Company: CVLT
Filing Date: 2025-05-05
Form Type: 10-K
Source: 0001169561-25-000034
Chunk: 96

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-05-05
Form: 10-K
Item: Item 8
Chunk 96
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ued) (In thousands, except per share data) 

8.     Accrued Liabilities

Accrued liabilities consist of the following:  March 31, 20252024Compensation and related payroll taxes$95,067 $70,961 Other52,066 46,283 $147,133 $117,244 

9.     Commitments and Contingencies

Purchase CommitmentsWe, in the normal course of business, enter into various purchase commitments for goods or services. Our outstanding commitments primarily relate to marketing and IT services and also include the remaining purchase commitments for our use of certain cloud services with third-party providers. Total non-cancellable purchase commitments as of March 31, 2025 are as follows:Year Ended March 31,2026202720282029 and beyondTotalPurchase commitments$51,853 $13,640 $41,996 $5 $107,494 In June 2022, we entered into an amended agreement with a third-party provider, in the ordinary course of business, for the use of certain cloud services through June 2027. Under the amended agreement, we committed to a purchase of $200,000 throughout the term of the agreement. As of March 31, 2025, we had $35,541 of remaining obligations under the purchase agreement.Royalty ExpensesWe have certain software royalty commitments associated with the shipment and licensing of certain products. Royalty expense is generally based on a fixed cost per unit shipped or a fixed fee for unlimited units shipped over a designated period. Royalty expense, included in cost of subscription and perpetual license revenues, was $10,602, $9,717 and $9,339 for the fiscal years ended March 31, 2025, 2024 and 2023, respectively.Warranties and IndemnificationsWe typically offer a 90-day limited product warranty for our software. To date, costs related to this product warranty have not been significant.We provide certain provisions within our software licensing agreements to indemnify our customers from any claim, suit or proceeding arising from alleged or actual intellectual property infringement. These provisions continue in perpetuity, along with our software licensing agreements. We have never incurred a liability relating to one of these indemnification provisions, and management believes that the likelihood of any future payout relating to these provisions is remote. Therefore, we have not recorded a liability during any period for these indemnification provisions.Lease Obligations