AZPN 10-K Fiscal year ended June 30, 2020

☒	ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

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Companies engaged in Exploration and Production explore for and produce hydrocarbons. They target reserves in increasingly diverse geographies involving geological, logistical and political challenges. They need to design and develop ever larger, more complex and more remote production, gathering and processing facilities as quickly as possible with the objective of optimizing production and ensuring regulatory compliance.

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Companies engaged in Oil and Gas Production and Processing produce and gather oil and natural gas from well heads, clean it, process it, and separate it into oil, dry natural gas, and natural gas liquids in preparation for transport to downstream markets. The processing capacity of oil and gas processing plants in North America has increased significantly in recent years to process the oil and gas extracted from shale deposits.

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Companies engaged in Refining and Marketing convert crude oil through a thermal and chemical manufacturing process into end products such as gasoline, jet and diesel fuels and into intermediate products for downstream chemical manufacturing companies. These companies are characterized by high volumes and low operating margins. In order to deliver better margins, they focus on optimizing feedstock selection and product mix, reducing energy and capital costs, maximizing throughput, and minimizing inventory, all while operating safely and in accordance with regulations.

•	Bulk chemical producers manufacture commodity chemicals and compete primarily on price; they seek to achieve economies of scale and manage operating margin pressure by building larger, more complex plants located near feedstock sources.

•	Specialty chemical manufacturers, which primarily manufacture highly differentiated customer-specific products, face challenges in managing diverse product lines, multiple plants, complex supply chains and product quality.

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•	Breadth, depth and integration of our aspenONE software offering;

•	Rapid return on investment and increase in profitability;

•	Domain expertise of chemical engineering personnel;

•	Focus on software for the process industries;

•	Flexibility of our usage-based aspenONE licensing model; and

•	Consistent global support.

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•	insufficient growth in our aspenONE APM business;

•	any decline in demand for or usage of our aspenONE suites;

•	the introduction of products and technologies that serve as a replacement or substitute for, or represent an improvement over, our aspenONE suites;

•	technological innovations that our aspenONE suites do not address;

•	our inability to release enhanced versions of our aspenONE suites on a timely basis; and

•	adverse changes in capital intensive industries or otherwise that lead to reductions, postponements or cancellations of customer purchases of our products and services, or delays in the execution of license agreement renewals in the same quarter in which the original agreements expire.

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unexpected changes in regulatory or environmental requirements, tariffs and other barriers, including, for example, international trade disputes, changes in climate regulations, sanctions or other regulatory restrictions imposed by the United States or foreign governments; and the effects of the United Kingdom European Union membership referendum in June 2016 and the subsequent withdrawal process initiated in March 2017; pursuant to which the United Kingdom ceases to be a European Union member;

•	less effective protection of intellectual property;

•	requirements of foreign laws and other governmental controls;

•	delays in the execution of license agreement renewals in the same quarter in which the original agreements expire;

•	difficulties in collecting trade accounts receivable in other countries;

•	adverse tax consequences; and

•	the challenges of managing legal disputes in foreign jurisdictions.

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•	lost or delayed market acceptance and sales of our products;

•	delays in payment to us by customers;

•	product returns;

•	injury to our reputation;

•	diversion of our resources;

•	increased service and warranty expenses or financial concessions;

•	increased insurance costs; and

•	legal claims, including product liability claims.

•	failure to realize anticipated returns on investment, cost savings and synergies;

•	difficulty in assimilating the operations, policies and personnel of the acquired company;

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•	unanticipated costs associated with acquisitions;

•	challenges in combining product offerings and entering into new markets in which we may not have experience;

•	distraction of management’s attention from normal business operations;

•	potential loss of key employees of the acquired company;

•	difficulty implementing effective internal controls over financial reporting and disclosure controls and procedures;

•	impairment of relationships with customers or suppliers;

•	possibility of incurring impairment losses related to goodwill and intangible assets; and

•	other issues not discovered in due diligence, which may include product quality issues or legal or other contingencies

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•	limitations on the removal of directors;

•	a classified board of directors, so that not all members of the board are elected at one time;

•	advance notice requirements for stockholder proposals and nominations;

•	the inability of stockholders to act by written consent or to call special meetings;

•	the ability of the board to make, alter or repeal our by-laws; and

•	the ability of the board to designate the terms of and issue new series of preferred stock without stockholder approval.

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•	have the effect of delaying, deferring or preventing a change in control of our company or a change in our management that stockholders may consider favorable or beneficial;

•	discourage proxy contests and make it more difficult for stockholders to elect directors and take other corporate actions; and

•	limit the price that investors might be willing to pay in the future for shares of our common stock.

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•	Annual spend

•	Total contract value

•	Bookings

•	Free cash flow

•	Non-GAAP operating income

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(1)

The $456.8 million of contractual obligations related to our Amended and Restated Credit Agreement includes $119.2 million and $312.0 million in outstanding borrowings on our revolving credit facility and term loan facility, respectively, and $25.6 million of interest expense and commitment fees as of June 30, 2020. All contractual obligations related to our revolving credit facility are classified as being due in less than one year.

(2)	The $46.5 million of contractual obligations includes rent and fixed fees for all of our operating leases, including those not recognized on the balance sheet.

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Aspen Technology, Inc., together with its subsidiaries, is a global leader in asset optimization software that optimizes asset design, operations and maintenance in complex, industrial environments. Our aspenONE software and related services have been developed specifically for companies engaged in the process and other capital-intensive industries such as energy, chemicals, engineering and construction, as well as pharmaceuticals, food and beverage, transportation, power, metals and mining, pulp and paper, and consumer packaged goods. Customers use our solutions to improve their competitiveness and profitability by increasing throughput, energy efficiency, and production levels, reducing unplanned downtime, plant emissions, and safety risks, enhancing capital efficiency, and decreasing working capital requirements over the entire asset lifecycle to support operational excellence. We operate globally in 33 countries as of June 30, 2020 .

(a)   Principles of Consolidation

The accompanying consolidated financial statements include the accounts of Aspen Technology, Inc. and our wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

(b)   Correction of Errors

As discussed in further detail in Note 20, "Immaterial Correction to Prior Period Financial Statements," to our Consolidated Financial Statements, the Company has revised its prior period financial statements to correct immaterial misstatements related to the adoption of, and ongoing accounting under, ASU No. 2014-09, Revenue from Contracts with Customers ("Topic 606").

(c)   Management Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.

(d)   Cash and Cash Equivalents

Cash and cash equivalents consist of short-term money market instruments.

(e)    Computer Software Development Costs

Certain computer software development costs are capitalized in the accompanying consolidated balance sheets. Capitalization of computer software development costs begins upon establishing technological feasibility defined as meeting specifications determined by the program design. Amortization of capitalized computer software development costs is provided on a product-by-product basis using the greater of (a) the amount computed using the ratio that current gross revenue for a product bears to total of current and anticipated future gross revenue for that product or (b) the straight-line method, beginning upon commercial release of the product, and continuing over the remaining estimated economic life of the product, not to exceed three years .

Total computer software costs capitalized were $ 0.2 million , $ 1.1 million and $ 0.4 million during the years ended June 30, 2020 , 2019 and 2018 , respectively. Total amortization expense charged to operations was approximately $ 0.6 million , $ 0.5 million and $ 0.4 million for the years ended June 30, 2020 , 2019 and 2018 , respectively. Computer software development accumulated amortization totaled $ 75.7 million and $ 75.1 million as of June 30, 2020 and 2019 , respectively. Weighted average remaining useful life of computer software development costs was 2.0 years and 2.5 years at June 30, 2020 and 2019 , respectively.

At each balance sheet date, we evaluate the unamortized capitalized software costs for potential impairment by comparing the balance to the net realizable value of the products. During the years ended June 30, 2020 , 2019 and 2018 , our computer software development costs were not considered impaired and as such, we did no t recognize impairment losses during the periods then ended.

(f)   Foreign Currency Translation

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The determination of the functional currency of subsidiaries is based on the subsidiaries' financial and operational environment. Gains and losses from foreign currency translation related to entities whose functional currency is not our reporting currency are credited or charged to accumulated other comprehensive income included in stockholders' equity in the consolidated balance sheets. In all instances, foreign currency transaction and remeasurement gains or losses are credited or charged to the consolidated statements of operations as incurred as a component of other income (expense), net. Net foreign currency transaction and remeasurement gains were $ 0.9 million and $ 0.7 million in fiscal 2020 and 2019 , respectively, and losses were $( 0.8 ) million in fiscal 2018 .

(g)  Concentration of Credit Risk

Financial instruments that potentially subject us to concentrations of credit risk are principally cash and cash equivalents, contract assets, and accounts receivable. Our cash is held in financial institutions and our cash equivalents are invested in money market mutual funds that we believe to be of high credit quality.

Concentration of credit risk with respect to contract assets and receivables is limited to certain customers to which we make substantial sales. To reduce risk, we assess the financial strength of our customers. We do not require collateral or other security in support of our contact assets and receivables. As of June 30, 2020 and 2019 , we had no customer receivable balance that represented approximately 10 % or more of our total receivables.

(h)   Computer Software Developed for Internal Use and Long-Lived Assets

Computer Software Developed for Internal Use:

Computer software developed for internal use is capitalized in accordance with ASC Topic 350-40, Intangibles Goodwill and Other—Internal Use Software . We capitalize costs incurred to develop internal-use software during the application development stage after determining software technological requirements and obtaining management approval for funding projects probable of completion.

In fiscal 2020 , 2019 and 2018 , there were no capitalized direct labor costs associated with our development of software for internal use.

Impairment of Long-Lived Assets:

We evaluate our long-lived assets, which include finite-lived intangible assets, property and leasehold improvements for impairment as events and circumstances indicate that the carrying amount of an asset or a group of assets may not be recoverable. We assess the recoverability of the asset or a group of assets based on the undiscounted future cash flows the asset is expected to generate, and recognize an impairment loss when estimated undiscounted future cash flows expected to result from the use of the asset are less than its carrying value. If an asset or a group of assets are deemed to be impaired, the amount of the impairment loss, if any, represents the excess of the asset's or a group of assets' carrying value compared to their estimated fair values.

(i)   Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources. Comprehensive income and its components for fiscal 2020 , 2019 and 2018 are disclosed in the accompanying consolidated statements of comprehensive income.

As of June 30, 2020 and 2019 , accumulated other comprehensive income is comprised of foreign translation adjustments of $( 5.3 ) million and $ 0.3 million , respectively.

(j)   Accounting for Stock-Based Compensation

Substantially all stock-based compensation cost is measured at the grant date based on the fair value of the award and is recognized as expense over the vesting period.

(k)   Income Taxes

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Deferred income taxes are recognized based on temporary differences between the financial statement and tax bases of assets and liabilities. Deferred tax assets and liabilities are measured using the statutory tax rates and laws expected to apply to taxable income in the years in which the temporary differences are expected to reverse. Valuation allowances are provided against net deferred tax assets if, based upon the available evidence, it is more likely than not that some or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income and the timing of the temporary differences becoming deductible. Management considers, among other available information, scheduled reversals of deferred tax liabilities, projected future taxable income, limitations of availability of net operating loss carryforwards, and other matters in making this assessment.

We do not provide deferred taxes on unremitted earnings of foreign subsidiaries since we intend to indefinitely reinvest either currently or sometime in the foreseeable future. Unrecognized provisions for taxes on undistributed earnings of foreign subsidiaries, which are considered indefinitely reinvested, are not material to our consolidated financial position or results of operations. We are continuously subject to examination by the IRS, as well as various state and foreign jurisdictions. The IRS and other taxing authorities may challenge certain deductions and credits reported by us on our income tax returns. In accordance with provisions of ASC Topic 740, Income Taxes (ASC 740), an entity should recognize a tax benefit when it is more-likely-than-not, based on the technical merits, that the position would be sustained upon examination by a taxing authority. The amount to be recognized, if the more-likely-than-not threshold was passed, should be measured as the largest amount of tax benefit that is greater than 50 percent likely of being realized upon ultimate settlement with a taxing authority that has full knowledge of all relevant information. Furthermore, any change in the recognition, de-recognition or measurement of a tax position should be recorded in the period in which the change occurs. We account for interest and penalties related to uncertain tax positions as part of the provision for income taxes.

(l)   Loss Contingencies

We accrue estimated liabilities for loss contingencies arising from claims, assessments, litigation and other sources when it is probable that a liability has been incurred and the amount of the claim assessment or damages can be reasonably estimated. We believe that we have sufficient accruals to cover any obligations resulting from claims, assessments or litigation that have met these criteria.

(m)   Advertising Costs

Advertising costs are expensed as incurred and are classified as sales and marketing expenses. We incurred advertising expenses of $ 3.5 million , $ 4.4 million and $ 3.2 million during fiscal 2020 , 2019 and 2018 , respectively.

(n)    Research and Development Expense

We charge research and development expenditures to expense as the costs are incurred. Research and development expenses consist primarily of personnel expenses related to the creation of new products, enhancements and engineering changes to existing products and costs of acquired technology prior to establishing technological feasibility.

(o)    Equity Method Investments

During fiscal 2020 , we entered into a limited partnership investment fund agreement. The primary objective of this partnership is investing in equity and equity-related securities (including convertible debt) of venture growth- stage businesses. We account for the investment in accordance with Topic 323, Investments - Equity Method and Joint Ventures . Our total commitment under this partnership is 5.0 million CAD ( $ 3.5 million ). Under the conditions of the equity method investment, unfavorable future changes in market conditions could lead to a potential loss up to the full value of our 5.0 million CAD ( $ 3.5 million ) commitment. As of June 30, 2020 , the fair value of this investment is 0.5 million CAD ( $ 0.3 million ), representing our payments towards the total commitment during fiscal 2020 , and is recorded in non-current assets in our consolidated balance sheet.

(p) New Accounting Pronouncements Adopted in Fiscal 2020

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In February 2016, the FASB issued Accounting Standards Update ("ASU") No. 2016-02, Leases ("Topic 842"). Under the amendment, lessees are required to recognize virtually all of their leases on the balance sheet, by recording a right-of-use asset and lease liability. The ASU is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2018. We adopted Topic 842 effective July 1, 2019 using the effective date method with a modified retrospective transition approach. Results for reporting periods beginning on or after July 1, 2019 are presented under Topic 842, while prior period amounts were not adjusted and continue to be reported in accordance with the Company’s historic accounting under Topic 840 “Leases.” We elected the package of practical expedients permitted under the transition guidance within the new standard, which allowed the carry forward of historical assessments of whether a contract contains a lease, lease classification and initial direct costs. The most significant impact of the adoption of Topic 842 was the recognition of operating lease right-of-use assets of $ 28.5 million and current and non-current operating lease liabilities of $ 7.4 million and $ 26.5 million , respectively, and the reversal of deferred rent of $ 6.5 million as of July 1, 2019. The adoption of Topic 842 did not have a material impact on our operating results or cash flows, and there was no impact on our debt covenants. See Note 4, "Leases," to our Consolidated Financial Statements for more information on the impact of adopting Topic 842.

(q) Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments - Credit Losses ("Topic 326") . The amendment changes the impairment model for most financial assets and certain other instruments. Entities will be required to use a model that will result in the earlier recognition of allowances for losses for trade and other receivables, contract assets, held-to-maturity debt securities, loans, and other instruments. Topic 326 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2019. Early adoption is permitted. We are currently evaluating the impact of Topic 326 on our consolidated financial statements. Based upon the work performed to date, we do not expect the adoption of Topic 326 will result in a material impact to our consolidated financial statements.

In December 2019, the FASB issued ASU No. 2019-12, Income Taxes ("Topic 740") - Simplifying the Accounting for Income Taxes . ASU 2019-12 is intended to simplify accounting for income taxes. It removes certain exceptions to the general principles in Topic 740 and amends existing guidance to improve consistent application. ASU 2019-12 is effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2020. Early adoption is permitted. We are currently evaluating the impact of ASU 2019-12 on our consolidated financial statements.

In March 2020, the FASB issued ASU 2020-04, Facilitation of the Effects of Reference Rate Reform on Financial Reporting (“Topic 848”) . ASU 2020-04 provides practical expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The expedients and exceptions provided by ASU 2020-04 apply only to contracts, hedging relationships, and other transactions that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued as a result of reference rate reform. These amendments are not applicable to contract modifications made and hedging relationships entered into or evaluated after December 31, 2022. ASU No. 2020-04 is effective as of March 12, 2020 through December 31, 2022, and may be applied to contract modifications and hedging relationships from the beginning of an interim period that includes or is subsequent to March 12, 2020. We are currently evaluating the impact of ASU 2020-04 on our consolidated financial statements.

In accordance with Topic 606, we account for a customer contract when both parties have approved the contract and are committed to perform their respective obligations, each party’s rights can be identified, payment terms can be identified, the contract has commercial substance, and it is probable that we will collect substantially all of the consideration to which we are entitled. Revenue is recognized when, or as, performance obligations are satisfied by transferring control of a promised product or service to a customer.

Nature of Products and Services

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We generate revenue from the following sources: (1) License revenue; (2) Maintenance revenue; and (3) Services and other revenue. We sell our software products to end users primarily under fixed-term licenses. We license our software products primarily through a subscription offering which we refer to as our aspenONE licensing model, which includes software maintenance and support, known as our Premier Plus SMS offering, for the entire term. Our aspenONE products are organized into three suites: 1) engineering; 2) manufacturing and supply chain; and 3) asset performance management. The aspenONE licensing model provides customers with access to all of the products within the aspenONE suite(s) they license. We refer to these arrangements as token arrangements. Tokens are fixed units of measure. The amount of software usage is limited by the number of tokens purchased by the customer.

We also license our software through point product term arrangements, which include our Premier Plus SMS offering for the entire term.

We determine revenue recognition through the following steps:

• Identification of the contract, or contracts, with a customer;

• Identification of the performance obligations in the contract;

• Determination of the transaction price;

• Allocation of the transaction price to the performance obligations in the contract; and

• Recognition of revenue when, or as, we satisfy a performance obligation.

Term-based Arrangements: Term-based arrangements consist of on-premise term licenses as well as maintenance.

License

License revenue consists primarily of product and related revenue from our aspenONE licensing model and point product arrangements.

When a customer elects to license our products under our aspenONE licensing model, the customer receives, for the term of the arrangement, the right to all software products in the licensed aspenONE software suite. When a customer elects to license point products, the customer receives, for the term of the arrangement, the right to license specified products in the licensed aspenONE software suite. Revenue from initial product licenses is recognized upfront upon delivery.

Maintenance

When a customer elects to license our products under our aspenONE licensing model, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any updates that may be introduced into the licensed aspenONE software suite. When a customer elects to license point products, our Premier Plus SMS offering is included for the entire term of the arrangement and the customer receives, for the term of the arrangement, the right to any updates that may be introduced related to the specified products licensed. Maintenance represents a stand-ready obligation and, due to our obligation to provide unspecified future software updates on a when-and-if available basis as well as telephone support services, we are required to recognize revenue ratably over the term of the arrangement.

Services and Other Revenue

Professional Services Revenue

Professional services are provided to customers on a time-and-materials ("T&M") or fixed-price basis. The obligation to provide professional services is generally satisfied over time, with the customer simultaneously receiving and consuming the benefits as we satisfy our performance obligation. For professional services, revenue is recognized by measuring progress toward the completion of our obligations. We recognize professional services fees for our T&M contracts based upon hours worked and contractually agreed-upon hourly rates. Revenue from fixed-price engagements is recognized using the proportional performance method based on the ratio of costs incurred to the total estimated project costs. The use of the proportional performance method is dependent upon our ability to reliably estimate the costs to complete a project. We use historical experience as a basis for future estimates to complete current projects. Additionally, we believe that costs are the best available measure of performance. Out-of-pocket expenses which are reimbursed by customers are recorded as revenue.

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Training Revenue

We provide training services to our customers, including on-site, Internet-based, public and customized training. The obligation to provide training services is generally satisfied over time, with the customer simultaneously receiving and consuming the benefits as we satisfy our performance obligation. Revenue is recognized in the period in which the services are performed.

Contracts with Multiple Performance Obligations

Our contracts generally contain more than one of the products and services listed above, each of which is separately accounted for as a distinct performance obligation.

Allocation of consideration : We allocate total contract consideration to each distinct performance obligation in an arrangement on a relative standalone selling price basis. The standalone selling price reflects the price we would charge for a specific product or service if it was sold separately in similar circumstances and to similar customers.

If the arrangement contains professional services and other products or services, we allocate to the professional service obligation a portion of the total contract consideration based on the standalone selling price of professional services that is observed from consistently priced standalone sales.

The standalone selling price for term arrangements, which always include maintenance for the full term of the arrangement, is the price for the combined license and maintenance bundle. The amount assigned to the license and maintenance bundle is separated into license and maintenance amounts using the respective standalone selling prices represented by the value relationship between the software license and maintenance.

When two or more contracts are entered into at or near the same time with the same customer, we evaluate the facts and circumstances associated with the negotiation of those contracts. Where the contracts are negotiated as a package, we will account for them as a single arrangement and allocate the consideration for the combined contracts among the performance obligations accordingly.

Standalone selling price : When available, we use directly observable transactions to determine the standalone selling prices for performance obligations. Generally, directly observable data is not available for term licenses and maintenance. When term licenses are sold together with maintenance in a bundled arrangement, we estimate a standalone selling price for these distinct performance obligations using relevant information, including our overall pricing objectives and strategies and historical pricing data, and taking into consideration market conditions and other factors.

Other policies and judgments

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment annually over the term of the license arrangement. Therefore, we generally receive payment from a customer after the performance obligation related to the license has been satisfied, and therefore, our contracts generally contain a significant financing component. The significant financing component is calculated utilizing an interest rate that derives the net present value of the performance obligations delivered on an upfront basis based on the allocation of consideration. We have instituted a customer portfolio approach in assigning interest rates. The rates are determined at contract inception and are based on the credit characteristics of the customers within each portfolio.

Contract modifications

We sometimes enter into agreements to modify previously executed contracts, which constitute contract modifications. We assess each of these contract modifications to determine (i) if the additional products and services are distinct from the products and services in the original arrangement; and (ii) if the amount of consideration expected for the added products and services reflects the stand-alone selling price of those products and services, as adjusted for contract-specific circumstances. A contract modification meeting both criteria is accounted for as a separate contract. A contract modification not meeting both criteria is considered a change to the original contract and is accounted for on either (i) a prospective basis as a termination of the existing contract and the creation of a new contract; or (ii) a cumulative catch-up basis. Generally, our contract modifications meet both criteria and are accounted for as a separate contract, as adjusted for contract-specific circumstances.

Disaggregation of Revenue

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

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars in Thousands)
Revenue by region:
North America	$	264,134			$	254,428			$	235,430
Europe	148,774				153,284				115,990
Other (1)	185,809				188,970				156,146
	$	598,717			$	596,682			$	507,566
Revenue by type of performance obligation:
Term licenses	$	388,180			$	404,581			$	318,442
Maintenance	178,139				163,567				158,838
Professional services and other	32,398				28,534				30,286
	$	598,717			$	596,682			$	507,566
Revenue by segment:
Subscription and software	$	566,319			$	568,148			$	477,280
Services and other	32,398				28,534				30,286
	$	598,717			$	596,682			$	507,566

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(1)	Other consists primarily of Asia Pacific, Latin America and the Middle East.

Contract Assets and Deferred Revenue

The difference in the opening and closing balances of our contract assets and deferred revenue primarily results from the timing difference between our performance and the customer’s payment. We fulfill our obligations under a contract with a customer by transferring products and services in exchange for consideration from the customer. We recognize a contract asset when we transfer products or services to a customer and the right to consideration is conditional on something other than the passage of time. Accounts receivable are recorded when the customer has been billed or the right to consideration is unconditional. We recognize deferred revenue when we have received consideration or an amount of consideration is due from the customer and we have a future obligation to transfer products or services.

Payment terms and conditions vary by contract type. Terms generally include a requirement of payment annually over the term of the license arrangement. During the majority of each customer contract term, the amount invoiced is generally less than the amount of revenue recognized to date, primarily because we transfer control of the performance obligation related to the software license at the inception of the contract term, and the allocation of contract consideration to the license performance obligation is a significant portion of the total contract consideration. Therefore, our contracts often result in the recording of a contract asset throughout the majority of the contract term. We record a contract asset when revenue recognized on a contract exceeds the billings. We recognize an impairment on contract assets if subsequent to contract inception it becomes probable payment is not collectible. We review contract assets for impairment at each reporting date using the same methodology used in determining the allowance for doubtful accounts under Topic 310, Receivables . We review customer receivables and contract assets on an individual basis, and we impair receivables and the associated contract assets if it is probable that some or all of the asset is not collectible, taking into account historical losses, economic conditions and customer-specific factors.

Our contract assets and deferred revenue were as follows as of June 30, 2020 and 2019 :

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	June 30, 2020				June 30, 2019
					As Adjusted
	(Dollars in Thousands)
Contract assets	$	610,473			$	582,291
Deferred revenue	( 57,081		)		( 44,891		)
	$	553,392			$	537,400

Contract assets and deferred revenue are presented net at the contract level for each reporting period.

The change in deferred revenue during fiscal 2020 was primarily due to an increase in new billings in advance of revenue recognition, partially offset by $ 34.1 million of revenue recognized that was included in deferred revenue at June 30, 2019 .

Contract Costs

We pay commissions for new product sales as well as for renewals of existing contracts. Commissions paid to obtain renewal contracts are not commensurate with the commissions paid for new product sales and therefore, a portion of the commissions paid for new contracts relate to future renewals.

We account for new product sales commissions using a portfolio approach and allocate the cost of commissions in proportion to the allocation of transaction price of license and maintenance performance obligations, including assumed renewals. Commissions allocated to the license and license renewal components are expensed at the time the license revenue is recognized. Commissions allocated to maintenance are capitalized and amortized on a straight-line basis over a period of four years to eight years for new contracts, reflecting our estimate of the expected period that we will benefit from those commissions.

Amortization of capitalized contract costs is included in selling and marketing expenses in our statement of operations.

Transaction Price Allocated to Remaining Performance Obligations

The following table includes the aggregate amount of the transaction price allocated as of June 30, 2020 to the performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:

	Year Ended June 30,
	2021				2022				2023				2024				2025				Thereafter
	(Dollars in Thousands)
License	$	74,685			$	17,937			$	5,299			$	2,924			$	1,493			$	66
Maintenance	170,465				129,353				94,647				64,913				37,153				9,690
Services and other	50,589				901				650				313				172				141

We have operating leases primarily for corporate offices, and other operating leases for data centers and certain equipment. We determine whether an arrangement is or contains a lease based on facts and circumstances present at the inception of the arrangement. We recognize lease expense on a straight-line basis over the lease term. Our leases have remaining lease terms of less than one year to approximately ten years , some of which include options to extend the leases for up to five years , and some of which include the option to terminate the leases upon advanced notice of 30 days or more. If we are reasonably certain we will exercise an option to extend or terminate the lease, the time period covered by the extension or termination option is included in the lease term.

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Operating lease liabilities and their corresponding right-of-use assets are recorded based on the present value of lease payments over the expected lease term. The interest rate implicit in the lease contracts is typically not readily determinable. As such, we utilize the appropriate incremental borrowing rate, which is the rate incurred to borrow on a collateralized basis over a similar term at an amount equal to the lease payments in a similar economic environment. Certain adjustments to the right-of-use asset may be required for items such as incentives received. We have lease agreements with lease and non-lease components, which are accounted for separately.

Operating lease costs are recognized on a straight-line basis over the term of the lease. The components of lease expenses for the twelve months ended June 30, 2020 were as follows:

	Twelve Months Ended June 30, 2020
	(Dollars in Thousands)
Operating lease costs (1)	$	9,230
Total lease costs	$	9,230

________

(1) Operating lease costs include rent and fixed fees

The following table represents the weighted-average remaining lease term and discount rate information related to our operating leases:

	June 30, 2020
Weighted average remaining lease term	5.7 years
Weighted average discount rate	4.4	%

The following table represents the maturities of our operating lease liabilities as of June 30, 2020 :

	June 30, 2020
	(Dollars in Thousands)
Year Ending June 30,
2021	$	8,477
2022	8,784
2023	8,167
2024	7,516
2025	5,481
Thereafter	7,370
Total lease payments	45,795
Less: imputed interest	( 5,883		)
	$	39,912

The following table represents the contractual obligations for our operating leases as of June 30, 2019 :

	June 30, 2019 (1)
	(Dollars in Thousands)
Year Ending June 30,
2020	$	8,399
2021	7,820
2022	6,514
2023	5,862
2024	4,932
Thereafter	3,307
	$	36,834

________

(1) As previously disclosed in our 2019 Annual Report on Form 10-K under the previous lease accounting standard, Topic 840, Leases.

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We determine fair value by utilizing a fair value hierarchy that ranks the quality and reliability of the information used in its determination. Fair values determined using “Level 1 inputs” utilize unadjusted quoted prices in active markets for identical assets or liabilities that we have the ability to access. Fair values determined using “Level 2 inputs” utilize data points that are observable, such as quoted prices, interest rates and yield curves for similar assets and liabilities.

Cash equivalents are reported at fair value utilizing quoted market prices in identical markets, or "Level 1 Inputs." Our cash equivalents consist of short-term money market instruments.

Equity method investments are reported at fair value calculated in accordance with the market approach, utilizing market consensus pricing models with quoted prices that are directly or indirectly observable, or "Level 2 Inputs."

The following table summarizes financial assets and liabilities measured and recorded at fair value on a recurring basis in the accompanying consolidated balance sheets as of June 30, 2020 and 2019 , segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	Fair Value Measurements at Reporting Date Using,
	Quoted Prices in Active Markets for Identical Assets (Level 1 Inputs)				Significant Other Observable Inputs (Level 2 Inputs)
	(Dollars in Thousands)
June 30, 2020:
Cash equivalents	$	1,020			$	—
Equity method investments	—				342
June 30, 2019:
Cash equivalents	$	1,007			$	—

Financial instruments not measured or recorded at fair value in the accompanying consolidated financial statements consist of accounts receivable, accounts payable and accrued liabilities. The estimated fair value of these financial instruments approximates their carrying value. The estimated fair value of the borrowings under the Amended and Restated Credit Agreement (described below in Note 12, "Credit Agreement") approximates its carrying value due to the floating interest rate.

Our accounts receivable, net of the related allowance for doubtful accounts, were as follows as of June 30, 2020 and 2019 :

	June 30, 2020				June 30, 2019
	(Dollars in Thousands)
Accounts receivable, gross	$	62,925			$	51,133
Allowance for doubtful accounts	( 6,624		)		( 3,349		)
Accounts receivable, net	$	56,301			$	47,784

As of June 30, 2020 and 2019 , we had no customer receivable balance that represented approximately 10 % or more of our total receivables.

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Property, equipment and leasehold improvements in the accompanying consolidated balance sheets consist of the following:

	Year Ended June 30,
	2020				2019
	(Dollars in Thousands)
Property, equipment and leasehold improvements, at cost:
Computer equipment	$	6,958			$	6,642
Purchased software	22,534				22,793
Furniture & fixtures	6,971				6,794
Leasehold improvements	12,424				12,232
Property, equipment and leasehold improvements, at cost	48,887				48,461
Accumulated depreciation	( 42,924		)		( 41,227		)
Property, equipment and leasehold improvements, net	$	5,963			$	7,234

Property and equipment are stated at cost. We record depreciation using the straight-line method over their estimated useful lives, as follows:

Asset Classification	Estimated Useful Life
Computer equipment	3 years
Purchased software	3 - 5 years
Furniture and fixtures	3 - 10 years
Leasehold improvements	Life of lease or asset, whichever is shorter

During fiscal 2020 and 2019 , we wrote off fully depreciated property, equipment and leasehold improvements that were no longer in use with gross book values of $ 0.9 million and $ 3.5 million , respectively.

Depreciation expense was $ 2.4 million , $ 3.1 million and $ 3.9 million for fiscal 2020 , 2019 and 2018 , respectively.

We account for asset retirement obligations in accordance with ASC Topic 410, Asset Retirement and Environmental Obligations . Our asset retirement obligations relate to leasehold improvements for leased properties. The balance of our asset retirement obligations was $ 0.9 million as of June 30, 2020 and 2019 , respectively.

Sabisu Ltd.

On June 12, 2019, we completed the acquisition of all the outstanding shares of Argent & Waugh Limited and Sabisu Ltd. (“Sabisu”), a provider of a flexible enterprise visualization and workflow solution to deliver real-time decision support, for a total cash consideration of £ 6.2 million ( $ 7.9 million ). The purchase price consisted of £ 4.8 million ( $ 6.1 million ) of cash paid at closing, a subsequent working capital adjustment of £ 0.2 million ( $ 0.3 million ), and an additional £ 1.2 million ( $ 1.5 million ) to be held back until June 2021 as security for certain representations, warranties, and obligations of the sellers. The holdback is recorded in other non-current liabilities in our consolidated balance sheet.

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An allocation of the purchase price is as follows:

	Amount
	(Dollars in Thousands)
Tangible assets acquired, net	$	706
Identifiable intangible assets:
Technology-related	1,966
Customer relationships	1,180
Goodwill	4,576
Deferred tax liabilities	( 564		)
Total assets acquired, net	$	7,864

The goodwill reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Sabisu products and services to our existing customers.  The results of operations of Sabisu have been included prospectively in our results of operations since the date of acquisition

Mnubo, Inc.

On July 12, 2019, we completed the acquisition of all the outstanding shares of Mnubo Inc. (“Mnubo”), a Canada-based provider of purpose-built artificial intelligence and analytics infrastructure for the Internet of things, for a total cash consideration of $ 78.3 million ( 102.3 million CAD). The purchase price of $ 78.3 million includes $ 7.9 million ( 10.3 million CAD) paid into an escrow account as security for certain representations, warranties, and obligations of the sellers, which was released from the escrow account in July 2020.

An allocation of the purchase price is as follows:

	Amount
	(Dollars in Thousands)
Tangible assets acquired, net	$	512
Identifiable intangible assets:
Technology-related	13,660
Customer relationships	2,990
Goodwill	62,485
Deferred tax liabilities	( 1,347		)
Total assets acquired, net	$	78,300

The goodwill reflects the value of the assembled workforce and the company-specific synergies we expect to realize by selling Mnubo products and services to our existing customers.  The results of operations of Mnubo have been included prospectively in our results of operations since the date of acquisition.

We include in our amortizable intangible assets those intangible assets acquired in our business and asset acquisitions. We amortize acquired intangible assets with finite lives over their estimated economic lives, generally using the straight-line method. Each period, we evaluate the estimated remaining useful lives of acquired intangible assets to determine whether events or changes in circumstances warrant a revision to the remaining period of amortization. Acquired intangibles are removed from the accounts when fully amortized and no longer in use.

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Intangible assets consist of the following as of June 30, 2020 and 2019 :

	Gross Carrying Amount				Accumulated Amortization				Effect of Currency Translation				Net Carrying Amount
	(Dollars in Thousands)
June 30, 2020:
Technology	$	51,269			$	( 13,245	)		$	( 842	)		$	37,182
Customer relationships	9,148				( 3,171		)		( 308		)		5,669
Non-compete agreements	553				( 553		)		—				—
Total	$	60,970			$	( 16,969	)		$	( 1,150	)		$	42,851
June 30, 2019:
Technology	$	37,168			$	( 8,868	)		$	( 118	)		$	28,182
Customer relationships	6,503				( 1,039		)		( 100		)		5,364
Non-compete agreements	553				( 492		)		—				61
Total	$	44,224			$	( 10,399	)		$	( 218	)		$	33,607

Total amortization expense related to intangible assets amounted to $ 6.6 million , $ 4.5 million and $ 2.2 million in fiscal 2020 , 2019 and 2018 , respectively.

Future amortization expense as of June 30, 2020 is expected to be as follows:

Year Ended June 30,	Amortization Expense
	(Dollars in Thousands)
2021	$	6,842
2022	6,867
2023	6,843
2024	6,288
2025	6,197
Thereafter	9,814
Total	$	42,851

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The changes in the carrying amount of goodwill for our subscription and software reporting segment during the fiscal years ended June 30, 2020 and 2019 were as follows:

	Gross Carrying Amount				Accumulated Impairment Losses				Effect of Currency Translation				Net Carrying Amount
June 30, 2019:	$	145,572			$	( 65,569	)		$	( 1,620	)		$	78,383
Goodwill from acquisitions, net of adjustments	62,278				—				—				62,278
Foreign currency translation	—				—				( 3,606		)		( 3,606		)
June 30, 2020:	$	207,850			$	( 65,569	)		$	( 5,226	)		$	137,055
	Gross Carrying Amount				Accumulated Impairment Losses				Effect of Currency Translation				Net Carrying Amount
June 30, 2018:	$	142,316			$	( 65,569	)		$	( 1,157	)		$	75,590
Goodwill from acquisitions, net of adjustments	3,256				—				—				3,256
Foreign currency translation	—				—				( 463		)		( 463		)
June 30, 2019:	$	145,572			$	( 65,569	)		$	( 1,620	)		$	78,383

We test goodwill for impairment annually (or more often if impairment indicators arise), at the reporting unit level. We first assess qualitative factors to determine whether the existence of events or circumstances indicates that it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If we determine based on this assessment that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, we perform the goodwill impairment test. The first step requires us to determine the fair value of the reporting unit and compare it to the carrying amount, including goodwill, of such reporting unit. If the fair value exceeds the carrying amount, no impairment loss is recognized. However, if the carrying amount of the reporting unit exceeds its fair value, the goodwill of the unit is impaired.

Fair value of a reporting unit is determined using a combined weighted average of a market-based approach (utilizing fair value multiples of comparable publicly traded companies) and an income-based approach (utilizing discounted projected cash flows). In applying the income-based approach, we would be required to make assumptions about the amount and timing of future expected cash flows, growth rates and appropriate discount rates. The amount and timing of future cash flows would be based on our most recent long-term financial projections. The discount rate we would utilize would be determined using estimates of market participant risk-adjusted weighted-average costs of capital and reflect the risks associated with achieving future cash flows.

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Accrued expenses and other current liabilities in the accompanying consolidated balance sheets consist of the following:

	June 30, 2020				June 30, 2019
	(Dollars in Thousands)
Compensation-related	$	27,591			$	27,147
Deferred acquisition payments	1,479				4,600
Uncertain tax positions	318				3,751
Royalties and external commissions	3,359				3,665
Share repurchases	—				2,432
Professional fees	2,115				3,053
Deferred rent	—				1,331
Other	8,694				8,615
Total accrued expenses and other current liabilities	$	43,556			$	54,594

Other non-current liabilities in the accompanying consolidated balance sheets consist of the following:

	June 30, 2020				June 30, 2019
	(Dollars in Thousands)
Deferred rent	$	—			$	5,187
Uncertain tax positions	2,027				2,274
Deferred acquisition payments	—				1,524
Asset retirement obligations	920				914
Other	160				482
Total other non-current liabilities	$	3,107			$	10,381

In December 2019, we entered into an Amended and Restated Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, joint lead arranger and joint bookrunner, Silicon Valley Bank, as joint lead arranger, joint bookrunner and syndication agent, and the lenders and co-documentation agents named therein (the "Amended and Restated Credit Agreement"). The Amended and Restated Credit Agreement, which amends and restates the Credit Agreement we entered into as of February 26, 2016, provides for a $ 200.0 million secured revolving credit facility and a $ 320.0 million secured term loan facility.

Principal outstanding under the Amended and Restated Credit Agreement bears interest at a rate per annum equal to, at our option, either: (1) the sum of (a) the highest of (i) the rate of interest last quoted by The Wall Street Journal in the United States as the prime rate in effect, (ii) the NYFRB Rate plus 0.5 % , and (iii) the LIBO rate multiplied by the Statutory Reserve Rate plus 1.0 % , plus (b) a margin initially of 0.5 % for the first full fiscal quarter ending after the date of the Amended and Restated Credit Agreement and thereafter based on our leverage ratio (as defined in the Amended and Restated Credit Agreement); or (2) the sum of (a) the LIBO rate multiplied by the Statutory Reserve Rate, plus (b) a margin initially of 1.5 % for the first full fiscal quarter ending after the date of the Amended and Restated Credit Agreement and thereafter based on our leverage ratio. The interest rates as of June 30, 2020 were 1.68 % on $ 312.0 million in outstanding borrowings on our term loan facility and 1.69 % and 1.68 % on $ 100.0 million and $ 19.2 million , respectively, in outstanding borrowings on our revolving credit facility.

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All borrowings under the Amended and Restated Credit Agreement are secured by liens on substantially all of our assets and the assets of our subsidiary AspenTech Canada Holdings, LLC, which has guaranteed our obligations under the Amended and Restated Credit Agreement. Additional significant subsidiaries (as determined in the Amended and Restated Credit Agreement) may be required to guarantee our obligations and to grant liens on their assets in favor of the lenders.

As of June 30, 2020 , we had $ 119.2 million and $ 312.0 million in outstanding borrowings on our revolving credit facility and term loan facility, respectively. Our current borrowings of $ 135.2 million consist of $ 119.2 million of the revolving credit facility and $ 16.0 million of the term loan facility. Our non-current borrowings of $ 292.4 million consist of $ 296.0 million of our term loan facility, net of $ 3.6 million in debt issuance costs. We had $ 220.0 million in outstanding current borrowings as of June 30, 2019 .

The indebtedness under the revolving credit facility matures on December 23, 2024. The following table summarizes the maturities of the term loan facility:

Year Ended June 30,	Amount
	(Dollars in Thousands)
2021	$	16,000
2022	20,000
2023	28,000
2024	36,000
2025	212,000
Total	$	312,000

The Amended and Restated Credit Agreement contains affirmative and negative covenants customary for facilities of this type, including restrictions on incurrence of additional debt, liens, fundamental changes, asset sales, restricted payments and transactions with affiliates. There are also financial covenants regarding maintenance as of the end of each fiscal quarter, commencing with the quarter ending March 31, 2020, of a maximum leverage ratio of 3.50 to 1.00 and a minimum interest coverage ratio of 2.50 to 1.00. As of June 30, 2020 , we were in compliance with these covenants.

Stock Compensation Plans

In December 2016, the shareholders approved the establishment of the 2016 Omnibus Incentive Plan (the 2016 Plan), which provides for the issuance of a maximum of 6,000,000 shares of common stock. The 2016 Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-related awards, and performance awards that may be settled in cash, stock, or other property. As of June 30, 2020 , there were 5,999,368 shares of common stock available for issuance subject to awards under the 2016 Plan.

In April 2010, the shareholders approved the establishment of the 2010 Equity Incentive Plan (the 2010 Plan), which provides for the issuance of a maximum of 7,000,000 shares of common stock. The 2010 Plan provides for the grant of incentive and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, other stock-related awards, and performance awards that may be settled in cash, stock, or other property. The 2010 Plan expired in March 2020.

Employee Stock Purchase Plan

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On July 26, 2018, our Board of Directors approved the Aspen Technology, Inc. 2018 Employee Stock Purchase Plan (the "ESPP"), which provides for the issuance of up to 250,000 shares of common stock to participating employees. The ESPP is intended to be a qualified employee stock purchase plan under Section 423 of the Internal Revenue Code of 1986, or the IRC.  The ESPP was approved at our Annual Meeting of Stockholders on December 7, 2018.  The ESPP currently provides for a purchase price equal to 85 % of the lower of (a) the fair market value of the common stock on the first trading day of each ESPP offering period and (b) the fair market value of the common stock on the last day of the offering period. Our initial offering period was January 1, 2019 through June 30, 2019. Our current offering period is July 1, 2020 through December 31, 2020.

We recorded stock-based compensation expense associated with the ESPP of approximately $ 0.5 million and $ 0.3 million during fiscal 2020 and 2019 , respectively. As a result of employee stock purchases, we issued 19,222 shares and 13,039 shares of common stock during fiscal 2020 and 2019 , respectively. The aggregate intrinsic value of shares issued under the ESPP was $ 1.8 million and $ 0.9 million during fiscal 2020 and 2019 , respectively. As of June 30, 2020 , there were 217,739 shares of common stock available for issuance under the ESPP.

General Award Terms

We issue stock options and restricted stock units (RSUs) to our employees and outside directors, pursuant to shareholder-approved equity compensation plans. Option awards are granted with an exercise price equal to the market closing price of our stock on the trading day prior to the grant date. Those options generally vest over four years and expire within 7 or 10 years of grant. RSUs generally vest over four years . Historically, our practice has been to settle stock option exercises and RSU vesting through newly-issued shares.

Stock Compensation Accounting

Our stock-based compensation is accounted for as awards of equity instruments. Our policy is to issue new shares upon the exercise of stock awards.

We utilize the Black-Scholes option valuation model for estimating the fair value of options granted. The Black-Scholes option valuation model incorporates assumptions regarding expected stock price volatility, the expected life of the option, the risk-free interest rate, dividend yield and the market value of our common stock. The expected stock price volatility is determined based on our stock's historic prices over a period commensurate with the expected life of the award. The expected life of an option represents the period for which options are expected to be outstanding as determined by historic option exercises and cancellations. The risk-free interest rate is based on the U.S. Treasury yield curve for notes with terms approximating the expected life of the options granted. The expected dividend yield is zero , based on our history and expectation of not paying dividends on common shares. We recognize compensation costs on a straight-line basis, net of forfeitures, over the requisite service period for time-vested awards.

The weighted average estimated fair value of option awards granted during fiscal 2020 , 2019 and 2018 was $ 33.13 , $ 31.25 , and $ 17.07 , respectively.

We utilized the Black-Scholes option valuation model with the following weighted average assumptions:

	Year Ended June 30,
	2020			2019			2018
Risk-free interest rate	1.5	%		2.8	%		1.7	%
Expected dividend yield	None			None			None
Expected life (in years)	4.5			4.6			4.6
Expected volatility factor	26.8	%		26.6	%		28.0	%

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The stock-based compensation expense and its classification in the accompanying consolidated statements of operations for fiscal 2020 , 2019 and 2018 was as follows:

	Year Ended June 30,
	2020				2019				2018
	(Dollars in Thousands)
Recorded as expenses:
Cost of maintenance	$	1,441			$	1,282			$	559
Cost of service and other	1,961				1,420				920
Selling and marketing	5,656				4,849				3,862
Research and development	8,306				6,923				7,617
General and administrative	14,184				13,099				9,730
Total stock-based compensation	$	31,548			$	27,573			$	22,688

A summary of stock option and RSU activity under all equity plans in fiscal 2020 is as follows:

	Stock Options													Restricted Stock Units
	Shares			Weighted Average Exercise Price				Weighted Average Remaining Contractual Term		Aggregate Intrinsic Value (in 000's)				Shares			Weighted Average Grant Date Fair Value
Outstanding at June 30, 2019	1,304,017			$	60.33			6.94		$	83,388			793,718			$	98.38
Granted	297,859			133.00										266,514			133.35
Settled (RSUs)														( 263,136	)		84.30
Exercised	( 154,168	)		46.31
Cancelled / Forfeited	( 37,569	)		99.00										( 444,175	)		116.46
Outstanding at June 30, 2020	1,410,139			$	76.19			6.67		$	49,705			352,921			$	112.45
Exercisable at June 30, 2020	977,190			$	59.86			5.87		$	45,976
Vested and expected to vest at June 30, 2020	1,364,448			$	74.94			6.61		$	49,308			291,775			$	112.33

During fiscal 2020 , 2019 and 2018 , the weighted average grant-date fair value of RSUs granted was $ 133.35 , $ 114.72 and $ 64.32 , respectively. During fiscal 2020 , 2019 and 2018 the total fair value of vested shares from RSU grants amounted to $ 29.7 million , $ 39.9 million and $ 23.0 million , respectively.

As of June 30, 2020 , the total future unrecognized compensation cost related to stock options and RSUs was $ 10.0 million and $ 20.1 million , respectively, and are expected to be recorded over a weighted average period of 2.42 years and 2.09 years , respectively.

During fiscal 2020 , 2019 and 2018 the weighted average exercise price of stock options granted was $ 133.00 , $ 113.88 and $ 64.30 . The total intrinsic value of options exercised during fiscal 2020 , 2019 and 2018 was $ 9.9 million , $ 18.2 million and $ 15.1 million , respectively. We received $ 9.0 million , $ 10.9 million and $ 13.5 million in cash proceeds from issuances of shares of common stock during fiscal 2020 , 2019 and 2018 , respectively. We paid $ 10.2 million , $ 14.7 million and $ 8.1 million for withholding taxes on vested RSUs during fiscal 2020 , 2019 and 2018 , respectively.

At June 30, 2020 , common stock reserved for future issuance under equity compensation plans was 6.0 million shares.

Performance Awards

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Beginning in fiscal 2019 , we granted performance-based long-term incentive awards (“performance awards”) to certain of our executives, including our named executive officers. The performance period for each performance award is either of the following two-year periods: (i) fiscal 2019 - fiscal 2020, or (ii) fiscal 2020 - fiscal 2021.  Participants receive RSUs on the grant date associated with achievement of all performance targets. The performance targets for the performance awards are based on meeting at least ten percent growth in annual spend for each fiscal year, defined as an estimate of the annualized value of our portfolio of term license arrangements, as of a specific date, and the performance goals set out in the executive bonus plan for each fiscal year, such as free cash flow. If the performance targets are met during one of the two performance periods and the participant remains actively employed by us, the RSUs convert to time-based vesting wherein fifty percent of the awards immediately vest, and the remaining fifty percent are subject to additional service vesting over a three-year period.  If the performance targets are not met, the participant is no longer actively employed by us prior to the performance targets being met, or the participant is otherwise determined to be ineligible, the participant forfeits all of the RSUs.

We record compensation expense for the performance awards based on the fair value of the awards, in an amount proportionate to the service time rendered by the participant, when it is probable that the achievement of the goals will be met. The total fair value of the performance awards was estimated using the closing price on the date of grant as well as the estimated probable achievement levels of the performance metrics.  If the performance-based conditions are not met, no compensation cost is recognized and any recognized compensation cost is reversed.

On January 22, 2015, our Board of Directors approved a share repurchase program (the "Share Repurchase Program") for up to $ 450.0 million of our common stock. The Share Repurchase Program was announced on January 28, 2015, and expires at the end of each fiscal year unless extended. On April 26, 2016, June 8, 2017, April 18, 2018, December 6, 2018, and April 17, 2019, the Board of Directors approved a $ 400.0 million , $ 200.0 million , $ 200.0 million , $ 100.0 million , and $ 200.0 million increase in the Share Repurchase Program, respectively. On July 22, 2020, our Board of Directors approved a new share repurchase program (the "New Share Repurchase Program") for up to $ 200.0 million of our common stock, and terminated the Share Repurchase Program. The timing and amount of any shares repurchased are based on market conditions and other factors. All shares of our common stock repurchased have been recorded as treasury stock under the cost method.

During fiscal 2020 , we repurchased 1,252,289 shares of our common stock in the open market for $ 150.0 million . During fiscal 2019 , we repurchased 3,074,127 shares of our common stock in the open market for $ 300.0 million . During fiscal 2018 , we repurchased 2,797,623 shares of our common stock in the open market for $ 200.0 million .

As of June 30, 2020 , the remaining dollar value under the Share Repurchase Program was $ 196.3 million .

Basic income per share is determined by dividing net income by the weighted average common shares outstanding during the period. Diluted income per share is determined by dividing net income by diluted weighted average shares outstanding during the period. Diluted weighted average shares reflect the dilutive effect, if any, of potential common shares. To the extent their effect is dilutive, employee equity awards and other commitments to be settled in common stock are included in the calculation of diluted net income per share based on the treasury stock method.

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The calculations of basic and diluted net income per share and basic and dilutive weighted average shares outstanding for the years ended June 30, 2020 , 2019 and 2018 are as follows:

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars and Shares in Thousands, Except per Share Data)
Net income	$	229,671			$	261,362			$	281,234
Weighted average shares outstanding	68,000				69,925				72,140
Dilutive impact from:
Employee equity awards	727				862				816
Dilutive weighted average shares outstanding	68,727				70,787				72,956
Income per share
Basic	$	3.38			$	3.74			$	3.90
Dilutive	$	3.34			$	3.69			$	3.85

For the years ended June 30, 2020 , 2019 and 2018 , certain employee equity awards were anti-dilutive based on the treasury stock method. The following employee equity awards were excluded from the calculation of dilutive weighted average shares outstanding because their effect would be anti-dilutive as of the balance sheet date:

	Year Ended June 30,
	2020			2019			2018
	(Shares in Thousands)
Employee equity awards	670			784			419

Included in the table above are options to purchase 287,809 shares of our common stock as of June 30, 2020 which were not included in the computation of dilutive weighted average shares outstanding, because their exercise prices ranged from $ 116.90 per share to $ 138.14 per share and were greater than the average market price of our common stock during the period then ended. These options were outstanding as of June 30, 2020 and expire at various dates through February 17, 2030.

Income before provision for income taxes consists of the following:

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars in Thousands)
Domestic	$	274,066			$	297,002			$	218,452
Foreign	5,291				4,525				7,901
Income before provision for income taxes	$	279,357			$	301,527			$	226,353

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The provision for income taxes shown in the accompanying consolidated statements of operations is composed of the following:

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars in Thousands)
Federal—
Current	$	17,048			$	64,194			$	47,734
Deferred	28,101				( 27,267		)		( 107,588		)
State—
Current	1,367				3,246				1,471
Deferred	500				( 1,033		)		939
Foreign—
Current	2,797				1,549				2,296
Deferred	( 127		)		( 524		)		267
	$	49,686			$	40,165			$	( 54,881	)

Our tax expense for fiscal 2020 was unfavorably impacted by the recognition of $ 6.4 million tax expense due to an accounting method change election when we filed our fiscal 2019 federal tax return as a result of a change in tax regulations during this fiscal year, to defer the acceleration of income for tax purposes as a result of adopting Topic 606. Fiscal 2020 was favorably impacted by the FDII deduction and tax credits.

The provision for income taxes differs from that based on the federal statutory rate due to the following:

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars in Thousands)
Federal tax provision at statutory rate	$	58,665			$	63,321			$	63,515
State income taxes	1,225				1,533				1,411
Remeasurement of deferred taxes	—				—				( 110,986		)
Foreign-derived intangible income (FDII)	( 13,581		)		( 20,326		)		—
Global intangible low-taxed income (GILTI)	404				797				—
Effect of foreign operations	6,148				7,395				4,700
Impact of tax accounting method change	6,433				—				—
Foreign taxes and rate differences	404				514				( 164		)
Stock-based compensation	33				( 3,774		)		( 2,951		)
Tax credits	( 7,969		)		( 9,677		)		( 7,913		)
Uncertain tax positions	( 3,236		)		1,055				( 185		)
Domestic production activity deduction	—				—				( 4,869		)
Valuation allowance	504				( 550		)		2,326
Other, net	656				( 123		)		235
Provision for income taxes	$	49,686			$	40,165			$	( 54,881	)

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Net deferred tax liabilities consist of the following at June 30, 2020 and 2019 :

	Year Ended June 30,
	2020				2019
					As Adjusted
	(Dollars in Thousands)
Deferred tax assets:
State and foreign credits	$	4,922			$	4,055
Net operating loss carryforwards	1,200				906
Deferred revenue	4,596				5,252
Other reserves and accruals	7,465				6,082
Intangible assets	982				1,020
Property, leasehold improvements, and other basis differences	5,514				1,433
Other temporary differences	925				453
	25,604				19,201
Deferred tax liabilities:
Contract assets and costs	( 158,538		)		( 147,619		)
Deferred revenue	( 27,066		)		( 8,610		)
Intangible assets	( 6,815		)		( 5,635		)
Property, leasehold improvements, and other basis differences	( 5,223		)		( 1,146		)
	( 197,642		)		( 163,010		)
Valuation allowance	( 6,205		)		( 4,866		)
Net deferred tax liabilities	$	( 178,243	)		$	( 148,675	)

Reflected in the deferred tax assets above at June 30, 2020 , we have foreign net operating loss carryforwards of $ 1.2 million , with unlimited carryforwards, and state and foreign research and development credits of $ 5.4 million which begin to expire in 2025.

Our valuation allowance for deferred tax assets was $ 6.2 million and $ 4.9 million as of June 30, 2020 and 2019 , respectively. The most significant portion of the valuation allowance as of June 30, 2020 is attributable to a reserve against state R&D tax credits of $ 4.8 million .

For fiscal 2020 , our income tax provision included amounts determined under the provisions of ASC 740 intended to satisfy additional income tax assessments, including interest and penalties, that could result from any tax return positions for which the likelihood of sustaining the position on audit does not meet a threshold of "more likely than not." Tax liabilities were recorded as a component of our income taxes payable and other non-current liabilities. The ultimate amount of taxes due will not be known until examinations are completed and settled or the audit periods are closed by statutes.

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A reconciliation of the reserve for uncertain tax positions is as follows:

	Year Ended June 30,
	2020				2019				2018
	(Dollars in Thousands)
Uncertain tax positions, beginning of year	$	5,380			$	3,931			$	3,921
Gross increases (decreases) —tax positions in prior period	( 2,216		)		407				544
Gross increases—tax positions in current period	—				1,789				—
Gross decreases—lapse of statutes	( 1,032		)		( 740		)		( 637		)
Currency translation adjustment	( 26		)		( 7		)		103
Uncertain tax positions, end of year	$	2,106			$	5,380			$	3,931

At June 30, 2020 , the total amount of unrecognized tax benefits is $ 2.1 million . Upon being recognized, $ 1.9 million would reduce the effective tax rate. Our policy is to recognize interest and penalties related to income tax matters as provision for (benefit from) income taxes. At June 30, 2020 , we had approximately $ 0.3 million of accrued interest and $ 0.1 million of penalties related to uncertain tax positions. We recorded a benefit for interest and penalties of approximately $ 0.3 million during fiscal 2020 .

We are subject to income tax in many jurisdictions outside the U.S. Our operations in certain jurisdictions remain subject to examination for tax years 2009 to 2019, some of which are currently under audit by local tax authorities. The resolutions of these audits are not expected to be material to our consolidated financial statements.

Standby letters of credit for $ 3.5 million and $ 3.9 million secured our performance on professional services contracts, certain facility leases and potential liabilities as of June 30, 2020 and 2019 , respectively. The letters of credit as of June 30, 2020 expire at various dates through fiscal 2026.

We maintain a defined contribution retirement plan under Section 401(k) of the Internal Revenue Code (IRC) covering all eligible employees, as defined. Under the plan, a participant may elect to defer receipt of a stated percentage of his or her compensation, subject to limitation under the IRC, which would otherwise be payable to the participant for any plan year. We may make discretionary contributions to this plan, including making matching contributions of 50 % , up to a maximum of 6 % of an employee's pretax contribution. We made matching contributions of approximately $ 2.8 million , $ 2.6 million and $ 2.7 million in fiscal 2020 , 2019 and 2018 , respectively. Additionally, we participate in certain government mandated and defined contribution plans throughout the world for which we comply with all funding requirements.

Operating segments are defined as components of an enterprise that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker in deciding how to allocate resources and to assess performance. Our chief operating decision maker is our President and Chief Executive Officer.

We have two operating and reportable segments, which are consistent with our reporting units: i) subscription and software and ii) services and other. The subscription and software segment is engaged in the licensing of process optimization and asset performance management software solutions and associated support services, and includes our license and maintenance revenue. The services and other segment includes professional services and training, and includes our services and other revenue. We do not track assets or capital expenditures by operating segments. Consequently, it is not practical to present assets, capital expenditures, depreciation or amortization by operating segments.

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The following table presents a summary of our reportable segments' profits:

	Subscription and Software				Services and Other				Total
	(Dollars in Thousands)
Year Ended June 30, 2020:
Segment revenue	$	566,319			$	32,398			$	598,717
Segment expenses (1)	( 233,205		)		( 35,118		)		( 268,323		)
Segment profit	$	333,114			$	( 2,720	)		$	330,394
Year Ended June 30, 2019, As Adjusted:
Segment revenue	$	568,148			$	28,534			$	596,682
Segment expenses (1)	( 220,764		)		( 31,548		)		( 252,312		)
Segment profit	$	347,384			$	( 3,014	)		$	344,370
Year Ended June 30, 2018, As Adjusted:
Segment revenue	$	477,280			$	30,286			$	507,566
Segment expenses (1)	( 204,457		)		( 28,000		)		( 232,457		)
Segment profit	$	272,823			$	2,286			$	275,109

____________________________________________

(1)	Our reportable segments’ operating expenses include expenses directly attributable to the segments. Segment expenses include selling and marketing and research and development expenses. Segment expenses do not include allocations of general and administrative expense; interest income; interest expense; and other (expense) income, net.

Reconciliation to Income Before Income Taxes

The following table presents a reconciliation of total segment operating profit to income before provision for income taxes:

	Year Ended June 30,
	2020				2019				2018
					As Adjusted				As Adjusted
	(Dollars in Thousands)
Total segment profit for reportable segments	$	330,394			$	344,370			$	275,109
General and administrative	( 73,035		)		( 63,231		)		( 67,181		)
Interest income	32,658				28,457				24,954
Interest (expense)	( 11,862		)		( 8,733		)		( 5,691		)
Other (expense) income, net	1,202				664				( 838		)
Income before income taxes	$	279,357			$	301,527			$	226,353

Geographic Information:

We have long-lived assets of approximately $ 92.9 million that are located domestically and $ 132.4 million that reside in other geographic locations as of June 30, 2020 . We had long-lived assets of approximately $ 79.0 million that were located domestically and $ 44.5 million that reside in other geographic locations as of June 30, 2019 .

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In the fourth quarter of fiscal 2020, we identified errors affecting the transition adjustment recorded upon the adoption of Topic 606 as well as errors in the determination of revenue balances in the periods post-adoption of Topic 606, and as a consequence, we have corrected the impact of the previously reported transition adjustment related to contract assets to reflect a lower contract asset balance and related deferred income taxes balance, in addition to reductions in revenue and net income for the fiscal years ended June 30, 2019 and 2018. The Company considered both the quantitative and qualitative factors within the provisions of SEC Staff Accounting Bulletin No. 99, Materiality , and Staff Accounting Bulletin No. 108, Considering the Effect of Prior Year Misstatements when Quantifying Misstatements in Current Year Financial Statements . Based on evaluation of the misstatements on an individual and aggregate basis, the Company concluded the prior period errors were immaterial to the previously issued consolidated financial statements. As such, the Company has elected to correct the identified error in the prior periods within the current Consolidated Financial Statements. Future filings that include prior periods will be corrected, as needed, when filed. The following presents the effect of recording the immaterial correction in the consolidated financial statements as of and for the fiscal years ended June 30, 2019 and 2018:

	Year Ended June 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Consolidated Statements of Operations
Revenue:
License	$	404,122			$	459			$	404,581
Maintenance	165,436				( 1,869		)		163,567
Services and other	28,787				( 253		)		28,534
Total revenue	598,345				( 1,663		)		596,682
Gross profit	540,529				( 1,663		)		538,866
Income from operations	282,802				( 1,663		)		281,139
Income before income taxes	303,190				( 1,663		)		301,527
Provision for (benefit from) income taxes	40,456				( 291		)		40,165
Net income	$	262,734			$	( 1,372	)		$	261,362
Net income per common share:
Basic	$	3.76			$	( 0.02	)		$	3.74
Diluted	$	3.71			$	( 0.02	)		$	3.69

	Year Ended June 30, 2018
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Consolidated Statements of Operations
Revenue:
License	$	326,549			$	( 8,107	)		$	318,442
Maintenance	161,065				( 2,227		)		158,838
Services and other	31,245				( 959		)		30,286
Total revenue	518,859				( 11,293		)		507,566
Gross profit	468,215				( 11,293		)		456,922
Income from operations	219,221				( 11,293		)		207,928
Income before income taxes	237,646				( 11,293		)		226,353
Provision for (benefit from) income taxes	( 56,057		)		1,176				( 54,881		)
Net income	$	293,703			$	( 12,469	)		$	281,234
Net income per common share:
Basic	$	4.07			$	( 0.17	)		$	3.90
Diluted	$	4.03			$	( 0.18	)		$	3.85

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	June 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands)
Consolidated Balance Sheets
Prepaid expenses and other current assets	$	12,628			$	( 2,640	)		$	9,988
Non-current contract assets	325,510				( 37,412		)		288,098
Total assets	903,065				( 40,052		)		863,013
Deferred income taxes	159,071				( 8,727		)		150,344
Retained earnings	1,259,984				( 31,325		)		1,228,659
Total stockholders' equity	393,285				( 31,325		)		361,960
Total liabilities and stockholders' equity	$	903,065			$	( 40,052	)		$	863,013
	June 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Stockholders' Equity
Retained earnings, beginning of year	$	997,250			$	( 29,953	)		$	967,297
Retained earnings, end of year	1,259,984				( 31,325		)		1,228,659
	June 30, 2018
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Stockholders' Equity
Retained earnings, beginning of year	$	703,547			$	( 17,484	)		$	686,063
Retained earnings, end of year	997,250				( 29,953		)		967,297

	Year Ended June 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Cash Flows
Cash flows from operating activities:
Net income	$	262,734			$	( 1,372	)		$	261,362
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	( 26,839		)		( 290		)		( 27,129		)
Changes in assets and liabilities:
Contract assets	( 59,322		)		1,662				( 57,660		)
Net cash provided by operating activities	238,313				—				238,313

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	Year Ended June 30, 2018
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands)
Consolidated Statements of Cash Flows
Cash flows from operating activities:
Net income	$	293,703			$	( 12,469	)		$	281,234
Adjustments to reconcile net income to net cash provided by operating activities:
Deferred income taxes	( 110,308		)		1,177				( 109,131		)
Changes in assets and liabilities:
Contract assets	3,640				11,292				14,932
Net cash provided by operating activities	206,936				—				206,936

The following tables present quarterly consolidated statement of operations data for fiscal 2020 and 2019. The below data is unaudited but, in our opinion, reflects all adjustments necessary for a fair presentation of this data in accordance with GAAP. Selected quarterly data provided below has been revised, as compared to the selected quarterly financial data presented in the Company’s Quarterly Reports on Form 10-Q for the immaterial correction discussed within Note 20, "Immaterial Correction to Prior Period Financial Statements."

The following presents results of operations for the fourth quarter of fiscal 2020, and also presents the effect of recording the immaterial correction in the consolidated quarterly financial data for the first three quarters of fiscal 2020 and the four quarters of fiscal 2019:

	Three Months Ended
	June 30, 2020
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	201,940
Gross profit	186,782
Income from operations	116,296
Net income	94,530
Net income per common share:
Basic	$	1.40
Diluted	$	1.39
Weighted average shares outstanding:
Basic	67,634
Diluted	68,176

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	Three Months Ended March 31, 2020
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	132,027			$	( 1,439	)		$	130,588
Gross profit	116,322				( 1,439		)		114,883
Income from operations	46,173				( 1,439		)		44,734
Net income	43,521				( 1,695		)		41,826
Net income per common share:
Basic	$	0.64			$	( 0.02	)		$	0.62
Diluted	$	0.64			$	( 0.03	)		$	0.61
Weighted average shares outstanding:
Basic	67,806				—				67,806
Diluted	68,482				—				68,482

	Three Months Ended December 31, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	124,732			$	1,280			$	126,012
Gross profit	109,206				1,280				110,486
Income from operations	41,659				1,280				42,939
Net income	38,275				1,526				39,801
Net income per common share:
Basic	$	0.56			$	0.02			$	0.58
Diluted	$	0.56			$	0.02			$	0.58
Weighted average shares outstanding:
Basic	68,114				—				68,114
Diluted	68,844				—				68,844

	Three Months Ended September 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	134,091			$	6,086			$	140,177
Gross profit	118,873				6,086				124,959
Income from operations	47,304				6,086				53,390
Net income	46,284				7,230				53,514
Net income per common share:
Basic	$	0.68			$	0.10			$	0.78
Diluted	$	0.67			$	0.10			$	0.77
Weighted average shares outstanding:
Basic	68,441				—				68,441
Diluted	69,317				—				69,317

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	Three Months Ended June 30, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	195,769			$	1,388			$	197,157
Gross profit	180,279				1,388				181,667
Income from operations	111,223				1,388				112,611
Net income	103,865				2,129				105,994
Net income per common share:
Basic	$	1.51			$	0.03			$	1.54
Diluted	$	1.49			$	0.03			$	1.52
Weighted average shares outstanding:
Basic	68,839				—				68,839
Diluted	69,638				—				69,638

	Three Months Ended March 31, 2019
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	147,984			$	312			$	148,296
Gross profit	133,624				312				133,936
Income from operations	70,831				312				71,143
Net income	61,587				364				61,951
Net income per common share:
Basic	$	0.89			$	—			$	0.89
Diluted	$	0.88			$	—			$	0.88
Weighted average shares outstanding:
Basic	69,423				—				69,423
Diluted	70,160				—				70,160

	Three Months Ended December 31, 2018
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	140,423			$	( 2,400	)		$	138,023
Gross profit	125,684				( 2,400		)		123,284
Income from operations	63,758				( 2,400		)		61,358
Net income	59,217				( 2,763		)		56,454
Net income per common share:
Basic	$	0.84			$	( 0.04	)		$	0.80
Diluted	$	0.83			$	( 0.04	)		$	0.79
Weighted average shares outstanding:
Basic	70,428				—				70,428
Diluted	71,148				—				71,148

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	Three Months Ended September 30, 2018
	As Previously Reported				Adjustments				As Adjusted
	(Dollars in Thousands, Except per Share Data)
Total revenue	$	114,169			$	( 963	)		$	113,206
Gross profit	100,942				( 963		)		99,979
Income from operations	36,990				( 963		)		36,027
Net income	38,066				( 1,100		)		36,966
Net income per common share:
Basic	$	0.54			$	( 0.02	)		$	0.52
Diluted	$	0.53			$	( 0.02	)		$	0.51
Weighted average shares outstanding:
Basic	70,988				—				70,988
Diluted	72,015				—				72,015

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Schedule II - Valuation and Qualifying Accounts

Description		Balance at Beginning of Year				Additions: Charges to Costs and Expenses				Deductions: Returns and Write-Offs				Balance at End of Year
		(Dollars in Thousands)
Year ended June 30, 2020 Allowance for doubtful accounts		$	( 3,349	)		$	( 5,255	)		$	1,980			$	( 6,624	)
Year ended June 30, 2019 Allowance for doubtful accounts		( 2,703		)		( 1,621		)		975				( 3,349		)
Year ended June 30, 2018 Allowance for doubtful accounts		( 1,285		)		( 2,463		)		1,045				( 2,703		)

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(1)	The SEC File No. is 000-24786 for Exhibits 3.1, 4.1, 10.2, 10.3, and 10.28, inclusive. The SEC File No. for all other exhibits is 001-34630.

^	Management contract or compensatory plan or arrangement

*	The certification attached as Exhibit 32.1 that accompanies this Form 10-K is not deemed filed with the SEC and is not to be incorporated by reference into any filing of Aspen Technology, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date of this Form 10-K, irrespective of any general incorporation language contained in such filing.

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