Fair Isaac (FICO) 10-Q 4 May 16 2016 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2016	Apr. 15, 2016
Document And Entity Information [Abstract]
Entity Registrant Name	FAIR ISAAC CORP
Trading Symbol	FICO
Entity Central Index Key	814,547
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		31,178,576

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 85,374	$ 86,120
Accounts receivable, net	155,207	158,773
Prepaid expenses and other current assets	36,005	41,709
Total current assets	276,586	286,602
Marketable securities available for sale	10,351	9,567
Other investments	10,958	10,958
Property and equipment, net	38,589	38,208
Goodwill	808,292	814,750
Intangible assets, net	39,580	47,321
Deferred income taxes	23,501	15,196
Other assets	7,084	7,561
Total assets	1,214,941	1,230,163
Current liabilities:
Accounts payable	20,587	19,852
Accrued compensation and employee benefits	44,429	54,368
Other accrued liabilities	26,741	30,958
Deferred revenue	54,574	46,697
Current maturities on debt	95,000	92,000
Total current liabilities	241,331	243,875
Long-term debt	516,000	516,000
Other liabilities	32,230	33,290
Total liabilities	$ 789,561	$ 793,165
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 31,159 and 31,290 shares outstanding at March 31, 2016 and September 30, 2015, respectively)	312	313
Paid-in-capital	1,153,810	1,152,789
Treasury stock, at cost (57,698 and 57,567 shares at March 31, 2016 and September 30, 2015, respectively)	(2,080,370)	(2,033,644)
Retained earnings	1,409,367	1,368,255
Accumulated other comprehensive loss	(57,739)	(50,715)
Total stockholders’ equity	425,380	436,998
Total liabilities and stockholders’ equity	$ 1,214,941	$ 1,230,163

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2016	Sep. 30, 2015
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, issued	0	0
Preferred stock, 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	31,159,000	31,290,000
Treasury stock, shares	57,698,000	57,567,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Revenues:
Transactional and maintenance		$ 150,743	$ 138,683	$ 297,815	$ 270,093
Professional services		39,342	37,946	73,494	73,144
License		16,593	30,480	35,445	53,422
Total revenues		206,678	207,109	406,754	396,659
Operating expenses:
Cost of revenues	[1]	62,298	70,991	124,491	137,291
Research and development		24,848	24,341	49,479	46,978
Selling, general and administrative	[1]	77,501	73,863	156,339	146,664
Amortization of intangible assets	[1]	3,507	3,515	7,087	6,447
Total operating expenses		168,154	172,710	337,396	337,380
Operating income		38,524	34,399	69,358	59,279
Interest expense, net		(6,815)	(7,718)	(13,539)	(14,923)
Other income (expense), net		435	(648)	101	1
Income before income taxes		32,144	26,033	55,920	44,357
Provision for income taxes		9,028	7,163	13,563	11,080
Net income		23,116	18,870	42,357	33,277
Other comprehensive loss:
Foreign currency translation adjustments		(905)	(19,068)	(7,024)	(30,519)
Comprehensive income (loss)		$ 22,211	$ (198)	$ 35,333	$ 2,758
Earnings per share:
Basic (in dollars per share)		$ 0.74	$ 0.60	$ 1.36	$ 1.05
Diluted (in dollars per share)		$ 0.72	$ 0.58	$ 1.31	$ 1.01
Shares used in computing earnings per share:
Basic (in shares)		31,268	31,335	31,226	31,639
Diluted (in shares)		32,262	32,448	32,349	32,791
[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5.

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Unaudited) - 6 months ended Mar. 31, 2016 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in-Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance (in shares) at Sep. 30, 2015		31,290
Beginning Balance at Sep. 30, 2015	$ 436,998	$ 313	$ 1,152,789	$ (2,033,644)	$ 1,368,255	$ (50,715)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	28,300		28,300
Issuance of treasury stock under employee stock plans (in shares)		608
Issuance of treasury stock under employee stock plans	(19,124)	$ 6	(40,787)	21,657
Tax effect from share-based payment arrangements	13,508		13,508
Repurchases of common stock (shares)		(739)
Repurchases of common stock	(68,390)	$ (7)		(68,383)
Dividends paid	(1,245)				(1,245)
Net income	42,357				42,357
Foreign currency translation adjustments	(7,024)					(7,024)
Ending Balance (in shares) at Mar. 31, 2016		31,159
Ending Balance at Mar. 31, 2016	$ 425,380	$ 312	$ 1,153,810	$ (2,080,370)	$ 1,409,367	$ (57,739)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities:
Net income	$ 42,357	$ 33,277
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	15,168	17,047
Share-based compensation	28,300	20,596
Deferred income taxes	(2,056)	2,453
Tax effect from share-based payment arrangements	13,508	9,306
Excess tax benefits from share-based payment arrangements	(14,008)	(8,616)
Provision for doubtful accounts, net	870	0
Net loss on sales of property and equipment	0	12
Changes in operating assets and liabilities:
Accounts receivable	566	(15,072)
Prepaid expenses and other assets	532	(15,777)
Accounts payable	233	10,655
Accrued compensation and employee benefits	(9,836)	(18,912)
Other liabilities	(6,901)	(6,948)
Deferred revenue	9,593	15,261
Net cash provided by operating activities	78,326	43,282
Cash flows from investing activities:
Purchases of property and equipment	(7,807)	(10,251)
Cash paid for acquisitions, net of cash acquired	0	(56,621)
Distribution from cost method investees	0	75
Net cash used in investing activities	(7,807)	(66,797)
Cash flows from financing activities:
Proceeds from revolving line of credit	44,000	152,000
Payments on revolving line of credit	(41,000)	(40,000)
Proceeds from issuance of treasury stock under employee stock plans	6,757	11,853
Taxes paid related to net share settlement of equity awards	(25,881)	(15,992)
Dividends paid	(1,245)	(1,260)
Repurchases of common stock	(68,390)	(100,713)
Excess tax benefits from share-based payment arrangements	14,008	8,616
Net cash provided by (used in) financing activities	(71,751)	14,504
Effect of exchange rate changes on cash	486	(9,223)
Decrease in cash and cash equivalents	(746)	(18,234)
Cash and cash equivalents, beginning of period	86,120	105,075
Cash and cash equivalents, end of period	85,374	86,841
Supplemental disclosures of cash flow information:
Income taxes refunds (payments), net	2,648	(24,496)
Cash paid for interest	13,273	14,709
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	$ 1,028	$ 4,742

Nature of Business

Nature of Business	6 Months Ended
	Mar. 31, 2016
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, 2015 . 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 November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ” (“ASU 2015-17”). ASU 2015-17 simplifies the presentation of deferred income taxes and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 applies to all entities that present a classified statement of financial position. ASU 2015-17 may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. ASU 2015-17 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. We elected to early adopt the standard prospectively as of March 31, 2016, which did not have a significant impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accountin g” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016, which means it will be effective for our fiscal year beginning October 1, 2017. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In May 2014, the 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. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for our fiscal year beginning October 1, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). 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, 2016
Business Combinations [Abstract]
Business Combinations	Business Combinations On January 12, 2015, we acquired 100% of the equity of TONBELLER Aktiengesellschaft for $59.6 million in cash. We recorded $14.9 million of intangible assets, which are being amortized using the straight-line method over a weighted average useful life of approximately 4.9 years . We allocated $46.4 million of goodwill to our Applications segment that was not deductible for tax purposes.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Mar. 31, 2016
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, 2016 and September 30, 2015 . • 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, 2016 and September 30, 2015 . The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2016 and September 30, 2015 : March 31, 2016 Active Markets for Identical Instruments (Level 1) Fair Value as of March 31, 2016 (In thousands) Assets: Cash equivalents (1) $ 440 $ 440 Marketable securities (2) 10,351 10,351 Total $ 10,791 $ 10,791 September 30, 2015 Active Markets for Fair Value as of September 30, 2015 (In thousands) Assets: Cash equivalents (1) $ 439 $ 439 Marketable securities (2) 9,567 9,567 Total $ 10,006 $ 10,006 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2016 and September 30, 2015 . Not included in these tables are cash deposits of $84.9 million and $85.7 million at March 31, 2016 and September 30, 2015 , 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, 2016 and September 30, 2015 . 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, respectively.

Derivative Financial Instrument

Derivative Financial Instruments	6 Months Ended
	Mar. 31, 2016
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, 2016 and September 30, 2015 : March 31, 2016 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 1,250 $ 963 $ — Euro (EUR) EUR 5,500 $ 6,303 $ — Buy foreign currency: British pound (GBP) GBP 5,026 $ 7,250 $ — September 30, 2015 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 2,750 $ 2,045 $ — Euro (EUR) EUR 5,600 $ 6,296 $ — Buy foreign currency: British pound (GBP) GBP 6,943 $ 10,550 $ — The foreign currency forward contracts were entered into on March 31, 2016 and September 30, 2015 , respectively; therefore, their fair value was $0 on each of these dates. Losses on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: Quarter Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (In thousands) Losses on foreign currency forward contracts $ 956 $ 10 $ 1,255 $ 339

Goodwill and Intangible Assets

Goodwill and Intangible Assets	6 Months Ended
	Mar. 31, 2016
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, 2016 2015 2016 2015 (In thousands) Cost of revenues $ 1,840 $ 1,901 $ 3,747 $ 3,737 Selling, general and administrative expenses 1,667 1,614 3,340 2,710 $ 3,507 $ 3,515 $ 7,087 $ 6,447 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 $ 152.7 million and $ 154.2 million as of March 31, 2016 and September 30, 2015 , respectively. Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2016 , was as follows (in thousands): Year Ended September 30, 2016 (excluding the six months ended March 31, 2016) $ 6,861 2017 12,857 2018 5,996 2019 5,480 2020 3,360 Thereafter 5,026 $ 39,580 The following table summarizes changes to goodwill during the six months ended March 31, 2016 , both in total and as allocated to our segments: Applications Scores Tools Total (In thousands) Balance at September 30, 2015 $ 596,765 $ 146,648 $ 71,337 $ 814,750 Adjustment related to prior acquisitions 283 — — 283 Foreign currency translation adjustment (5,953 ) — (788 ) (6,741 ) Balance at March 31, 2016 $ 591,095 $ 146,648 $ 70,549 $ 808,292

Composition of Certain Financia

Composition of Certain Financial Statement Captions	6 Months Ended
	Mar. 31, 2016
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, 2016 and September 30, 2015 : March 31, September 30, (In thousands) Property and equipment $ 116,939 $ 109,860 Less: accumulated depreciation and amortization (78,350 ) (71,652 ) $ 38,589 $ 38,208

Revolving Line of Credit

Revolving Line of Credit	6 Months Ended
	Mar. 31, 2016
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, 2016 , we had $235.0 million in borrowings outstanding at a weighted average interest rate of 1.815% , 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, 2016 .

Senior Notes

Senior Notes	6 Months Ended
	Mar. 31, 2016
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 7.2% and the weighted average maturity is 10.0 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, 2016 , 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 $376.0 million as of March 31, 2016 and September 30, 2015 . The fair value of the Senior Notes was $398.7 million and $401.6 million as of March 31, 2016 and September 30, 2015 , 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, 2016
Restructuring and Related Activities [Abstract]
Restructuring Expenses	Restructuring Expenses The following table summarizes our restructuring accruals and certain FICO facility closures. The current portion and non-current portion is recorded in other accrued current liabilities and other long-term liabilities, respectively, within the accompanying condensed consolidated balance sheets. The balance for all the facilities charges will be paid by the end of our fiscal 2020. The balance for all the employee separation costs will be paid by the end of the third quarter of our fiscal 2016. Accrual at Cash Payments Accrual at September 30, 2015 March 31, 2016 (In thousands) Facilities charges $ 12,995 $ (1,551 ) $ 11,444 Employee separation 2,405 (2,398 ) 7 15,400 $ (3,949 ) 11,451 Less: current portion (5,570 ) (4,287 ) Non-current $ 9,830 $ 7,164

Income Taxes

Income Taxes	6 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate The effective income tax rate was 28.1% and 27.5% during the quarters ended March 31, 2016 and 2015 , respectively and 24.3% and 25.0% during the six months ended March 31, 2016 and 2015 , 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 rates for both periods were significantly impacted by the mix of global earnings toward lower tax jurisdictions, as well as retroactive extensions of the U.S. Federal Research and Development Credit. The total unrecognized tax benefit for uncertain tax positions is estimated to be approximately $5.7 million and $4.6 million at March 31, 2016 and September 30, 2015 , respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.3 million and $0.2 million , related to unrecognized tax benefits as of March 31, 2016 and September 30, 2015 , respectively.

Earnings Per Share

Earnings Per Share	6 Months Ended
	Mar. 31, 2016
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, 2016 and 2015 : Quarter Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 23,116 $ 18,870 $ 42,357 $ 33,277 Denominator - share: Basic weighted-average shares 31,268 31,335 31,226 31,639 Effect of dilutive securities 994 1,113 1,123 1,152 Diluted weighted-average shares 32,262 32,448 32,349 32,791 Earnings per share: Basic $ 0.74 $ 0.60 $ 1.36 $ 1.05 Diluted $ 0.72 $ 0.58 $ 1.31 $ 1.01 We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were approximately 21,000 and 46,000 options excluded for the quarters ended March 31, 2016 and 2015 , respectively. There were approximately 18,000 and 270,000 options excluded for the six months ended March 31, 2016 and 2015 , respectively.

Segment Information

Segment Information	6 Months Ended
	Mar. 31, 2016
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 . This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our new FICO ® Decision Management Suite, as well as associated professional services. 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, 2016 and 2015 : Quarter Ended March 31, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 80,751 $ 59,265 $ 10,727 $ — $ 150,743 Professional services 31,719 1,112 6,511 — 39,342 License 9,447 739 6,407 — 16,593 Total segment revenues 121,917 61,116 23,645 — 206,678 Segment operating expense (87,955 ) (14,090 ) (27,120 ) (21,882 ) (151,047 ) Segment operating income (loss) $ 33,962 $ 47,026 $ (3,475 ) $ (21,882 ) 55,631 Unallocated share-based compensation expense (13,600 ) Unallocated amortization expense (3,507 ) Operating income 38,524 Unallocated interest expense, net (6,815 ) Unallocated other income, net 435 Income before income taxes $ 32,144 Depreciation expense $ 2,708 $ 185 $ 1,000 $ 327 $ 4,220 Quarter Ended March 31, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (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 Six Months Ended March 31, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 161,734 $ 114,482 $ 21,599 — $ 297,815 Professional services 58,845 1,860 12,789 — 73,494 License 21,479 776 13,190 — 35,445 Total segment revenues 242,058 117,118 47,578 — 406,754 Segment operating expense (175,392 ) (28,259 ) (52,414 ) (45,944 ) (302,009 ) Segment operating income (loss) $ 66,666 $ 88,859 $ (4,836 ) $ (45,944 ) 104,745 Unallocated share-based compensation expense (28,300 ) Unallocated amortization expense (7,087 ) Operating income 69,358 Unallocated interest expense, net (13,539 ) Unallocated other income, net 101 Income before income taxes $ 55,920 Depreciation expense $ 5,452 $ 362 $ 1,635 $ 632 $ 8,081 Six Months Ended March 31, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (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

Contingencies

Contingencies	6 Months Ended
	Mar. 31, 2016
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, 2016
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, 2015 . 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 November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2015-17, “ Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes ” (“ASU 2015-17”). ASU 2015-17 simplifies the presentation of deferred income taxes and requires that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. ASU 2015-17 applies to all entities that present a classified statement of financial position. ASU 2015-17 may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods presented. ASU 2015-17 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016. We elected to early adopt the standard prospectively as of March 31, 2016, which did not have a significant impact on our consolidated financial statements. In March 2016, the FASB issued ASU No. 2016-09, “ Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accountin g” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. ASU 2016-09 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2016, which means it will be effective for our fiscal year beginning October 1, 2017. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In May 2014, the 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. In August 2015, the FASB issued ASU No. 2015-14, “Deferral of the Effective Date” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for our fiscal year beginning October 1, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). 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.

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2016 and September 30, 2015 : March 31, 2016 Active Markets for Identical Instruments (Level 1) Fair Value as of March 31, 2016 (In thousands) Assets: Cash equivalents (1) $ 440 $ 440 Marketable securities (2) 10,351 10,351 Total $ 10,791 $ 10,791 September 30, 2015 Active Markets for Fair Value as of September 30, 2015 (In thousands) Assets: Cash equivalents (1) $ 439 $ 439 Marketable securities (2) 9,567 9,567 Total $ 10,006 $ 10,006 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2016 and September 30, 2015 . Not included in these tables are cash deposits of $84.9 million and $85.7 million at March 31, 2016 and September 30, 2015 , 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, 2016 and September 30, 2015 .

Derivative Financial Instrume22

Derivative Financial Instruments (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2016 and September 30, 2015 : March 31, 2016 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 1,250 $ 963 $ — Euro (EUR) EUR 5,500 $ 6,303 $ — Buy foreign currency: British pound (GBP) GBP 5,026 $ 7,250 $ — September 30, 2015 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 2,750 $ 2,045 $ — Euro (EUR) EUR 5,600 $ 6,296 $ — Buy foreign currency: British pound (GBP) GBP 6,943 $ 10,550 $ —
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance	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, 2016 2015 2016 2015 (In thousands) Losses on foreign currency forward contracts $ 956 $ 10 $ 1,255 $ 339

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2016 2015 2016 2015 (In thousands) Cost of revenues $ 1,840 $ 1,901 $ 3,747 $ 3,737 Selling, general and administrative expenses 1,667 1,614 3,340 2,710 $ 3,507 $ 3,515 $ 7,087 $ 6,447
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2016 , was as follows (in thousands): Year Ended September 30, 2016 (excluding the six months ended March 31, 2016) $ 6,861 2017 12,857 2018 5,996 2019 5,480 2020 3,360 Thereafter 5,026 $ 39,580
Schedule of Goodwill	The following table summarizes changes to goodwill during the six months ended March 31, 2016 , both in total and as allocated to our segments: Applications Scores Tools Total (In thousands) Balance at September 30, 2015 $ 596,765 $ 146,648 $ 71,337 $ 814,750 Adjustment related to prior acquisitions 283 — — 283 Foreign currency translation adjustment (5,953 ) — (788 ) (6,741 ) Balance at March 31, 2016 $ 591,095 $ 146,648 $ 70,549 $ 808,292

Composition of Certain Financ24

Composition of Certain Financial Statement Captions (Tables)	6 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and Equipment	The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at March 31, 2016 and September 30, 2015 : March 31, September 30, (In thousands) Property and equipment $ 116,939 $ 109,860 Less: accumulated depreciation and amortization (78,350 ) (71,652 ) $ 38,589 $ 38,208

Restructuring Expenses (Tables)

Restructuring Expenses (Tables)	6 Months Ended
	Mar. 31, 2016
Restructuring and Related Activities [Abstract]
Schedule of Restructuring and Related Costs	The following table summarizes our restructuring accruals and certain FICO facility closures. The current portion and non-current portion is recorded in other accrued current liabilities and other long-term liabilities, respectively, within the accompanying condensed consolidated balance sheets. The balance for all the facilities charges will be paid by the end of our fiscal 2020. The balance for all the employee separation costs will be paid by the end of the third quarter of our fiscal 2016. Accrual at Cash Payments Accrual at September 30, 2015 March 31, 2016 (In thousands) Facilities charges $ 12,995 $ (1,551 ) $ 11,444 Employee separation 2,405 (2,398 ) 7 15,400 $ (3,949 ) 11,451 Less: current portion (5,570 ) (4,287 ) Non-current $ 9,830 $ 7,164

Earnings Per Share (Tables)

Earnings Per Share (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2016 and 2015 : Quarter Ended March 31, Six Months Ended March 31, 2016 2015 2016 2015 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 23,116 $ 18,870 $ 42,357 $ 33,277 Denominator - share: Basic weighted-average shares 31,268 31,335 31,226 31,639 Effect of dilutive securities 994 1,113 1,123 1,152 Diluted weighted-average shares 32,262 32,448 32,349 32,791 Earnings per share: Basic $ 0.74 $ 0.60 $ 1.36 $ 1.05 Diluted $ 0.72 $ 0.58 $ 1.31 $ 1.01

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Mar. 31, 2016
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, 2016 and 2015 : Quarter Ended March 31, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 80,751 $ 59,265 $ 10,727 $ — $ 150,743 Professional services 31,719 1,112 6,511 — 39,342 License 9,447 739 6,407 — 16,593 Total segment revenues 121,917 61,116 23,645 — 206,678 Segment operating expense (87,955 ) (14,090 ) (27,120 ) (21,882 ) (151,047 ) Segment operating income (loss) $ 33,962 $ 47,026 $ (3,475 ) $ (21,882 ) 55,631 Unallocated share-based compensation expense (13,600 ) Unallocated amortization expense (3,507 ) Operating income 38,524 Unallocated interest expense, net (6,815 ) Unallocated other income, net 435 Income before income taxes $ 32,144 Depreciation expense $ 2,708 $ 185 $ 1,000 $ 327 $ 4,220 Quarter Ended March 31, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (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 Six Months Ended March 31, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 161,734 $ 114,482 $ 21,599 — $ 297,815 Professional services 58,845 1,860 12,789 — 73,494 License 21,479 776 13,190 — 35,445 Total segment revenues 242,058 117,118 47,578 — 406,754 Segment operating expense (175,392 ) (28,259 ) (52,414 ) (45,944 ) (302,009 ) Segment operating income (loss) $ 66,666 $ 88,859 $ (4,836 ) $ (45,944 ) 104,745 Unallocated share-based compensation expense (28,300 ) Unallocated amortization expense (7,087 ) Operating income 69,358 Unallocated interest expense, net (13,539 ) Unallocated other income, net 101 Income before income taxes $ 55,920 Depreciation expense $ 5,452 $ 362 $ 1,635 $ 632 $ 8,081 Six Months Ended March 31, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (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

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	Jan. 12, 2015	Mar. 31, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill		$ 808,292	$ 814,750
TONBELLER
Business Acquisition [Line Items]
Common stock acquired (percent)	100.00%
Cash	$ 59,600
Intangible assets	$ 14,900
Weighted average useful life	4 years 11 months
Applications
Business Acquisition [Line Items]
Goodwill		$ 591,095	$ 596,765
Applications | TONBELLER
Business Acquisition [Line Items]
Goodwill	$ 46,400

Fair Value Measurements - Fina

Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		Mar. 31, 2016	Sep. 30, 2015
Assets:
Marketable securities available-for-sale		$ 10,351	$ 9,567
Cash deposits		84,900	85,700
Fair Value, Measurements, Recurring
Assets:
Cash equivalents	[1]	440	439
Marketable securities available-for-sale	[2]	10,351	9,567
Total		10,791	10,006
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1)
Assets:
Cash equivalents	[1]	440	439
Marketable securities available-for-sale	[2]	10,351	9,567
Total		$ 10,791	$ 10,006
[1]	Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2016 and September 30, 2015. Not included in these tables are cash deposits of $84.9 million and $85.7 million at March 31, 2016 and September 30, 2015, 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, 2016 and September 30, 2015.

Derivative Financial Instrume30

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	6 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
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

Derivative Financial Instrume31

Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, CAD in Thousands, $ in Thousands	Mar. 31, 2016CAD	Mar. 31, 2016GBP (£)	Mar. 31, 2016EUR (€)	Mar. 31, 2016USD ($)	Sep. 30, 2015CAD	Sep. 30, 2015GBP (£)	Sep. 30, 2015EUR (€)	Sep. 30, 2015USD ($)
Foreign Exchange Contracts to Sell Canadian Dollar 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 Canadian Dollar for US Dollar | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument
Derivative [Line Items]
Contract amount of forward foreign currency contracts	CAD 1,250			963	CAD 2,750			2,045
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			€ 5,500	6,303			€ 5,600	6,296
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		£ 5,026		$ 7,250		£ 6,943		$ 10,550

Derivative Financial Instrume32

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, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Foreign currency forward contracts
Derivative [Line Items]
Losses on foreign currency forward contracts	$ 956	$ 10	$ 1,255	$ 339

Goodwill and Intangible Asset33

Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	[1]	$ 3,507	$ 3,515	$ 7,087	$ 6,447
Cost of revenues
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		1,840	1,901	3,747	3,737
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		$ 1,667	$ 1,614	$ 3,340	$ 2,710
[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5.

Goodwill and Intangible Asset34

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross	$ 152.7	$ 154.2

Goodwill and Intangible Asset35

Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Estimated future intangible asset amortization expense
2016 (excluding the six months ended March 31, 2016)	$ 6,861
2,017	12,857
2,018	5,996
2,019	5,480
2,020	3,360
Thereafter	5,026
Total	$ 39,580	$ 47,321

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2016USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2015	$ 814,750
Adjustment related to prior acquisitions	283
Foreign currency translation adjustment	(6,741)
Balance at March 31, 2016	808,292
Applications
Goodwill [Roll Forward]
Balance at September 30, 2015	596,765
Adjustment related to prior acquisitions	283
Foreign currency translation adjustment	(5,953)
Balance at March 31, 2016	591,095
Scores
Goodwill [Roll Forward]
Balance at September 30, 2015	146,648
Adjustment related to prior acquisitions	0
Foreign currency translation adjustment	0
Balance at March 31, 2016	146,648
Tools
Goodwill [Roll Forward]
Balance at September 30, 2015	71,337
Adjustment related to prior acquisitions	0
Foreign currency translation adjustment	(788)
Balance at March 31, 2016	$ 70,549

Composition of Certain Financ37

Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2016	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and equipment	$ 116,939	$ 109,860
Less: accumulated depreciation and amortization	(78,350)	(71,652)
Total	$ 38,589	$ 38,208

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail)	6 Months Ended
	Mar. 31, 2016USD ($)
Line of Credit Facility [Line Items]
Unsecured revolving line of credit	$ 400,000,000
Revolving credit facility, expiration date	Dec. 30, 2019
Revolving credit facility, interest rate description	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
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	$ 235,000,000
Interest rate of borrowings outstanding	1.815%
Long-term Debt
Line of Credit Facility [Line Items]
Borrowings outstanding	$ 200,000,000
Federal Fund Rate
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.50%
Libor
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.00%
Libor | Minimum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.00%
Libor | Maximum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.875%
Base Rate | Minimum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.00%
Base Rate | Maximum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.875%

Senior Notes - Additional Infor

Senior Notes - Additional Information (Detail)	Jul. 14, 2010USD ($)Contract	May. 07, 2008USD ($)Contract	Mar. 31, 2016USD ($)	Sep. 30, 2015USD ($)
Debt Instrument [Line Items]
Senior Notes, weighted average interest rate			1.815%
Carrying value of Senior Notes			$ 376,000,000	$ 376,000,000
Fair value of Senior Notes			$ 398,700,000	$ 401,600,000
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 | Contract		4
Senior Notes, weighted average interest rate		7.20%
Senior Notes, weighted average maturity (in years)		10 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 | Contract	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

Restructuring Expenses - Summa

Restructuring Expenses - Summary of Restructuring Accruals and Certain Facility Closures (Detail) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	$ 15,400
Cash Payments	(3,949)
Accrual at December 31, 2015	11,451
Less: current portion	(4,287)	$ (5,570)
Non-current	7,164	$ 9,830
Facilities charges
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	12,995
Cash Payments	(1,551)
Accrual at December 31, 2015	11,444
Employee separation
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	2,405
Cash Payments	(2,398)
Accrual at December 31, 2015	$ 7

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate	28.10%	27.50%	24.30%	25.00%
Unrecognized tax benefits, uncertain tax positions	$ 5.7		$ 5.7		$ 4.6
Unrecognized tax benefits, accrued interest	$ 0.3		$ 0.3		$ 0.2

Earnings Per Share - Reconcili

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, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Numerator for diluted and basic earnings per share:
Net income	$ 23,116	$ 18,870	$ 42,357	$ 33,277
Denominator - share:
Basic weighted-average shares	31,268	31,335	31,226	31,639
Effect of dilutive securities	994	1,113	1,123	1,152
Diluted weighted-average shares	32,262	32,448	32,349	32,791
Earnings per share:
Basic (in dollars per share)	$ 0.74	$ 0.60	$ 1.36	$ 1.05
Diluted (in dollars per share)	$ 0.72	$ 0.58	$ 1.31	$ 1.01

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
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	21	46	18	270

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Mar. 31, 2016Segment
Segment Reporting [Abstract]
Number of operating segments	3
Number of reportable segments	3

Segment Information - Summary

Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2016	Mar. 31, 2015
Segment revenues:
Transactional and maintenance		$ 150,743	$ 138,683	$ 297,815	$ 270,093
Professional services		39,342	37,946	73,494	73,144
License		16,593	30,480	35,445	53,422
Total revenues		206,678	207,109	406,754	396,659
Segment operating expense		(168,154)	(172,710)	(337,396)	(337,380)
Operating income (loss)		38,524	34,399	69,358	59,279
Unallocated share-based compensation expense		(13,600)	(11,802)	(28,300)	(20,596)
Unallocated amortization expense	[1]	(3,507)	(3,515)	(7,087)	(6,447)
Unallocated interest expense		(6,815)	(7,718)	(13,539)	(14,923)
Unallocated other income (expense), net		435	(648)	101	1
Income before income taxes		32,144	26,033	55,920	44,357
Depreciation expense		4,220	5,425	8,081	10,600
Operating Segments
Segment revenues:
Segment operating expense		(151,047)	(157,393)	(302,009)	(310,337)
Operating income (loss)		55,631	49,716	104,745	86,322
Unallocated Corporate Expenses
Segment revenues:
Segment operating expense		(21,882)	(19,753)	(45,944)	(41,372)
Operating income (loss)		(21,882)	(19,753)	(45,944)	(41,372)
Depreciation expense		327	685	632	1,352
Applications | Operating Segments
Segment revenues:
Transactional and maintenance		80,751	80,315	161,734	158,866
Professional services		31,719	30,992	58,845	59,491
License		9,447	23,081	21,479	31,529
Total revenues		121,917	134,388	242,058	249,886
Segment operating expense		(87,955)	(95,035)	(175,392)	(183,929)
Operating income (loss)		33,962	39,353	66,666	65,957
Depreciation expense		2,708	3,706	5,452	7,214
Scores | Operating Segments
Segment revenues:
Transactional and maintenance		59,265	47,814	114,482	90,751
Professional services		1,112	966	1,860	1,754
License		739	1,157	776	1,373
Total revenues		61,116	49,937	117,118	93,878
Segment operating expense		(14,090)	(14,618)	(28,259)	(27,510)
Operating income (loss)		47,026	35,319	88,859	66,368
Depreciation expense		185	227	362	444
Tools | Operating Segments
Segment revenues:
Transactional and maintenance		10,727	10,554	21,599	20,476
Professional services		6,511	5,988	12,789	11,899
License		6,407	6,242	13,190	20,520
Total revenues		23,645	22,784	47,578	52,895
Segment operating expense		(27,120)	(27,987)	(52,414)	(57,526)
Operating income (loss)		(3,475)	(5,203)	(4,836)	(4,631)
Depreciation expense		$ 1,000	$ 807	$ 1,635	$ 1,590
[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5.