Balance Sheet Details (Tables)

12 Months Ended

Sep. 30, 2020

Balance Sheet Details [Abstract]

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,
	2020		2019
Cash and cash equivalents	$	849,556	$	599,219
Restricted cash included in other assets, net	3,270		3,035
Total cash, cash equivalents and restricted cash	$	852,826	$	602,254

Inventories

Inventories consist of the following (in thousands):

	September 30,
	2020		2019
Finished goods	$	17,096	$	22,441
Raw materials	10,802		11,960
	$	27,898	$	34,401

Other Current Assets

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

	September 30,
	2020		2019
Contract assets	$	138,096	$	79,407
Prepaid expenses	47,197		49,051
Capitalized contract acquisition costs	29,650		28,228
Other	44,563		26,188
	$	259,506	$	182,874

Property, Plant and Equipment

Property and Equipment

Property and equipment are stated at net book value. Depreciation of property and equipment are provided using the straight-line method over the estimated useful lives of the assets, ranging from two to five years. Leasehold improvements are amortized over the lesser of the remaining lease term or the estimated useful life of the improvements. The cost of normal maintenance and repairs is charged to expense as incurred and expenditures for major improvements are capitalized at cost. Gains or losses on the disposition of assets are reflected in the income statements at the time of disposal.

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

	September 30,
	2020		2019
Computer equipment	$	153,256	$	142,372
Software	95,288		85,866
Office furniture and equipment	45,280		38,892
Leasehold improvements	175,593		151,055
	469,417		418,185
Accumulated depreciation and amortization	(240,178)		(194,759)
	$	229,239	$	223,426

Goodwill

Changes in the carrying amount of goodwill during fiscal years 2020 and 2019 are summarized as follows (in thousands):

Balance, September 30, 2018	$	555,965
Acquisition of Nginx, Inc.	509,414
Balance, September 30, 2019	1,065,379
Acquisition of Shape Security, Inc.	799,611
Adjustment to goodwill1	(6,024)
Balance, September 30, 2020	$	1,858,966

(1)The Company reduced the carrying amount of goodwill by $6.0 million in the third quarter of fiscal year 2020 to reflect an adjustment to consideration exchanged for the purchase of NGINX within the post-close measurement period.

Other Assets

Other assets consist of the following (in thousands):

	September 30,
	2020		2019
Intangible assets	$	225,900	$	108,903
Contract assets	62,377		53,085
Capitalized contract acquisition costs	40,746		31,218
Other	18,424		10,575
	$	347,447	$	203,781

Intangible Assets

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

	2020						2019
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	246,173	$	(76,556)	$	169,617	$	126,173	$	(53,213)	$	72,960
Customer relationships	41,242		(10,657)		30,585		20,242		(5,533)		14,709
Patents and trademarks	20,260		(14,448)		5,812		19,160		(11,800)		7,360
Trade names	24,973		(5,174)		19,799		15,473		(1,836)		13,637
Non-compete covenants	2,260		(2,173)		87		2,260		(2,023)		237
	$	334,908	$	(109,008)	$	225,900	$	183,308	$	(74,405)	$	108,903

Estimated Amortization Expense For Intangible Assets

Estimated amortization expense for intangible assets for the five succeeding fiscal years is as follows (in thousands):

2021	$	42,722
2022	41,429
2023	40,625
2024	35,360
2025	29,624
	$	189,760

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

	September 30,
	2020		2019
Payroll and benefits	$	169,708	$	138,453
Operating lease liabilities, current	46,010		—
Income and other tax accruals	33,048		31,801
Other	72,632		65,615
	$	321,398	$	235,869

Other Long-term Liabilities

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

	September 30,
	2020		2019
Deferred rent	$	—	$	66,103
Income taxes payable	49,846		42,324
Other	9,665		23,426
	$	59,511	$	131,853