Balance Sheet Details

12 Months Ended

Sep. 30, 2023

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):


	September 30,
	2023		2022
Cash and cash equivalents	$	797,163	$	758,012
Restricted cash included in other assets, net	3,672		4,195
Total cash, cash equivalents and restricted cash	$	800,835	$	762,207

Inventories

Inventories consist of the following (in thousands):


	September 30,
	2023		2022
Finished goods	$	11,699	$	10,164
Raw materials	24,175		58,201
	$	35,874	$	68,365

Other Current Assets

Other current assets consist of the following (in thousands):


	September 30,
	2023		2022
Unbilled receivables	$	374,113	$	319,707
Prepaid expenses	84,506		57,340
Capitalized contract acquisition costs	31,206		34,658
Other1	64,919		77,609
	$	554,744	$	489,314

(1) As of September 30, 2023 and 2022, includes a deposit of $36.2 million and $57.0 million, respectively, used to support the working capital needs of the Company’s primary contract manufacturer's procurement of components used in the manufacturing of system hardware.

Property and Equipment

Property and equipment consist of the following (in thousands):


	September 30,
	2023		2022
Computer equipment	$	189,555	$	168,204
Software	78,184		86,036
Office furniture and equipment	44,525		41,619
Leasehold improvements	185,225		173,689
	497,489		469,548
Accumulated depreciation and amortization	(327,067)		(301,366)
	$	170,422	$	168,182

Depreciation and amortization expense totaled approximately $53.3 million, $56.0 million, and $61.3 million for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.

There were no property and equipment impairment charges for the years ended September 30, 2023 and 2022, respectively. During the year ended September 30, 2021, the Company recorded an impairment of $10.3 million for leasehold improvements and other fixed assets associated with the permanent exit of six floors in its corporate headquarters. The Company also recorded an impairment of $0.2 million for fixed assets associated with the integration of the former Shape headquarters in Santa Clara, California. The impairment charges for the year ended September 30, 2021 were allocated to various expense line items on the Company’s consolidated income statements based on the teams that previously worked out of the exited space.

Goodwill

Changes in the carrying amount of goodwill during fiscal years 2023 and 2022 are summarized as follows (in thousands):


Balance, September 30, 2021	$	2,216,553
Acquisition of Threat Stack, Inc.	43,956
Other	(1,227)
Balance, September 30, 2022	2,259,282
Other business acquisitions	29,396
Balance, September 30, 2023	$	2,288,678

Other Assets

Other assets consist of the following (in thousands):


	September 30,
	2023		2022
Intangible assets	$	150,969	$	200,288
Unbilled receivables	202,838		224,780
Capitalized contract acquisition costs	35,263		42,561
Other	55,543		48,493
	$	444,613	$	516,122

Intangible assets are included in other assets on the consolidated balance sheets and consist of the following (in thousands):


	September 30, 2023						September 30, 2022
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	319,368	$	(190,135)	$	129,233	$	319,436	$	(151,332)	$	168,104
Customer relationships	45,642		(33,298)		12,344		46,142		(25,630)		20,512
Patents and trademarks	13,699		(9,658)		4,041		23,504		(19,255)		4,249
Trade names	15,473		(10,122)		5,351		24,973		(17,550)		7,423
Non-compete covenants	1,960		(1,960)		—		2,260		(2,260)		—
	$	396,142	$	(245,173)	$	150,969	$	416,315	$	(216,027)	$	200,288

There were no intangible asset impairment charges for the year ended September 30, 2023. During the year ended September 30, 2022, 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.

Amortization expense related to intangible assets was $29.1 million, $36.4 million, and $48.7 million for the fiscal years ended September 30, 2023, 2022 and 2021, respectively.

For intangible assets held as of September 30, 2023, amortization expense for the five succeeding fiscal years is as follows (in thousands):


2024	$	50,914
2025	39,477
2026	34,723
2027	16,541
2028	4,106
	$	145,761

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	September 30,
	2023		2022
Payroll and benefits	$	152,898	$	165,437
Operating lease liabilities, current	41,421		42,523
Income and other tax accruals	34,504		41,217
Other	54,067		60,642
	$	282,890	$	309,819

Other Long-term Liabilities

Other long-term liabilities consist of the following (in thousands):


	September 30,
	2023		2022

Income taxes payable	$	73,751	$	59,553
Other	8,822		8,157
	$	82,573	$	67,710