Annual report pursuant to Section 13 and 15(d)

Other Balance Sheet Components

v3.24.3
Other Balance Sheet Components
 12 Months Ended
Sep. 30, 2024
Receivables [Abstract]  
Other Balance Sheet Components OTHER BALANCE SHEET COMPONENTS
Accounts Receivable, Net
Table 14.1: Details of Accounts Receivable, Net
As of September 30,
2024 2023
(in thousands)
Billed and billable receivables $ 734,817  $ 692,707 
Unbilled receivables 149,488  137,885 
Allowance for credit losses (4,791) (3,719)
Accounts receivable, net $ 879,514  $ 826,873 
Table 14.2: Changes in Allowance for Credit Losses
For the Year Ended September 30,
2024 2023 2022
(in thousands)
Balance at beginning of period $ 3,719  $ 8,273  $ 8,044 
Provision for estimated credit losses 12,761  7,097  6,799 
Write-offs, net of recoveries (11,689) (11,651) (6,570)
Balance at end of period $ 4,791  $ 3,719  $ 8,273 
We have a Receivables Purchase Agreement with Wells Fargo Bank N.A., under which we may sell certain U.S.-originated accounts receivable balances up to a maximum amount of $200.0 million. In return for these sales, we receive a cash payment equal to the face value of the receivables less a financing charge.
We account for these transfers as sales. We have no retained interest in the transferred receivables other than administrative responsibilities, and Wells Fargo has no recourse for any credit risk. We estimate that the implicit servicing fees for an arrangement of this size and type would be immaterial.
For the years ended September 30, 2024 and 2023, the fair value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $334.3 million and $450.4 million, respectively. In exchange for these sales, we received cash of $332.2 million and $447.7 million for the same periods, respectively. The balance, representing a loss on sale from these transfers, is included within our selling, general, and administrative expenses. We have recorded these transactions within our operating cash flows.
Property and Equipment, Net
Table 14.3: Details of Property and Equipment, Net
As of September 30,
2024 2023
(in thousands)
Office furniture and equipment $ 123,027  $ 134,910 
Leasehold improvements 78,894  78,520 
Property and equipment, at cost 201,921  213,430 
Accumulated depreciation (162,944) (174,599)
Property and equipment, net $ 38,977  $ 38,831 
Depreciation expense for the years ended September 30, 2024, 2023, and 2022, was $19.2 million, $28.4 million, and $28.3 million, respectively. This expense was recorded within "cost of revenue" and "selling, general, and administrative expenses" on our consolidated statements of operations.
Capitalized Software Costs, Net
Capitalized software is recorded at cost and includes purchased, internally-developed, and externally-developed software used in our operations. Amortization expense is provided using the straight-line method over the estimated useful lives of the software.
A summary of activities related to capitalized software costs is shown below:
Table 14.4: Details of Capitalized Software, Net
As of September 30,
2024 2023
(in thousands)
Capitalized software $ 290,426  $ 195,813 
Accumulated amortization (102,749) (88,002)
Capitalized software, net $ 187,677  $ 107,811 
Amortization expense related to capitalized software for the years ended September 30, 2024, 2023, and 2022 was $14.8 million, $26.3 million, and $14.1 million, respectively. The majority of this amortization was recorded within our "cost of revenue" and "selling, general, and administrative expenses" on our consolidated statements of operations.
Deferred Contract Costs, Net
Deferred contract costs consist of contractually recoverable costs to fulfill services related to long-term service contracts. These costs include direct and incremental costs incurred prior to the commencement of providing service to our customer. These costs are expensed over the period the services are provided using the straight-line method.
A summary of activities related to deferred contract costs is shown below:
Table 14.5: Details of Deferred Contracts Costs, Net
As of September 30,
2024 2023
(in thousands)
Deferred contract costs $ 94,253  $ 77,597 
Accumulated amortization (34,821) (32,225)
Total deferred contract costs, net $ 59,432  $ 45,372 
Amortization expense related to deferred contract costs for the years ended September 30, 2024, 2023, and 2022 was $9.8 million, $12.7 million, and $8.9 million, respectively. These amounts were recorded within our "cost of revenue" on our consolidated statements of operations.