one year are classified as long-term investments. As an approximation to fair value, equity investments are measured using net asset value (“NAV”) and are classified as long-term investments. Unrealized and realized gains and losses are recorded in other income (expense) in the Company's consolidated income statements. Recently Adopted Accounting Standards |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 6 Months Ended |
Mar. 31, 2022 | |
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 six months ended March 31, 2022 and 2021 (in thousands): Six months ended 2022 2021 Balance, beginning of period $ 77,836 $ 70,396 Additional capitalized contract acquisition costs 18,530 18,614 Amortization of capitalized contract acquisition costs (19,092) (16,590) Balance, end of period $ 77,274 $ 72,420 Amortization of capitalized contract acquisition costs was $9.7 million and $8.4 million for the three months ended March 31, 2022 and 2021, respectively, and $19.1 million and $16.6 million for the six months ended March 31, 2022 and 2021, 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. Liabilities are recorded for amounts that the Company has the unconditional right to transfer goods and services under contracts with customers. These liabilities are classified as current and non-current deferred revenue. The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the six months ended March 31, 2022 and 2021 (in thousands): Six months ended 2022 2021 Balance, beginning of period $ 1,489,841 $ 1,272,632 Amounts added but not recognized as revenues 723,631 680,124 Deferred revenue acquired through acquisition of businesses 10,591 779 Revenues recognized related to the opening balance of deferred revenue (624,327) (586,632) Balance, end of period $ 1,599,736 $ 1,366,903 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 March 31, 2022, the total non-cancelable remaining performance obligations under the Company's contracts with customers was approximately $1.6 billion and the Company expects to recognize revenues on approximately 65.2% of these remaining performance obligations over the next 12 months, 21.4% 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 | 6 Months Ended |
Mar. 31, 2022 | |
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. Assets and Liabilities Measured and Recorded 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 March 31, 2022 and September 30, 2021, were as follows (in thousands): Gross Unrealized Classification on Balance Sheet As of March 31, 2022 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income Money Market Funds Level 1 $ 8,220 $ — $ — $ 8,220 $ 8,220 $ — $ — Certificates of deposit Level 2 991 — — 991 — 991 — Corporate bonds and notes Level 2 147,313 2 (1,063) 146,252 — 119,576 26,676 Municipal bonds and notes Level 2 18,779 — (143) 18,636 — 16,458 2,178 U.S. government securities Level 2 158,023 — (891) 157,132 — 154,313 2,819 U.S. government agency securities Level 2 11,068 — (77) 10,991 — 9,253 1,738 Total debt investments $ 344,394 $ 2 $ (2,174) $ 342,222 $ 8,220 $ 300,591 $ 33,411 Changes in fair value recorded in other net income (expense) Equity investments * $ 1,500 $ — $ — $ 1,500 Total equity investments 1,500 — — 1,500 Total investments $ 343,722 $ 8,220 $ 300,591 $ 34,911 * The fair value of this equity investment is measured at net asset value (NAV) which approximates fair value and is not classified within the fair value hierarchy . Gross Unrealized Classification on Balance Sheet As of September 30, 2021 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income Money Market Funds Level 1 $ 17,150 $ — $ — $ 17,150 $ 17,150 $ — $ — Certificates of deposit Level 2 255 — — 255 — 255 — Corporate bonds and notes Level 2 243,568 129 (86) 243,611 4,397 186,107 53,107 Municipal bonds and notes Level 2 24,684 2 (9) 24,677 — 13,566 11,111 U.S. government securities Level 2 162,221 14 (12) 162,223 — 102,615 59,608 U.S. government agency securities Level 2 36,053 — (14) 36,039 — 27,087 8,952 Total investments $ 483,931 $ 145 $ (121) $ 483,955 $ 21,547 $ 329,630 $ 132,778 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. Interest income from investments was not material for the three and six months ended March 31, 2022 and 2021, respectively. Interest income is included in other income (expense), net on the Company's consolidated income statements. Unrealized losses on investments held for a period greater than 12 months at March 31, 2022 and September 30, 2021 were not material. The Company invests in debt securities that are rated investment grade. The Company reviews the individual debt securities in its portfolio to determine whether a credit loss exists by comparing the extent to which the fair value is less than the amortized cost and considering any changes to ratings of a debt security by a ratings agency. The Company determined that as of March 31, 2022, there were no credit losses on any investments within its portfolio. Assets Measured and Recorded at Fair Value on a Non-Recurring Basis 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 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 tangible and intangible 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 potential impacts of the COVID-19 pandemic. As a result of a planned change in the use of the asset, the Company recorded an impairment of $6.2 million against the Shape trade name intangible asset, which was reflected in the Sales and Marketing line item on the Company's consolidated income statement in the first quarter of fiscal 2022. The Company did not recognize any impairment charges related to its intangible assets in the second quarter of fiscal 2022 and for the three and six months ended March 31, 2021. During the three months ended March 31, 2021, the Company recorded an impairment of $23.5 million against the operating lease right-of-use asset related to the permanent exit of six floors in its corporate headquarters. Impairment charges for the second quarter of fiscal 2021 also included $10.3 million for tenant improvements and other fixed assets associated with the permanently exited floors. In the first quarter of fiscal 2021, the Company recorded an impairment of $6.7 million against the operating lease right-of-use asset related to the integration of the former Shape headquarters in Santa Clara, California. Impairment charges for the first quarter of fiscal 2021 also included $0.2 million for other fixed assets associated with the Shape headquarters in Santa Clara, California. The Company calculated the fair value of the right-of-use assets, tenant improvements and other fixed assets based on estimated future discounted cash flows and classified the fair value as a Level 3 measurement due to the significance of unobservable inputs, which included the amount and timing of estimated sublease rental receipts that the Company could reasonably obtain over the remaining lease term and the discount rate. The impairment charges for the three and six months ended March 31, 2021 were allocated to various expense line items on the Company’s consolidated income statements based on the employee base that previously worked out of the exited space. Impairment charges were allocated to the following income statement line items for the three and six months ended March 31, 2022 and 2021 (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Cost of net product revenue $ — $ 897 $ — $ 2,865 Cost of net service revenue — 3,491 — 3,492 Sales and marketing — 10,256 6,175 11,515 Research and development — 9,845 — 12,974 General and administrative — 9,336 — 9,852 Total impairment charges $ — $ 33,825 $ 6,175 $ 40,698 During the three and six months ended March 31, 2022 and 2021, the Company did not recognize any impairment charges related to goodwill. |
Business Combinations
Business Combinations | 6 Months Ended |
Mar. 31, 2022 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Fiscal Year 2022 Acquisition of Threat Stack, Inc. In September 2021, the Company entered into a Merger Agreement (the “Threat Stack Merger Agreement”) with Threat Stack, Inc. ("Threat Stack"), a provider of cloud security and workload protection solutions. The transaction closed on October 1, 2021 with Threat Stack becoming a wholly-owned subsidiary of F5. The addition of Threat Stack’s cloud security capabilities to F5’s application and API protection solutions is expected to enhance visibility across application infrastructure and workloads to deliver more actionable security insights for customers. Pursuant to the Threat Stack Merger Agreement, at the effective time of the Merger, the capital stock of Threat Stack and the vested outstanding and unexercised stock options in Threat Stack were cancelled and converted to the right to receive approximately $68.9 million in cash, subject to certain adjustments and conditions set forth in the Threat Stack Merger Agreement. Transaction costs associated with the acquisition were not material. As a result of the acquisition, the Company acquired all the assets and assumed all the liabilities of Threat Stack. The goodwill related to the Threat Stack 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 Threat Stack acquisition is not expected to be deductible for tax purposes. The results of operations of Threat Stack 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 Deferred tax assets $ 13,366 Other net tangible assets acquired, at fair value 5,481 Cash, cash equivalents, and restricted cash 912 Identifiable intangible assets: Developed technology 11,400 5 years Customer relationships 4,400 5 years Goodwill 43,956 Total assets acquired $ 79,515 Liabilities assumed Deferred revenue $ (10,591) Total liabilities assumed $ (10,591) Net assets acquired $ 68,924 The initial allocation of the purchase price was based on preliminary valuations and assumptions and is subject to change within the measurement period. The Company expects to finalize the allocation of the purchase price as soon as practicable and no later than one year from the acquisition date. The developed technology intangible asset will be amortized on a straight-line basis over its estimated useful life of five years and included in cost of net product revenues. The customer relationships intangible asset will be amortized on a straight-line basis over its estimated useful life of five years and included in sales and marketing expenses. The weighted-average life of the amortizable intangible assets recognized from the Threat Stack acquisition was five years as of October 1, 2021, 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 Threat Stack acquisition was completed on October 1, 2021, the F5 and Threat Stack teams have been executing a plan to integrate ongoing operations. The pro forma financial information, as well as the revenue and earnings generated by Threat Stack, were not material to the Company's operations for the periods presented. Fiscal Year 2021 Acquisition of Volterra, Inc. On January 5, 2021, the Company entered into a Merger Agreement (the “Volterra Merger Agreement”) with Volterra, Inc. ("Volterra"), a provider of edge-as-a-service platform solutions. The transaction closed on January 22, 2021 with Volterra becoming a wholly-owned subsidiary of F5. With the addition of Volterra’s technology platform, F5 is creating an edge platform built for enterprises and service providers that will be security-first and app-driven with unlimited scale. Pursuant to the Volterra Merger Agreement, at the effective time of the Merger, the capital stock of Volterra and the vested outstanding and unexercised stock options in Volterra were cancelled and converted to the right to receive approximately $427.2 million in cash, subject to certain adjustments and conditions set forth in the Volterra Merger Agreement. The unvested stock options and restricted stock units in Volterra held by continuing employees of Volterra were assumed by F5, on the terms and conditions set forth in the Volterra Merger Agreement. The Company incurred $9.5 million of transaction costs associated with the acquisition, which was included in General and Administrative expenses in fiscal 2021. As a result of the acquisition, the Company acquired all the assets and assumed all the liabilities of Volterra. The goodwill related to the Volterra 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 Volterra acquisition is not expected to be deductible for tax purposes. The results of operations of Volterra 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 $ 14,012 Other tangible assets acquired, at fair value 7,499 Identifiable intangible assets: Developed technology 59,500 7 years Customer relationships 500 1 year Goodwill 350,863 Total assets acquired $ 432,374 Liabilities assumed $ (5,233) Net assets acquired $ 427,141 The measurement period for the Volterra acquisition lapsed during the second quarter of fiscal 2022. The Company recorded immaterial adjustments to consideration exchanged for the purchase of Volterra within the post-close measurement period. The developed technology intangible asset is being amortized on a straight-line basis over its estimated useful life of seven years and included in cost of net product revenues. The customer relationships intangible asset is being amortized on a straight-line basis over its estimated useful life of one year and included in sales and marketing expenses. The weighted-average life of the amortizable intangible assets recognized from the Volterra acquisition was 6.95 years as of January 22, 2021, 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. The pro forma financial information, as well as the revenue and earnings generated by Volterra, were not material to the Company's operations for the periods presented. |
Balance Sheet Details
Balance Sheet Details | 6 Months Ended |
Mar. 31, 2022 | |
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): March 31, September 30, Cash and cash equivalents $ 586,543 $ 580,977 Restricted cash included in other assets, net 3,376 3,356 Total cash, cash equivalents and restricted cash $ 589,919 $ 584,333 Inventories Inventories consist of the following (in thousands): March 31, September 30, Finished goods $ 11,282 $ 13,081 Raw materials 16,601 8,974 $ 27,883 $ 22,055 Other Current Assets Other current assets consist of the following (in thousands): March 31, September 30, Unbilled receivables $ 251,148 $ 215,396 Prepaid expenses 96,227 59,636 Capitalized contract acquisition costs 34,320 34,265 Other 23,901 28,605 $ 405,596 $ 337,902 Other Assets Other assets, net consist of the following (in thousands): March 31, September 30, Intangible assets $ 224,523 $ 237,178 Unbilled receivables 176,880 158,885 Capitalized contract acquisition costs 42,954 43,571 Other 38,448 32,924 $ 482,805 $ 472,558 Accrued Liabilities Accrued liabilities consist of the following (in thousands): March 31, September 30, Payroll and benefits $ 162,530 $ 179,147 Operating lease liabilities, current 45,990 49,286 Income and other tax accruals 33,581 44,075 Other 59,105 68,979 $ 301,206 $ 341,487 Other Long-term Liabilities Other long-term liabilities consist of the following (in thousands): March 31, September 30, Income taxes payable $ 61,862 $ 66,081 Other 9,555 9,155 $ 71,417 $ 75,236 |
Debt Facilities
Debt Facilities | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022, 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 March 31, 2022, the Company was in compliance with all covenants. As of March 31, 2022, $360.0 million of principal amount under the Term Loan Facility was outstanding, excluding unamortized debt issuance costs of $0.6 million. The outstanding principal amount was included in current liabilities on the Company's balance sheet as of March 31, 2022. The weighted average interest rate on the principal amount under the Term Loan Facility outstanding balance was 1.282% for the three and six months ended March 31, 2022. The weighted average interest rate on the principal amount under the Term Loan Facility outstanding balance was 1.390% for the three and six months ended March 31, 2021. The following table presents the scheduled principal maturities as of March 31, 2022 (in thousands): Fiscal Years Ending September 30: Amount 2022 (remainder) $ 10,000 2023 350,000 Total $ 360,000 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 and six months ended March 31, 2022 were not material. |
Leases
Leases | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | Leases 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 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 and six months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Operating lease expense $ 11,870 $ 12,158 $ 23,784 $ 24,339 Short-term lease expense 619 575 1,175 1,561 Variable lease expense 6,034 5,310 12,278 12,336 Total lease expense $ 18,523 $ 18,043 $ 37,237 $ 38,236 Variable lease expense primarily consists of common area maintenance, real estate taxes and parking expenses. Supplemental balance sheet information related to the Company's operating leases was as follows (in thousands, except lease term and discount rate): March 31, September 30, 2021 Operating lease right-of-use assets, net $ 227,576 $ 244,934 Operating lease liabilities, current 1 45,990 49,286 Operating lease liabilities, long-term 276,416 296,945 Total operating lease liabilities $ 322,406 $ 346,231 Weighted average remaining lease term (in years) 9.6 9.7 Weighted average discount rate 2.64 % 2.60 % (1) Current portion of operating lease liabilities is included in accrued liabilities on the Company's consolidated balance sheets. As of March 31, 2022, 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 2022 (remainder) $ 27,868 2023 50,028 2024 41,469 2025 33,568 2026 26,550 2027 26,194 Thereafter 164,883 Total lease payments 370,560 Less: imputed interest (48,154) Total lease liabilities $ 322,406 Operating lease liabilities above do not include sublease income. As of March 31, 2022, the Company expects to receive sublease income of approximately $16.0 million, which consists of $3.6 million to be received for the remainder of fiscal 2022 and $12.4 million to be received over the three fiscal years thereafter. In the second quarter of fiscal 2021, the Company recorded an impairment of $23.5 million against the operating lease right-of-use asset related to the permanent exit of six floors in its corporate headquarters. 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. There were no impairments against right-of-use assets for the three and six months ended March 31, 2022. As of March 31, 2022, the Company had no significant operating leases that were executed but not yet commenced. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and September 30, 2021 were not material. Commitments As of March 31, 2022, the Company's principal commitments consisted of borrowings under the Term Loan Facility and obligations outstanding under operating leases. Refer to Note 6 for the scheduled principal maturities of the Term Loan Facility as of March 31, 2022. 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. Legal Proceedings Lynwood Investment CY Limited v. F5 Networks et al. 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. In August and October 2020, the Company and the other defendants filed motions to dismiss all claims asserted against them in the lawsuit. While these motions were pending, the Court ordered Lynwood to select ten of its twenty-six claims to litigate through trial while the remaining sixteen claims would be stayed pending resolution of the ten selected claims. On March 25 and 30, 2021, the Court dismissed the ten selected claims and granted Lynwood leave to cure the deficiencies in its complaint though it expressed doubt about Lynwood’s ability to do so. The Court further ruled that Lynwood may not add new causes of action or add new parties without stipulation or leave of court, and that unless Lynwood corrects “all the defects” identified in the Court’s orders and the Company’s and other defendants’ motions to dismiss, the Court will dismiss the ten claims with prejudice. On April 6, 2021, the Court referred the parties to private mediation to be completed by June 1, 2021. Pursuant to the Court’s order, the parties held a private mediation on May 27, 2021. The matter did not resolve. On April 29, 2021, Lynwood filed its amended complaint, seeking the same relief against the Company and other defendants. On May 27, 2021, the Company and other defendants filed a consolidated motion to dismiss the claims Lynwood had selected to proceed to litigate through trial, reserving their right to move to dismiss the 16 stayed claims once the Court lifts the stay. The motion to dismiss was set to be heard by the Court on October 14, 2021, but on October 11, 2021, the Court vacated the hearing and gave notice that it will decide the motion on the papers without oral argument. The Company’s motion to dismiss the amended complaint remains pending. This case was reassigned to a new judge who has yet to indicate when she will issue a ruling on the Company’s motion. In addition to the above matters, 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 | 6 Months Ended |
Mar. 31, 2022 | |
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 22.7% and 18.8% for the three and six months ended March 31, 2022, respectively, compared to 17.0% and 22.6% for the three and six months ended March 31, 2021, respectively. The change in the effective tax rate for the three and six months ended March 31, 2022 as compared to the three and six months ended March 31, 2021 is primarily due to the tax impact of stock-based compensation. At March 31, 2022, the Company had $66.2 million of unrecognized tax benefits that, if recognized, would affect the effective tax rate. It is anticipated that the Company’s existing liabilities for unrecognized tax benefits will change within the next twelve months due to audit settlements or the expiration of statutes of limitations. The Company does not expect these changes to be material to the consolidated financial statements. The Company recognizes interest and, if applicable, penalties for any uncertain tax positions as a component of income tax expense. The Company and its subsidiaries are subject to U.S. federal income tax as well as the income tax of multiple state and foreign jurisdictions. The Company has concluded all U.S. federal income tax matters for fiscal years through September 30, 2017. Major jurisdictions where there are wholly owned subsidiaries of F5, Inc. which require income tax filings include the United Kingdom, Singapore, and Israel. The earliest periods open for review by local taxing authorities are fiscal years 2020 for the United Kingdom, 2017 for Singapore, and 2013 for Israel. The Company is currently under audit by various states for fiscal years 2016 through 2020, and by various foreign jurisdictions including Israel for fiscal years 2013 to 2018, Saudi Arabia for fiscal years 2015 to 2020, and India for fiscal years 2019 to 2020. Within the next four fiscal quarters, the statute of limitations will begin to close on the fiscal year 2018 federal income tax return, fiscal years 2017 and 2018 state income tax returns, and fiscal years 2015 to 2020 foreign income tax returns. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Stockholders' Equity Note Disclosure | Shareholders' Equity Common Stock Repurchase On October 31, 2018, the Company announced that its Board of Directors authorized an additional $1.0 billion for its common stock share repurchase program. This authorization is incremental to the existing $4.4 billion program, initially approved in October 2010 and expanded in subsequent fiscal years. Acquisitions for the share repurchase programs will be made from time to time in private transactions, accelerated share repurchase programs, or open market purchases as permitted by securities laws and other legal requirements. The programs can be terminated at any time. 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. The ASR agreements were accounted for as two separate transactions (1) a repurchase of common stock and (2) an equity-linked contract on the Company's own stock. Upon execution of the ASR agreements, the Company received an initial delivery of 2.1 million shares for an aggregate price of $400 million, based on the market price of $194.91 per share of Company's common stock on the date of the transaction. The initial shares received by the Company were retired immediately upon receipt. The equity-linked contract for the remaining $100 million, representing remaining shares to be delivered by the financial institutions under the ASR agreements, was recorded to common stock as of March 31, 2021 and was settled in the third quarter of fiscal 2021. The shares received by the Company were retired, accounted for as a reduction to stockholder’s equity in the Consolidated Balance Sheets, and treated as a repurchase of common stock for purposes of calculating earnings per share. The Company was not required to make any additional cash payments or delivery of common stock to the financial institutions upon settlement of the agreements. The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program, including the ASR (in thousands, except per share data): Three months ended Six months ended 2022 2021 2022 2021 Shares repurchased 610 2,052 1,148 2,052 Average price per share $ 204.96 $ 194.91 $ 217.71 $ 194.91 Amount repurchased $ 125,012 $ 400,000 $ 250,023 $ 400,000 As of March 31, 2022, the Company had $522 million remaining authorized to purchase shares under its share repurchase program. |
Net Income Per Share
Net Income Per Share | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended 2022 2021 2022 2021 Numerator Net income $ 56,236 $ 43,241 $ 149,795 $ 130,919 Denominator Weighted average shares outstanding — basic 60,573 60,667 60,693 61,058 Dilutive effect of common shares from stock options and restricted stock units 832 1,491 968 1,234 Weighted average shares outstanding — diluted 61,405 62,158 61,661 62,292 Basic net income per share $ 0.93 $ 0.71 $ 2.47 $ 2.14 Diluted net income per share $ 0.92 $ 0.70 $ 2.43 $ 2.10 Anti-dilutive stock-based awards excluded from the calculations of diluted earnings per share were not material for the three and six months ended March 31, 2022 and 2021. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2022 | |
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 security and delivery services across multi-cloud environments. 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 Six months ended 2022 2021 2022 2021 Americas: United States $ 339,231 $ 323,402 $ 720,520 $ 643,745 Other 19,324 22,650 41,026 45,443 Total Americas 358,555 346,052 761,546 689,188 EMEA 156,374 172,222 318,435 334,306 Asia Pacific 119,295 127,013 241,343 246,410 $ 634,224 $ 645,287 $ 1,321,324 $ 1,269,904 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 Six months ended 2022 2021 2022 2021 Net product revenues Systems revenue $ 145,975 $ 200,950 $ 326,132 $ 379,521 Software revenue 151,543 108,239 314,535 217,713 Total net product revenue $ 297,518 $ 309,189 $ 640,667 $ 597,234 The following distributors of the Company's products accounted for more than 10% of total net revenue: Three months ended Six months ended 2022 2021 2022 2021 Ingram Micro, Inc. 20.3 % 17.7 % 19.5 % 17.9 % Synnex Corporation 14.3 % 11.5 % 13.2 % 10.7 % The Company tracks assets by physical location. Long-lived assets consist of property and equipment, net, and are shown below (in thousands): March 31, September 30, United States $ 141,523 $ 153,030 EMEA 20,575 20,526 Other countries 16,644 17,608 $ 178,742 $ 191,164 |
Restructuring Charges
Restructuring Charges | 6 Months Ended |
Mar. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring Charges | Restructuring Charges In the first quarter of fiscal 2022, 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 70 positions. The Company recorded a restructuring charge of $7.9 million in the first quarter of fiscal 2022. The Company does not expect to record any significant future charges related to the restructuring plan. During the six months ended March 31, 2022, the following activity was recorded (in thousands): Employee Severance, Benefits and Related Costs Accrued expenses, October 1, 2021 $ — Restructuring charges 7,909 Cash payments (6,644) Accrued expenses, March 31, 2022 $ 1,265 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Mar. 31, 2022 | |
Accounting Policies [Abstract] | |
Description of Business | Description of Business F5, Inc. (the "Company") is a leading provider of multi-cloud application security and delivery solutions 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. On October 1, 2021, the Company completed its acquisition of Threat Stack, Inc. ("Threat Stack"), a provider of cloud security and workload protection solutions. |
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, 2021. |
Recent Accounting Pronouncements | There have been no changes to the Company's significant accounting policies as of and for the three and six months ended March 31, 2022, except for the accounting policy for investments, which has been updated to include equity investments. Investments The Company classifies its debt investments as available-for-sale. Debt investments, 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, credit allowances and impairments due to credit losses are included in other income (expense) in the Company’s consolidated income statements. Debt investments 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. Debt investments with maturities of greater than one year are classified as long-term investments. As an approximation to fair value, equity investments are measured using net asset value (“NAV”) and are classified as long-term investments. Unrealized and realized gains and losses are recorded in other income (expense) in the Company's consolidated income statements. Recently Adopted Accounting Standards |
Revenue from Contracts with C_2
Revenue from Contracts with Customers (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 six months ended March 31, 2022 and 2021 (in thousands): Six months ended 2022 2021 Balance, beginning of period $ 77,836 $ 70,396 Additional capitalized contract acquisition costs 18,530 18,614 Amortization of capitalized contract acquisition costs (19,092) (16,590) Balance, end of period $ 77,274 $ 72,420 |
Contract with Customer, Asset and Liability | The table below shows significant movements in the deferred revenue balances (current and noncurrent) for the six months ended March 31, 2022 and 2021 (in thousands): Six months ended 2022 2021 Balance, beginning of period $ 1,489,841 $ 1,272,632 Amounts added but not recognized as revenues 723,631 680,124 Deferred revenue acquired through acquisition of businesses 10,591 779 Revenues recognized related to the opening balance of deferred revenue (624,327) (586,632) Balance, end of period $ 1,599,736 $ 1,366,903 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 March 31, 2022 and September 30, 2021, were as follows (in thousands): Gross Unrealized Classification on Balance Sheet As of March 31, 2022 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income Money Market Funds Level 1 $ 8,220 $ — $ — $ 8,220 $ 8,220 $ — $ — Certificates of deposit Level 2 991 — — 991 — 991 — Corporate bonds and notes Level 2 147,313 2 (1,063) 146,252 — 119,576 26,676 Municipal bonds and notes Level 2 18,779 — (143) 18,636 — 16,458 2,178 U.S. government securities Level 2 158,023 — (891) 157,132 — 154,313 2,819 U.S. government agency securities Level 2 11,068 — (77) 10,991 — 9,253 1,738 Total debt investments $ 344,394 $ 2 $ (2,174) $ 342,222 $ 8,220 $ 300,591 $ 33,411 Changes in fair value recorded in other net income (expense) Equity investments * $ 1,500 $ — $ — $ 1,500 Total equity investments 1,500 — — 1,500 Total investments $ 343,722 $ 8,220 $ 300,591 $ 34,911 * The fair value of this equity investment is measured at net asset value (NAV) which approximates fair value and is not classified within the fair value hierarchy . Gross Unrealized Classification on Balance Sheet As of September 30, 2021 Fair Value Level Cost or Amortized Cost Gains Losses Aggregate Cash and Cash Equivalents Short-Term Investments Long-Term Investments Changes in fair value recorded in other comprehensive income Money Market Funds Level 1 $ 17,150 $ — $ — $ 17,150 $ 17,150 $ — $ — Certificates of deposit Level 2 255 — — 255 — 255 — Corporate bonds and notes Level 2 243,568 129 (86) 243,611 4,397 186,107 53,107 Municipal bonds and notes Level 2 24,684 2 (9) 24,677 — 13,566 11,111 U.S. government securities Level 2 162,221 14 (12) 162,223 — 102,615 59,608 U.S. government agency securities Level 2 36,053 — (14) 36,039 — 27,087 8,952 Total investments $ 483,931 $ 145 $ (121) $ 483,955 $ 21,547 $ 329,630 $ 132,778 |
Property, Plant and Equipment | Impairment charges were allocated to the following income statement line items for the three and six months ended March 31, 2022 and 2021 (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Cost of net product revenue $ — $ 897 $ — $ 2,865 Cost of net service revenue — 3,491 — 3,492 Sales and marketing — 10,256 6,175 11,515 Research and development — 9,845 — 12,974 General and administrative — 9,336 — 9,852 Total impairment charges $ — $ 33,825 $ 6,175 $ 40,698 |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Deferred tax assets $ 13,366 Other net tangible assets acquired, at fair value 5,481 Cash, cash equivalents, and restricted cash 912 Identifiable intangible assets: Developed technology 11,400 5 years Customer relationships 4,400 5 years Goodwill 43,956 Total assets acquired $ 79,515 Liabilities assumed Deferred revenue $ (10,591) Total liabilities assumed $ (10,591) Net assets acquired $ 68,924 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 $ 14,012 Other tangible assets acquired, at fair value 7,499 Identifiable intangible assets: Developed technology 59,500 7 years Customer relationships 500 1 year Goodwill 350,863 Total assets acquired $ 432,374 Liabilities assumed $ (5,233) Net assets acquired $ 427,141 |
Balance Sheet Details (Tables)
Balance Sheet Details (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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): March 31, September 30, Cash and cash equivalents $ 586,543 $ 580,977 Restricted cash included in other assets, net 3,376 3,356 Total cash, cash equivalents and restricted cash $ 589,919 $ 584,333 |
Inventories | Inventories consist of the following (in thousands): March 31, September 30, Finished goods $ 11,282 $ 13,081 Raw materials 16,601 8,974 $ 27,883 $ 22,055 |
Other Current Assets | Other current assets consist of the following (in thousands): March 31, September 30, Unbilled receivables $ 251,148 $ 215,396 Prepaid expenses 96,227 59,636 Capitalized contract acquisition costs 34,320 34,265 Other 23,901 28,605 $ 405,596 $ 337,902 |
Other Assets, Noncurrent | Other assets, net consist of the following (in thousands): March 31, September 30, Intangible assets $ 224,523 $ 237,178 Unbilled receivables 176,880 158,885 Capitalized contract acquisition costs 42,954 43,571 Other 38,448 32,924 $ 482,805 $ 472,558 |
Accrued Liabilities | Accrued liabilities consist of the following (in thousands): March 31, September 30, Payroll and benefits $ 162,530 $ 179,147 Operating lease liabilities, current 45,990 49,286 Income and other tax accruals 33,581 44,075 Other 59,105 68,979 $ 301,206 $ 341,487 |
Noncurrent Liabilities | Other long-term liabilities consist of the following (in thousands): March 31, September 30, Income taxes payable $ 61,862 $ 66,081 Other 9,555 9,155 $ 71,417 $ 75,236 |
Debt Facilities (Tables)
Debt Facilities (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table presents the scheduled principal maturities as of March 31, 2022 (in thousands): Fiscal Years Ending September 30: Amount 2022 (remainder) $ 10,000 2023 350,000 Total $ 360,000 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Lease, Cost | The components of the Company's operating lease expenses for the three and six months ended March 31, 2022 and 2021 were as follows (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Operating lease expense $ 11,870 $ 12,158 $ 23,784 $ 24,339 Short-term lease expense 619 575 1,175 1,561 Variable lease expense 6,034 5,310 12,278 12,336 Total lease expense $ 18,523 $ 18,043 $ 37,237 $ 38,236 |
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): March 31, September 30, 2021 Operating lease right-of-use assets, net $ 227,576 $ 244,934 Operating lease liabilities, current 1 45,990 49,286 Operating lease liabilities, long-term 276,416 296,945 Total operating lease liabilities $ 322,406 $ 346,231 Weighted average remaining lease term (in years) 9.6 9.7 Weighted average discount rate 2.64 % 2.60 % (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 March 31, 2022, 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 2022 (remainder) $ 27,868 2023 50,028 2024 41,469 2025 33,568 2026 26,550 2027 26,194 Thereafter 164,883 Total lease payments 370,560 Less: imputed interest (48,154) Total lease liabilities $ 322,406 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes the Company's repurchases and retirements of its common stock under its Stock Repurchase Program, including the ASR (in thousands, except per share data): Three months ended Six months ended 2022 2021 2022 2021 Shares repurchased 610 2,052 1,148 2,052 Average price per share $ 204.96 $ 194.91 $ 217.71 $ 194.91 Amount repurchased $ 125,012 $ 400,000 $ 250,023 $ 400,000 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
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 Six months ended 2022 2021 2022 2021 Numerator Net income $ 56,236 $ 43,241 $ 149,795 $ 130,919 Denominator Weighted average shares outstanding — basic 60,573 60,667 60,693 61,058 Dilutive effect of common shares from stock options and restricted stock units 832 1,491 968 1,234 Weighted average shares outstanding — diluted 61,405 62,158 61,661 62,292 Basic net income per share $ 0.93 $ 0.71 $ 2.47 $ 2.14 Diluted net income per share $ 0.92 $ 0.70 $ 2.43 $ 2.10 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographic Region | The following presents revenues by geographic region (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Americas: United States $ 339,231 $ 323,402 $ 720,520 $ 643,745 Other 19,324 22,650 41,026 45,443 Total Americas 358,555 346,052 761,546 689,188 EMEA 156,374 172,222 318,435 334,306 Asia Pacific 119,295 127,013 241,343 246,410 $ 634,224 $ 645,287 $ 1,321,324 $ 1,269,904 |
Schedule of Segment Reporting Information, by Segment | The following presents net product revenues by systems and software (in thousands): Three months ended Six months ended 2022 2021 2022 2021 Net product revenues Systems revenue $ 145,975 $ 200,950 $ 326,132 $ 379,521 Software revenue 151,543 108,239 314,535 217,713 Total net product revenue $ 297,518 $ 309,189 $ 640,667 $ 597,234 |
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 Six months ended 2022 2021 2022 2021 Ingram Micro, Inc. 20.3 % 17.7 % 19.5 % 17.9 % Synnex Corporation 14.3 % 11.5 % 13.2 % 10.7 % |
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): March 31, September 30, United States $ 141,523 $ 153,030 EMEA 20,575 20,526 Other countries 16,644 17,608 $ 178,742 $ 191,164 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 6 Months Ended |
Mar. 31, 2022 | |
Restructuring Charges [Abstract] | |
Restructuring and Related Costs | During the six months ended March 31, 2022, the following activity was recorded (in thousands): Employee Severance, Benefits and Related Costs Accrued expenses, October 1, 2021 $ — Restructuring charges 7,909 Cash payments (6,644) Accrued expenses, March 31, 2022 $ 1,265 |
Revenue from Contracts with C_3
Revenue from Contracts with Customers - Capitalized contract acquisition costs (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Changes In Capitalized Contract Cost [Roll Forward] | ||||
Beginning Balance | $ 77,836 | $ 70,396 | ||
Additional capitalized contract acquisition costs | 18,530 | 18,614 | ||
Amortization of capitalized contract acquisition costs | $ (9,700) | $ (8,400) | (19,092) | (16,590) |
Ending Balance | $ 77,274 | $ 72,420 | $ 77,274 | $ 72,420 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers - Contract Assets and Liabilities (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning Balance | $ 1,489,841 | $ 1,272,632 |
Amounts added but not recognized as revenues | 723,631 | 680,124 |
Deferred revenue acquired through acquisition of businesses | 10,591 | 779 |
Revenues recognized related to the opening balance of deferred revenue | (624,327) | (586,632) |
Ending Balance | $ 1,599,736 | $ 1,366,903 |
Revenue from Contracts with C_5
Revenue from Contracts with Customers - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||||
Amortization of capitalized contract acquisition costs | $ 9,700,000 | $ 8,400,000 | $ 19,092,000 | $ 16,590,000 |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 |
Revenue from Contracts with C_6
Revenue from Contracts with Customers - Remaining Performance Obligations (Details) $ in Billions | Mar. 31, 2022USD ($) |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, amount | $ 1.6 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 65.20% |
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]: 2023-04-01 | |
Revenue from Contract with Customer [Abstract] | |
Revenue, remaining performance obligation, percentage | 21.40% |
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) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | $ 8,220 | $ 21,547 |
Cost or amortized cost | 344,394 | 483,931 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 145 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (2,174) | (121) |
Fair value | 342,222 | 483,955 |
Debt Securities, Available-for-sale, Current | 300,591 | 329,630 |
Debt Securities, Available-for-sale, Noncurrent | 33,411 | 132,778 |
Equity Securities, FV-NI | 1,500 | |
Equity Securities, FV-NI, Current | 0 | |
Equity Securities, FV-NI, Noncurrent | 1,500 | |
Available-for-sale Securities | 343,722 | |
Available-for-sale Securities, Current | 300,591 | 329,630 |
Long-term investments | 34,911 | 132,778 |
Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 991 | 255 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | 0 | 0 |
Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 147,313 | 243,568 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 2 | 129 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (1,063) | (86) |
Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 18,779 | 24,684 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 2 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (143) | (9) |
U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 158,023 | 162,221 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 14 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (891) | (12) |
U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cost or amortized cost | 11,068 | 36,053 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Gain, before Tax | 0 | 0 |
Debt Securities, Available-for-sale, Accumulated Gross Unrealized Loss, before Tax | (77) | (14) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 17,150 | |
Fair Value, Recurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Equity Securities, FV-NI | 1,500 | |
Equity Securities, FV-NI, Current | 0 | |
Equity Securities, FV-NI, Noncurrent | 1,500 | |
Fair Value, Recurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 8,220 | 17,150 |
Fair Value, Recurring | Level 2 | Certificates of Deposit | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 991 | 255 |
Debt Securities, Available-for-sale, Current | 991 | 255 |
Debt Securities, Available-for-sale, Noncurrent | 0 | 0 |
Fair Value, Recurring | Level 2 | Corporate Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Cash equivalents, fair value | 0 | 4,397 |
Fair value | 146,252 | 243,611 |
Debt Securities, Available-for-sale, Current | 119,576 | 186,107 |
Debt Securities, Available-for-sale, Noncurrent | 26,676 | 53,107 |
Fair Value, Recurring | Level 2 | Municipal Bonds and Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 18,636 | 24,677 |
Debt Securities, Available-for-sale, Current | 16,458 | 13,566 |
Debt Securities, Available-for-sale, Noncurrent | 2,178 | 11,111 |
Fair Value, Recurring | Level 2 | U.S. Government Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 157,132 | 162,223 |
Debt Securities, Available-for-sale, Current | 154,313 | 102,615 |
Debt Securities, Available-for-sale, Noncurrent | 2,819 | 59,608 |
Fair Value, Recurring | Level 2 | U.S. Government Agency Securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis, Valuation Techniques [Line Items] | ||
Fair value | 10,991 | 36,039 |
Debt Securities, Available-for-sale, Current | 9,253 | 27,087 |
Debt Securities, Available-for-sale, Noncurrent | $ 1,738 | $ 8,952 |
Fair Value Measurements - Sch_2
Fair Value Measurements - Schedule of Impairment Charges by Income Statement Line Item (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | $ 0 | $ 33,825 | $ 6,175 | $ 40,698 |
Cost of net product revenue | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 0 | 897 | 0 | 2,865 |
Cost of net service revenue | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 0 | 3,491 | 0 | 3,492 |
Selling and Marketing Expense | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 0 | 10,256 | 6,175 | 11,515 |
Research and Development Expense | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | 0 | 9,845 | 0 | 12,974 |
General and Administrative Expense | ||||
Property, Plant and Equipment [Line Items] | ||||
Impairment of assets | $ 0 | $ 9,336 | $ 0 | $ 9,852 |
Fair Value Measurements Narrati
Fair Value Measurements Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022 | Dec. 31, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2022 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Operating Lease, Impairment Loss | $ 23.5 | $ 6.7 | |||
Fair Value, Nonrecurring | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 6.2 | ||||
Fair Value, Nonrecurring | Level 3 | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Operating Lease, Impairment Loss | $ 23.5 | $ 6.7 | |||
Tangible Asset Impairment Charges | $ 10.3 | $ 0.2 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) - USD ($) $ in Millions | Oct. 01, 2021 | Jan. 22, 2021 | Sep. 30, 2021 |
Threat Stack, Inc | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 68.9 | ||
Identifiable intangible assets useful life | 5 years | ||
Volterra, Inc. | |||
Business Acquisition [Line Items] | |||
Total purchase price | $ 427.2 | ||
Identifiable intangible assets useful life | 6 years 11 months 12 days | ||
Volterra, Inc. | General and Administrative Expense | |||
Business Acquisition [Line Items] | |||
Business combination, acquisition related costs | $ 9.5 | ||
Developed Technology Rights | Threat Stack, Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 5 years | ||
Developed Technology Rights | Volterra, Inc. | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 7 years | ||
Customer Relationships | Threat Stack, Inc | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 5 years | ||
Customer Relationships | Volterra, Inc. | |||
Business Acquisition [Line Items] | |||
Identifiable intangible assets useful life | 1 year |
Business Combinations - Purchas
Business Combinations - Purchase Price Allocation (Details) - USD ($) $ in Thousands | Oct. 01, 2021 | Jan. 22, 2021 | Mar. 31, 2022 | Sep. 30, 2021 |
Assets Acquired | ||||
Goodwill | $ 2,259,951 | $ 2,216,553 | ||
Threat Stack, Inc | ||||
Assets Acquired | ||||
Cash, cash equivalents, and restricted cash | $ 912 | |||
Deferred tax assets | 13,366 | |||
Other tangible assets acquired, at fair value | $ 5,481 | |||
Identifiable intangible assets useful life | 5 years | |||
Goodwill | $ 43,956 | |||
Total assets acquired | 79,515 | |||
Liabilities assumed | ||||
Deferred revenue | (10,591) | |||
Total liabilities assumed | (10,591) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 68,924 | |||
Threat Stack, Inc | Developed Technology Rights | ||||
Assets Acquired | ||||
Identifiable intangible assets: | $ 11,400 | |||
Identifiable intangible assets useful life | 5 years | |||
Threat Stack, Inc | Customer Relationships | ||||
Assets Acquired | ||||
Identifiable intangible assets: | $ 4,400 | |||
Identifiable intangible assets useful life | 5 years | |||
Volterra, Inc. | ||||
Assets Acquired | ||||
Cash, cash equivalents, and restricted cash | $ 14,012 | |||
Other tangible assets acquired, at fair value | $ 7,499 | |||
Identifiable intangible assets useful life | 6 years 11 months 12 days | |||
Goodwill | $ 350,863 | |||
Total assets acquired | 432,374 | |||
Liabilities assumed | ||||
Total liabilities assumed | (5,233) | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net, Total | 427,141 | |||
Volterra, Inc. | Developed Technology Rights | ||||
Assets Acquired | ||||
Identifiable intangible assets: | $ 59,500 | |||
Identifiable intangible assets useful life | 7 years | |||
Volterra, Inc. | Customer Relationships | ||||
Assets Acquired | ||||
Identifiable intangible assets: | $ 500 | |||
Identifiable intangible assets useful life | 1 year |
Balance Sheet Details - Cash an
Balance Sheet Details - Cash and Cash Equivalent (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 | Mar. 31, 2021 | Sep. 30, 2020 |
Balance Sheet Details [Abstract] | ||||
Cash and cash equivalents | $ 586,543 | $ 580,977 | ||
Restricted cash included in other assets, net | 3,376 | 3,356 | ||
Total cash, cash equivalents and restricted cash | $ 589,919 | $ 584,333 | $ 535,481 | $ 852,826 |
Balance Sheet Details - Invento
Balance Sheet Details - Inventories (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Balance Sheet Details [Abstract] | ||
Finished goods | $ 11,282 | $ 13,081 |
Raw materials | 16,601 | 8,974 |
Inventories | $ 27,883 | $ 22,055 |
Balance Sheet Details - Other C
Balance Sheet Details - Other Current Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Balance Sheet Details [Abstract] | ||
Unbilled receivables | $ 251,148 | $ 215,396 |
Prepaid expenses | 96,227 | 59,636 |
Capitalized contract acquisition costs | 34,320 | 34,265 |
Other | 23,901 | 28,605 |
Other Assets, Current | $ 405,596 | $ 337,902 |
Balance Sheet Details - Other A
Balance Sheet Details - Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Balance Sheet Details [Abstract] | ||
Intangible assets | $ 224,523 | $ 237,178 |
Unbilled receivables | 176,880 | 158,885 |
Capitalized contract acquisition costs | 42,954 | 43,571 |
Other | 38,448 | 32,924 |
Other Assets, Noncurrent | $ 482,805 | $ 472,558 |
Balance Sheet Details - Accrued
Balance Sheet Details - Accrued Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Balance Sheet Details [Abstract] | ||
Payroll and benefits | $ 162,530 | $ 179,147 |
Operating lease liabilities, current | 45,990 | 49,286 |
Income and other tax accruals | 33,581 | 44,075 |
Other | 59,105 | 68,979 |
Accrued Liabilities, Current | $ 301,206 | $ 341,487 |
Balance Sheet Details - Other L
Balance Sheet Details - Other Long-term Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Balance Sheet Details [Abstract] | ||
Income taxes payable | $ 61,862 | $ 66,081 |
Other | 9,555 | 9,155 |
Other long-term liabilities | $ 71,417 | $ 75,236 |
Debt Facilities - Narrative (De
Debt Facilities - Narrative (Details) | Jan. 31, 2020USD ($) | Jan. 24, 2020USD ($) | Mar. 31, 2022USD ($) | Mar. 31, 2021 | Mar. 31, 2022USD ($)extension | Mar. 31, 2021 |
Term Loan Facility | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 400,000,000 | |||||
Debt issuance costs | $ 2,200,000 | $ 600,000 | $ 600,000 | |||
Redemption percentage | 1.25% | |||||
Long-term line of credit | $ 360,000,000 | $ 360,000,000 | ||||
Line of Credit Facility, Interest Rate During Period | 1.282% | 1.39% | 1.282% | 1.39% | ||
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 | $ 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 | $ 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 - Schedule of D
Debt Facilities - Schedule of Debt Maturities (Details) - Term Loan Facility $ in Thousands | Mar. 31, 2022USD ($) |
Debt Instrument [Line Items] | |
2022 (remainder) | $ 10,000 |
2023 | 350,000 |
Total | $ 360,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022USD ($)ft² | Mar. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Mar. 31, 2022USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Sublease Income | $ 16 | |||
Sublease income payment remainder of fiscal year | $ 3.6 | 3.6 | ||
Payment to be received between year two through four | $ 12.4 | $ 12.4 | ||
Operating Lease, Impairment Loss | $ 23.5 | $ 6.7 | ||
Office Building | ||||
Lessee, Lease, Description [Line Items] | ||||
Operating lease, number of square feet | ft² | 515 |
Leases - Operating Lease Expens
Leases - Operating Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||||
Operating lease expense | $ 11,870 | $ 12,158 | $ 23,784 | $ 24,339 |
Short-term lease expense | 619 | 575 | 1,175 | 1,561 |
Variable lease expense | 6,034 | 5,310 | 12,278 | 12,336 |
Total lease expense | $ 18,523 | $ 18,043 | $ 37,237 | $ 38,236 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 227,576 | $ 244,934 |
Operating lease liabilities, current | 45,990 | 49,286 |
Operating lease liabilities, long-term | 276,416 | 296,945 |
Total lease liabilities | $ 322,406 | $ 346,231 |
Weighted average remaining lease term (in years) | 9 years 7 months 6 days | 9 years 8 months 12 days |
Weighted average discount rate | 2.64% | 2.60% |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Sep. 30, 2021 |
Leases [Abstract] | ||
2022 (remainder) | $ 27,868 | |
2023 | 50,028 | |
2024 | 41,469 | |
2025 | 33,568 | |
2026 | 26,550 | |
2027 | 26,194 | |
Thereafter | 164,883 | |
Total lease payments | 370,560 | |
Less: imputed interest | (48,154) | |
Total lease liabilities | $ 322,406 | $ 346,231 |
Commitments And Contingencies (
Commitments And Contingencies (Details) | 6 Months Ended |
Mar. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Product warranty period | 1 year |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||
Effective tax rate | 22.70% | 17.00% | 18.80% | 22.60% |
Unrecognized tax benefit | $ 66.2 | $ 66.2 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | Feb. 03, 2021 | Oct. 31, 2018 | Oct. 26, 2010 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Accelerated Share Repurchases, Settlement (Payment) or Receipt | $ 400,000 | $ 400,000 | $ 500,000 | ||||
Accelerated Share Repurchases, Cash or Stock Settlement | 2.1 million | ||||||
Adjustments To Additional Paid In Capital, Equity Forward Contract | $ 100,000 | $ 100,000 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ 204.96 | $ 194.91 | $ 217.71 | $ 194.91 | |||
October Twenty Six Two Thousand Ten Program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,000,000 | $ 4,400,000 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 522,000 | $ 522,000 |
Shareholders' Equity - Class of
Shareholders' Equity - Class of Treasury Stock (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||||
Treasury Stock Acquired, Average Cost Per Share | $ 204.96 | $ 194.91 | $ 217.71 | $ 194.91 |
Stock Repurchased and Retired During Period, Value | $ 125,012 | $ 400,000 | $ 250,023 | $ 400,000 |
October Twenty Six Two Thousand Ten Program | ||||
Equity, Class of Treasury Stock [Line Items] | ||||
Stock Repurchased and Retired During Period, Shares | 610 | 2,052 | 1,148 | 2,052 |
Net Income Per Share (Details)
Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Numerator | ||||
Net income | $ 56,236 | $ 43,241 | $ 149,795 | $ 130,919 |
Denominator | ||||
Weighted average shares outstanding — basic (shares) | 60,573 | 60,667 | 60,693 | 61,058 |
Dilutive effect of common shares from stock options and restricted stock units | 832 | 1,491 | 968 | 1,234 |
Weighted average shares outstanding — diluted (shares) | 61,405 | 62,158 | 61,661 | 62,292 |
Basic net income per share (dollars per share) | $ 0.93 | $ 0.71 | $ 2.47 | $ 2.14 |
Diluted net income per share (dollars per share) | $ 0.92 | $ 0.70 | $ 2.43 | $ 2.10 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)segmentgeographic_region | Mar. 31, 2021USD ($) | Sep. 30, 2021USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segment | 1 | ||||
Number of geographic regions | geographic_region | 3 | ||||
Net revenues | $ 634,224 | $ 645,287 | $ 1,321,324 | $ 1,269,904 | |
Long-lived assets | $ 178,742 | $ 178,742 | $ 191,164 | ||
Ingram Micro, Inc. | Net Revenue | Geographic Concentration | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk percentage | 20.30% | 17.70% | 19.50% | 17.90% | |
Synnex Corporation | Net Revenue | Geographic Concentration | |||||
Segment Reporting Information [Line Items] | |||||
Concentration risk percentage | 14.30% | 11.50% | 13.20% | 10.70% | |
Product | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | $ 297,518 | $ 309,189 | $ 640,667 | $ 597,234 | |
Product | Systems | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 145,975 | 200,950 | 326,132 | 379,521 | |
Product | Software | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 151,543 | 108,239 | 314,535 | 217,713 | |
United States | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 339,231 | 323,402 | 720,520 | 643,745 | |
Long-lived assets | 141,523 | 141,523 | 153,030 | ||
Other | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 19,324 | 22,650 | 41,026 | 45,443 | |
Total Americas | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 358,555 | 346,052 | 761,546 | 689,188 | |
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 156,374 | 172,222 | 318,435 | 334,306 | |
Long-lived assets | 20,575 | 20,575 | 20,526 | ||
Asia Pacific | |||||
Segment Reporting Information [Line Items] | |||||
Net revenues | 119,295 | $ 127,013 | 241,343 | $ 246,410 | |
Other countries | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | $ 16,644 | $ 16,644 | $ 17,608 |
Restructuring Charges - Narrati
Restructuring Charges - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022USD ($) | Mar. 31, 2021USD ($) | Mar. 31, 2022USD ($)employee | Mar. 31, 2021USD ($) | |
Restructuring Charges [Abstract] | ||||
Number of employees in reduction of force program | employee | 70 | |||
Restructuring charges | $ | $ 0 | $ 0 | $ 7,909 | $ 0 |
Restructuring Charges - Restruc
Restructuring Charges - Restructuring Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2022 | Mar. 31, 2021 | Mar. 31, 2022 | Mar. 31, 2021 | |
Restructuring Reserve [Roll Forward] | ||||
Accrued expenses (Beginning balance) | $ 0 | |||
Restructuring charges | $ 0 | $ 0 | 7,909 | $ 0 |
Cash payments | (6,644) | |||
Accrued expenses (Ending balance) | $ 1,265 | $ 1,265 |