Balance Sheet Details

12 Months Ended

Sep. 30, 2022

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,
	2022		2021
Cash and cash equivalents	$	758,012	$	580,977
Restricted cash included in other assets, net	4,195		3,356
Total cash, cash equivalents and restricted cash	$	762,207	$	584,333

Inventories

Inventories consist of the following (in thousands):


	September 30,
	2022		2021
Finished goods	$	10,164	$	13,081
Raw materials	58,201		8,974
	$	68,365	$	22,055

Other Current Assets

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


	September 30,
	2022		2021
Unbilled receivables	$	319,707	$	215,396
Prepaid expenses	57,340		59,636
Capitalized contract acquisition costs	34,658		34,265
Other1	77,609		28,605
	$	489,314	$	337,902

(1) As of September 30, 2022, includes a deposit of $57.0 million used to support the working capital needs of the Company’s primary contract manufacturer's procurement of components used in the manufacturing of system hardware.

Property and Equipment

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


	September 30,
	2022		2021
Computer equipment	$	168,204	$	166,846
Software	86,036		94,169
Office furniture and equipment	41,619		45,204
Leasehold improvements	173,689		174,504
	469,548		480,723
Accumulated depreciation and amortization	(301,366)		(289,559)
	$	168,182	$	191,164

Depreciation and amortization expense totaled approximately $56.0 million, $61.3 million, and $59.5 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.

There were no long-lived asset impairment charges for the year ended September 30, 2022. During the year ended September 30, 2021, the Company recorded an impairment of $10.3 million for leasehold improvements and other fixed assets associated with the permanent exit of six floors in its corporate headquarters. The Company also recorded an impairment of $0.2 million for fixed assets associated with the integration of the former Shape headquarters in Santa Clara, California. The impairment charges for the year ended September 30, 2021 were allocated to various expense line items on the Company’s consolidated income statements based on the teams that previously worked out of the exited space.

Goodwill

Changes in the carrying amount of goodwill during fiscal years 2022 and 2021 are summarized as follows (in thousands):


Balance, September 30, 2020	$	1,858,966
Acquisition of Volterra, Inc.	351,417
Other	6,170
Balance, September 30, 2021	2,216,553
Acquisition of Threat Stack, Inc.	43,956
Other	(1,227)
Balance, September 30, 2022	$	2,259,282

Other Assets

Other assets consist of the following (in thousands):


	September 30,
	2022		2021
Intangible assets	$	200,288	$	237,178
Unbilled receivables	224,780		158,885
Capitalized contract acquisition costs	42,561		43,571
Other	48,493		32,924
	$	516,122	$	472,558

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


	September 30, 2022						September 30, 2021
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
Developed technology	$	319,436	$	(151,332)	$	168,104	$	305,673	$	(111,279)	$	194,394
Customer relationships	46,142		(25,630)		20,512		41,742		(17,865)		23,877
Patents and trademarks	23,504		(19,255)		4,249		20,260		(17,180)		3,080
Trade names	24,973		(17,550)		7,423		24,973		(9,146)		15,827
Non-compete covenants	2,260		(2,260)		—		2,260		(2,260)		—
	$	416,315	$	(216,027)	$	200,288	$	394,908	$	(157,730)	$	237,178

Amortization expense related to intangible assets was approximately $36.4 million, $48.7 million, and $34.6 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.

For intangible assets held as of September 30, 2022, amortization expense for the five succeeding fiscal years is as follows (in thousands):


2023	$	51,303
2024	46,030
2025	41,559
2026	36,805
2027	15,526
	$	191,223

Accrued Liabilities

Accrued liabilities consist of the following (in thousands):


	September 30,
	2022		2021
Payroll and benefits	$	165,437	$	179,147
Operating lease liabilities, current	42,523		49,286
Income and other tax accruals	41,217		44,075
Other	60,642		68,979
	$	309,819	$	341,487

Other Long-term Liabilities

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


	September 30,
	2022		2021

Income taxes payable	$	59,553	$	66,081
Other	8,157		9,155
	$	67,710	$	75,236