0000950170-22-025785 | 10-K | XBRL Viewer

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Document and Entity Information - USD ($) $ in Billions	12 Months Ended
Document and Entity Information - USD ($) $ in Billions	Sep. 30, 2022	Nov. 15, 2022	Mar. 31, 2022
Cover [Abstract]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Sep. 30, 2022
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Document Annual Report	true
Document Transition Report	false
Entity File Number	001-39030
Entity Registrant Name	CERENCE INC.
Entity Central Index Key	0001768267
Entity Incorporation State Country Code	DE
Entity Tax Identification Number	83-4177087
Entity Address Address Line1	1 Burlington Woods Drive,
Entity Address Address Line2	Suite 301A
Entity Address City Or Town	Burlington
Entity Address State Or Province	MA
Entity Address Postal Zip Code	01803
City Area Code	857
Local Phone Number	362-7300
Title of 12(b) Security	Common stock, par value $0.01 per share
Trading Symbol	CRNC
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		39,942,174
Entity Public Float			$ 1.4
ICFR Auditor Attestation Flag	true
Documents Incorporated by Reference	DOCUMENTS INCORPORATED BY REFERENCE Portions of the Registrant’s definitive Proxy Statement to be filed with the Securities and Exchange Commission in connection with the Registrant’s 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this Form 10-K. Such Proxy Statement will be filed within 120 days of the Registrant’s fiscal year ended September 30, 2022.
Auditor Firm ID	243
Auditor Location	Boston, Massachusetts
Auditor Name	BDO USA, LLP

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Total revenues	$ 327,891	$ 387,182	$ 330,967
Cost of revenues:
Amortization of intangible assets	2,984	7,516	8,337
Total cost of revenues	97,168	101,074	107,851
Gross profit	230,723	286,108	223,116
Operating expenses:
Research and development	107,116	112,070	88,899
Sales and marketing	31,098	38,683	33,398
General and administrative	42,653	56,979	49,386
Amortization of intangible assets	11,516	12,690	12,544
Restructuring and other costs, net	8,965	5,092	16,458
Goodwill impairment	213,720
Total operating expenses	415,068	225,514	200,685
(Loss) income from operations	(184,345)	60,594	22,431
Interest income	1,007	109	585
Interest expense	(14,394)	(13,997)	(22,737)
Other (expense) income, net	(1,019)	1,563	(23,319)
(Loss) income before income taxes	(198,751)	48,269	(23,040)
Provision for (benefit from) income taxes	112,075	2,376	(4,724)
Net (loss) income	$ (310,826)	$ 45,893	$ (18,316)
Net (loss) income per share:
Basic	$ (7.93)	$ 1.22	$ (0.50)
Diluted	$ (7.93)	$ 1.17	$ (0.50)
Weighted-average common share outstanding:
Basic	39,187	37,752	36,428
Diluted	39,187	39,289	36,428
License
Revenues:
Total revenues	$ 158,610	$ 202,183	$ 164,268
Cost of revenues:
Total cost of revenues	2,698	3,544	2,783
Connected Services
Revenues:
Total revenues	85,571	109,534	97,469
Cost of revenues:
Total cost of revenues	22,722	25,727	31,768
Professional Services
Revenues:
Total revenues	83,710	75,465	69,230
Cost of revenues:
Total cost of revenues	$ 68,764	$ 64,287	$ 64,963

CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Statement Of Income And Comprehensive Income [Abstract]
Net (loss) income	$ (310,826)	$ 45,893	$ (18,316)
Other comprehensive (loss) income:
Foreign currency translation adjustments	(37,179)	(1,980)	15,805
Pension adjustments, net	2,233	(87)	1,178
Unrealized loss on available-for-sale securities	(425)	(10)	(1)
Total other comprehensive (loss) income	(35,371)	(2,077)	16,982
Comprehensive (loss) income	$ (346,197)	$ 43,816	$ (1,334)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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+ Details

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Current assets:
Cash and cash equivalents	$ 94,847	$ 128,428
Marketable securities	20,317	30,435
Accounts receivable, net of allowances of $157 and $395 at September 30, 2022 and September 30, 2021, respectively	45,073	45,560
Deferred costs	7,098	6,095
Prepaid expenses and other current assets	60,184	76,530
Total current assets	227,519	287,048
Long-term marketable securities	11,584	7,339
Property and equipment, net	37,707	31,505
Deferred costs	22,451	31,702
Operating lease right of use assets	14,702	14,901
Goodwill	890,802	1,128,511
Intangible assets, net	9,700	25,348
Deferred tax assets	51,989	159,293
Other assets	52,039	20,081
Total assets	1,318,493	1,705,728
Current liabilities:
Accounts payable	10,372	11,636
Deferred revenue	72,662	78,394
Short-term operating lease liabilities	5,071	4,562
Short-term debt	10,938	6,250
Accrued expenses and other current liabilities	47,990	64,467
Total current liabilities	147,033	165,309
Long-term debt, net of discounts and issuance costs	259,436	265,093
Deferred revenue, net of current portion	165,972	198,343
Long-term operating lease liabilities	11,375	12,216
Other liabilities	21,727	32,822
Total liabilities	605,543	673,783
Commitments and contingencies (Note 13)
Stockholders' Equity:
Common stock, $0.01 par value, 560,000 shares authorized as of September 30, 2022; 39,430 and 38,025 shares issued and outstanding as of September 30, 2022 and September 30, 2021, respectively	394	381
Accumulated other comprehensive (loss) income	(33,737)	1,634
Additional paid-in capital	1,029,542	1,002,353
(Accumulated deficit) Retained earnings	(283,249)	27,577
Total stockholders' equity	712,950	1,031,945
Total liabilities and stockholders' equity	$ 1,318,493	$ 1,705,728

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Statement Of Financial Position [Abstract]
Accounts receivable allowances	$ 157	$ 395
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	560,000,000	560,000,000
Common stock, shares issued	39,430,000	38,025,000
Common stock, shares outstanding	39,430,000	38,025,000

CONSOLIDATED STATEMENTS OF EQUITY - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in-Capital	(Accumulated Deficit) Retained Earnings	Net Parent Investment	Accumulated Other Comprehensive (Loss) Income
Balance at Sep. 30, 2019	$ 1,068,128				$ 1,097,127	$ (28,999)
Net (loss) income	(18,316)			$ (18,316)
Other comprehensive income (loss)	16,982					16,982
Distribution to Parent	(152,978)				(152,978)
Net (decrease) increase in net parent investment	9,630				(6,098)	15,728
Reclassification of net parent investment in Cerence			$ 938,051		$ (938,051)
Issuance of common stock at separation		$ 364	(364)
Issuance of common stock at separation, (in shares)		36,391
Issuance of common stock	1,318	$ 7	1,311
Issuance of common stock, (in shares)		706
Stock withheld to cover tax withholdings requirements upon stock vesting	(9,369)	$ (2)	(9,367)
Stock withheld to cover tax withholdings requirements upon stock vesting, (in shares)		(255)
Convertible Senior Notes conversion feature	14,371		14,371
Stock-based compensation	30,305		30,305
Balance at Sep. 30, 2020	960,071	$ 369	974,307	(18,316)		3,711
Balance (in shares) at Sep. 30, 2020		36,842
Net (loss) income	45,893			45,893
Other comprehensive income (loss)	(2,077)					(2,077)
Issuance of common stock	11,522	$ 17	11,505
Issuance of common stock, (in shares)		1,718
Stock withheld to cover tax withholdings requirements upon stock vesting	(46,009)	$ (5)	(46,004)
Stock withheld to cover tax withholdings requirements upon stock vesting, (in shares)		(535)
Stock-based compensation	62,545		62,545
Balance at Sep. 30, 2021	1,031,945	$ 381	1,002,353	27,577		1,634
Balance (in shares) at Sep. 30, 2021		38,025
Net (loss) income	(310,826)			(310,826)
Other comprehensive income (loss)	(35,371)					(35,371)
Issuance of common stock	36,062	$ 14	36,048
Issuance of common stock, (in shares)		1,584
Stock withheld to cover tax withholdings requirements upon stock vesting	(49,003)	$ (1)	(49,002)
Stock withheld to cover tax withholdings requirements upon stock vesting, (in shares)		(179)
Stock-based compensation	40,143		40,143
Balance at Sep. 30, 2022	$ 712,950	$ 394	$ 1,029,542	$ (283,249)		$ (33,737)
Balance (in shares) at Sep. 30, 2022		39,430

CONSOLIDATED STATEMENTS OF EQUITY (Parenthetical) $ in Thousands	12 Months Ended
	Sep. 30, 2020 USD ($)
Statement Of Stockholders Equity [Abstract]
Convertible senior notes, net of taxes	$ 4,678
Convertible senior notes, issuance costs	$ 627

CONSOLIDATED AND COMBINED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net (loss) income	$ (310,826)	$ 45,893	$ (18,316)
Adjustments to reconcile net (loss) income to net cash (used in) provided by operations:
Depreciation and amortization	23,939	29,661	30,041
(Benefit from) provision for credit loss reserve	(413)	(415)	704
Stock-based compensation	28,076	60,555	47,285
Non-cash interest expense	5,281	5,013	5,286
Loss on debt extinguishment		0	(19,279)
Deferred tax provision (benefit)	97,287	(4,419)	(10,568)
Goodwill impairment	213,720
Other	6,115	(606)
Changes in operating assets and liabilities:
Accounts receivable	(6,590)	5,751	15,154
Prepaid expenses and other assets	(33,756)	(30,661)	(30,311)
Deferred costs	4,654	6,984	(1,381)
Accounts payable	157	3,411	(2,430)
Accrued expenses and other liabilities	(1,479)	(1,125)	26,040
Deferred revenue	(28,303)	(45,653)	(35,994)
Net cash (used in) provided by operating activities	(2,138)	74,389	44,789
Cash flows from investing activities:
Capital expenditures	(17,446)	(12,047)	(19,012)
Purchases of marketable securities	(31,757)	(42,471)	(11,663)
Sale and maturities of marketable securities	37,203	16,350
Purchase of debt securities		(2,000)
Payments for equity securities	(584)	(2,563)
Other investing activities	2,019	1,100
Net cash used in investing activities	(10,565)	(41,631)	(30,675)
Cash flows from financing activities:
Net transactions with Parent		0	12,964
Distributions to Parent		0	(152,978)
Proceeds from long-term debt, net of discount		0	547,719
Payments for long-term debt issuance costs		(520)	(6,402)
Principal payments of long-term debt	(6,250)	(6,252)	(271,563)
Common stock repurchases for tax withholdings for net settlement of equity awards	(49,003)	(45,769)	(9,369)
Principal payments of lease liabilities arising from a finance leases	(415)	(486)	(136)
Proceeds from the issuance of common stock	36,062	11,522	1,318
Net cash (used in) provided by financing activities	(19,606)	(41,505)	121,553
Effects of exchange rate changes on cash and cash equivalents	(1,272)	1,108	400
Net change in cash and cash equivalents	(33,581)	(7,639)	136,067
Cash and cash equivalents at beginning of year	128,428	136,067
Cash and cash equivalents at end of year	94,847	128,428	136,067
Supplemental information:
Cash paid for income taxes	12,273	6,177	2,181
Cash paid for interest	$ 9,088	$ 9,550	$ 14,733

Organization

12 Months Ended

Sep. 30, 2022

Organization Consolidation And Presentation Of Financial Statements [Abstract]

Organization

1. Organization

History

On October 1, 2019, (the “Distribution Date”), Nuance Communications, Inc. (“Nuance” or “the Parent”), a leading provider of speech and language solutions for businesses and consumers around the world, completed the complete legal and structural separation and distribution to its stockholders of all of the outstanding shares of our common stock, and its consolidated subsidiaries, in a tax free spin-off (the “Spin-Off”). The distribution was made in the amount of one share of our common stock for every eight shares of Nuance common stock (the “Distribution”) owned by Nuance’s stockholders as of 5:00 p.m. Eastern Time on September 17, 2019, the record date of the Distribution.

In connection with the Distribution, on September 30, 2019, we filed an Amended and Restated Certificate of Incorporation with the Secretary of State of the State of Delaware, which became effective on October 1, 2019. Our Amended and Restated By-laws also became effective on October 1, 2019. On October 2, 2019, our common stock began regular-way trading on the Nasdaq Global Select Market under the ticker symbol CRNC.

Business

Cerence Inc. (referred to in this Annual Report on Form 10-K as “we,” “our,” “us,” “ourselves,” the “Company” or “Cerence”) is a global, premier provider of AI-powered assistants and innovations for connected and autonomous vehicles. Our customers include all major automobile original equipment manufacturers (“OEMs”), or their tier 1 suppliers worldwide. We deliver our solutions on a white-label basis, enabling our customers to deliver customized virtual assistants with unique, branded personalities and ultimately strengthening the bond between automobile brands and end users. We generate revenue primarily by selling software licenses and cloud-connected services. In addition, we generate professional services revenue from our work with OEMs and suppliers during the design, development and deployment phases of the vehicle model lifecycle and through maintenance and enhancement projects.

COVID-19 Update

In March 2020, the World Health Organization characterized COVID-19 as a pandemic. In an effort to contain COVID-19 or slow its spread, governments around the world have enacted various measures, some of which have been subsequently rescinded, modified or reinstated, including orders to close all businesses not deemed “essential,” isolate residents to their homes or places of residence, and practice social distancing.

We have taken numerous steps in our approach to addressing the COVID-19 pandemic, and we will continue to closely monitor ongoing developments in connection with the COVID-19 pandemic and its impact on our business.

The full extent to which the ongoing COVID-19 pandemic adversely affects our financial performance will depend on future developments, many of which are outside of our control, are highly uncertain and cannot be predicted, including, but not limited to, the duration and scope of the pandemic, its severity, the emergence of new variants of the virus, such as Omicron; the development and availability of effective treatments and vaccines, the speed at which vaccines are administered, and how quickly and to what extent normal economic and operating conditions can resume.

The COVID-19 pandemic has resulted in, and may continue to result in, additional governmental restrictions and regulations, which has adversely affected, and may continue to adversely affect our business and financial results. For example, pandemic related lockdowns have been experienced in China during fiscal year 2022, which resulted in loss of automotive production. We have seen, and anticipate that we will continue to see, supply chain challenges in the automotive industry related to semiconductor devices that are used in automobiles. The current macroeconomic conditions have also increased competition for qualified employees in our industry, particularly for members of our professional service teams, and we, along with automotive OEMs, face significant competition in hiring and retaining them. In addition, a recession, depression or other sustained adverse market impact resulting from COVID-19 could materially and adversely affect our business, our access to needed capital and liquidity, and the value of our common stock. Even after the COVID-19 pandemic has lessened or subsided, we may continue to experience adverse impacts on our business and financial performance as a result of its global economic impact.

Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

. Summary of Significant Accounting Policies

(a) Basis of Presentation

The accompanying consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) and the rules and regulations of the Securities and Exchange Commission (“SEC”). The consolidated financial statements reflect all adjustments considered necessary for a fair presentation of the consolidated results of operations and financial position for the fiscal years presented. All such adjustments are of a normal recurring nature.

(b) Principles of Consolidation

The accompanying consolidated financial statements include the accounts of the Company, as well as those of our wholly owned subsidiaries. All significant intercompany transactions and balances are eliminated in consolidation.

The Consolidated Financial Statements are prepared in accordance with GAAP, which requires management to make estimates and assumptions. These estimates, judgments and assumptions can affect the reported amounts in the financial statements and the footnotes thereto. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, assumptions and judgments. Significant estimates inherent to the preparation of financial statements include: revenue recognition; the allowances for credit losses and doubtful accounts; accounting for deferred costs; accounting for internally developed software; the valuation of goodwill and intangible assets; accounting for business combinations; accounting for stock-based compensation; accounting for income taxes; accounting for leases; accounting for convertible debt; and loss contingencies. We base our estimates on historical experience, market participant fair value considerations, projected future cash flows, and various other factors that are believed to be reasonable under the circumstances. Actual amounts could differ significantly from these estimates.

(d) Revenue Recognition

We primarily derive revenue from the following sources: (1) royalty-based software license arrangements, (2) connected services, and (3) professional services. Revenue is reported net of applicable sales and use tax, value-added tax and other transaction taxes imposed on the related transaction including mandatory government charges that are passed through to our customers. We account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

Our arrangements with customers may contain multiple products and services. We account for individual products and services separately if they are distinct—that is, if a product or service is separately identifiable from other items in the contract and if a customer can benefit from it on its own or with other resources that are readily available to the customer.

We currently recognize revenue after applying the following five steps:

•

identification of the contract, or contracts, with a customer;

•

identification of the performance obligations in the contract, including whether they are distinct within the context of the contract;

•

determination of the transaction price, including the constraint on variable consideration;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when, or as, performance obligations are satisfied.

We allocate the transaction price of the arrangement based on the relative estimated SSP of each distinct performance obligation. In determining SSP, we maximize observable inputs, when possible. Since prices vary from customer to customer based on customer relationship, volume discount and contract type, in instances where the SSP is not directly observable, we estimate SSP by considering a number of data points, including cost of developing and supplying each performance obligation; types of offerings; and gross margin objectives and pricing practices, such as contractually stated prices, discounts offered, and applicable price lists.

We only include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASC 606, which we estimate based on historical return experience and other relevant factors, and record a corresponding refund liability as a component of accrued expenses and other current liabilities. Other forms of contingent revenue or variable consideration are infrequent.

Revenue is recognized when control of these product or services are transferred to our customers, in an amount that reflects the consideration we expect to be entitled to in exchange for those products or services.

the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set-up fees nor other upfront fees paid by our customers to represent a financing component.

Reimbursements for out-of-pocket costs generally include, but are not limited to, costs related to transportation, lodging and meals. Revenue from reimbursed out-of-pocket costs is accounted for as variable consideration.

(e) Business Combinations

We determine and allocate the purchase price of an acquired company to the tangible and intangible assets acquired and liabilities assumed as of the date of acquisition. Results of operations and cash flows of acquired companies are included in our operating results from the date of acquisition. The purchase price allocation process requires us to use significant estimates and assumptions, which include:

•

estimated fair values of intangible assets;

•

estimated fair values of legal performance commitments to customers, assumed from the acquiree under existing contractual obligations (classified as deferred revenue);

•

estimated income tax assets and liabilities assumed from the acquiree;

•

estimated fair value of pre-acquisition contingencies assumed from the acquiree; and

•

estimated fair value of any contingent consideration which is established at the acquisition date and included in the total purchase price. The contingent consideration is then adjusted to fair value, with any measurement-period adjustment recorded against goodwill. Adjustments identified subsequent to the measurement period are recorded within acquisition-related costs.

While we use our best estimates and assumptions as part of the purchase price allocation process to accurately value assets acquired and liabilities assumed at the business combination date, our estimates and assumptions are inherently uncertain and subject to refinement. As a result, during the measurement period, which is generally one year from the acquisition date, any adjustment to the assets acquired and liabilities assumed is recorded against goodwill in the period in which the amount is determined. Any adjustment identified subsequent to the measurement period is included in operating results in the period in which the amount is determined.

(f) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

(g) Marketable Securities

Marketable securities consist of commercial paper, government securities and corporate bonds. We classify our marketable securities as available-for-sale at the time of purchase and reevaluate such classification as of each balance sheet date. We may sell these securities at any time for use in current operations even if they have not yet reached maturity. We classify our marketable securities as either short-term or long-term based on the nature of each security. We record marketable securities at fair value, with the unrealized gains or losses included within Accumulated other comprehensive (loss) income on the Consolidated Balance Sheets until realized. Interest income earned from our marketable securities is reported within Interest income on the Consolidated Statements of Operations. We evaluate our marketable securities to assess whether those with unrealized loss positions are other than temporarily impaired. We consider impairment to be other than temporary if they are related to deterioration in credit risk or if it is likely we will sell the securities before the recovery of their cost basis. Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in Other income (expense), net on the Consolidated Statements of Operations.

(h) Goodwill

Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. Goodwill is not amortized but tested annually for impairment or when indicators of impairment are present. The test for goodwill impairment involves a qualitative assessment of impairment indicators. If indicators are present, a quantitative test of impairment is performed. Goodwill impairment, if any, is determined by comparing the reporting unit’s fair value to its carrying value. An impairment loss is recognized in an amount equal to the excess of the reporting unit’s carrying value over its fair value, up to the amount of goodwill allocated to the reporting unit. Goodwill is tested for impairment annually on July 1, the first day of the fourth quarter of the fiscal year. There is no goodwill impairment for the years ended September 30, 2021, and 2020.

We believe our Chief Executive Officer (“CEO”) is our chief operating decision maker (“CODM”). Our CEO approves all major decisions, including reorganizations and new business initiatives. Our CODM reviews routine consolidated operating information and makes decisions on the allocation of resources at this level, as such, we have concluded that we have one operating segment.

For the purpose of testing goodwill for impairment, all goodwill acquired in a business combination is assigned to one or more reporting units. A reporting unit represents an operating segment or a component within an operating segment for which discrete financial information is available and is regularly reviewed by segment management for performance assessment and resource allocation. Components of similar economic characteristics are aggregated into one reporting unit for the purpose of goodwill impairment assessment. Reporting units are identified annually and re-assessed periodically for recent acquisitions or any changes in segment reporting structure. Upon consideration of our components, we have concluded that our goodwill is associated with one reporting unit.

The fair value of a reporting unit is generally determined using a combination of the income approach and the market approach. For the income approach, fair value is determined based on the present value of estimated future after-tax cash flows, discounted at an appropriate risk-adjusted rate. We use our internal forecasts to estimate future after-tax cash flows and estimate the long-term growth rates based on our most recent views of the long-term outlook for each reporting unit. Actual results may differ from those assumed in our forecasts. We derive our discount rates using a capital asset pricing model and analyzing published rates for industries relevant to our reporting units to estimate the weighted average cost of capital. We adjust the discount rates for the risks and uncertainty inherent in the respective businesses and in our internally developed forecasts. For the market approach, we use a valuation technique in which values are derived based on valuation multiples of comparable publicly traded companies. We assess each valuation methodology based upon the relevance and availability of the data at the time we perform the valuation and weight the methodologies appropriately.

Due to macroeconomic conditions, we concluded that indicators of impairment were present and performed an interim quantitative impairment test as of June 30, 2022. The fair value of our reporting unit was determined using a combination of the income approach and the market approach. We weighted the methodologies appropriately to estimate a fair value of approximately $995 million as of June 30, 2022. The estimated fair value exceeded the $950 million carrying value of our reporting unit by approximately $45 million, or 5% of the carrying value. Based upon the results of the impairment test, no goodwill impairment was recorded as of June 30, 2022.

On July 1, 2022, we completed the annual impairment testing of our goodwill. We elected to rely on a qualitative assessment and as a result we determined it is more likely than not that the fair value of our reporting unit is greater than its carrying amount.

At September 30, 2022, we performed a quantitative impairment test. We concluded indicators of impairment were present due to the current macroeconomic conditions, including continued declines in our stock price. The fair value of our reporting unit was determined using a combination of the income approach and the market approach. For the income approach, fair value was determined based on the present value of estimated future after-tax cash flows using our multi-year target plan, discounted at an appropriate risk-adjusted rate. For the market approach, we used a valuation technique in which values were derived based on valuation multiples of comparable publicly traded companies.

We weighted the methodologies appropriately to estimate a fair value of approximately $713.0 million as of September 30, 2022. The carrying value of our reporting unit exceeded the estimated fair value. Based upon the results of the impairment test, we recorded a goodwill impairment charge of $213.7 million within the Consolidated Statement of Operations.

(i) Long-Lived Assets with Definite Lives

Our long-lived assets consist principally of technology and patents, customer relationships, internally developed software, property and equipment. Customer relationships are amortized over their estimated economic lives based on the pattern of economic benefits expected to be generated from the use of the asset. Other definite-lived assets are amortized over their estimated economic lives using the straight-line method. The remaining useful lives of long-lived assets are re-assessed periodically for any events and circumstances that may change the future cash flows expected to be generated from the long-lived asset or asset group.

Internally developed software consists of capitalized costs incurred during the application development stage, which include costs to design the software configuration and interfaces, coding, installation and testing. Costs incurred during the preliminary project stage, along with post-implementation stages of internally developed software, are expensed as incurred. Internally developed software costs that have been capitalized are typically amortized over the estimated useful life, commencing with the date when an asset is ready for its intended use. Equipment is stated at cost and depreciated over the estimated useful life. Leasehold improvements are depreciated over the shorter of the related remaining lease term or the estimated useful life. Depreciation is computed using the straight-line method. Repair and maintenance costs are expensed as incurred. The cost and related accumulated depreciation of sold or retired assets are removed from the accounts and any gain or loss is included in the results of operations for the period.

Long-lived assets with definite lives are tested for impairment whenever events or changes in circumstances indicate the carrying value of a specific asset or asset group may not be recoverable. We assess the recoverability of long-lived assets with definite lives at the asset group level. Asset groups are determined based upon the lowest level for which identifiable cash flows are largely independent of the cash flows of other assets and liabilities. When the asset group is also a reporting unit, goodwill assigned to the reporting unit is also included in the carrying amount of the asset group. For the purpose of the recoverability test, we compare the total undiscounted future cash flows from the use and disposition of the assets with its net carrying amount. When the carrying value of the asset group exceeds the undiscounted future cash flows, the asset group is deemed to be impaired. The amount of the impairment loss represents the excess of the asset or asset group’s carrying value over its estimated fair value, which is generally determined based upon the present value of estimated future pre-tax cash flows that a market participant would expect from use and disposition of the long-lived asset or asset group. There was no impairment of long-lived assets during the years ended September 30, 2022, 2021, and 2020.

(j) Allowance for Credit Losses

Fiscal year 2022 and 2021

We are exposed to credit losses primarily through our sales of software licenses and services to customers. We determine credit ratings for each customer in our portfolio based upon public information and information obtained directly from our customers. A credit limit for each customer is established and in certain cases we may require collateral or prepayment to mitigate credit risk. Our expected loss methodology is developed using historical collection experience, current customer credit information, current and future economic and market conditions and a review of the current status of the customer's account balances. We monitor our ongoing credit

exposure through reviews of customer balances against contract terms and due dates, current economic conditions, and dispute resolution. Estimated credit losses are written off in the period in which the financial asset is no longer collectible.

The change in the allowance for credit losses for the fiscal year ended September 30, 2022 and 2021 is as follows (dollars in thousands):


	Allowance for Credit Losses
Balance as of September 30, 2020	$	1,394
Credit loss provision		(415	)
Write-offs, net of recoveries		(112	)
Foreign exchange impact on ending balance		12
Balance as of September 30, 2021	$	879
Credit loss provision		(431	)
Write-offs, net of recoveries		18
Foreign exchange impact on ending balance		(95	)
Balance as of September 30, 2022	$	371

Fiscal years 2020

We record allowances for doubtful accounts for the estimated probable losses on uncollected accounts receivable. The allowance is based upon the credit worthiness of our customers, our historical experience, the age of the receivable, and current market and economic conditions. Receivables are written off against these allowances in the period they are determined to be uncollectible. For the year ended September 30, 2020, the activity related to the allowance for doubtful accounts was as follows (dollars in thousands):


	Allowance for Doubtful Accounts
Balance at September 30, 2019		865
Bad debt provisions		704
Write-offs, net of recoveries		(175	)
Balance at September 30, 2020	$	1,394

(k) Research and Development

Research and development (“R&D”) costs related to software that is or will be sold or licensed externally to third-parties, or for which a substantive plan exists to sell or license such software in the future, incurred subsequent to the establishment of technological feasibility, but prior to the general release of the product, are capitalized and amortized to cost of revenue over the estimated useful life of the related products. We have determined that technological feasibility is reached shortly before the general release of the software products. Costs incurred after technological feasibility is established have not been material. R&D costs are otherwise expensed as incurred.

(l) Income Taxes

We account for income taxes using the assets and liabilities method, as prescribed by ASC No. 740, Income Taxes, or ASC 740.

Deferred Taxes

Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the financial statement carrying amount of assets and liabilities and their respective tax bases. The method also requires the recognition of future tax benefits such as net operating loss carryforwards, to the extent that realization of such benefits is more likely than not after consideration of all available evidence. As the income tax returns are not due and filed until after the completion of our annual financial reporting requirements, the amounts recorded for the current period reflect estimates for the tax-based activity for the period. In addition, estimates are often required with respect to, among other things, the appropriate state and foreign income tax rates to use, the potential utilization of operating loss carry-forwards and valuation allowance required, if any, for tax assets that may not be realizable in the future. Tax laws and tax rates vary substantially in these jurisdictions and are subject to change given the political and economic climate. We report and pay income tax based on operational results and applicable law. Our tax provision contemplates tax rates currently in effect to determine both our currency and deferred tax positions.

Any significant fluctuations in rates or changes in tax laws could cause our estimates of taxes we anticipate either paying or recovering in the future to change. Such changes could lead to either increases or decreases in our effective tax rates.

We have historically estimated the future tax consequences of certain items, including accruals that cannot be deducted for income tax purposes until such expenses are paid or the related assets are disposed. We believe the procedures and estimates used in our accounting for income taxes are reasonable and in accordance with established tax law. The income tax estimates used have not resulted in material adjustments to income tax expense in subsequent period when the estimates are adjusted to the actual filed tax return amounts.

Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the fiscal years in which those temporary differences are expected to be recovered or settled. With respect to earnings expected to be indefinitely reinvested offshore, we do not accrue tax for the repatriations of such foreign earnings.

Valuation Allowance

We regularly review our deferred tax assets for recoverability considering historical profitability, projected future taxable income, the expected timing of the reversals of existing temporary differences and tax planning strategies. In assessing the need for a valuation allowance, we consider both positive and negative evidence related to the likelihood of realization of the deferred tax assets. The weight given to the positive and negative evidence is commensurate with the extent to which the evidence may be objectively verified. If positive evidence regarding projected future taxable income, exclusive of reversing taxable temporary differences, existed it would be difficult for it to outweigh objective negative evidence of recent financial reporting losses.

During the third quarter of fiscal year 2022, we established a valuation allowance of $107.6 million against our deferred tax assets in the Netherlands, which consists of tax amortizable intellectual property and net operating loss carryforwards. We determined we had new negative evidence, based on updates to transfer pricing arrangements and changes to the earnings guidance for fiscal year 2022. We will continue to maintain a valuation allowance against our Netherlands deferred tax assets until we believe it is more likely than not that these assets will be realized. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more likely than not standard, the valuation allowance would be reversed accordingly in the period that such determination is made.

Uncertain Tax Positions

We operate in multiple jurisdictions through wholly owned subsidiaries and our global structure is complex. The estimates of our uncertain tax positions involve judgments and assessment of the potential tax implications related to legal entity restructuring, intercompany transfer and acquisition or divestures. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. Our tax positions are subject to audit by taxing authorities across multiple global jurisdictions and the resolution of such audits may span multiple years. Tax laws are complex and often subject to varied interpretations, accordingly, the ultimate outcome with respect to taxes we may own may differ from the amounts recognized.

(m) Accumulated Other Comprehensive (Loss) Income

The components of accumulated other comprehensive (loss) income, reflected in the Consolidated Statements of Equity, consists of the following (dollars in thousands):


	September 30,
	2022			2021
Foreign currency translation adjustments	$	(33,895	)	$	3,284
Net unrealized gains (losses) on post-retirement benefits		594			(1,639	)
Net unrealized losses on available-for-sale securities		(436	)		(11	)
Accumulated other comprehensive (loss) income	$	(33,737	)	$	1,634

No income tax provisions or benefits are recorded for foreign currency translation adjustments as the undistributed earnings in our foreign subsidiaries are expected to be indefinitely reinvested.

(n) Concentration of Risk

Financial instruments that potentially subject us to significant concentrations of credit risk primarily consist of trade accounts receivable. We perform ongoing credit evaluations of our customers’ financial condition and limit the amount of credit extended when deemed appropriate. One customer accounted for 17.4% of our Accounts receivable, net balance at September 30, 2022 . One customer accounted for 12.1% of our Accounts receivable, net balance at September 30, 2021.

(o) Foreign Currency Translation

The functional currency of a foreign subsidiary is generally the local currency. We translate the financial statements of foreign subsidiaries to U.S. dollars using month-end exchange rates for assets and liabilities, and average rates for the reporting period for revenues, costs, and expenses. We record translation gains and losses in Accumulated other comprehensive (loss) income as a component of stockholders’ equity. We record net foreign exchange transaction gains and losses resulting from the conversion of the transaction currency to the functional currency within Other income (expense), net. Foreign currency transaction (gains) losses for the fiscal years ended September 30, 2022, 2021 and 2020 were $0.1 million, ($1.7) million, and $2.4 million, respectively.

(p) Net Parent Investment

In the Consolidated Statements of Equity, net parent investment represents the Parent’s historical investment in the Cerence business, accumulated net earnings after taxes and the net effect of transactions with, and allocations from, the Parent.

(q) Stock-Based Compensation

Stock-based compensation primarily consists of restricted stock units with service or market/performance conditions. Equity awards are measured at the fair market value of the underlying stock at the grant date. We recognize stock compensation expense using the straight-line attribution method over the requisite service period. We record forfeitures as they occur. For performance-based restricted stock units, the compensation cost is recognized based on the number of units expected to vest upon the achievement of the performance conditions. Shares are issued on the vesting dates net of the applicable statutory tax withholding to be paid by us on behalf of our employees. As a result, fewer shares are issued to the employee than the number of awards outstanding. We record a liability for the tax withholding to be paid by us as a reduction to Additional paid-in capital. We record any income tax effect related to stock-based awards through the Consolidated Statements of Operations. Excess tax benefits are recognized as deferred tax assets upon settlement and are subject to regular review for valuation allowance.

(r) Leases

We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as financing leases. We determine if contracts with vendors represent a lease or have a lease component under GAAP at contract inception. Our leases have remaining terms ranging from less than one year to six years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

Operating lease right of use assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the lease commencement date. As our leases generally do not provide an implicit rate, we use an estimated incremental borrowing rate in determining the present value of future payments. The incremental borrowing rate represents an estimate of the interest rate we would incur at lease commencement to borrow an amount equal to the lease payments on a collateralized basis over the term of a lease within a particular location and currency environment.

Operating leases are included in Operating lease right of use assets, Short-term operating lease liabilities, and Long-term operating lease liabilities on our Consolidated Balance Sheets as of September 30, 2022 and 2021. Finance leases are included in Property and equipment, net, Accrued expenses and other current liabilities, and Other liabilities on our Consolidated Balance Sheets as of September 30, 2022 and 2021.

Lease costs for minimum lease payments is recognized on a straight-line basis over the lease term. For operating leases, costs are included within Cost of revenues, Research and development, Sales and marketing, and General and administrative lines on the Consolidated Statements of Operations. For financing leases, amortization of the finance right of use assets is included within Research and Development, Sales and marketing, and General and administrative lines on the Consolidated Statements of Operations, and interest expense is included within Interest expense.

For operating leases, the related cash payments are included in the operating cash flows on the Consolidated Statements of Cash Flows. For financing leases, the related cash payments for the principal portion of the lease liability are included in the financing cash

flows on the Consolidated Statement of Cash Flows and the related cash payments for the interest portion of the lease liability are included within the operating section of the Consolidated Statement of Cash Flows.

(s) Convertible Debt

We bifurcate the debt and equity (the contingently convertible feature) components of our convertible debt instruments in a manner that reflects our nonconvertible debt borrowing rate at the time of issuance. The equity components of our convertible debt instruments are recorded within stockholders’ equity with an allocated issuance premium or discount. The debt issuance premium or discount is amortized to Interest expense in our Consolidated Statements of Operations using the effective interest method over the expected term of the convertible debt.

We assess the short-term and long-term classification of our convertible debt on each balance sheet date. Whenever the holders have a contractual right to convert, the carrying amount of the convertible debt is reclassified to current liabilities, with the corresponding equity component classified from additional paid-in capital to mezzanine equity, as needed.

(t) Net (Loss) Income Per Share

Basic net (loss) income per share is computed using the weighted-average number of common shares outstanding during the period. Diluted net (loss) income per share is computed using the weighted-average number of common shares, giving effect to potentially dilutive securities outstanding during the period. Potentially dilutive securities consist of restricted stock units, contingently issuable shares, and potential issuance of stock upon conversion of our Notes, as more fully described in Note 17. The dilutive effect of the Notes is reflected in net (loss) income per share by application of the “if-converted” method. The “if-converted” method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net (loss) income per share, we would assume conversion of the Notes at a ratio of 26.7271 shares of our common stock per $1,000 principal amount of the Notes. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding.

(u) Recently Adopted Accounting Standards

None.

(v) Issued Accounting Standards Not Yet Adopted

From time to time, new accounting pronouncements are issued by the FASB and are adopted by us as of the specified effective dates. Unless otherwise discussed, such pronouncements did not have or will not have a significant impact on our consolidated financial position, results of operations or cash flows, or do not apply to our operations.

In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, (“ASU 2020-04”). The update provides optional guidance for a limited period of time to ease the potential burden in accounting for (or recognizing the effects of) contract modifications on financial reporting, caused by reference rate reform. ASU 2020-04 is effective for all entities as of March 12, 2020 through December 31, 2022. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements.

In August 2020, the FASB issued ASU No. 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, (“ASU 2020-06”). ASU 2020-06 simplifies the accounting for debt with conversion options, revises the criteria for applying the derivatives scope exception for contracts in an entity’s own equity, and improves the consistency for the calculation of earnings per share. The guidance is effective for annual reporting periods and interim periods within those annual reporting periods beginning after December 15, 2021, our fiscal year 2023. ASU 2020-06 is applicable to our 3.00% Senior Convertible Notes due 2025.

We will adopt the new standard effective October 1, 2022 under the modified retrospective transition approach. We are currently evaluating the impact of ASU 2020-06 relating to Long-term debt, Additional paid-in capital, and Other liabilities. We do not expect the adoption of the new standard to have a material impact on our consolidated statement of operations and cash flows. We expect applying ASU 2020-06 will have a cumulative-effect adjustment to Accumulated deficit as of October 1, 2022.

Revenue Recognition

12 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

account for a contract when both parties have approved and committed to the contract, the rights of the parties are identified, payment terms are identified, the contract has commercial substance and collectability of consideration is probable.

We recognize revenue after applying the following five steps:

•

identification of the contract, or contracts, with a customer;

•

identification of the performance obligations in the contract, including whether they are distinct within the context of the contract;

•

determination of the transaction price, including the constraint on variable consideration;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when, or as, performance obligations are satisfied.

We only include estimated amounts in the transaction price to the extent it is probable that a significant reversal of cumulative revenue recognized will not occur when the uncertainty associated with the variable consideration is resolved. We reduce transaction prices for estimated returns and other allowances that represent variable consideration under ASC 606, which we estimate based on historical return experience and other relevant factors, and record a corresponding refund liability as a component of Accrued expenses and other current liabilities. Other forms of contingent revenue or variable consideration are infrequent.

We assess the timing of the transfer of products or services to the customer as compared to the timing of payments to determine whether a significant financing component exists. In accordance with the practical expedient in ASC 606-10-32-18, we do not assess the existence of a significant financing component when the difference between payment and transfer of deliverables is a year or less. If the difference in timing arises for reasons other than the provision of finance to either the customer or us, no financing component is deemed to exist. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our services, not to receive or provide financing from or to customers. We do not consider set-up fees nor other upfront fees paid by our customers to represent a financing component.

(a) Performance Obligations

Licenses

Embedded software and technology licenses operate without access to the external networks and information. Embedded licenses sold with non-distinct professional services to customize and/or integrate the underlying software and technology are accounted for as a combined performance obligation. Revenue from the combined performance obligation is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours.

Revenue from distinct embedded software and technology licenses, which do not require professional services to customize and/or integrate the software license, is recognized at the point in time when the software and technology is made available to the customer and control is transferred. For income statement presentation purposes, we separate distinct embedded license revenue from professional services revenue based on their relative SSPs.

Revenue from embedded software and technology licenses sold on a royalty basis, where the license of non-exclusive intellectual property is the predominant item to which the royalty relates, is recognized in the period the usage occurs in accordance with ASC 606-10-55-65(A).

For royalty arrangements that include fixed consideration related to a minimum usage guarantees, the fixed consideration is recognized when the software is made available to the customer.

Connected Services

Connected services, which allow our customers to use the hosted software over the contract period without taking possession of the software, are provided on a usage basis as consumed or on a fixed fee subscription basis. Subscription basis revenue represents a single promise to stand-ready to provide access to our connected services. Our connected services contract terms generally range from one to five years.

As each day of providing services is substantially the same and the customer simultaneously receives and consumes the benefits as access is provided, we have determined that our connected services arrangements are a single performance obligation comprised of a series of distinct services. These services include variable consideration, typically a function of usage. We recognize revenue as each distinct service period is performed (i.e., recognized as incurred).

Our connected service arrangements generally include services to develop, customize, and stand-up applications for each customer. In determining whether these services are distinct, we consider dependence of the cloud service on the up-front development and stand-up, as well as availability of the services from other vendors. We have concluded that the up-front development, stand-up and customization services are not distinct performance obligations, and as such, revenue for these activities is recognized over the period during which the cloud-connected services are provided, and is included within Connected services revenue. There can be instances where the customer purchases a software license that allows them to take possession of the software to enable hosting by the customer or a third-party. For such arrangements, the performance obligation of the license is completed at a point in time once the customer takes possession of the software.

Professional Services

Revenue from distinct professional services, including training, is recognized over time based upon the progress towards completion of the project, which is measured based on the labor hours already incurred to date as compared to the total estimated labor hours.

(b) Significant Judgments

Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Our license contracts often include professional services to customize and/or integrate the licenses into the customer’s environment. Judgment is required to determine whether the license is considered distinct and accounted for separately, or not distinct and accounted for together with professional services. Furthermore, hybrid contracts that contain both embedded and connected license and professional services are analyzed to determine if the products and services are distinct or have stand-alone functionality to determine the revenue treatment.

We allocate the transaction price of the arrangement based on the relative estimated SSP of each distinct performance obligation. Judgment is required to determine the SSP for each distinct performance obligation. In determining SSP, we maximize observable inputs, when possible. Since our prices vary from customer to customer based on customer relationship, volume discount and contract type, there are instances where the SSP is not directly observable. In such instances, we estimate SSP by considering a number of data points, including cost of developing and supplying each performance obligation; types of offerings; and gross margin objectives and pricing practices, such as contractually stated prices, discounts offered, and applicable price lists. These factors may vary over time, depending upon the unique facts and circumstances related to each deliverable. We review the SSP for each distinct performance obligation on a periodic basis, or when the underlying factors are deemed to have changed, and make updates when appropriate.

Revenues, classified by the major geographic region in which our customers are located, for the fiscal years ended September 30, 2022, 2021 and 2020 (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Revenues:
United States	$	100,564	$	135,033	$	129,338
Other Americas		99		175		16
Germany		74,550		114,936		100,674
Other Europe, Middle East and Africa		15,579		29,964		25,394
Japan		74,480		62,840		50,936
Other Asia-Pacific		62,619		44,234		24,609
Total net revenues	$	327,891	$	387,182	$	330,967

Revenues within the United States, Germany, and Japan accounted for more than 10% of revenue for all periods presented.

Revenues relating to two customers accounted for $55.4 million, or 16.9%, and $48.9 million, or 14.9% of revenue for the fiscal year ended September 30, 2022. During fiscal year 2022, certain existing variable long-term contracts with our largest customer were converted into minimum purchase commitment deals. The estimated future revenues related to these long-term contracts was previously included in our variable backlog, which includes estimated future revenues from variable forecasted revenues related to our embedded and connected business. The minimum purchase commitment deals accounted for $47.1 million of revenue for fiscal year 2022. The cash associated with these deals is expected to be collected over the distribution period, which could be up to five years.

Revenues relating to two customers accounted for $72.0 million, or 18.6%, and $41.6 million, or 10.8% of revenue for the fiscal year ended September 30, 2021. Revenues relating to one customer accounted for $76.9 million, or 23.2%, of revenue for the fiscal year ended September 30, 2020.

(d) Contract Acquisition Costs

In conjunction with the adoption of ASC 606, we are required to capitalize certain contract acquisition costs. The capitalized costs primarily relate to paid commissions. In accordance with the practical expedient in ASC 606-10-10-4, we apply a portfolio approach to estimate contract acquisition costs for groups of customer contracts. We elect to apply the practical expedient in ASC 340-40-25-4 and will expense contract acquisition costs as incurred where the expected period of benefit is one year or less. Contract acquisition costs are deferred and amortized on a straight-line basis over the period of benefit, which we have estimated to be, on average, between one and eight years. The period of benefit was determined based on an average customer contract term, expected contract renewals, changes in technology and our ability to retain customers, including canceled contracts. We assess the amortization term for all major transactions based on specific facts and circumstances. Contract acquisition costs are classified as current or noncurrent assets based on when the expense will be recognized. The current and noncurrent portions of contract acquisition costs are included in Prepaid expenses and other current assets, and in Other assets, respectively. As of September 30, 2022 and 2021, we had $8.3 million and $6.9 million of contract acquisition costs. We had amortization expense of $2.5 million, $1.9 million and $1.5 million related to these costs during the fiscal years ended September 30, 2022, 2021 and 2020. There was no impairment related to contract acquisition costs.

(e) Capitalized Contract Costs

We capitalize incremental costs incurred to fulfill our contracts that (i) relate directly to the contract, (ii) are expected to generate resources that will be used to satisfy our performance obligation under the contract, and (iii) are expected to be recovered through revenue generated under the contract. Our capitalized costs consist primarily of setup costs, such as costs to standup, customize and develop applications for each customer, which are incurred to satisfy our stand-ready obligation to provide access to our connected offerings. These contract costs are expensed to cost of revenue as we satisfy our stand-ready obligation over the contract term which we estimate to be between one and eight years, on average. The contract term was determined based on an average customer contract term, expected contract renewals, changes in technology, and our ability to retain customers, including canceled contracts. We classify these costs as current or noncurrent based on the timing of when we expect to recognize the expense. The current and noncurrent portions of capitalized contract fulfillment costs are presented as Deferred costs.

We had amortization expense of $10.2 million, $15.4 million and $12.0 million related to these costs during the fiscal years ended September 30, 2022, 2021 and 2020, respectively. There was no impairment related to contract costs capitalized.

(f) Trade Accounts Receivable and Contract Balances

We classify our right to consideration in exchange for deliverables as either a receivable or a contract asset. A receivable is a right to consideration that is unconditional (i.e. only the passage of time is required before payment is due). We present such receivables in Accounts receivable, net in our Consolidated Balance Sheets at their net estimated realizable value. We maintain an allowance for credit losses to provide for the estimated amount of receivables and contract assets that may not be collected. The allowance is based upon an assessment of customer creditworthiness, historical payment experience, the age of outstanding receivables and other applicable factors.

Our contract assets and liabilities are reported in a net position on a contract-by-contract basis at the end of each reporting period.

Contract assets include unbilled amounts from long-term contracts when revenue recognized exceeds the amount billed to the customer, and right to payment is not solely subject to the passage of time. The current and noncurrent portions of contract assets are

included in Prepaid expenses and other current assets and in Other assets, respectively. The table below shows significant changes in contract assets (dollars in thousands):


	Contract assets
Balance as of September 30, 2020	$	30,277
Revenues recognized but not billed		89,217
Amounts reclassified to accounts receivable, net		(60,351	)
Balance as of September 30, 2021	$	59,143
Revenues recognized but not billed		96,409
Amounts reclassified to accounts receivable, net		(67,765	)
Foreign exchange impact on ending balance		(11,495	)
Balance as of September 30, 2022	$	76,292

Our contract liabilities, which we present as Deferred revenue, consist of advance payments and billings in excess of revenues recognized. We classify deferred revenue as current or noncurrent based on when we expect to recognize the revenues. The table below shows significant changes in deferred revenue (dollars in thousands):


	Deferred revenue
Balance as of September 30, 2020	$	324,729
Amounts billed but not recognized		105,540
Revenue recognized		(153,532	)
Balance as of September 30, 2021	$	276,737
Amounts billed but not recognized		96,165
Revenue recognized		(130,770	)
Foreign exchange impact on ending balance		(3,498	)
Balance as of September 30, 2022	$	238,634

(g) Remaining Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied or partially unsatisfied at September 30, 2022 (dollars in thousands):


	Within One Year		Two to Five Years		Greater than Five Years		Total
Total revenue	$	157,549	$	145,949	$	19,957	$	323,455

The table above includes fixed backlogs and does not include variable backlogs derived from contingent usage-based activities, such as royalties and usage-based connected services.

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-URI https://asc.fasb.org/topic&trid=49130388

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130551-203045

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 13
-Subparagraph (b)(2)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130556-203045

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 9
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130550-203045

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (e)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (d)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 15
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130558-203045

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 12
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130554-203045

+ Details

Earnings Per Share

12 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Earnings Per Share

4. Earnings Per Share

Basic earnings per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period. Diluted earnings per share is computed by dividing net (loss) income by the weighted-average number of shares of common stock outstanding during the period, increased to include the number of shares of common stock that would have been outstanding had potential dilutive shares of common stock been issued. The dilutive effect of restricted stock units is reflected in diluted net (loss) income per share by applying the treasury stock method.

The dilutive effect of the Notes (as defined in Note 17) is reflected in net (loss) income per share by application of the “if-converted” method. The “if-converted” method is only assumed in periods where such application would be dilutive. In applying the “if-converted” method for diluted net (loss) income per share, we would assume conversion of the Notes at a ratio of 26.7271 shares

of our common stock per $1,000 principal amount of the Notes. Assumed converted shares of our common stock are weighted for the period the Notes were outstanding.

The following table presents the reconciliation of the numerator and denominator for calculating net (loss) income per share:


	September 30,
in thousands, except per share data	2022			2021		2020
Numerator:
Net (loss) income	$	(310,826	)	$	45,893	$	(18,316	)

Denominator:
Weighted average common shares outstanding - basic		39,187			37,752		36,428
Dilutive effect of restricted stock awards		-			1,405		-
Dilutive effect of contingently issuable stock awards		-			132		-
Weighted average common shares outstanding - diluted		39,187			39,289		36,428

Net (loss) income per common share:
Basic	$	(7.93	)	$	1.22	$	(0.50	)
Diluted	$	(7.93	)	$	1.17	$	(0.50	)

We exclude weighted-average potentially issuable shares from the calculations of diluted net (loss) income per share during the applicable periods because their inclusion would have been anti-dilutive. The following table sets forth potential shares that were considered anti-dilutive for the fiscal years ended September 30, 2022, 2021 and 2020:


	Year Ended September 30,
in thousands	2022		2021		2020
Restricted stock awards		227		-		1,058
Contingently issuable stock awards		8		-		151
Conversion option of our Notes		4,677		4,677		1,538

Fair Value Measurements

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

. Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Valuation techniques must maximize the use of observable inputs and minimize the use of unobservable inputs. When determining fair value measurements for assets and liabilities recorded at fair value, we consider the principal or most advantageous market in which we would transact and consider assumptions that market participants would use in pricing the asset or liability.

The classification of a financial asset or liability within the hierarchy is based upon the lowest level input that is significant to the fair value measurement as of the measurement date as follows:

•

Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities.

•

Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the assets or liabilities.

•

Level 3 - Unobservable inputs that are supported by little or no market activity.

The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of:


	September 30, 2022
	Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 1:
Money market funds $59,146 at cost (a)	$	59,138	$	59,138	$	-
Government securities $4,976 at cost (b)		4,892		-		4,892
Level 2:
Government securities $2,377 at cost (b)		2,361		-		2,361
Time deposits, $1,472 at cost (a)		1,472		1,472		-
Commercial paper, $7,648 at cost (b)		7,647		-		7,647
Corporate bonds, $17,328 at cost (b)		17,001		-		17,001
Debt securities, $2,000 at cost (c)		2,000		-		-
Total assets	$	94,511	$	60,610	$	31,901


	September 30, 2021
	Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 1:
Money market funds (a)	$	75,873	$	75,873	$	-
Level 2:
Time deposits, $2,965 at cost (a)		2,965		2,965		-
Commercial paper, $18,080 at cost (b)		18,080		-		18,080
Corporate bonds, $19,704 at cost (b)		19,694		-		19,694
Debt securities, $2,000 at cost (c)		2,000		-		-
Total assets	$	118,612	$	78,838	$	37,774

(a)

Money market funds and other highly liquid investments with original maturities of 90 days or less are included within Cash and cash equivalents in the Consolidated Balance Sheets.

(b)

Government securities, commercial paper and corporate bonds with original maturities greater than 90 days are included within Marketable securities in the Consolidated Balance Sheets and classified as current or noncurrent based upon whether the maturity of the financial asset is less than or greater than 12 months.

(c)

Debt securities are included within Prepaid and other current assets in the Consolidated Balance Sheets and classified as current given the maturity of the financial asset is less than 12 months.

During the fiscal year ended September 30, 2022, we recorded unrealized losses related to our marketable securities of $0.4 million within Accumulated other comprehensive income. During the fiscal years ended September 30, 2021 and 2020, we recorded an immaterial amount of unrealized losses related to our marketable securities.

The carrying amounts of certain financial instruments, including cash held in banks, accounts receivable, and accounts payable, approximate fair value due to their short-term maturities and are excluded from the fair value tables above.

Derivative financial instruments are recognized at fair value and are classified within Level 2 of the fair value hierarchy. See Note 6 – Derivative Financial Instruments for additional details.

Long-term debt

The estimated fair value of our Long-term debt is determined by Level 2 inputs and is based on observable market data including prices for similar instruments. As of September 30, 2022 and 2021, the estimated fair value of our Notes was $155.3 million and $469.0 million, respectively. The Notes are recorded at face value less unamortized debt discount and transaction costs on our Consolidated Balance Sheets. The carrying amount of the Senior Credit Facilities (as defined in Note 17) approximates fair value given the underlying interest rate applied to such amounts outstanding is currently set to the prevailing market rate.

Equity securities

We have non-controlling equity investment in privately held companies. We evaluated the equity investments under the voting model and concluded consolidation was not applicable. We accounted for the investments by electing the measurement alternative for investments without readily determinable fair values and for which we do not have the ability to exercise significant influence. The non-marketable equity securities are carried at cost less any impairment, plus or minus adjustments resulting from observable price

changes in orderly transactions for the identical or a similar investment of the same issuer, which is recorded within the Consolidated Statements of Operations. Investments without readily determinable fair values were $3.1 million and $2.6 million as of September 30, 2022 and 2021, respectively. These investments are included within Other assets on the Consolidated Balance Sheets. There have been no adjustments to the carrying value of the investment resulting from impairments or observable price changes.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

12 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

. Derivative Financial Instruments

We operate internationally and, in the normal course of business, are exposed to fluctuations in foreign currency exchange rates related to third-party vendor and intercompany payments for goods and services within our non-U.S. subsidiaries. We use foreign exchange forward contracts that are not designated as hedges to manage currency risk. The contracts can have maturities up to three years. As of September 30, 2022 and 2021, the total notional amount of forward contracts was $63.3 million and $61.0 million, respectively. As of September 30, 2022 and 2021, the weighted-average remaining maturity of these instruments was approximately 10.5 and 11.9 months, respectively.

The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of September 30, 2022 and 2021 (dollars in thousands):


		Fair Value
Derivatives not designated as hedges	Classification	September 30, 2022		September 30, 2021
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1,627	$	1,235
Foreign currency forward contracts	Other assets		660		365
Foreign currency forward contracts	Accrued expenses and other current liabilities		1,812		131
Foreign currency forward contracts	Other liabilities		711		148

The following tables display a summary of the income related to foreign currency forward contracts within the Consolidated Statements of Operations for the fiscal years ended September 30, 2022, 2021 and 2020 (dollars in thousand):


		Gain recognized in earnings
		Year Ended September 30,
Derivatives not designated as hedges	Classification	2022		2021		2020
Foreign currency forward contracts	Other income (expense), net	$	860	$	2,512	$	-

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

7. Goodwill and Intangible Assets

(a) Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2022 and 2021 were as follows (dollars in thousands):


	Total
Balance as of October 1, 2020	$	1,128,198
Effect of foreign currency translation		313
Balance as of September 30, 2021		1,128,511
Goodwill impairment		(213,720	)
Effect of foreign currency translation		(23,989	)
Balance as of September 30, 2022	$	890,802

(b) Intangible Assets, Net

On September 30, 2022, we concluded that indicators of impairment were present and performed a test for recoverability of our long-lived asset group as of September 30, 2022. Based upon the results of the recoverability test, we determined that the carrying amounts of the long-lived asset group were considered recoverable, concluding the test and resulting in no impairment of our long-lived asset group as of September 30, 2022.

The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):


	September 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	104,498	$	(95,315	)	$	9,183		1.7
Technology and patents		88,600		(88,083	)		517		1.2
Total	$	193,098	$	(183,398	)	$	9,700


	September 30, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	110,485	$	(88,638	)	$	21,847		2.2
Technology and patents		90,738		(87,237	)		3,501		0.9
Total	$	201,223	$	(175,875	)	$	25,348

Amortization expense for acquired technology and patents is included in the cost of revenue in the accompanying Consolidated Statements of Operations and amounted to $3.0 million, $7.5 million, and $8.3 million for the fiscal years ended September 30, 2022, 2021, and 2020, respectively. Amortization expense for customer relationships is included in operating expenses and amounted to $11.5 million, $12.7 million, and $12.6 million in the fiscal years ended September 30, 2022, 2021, and 2020, respectively. Estimated amortization for each of the five succeeding years and thereafter as of September 30, 2022, is as follows (dollars in thousands):


Year Ending September 30,	Cost of Revenues		Operating Expenses		Total
2023	$	414	$	5,774	$	6,188
2024		103		2,085		2,188
2025		—		1,324		1,324
Total	$	517	$	9,183	$	9,700

Property and Equipment, Net

12 Months Ended

Sep. 30, 2022

Property Plant And Equipment [Abstract]

Property and Equipment, Net

. Property and Equipment, Net

Property and equipment, net consisted of the following (dollars in thousands):


	Useful Life	September 30,
	(In years)	2022			2021
Machinery and equipment	3-5	$	10,800		$	7,577
Computers, software and equipment	3-5		61,566			42,380
Leasehold improvements	2-15		10,110			8,493
Furniture and fixtures	5-7		3,554			4,150
Finance leases			3,425			3,437
Construction in progress			—			12,379
Subtotal			89,455			78,416
Less: accumulated depreciation			(51,748	)		(46,911	)
Total		$	37,707		$	31,505

As of September 30, 2022 and 2021, the net book value of capitalized internal-use software costs was $21.2 million and $5.3 million, respectively, which are included within computers, software, and equipment. Depreciation expense for the fiscal years ended September 30, 2022, 2021, and 2020 was $9.4 million, $9.5 million, and $9.2 million, respectively, which included amortization expense of $3.7 million, $3.4 million, and $3.1 million, respectively, for internally developed software costs.

The following table presents our property and equipment, net by geography at September 30, 2022 and 2021 (dollars in thousands):


	September 30,
	2022		2021
Long-lived assets:
United States	$	28,779	$	22,550
Canada		2,252		2,850
Germany		1,866		1,973
Other countries		4,810		4,132
Total long-lived assets	$	37,707	$	31,505

Accrued Expenses and Other Current Liabilities

12 Months Ended

Sep. 30, 2022

Accrued Liabilities And Other Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

9. Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (dollars in thousands):


	September 30,
	2022		2021
Compensation	$	19,710	$	39,536
Sales and other taxes payable		4,598		8,574
Cost of revenue related liabilities		4,257		4,634
Professional fees		3,866		3,604
Interest payable		1,828		1,919
Other		13,731		6,200
Total	$	47,990	$	64,467

Restructuring and Other Costs, Net

12 Months Ended

Sep. 30, 2022

Restructuring And Related Activities [Abstract]

Restructuring and Other Costs, Net

10. Restructuring and Other Costs, Net

Restructuring and other costs, net include restructuring expenses as well as other charges that are unusual in nature, are the result of unplanned events, and arise outside of the ordinary course of our business such as employee severance costs, costs for consolidating duplicate facilities, and separation costs directly attributable to the Cerence business becoming a standalone public company.

The following table sets forth the fiscal year ended September 30, activity relating to restructuring charges (dollars in thousands):


	Personnel			Facilities			Restructuring Subtotal			Other			Total
Balance at October 1, 2019	$	489		$	26		$	515		$	3,876		$	4,391
Restructuring and other costs, net		3,694			1,037			4,731			11,727			16,458
Non-cash adjustment		—			(1,031	)		(1,031	)		—			(1,031	)
Cash payments		(3,420	)		(26	)		(3,446	)		(13,675	)		(17,121	)
Foreign exchange impact on ending balance		1			4			5			—			5
Balance at September 30, 2020		764			10			774			1,928			2,702
Restructuring and other costs, net		1,689			1,394			3,083			2,009			5,092
Non-cash adjustment		—			1,809			1,809			—			1,809
Cash payments		(839	)		(1,265	)		(2,104	)		(2,403	)		(4,507	)
Foreign exchange impact on ending balance		6			(67	)		(61	)		—			(61	)
Balance at September 30, 2021		1,620			1,881			3,501			1,534			5,035
Restructuring and other costs, net		1,676			673			2,349			6,616			8,965
Non-cash adjustment		—			(708	)		(708	)		(4,000	)		(4,708	)
Cash payments		(2,021	)		(188	)		(2,209	)		(1,873	)		(4,082	)
Foreign exchange impact on ending balance		2			(58	)		(56	)		—			(56	)
Balance at September 30, 2022	$	1,277		$	1,600		$	2,877		$	2,277		$	5,154

Fiscal Year 2022

For the fiscal year ended September 30, 2022, we recorded restructuring and other costs, net of $9.0 million, which included $4.0 million, net of $5.0 million in forfeitures, in stock-based compensation due to the resignation of our former CEO and the resulting modification of certain stock-based awards, $2.6 million other one-time charges, $1.7 million severance charge related to the elimination of personnel, and $0.7 million charge resulting from the closure of facilities that will no longer be utilized.

Fiscal Year 2021

For the fiscal year ended September 30, 2021, we recorded restructuring and other costs, net of $5.1 million, which included a $1.7 million severance charge related to the elimination of personnel across multiple functions, $1.4 million charge resulting from the closure of facilities that will no longer be utilized, and $2.0 million related to other one-time charges.

Fiscal Year 2020

For the fiscal year ended September 30, 2020, we recorded restructuring and other costs, net of $16.5 million, which included a $3.7 million severance charge related to the elimination of personnel across multiple functions, $1.0 million resulting from the restructuring of facilities that will no longer be utilized, and $11.7 million related to costs incurred to establish the Cerence business as a standalone public company.

Leases

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Leases

11. Leases

We have entered into a number of facility and equipment leases which qualify as operating leases under GAAP. We also have a limited number of equipment leases that qualify as finance leases. We determine if contracts with vendors represent a lease or have a lease component under GAAP at contract inception. Our leases have remaining terms ranging from less than one year to six years. Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.

The following table presents certain information related to lease term and incremental borrowing rates for leases as of September 30, 2022 and 2021:


	September 30, 2022			September 30, 2021
Weighted-average remaining lease term (in months):
Operating leases		46.5			52.2
Finance leases		35.6			47.1
Weighted-average discount rate:
Operating leases		3.7	%		5.1	%
Finance leases		4.4	%		4.4	%

The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheets as of September 30, 2022 and 2021 (dollars in thousands):


	Classification	September 30, 2022		September 30, 2021
Assets
Operating lease assets	Operating lease right of use assets	$	14,702	$	14,901
Finance lease assets	Property and equipment, net		1,259		1,700
Total lease assets		$	15,961	$	16,601

Liabilities
Current
Operating	Short-term operating lease liabilities	$	5,071	$	4,562
Finance	Accrued expenses and other current liabilities		441		430
Noncurrent
Operating	Long-term operating lease liabilities	$	11,375	$	12,216
Finance	Other liabilities		802		1,234
Total lease liability		$	17,689	$	18,442

The following table presents lease expense for the fiscal years ended September 30, 2022, 2021 and 2020 (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Finance lease costs:
Amortization of right of use asset	$	435		$	410		$	255
Interest on lease liability		50			63			22
Operating lease cost		6,788			7,619			8,245
Variable lease cost		3,492			2,142			1,060
Sublease income		(187	)		(207	)		(206	)
Total lease cost	$	10,578		$	10,027		$	9,376

For the fiscal years ended September 30, 2022, 2021 and 2020 cash payments related to operating leases were $6.7 million, $7.8 million and $8.0 million, respectively. For the fiscal years ended September 30, 2022, 2021 and 2020, cash payments related to financing leases were $0.5 million, $0.5 million and $0.1 million, respectively, of which an immaterial amount related to the interest portion of the lease liability. For the fiscal years ended September 30, 2022, 2021 and 2020 right of use assets obtained in exchange for lease obligations were $7.5 million, $2.9 million and $7.9 million, respectively.

The table below reconciles the undiscounted future minimum lease payments under non-cancelable leases to the total lease liabilities recognized on the Consolidated Balance Sheet as of September 30, 2022 (dollars in thousands):


Year Ending September 30,	Operating Leases			Financing Leases			Total
2023	$	5,570		$	476		$	6,046
2024		4,758			417			5,175
2025		3,221			362			3,583
2026		1,759			53			1,812
2027		1,455			—			1,455
Thereafter		819			—			819
Total future minimum lease payments	$	17,582		$	1,308		$	18,890
Less effects of discounting		(1,136	)		(65	)		(1,201	)
Total lease liabilities	$	16,446		$	1,243		$	17,689
Reported as of September 30, 2022
Short-term lease liabilities	$	5,071		$	441		$	5,512
Long-term lease liabilities		11,375			802			12,177
Total lease liabilities	$	16,446		$	1,243		$	17,689

Stockholders' Equity

12 Months Ended

Sep. 30, 2022

Equity [Abstract]

Stockholders' Equity

12. Stockholders’ Equity

Share-based Compensation Plans

Per the Amended and Restated Certificate of Incorporation, which was adopted on October 1, 2019, 600,000,000 shares of capital stock have been authorized, consisting of 40,000,000 shares of Preferred Stock, par value $0.01 per share, or (“Preferred Stock”), and 560,000,000 shares of Common Stock, par value $0.01 per share (“Common Stock”).

On October 2, 2019, we registered the issuance of 6,350,000 shares of Common Stock, consisting of 5,300,000 shares of Common Stock reserved under the Cerence 2019 Equity Incentive Plan, (“Equity Incentive Plan”), and 1,050,000 shares of Common Stock that are reserved for issuance under the Cerence 2019 Employee Stock Purchase Plan (“ESPP”). The Equity Incentive Plan provides for the grant of incentive stock options, stock awards, stock units, stock appreciation rights, and certain other stock-based awards. The shares available for issuance will automatically increase on January 1st of each year, by the lesser of (A) three percent (3%) of the number of shares of Common Stock outstanding as of the close of business on the immediately preceding December 31st; and (B) the number of shares of Common Stock determined by the Board on or prior to such date for such year. Awards issued under the Plan may not have a term greater than ten years from the date of grant.

Restricted Awards

The fair value of Restricted Awards, including Restricted Stock Units and Restricted Stock, is measured based upon the market price of the underlying common stock as of the date of grant. Restricted Awards generally vest over a period of two to four years. We also include certain Restricted Awards with vesting solely dependent on the achievement of specified performance targets. The fair value of Restricted Awards is amortized to expense over the awards applicable requisite service period. In the event that the employees’ employment with us terminates, or in the case of awards with only performance targets, if those targets are not met, any unvested shares are forfeited.

In fiscal years ended September 30, 2022, 2021 and 2020, we withheld payroll taxes totaling $49.0 million, $46.0 million and $9.4 million, respectively, related to the vesting of Restricted Awards.

Restricted Units are not included in issued and outstanding common stock until the shares are vested and released. The table below summarizes activity related to Restricted Stock Units:


	Non-Vested Restricted Stock Units
	Time-Based Shares			Performance- Based Shares			Total Shares			Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Non-vested at September 30, 2021		1,420,532			654,619			2,075,151		$	44.20
Granted		808,938			390,025			1,198,963		$	69.43
Vested		(1,029,854	)		(474,681	)		(1,504,535	)	$	58.70
Forfeited		(203,600	)		(134,968	)		(338,568	)	$	54.35
Non-vested at September 30, 2022		996,016			434,995			1,431,011		$	62.49		0.70	$	22,524
Expected to vest								1,431,011		$	62.49		0.70	$	22,524

Employee Stock Purchase Plan

On October 2, 2019, we adopted the ESPP and approved 1,050,000 shares for issuance under this plan. The ESPP is administered by our Board of Directors’ Compensation Committee.

The ESPP provides for the issuance of shares of our common stock to participating employees. At the end of each designated offering period, which occurs every six months on February 15 and August 15, employees can elect to purchase shares of our common stock with contributions of up to 12% of their base pay, accumulated via payroll deductions, at an amount equal to 85% of the lower of our stock price on (i) the first day of the offering period, or (ii) the last day of the offering period.

We use the Black-Scholes option pricing model to calculate the fair value of shares issued under the ESPP. The Black-Scholes model relies on a number of key assumptions to calculate estimated fair values. The following table sets forth the weighted-average key assumptions and fair value results for shares issued under the ESPP during the fiscal years ended September 30, 2022, 2021 and 2020:


	Year Ended September 30,
	2022			2021			2020
Expected dividend yield		0.00	%		0.00	%		0.00	%
Risk-free interest rate		0.41	%		0.10	%		1.56	%
Expected volatility		69.58	%		96.61	%		58.18	%
Expected life (in years)		0.50			0.50			0.50
Weighted-average fair value of shares issued (per share)	$	27.54		$	35.13		$	8.93

The following table sets forth the quantities and average prices of shares issued under the ESPP for the fiscal years ended September 30, 2022, 2021 and 2020:


	Year Ended September 30,
	2022		2021		2020
Shares issued under the ESPP		80,417		44,172		63,503
Average price of shares issued	$	28.18	$	73.40	$	20.66

Stock-based Compensation

During the fiscal years ended September 30, 2022, 2021 and 2020, we recognize stock-based compensation expenses over the requisite service periods. Our share-based awards are classified within equity. Stock-based compensation for the anticipated Restricted Awards has been adjusted to reflect our estimated achievement under the modified targets and is recorded prospectively over the requisite service period.

The amounts included in the Consolidated Statements of Operations related to stock-based compensation are as follows (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Cost of connected services	$	499	$	865	$	1,382
Cost of professional services		3,267		4,895		4,191
Research and development		10,196		16,538		13,944
Sales and marketing		3,569		12,533		9,580
General and administrative		6,545		25,724		18,188
Restructuring and other costs, net		4,000		—		—
Total	$	28,076	$	60,555	$	47,285

For the fiscal year ended September 30, 2022, we had lower stock-based compensation expense relating to our performance-based restricted stock units. Compensation cost for our performance-based restricted stock units is recognized based on the number of units expected to vest upon the achievement of the performance conditions. During the fiscal year ended September 30, 2022, we recorded $4.0 million, net of $5.0 million in forfeitures, in stock-based compensation due to the resignation of our former CEO and the resulting modification of certain stock-based awards in Restructuring and other costs, net. We recorded $2.4 million, net of $0.2 million in forfeitures, in stock-based compensation due to the retirement of our former CFO and resignation of our former General Counsel and the resulting modification of certain stock-based awards.

Commitments and Contingencies

12 Months Ended

Sep. 30, 2022

Commitments And Contingencies Disclosure [Abstract]

Commitments and Contingencies

13. Commitments and Contingencies

Litigation and Other Claims

Similar to many companies in the software industry, we are involved in a variety of claims, demands, suits, investigations and proceedings that arise from time to time relating to matters incidental to the ordinary course of our business, including at times actions with respect to contracts, intellectual property, employment, benefits and securities matters. At each balance sheet date, we evaluate contingent liabilities associated with these matters in accordance with ASC 450 Contingencies. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, we accrue a liability for the estimated loss. Significant judgments are required for the determination of probability and the range of the outcomes, and estimates are based only on the best information available at the time. Due to the inherent uncertainties involved in claims and legal proceedings and in estimating losses that may arise, actual outcomes may differ from our estimates. Contingencies deemed not probable or for which losses were not estimable in one period may become probable, or losses may become estimable in later periods, which may have a material impact on our results of operations and financial position. As of September 30, 2022, accrued losses were not material to our consolidated financial statements, and we do not expect any pending matter to have a material impact on our consolidated financial statements.

City of Miami Fire Fighters’ and Police Officers’ Retirement Trust Action

On February 25, 2022, a purported shareholder class action captioned as City Of Miami Fire Fighters’ And Police Officers’ Retirement Trust v. Cerence Inc. et al. (the "Securities Action") was filed in the United States District Court for the District of Massachusetts, naming the Company and two of its former officers as defendants. Following the court's selection of a lead plaintiff and lead counsel, an amended complaint was filed on July 26, 2022. The plaintiff claims to be suing on behalf of anyone who purchased the Company’s common stock between November 16, 2020 and February 4, 2022. The lawsuit alleges that material misrepresentations and/or omissions of material fact regarding the Company’s operations, financial performance and prospects were

made in the Company’s public disclosures during the period from November 16, 2020 to February 4, 2022, in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, and Rule 10b-5 promulgated thereunder. The plaintiff seeks unspecified monetary damages on behalf of the putative class and an award of costs and expenses, including attorney’s fees. We intend to defend the claims vigorously. Given the uncertainty of litigation, the preliminary stage of the case, and the legal standards that must be met for, among other things, class certification and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from this action.

Derivative Actions

On May 10 and 12, 2022, respectively, plaintiffs William Shafer and Peter Morse filed shareholder derivative complaints in the United States District Court for the District of Massachusetts on behalf of Cerence Inc. against defendants (and former officers) Sanjay Dwahan and Mark J. Gallenberger as well as board members Arun Sarin, Thomas Beaudoin, Marianne Budnik, Sanjay Jha, Kristi Ann Matus, Alfred Nietzel and current CEO and board member Stefan Ortmanns. These actions contain substantially similar factual and legal contentions and, as such, on June 13, 2022, at the parties' request, the court consolidated these derivative actions into a single action (the "Consolidated Derivative Action") and appointed Co-Lead Counsel for plaintiffs. In addition, the parties agreed to stay the Consolidated Derivative Action pending a ruling on the forthcoming motion to dismiss in the Securities Action, and the court has ordered that stay.

On October 19, 2022, plaintiff Melinda Hipp filed a shareholder derivative complaint in the Delaware Court of Chancery on behalf of Cerence Inc. against the defendants named in the Consolidated Derivative Action and board member Douglas Davis. This complaint makes factual and legal contentions substantially similar to those made in the Consolidated Derivative Actions.

Given the uncertainty of litigation, the preliminary stage of the cases, and the legal standards that must be met for, among other things, derivative standing and success on the merits, we cannot estimate the reasonably possible loss or range of loss that may result from these derivative actions.

Guarantees and Other

We include indemnification provisions in the contracts we enter with customers and business partners. Generally, these provisions require us to defend claims arising out of our products’ infringement of third-party intellectual property rights, breach of contractual obligations and/or unlawful or otherwise culpable conduct. The indemnity obligations generally cover damages, costs and attorneys’ fees arising out of such claims. In most, but not all cases, our total liability under such provisions is limited to either the value of the contract or a specified, agreed-upon amount. In some cases, our total liability under such provisions is unlimited. In many, but not all cases, the term of the indemnity provision is perpetual. While the maximum potential amount of future payments we could be required to make under all the indemnification provisions is unlimited, we believe the estimated fair value of these provisions is minimal due to the low frequency with which these provisions have been triggered.

We indemnify our directors and officers to the fullest extent permitted by Delaware law, which provides among other things, indemnification to directors and officers for expenses, judgments, fines, penalties and settlement amounts incurred by such persons in their capacity as a director or officer of the Company, regardless of whether the individual is serving in any such capacity at the time the liability or expense is incurred. Additionally, in connection with certain acquisitions, we agreed to indemnify the former officers and members of the boards of directors of those companies, on similar terms as described above, for a period of six years from the acquisition date. In certain cases, we purchase director and officer insurance policies related to these obligations, which fully cover the six-year period. To the extent that we do not purchase a director and officer insurance policy for the full period of any contractual indemnification, and such directors and officers do not have coverage under separate insurance policies, we would be required to pay for costs incurred, if any, as described above.

As of September 30, 2022, we have a $0.9 million letter of credit that is used as a security deposit in connection with our leased Bellevue, Washington office space. In the event of default on the underlying lease, the landlord would be eligible to draw against the letter of credit. The letter of credit is subject to aggregate reductions, provided that we are not in default under the underlying lease. We also have letters of credit in connection with security deposits for other facility leases totaling $0.5 million in the aggregate. These letters of credit have various terms and expire during fiscal year 2023 and beyond, while some of the letters of credit may automatically renew based on the terms of the underlying agreements.

Pension and Other Post-Retirement Benefits

12 Months Ended

Sep. 30, 2022

Compensation And Retirement Disclosure [Abstract]

Pension and Other Post-Retirement Benefits

14. Pension and Other Post-Retirement Benefits

Defined Contribution Plans

We have established a retirement savings plan under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all of our U.S. employees who meet minimum age and service requirements, and allows participants to defer a portion of their annual compensation on a pre-tax basis. We match 50% of employee contributions up to 6% of eligible

salary. We incurred charges for contributions to these 401(k) defined contribution plans of $0.5 million, $0.7 million, and $0.7 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively.

Defined Benefit Pension Plans

We sponsor certain defined benefit pension plans that are offered primarily by our foreign subsidiaries. Many of these plans are required by local regulatory requirements. We may deposit funds for these plans with insurance companies, third party trustees or into government-managed accounts consistent with local regulatory requirements, as applicable.

The total defined benefit plan pension expenses incurred for these plans were $0.5 million, $0.9 million, and $0.5 million for the fiscal years ended September 30, 2022, 2021 and 2020, respectively. Our aggregate projected benefit obligation and aggregate net liability for defined benefit plans as of September 30, 2022 was $10.4 million and $4.9 million, as of September 30, 2021 was $14.7 million and $8.7 million, and as of September 30, 2020 was $8.3 million and $7.1 million, respectively.

For the fiscal years ended September 30, 2022, 2021 and 2020, charges for contributions to defined benefit pension plans were not material to the Consolidated Statements of Operations.

- Definition

The entire disclosure for retirement benefits.

+ References

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+ Details

Relationship with Parent and Related Entities

12 Months Ended

Sep. 30, 2022

Relationship With Parent And Related Entities Disclosure [Abstract]

Relationship with Parent and Related Entities

15. Relationship with Parent and Related Entities

In connection with the Spin-Off, we entered into several agreements with Nuance that set forth the principal actions taken or to be taken in connection with the Spin-Off and that govern the relationship of the parties following the Spin-Off, including the following:

•

Separation and Distribution Agreement: We entered into a Separation and Distribution Agreement with Nuance in advance of the Distribution. The Separation and Distribution Agreement sets forth our agreements with Nuance regarding the principal actions to be taken in connection with the Spin-Off. It also sets forth other agreements that govern aspects of our relationship with Nuance following the Spin-Off.

•

Tax Matters Agreement: We entered into a Tax Matters Agreement with Nuance that governs the respective rights, responsibilities and obligations of Nuance and us after the Distribution with respect to all tax matters (including tax liabilities, tax attributes, tax returns and tax contests).

•

Transition Services Agreement: We entered into a Transition Services Agreement pursuant to which Nuance will provide us, and we will provide Nuance, with certain specified services for a limited time to help ensure an orderly transition following the Distribution.

•

Employee Matters Agreement: We entered into an Employee Matters Agreement with Nuance that addresses employment and employee compensation and benefits matters. The Employee Matters Agreement addresses the allocation and treatment of assets and liabilities relating to employees and compensation and benefit plans and programs in which our employees participated prior to the Spin-Off.

•

Intellectual Property Agreement: We entered into an Intellectual Property Agreement with Nuance, pursuant to which we granted to Nuance, and Nuance granted to us, perpetual, non-exclusive, royalty-free licenses to certain patents and technology, as well as certain other intellectual property that have historically been shared between us and Nuance.

•

Transitional Trademark License Agreement: We entered into a Transitional Trademark License Agreement with Nuance, pursuant to which Nuance granted us a non-exclusive, royalty free license to continue using certain of Nuance’s trademarks, trade names and service marks with respect to the “Nuance” and “Dragon” brands in connection with the sale, marketing and other commercialization of our products and services.

•

OEM and Distribution License Agreements: We entered into four OEM and Distribution License Agreements with Nuance. Under three of the four agreements, Cerence licenses to Nuance designated Cerence technologies for Nuance’s internal use and for distribution to Nuance end-users and resellers. Under the final agreement, Nuance licenses to Cerence designated Nuance technologies for Cerence’s internal use and for distribution to Cerence end-users and resellers. All agreements contain customary commercial terms for arrangements of this nature.

Income Taxes

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

16. Income Taxes

Provision for (benefit from) income taxes

The components of (loss) income before income taxes are as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021		2020
Domestic	$	(168,452	)	$	20,933	$	(27,889	)
Foreign		(30,299	)		27,336		4,849
(Loss) income before income taxes	$	(198,751	)	$	48,269	$	(23,040	)

The components of provision for (benefit from) income taxes are as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Current:
Federal	$	12		$	—		$	—
State		15			35			—
Foreign		14,761			6,760			5,844
Total current	$	14,788		$	6,795		$	5,844
Deferred:
Federal		(6,823	)		5,437			(1,636	)
State		218			5,001			(239	)
Foreign		103,892			(14,857	)		(8,693	)
Total deferred		97,287			(4,419	)		(10,568	)
Provision for (benefit from) income taxes	$	112,075		$	2,376		$	(4,724	)
Effective income tax rate		(56.4	)%		4.9	%		20.5	%

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory rate to our income (loss) before income taxes as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Federal tax provision at statutory rate	$	(41,738	)	$	10,137		$	(4,838	)
State tax, net of federal benefit		185			3,979			(221	)
Foreign tax rate and other foreign related tax items		920			(15,626	)		(2,347	)
Uncertain tax positions		25			861			(887	)
Stock-based compensation		(15,020	)		1,629			3,456
Global intangible low-taxed income		(554	)		554			336
Goodwill impairment		39,933			—			—
Change in valuation allowance		128,034			(225	)		—
Non-deductible expenditures		1,095			3,999			2,728
R&D credits		(805	)		(2,932	)		(2,951	)
Provision for (benefit from) income taxes	$	112,075		$	2,376		$	(4,724	)

The effective income tax rate is based upon the income for the year, the composition of the income in different countries, and adjustments, if any, for the potential tax consequences, benefits or resolutions of audits or other tax contingencies. Our effective tax rate may be adversely affected by earnings being lower than anticipated in countries where we have lower statutory tax rates and higher than anticipated in countries where we have higher statutory tax rates.

Our effective tax rate for the fiscal year 2022 differed from the U.S. federal statutory rate of 21.0%, primarily due to the establishment of a valuation allowance in a foreign jurisdiction as discussed below, impairment of book goodwill, the tax impacts of stock-based compensation, and our composition of jurisdictional earnings.

Our effective tax rate for the fiscal year 2021 differed from the U.S. federal statutory rate of 21.0%, primarily due to our composition of jurisdictional earnings, U.S. inclusions of foreign taxable income as a result of changes in applicable tax laws in 2017, and an income tax benefit of $15.9 million related to an increase in the Netherlands tax rate enacted in the first quarter of fiscal year 2021.

The effective tax rate for the fiscal year 2020 differed from the U.S. federal statutory rate of 21.0%, primarily due to our composition of jurisdictional earnings, R&D incentives, and an income tax benefit of approximately $5.0 million related to an increase in tax rates in the Netherlands enacted in the first quarter of fiscal year 2020.

As of September 30, 2022, we have not provided taxes on undistributed earnings of our foreign subsidiaries, which may be subject to foreign withholding taxes upon repatriation, as we consider these earnings indefinitely reinvested. Our indefinite reinvestment determination is based on the future operational and capital requirements of our domestic and foreign operations. We expect our international cash and cash equivalents and marketable securities will continue to be used for our foreign operations and therefore do not anticipate repatriating these funds. As of September 30, 2022, it is not practical to calculate the unrecognized deferred tax liability on these earnings due to the complexities of the utilization of foreign tax credits and other tax assets.

Deferred tax assets (liabilities) consist of the following as of September 30, 2022 and 2021 (dollars in thousands):


	September 30,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	44,131		$	17,098
Capital loss carryforwards		8,187			8,187
Federal credit carryforwards		5,916			5,160
Accrued expenses and other reserves		3,316			5,992
Difference in timing of revenue related items		31,261			39,105
Acquired intangibles		89,434			102,481
Interest limitations carryforward		10,228			7,319
Operating lease liabilities		4,874			5,065
Depreciation		2,924			2,723
Deferred compensation		1,910			2,174
Pension obligation		730			1,870
Other		3,078			1,249
Total deferred tax assets	$	205,989		$	198,423
Valuation allowance for deferred tax assets		(126,860	)		(12,209	)
Deferred tax assets	$	79,129		$	186,214
Deferred tax liabilities:
Depreciation	$	(6,143	)	$	(4,636	)
Acquired intangibles		(14,570	)		(17,204	)
Convertible debt		(2,463	)		(3,349	)
Operating lease right-of-use assets		(4,189	)		(4,303	)
Other		(749	)		(163	)
Total deferred tax liabilities		(28,114	)		(29,655	)
Net deferred tax assets	$	51,015		$	156,559

Deferred income taxes arise from temporary difference between the tax and financial statement recognition of revenue and expenses. We regularly assess the need for a valuation allowance against our deferred tax assets. In evaluating whether it is more likely than not that some or all of our deferred tax assets will not be realized, we consider all available positive and negative evidence. During the third quarter of fiscal year 2022, we established a valuation allowance of $107.6 million against our deferred tax assets in the Netherlands, which consists of tax amortizable intellectual property and net operating loss carryforwards. We determined we had new negative evidence, based on updates to transfer pricing arrangements and changes to the earnings guidance for fiscal year 2022. We will continue to maintain a valuation allowance against our Netherlands deferred tax assets until we believe it is more likely than not that these assets will be realized. If sufficient positive evidence arises in the future indicating that all or a portion of the deferred tax assets meet the more likely than not standard, the valuation allowance would be reversed accordingly in the period that such determination is made.

The remaining deferred tax assets after valuation allowances are primarily domestic. Based on the level of historical taxable income and projections for future taxable income over the periods for which these deferred tax assets are deductible, we believe that it is more likely than not that we will realize the benefits of the domestic deductible differences.

As of September 30, 2022, we have $8.2 million and $118.7 million in valuation allowance against our net domestic and foreign deferred tax assets, respectively. As of September 30, 2021, we had $8.2 million and $4.0 million in valuation allowance against our net domestic and foreign deferred tax assets, respectively.

As of September 30, 2022, we have U.S. federal net operating loss (“NOL”) carryforwards of $43.6 million, state NOL carryforwards of $11.9 million, and foreign NOL carryforwards of $184.9 million, before uncertain tax positions of $39.5 million. As

of September 30, 2021, we have U.S. federal NOL carryforwards of $15.0 million, state NOL carryforwards of $4.3 million, and foreign NOL carryforwards of $99.9 million, before uncertain tax position amounts of $32.8 million. These carryforwards will expire at various dates beginning in 2026 and extending up to an unlimited period. As of September 30, 2022 and 2021, unlimited federal NOLs are $42.8 million and $15.0 million, respectively, and unlimited Netherlands NOLs are $157.4 million and $70.1 million, respectively.

As of September 30, 2022, we have U.S. federal research and development carryforwards and foreign tax credit carryforwards of $10.1 million, before uncertain tax positions of $8.1 million, state research and development credits of $0.2 million, and foreign research and development credits of $4.9 million. As of September 30, 2021, we have U.S. federal research and development carryforwards and foreign tax credit carryforwards of $10.8 million, before uncertain tax positions of $9.1 million, state research and development credits of $0.3 million, and foreign research and development credits of $4.3 million. These carryforwards will expire at various dates beginning in 2023 and extending up to 2041.

Uncertain Tax Positions

ASC 740 prescribes the accounting for uncertainty in income taxes recognized in the financial statements. We regularly assess the outcome of potential examinations in each of the taxing jurisdictions when determining the adequacy of the amount of unrecognized tax benefit recorded. We recognize tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit which is more likely than not to be realized upon ultimate settlement. We recognize interest and penalties related to unrecognized tax positions in our provision for (benefit from) income taxes line of our Consolidated Statements of Operations.

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows (dollars in thousands):


	September 30,
	2022			2021
Balance at the beginning of the year	$	87,144		$	67,358
Beginning balance adjustment		(13,181	)		9,884
Increases related to tax positions taken from prior periods		2,277			9,367
Increases related to tax positions taken during current period		2,088			768
Decreases for tax settlements and lapse in statutes		(1,738	)		(233	)
Balance at the end of the year	$	76,590		$	87,144

During fiscal year 2021, we finalized pre-spin tax attributes and recognized as beginning balance adjustments uncertain tax positions of $9.1 million on certain tax credit carryforwards. As of September 30, 2022 and 2021, beginning balance adjustments include cumulative translation adjustments of ($13.2) million and $0.8 million, respectively.

Increases related to tax positions taken from prior period include the effect of tax rate changes of $2.3 million and $9.4 million at September 30, 2022 and 2021, respectively.

As of September 30, 2022, $76.6 million of the unrecognized tax benefits, if recognized, would impact our effective tax rate. We do not expect a significant change in the amount of unrecognized tax benefits within the next 12 months. We recognized interest related to uncertain tax positions in our provision for (benefit from) income taxes of ($0.3) million, $0.3 million and ($0.1) million during fiscal years 2022, 2021 and 2020 respectively. We recorded interest of $3.5 million and $4.2 million as of September 30, 2022 and 2021, respectively.

We are subject to U.S. federal income tax, various state and local taxes and international income taxes in numerous jurisdictions. The 2016 through 2021 tax years remain open for all purposes of examination by the IRS and other taxing authorities in material jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Long-Term Debt

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Long-Term Debt

17. Long-Term Debt

Long-term debt consisted of the following (in thousands):


	September 30, 2022			September 30, 2021
3.00% Convertible Senior Notes due 2025, net of unamortized discount of $11,264 and $15,019, respectively, and deferred issuance costs of $2,832 and $3,776, respectively. Effective interest rate 6.29%.	$	160,904		$	156,205
Senior Credit Facilities, net of unamortized discount of $1,310 and $1,829, respectively, and deferred issuance costs of $158 and $221, respectively. Effective interest rate 5.37% and 2.86%, respectively.		109,470			115,138
Total debt	$	270,374		$	271,343
Less: current portion		(10,938	)		(6,250	)
Total long-term debt	$	259,436		$	265,093

The following table summarizes the maturities of our borrowing obligations as of September 30, 2022 (in thousands):


Fiscal Year	Convertible Senior Notes			Senior Facilities			Total
2023	$	—		$	10,938		$	10,938
2024		—			12,500			12,500
2025		175,000			87,500			262,500
Total before unamortized discount and issuance costs and current portion	$	175,000		$	110,938		$	285,938
Less: unamortized discount and issuance costs		(14,096	)		(1,468	)		(15,564	)
Less: current portion of long-term debt		—			(10,938	)		(10,938	)
Total long-term debt	$	160,904		$	98,532		$	259,436

3.00% Senior Convertible Notes due 2025

On June 2, 2020, in an effort to refinance our debt structure, we issued $175.0 million in aggregate principal amount of 3.00% Convertible Senior Notes due 2025 (the “Notes”), including the initial purchasers’ exercise in full of their option to purchase an additional $25.0 million principal amount of the Notes, between us and U.S. Bank National Association, as trustee (the “Trustee”), in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended. The net proceeds from the issuance of the Notes were $169.8 million after deducting transaction costs. We used net proceeds from the

issuance of the Notes to repay a portion of our indebtedness under the Credit Agreement, dated October 1, 2019, by and among us, the lenders and issuing banks party thereto and Barclays Bank PLC, as administrative agent (the “Existing Facility”).

The Notes are senior, unsecured obligations and will accrue interest payable semiannually in arrears on June 1 and December 1 of each year, beginning on December 1, 2020, at a rate of 3.00% per year. The Notes will mature on June 1, 2025, unless earlier converted, redeemed, or repurchased. The Notes are convertible into cash, shares of our common stock or a combination of cash and shares of our common stock, at our election. As of September 30, 2022, the if-converted value of the Notes was $101.3 million less than its principal amount. As of September 30, 2021, the if-converted value of the Notes exceeded its principal amount by $274.4 million.

A holder of Notes may convert all or any portion of its Notes at its option at any time prior to the close of business on the business day immediately preceding March 1, 2025 only under the following circumstances: (1) during any fiscal quarter commencing after the fiscal quarter ending on September 30, 2020 (and only during such fiscal quarter), if the last reported sale price of our common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding fiscal quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five business day period after any ten consecutive trading day period (the “measurement period”) in which the “trading price” per $1,000 principal amount of Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of our common stock and the conversion rate on each such trading day; (3) if we call such Notes for redemption, at any time prior to the close of business on the business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after March 1, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its Notes at any time, regardless of the foregoing.

The conversion rate will initially be 26.7271 shares of our common stock per $1,000 principal amount of Notes (equivalent to an initial conversion price of approximately $37.42 per share of our common stock). The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date or if we deliver a notice of redemption, we will, in certain circumstances, increase the conversion rate for a holder who elects to convert its Notes in connection with such a corporate event or convert its Notes called for redemption in connection with such notice of redemption, as the case may be.

We may not redeem the Notes prior to June 5, 2023. We may redeem for cash all or any portion of the Notes, at our option, on a redemption date occurring on or after June 5, 2023 and on or before the 31st scheduled trading day immediately before the maturity date, if the last reported sale price of our common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which we provide notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which we provide notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. No sinking fund is provided for the Notes.

If we undergo a “fundamental change”, subject to certain conditions, holders may require us to repurchase for cash all or any portion of their Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Notes to be repurchased, plus any accrued and unpaid interest to, but excluding, the fundamental change repurchase date.

The indenture governing the Notes contains customary terms and covenants, including that upon certain events of default occurring and continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of the Notes then outstanding may declare the entire principal amount of all the Notes plus accrued special interest, if any, to be immediately due and payable.

At issuance, we accounted for the Notes by allocating proceeds from the Notes into debt and equity components according to the accounting standards for convertible debt instruments that may be fully or partially settled in cash upon conversion. The initial carrying amount of the debt component, which approximates its fair value, was estimated by using an interest rate for nonconvertible debt, with terms similar to the Notes. The excess of the principal amount of the Notes over the fair value of the debt component was recorded as a debt discount and a corresponding increase in additional paid-in capital. The debt discount is accreted to the carrying value of the Notes over their expected term as interest expense using the interest method. Upon issuance of the Notes, we recorded $155.3 million as debt and $19.7 million as additional paid-in capital in stockholders’ equity. As of September 30, 2022 and 2021, the carrying amount of the equity component, net of taxes and transaction costs was $14.4 million.

We incurred transaction costs of $5.6 million relating to the issuance of the Notes. In accounting for these costs, we allocated the costs of the offering between debt and equity in proportion to the fair value of the debt and equity recognized. The transaction costs allocated to the debt component of approximately $5.0 million were recorded as a direct deduction from the face amount of the

Notes and are being amortized as interest expense over the term of the Notes using the interest method. The transaction costs allocated to the equity component of approximately $0.6 million were recorded as a decrease in additional paid-in capital.

The interest expense recognized related to the Notes for the fiscal years ended September 30, 2022, 2021 and 2020 was as follows (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Contractual interest expense	$	5,246	$	5,246	$	1,753
Amortization of debt discount		3,755		3,527		1,131
Amortization of issuance costs		944		887		285
Total interest expense related to the Notes	$	9,945	$	9,660	$	3,169

The conditional conversion feature of the Notes was triggered during the fiscal year ended September 30, 2022, and the Notes were not convertible as of September 30, 2022, with no Notes being converted. Whether any of the Notes will be converted in future quarters will depend on the satisfaction of one or more of the conversion conditions in the future. If one or more holders elect to convert their Notes at a time when any such Notes are convertible, unless we elect to satisfy our conversion obligation by delivering solely shares of our common stock (other than paying cash in lieu of delivering any fractional shares), we would be required to settle a portion or all of our conversion obligation through the payment of cash, which could adversely affect our liquidity.

Senior Credit Facilities

On June 12, 2020 (the “Financing Closing Date”), in connection with our effort to refinance our existing indebtedness, we entered into a Credit Agreement, by and among the Borrower, the lenders and issuing banks party thereto and Wells Fargo Bank, N.A., as administrative agent (the “Credit Agreement”), consisting of a four-year senior secured term loan facility in the aggregate principal amount of $125.0 million (the “Term Loan Facility”). The net proceeds from the issuance of the Term Loan Facility were $123.0 million, which together with proceeds from the Notes was intended to pay in full all indebtedness under the Existing Facility, and paid fees and expenses in connection with the Senior Credit Facilities. We also entered into a senior secured first-lien revolving credit facility in an aggregate principal amount of $50.0 million (the “Revolving Facility” and, together with the Term Loan Facility, the “Senior Credit Facilities”), which shall be drawn on in the event that our working capital and other cash needs are not supported by our operating cash flow. As of September 30, 2022 and 2021, there were no amounts outstanding under the Revolving Facility.

Our obligations under the Credit Agreement are jointly and severally guaranteed by certain of our existing and future direct and indirect wholly owned domestic subsidiaries, subject to certain exceptions customary for financings of this type. All obligations are secured by substantially all of our tangible and intangible personal property and material real property, including a perfected first-priority pledge of all (or, in the case of foreign subsidiaries or subsidiaries (“FSHCO”) that own no material assets other than equity interests in foreign subsidiaries that are “controlled foreign corporations” or other FSHCOs, 65%) of the equity securities of our subsidiaries held by any loan party, subject to certain customary exceptions and limitations.

On December 17, 2020 (the “Amendment No. 1 Effective Date”), we entered into Amendment No. 1 to the Credit Agreement (the “Amendment”). The Amendment extended the scheduled maturity date of the revolving credit and term facilities from June 12, 2024 to April 1, 2025.

The Amendment revised certain interest rates in the Credit Agreement. Following delivery of a compliance certificate for the first full fiscal quarter after the Amendment No. 1 Effective Date, the applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is LIBOR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is LIBOR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is LIBOR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is LIBOR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is LIBOR plus 2.20% or ABR plus 1.00%. As a result of the Amendment, the applicable LIBOR floor was reduced from 0.50% to 0.00%.

From the Amendment No. 1 Effective Date until the fiscal quarter ended December 31, 2020, the interest rate was LIBOR plus 2.50%. For the three months ended March 31, 2021, the interest rate was LIBOR plus 2.25%. For the three months ended June 30, 2021, the interest rate was LIBOR plus 2.25%. For the three months ended September 30, 2021, the interest rate was LIBOR plus 2.25%. For the three and twelve months ended September 30, 2022, the interest rate was LIBOR plus 2.25%. Total interest expense relating to the Senior Credit Facilities for the fiscal year ended September 30, 2022, 2021 and 2020 was $4.3 million, $4.1 million, $1.5 million, respectively, reflecting the coupon and accretion of the discount.

In addition, the quarterly commitment fee required to be paid based on the unused portion of the Revolving Facility is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the unused

line fee is 0.500%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the unused line fee is 0.450%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the unused line fee is 0.400%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the unused line fee is 0.350%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the unused line fee is 0.300%.

The Amendment revised the amount by which we are obligated to make quarterly principal payments. Through the fiscal quarter ending December 31, 2022, we are obligated to make quarterly principal payments in an aggregate amount equal to 1.25% of the original principal amount of the Term Loan Facility. From the fiscal quarter ending March 31, 2023 and for each fiscal quarter thereafter, we are obligated to make quarterly principal payments in an aggregate amount equal to 2.50% of the original principal amount of the Term Loan Facility, with the balance payable at the maturity date thereof.

Borrowings under the Credit Agreement are prepayable at our option without premium or penalty. We may request, and each lender may agree in its sole discretion, to extend the maturity date of all or a portion of the Senior Credit Facilities subject to certain conditions customary for financings of this type. The Credit Agreement also contains certain mandatory prepayment provisions in the event that we incur certain types of indebtedness or receives net cash proceeds from certain non-ordinary course asset sales or other dispositions of property, in each case subject to terms and conditions customary for financings of this type.

The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to designate subsidiaries as unrestricted, to make certain investments, to prepay certain indebtedness and to pay dividends, or to make other distributions or redemptions/repurchases, in respect of our and our subsidiaries’ equity interests. In addition, the Credit Agreement contains financial covenants, each tested quarterly, (1) a net secured leveraged ratio of not greater than 3.25 to 1.00; (2) a net total leverage ratio of not greater than 4.25 to 1.00; and (3) minimum liquidity of at least $75 million. The Credit Agreement also contains events of default customary for financings of this type, including certain customary change of control events. As of September 30, 2022 and 2021, we were in compliance with all Credit Agreement covenants.

On November 22, 2022 (the "Amendment No. 2 Effective Date"), we entered into Amendment No. 2 to the Credit Agreement ("Amendment No. 2"). Amendment No. 2 modified certain financial covenants between the fiscal quarter ended March 31, 2023 to the fiscal quarter ended December 31, 2023 (the "covenant adjustment period"). During the covenant adjustment period, each tested quarterly, we are required to maintain (1) a net secured leveraged ratio of not greater than 4.25 to 1.00; (2) minimum liquidity of at least $125 million; and (3) aggregate capital expenditures less than $7.5 million. The net total leverage ratio will be waived during the covenant adjustment period. At the conclusion of the covenant adjustment period, the original financial covenants will resume.

Amendment No. 2 revised certain interest rates in the Credit Agreement. The applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is SOFR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is SOFR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is SOFR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is SOFR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is SOFR plus 2.20% or ABR plus 1.00%. From the Amendment No. 2 Effective Date until delivery of the first compliance certificate after the covenant adjustment period, the applicable margin will be SOFR plus 3.00% or ABR plus 2.00%.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
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-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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Reference 3: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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+ Details

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Basis of Presentation

(a) Basis of Presentation

Principles of Consolidation

(b) Principles of Consolidation

Use of Estimates

Revenue Recognition

(d) Revenue Recognition

We currently recognize revenue after applying the following five steps:

•

identification of the contract, or contracts, with a customer;

•

identification of the performance obligations in the contract, including whether they are distinct within the context of the contract;

•

determination of the transaction price, including the constraint on variable consideration;

•

allocation of the transaction price to the performance obligations in the contract; and

•

recognition of revenue when, or as, performance obligations are satisfied.

Business Combinations

(e) Business Combinations

•

estimated fair values of intangible assets;

•

estimated fair values of legal performance commitments to customers, assumed from the acquiree under existing contractual obligations (classified as deferred revenue);

•

estimated income tax assets and liabilities assumed from the acquiree;

•

estimated fair value of pre-acquisition contingencies assumed from the acquiree; and

•

Cash and Cash Equivalents

(f) Cash and Cash Equivalents

Cash and cash equivalents include cash on hand and highly liquid investments that are readily convertible to known amounts of cash and have original maturities of three months or less.

Marketable Securities

(g) Marketable Securities

Goodwill

(h) Goodwill

Long-Lived Assets with Definite Lives

(i) Long-Lived Assets with Definite Lives

Allowance for Credit Losses

(j) Allowance for Credit Losses

Fiscal year 2022 and 2021

The change in the allowance for credit losses for the fiscal year ended September 30, 2022 and 2021 is as follows (dollars in thousands):


	Allowance for Credit Losses
Balance as of September 30, 2020	$	1,394
Credit loss provision		(415	)
Write-offs, net of recoveries		(112	)
Foreign exchange impact on ending balance		12
Balance as of September 30, 2021	$	879
Credit loss provision		(431	)
Write-offs, net of recoveries		18
Foreign exchange impact on ending balance		(95	)
Balance as of September 30, 2022	$	371

Fiscal years 2020


	Allowance for Doubtful Accounts
Balance at September 30, 2019		865
Bad debt provisions		704
Write-offs, net of recoveries		(175	)
Balance at September 30, 2020	$	1,394

Research and Development

(k) Research and Development

Income Taxes

(l) Income Taxes

We account for income taxes using the assets and liabilities method, as prescribed by ASC No. 740, Income Taxes, or ASC 740.

Deferred Taxes

Valuation Allowance

Uncertain Tax Positions

Accumulated Other Comprehensive (Loss) Income

(m) Accumulated Other Comprehensive (Loss) Income

The components of accumulated other comprehensive (loss) income, reflected in the Consolidated Statements of Equity, consists of the following (dollars in thousands):


	September 30,
	2022			2021
Foreign currency translation adjustments	$	(33,895	)	$	3,284
Net unrealized gains (losses) on post-retirement benefits		594			(1,639	)
Net unrealized losses on available-for-sale securities		(436	)		(11	)
Accumulated other comprehensive (loss) income	$	(33,737	)	$	1,634

No income tax provisions or benefits are recorded for foreign currency translation adjustments as the undistributed earnings in our foreign subsidiaries are expected to be indefinitely reinvested.

Concentration of Risk

(n) Concentration of Risk

Foreign Currency Translation

(o) Foreign Currency Translation

(p) Net Parent Investment

Net Parent Investment

Stock-Based Compensation

(q) Stock-Based Compensation

Leases

(r) Leases

Convertible Debt

(s) Convertible Debt

Net (Loss) Income Per Share

(t) Net (Loss) Income Per Share

Recently Adopted Accounting Standards

(u) Recently Adopted Accounting Standards

None.

Issued Accounting Standards Not Yet Adopted

(v) Issued Accounting Standards Not Yet Adopted

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Sep. 30, 2022

Accounting Policies [Abstract]

Summary of Change in Allowance for Credit Losses

The change in the allowance for credit losses for the fiscal year ended September 30, 2022 and 2021 is as follows (dollars in thousands):


	Allowance for Credit Losses
Balance as of September 30, 2020	$	1,394
Credit loss provision		(415	)
Write-offs, net of recoveries		(112	)
Foreign exchange impact on ending balance		12
Balance as of September 30, 2021	$	879
Credit loss provision		(431	)
Write-offs, net of recoveries		18
Foreign exchange impact on ending balance		(95	)
Balance as of September 30, 2022	$	371

For the year ended September 30, 2020, the activity related to the allowance for doubtful accounts was as follows (dollars in thousands):


	Allowance for Doubtful Accounts
Balance at September 30, 2019		865
Bad debt provisions		704
Write-offs, net of recoveries		(175	)
Balance at September 30, 2020	$	1,394

Components of Accumulated Other Comprehensive (Loss) Income

The components of accumulated other comprehensive (loss) income, reflected in the Consolidated Statements of Equity, consists of the following (dollars in thousands):


	September 30,
	2022			2021
Foreign currency translation adjustments	$	(33,895	)	$	3,284
Net unrealized gains (losses) on post-retirement benefits		594			(1,639	)
Net unrealized losses on available-for-sale securities		(436	)		(11	)
Accumulated other comprehensive (loss) income	$	(33,737	)	$	1,634

Revenue Recognition (Tables)

12 Months Ended

Sep. 30, 2022

Revenue From Contract With Customer [Abstract]

Summary of Revenues Classified by Major Geographic Region

Revenues, classified by the major geographic region in which our customers are located, for the fiscal years ended September 30, 2022, 2021 and 2020 (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Revenues:
United States	$	100,564	$	135,033	$	129,338
Other Americas		99		175		16
Germany		74,550		114,936		100,674
Other Europe, Middle East and Africa		15,579		29,964		25,394
Japan		74,480		62,840		50,936
Other Asia-Pacific		62,619		44,234		24,609
Total net revenues	$	327,891	$	387,182	$	330,967

Summary of Significant Changes in Contract Assets and Deferred Revenue

The table below shows significant changes in contract assets (dollars in thousands):


	Contract assets
Balance as of September 30, 2020	$	30,277
Revenues recognized but not billed		89,217
Amounts reclassified to accounts receivable, net		(60,351	)
Balance as of September 30, 2021	$	59,143
Revenues recognized but not billed		96,409
Amounts reclassified to accounts receivable, net		(67,765	)
Foreign exchange impact on ending balance		(11,495	)
Balance as of September 30, 2022	$	76,292

The table below shows significant changes in deferred revenue (dollars in thousands):


	Deferred revenue
Balance as of September 30, 2020	$	324,729
Amounts billed but not recognized		105,540
Revenue recognized		(153,532	)
Balance as of September 30, 2021	$	276,737
Amounts billed but not recognized		96,165
Revenue recognized		(130,770	)
Foreign exchange impact on ending balance		(3,498	)
Balance as of September 30, 2022	$	238,634

Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied


	Within One Year		Two to Five Years		Greater than Five Years		Total
Total revenue	$	157,549	$	145,949	$	19,957	$	323,455

Earnings Per Share (Tables)

12 Months Ended

Sep. 30, 2022

Earnings Per Share [Abstract]

Schedule of Reconciliation of Basic Shares to Diluted Shares

The following table presents the reconciliation of the numerator and denominator for calculating net (loss) income per share:


	September 30,
in thousands, except per share data	2022			2021		2020
Numerator:
Net (loss) income	$	(310,826	)	$	45,893	$	(18,316	)

Denominator:
Weighted average common shares outstanding - basic		39,187			37,752		36,428
Dilutive effect of restricted stock awards		-			1,405		-
Dilutive effect of contingently issuable stock awards		-			132		-
Weighted average common shares outstanding - diluted		39,187			39,289		36,428

Net (loss) income per common share:
Basic	$	(7.93	)	$	1.22	$	(0.50	)
Diluted	$	(7.93	)	$	1.17	$	(0.50	)

Schedule of Potential Shares Considered Antidilutive

The following table sets forth potential shares that were considered anti-dilutive for the fiscal years ended September 30, 2022, 2021 and 2020:


	Year Ended September 30,
in thousands	2022		2021		2020
Restricted stock awards		227		-		1,058
Contingently issuable stock awards		8		-		151
Conversion option of our Notes		4,677		4,677		1,538

Fair Value Measurements (Tables)

12 Months Ended

Sep. 30, 2022

Fair Value Disclosures [Abstract]

Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs

The following table presents information about our financial assets that are measured at fair value and indicates the fair value hierarchy of the valuation inputs used (dollars in thousands) as of:


	September 30, 2022
	Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 1:
Money market funds $59,146 at cost (a)	$	59,138	$	59,138	$	-
Government securities $4,976 at cost (b)		4,892		-		4,892
Level 2:
Government securities $2,377 at cost (b)		2,361		-		2,361
Time deposits, $1,472 at cost (a)		1,472		1,472		-
Commercial paper, $7,648 at cost (b)		7,647		-		7,647
Corporate bonds, $17,328 at cost (b)		17,001		-		17,001
Debt securities, $2,000 at cost (c)		2,000		-		-
Total assets	$	94,511	$	60,610	$	31,901


	September 30, 2021
	Fair Value		Cash and Cash Equivalents		Marketable Securities
Level 1:
Money market funds (a)	$	75,873	$	75,873	$	-
Level 2:
Time deposits, $2,965 at cost (a)		2,965		2,965		-
Commercial paper, $18,080 at cost (b)		18,080		-		18,080
Corporate bonds, $19,704 at cost (b)		19,694		-		19,694
Debt securities, $2,000 at cost (c)		2,000		-		-
Total assets	$	118,612	$	78,838	$	37,774

(a)

Money market funds and other highly liquid investments with original maturities of 90 days or less are included within Cash and cash equivalents in the Consolidated Balance Sheets.

(b)

(c)

Debt securities are included within Prepaid and other current assets in the Consolidated Balance Sheets and classified as current given the maturity of the financial asset is less than 12 months.

- Definition

Tabular disclosure of financial instruments measured at fair value, including those classified in shareholders' equity measured on a recurring or nonrecurring basis. Disclosures include, but are not limited to, fair value measurements recorded and the reasons for the measurements, level within the fair value hierarchy in which the fair value measurements are categorized and transfers between levels 1 and 2. Nonrecurring fair value measurements are those that are required or permitted in the statement of financial position in particular circumstances.

+ References + Details

Derivative Financial Instruments (Tables)

12 Months Ended

Sep. 30, 2022

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Summary of Fair Value and Presentation in Consolidated Balance Sheet for Derivative Instruments

The following table summarizes the fair value and presentation in the Consolidated Balance Sheets for derivative instruments as of September 30, 2022 and 2021 (dollars in thousands):


		Fair Value
Derivatives not designated as hedges	Classification	September 30, 2022		September 30, 2021
Foreign currency forward contracts	Prepaid expenses and other current assets	$	1,627	$	1,235
Foreign currency forward contracts	Other assets		660		365
Foreign currency forward contracts	Accrued expenses and other current liabilities		1,812		131
Foreign currency forward contracts	Other liabilities		711		148

Summary of Income Related to Foreign Currency Forward Contracts


		Gain recognized in earnings
		Year Ended September 30,
Derivatives not designated as hedges	Classification	2022		2021		2020
Foreign currency forward contracts	Other income (expense), net	$	860	$	2,512	$	-

Goodwill and Intangible Assets (Tables)

12 Months Ended

Sep. 30, 2022

Goodwill And Intangible Assets Disclosure [Abstract]

Changes in Carrying Amount of Goodwill

The changes in the carrying amount of goodwill for the fiscal years ended September 30, 2022 and 2021 were as follows (dollars in thousands):


	Total
Balance as of October 1, 2020	$	1,128,198
Effect of foreign currency translation		313
Balance as of September 30, 2021		1,128,511
Goodwill impairment		(213,720	)
Effect of foreign currency translation		(23,989	)
Balance as of September 30, 2022	$	890,802

Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class

The following tables summarizes the gross carrying amounts and accumulated amortization of intangible assets by major class (dollars in thousands):


	September 30, 2022
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	104,498	$	(95,315	)	$	9,183		1.7
Technology and patents		88,600		(88,083	)		517		1.2
Total	$	193,098	$	(183,398	)	$	9,700


	September 30, 2021
	Gross Carrying Amount		Accumulated Amortization			Net Carrying Amount		Weighted Average Remaining Life (Years)
Customer relationships	$	110,485	$	(88,638	)	$	21,847		2.2
Technology and patents		90,738		(87,237	)		3,501		0.9
Total	$	201,223	$	(175,875	)	$	25,348

Schedule of Estimated Amortization

Estimated amortization for each of the five succeeding years and thereafter as of September 30, 2022, is as follows (dollars in thousands):


Year Ending September 30,	Cost of Revenues		Operating Expenses		Total
2023	$	414	$	5,774	$	6,188
2024		103		2,085		2,188
2025		—		1,324		1,324
Total	$	517	$	9,183	$	9,700

- Definition

Tabular disclosure of goodwill by reportable segment and in total which includes a rollforward schedule.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
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+ Details

Property and Equipment, Net (Tables)

12 Months Ended

Sep. 30, 2022

Property Plant And Equipment [Abstract]

Components of Property and Equipment,Net

Property and equipment, net consisted of the following (dollars in thousands):


	Useful Life	September 30,
	(In years)	2022			2021
Machinery and equipment	3-5	$	10,800		$	7,577
Computers, software and equipment	3-5		61,566			42,380
Leasehold improvements	2-15		10,110			8,493
Furniture and fixtures	5-7		3,554			4,150
Finance leases			3,425			3,437
Construction in progress			—			12,379
Subtotal			89,455			78,416
Less: accumulated depreciation			(51,748	)		(46,911	)
Total		$	37,707		$	31,505

Components of Property and Equipment, Net by Geography

The following table presents our property and equipment, net by geography at September 30, 2022 and 2021 (dollars in thousands):


	September 30,
	2022		2021
Long-lived assets:
United States	$	28,779	$	22,550
Canada		2,252		2,850
Germany		1,866		1,973
Other countries		4,810		4,132
Total long-lived assets	$	37,707	$	31,505

Accrued Expenses and Other Current Liabilities (Tables)

12 Months Ended

Sep. 30, 2022

Accrued Liabilities And Other Liabilities [Abstract]

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following (dollars in thousands):


	September 30,
	2022		2021
Compensation	$	19,710	$	39,536
Sales and other taxes payable		4,598		8,574
Cost of revenue related liabilities		4,257		4,634
Professional fees		3,866		3,604
Interest payable		1,828		1,919
Other		13,731		6,200
Total	$	47,990	$	64,467

Restructuring and Other Costs, Net (Tables)

12 Months Ended

Sep. 30, 2022

Restructuring And Related Activities [Abstract]

Schedule of Accrual Activity Relating to Restructuring Charges

The following table sets forth the fiscal year ended September 30, activity relating to restructuring charges (dollars in thousands):


	Personnel			Facilities			Restructuring Subtotal			Other			Total
Balance at October 1, 2019	$	489		$	26		$	515		$	3,876		$	4,391
Restructuring and other costs, net		3,694			1,037			4,731			11,727			16,458
Non-cash adjustment		—			(1,031	)		(1,031	)		—			(1,031	)
Cash payments		(3,420	)		(26	)		(3,446	)		(13,675	)		(17,121	)
Foreign exchange impact on ending balance		1			4			5			—			5
Balance at September 30, 2020		764			10			774			1,928			2,702
Restructuring and other costs, net		1,689			1,394			3,083			2,009			5,092
Non-cash adjustment		—			1,809			1,809			—			1,809
Cash payments		(839	)		(1,265	)		(2,104	)		(2,403	)		(4,507	)
Foreign exchange impact on ending balance		6			(67	)		(61	)		—			(61	)
Balance at September 30, 2021		1,620			1,881			3,501			1,534			5,035
Restructuring and other costs, net		1,676			673			2,349			6,616			8,965
Non-cash adjustment		—			(708	)		(708	)		(4,000	)		(4,708	)
Cash payments		(2,021	)		(188	)		(2,209	)		(1,873	)		(4,082	)
Foreign exchange impact on ending balance		2			(58	)		(56	)		—			(56	)
Balance at September 30, 2022	$	1,277		$	1,600		$	2,877		$	2,277		$	5,154

Leases (Tables)

12 Months Ended

Sep. 30, 2022

Leases [Abstract]

Summary of Lease Term and Incremental Borrowing Rates for Leases

The following table presents certain information related to lease term and incremental borrowing rates for leases as of September 30, 2022 and 2021:


	September 30, 2022			September 30, 2021
Weighted-average remaining lease term (in months):
Operating leases		46.5			52.2
Finance leases		35.6			47.1
Weighted-average discount rate:
Operating leases		3.7	%		5.1	%
Finance leases		4.4	%		4.4	%

Summary of lease-related Assets and Liabilities Reported in the Consolidated Balance Sheets

The following table presents the lease-related assets and liabilities reported in the Consolidated Balance Sheets as of September 30, 2022 and 2021 (dollars in thousands):


	Classification	September 30, 2022		September 30, 2021
Assets
Operating lease assets	Operating lease right of use assets	$	14,702	$	14,901
Finance lease assets	Property and equipment, net		1,259		1,700
Total lease assets		$	15,961	$	16,601

Liabilities
Current
Operating	Short-term operating lease liabilities	$	5,071	$	4,562
Finance	Accrued expenses and other current liabilities		441		430
Noncurrent
Operating	Long-term operating lease liabilities	$	11,375	$	12,216
Finance	Other liabilities		802		1,234
Total lease liability		$	17,689	$	18,442

Summary of Lease Expense

The following table presents lease expense for the fiscal years ended September 30, 2022, 2021 and 2020 (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Finance lease costs:
Amortization of right of use asset	$	435		$	410		$	255
Interest on lease liability		50			63			22
Operating lease cost		6,788			7,619			8,245
Variable lease cost		3,492			2,142			1,060
Sublease income		(187	)		(207	)		(206	)
Total lease cost	$	10,578		$	10,027		$	9,376

Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases


Year Ending September 30,	Operating Leases			Financing Leases			Total
2023	$	5,570		$	476		$	6,046
2024		4,758			417			5,175
2025		3,221			362			3,583
2026		1,759			53			1,812
2027		1,455			—			1,455
Thereafter		819			—			819
Total future minimum lease payments	$	17,582		$	1,308		$	18,890
Less effects of discounting		(1,136	)		(65	)		(1,201	)
Total lease liabilities	$	16,446		$	1,243		$	17,689
Reported as of September 30, 2022
Short-term lease liabilities	$	5,071		$	441		$	5,512
Long-term lease liabilities		11,375			802			12,177
Total lease liabilities	$	16,446		$	1,243		$	17,689

Stockholders' Equity (Tables)

12 Months Ended

Sep. 30, 2022

Equity [Abstract]

Schedule of Non-vested Restricted Stock Units

Restricted Units are not included in issued and outstanding common stock until the shares are vested and released. The table below summarizes activity related to Restricted Stock Units:


	Non-Vested Restricted Stock Units
	Time-Based Shares			Performance- Based Shares			Total Shares			Weighted- Average Grant-Date Fair Value		Weighted- Average Remaining Contractual Term (years)		Aggregate Intrinsic Value (in thousands)
Non-vested at September 30, 2021		1,420,532			654,619			2,075,151		$	44.20
Granted		808,938			390,025			1,198,963		$	69.43
Vested		(1,029,854	)		(474,681	)		(1,504,535	)	$	58.70
Forfeited		(203,600	)		(134,968	)		(338,568	)	$	54.35
Non-vested at September 30, 2022		996,016			434,995			1,431,011		$	62.49		0.70	$	22,524
Expected to vest								1,431,011		$	62.49		0.70	$	22,524

Weighted-Average Key Assumptions and Fair Value Results for Shares Issued under ESPP


	Year Ended September 30,
	2022			2021			2020
Expected dividend yield		0.00	%		0.00	%		0.00	%
Risk-free interest rate		0.41	%		0.10	%		1.56	%
Expected volatility		69.58	%		96.61	%		58.18	%
Expected life (in years)		0.50			0.50			0.50
Weighted-average fair value of shares issued (per share)	$	27.54		$	35.13		$	8.93

Quantities and Average Prices of Shares Issued Under the ESPP

The following table sets forth the quantities and average prices of shares issued under the ESPP for the fiscal years ended September 30, 2022, 2021 and 2020:


	Year Ended September 30,
	2022		2021		2020
Shares issued under the ESPP		80,417		44,172		63,503
Average price of shares issued	$	28.18	$	73.40	$	20.66

Schedule of Stock-based Compensation

The amounts included in the Consolidated Statements of Operations related to stock-based compensation are as follows (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Cost of connected services	$	499	$	865	$	1,382
Cost of professional services		3,267		4,895		4,191
Research and development		10,196		16,538		13,944
Sales and marketing		3,569		12,533		9,580
General and administrative		6,545		25,724		18,188
Restructuring and other costs, net		4,000		—		—
Total	$	28,076	$	60,555	$	47,285

Income Taxes (Tables)

12 Months Ended

Sep. 30, 2022

Income Tax Disclosure [Abstract]

Components of (Loss) Income Before Income Taxes

The components of (loss) income before income taxes are as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021		2020
Domestic	$	(168,452	)	$	20,933	$	(27,889	)
Foreign		(30,299	)		27,336		4,849
(Loss) income before income taxes	$	(198,751	)	$	48,269	$	(23,040	)

Components of Provision for (Benefit from) Income Taxes

The components of provision for (benefit from) income taxes are as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Current:
Federal	$	12		$	—		$	—
State		15			35			—
Foreign		14,761			6,760			5,844
Total current	$	14,788		$	6,795		$	5,844
Deferred:
Federal		(6,823	)		5,437			(1,636	)
State		218			5,001			(239	)
Foreign		103,892			(14,857	)		(8,693	)
Total deferred		97,287			(4,419	)		(10,568	)
Provision for (benefit from) income taxes	$	112,075		$	2,376		$	(4,724	)
Effective income tax rate		(56.4	)%		4.9	%		20.5	%

Schedule of Provision for (Benefit from) Income Taxes Differed from the Amount Computed by Applying Federal Statutory Rate

The provision for (benefit from) income taxes differed from the amount computed by applying the federal statutory rate to our income (loss) before income taxes as follows (dollars in thousands):


	Year Ended September 30,
	2022			2021			2020
Federal tax provision at statutory rate	$	(41,738	)	$	10,137		$	(4,838	)
State tax, net of federal benefit		185			3,979			(221	)
Foreign tax rate and other foreign related tax items		920			(15,626	)		(2,347	)
Uncertain tax positions		25			861			(887	)
Stock-based compensation		(15,020	)		1,629			3,456
Global intangible low-taxed income		(554	)		554			336
Goodwill impairment		39,933			—			—
Change in valuation allowance		128,034			(225	)		—
Non-deductible expenditures		1,095			3,999			2,728
R&D credits		(805	)		(2,932	)		(2,951	)
Provision for (benefit from) income taxes	$	112,075		$	2,376		$	(4,724	)

Schedule of Deferred Tax Assets (Liabilities)

Deferred tax assets (liabilities) consist of the following as of September 30, 2022 and 2021 (dollars in thousands):


	September 30,
	2022			2021
Deferred tax assets:
Net operating loss carryforwards	$	44,131		$	17,098
Capital loss carryforwards		8,187			8,187
Federal credit carryforwards		5,916			5,160
Accrued expenses and other reserves		3,316			5,992
Difference in timing of revenue related items		31,261			39,105
Acquired intangibles		89,434			102,481
Interest limitations carryforward		10,228			7,319
Operating lease liabilities		4,874			5,065
Depreciation		2,924			2,723
Deferred compensation		1,910			2,174
Pension obligation		730			1,870
Other		3,078			1,249
Total deferred tax assets	$	205,989		$	198,423
Valuation allowance for deferred tax assets		(126,860	)		(12,209	)
Deferred tax assets	$	79,129		$	186,214
Deferred tax liabilities:
Depreciation	$	(6,143	)	$	(4,636	)
Acquired intangibles		(14,570	)		(17,204	)
Convertible debt		(2,463	)		(3,349	)
Operating lease right-of-use assets		(4,189	)		(4,303	)
Other		(749	)		(163	)
Total deferred tax liabilities		(28,114	)		(29,655	)
Net deferred tax assets	$	51,015		$	156,559

Aggregate Changes in Balance of Gross Unrecognized Tax Benefits

The aggregate changes in the balance of our gross unrecognized tax benefits were as follows (dollars in thousands):


	September 30,
	2022			2021
Balance at the beginning of the year	$	87,144		$	67,358
Beginning balance adjustment		(13,181	)		9,884
Increases related to tax positions taken from prior periods		2,277			9,367
Increases related to tax positions taken during current period		2,088			768
Decreases for tax settlements and lapse in statutes		(1,738	)		(233	)
Balance at the end of the year	$	76,590		$	87,144

Long-Term Debt (Tables)

12 Months Ended

Sep. 30, 2022

Debt Disclosure [Abstract]

Schedule of Long-Term Debt

Long-term debt consisted of the following (in thousands):


	September 30, 2022			September 30, 2021
3.00% Convertible Senior Notes due 2025, net of unamortized discount of $11,264 and $15,019, respectively, and deferred issuance costs of $2,832 and $3,776, respectively. Effective interest rate 6.29%.	$	160,904		$	156,205
Senior Credit Facilities, net of unamortized discount of $1,310 and $1,829, respectively, and deferred issuance costs of $158 and $221, respectively. Effective interest rate 5.37% and 2.86%, respectively.		109,470			115,138
Total debt	$	270,374		$	271,343
Less: current portion		(10,938	)		(6,250	)
Total long-term debt	$	259,436		$	265,093

Summary of Maturities of Borrowing Obligations

The following table summarizes the maturities of our borrowing obligations as of September 30, 2022 (in thousands):


Fiscal Year	Convertible Senior Notes			Senior Facilities			Total
2023	$	—		$	10,938		$	10,938
2024		—			12,500			12,500
2025		175,000			87,500			262,500
Total before unamortized discount and issuance costs and current portion	$	175,000		$	110,938		$	285,938
Less: unamortized discount and issuance costs		(14,096	)		(1,468	)		(15,564	)
Less: current portion of long-term debt		—			(10,938	)		(10,938	)
Total long-term debt	$	160,904		$	98,532		$	259,436

Schedule of Interest Expense Related to Notes

The interest expense recognized related to the Notes for the fiscal years ended September 30, 2022, 2021 and 2020 was as follows (dollars in thousands):


	Year Ended September 30,
	2022		2021		2020
Contractual interest expense	$	5,246	$	5,246	$	1,753
Amortization of debt discount		3,755		3,527		1,131
Amortization of issuance costs		944		887		285
Total interest expense related to the Notes	$	9,945	$	9,660	$	3,169

Organization - Additional Information (Details)		12 Months Ended
Organization - Additional Information (Details)	Oct. 01, 2019	Sep. 30, 2022
Organization [Line Items]
Entity Incorporation State Country Code		DE
Entity incorporation, date of incorporation		Oct. 01, 2019
Nuance Communications \| Spin-Off
Organization [Line Items]
Distribution date	Oct. 01, 2019
Conversion ratio, description		The distribution was made in the amount of one share of our common stock for every eight shares of Nuance common stock (the “Distribution”) owned by Nuance’s stockholders as of 5:00 p.m. Eastern Time on September 17, 2019, the record date of the Distribution.
Conversion ratio	0.125

Summary of Significant Accounting Policies - Additional Information (Details)	9 Months Ended	12 Months Ended
	Jun. 30, 2022 USD ($)	Sep. 30, 2022 USD ($) Customer Unit Segment	Sep. 30, 2021 USD ($) Customer	Sep. 30, 2020 USD ($)	Jun. 02, 2020
Summary Of Significant Accounting Policies [Line Items]
Goodwill impairment charge	$ 0	$ 213,700,000	$ 0	$ 0
Number of operating segment \| Segment		1
Number of reporting unit \| Unit		1
Impairment of long-lived asset group, disposition		$ 0	0	0
Estimate fair value	995,000,000	713,000,000.0
Reporting unit, carrying value	950,000,000
Reporting unit, amount of fair value in excess of carrying amount	$ 45,000,000
Reporting Unit, Percentage of fair value in excess of carrying amount	5.00%
Undistributed earnings in our foreign subsidiaries are expected		0	0
Foreign currency transaction gain (loss)		$ 100,000	(1,700,000)	$ 2,400,000
Operating lease, existence of option to extend		true
Operating lease, option to extend		Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Operating lease, existence of option to terminate		true
Operating lease, option to terminate		Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Deferred tax assets valuation allowance		$ 126,860,000	$ 12,209,000
Netherlands
Summary Of Significant Accounting Policies [Line Items]
Deferred tax assets valuation allowance	$ 107,600,000
3.00% Convertible Senior Notes Due 2025
Summary Of Significant Accounting Policies [Line Items]
Debt instrument conversion ratio		26.7271
Conversion of notes to common stock per principal amount		$ 1,000
Debt instrument, interest rate		3.00%			3.00%
Minimum
Summary Of Significant Accounting Policies [Line Items]
Operating lease remaining term		1 year
Maximum
Summary Of Significant Accounting Policies [Line Items]
Operating lease remaining term		6 years
Concentration of Credit Risk \| Accounts Receivable, Net
Summary Of Significant Accounting Policies [Line Items]
Number of major customers \| Customer		1	1
Concentration of Credit Risk \| Customer One \| Accounts Receivable, Net
Summary Of Significant Accounting Policies [Line Items]
Concentration risk, percentage		17.40%	12.10%

Summary of Significant Accounting Policies - Summary of Change in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Receivables [Abstract]
Beginning balance	$ 879	$ 1,394
Credit loss provision	(431)	(415)
Write-offs, net of recoveries	18	(112)
Foreign exchange impact on ending balance	(95)	12
Ending balance	$ 371	$ 879

Summary of Significant Accounting Policies - Activity Related to Allowance for Doubtful Accounts (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Accounting Policies [Abstract]
Beginning Balance		$ 1,394	$ 865
Bad debt provisions	$ (413)	$ (415)	704
Write-offs, net of recoveries			(175)
Ending Balance			$ 1,394

Summary of Significant Accounting Policies - Components of Accumulated Other Comprehensive (Loss) Income (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Accounting Policies [Abstract]
Foreign currency translation adjustments	$ (33,895)	$ 3,284
Net unrealized gains (losses) on post-retirement benefits	594	(1,639)
Net unrealized losses on available-for-sale securities	(436)	(11)
Accumulated other comprehensive (loss) income	$ (33,737)	$ 1,634

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References + Details

Revenue Recognition - Additional Information (Details)	12 Months Ended
Revenue Recognition - Additional Information (Details)	Sep. 30, 2022 USD ($) Customer	Sep. 30, 2021 USD ($) Customer	Sep. 30, 2020 USD ($) Customer
Disaggregation Of Revenue [Line Items]
Total revenues	$ 327,891,000	$ 387,182,000	$ 330,967,000
Minimum commitment deals of revenue	$ 47,100,000
Distribution period	5 years
Contract acquisition costs	$ 8,300,000	6,900,000
Contract acquisition cost, amortization	2,500,000	1,900,000	1,500,000
Contract acquisition cost, impairment	0
Capitalized contract cost, amortization	10,200,000	15,400,000	12,000,000.0
Capitalized contract cost, impairment	0
Current contract assets	76,292,000	59,143,000	30,277,000
Deferred revenue	238,634,000	276,737,000	324,729,000
Customer One
Disaggregation Of Revenue [Line Items]
Total revenues	55,400,000	72,000,000.0	76,900,000
Customer Two
Disaggregation Of Revenue [Line Items]
Total revenues	48,900,000	41,600,000
United States
Disaggregation Of Revenue [Line Items]
Total revenues	100,564,000	135,033,000	129,338,000
Germany
Disaggregation Of Revenue [Line Items]
Total revenues	74,550,000	114,936,000	100,674,000
Japan
Disaggregation Of Revenue [Line Items]
Total revenues	$ 74,480,000	$ 62,840,000	$ 50,936,000
Revenues \| Customer Concentration Risk
Disaggregation Of Revenue [Line Items]
Number of customers accounted for revenues \| Customer	2	2	1
Revenues \| Customer Concentration Risk \| Customer One
Disaggregation Of Revenue [Line Items]
Percentage of revenue	16.90%	18.60%	23.20%
Revenues \| Customer Concentration Risk \| Customer Two
Disaggregation Of Revenue [Line Items]
Percentage of revenue	14.90%	10.80%
Minimum
Disaggregation Of Revenue [Line Items]
Connected services contract term	1 year
Contract acquisition cost, deferred and amortized over benefit period	1 year
Contract term	1 year
Minimum \| Revenues \| United States \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%	10.00%
Minimum \| Revenues \| Germany \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%	10.00%
Minimum \| Revenues \| Japan \| Geographic Concentration Risk
Disaggregation Of Revenue [Line Items]
Percentage of revenue	10.00%	10.00%	10.00%
Maximum
Disaggregation Of Revenue [Line Items]
Connected services contract term	5 years
Contract acquisition costs, expected benefit period	1 year
Contract acquisition cost, deferred and amortized over benefit period	8 years
Contract term	8 years

Revenue Recognition - Summary of Revenues Classified by Major Geographic Region (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Total net revenues	$ 327,891	$ 387,182	$ 330,967
United States
Revenues:
Total net revenues	100,564	135,033	129,338
Other Americas
Revenues:
Total net revenues	99	175	16
Germany
Revenues:
Total net revenues	74,550	114,936	100,674
Other Europe, Middle East and Africa
Revenues:
Total net revenues	15,579	29,964	25,394
Japan
Revenues:
Total net revenues	74,480	62,840	50,936
Other Asia-Pacific
Revenues:
Total net revenues	$ 62,619	$ 44,234	$ 24,609

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 4
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130543-203045

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 606
-SubTopic 10
-Section 50
-Paragraph 5
-URI https://asc.fasb.org/extlink&oid=126920106&loc=SL49130545-203045

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 924
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB Topic 11.L)
-URI https://asc.fasb.org/extlink&oid=6472922&loc=d3e499488-122856

+ Details

Revenue Recognition - Summary of Significant Changes in Contract Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revenue From Contract With Customer [Abstract]
Balance	$ 59,143	$ 30,277
Revenues recognized but not billed	96,409	89,217
Amounts reclassified to accounts receivable, net	(67,765)	(60,351)
Foreign exchange impact on ending balance	(11,495)
Balance	$ 76,292	$ 59,143

Revenue Recognition - Summary of Significant Changes in Deferred Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Revenue From Contract With Customer [Abstract]
Balance	$ 276,737	$ 324,729
Amounts billed but not recognized	96,165	105,540
Revenue recognized	(130,770)	(153,532)
Foreign exchange impact on ending balance	(3,498)
Balance	$ 238,634	$ 276,737

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details) $ in Thousands	Sep. 30, 2022 USD ($)
Remaining Performance Obligations
Total revenue	$ 323,455
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2022-10-01
Remaining Performance Obligations
Total revenue	$ 157,549
Remaining performance obligation, expected timing of satisfaction, period	1 year
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2023-10-01
Remaining Performance Obligations
Total revenue	$ 145,949
Remaining performance obligation, expected timing of satisfaction, period	4 years
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date: 2027-10-01
Remaining Performance Obligations
Total revenue	$ 19,957
Remaining performance obligation, expected timing of satisfaction, period

Revenue Recognition - Summary of Estimated Revenue Expected to be Recognized in Future Related to Performance Obligations Unsatisfied or Partially Unsatisfied (Details 1) $ in Thousands	Sep. 30, 2022 USD ($)
Remaining Performance Obligations
Total revenue	$ 323,455

Earnings Per Share - Additional Information (Details) - 3.00% Convertible Senior Notes Due 2025	12 Months Ended
	Sep. 30, 2022 USD ($)
Earnings Per Share [Line Items]
Debt instrument conversion ratio	26.7271
Conversion of notes to common stock per principal amount	$ 1,000

Earnings Per Share - Schedule of Reconciliation of Basic Shares to Diluted Shares (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Numerator:
Net (loss) income	$ (310,826)	$ 45,893	$ (18,316)
Denominator:
Weighted average common shares outstanding - basic	39,187	37,752	36,428
Dilutive effect of restricted stock awards		1,405
Dilutive effect of contingently issuable stock awards		132
Weighted average common shares outstanding - diluted	39,187	39,289	36,428
Net (loss) income per common share:
Basic	$ (7.93)	$ 1.22	$ (0.50)
Diluted	$ (7.93)	$ 1.17	$ (0.50)

Earnings Per Share - Schedule of Potential Shares Considered Antidilutive (Details) - shares shares in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Restricted Stock Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	227		1,058
Contingently Issuable Stock Awards
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	8		151
Conversion Option of our Notes
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items]
Antidilutive shares	4,677	4,677	1,538

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 94,511	$ 118,612
Estimated fair value of cash and cash equivalents	60,610	78,838
Marketable Securities	31,901	37,774
Money Market Funds \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	59,138	75,873
Estimated fair value of cash and cash equivalents	59,138	75,873
Government Securities \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	4,892
Marketable Securities	4,892
Government Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	2,361
Marketable Securities	2,361
Time Deposits \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	1,472	2,965
Estimated fair value of cash and cash equivalents	1,472	2,965
Commercial Paper \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	7,647	18,080
Marketable Securities	7,647	18,080
Corporate Debt Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	17,001	19,694
Marketable Securities	17,001	19,694
Debt Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair Value	$ 2,000	$ 2,000

Fair Value Measurements - Summary of Financial Assets that are Measured at Fair Value and Indicates the Fair Value Hierarchy of the Valuation Inputs (Parenthetical) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Money Market Funds \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 59,146
Government Securities \| Level 1
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	4,976
Government Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	2,377
Time Deposits \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	1,472	$ 2,965
Commercial Paper \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	7,648	18,080
Corporate Debt Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	17,328	19,704
Debt Securities \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Marketable securities, cost	$ 2,000	$ 2,000

Fair Value Measurements - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Unrealized losses to marketable securities	$ 400
Marketable Securities	31,901	$ 37,774
Equity investments without readily determinable fair values	3,100	2,600
Estimated Fair Value \| Level 2
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items]
Fair value of notes	$ 155,300	$ 469,000

Derivative Financial Instruments - Additional Information (Details) - Foreign Exchange Forward Contracts - Not Designated - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Derivative [Line Items]
Derivative, notional amount	$ 63.3	$ 61.0
Derivative, weighted-average remaining maturity	10 months 15 days	11 months 27 days
Maximum
Derivative [Line Items]
Derivative, contract maturity	3 years

Derivative Financial Instruments - Summary of Fair Value and Presentation in Consolidated Balance Sheet for Derivative Instruments (Details) - Foreign Currency Forward Contracts - Not Designated - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Prepaid Expenses and Other Current Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	$ 1,627	$ 1,235
Other Assets
Derivatives Fair Value [Line Items]
Derivative instrument assets at fair value	660	365
Accrued Expenses and Other Current Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	1,812	131
Other Liabilities
Derivatives Fair Value [Line Items]
Derivative instrument liabilities at fair value	$ 711	$ 148

Derivative Financial Instruments - Summary of Income Related to Foreign Forward Currency Contracts (Details) - Foreign Exchange Forward Contracts - Not Designated - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Derivative Instruments Gain Loss [Line Items]
Gain recognized in earnings	$ 860	$ 2,512
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration]	Other Nonoperating Income Expense	Other Nonoperating Income Expense

Goodwill and Intangible Assets - Goodwill - Additional Information (Details) - USD ($)	9 Months Ended	12 Months Ended
	Jun. 30, 2022	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Goodwill [Line Items]
Estimate fair value	$ 995,000,000	$ 713,000,000.0
Reporting unit, carrying value	950,000,000
Reporting unit, amount of fair value in excess of carrying amount	$ 45,000,000
Reporting Unit, Percentage of fair value in excess of carrying amount	5.00%
Goodwill impairment charge	$ 0	213,700,000	$ 0	$ 0
Customer Relationships \| Operating Expenses
Goodwill [Line Items]
Amortization expense		11,500,000	12,700,000	12,600,000
Technology and Patents \| Cost of Revenues
Goodwill [Line Items]
Amortization expense		$ 3,000,000.0	$ 7,500,000	$ 8,300,000

Goodwill and Intangible Assets - Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Goodwill And Intangible Assets Disclosure [Abstract]
Balance	$ 1,128,511	$ 1,128,198
Goodwill impairment	(213,720)
Effect of foreign currency translation	(23,989)	313
Balance	$ 890,802	$ 1,128,511

- Definition

Amount after accumulated impairment loss of an asset representing future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized.

+ References + Details

Goodwill and Other Intangible Assets - Intangible Assets, Net - Additional Information (Details)	12 Months Ended
	Sep. 30, 2022 USD ($)
Goodwill And Intangible Assets Disclosure [Abstract]
Impairment of long-lived asset	$ 0

Goodwill and Intangible Assets - Summary of Gross Carrying Amounts and Accumulated Amortization of Intangible Assets by Major Class (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 193,098	$ 201,223
Accumulated Amortization	(183,398)	(175,875)
Net Carrying Amount	9,700	25,348
Customer Relationships
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	104,498	110,485
Accumulated Amortization	(95,315)	(88,638)
Net Carrying Amount	$ 9,183	$ 21,847
Weighted Average Remaining Life (Years)	1 year 8 months 12 days	2 years 2 months 12 days
Technology and Patents
Finite Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 88,600	$ 90,738
Accumulated Amortization	(88,083)	(87,237)
Net Carrying Amount	$ 517	$ 3,501
Weighted Average Remaining Life (Years)	1 year 2 months 12 days	10 months 24 days

Goodwill and Intangible Assets - Schedule of Estimated Amortization (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Finite Lived Intangible Assets [Line Items]
2023	$ 6,188
2024	2,188
2025	1,324
Net Carrying Amount	9,700	$ 25,348
Cost of Revenues
Finite Lived Intangible Assets [Line Items]
2023	414
2024	103
Net Carrying Amount	517
Operating Expenses
Finite Lived Intangible Assets [Line Items]
2023	5,774
2024	2,085
2025	1,324
Net Carrying Amount	$ 9,183

Property and Equipment Net - Components of Property and Equipment,Net (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Property Plant And Equipment [Line Items]
Finance leases	$ 3,425	$ 3,437
Subtotal	89,455	78,416
Less: accumulated depreciation	(51,748)	(46,911)
Total	37,707	31,505
Machinery and equipment
Property Plant And Equipment [Line Items]
Subtotal	$ 10,800	7,577
Machinery and equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	3 years
Machinery and equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	5 years
Computers, software and equipment
Property Plant And Equipment [Line Items]
Subtotal	$ 61,566	42,380
Computers, software and equipment \| Minimum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	3 years
Computers, software and equipment \| Maximum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	5 years
Leasehold improvements
Property Plant And Equipment [Line Items]
Subtotal	$ 10,110	8,493
Leasehold improvements \| Minimum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	2 years
Leasehold improvements \| Maximum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	15 years
Furniture and fixtures
Property Plant And Equipment [Line Items]
Subtotal	$ 3,554	4,150
Furniture and fixtures \| Minimum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	5 years
Furniture and fixtures \| Maximum
Property Plant And Equipment [Line Items]
Property and Equipment Useful Life	7 years
Construction in progress
Property Plant And Equipment [Line Items]
Subtotal		$ 12,379

Property and Equipment Net - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Property Plant And Equipment [Abstract]
Net Book Value of Capitalized Internal-Use Software	$ 21.2	$ 5.3
Depreciation expense	9.4	9.5	$ 9.2
Amortization expense	$ 3.7	$ 3.4	$ 3.1

Property and Equipment Net - Components of Property and Equipment, Net by Geography (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Property Plant And Equipment [Line Items]
Total long-lived assets	$ 37,707	$ 31,505
United States
Property Plant And Equipment [Line Items]
Total long-lived assets	28,779	22,550
Canada
Property Plant And Equipment [Line Items]
Total long-lived assets	2,252	2,850
Germany
Property Plant And Equipment [Line Items]
Total long-lived assets	1,866	1,973
Other countries
Property Plant And Equipment [Line Items]
Total long-lived assets	$ 4,810	$ 4,132

Accrued Expenses and Other Current Liabilities - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Accrued Liabilities And Other Liabilities [Abstract]
Compensation	$ 19,710	$ 39,536
Sales and other taxes payable	4,598	8,574
Cost of revenue related liabilities	4,257	4,634
Professional fees	3,866	3,604
Interest payable	1,828	1,919
Other	13,731	6,200
Total	$ 47,990	$ 64,467

Restructuring and Other Costs, Net - Schedule of Accrual Activity Relating to Restructuring Charges (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost And Reserve [Line Items]
Beginning Balance	$ 5,035	$ 2,702	$ 4,391
Restructuring and other costs, net	8,965	5,092	16,458
Non-cash adjustment	(4,708)	1,809	(1,031)
Cash payments	(4,082)	(4,507)	(17,121)
Foreign exchange impact on ending balance	(56)	(61)	5
Ending Balance	5,154	5,035	2,702
Personnel
Restructuring Cost And Reserve [Line Items]
Beginning Balance	1,620	764	489
Restructuring and other costs, net	1,676	1,689	3,694
Cash payments	(2,021)	(839)	(3,420)
Foreign exchange impact on ending balance	2	6	1
Ending Balance	1,277	1,620	764
Facilities
Restructuring Cost And Reserve [Line Items]
Beginning Balance	1,881	10	26
Restructuring and other costs, net	673	1,394	1,037
Non-cash adjustment	(708)	1,809	(1,031)
Cash payments	(188)	(1,265)	(26)
Foreign exchange impact on ending balance	(58)	(67)	4
Ending Balance	1,600	1,881	10
Restructuring Subtotal
Restructuring Cost And Reserve [Line Items]
Beginning Balance	3,501	774	515
Restructuring and other costs, net	2,349	3,083	4,731
Non-cash adjustment	(708)	1,809	(1,031)
Cash payments	(2,209)	(2,104)	(3,446)
Foreign exchange impact on ending balance	(56)	(61)	5
Ending Balance	2,877	3,501	774
Other
Restructuring Cost And Reserve [Line Items]
Beginning Balance	1,534	1,928	3,876
Restructuring and other costs, net	6,616	2,009	11,727
Non-cash adjustment	(4,000)
Cash payments	(1,873)	(2,403)	(13,675)
Ending Balance	$ 2,277	$ 1,534	$ 1,928

Restructuring and Other Costs, Net - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 8,965	$ 5,092	$ 16,458
Severance Charge
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	1,676	1,689	3,694
Facilities Closure
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	673	1,394	1,037
Other One-Time Charges
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	2,600	$ 2,000
Professional Services Fees
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net			$ 11,700
Stock Based Compensation due to the Resignation of Former CEO
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	4,000
Stock Based Compensation, Net of Forfeitures, due to the Resignation of Former CEO
Restructuring Cost And Reserve [Line Items]
Restructuring and other costs, net	$ 5,000

Leases - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Lessee Lease Description [Line Items]
Operating lease, existence of option to extend	true
Operating lease, option to extend	Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Operating lease, existence of option to terminate	true
Operating lease, option to terminate	Some of our leases include options to extend or terminate the lease prior to the end of the agreed upon lease term. For purposes of calculating lease liabilities, lease terms include options to extend or terminate the lease when it is reasonably certain that we will exercise such options.
Cash payments related to operating leases	$ 6.7	$ 7.8	$ 8.0
Cash payments related to financing leases	0.5	0.5	0.1
Right of use assets obtained in exchange for lease obligations	$ 7.5	$ 2.9	$ 7.9
Minimum
Lessee Lease Description [Line Items]
Operating lease remaining term	1 year
Maximum
Lessee Lease Description [Line Items]
Operating lease remaining term	6 years

Leases - Summary of Lease Term and Incremental Borrowing Rates for Leases (Details)	Sep. 30, 2022	Sep. 30, 2021
Weighted-average remaining lease term (in months):
Operating leases	46 months 15 days	52 months 6 days
Finance leases	35 months 18 days	47 months 3 days
Weighted-average discount rate:
Operating leases	3.70%	5.10%
Finance leases	4.40%	4.40%

Leases - Summary of Lease-related Assets and Liabilities Reported in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
ASSETS
Operating lease right of use assets	$ 14,702	$ 14,901
Finance lease assets	$ 1,259	$ 1,700
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration]	Property and equipment, net	Property and equipment, net
Total lease assets	$ 15,961	$ 16,601
Current liabilities:
Short-term operating lease liabilities	5,071	4,562
Finance	$ 441	$ 430
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Noncurrent
Long-term operating lease liabilities	$ 11,375	$ 12,216
Finance	$ 802	$ 1,234
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other liabilities	Other liabilities
Total lease liability	$ 17,689	$ 18,442

Leases - Summary of Lease Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Finance lease costs:
Amortization of right of use asset	$ 435	$ 410	$ 255
Interest on lease liability	50	63	22
Operating lease cost	6,788	7,619	8,245
Variable lease cost	3,492	2,142	1,060
Sublease income	(187)	(207)	(206)
Total lease cost	$ 10,578	$ 10,027	$ 9,376

Leases - Summary of Undiscounted Future Minimum Lease Payments Under Non-cancelable Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Operating Leases
2023	$ 5,570
2024	4,758
2025	3,221
2026	1,759
2027	1,455
Thereafter	819
Total future minimum lease payments	17,582
Less effects of discounting	(1,136)
Total lease liabilities	16,446
Short-term operating lease liabilities	5,071	$ 4,562
Long-term operating lease liabilities	11,375	12,216
Financing Leases
2023	476
2024	417
2025	362
2026	53
Total future minimum lease payments	1,308
Less effects of discounting	(65)
Total lease liabilities	1,243
Short-term lease liabilities	441	430
Long-term lease liabilities	802	$ 1,234
Total
2023	6,046
2024	5,175
2025	3,583
2026	1,812
2027	1,455
Thereafter	819
Total future minimum lease payments	18,890
Less effects of discounting	(1,201)
Total lease liabilities	17,689
Short-term lease liabilities	5,512
Long-term lease liabilities	$ 12,177

Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands		12 Months Ended
	Oct. 02, 2019	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Oct. 01, 2019
Class Of Stock [Line Items]
Capital stock, shares authorized					600,000,000
Preferred stock, shares authorized					40,000,000
Preferred stock, par value per share					$ 0.01
Common stock, shares authorized		560,000,000	560,000,000		560,000,000
Common stock, par value		$ 0.01	$ 0.01		$ 0.01
Common stock reserved for issuance	6,350,000
Increase in shares available for issuance, description	The shares available for issuance will automatically increase on January 1st of each year, by the lesser of (A) three percent (3%) of the number of shares of Common Stock outstanding as of the close of business on the immediately preceding December 31st; and (B) the number of shares of Common Stock determined by the Board on or prior to such date for such year.
Increase in shares available for issuance expressed as percentage of number of shares of common stock outstanding	3.00%
Stock-based compensation		$ 28,076	$ 60,555	$ 47,285
Due to the Resignation of Former CEO
Class Of Stock [Line Items]
Stock-based compensation		4,000
Due to the Resignation of Former CFO and General Counsel
Class Of Stock [Line Items]
Stock-based compensation		2,400
Net of Forfeitures, Due to the Resignation of Former CEO
Class Of Stock [Line Items]
Stock-based compensation		5,000
Net of Forfeitures, Due to the Resignation of Former CFO and General Counsel
Class Of Stock [Line Items]
Stock-based compensation		200
Restricted Stock Awards
Class Of Stock [Line Items]
Payroll taxes withheld related to vesting of awards		$ 49,000	$ 46,000	$ 9,400
Maximum \| Restricted Stock Awards
Class Of Stock [Line Items]
Vesting period		4 years
Minimum \| Restricted Stock Awards
Class Of Stock [Line Items]
Vesting period		2 years
2019 Equity Incentive Plan
Class Of Stock [Line Items]
Common stock reserved for issuance	5,300,000
Share-based compensation arrangement by share-based payment award, terms of award		Awards issued under the Plan may not have a term greater than ten years from the date of grant.
2019 Equity Incentive Plan \| Maximum
Class Of Stock [Line Items]
Share-based compensation arrangement by share-based payment award, expected term		10 years
2019 Employee Stock Purchase Plan
Class Of Stock [Line Items]
Common stock reserved for issuance	1,050,000
Shares approved for issuance under plan	1,050,000
Plan offering description	At the end of each designated offering period, which occurs every six months on February 15 and August 15, employees can elect to purchase shares of our common stock with contributions of up to 12% of their base pay, accumulated via payroll deductions, at an amount equal to 85% of the lower of our stock price on (i) the first day of the offering period, or (ii) the last day of the offering period.
Employee contributions to purchase Shares, percent of base pay accumulated	12.00%
Percentage of stock price under plan	85.00%

Stockholders' Equity - Schedule of Non-vested Restricted Stock Units (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Sep. 30, 2022 USD ($) $ / shares shares
Time-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	1,420,532
Non-vested, Shares, Granted	808,938
Non-vested, Shares, Vested	(1,029,854)
Non-vested, Shares, Forfeited	(203,600)
Non-vested, Shares, Ending balance	996,016
Performance-Based Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	654,619
Non-vested, Shares, Granted	390,025
Non-vested, Shares, Vested	(474,681)
Non-vested, Shares, Forfeited	(134,968)
Non-vested, Shares, Ending balance	434,995
Restricted Stock Units
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Non-vested, Shares, Beginning balance	2,075,151
Non-vested, Shares, Granted	1,198,963
Non-vested, Shares, Vested	(1,504,535)
Non-vested, Shares, Forfeited	(338,568)
Non-vested, Shares, Ending balance	1,431,011
Non-vested, Shares, Expected to vest	1,431,011
Non-vested, Weighted-Average Grant-Date Fair Value, Beginning balance \| $ / shares	$ 44.20
Non-vested, Weighted-Average Grant-Date Fair Value, Granted \| $ / shares	69.43
Non-vested, Weighted-Average Grant-Date Fair Value, Vested \| $ / shares	58.70
Non-vested, Weighted-Average Grant-Date Fair Value, Forfeited \| $ / shares	54.35
Non-vested, Weighted-Average Grant-Date Fair Value, Ending balance \| $ / shares	62.49
Non-vested, Weighted-Average Grant-Date Fair Value, Expected to vest \| $ / shares	$ 62.49
Non-vested, Weighted-Average Remaining Contractual Term (years), Balance	8 months 12 days
Non-vested, Weighted-Average Remaining Contractual Term (years), Expected to vest	8 months 12 days
Non-vested, Aggregate Intrinsic Value, Balance \| $	$ 22,524
Non-vested, Aggregate Intrinsic Value, Expected to vest \| $	$ 22,524

Stockholders' Equity - Weighted-Average Key Assumptions and Fair Value Results for Shares Issued under ESPP (Details) - Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Expected dividend yield	0.00%	0.00%	0.00%
Risk-free interest rate	0.41%	0.10%	1.56%
Expected volatility	69.58%	96.61%	58.18%
Expected life (in years)	6 months	6 months	6 months
Weighted-average fair value of shares issued (per share)	$ 27.54	$ 35.13	$ 8.93

Stockholders' Equity - Quantities and Average Prices of Shares Issued Under the ESPP (Details) - Employee Stock Purchase Plan - $ / shares	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Shares issued under the ESPP	80,417	44,172	63,503
Average price of shares issued	$ 28.18	$ 73.40	$ 20.66

Stockholders' Equity - Schedule of Stock-based Compensation (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 28,076	$ 60,555	$ 47,285
Cost of Connected Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	499	865	1,382
Cost of Professional Services
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	3,267	4,895	4,191
Research and Development
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	10,196	16,538	13,944
Sales and Marketing
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	3,569	12,533	9,580
General and Administrative
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	6,545	$ 25,724	$ 18,188
Restructuring and Other Costs, Net
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]
Stock-based compensation	$ 4,000

Commitments and Contingencies - Additional Information (Details) $ in Millions	12 Months Ended
	Sep. 30, 2022 USD ($)
Loss Contingencies [Line Items]
Indemnification period for former officers and members of the boards of directors	6 years
Bellevue, Washington Office Space
Loss Contingencies [Line Items]
Letter of credit as security deposit	$ 0.9
Other Facility
Loss Contingencies [Line Items]
Letter of credit as security deposit	$ 0.5

Pension and Other Post-Retirement Benefits - Additional Information (Details) - USD ($) $ in Millions	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Defined Benefit Plan Disclosure [Line Items]
Defined contribution plans, employer matching contribution, percentage	50.00%
Defined contribution plans, employer matching contribution of eligible salary, percentage	6.00%
Defined contribution plans, charges incurred	$ 0.5	$ 0.7	$ 0.7
Pension Plans
Defined Benefit Plan Disclosure [Line Items]
Defined benefit plans, pension expenses	0.5	0.9	0.5
Defined benefit plans, benefit obligation	10.4	14.7	8.3
Defined benefit plans, Net liability	$ 4.9	$ 8.7	$ 7.1

Relationship with Parent and Related Entities - Additional Information (Details)	12 Months Ended
	Sep. 30, 2022 Agreement
OEM and Distribution License Agreements
Relationship With Parent And Related Entities Disclosure [Line Items]
Number of license agreements	4

Income Taxes - Components of (Loss) Income Before Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Domestic	$ (168,452)	$ 20,933	$ (27,889)
Foreign	(30,299)	27,336	4,849
(Loss) income before income taxes	$ (198,751)	$ 48,269	$ (23,040)

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8906-108599

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 20
-Section 25
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=126941158&loc=d3e41242-110953

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 22
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SX 210.5-03(10))
-URI https://asc.fasb.org/extlink&oid=126953954&loc=SL114868664-224227

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-04(8))
-URI https://asc.fasb.org/extlink&oid=120400993&loc=SL114874131-224263

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 235
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-05(b)(2))
-URI https://asc.fasb.org/extlink&oid=120399901&loc=d3e537907-122884

Reference 9: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 220
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-04(15))
-URI https://asc.fasb.org/extlink&oid=120399700&loc=SL114874048-224260

+ Details

Income Taxes - Components of Provision for (Benefit from) Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Current:
Federal	$ 12
State	15	$ 35
Foreign	14,761	6,760	$ 5,844
Total current	14,788	6,795	5,844
Deferred:
Federal	(6,823)	5,437	(1,636)
State	218	5,001	(239)
Foreign	103,892	(14,857)	(8,693)
Total deferred	97,287	(4,419)	(10,568)
Provision for (benefit from) income taxes	$ 112,075	$ 2,376	$ (4,724)
Effective income tax rate	56.40%	4.90%	20.50%

Income Taxes - Schedule of Provision for (Benefit from) Income Taxes Differed from the Amount Computed by Applying Federal Statutory Rate (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Income Tax Disclosure [Abstract]
Federal tax provision at statutory rate	$ (41,738)	$ 10,137	$ (4,838)
State tax, net of federal benefit	185	3,979	(221)
Foreign tax rate and other foreign related tax items	920	(15,626)	(2,347)
Uncertain tax positions	25	861	(887)
Stock-based compensation	(15,020)	1,629	3,456
Global intangible low-taxed income	(554)	554	336
Goodwill impairment	39,933
Change in valuation allowance	128,034	(225)
Non-deductible expenditures	1,095	3,999	2,728
R&D credits	(805)	(2,932)	(2,951)
Provision for (benefit from) income taxes	$ 112,075	$ 2,376	$ (4,724)

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Jun. 30, 2022
Income Taxes [Line Items]
U.S. federal statutory rates	21.00%	21.00%	21.00%
Income tax expense (benefit)	$ 112,075	$ 2,376	$ (4,724)
Deferred tax assets valuation allowance	126,860	12,209
Uncertain tax positions	76,590	$ 87,144	67,358
Operating loss carryforwards expiration year		2026
Uncertain tax positions cumulative translation adjustments	(13,200)	$ 800
Increases related to tax positions taken from prior periods	2,277	9,367
Interest related to uncertain tax positions	(300)	300	(100)
Recognized interest income	3,500	$ 4,200
Minimum \| Research and Development
Income Taxes [Line Items]
Operating loss carryforwards expiration year		2023
Maximum \| Research and Development
Income Taxes [Line Items]
Operating loss carryforwards expiration year		2041
U.S. Federal
Income Taxes [Line Items]
Net operating loss carryforwards	43,600	$ 15,000
U.S. Federal \| Research and Development
Income Taxes [Line Items]
Net operating loss carryforwards	10,100	10,800
Uncertain tax positions	8,100	9,100
U.S. Federal \| Unlimited Period
Income Taxes [Line Items]
Net operating loss carryforwards	42,800
State
Income Taxes [Line Items]
Net operating loss carryforwards	11,900	4,300
State \| Research and Development
Income Taxes [Line Items]
Net operating loss carryforwards	200	300
Asset and Liability Method
Income Taxes [Line Items]
Pre-spin tax attributes and recognized beginning balance adjustments uncertain tax positions		9,100
Domestic
Income Taxes [Line Items]
Deferred tax assets valuation allowance	8,200	8,200
Foreign
Income Taxes [Line Items]
Deferred tax assets valuation allowance	118,700	4,000
Net operating loss carryforwards	184,900	99,900
Uncertain tax positions	39,500	32,800
Foreign \| Research and Development
Income Taxes [Line Items]
Net operating loss carryforwards	4,900	4,300
Netherlands
Income Taxes [Line Items]
Income tax expense (benefit)		(15,900)	$ (5,000)
Deferred tax assets valuation allowance				$ 107,600
Net operating loss carryforwards	$ 157,400	$ 70,100

Income Taxes - Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Deferred tax assets:
Net operating loss carryforwards	$ 44,131	$ 17,098
Capital loss carryforwards	8,187	8,187
Federal credit carryforwards	5,916	5,160
Accrued expenses and other reserves	3,316	5,992
Difference in timing of revenue related items	31,261	39,105
Acquired intangibles	89,434	102,481
Interest limitations carryforward	10,228	7,319
Operating lease liabilities	4,874	5,065
Depreciation	2,924	2,723
Deferred compensation	1,910	2,174
Pension obligation	730	1,870
Other	3,078	1,249
Total deferred tax assets	205,989	198,423
Valuation allowance for deferred tax assets	(126,860)	(12,209)
Deferred tax assets	79,129	186,214
Deferred tax liabilities:
Depreciation	(6,143)	(4,636)
Acquired intangibles	(14,570)	(17,204)
Convertible debt	(2,463)	(3,349)
Operating lease right-of-use assets	(4,189)	(4,303)
Other	(749)	(163)
Total deferred tax liabilities	(28,114)	(29,655)
Net deferred tax assets	$ 51,015	$ 156,559

Income Taxes - Aggregate Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021
Income Tax Disclosure [Abstract]
Balance at the beginning of the year	$ 87,144	$ 67,358
Beginning balance adjustment	(13,181)	9,884
Increases related to tax positions taken from prior periods	2,277	9,367
Increases related to tax positions taken during current period	2,088	768
Decreases for tax settlements and lapse in statutes	(1,738)	(233)
Balance at the end of the year	$ 76,590	$ 87,144

Long-Term Debt - Schedule of Long-Term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
Total debt	$ 270,374	$ 271,343
Less: current portion	(10,938)	(6,250)
Total long-term debt	259,436	265,093
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Total debt	160,904	156,205
Total long-term debt	160,904
Senior Credit Facilities
Debt Instrument [Line Items]
Total debt	109,470	$ 115,138
Less: current portion	(10,938)
Total long-term debt	$ 98,532

- Definition

Amount, excluding unamortized premium (discount) and debt issuance cost, of long-term debt. Excludes lease obligation.

+ References + Details

Long-Term Debt - Schedule of Long-Term Debt (Parenthetical) (Details) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020	Jun. 02, 2020
Debt Instrument [Line Items]
Debt instrument, deferred issuance costs			$ 627
Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument, unamortized discount	$ 1,310	$ 1,829
Debt instrument, deferred issuance costs	$ 158	$ 221
Debt instrument, effective interest rate	5.37%	2.86%
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Debt instrument, interest rate	3.00%			3.00%
Debt instrument, maturity year	2025
Debt Instrument, unamortized discount	$ 11,264	$ 15,019
Debt instrument, deferred issuance costs	$ 2,832	$ 3,776
Debt instrument, effective interest rate	6.29%

Long-Term Debt - Summary of Maturities of Borrowing Obligations (Details) - USD ($) $ in Thousands	Sep. 30, 2022	Sep. 30, 2021
Debt Instrument [Line Items]
2023	$ 10,938
2024	12,500
2025	262,500
Total before unamortized discount and issuance costs and current portion	285,938
Less: unamortized discount and issuance costs	(15,564)
Less: current portion of long-term debt	(10,938)	$ (6,250)
Total long-term debt	259,436	$ 265,093
Senior Facilities
Debt Instrument [Line Items]
2023	10,938
2024	12,500
2025	87,500
Total before unamortized discount and issuance costs and current portion	110,938
Less: unamortized discount and issuance costs	(1,468)
Less: current portion of long-term debt	(10,938)
Total long-term debt	98,532
Convertible Senior Notes
Debt Instrument [Line Items]
2025	175,000
Total before unamortized discount and issuance costs and current portion	175,000
Less: unamortized discount and issuance costs	(14,096)
Total long-term debt	$ 160,904

Long-Term Debt - Additional Information (Details)					3 Months Ended				12 Months Ended
Long-Term Debt - Additional Information (Details)	Nov. 22, 2022 USD ($)	Dec. 17, 2020	Jun. 12, 2020 USD ($)	Jun. 02, 2020 USD ($) Days $ / shares shares	Sep. 30, 2021 USD ($)	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2022 USD ($)	Sep. 30, 2021 USD ($)	Sep. 30, 2020 USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of notes										$ 0	$ 547,719,000
LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate									2.25%
Senior Credit Facilities
Debt Instrument [Line Items]
Pledge equity interests in foreign subsidiaries			65.00%
Minimum liquidity									$ 75,000,000
Debt instrument, covenant description									The Credit Agreement contains certain affirmative and negative covenants customary for financings of this type that, among other things, limit our and our subsidiaries’ ability to incur additional indebtedness or liens, to dispose of assets, to make certain fundamental changes, to designate subsidiaries as unrestricted, to make certain investments, to prepay certain indebtedness and to pay dividends, or to make other distributions or redemptions/repurchases, in respect of our and our subsidiaries’ equity interests. In addition, the Credit Agreement contains financial covenants, each tested quarterly, (1) a net secured leveraged ratio of not greater than 3.25 to 1.00; (2) a net total leverage ratio of not greater than 4.25 to 1.00; and (3) minimum liquidity of at least $75 million. The Credit Agreement also contains events of default customary for financings of this type, including certain customary change of control events. As of September 30, 2022 and 2021, we were in compliance with all Credit Agreement covenants.
Amended Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument, interest rate description									The Amendment revised certain interest rates in the Credit Agreement. Following delivery of a compliance certificate for the first full fiscal quarter after the Amendment No. 1 Effective Date, the applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is LIBOR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is LIBOR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is LIBOR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is LIBOR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is LIBOR plus 2.20% or ABR plus 1.00%. As a result of the Amendment, the applicable LIBOR floor was reduced from 0.50% to 0.00%. From the Amendment No. 1 Effective Date until the fiscal quarter ended December 31, 2020, the interest rate was LIBOR plus 2.50%. For the three months ended March 31, 2021, the interest rate was LIBOR plus 2.25%. For the three months ended June 30, 2021, the interest rate was LIBOR plus 2.25%. For the three months ended September 30, 2021, the interest rate was LIBOR plus 2.25%.
Interest expense									$ 4,300,000	4,100,000	1,500,000
Description of unused line fee									In addition, the quarterly commitment fee required to be paid based on the unused portion of the Revolving Facility is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the unused line fee is 0.500%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the unused line fee is 0.450%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the unused line fee is 0.400%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the unused line fee is 0.350%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the unused line fee is 0.300%.
Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		0.00%	0.50%		2.25%	2.25%	2.25%	2.50%
Amended 2 Senior Credit Facilities
Debt Instrument [Line Items]
Debt Instrument, interest rate description									Amendment No. 2 revised certain interest rates in the Credit Agreement. The applicable margins for the revolving credit and term facilities is subject to a pricing grid based upon the net total leverage ratio as follows (i) if the net total leverage ratio is greater than 3.00 to 1.00, the applicable margin is SOFR plus 3.00% or ABR plus 2.00%; (ii) if the net total leverage ratio is less than or equal to 3.00 to 1.00 but greater than 2.50 to 1.00, the applicable margin is SOFR plus 2.75% or ABR plus 1.75%; (iii) if the net total leverage ratio is less than or equal to 2.50 to 1.00 but greater than 2.00 to 1.00, the applicable margin is SOFR plus 2.50% or ABR plus 1.50%; (iv) if the net total leverage ratio is less than or equal to 2.00 to 1.00 but greater than 1.50 to 1.00, the applicable margin is SOFR plus 2.25% or ABR plus 1.25%; and (v) if the net total leverage ratio is less than or equal to 1.50 to 1.00, the applicable margin is SOFR plus 2.20% or ABR plus 1.00%. From the Amendment No. 2 Effective Date until delivery of the first compliance certificate after the covenant adjustment period, the applicable margin will be SOFR plus 3.00% or ABR plus 2.00%.
Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Minimum liquidity	$ 125,000,000
Maximum capital expenditures amount	$ 7,500,000
Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.00%
Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	3.00%
Maximum \| Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio									4.25
Net secured leverage ratio									3.25%
Maximum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net secured leverage ratio	4.25%
3.00% Convertible Senior Notes Due 2025
Debt Instrument [Line Items]
Aggregate principal amount				$ 175,000,000.0
Debt instrument convertible, if-converted value of the Notes less than its principal amount									$ 101,300,000
Debt instrument convertible, if-converted value of the Notes exceeded its principal amount										274,400,000
Debt instrument, interest rate				3.00%					3.00%
Debt Instrument, option to purchase additional principal amount				$ 25,000,000.0
Proceeds from issuance of notes				$ 169,800,000
Debt instrument, maturity date				Jun. 01, 2025
Debt instrument, convertible trading days \| Days				20
Debt instrument, convertible consecutive trading days \| Days				30
Debt instrument, convertible conversion price percentage				130.00%
Debt instrument, convertible principal amount				$ 1,000
Debt instrument, convertible maximum conversion price percentage				98.00%
Debt instrument, conversion initial rate \| shares				26.7271
Debt instrument, convertible principal amount				$ 1,000
Debt instrument, conversion price \| $ / shares				$ 37.42
Debt instrument, redemption price percentage of principal amount				100.00%
Debt instrument, sinking fund				$ 0
Debt instrument, percentage of repurchase principal amount				100.00%
Carrying value of debt				$ 155,300,000
Additional paid-in capital in stockholder's equity				19,700,000
Carrying amount of equity component, net of taxes and transaction costs					$ 14,400,000				$ 14,400,000	14,400,000
Transaction costs				5,600,000
Transaction costs amortized as interest expense				5,000,000.0
Transaction costs allocated to equity component recorded as decrease in additional paid-in capital				$ 600,000
Interest expense									$ 9,945,000	9,660,000	$ 3,169,000
3.00% Convertible Senior Notes Due 2025 \| Minimum
Debt Instrument [Line Items]
Debt instrument, convertible trading days \| Days				20
Debt instrument, convertible conversion price percentage				130.00%
3.00% Convertible Senior Notes Due 2025 \| Maximum
Debt Instrument [Line Items]
Debt instrument covenants, percentage of aggregate principal amount payable.				25.00%
Four Year Senior Secured Term Loan Facility \| Senior Credit Facilities
Debt Instrument [Line Items]
Debt instrument term			4 years
Credit facility maximum borrowing capacity			$ 125,000,000.0
Net proceeds from issuance of credit facility			123,000,000.0
Four Year Senior Secured Term Loan Facility \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Debt instrument periodic payments equivalent percentage of annual amount on original principal amount during first two years		1.25%
Debt instrument, frequency of periodic principal payments									quarterly
Debt instrument periodic payments equivalent percentage of annual amount on original principal amount after two years		2.50%
Senior Secured First-lien Revolving Credit Facility \| Senior Credit Facilities
Debt Instrument [Line Items]
Credit facility maximum borrowing capacity			$ 50,000,000.0
Outstanding amount under credit facility					$ 0				$ 0	$ 0
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		3.00
Unused line fee percentage		50.00%
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		3.00%
Net Leverage Ratio Greater Than 3.00 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		2.00%
Net Leverage Ratio Greater Than 3.00 \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	3.00
Net Leverage Ratio Greater Than 3.00 \| Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.00%
Net Leverage Ratio Greater Than 3.00 \| Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	3.00%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage		45.00%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		2.75%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		1.75%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.75%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.75%
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Minimum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		2.50
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Minimum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	2.50
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Maximum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		3.00
Net Leverage Ratio Less Than or Equal to 3.00 but Greater Than 2.50 \| Maximum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	3.00
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage		40.00%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		2.50%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		1.50%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.50%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.50%
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Minimum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		2.00
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Minimum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	2.00
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Maximum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		2.50
Net Leverage Ratio Less Than or Equal to 2.50 but Greater Than 2.00 \| Maximum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	2.50
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Unused line fee percentage		35.00%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		2.25%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		1.25%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.25%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.25%
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Minimum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		1.50
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Minimum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	1.50
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Maximum \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		2.00
Net Leverage Ratio Less Than or Equal to 2.00 but Greater Than 1.50 \| Maximum \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	2.00
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities
Debt Instrument [Line Items]
Net leverage ratio		1.50
Unused line fee percentage		30.00%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities \| LIBOR
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		2.20%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended Senior Credit Facilities \| Base Rate
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate		1.00%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended 2 Senior Credit Facilities \| Subsequent Event
Debt Instrument [Line Items]
Net leverage ratio	1.50
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended 2 Senior Credit Facilities \| Base Rate \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	1.00%
Net Leverage Ratio Less Than or Equal to 1.50 \| Amended 2 Senior Credit Facilities \| SOFR \| Subsequent Event
Debt Instrument [Line Items]
Debt Instrument, basis spread on variable rate	2.20%

Long-Term Debt - Schedule of Interest Expense Related to Notes (Details) - 3.00% Convertible Senior Notes Due 2025 - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2022	Sep. 30, 2021	Sep. 30, 2020
Debt Instrument [Line Items]
Contractual interest expense	$ 5,246	$ 5,246	$ 1,753
Amortization of debt discount	3,755	3,527	1,131
Amortization of issuance costs	944	887	285
Total interest expense related to the Notes	$ 9,945	$ 9,660	$ 3,169