Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2019 | Jul. 19, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 1-11689 | |
Entity Registrant Name | Fair Isaac Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-1499887 | |
Entity Address, Address Line One | 181 Metro Drive, Suite 700 | |
Entity Address, Postal Zip Code | 95110-1346 | |
Entity Address, City or Town | San Jose | |
Entity Address, State or Province | CA | |
City Area Code | 408 | |
Local Phone Number | 535-1500 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | FICO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,896,535 | |
Entity Central Index Key | 0000814547 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 78,808 | $ 90,023 |
Accounts receivable, net | 318,044 | 266,742 |
Prepaid expenses and other current assets | 38,212 | 39,624 |
Total current assets | 435,064 | 396,389 |
Marketable Securities | 20,054 | |
Marketable securities | 18,059 | |
Other investments | 1,672 | 1,697 |
Property and equipment, net | 52,900 | 48,837 |
Goodwill | 797,527 | 800,890 |
Intangible assets, net | 9,919 | 14,536 |
Deferred income taxes | 13,483 | 13,805 |
Other assets | 43,179 | 36,254 |
Total assets | 1,373,798 | 1,330,467 |
Current liabilities: | ||
Accounts payable | 19,611 | 20,251 |
Accrued compensation and employee benefits | 88,543 | 84,292 |
Other accrued liabilities | 28,289 | 31,025 |
Deferred revenue | 103,270 | 103,335 |
Current maturities on debt | 218,000 | 235,000 |
Total current liabilities | 457,713 | 473,903 |
Long-term debt | 604,582 | 528,944 |
Other liabilities | 43,186 | 40,183 |
Total liabilities | 1,105,481 | 1,043,030 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding) | 0 | 0 |
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 28,931 and 29,015 shares outstanding at June 30, 2019 and September 30, 2018, respectively) | 289 | 290 |
Additional paid-in-capital | 1,206,739 | 1,211,051 |
Treasury stock, at cost (59,926 and 59,842 shares at June 30, 2019 and September 30, 2018, respectively) | (2,759,825) | (2,612,007) |
Retained earnings | 1,902,064 | 1,764,524 |
Accumulated other comprehensive loss | (80,950) | (76,421) |
Total stockholders’ equity | 268,317 | 287,437 |
Total liabilities and stockholders’ equity | $ 1,373,798 | $ 1,330,467 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2019 | Sep. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,857,000 | 88,857,000 |
Common stock, shares outstanding | 28,931,000 | 29,015,000 |
Treasury stock, shares | 59,926,000 | 59,842,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Revenues | $ 314,249 | $ 254,993 | $ 854,739 | $ 743,614 | |
Operating expenses: | |||||
Cost of revenues | [1] | 87,215 | 79,011 | 248,849 | 232,936 |
Research and development | 36,972 | 32,483 | 110,082 | 93,976 | |
Selling, general and administrative | [1] | 102,906 | 97,391 | 308,094 | 283,858 |
Amortization of intangible assets | [1] | 1,448 | 1,571 | 4,453 | 5,043 |
Total operating expenses | 228,541 | 210,456 | 671,478 | 615,813 | |
Operating income | 85,708 | 44,537 | 183,261 | 127,801 | |
Interest expense, net | (10,111) | (8,223) | (29,795) | (21,799) | |
Other income, net | 2,457 | 1,588 | 1,718 | 1,940 | |
Income before income taxes | 78,054 | 37,902 | 155,184 | 107,942 | |
Provision for income taxes | 13,902 | 8,181 | 17,644 | 14,173 | |
Net income | 64,152 | 29,721 | 137,540 | 93,769 | |
Other comprehensive loss: | |||||
Foreign currency translation adjustments | (4,189) | (18,796) | (4,529) | (6,600) | |
Comprehensive income | $ 59,963 | $ 10,925 | $ 133,011 | $ 87,169 | |
Earnings per share: | |||||
Basic (in dollars per share) | $ 2.21 | $ 1 | $ 4.74 | $ 3.13 | |
Diluted (in dollars per share) | $ 2.12 | $ 0.95 | $ 4.54 | $ 2.99 | |
Shares used in computing earnings per share: | |||||
Basic (in shares) | 28,967 | 29,708 | 29,000 | 29,924 | |
Diluted (in shares) | 30,292 | 31,161 | 30,295 | 31,341 | |
Transactional and Maintenance | |||||
Revenues | $ 226,040 | $ 192,143 | $ 632,012 | $ 555,337 | |
Technology Service | |||||
Revenues | 44,594 | 42,836 | 135,957 | 132,695 | |
License | |||||
Revenues | $ 43,615 | $ 20,014 | $ 86,770 | $ 55,582 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Sep. 30, 2017 | 30,243 | |||||
Beginning Balance at Sep. 30, 2017 | $ 466,183 | $ 302 | $ 1,195,431 | $ (2,301,097) | $ 1,638,042 | $ (66,495) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 54,631 | 54,631 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 433 | |||||
Issuance of treasury stock under employee stock plans | (40,380) | $ 4 | (57,740) | 17,356 | ||
Repurchases of common stock (in shares) | (1,359) | |||||
Repurchases of common stock | (231,479) | $ (13) | (231,466) | |||
Net income | 93,769 | 93,769 | ||||
Foreign currency translation adjustments | (6,600) | (6,600) | ||||
Ending Balance (in shares) at Jun. 30, 2018 | 29,317 | |||||
Ending Balance at Jun. 30, 2018 | 336,124 | $ 293 | 1,192,322 | (2,515,207) | 1,731,811 | (73,095) |
Beginning Balance (in shares) at Mar. 31, 2018 | 29,835 | |||||
Beginning Balance at Mar. 31, 2018 | 414,823 | $ 298 | 1,176,905 | (2,410,171) | 1,702,090 | (54,299) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 18,882 | 18,882 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 45 | |||||
Issuance of treasury stock under employee stock plans | (1,638) | (3,465) | 1,827 | |||
Repurchases of common stock (in shares) | (563) | |||||
Repurchases of common stock | (106,868) | $ (5) | (106,863) | |||
Net income | 29,721 | 29,721 | ||||
Foreign currency translation adjustments | (18,796) | (18,796) | ||||
Ending Balance (in shares) at Jun. 30, 2018 | 29,317 | |||||
Ending Balance at Jun. 30, 2018 | 336,124 | $ 293 | 1,192,322 | (2,515,207) | 1,731,811 | (73,095) |
Beginning Balance (in shares) at Sep. 30, 2018 | 29,015 | |||||
Beginning Balance at Sep. 30, 2018 | 287,437 | $ 290 | 1,211,051 | (2,612,007) | 1,764,524 | (76,421) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 61,931 | 61,931 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 696 | |||||
Issuance of treasury stock under employee stock plans | (35,136) | $ 7 | (66,243) | 31,100 | ||
Repurchases of common stock (in shares) | (780) | |||||
Repurchases of common stock | (178,926) | $ (8) | (178,918) | |||
Net income | 137,540 | 137,540 | ||||
Foreign currency translation adjustments | (4,529) | (4,529) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 28,931 | |||||
Ending Balance at Jun. 30, 2019 | 268,317 | $ 289 | 1,206,739 | (2,759,825) | 1,902,064 | (80,950) |
Beginning Balance (in shares) at Mar. 31, 2019 | 29,056 | |||||
Beginning Balance at Mar. 31, 2019 | 247,478 | $ 291 | 1,190,341 | (2,704,305) | 1,837,912 | (76,761) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 19,595 | 19,595 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 80 | |||||
Issuance of treasury stock under employee stock plans | 484 | $ 1 | (3,197) | 3,680 | ||
Repurchases of common stock (in shares) | (205) | |||||
Repurchases of common stock | (59,203) | $ (3) | (59,200) | |||
Net income | 64,152 | 64,152 | ||||
Foreign currency translation adjustments | (4,189) | (4,189) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 28,931 | |||||
Ending Balance at Jun. 30, 2019 | $ 268,317 | $ 289 | $ 1,206,739 | $ (2,759,825) | $ 1,902,064 | $ (80,950) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 137,540 | $ 93,769 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,734 | 22,329 |
Share-based compensation | 61,931 | 54,631 |
Deferred income taxes | 247 | (3,643) |
Net (gain) loss on marketable securities | 635 | (635) |
Provision for doubtful accounts, net | 509 | 541 |
Net loss on sales of property and equipment | 22 | 28 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (53,288) | 2,922 |
Prepaid expenses and other assets | (5,369) | (3,587) |
Accounts payable | 631 | 2,623 |
Accrued compensation and employee benefits | 4,217 | (1,977) |
Other liabilities | (6,164) | (21) |
Deferred revenue | 291 | (3,891) |
Net cash provided by operating activities | 164,936 | 163,089 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (18,170) | (24,220) |
Proceeds from sales of marketable securities | 3,228 | 3,005 |
Purchases of marketable securities | (5,858) | (5,509) |
Net cash used in investing activities | (20,800) | (26,724) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 167,000 | 371,000 |
Payments on revolving line of credit | (109,000) | (480,000) |
Proceeds from issuance of senior notes | 0 | 400,000 |
Payments on senior notes | 0 | (131,000) |
Payments on debt issuance costs | 0 | (7,869) |
Proceeds from issuance of treasury stock under employee stock plans | 16,073 | 2,492 |
Taxes paid related to net share settlement of equity awards | (51,208) | (42,872) |
Repurchases of common stock | (178,926) | (229,540) |
Net cash used in financing activities | (156,061) | (117,789) |
Effect of exchange rate changes on cash | 710 | (4,265) |
Increase (decrease) in cash and cash equivalents | (11,215) | 14,311 |
Cash and cash equivalents, beginning of period | 90,023 | 105,618 |
Cash and cash equivalents, end of period | 78,808 | 119,929 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 12,058 | 9,975 |
Cash paid for interest | 33,401 | 20,501 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | 690 | 5,282 |
Unsettled repurchases of common stock | 0 | 7,601 |
Capital lease obligations incurred | $ 6,416 | $ 0 |
Nature of Business
Nature of Business | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. In this Quarterly Report on Form 10-Q, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.” Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. Effective October 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”) using the full retrospective method. In connection with this adoption, the results and related disclosures for the comparative fiscal 2018 periods presented in this Form 10-Q were adjusted to be presented as if ASU 2014‑09 had been in effect during such fiscal 2018 periods. See “New Accounting Pronouncements” below and Note 8. All amounts and disclosures set forth in this Form 10-Q reflect these changes. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectability of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. See Note 8 for further discussion on revenues. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from the contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (“full retrospective method”), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (“modified retrospective method”). We adopted ASU 2014-09 in the first quarter of our fiscal 2019 using the full retrospective method which required us to adjust each prior reporting period presented. This adoption primarily affected timing of revenue recognition of license revenue on term licenses and transactional revenue on guaranteed minimum fees related to our on-premises software products. Under the new standard, we recognize revenue when control of the license is transferred to the customer, rather than at the date payments become due and payable when there are extended payment terms, or ratably over the term of the contract as required under the previous standard. In addition, revenue attributable to a software license renewal is recognized at the beginning of the applicable renewal period rather than at the signing of the renewal agreement as required under the previous standard. Additionally, under the new standard, when we enter into noncancellable contracts that provide unconditional rights to payment from our customers for services we have not yet completed or services we will provide in the near future, we present receivables — our unconditional rights to payments — and deferred revenues on a gross basis, rather than on a net basis. Finally, under the new standard we capitalize and amortize contract acquisition costs such as commissions paid for software-as-a-service (“SaaS”) cloud services contracts in excess of one year. Following the adoption of ASU 2014-09, the revenue recognition for our other sales arrangements remained materially consistent with our historical practice. Upon adoption of ASU 2014-09, we applied the standard’s practical expedients that permit the omission of prior-period information about our performance obligations. Adoption of the standard impacted our previously reported results as follows: Condensed Consolidated Balance Sheets September 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Accounts receivable, net $ 208,865 $ 57,877 $ 266,742 Deferred income taxes 20,117 (6,312 ) 13,805 Other assets 12,431 23,823 36,254 Other accrued liabilities 30,457 568 31,025 Deferred revenue 52,215 51,120 103,335 Stockholders’ equity 263,737 23,700 287,437 Condensed Consolidated Statements of Income and Comprehensive Income Quarter Ended June 30, 2018 Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted (In thousands, except per share amounts) Revenues $ 259,505 $ (4,512 ) $ 254,993 $ 752,684 $ (9,070 ) $ 743,614 Cost of revenues 78,390 621 79,011 231,268 1,668 232,936 Selling, general and administrative 98,685 (1,294 ) 97,391 286,038 (2,180 ) 283,858 Provision for income taxes 9,380 (1,199 ) 8,181 24,565 (10,392 ) 14,173 Net income 32,361 (2,640 ) 29,721 91,935 1,834 93,769 Comprehensive income 13,565 (2,640 ) 10,925 85,335 1,834 87,169 Basic earnings per share 1.09 (0.09 ) 1.00 3.07 0.06 3.13 Diluted earnings per share 1.04 (0.09 ) 0.95 2.93 0.06 2.99 Condensed Consolidated Statement of Cash Flows Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Cash flows from operating activities: Net income $ 91,935 $ 1,834 $ 93,769 Deferred income taxes 6,749 (10,392 ) (3,643 ) Changes in operating assets and liabilities (12,489 ) 8,558 (3,931 ) Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of Topic 326 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, “Topic 842”). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of Topic 842 on our consolidated financial statements. We expect that most of our operating leases will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets, which will increase our total assets and total liabilities upon adoption. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. • Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities. We do not have any liabilities that are valued using inputs identified under a Level 1 hierarchy as of June 30, 2019 and September 30, 2018 . • Level 2 - uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We do not have any assets that are valued using inputs identified under a Level 2 hierarchy as of June 30, 2019 and September 30, 2018 . We measure the fair value of the Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. • Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of June 30, 2019 and September 30, 2018 . The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2019 and September 30, 2018 : June 30, 2019 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2019 (In thousands) Assets: Cash equivalents (1) $ 25,944 $ 25,944 Marketable securities (2) 20,054 20,054 Total $ 45,998 $ 45,998 September 30, 2018 Active Markets for Fair Value as of September 30, 2018 (In thousands) Assets: Cash equivalents (1) $ 18,413 $ 18,413 Marketable securities (2) 18,059 18,059 Total $ 36,472 $ 36,472 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . Not included in these tables are cash deposits of $52.9 million and $71.6 million at June 30, 2019 and September 30, 2018 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . We have not changed our valuation techniques in measuring the fair value of any financial assets and liabilities during the period. For the fair value of our derivative instruments and senior notes, see Note 3 and Note 7, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their respective functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar. Foreign-currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income, net. The forward contracts are not designated as hedges and are marked to market through other income, net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months . The following tables summarize our outstanding foreign currency forward contracts, by currency, at June 30, 2019 and September 30, 2018 : June 30, 2019 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 9,800 $ 11,149 $ — Buy foreign currency: British pound (GBP) GBP 8,743 $ 11,100 $ — Singapore dollar (SGD) SGD 6,630 $ 4,900 $ — September 30, 2018 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 9,000 $ 10,372 $ — Buy foreign currency: British pound (GBP) GBP 8,598 $ 11,200 $ — Singapore dollar (SGD) SGD 9,580 $ 7,000 $ — The foreign currency forward contracts were entered into on June 30, 2019 and September 30, 2018 , respectively; therefore, their fair value was $0 on each of these dates. Losses on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (In thousands) Losses on foreign currency forward contracts $ 928 $ 870 $ 612 $ 251 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Amortization expense associated with our intangible assets are reflected as a separate operating expense caption — amortization of intangible assets — and are excluded from cost of revenues and selling, general and administrative expenses within the accompanying condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (In thousands) Completed technology $ 452 $ 628 $ 1,440 $ 1,949 Other intangible assets 996 943 3,013 3,094 Total $ 1,448 $ 1,571 $ 4,453 $ 5,043 Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2019 was as follows (in thousands): Year Ending September 30, 2019 (excluding the nine months ended June 30, 2019) $ 1,456 2020 3,607 2021 2,391 2022 2,248 2023 217 $ 9,919 The following table summarizes changes to goodwill during the nine months ended June 30, 2019 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2018 $ 585,161 $ 146,648 $ 69,081 $ 800,890 Addition from acquisitions 980 — — 980 Foreign currency translation adjustment (3,968 ) — (375 ) (4,343 ) Balance at June 30, 2019 $ 582,173 $ 146,648 $ 68,706 $ 797,527 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at June 30, 2019 and September 30, 2018 : June 30, September 30, (In thousands) Property and equipment $ 177,193 $ 156,154 Less: accumulated depreciation and amortization (124,293 ) (107,317 ) $ 52,900 $ 48,837 |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit We have a $400 million unsecured revolving line of credit with a syndicate of banks that expires on May 8, 2023 with an option to increase it by another $100 million . Proceeds from the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions and the repurchase of our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate, (b) the Federal Funds rate plus 0.500% and (c) the one-month LIBOR rate plus 1.000% , plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.875% and for LIBOR borrowings ranges from 1.000% to 1.875% , and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including maintaining a maximum consolidated leverage ratio of 3.25 , subject to a step up to 3.75 following certain permitted acquisitions; and a minimum fixed charge ratio of 2.50 through the maturity of our 2010 Senior Notes in July 2020, upon which maintaining a minimum interest coverage ratio of 3.00 . The credit agreement also contains other covenants typical of unsecured facilities. As of June 30, 2019 , we had $315.0 million in borrowings outstanding at a weighted average interest rate of 3.781% , of which $125.0 million was classified as a long-term liability and recorded in long-term debt within the accompanying condensed consolidated balance sheets. We were in compliance with all financial covenants under this credit facility as of June 30, 2019 . |
Senior Notes
Senior Notes | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The outstanding 2010 Senior Notes’ weighted average interest rate is 5.6% and the weighted average maturity is 9.8 years . The 2010 Senior Notes require interest payments semi-annually and contain certain restrictive covenants, including the maintenance of a maximum consolidated net debt to consolidated EBITDA ratio of 3.00 and a minimum fixed charge coverage ratio of 2.50 . We were in compliance with all financial covenants under the 2010 Senior Notes as of June 30, 2019 . On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”, and with the 2010 Senior Notes, the “Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026 . The purchase agreements for the 2010 Senior Notes and the indenture for the 2018 Senior Notes contain certain covenants typical of unsecured obligations. The following table presents the carrying amounts and fair values for the Senior Notes at June 30, 2019 and September 30, 2018 : June 30, 2019 September 30, 2018 Carrying Fair Value Carrying Fair Value (In thousands) The 2010 Senior Notes 113,000 114,374 113,000 114,413 The 2018 Senior Notes 400,000 418,000 400,000 404,000 Total $ 513,000 $ 532,374 $ 513,000 $ 518,413 (*) Amounts exclusive of net debt issuance cost of $5.4 million and $6.1 million at June 30, 2019 and September 30, 2018 , respectively. We measure the fair value of the Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. |
Revenue from Contracts with Cus
Revenue from Contracts with Customers | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Revenue from Contracts with Customers Contracts with Customers Our revenue is primarily derived from term-based or perpetual licensing of software and scoring products and solutions, and associated maintenance; SaaS subscription services; scoring and credit monitoring services for consumers; and professional services. For contracts with customers that contain various combinations of products and services, we evaluate whether the products or services are distinct — distinct products or services will be accounted for as separate performance obligations, while non-distinct products or services are combined with others to form a single performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation on a relative standalone selling price (“SSP”) basis. Revenue is recognized when control of the promised goods or services is transferred to our customers. License revenue is derived from contracts in which we grant our direct customers or distributors the right to deploy or resell our software and scoring products and solutions on-premises. Our software offerings often include a perpetual or term-based license and post-contract support or maintenance, both of which generally represent distinct performance obligations and are accounted for separately. The transaction price is either in the form of a fixed consideration with separate stated prices for license and maintenance, or a sales or usage-based royalty — sometimes subject to a guaranteed minimum — for the license and maintenance bundle. When the amount is in the form of a fixed consideration, including the guaranteed minimum in sales or usage-based royalty, license revenue from distinct on-premises license is recognized at the point in time when the software or scoring solution is made available to the customer or distributor. Any royalties not subject to the guaranteed minimum or earned in excess of the minimum amount are recognized as transactional revenue when the subsequent sales or usage occurs. Revenue allocated to maintenance is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits. In addition to sales or usage-based royalty on our software and scoring products, transactional revenue is also derived from SaaS contracts in which we provide customers with access to and standard support for our software application either in the FICO ® Analytic Cloud or Amazon Web Services (“AWS”), our primary cloud infrastructure provider, on a subscription basis. The transaction price typically includes a fixed consideration in the form of a guaranteed minimum that allows up to a certain level of usage and a variable consideration in the form of usage or transaction-based fees in excess of the minimum threshold; or usage or transaction-based variable amount not subject to a minimum threshold. We determined the nature of our SaaS arrangements is to provide continuous access to our hosted application in the cloud, i.e., a stand-ready obligation that comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). We estimate the total variable consideration at contract inception — subject to any constraints that may apply — and update the estimates as new information becomes available and recognize the amount ratably over the SaaS service period, unless we determine it is appropriate to allocate the variable amount to each distinct service period and recognize revenue as each distinct service period is performed. We also derive transactional revenue from credit scoring and monitoring services that provide consumers access to their credit reports and enable them to monitor their credit. These are provided as either a one-time or ongoing subscription service renewed monthly or annually, all with a fixed consideration. We determined the nature of the subscription service is a stand-ready obligation to generate credit reports, provide credit monitoring and other services for our customers, which comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). Revenue from one-time or monthly subscription services is recognized during the period when service is performed. Revenue from annual subscription services is recognized ratably over the subscription period. Professional services include software or SaaS implementation, consulting, model development, training services and premium cloud support. They are sold either standalone, or together with other products or services and generally represent distinct performance obligations. The transaction price can be a fixed amount or on a time and materials basis. Revenue on fixed-price services is recognized using an input method based on labor hours expended which we believe provides a faithful depiction of the transfer of services. Revenue on services provided on a time and materials basis is recognized applying the “right-to-invoice” practical expedient as the amount to which we have a right to invoice the customer corresponds directly with the value of our performance to the customer. In addition, we sell premium cloud support on a subscription basis for a fixed amount, and revenue is recognized ratably over the contract term. Disaggregation of Revenue Information about disaggregated revenue by product deployment methods was as follows: Reportable Segments Quarter Ended June 30, 2019 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) On-Premises $ 102,673 $ — $ 27,138 $ 129,811 $ 83,904 $ — $ 22,196 $ 106,100 SaaS 62,964 — 6,328 69,292 54,754 — 3,310 58,064 Scores — 115,146 — 115,146 — 90,829 — 90,829 Total $ 165,637 $ 115,146 $ 33,466 $ 314,249 $ 138,658 $ 90,829 $ 25,506 $ 254,993 Reportable Segments Nine Months Ended June 30, 2019 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) On-Premises $ 273,579 $ — $ 76,472 $ 350,051 $ 256,557 $ — $ 63,294 $ 319,851 SaaS 181,532 — 17,924 199,456 168,771 — 8,629 177,400 Scores — 305,232 — 305,232 — 246,363 — 246,363 Total $ 455,111 $ 305,232 $ 94,396 $ 854,739 $ 425,328 $ 246,363 $ 71,923 $ 743,614 Information about disaggregated revenue by primary geographical markets was as follows: Reportable Segments Quarter Ended June 30, 2019 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) North America $ 88,210 $ 110,728 $ 14,930 $ 213,868 $ 80,598 $ 89,261 $ 13,055 $ 182,914 Latin America 7,088 768 5,448 13,304 5,364 399 1,108 6,871 Europe, Middle East and Africa 54,171 2,191 8,680 65,042 34,374 691 5,144 40,209 Asia Pacific 16,168 1,459 4,408 22,035 18,322 478 6,199 24,999 Total $ 165,637 $ 115,146 $ 33,466 $ 314,249 $ 138,658 $ 90,829 $ 25,506 $ 254,993 Reportable Segments Nine Months Ended June 30, 2019 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) North America $ 256,385 $ 293,292 $ 45,354 $ 595,031 $ 250,700 $ 240,703 $ 38,898 $ 530,301 Latin America 32,011 2,650 14,000 48,661 17,531 1,484 3,579 22,594 Europe, Middle East and Africa 119,971 5,197 21,977 147,145 107,686 2,446 16,385 126,517 Asia Pacific 46,744 4,093 13,065 63,902 49,411 1,730 13,061 64,202 Total $ 455,111 $ 305,232 $ 94,396 $ 854,739 $ 425,328 $ 246,363 $ 71,923 $ 743,614 Contract Balances We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. The following table provides information about receivables and deferred revenue from contracts with customers. June 30, 2019 September 30, 2018 (As Adjusted) (In thousands) Receivables, which are included in “Accounts receivable, net” $ 321,483 $ 270,181 Deferred revenue* $ 107,871 $ 108,118 * Included in both deferred revenue and other liabilities on our condensed balance sheets at June 30, 2019 and September 30, 2018 . Impairment loss recognized on receivables from contracts with customers during the quarters and nine months ended June 30, 2019 and 2018 was immaterial. Contract assets balance at June 30, 2019 and September 30, 2018 was immaterial. Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances during the nine months ended June 30, 2019 are as follows: Nine Months Ended (In thousands) Deferred revenues, beginning balance $ 108,118 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (87,600 ) Increases due to billings, excluding amounts recognized as revenue during the period 87,353 Deferred revenues, ending balance $ 107,871 Revenue recognized in the quarter and nine months ended June 30, 2019 from performance obligations satisfied in previous periods was immaterial. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront, and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period. Performance Obligations The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Remaining of Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter Total (In thousands) Applications $ 14,070 $ 51,346 $ 31,684 $ 12,167 $ 11,353 $ 120,620 Decision Management Software 3,117 10,780 8,013 4,944 3,596 30,450 Total $ 17,187 $ 62,126 $ 39,697 $ 17,111 $ 14,949 $ 151,070 We apply the optional exemption that permits the omission of information about remaining performance obligations that have original expected durations of one year or less. We also applied the transition practical expedient that permits the omission of prior-period information about our performance obligations. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct and should be accounted for separately may require significant judgment. Specifically, when implementation service is included in the original software or SaaS offerings, judgment is required to determine if the implementation service significantly modifies or customizes the software or SaaS service in such a way that the risks of providing it and the customization service are inseparable. In rare instances, contracts may include significant modification or customization of the software of SaaS service and will result in the combination of software or SaaS service and implementation service as one performance obligation. We determine the SSPs using data from our historical standalone sales, or, in instances where such information is not available (such as when we do not sell the product or service separately), we consider factors such as the stated contract prices, our overall pricing practices and objectives, go-to-market strategy, size and type of the transactions, and effects of the geographic area on pricing, among others. When the selling price of a product or service is highly variable, we may use the residual approach to determine the SSP of that product or service. Significant judgment may be required to determine the SSP for each distinct performance obligation when it involves the consideration of many market conditions and entity-specific factors discussed above. Significant judgement may be required to determine the timing of satisfaction of a performance obligation in certain professional services contracts with a fixed consideration, in which we measure progress using an input method based on labor hours expended. In order to estimate the total hours of the project, we make assumptions about labor utilization, efficiency of processes, the customer’s specification and IT environment, among others. For certain complex projects, due to the risks and uncertainties inherent with the estimation process and factors relating to the assumptions, actual progress may differ due to the change in estimated total hours. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues are subject to revisions as the contract progresses to completion. Capitalized Commission Costs We capitalize incremental commission fees paid as a result of obtaining customer contracts. Capitalized commission costs, which are recorded in other assets within the accompanying condensed consolidated balance sheets, were $31.7 million and $27.1 million at June 30, 2019 and September 30, 2018 , respectively. Capitalized commission costs are amortized on a straight-line basis over ten years — determined using a portfolio approach — based on the transfer of goods or services to which the assets relate, taking into consideration both the initial and future contracts as we do not typically pay a commission on a contract renewal. The amortization costs are included in selling, general, and administrative expenses of our condensed consolidated statements of income and comprehensive income. The amount of amortization was $1.3 million and $1.1 million during the quarters ended June 30, 2019 and 2018 , respectively, and $3.7 million and $3.3 million during the nine months ended June 30, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized. We apply a practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are recorded within selling, general, and administrative expenses. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate was 17.8% and 21.6% during the quarters ended June 30, 2019 and 2018 as adjusted, respectively, and 11.4% and 13.1% during the nine months ended June 30, 2019 and 2018 as adjusted, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The effective tax rate for both the nine months ended June 30, 2019 and 2018 was impacted by recording of excess tax benefits relating to stock awards that vested in December of both years. In addition, the tax rate for the nine months ended June 30, 2018 was affected by recording the impact of the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Tax Act makes broad and complex changes to the U.S. tax code that affect our fiscal year ended September 30, 2018 and fiscal year ended September 30, 2019, including, but not limited to: (1) reducing the U.S. federal corporate tax rate; (2) requiring a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries; (3) repealing the performance-based compensation exception for certain employees; (4) instituting the concept of Global Intangible Low-Taxed Income (“GILTI”); and (5) instituting the concept of Foreign Derived Intangible Income. The Tax Act subjects U.S. corporations to tax on their GILTI. Due to the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of GAAP. Under GAAP, we can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into our measurement of deferred taxes. We have not yet adopted an accounting policy in regard to GILTI. The total unrecognized tax benefit for uncertain tax positions is estimated to be $5.5 million and $6.1 million at June 30, 2019 and September 30, 2018 , respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.3 million related to unrecognized tax benefits as of June 30, 2019 and September 30, 2018 . |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and nine-month periods ended June 30, 2019 and 2018 : Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 As Adjusted As Adjusted (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 64,152 $ 29,721 $ 137,540 $ 93,769 Denominator - share: Basic weighted-average shares 28,967 29,708 29,000 29,924 Effect of dilutive securities 1,325 1,453 1,295 1,417 Diluted weighted-average shares 30,292 31,161 30,295 31,341 Earnings per share: Basic $ 2.21 $ 1.00 $ 4.74 $ 3.13 Diluted $ 2.12 $ 0.95 $ 4.54 $ 2.99 We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were no options excluded for each of the quarters ended June 30, 2019 and 2018. There were approximately 5,000 and 7,000 options excluded for the nine months ended June 30, 2019 and 2018, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are organized into the following three operating segments, each of which is a reportable segment, to align with internal management of our worldwide business operations based on product offerings. • Applications . This segment includes pre-configured decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud detection, collections and insurance claims management — as well as associated professional services. These applications are available to our customers as on-premises software, and many are available as hosted, SaaS applications through the FICO ® Analytic Cloud. • Scores. This segment includes our business-to-business credit scoring solutions, our myFICO ® solutions for consumers (enabling consumer-level access to and understanding of their credit scores) and associated professional services. Our credit scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our credit scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly. • Decision Management Software. This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our new FICO ® Decision Management Suite, as well as associated professional services. These tools are available to our customers as on-premises software or through the FICO ® Analytic Cloud. Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets, nor capital expenditures where depreciation amounts are allocated to the segments from their internal cost centers as described above. The following tables summarize segment information for the quarters and nine-month periods ended June 30, 2019 and 2018 : Quarter Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 100,385 $ 112,949 $ 12,706 $ — $ 226,040 Professional services 33,989 392 10,213 — 44,594 License 31,263 1,805 10,547 — 43,615 Total segment revenues 165,637 115,146 33,466 — 314,249 Segment operating expense (113,400 ) (15,850 ) (42,229 ) (36,019 ) (207,498 ) Segment operating income (loss) $ 52,237 $ 99,296 $ (8,763 ) $ (36,019 ) 106,751 Unallocated share-based compensation expense (19,595 ) Unallocated amortization expense (1,448 ) Operating income 85,708 Unallocated interest expense, net (10,111 ) Unallocated other income, net 2,457 Income before income taxes $ 78,054 Depreciation expense $ 4,800 $ 130 $ 1,027 $ 222 $ 6,179 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 91,102 $ 89,876 $ 11,165 $ — $ 192,143 Professional services 33,783 559 8,494 — 42,836 License 13,773 394 5,847 — 20,014 Total segment revenues 138,658 90,829 25,506 — 254,993 Segment operating expense (106,741 ) (16,369 ) (34,971 ) (31,922 ) (190,003 ) Segment operating income (loss) $ 31,917 $ 74,460 $ (9,465 ) $ (31,922 ) 64,990 Unallocated share-based compensation expense (18,882 ) Unallocated amortization expense (1,571 ) Operating income 44,537 Unallocated interest expense, net (8,223 ) Unallocated other income, net 1,588 Income before income taxes $ 37,902 Depreciation expense $ 3,682 $ 130 $ 1,321 $ 215 $ 5,348 Nine Months Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 294,624 $ 300,133 $ 37,255 $ — $ 632,012 Professional services 101,432 1,994 32,531 — 135,957 License 59,055 3,105 24,610 — 86,770 Total segment revenues 455,111 305,232 94,396 — 854,739 Segment operating expense (332,641 ) (45,499 ) (122,175 ) (104,779 ) (605,094 ) Segment operating income (loss) $ 122,470 $ 259,733 $ (27,779 ) $ (104,779 ) 249,645 Unallocated share-based compensation expense (61,931 ) Unallocated amortization expense (4,453 ) Operating income 183,261 Unallocated interest expense, net (29,795 ) Unallocated other income, net 1,718 Income before income taxes $ 155,184 Depreciation expense $ 14,259 $ 387 $ 2,988 $ 684 $ 18,318 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 277,743 $ 243,323 $ 34,271 $ — $ 555,337 Professional services 108,288 1,613 22,794 — 132,695 License 39,297 1,427 14,858 — 55,582 Total segment revenues 425,328 246,363 71,923 — 743,614 Segment operating expense (316,759 ) (48,670 ) (98,534 ) (92,176 ) (556,139 ) Segment operating income (loss) $ 108,569 $ 197,693 $ (26,611 ) $ (92,176 ) 187,475 Unallocated share-based compensation expense (54,631 ) Unallocated amortization expense (5,043 ) Operating income 127,801 Unallocated interest expense, net (21,799 ) Unallocated other income, net 1,940 Income before income taxes $ 107,942 Depreciation expense $ 11,459 $ 432 $ 4,024 $ 737 $ 16,652 |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have material exposure on an aggregate basis. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Jun. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | 13. Subsequent Events In July 2019, our Board of Directors approved a new stock repurchase program following the completion of a similar program that was approved in July 2018. The new program is open-ended and authorizes repurchases of shares of our common stock up to an aggregate cost of $250.0 million in the open market or in negotiated transactions. |
Nature of Business (Policies)
Nature of Business (Policies) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Policies [Abstract] | |
Fair Isaac Corporation | Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. In this Quarterly Report on Form 10-Q, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.” |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018 . The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. Effective October 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”) using the full retrospective method. In connection with this adoption, the results and related disclosures for the comparative fiscal 2018 periods presented in this Form 10-Q were adjusted to be presented as if ASU 2014‑09 had been in effect during such fiscal 2018 periods. See “New Accounting Pronouncements” below and Note 8. All amounts and disclosures set forth in this Form 10-Q reflect these changes. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectability of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services. See Note 8 for further discussion on revenues. Contract Balances We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. We apply the optional exemption that permits the omission of information about remaining performance obligations that have original expected durations of one year or less. We also applied the transition practical expedient that permits the omission of prior-period information about our performance obligations. Significant Judgments Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct and should be accounted for separately may require significant judgment. Specifically, when implementation service is included in the original software or SaaS offerings, judgment is required to determine if the implementation service significantly modifies or customizes the software or SaaS service in such a way that the risks of providing it and the customization service are inseparable. In rare instances, contracts may include significant modification or customization of the software of SaaS service and will result in the combination of software or SaaS service and implementation service as one performance obligation. We determine the SSPs using data from our historical standalone sales, or, in instances where such information is not available (such as when we do not sell the product or service separately), we consider factors such as the stated contract prices, our overall pricing practices and objectives, go-to-market strategy, size and type of the transactions, and effects of the geographic area on pricing, among others. When the selling price of a product or service is highly variable, we may use the residual approach to determine the SSP of that product or service. Significant judgment may be required to determine the SSP for each distinct performance obligation when it involves the consideration of many market conditions and entity-specific factors discussed above. Significant judgement may be required to determine the timing of satisfaction of a performance obligation in certain professional services contracts with a fixed consideration, in which we measure progress using an input method based on labor hours expended. In order to estimate the total hours of the project, we make assumptions about labor utilization, efficiency of processes, the customer’s specification and IT environment, among others. For certain complex projects, due to the risks and uncertainties inherent with the estimation process and factors relating to the assumptions, actual progress may differ due to the change in estimated total hours. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues are subject to revisions as the contract progresses to completion. Capitalized Commission Costs We capitalize incremental commission fees paid as a result of obtaining customer contracts. Capitalized commission costs, which are recorded in other assets within the accompanying condensed consolidated balance sheets, were $31.7 million and $27.1 million at June 30, 2019 and September 30, 2018 , respectively. Capitalized commission costs are amortized on a straight-line basis over ten years — determined using a portfolio approach — based on the transfer of goods or services to which the assets relate, taking into consideration both the initial and future contracts as we do not typically pay a commission on a contract renewal. The amortization costs are included in selling, general, and administrative expenses of our condensed consolidated statements of income and comprehensive income. The amount of amortization was $1.3 million and $1.1 million during the quarters ended June 30, 2019 and 2018 , respectively, and $3.7 million and $3.3 million during the nine months ended June 30, 2019 and 2018 , respectively. There was no impairment loss in relation to the costs capitalized. We apply a practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are recorded within selling, general, and administrative expenses. Contracts with Customers Our revenue is primarily derived from term-based or perpetual licensing of software and scoring products and solutions, and associated maintenance; SaaS subscription services; scoring and credit monitoring services for consumers; and professional services. For contracts with customers that contain various combinations of products and services, we evaluate whether the products or services are distinct — distinct products or services will be accounted for as separate performance obligations, while non-distinct products or services are combined with others to form a single performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation on a relative standalone selling price (“SSP”) basis. Revenue is recognized when control of the promised goods or services is transferred to our customers. License revenue is derived from contracts in which we grant our direct customers or distributors the right to deploy or resell our software and scoring products and solutions on-premises. Our software offerings often include a perpetual or term-based license and post-contract support or maintenance, both of which generally represent distinct performance obligations and are accounted for separately. The transaction price is either in the form of a fixed consideration with separate stated prices for license and maintenance, or a sales or usage-based royalty — sometimes subject to a guaranteed minimum — for the license and maintenance bundle. When the amount is in the form of a fixed consideration, including the guaranteed minimum in sales or usage-based royalty, license revenue from distinct on-premises license is recognized at the point in time when the software or scoring solution is made available to the customer or distributor. Any royalties not subject to the guaranteed minimum or earned in excess of the minimum amount are recognized as transactional revenue when the subsequent sales or usage occurs. Revenue allocated to maintenance is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits. In addition to sales or usage-based royalty on our software and scoring products, transactional revenue is also derived from SaaS contracts in which we provide customers with access to and standard support for our software application either in the FICO ® Analytic Cloud or Amazon Web Services (“AWS”), our primary cloud infrastructure provider, on a subscription basis. The transaction price typically includes a fixed consideration in the form of a guaranteed minimum that allows up to a certain level of usage and a variable consideration in the form of usage or transaction-based fees in excess of the minimum threshold; or usage or transaction-based variable amount not subject to a minimum threshold. We determined the nature of our SaaS arrangements is to provide continuous access to our hosted application in the cloud, i.e., a stand-ready obligation that comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). We estimate the total variable consideration at contract inception — subject to any constraints that may apply — and update the estimates as new information becomes available and recognize the amount ratably over the SaaS service period, unless we determine it is appropriate to allocate the variable amount to each distinct service period and recognize revenue as each distinct service period is performed. We also derive transactional revenue from credit scoring and monitoring services that provide consumers access to their credit reports and enable them to monitor their credit. These are provided as either a one-time or ongoing subscription service renewed monthly or annually, all with a fixed consideration. We determined the nature of the subscription service is a stand-ready obligation to generate credit reports, provide credit monitoring and other services for our customers, which comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). Revenue from one-time or monthly subscription services is recognized during the period when service is performed. Revenue from annual subscription services is recognized ratably over the subscription period. Professional services include software or SaaS implementation, consulting, model development, training services and premium cloud support. They are sold either standalone, or together with other products or services and generally represent distinct performance obligations. The transaction price can be a fixed amount or on a time and materials basis. Revenue on fixed-price services is recognized using an input method based on labor hours expended which we believe provides a faithful depiction of the transfer of services. Revenue on services provided on a time and materials basis is recognized applying the “right-to-invoice” practical expedient as the amount to which we have a right to invoice the customer corresponds directly with the value of our performance to the customer. In addition, we sell premium cloud support on a subscription basis for a fixed amount, and revenue is recognized ratably over the contract term. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from the contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (“full retrospective method”), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (“modified retrospective method”). We adopted ASU 2014-09 in the first quarter of our fiscal 2019 using the full retrospective method which required us to adjust each prior reporting period presented. This adoption primarily affected timing of revenue recognition of license revenue on term licenses and transactional revenue on guaranteed minimum fees related to our on-premises software products. Under the new standard, we recognize revenue when control of the license is transferred to the customer, rather than at the date payments become due and payable when there are extended payment terms, or ratably over the term of the contract as required under the previous standard. In addition, revenue attributable to a software license renewal is recognized at the beginning of the applicable renewal period rather than at the signing of the renewal agreement as required under the previous standard. Additionally, under the new standard, when we enter into noncancellable contracts that provide unconditional rights to payment from our customers for services we have not yet completed or services we will provide in the near future, we present receivables — our unconditional rights to payments — and deferred revenues on a gross basis, rather than on a net basis. Finally, under the new standard we capitalize and amortize contract acquisition costs such as commissions paid for software-as-a-service (“SaaS”) cloud services contracts in excess of one year. Following the adoption of ASU 2014-09, the revenue recognition for our other sales arrangements remained materially consistent with our historical practice. Upon adoption of ASU 2014-09, we applied the standard’s practical expedients that permit the omission of prior-period information about our performance obligations. Adoption of the standard impacted our previously reported results as follows: Condensed Consolidated Balance Sheets September 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Accounts receivable, net $ 208,865 $ 57,877 $ 266,742 Deferred income taxes 20,117 (6,312 ) 13,805 Other assets 12,431 23,823 36,254 Other accrued liabilities 30,457 568 31,025 Deferred revenue 52,215 51,120 103,335 Stockholders’ equity 263,737 23,700 287,437 Condensed Consolidated Statements of Income and Comprehensive Income Quarter Ended June 30, 2018 Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted (In thousands, except per share amounts) Revenues $ 259,505 $ (4,512 ) $ 254,993 $ 752,684 $ (9,070 ) $ 743,614 Cost of revenues 78,390 621 79,011 231,268 1,668 232,936 Selling, general and administrative 98,685 (1,294 ) 97,391 286,038 (2,180 ) 283,858 Provision for income taxes 9,380 (1,199 ) 8,181 24,565 (10,392 ) 14,173 Net income 32,361 (2,640 ) 29,721 91,935 1,834 93,769 Comprehensive income 13,565 (2,640 ) 10,925 85,335 1,834 87,169 Basic earnings per share 1.09 (0.09 ) 1.00 3.07 0.06 3.13 Diluted earnings per share 1.04 (0.09 ) 0.95 2.93 0.06 2.99 Condensed Consolidated Statement of Cash Flows Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Cash flows from operating activities: Net income $ 91,935 $ 1,834 $ 93,769 Deferred income taxes 6,749 (10,392 ) (3,643 ) Changes in operating assets and liabilities (12,489 ) 8,558 (3,931 ) Recent Accounting Pronouncements Not Yet Adopted In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04 and ASU 2019-05 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of Topic 326 on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, “Topic 842”). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of Topic 842 on our consolidated financial statements. We expect that most of our operating leases will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets, which will increase our total assets and total liabilities upon adoption. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements. |
Nature of Business Recently Ado
Nature of Business Recently Adopted ASU 2014-09 Revenue from Contracts with Customers (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Condensed Consolidated Statement of Cash Flows Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Cash flows from operating activities: Net income $ 91,935 $ 1,834 $ 93,769 Deferred income taxes 6,749 (10,392 ) (3,643 ) Changes in operating assets and liabilities (12,489 ) 8,558 (3,931 ) Condensed Consolidated Statements of Income and Comprehensive Income Quarter Ended June 30, 2018 Nine Months Ended June 30, 2018 As Previously Reported Adjustment As Adjusted As Previously Reported Adjustment As Adjusted (In thousands, except per share amounts) Revenues $ 259,505 $ (4,512 ) $ 254,993 $ 752,684 $ (9,070 ) $ 743,614 Cost of revenues 78,390 621 79,011 231,268 1,668 232,936 Selling, general and administrative 98,685 (1,294 ) 97,391 286,038 (2,180 ) 283,858 Provision for income taxes 9,380 (1,199 ) 8,181 24,565 (10,392 ) 14,173 Net income 32,361 (2,640 ) 29,721 91,935 1,834 93,769 Comprehensive income 13,565 (2,640 ) 10,925 85,335 1,834 87,169 Basic earnings per share 1.09 (0.09 ) 1.00 3.07 0.06 3.13 Diluted earnings per share 1.04 (0.09 ) 0.95 2.93 0.06 2.99 Adoption of the standard impacted our previously reported results as follows: Condensed Consolidated Balance Sheets September 30, 2018 As Previously Reported Adjustment As Adjusted (In thousands) Accounts receivable, net $ 208,865 $ 57,877 $ 266,742 Deferred income taxes 20,117 (6,312 ) 13,805 Other assets 12,431 23,823 36,254 Other accrued liabilities 30,457 568 31,025 Deferred revenue 52,215 51,120 103,335 Stockholders’ equity 263,737 23,700 287,437 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured on a Recurring Basis | The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2019 and September 30, 2018 : June 30, 2019 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2019 (In thousands) Assets: Cash equivalents (1) $ 25,944 $ 25,944 Marketable securities (2) 20,054 20,054 Total $ 45,998 $ 45,998 September 30, 2018 Active Markets for Fair Value as of September 30, 2018 (In thousands) Assets: Cash equivalents (1) $ 18,413 $ 18,413 Marketable securities (2) 18,059 18,059 Total $ 36,472 $ 36,472 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . Not included in these tables are cash deposits of $52.9 million and $71.6 million at June 30, 2019 and September 30, 2018 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Foreign Currency Forward Contracts | The following tables summarize our outstanding foreign currency forward contracts, by currency, at June 30, 2019 and September 30, 2018 : June 30, 2019 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 9,800 $ 11,149 $ — Buy foreign currency: British pound (GBP) GBP 8,743 $ 11,100 $ — Singapore dollar (SGD) SGD 6,630 $ 4,900 $ — September 30, 2018 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 9,000 $ 10,372 $ — Buy foreign currency: British pound (GBP) GBP 8,598 $ 11,200 $ — Singapore dollar (SGD) SGD 9,580 $ 7,000 $ — |
Losses on Derivative Financial Instruments | Losses on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (In thousands) Losses on foreign currency forward contracts $ 928 $ 870 $ 612 $ 251 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization Expense | Amortization expense associated with our intangible assets are reflected as a separate operating expense caption — amortization of intangible assets — and are excluded from cost of revenues and selling, general and administrative expenses within the accompanying condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 (In thousands) Completed technology $ 452 $ 628 $ 1,440 $ 1,949 Other intangible assets 996 943 3,013 3,094 Total $ 1,448 $ 1,571 $ 4,453 $ 5,043 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2019 was as follows (in thousands): Year Ending September 30, 2019 (excluding the nine months ended June 30, 2019) $ 1,456 2020 3,607 2021 2,391 2022 2,248 2023 217 $ 9,919 |
Schedule of Goodwill | The following table summarizes changes to goodwill during the nine months ended June 30, 2019 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2018 $ 585,161 $ 146,648 $ 69,081 $ 800,890 Addition from acquisitions 980 — — 980 Foreign currency translation adjustment (3,968 ) — (375 ) (4,343 ) Balance at June 30, 2019 $ 582,173 $ 146,648 $ 68,706 $ 797,527 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at June 30, 2019 and September 30, 2018 : June 30, September 30, (In thousands) Property and equipment $ 177,193 $ 156,154 Less: accumulated depreciation and amortization (124,293 ) (107,317 ) $ 52,900 $ 48,837 |
Senior Notes (Tables)
Senior Notes (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Senior Notes | The following table presents the carrying amounts and fair values for the Senior Notes at June 30, 2019 and September 30, 2018 : June 30, 2019 September 30, 2018 Carrying Fair Value Carrying Fair Value (In thousands) The 2010 Senior Notes 113,000 114,374 113,000 114,413 The 2018 Senior Notes 400,000 418,000 400,000 404,000 Total $ 513,000 $ 532,374 $ 513,000 $ 518,413 (*) Amounts exclusive of net debt issuance cost of $5.4 million and $6.1 million at June 30, 2019 and September 30, 2018 , respectively. |
Revenue from Contracts with C_2
Revenue from Contracts with Customers Revenue from Contract with Customer (Table) | 9 Months Ended |
Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Information about disaggregated revenue by product deployment methods was as follows: Reportable Segments Quarter Ended June 30, 2019 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) On-Premises $ 102,673 $ — $ 27,138 $ 129,811 $ 83,904 $ — $ 22,196 $ 106,100 SaaS 62,964 — 6,328 69,292 54,754 — 3,310 58,064 Scores — 115,146 — 115,146 — 90,829 — 90,829 Total $ 165,637 $ 115,146 $ 33,466 $ 314,249 $ 138,658 $ 90,829 $ 25,506 $ 254,993 Reportable Segments Nine Months Ended June 30, 2019 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) On-Premises $ 273,579 $ — $ 76,472 $ 350,051 $ 256,557 $ — $ 63,294 $ 319,851 SaaS 181,532 — 17,924 199,456 168,771 — 8,629 177,400 Scores — 305,232 — 305,232 — 246,363 — 246,363 Total $ 455,111 $ 305,232 $ 94,396 $ 854,739 $ 425,328 $ 246,363 $ 71,923 $ 743,614 Information about disaggregated revenue by primary geographical markets was as follows: Reportable Segments Quarter Ended June 30, 2019 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) North America $ 88,210 $ 110,728 $ 14,930 $ 213,868 $ 80,598 $ 89,261 $ 13,055 $ 182,914 Latin America 7,088 768 5,448 13,304 5,364 399 1,108 6,871 Europe, Middle East and Africa 54,171 2,191 8,680 65,042 34,374 691 5,144 40,209 Asia Pacific 16,168 1,459 4,408 22,035 18,322 478 6,199 24,999 Total $ 165,637 $ 115,146 $ 33,466 $ 314,249 $ 138,658 $ 90,829 $ 25,506 $ 254,993 Reportable Segments Nine Months Ended June 30, 2019 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Total Applications Scores Decision Management Software Total (In thousands) North America $ 256,385 $ 293,292 $ 45,354 $ 595,031 $ 250,700 $ 240,703 $ 38,898 $ 530,301 Latin America 32,011 2,650 14,000 48,661 17,531 1,484 3,579 22,594 Europe, Middle East and Africa 119,971 5,197 21,977 147,145 107,686 2,446 16,385 126,517 Asia Pacific 46,744 4,093 13,065 63,902 49,411 1,730 13,061 64,202 Total $ 455,111 $ 305,232 $ 94,396 $ 854,739 $ 425,328 $ 246,363 $ 71,923 $ 743,614 |
Contract with Customer, Asset and Liability | The following table provides information about receivables and deferred revenue from contracts with customers. June 30, 2019 September 30, 2018 (As Adjusted) (In thousands) Receivables, which are included in “Accounts receivable, net” $ 321,483 $ 270,181 Deferred revenue* $ 107,871 $ 108,118 * Included in both deferred revenue and other liabilities on our condensed balance sheets at June 30, 2019 and September 30, 2018 . nine months ended June 30, 2019 are as follows: Nine Months Ended (In thousands) Deferred revenues, beginning balance $ 108,118 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (87,600 ) Increases due to billings, excluding amounts recognized as revenue during the period 87,353 Deferred revenues, ending balance $ 107,871 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period: Remaining of Fiscal 2019 Fiscal 2020 Fiscal 2021 Fiscal 2022 Thereafter Total (In thousands) Applications $ 14,070 $ 51,346 $ 31,684 $ 12,167 $ 11,353 $ 120,620 Decision Management Software 3,117 10,780 8,013 4,944 3,596 30,450 Total $ 17,187 $ 62,126 $ 39,697 $ 17,111 $ 14,949 $ 151,070 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and nine-month periods ended June 30, 2019 and 2018 : Quarter Ended June 30, Nine Months Ended June 30, 2019 2018 2019 2018 As Adjusted As Adjusted (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 64,152 $ 29,721 $ 137,540 $ 93,769 Denominator - share: Basic weighted-average shares 28,967 29,708 29,000 29,924 Effect of dilutive securities 1,325 1,453 1,295 1,417 Diluted weighted-average shares 30,292 31,161 30,295 31,341 Earnings per share: Basic $ 2.21 $ 1.00 $ 4.74 $ 3.13 Diluted $ 2.12 $ 0.95 $ 4.54 $ 2.99 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables summarize segment information for the quarters and nine-month periods ended June 30, 2019 and 2018 : Quarter Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 100,385 $ 112,949 $ 12,706 $ — $ 226,040 Professional services 33,989 392 10,213 — 44,594 License 31,263 1,805 10,547 — 43,615 Total segment revenues 165,637 115,146 33,466 — 314,249 Segment operating expense (113,400 ) (15,850 ) (42,229 ) (36,019 ) (207,498 ) Segment operating income (loss) $ 52,237 $ 99,296 $ (8,763 ) $ (36,019 ) 106,751 Unallocated share-based compensation expense (19,595 ) Unallocated amortization expense (1,448 ) Operating income 85,708 Unallocated interest expense, net (10,111 ) Unallocated other income, net 2,457 Income before income taxes $ 78,054 Depreciation expense $ 4,800 $ 130 $ 1,027 $ 222 $ 6,179 Quarter Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 91,102 $ 89,876 $ 11,165 $ — $ 192,143 Professional services 33,783 559 8,494 — 42,836 License 13,773 394 5,847 — 20,014 Total segment revenues 138,658 90,829 25,506 — 254,993 Segment operating expense (106,741 ) (16,369 ) (34,971 ) (31,922 ) (190,003 ) Segment operating income (loss) $ 31,917 $ 74,460 $ (9,465 ) $ (31,922 ) 64,990 Unallocated share-based compensation expense (18,882 ) Unallocated amortization expense (1,571 ) Operating income 44,537 Unallocated interest expense, net (8,223 ) Unallocated other income, net 1,588 Income before income taxes $ 37,902 Depreciation expense $ 3,682 $ 130 $ 1,321 $ 215 $ 5,348 Nine Months Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 294,624 $ 300,133 $ 37,255 $ — $ 632,012 Professional services 101,432 1,994 32,531 — 135,957 License 59,055 3,105 24,610 — 86,770 Total segment revenues 455,111 305,232 94,396 — 854,739 Segment operating expense (332,641 ) (45,499 ) (122,175 ) (104,779 ) (605,094 ) Segment operating income (loss) $ 122,470 $ 259,733 $ (27,779 ) $ (104,779 ) 249,645 Unallocated share-based compensation expense (61,931 ) Unallocated amortization expense (4,453 ) Operating income 183,261 Unallocated interest expense, net (29,795 ) Unallocated other income, net 1,718 Income before income taxes $ 155,184 Depreciation expense $ 14,259 $ 387 $ 2,988 $ 684 $ 18,318 Nine Months Ended June 30, 2018 (As Adjusted) Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 277,743 $ 243,323 $ 34,271 $ — $ 555,337 Professional services 108,288 1,613 22,794 — 132,695 License 39,297 1,427 14,858 — 55,582 Total segment revenues 425,328 246,363 71,923 — 743,614 Segment operating expense (316,759 ) (48,670 ) (98,534 ) (92,176 ) (556,139 ) Segment operating income (loss) $ 108,569 $ 197,693 $ (26,611 ) $ (92,176 ) 187,475 Unallocated share-based compensation expense (54,631 ) Unallocated amortization expense (5,043 ) Operating income 127,801 Unallocated interest expense, net (21,799 ) Unallocated other income, net 1,940 Income before income taxes $ 107,942 Depreciation expense $ 11,459 $ 432 $ 4,024 $ 737 $ 16,652 |
Nature of Business Prior Year R
Nature of Business Prior Year Restated (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Mar. 31, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2017 | ||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Accounts receivable, net | $ 318,044 | $ 318,044 | $ 266,742 | ||||||
Deferred income taxes | 13,483 | 13,483 | 13,805 | ||||||
Other assets | 43,179 | 43,179 | 36,254 | ||||||
Other accrued liabilities | 28,289 | 28,289 | 31,025 | ||||||
Deferred revenue | 103,270 | 103,270 | 103,335 | ||||||
Stockholders’ equity | 268,317 | $ 336,124 | 268,317 | $ 336,124 | $ 247,478 | 287,437 | $ 414,823 | $ 466,183 | |
Revenues | 314,249 | 254,993 | 854,739 | 743,614 | |||||
Cost of revenues | [1] | 87,215 | 79,011 | 248,849 | 232,936 | ||||
Selling, general and administrative | [1] | 102,906 | 97,391 | 308,094 | 283,858 | ||||
Provision for income taxes | 13,902 | 8,181 | 17,644 | 14,173 | |||||
Net income | 64,152 | 29,721 | 137,540 | 93,769 | |||||
Comprehensive income | $ 59,963 | $ 10,925 | $ 133,011 | $ 87,169 | |||||
Basic (in dollars per share) | $ 2.21 | $ 1 | $ 4.74 | $ 3.13 | |||||
Diluted (in dollars per share) | $ 2.12 | $ 0.95 | $ 4.54 | $ 2.99 | |||||
Deferred income taxes | $ 247 | $ (3,643) | |||||||
Changes in operating assets and liabilities | (3,931) | ||||||||
Previously Reported | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Accounts receivable, net | 208,865 | ||||||||
Deferred income taxes | 20,117 | ||||||||
Other assets | 12,431 | ||||||||
Other accrued liabilities | 30,457 | ||||||||
Deferred revenue | 52,215 | ||||||||
Stockholders’ equity | 263,737 | ||||||||
Revenues | $ 259,505 | 752,684 | |||||||
Cost of revenues | 78,390 | 231,268 | |||||||
Selling, general and administrative | 98,685 | 286,038 | |||||||
Provision for income taxes | 9,380 | 24,565 | |||||||
Net income | 32,361 | 91,935 | |||||||
Comprehensive income | $ 13,565 | $ 85,335 | |||||||
Basic (in dollars per share) | $ 1.09 | $ 3.07 | |||||||
Diluted (in dollars per share) | $ 1.04 | $ 2.93 | |||||||
Deferred income taxes | $ 6,749 | ||||||||
Changes in operating assets and liabilities | (12,489) | ||||||||
Accounting Standards Update 2014-09 | Restatement Adjustment | |||||||||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||||||||
Accounts receivable, net | 57,877 | ||||||||
Deferred income taxes | (6,312) | ||||||||
Other assets | 23,823 | ||||||||
Other accrued liabilities | 568 | ||||||||
Deferred revenue | 51,120 | ||||||||
Stockholders’ equity | $ 23,700 | ||||||||
Revenues | $ (4,512) | (9,070) | |||||||
Cost of revenues | 621 | 1,668 | |||||||
Selling, general and administrative | (1,294) | (2,180) | |||||||
Provision for income taxes | (1,199) | (10,392) | |||||||
Net income | (2,640) | 1,834 | |||||||
Comprehensive income | $ (2,640) | $ 1,834 | |||||||
Basic (in dollars per share) | $ (0.09) | $ 0.06 | |||||||
Diluted (in dollars per share) | $ (0.09) | $ 0.06 | |||||||
Deferred income taxes | $ (10,392) | ||||||||
Changes in operating assets and liabilities | $ 8,558 | ||||||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 | |
Assets: | |||
Marketable securities | $ 18,059 | ||
Cash deposits | $ 52,900 | 71,600 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | [1] | 25,944 | 18,413 |
Marketable securities | [2] | 20,054 | 18,059 |
Total | 45,998 | 36,472 | |
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | |||
Assets: | |||
Cash equivalents | [1] | 25,944 | 18,413 |
Marketable securities | [2] | 20,054 | 18,059 |
Total | $ 45,998 | $ 36,472 | |
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . Not included in these tables are cash deposits of $52.9 million and $71.6 million at June 30, 2019 and September 30, 2018 , respectively. | ||
[2] | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2019 and September 30, 2018 . |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jun. 30, 2019 | Sep. 30, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Short-term forward contracts, average maturities at inception (less than) | 3 months | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Forward foreign currency contracts fair value | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2019GBP (£) | Jun. 30, 2019SGD ($) | Jun. 30, 2019EUR (€) | Jun. 30, 2019USD ($) | Sep. 30, 2018GBP (£) | Sep. 30, 2018SGD ($) | Sep. 30, 2018EUR (€) | Sep. 30, 2018USD ($) |
Foreign Exchange Contracts To Sell European Euro for US Dollar | ||||||||
Derivative [Line Items] | ||||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | $ 0 | $ 0 | ||||||
Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Contract amount of forward foreign currency contracts | € 9,800 | 11,149 | € 9,000 | 10,372 | ||||
Foreign Exchange Contracts To Purchase British Pounds With US Dollars | ||||||||
Derivative [Line Items] | ||||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | 0 | 0 | ||||||
Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Contract amount of forward foreign currency contracts | £ 8,743 | 11,100 | £ 8,598 | 11,200 | ||||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | ||||||||
Derivative [Line Items] | ||||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | 0 | 0 | ||||||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Contract amount of forward foreign currency contracts | $ 6,630 | $ 4,900 | $ 9,580 | $ 7,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Losses on foreign currency forward contracts | $ 928 | $ 870 | $ 612 | $ 251 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense of intangible assets | [1] | $ 1,448 | $ 1,571 | $ 4,453 | $ 5,043 |
Completed Technology | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense of intangible assets | 452 | 628 | 1,440 | 1,949 | |
Other Intangible Assets | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense of intangible assets | $ 996 | $ 943 | $ 3,013 | $ 3,094 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Estimated future intangible asset amortization expense | ||
2019 (excluding the nine months ended June 30, 2019) | $ 1,456 | |
2020 | 3,607 | |
2021 | 2,391 | |
2022 | 2,248 | |
2023 | 217 | |
Total | $ 9,919 | $ 14,536 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2019USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 30, 2018 | $ 800,890 |
Addition from acquisitions | 980 |
Foreign currency translation adjustment | (4,343) |
Balance at June 30, 2019 | 797,527 |
Applications | |
Goodwill [Roll Forward] | |
Balance at September 30, 2018 | 585,161 |
Addition from acquisitions | 980 |
Foreign currency translation adjustment | (3,968) |
Balance at June 30, 2019 | 582,173 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2018 | 146,648 |
Addition from acquisitions | 0 |
Foreign currency translation adjustment | 0 |
Balance at June 30, 2019 | 146,648 |
Decision Management Software | |
Goodwill [Roll Forward] | |
Balance at September 30, 2018 | 69,081 |
Addition from acquisitions | 0 |
Foreign currency translation adjustment | (375) |
Balance at June 30, 2019 | $ 68,706 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2019 | Sep. 30, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property and equipment | $ 177,193 | $ 156,154 |
Less: accumulated depreciation and amortization | (124,293) | (107,317) |
Total | $ 52,900 | $ 48,837 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Detail) | May 08, 2018USD ($) | Jun. 30, 2019USD ($) |
Line of Credit Facility [Line Items] | ||
Unsecured revolving line of credit | $ 400,000,000 | |
Revolving credit facility, expiration date | May 8, 2023 | |
Line of credit facility-option to increase borrowing capacity | $ 100,000,000 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio | 3.25 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio step up | 3.75 | |
Fixed charge coverage ratio minimum | 2.50 | |
Interest coverage ratio | 3 | |
Borrowings outstanding | $ 315,000,000 | |
Interest rate of borrowings outstanding | 3.781% | |
Long-term Debt | ||
Line of Credit Facility [Line Items] | ||
Borrowings outstanding | $ 125,000,000 | |
Federal Fund Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.50% | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.875% | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.00% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.875% |
Senior Notes (Detail)
Senior Notes (Detail) | May 08, 2018USD ($) | Jul. 14, 2010USD ($)Contract | Jun. 30, 2019USD ($) | Sep. 30, 2018USD ($) |
Debt Instrument [Line Items] | ||||
Senior Notes, weighted average interest rate | 3.781% | |||
Carrying value of Senior Notes | $ 513,000,000 | $ 513,000,000 | ||
Fair value of Senior Notes | 532,374,000 | 518,413,000 | ||
Debt issuance costs | 5,400,000 | 6,100,000 | ||
July 2010 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $ 245,000,000 | |||
Number of series of Senior Notes issued | Contract | 4 | |||
Senior Notes, weighted average interest rate | 5.60% | |||
Senior Notes, weighted average maturity (in years) | 9 years 9 months 18 days | |||
Net debt to EBITDA ratio maximum | 3 | |||
Fixed charge coverage ratio minimum | 2.50 | |||
Carrying value of Senior Notes | 113,000,000 | 113,000,000 | ||
Fair value of Senior Notes | 114,374,000 | 114,413,000 | ||
July 2010 Senior Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 6 years | |||
July 2010 Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 10 years | |||
May 2018 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $ 400,000,000 | |||
Carrying value of Senior Notes | 400,000,000 | 400,000,000 | ||
Fair value of Senior Notes | $ 418,000,000 | $ 404,000,000 | ||
Debt instrument, maturity date | May 15, 2026 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% |
Revenue from Contracts with C_3
Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 314,249 | $ 254,993 | $ 854,739 | $ 743,614 |
Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 165,637 | 138,658 | 455,111 | 425,328 |
Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 115,146 | 90,829 | 305,232 | 246,363 |
Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,466 | 25,506 | 94,396 | 71,923 |
North America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 213,868 | 182,914 | 595,031 | 530,301 |
North America | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 88,210 | 80,598 | 256,385 | 250,700 |
North America | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 110,728 | 89,261 | 293,292 | 240,703 |
North America | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,930 | 13,055 | 45,354 | 38,898 |
Latin America | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 13,304 | 6,871 | 48,661 | 22,594 |
Latin America | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,088 | 5,364 | 32,011 | 17,531 |
Latin America | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 768 | 399 | 2,650 | 1,484 |
Latin America | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,448 | 1,108 | 14,000 | 3,579 |
Europe, Middle East and Africa | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 65,042 | 40,209 | 147,145 | 126,517 |
Europe, Middle East and Africa | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 54,171 | 34,374 | 119,971 | 107,686 |
Europe, Middle East and Africa | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,191 | 691 | 5,197 | 2,446 |
Europe, Middle East and Africa | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,680 | 5,144 | 21,977 | 16,385 |
Asia Pacific | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,035 | 24,999 | 63,902 | 64,202 |
Asia Pacific | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,168 | 18,322 | 46,744 | 49,411 |
Asia Pacific | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,459 | 478 | 4,093 | 1,730 |
Asia Pacific | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,408 | 6,199 | 13,065 | 13,061 |
On-Premises [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 129,811 | 106,100 | 350,051 | 319,851 |
On-Premises [Member] | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 102,673 | 83,904 | 273,579 | 256,557 |
On-Premises [Member] | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
On-Premises [Member] | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 27,138 | 22,196 | 76,472 | 63,294 |
SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 69,292 | 58,064 | 199,456 | 177,400 |
SaaS Products [Member] | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 62,964 | 54,754 | 181,532 | 168,771 |
SaaS Products [Member] | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
SaaS Products [Member] | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,328 | 3,310 | 17,924 | 8,629 |
Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 115,146 | 90,829 | 305,232 | 246,363 |
Scores Products [Member] | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Scores Products [Member] | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 115,146 | 90,829 | 305,232 | 246,363 |
Scores Products [Member] | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contracts with C_4
Revenue from Contracts with Customers Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2018 | |
Contract with Customer, Asset and Liability [Abstract] | |||
Receivables, which are included in “Accounts receivable, net” | $ 321,483 | $ 270,181 | |
Deferred revenue | $ 108,118 | $ 107,871 | $ 108,118 |
Contract With Customer, Liability [Roll Forward] | |||
Deferred revenues, beginning balance | 108,118 | ||
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | (87,600) | ||
Increases due to billings, excluding amounts recognized as revenue during the period | 87,353 | ||
Deferred revenues, ending balance | $ 107,871 | ||
Minimum | |||
Disaggregation of Revenue [Line Items] | |||
Payment term | 30 days | ||
Maximum | |||
Disaggregation of Revenue [Line Items] | |||
Payment term | 60 days |
Revenue from Contracts with C_5
Revenue from Contracts with Customers Performance Obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 17,187 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 62,126 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 39,697 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 17,111 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 14,949 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 151,070 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 14,070 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 51,346 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 31,684 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 12,167 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 11,353 |
Applications | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 120,620 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-07-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3,117 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 3 months |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 10,780 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 8,013 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 4,944 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 1 year |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-10-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 3,596 |
Decision Management Software | Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: (nil) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 30,450 |
Revenue, remaining performance obligation, expected timing of satisfaction, period |
Revenue from Contracts with C_6
Revenue from Contracts with Customers Capitalized Commission Costs (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Capitalized Contract Cost [Abstract] | |||||
Capitalized Contract Cost, Net | $ 31,700,000 | $ 31,700,000 | $ 27,100,000 | ||
Capitalized Contract Cost, Amortization Period | 10 years | 10 years | |||
Capitalized Contract Cost, Amortization | $ 1,300,000 | $ 1,100,000 | $ 3,700,000 | $ 3,300,000 | |
Capitalized Contract Cost, Impairment Loss | $ 0 | $ 0 | $ 0 | $ 0 |
Income Taxes -Additional Inform
Income Taxes -Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Sep. 30, 2018 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 17.80% | 21.60% | 11.40% | 13.10% | |
Unrecognized tax benefits, uncertain tax positions | $ 5.5 | $ 5.5 | $ 6.1 | ||
Unrecognized tax benefits, accrued interest | $ 0.3 | $ 0.3 | $ 0.3 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Numerator for diluted and basic earnings per share: | ||||
Net income | $ 64,152 | $ 29,721 | $ 137,540 | $ 93,769 |
Denominator - share: | ||||
Basic weighted-average shares (in shares) | 28,967 | 29,708 | 29,000 | 29,924 |
Effect of dilutive securities (in shares) | 1,325 | 1,453 | 1,295 | 1,417 |
Diluted weighted-average shares (in shares) | 30,292 | 31,161 | 30,295 | 31,341 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.21 | $ 1 | $ 4.74 | $ 3.13 |
Diluted (in dollars per share) | $ 2.12 | $ 0.95 | $ 4.54 | $ 2.99 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share [Abstract] | ||||
Options to purchase shares of common stock excluded in the computation of diluted earnings per share because their inclusion would be antidilutive (in shares) | 0 | 0 | 5,000 | 7,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2019Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Segment revenues: | |||||
Revenues | $ 314,249 | $ 254,993 | $ 854,739 | $ 743,614 | |
Segment operating expense | (228,541) | (210,456) | (671,478) | (615,813) | |
Operating income | 85,708 | 44,537 | 183,261 | 127,801 | |
Unallocated share-based compensation expense | (19,595) | (18,882) | (61,931) | (54,631) | |
Unallocated amortization expense | [1] | (1,448) | (1,571) | (4,453) | (5,043) |
Unallocated interest expense | (10,111) | (8,223) | (29,795) | (21,799) | |
Unallocated other income, net | 2,457 | 1,588 | 1,718 | 1,940 | |
Income before income taxes | 78,054 | 37,902 | 155,184 | 107,942 | |
Depreciation expense | 6,179 | 5,348 | 18,318 | 16,652 | |
Operating Segments | |||||
Segment revenues: | |||||
Segment operating expense | (207,498) | (190,003) | (605,094) | (556,139) | |
Operating income | 106,751 | 64,990 | 249,645 | 187,475 | |
Unallocated Corporate Expenses | |||||
Segment revenues: | |||||
Segment operating expense | (36,019) | (31,922) | (104,779) | (92,176) | |
Operating income | (36,019) | (31,922) | (104,779) | (92,176) | |
Depreciation expense | 222 | 215 | 684 | 737 | |
Applications | |||||
Segment revenues: | |||||
Revenues | 165,637 | 138,658 | 455,111 | 425,328 | |
Applications | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 165,637 | 138,658 | 455,111 | 425,328 | |
Segment operating expense | (113,400) | (106,741) | (332,641) | (316,759) | |
Operating income | 52,237 | 31,917 | 122,470 | 108,569 | |
Depreciation expense | 4,800 | 3,682 | 14,259 | 11,459 | |
Scores | |||||
Segment revenues: | |||||
Revenues | 115,146 | 90,829 | 305,232 | 246,363 | |
Scores | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 115,146 | 90,829 | 305,232 | 246,363 | |
Segment operating expense | (15,850) | (16,369) | (45,499) | (48,670) | |
Operating income | 99,296 | 74,460 | 259,733 | 197,693 | |
Depreciation expense | 130 | 130 | 387 | 432 | |
Decision Management Software | |||||
Segment revenues: | |||||
Revenues | 33,466 | 25,506 | 94,396 | 71,923 | |
Decision Management Software | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 33,466 | 25,506 | 94,396 | 71,923 | |
Segment operating expense | (42,229) | (34,971) | (122,175) | (98,534) | |
Operating income | (8,763) | (9,465) | (27,779) | (26,611) | |
Depreciation expense | 1,027 | 1,321 | 2,988 | 4,024 | |
Transactional and Maintenance | |||||
Segment revenues: | |||||
Revenues | 226,040 | 192,143 | 632,012 | 555,337 | |
Transactional and Maintenance | Applications | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 100,385 | 91,102 | 294,624 | 277,743 | |
Transactional and Maintenance | Scores | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 112,949 | 89,876 | 300,133 | 243,323 | |
Transactional and Maintenance | Decision Management Software | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 12,706 | 11,165 | 37,255 | 34,271 | |
Technology Service | |||||
Segment revenues: | |||||
Revenues | 44,594 | 42,836 | 135,957 | 132,695 | |
Technology Service | Applications | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 33,989 | 33,783 | 101,432 | 108,288 | |
Technology Service | Scores | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 392 | 559 | 1,994 | 1,613 | |
Technology Service | Decision Management Software | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 10,213 | 8,494 | 32,531 | 22,794 | |
License | |||||
Segment revenues: | |||||
Revenues | 43,615 | 20,014 | 86,770 | 55,582 | |
License | Applications | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 31,263 | 13,773 | 59,055 | 39,297 | |
License | Scores | Operating Segments | |||||
Segment revenues: | |||||
Revenues | 1,805 | 394 | 3,105 | 1,427 | |
License | Decision Management Software | Operating Segments | |||||
Segment revenues: | |||||
Revenues | $ 10,547 | $ 5,847 | $ 24,610 | $ 14,858 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Jul. 31, 2019USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 250 |