Annual report [Section 13 and 15(d), not S-K Item 405]

Other Items

v3.25.3
Other Items
 12 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Other Items OTHER ITEMS
Accounts Receivable, Net
Table 14.1: Details of Accounts Receivable, Net
As of September 30,
2025 2024
(in thousands)
Billed and billable receivables $ 720,495  $ 734,817 
Unbilled receivables 187,372  149,488 
Allowance for credit losses (9,772) (4,791)
Accounts receivable, net $ 898,095  $ 879,514 
Table 14.2: Changes in Allowance for Credit Losses
For the Year Ended September 30,
2025 2024 2023
(in thousands)
Balance at beginning of period $ 4,791  $ 3,719  $ 8,273 
Provision for estimated credit losses 8,980  12,761  7,097 
Write-offs, net of recoveries (3,999) (11,689) (11,651)
Balance at end of period $ 9,772  $ 4,791  $ 3,719 
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 $250.0 million at any given time. 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 fiscal years ended September 30, 2025, 2024, and 2023 the value of accounts receivables transferred to Wells Fargo and derecognized from our balance sheet was $732.1 million, $334.3 million, and $450.4 million respectively. In exchange for these sales, we received cash of $727.7 million, $332.2 million, and $447.7 million for the same periods, respectively. The difference, 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,
2025 2024
(in thousands)
Office furniture and equipment $ 108,920  $ 123,027 
Leasehold improvements 65,944  78,894 
Property and equipment, at cost 174,864  201,921 
Accumulated depreciation (143,892) (162,944)
Property and equipment, net $ 30,972  $ 38,977 
Depreciation expense for the fiscal years ended September 30, 2025, 2024, and 2023, was $19.5 million, $19.2 million, and $28.4 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,
2025 2024
(in thousands)
Capitalized software $ 339,141  $ 290,426 
Accumulated amortization (124,881) (102,749)
Capitalized software, net $ 214,260  $ 187,677 
Amortization expense related to capitalized software for the fiscal years ended September 30, 2025, 2024, and 2023 was $22.2 million, $14.8 million, and $26.3 million, respectively. Amortization of capitalized software costs are 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,
2025 2024
(in thousands)
Deferred contract costs $ 100,771  $ 94,253 
Accumulated amortization (37,439) (34,821)
Deferred contract costs, net $ 63,332  $ 59,432 
Amortization expense related to deferred contract costs for the fiscal years ended September 30, 2025, 2024, and 2023 was $12.1 million, $9.8 million, and $12.7 million, respectively. These amounts were recorded within our "cost of revenue" on our consolidated statements of operations.