0001169561-20-000011 | 10-Q | XBRL Viewer

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Cover Page - shares	9 Months Ended
Cover Page - shares	Dec. 31, 2019	Jan. 30, 2020
Cover page.
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Dec. 31, 2019
Document Transition Report	false
Entity File Number	1-33026
Entity Registrant Name	Commvault Systems, Inc.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	22-3447504
Entity Address, Address Line One	1 Commvault Way
Entity Address, City or Town	Tinton Falls
Entity Address, State or Province	NJ
Entity Address, Postal Zip Code	07724
City Area Code	732
Local Phone Number	870-4000
Title of 12(b) Security	Common Stock
Trading Symbol	CVLT
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		46,601,042
Entity Central Index Key	0001169561
Current Fiscal Year End Date	--03-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Current assets:
Cash and cash equivalents	$ 272,025	$ 327,992
Restricted cash	8,000	0
Short-term investments	64,988	130,338
Trade accounts receivable	161,626	176,836
Other current assets	18,774	19,836
Total current assets	525,413	655,002
Property and equipment, net	115,972	122,716
Operating lease assets	15,248
Deferred commissions cost	31,990	33,619
Intangible assets, net	49,175	0
Goodwill	112,435	0
Other assets	12,335	11,116
Total assets	862,568	822,453
Current liabilities:
Accounts payable	1,069	2,186
Accrued liabilities	89,474	85,721
Current portion of operating lease liabilities	7,730
Deferred revenue	235,513	238,439
Total current liabilities	333,786	326,346
Deferred revenue, less current portion	97,730	99,257
Deferred tax liabilities, net	1,726	2,594
Long-term operating lease liabilities	9,223
Other liabilities	2,470	2,953
Commitments and contingencies
Stockholders’ equity:
Preferred stock, $0.01 par value: 50,000 shares authorized, no shares issued and outstanding	0	0
Common stock, $0.01 par value: 250,000 shares authorized, 46,497 shares and 45,582 shares issued and outstanding at December 31, 2019 and March 31, 2019, respectively	463	454
Additional paid-in capital	962,097	887,907
Accumulated deficit	(533,154)	(485,490)
Accumulated other comprehensive loss	(11,773)	(11,568)
Total stockholders’ equity	417,633	391,303
Total liabilities and stockholders’ equity	$ 862,568	$ 822,453

Consolidated Balance Sheets (Parenthetical) - $ / shares	Dec. 31, 2019	Mar. 31, 2019
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	250,000,000	250,000,000
Common stock, shares issued (in shares)	46,497,000	45,582,000
Common stock, shares outstanding (in shares)	46,497,000	45,582,000

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Revenues:
Total revenues	$ 176,351	$ 184,275	$ 506,136	$ 529,530
Cost of revenues:
Total cost of revenues	30,523	28,853	90,484	83,332
Gross margin	145,828	155,422	415,652	446,198
Operating expenses:
Sales and marketing	84,563	94,392	252,908	281,502
Research and development	30,503	22,005	77,310	69,751
General and administrative	23,864	20,900	71,124	69,001
Restructuring	2,021	4,953	18,951	13,342
Depreciation and amortization	5,356	2,728	10,681	7,961
Total operating expenses	146,307	144,978	430,974	441,557
Income (loss) from operations	(479)	10,444	(15,322)	4,641
Interest income	786	1,721	4,270	3,760
Income (loss) before income taxes	307	12,165	(11,052)	8,401
Income tax expense (benefit)	957	(1,235)	3,528	2,677
Net income (loss)	$ (650)	$ 13,400	$ (14,580)	$ 5,724
Net income (loss) per common share:
Basic (in dollars per share)	$ (0.01)	$ 0.29	$ (0.32)	$ 0.12
Diluted (in dollars per share)	$ (0.01)	$ 0.28	$ (0.32)	$ 0.12
Weighted average common shares outstanding:
Basic (in shares)	46,028	46,074	45,586	45,803
Diluted (in shares)	46,028	47,357	45,586	47,674
Software and products
Revenues:
Total revenues	$ 76,631	$ 84,515	$ 208,900	$ 229,069
Cost of revenues:
Total cost of revenues	8,077	6,093	22,938	15,262
Services
Revenues:
Total revenues	99,720	99,760	297,236	300,461
Cost of revenues:
Total cost of revenues	$ 22,446	$ 22,760	$ 67,546	$ 68,070

Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income (loss)	$ (650)	$ 13,400	$ (14,580)	$ 5,724
Other comprehensive loss:
Foreign currency translation adjustment	960	(173)	(205)	(6,493)
Comprehensive income (loss)	$ 310	$ 13,227	$ (14,785)	$ (769)

- Definition

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

+ References + Details

Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid – In Capital	Accumulated Deficit	Accumulated Other Comprehensive Loss
Beginning balance (in shares) at Mar. 31, 2018		45,118
Beginning balance at Mar. 31, 2018	$ 404,064	$ 450	$ 782,764	$ (373,678)	$ (5,472)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	51,586		51,586
Share issuances related to stock-based compensation (in shares)		2,185
Share issuances related to stock-based compensation	32,829	$ 21	32,808
Repurchase of common stock (in shares)		(1,504)
Repurchase of common stock	(92,683)	$ (15)	(12,275)	(80,393)
Net income (loss)	5,724			5,724
Other comprehensive income (loss)	(6,493)				(6,493)
Ending balance (in shares) at Dec. 31, 2018		45,799
Ending balance at Dec. 31, 2018	395,027	$ 456	854,883	(448,347)	(11,965)
Beginning balance (in shares) at Sep. 30, 2018		46,034
Beginning balance at Sep. 30, 2018	417,145	$ 458	843,622	(415,143)	(11,792)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	15,832		15,832
Share issuances related to stock-based compensation (in shares)		702
Share issuances related to stock-based compensation	3,203	$ 7	3,196
Repurchase of common stock (in shares)		(937)
Repurchase of common stock	(54,380)	$ (9)	(7,767)	(46,604)
Net income (loss)	13,400			13,400
Other comprehensive income (loss)	(173)				(173)
Ending balance (in shares) at Dec. 31, 2018		45,799
Ending balance at Dec. 31, 2018	395,027	$ 456	854,883	(448,347)	(11,965)
Beginning balance (in shares) at Mar. 31, 2019		45,582
Beginning balance at Mar. 31, 2019	391,303	$ 454	887,907	(485,490)	(11,568)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	48,581		48,581
Share issuances related to business combinations	1,616		1,616
Share issuances related to stock-based compensation (in shares)		1,745
Share issuances related to stock-based compensation	30,944	$ 17	30,927
Repurchase of common stock (in shares)		(830)
Repurchase of common stock	(40,026)	$ (8)	(6,934)	(33,084)
Net income (loss)	(14,580)			(14,580)
Other comprehensive income (loss)	(205)				(205)
Ending balance (in shares) at Dec. 31, 2019		46,497
Ending balance at Dec. 31, 2019	417,633	$ 463	962,097	(533,154)	(11,773)
Beginning balance (in shares) at Sep. 30, 2019		45,409
Beginning balance at Sep. 30, 2019	372,114	$ 452	916,899	(532,504)	(12,733)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation	18,974		18,974
Share issuances related to business combinations	1,616		1,616
Share issuances related to stock-based compensation (in shares)		1,088
Share issuances related to stock-based compensation	24,619	$ 11	24,608
Net income (loss)	(650)			(650)
Other comprehensive income (loss)	960				960
Ending balance (in shares) at Dec. 31, 2019		46,497
Ending balance at Dec. 31, 2019	$ 417,633	$ 463	$ 962,097	$ (533,154)	$ (11,773)

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Cash flows from operating activities
Net Income (loss)	$ (14,580)	$ 5,724
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization	11,618	9,112
Noncash stock-based compensation	48,581	51,586
Deferred income taxes	0	(150)
Amortization of deferred commissions cost	13,150	13,006
Impairment of operating lease assets	2,195
Changes in operating assets and liabilities:
Trade accounts receivable	12,735	(17,918)
Operating lease assets and liabilities, net	(512)
Other current assets and Other assets	5,586	10,425
Deferred commissions cost	(11,352)	(13,765)
Accounts payable	(1,726)	637
Accrued liabilities	(2,018)	5,345
Deferred revenue	(6,262)	9,368
Other liabilities	(1,407)	224
Net cash provided by operating activities	56,008	73,594
Cash flows from investing activities
Purchase of short-term investments	(32,800)	(98,150)
Proceeds from maturity of short-term investments	98,150	99,243
Purchase of property and equipment	(1,911)	(5,104)
Business combination, net of cash acquired	(157,495)	0
Net cash used in investing activities	(94,056)	(4,011)
Cash flows from financing activities
Repurchase of common stock	(40,026)	(92,683)
Proceeds from stock-based compensation plans	30,944	32,829
Net cash used in financing activities	(9,082)	(59,854)
Effects of exchange rate — changes in cash	(837)	(13,115)
Net decrease in cash, cash equivalents and restricted cash	(47,967)	(3,386)
Cash, cash equivalents and restricted cash at beginning of period	327,992	330,784
Cash, cash equivalents and restricted cash at end of period	$ 280,025	$ 327,398

Basis of Presentation	9 Months Ended
Basis of Presentation	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements of Commvault Systems, Inc. and its subsidiaries ("Commvault" or the "Company") as of December 31, 2019 and for the three and nine months ended December 31, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year. The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.

Summary of Significant Accounting Policies

9 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Correction of an Immaterial Error in Previously Issued Financial Statements

Subsequent to the issuance of the financial statements for the year ended March 31, 2018 and for the interim periods in fiscal 2019, the Company concluded that the Consolidated Statement of Operations contained an immaterial error related to the classification of legal fees related to intellectual property as Research and development expenses and not General and administrative expenses. These immaterial errors have been corrected for the comparative period shown by reclassifying $911 and $2,466 from Research and development expense to General and administrative expense for the three and nine months ended December 31, 2018. This immaterial error did not have any impact on our financial position, net loss or cash flow.

Recently Issued Accounting Standards

Leases

In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Consolidated Statement of Operations or Consolidated Statement of Cash Flows.

Credit Losses on Financial Instruments

In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company does not expect the adoption of ASU 2016-13 will have a material impact the financial statements.

There have been no other additional significant changes in the Company’s accounting policies during the nine months ended December 31, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above.

Concentration of Credit Risk

The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.

Sales through the Company’s distribution agreement with Arrow Enterprise Computing Solutions, Inc. (“Arrow”) totaled 37% of total revenues for both the nine months ended December 31, 2019 and 2018. Arrow accounted for approximately 32% of total accounts receivable as of December 31, 2019 and 38% of total accounts receivable as of March 31, 2019.

Sales through the Company's original manufacturing agreement with Hitachi Vantara (formerly Hitachi Data Systems) ("Hitachi") accounted for 11% of total accounts receivables as of December 31, 2019.

Fair Value of Financial Instruments

The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. The contingent consideration liability associated with the Hedvig acquisition as discussed further in Note 3 of the unaudited consolidated financial statements was valued based on a probability weighted-average approach.

The following table summarizes the composition of the Company’s financial assets measured at fair value at December 31, 2019 and March 31, 2019:



December 31, 2019	Level 1		Level 2		Level 3			Total
Assets:
Cash equivalents	$	34,800	—		—			$	34,800
Short-term investments	$	—	66,262		—			$	66,262
Total assets	$	34,800	$	66,262	—			$	101,062
Liabilities:
Contingent consideration	$	—	$	—	$	(4,000	)	$	(4,000	)



March 31, 2019	Level 1		Level 2		Level 3	Total
Assets:
Cash equivalents	$	102,702	—		—	$	102,702
Short-term investments	$	—	131,937		—	$	131,937
Total assets	$	102,702	$	131,937	—	$	234,639

Goodwill and Intangible Assets

Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying value of goodwill is tested for impairment on an annual basis on January 1, or more often if an event occurs or circumstances change that would more likely than not reduce the fair value of its carrying amount. For the purpose of impairment testing, the Company has a single reporting unit. The impairment test consists of comparing the fair value with its carrying amount that includes goodwill. If the carrying amount of goodwill exceeds the fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its fair value.

Purchased intangible assets with finite lives are valued using the income method and are amortized on a straight-line basis over their economic lives of five years for developed technology and two years for customer relationships as the Company believes this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value.

Business Combination

9 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Business Combination

On October 1, 2019, the Company completed the acquisition of Hedvig Inc., a Delaware corporation, (“Hedvig”), for a purchase price of $163,205, which consisted of $157,589 of cash (exclusive of $4,000 of contingent consideration), and $1,616 of restricted stock units.

The Company also entered into compensation arrangements with the employees of Hedvig. This included the issuance of restricted stock units that vest over the next three years (a portion of which is allocated to the purchase price). Refer to Note 8 of the unaudited consolidated financial statements for further discussion on stock awards. Additionally, certain Hedvig shareholders will receive cash payments totaling $14,100 over the course of the 30 months following the date of acquisition, contingent on their continued employment with the Company. While these payments are proportionate to these shareholders' ownership of Hedvig, under US GAAP they are accounted for as compensation expense over the course of the 30 month service period, and not included in the purchase price.

The following table summarizes the purchase price and preliminary purchase price allocation made as of the date of acquisition:



Purchase price allocation:
Cash paid at closing	$	157,589
Fair value of restricted stock units included in purchase price	1,616
Fair value of contingent consideration	4,000
Total purchase price	$	163,205

Assets acquired and liabilities assumed:
Cash	$	94
Trade accounts receivable	1,074
Other current assets	104
Property and equipment	202
Intangible assets	52,000
Other assets	682
Accounts payable and accrued liabilities	(1,060		)
Deferred revenue	(2,231		)
Operating lease liability, net of operating lease assets	(11		)
Deferred tax liability	(84		)
Total identifiable net assets acquired and liabilities assumed	50,770
Goodwill	112,435
Total purchase price	163,205

Contingent consideration

The contingent consideration arrangement requires the Company to pay up to $8,000 of cash to the former owners of Hedvig, contingent on the Company receiving one or more bona fide and valid purchase orders from a specified customer, no later than April 30, 2020. The $8,000 is classified as Restricted cash on the Consolidated Balance Sheet. The actual consideration paid can range from $0 to $8,000 and is based on the amount of orders received. The fair value of the contingent liability was estimated to be $4,000 based on a probability weighted-average approach and was included in the purchase price. The $4,000 liability is included in Accrued liabilities on the Consolidated Balance Sheet. At the end of each reporting period after the acquisition date, the arrangement is remeasured at its fair value, with changes in fair value recorded in earnings. Changes in fair value will be recognized in General and administrative expense. As of December 31, 2019, the Company continues to estimate the fair value of the liability as $4,000.

Actual and Unaudited Pro Forma Information

The unaudited amounts of Hedvig’s revenue and net loss included in the Company’s consolidated income statement for both the three and nine months ended December 31, 2019, and the revenue and net loss of the combined entity had the acquisition date been April 1, 2018, are as follows:



	Revenue		Net Loss
Actual from 10/01/2019 - 12/31/2019	$	240	$	(9,325	)

Fiscal 2020 supplemental pro forma from 04/01/2019 - 12/31/2019	$	507,241	$	(19,246	)

Fiscal 2019 supplemental pro forma from 04/01/2018 - 12/31/2018	$	532,825	$	(21,072	)

The Company's post-acquisition loss for the three and nine months ended December 31, 2019 includes expenses related to the noncash amortization of intangible assets, compensation paid to Hedvig employees, restricted stock units granted to Hedvig employees and the cash payments being made to Hedvig shareholders over a 30 month service period as discussed above.

The fiscal 2020 supplemental pro forma net loss was adjusted to exclude $5,639 of acquisition-related costs incurred in fiscal 2020. The fiscal 2019 supplemental pro forma net loss was adjusted to include these charges. In addition to estimated operating expenses, both periods include noncash amortization expenses related to intangible assets as if the acquisition had taken place on April 1, 2018.

Goodwill and Intangible Assets, Net

9 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill

The goodwill of $112,435 arising from the acquisition represents the estimated value of potential expansion with new customers, the opportunity to further develop sales relationships with new customer and intangible assets that do not qualify for separate recognition. None of the goodwill recorded is expected to be deductible for income tax purposes. The Company will perform the annual impairment test of goodwill on January 1.

Intangible assets, net

Intangible assets consist of developed technology and customer relationships which were valued using the income approach. Developed technology and customer relationships have estimated useful lives of five and two years, respectively, and are being amortized on a straight-line basis. Purchased intangible assets, net of amortization are summarized below:



	December 31, 2019
	Gross		Accumulated Amortization			Net Assets
Developed technology	$	49,000	$	(2,450	)	$	46,550
Customer relationships	3,000		(375		)	2,625
Total intangible assets	$	52,000	$	(2,825	)	$	49,175

Future amortization expense associated with intangible assets with finite lives is expected to be:



	December 31, 2019
2020 (remaining)	$	2,825
2021	11,300
2022	10,550
2023	9,800
2024	9,800
Thereafter	4,900
	$	49,175

Revenue

9 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services.

Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period.

Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year.

The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed.

Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis.

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APAC (Australia, New Zealand, Southeast Asia, China). The Company operates in one segment.



	Three Months Ended December 31, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	40,291	$	29,107	$	7,233	$	76,631
Customer Support Revenue	57,856		22,237		10,438		90,531
Professional Services	4,883		2,673		1,633		9,189
Total Revenue	$	103,030	$	54,017	$	19,304	$	176,351



	Three Months Ended December 31, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,798	$	31,073	$	11,644	$	84,515
Customer Support Revenue	58,575		20,597		9,669		88,841
Professional Services	6,193		3,014		1,712		10,919
Total Revenue	$	106,566	$	54,684	$	23,025	$	184,275



	Nine Months Ended December 31, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	107,375	$	71,922	$	29,603	$	208,900
Customer Support Revenue	173,450		65,810		30,756		270,016
Professional Services	14,179		8,035		5,006		27,220
Total Revenue	$	295,004	$	145,767	$	65,365	$	506,136



	Nine Months Ended December 31, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	125,290	$	70,624	$	33,155	$	229,069
Customer Support Revenue	178,676		61,399		28,779		268,854
Professional Services	17,467		8,945		5,195		31,607
Total Revenue	$	321,433	$	140,968	$	67,129	$	529,530

Information about Contract Balances

Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts.

In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in other assets. The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows:



	Accounts Receivable			Unbilled Receivable (current)		Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266	$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(15,895		)	685		1,431		(2,926		)	(1,527		)
Ending Balance as of December 31, 2019	$	145,675		$	15,951	$	8,647	$	235,513		$	97,730

The decrease in accounts receivable is primarily a result of a decrease in software and products revenue relative to the fourth quarter of the prior year. The decrease in deferred revenue is primarily the result of a decrease in deferred customer support revenue related to software and products revenue transactions and customer support renewals relative to the fourth quarter of fiscal 2019 and a weakening of the U.S. dollar.

The amount of revenue recognized in fiscal 2020 that was included in the March 31, 2019 balance of deferred revenue was $51,753 and $207,938 for the three and nine months ended December 31, 2019, respectively. The vast majority of this revenue consists of customer support arrangements. The amount of software and products revenue recognized in the three and nine months ended December 31, 2019 related to performance obligations from prior periods was not significant.

Remaining Performance Obligations

In addition to the amounts included in deferred revenue as of December 31, 2019, $28,655 of revenue may be recognized from remaining performance obligations, of which $3,103 was related to software and products. The Company expects the majority of this software and products revenue to be recognized next quarter. The vast majority of the services revenue is related to other professional services which may be recognized over the next twelve months but is contingent upon a number of factors, including customers’ needs and schedules.

Net Income per Common Share	9 Months Ended
Net Income per Common Share	Dec. 31, 2019
Earnings Per Share [Abstract]
Net Income per Common Share	Net Income per Common Share The diluted weighted-average shares outstanding exclude outstanding stock options, restricted stock units, performance restricted stock units and shares to be purchased under the employee stock purchase plan totaling 5,459 and 1,045 for the three months ended December 31, 2019 and 2018, respectively, and 4,952 and 1,024 for the nine months ended December 31, 2019 and 2018, because the effect would have been anti-dilutive.

Commitments and Contingencies	9 Months Ended
Commitments and Contingencies	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, the Company is subject to claims in legal proceedings arising in the normal course of business. The Company does not believe that it is currently party to any pending legal action that could reasonably be expected to have a material adverse effect on its business or operating results. The Company has a contingent liability related to the acquisition of Hedvig. See Note 3 of the unaudited consolidated financial statements for further details on the arrangement.

Capitalization	9 Months Ended
Capitalization	Dec. 31, 2019
Equity [Abstract]
Capitalization	Capitalization As of December 31, 2019, $159,974 remained in the Company's current stock repurchase authorization which expires on March 31, 2020.

Stock Plans

9 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Stock Plans

The following table presents the stock-based compensation expense included in Cost of services revenue, Sales and marketing, Research and development, General and administrative and Restructuring expenses for the three and nine months ended December 31, 2019 and 2018. Stock-based compensation is attributable to stock options, restricted stock units, performance based awards and the employee stock purchase plan.



	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Cost of services revenue	$	635	$	705	$	2,023	$	2,217
Sales and marketing	9,128		8,395		24,133		26,990
Research and development	5,222		2,058		9,226		6,547
General and administrative	3,280		4,406		11,517		14,350
Restructuring	709		268		1,682		1,482
Stock-based compensation expense	$	18,974	$	15,832	$	48,581	$	51,586

As of December 31, 2019, there was $141,285 of unrecognized stock-based compensation expense related to non-vested stock option and restricted stock unit awards that is expected to be recognized over a weighted-average period of 2.26 years. The Company accounts for forfeitures as they occur. To the extent that awards are forfeited, stock-based compensation will be different from the Company’s current estimate.

Stock Options

Stock option activity for the nine months ended December 31, 2019 is as follows:



Stock Options	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding options as of March 31, 2019	3,212		$	54.55
Options granted	—		—
Options exercised	(797	)	32.86
Options forfeited	—		—
Options expired	(67	)	$	73.81
Outstanding as of December 31, 2019	2,348		$	61.34	2.94	$	3,370
Exercisable as of December 31, 2019	2,348		$	61.34	2.94	$	3,370

Restricted Stock Units

Restricted stock unit activity for the nine months ended December 31, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted- Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	2,556		46.60
Vested	(816	)	59.83
Forfeited	(195	)	60.48
Non-vested as of December 31, 2019	3,376		$	51.24

The weighted-average fair value of restricted stock units awarded was $46.21 and $46.60 per unit during the three and nine months ended December 31, 2019, and $58.55 and $63.30 per unit during the three and nine months ended December 31, 2018. The weighted-average fair value of awards includes the awards with a market condition described below.

The Company issued a total of 1,018 awards to Hedvig employees in the third quarter of fiscal 2020 as part of the total consideration. These awards were granted at a fair value of $44.49 per share and $43,653 of stock-based compensation expense is expected to be recognized over a weighted-average period of 2.68 years. The awards are included in the restricted stock unit table.

Performance Based Awards

In the nine months ended December 31, 2019, the Company granted 105 performance restricted stock units ("PSU") to certain executives. Vesting of these awards is contingent upon i) the Company meeting certain company-wide revenue and non-GAAP performance goals (performance-based) in fiscal 2020 and ii) the Company's customary service periods. The awards vest over three years and have a maximum potential to vest at 200% (210 shares) based on actual fiscal 2020 performance. The related stock-based compensation expense is determined based on the value of the underlying shares on the date of grant and is recognized over the vesting term using the accelerated method. During the interim financial periods, management estimates the probable number of PSU’s that would vest until the ultimate achievement of the performance goals is known. The awards are included in the restricted stock unit table.

Awards with a Market Condition

In the nine months ended December 31, 2019, the Company granted 95 market performance stock units to certain executives. The vesting of these awards is contingent upon the Company meeting certain total shareholder return ("TSR") levels as compared to the Russell 3000 market index over the next three years. The awards vest in three annual tranches and have a maximum potential to vest at 200% (190 shares) based on TSR performance. The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model. The fair value of the awards granted during the nine months ended December 31, 2019 was $48.26 per unit. The awards are included in the restricted stock unit table.

Income Taxes	9 Months Ended
Income Taxes	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Income Taxes	Income TaxesIncome tax expense was $3,528 in the nine months ended December 31, 2019 compared to an expense of $2,677 in the nine months ended December 31, 2018. In fiscal 2018 the Company determined that it was more likely than not that it will not realize the benefits of its gross deferred tax assets and therefore recorded a valuation allowance to reduce the carrying value of these gross deferred tax assets, net of the impact of the reversal of taxable temporary differences, to zero. The Company’s position remains unchanged as of the period ended December 31, 2019. The tax expense for the nine months ended December 31, 2019 relates primarily to current foreign taxes.

Restructuring

9 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring

In fiscal 2019, the Company initiated a restructuring plan to increase efficiency in its sales, marketing and distribution functions as well as reduce costs across all functional areas. During the quarter, the Company incurred total restructuring charges of $2,021. These restructuring charges relate primarily to severance and related costs associated with headcount reductions and lease abandonment charges associated with five office leases. These charges include $709 of stock-based compensation related to modifications of existing unvested awards granted to certain employees impacted by the restructuring plan.

The activity in the Company’s restructuring accruals for the three and nine months ended December 31, 2019 and 2018 is summarized as follows:



	Three Months Ended December 31,
	2019			2018
Balance at September 30	$	10,358		$	1,763
Restructuring charges⁽¹⁾	2,831			5,351
Payments	(8,040		)	(3,156		)
Accrual reversals	(955		)	(398		)
Balance at December 31	$	4,194		$	3,560



	Nine Months Ended December 31,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	17,711			13,740
Payments	(13,651		)	(9,782		)
Accrual reversals	(955		)	(398		)
Balance at December 31	$	4,194		$	3,560

(1) Restructuring charges of $2,831 and $17,711 in the tables above do not include restructuring charges for two of the Company's leases in the amount of $145 and five in the amount of $2,195 for the three and nine months ended December 31, 2019, respectively. Under the new lease standard (ASC 842) the Company is now required to account for the impairment as a charge to the Statement of Operations and a reduction in the carrying amount of the right-of-use asset.

As of December 31, 2019, the outstanding restructuring accruals primarily relate to future severance payments.

Leases

9 Months Ended

Dec. 31, 2019

Leases [Abstract]

Leases

The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments.

The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term.

In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated.

As of December 31, 2019, the Company did not have any finance leases.

Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows:



	Three Months Ended December 31, 2019		Nine Months Ended December 31, 2019
Operating Lease Cost	$	1,923	$	6,766
Short-term Lease Cost	112		349
Variable Lease Cost	659		1,408
Net Lease Cost	$	2,694	$	8,523

As of December 31, 2019, the maturities of lease liabilities based on the total minimum lease commitment amount including options to extend lease terms that are reasonably certain of being exercised are as follows:



Remainder of FY 2020	$	1,580
FY 2021	7,865
FY 2022	4,627
FY 2023	2,017
FY 2024	1,382
Thereafter	1,719
Total Minimum Lease Payments	$	19,190
Less: Imputed Interest	(2,237		)
Present value of operating lease liabilities	$	16,953
Less: Current Portion of operating lease liabilities	7,730
Long-term operating lease liabilities	$	9,223

During the three and nine months ended December 31, 2019, additions of operating lease assets were $116 and $5,421, respectively. As of December 31, 2019, the minimum lease commitment amount for operating leases signed but not yet commenced, was immaterial.

As of December 31, 2019, the weighted-average remaining operating lease term was 3.27 years and the weighted-average discount rate was 4% for operating leases recognized in the Condensed Consolidated Balance Sheet.

Disclosures related to periods prior to the adoption of the new lease standard

Rental expense was $2,954 and $9,041 for the three and nine months ended December 31, 2018, respectively.

Subsequent Events	9 Months Ended
Subsequent Events	Dec. 31, 2019
Subsequent Events [Abstract]
Subsequent Events	Subsequent Event On January 23, 2020, the Board of Directors authorized an increase to the existing share repurchase program so that $200,000 was available. The authorization will expire on March 31, 2021.

Summary of Significant Accounting Policies (Policies)	9 Months Ended
Summary of Significant Accounting Policies (Policies)	Dec. 31, 2019
Accounting Policies [Abstract]
Basis of Presentation	The consolidated financial statements of Commvault Systems, Inc. and its subsidiaries ("Commvault" or the "Company") as of December 31, 2019 and for the three and nine months ended December 31, 2019 and 2018 are unaudited, and in the opinion of management, include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation of the results for the interim periods. Accordingly, they do not include all of the information and footnotes required by U.S. generally accepted accounting principles (“U.S. GAAP”) for complete financial statements and should be read in conjunction with the financial statements and notes in the Company’s Annual Report on Form 10-K for fiscal 2019. The results reported in these financial statements should not necessarily be taken as indicative of results that may be expected for the entire fiscal year.
Use of Estimates	The preparation of financial statements and related disclosures in conformity with U.S. GAAP requires management to make judgments and estimates that affect the amounts reported in the Company’s consolidated financial statements and the accompanying notes. The Company bases its estimates and judgments on historical experience and on various other assumptions that it believes are reasonable under the circumstances. The amounts of assets and liabilities reported in the Company’s balance sheets and the amounts of revenues and expenses reported for each of its periods presented are affected by estimates and assumptions, which are used for, but not limited to, the accounting for revenue recognition, income taxes and related reserves, stock-based compensation and accounting for research and development costs. Actual results could differ from those estimates.
Recently Issued Accounting Standards	Leases In February 2016, the Financial Accounting Standards Board (“FASB”) issued accounting standards update (“ASU”) No. 2016-02, Leases. Under the new guidance, the Company is required to recognize a lease liability and a right-of-use asset for leases. The Company adopted the new guidance on April 1, 2019 using the optional transition method, which allows for the prospective application of the standard, and as a result, the Company did not record an adjustment to retained earnings. In addition, the Company elected the package of practical expedients, for all of its leases, permitted under the transition guidance within the standard, which allowed the Company to carry forward its historical lease classification, to not reassess prior conclusions related to initial direct costs and to not reassess whether any expired or existing contracts are or contain leases. The Company also elected the lessee practical expedient to combine lease and non-lease components for new leases and modified leases. The Company also made an accounting policy election in accordance with the new standard to apply accounting similar to ASC 840 to short-term leases, which are defined as leases that have a term of twelve months or less. The new guidance does not have any impact on the Consolidated Statement of Operations or Consolidated Statement of Cash Flows. Credit Losses on Financial Instruments In June 2016, the FASB issued ASU 2016-13 “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (ASU 2016-13). The standard amends guidance on the impairment of financial instruments. The ASU estimates credit losses based on expected losses and provides for a simplified accounting model for purchased financial assets with credit deterioration. The standard requires a modified retrospective basis adoption through a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. The amendments of this ASU are effective for the Company's fiscal 2021. The Company does not expect the adoption of ASU 2016-13 will have a material impact the financial statements. There have been no other additional significant changes in the Company’s accounting policies during the nine months ended December 31, 2019 as compared to the significant accounting policies described in its Annual Report on Form 10-K for the year ended March 31, 2019 and to the changes disclosed above.
Concentration of Credit Risk	The Company grants credit to customers in a wide variety of industries worldwide and generally does not require collateral. Credit losses relating to these customers have been minimal.
Fair Value of Financial Instruments	The carrying amounts of the Company’s cash, cash equivalents and restricted cash, accounts receivable, and accounts payable approximate their fair values due to the short-term maturity of these instruments. The Company’s cash equivalents balance consists primarily of money market funds. The Company’s short-term investments balance consists of U.S. Treasury Bills with maturities of one year or less. The Company accounts for its short-term investments as held to maturity. The contingent consideration liability associated with the Hedvig acquisition as discussed further in Note 3 of the unaudited consolidated financial statements was valued based on a probability weighted-average approach.
Revenue	The Company disaggregates revenue from contracts with customers into the nature of the products and services and geographical regions. The geographic regions that are tracked are the Americas (United States, Canada, Latin America), EMEA (Europe, Middle East, Africa) and APAC (Australia, New Zealand, Southeast Asia, China). Amounts collected in advance of services being provided are accounted for as deferred revenue. Nearly all of the Company's deferred revenue balance is related to services revenue, primarily customer support contracts. In certain contracts the Company allows customers to pay for term-based, or subscription, software licenses and products over the term of the license. Amounts recognized as revenue in excess of amounts billed are recorded as unbilled receivables. Unbilled receivables which are anticipated to be invoiced in the next twelve months are included in accounts receivable on the consolidated balance sheet. Long term unbilled receivables are included in other assets. The Company derives revenues from two primary sources: software and products, and services. Software and products revenue includes the Company's software and integrated appliances that combine the Company's software with hardware. Services include customer support (software updates and technical support), consulting, assessment and design services, installation services and customer education. A typical contract includes both licenses and services. Historically, the Company’s software licenses typically provide for a perpetual right to use the Company’s software. The Company also sells term-based software licenses that expire, which are referred to as subscription arrangements. The Company does not customize its software and installation services are not required. The software is delivered before related services are provided and is functional without professional services, updates and technical support. The Company has concluded that its software license is functional intellectual property that is distinct as the user can benefit from the software on its own. Software revenue is typically recognized when the software is delivered and/or made available for download as this is the point the user of the software can direct the use of, and obtain substantially all of the remaining benefits from the functional intellectual property. The Company does not recognize software revenue related to the renewal of subscription software licenses earlier than the beginning of the subscription period. Services revenue includes revenue from customer support and other professional services. Customer support includes software updates on a when-and-if-available basis, telephone support, integrated web-based support and bug fixes or patches. The Company sells its customer support contracts as a percentage of net software purchases the support is related to. Customer support revenue is recognized ratably over the term of the customer support agreement, which is typically one year. The Company’s other professional services include consulting, assessment and design services, installation services and customer education. Customer education services include courses taught by the Company’s instructors or third-party contractors. Revenue related to other professional services and customer education services is typically recognized as the services are performed. Most of the Company’s contracts with customers contain multiple performance obligations. For these contracts, the Company accounts for individual performance obligations separately if they are distinct. The transaction price is allocated to the separate performance obligations on a relative standalone selling price basis. Standalone selling prices of software and appliances are typically estimated using the residual approach. Standalone selling prices of services are typically estimated based on observable transactions when these services are sold on a standalone basis.
Leases	The Company’s lease liabilities relate primarily to operating leases for its global office infrastructure. These operating leases expire at various dates through fiscal 2026. The Company records lease liabilities at the present value of the lease payments not yet paid, discounted at the rate of interest that the Company would have to pay to borrow on a collateralized basis over a similar term. As the Company's leases do not provide an implicit rate, the Company uses an incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company recognizes operating lease costs over the estimated term of the lease, which includes options to extend lease terms that are reasonably certain of being exercised, starting when possession of the property is taken from the landlord. When a lease contains a predetermined fixed escalation of the minimum rent, the Company recognizes the related operating lease cost on a straight-line basis over the lease term. In addition, certain of the Company’s lease agreements include variable lease payments, such as estimated tax and maintenance charges. These variable lease payments are excluded from minimum lease payments and are included in the determination of lease cost when it is probable that the expense has been incurred and the amount can be reasonably estimated.
Goodwill and Intangible Assets	Goodwill is recorded when the consideration paid for an acquisition exceeds the fair value of net tangible and intangible assets acquired. The carrying value of goodwill is tested for impairment on an annual basis on January 1, or more often if an event occurs or circumstances change that would more likely than not reduce the fair value of its carrying amount. For the purpose of impairment testing, the Company has a single reporting unit. The impairment test consists of comparing the fair value with its carrying amount that includes goodwill. If the carrying amount of goodwill exceeds the fair value of goodwill, an impairment loss would be recognized to reduce the carrying amount to its fair value. Purchased intangible assets with finite lives are valued using the income method and are amortized on a straight-line basis over their economic lives of five years for developed technology and two years for customer relationships as the Company believes this method most closely reflects the pattern in which the economic benefits of the assets will be consumed. Impairment losses are recognized if the carrying amount of an intangible is both not recoverable and exceeds its fair value.

Summary of Significant Accounting Policies (Tables)

9 Months Ended

Dec. 31, 2019

Accounting Policies [Abstract]

Financial Assets Measured at Fair Value

The following table summarizes the composition of the Company’s financial assets measured at fair value at December 31, 2019 and March 31, 2019:



December 31, 2019	Level 1		Level 2		Level 3			Total
Assets:
Cash equivalents	$	34,800	—		—			$	34,800
Short-term investments	$	—	66,262		—			$	66,262
Total assets	$	34,800	$	66,262	—			$	101,062
Liabilities:
Contingent consideration	$	—	$	—	$	(4,000	)	$	(4,000	)



March 31, 2019	Level 1		Level 2		Level 3	Total
Assets:
Cash equivalents	$	102,702	—		—	$	102,702
Short-term investments	$	—	131,937		—	$	131,937
Total assets	$	102,702	$	131,937	—	$	234,639

Business Combination (Tables)

9 Months Ended

Dec. 31, 2019

Business Combinations [Abstract]

Summary of the Purchase Price and Preliminary Purchase Price Allocation as of the Date of Acquisition

The following table summarizes the purchase price and preliminary purchase price allocation made as of the date of acquisition:



Purchase price allocation:
Cash paid at closing	$	157,589
Fair value of restricted stock units included in purchase price	1,616
Fair value of contingent consideration	4,000
Total purchase price	$	163,205

Assets acquired and liabilities assumed:
Cash	$	94
Trade accounts receivable	1,074
Other current assets	104
Property and equipment	202
Intangible assets	52,000
Other assets	682
Accounts payable and accrued liabilities	(1,060		)
Deferred revenue	(2,231		)
Operating lease liability, net of operating lease assets	(11		)
Deferred tax liability	(84		)
Total identifiable net assets acquired and liabilities assumed	50,770
Goodwill	112,435
Total purchase price	163,205

Revenue and Net Loss of the Combined Entity



	Revenue		Net Loss
Actual from 10/01/2019 - 12/31/2019	$	240	$	(9,325	)

Fiscal 2020 supplemental pro forma from 04/01/2019 - 12/31/2019	$	507,241	$	(19,246	)

Fiscal 2019 supplemental pro forma from 04/01/2018 - 12/31/2018	$	532,825	$	(21,072	)

Goodwill and Intangible Assets, Net (Tables)

9 Months Ended

Dec. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Purchased Intangible Assets, Net of Amortization

Purchased intangible assets, net of amortization are summarized below:



	December 31, 2019
	Gross		Accumulated Amortization			Net Assets
Developed technology	$	49,000	$	(2,450	)	$	46,550
Customer relationships	3,000		(375		)	2,625
Total intangible assets	$	52,000	$	(2,825	)	$	49,175

Schedule of Finite-Lived Intangible Assets Future Amortization Expense

Future amortization expense associated with intangible assets with finite lives is expected to be:



	December 31, 2019
2020 (remaining)	$	2,825
2021	11,300
2022	10,550
2023	9,800
2024	9,800
Thereafter	4,900
	$	49,175

Revenue (Tables)

9 Months Ended

Dec. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The Company’s typical performance obligations include the following:



Performance Obligation	When Performance Obligation is Typically Satisfied	When Payment is Typically Due	How Standalone Selling Price is Typically Estimated
Software and Products Revenue
Software Licenses	Upon shipment or made available for download (point in time)	Within 90 days of shipment except for certain subscription licenses which are paid for over time	Residual approach
Appliances	When control of the appliances passes to the customer; typically upon delivery	Within 90 days of delivery	Residual approach
Customer Support Revenue
Software Updates	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Customer Support	Ratably over the course of the support contract (over time)	At the beginning of the contract period	Observable in renewal transactions
Professional Services
Other Professional Services (except for education services)	As work is performed (over time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations
Education Services	When the class is taught (point in time)	Within 90 days of services being performed	Observable in transactions without multiple performance obligations

Disaggregation of Revenue



	Three Months Ended December 31, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	40,291	$	29,107	$	7,233	$	76,631
Customer Support Revenue	57,856		22,237		10,438		90,531
Professional Services	4,883		2,673		1,633		9,189
Total Revenue	$	103,030	$	54,017	$	19,304	$	176,351



	Three Months Ended December 31, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	41,798	$	31,073	$	11,644	$	84,515
Customer Support Revenue	58,575		20,597		9,669		88,841
Professional Services	6,193		3,014		1,712		10,919
Total Revenue	$	106,566	$	54,684	$	23,025	$	184,275



	Nine Months Ended December 31, 2019
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	107,375	$	71,922	$	29,603	$	208,900
Customer Support Revenue	173,450		65,810		30,756		270,016
Professional Services	14,179		8,035		5,006		27,220
Total Revenue	$	295,004	$	145,767	$	65,365	$	506,136



	Nine Months Ended December 31, 2018
	Americas		EMEA		APAC		Total
Software and Products Revenue	$	125,290	$	70,624	$	33,155	$	229,069
Customer Support Revenue	178,676		61,399		28,779		268,854
Professional Services	17,467		8,945		5,195		31,607
Total Revenue	$	321,433	$	140,968	$	67,129	$	529,530

Contract with Customer, Asset and Liability

The opening and closing balances of the Company’s accounts receivable, unbilled receivables, and deferred revenues are as follows:



	Accounts Receivable			Unbilled Receivable (current)		Unbilled Receivable (long-term)		Deferred Revenue (current)			Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	$	161,570		$	15,266	$	7,216	$	238,439		$	99,257
Increase/(decrease), net	(15,895		)	685		1,431		(2,926		)	(1,527		)
Ending Balance as of December 31, 2019	$	145,675		$	15,951	$	8,647	$	235,513		$	97,730

Stock Plans (Tables)

9 Months Ended

Dec. 31, 2019

Share-based Payment Arrangement [Abstract]

Schedule of Stock-Based Compensation Expense



	Three Months Ended December 31,				Nine Months Ended December 31,
	2019		2018		2019		2018
Cost of services revenue	$	635	$	705	$	2,023	$	2,217
Sales and marketing	9,128		8,395		24,133		26,990
Research and development	5,222		2,058		9,226		6,547
General and administrative	3,280		4,406		11,517		14,350
Restructuring	709		268		1,682		1,482
Stock-based compensation expense	$	18,974	$	15,832	$	48,581	$	51,586

Schedule of Stock Option Activity

Stock option activity for the nine months ended December 31, 2019 is as follows:



Stock Options	Number of Options		Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value
Outstanding options as of March 31, 2019	3,212		$	54.55
Options granted	—		—
Options exercised	(797	)	32.86
Options forfeited	—		—
Options expired	(67	)	$	73.81
Outstanding as of December 31, 2019	2,348		$	61.34	2.94	$	3,370
Exercisable as of December 31, 2019	2,348		$	61.34	2.94	$	3,370

Schedule of Restricted Stock Unit Activity

Restricted stock unit activity for the nine months ended December 31, 2019 is as follows:



Non-vested Restricted Stock Units	Number of Awards		Weighted- Average Grant Date Fair Value
Non-vested as of March 31, 2019	1,831		$	62.58
Awarded	2,556		46.60
Vested	(816	)	59.83
Forfeited	(195	)	60.48
Non-vested as of December 31, 2019	3,376		$	51.24

Restructuring (Tables)

9 Months Ended

Dec. 31, 2019

Restructuring and Related Activities [Abstract]

Restructuring and Related Costs

The activity in the Company’s restructuring accruals for the three and nine months ended December 31, 2019 and 2018 is summarized as follows:



	Three Months Ended December 31,
	2019			2018
Balance at September 30	$	10,358		$	1,763
Restructuring charges⁽¹⁾	2,831			5,351
Payments	(8,040		)	(3,156		)
Accrual reversals	(955		)	(398		)
Balance at December 31	$	4,194		$	3,560



	Nine Months Ended December 31,
	2019			2018
Balance at March 31	$	1,089		$	—
Restructuring charges⁽¹⁾	17,711			13,740
Payments	(13,651		)	(9,782		)
Accrual reversals	(955		)	(398		)
Balance at December 31	$	4,194		$	3,560

Leases (Tables)

9 Months Ended

Dec. 31, 2019

Leases [Abstract]

Net Lease Cost Recognized on Condensed Consolidated Statement of Operations

Net lease cost recognized on our Condensed Consolidated Statement of Operations is summarized as follows:



	Three Months Ended December 31, 2019		Nine Months Ended December 31, 2019
Operating Lease Cost	$	1,923	$	6,766
Short-term Lease Cost	112		349
Variable Lease Cost	659		1,408
Net Lease Cost	$	2,694	$	8,523

Maturities of Lease Liabilities



Remainder of FY 2020	$	1,580
FY 2021	7,865
FY 2022	4,627
FY 2023	2,017
FY 2024	1,382
Thereafter	1,719
Total Minimum Lease Payments	$	19,190
Less: Imputed Interest	(2,237		)
Present value of operating lease liabilities	$	16,953
Less: Current Portion of operating lease liabilities	7,730
Long-term operating lease liabilities	$	9,223

Summary of Significant Accounting Policies - Correction of an Immaterial Error in Previously Issued Financial Statements (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Research and development	$ 30,503	$ 22,005	$ 77,310	$ 69,751
General and administrative	$ 23,864	20,900	$ 71,124	69,001
Immaterial error related to classification of legal fees related to intellectual property
Error Corrections and Prior Period Adjustments Restatement [Line Items]
Research and development		911		2,466
General and administrative		$ 911		$ 2,466

Summary of Significant Accounting Policies - Concentration of Credit Risk (Details) - Customer Concentration Risk	3 Months Ended	9 Months Ended
	Mar. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Arrow \| Revenue
Concentration Risk [Line Items]
Concentration risk percentage		37.00%	37.00%
Arrow \| Accounts receivable
Concentration Risk [Line Items]
Concentration risk percentage	38.00%	32.00%
Hitachi Vantara \| Accounts receivable
Concentration Risk [Line Items]
Concentration risk percentage		11.00%

Summary of Significant Accounting Policies - Summary of Fair Value of Financial Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Mar. 31, 2019
Assets:
Cash equivalents	$ 34,800	$ 102,702
Short-term investments	66,262	131,937
Total assets	101,062	234,639
Liabilities:
Contingent consideration	(4,000)
Level 1
Assets:
Cash equivalents	34,800	102,702
Short-term investments	0	0
Total assets	34,800	102,702
Liabilities:
Contingent consideration	0
Level 2
Assets:
Cash equivalents	0	0
Short-term investments	66,262	131,937
Total assets	66,262	131,937
Liabilities:
Contingent consideration	0
Level 3
Assets:
Cash equivalents	0	0
Short-term investments	0	0
Total assets	0	$ 0
Liabilities:
Contingent consideration	$ (4,000)

Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details)	9 Months Ended
	Dec. 31, 2019
Developed technology
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets economic lives	5 years
Customer relationships
Acquired Finite-Lived Intangible Assets [Line Items]
Intangible assets economic lives	2 years

Business Combination - Additional Information (Details) - USD ($) $ in Thousands		9 Months Ended
	Oct. 01, 2019	Dec. 31, 2019
Business Acquisition [Line Items]
Fair value of contingent consideration		$ 4,000
Hedvig, Inc.
Business Acquisition [Line Items]
Purchase consideration	$ 163,205
Cash paid	157,589
Contingent consideration purchase	4,000
Fair value of restricted stock units included in purchase price	1,616
Cash payments to shareholders following the date of acquisition	$ 14,100
Cash payments to shareholders following the date of acquisition, period	30 months
Contingent consideration arrangements range of outcomes value low		0
Contingent consideration arrangements range of outcomes value high		8,000
Fair value of contingent consideration	$ 4,000	4,000
Acquisition related costs		$ 5,639
Hedvig, Inc. \| Restricted stock units
Business Acquisition [Line Items]
Compensation arrangements, vesting period	3 years

Business Combination - Summarizes Purchase Price and Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands	Oct. 01, 2019	Dec. 31, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Fair value of contingent consideration		$ 4,000
Goodwill		112,435	$ 0
Hedvig, Inc.
Business Acquisition [Line Items]
Cash paid at closing	$ 157,589
Fair value of restricted stock units included in purchase price	1,616
Fair value of contingent consideration	4,000	$ 4,000
Total purchase price	163,205
Cash	94
Trade accounts receivable	1,074
Other current assets	104
Property and equipment	202
Intangible assets	52,000
Other assets	682
Accounts payable and accrued liabilities	(1,060)
Deferred revenue	(2,231)
Operating lease liability, net of operating lease assets	(11)
Deferred tax liability	(84)
Total identifiable net assets acquired and liabilities assumed	50,770
Goodwill	112,435
Total purchase price	$ 163,205

Business Combination - Actual and Unaudited Pro Forma Information (Details) - Hedvig, Inc. - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Actual from 10/01/19 - 12/31/19, Revenue	$ 240
Actual from 10/01/19 - 12/31/19, Net Loss	$ (9,325)
Supplemental pro forma, Revenue		$ 507,241	$ 532,825
Supplemental pro forma, Net Loss		$ (19,246)	$ (21,072)

Goodwill and Intangible Assets, Net - Goodwill (Details) - USD ($)	Dec. 31, 2019	Oct. 01, 2019	Mar. 31, 2019
Goodwill [Line Items]
Goodwill	$ 112,435,000		$ 0
Hedvig, Inc.
Goodwill [Line Items]
Goodwill		$ 112,435,000
Goodwill expected tax deductible amount		$ 0

Goodwill and Intangible Assets, Net - Intangible Assets, Net (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Finite-Lived Intangible Assets [Line Items]
Gross	$ 52,000
Accumulated Amortization	(2,825)
Net Assets	49,175
Developed technology
Finite-Lived Intangible Assets [Line Items]
Gross	49,000
Accumulated Amortization	(2,450)
Net Assets	46,550
Customer relationships
Finite-Lived Intangible Assets [Line Items]
Gross	3,000
Accumulated Amortization	(375)
Net Assets	$ 2,625

Goodwill and Intangible Assets, Net - Schedule of Estimated Future Amortization Expenses (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2020 (remaining)	$ 2,825
2021	11,300
2022	10,550
2023	9,800
2023	9,800
Thereafter	4,900
Net Assets	$ 49,175

Revenue - Additional Information (Details) $ in Thousands	3 Months Ended	9 Months Ended
Revenue - Additional Information (Details) $ in Thousands	Dec. 31, 2019 USD ($)	Dec. 31, 2019 USD ($) revenue_source segment
Revenue from Contract with Customer [Abstract]
Sources of primary revenue \| revenue_source		2
Customer support agreement term		1 year
Number of operating segments \| segment		1
Revenue recognized in period, included in opening deferred revenue balance	$ 51,753	$ 207,938
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized from remaining performance obligations	28,655	28,655
Software and Products Revenue
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized from remaining performance obligations	$ 3,103	$ 3,103

Revenue - Performance Obligations (Details)	9 Months Ended
Revenue - Performance Obligations (Details)	Dec. 31, 2019
Software, licenses
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Software, appliances
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Professional Services, other
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days
Professional Services, education services
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Performance obligation, expected payment terms	90 days

Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Disaggregation of Revenue [Line Items]
Total Revenue	$ 176,351	$ 184,275	$ 506,136	$ 529,530
Americas
Disaggregation of Revenue [Line Items]
Total Revenue	103,030	106,566	295,004	321,433
EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	54,017	54,684	145,767	140,968
APAC
Disaggregation of Revenue [Line Items]
Total Revenue	19,304	23,025	65,365	67,129
Software and Products Revenue
Disaggregation of Revenue [Line Items]
Total Revenue	76,631	84,515	208,900	229,069
Software and Products Revenue \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	40,291	41,798	107,375	125,290
Software and Products Revenue \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	29,107	31,073	71,922	70,624
Software and Products Revenue \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	7,233	11,644	29,603	33,155
Customer Support Revenue
Disaggregation of Revenue [Line Items]
Total Revenue	90,531	88,841	270,016	268,854
Customer Support Revenue \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	57,856	58,575	173,450	178,676
Customer Support Revenue \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	22,237	20,597	65,810	61,399
Customer Support Revenue \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	10,438	9,669	30,756	28,779
Professional Services
Disaggregation of Revenue [Line Items]
Total Revenue	9,189	10,919	27,220	31,607
Professional Services \| Americas
Disaggregation of Revenue [Line Items]
Total Revenue	4,883	6,193	14,179	17,467
Professional Services \| EMEA
Disaggregation of Revenue [Line Items]
Total Revenue	2,673	3,014	8,035	8,945
Professional Services \| APAC
Disaggregation of Revenue [Line Items]
Total Revenue	$ 1,633	$ 1,712	$ 5,006	$ 5,195

Revenue - Opening and Closing Balances of Accounts Receivable, Unbilled Receivables, and Deferred Revenues (Details) $ in Thousands	9 Months Ended
	Dec. 31, 2019 USD ($)
Accounts Receivable
Opening Balance as of March 31, 2019	$ 161,570
Increase/(decrease), net	(15,895)
Ending Balance as of December 31, 2019	145,675
Unbilled Receivable (current)
Opening Balance as of March 31, 2019	15,266
Increase/(decrease), net	685
Ending Balance as of December 31, 2019	15,951
Unbilled Receivable (long-term)
Opening Balance as of March 31, 2019	7,216
Increase/(decrease), net	1,431
Ending Balance as of December 31, 2019	8,647
Deferred Revenue (current)
Opening Balance as of March 31, 2019	238,439
Increase/(decrease), net	(2,926)
Ending Balance as of December 31, 2019	235,513
Deferred Revenue (long-term)
Opening Balance as of March 31, 2019	99,257
Increase/(decrease), net	(1,527)
Ending Balance as of December 31, 2019	$ 97,730

Net Income per Common Share - Additional Information (Details) - shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation (in shares)	5,459	1,045	4,952	1,024

Capitalization - Additional Information (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Common stock repurchase program
Class of Stock [Line Items]
Remaining amount available under share repurchase program	$ 159,974

Stock Plans - Stock-Based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 18,974	$ 15,832	$ 48,581	$ 51,586
Cost of services revenue
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	635	705	2,023	2,217
Sales and marketing
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	9,128	8,395	24,133	26,990
Research and development
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	5,222	2,058	9,226	6,547
General and administrative
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	3,280	4,406	11,517	14,350
Restructuring
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation expense	$ 709	$ 268	$ 1,682	$ 1,482

Stock Plans - Additional Information (Details) - Stock options and restricted stock units $ in Thousands	9 Months Ended
	Dec. 31, 2019 USD ($)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized stock-based compensation expense, net of estimated forfeitures	$ 141,285
Weighted average period awards are expected to be recognized	2 years 3 months 3 days

Stock Plans - Stock Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	9 Months Ended
	Dec. 31, 2019 USD ($) $ / shares shares
Number of Options
Outstanding (in shares) as of March 31, 2019 \| shares	3,212
Options granted (in shares) \| shares	0
Options exercised (in shares) \| shares	(797)
Options forfeited (in shares) \| shares	0
Options expired (in shares) \| shares	(67)
Outstanding (in shares) as of December 31, 2019 \| shares	2,348
Exercisable (in shares) as of December 31, 2019 \| shares	2,348
Weighted- Average Exercise Price
Outstanding (in dollars per share) as of March 31, 2019 \| $ / shares	$ 54.55
Options granted (in dollars per share) \| $ / shares	0
Options exercised (in dollars per share) \| $ / shares	32.86
Options forfeited (in dollars per share) \| $ / shares	0
Options expired (in dollars per share) \| $ / shares	73.81
Outstanding (in dollars per share) as of December 31, 2019 \| $ / shares	61.34
Exercisable (in dollars per share) as of December 31, 2019 \| $ / shares	$ 61.34
Weighted- Average Remaining Contractual Term (Years)
Outstanding as of December 31, 2019	2 years 11 months 8 days
Exercisable as of December 31, 2019	2 years 11 months 8 days
Aggregate Intrinsic Value
Outstanding as of December 31, 2019 \| $	$ 3,370
Exercisable as of December 31, 2019 \| $	$ 3,370

Stock Plans - Restricted Stock Unit Activity (Details) - $ / shares shares in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Weighted- Average Grant Date Fair Value
Awarded (in dollars per share)		$ 58.55		$ 63.30
Restricted stock units
Number of Awards
Non-vested (in shares) as of March 31, 2019			1,831
Awarded (in shares)			2,556
Vested (in shares)			(816)
Forfeited (in shares)			(195)
Non-vested (in shares) as of December 31, 2019	3,376		3,376
Weighted- Average Grant Date Fair Value
Non-vested (in dollars per share) as of March 31, 2019			$ 62.58
Awarded (in dollars per share)	$ 46.21		46.60
Vested (in dollars per share)			59.83
Forfeited (in dollars per share)			60.48
Non-vested (in dollars per share) as of December 31, 2019	$ 51.24		$ 51.24

Stock Plans - Restricted Stock Units Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value, units awarded (in dollars per share)		$ 58.55		$ 63.30
Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value, units awarded (in dollars per share)	$ 46.21		$ 46.60
Hedvig, Inc. \| Restricted stock units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value, units awarded (in dollars per share)	$ 44.49
Equity interests issuable (in shares)	1,018
Stock based compensation expense	$ 43,653
Expected to recognized weighted average period	2 years 8 months 4 days

Stock Plans - Performance-based and Market-based Awards (Details) shares in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2018 $ / shares	Dec. 31, 2019 tranche $ / shares shares	Dec. 31, 2018 $ / shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted-average fair value, units awarded (in dollars per share) \| $ / shares	$ 58.55		$ 63.30
PSU
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded (in shares)		105
Service period		3 years
Maximum potential to vest (as a percentage)		200.00%
Maximum potential to vest (in shares)		210
Market performance shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awarded (in shares)		95
Service period		3 years
Maximum potential to vest (as a percentage)		200.00%
Maximum potential to vest (in shares)		190
Number of annual tranches \| tranche		3
Weighted-average fair value, units awarded (in dollars per share) \| $ / shares		$ 48.26

Income Taxes - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense (benefit)	$ 957	$ (1,235)	$ 3,528	$ 2,677
Deferred tax assets					$ 0

Restructuring - Additional Information (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019 USD ($) contract	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	$ 2,021	$ 4,953	$ 18,951	$ 13,342
Operating lease impairment loss, number of leases \| contract	5
Stock-Based Compensation
Restructuring Cost and Reserve [Line Items]
Restructuring charges incurred	$ 709

Restructuring - Activity in Restructuring Accruals (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Restructuring Reserve [Roll Forward]
Lease impairment loss, excluded from restructuring charges			$ 2,195
Severance & payroll related charges
Restructuring Reserve [Roll Forward]
Balance at beginning of period	$ 10,358	$ 1,763	1,089	$ 0
Restructuring charges	2,831	5,351	17,711	13,740
Payments	(8,040)	(3,156)	(13,651)	(9,782)
Accrual reversals	(955)	(398)	(955)	(398)
Balance at end of period	4,194	$ 3,560	4,194	$ 3,560
Lease impairment loss, excluded from restructuring charges	$ 145		$ 2,195

Leases - Net Lease Costs Recognized (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Dec. 31, 2019	Dec. 31, 2019
Leases [Abstract]
Operating Lease Cost	$ 1,923	$ 6,766
Short-term Lease Cost	112	349
Variable Lease Cost	659	1,408
Net Lease Cost	$ 2,694	$ 8,523

Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Dec. 31, 2019 USD ($)
Leases [Abstract]
Remainder of FY 2020	$ 1,580
FY 2021	7,865
FY 2022	4,627
FY 2023	2,017
FY 2024	1,382
Thereafter	1,719
Total Minimum Lease Payments	19,190
Less: Imputed Interest	(2,237)
Present value of operating lease liabilities	16,953
Less: Current Portion of operating lease liabilities	7,730
Long-term operating lease liabilities	$ 9,223

Leases - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Additions of operating lease assets	$ 116		$ 5,421
Weighted-average remaining operating lease term	3 years 3 months 7 days		3 years 3 months 7 days
Weighted-average discount rate, operating leases	4.00%		4.00%
Rental expense		$ 2,954		$ 9,041

Subsequent Events - Additional Information (Details)	Jan. 23, 2020 USD ($)
Subsequent Event
Subsequent Event [Line Items]
Share repurchase program, amount available	$ 200,000,000