Company: CVLT
Filing Date: 2025-01-29
Form Type: 10-Q
Source: 0001169561-25-000007
Chunk: 52

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-01-29
Form: 10-Q
Item: Item 8
Chunk 52
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 The related stock-based compensation expense is determined based on the estimated fair value of the underlying shares on the date of grant and is recognized using the accelerated method over the vesting term. The estimated fair value was calculated using a Monte Carlo simulation model.  The fair value of the awards granted during the nine months ended December 31, 2024 was $175.25 per unit.  The awards are included in the restricted stock unit table.Employee Stock Purchase PlanThe ESPP is a shareholder approved plan under which substantially all employees may purchase our common stock through payroll deductions at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of six-month offering periods. An employee’s payroll deductions under the ESPP are limited to 10% of the employee’s salary and employees may not purchase more than $25 of stock during any calendar year. Employees purchased 68 shares in exchange for $5,486 of proceeds in the nine months ended December 31, 2024, and 96 shares in exchange for $5,164 of proceeds in the nine months ended December 31, 2023. The ESPP is considered compensatory and the fair value of the discount and look back provision are estimated using the Black-Scholes formula and recognized over the six-month withholding period prior to purchase. The total expense associated with the ESPP for the nine months ended December 31, 2024 and 2023 was $2,746 and $2,391, respectively. As of December 31, 2024, there was approximately $523 of unrecognized cost related to the current offering period of our ESPP.

11.    Income Taxes

Income tax expense was $4,085 and $7,307 in the three and nine months ended December 31, 2024, respectively, compared to expense of $5,176 and $17,772 in the three and nine months ended December 31, 2023, respectively. The decrease in income tax expense compared to the prior year period relates primarily to the recognition of deferred tax assets that were not recognized in prior years due to the Company’s valuation allowance, as well as windfalls from stock compensation.

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Table of Contents      Commvault Systems, Inc.Notes to Consolidated Financial Statements - Unaudited (continued)(In thousands, except per share data)

12.    Restructuring

Beginning in the fourth quarter of fiscal 2024, we initiated a restructuring plan intended