Revenue from Contracts with Customers (Notes)

3 Months Ended

Sep. 30, 2023

Revenue from Contracts with Customers [Abstract]

Revenue from Contract with Customer [Text Block]

Revenue from Contracts with Customers

Contract Assets and Contract Liabilities

Contract assets are subject to credit risk and reviewed in accordance with Accounting Standards Codification (“ASC”) 326, Financial Instruments Credit Losses. The Company monitors the credit quality of customer contract asset balances on an individual basis, at each reporting date, through credit characteristics, geographic location, and the industry in which they operate. The Company recognizes an impairment on contract assets if, subsequent to contract inception, it becomes probable payment is not collectible. An allowance for expected credit loss reflects losses expected over the remaining term of the contract asset and is determined based upon historical losses, customer-specific factors, and current economic conditions. The potential impact of credit losses on contract assets was immaterial as of September 30, 2023. The Company’s contract assets and contract liabilities were as follows as of September 30, 2023 and June 30, 2023:

	September 30, 2023		June 30, 2023
	(Dollars in Thousands)
Contract assets	$	916,636	$	903,643
Contract liabilities	(144,781)		(181,553)
Net contract assets	$	771,855	$	722,090

The majority of the Company’s contract balances are related to arrangements where revenue is recognized at a point in time and payments are made according to a contractual billing schedule. The change in the net contract asset balance during the three months ended September 30, 2023 was primarily due to greater revenue recognition as compared to billings. Revenue recognized during the first quarter of fiscal 2024 included $41.0 million that was included in the beginning contract liability balance.

Transaction Price Allocated to Remaining Performance Obligations

The following table includes the aggregate amount of the transaction price allocated as of September 30, 2023 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:

	Year Ending June 30,
	2024		2025		2026		2027		2028		Thereafter		Total
	(Dollars in Thousands)
License and solutions	$	108,987	$	96,644	$	42,092	$	14,588	$	2,396	$	1,279	$	265,986
Maintenance	223,670		223,635		164,342		114,089		69,953		33,105		828,794
Services and other	53,036		22,957		8,941		2,868		952		157		88,911
Total	$	385,693	$	343,236	$	215,375	$	131,545	$	73,301	$	34,541	$	1,183,691

Disaggregated Revenue Information

The table below reflects disaggregated revenues by business for the three months ended September 30, 2023 and 2022:

	Three Months Ended September 30,
	2023		2022
	(Dollars in Thousands)
Heritage AspenTech	$	175,743	$	176,406
Subsurface Science & Engineering	24,081		32,988
OSI, Inc.	49,484		41,425
Total	$	249,308	$	250,819

The Company did not have any customers that accounted for 10 percent or more of the Company’s revenues for the three months ended September 30, 2023 and 2022, respectively.