Fair Isaac (FICO) 10-Q 28 Jul 16 2016 Q3 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	9 Months Ended
	Jun. 30, 2016	Jul. 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	Jun. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,854,567

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Current assets:
Cash and cash equivalents	$ 118,155	$ 86,120
Accounts receivable, net	155,196	158,773
Prepaid expenses and other current assets	22,443	41,709
Total current assets	295,794	286,602
Marketable securities available for sale	10,645	9,567
Other investments	10,920	10,958
Property and equipment, net	41,106	38,208
Goodwill	802,202	814,750
Intangible assets, net	37,212	47,321
Deferred income taxes	22,109	15,196
Other assets	6,724	7,561
Total assets	1,226,712	1,230,163
Current liabilities:
Accounts payable	21,096	19,852
Accrued compensation and employee benefits	56,720	54,368
Other accrued liabilities	36,543	30,958
Deferred revenue	50,884	46,697
Current maturities on debt	85,000	92,000
Total current liabilities	250,243	243,875
Long-term debt	516,000	516,000
Other liabilities	32,428	33,290
Total liabilities	798,671	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 30,952 and 31,290 shares outstanding at June 30, 2016 and September 30, 2015, respectively)	310	313
Paid-in-capital	1,165,403	1,152,789
Treasury stock, at cost (57,905 and 57,567 shares at June 30, 2016 and September 30, 2015, respectively)	(2,109,507)	(2,033,644)
Retained earnings	1,443,730	1,368,255
Accumulated other comprehensive loss	(71,895)	(50,715)
Total stockholders’ equity	428,041	436,998
Total liabilities and stockholders’ equity	$ 1,226,712	$ 1,230,163

CONDENSED CONSOLIDATED BALANCE3

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 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	30,952,000	31,290,000
Treasury stock, shares	57,905,000	57,567,000

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Revenues:
Transactional and maintenance		$ 153,886	$ 144,695	$ 451,701	$ 414,788
Professional services		44,304	37,998	117,798	111,142
License		40,588	26,673	76,033	80,095
Total revenues		238,778	209,366	645,532	606,025
Operating expenses:
Cost of revenues	[1]	66,384	66,202	190,875	203,493
Research and development		26,417	25,610	75,896	72,588
Selling, general and administrative	[1]	87,172	74,645	243,511	221,309
Amortization of intangible assets	[1]	3,486	3,599	10,573	10,046
Restructuring and acquisition-related		0	2,256	0	2,256
Total operating expenses		183,459	172,312	520,855	509,692
Operating income		55,319	37,054	124,677	96,333
Interest expense, net		(6,781)	(7,360)	(20,320)	(22,283)
Other income, net		1,752	770	1,853	771
Income before income taxes		50,290	30,464	106,210	74,821
Provision for income taxes		15,303	10,558	28,866	21,638
Net income		34,987	19,906	77,344	53,183
Other comprehensive income (loss):
Foreign currency translation adjustments		(14,156)	12,779	(21,180)	(17,740)
Comprehensive income		$ 20,831	$ 32,685	$ 56,164	$ 35,443
Earnings per share:
Basic (in dollars per share)		$ 1.12	$ 0.64	$ 2.48	$ 1.69
Diluted (in dollars per share)		$ 1.08	$ 0.62	$ 2.39	$ 1.63
Shares used in computing earnings per share:
Basic (in shares)		31,149	31,118	31,201	31,465
Diluted (in shares)		32,313	32,363	32,337	32,648
[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) - 9 months ended Jun. 30, 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	41,704		41,704
Issuance of treasury stock under employee stock plans (in shares)		689
Issuance of treasury stock under employee stock plans	(20,188)	$ 7	(44,794)	24,599
Tax effect from share-based payment arrangements	15,704		15,704
Repurchases of common stock (shares)		(1,027)
Repurchases of common stock	(100,472)	$ (10)		(100,462)
Dividends paid	(1,869)				(1,869)
Net income	77,344				77,344
Foreign currency translation adjustments	(21,180)					(21,180)
Ending Balance (in shares) at Jun. 30, 2016		30,952
Ending Balance at Jun. 30, 2016	$ 428,041	$ 310	$ 1,165,403	$ (2,109,507)	$ 1,443,730	$ (71,895)

CONDENSED CONSOLIDATED STATEME6

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015
Cash flows from operating activities:
Net income	$ 77,344	$ 53,183
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	23,127	26,093
Share-based compensation	41,704	32,762
Deferred income taxes	(455)	75
Tax effect from share-based payment arrangements	15,704	10,903
Excess tax benefits from share-based payment arrangements	(16,100)	(11,364)
Provision for doubtful accounts, net	1,305	0
Net loss on sales of property and equipment	0	12
Changes in operating assets and liabilities:
Accounts receivable	(3,184)	10,609
Prepaid expenses and other assets	14,306	(11,309)
Accounts payable	(1,635)	2,324
Accrued compensation and employee benefits	2,556	(19,700)
Other liabilities	(1,166)	(6,968)
Deferred revenue	8,119	(220)
Net cash provided by operating activities	161,625	86,400
Cash flows from investing activities:
Purchases of property and equipment	(12,541)	(18,266)
Cash paid for acquisitions, net of cash acquired	(5,683)	(56,992)
Distribution from cost method investees	37	75
Net cash used in investing activities	(18,187)	(75,183)
Cash flows from financing activities:
Proceeds from revolving line of credit	49,000	241,000
Payments on revolving line of credit	(56,000)	(68,000)
Payments on senior notes	0	(71,000)
Proceeds from issuance of treasury stock under employee stock plans	8,356	13,643
Taxes paid related to net share settlement of equity awards	(28,544)	(18,102)
Dividends paid	(1,869)	(1,882)
Repurchases of common stock	(96,121)	(130,719)
Excess tax benefits from share-based payment arrangements	16,100	11,364
Net cash used in financing activities	(109,078)	(23,696)
Effect of exchange rate changes on cash	(2,325)	(8,238)
Increase (decrease) in cash and cash equivalents	32,035	(20,717)
Cash and cash equivalents, beginning of period	86,120	105,075
Cash and cash equivalents, end of period	118,155	84,358
Supplemental disclosures of cash flow information:
Income taxes refunds (payments), net	836	(31,122)
Cash paid for interest	19,143	22,835
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	3,566	733
Unsettled repurchases of common stock	$ 4,351	$ 0

Nature of Business

Nature of Business	9 Months Ended
	Jun. 30, 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 March 2016, the Financial Accounting Standards Board (“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	9 Months Ended
	Jun. 30, 2016
Business Combinations [Abstract]
Business Combinations	Business Combinations On May 19, 2016, we acquired 100% of the equity of QuadMetrics, Inc. (“QuadMetrics”) for $5.7 million in cash. QuadMetrics is a provider of enterprise security assessment analytics. We expect that this acquisition will help accelerate our efforts to provide a suite of complementary cyber-related analytics solutions to market. QuadMetrics 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. We recorded $2.0 million of intangible assets, which are being amortized using the straight-line method over a weighted average useful life of approximately 4.0 years . We allocated $3.9 million of goodwill to our Applications segment that was not deductible for tax purposes.

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2016 and September 30, 2015 . The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2016 and September 30, 2015 : June 30, 2016 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2016 (In thousands) Assets: Cash equivalents (1) $ 440 $ 440 Marketable securities (2) 10,645 10,645 Total $ 11,085 $ 11,085 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 June 30, 2016 and September 30, 2015 . Not included in these tables are cash deposits of $117.7 million and $85.7 million at June 30, 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 June 30, 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	9 Months Ended
	Jun. 30, 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 June 30, 2016 and September 30, 2015 : June 30, 2016 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 1,000 $ 774 $ — Euro (EUR) EUR 4,850 $ 5,387 $ — Buy foreign currency: British pound (GBP) GBP 4,580 $ 6,150 $ — 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 June 30, 2016 and September 30, 2015 , 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, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands) Gains (losses) on foreign currency forward contracts $ (1,018 ) $ 548 $ (2,273 ) $ 209

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Jun. 30, 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 June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands) Cost of revenues $ 1,805 $ 1,919 $ 5,552 $ 5,656 Selling, general and administrative expenses 1,681 1,680 5,021 4,390 $ 3,486 $ 3,599 $ 10,573 $ 10,046 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 $ 150.1 million and $ 154.2 million as of June 30, 2016 and September 30, 2015 , respectively. Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2016 , was as follows (in thousands): Year Ended September 30, 2016 (excluding the nine months ended June 30, 2016) $ 3,429 2017 12,968 2018 6,388 2019 5,873 2020 3,626 Thereafter 4,928 $ 37,212 The following table summarizes changes to goodwill during the nine months ended June 30, 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 Addition from acquisitions 3,857 — — 3,857 Adjustment related to prior acquisitions 283 — — 283 Foreign currency translation adjustment (14,885 ) — (1,803 ) (16,688 ) Balance at June 30, 2016 $ 586,020 $ 146,648 $ 69,534 $ 802,202

Composition of Certain Financia

Composition of Certain Financial Statement Captions	9 Months Ended
	Jun. 30, 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 June 30, 2016 and September 30, 2015 : June 30, September 30, (In thousands) Property and equipment $ 122,687 $ 109,860 Less: accumulated depreciation and amortization (81,581 ) (71,652 ) $ 41,106 $ 38,208

Revolving Line of Credit

Revolving Line of Credit	9 Months Ended
	Jun. 30, 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 June 30, 2016 , we had $225.0 million in borrowings outstanding at a weighted average interest rate of 1.836% , 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 June 30, 2016 .

Senior Notes

Senior Notes	9 Months Ended
	Jun. 30, 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 June 30, 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 June 30, 2016 and September 30, 2015 . The fair value of the Senior Notes was $397.8 million and $401.6 million as of June 30, 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	9 Months Ended
	Jun. 30, 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. Accrual at Cash Payments Accrual at September 30, 2015 June 30, 2016 (In thousands) Facilities charges $ 12,995 $ (2,354 ) $ 10,641 Employee separation 2,405 (2,405 ) — 15,400 $ (4,759 ) 10,641 Less: current portion (5,570 ) (3,980 ) Non-current $ 9,830 $ 6,661

Income Taxes

Income Taxes	9 Months Ended
	Jun. 30, 2016
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate The effective income tax rate was 30.4% and 34.7% during the quarters ended June 30, 2016 and 2015 , respectively and 27.2% and 28.9% during the nine months ended June 30, 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 $6.2 million and $4.6 million at June 30, 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 June 30, 2016 and September 30, 2015 , respectively.

Earnings per Share

Earnings per Share	9 Months Ended
	Jun. 30, 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 nine months ended June 30, 2016 and 2015 : Quarter Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 34,987 $ 19,906 $ 77,344 $ 53,183 Denominator - share: Basic weighted-average shares 31,149 31,118 31,201 31,465 Effect of dilutive securities 1,164 1,245 1,136 1,183 Diluted weighted-average shares 32,313 32,363 32,337 32,648 Earnings per share: Basic $ 1.12 $ 0.64 $ 2.48 $ 1.69 Diluted $ 1.08 $ 0.62 $ 2.39 $ 1.63 We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were no options excluded for the quarters ended June 30, 2016 and 2015 . There were approximately 12,003 and 179,850 options excluded for the nine months ended June 30, 2016 and 2015 , respectively.

Segment Information

Segment Information	9 Months Ended
	Jun. 30, 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 nine months ended June 30, 2016 and 2015 : Quarter Ended June 30, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 82,925 $ 59,781 $ 11,180 $ — $ 153,886 Professional services 36,560 822 6,922 — 44,304 License 22,080 527 17,981 — 40,588 Total segment revenues 141,565 61,130 36,083 — 238,778 Segment operating expense (92,532 ) (14,321 ) (30,476 ) (29,240 ) (166,569 ) Segment operating income $ 49,033 $ 46,809 $ 5,607 $ (29,240 ) 72,209 Unallocated share-based compensation expense (13,404 ) Unallocated amortization expense (3,486 ) Operating income 55,319 Unallocated interest expense, net (6,781 ) Unallocated other income, net 1,752 Income before income taxes $ 50,290 Depreciation expense $ 2,961 $ 211 $ 947 $ 354 $ 4,473 Quarter Ended June 30, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 79,731 $ 54,255 $ 10,709 $ — $ 144,695 Professional services 31,009 615 6,374 — 37,998 License 16,394 884 9,395 — 26,673 Total segment revenues 127,134 55,754 26,478 — 209,366 Segment operating expense (90,228 ) (14,736 ) (28,554 ) (20,773 ) (154,291 ) Segment operating income (loss) $ 36,906 $ 41,018 $ (2,076 ) $ (20,773 ) 55,075 Unallocated share-based compensation expense (12,166 ) Unallocated amortization expense (3,599 ) Unallocated restructuring and acquisition-related (2,256 ) Operating income 37,054 Unallocated interest expense, net (7,360 ) Unallocated other income, net 770 Income before income taxes $ 30,464 Depreciation expense $ 3,734 $ 258 $ 834 $ 621 $ 5,447 Nine Months Ended June 30, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 244,659 $ 174,263 $ 32,779 — $ 451,701 Professional services 95,405 2,682 19,711 — 117,798 License 43,559 1,303 31,171 — 76,033 Total segment revenues 383,623 178,248 83,661 — 645,532 Segment operating expense (267,924 ) (42,580 ) (82,890 ) (75,184 ) (468,578 ) Segment operating income $ 115,699 $ 135,668 $ 771 $ (75,184 ) 176,954 Unallocated share-based compensation expense (41,704 ) Unallocated amortization expense (10,573 ) Operating income 124,677 Unallocated interest expense, net (20,320 ) Unallocated other income, net 1,853 Income before income taxes $ 106,210 Depreciation expense $ 8,413 $ 573 $ 2,582 $ 986 $ 12,554 Nine Months Ended June 30, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 238,597 $ 145,006 $ 31,185 — $ 414,788 Professional services 90,500 2,369 18,273 — 111,142 License 47,923 2,257 29,915 — 80,095 Total segment revenues 377,020 149,632 79,373 — 606,025 Segment operating expense (274,157 ) (42,246 ) (86,080 ) (62,145 ) (464,628 ) Segment operating income (loss) $ 102,863 $ 107,386 $ (6,707 ) $ (62,145 ) 141,397 Unallocated share-based compensation expense (32,762 ) Unallocated amortization expense (10,046 ) Unallocated restructuring and acquisition-related (2,256 ) Operating income 96,333 Unallocated interest expense, net (22,283 ) Unallocated other income, net 771 Income before income taxes $ 74,821 Depreciation expense $ 10,948 $ 702 $ 2,424 $ 1,973 $ 16,047

Contingencies

Contingencies	9 Months Ended
	Jun. 30, 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.

Subsequent Events

Subsequent Events	9 Months Ended
	Jun. 30, 2016
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events In July 2016, our Board of Directors approved a new stock repurchase program following the termination of a similar program that was approved in August 2014. The new program is open-ended and authorizes repurchases of shares of our common stock up to an aggregate cost of $250.0 million in the open market or in negotiated transactions.

Nature of Business (Policies)

Nature of Business (Policies)	9 Months Ended
	Jun. 30, 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 March 2016, the Financial Accounting Standards Board (“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)	9 Months Ended
	Jun. 30, 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 June 30, 2016 and September 30, 2015 : June 30, 2016 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2016 (In thousands) Assets: Cash equivalents (1) $ 440 $ 440 Marketable securities (2) 10,645 10,645 Total $ 11,085 $ 11,085 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 June 30, 2016 and September 30, 2015 . Not included in these tables are cash deposits of $117.7 million and $85.7 million at June 30, 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 June 30, 2016 and September 30, 2015 .

Derivative Financial Instrume23

Derivative Financial Instruments (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2016 and September 30, 2015 : June 30, 2016 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Canadian dollar (CAD) CAD 1,000 $ 774 $ — Euro (EUR) EUR 4,850 $ 5,387 $ — Buy foreign currency: British pound (GBP) GBP 4,580 $ 6,150 $ — 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	Gains (losses) on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands) Gains (losses) on foreign currency forward contracts $ (1,018 ) $ 548 $ (2,273 ) $ 209

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Jun. 30, 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 June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands) Cost of revenues $ 1,805 $ 1,919 $ 5,552 $ 5,656 Selling, general and administrative expenses 1,681 1,680 5,021 4,390 $ 3,486 $ 3,599 $ 10,573 $ 10,046
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2016 , was as follows (in thousands): Year Ended September 30, 2016 (excluding the nine months ended June 30, 2016) $ 3,429 2017 12,968 2018 6,388 2019 5,873 2020 3,626 Thereafter 4,928 $ 37,212
Schedule of Goodwill	The following table summarizes changes to goodwill during the nine months ended June 30, 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 Addition from acquisitions 3,857 — — 3,857 Adjustment related to prior acquisitions 283 — — 283 Foreign currency translation adjustment (14,885 ) — (1,803 ) (16,688 ) Balance at June 30, 2016 $ 586,020 $ 146,648 $ 69,534 $ 802,202

Composition of Certain Financ25

Composition of Certain Financial Statement Captions (Tables)	9 Months Ended
	Jun. 30, 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 June 30, 2016 and September 30, 2015 : June 30, September 30, (In thousands) Property and equipment $ 122,687 $ 109,860 Less: accumulated depreciation and amortization (81,581 ) (71,652 ) $ 41,106 $ 38,208

Restructuring Expenses (Tables)

Restructuring Expenses (Tables)	9 Months Ended
	Jun. 30, 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. Accrual at Cash Payments Accrual at September 30, 2015 June 30, 2016 (In thousands) Facilities charges $ 12,995 $ (2,354 ) $ 10,641 Employee separation 2,405 (2,405 ) — 15,400 $ (4,759 ) 10,641 Less: current portion (5,570 ) (3,980 ) Non-current $ 9,830 $ 6,661

Earnings per Share (Tables)

Earnings per Share (Tables)	9 Months Ended
	Jun. 30, 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 nine months ended June 30, 2016 and 2015 : Quarter Ended June 30, Nine Months Ended June 30, 2016 2015 2016 2015 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 34,987 $ 19,906 $ 77,344 $ 53,183 Denominator - share: Basic weighted-average shares 31,149 31,118 31,201 31,465 Effect of dilutive securities 1,164 1,245 1,136 1,183 Diluted weighted-average shares 32,313 32,363 32,337 32,648 Earnings per share: Basic $ 1.12 $ 0.64 $ 2.48 $ 1.69 Diluted $ 1.08 $ 0.62 $ 2.39 $ 1.63

Segment Information (Tables)

Segment Information (Tables)	9 Months Ended
	Jun. 30, 2016
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	The following tables summarize segment information for the quarters and nine months ended June 30, 2016 and 2015 : Quarter Ended June 30, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 82,925 $ 59,781 $ 11,180 $ — $ 153,886 Professional services 36,560 822 6,922 — 44,304 License 22,080 527 17,981 — 40,588 Total segment revenues 141,565 61,130 36,083 — 238,778 Segment operating expense (92,532 ) (14,321 ) (30,476 ) (29,240 ) (166,569 ) Segment operating income $ 49,033 $ 46,809 $ 5,607 $ (29,240 ) 72,209 Unallocated share-based compensation expense (13,404 ) Unallocated amortization expense (3,486 ) Operating income 55,319 Unallocated interest expense, net (6,781 ) Unallocated other income, net 1,752 Income before income taxes $ 50,290 Depreciation expense $ 2,961 $ 211 $ 947 $ 354 $ 4,473 Quarter Ended June 30, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 79,731 $ 54,255 $ 10,709 $ — $ 144,695 Professional services 31,009 615 6,374 — 37,998 License 16,394 884 9,395 — 26,673 Total segment revenues 127,134 55,754 26,478 — 209,366 Segment operating expense (90,228 ) (14,736 ) (28,554 ) (20,773 ) (154,291 ) Segment operating income (loss) $ 36,906 $ 41,018 $ (2,076 ) $ (20,773 ) 55,075 Unallocated share-based compensation expense (12,166 ) Unallocated amortization expense (3,599 ) Unallocated restructuring and acquisition-related (2,256 ) Operating income 37,054 Unallocated interest expense, net (7,360 ) Unallocated other income, net 770 Income before income taxes $ 30,464 Depreciation expense $ 3,734 $ 258 $ 834 $ 621 $ 5,447 Nine Months Ended June 30, 2016 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 244,659 $ 174,263 $ 32,779 — $ 451,701 Professional services 95,405 2,682 19,711 — 117,798 License 43,559 1,303 31,171 — 76,033 Total segment revenues 383,623 178,248 83,661 — 645,532 Segment operating expense (267,924 ) (42,580 ) (82,890 ) (75,184 ) (468,578 ) Segment operating income $ 115,699 $ 135,668 $ 771 $ (75,184 ) 176,954 Unallocated share-based compensation expense (41,704 ) Unallocated amortization expense (10,573 ) Operating income 124,677 Unallocated interest expense, net (20,320 ) Unallocated other income, net 1,853 Income before income taxes $ 106,210 Depreciation expense $ 8,413 $ 573 $ 2,582 $ 986 $ 12,554 Nine Months Ended June 30, 2015 Applications Scores Tools Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 238,597 $ 145,006 $ 31,185 — $ 414,788 Professional services 90,500 2,369 18,273 — 111,142 License 47,923 2,257 29,915 — 80,095 Total segment revenues 377,020 149,632 79,373 — 606,025 Segment operating expense (274,157 ) (42,246 ) (86,080 ) (62,145 ) (464,628 ) Segment operating income (loss) $ 102,863 $ 107,386 $ (6,707 ) $ (62,145 ) 141,397 Unallocated share-based compensation expense (32,762 ) Unallocated amortization expense (10,046 ) Unallocated restructuring and acquisition-related (2,256 ) Operating income 96,333 Unallocated interest expense, net (22,283 ) Unallocated other income, net 771 Income before income taxes $ 74,821 Depreciation expense $ 10,948 $ 702 $ 2,424 $ 1,973 $ 16,047

Business Combinations - Additio

Business Combinations - Additional Information (Details) - USD ($) $ in Thousands	May 19, 2016	Jun. 30, 2016	Sep. 30, 2015
Business Acquisition [Line Items]
Goodwill		$ 802,202	$ 814,750
Applications
Business Acquisition [Line Items]
Goodwill		$ 586,020	$ 596,765
QuadMetrics
Business Acquisition [Line Items]
Common stock acquired (percent)	100.00%
Cash	$ 5,700
Intangible assets	$ 2,000
Weighted average useful life	4 years
QuadMetrics | Applications
Business Acquisition [Line Items]
Goodwill	$ 3,900

Fair Value Measurements - Fina

Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands		Jun. 30, 2016	Sep. 30, 2015
Assets:
Marketable securities available-for-sale		$ 10,645	$ 9,567
Cash deposits		117,700	85,700
Fair Value, Measurements, Recurring
Assets:
Cash equivalents	[1]	440	439
Marketable securities available-for-sale	[2]	10,645	9,567
Total		11,085	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]	10,645	9,567
Total		$ 11,085	$ 10,006
[1]	Included in cash and cash equivalents on our condensed consolidated balance sheet at June 30, 2016 and September 30, 2015. Not included in these tables are cash deposits of $117.7 million and $85.7 million at June 30, 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 June 30, 2016 and September 30, 2015.

Derivative Financial Instrume31

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	9 Months Ended
	Jun. 30, 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 Instrume32

Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, CAD in Thousands, $ in Thousands	Jun. 30, 2016CAD	Jun. 30, 2016GBP (£)	Jun. 30, 2016EUR (€)	Jun. 30, 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 1,000			774	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			€ 4,850	5,387			€ 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		£ 4,580		$ 6,150		£ 6,943		$ 10,550

Derivative Financial Instrume33

Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Foreign currency forward contracts
Derivative [Line Items]
Gains (losses) on foreign currency forward contracts	$ (1,018)	$ 548	$ (2,273)	$ 209

Goodwill and Intangible Asset34

Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets	[1]	$ 3,486	$ 3,599	$ 10,573	$ 10,046
Cost of revenues
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		1,805	1,919	5,552	5,656
Selling, general and administrative expenses
Finite-Lived Intangible Assets [Line Items]
Amortization expense of intangible assets		$ 1,681	$ 1,680	$ 5,021	$ 4,390
[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5.

Goodwill and Intangible Asset35

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Jun. 30, 2016	Sep. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross	$ 150.1	$ 154.2

Goodwill and Intangible Asset36

Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Estimated future intangible asset amortization expense
2016 (excluding the nine months ended June 30, 2016)	$ 3,429
2,017	12,968
2,018	6,388
2,019	5,873
2,020	3,626
Thereafter	4,928
Total	$ 37,212	$ 47,321

Goodwill and Intangible Asset37

Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands	9 Months Ended
	Jun. 30, 2016USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2015	$ 814,750
Addition from acquisitions	3,857
Adjustment related to prior acquisitions	283
Foreign currency translation adjustment	(16,688)
Balance at June 30, 2016	802,202
Applications
Goodwill [Roll Forward]
Balance at September 30, 2015	596,765
Addition from acquisitions	3,857
Adjustment related to prior acquisitions	283
Foreign currency translation adjustment	(14,885)
Balance at June 30, 2016	586,020
Scores
Goodwill [Roll Forward]
Balance at September 30, 2015	146,648
Addition from acquisitions	0
Adjustment related to prior acquisitions	0
Foreign currency translation adjustment	0
Balance at June 30, 2016	146,648
Tools
Goodwill [Roll Forward]
Balance at September 30, 2015	71,337
Addition from acquisitions	0
Adjustment related to prior acquisitions	0
Foreign currency translation adjustment	(1,803)
Balance at June 30, 2016	$ 69,534

Composition of Certain Financ38

Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands	Jun. 30, 2016	Sep. 30, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and equipment	$ 122,687	$ 109,860
Less: accumulated depreciation and amortization	(81,581)	(71,652)
Total	$ 41,106	$ 38,208

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail)	9 Months Ended
	Jun. 30, 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	$ 225,000,000
Interest rate of borrowings outstanding	1.836%
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	Jun. 30, 2016USD ($)	Sep. 30, 2015USD ($)
Debt Instrument [Line Items]
Senior Notes, weighted average interest rate			1.836%
Carrying value of Senior Notes			$ 376,000,000	$ 376,000,000
Fair value of Senior Notes			$ 397,800,000	$ 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	9 Months Ended
	Jun. 30, 2016	Jun. 30, 2016	Sep. 30, 2015
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	$ 15,400
Cash Payments	(4,759)
Accrual at June 30, 2016	15,400	$ 10,641	$ 15,400
Accrual at June 30, 2016	10,641
Less: current portion		(3,980)	(5,570)
Non-current		6,661	9,830
Facilities charges
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	12,995
Cash Payments	(2,354)
Accrual at June 30, 2016	12,995	10,641	12,995
Accrual at June 30, 2016	10,641
Employee separation
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2015	2,405
Cash Payments	(2,405)
Accrual at June 30, 2016	2,405	$ 0	$ 2,405
Accrual at June 30, 2016	$ 0

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015	Sep. 30, 2015
Income Tax Disclosure [Abstract]
Effective income tax rate	30.40%	34.70%	27.20%	28.90%
Unrecognized tax benefits, uncertain tax positions	$ 6.2		$ 6.2		$ 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		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Numerator for diluted and basic earnings per share:
Net income	$ 34,987	$ 19,906	$ 77,344	$ 53,183
Denominator - share:
Basic weighted-average shares (in shares)	31,149	31,118	31,201	31,465
Effect of dilutive securities (in shares)	1,164	1,245	1,136	1,183
Diluted weighted-average shares (in shares)	32,313	32,363	32,337	32,648
Earnings per share:
Basic (in dollars per share)	$ 1.12	$ 0.64	$ 2.48	$ 1.69
Diluted (in dollars per share)	$ 1.08	$ 0.62	$ 2.39	$ 1.63

Earnings per Share - Additional

Earnings per Share - Additional Information (Detail) - shares	3 Months Ended		9 Months Ended
	Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 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 (in shares)	0	0	12,003	179,850

Segment Information - Additiona

Segment Information - Additional Information (Detail)	9 Months Ended
	Jun. 30, 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		9 Months Ended
		Jun. 30, 2016	Jun. 30, 2015	Jun. 30, 2016	Jun. 30, 2015
Segment revenues:
Transactional and maintenance		$ 153,886	$ 144,695	$ 451,701	$ 414,788
Professional services		44,304	37,998	117,798	111,142
License		40,588	26,673	76,033	80,095
Total revenues		238,778	209,366	645,532	606,025
Segment operating expense		(183,459)	(172,312)	(520,855)	(509,692)
Segment operating income (loss)		55,319	37,054	124,677	96,333
Unallocated share-based compensation expense		(13,404)	(12,166)	(41,704)	(32,762)
Unallocated amortization expense	[1]	(3,486)	(3,599)	(10,573)	(10,046)
Unallocated restructuring and acquisition-related		0	(2,256)	0	(2,256)
Unallocated interest expense		(6,781)	(7,360)	(20,320)	(22,283)
Unallocated other income, net		1,752	770	1,853	771
Income before income taxes		50,290	30,464	106,210	74,821
Depreciation expense		4,473	5,447	12,554	16,047
Operating Segments
Segment revenues:
Segment operating expense		(166,569)	(154,291)	(468,578)	(464,628)
Segment operating income (loss)		72,209	55,075	176,954	141,397
Unallocated Corporate Expenses
Segment revenues:
Segment operating expense		(29,240)	(20,773)	(75,184)	(62,145)
Segment operating income (loss)		(29,240)	(20,773)	(75,184)	(62,145)
Depreciation expense		354	621	986	1,973
Applications | Operating Segments
Segment revenues:
Transactional and maintenance		82,925	79,731	244,659	238,597
Professional services		36,560	31,009	95,405	90,500
License		22,080	16,394	43,559	47,923
Total revenues		141,565	127,134	383,623	377,020
Segment operating expense		(92,532)	(90,228)	(267,924)	(274,157)
Segment operating income (loss)		49,033	36,906	115,699	102,863
Depreciation expense		2,961	3,734	8,413	10,948
Scores | Operating Segments
Segment revenues:
Transactional and maintenance		59,781	54,255	174,263	145,006
Professional services		822	615	2,682	2,369
License		527	884	1,303	2,257
Total revenues		61,130	55,754	178,248	149,632
Segment operating expense		(14,321)	(14,736)	(42,580)	(42,246)
Segment operating income (loss)		46,809	41,018	135,668	107,386
Depreciation expense		211	258	573	702
Tools | Operating Segments
Segment revenues:
Transactional and maintenance		11,180	10,709	32,779	31,185
Professional services		6,922	6,374	19,711	18,273
License		17,981	9,395	31,171	29,915
Total revenues		36,083	26,478	83,661	79,373
Segment operating expense		(30,476)	(28,554)	(82,890)	(86,080)
Segment operating income (loss)		5,607	(2,076)	771	(6,707)
Depreciation expense		$ 947	$ 834	$ 2,582	$ 2,424
[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 5.

Subsequent Events - Additional

Subsequent Events - Additional Information (Details) $ in Millions	Jul. 31, 2016USD ($)
Subsequent Event
Subsequent Event [Line Items]
Stock repurchase program, authorized amount	$ 250