Company: CVLT
Filing Date: 2025-05-05
Form Type: 10-K
Source: 0001169561-25-000034
Chunk: 86

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-05-05
Form: 10-K
Item: Item 8
Chunk 86
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In thousands, except per share data) 

Recently Adopted Accounting StandardsStandardDescriptionEffective DateEffect on the Consolidated Financial Statements (or Other Significant Matters)Accounting Standards Update ("ASU") No. 2023-07 (Topic 280): Segment ReportingIn November 2023, the Financial Accounting Standards Board ("FASB") issued a new standard to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. In addition, the amendments enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment, and contain other disclosure requirements.We adopted this standard as of April 1, 2024.This standard did not have a significant impact on our results of operations, cash flows, financial condition, or disclosures.Recently Issued Accounting Standards Not Yet AdoptedStandardDescriptionEffective DateEffect on the Consolidated Financial Statements (or Other Significant Matters)ASU No. 2023-09 (Topic 740): Income TaxesIn December 2023, the FASB issued a new standard to improve income tax disclosures. The standard requires greater disaggregated information about a reporting entity’s effective tax rate reconciliation as well as information on income taxes paid.This standard will be effective for us for our annual period beginning April 1, 2025, with early adoption permitted.We expect this standard to impact our disclosures with no material impacts to our results of operations, cash flows, or financial condition.ASU No. 2024-03 (Subtopic 220-40): Disaggregation of Income Statement ExpensesIn November 2024, the FASB issued a new standard to improve income statement expense disclosures. The standard requires greater disaggregated information on certain expense captions, as well as disclosures about selling expenses.This standard will be effective for us for our annual period beginning April 1, 2027, with early adoption permitted.We are currently evaluating the impact of this standard on our consolidated financial statements, including accounting policies, processes, and systems.

57

Commvault Systems, Inc. Notes to Consolidated Financial Statements — (Continued) (In thousands, except per share data) 

3.    Revenue

We generate revenues through subscription arrangements, perpetual software licenses, customer support contracts and other services.SubscriptionSubscription includes the revenues derived from term-based arrangements, including the software portion of term-based licenses and SaaS offerings. The software component of term-based licenses is typically recognized when the software is delivered or made