Cover
Cover - shares | 6 Months Ended | |
Mar. 31, 2021 | Apr. 16, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, $0.01 par value per share | |
Trading Symbol | FICO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,776,867 | |
Entity Central Index Key | 0000814547 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 197,836 | $ 157,394 |
Accounts receivable, net | 264,804 | 334,180 |
Prepaid expenses and other current assets | 40,335 | 42,504 |
Assets held for sale | 48,843 | 0 |
Total current assets | 551,818 | 534,078 |
Marketable securities | 30,437 | 25,513 |
Other investments | 1,340 | 1,060 |
Property and equipment, net | 34,897 | 46,419 |
Operating lease right-of-use assets | 50,986 | 57,656 |
Goodwill | 789,123 | 812,364 |
Intangible assets, net | 7,437 | 9,236 |
Deferred income tax | 15,003 | 14,629 |
Other assets | 98,567 | 105,285 |
Total assets | 1,579,608 | 1,606,240 |
Current liabilities: | ||
Accounts payable | 19,767 | 23,033 |
Accrued compensation and employee benefits | 71,347 | 117,952 |
Other accrued liabilities | 60,062 | 63,367 |
Deferred revenue | 100,396 | 115,159 |
Current maturities on debt | 225,000 | 95,000 |
Liabilities related to assets held for sale | 23,989 | 0 |
Total current liabilities | 500,561 | 414,511 |
Long-term debt | 740,226 | 739,435 |
Operating lease liabilities | 59,100 | 73,207 |
Other liabilities | 56,418 | 48,005 |
Total liabilities | 1,356,305 | 1,275,158 |
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 28,829 and 29,096 shares outstanding at March 31, 2021 and September 30, 2020, respectively) | 288 | 291 |
Additional paid-in-capital | 1,181,692 | 1,218,583 |
Treasury stock, at cost (60,028 and 59,761 shares at March 31, 2021 and September 30, 2020, respectively) | (3,239,109) | (2,997,856) |
Retained earnings | 2,348,225 | 2,193,059 |
Accumulated other comprehensive loss | (67,793) | (82,995) |
Total stockholders’ equity | 223,303 | 331,082 |
Total liabilities and stockholders’ equity | $ 1,579,608 | $ 1,606,240 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2021 | Sep. 30, 2020 |
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 | 28,829,000 | 29,096,000 |
Treasury stock, shares | 60,028,000 | 59,761,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Revenues | $ 331,361,000 | $ 307,971,000 | $ 643,775,000 | $ 606,475,000 |
Operating expenses: | ||||
Cost of revenues | 88,333,000 | 88,139,000 | 177,861,000 | 178,897,000 |
Research and development | 43,612,000 | 39,439,000 | 84,263,000 | 78,382,000 |
Selling, general and administrative | 97,272,000 | 103,465,000 | 191,183,000 | 215,486,000 |
Amortization of intangible assets | 945,000 | 1,202,000 | 1,882,000 | 2,998,000 |
Restructuring and impairment charges | 0 | 0 | 0 | 3,104,000 |
Unallocated gain on sale of product line assets | 0 | 0 | (7,334,000) | 0 |
Total operating expenses | 230,162,000 | 232,245,000 | 447,855,000 | 478,867,000 |
Operating income | 101,199,000 | 75,726,000 | 195,920,000 | 127,608,000 |
Interest expense, net | (9,943,000) | (11,254,000) | (19,584,000) | (21,022,000) |
Other income (expense), net | 568,000 | (2,008,000) | 3,448,000 | (2,227,000) |
Income before income taxes | 91,824,000 | 62,464,000 | 179,784,000 | 104,359,000 |
Income tax provision (benefit) | 23,150,000 | 4,176,000 | 24,618,000 | (8,850,000) |
Net income | 68,674,000 | 58,288,000 | 155,166,000 | 113,209,000 |
Other comprehensive gain (loss): | ||||
Foreign currency translation adjustments | (1,846,000) | (19,056,000) | 15,202,000 | (4,964,000) |
Comprehensive income | $ 66,828,000 | $ 39,232,000 | $ 170,368,000 | $ 108,245,000 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.36 | $ 2 | $ 5.33 | $ 3.89 |
Diluted (in dollars per share) | $ 2.33 | $ 1.94 | $ 5.23 | $ 3.76 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 29,087 | 29,194 | 29,107 | 29,109 |
Diluted (in shares) | 29,531 | 29,985 | 29,660 | 30,076 |
Transactional and Maintenance | ||||
Revenues | $ 280,919,000 | $ 240,702,000 | $ 533,069,000 | $ 461,076,000 |
Technology Service | ||||
Revenues | 37,794,000 | 47,905,000 | 79,219,000 | 91,930,000 |
License | ||||
Revenues | $ 12,648,000 | $ 19,364,000 | $ 31,487,000 | $ 53,469,000 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Sep. 30, 2019 | 28,944 | |||||
Beginning Balance at Sep. 30, 2019 | $ 289,767 | $ 289 | $ 1,225,365 | $ (2,802,450) | $ 1,956,648 | $ (90,085) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 45,933 | 45,933 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 596 | |||||
Issuance of treasury stock under employee stock plans | (73,784) | $ 6 | (102,081) | 28,291 | ||
Repurchases of common stock (in shares) | (458) | |||||
Repurchases of common stock | (156,010) | $ (4) | (156,006) | |||
Net income | 113,209 | 113,209 | ||||
Foreign currency translation adjustments | (4,964) | (4,964) | ||||
Ending Balance (in shares) at Mar. 31, 2020 | 29,082 | |||||
Ending Balance at Mar. 31, 2020 | 214,151 | $ 291 | 1,169,217 | (2,930,165) | 2,069,857 | (95,049) |
Beginning Balance (in shares) at Dec. 31, 2019 | 29,186 | |||||
Beginning Balance at Dec. 31, 2019 | 240,961 | $ 292 | 1,148,190 | (2,843,097) | 2,011,569 | (75,993) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 22,788 | 22,788 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 186 | |||||
Issuance of treasury stock under employee stock plans | 7,171 | $ 2 | (1,761) | 8,930 | ||
Repurchases of common stock (in shares) | (290) | |||||
Repurchases of common stock | (96,001) | $ (3) | (95,998) | |||
Net income | 58,288 | 58,288 | ||||
Foreign currency translation adjustments | (19,056) | (19,056) | ||||
Ending Balance (in shares) at Mar. 31, 2020 | 29,082 | |||||
Ending Balance at Mar. 31, 2020 | 214,151 | $ 291 | 1,169,217 | (2,930,165) | 2,069,857 | (95,049) |
Beginning Balance (in shares) at Sep. 30, 2020 | 29,096 | |||||
Beginning Balance at Sep. 30, 2020 | 331,082 | $ 291 | 1,218,583 | (2,997,856) | 2,193,059 | (82,995) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 53,338 | 53,338 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 275 | |||||
Issuance of treasury stock under employee stock plans | (76,263) | $ 2 | (90,229) | 13,964 | ||
Repurchases of common stock (in shares) | (542) | |||||
Repurchases of common stock | (255,222) | $ (5) | (255,217) | |||
Net income | 155,166 | 155,166 | ||||
Foreign currency translation adjustments | 15,202 | 15,202 | ||||
Ending Balance (in shares) at Mar. 31, 2021 | 28,829 | |||||
Ending Balance at Mar. 31, 2021 | 223,303 | $ 288 | 1,181,692 | (3,239,109) | 2,348,225 | (67,793) |
Beginning Balance (in shares) at Dec. 31, 2020 | 29,236 | |||||
Beginning Balance at Dec. 31, 2020 | 324,121 | $ 292 | 1,145,893 | (3,035,668) | 2,279,551 | (65,947) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 28,206 | 28,206 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 34 | |||||
Issuance of treasury stock under employee stock plans | 9,359 | $ 0 | 7,593 | 1,766 | ||
Repurchases of common stock (in shares) | (441) | |||||
Repurchases of common stock | (205,211) | $ (4) | (205,207) | |||
Net income | 68,674 | 68,674 | ||||
Foreign currency translation adjustments | (1,846) | (1,846) | ||||
Ending Balance (in shares) at Mar. 31, 2021 | 28,829 | |||||
Ending Balance at Mar. 31, 2021 | $ 223,303 | $ 288 | $ 1,181,692 | $ (3,239,109) | $ 2,348,225 | $ (67,793) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 155,166 | $ 113,209 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 13,701 | 15,535 |
Share-based compensation | 53,338 | 45,933 |
Deferred income taxes | (287) | (1,213) |
Net (gain) loss on marketable securities | (2,669) | 2,526 |
Non-cash operating lease costs | 8,005 | 10,000 |
Provision for doubtful accounts, net | 266 | 2,459 |
Net loss on sales and abandonment of property and equipment | 96 | 59 |
Gain on sale of product line assets | (7,334) | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 64,304 | (13,823) |
Prepaid expenses and other assets | 4,572 | (19,656) |
Accounts payable | (3,695) | 1,833 |
Accrued compensation and employee benefits | (46,147) | (37,339) |
Other liabilities | (9,989) | (4,659) |
Deferred revenue | 2,143 | 6,995 |
Net cash provided by operating activities | 231,470 | 121,859 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,220) | (13,166) |
Proceeds from sales of marketable securities | 2,264 | 3,385 |
Purchases of marketable securities | (4,379) | (5,232) |
Proceeds from sale of product line assets | 8,291 | 0 |
(Purchase of) distribution from equity investment | (210) | 55 |
Net cash provided by (used in) investing activities | 1,746 | (14,958) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 251,000 | 156,000 |
Payments on revolving line of credit | (121,000) | (377,000) |
Proceeds from issuance of senior notes | 0 | 350,000 |
Payments on debt issuance costs | 0 | (6,840) |
Payments on finance leases | (176) | (712) |
Proceeds from issuance of treasury stock under employee stock plans | 10,390 | 23,216 |
Taxes paid related to net share settlement of equity awards | (86,653) | (97,000) |
Repurchases of common stock | (250,356) | (148,008) |
Net cash used in financing activities | (196,795) | (100,344) |
Effect of exchange rate changes on cash | 4,021 | (4,017) |
Increase in cash and cash equivalents | 40,442 | 2,540 |
Cash and cash equivalents, beginning of period | 157,394 | 106,426 |
Cash and cash equivalents, end of period | 197,836 | 108,966 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds of $288 and $1,538 during the six months ended March 31, 2021, and 2020, respectively | 18,131 | 4,475 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 18,488 | 16,181 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | 388 | 1,920 |
Unsettled repurchases of common stock | 4,866 | 8,002 |
Finance lease obligations incurred | $ 0 | $ 5,148 |
CONDENSED CONSOLIDATED STATEM_4
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Cash Flows [Abstract] | ||
Proceeds from Income Tax Refunds | $ 288 | $ 1,538 |
Nature of Business
Nature of Business | 6 Months Ended |
Mar. 31, 2021 | |
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 analytic solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations and public agencies. 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, 2020. 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. 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 collectibility of accounts receivable; the appropriate levels of various accruals; variable considerations included in the transaction price for our customer contracts; 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. As the impact of the COVID-19 pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the condensed consolidated financial statements as new events occur and additional information becomes known. To the extent our actual results differ materially from those estimates and assumptions, our future financial statements could be affected. For more information, see Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Intangibles—Goodwill and Other (Topic 350): Internal-Use Software (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted ASU 2018-15 in the first quarter of our fiscal 2021 and the adoption did not have a significant impact on our condensed consolidated financial statements. 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, ASU 2019-05 and ASU 2019-11 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. We adopted Topic 326 in the first quarter of our fiscal 2021 and the adoption did not have a significant impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted We do not expect that any recently issued accounting pronouncements will have a significant effect on our financial statements. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Mar. 31, 2021 | |
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 marketable securities. We did not have any liabilities that are valued using inputs identified under a Level 1 hierarchy as of March 31, 2021 and September 30, 2020. • 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 did not have any assets that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2021 and September 30, 2020. We measure the fair value of our 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 did not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2021 and September 30, 2020. The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2021 and September 30, 2020: March 31, 2021 Active Markets for Fair Value as of March 31, 2021 (In thousands) Assets: Cash equivalents (1) $ 194 $ 194 Marketable securities (2) 30,437 30,437 Total $ 30,631 $ 30,631 September 30, 2020 Active Markets for Fair Value as of September 30, 2020 (In thousands) Assets: Cash equivalents (1) $ 35,275 $ 35,275 Marketable securities (2) 25,513 25,513 Total $ 60,788 $ 60,788 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2021 and September 30, 2020. Not included in these tables are cash deposits of $197.6 million and $122.1 million at March 31, 2021 and September 30, 2020, 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 March 31, 2021 and September 30, 2020. See Note 7 for the fair value of our senior notes. There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and six-month periods ended March 31, 2021 and 2020. |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Mar. 31, 2021 | |
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 (expense), net. The forward contracts are not designated as hedges and are marked to market through other income (expense), 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 March 31, 2021 and September 30, 2020: March 31, 2021 Contract Amount Fair Value Foreign USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 19,200 $ 22,643 $ — Buy foreign currency: British pound (GBP) GBP 14,780 $ 20,400 $ — Singapore dollar (SGD) SGD 5,790 $ 4,300 $ — September 30, 2020 Contract Amount Fair Value Foreign USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 15,000 $ 17,656 $ — Buy foreign currency: British pound (GBP) GBP 16,555 $ 21,300 $ — Singapore dollar (SGD) SGD 7,815 $ 5,700 $ — The foreign currency forward contracts were entered into on March 31, 2021 and September 30, 2020, respectively; therefore, their fair value was $0 on each of these dates. Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: Quarter Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands) Gains (losses) on foreign currency forward contracts $ 1,229 $ (2,194) $ 2,915 $ (1,049) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is 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 March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands) Completed technology $ 323 $ 463 $ 645 $ 1,038 Customer contracts and relationships 578 658 1,149 1,798 Trade names — 38 — 75 Non-compete agreements 44 43 88 87 Total $ 945 $ 1,202 $ 1,882 $ 2,998 Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2021 was as follows: Year Ending September 30, (In thousands) 2021 (excluding the six months ended March 31, 2021) $ 1,804 2022 3,400 2023 1,316 2024 917 Total $ 7,437 The following table summarizes changes to goodwill during the six months ended March 31, 2021, both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2020 $ 596,804 $ 146,648 $ 68,912 $ 812,364 Foreign currency translation adjustment 3,679 — 1,040 4,719 Reclassified as assets held for sale (27,960) — — (27,960) Balance at March 31, 2021 $ 572,523 $ 146,648 $ 69,952 $ 789,123 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following table presents the composition of property and equipment, net and other assets at March 31, 2021 and September 30, 2020: March 31, September 30, (In thousands) Property and equipment, net: Property and equipment $ 154,749 $ 161,119 Less: accumulated depreciation and amortization (119,852) (114,700) Total $ 34,897 $ 46,419 Other assets: Long-term receivables $ 45,994 $ 54,074 Prepaid commissions 40,598 38,579 Others 11,975 12,632 Total $ 98,567 $ 105,285 |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of CreditWe 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, subject to lender approval, 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 on an average trailing four-quarter basis, subject to a step up to 3.75 following certain permitted acquisitions; and a minimum interest coverage ratio of 3.00. The credit agreement also contains other covenants typical of unsecured facilities. As of March 31, 2021, we had $225.0 million in borrowings outstanding at a weighted-average interest rate of 1.236% and were in compliance with all financial covenants under this credit facility. |
Senior Notes
Senior Notes | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 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. On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes,” and with the 2018 Senior Notes, the “Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028. The indentures for the Senior Notes contain certain covenants typical of unsecured obligations. The following table presents the face values and fair values for the Senior Notes at March 31, 2021 and September 30, 2020: March 31, 2021 September 30, 2020 Face Value (*) Fair Value Face Value (*) Fair Value (In thousands) The 2018 Senior Notes 400,000 442,000 400,000 442,000 The 2019 Senior Notes 350,000 357,000 350,000 358,750 Total $ 750,000 $ 799,000 $ 750,000 $ 800,750 (*) The carrying value of the Senior Notes was the face value reduced by the net debt issuance costs of $9.8 million and $10.6 million at March 31, 2021 and September 30, 2020, respectively. |
Income Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rates were 25.2% and 6.7% during the quarters ended March 31, 2021 and 2020, respectively, and 13.7% and (8.5)% during the six months ended March 31, 2021 and 2020, 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 rates for the six months ended March 31, 2021 and 2020 were both impacted by the recording of excess tax benefits relating to stock awards. In addition, stock exercises during the quarter and six months ended March 31, 2020 resulted in an additional increase in excess benefits. |
Earnings per Share
Earnings per Share | 6 Months Ended |
Mar. 31, 2021 | |
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 six-month periods ended March 31, 2021 and 2020: Quarter Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net income $ 68,674 $ 58,288 $ 155,166 $ 113,209 Denominator - share: Basic weighted-average shares 29,087 29,194 29,107 29,109 Effect of dilutive securities 444 791 553 967 Diluted weighted-average shares 29,531 29,985 29,660 30,076 Earnings per share: Basic $ 2.36 $ 2.00 $ 5.33 $ 3.89 Diluted $ 2.33 $ 1.94 $ 5.23 $ 3.76 Anti-dilutive stock-based awards excluded from the calculations of diluted EPS were immaterial during the periods presented. |
Segment Information
Segment Information | 6 Months Ended |
Mar. 31, 2021 | |
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 decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud, financial crimes compliance, 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, software-as-a-service (“SaaS”) applications through the FICO ® Analytic Cloud or Amazon Web Services (“AWS”). • Scores . This segment includes our business-to-business scoring solutions and services, our business-to-consumer scoring solutions and services including myFICO ® solutions for consumers, and associated professional services. Our scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our scoring solutions and services are either distributed through major credit reporting agencies worldwide or sold to our 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 FICO ® Decision Management Suite, as well as associated professional services. Some of our decision management software is currently delivered as part of the FICO ® Decision Management Platform and is increasingly being adopted to connect decisioning solutions or previously disconnected use cases. These tools are available to our customers as on-premises software, through the FICO ® Analytic Cloud or AWS. 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 six-month periods ended March 31, 2021 and 2020: Quarter Ended March 31, 2021 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 96,687 $ 167,212 $ 17,020 $ — $ 280,919 Professional services 27,627 703 9,464 — 37,794 License 5,200 804 6,644 — 12,648 Total segment revenues 129,514 168,719 33,128 — 331,361 Segment operating expense (102,142) (22,177) (43,300) (33,392) (201,011) Segment operating income (loss) $ 27,372 $ 146,542 $ (10,172) $ (33,392) 130,350 Unallocated share-based compensation expense (28,206) Unallocated amortization expense (945) Operating income 101,199 Unallocated interest expense, net (9,943) Unallocated other income, net 568 Income before income taxes $ 91,824 Depreciation expense $ 4,110 $ 167 $ 902 $ 45 $ 5,224 Quarter Ended March 31, 2020 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 97,789 $ 127,610 $ 15,303 $ — $ 240,702 Professional services 35,134 819 11,952 — 47,905 License 7,356 719 11,289 — 19,364 Total segment revenues 140,279 129,148 38,544 — 307,971 Segment operating expense (111,456) (15,660) (47,354) (33,785) (208,255) Segment operating income (loss) $ 28,823 $ 113,488 $ (8,810) $ (33,785) 99,716 Unallocated share-based compensation expense (22,788) Unallocated amortization expense (1,202) Operating income 75,726 Unallocated interest expense, net (11,254) Unallocated other expense, net (2,008) Income before income taxes $ 62,464 Depreciation expense $ 4,553 $ 141 $ 1,158 $ 108 $ 5,960 Six Months Ended March 31, 2021 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 194,418 $ 305,802 $ 32,849 $ — $ 533,069 Professional services 58,232 820 20,167 — 79,219 License 12,225 6,748 12,514 — 31,487 Total segment revenues 264,875 313,370 65,530 — 643,775 Segment operating expense (202,001) (43,803) (90,520) (63,645) (399,969) Segment operating income (loss) $ 62,874 $ 269,567 $ (24,990) $ (63,645) 243,806 Unallocated share-based compensation expense (53,338) Unallocated amortization expense (1,882) Unallocated gain on sale of product line assets 7,334 Operating income 195,920 Unallocated interest expense, net (19,584) Unallocated other income, net 3,448 Income before income taxes $ 179,784 Depreciation expense $ 8,484 $ 361 $ 1,886 $ 78 $ 10,809 Six Months Ended March 31, 2020 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 196,626 $ 235,056 $ 29,394 $ — $ 461,076 Professional services 69,157 1,083 21,690 — 91,930 License 26,674 8,147 18,648 — 53,469 Total segment revenues 292,457 244,286 69,732 — 606,475 Segment operating expense (227,466) (33,372) (97,999) (67,995) (426,832) Segment operating income (loss) $ 64,991 $ 210,914 $ (28,267) $ (67,995) 179,643 Unallocated share-based compensation expense (45,933) Unallocated amortization expense (2,998) Unallocated restructuring and impairment charges (3,104) Operating income 127,608 Unallocated interest expense, net (21,022) Unallocated other expense, net (2,227) Income before income taxes $ 104,359 Depreciation expense $ 8,902 $ 257 $ 2,144 $ 333 $ 11,636 Information about disaggregated revenue by product deployment methods was as follows: Quarter Ended March 31, 2021 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 66,182 $ 63,332 $ — $ 129,514 39 % Scores — — 168,719 168,719 51 % Decision Management Software 22,287 10,841 — 33,128 10 % Total $ 88,469 $ 74,173 $ 168,719 $ 331,361 100 % Quarter Ended March 31, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 76,341 $ 63,938 $ — $ 140,279 46 % Scores — — 129,148 129,148 42 % Decision Management Software 28,847 9,697 — 38,544 12 % Total $ 105,188 $ 73,635 $ 129,148 $ 307,971 100 % Six Months Ended March 31, 2021 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 137,402 $ 127,473 $ — $ 264,875 41 % Scores — — 313,370 313,370 49 % Decision Management Software 45,065 20,465 — 65,530 10 % Total $ 182,467 $ 147,938 $ 313,370 $ 643,775 100 % Six Months Ended March 31, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 162,319 $ 130,138 $ — $ 292,457 48 % Scores — — 244,286 244,286 40 % Decision Management Software 52,526 17,206 — 69,732 12 % Total $ 214,845 $ 147,344 $ 244,286 $ 606,475 100 % Information about disaggregated revenue by primary geographical markets was as follows: Quarter Ended March 31, 2021 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 70,117 $ 9,112 $ 34,913 $ 15,372 $ 129,514 Scores 159,047 2,740 5,642 1,290 168,719 Decision Management Software 17,514 2,929 9,120 3,565 33,128 Total $ 246,678 $ 14,781 $ 49,675 $ 20,227 $ 331,361 Quarter Ended March 31, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 78,900 $ 9,672 $ 34,271 $ 17,436 $ 140,279 Scores 123,249 2,619 1,720 1,560 129,148 Decision Management Software 21,007 5,917 6,920 4,700 38,544 Total $ 223,156 $ 18,208 $ 42,911 $ 23,696 $ 307,971 Six Months Ended March 31, 2021 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 149,454 $ 18,339 $ 70,170 $ 26,912 $ 264,875 Scores 299,457 3,043 7,355 3,515 313,370 Decision Management Software 34,061 5,842 17,698 7,929 65,530 Total $ 482,972 $ 27,224 $ 95,223 $ 38,356 $ 643,775 Six Months Ended March 31, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 164,366 $ 19,189 $ 74,055 $ 34,847 $ 292,457 Scores 233,446 2,903 3,258 4,679 244,286 Decision Management Software 36,594 10,250 14,185 8,703 69,732 Total $ 434,406 $ 32,342 $ 91,498 $ 48,229 $ 606,475 |
Contract Balances and Performan
Contract Balances and Performance Obligations | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract Balances and Performance Obligations | Contract Balances and Performance Obligations 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. Receivables at March 31, 2021 and September 30, 2020 consisted of the following: March 31, September 30, (In thousands) Billed $ 155,838 $ 211,776 Unbilled 159,891 181,550 315,729 393,326 Less: allowance for doubtful accounts (4,931) (5,072) Net receivables 310,798 388,254 Less: long-term receivables * (45,994) (54,074) Short-term receivables * $ 264,804 334,180 * Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets. Contract assets balance at March 31, 2021 and September 30, 2020 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 six months ended March 31, 2021 were as follows: Six Months Ended (In thousands) Deferred revenues at September 30, 2020 * $ 122,141 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (75,600) Increases due to billings, excluding amounts recognized as revenue during the period 78,945 Reclassified as liabilities related to assets held for sale $ (16,508) Deferred revenues at March 31, 2021 * $ 108,978 * Deferred revenues at September 30, 2020 included current portion of $115.2 million and long-term portion of $6.9 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at March 31, 2021 included current portion of $100.4 million and long-term portion of $8.6 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. 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 SaaS subscription term with revenue recognized ratably over the contract period. Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: • Revenue that will be recognized in future periods from usage-based royalty from license sales; • SaaS transactional revenue from variable considerations that will be recognized in the distinct service period during which it is earned; and • Revenue from variable considerations that will be recognized in accordance with the “right-to-invoice” practical expedient, such as fees from our professional services billed based on a time and materials basis. Revenue allocated to remaining performance obligations was $334.4 million as of March 31, 2021, of which we expect to recognize approximately 50% over the next 20 months and the remainder thereafter. |
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | ContingenciesWe 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. |
Assets Held for Sale
Assets Held for Sale | 6 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Assets Held for Sale | Assets Held for Sale As discussed in Note 14 - Subsequent Events, we entered into an agreement to divest our Collections and Recovery business (“C&R”) on May 4th, 2021. As a result of meeting the criteria to classify the disposal group as held for sale under ASC 360, Property, Plant, and Equipment, the C&R disposal group was classified as held for sale as of March 31, 2021. Assets classified as held for sale are recorded at the lower of their carrying amount or fair value less costs to sell and are not depreciated or amortized. Classification of a disposal group as held for sale occurs when sufficient authority to sell the disposal group has been obtained, the disposal group is available for immediate sale, and its sale is probable within one year. If at any time these criteria are no longer met, the disposal group would be reclassified as held and used. We evaluate the held for sale classification during each reporting period. The C&R disposal group did not meet the requirements for presentation as discontinued operations and is included in income from continuing operations for the three and six months ended March 31, 2021. We did not have any assets held for sale as of September 30, 2020. The following table presents the carrying amounts of major classes of assets and liabilities related to assets held for sale with respect to the C&R disposal group as of March 31, 2021. March 31, 2021 (In thousands) Assets: Accounts receivable, net $ 18,310 Property and equipment, net 312 Goodwill 27,960 Operating lease right-of-use assets 2,261 Total assets held for sale $ 48,843 Liabilities: Accounts payable $ 99 Accrued compensation and employee benefits 2,131 Deferred revenue 16,508 Operating lease liabilities 5,251 Total liabilities related to assets held for sale $ 23,989 |
Subsequent Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On May 4th, 2021, we signed a definitive agreement to sell our C&R business. The transaction is expected to close in our current fiscal year, subject to customary closing conditions. The decision to sell the C&R business was the result of management’s decision to divest non-platform businesses and focus resources on the growth of our FICO Decision Management Platform. Our C&R business is part of the Applications segment. |
Nature of Business (Policies)
Nature of Business (Policies) | 6 Months Ended |
Mar. 31, 2021 | |
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 analytic solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations and public agencies. 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, 2020. 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. 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 collectibility of accounts receivable; the appropriate levels of various accruals; variable considerations included in the transaction price for our customer contracts; 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. As the impact of the COVID-19 pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the condensed consolidated financial statements as new events occur and additional information becomes known. To the extent our actual results differ materially from those estimates and assumptions, our future financial statements could be affected. For more information, see Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In August 2018, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2018-15, Intangibles—Goodwill and Other (Topic 350): Internal-Use Software (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. We adopted ASU 2018-15 in the first quarter of our fiscal 2021 and the adoption did not have a significant impact on our condensed consolidated financial statements. 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, ASU 2019-05 and ASU 2019-11 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. We adopted Topic 326 in the first quarter of our fiscal 2021 and the adoption did not have a significant impact on our condensed consolidated financial statements. Recent Accounting Pronouncements Not Yet Adopted We do not expect that any recently issued accounting pronouncements will have a significant effect on our financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and September 30, 2020: March 31, 2021 Active Markets for Fair Value as of March 31, 2021 (In thousands) Assets: Cash equivalents (1) $ 194 $ 194 Marketable securities (2) 30,437 30,437 Total $ 30,631 $ 30,631 September 30, 2020 Active Markets for Fair Value as of September 30, 2020 (In thousands) Assets: Cash equivalents (1) $ 35,275 $ 35,275 Marketable securities (2) 25,513 25,513 Total $ 60,788 $ 60,788 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2021 and September 30, 2020. Not included in these tables are cash deposits of $197.6 million and $122.1 million at March 31, 2021 and September 30, 2020, 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 March 31, 2021 and September 30, 2020. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 March 31, 2021 and September 30, 2020: March 31, 2021 Contract Amount Fair Value Foreign USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 19,200 $ 22,643 $ — Buy foreign currency: British pound (GBP) GBP 14,780 $ 20,400 $ — Singapore dollar (SGD) SGD 5,790 $ 4,300 $ — September 30, 2020 Contract Amount Fair Value Foreign USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 15,000 $ 17,656 $ — Buy foreign currency: British pound (GBP) GBP 16,555 $ 21,300 $ — Singapore dollar (SGD) SGD 7,815 $ 5,700 $ — |
Losses on Derivative Financial Instruments | Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: Quarter Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands) Gains (losses) on foreign currency forward contracts $ 1,229 $ (2,194) $ 2,915 $ (1,049) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization Expense | Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is 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 March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands) Completed technology $ 323 $ 463 $ 645 $ 1,038 Customer contracts and relationships 578 658 1,149 1,798 Trade names — 38 — 75 Non-compete agreements 44 43 88 87 Total $ 945 $ 1,202 $ 1,882 $ 2,998 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2021 was as follows: Year Ending September 30, (In thousands) 2021 (excluding the six months ended March 31, 2021) $ 1,804 2022 3,400 2023 1,316 2024 917 Total $ 7,437 |
Schedule of Goodwill | The following table summarizes changes to goodwill during the six months ended March 31, 2021, both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2020 $ 596,804 $ 146,648 $ 68,912 $ 812,364 Foreign currency translation adjustment 3,679 — 1,040 4,719 Reclassified as assets held for sale (27,960) — — (27,960) Balance at March 31, 2021 $ 572,523 $ 146,648 $ 69,952 $ 789,123 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | The following table presents the composition of property and equipment, net and other assets at March 31, 2021 and September 30, 2020: March 31, September 30, (In thousands) Property and equipment, net: Property and equipment $ 154,749 $ 161,119 Less: accumulated depreciation and amortization (119,852) (114,700) Total $ 34,897 $ 46,419 Other assets: Long-term receivables $ 45,994 $ 54,074 Prepaid commissions 40,598 38,579 Others 11,975 12,632 Total $ 98,567 $ 105,285 |
Senior Notes (Tables)
Senior Notes (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Debt Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Senior Notes | The following table presents the face values and fair values for the Senior Notes at March 31, 2021 and September 30, 2020: March 31, 2021 September 30, 2020 Face Value (*) Fair Value Face Value (*) Fair Value (In thousands) The 2018 Senior Notes 400,000 442,000 400,000 442,000 The 2019 Senior Notes 350,000 357,000 350,000 358,750 Total $ 750,000 $ 799,000 $ 750,000 $ 800,750 (*) The carrying value of the Senior Notes was the face value reduced by the net debt issuance costs of $9.8 million and $10.6 million at March 31, 2021 and September 30, 2020, respectively. |
Earnings per Share (Tables)
Earnings per Share (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
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 six-month periods ended March 31, 2021 and 2020: Quarter Ended March 31, Six Months Ended March 31, 2021 2020 2021 2020 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net income $ 68,674 $ 58,288 $ 155,166 $ 113,209 Denominator - share: Basic weighted-average shares 29,087 29,194 29,107 29,109 Effect of dilutive securities 444 791 553 967 Diluted weighted-average shares 29,531 29,985 29,660 30,076 Earnings per share: Basic $ 2.36 $ 2.00 $ 5.33 $ 3.89 Diluted $ 2.33 $ 1.94 $ 5.23 $ 3.76 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables summarize segment information for the quarters and six-month periods ended March 31, 2021 and 2020: Quarter Ended March 31, 2021 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 96,687 $ 167,212 $ 17,020 $ — $ 280,919 Professional services 27,627 703 9,464 — 37,794 License 5,200 804 6,644 — 12,648 Total segment revenues 129,514 168,719 33,128 — 331,361 Segment operating expense (102,142) (22,177) (43,300) (33,392) (201,011) Segment operating income (loss) $ 27,372 $ 146,542 $ (10,172) $ (33,392) 130,350 Unallocated share-based compensation expense (28,206) Unallocated amortization expense (945) Operating income 101,199 Unallocated interest expense, net (9,943) Unallocated other income, net 568 Income before income taxes $ 91,824 Depreciation expense $ 4,110 $ 167 $ 902 $ 45 $ 5,224 Quarter Ended March 31, 2020 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 97,789 $ 127,610 $ 15,303 $ — $ 240,702 Professional services 35,134 819 11,952 — 47,905 License 7,356 719 11,289 — 19,364 Total segment revenues 140,279 129,148 38,544 — 307,971 Segment operating expense (111,456) (15,660) (47,354) (33,785) (208,255) Segment operating income (loss) $ 28,823 $ 113,488 $ (8,810) $ (33,785) 99,716 Unallocated share-based compensation expense (22,788) Unallocated amortization expense (1,202) Operating income 75,726 Unallocated interest expense, net (11,254) Unallocated other expense, net (2,008) Income before income taxes $ 62,464 Depreciation expense $ 4,553 $ 141 $ 1,158 $ 108 $ 5,960 Six Months Ended March 31, 2021 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 194,418 $ 305,802 $ 32,849 $ — $ 533,069 Professional services 58,232 820 20,167 — 79,219 License 12,225 6,748 12,514 — 31,487 Total segment revenues 264,875 313,370 65,530 — 643,775 Segment operating expense (202,001) (43,803) (90,520) (63,645) (399,969) Segment operating income (loss) $ 62,874 $ 269,567 $ (24,990) $ (63,645) 243,806 Unallocated share-based compensation expense (53,338) Unallocated amortization expense (1,882) Unallocated gain on sale of product line assets 7,334 Operating income 195,920 Unallocated interest expense, net (19,584) Unallocated other income, net 3,448 Income before income taxes $ 179,784 Depreciation expense $ 8,484 $ 361 $ 1,886 $ 78 $ 10,809 Six Months Ended March 31, 2020 Applications Scores Decision Management Software Unallocated Total (In thousands) Segment revenues: Transactional and maintenance $ 196,626 $ 235,056 $ 29,394 $ — $ 461,076 Professional services 69,157 1,083 21,690 — 91,930 License 26,674 8,147 18,648 — 53,469 Total segment revenues 292,457 244,286 69,732 — 606,475 Segment operating expense (227,466) (33,372) (97,999) (67,995) (426,832) Segment operating income (loss) $ 64,991 $ 210,914 $ (28,267) $ (67,995) 179,643 Unallocated share-based compensation expense (45,933) Unallocated amortization expense (2,998) Unallocated restructuring and impairment charges (3,104) Operating income 127,608 Unallocated interest expense, net (21,022) Unallocated other expense, net (2,227) Income before income taxes $ 104,359 Depreciation expense $ 8,902 $ 257 $ 2,144 $ 333 $ 11,636 |
Disaggregation of Revenue | Information about disaggregated revenue by product deployment methods was as follows: Quarter Ended March 31, 2021 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 66,182 $ 63,332 $ — $ 129,514 39 % Scores — — 168,719 168,719 51 % Decision Management Software 22,287 10,841 — 33,128 10 % Total $ 88,469 $ 74,173 $ 168,719 $ 331,361 100 % Quarter Ended March 31, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 76,341 $ 63,938 $ — $ 140,279 46 % Scores — — 129,148 129,148 42 % Decision Management Software 28,847 9,697 — 38,544 12 % Total $ 105,188 $ 73,635 $ 129,148 $ 307,971 100 % Six Months Ended March 31, 2021 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 137,402 $ 127,473 $ — $ 264,875 41 % Scores — — 313,370 313,370 49 % Decision Management Software 45,065 20,465 — 65,530 10 % Total $ 182,467 $ 147,938 $ 313,370 $ 643,775 100 % Six Months Ended March 31, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 162,319 $ 130,138 $ — $ 292,457 48 % Scores — — 244,286 244,286 40 % Decision Management Software 52,526 17,206 — 69,732 12 % Total $ 214,845 $ 147,344 $ 244,286 $ 606,475 100 % Information about disaggregated revenue by primary geographical markets was as follows: Quarter Ended March 31, 2021 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 70,117 $ 9,112 $ 34,913 $ 15,372 $ 129,514 Scores 159,047 2,740 5,642 1,290 168,719 Decision Management Software 17,514 2,929 9,120 3,565 33,128 Total $ 246,678 $ 14,781 $ 49,675 $ 20,227 $ 331,361 Quarter Ended March 31, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 78,900 $ 9,672 $ 34,271 $ 17,436 $ 140,279 Scores 123,249 2,619 1,720 1,560 129,148 Decision Management Software 21,007 5,917 6,920 4,700 38,544 Total $ 223,156 $ 18,208 $ 42,911 $ 23,696 $ 307,971 Six Months Ended March 31, 2021 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 149,454 $ 18,339 $ 70,170 $ 26,912 $ 264,875 Scores 299,457 3,043 7,355 3,515 313,370 Decision Management Software 34,061 5,842 17,698 7,929 65,530 Total $ 482,972 $ 27,224 $ 95,223 $ 38,356 $ 643,775 Six Months Ended March 31, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 164,366 $ 19,189 $ 74,055 $ 34,847 $ 292,457 Scores 233,446 2,903 3,258 4,679 244,286 Decision Management Software 36,594 10,250 14,185 8,703 69,732 Total $ 434,406 $ 32,342 $ 91,498 $ 48,229 $ 606,475 |
Contract Balances and Perform_2
Contract Balances and Performance Obligations - Revenue from Contract with Customer (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Receivables at March 31, 2021 and September 30, 2020 consisted of the following: March 31, September 30, (In thousands) Billed $ 155,838 $ 211,776 Unbilled 159,891 181,550 315,729 393,326 Less: allowance for doubtful accounts (4,931) (5,072) Net receivables 310,798 388,254 Less: long-term receivables * (45,994) (54,074) Short-term receivables * $ 264,804 334,180 * Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets. Six Months Ended (In thousands) Deferred revenues at September 30, 2020 * $ 122,141 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (75,600) Increases due to billings, excluding amounts recognized as revenue during the period 78,945 Reclassified as liabilities related to assets held for sale $ (16,508) Deferred revenues at March 31, 2021 * $ 108,978 |
Assets Held for Sale (Tables)
Assets Held for Sale (Tables) | 6 Months Ended |
Mar. 31, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Assets Held for Sale | The following table presents the carrying amounts of major classes of assets and liabilities related to assets held for sale with respect to the C&R disposal group as of March 31, 2021. March 31, 2021 (In thousands) Assets: Accounts receivable, net $ 18,310 Property and equipment, net 312 Goodwill 27,960 Operating lease right-of-use assets 2,261 Total assets held for sale $ 48,843 Liabilities: Accounts payable $ 99 Accrued compensation and employee benefits 2,131 Deferred revenue 16,508 Operating lease liabilities 5,251 Total liabilities related to assets held for sale $ 23,989 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 | |
Assets: | |||
Marketable securities | $ 30,437 | $ 25,513 | |
Cash deposits | 197,600 | 122,100 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | [1] | 194 | 35,275 |
Marketable securities | [2] | 30,437 | 25,513 |
Total | 30,631 | 60,788 | |
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | |||
Assets: | |||
Cash equivalents | [1] | 194 | 35,275 |
Marketable securities | [2] | 30,437 | 25,513 |
Total | $ 30,631 | $ 60,788 | |
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2021 and September 30, 2020. Not included in these tables are cash deposits of $197.6 million and $122.1 million at March 31, 2021 and September 30, 2020, respectively. | ||
[2] | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at March 31, 2021 and September 30, 2020. |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
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 | Mar. 31, 2021EUR (€) | Mar. 31, 2021USD ($) | Mar. 31, 2021GBP (£) | Mar. 31, 2021SGD ($) | Sep. 30, 2020EUR (€) | Sep. 30, 2020USD ($) | Sep. 30, 2020GBP (£) | Sep. 30, 2020SGD ($) |
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 | € 19,200 | 22,643 | € 15,000 | 17,656 | ||||
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 | 20,400 | £ 14,780 | 21,300 | £ 16,555 | ||||
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 | $ 4,300 | $ 5,790 | $ 5,700 | $ 7,815 |
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 | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) on foreign currency forward contracts | $ 1,229 | $ (2,194) | $ 2,915 | $ (1,049) |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 945 | $ 1,202 | $ 1,882 | $ 2,998 |
Completed Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 323 | 463 | 645 | 1,038 |
Customer Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 578 | 658 | 1,149 | 1,798 |
Trade Names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 0 | 38 | 0 | 75 |
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 44 | $ 43 | $ 88 | $ 87 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Estimated future intangible asset amortization expense | ||
2021 (excluding the six months ended March 31, 2021) | $ 1,804 | |
2022 | 3,400 | |
2023 | 1,316 | |
2024 | 917 | |
Total | $ 7,437 | $ 9,236 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | $ 812,364 |
Foreign currency translation adjustment | 4,719 |
Reclassified as assets held for sale | (27,960) |
Balance at March 31, 2021 | 789,123 |
Applications | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 596,804 |
Foreign currency translation adjustment | 3,679 |
Reclassified as assets held for sale | (27,960) |
Balance at March 31, 2021 | 572,523 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 146,648 |
Foreign currency translation adjustment | 0 |
Reclassified as assets held for sale | 0 |
Balance at March 31, 2021 | 146,648 |
Decision Management Software | |
Goodwill [Roll Forward] | |
Balance at September 30, 2020 | 68,912 |
Foreign currency translation adjustment | 1,040 |
Reclassified as assets held for sale | 0 |
Balance at March 31, 2021 | $ 69,952 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property and equipment | $ 154,749 | $ 161,119 |
Less: accumulated depreciation and amortization | (119,852) | (114,700) |
Property, Plant, and Equipment, Total | 34,897 | 46,419 |
Long-term receivables | 45,994 | 54,074 |
Prepaid commissions | 40,598 | 38,579 |
Others | 11,975 | 12,632 |
Other assets | $ 98,567 | $ 105,285 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Detail) | May 08, 2018USD ($) | Mar. 31, 2021USD ($) |
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 | |
Interest coverage ratio | 3 | |
Borrowings outstanding | $ 225,000,000 | |
Interest rate of borrowings outstanding | 1.236% | |
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) - USD ($) | Dec. 06, 2019 | May 08, 2018 | Mar. 31, 2021 | Sep. 30, 2020 |
Debt Instrument [Line Items] | ||||
Carrying value of Senior Notes | $ 750,000,000 | $ 750,000,000 | ||
Fair value of Senior Notes | 799,000,000 | 800,750,000 | ||
Debt issuance costs | 9,800,000 | 10,600,000 | ||
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 | 442,000,000 | 442,000,000 | ||
Debt instrument, maturity date | May 15, 2026 | |||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | |||
Dec 2019 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $ 350,000,000 | |||
Carrying value of Senior Notes | 350,000,000 | 350,000,000 | ||
Fair value of Senior Notes | $ 357,000,000 | $ 358,750,000 | ||
Debt instrument, maturity date | Jun. 15, 2028 | |||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
Income Taxes -Additional Inform
Income Taxes -Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 25.20% | 6.70% | 13.70% | (8.50%) | |
Unrecognized tax benefits, uncertain tax positions | $ 10.2 | $ 10.2 | $ 8 | ||
Unrecognized tax benefits, accrued interest | $ 0.5 | $ 0.5 | $ 0.4 |
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 | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Numerator for diluted and basic earnings per share: | ||||
Net income | $ 68,674 | $ 58,288 | $ 155,166 | $ 113,209 |
Denominator - share: | ||||
Basic weighted-average shares (in shares) | 29,087 | 29,194 | 29,107 | 29,109 |
Effect of dilutive securities (in shares) | 444 | 791 | 553 | 967 |
Diluted weighted-average shares (in shares) | 29,531 | 29,985 | 29,660 | 30,076 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.36 | $ 2 | $ 5.33 | $ 3.89 |
Diluted (in dollars per share) | $ 2.33 | $ 1.94 | $ 5.23 | $ 3.76 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2021Segment | |
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 ($) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Segment revenues: | ||||
Revenues | $ 331,361,000 | $ 307,971,000 | $ 643,775,000 | $ 606,475,000 |
Segment operating expense | (230,162,000) | (232,245,000) | (447,855,000) | (478,867,000) |
Operating income | 101,199,000 | 75,726,000 | 195,920,000 | 127,608,000 |
Unallocated share-based compensation expense | (28,206,000) | (22,788,000) | (53,338,000) | (45,933,000) |
Unallocated amortization expense | (945,000) | (1,202,000) | (1,882,000) | (2,998,000) |
Unallocated gain on sale of product line assets | 0 | 0 | 7,334,000 | 0 |
Unallocated restructuring and impairment charges | 0 | 0 | 0 | (3,104,000) |
Unallocated interest expense | (9,943,000) | (11,254,000) | (19,584,000) | (21,022,000) |
Unallocated other income, net | 568,000 | (2,008,000) | 3,448,000 | (2,227,000) |
Income before income taxes | 91,824,000 | 62,464,000 | 179,784,000 | 104,359,000 |
Depreciation expense | 5,224,000 | 5,960,000 | 10,809,000 | 11,636,000 |
Operating Segments | ||||
Segment revenues: | ||||
Segment operating expense | (201,011,000) | (208,255,000) | (399,969,000) | (426,832,000) |
Operating income | 130,350,000 | 99,716,000 | 243,806,000 | 179,643,000 |
Unallocated Corporate Expenses | ||||
Segment revenues: | ||||
Segment operating expense | (33,392,000) | (33,785,000) | (63,645,000) | (67,995,000) |
Operating income | (33,392,000) | (33,785,000) | (63,645,000) | (67,995,000) |
Depreciation expense | 45,000 | 108,000 | 78,000 | 333,000 |
Applications | ||||
Segment revenues: | ||||
Revenues | 129,514,000 | 140,279,000 | 264,875,000 | 292,457,000 |
Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 129,514,000 | 140,279,000 | 264,875,000 | 292,457,000 |
Segment operating expense | (102,142,000) | (111,456,000) | (202,001,000) | (227,466,000) |
Operating income | 27,372,000 | 28,823,000 | 62,874,000 | 64,991,000 |
Depreciation expense | 4,110,000 | 4,553,000 | 8,484,000 | 8,902,000 |
Scores | ||||
Segment revenues: | ||||
Revenues | 168,719,000 | 129,148,000 | 313,370,000 | 244,286,000 |
Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 168,719,000 | 129,148,000 | 313,370,000 | 244,286,000 |
Segment operating expense | (22,177,000) | (15,660,000) | (43,803,000) | (33,372,000) |
Operating income | 146,542,000 | 113,488,000 | 269,567,000 | 210,914,000 |
Depreciation expense | 167,000 | 141,000 | 361,000 | 257,000 |
Decision Management Software | ||||
Segment revenues: | ||||
Revenues | 33,128,000 | 38,544,000 | 65,530,000 | 69,732,000 |
Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 33,128,000 | 38,544,000 | 65,530,000 | 69,732,000 |
Segment operating expense | (43,300,000) | (47,354,000) | (90,520,000) | (97,999,000) |
Operating income | (10,172,000) | (8,810,000) | (24,990,000) | (28,267,000) |
Depreciation expense | 902,000 | 1,158,000 | 1,886,000 | 2,144,000 |
Transactional and Maintenance | ||||
Segment revenues: | ||||
Revenues | 280,919,000 | 240,702,000 | 533,069,000 | 461,076,000 |
Transactional and Maintenance | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 96,687,000 | 97,789,000 | 194,418,000 | 196,626,000 |
Transactional and Maintenance | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 167,212,000 | 127,610,000 | 305,802,000 | 235,056,000 |
Transactional and Maintenance | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 17,020,000 | 15,303,000 | 32,849,000 | 29,394,000 |
Technology Service | ||||
Segment revenues: | ||||
Revenues | 37,794,000 | 47,905,000 | 79,219,000 | 91,930,000 |
Technology Service | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 27,627,000 | 35,134,000 | 58,232,000 | 69,157,000 |
Technology Service | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 703,000 | 819,000 | 820,000 | 1,083,000 |
Technology Service | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 9,464,000 | 11,952,000 | 20,167,000 | 21,690,000 |
License | ||||
Segment revenues: | ||||
Revenues | 12,648,000 | 19,364,000 | 31,487,000 | 53,469,000 |
License | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 5,200,000 | 7,356,000 | 12,225,000 | 26,674,000 |
License | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 804,000 | 719,000 | 6,748,000 | 8,147,000 |
License | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | $ 6,644,000 | $ 11,289,000 | $ 12,514,000 | $ 18,648,000 |
Segment Information - Disaggreg
Segment Information - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | Mar. 31, 2021 | Mar. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 331,361 | $ 307,971 | $ 643,775 | $ 606,475 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 246,678 | 223,156 | 482,972 | 434,406 |
Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 14,781 | 18,208 | 27,224 | 32,342 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 49,675 | 42,911 | 95,223 | 91,498 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 20,227 | 23,696 | 38,356 | 48,229 |
On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 88,469 | 105,188 | 182,467 | 214,845 |
SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 74,173 | 73,635 | 147,938 | 147,344 |
Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 168,719 | 129,148 | 313,370 | 244,286 |
Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 168,719 | 129,148 | 313,370 | 244,286 |
Scores | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 159,047 | 123,249 | 299,457 | 233,446 |
Scores | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,740 | 2,619 | 3,043 | 2,903 |
Scores | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,642 | 1,720 | 7,355 | 3,258 |
Scores | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,290 | 1,560 | 3,515 | 4,679 |
Scores | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Scores | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Scores | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 168,719 | 129,148 | 313,370 | 244,286 |
Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 33,128 | 38,544 | 65,530 | 69,732 |
Decision Management Software | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 17,514 | 21,007 | 34,061 | 36,594 |
Decision Management Software | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,929 | 5,917 | 5,842 | 10,250 |
Decision Management Software | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,120 | 6,920 | 17,698 | 14,185 |
Decision Management Software | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,565 | 4,700 | 7,929 | 8,703 |
Decision Management Software | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,287 | 28,847 | 45,065 | 52,526 |
Decision Management Software | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,841 | 9,697 | 20,465 | 17,206 |
Decision Management Software | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 129,514 | 140,279 | 264,875 | 292,457 |
Applications | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 70,117 | 78,900 | 149,454 | 164,366 |
Applications | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 9,112 | 9,672 | 18,339 | 19,189 |
Applications | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,913 | 34,271 | 70,170 | 74,055 |
Applications | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 15,372 | 17,436 | 26,912 | 34,847 |
Applications | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 66,182 | 76,341 | 137,402 | 162,319 |
Applications | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 63,332 | 63,938 | 127,473 | 130,138 |
Applications | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue from Contract with Customer Benchmark [Member] | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 51.00% | 42.00% | 49.00% | 40.00% |
Revenue from Contract with Customer Benchmark [Member] | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 10.00% | 12.00% | 10.00% | 12.00% |
Revenue from Contract with Customer Benchmark [Member] | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 39.00% | 46.00% | 41.00% | 48.00% |
Contract Balances and Perform_3
Contract Balances and Performance Obligations - Receivables (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Sep. 30, 2020 |
Revenue from Contract with Customer [Abstract] | ||
Billed | $ 155,838 | $ 211,776 |
Unbilled | 159,891 | 181,550 |
Receivables Gross | 315,729 | 393,326 |
Less: allowance for doubtful accounts | (4,931) | (5,072) |
Net receivables | 310,798 | 388,254 |
Less: long-term receivables * | (45,994) | (54,074) |
Short-term receivables * | $ 264,804 | $ 334,180 |
Contract Balances and Perform_4
Contract Balances and Performance Obligations - Contract Balances (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2021 | Sep. 30, 2020 | |
Contract With Customer, Liability [Roll Forward] | ||
Deferred revenues at September 30, 2020 * | $ 122,141 | |
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | (75,600) | |
Increases due to billings, excluding amounts recognized as revenue during the period | 78,945 | |
Reclassified as liabilities related to assets held for sale | (16,508) | |
Deferred revenues at March 31, 2021 * | 108,978 | |
Deferred revenue and other liabilities, current portion | 100,400 | $ 115,200 |
Deferred revenue and other liabilities, noncurrent | $ 8,600 | $ 6,900 |
Contract Balances and Perform_5
Contract Balances and Performance Obligations - Performance Obligations (Details) $ in Millions | Mar. 31, 2021USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 334.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-04-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 20 months |
Revenue, Remaining Performance Obligation, Percentage | 50.00% |
Contract Balances and Perform_6
Contract Balances and Performance Obligations - Additional (Details) $ in Millions | 6 Months Ended |
Mar. 31, 2021USD ($) | |
Revenue from External Customer [Line Items] | |
Revenue, remaining performance obligation, amount | $ 334.4 |
Minimum | |
Revenue from External Customer [Line Items] | |
Contract With Customer, Payment Term | 30 days |
Maximum | |
Revenue from External Customer [Line Items] | |
Contract With Customer, Payment Term | 60 days |
Assets Held for Sale (Details)
Assets Held for Sale (Details) - Disposal Group, Not Discontinued Operations $ in Thousands | Mar. 31, 2021USD ($) |
Assets: | |
Accounts receivable, net | $ 18,310 |
Property and equipment, net | 312 |
Goodwill | 27,960 |
Operating lease right-of-use assets | 2,261 |
Total assets held for sale | 48,843 |
Liabilities: | |
Accounts payable | 99 |
Accrued compensation and employee benefits | 2,131 |
Deferred revenue | 16,508 |
Operating lease liabilities | 5,251 |
Total liabilities related to assets held for sale | $ 23,989 |