Company: CVLT
Filing Date: 2025-10-29
Form Type: 10-Q
Source: 0001169561-25-000089
Chunk: 44

Company: COMMVAULT SYSTEMS INC
Filing Date: 2025-10-29
Form: 10-Q
Item: Item 8
Chunk 44
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 further disaggregated to disclose the software portion of term-based licenses and SaaS. These reclassifications have no impact on the amount of total revenues or net income.Recently Adopted Accounting StandardsStandardDescriptionEffective DateEffect on the Consolidated Financial Statements (or Other Significant Matters)Accounting Standards Update ("ASU") No. 2025-05 (Topic 326): Financial Instrument - Credit LossesIn July 2025, the Financial Accounting Standards Board ("FASB") issued a new standard to simplify the estimation of credit losses. The standard provides a practical expedient for measuring expected credit losses on current accounts receivable and current contract assets arising under Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers.We early adopted this standard as of April 1, 2025 and elected to apply the related practical expedient.This standard did not have a significant impact on our results of operations, cash flows, financial condition, or disclosures.

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

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.This standard will result in additional annual tax disclosures and is not expected to have a significant impact on 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 and interim periods beginning April 1, 2028, with early adoption permitted.We are currently evaluating the impact of this standard on our consolidated financial statements and disclosures. Concentration of Credit RiskWe grant credit to customers in a wide variety of industries worldwide and generally do not require collateral. Credit losses relating to these customers have historically