Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2015 | Apr. 17, 2015 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 31-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | FICO | |
Entity Registrant Name | FAIR ISAAC CORP | |
Entity Central Index Key | 814547 | |
Current Fiscal Year End Date | -21 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 31,051,574 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $86,841 | $105,075 |
Accounts receivable, net | 169,932 | 155,295 |
Prepaid expenses and other current assets | 44,982 | 28,157 |
Total current assets | 301,755 | 288,527 |
Marketable securities available for sale | 9,706 | 8,751 |
Other investments | 10,958 | 11,033 |
Property and equipment, net | 40,011 | 36,677 |
Goodwill | 809,117 | 779,928 |
Intangible assets, net | 53,582 | 47,914 |
Deferred income taxes | 4,285 | 13,061 |
Other assets | 7,237 | 6,407 |
Total assets | 1,236,651 | 1,192,298 |
Current liabilities: | ||
Accounts payable | 38,418 | 22,000 |
Accrued compensation and employee benefits | 37,301 | 56,650 |
Other accrued liabilities | 30,755 | 36,235 |
Deferred revenue | 67,609 | 56,519 |
Current maturities on debt | 82,000 | 170,000 |
Total current liabilities | 256,083 | 341,404 |
Long-term debt | 576,000 | 376,000 |
Other liabilities | 23,406 | 20,280 |
Total liabilities | 855,489 | 737,684 |
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 31,368 and 32,047 shares outstanding at March 31, 2015 and September 30, 2014, respectively) | 314 | 320 |
Paid-in-capital | 1,130,709 | 1,129,317 |
Treasury stock, at cost (57,489 and 56,810 shares at March 31, 2015 and September 30, 2014, respectively) | -2,012,431 | -1,936,095 |
Retained earnings | 1,316,278 | 1,284,261 |
Accumulated other comprehensive loss | -53,708 | -23,189 |
Total stockholders’ equity | 381,162 | 454,614 |
Total liabilities and stockholders’ equity | $1,236,651 | $1,192,298 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, issued | 0 | 0 |
Preferred stock, outstanding | 0 | 0 |
Common stock, par value | $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 | 31,368,000 | 32,047,000 |
Treasury stock, shares | 57,489,000 | 56,810,000 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Revenues: | ||||||||
Transactional and maintenance | $138,683 | $132,369 | $270,093 | $262,024 | ||||
Professional services | 37,946 | 34,619 | 73,144 | 68,905 | ||||
License | 30,480 | 18,474 | 53,422 | 38,876 | ||||
Total revenues | 207,109 | 185,462 | 396,659 | 369,805 | ||||
Operating expenses: | ||||||||
Cost of revenues | 70,991 | [1] | 58,183 | [1] | 137,291 | [1] | 115,502 | [1] |
Research and development | 24,341 | 19,690 | 46,978 | 37,782 | ||||
Selling, general and administrative | 73,863 | [1] | 65,944 | [1] | 146,664 | [1] | 132,933 | [1] |
Amortization of intangible assets | 3,515 | [1] | 2,908 | [1] | 6,447 | [1] | 5,921 | [1] |
Restructuring and acquisition-related | 0 | 0 | 0 | 3,660 | ||||
Total operating expenses | 172,710 | 146,725 | 337,380 | 295,798 | ||||
Operating income | 34,399 | 38,737 | 59,279 | 74,007 | ||||
Interest expense, net | -7,718 | -7,099 | -14,923 | -14,225 | ||||
Other income (expense), net | -648 | -351 | 1 | -1,312 | ||||
Income before income taxes | 26,033 | 31,287 | 44,357 | 58,470 | ||||
Provision for income taxes | 7,163 | 10,536 | 11,080 | 20,742 | ||||
Net income | 18,870 | 20,751 | 33,277 | 37,728 | ||||
Other comprehensive income (loss): | ||||||||
Foreign currency translation adjustments | -19,068 | 2,893 | -30,519 | 6,898 | ||||
Comprehensive income (loss) | ($198) | $23,644 | $2,758 | $44,626 | ||||
Earnings per share: | ||||||||
Basic (in dollars per share) | $0.60 | $0.60 | $1.05 | $1.09 | ||||
Diluted (in dollars per share) | $0.58 | $0.59 | $1.01 | $1.06 | ||||
Shares used in computing earnings per share: | ||||||||
Basic (in shares) | 31,335 | 34,500 | 31,639 | 34,705 | ||||
Diluted (in shares) | 32,448 | 35,311 | 32,791 | 35,670 | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5 to the condensed consolidated financial statements. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | ||||||
Beginning Balance at Sep. 30, 2014 | $454,614 | $320 | $1,129,317 | ($1,936,095) | $1,284,261 | ($23,189) |
Beginning Balance (in shares) at Sep. 30, 2014 | 32,047 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 20,596 | 20,596 | ||||
Issuance of treasury stock under employee stock plans | -4,139 | 8 | -28,510 | 24,363 | ||
Issuance of treasury stock under employee stock plans (in shares) | 705 | |||||
Tax effect from share-based payment arrangements | 9,306 | 9,306 | ||||
Repurchases of common stock | -100,713 | -14 | -100,699 | |||
Repurchases of common stock (shares) | -1,384 | |||||
Dividends paid | -1,260 | -1,260 | ||||
Net income | 33,277 | 33,277 | ||||
Foreign currency translation adjustments | -30,519 | -30,519 | ||||
Ending Balance at Mar. 31, 2015 | $381,162 | $314 | $1,130,709 | ($2,012,431) | $1,316,278 | ($53,708) |
Ending Balance (in shares) at Mar. 31, 2015 | 31,368 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 |
Cash flows from operating activities: | ||
Net income | $33,277 | $37,728 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 17,047 | 16,012 |
Share-based compensation | 20,596 | 16,286 |
Deferred income taxes | 2,453 | -5,073 |
Tax effect from share-based payment arrangements | 9,306 | 4,697 |
Excess tax benefits from share-based payment arrangements | -8,616 | -5,078 |
Provision for doubtful accounts, net | 0 | 591 |
Net loss on sales of property and equipment | 12 | 3 |
Changes in operating assets and liabilities: | ||
Accounts receivable | -15,072 | 3,687 |
Prepaid expenses and other assets | -15,777 | 930 |
Accounts payable | 10,655 | -734 |
Accrued compensation and employee benefits | -18,912 | -2,740 |
Other liabilities | -6,948 | 4,651 |
Deferred revenue | 15,261 | 4,127 |
Net cash provided by operating activities | 43,282 | 75,087 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -10,251 | -4,296 |
Cash paid for acquisitions, net of cash acquired | -56,621 | 0 |
Distribution from cost method investees | 75 | 0 |
Net cash used in investing activities | -66,797 | -4,296 |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 152,000 | 23,000 |
Payments on revolving line of credit | -40,000 | -10,000 |
Proceeds from issuance of treasury stock under employee stock plans | 11,853 | 13,256 |
Taxes paid related to net share settlement of equity awards | -15,992 | -9,571 |
Dividends paid | -1,260 | -1,390 |
Repurchases of common stock | -100,713 | -67,141 |
Excess tax benefits from share-based payment arrangements | 8,616 | 5,078 |
Net cash provided by (used in) financing activities | 14,504 | -46,768 |
Effect of exchange rate changes on cash | -9,223 | 975 |
Increase (decrease) in cash and cash equivalents | -18,234 | 24,998 |
Cash and cash equivalents, beginning of period | 105,075 | 83,178 |
Cash and cash equivalents, end of period | 86,841 | 108,176 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 24,496 | 9,819 |
Cash paid for interest | 14,709 | 13,983 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | $4,742 | $462 |
Nature_of_Business
Nature of Business | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business |
Fair Isaac Corporation | |
Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. | |
In these condensed consolidated financial statements, 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 in this Form 10-Q all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q 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 year ended September 30, 2014. 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; 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. | |
New Accounting Pronouncements Recently Issued or Adopted | |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Early adoption is not permitted. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2016, which means it will be effective for our fiscal year beginning October 1, 2017. We have not yet selected a transition method and we are currently evaluating the impact that the updated standard will have on our consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance" ("ASU 2015-03"), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which means it will be effective for our fiscal year beginning October 1, 2016. Early adoption is permitted. We do not believe that adoption of ASU 2015-03 will have a significant impact on our consolidated financial statements. |
Business_Combinations
Business Combinations | 6 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Business Combinations | Business Combinations | ||||
On January 12, 2015, we acquired 100% of the equity of TONBELLER Aktiengesellschaft ("TONBELLER"). TONBELLER is an innovative provider of financial crime and compliance ("FCC") solutions that support the demanding regulatory compliance requirements of more than a thousand banks and commercial organizations. This acquisition will allow us to capitalize on the escalating demand for new, risk-based, integrated FCC solutions. | |||||
The purchase price allocation as of the date of the acquisition was based on a preliminary valuation and is subject to revision as more detailed analyses are completed and additional information about the fair value of assets acquired and liabilities assumed become available. The major classes of assets and liabilities to which we have preliminarily allocated the purchase price are as follows: | |||||
(In thousands) | |||||
Consideration | |||||
Cash | $ | 59,640 | |||
Acquisition-related costs (included in the company’s condensed consolidated statement of income for the quarter and six months ended March 31, 2015 as a component of selling, general and administrative expenses) | $ | 486 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | $ | 2,640 | |||
Accounts receivable, net | 5,389 | ||||
Prepaid expenses and other current assets | 209 | ||||
Intangible assets: | |||||
Completed technology | 2,700 | ||||
Customer relationships | 11,600 | ||||
Trade names | 600 | ||||
Other assets | 112 | ||||
Accounts payable | (1,118 | ) | |||
Accrued compensation and employee benefits | (1,493 | ) | |||
Other accrued liabilities | (2,838 | ) | |||
Deferred income taxes | (4,349 | ) | |||
Total identifiable net assets | 13,452 | ||||
Goodwill | 46,188 | ||||
Total | $ | 59,640 | |||
The acquired identifiable intangible assets have a weighted average useful life of approximately 4.9 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, five years; customer relationships, five years; and trade names, three years. The goodwill of $46.2 million arising from the acquisition consists largely of the revenue synergies related to market expansion and more rapid innovation for our solutions. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. TONBELLER has been included in our operating results since the acquisition date. The pro forma impact of this acquisition was not deemed material to our results of operations. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value Measurements | Fair Value Measurements | |||||||
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. | ||||||||
• | Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities. | |||||||
• | Level 2 - uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We do not have any assets that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2015 and September 30, 2014. | |||||||
• | Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2015 and September 30, 2014. | |||||||
The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2015 and September 30, 2014: | ||||||||
31-Mar-15 | Active Markets for | Fair Value as of March 31, 2015 | ||||||
Identical Instruments | ||||||||
(Level 1) | ||||||||
(In thousands) | ||||||||
Assets: | ||||||||
Cash equivalents (1) | $ | 439 | $ | 439 | ||||
Marketable securities (2) | 9,706 | 9,706 | ||||||
Total | $ | 10,145 | $ | 10,145 | ||||
30-Sep-14 | Active Markets for | Fair Value as of September 30, 2014 | ||||||
Identical Instruments | ||||||||
(Level 1) | ||||||||
(In thousands) | ||||||||
Assets: | ||||||||
Cash equivalents (1) | $ | 10,326 | $ | 10,326 | ||||
Marketable securities (2) | 8,751 | 8,751 | ||||||
Total | $ | 19,077 | $ | 19,077 | ||||
-1 | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. Not included in these tables are cash deposits of $86.4 million and $94.7 million at March 31, 2015 and September 30, 2014, 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 available for sale on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. | |||||||
Where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing applies to our Level 1 investments. To the extent quoted prices in active markets for assets or liabilities are not available, the valuation techniques used to measure the fair values of our financial assets incorporate market inputs, which include reported trades, broker/dealer quotes, benchmark yields, issuer spreads, benchmark securities and other inputs derived from or corroborated by observable market data. This methodology would apply to our Level 2 investments. We have not changed our valuation techniques in measuring the fair value of any financial assets and liabilities during the period. | ||||||||
For the fair value of our derivative instruments and senior notes, see Note 4 and Note 8 to the condensed consolidated financial statements, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 Canadian 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, 2015 and September 30, 2014: | ||||||||||||||||
March 31, 2015 | ||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||
Foreign | US$ | US$ | ||||||||||||||
Currency | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sell foreign currency: | ||||||||||||||||
Canadian dollar (CAD) | CAD | 7,550 | $ | 5,923 | $ | — | ||||||||||
Euro (EUR) | EUR | 6,050 | $ | 6,508 | $ | — | ||||||||||
Buy foreign currency: | ||||||||||||||||
British pound (GBP) | GBP | 6,366 | $ | 9,400 | $ | — | ||||||||||
September 30, 2014 | ||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||
Foreign | US$ | US$ | ||||||||||||||
Currency | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sell foreign currency: | ||||||||||||||||
Canadian dollar (CAD) | CAD | 3,300 | $ | 2,960 | $ | — | ||||||||||
Euro (EUR) | EUR | 3,800 | $ | 4,790 | $ | — | ||||||||||
Buy foreign currency: | ||||||||||||||||
British pound (GBP) | GBP | 6,795 | $ | 11,000 | $ | — | ||||||||||
The foreign currency forward contracts were entered into on March 31, 2015 and September 30, 2014, respectively; therefore, their fair value was $0 on each of these dates. | ||||||||||||||||
Gains (losses) on derivative financial instruments are 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, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Gains (losses) on Foreign currency forward contracts | $ | (10 | ) | $ | 194 | $ | (339 | ) | $ | 532 | ||||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Goodwill and Intangible Assets | Goodwill and Intangible Assets | |||||||||||||||
Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: | ||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenues | $ | 1,901 | $ | 1,823 | $ | 3,737 | $ | 3,622 | ||||||||
Selling, general and administrative expenses | 1,614 | 1,085 | 2,710 | 2,299 | ||||||||||||
$ | 3,515 | $ | 2,908 | $ | 6,447 | $ | 5,921 | |||||||||
Cost of revenues reflects our amortization of completed technology and selling, general and administrative expenses reflects our amortization of other intangible assets. Intangible assets, gross were $152.6 million and $142.2 million as of March 31, 2015 and September 30, 2014, respectively. | ||||||||||||||||
Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2015, was as follows (in thousands): | ||||||||||||||||
Year Ended September 30, | ||||||||||||||||
2015 (excluding the six months ended March 31, 2015) | $ | 7,091 | ||||||||||||||
2016 | 13,953 | |||||||||||||||
2017 | 12,850 | |||||||||||||||
2018 | 5,898 | |||||||||||||||
2019 | 5,385 | |||||||||||||||
Thereafter | 8,405 | |||||||||||||||
$ | 53,582 | |||||||||||||||
The following table summarizes changes to goodwill during the six months ended March 31, 2015, both in total and as allocated to our segments: | ||||||||||||||||
Applications | Scores | Tools | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at September 30, 2014 | $ | 560,295 | $ | 146,648 | $ | 72,985 | $ | 779,928 | ||||||||
Addition from acquisitions | 46,188 | — | — | 46,188 | ||||||||||||
Foreign currency translation adjustment | (14,695 | ) | — | (2,304 | ) | (16,999 | ) | |||||||||
Balance at March 31, 2015 | $ | 591,788 | $ | 146,648 | $ | 70,681 | $ | 809,117 | ||||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions | |||||||
The following table summarizes property and equipment, and the related accumulated depreciation and amortization at March 31, 2015 and September 30, 2014: | ||||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Property and equipment | $ | 165,485 | $ | 164,548 | ||||
Less: accumulated depreciation and amortization | (125,474 | ) | (127,871 | ) | ||||
$ | 40,011 | $ | 36,677 | |||||
Revolving_Line_of_Credit
Revolving Line of Credit | 6 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit |
We have a $400 million unsecured revolving line of credit with a syndicate of banks that expires on December 30, 2019. 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 minimum fixed charge ratio of 2.5 and a maximum consolidated leverage ratio of 3.0, subject to a step up to 3.5 following certain permitted acquisitions. The credit agreement also contains other covenants typical of unsecured facilities. As of March 31, 2015, we had $211.0 million in borrowings outstanding at a weighted average interest rate of 1.555%, of which $200.0 million was classified as a long-term liability and recorded in long-term debt within the accompanying condensed consolidated balance sheets. We were in compliance with all financial covenants under this credit facility as of March 31, 2015. |
Senior_Notes
Senior Notes | 6 Months Ended |
Mar. 31, 2015 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes |
On May 7, 2008, we issued $275 million of senior notes in a private placement to a group of institutional investors (the “2008 Senior Notes”). The 2008 Senior Notes were issued in four series with maturities ranging from 5 to 10 years. The outstanding 2008 Senior Notes’ weighted average interest rate is 7.0% and the weighted average maturity is 9.0 years. On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes” and, with the 2008 Senior Notes, the “Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The 2010 Senior Notes’ weighted average interest rate is 5.2% and the weighted average maturity is 8.0 years. The Senior Notes require interest payments semi-annually and also include certain restrictive covenants. As of March 31, 2015, we were in compliance with all financial covenants which include the maintenance of consolidated net debt to consolidated EBITDA ratio and a fixed charge coverage ratio. The issuance of the Senior Notes also required us to make certain covenants typical of unsecured facilities. The carrying value of the Senior Notes was $447.0 million as of March 31, 2015 and September 30, 2014. The fair value of the Senior Notes was $465.8 million and $462.7 million as of March 31, 2015 and September 30, 2014, respectively. We measure the fair value of the Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. |
Restructuring_Expenses
Restructuring Expenses | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Restructuring Expenses | Restructuring Expenses | |||||||||||
The following table summarizes our restructuring accruals and certain FICO facility closures. There is no restructuring accrual as of March 31, 2015. | ||||||||||||
Accrual at | Cash | Accrual at | ||||||||||
30-Sep-14 | Payments | 31-Mar-15 | ||||||||||
(In thousands) | ||||||||||||
Facilities charges | $ | 92 | $ | (92 | ) | $ | — | |||||
Employee separation | 170 | (170 | ) | — | ||||||||
$ | 262 | $ | (262 | ) | $ | — | ||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
Effective Tax Rate | |
The effective income tax rate was 27.5% and 33.7% during the quarters ended March 31, 2015 and 2014, respectively and 25.0% and 35.5% during the six months ended March 31, 2015 and 2014, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the respective 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 decrease in our effective tax rate year over year was primarily due to the retroactive extension of the U.S. Federal Research and Development Credit through 2014, which was enacted during the first quarter of our fiscal 2015, as well as a higher percentage of revenue expected in lower taxing jurisdictions. | |
The total unrecognized tax benefit for uncertain tax positions is estimated to be approximately $5.0 million and $4.6 million at March 31, 2015 and September 30, 2014, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.6 million and $0.5 million, related to unrecognized tax benefits as of March 31, 2015 and September 30, 2014, respectively. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 months ended March 31, 2015 and 2014: | ||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator for diluted and basic earnings per share: | ||||||||||||||||
Net Income | $ | 18,870 | $ | 20,751 | $ | 33,277 | $ | 37,728 | ||||||||
Denominator - share: | ||||||||||||||||
Basic weighted-average shares | 31,335 | 34,500 | 31,639 | 34,705 | ||||||||||||
Effect of dilutive securities | 1,113 | 811 | 1,152 | 965 | ||||||||||||
Diluted weighted-average shares | 32,448 | 35,311 | 32,791 | 35,670 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.6 | $ | 1.05 | $ | 1.09 | ||||||||
Diluted | $ | 0.58 | $ | 0.59 | $ | 1.01 | $ | 1.06 | ||||||||
We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the options’ exercise price exceeds the average market price of our common stock as their inclusion would be antidilutive. There were approximately 46,000 and 14,000 options excluded for the quarters ended March 31, 2015 and 2014, respectively. There were approximately 270,000 and 7,000 options excluded for the six months ended March 31, 2015 and 2014, respectively. |
Segment_Information
Segment Information | 6 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
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. Our Applications products are pre-configured decision management applications and associated professional services, designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud and insurance claims management. | |||||||||||||||||||
• | Scores. This segment includes our business-to-business scoring solutions, our 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 are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly. | |||||||||||||||||||
• | Tools. The Tools segment is composed of software tools and associated professional services that clients can use to create their own custom decision management applications. | |||||||||||||||||||
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 or capital expenditures; rather, 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 months ended March 31, 2015 and 2014: | ||||||||||||||||||||
Quarter Ended March 31, 2015 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 80,315 | $ | 47,814 | $ | 10,554 | $ | — | $ | 138,683 | ||||||||||
Professional services | 30,992 | 966 | 5,988 | — | 37,946 | |||||||||||||||
License | 23,081 | 1,157 | 6,242 | — | 30,480 | |||||||||||||||
Total segment revenues | 134,388 | 49,937 | 22,784 | — | 207,109 | |||||||||||||||
Segment operating expense | (95,035 | ) | (14,618 | ) | (27,987 | ) | (19,753 | ) | (157,393 | ) | ||||||||||
Segment operating income (loss) | $ | 39,353 | $ | 35,319 | $ | (5,203 | ) | $ | (19,753 | ) | 49,716 | |||||||||
Unallocated share-based compensation expense | (11,802 | ) | ||||||||||||||||||
Unallocated amortization expense | (3,515 | ) | ||||||||||||||||||
Operating income | 34,399 | |||||||||||||||||||
Unallocated interest expense, net | (7,718 | ) | ||||||||||||||||||
Unallocated other expense, net | (648 | ) | ||||||||||||||||||
Income before income taxes | $ | 26,033 | ||||||||||||||||||
Depreciation expense | $ | 3,706 | $ | 227 | $ | 807 | $ | 685 | $ | 5,425 | ||||||||||
Quarter Ended March 31, 2014 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 76,898 | $ | 46,560 | $ | 8,911 | $ | — | $ | 132,369 | ||||||||||
Professional services | 28,373 | 777 | 5,469 | — | 34,619 | |||||||||||||||
License | 10,339 | 521 | 7,614 | — | 18,474 | |||||||||||||||
Total segment revenues | 115,610 | 47,858 | 21,994 | — | 185,462 | |||||||||||||||
Segment operating expense | (78,951 | ) | (10,939 | ) | (20,804 | ) | (24,072 | ) | (134,766 | ) | ||||||||||
Segment operating income | $ | 36,659 | $ | 36,919 | $ | 1,190 | $ | (24,072 | ) | 50,696 | ||||||||||
Unallocated share-based compensation expense | (9,051 | ) | ||||||||||||||||||
Unallocated amortization expense | (2,908 | ) | ||||||||||||||||||
Operating income | 38,737 | |||||||||||||||||||
Unallocated interest expense, net | (7,099 | ) | ||||||||||||||||||
Unallocated other expense, net | (351 | ) | ||||||||||||||||||
Income before income taxes | $ | 31,287 | ||||||||||||||||||
Depreciation expense | $ | 3,461 | $ | 198 | $ | 622 | $ | 656 | $ | 4,937 | ||||||||||
Six Months Ended March 31, 2015 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 158,866 | $ | 90,751 | $ | 20,476 | $ | — | $ | 270,093 | ||||||||||
Professional services | 59,491 | 1,754 | 11,899 | — | 73,144 | |||||||||||||||
License | 31,529 | 1,373 | 20,520 | — | 53,422 | |||||||||||||||
Total segment revenues | 249,886 | 93,878 | 52,895 | — | 396,659 | |||||||||||||||
Segment operating expense | (183,929 | ) | (27,510 | ) | (57,526 | ) | (41,372 | ) | (310,337 | ) | ||||||||||
Segment operating income (loss) | $ | 65,957 | $ | 66,368 | $ | (4,631 | ) | $ | (41,372 | ) | 86,322 | |||||||||
Unallocated share-based compensation expense | (20,596 | ) | ||||||||||||||||||
Unallocated amortization expense | (6,447 | ) | ||||||||||||||||||
Operating income | 59,279 | |||||||||||||||||||
Unallocated interest expense, net | (14,923 | ) | ||||||||||||||||||
Unallocated other income, net | 1 | |||||||||||||||||||
Income before income taxes | $ | 44,357 | ||||||||||||||||||
Depreciation expense | $ | 7,214 | $ | 444 | $ | 1,590 | $ | 1,352 | $ | 10,600 | ||||||||||
Six Months Ended March 31, 2014 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 154,677 | $ | 89,878 | $ | 17,469 | — | $ | 262,024 | |||||||||||
Professional services | 55,160 | 1,366 | 12,379 | — | 68,905 | |||||||||||||||
License | 17,689 | 3,794 | 17,393 | — | 38,876 | |||||||||||||||
Total segment revenues | 227,526 | 95,038 | 47,241 | — | 369,805 | |||||||||||||||
Segment operating expense | (160,913 | ) | (21,314 | ) | (41,875 | ) | (45,829 | ) | (269,931 | ) | ||||||||||
Segment operating income | $ | 66,613 | $ | 73,724 | $ | 5,366 | $ | (45,829 | ) | 99,874 | ||||||||||
Unallocated share-based compensation expense | (16,286 | ) | ||||||||||||||||||
Unallocated amortization expense | (5,921 | ) | ||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,660 | ) | ||||||||||||||||||
Operating income | 74,007 | |||||||||||||||||||
Unallocated interest expense, net | (14,225 | ) | ||||||||||||||||||
Unallocated other expense, net | (1,312 | ) | ||||||||||||||||||
Income before income taxes | $ | 58,470 | ||||||||||||||||||
Depreciation expense | $ | 7,098 | $ | 410 | $ | 1,236 | $ | 1,347 | $ | 10,091 | ||||||||||
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies |
We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have material exposure on an aggregate basis. |
Nature_of_Business_Policies
Nature of Business (Policies) | 6 Months Ended |
Mar. 31, 2015 | |
Accounting Policies [Abstract] | |
Fair Isaac Corporation | Fair Isaac Corporation |
Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. | |
In these condensed consolidated financial statements, 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 in this Form 10-Q all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q 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 year ended September 30, 2014. 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; 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. | |
New Accounting Pronouncements Recently Issued or Adopted | New Accounting Pronouncements Recently Issued or Adopted |
In May 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, "Revenue from Contracts with Customers (Topic 606)" ("ASU 2014-09"). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. Early adoption is not permitted. ASU 2014-09 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2016, which means it will be effective for our fiscal year beginning October 1, 2017. We have not yet selected a transition method and we are currently evaluating the impact that the updated standard will have on our consolidated financial statements. | |
In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance" ("ASU 2015-03"), which changes the presentation of debt issuance costs in financial statements. Under ASU 2015-03, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. ASU 2015-03 is effective for fiscal years and interim periods within those fiscal years, beginning after December 15, 2015, which means it will be effective for our fiscal year beginning October 1, 2016. Early adoption is permitted. We do not believe that adoption of ASU 2015-03 will have a significant impact on our consolidated financial statements. |
Business_Combinations_Tables
Business Combinations (Tables) | 6 Months Ended | ||||
Mar. 31, 2015 | |||||
Business Combinations [Abstract] | |||||
Schedule of Business Acquisitions | The major classes of assets and liabilities to which we have preliminarily allocated the purchase price are as follows: | ||||
(In thousands) | |||||
Consideration | |||||
Cash | $ | 59,640 | |||
Acquisition-related costs (included in the company’s condensed consolidated statement of income for the quarter and six months ended March 31, 2015 as a component of selling, general and administrative expenses) | $ | 486 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | $ | 2,640 | |||
Accounts receivable, net | 5,389 | ||||
Prepaid expenses and other current assets | 209 | ||||
Intangible assets: | |||||
Completed technology | 2,700 | ||||
Customer relationships | 11,600 | ||||
Trade names | 600 | ||||
Other assets | 112 | ||||
Accounts payable | (1,118 | ) | |||
Accrued compensation and employee benefits | (1,493 | ) | |||
Other accrued liabilities | (2,838 | ) | |||
Deferred income taxes | (4,349 | ) | |||
Total identifiable net assets | 13,452 | ||||
Goodwill | 46,188 | ||||
Total | $ | 59,640 | |||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Fair Value Disclosures [Abstract] | ||||||||
Fair Value, Assets Measured on Recurring Basis | The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2015 and September 30, 2014: | |||||||
31-Mar-15 | Active Markets for | Fair Value as of March 31, 2015 | ||||||
Identical Instruments | ||||||||
(Level 1) | ||||||||
(In thousands) | ||||||||
Assets: | ||||||||
Cash equivalents (1) | $ | 439 | $ | 439 | ||||
Marketable securities (2) | 9,706 | 9,706 | ||||||
Total | $ | 10,145 | $ | 10,145 | ||||
30-Sep-14 | Active Markets for | Fair Value as of September 30, 2014 | ||||||
Identical Instruments | ||||||||
(Level 1) | ||||||||
(In thousands) | ||||||||
Assets: | ||||||||
Cash equivalents (1) | $ | 10,326 | $ | 10,326 | ||||
Marketable securities (2) | 8,751 | 8,751 | ||||||
Total | $ | 19,077 | $ | 19,077 | ||||
-1 | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. Not included in these tables are cash deposits of $86.4 million and $94.7 million at March 31, 2015 and September 30, 2014, respectively. | |||||||
-2 | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities available for sale on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2015 and September 30, 2014: | |||||||||||||||
March 31, 2015 | ||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||
Foreign | US$ | US$ | ||||||||||||||
Currency | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sell foreign currency: | ||||||||||||||||
Canadian dollar (CAD) | CAD | 7,550 | $ | 5,923 | $ | — | ||||||||||
Euro (EUR) | EUR | 6,050 | $ | 6,508 | $ | — | ||||||||||
Buy foreign currency: | ||||||||||||||||
British pound (GBP) | GBP | 6,366 | $ | 9,400 | $ | — | ||||||||||
September 30, 2014 | ||||||||||||||||
Contract Amount | Fair Value | |||||||||||||||
Foreign | US$ | US$ | ||||||||||||||
Currency | ||||||||||||||||
(In thousands) | ||||||||||||||||
Sell foreign currency: | ||||||||||||||||
Canadian dollar (CAD) | CAD | 3,300 | $ | 2,960 | $ | — | ||||||||||
Euro (EUR) | EUR | 3,800 | $ | 4,790 | $ | — | ||||||||||
Buy foreign currency: | ||||||||||||||||
British pound (GBP) | GBP | 6,795 | $ | 11,000 | $ | — | ||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | Gains (losses) on derivative financial instruments are 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, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Gains (losses) on Foreign currency forward contracts | $ | (10 | ) | $ | 194 | $ | (339 | ) | $ | 532 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||
Schedule of Amortization Expense | Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: | |||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands) | ||||||||||||||||
Cost of revenues | $ | 1,901 | $ | 1,823 | $ | 3,737 | $ | 3,622 | ||||||||
Selling, general and administrative expenses | 1,614 | 1,085 | 2,710 | 2,299 | ||||||||||||
$ | 3,515 | $ | 2,908 | $ | 6,447 | $ | 5,921 | |||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2015, was as follows (in thousands): | |||||||||||||||
Year Ended September 30, | ||||||||||||||||
2015 (excluding the six months ended March 31, 2015) | $ | 7,091 | ||||||||||||||
2016 | 13,953 | |||||||||||||||
2017 | 12,850 | |||||||||||||||
2018 | 5,898 | |||||||||||||||
2019 | 5,385 | |||||||||||||||
Thereafter | 8,405 | |||||||||||||||
$ | 53,582 | |||||||||||||||
Schedule of Goodwill | The following table summarizes changes to goodwill during the six months ended March 31, 2015, both in total and as allocated to our segments: | |||||||||||||||
Applications | Scores | Tools | Total | |||||||||||||
(In thousands) | ||||||||||||||||
Balance at September 30, 2014 | $ | 560,295 | $ | 146,648 | $ | 72,985 | $ | 779,928 | ||||||||
Addition from acquisitions | 46,188 | — | — | 46,188 | ||||||||||||
Foreign currency translation adjustment | (14,695 | ) | — | (2,304 | ) | (16,999 | ) | |||||||||
Balance at March 31, 2015 | $ | 591,788 | $ | 146,648 | $ | 70,681 | $ | 809,117 | ||||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended | |||||||
Mar. 31, 2015 | ||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||
Property, Plant and Equipment | The following table summarizes property and equipment, and the related accumulated depreciation and amortization at March 31, 2015 and September 30, 2014: | |||||||
March 31, | September 30, | |||||||
2015 | 2014 | |||||||
(In thousands) | ||||||||
Property and equipment | $ | 165,485 | $ | 164,548 | ||||
Less: accumulated depreciation and amortization | (125,474 | ) | (127,871 | ) | ||||
$ | 40,011 | $ | 36,677 | |||||
Restructuring_Expenses_Tables
Restructuring Expenses (Tables) | 6 Months Ended | |||||||||||
Mar. 31, 2015 | ||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||
Schedule of Restructuring and Related Costs | The following table summarizes our restructuring accruals and certain FICO facility closures. There is no restructuring accrual as of March 31, 2015. | |||||||||||
Accrual at | Cash | Accrual at | ||||||||||
30-Sep-14 | Payments | 31-Mar-15 | ||||||||||
(In thousands) | ||||||||||||
Facilities charges | $ | 92 | $ | (92 | ) | $ | — | |||||
Employee separation | 170 | (170 | ) | — | ||||||||
$ | 262 | $ | (262 | ) | $ | — | ||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Mar. 31, 2015 | ||||||||||||||||
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 months ended March 31, 2015 and 2014: | |||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||
(In thousands, except per share data) | ||||||||||||||||
Numerator for diluted and basic earnings per share: | ||||||||||||||||
Net Income | $ | 18,870 | $ | 20,751 | $ | 33,277 | $ | 37,728 | ||||||||
Denominator - share: | ||||||||||||||||
Basic weighted-average shares | 31,335 | 34,500 | 31,639 | 34,705 | ||||||||||||
Effect of dilutive securities | 1,113 | 811 | 1,152 | 965 | ||||||||||||
Diluted weighted-average shares | 32,448 | 35,311 | 32,791 | 35,670 | ||||||||||||
Earnings per share: | ||||||||||||||||
Basic | $ | 0.6 | $ | 0.6 | $ | 1.05 | $ | 1.09 | ||||||||
Diluted | $ | 0.58 | $ | 0.59 | $ | 1.01 | $ | 1.06 | ||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | |||||||||||||||||||
Mar. 31, 2015 | ||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following tables summarize segment information for the quarters and six months ended March 31, 2015 and 2014: | |||||||||||||||||||
Quarter Ended March 31, 2015 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 80,315 | $ | 47,814 | $ | 10,554 | $ | — | $ | 138,683 | ||||||||||
Professional services | 30,992 | 966 | 5,988 | — | 37,946 | |||||||||||||||
License | 23,081 | 1,157 | 6,242 | — | 30,480 | |||||||||||||||
Total segment revenues | 134,388 | 49,937 | 22,784 | — | 207,109 | |||||||||||||||
Segment operating expense | (95,035 | ) | (14,618 | ) | (27,987 | ) | (19,753 | ) | (157,393 | ) | ||||||||||
Segment operating income (loss) | $ | 39,353 | $ | 35,319 | $ | (5,203 | ) | $ | (19,753 | ) | 49,716 | |||||||||
Unallocated share-based compensation expense | (11,802 | ) | ||||||||||||||||||
Unallocated amortization expense | (3,515 | ) | ||||||||||||||||||
Operating income | 34,399 | |||||||||||||||||||
Unallocated interest expense, net | (7,718 | ) | ||||||||||||||||||
Unallocated other expense, net | (648 | ) | ||||||||||||||||||
Income before income taxes | $ | 26,033 | ||||||||||||||||||
Depreciation expense | $ | 3,706 | $ | 227 | $ | 807 | $ | 685 | $ | 5,425 | ||||||||||
Quarter Ended March 31, 2014 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 76,898 | $ | 46,560 | $ | 8,911 | $ | — | $ | 132,369 | ||||||||||
Professional services | 28,373 | 777 | 5,469 | — | 34,619 | |||||||||||||||
License | 10,339 | 521 | 7,614 | — | 18,474 | |||||||||||||||
Total segment revenues | 115,610 | 47,858 | 21,994 | — | 185,462 | |||||||||||||||
Segment operating expense | (78,951 | ) | (10,939 | ) | (20,804 | ) | (24,072 | ) | (134,766 | ) | ||||||||||
Segment operating income | $ | 36,659 | $ | 36,919 | $ | 1,190 | $ | (24,072 | ) | 50,696 | ||||||||||
Unallocated share-based compensation expense | (9,051 | ) | ||||||||||||||||||
Unallocated amortization expense | (2,908 | ) | ||||||||||||||||||
Operating income | 38,737 | |||||||||||||||||||
Unallocated interest expense, net | (7,099 | ) | ||||||||||||||||||
Unallocated other expense, net | (351 | ) | ||||||||||||||||||
Income before income taxes | $ | 31,287 | ||||||||||||||||||
Depreciation expense | $ | 3,461 | $ | 198 | $ | 622 | $ | 656 | $ | 4,937 | ||||||||||
Six Months Ended March 31, 2015 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 158,866 | $ | 90,751 | $ | 20,476 | $ | — | $ | 270,093 | ||||||||||
Professional services | 59,491 | 1,754 | 11,899 | — | 73,144 | |||||||||||||||
License | 31,529 | 1,373 | 20,520 | — | 53,422 | |||||||||||||||
Total segment revenues | 249,886 | 93,878 | 52,895 | — | 396,659 | |||||||||||||||
Segment operating expense | (183,929 | ) | (27,510 | ) | (57,526 | ) | (41,372 | ) | (310,337 | ) | ||||||||||
Segment operating income (loss) | $ | 65,957 | $ | 66,368 | $ | (4,631 | ) | $ | (41,372 | ) | 86,322 | |||||||||
Unallocated share-based compensation expense | (20,596 | ) | ||||||||||||||||||
Unallocated amortization expense | (6,447 | ) | ||||||||||||||||||
Operating income | 59,279 | |||||||||||||||||||
Unallocated interest expense, net | (14,923 | ) | ||||||||||||||||||
Unallocated other income, net | 1 | |||||||||||||||||||
Income before income taxes | $ | 44,357 | ||||||||||||||||||
Depreciation expense | $ | 7,214 | $ | 444 | $ | 1,590 | $ | 1,352 | $ | 10,600 | ||||||||||
Six Months Ended March 31, 2014 | ||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | ||||||||||||||||
Corporate | ||||||||||||||||||||
Expenses | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
Segment revenues: | ||||||||||||||||||||
Transactional and maintenance | $ | 154,677 | $ | 89,878 | $ | 17,469 | — | $ | 262,024 | |||||||||||
Professional services | 55,160 | 1,366 | 12,379 | — | 68,905 | |||||||||||||||
License | 17,689 | 3,794 | 17,393 | — | 38,876 | |||||||||||||||
Total segment revenues | 227,526 | 95,038 | 47,241 | — | 369,805 | |||||||||||||||
Segment operating expense | (160,913 | ) | (21,314 | ) | (41,875 | ) | (45,829 | ) | (269,931 | ) | ||||||||||
Segment operating income | $ | 66,613 | $ | 73,724 | $ | 5,366 | $ | (45,829 | ) | 99,874 | ||||||||||
Unallocated share-based compensation expense | (16,286 | ) | ||||||||||||||||||
Unallocated amortization expense | (5,921 | ) | ||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,660 | ) | ||||||||||||||||||
Operating income | 74,007 | |||||||||||||||||||
Unallocated interest expense, net | (14,225 | ) | ||||||||||||||||||
Unallocated other expense, net | (1,312 | ) | ||||||||||||||||||
Income before income taxes | $ | 58,470 | ||||||||||||||||||
Depreciation expense | $ | 7,098 | $ | 410 | $ | 1,236 | $ | 1,347 | $ | 10,091 | ||||||||||
Business_Combinations_Addition
Business Combinations - Additional Information (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 12, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Business Acquisition [Line Items] | |||
Goodwill | $809,117 | $779,928 | |
TONBELLER | |||
Business Acquisition [Line Items] | |||
Common stock acquired (percent) | 100.00% | ||
Number of customers (more than a thousand) | 1,000 | ||
Weighted average useful life | 4 years 11 months | ||
Goodwill | $46,188 | ||
Completed technology | TONBELLER | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 5 years | ||
Customer relationships | TONBELLER | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 5 years | ||
Trade names | TONBELLER | |||
Business Acquisition [Line Items] | |||
Weighted average useful life | 3 years |
Summary_of_Assets_Acquired_and
Summary of Assets Acquired and Liabilities Assumed (Details) (USD $) | 0 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 12, 2015 | Mar. 31, 2015 | Sep. 30, 2014 |
Intangible assets | |||
Goodwill | $809,117 | $779,928 | |
TONBELLER | |||
Consideration | |||
Cash | 59,640 | ||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||
Cash and cash equivalents | 2,640 | ||
Accounts receivable, net | 5,389 | ||
Prepaid expenses and other current assets | 209 | ||
Intangible assets | |||
Other assets | 112 | ||
Accounts payable | -1,118 | ||
Accrued compensation and employee benefits | -1,493 | ||
Other accrued liabilities | -2,838 | ||
Deferred income taxes | -4,349 | ||
Total identifiable net assets | 13,452 | ||
Goodwill | 46,188 | ||
Total | 59,640 | ||
TONBELLER | Restructuring and acquisition-related expense | |||
Consideration | |||
Acquisition-related costs | 486 | ||
TONBELLER | Completed technology | |||
Intangible assets | |||
Intangible assets: | 2,700 | ||
TONBELLER | Customer relationships | |||
Intangible assets | |||
Intangible assets: | 11,600 | ||
TONBELLER | Trade names | |||
Intangible assets | |||
Intangible assets: | $600 |
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 | ||
Assets: | ||||
Marketable securities available-for-sale | $9,706,000 | $8,751,000 | ||
Cash deposits | 86,400,000 | 94,700,000 | ||
Fair Value, Measurements, Recurring | ||||
Assets: | ||||
Cash equivalents | 439,000 | [1] | 10,326,000 | [1] |
Marketable securities available-for-sale | 9,706,000 | [2] | 8,751,000 | [2] |
Total | 10,145,000 | 19,077,000 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | ||||
Assets: | ||||
Cash equivalents | 439,000 | [1] | 10,326,000 | [1] |
Marketable securities available-for-sale | 9,706,000 | [2] | 8,751,000 | [2] |
Total | $10,145,000 | $19,077,000 | ||
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. Not included in these tables are cash deposits of $86.4 million and $94.7 million at March 31, 2015 and September 30, 2014, 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 available for sale on our condensed consolidated balance sheet at March 31, 2015 and September 30, 2014. |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 6 Months Ended | |
Mar. 31, 2015 | Sep. 30, 2014 | |
Derivative [Line Items] | ||
Short-term forward contracts, average maturities at inception | 3 months | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Forward foreign currency contracts fair value | 0 | $0 |
Summary_of_Outstanding_Forward
Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 | Mar. 31, 2015 | Sep. 30, 2014 | Mar. 31, 2015 | Mar. 31, 2015 | Sep. 30, 2014 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars |
USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | |
Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | |||||||
Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | |||||||
USD ($) | CAD | USD ($) | CAD | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | GBP (£) | |||||||
Derivative [Line Items] | ||||||||||||||||||
Contract amount of forward foreign currency contracts | $5,923 | 7,550 | $2,960 | 3,300 | $6,508 | € 6,050 | $4,790 | € 3,800 | $9,400 | £ 6,366 | $11,000 | £ 6,795 | ||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | $0 | $0 | $0 | $0 | $0 | $0 |
Gains_Losses_on_Derivative_Fin
Gains Losses on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) (Foreign currency forward contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Gains (losses) on Foreign currency forward contracts | ($10) | $194 | ($339) | $532 |
Amortization_Expense_Associate
Amortization Expense Associated with Intangible Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense of intangible assets | $3,515 | [1] | $2,908 | [1] | $6,447 | [1] | $5,921 | [1] |
Cost of revenues | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense of intangible assets | 1,901 | 1,823 | 3,737 | 3,622 | ||||
Selling, general and administrative expenses | ||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||
Amortization expense of intangible assets | $1,614 | $1,085 | $2,710 | $2,299 | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5 to the condensed consolidated financial statements. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, gross | $152.60 | $142.20 |
Estimated_Future_Intangible_As
Estimated Future Intangible Asset Amortization Expense (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Estimated future intangible asset amortization expense | ||
2015 (excluding the six months ended March 31, 2015) | $7,091 | |
2016 | 13,953 | |
2017 | 12,850 | |
2018 | 5,898 | |
2019 | 5,385 | |
Thereafter | 8,405 | |
Total | $53,582 | $47,914 |
Summary_of_Changes_to_Goodwill
Summary of Changes to Goodwill (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Goodwill [Roll Forward] | |
Balance at September 30, 2014 | $779,928 |
Addition from acquisitions | 46,188 |
Foreign currency translation adjustment | -16,999 |
Balance at March 31, 2015 | 809,117 |
Applications | |
Goodwill [Roll Forward] | |
Balance at September 30, 2014 | 560,295 |
Addition from acquisitions | 46,188 |
Foreign currency translation adjustment | -14,695 |
Balance at March 31, 2015 | 591,788 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2014 | 146,648 |
Addition from acquisitions | 0 |
Foreign currency translation adjustment | 0 |
Balance at March 31, 2015 | 146,648 |
Tools | |
Goodwill [Roll Forward] | |
Balance at September 30, 2014 | 72,985 |
Addition from acquisitions | 0 |
Foreign currency translation adjustment | -2,304 |
Balance at March 31, 2015 | $70,681 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Mar. 31, 2015 | Sep. 30, 2014 |
In Thousands, unless otherwise specified | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property and equipment | $165,485 | $164,548 |
Less: accumulated depreciation and amortization | -125,474 | -127,871 |
Total | $40,011 | $36,677 |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (USD $) | 6 Months Ended |
Mar. 31, 2015 | |
Line of Credit Facility [Line Items] | |
Unsecured revolving line of credit | $400,000,000 |
Revolving credit facility, expiration date | 30-Dec-19 |
Revolving credit facility, interest rate description | Interest on amounts borrowed under the credit facility is based on (i)Â a base rate, which is the greater of (a)Â the prime rate, (b)Â 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)Â 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 |
Credit facility restrictive covenant, minimum fixed charge ratio | 2.5 |
Credit facility restrictive covenant, maximum consolidated leverage ratio | 3 |
Credit facility restrictive covenant, maximum consolidated leverage ratio step up | 3.5 |
Borrowings outstanding | 211,000,000 |
Interest rate of borrowings outstanding | 1.56% |
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 | 1.88% |
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 | 0.88% |
Long-term Debt [Member] | |
Line of Credit Facility [Line Items] | |
Borrowings outstanding | $200,000,000 |
Senior_Notes_Additional_Inform
Senior Notes - Additional Information (Detail) (USD $) | 0 Months Ended | |||
7-May-08 | Jul. 14, 2010 | Mar. 31, 2015 | Sep. 30, 2014 | |
Debt Instrument [Line Items] | ||||
Senior Notes, weighted average interest rate | 1.56% | |||
Carrying value of Senior Notes | $447,000,000 | $447,000,000 | ||
Fair value of Senior Notes | 465,800,000 | 462,700,000 | ||
May 2008 senior notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | 275,000,000 | |||
Number of series of Senior Notes issued | 4 | |||
Senior Notes, weighted average interest rate | 7.00% | |||
Senior Notes, weighted average maturity (in years) | 9 years | |||
May 2008 senior notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 5 years | |||
May 2008 senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 10 years | |||
July 2010 senior notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $245,000,000 | |||
Number of series of Senior Notes issued | 4 | |||
Senior Notes, weighted average interest rate | 5.20% | |||
Senior Notes, weighted average maturity (in years) | 8 years | |||
July 2010 senior notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 6 years | |||
July 2010 senior notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 10 years |
Summary_of_Restructuring_Accru
Summary of Restructuring Accruals and Certain Facility Closures (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2015 |
Restructuring Reserve [Roll Forward] | |
30-Sep-14 | $262 |
Cash Payments | -262 |
31-Mar-15 | 0 |
Facilities charges | |
Restructuring Reserve [Roll Forward] | |
30-Sep-14 | 92 |
Cash Payments | -92 |
31-Mar-15 | 0 |
Employee separation | |
Restructuring Reserve [Roll Forward] | |
30-Sep-14 | 170 |
Cash Payments | -170 |
31-Mar-15 | $0 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | Sep. 30, 2014 |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 27.50% | 33.70% | 25.00% | 35.50% | |
Unrecognized tax benefits, uncertain tax positions | $5 | $5 | $4.60 | ||
Unrecognized tax benefits, accrued interest | $0.60 | $0.60 | $0.50 |
Reconciliation_of_Numerators_a
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Numerator for diluted and basic earnings per share: | ||||
Net income | $18,870 | $20,751 | $33,277 | $37,728 |
Denominator - share: | ||||
Basic weighted-average shares | 31,335 | 34,500 | 31,639 | 34,705 |
Effect of dilutive securities | 1,113 | 811 | 1,152 | 965 |
Diluted weighted-average shares | 32,448 | 35,311 | 32,791 | 35,670 |
Earnings per share: | ||||
Basic (in dollars per share) | $0.60 | $0.60 | $1.05 | $1.09 |
Diluted (in dollars per share) | $0.58 | $0.59 | $1.01 | $1.06 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 |
Earnings Per Share [Abstract] | ||||
Options to purchase shares of common stock excluded in the computation of diluted earnings per share because their inclusion would be antidilutive, shares | 46 | 14 | 270 | 7 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2015 | |
Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Summary_of_Segment_Information
Summary of Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2015 | Mar. 31, 2014 | Mar. 31, 2015 | Mar. 31, 2014 | ||||
Segment revenues: | ||||||||
Transactional and maintenance | $138,683 | $132,369 | $270,093 | $262,024 | ||||
Professional services | 37,946 | 34,619 | 73,144 | 68,905 | ||||
License | 30,480 | 18,474 | 53,422 | 38,876 | ||||
Total revenues | 207,109 | 185,462 | 396,659 | 369,805 | ||||
Segment operating expense | -172,710 | -146,725 | -337,380 | -295,798 | ||||
Unallocated share-based compensation expense | -11,802 | -9,051 | -20,596 | -16,286 | ||||
Unallocated amortization expense | -3,515 | [1] | -2,908 | [1] | -6,447 | [1] | -5,921 | [1] |
Unallocated restructuring and acquisition-related | 0 | 0 | 0 | -3,660 | ||||
Operating income | 34,399 | 38,737 | 59,279 | 74,007 | ||||
Unallocated interest expense | -7,718 | -7,099 | -14,923 | -14,225 | ||||
Unallocated other income (expense), net | -648 | -351 | 1 | -1,312 | ||||
Income before income taxes | 26,033 | 31,287 | 44,357 | 58,470 | ||||
Depreciation expense | 5,425 | 4,937 | 10,600 | 10,091 | ||||
Operating Segments | ||||||||
Segment revenues: | ||||||||
Segment operating expense | -157,393 | -134,766 | -310,337 | -269,931 | ||||
Operating income | 49,716 | 50,696 | 86,322 | 99,874 | ||||
Applications | ||||||||
Segment revenues: | ||||||||
Transactional and maintenance | 80,315 | 76,898 | 158,866 | 154,677 | ||||
Professional services | 30,992 | 28,373 | 59,491 | 55,160 | ||||
License | 23,081 | 10,339 | 31,529 | 17,689 | ||||
Total revenues | 134,388 | 115,610 | 249,886 | 227,526 | ||||
Depreciation expense | 3,706 | 3,461 | 7,214 | 7,098 | ||||
Applications | Operating Segments | ||||||||
Segment revenues: | ||||||||
Segment operating expense | -95,035 | -78,951 | -183,929 | -160,913 | ||||
Operating income | 39,353 | 36,659 | 65,957 | 66,613 | ||||
Scores | ||||||||
Segment revenues: | ||||||||
Transactional and maintenance | 47,814 | 46,560 | 90,751 | 89,878 | ||||
Professional services | 966 | 777 | 1,754 | 1,366 | ||||
License | 1,157 | 521 | 1,373 | 3,794 | ||||
Total revenues | 49,937 | 47,858 | 93,878 | 95,038 | ||||
Depreciation expense | 227 | 198 | 444 | 410 | ||||
Scores | Operating Segments | ||||||||
Segment revenues: | ||||||||
Segment operating expense | -14,618 | -10,939 | -27,510 | -21,314 | ||||
Operating income | 35,319 | 36,919 | 66,368 | 73,724 | ||||
Tools | ||||||||
Segment revenues: | ||||||||
Transactional and maintenance | 10,554 | 8,911 | 20,476 | 17,469 | ||||
Professional services | 5,988 | 5,469 | 11,899 | 12,379 | ||||
License | 6,242 | 7,614 | 20,520 | 17,393 | ||||
Total revenues | 22,784 | 21,994 | 52,895 | 47,241 | ||||
Depreciation expense | 807 | 622 | 1,590 | 1,236 | ||||
Tools | Operating Segments | ||||||||
Segment revenues: | ||||||||
Segment operating expense | -27,987 | -20,804 | -57,526 | -41,875 | ||||
Operating income | -5,203 | 1,190 | -4,631 | 5,366 | ||||
Unallocated Corporate Expenses | ||||||||
Segment revenues: | ||||||||
Total revenues | 0 | 0 | ||||||
Depreciation expense | 685 | 656 | 1,352 | 1,347 | ||||
Unallocated Corporate Expenses | Operating Segments | ||||||||
Segment revenues: | ||||||||
Segment operating expense | -19,753 | -24,072 | -41,372 | -45,829 | ||||
Operating income | ($19,753) | ($24,072) | ($41,372) | ($45,829) | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5 to the condensed consolidated financial statements. |