Revenue from Contracts with Customers (Tables)

12 Months Ended

Jun. 30, 2019

Revenue from Contracts with Customers [Abstract]

Disaggregation of Revenue [Table Text Block]

Disaggregation of Revenue

We disaggregate our revenue by region, type of performance obligation, timing of revenue recognition, and segment as follows:

	Year Ended June 30,
	2019		2018		2017
			As Adjusted		As Adjusted
	(Dollars in Thousands)
Revenue by region:
United States	$	219,967	$	207,266	$	158,761
Europe	155,543		126,862		166,133
Other (1)	222,835		184,731		169,533
	$	598,345	$	518,859	$	494,427
Revenue by type of performance obligation:
License	$	404,122	$	326,549	$	307,259
Maintenance	165,436		161,065		157,012
Services and other	28,787		31,245		30,156
	$	598,345	$	518,859	$	494,427
Revenue by segment:
Subscription and software	$	569,558	$	487,614	$	464,271
Services and other	28,787		31,245		30,156
	$	598,345	$	518,859	$	494,427

____________________________________________

(1)

Other consists primarily of Asia Pacific, Canada, Latin America and the Middle East.

Contract with Customer, Asset and Liability [Table Text Block]

Our contract assets and deferred revenue were as follows as of June 30, 2019 and 2018:

	June 30, 2019			June 30, 2018
				As Restated
	(Dollars in Thousands)
Contract assets	$	619,703		$	557,377
Deferred revenue	(44,891		)	(27,504		)
	$	574,812		$	529,873

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Table Text Block]

Transaction Price Allocated to Remaining Performance Obligations

The following table includes the aggregate amount of the transaction price allocated as of June 30, 2019 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:

	Year Ended June 30,
	2020		2021		2022		2023		2024		Thereafter
	(Dollars in Thousands)
License	$	47,869	$	31,944	$	9,820	$	3,575	$	1,559	$	721
Maintenance	193,348		144,734		101,127		64,286		37,613		14,847
Services and other	43,679		646		594		345		74		16

Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]

Impact to Prior Period Information

The following table presents the effect of the adoption of Topic 606 on select consolidated statements of operations line items for fiscal 2018 and 2017:

	Year Ended June 30, 2018
	As Previously Reported		Adjustments			As Adjusted
	(Dollars in Thousands, Except per Share Data)
Consolidated Statements of Operations:
License revenue	$	—	$	326,549		$	326,549
Maintenance revenue	—		161,065			161,065
Subscription and software revenue	471,041		(471,041		)	—
Services and other revenue	28,473		2,772			31,245
Total revenue	499,514		19,345			518,859
Gross profit	448,870		19,345			468,215
Selling and marketing expense	101,077		(1,340		)	99,737
General and administrative expense	56,076		11,105			67,181
Total operating expenses	239,229		9,765			248,994
Income from operations	209,641		9,580			219,221
Interest income	231		24,723			24,954
Provision for (benefit from) income taxes	54,655		(110,712		)	(56,057		)
Net income	$	148,688	$	145,015		$	293,703
Net income per common share:
Basic	$	2.06				$	4.07
Diluted	$	2.04				$	4.03
Weighted average shares outstanding:
Basic	72,140					72,140
Diluted	72,956					72,956

	Year Ended June 30, 2017
	As Previously Reported		Adjustments			As Adjusted
	(Dollars in Thousands, Except per Share Data)
Consolidated Statements of Operations:
License revenue	$	—	$	307,259		$	307,259
Maintenance revenue	—		157,012			157,012
Subscription and software revenue	453,512		(453,512		)	—
Services and other revenue	29,430		726			30,156
Total revenue	482,942		11,485			494,427
Gross profit	435,476		11,485			446,961
Selling and marketing expense	92,633		(656		)	91,977
General and administrative expense	51,297		7,438			58,735
Total operating expenses	223,460		6,782			230,242
Income from operations	212,016		4,703			216,719
Interest income	808		22,134			22,942
Provision for income taxes	48,150		9,647			57,797
Net income	$	162,196	$	17,190		$	179,386
Net income per common share:
Basic	$	2.12				$	2.35
Diluted	$	2.11				$	2.33
Weighted average shares outstanding:
Basic	76,491					76,491
Diluted	76,978					76,978

The following table presents the effect of the adoption of Topic 606 on select consolidated balance sheet line items as of June 30, 2018:

	June 30, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands)
Consolidated Balance Sheets:
ASSETS
Current contract assets	$	—	$	237,537		$	237,537
Contract costs	—		20,500			20,500
Accounts receivable, net	21,910		19,900			41,810
Non-current contract assets	—		319,840			319,840
Non-current deferred tax assets	11,090		(9,858		)	1,232
Total assets	264,924		587,919			852,843
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current deferred revenue	286,845		(271,695		)	15,150
Non-current deferred revenue	28,259		(15,905		)	12,354
Deferred income taxes	—		184,901			184,901
Other non-current liabilities	18,492		(1,424		)	17,068
Retained earnings	305,208		692,042			997,250
Total liabilities and stockholders’ equity	$	264,924	$	587,919		$	852,843

The adoption of Topic 606 had no impact on our total cash flows or net cash provided by operating activities. The impacts of adoption resulted in offsetting shifts in cash flows throughout the components of net income and various changes in working capital balances. The following table presents the effect of the adoption of Topic 606 on select consolidated statement of cash flows line items for fiscal 2018 and 2017:

	Year Ended June 30, 2018
	As Previously Reported		Adjustments			As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Cash Flows:
Cash flows from operating activities:
Net income	$	148,688	$	145,015		$	293,703
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	3,193		(113,501		)	(110,308		)
Changes in assets and liabilities:
Contract assets	—		3,640			3,640
Contract costs	—		(617		)	(617		)
Accounts receivable	4,327		(3,481		)	846
Deferred revenue	13,700		(31,056		)	(17,356		)
Net cash provided by operating activities	$	206,936	$	—		$	206,936

	Year Ended June 30, 2017
	As Previously Reported			Adjustments			As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Cash Flows:
Cash flows from operating activities:
Net income	$	162,196		$	17,190		$	179,386
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	(4,286		)	9,559			5,273
Changes in assets and liabilities:
Contract assets	—			(4,327		)	(4,327		)
Contract costs	—			(203		)	(203		)
Accounts receivable	(7,480		)	(684		)	(8,164		)
Deferred revenue	18,477			(21,535		)	(3,058		)
Net cash provided by operating activities	$	182,386		$	—		$	182,386

As referenced in Item 9A, "Controls and Procedures," the previously issued unaudited consolidated financial statements in our quarterly reports on Form 10-Q for the quarters ended September 30, 2018, December 31, 2018 and March 31, 2019 have been restated in this Form 10-K. See Note 19, "Quarterly Financial Data (Unaudited)," to our Consolidated Financial Statements for the restated financial statements.

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	June 30, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	96,165	$	—		$	96,165
Accounts receivable, net	41,810		—			41,810
Current contract assets	304,378		(66,841		)	237,537
Current contract costs	20,500		(20,500		)	—
Prepaid expenses and other current assets	10,509		—			10,509
Prepaid income taxes	2,601		—			2,601
Total current assets	475,963		(87,341		)	388,622
Property, equipment and leasehold improvements, net	9,806		—			9,806
Computer software development costs, net	646		—			646
Goodwill	75,590		—			75,590
Intangible assets, net	35,310		—			35,310

Non-current contract assets	340,622			(20,782		)	319,840
Non-current contract costs	—			20,500			20,500
Non-current deferred tax assets	11,090			(9,858		)	1,232
Other non-current assets	1,297			—			1,297
Total assets	$	950,324		$	(97,481	)	$	852,843
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,230		$	—		$	4,230
Accrued expenses and other current liabilities	39,515			—			39,515
Income taxes payable	1,698			—			1,698
Borrowings under credit agreement	170,000			—			170,000
Current deferred revenue	15,150			—			15,150
Total current liabilities	230,593			—			230,593
Non-current deferred revenue	12,354			—			12,354
Deferred income taxes	214,125			(29,224		)	184,901
Other non-current liabilities	17,068			—			17,068
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of June 30, 2018 and 2017 Issued and outstanding—none as of June 30, 2018 and 2017	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,130,300 shares at June 30, 2018 and 102,567,129 shares at June 30, 2017 Outstanding—71,186,701 shares at June 30, 2018 and 73,421,153 shares at June 30, 2017	10,313			—			10,313
Additional paid-in capital	715,475			—			715,475
Retained earnings	1,065,507			(68,257		)	997,250
Accumulated other comprehensive income	1,388			—			1,388
Treasury stock, at cost— 31,943,599 shares of common stock at June 30, 2018 and 29,145,976 shares at June 30, 2017	(1,316,499		)	—			(1,316,499		)
Total stockholders' equity	476,184			(68,257		)	407,927
Total liabilities and stockholders' equity	$	950,324		$	(97,481	)	$	852,843

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	September 30, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	52,048	$	—		$	52,048
Accounts receivable, net	53,999		(3,653		)	50,346

Current contract assets	317,967			(79,472		)	238,495
Current contract costs	21,296			(21,296		)	—
Prepaid expenses and other current assets	12,992			—			12,992
Prepaid income taxes	1,422			—			1,422
Total current assets	459,724			(104,421		)	355,303
Property, equipment and leasehold improvements, net	9,006			—			9,006
Computer software development costs, net	695			—			695
Goodwill	75,649			—			75,649
Intangible assets, net	34,192			—			34,192
Non-current contract assets	357,947			(4,498		)	353,449
Non-current contract costs	—			21,296			21,296
Non-current deferred tax assets	1,176			—			1,176
Other non-current assets	1,279			—			1,279
Total assets	$	939,668		$	(87,623	)	$	852,045
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	2,501		$	—		$	2,501
Accrued expenses and other current liabilities	32,000			—			32,000
Income taxes payable	46,869			—			46,869
Borrowings under credit agreement	170,000			—			170,000
Current deferred revenue	23,737			—			23,737
Total current liabilities	275,107			—			275,107
Non-current deferred revenue	15,046			—			15,046
Deferred income taxes	159,563			(19,366		)	140,197
Other non-current liabilities	16,833			—			16,833
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of September 30, 2018 and June 30, 2018 Issued and outstanding—none as of September 30, 2018 and June 30, 2018	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,279,138 shares at September 30, 2018 and 103,130,300 shares at June 30, 2018 Outstanding—70,862,163 shares at September 30, 2018 and 71,186,701 shares at June 30, 2018	10,328			—			10,328
Additional paid-in capital	724,752			—			724,752
Retained earnings	1,103,573			(68,257		)	1,035,316
Accumulated other comprehensive income	965			—			965
Treasury stock, at cost— 32,416,975 shares of common stock at September 30, 2018 and 31,943,599 shares at June 30, 2018	(1,366,499		)	—			(1,366,499		)
Total stockholders' equity	473,119			(68,257		)	404,862
Total liabilities and stockholders' equity	$	939,668		$	(87,623	)	$	852,045

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	December 31, 2018
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	54,428	$	—		$	54,428
Accounts receivable, net	56,586		(3,653		)	52,933
Current contract assets	321,135		(55,449		)	265,686
Current contract costs	23,046		(23,046		)	—
Prepaid expenses and other current assets	10,330		—			10,330
Prepaid income taxes	921		—			921
Total current assets	466,446		(82,148		)	384,298
Property, equipment and leasehold improvements, net	8,311		—			8,311
Computer software development costs, net	691		—			691
Goodwill	74,802		—			74,802
Intangible assets, net	32,889		—			32,889
Non-current contract assets	366,581		(28,521		)	338,060
Non-current contract costs	—		23,046			23,046
Non-current deferred tax assets	1,651		—			1,651
Other non-current assets	1,075		—			1,075
Total assets	$	952,446	$	(87,623	)	$	864,823
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	5,249	$	—		$	5,249
Accrued expenses and other current liabilities	36,688		—			36,688
Income taxes payable	43,573		—			43,573
Borrowings under credit agreement	220,000		—			220,000
Current deferred revenue	23,145		—			23,145
Total current liabilities	328,655		—			328,655
Non-current deferred revenue	18,167		—			18,167
Deferred income taxes	157,238		(19,366		)	137,872
Other non-current liabilities	16,192		—			16,192
Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of December 31, 2018 and June 30, 2018 Issued and outstanding—none as of December 31, 2018 and June 30, 2018	—		—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,395,683 shares at December 31, 2018 and 103,130,300 shares at June 30, 2018 Outstanding—69,803,177 shares at December 31, 2018 and 71,186,701 shares at June 30, 2018	10,340		—			10,340
Additional paid-in capital	725,493		—			725,493
Retained earnings	1,162,790		(68,257		)	1,094,533

Accumulated other comprehensive income	70			—			70
Treasury stock, at cost— 33,592,506 shares of common stock at December 31, 2018 and 31,943,599 shares at June 30, 2018	(1,466,499		)	—			(1,466,499		)
Total stockholders' equity	432,194			(68,257		)	363,937
Total liabilities and stockholders' equity	$	952,446		$	(87,623	)	$	864,823

ASPEN TECHNOLOGY, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	March 31, 2019
	As Previously Reported		Adjustments			As Restated
	(Dollars in Thousands, Except Share and Per Share Data)
ASSETS
Current assets:
Cash and cash equivalents	$	65,592	$	—		$	65,592
Accounts receivable, net	45,293		(3,653		)	41,640
Current contract assets	314,745		(44,013		)	270,732
Current contract costs	24,325		(24,325		)	—
Prepaid expenses and other current assets	11,124		—			11,124
Prepaid income taxes	1,573		—			1,573
Total current assets	462,652		(71,991		)	390,661
Property, equipment and leasehold improvements, net	7,589		—			7,589
Computer software development costs, net	1,452		—			1,452
Goodwill	73,534		—			73,534
Intangible assets, net	31,756		—			31,756
Non-current contract assets	358,709		(39,957		)	318,752
Non-current contract costs	—		24,325			24,325
Non-current deferred tax assets	1,696		—			1,696
Other non-current assets	1,279		—			1,279
Total assets	$	938,667	$	(87,623	)	$	851,044
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	4,023	$	—		$	4,023
Accrued expenses and other current liabilities	42,746		—			42,746
Income taxes payable	35,582		—			35,582
Borrowings under credit agreement	220,000		—			220,000
Current deferred revenue	24,415		—			24,415
Total current liabilities	326,766		—			326,766
Non-current deferred revenue	19,312		—			19,312
Deferred income taxes	154,901		(19,366		)	135,535
Other non-current liabilities	12,403		—			12,403

Commitments and contingencies
Series D redeemable convertible preferred stock, $0.10 par value—Authorized—3,636 shares as of March 31, 2019 and June 30, 2018 Issued and outstanding—none as of March 31, 2019 and June 30, 2018	—			—			—
Stockholders' equity:
Common stock, $0.10 par value—Authorized—210,000,000 shares Issued—103,478,590 shares at March 31, 2019 and 103,130,300 shares at June 30, 2018 Outstanding—69,108,515 shares at March 31, 2019 and 71,186,701 shares at June 30, 2018	10,348			—			10,348
Additional paid-in capital	730,830			—			730,830
Retained earnings	1,224,377			(68,257		)	1,156,120
Accumulated other comprehensive income	1,229			—			1,229
Treasury stock, at cost— 34,370,075 shares of common stock at March 31, 2019 and 31,943,599 shares at June 30, 2018	(1,541,499		)	—			(1,541,499		)
Total stockholders' equity	425,285			(68,257		)	357,028
Total liabilities and stockholders' equity	$	938,667		$	(87,623	)	$	851,044