Cover
Cover - shares | 9 Months Ended | |
Jun. 30, 2020 | Jul. 17, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-11689 | |
Entity Registrant Name | Fair Isaac Corp | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-1499887 | |
Entity Address, Address Line One | 181 Metro Drive, Suite 700 | |
Entity Address, Postal Zip Code | 95110-1346 | |
Entity Address, City or Town | San Jose, | |
Entity Address, State or Province | CA | |
City Area Code | 408 | |
Local Phone Number | 535-1500 | |
Title of 12(b) Security | Common Stock, $0.01 par value per share | |
Trading Symbol | FICO | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 28,999,394 | |
Entity Central Index Key | 0000814547 | |
Current Fiscal Year End Date | --09-30 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 125,673 | $ 106,426 |
Accounts receivable, net | 303,558 | 297,427 |
Prepaid expenses and other current assets | 53,780 | 51,853 |
Total current assets | 483,011 | 455,706 |
Marketable securities | 23,549 | 20,222 |
Other investments | 1,587 | 1,643 |
Property and equipment, net | 60,336 | |
Property and equipment, net | 53,027 | |
Operating leases | 84,106 | |
Goodwill | 804,528 | 803,542 |
Intangible assets, net | 10,119 | 14,139 |
Deferred income tax | 7,110 | 6,006 |
Other assets | 89,774 | 79,163 |
Total assets | 1,564,120 | 1,433,448 |
Current liabilities: | ||
Accounts payable | 19,816 | 23,118 |
Accrued compensation and employee benefits | 95,674 | 106,240 |
Other accrued liabilities | 50,864 | 32,454 |
Deferred revenue | 105,833 | 111,016 |
Current maturities on debt | 188,000 | 218,000 |
Total current liabilities | 460,187 | 490,828 |
Long-term debt | 739,039 | 606,790 |
Operating leases | 74,000 | |
Other liabilities | 43,608 | 46,063 |
Total liabilities | 1,316,834 | 1,143,681 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding) | 0 | 0 |
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 28,999 and 28,944 shares outstanding at June 30, 2020 and September 30, 2019, respectively) | 290 | 289 |
Additional paid-in-capital | 1,187,717 | 1,225,365 |
Treasury stock, at cost (59,858 and 59,913 shares at June 30, 2020 and September 30, 2019, respectively) | (2,980,437) | (2,802,450) |
Retained earnings | 2,133,933 | 1,956,648 |
Accumulated other comprehensive loss | (94,217) | (90,085) |
Total stockholders’ equity | 247,286 | 289,767 |
Total liabilities and stockholders’ equity | $ 1,564,120 | $ 1,433,448 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2020 | Sep. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,857,000 | 88,857,000 |
Common stock, shares outstanding | 28,999,000 | 28,944,000 |
Treasury stock, shares | 59,858,000 | 59,913,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues | $ 313,731 | $ 314,249 | $ 920,206 | $ 854,739 |
Operating expenses: | ||||
Cost of revenues | 88,569 | 87,215 | 267,466 | 248,849 |
Research and development | 41,411 | 36,972 | 119,793 | 110,082 |
Selling, general and administrative | 99,832 | 102,906 | 315,318 | 308,094 |
Amortization of intangible assets | 1,048 | 1,448 | 4,046 | 4,453 |
Restructuring and acquisition-related | 0 | 0 | 3,104 | 0 |
Total operating expenses | 230,860 | 228,541 | 709,727 | 671,478 |
Operating income | 82,871 | 85,708 | 210,479 | 183,261 |
Interest expense, net | (11,223) | (10,111) | (32,245) | (29,795) |
Other income, net | 4,560 | 2,457 | 2,333 | 1,718 |
Income before income taxes | 76,208 | 78,054 | 180,567 | 155,184 |
Income tax provision | 12,132 | 13,902 | 3,282 | 17,644 |
Net income | 64,076 | 64,152 | 177,285 | 137,540 |
Other comprehensive gain (loss): | ||||
Foreign currency translation adjustments | 832 | (4,189) | (4,132) | (4,529) |
Comprehensive income | $ 64,908 | $ 59,963 | $ 173,153 | $ 133,011 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.21 | $ 2.21 | $ 6.10 | $ 4.74 |
Diluted (in dollars per share) | $ 2.15 | $ 2.12 | $ 5.92 | $ 4.54 |
Shares used in computing earnings per share: | ||||
Basic (in shares) | 29,005 | 28,967 | 29,075 | 29,000 |
Diluted (in shares) | 29,744 | 30,292 | 29,966 | 30,295 |
Transactional and Maintenance | ||||
Revenues | $ 246,829 | $ 226,040 | $ 707,905 | $ 632,012 |
Technology Service | ||||
Revenues | 43,633 | 44,594 | 135,563 | 135,957 |
License | ||||
Revenues | $ 23,269 | $ 43,615 | $ 76,738 | $ 86,770 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Sep. 30, 2018 | 29,015 | |||||
Beginning Balance at Sep. 30, 2018 | $ 287,437 | $ 290 | $ 1,211,051 | $ (2,612,007) | $ 1,764,524 | $ (76,421) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 61,931 | 61,931 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 696 | |||||
Issuance of treasury stock under employee stock plans | (35,136) | $ 7 | (66,243) | 31,100 | ||
Repurchases of common stock (in shares) | (780) | |||||
Repurchases of common stock | (178,926) | $ (8) | (178,918) | |||
Net income | 137,540 | 137,540 | ||||
Foreign currency translation adjustments | (4,529) | (4,529) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 28,931 | |||||
Ending Balance at Jun. 30, 2019 | 268,317 | $ 289 | 1,206,739 | (2,759,825) | 1,902,064 | (80,950) |
Beginning Balance (in shares) at Mar. 31, 2019 | 29,056 | |||||
Beginning Balance at Mar. 31, 2019 | 247,478 | $ 291 | 1,190,341 | (2,704,305) | 1,837,912 | (76,761) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 19,595 | 19,595 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 80 | |||||
Issuance of treasury stock under employee stock plans | 484 | $ 1 | (3,197) | 3,680 | ||
Repurchases of common stock (in shares) | (205) | |||||
Repurchases of common stock | (59,203) | $ (3) | (59,200) | |||
Net income | 64,152 | 64,152 | ||||
Foreign currency translation adjustments | (4,189) | (4,189) | ||||
Ending Balance (in shares) at Jun. 30, 2019 | 28,931 | |||||
Ending Balance at Jun. 30, 2019 | 268,317 | $ 289 | 1,206,739 | (2,759,825) | 1,902,064 | (80,950) |
Beginning Balance (in shares) at Sep. 30, 2019 | 28,944 | |||||
Beginning Balance at Sep. 30, 2019 | 289,767 | $ 289 | 1,225,365 | (2,802,450) | 1,956,648 | (90,085) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 68,197 | 68,197 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 670 | |||||
Issuance of treasury stock under employee stock plans | (73,831) | $ 7 | (105,845) | 32,007 | ||
Repurchases of common stock (in shares) | (615) | |||||
Repurchases of common stock | (210,000) | $ (6) | (209,994) | |||
Net income | 177,285 | 177,285 | ||||
Foreign currency translation adjustments | (4,132) | (4,132) | ||||
Ending Balance (in shares) at Jun. 30, 2020 | 28,999 | |||||
Ending Balance at Jun. 30, 2020 | 247,286 | $ 290 | 1,187,717 | (2,980,437) | 2,133,933 | (94,217) |
Beginning Balance (in shares) at Mar. 31, 2020 | 29,082 | |||||
Beginning Balance at Mar. 31, 2020 | 214,151 | $ 291 | 1,169,217 | (2,930,165) | 2,069,857 | (95,049) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 22,264 | 22,264 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 74 | |||||
Issuance of treasury stock under employee stock plans | (47) | $ 1 | (3,764) | 3,716 | ||
Repurchases of common stock (in shares) | (157) | |||||
Repurchases of common stock | (53,990) | $ (2) | (53,988) | |||
Net income | 64,076 | 64,076 | ||||
Foreign currency translation adjustments | 832 | 832 | ||||
Ending Balance (in shares) at Jun. 30, 2020 | 28,999 | |||||
Ending Balance at Jun. 30, 2020 | $ 247,286 | $ 290 | $ 1,187,717 | $ (2,980,437) | $ 2,133,933 | $ (94,217) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 177,285 | $ 137,540 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 23,549 | 23,734 |
Share-based compensation | 68,197 | 61,931 |
Deferred income taxes | (1,230) | 247 |
Net (gain) loss on marketable securities | (998) | 635 |
Amortization of Leased Asset | 14,962 | 0 |
Provision for doubtful accounts, net | 2,777 | 509 |
Net loss on sales of property and equipment | 61 | 22 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (18,961) | (53,288) |
Prepaid expenses and other assets | (9,734) | (5,369) |
Accounts payable | (1,815) | 631 |
Accrued compensation and employee benefits | (10,147) | 4,217 |
Other liabilities | (12,330) | (6,164) |
Deferred revenue | (2,886) | 291 |
Net Cash Provided by (Used in) Operating Activities | 228,730 | 164,936 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (21,073) | (18,170) |
Proceeds from sales of marketable securities | 3,462 | 3,228 |
Purchases of marketable securities | (5,790) | (5,858) |
Distribution from other investments | 55 | 0 |
Net Cash Provided by (Used in) Investing Activities | (23,346) | (20,800) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 193,000 | 167,000 |
Payments on revolving line of credit | (435,000) | (109,000) |
Proceeds from issuance of senior notes | 350,000 | 0 |
Payments on debt issuance costs | (6,840) | 0 |
Payment from finance lease | (811) | 0 |
Proceeds from issuance of treasury stock under employee stock plans | 26,235 | 16,073 |
Taxes paid related to net share settlement of equity awards | (100,067) | (51,208) |
Repurchases of common stock | (210,000) | (178,926) |
Net Cash Provided by (Used in) Financing Activities | (183,483) | (156,061) |
Effect of exchange rate changes on cash | (2,654) | 710 |
Increase (decrease) in cash and cash equivalents | 19,247 | (11,215) |
Cash and cash equivalents, beginning of period | 106,426 | 90,023 |
Cash and cash equivalents, end of period | 125,673 | 78,808 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 5,723 | 12,058 |
Interest Paid, Excluding Capitalized Interest, Operating Activities | 34,844 | 33,401 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | 50 | 690 |
Finance lease obligations incurred | $ 6,489 | $ 6,416 |
Nature of Business
Nature of Business | 9 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. In this Quarterly Report on Form 10-Q, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.” Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . 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. As discussed in New Accounting Pronouncements below and Note 13, effective October 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (Topic 842) ” and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, “Topic 842”) using the modified retrospective approach, under which financial results reported in prior periods were not restated. As a result, the condensed consolidated balance sheet as of June 30, 2020 is not comparable with that as of September 30, 2019. See our Annual Report on Form 10-K filed with the SEC on November 8, 2019 for lease policies that were in effect in prior periods before adoption of Topic 842. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectability of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. As the impact of the COVID-19 pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the condensed consolidated financial statements as new events occur and additional information becomes known. To the extent our actual results differ materially from those estimates and assumptions, our future financial statements could be affected. For more information, see Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q. New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Topic 842, which requires the recognition of operating lease assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, disclosures are required to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In the first quarter of fiscal 2020, we adopted Topic 842 using the “Comparatives Under 840 Option” approach to transition. In accordance with the standard, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Topic 842 provided a package of practical expedients that allow an entity to not reassess (1) whether any expired or existing contracts contain a lease, (2) the lease classification of any expired or existing lease, and (3) initial direct costs for any existing leases. We elected to apply the package of practical expedients, and did not elect the hindsight practical expedient in determining the lease term for existing leases as of October 1, 2019. Adoption of Topic 842 did not result in the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The most significant impact of adoption was the recognition of operating lease assets and operating lease liabilities of $89.8 million and $98.9 million , respectively, while our accounting for existing capital leases (now referred to as finance leases) remained substantially unchanged. We expect the impact of adoption to be immaterial to our consolidated statements of income and comprehensive income and consolidated statements of cash flows on an ongoing basis. As part of our adoption, we also modified our control procedures and processes, none of which materially affected our internal control over financial reporting. See Note 13 for additional information regarding our accounting policy for leases and additional disclosures. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other (Topic 350): Internal-Use Software ” (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means that it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We do not believe that adoption of ASU 2018-15 will have a significant impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-11 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We do not believe that adoption of Topic 326 will have a significant impact on our consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. • Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain marketable securities. We do not have any liabilities that are valued using inputs identified under a Level 1 hierarchy as of June 30, 2020 and September 30, 2019 . • 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, 2020 and September 30, 2019 . We measure the fair value of the Senior Notes (as defined in Note 7) based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. • Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of June 30, 2020 and September 30, 2019 . The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2020 and September 30, 2019 : June 30, 2020 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2020 (In thousands) Assets: Cash equivalents (1) $ 24,334 $ 24,334 Marketable securities (2) 23,549 23,549 Total $ 47,883 $ 47,883 September 30, 2019 Active Markets for Fair Value as of September 30, 2019 (In thousands) Assets: Cash equivalents (1) $ 28,901 $ 28,901 Marketable securities (2) 20,222 20,222 Total $ 49,123 $ 49,123 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . Not included in these tables are cash deposits of $101.3 million and $77.5 million at June 30, 2020 and September 30, 2019 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . For the fair value of our derivative instruments and senior notes, see Note 3 and Note 7, respectively. There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and nine-month periods ended June 30, 2020 and 2019 . |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their respective functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar. Foreign-currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income, net. The forward contracts are not designated as hedges and are marked to market through other income, net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months . The following tables summarize our outstanding foreign currency forward contracts, by currency, at June 30, 2020 and September 30, 2019 : June 30, 2020 Contract Amount Fair Value Foreign Currency USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 10,400 $ 11,629 $ — Buy foreign currency: British pound (GBP) GBP 19,434 $ 23,900 $ — Singapore dollar (SGD) SGD 9,895 $ 7,100 $ — September 30, 2019 Contract Amount Fair Value Foreign Currency USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 10,800 $ 11,723 $ — Buy foreign currency: British pound (GBP) GBP 5,200 $ 6,400 $ — Singapore dollar (SGD) SGD 5,798 $ 4,200 $ — The foreign currency forward contracts were entered into on June 30, 2020 and September 30, 2019 , respectively; therefore, their fair value was $0 on each of these dates. Losses on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands) Losses on foreign currency forward contracts $ 380 $ 928 $ 1,429 $ 612 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is excluded from cost of revenues and selling, general and administrative expenses within the accompanying condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands) Completed technology $ 406 $ 452 $ 1,444 $ 1,440 Customer contracts and relationships 561 996 2,359 3,013 Trade names 37 — 112 — Non-compete agreements 44 — 131 — Total $ 1,048 $ 1,448 $ 4,046 $ 4,453 Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2020 was as follows: Year Ending September 30, (In thousands) 2020 (excluding the nine months ended June 30, 2020) $ 938 2021 3,617 2022 3,330 2023 1,317 2024 917 $ 10,119 The following table summarizes changes to goodwill during the nine months ended June 30, 2020 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2019 $ 588,614 $ 146,648 $ 68,280 $ 803,542 Foreign currency translation adjustment 986 — — 986 Balance at June 30, 2020 $ 589,600 $ 146,648 $ 68,280 $ 804,528 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 and September 30, 2019 : June 30, September 30, (In thousands) Property and equipment $ 190,932 $ 172,075 Less: accumulated depreciation and amortization (130,596 ) (119,048 ) $ 60,336 $ 53,027 |
Revolving Line of Credit
Revolving Line of Credit | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit We have a $400 million unsecured revolving line of credit with a syndicate of banks that expires on May 8, 2023 with an option to increase it by another $100 million . Proceeds from the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions and the repurchase of our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate, (b) the Federal Funds rate plus 0.500% and (c) the one-month LIBOR rate plus 1.000% , plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.875% and for LIBOR borrowings ranges from 1.000% to 1.875% , and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including maintaining a maximum consolidated leverage ratio of 3.25 on an average trailing four-quarter basis, subject to a step up to 3.75 following certain permitted acquisitions; and a minimum fixed charge ratio of 2.50 through the maturity of our 2010 Senior Notes (as defined in Note 7) in July 2020, upon which maintaining a minimum interest coverage ratio of 3.00 . The credit agreement also contains other covenants typical of unsecured facilities. As of June 30, 2020 , we had $103.0 million in borrowings outstanding at a weighted average interest rate of 1.313% and were in compliance with all financial covenants under this credit facility. |
Senior Notes
Senior Notes | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The outstanding 2010 Senior Notes’ weighted average interest rate is 5.6% and the weighted average maturity is 10.0 years . The 2010 Senior Notes required interest payments semi-annually and contained certain restrictive covenants, including the maintenance of a maximum consolidated net debt to consolidated EBITDA ratio of 3.00 and a minimum fixed charge coverage ratio of 2.50 . We were in compliance with all financial covenants under the 2010 Senior Notes as of June 30, 2020 . In July 2020, we repaid $85 million in principal due at maturity of the remaining outstanding 2010 Senior Notes, and no 2010 Senior Notes remained outstanding following such repayment. On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026 . On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes,” along with the 2010 Senior Notes and 2018 Senior Notes, the “Senior Notes”). We have used the net proceeds to repay a large portion of the outstanding balance on our revolving credit facility. The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028 . The purchase agreements for the 2010 Senior Notes, as well as the indentures for the 2018 Senior Notes and the 2019 Senior Notes, contain certain covenants typical of unsecured obligations. The following table presents the face values and fair values for the Senior Notes at June 30, 2020 and September 30, 2019 : June 30, 2020 September 30, 2019 Face Value (*) Fair Value Face Value (*) Fair Value (In thousands) The 2010 Senior Notes 85,000 85,085 85,000 86,121 The 2018 Senior Notes 400,000 438,000 400,000 428,000 The 2019 Senior Notes 350,000 350,000 — — Total $ 835,000 $ 873,085 $ 485,000 $ 514,121 (*) The carrying value of the Senior Notes was reduced by the net debt issuance costs of $11.0 million and $5.2 million at June 30, 2020 and September 30, 2019 , 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 Restruct
Restructuring Expenses Restructuring Expenses | 9 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Restructuring Expenses There were no restructuring expenses incurred during the quarter ended June 30, 2020. During the nine-month period ended June 30, 2020, we incurred $3.1 million in employee separation costs due to the elimination of 69 positions throughout the Company. We expect that cash payment for all the employee separation costs will be paid by the end of our fiscal 2020. There were no restructuring expenses incurred during the quarter and nine-month period ended June 30, 2019. The following table summarizes our restructuring accruals related to facility closures and employee separation. The balances at June 30, 2020 and September 30, 2019 were classified as current liabilities and recorded in other accrued liabilities within the accompanying condensed consolidated balance sheets. Accrual at Expense Additions Cash Payments Adjustment (*) Accrual at September 30, 2019 June 30, 2020 (In thousands) Facilities charges $ 1,378 $ — $ — $ (1,378 ) $ — Employee separation — 3,104 (3,007 ) — 97 $ 1,378 $ 3,104 $ (3,007 ) $ (1,378 ) $ 97 (*) Upon adoption of Topic 842, accrued lease exit obligations of $1.4 million , which were associated with vacating excess leased space in fiscal 2017, were reclassified to operating lease liabilities. |
Income Taxes
Income Taxes | 9 Months Ended |
Jun. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate was 15.9% and 17.8% during the quarters ended June 30, 2020 and 2019 , respectively, and 1.8% and 11.4% during the nine months ended June 30, 2020 and 2019 , respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The effective tax rates for the nine months ended June 30, 2020 and 2019 were both impacted by the recording of excess tax benefits relating to stock awards. Stock exercises during the nine months ended June 30, 2020 resulted in an additional increase in excess tax benefits. The total unrecognized tax benefit for uncertain tax positions is estimated to be $6.8 million and $5.8 million at June 30, 2020 and September 30, 2019 , 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 $0.4 million and $0.3 million related to unrecognized tax benefits as of June 30, 2020 and September 30, 2019 , respectively. |
Earnings per Share
Earnings per Share | 9 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and nine-month periods ended June 30, 2020 and 2019 : Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net income $ 64,076 $ 64,152 $ 177,285 $ 137,540 Denominator - share: Basic weighted-average shares 29,005 28,967 29,075 29,000 Effect of dilutive securities 739 1,325 891 1,295 Diluted weighted-average shares 29,744 30,292 29,966 30,295 Earnings per share: Basic $ 2.21 $ 2.21 $ 6.10 $ 4.74 Diluted $ 2.15 $ 2.12 $ 5.92 $ 4.54 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 13,000 options excluded for the quarter ended June 30, 2020. There were no options excluded for the quarter ended June 30, 2019. There were approximately 14,000 and 5,000 options excluded for the nine months ended June 30, 2020 and 2019, respectively. |
Segment Information
Segment Information | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are organized into the following three operating segments, each of which is a reportable segment, to align with internal management of our worldwide business operations based on product offerings. • Applications . This segment includes pre-configured decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud, collections and insurance claims management — as well as associated professional services. These applications are available to our customers as on-premises software, and many are available as hosted, software-as-a-service (“SaaS”) applications through the FICO ® Analytic Cloud or third-party public clouds, such as those provided by Amazon Web Services (“AWS”). • 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. • Decision Management Software. This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our FICO ® Decision Management Suite, as well as associated professional services. These tools are available to our customers as on-premises software or through the FICO ® Analytic Cloud or third-party public clouds, such as those provided by AWS. Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets, nor capital expenditures where depreciation amounts are allocated to the segments from their internal cost centers as described above. The following tables summarize segment information for the quarters and nine-month periods ended June 30, 2020 and 2019 : Quarter Ended June 30, 2020 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 98,476 $ 130,268 $ 18,085 $ — $ 246,829 Professional services 32,364 58 11,211 — 43,633 License 10,620 1,224 11,425 — 23,269 Total segment revenues 141,460 131,550 40,721 — 313,731 Segment operating expense (111,061 ) (21,333 ) (43,839 ) (31,315 ) (207,548 ) Segment operating income (loss) $ 30,399 $ 110,217 $ (3,118 ) $ (31,315 ) 106,183 Unallocated share-based compensation expense (22,264 ) Unallocated amortization expense (1,048 ) Operating income 82,871 Unallocated interest expense, net (11,223 ) Unallocated other income, net 4,560 Income before income taxes $ 76,208 Depreciation expense $ 5,091 $ 176 $ 1,156 $ 28 $ 6,451 Quarter Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 100,385 $ 112,949 $ 12,706 $ — $ 226,040 Professional services 33,989 392 10,213 — 44,594 License 31,263 1,805 10,547 — 43,615 Total segment revenues 165,637 115,146 33,466 — 314,249 Segment operating expense (113,400 ) (15,850 ) (42,229 ) (36,019 ) (207,498 ) Segment operating income (loss) $ 52,237 $ 99,296 $ (8,763 ) $ (36,019 ) 106,751 Unallocated share-based compensation expense (19,595 ) Unallocated amortization expense (1,448 ) Operating income 85,708 Unallocated interest expense, net (10,111 ) Unallocated other income, net 2,457 Income before income taxes $ 78,054 Depreciation expense $ 4,800 $ 130 $ 1,027 $ 222 $ 6,179 Nine Months Ended June 30, 2020 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 295,102 $ 365,324 $ 47,479 $ — $ 707,905 Professional services 101,521 1,141 32,901 — 135,563 License 37,294 9,371 30,073 — 76,738 Total segment revenues 433,917 375,836 110,453 — 920,206 Segment operating expense (338,527 ) (54,705 ) (141,838 ) (99,310 ) (634,380 ) Segment operating income (loss) $ 95,390 $ 321,131 $ (31,385 ) $ (99,310 ) 285,826 Unallocated share-based compensation expense (68,197 ) Unallocated amortization expense (4,046 ) Unallocated restructuring and acquisition-related (3,104 ) Operating income 210,479 Unallocated interest expense, net (32,245 ) Unallocated other income, net 2,333 Income before income taxes $ 180,567 Depreciation expense $ 13,993 $ 433 $ 3,300 $ 361 $ 18,087 Nine Months Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 294,624 $ 300,133 $ 37,255 $ — $ 632,012 Professional services 101,432 1,994 32,531 — 135,957 License 59,055 3,105 24,610 — 86,770 Total segment revenues 455,111 305,232 94,396 — 854,739 Segment operating expense (332,641 ) (45,499 ) (122,175 ) (104,779 ) (605,094 ) Segment operating income (loss) $ 122,470 $ 259,733 $ (27,779 ) $ (104,779 ) 249,645 Unallocated share-based compensation expense (61,931 ) Unallocated amortization expense (4,453 ) Operating income 183,261 Unallocated interest expense, net (29,795 ) Unallocated other income, net 1,718 Income before income taxes $ 155,184 Depreciation expense $ 14,259 $ 387 $ 2,988 $ 684 $ 18,318 Information about disaggregated revenue by product deployment methods was as follows: Quarter Ended June 30, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 76,493 $ 64,967 $ — $ 141,460 45 % Scores — — 131,550 131,550 42 % Decision Management Software 29,063 11,658 — 40,721 13 % Total $ 105,556 $ 76,625 $ 131,550 $ 313,731 100 % Quarter Ended June 30, 2019 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 102,673 $ 62,964 $ — $ 165,637 53 % Scores — — 115,146 115,146 37 % Decision Management Software 27,138 6,328 — 33,466 10 % Total $ 129,811 $ 69,292 $ 115,146 $ 314,249 100 % Nine Months Ended June 30, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 238,812 $ 195,105 $ — $ 433,917 47 % Scores — — 375,836 375,836 41 % Decision Management Software 81,589 28,864 — 110,453 12 % Total $ 320,401 $ 223,969 $ 375,836 $ 920,206 100 % Nine Months Ended June 30, 2019 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 273,579 $ 181,532 $ — $ 455,111 53 % Scores — — 305,232 305,232 36 % Decision Management Software 76,472 17,924 — 94,396 11 % Total $ 350,051 $ 199,456 $ 305,232 $ 854,739 100 % Information about disaggregated revenue by primary geographical markets was as follows: Quarter Ended June 30, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 78,639 $ 12,069 $ 34,175 $ 16,577 $ 141,460 Scores 128,686 113 1,505 1,246 131,550 Decision Management Software 23,164 4,626 8,427 4,504 40,721 Total $ 230,489 $ 16,808 $ 44,107 $ 22,327 $ 313,731 Quarter Ended June 30, 2019 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 88,210 $ 7,088 $ 54,171 $ 16,168 $ 165,637 Scores 110,728 768 2,191 1,459 115,146 Decision Management Software 14,930 5,448 8,680 4,408 33,466 Total $ 213,868 $ 13,304 $ 65,042 $ 22,035 $ 314,249 Nine Months Ended June 30, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 243,005 $ 31,258 $ 108,230 $ 51,424 $ 433,917 Scores 362,132 3,016 4,763 5,925 375,836 Decision Management Software 59,758 14,876 22,612 13,207 110,453 Total $ 664,895 $ 49,150 $ 135,605 $ 70,556 $ 920,206 Nine Months Ended June 30, 2019 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 256,385 $ 32,011 $ 119,971 $ 46,744 $ 455,111 Scores 293,292 2,650 5,197 4,093 305,232 Decision Management Software 45,354 14,000 21,977 13,065 94,396 Total $ 595,031 $ 48,661 $ 147,145 $ 63,902 $ 854,739 |
Contract Balances and Performan
Contract Balances and Performance Obligation | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue from Contract with Customer | Contract Balances and Performance Obligations Contract Balances We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. Receivables at June 30, 2020 and September 30, 2019 consisted of the following: June 30, September 30, (In thousands) Billed $ 195,159 $ 206,714 Unbilled 154,365 127,651 349,524 334,365 Less: allowance for doubtful accounts (4,753 ) (2,568 ) Net receivables 344,771 331,797 Less: long-term receivables * (41,213 ) (34,370 ) Short-term receivables * $ 303,558 $ 297,427 (*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets. Contract assets balance at June 30, 2020 and September 30, 2019 was immaterial. Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances during the nine months ended June 30, 2020 were as follows: Nine Months Ended (In thousands) Deferred revenues at September 30, 2019 $ 116,320 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (91,337 ) Increases due to billings, excluding amounts recognized as revenue during the period 86,749 Deferred revenues at June 30, 2020 $ 111,732 (*) Deferred revenues at September 30, 2019 included current portion of $111.0 million and long-term portion of $5.3 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at June 30, 2020 included current portion of $105.8 million and long-term portion of $5.9 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront, and invoicing at the beginning of a SaaS subscription term with revenue recognized ratably over the contract period. Performance Obligations Revenue allocated to remaining performance obligations represents contracted revenue that will be recognized in future periods, which is comprised of deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. This does not include: • Revenue that will be recognized in future periods from usage-based royalty from license sales; • SaaS transactional revenue from variable considerations that will be recognized in the distinct service period during which it is earned; and • Revenue from variable considerations that will be recognized in accordance with the “right-to-invoice” practical expedient, such as fees from our professional services billed based on a time and materials basis. Revenue allocated to remaining performance obligations was $247.2 million as of June 30, 2020 , of which we expect to recognize approximately 54% over the next 18 months and the remainder thereafter. |
Leases
Leases | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | Leases We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our condensed consolidated balance sheets as either operating or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our condensed consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the lease balances within the condensed consolidated balance sheets: Balance Sheet Location June 30, 2020 (In thousands) Assets Operating leases Operating lease right-of-use assets $ 84,106 Finance leases (*) Property and equipment, net 9,810 Total lease assets $ 93,916 Liabilities Current: Operating leases Other accrued liabilities $ 20,012 Finance leases Other accrued liabilities 5,248 Non-current: Operating leases Operating lease liabilities 74,000 Finance leases Other liabilities 5,857 Total lease liabilities $ 105,117 (*) Finance leases are recorded net of accumulated depreciation of $3.1 million . The components of our operating and finance lease expenses were as follows: Quarter Ended Nine Months Ended June 30, 2020 (In thousands) Operating lease cost $ 5,763 $ 17,689 Finance lease cost: Depreciation of lease assets 1,048 2,316 Interest on lease liabilities 87 235 Short-term lease cost 244 1,051 Variable lease cost 758 2,578 Total lease cost $ 7,900 $ 23,869 The following table presents weighted average lease term and weighted average discount rates related to our operating and finance leases: June 30, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in months) 65 30 Weighted average discount rate 3.98 % 3.43 % Supplemental cash flow information related to our operating and finance leases was as follows: Nine Months Ended June 30, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 14,194 Operating cash outflow for finance leases 235 Financing cash outflow for finance leases 811 Lease assets obtained in exchange for new lease liabilities: Operating leases 10,437 Finance leases 6,489 Future lease payments under our non-cancellable leases as of June 30, 2020 were as follows: (In thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 5,455 $ 2,384 Fiscal 2021 23,669 4,175 Fiscal 2022 19,271 4,174 Fiscal 2023 17,312 784 Fiscal 2024 14,741 — Fiscal 2025 8,361 — Thereafter 15,267 — Total future undiscounted lease payments 104,076 11,517 Less imputed interest (10,064 ) (412 ) Total reported lease liability $ 94,012 $ 11,105 In accordance with the prior guidance—ASC 840, Leases—our leases were previously designated as either capital or operating. Previously designated capital leases are now considered finance leases under the new guidance, Topic 842. The designation of operating leases remains substantially unchanged under the new guidance. The future minimum lease payments by fiscal year as determined prior to the adoption of Topic 842 under our previously designated capital and operating leases as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, were as follows: (In thousands) Operating Leases Capital Leases Fiscal 2020 $ 19,842 $ 1,935 Fiscal 2021 19,969 1,934 Fiscal 2022 17,677 1,934 Fiscal 2023 16,940 — Fiscal 2024 14,887 — Thereafter 24,431 — Total minimum lease payments $ 113,746 5,803 Less amount representing interest (379 ) Present value of minimum lease payments $ 5,424 |
Leases | Leases We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our condensed consolidated balance sheets as either operating or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our condensed consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. The following table presents the lease balances within the condensed consolidated balance sheets: Balance Sheet Location June 30, 2020 (In thousands) Assets Operating leases Operating lease right-of-use assets $ 84,106 Finance leases (*) Property and equipment, net 9,810 Total lease assets $ 93,916 Liabilities Current: Operating leases Other accrued liabilities $ 20,012 Finance leases Other accrued liabilities 5,248 Non-current: Operating leases Operating lease liabilities 74,000 Finance leases Other liabilities 5,857 Total lease liabilities $ 105,117 (*) Finance leases are recorded net of accumulated depreciation of $3.1 million . The components of our operating and finance lease expenses were as follows: Quarter Ended Nine Months Ended June 30, 2020 (In thousands) Operating lease cost $ 5,763 $ 17,689 Finance lease cost: Depreciation of lease assets 1,048 2,316 Interest on lease liabilities 87 235 Short-term lease cost 244 1,051 Variable lease cost 758 2,578 Total lease cost $ 7,900 $ 23,869 The following table presents weighted average lease term and weighted average discount rates related to our operating and finance leases: June 30, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in months) 65 30 Weighted average discount rate 3.98 % 3.43 % Supplemental cash flow information related to our operating and finance leases was as follows: Nine Months Ended June 30, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 14,194 Operating cash outflow for finance leases 235 Financing cash outflow for finance leases 811 Lease assets obtained in exchange for new lease liabilities: Operating leases 10,437 Finance leases 6,489 Future lease payments under our non-cancellable leases as of June 30, 2020 were as follows: (In thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 5,455 $ 2,384 Fiscal 2021 23,669 4,175 Fiscal 2022 19,271 4,174 Fiscal 2023 17,312 784 Fiscal 2024 14,741 — Fiscal 2025 8,361 — Thereafter 15,267 — Total future undiscounted lease payments 104,076 11,517 Less imputed interest (10,064 ) (412 ) Total reported lease liability $ 94,012 $ 11,105 In accordance with the prior guidance—ASC 840, Leases—our leases were previously designated as either capital or operating. Previously designated capital leases are now considered finance leases under the new guidance, Topic 842. The designation of operating leases remains substantially unchanged under the new guidance. The future minimum lease payments by fiscal year as determined prior to the adoption of Topic 842 under our previously designated capital and operating leases as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, were as follows: (In thousands) Operating Leases Capital Leases Fiscal 2020 $ 19,842 $ 1,935 Fiscal 2021 19,969 1,934 Fiscal 2022 17,677 1,934 Fiscal 2023 16,940 — Fiscal 2024 14,887 — Thereafter 24,431 — Total minimum lease payments $ 113,746 5,803 Less amount representing interest (379 ) Present value of minimum lease payments $ 5,424 |
Contingencies
Contingencies | 9 Months Ended |
Jun. 30, 2020 | |
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, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events In July 2020, our Board of Directors approved a new stock repurchase program following the completion of a similar program that was approved in July 2019. 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, 2020 | |
Accounting Policies [Abstract] | |
Fair Isaac Corporation | Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. In this Quarterly Report on Form 10-Q, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.” |
Principles of Consolidation and Basis of Presentation | Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019 . 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. As discussed in New Accounting Pronouncements below and Note 13, effective October 1, 2019, we adopted Accounting Standards Update (“ASU”) No. 2016-02, “ Leases (Topic 842) ” and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11, ASU 2018-20 and ASU 2019-01 (collectively, “Topic 842”) using the modified retrospective approach, under which financial results reported in prior periods were not restated. As a result, the condensed consolidated balance sheet as of June 30, 2020 is not comparable with that as of September 30, 2019. See our Annual Report on Form 10-K filed with the SEC on November 8, 2019 for lease policies that were in effect in prior periods before adoption of Topic 842. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectability of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. As the impact of the COVID-19 pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the condensed consolidated financial statements as new events occur and additional information becomes known. To the extent our actual results differ materially from those estimates and assumptions, our future financial statements could be affected. For more information, see Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q. |
New Accounting Pronouncements | New Accounting Pronouncements Recently Adopted Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Topic 842, which requires the recognition of operating lease assets and lease liabilities on the balance sheet. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. Under the new standard, disclosures are required to enable users of financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. In the first quarter of fiscal 2020, we adopted Topic 842 using the “Comparatives Under 840 Option” approach to transition. In accordance with the standard, the comparative information has not been restated and continues to be reported under the accounting standards in effect for those periods. Topic 842 provided a package of practical expedients that allow an entity to not reassess (1) whether any expired or existing contracts contain a lease, (2) the lease classification of any expired or existing lease, and (3) initial direct costs for any existing leases. We elected to apply the package of practical expedients, and did not elect the hindsight practical expedient in determining the lease term for existing leases as of October 1, 2019. Adoption of Topic 842 did not result in the recognition of a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. The most significant impact of adoption was the recognition of operating lease assets and operating lease liabilities of $89.8 million and $98.9 million , respectively, while our accounting for existing capital leases (now referred to as finance leases) remained substantially unchanged. We expect the impact of adoption to be immaterial to our consolidated statements of income and comprehensive income and consolidated statements of cash flows on an ongoing basis. As part of our adoption, we also modified our control procedures and processes, none of which materially affected our internal control over financial reporting. See Note 13 for additional information regarding our accounting policy for leases and additional disclosures. Recent Accounting Pronouncements Not Yet Adopted In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other (Topic 350): Internal-Use Software ” (“ASU 2018-15”). ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a cloud computing arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The standard is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means that it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We do not believe that adoption of ASU 2018-15 will have a significant impact on our consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ” and subsequent amendments to the initial guidance: ASU 2018-19, ASU 2019-04, ASU 2019-05 and ASU 2019-11 (collectively, “Topic 326”). Topic 326 requires measurement and recognition of expected credit losses for financial assets held. Topic 326 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2019, which means it will be effective for our fiscal year beginning October 1, 2020. Early adoption is permitted. We do not believe that adoption of Topic 326 will have a significant impact on our consolidated financial statements. We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements. |
Contract Balances | In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront, and invoicing at the beginning of a SaaS subscription term with revenue recognized ratably over the contract period. We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation. |
Leases | We lease office space and data centers under operating lease arrangements, which constitute the majority of our lease obligations. We also enter into finance lease agreements from time to time for certain computer equipment. For any lease with a lease term in excess of 12 months, the related lease assets and liabilities are recognized on our condensed consolidated balance sheets as either operating or finance leases at the commencement of an agreement where it is determined that a lease exists. We have lease agreements that contain both lease and non-lease components, and we have elected to combine these components together and account for them as a single lease component for all classes of assets. Leases with a lease term of 12 months or less are not recorded on our condensed consolidated balance sheets. Furthermore, we recognize lease expense for these leases on a straight-line basis over the lease term. Operating lease assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent the obligation to make lease payments arising from the lease. These assets and liabilities are recognized based on the present value of future payments over the lease term at the commencement date. We use a collateralized incremental borrowing rate based on the information available at the commencement date, including the lease term, in determining the present value of future payments. In calculating the incremental borrowing rates, we consider recent ratings from credit agencies and current lease demographic information. Our operating leases also typically require payment of real estate taxes, common area maintenance, insurance and other operating costs as well as payments that are adjusted based on a consumer price index. These components comprise the majority of our variable lease cost and are excluded from the present value of our lease obligations. In instances where they are fixed, they are included due to our election to combine lease and non-lease components. Operating lease assets also include prepaid lease payments and initial direct costs, and are reduced by lease incentives. Our lease terms generally do not include options to extend or terminate the lease unless it is reasonably certain that the option will be exercised. Fixed payments may contain predetermined fixed rent escalations. We recognize the related rent expense on a straight-line basis from the commencement date to the end of the lease term. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured on a Recurring Basis | The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2020 and September 30, 2019 : June 30, 2020 Active Markets for Identical Instruments (Level 1) Fair Value as of June 30, 2020 (In thousands) Assets: Cash equivalents (1) $ 24,334 $ 24,334 Marketable securities (2) 23,549 23,549 Total $ 47,883 $ 47,883 September 30, 2019 Active Markets for Fair Value as of September 30, 2019 (In thousands) Assets: Cash equivalents (1) $ 28,901 $ 28,901 Marketable securities (2) 20,222 20,222 Total $ 49,123 $ 49,123 (1) Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . Not included in these tables are cash deposits of $101.3 million and $77.5 million at June 30, 2020 and September 30, 2019 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Foreign Currency Forward Contracts | The following tables summarize our outstanding foreign currency forward contracts, by currency, at June 30, 2020 and September 30, 2019 : June 30, 2020 Contract Amount Fair Value Foreign Currency USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 10,400 $ 11,629 $ — Buy foreign currency: British pound (GBP) GBP 19,434 $ 23,900 $ — Singapore dollar (SGD) SGD 9,895 $ 7,100 $ — September 30, 2019 Contract Amount Fair Value Foreign Currency USD USD (In thousands) Sell foreign currency: Euro (EUR) EUR 10,800 $ 11,723 $ — Buy foreign currency: British pound (GBP) GBP 5,200 $ 6,400 $ — Singapore dollar (SGD) SGD 5,798 $ 4,200 $ — |
Losses on Derivative Financial Instruments | Losses on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands) Losses on foreign currency forward contracts $ 380 $ 928 $ 1,429 $ 612 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization Expense | Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is excluded from cost of revenues and selling, general and administrative expenses within the accompanying condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands) Completed technology $ 406 $ 452 $ 1,444 $ 1,440 Customer contracts and relationships 561 996 2,359 3,013 Trade names 37 — 112 — Non-compete agreements 44 — 131 — Total $ 1,048 $ 1,448 $ 4,046 $ 4,453 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2020 was as follows: Year Ending September 30, (In thousands) 2020 (excluding the nine months ended June 30, 2020) $ 938 2021 3,617 2022 3,330 2023 1,317 2024 917 $ 10,119 |
Schedule of Goodwill | The following table summarizes changes to goodwill during the nine months ended June 30, 2020 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2019 $ 588,614 $ 146,648 $ 68,280 $ 803,542 Foreign currency translation adjustment 986 — — 986 Balance at June 30, 2020 $ 589,600 $ 146,648 $ 68,280 $ 804,528 |
Composition of Certain Financ_2
Composition of Certain Financial Statement Captions (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at June 30, 2020 and September 30, 2019 : June 30, September 30, (In thousands) Property and equipment $ 190,932 $ 172,075 Less: accumulated depreciation and amortization (130,596 ) (119,048 ) $ 60,336 $ 53,027 |
Senior Notes (Tables)
Senior Notes (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Senior Notes | The following table presents the face values and fair values for the Senior Notes at June 30, 2020 and September 30, 2019 : June 30, 2020 September 30, 2019 Face Value (*) Fair Value Face Value (*) Fair Value (In thousands) The 2010 Senior Notes 85,000 85,085 85,000 86,121 The 2018 Senior Notes 400,000 438,000 400,000 428,000 The 2019 Senior Notes 350,000 350,000 — — Total $ 835,000 $ 873,085 $ 485,000 $ 514,121 (*) The carrying value of the Senior Notes was reduced by the net debt issuance costs of $11.0 million and $5.2 million at June 30, 2020 and September 30, 2019 , respectively. |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accruals | The following table summarizes our restructuring accruals related to facility closures and employee separation. The balances at June 30, 2020 and September 30, 2019 were classified as current liabilities and recorded in other accrued liabilities within the accompanying condensed consolidated balance sheets. Accrual at Expense Additions Cash Payments Adjustment (*) Accrual at September 30, 2019 June 30, 2020 (In thousands) Facilities charges $ 1,378 $ — $ — $ (1,378 ) $ — Employee separation — 3,104 (3,007 ) — 97 $ 1,378 $ 3,104 $ (3,007 ) $ (1,378 ) $ 97 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and nine-month periods ended June 30, 2020 and 2019 : Quarter Ended June 30, Nine Months Ended June 30, 2020 2019 2020 2019 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net income $ 64,076 $ 64,152 $ 177,285 $ 137,540 Denominator - share: Basic weighted-average shares 29,005 28,967 29,075 29,000 Effect of dilutive securities 739 1,325 891 1,295 Diluted weighted-average shares 29,744 30,292 29,966 30,295 Earnings per share: Basic $ 2.21 $ 2.21 $ 6.10 $ 4.74 Diluted $ 2.15 $ 2.12 $ 5.92 $ 4.54 |
Segment Information (Tables)
Segment Information (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables summarize segment information for the quarters and nine-month periods ended June 30, 2020 and 2019 : Quarter Ended June 30, 2020 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 98,476 $ 130,268 $ 18,085 $ — $ 246,829 Professional services 32,364 58 11,211 — 43,633 License 10,620 1,224 11,425 — 23,269 Total segment revenues 141,460 131,550 40,721 — 313,731 Segment operating expense (111,061 ) (21,333 ) (43,839 ) (31,315 ) (207,548 ) Segment operating income (loss) $ 30,399 $ 110,217 $ (3,118 ) $ (31,315 ) 106,183 Unallocated share-based compensation expense (22,264 ) Unallocated amortization expense (1,048 ) Operating income 82,871 Unallocated interest expense, net (11,223 ) Unallocated other income, net 4,560 Income before income taxes $ 76,208 Depreciation expense $ 5,091 $ 176 $ 1,156 $ 28 $ 6,451 Quarter Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 100,385 $ 112,949 $ 12,706 $ — $ 226,040 Professional services 33,989 392 10,213 — 44,594 License 31,263 1,805 10,547 — 43,615 Total segment revenues 165,637 115,146 33,466 — 314,249 Segment operating expense (113,400 ) (15,850 ) (42,229 ) (36,019 ) (207,498 ) Segment operating income (loss) $ 52,237 $ 99,296 $ (8,763 ) $ (36,019 ) 106,751 Unallocated share-based compensation expense (19,595 ) Unallocated amortization expense (1,448 ) Operating income 85,708 Unallocated interest expense, net (10,111 ) Unallocated other income, net 2,457 Income before income taxes $ 78,054 Depreciation expense $ 4,800 $ 130 $ 1,027 $ 222 $ 6,179 Nine Months Ended June 30, 2020 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 295,102 $ 365,324 $ 47,479 $ — $ 707,905 Professional services 101,521 1,141 32,901 — 135,563 License 37,294 9,371 30,073 — 76,738 Total segment revenues 433,917 375,836 110,453 — 920,206 Segment operating expense (338,527 ) (54,705 ) (141,838 ) (99,310 ) (634,380 ) Segment operating income (loss) $ 95,390 $ 321,131 $ (31,385 ) $ (99,310 ) 285,826 Unallocated share-based compensation expense (68,197 ) Unallocated amortization expense (4,046 ) Unallocated restructuring and acquisition-related (3,104 ) Operating income 210,479 Unallocated interest expense, net (32,245 ) Unallocated other income, net 2,333 Income before income taxes $ 180,567 Depreciation expense $ 13,993 $ 433 $ 3,300 $ 361 $ 18,087 Nine Months Ended June 30, 2019 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 294,624 $ 300,133 $ 37,255 $ — $ 632,012 Professional services 101,432 1,994 32,531 — 135,957 License 59,055 3,105 24,610 — 86,770 Total segment revenues 455,111 305,232 94,396 — 854,739 Segment operating expense (332,641 ) (45,499 ) (122,175 ) (104,779 ) (605,094 ) Segment operating income (loss) $ 122,470 $ 259,733 $ (27,779 ) $ (104,779 ) 249,645 Unallocated share-based compensation expense (61,931 ) Unallocated amortization expense (4,453 ) Operating income 183,261 Unallocated interest expense, net (29,795 ) Unallocated other income, net 1,718 Income before income taxes $ 155,184 Depreciation expense $ 14,259 $ 387 $ 2,988 $ 684 $ 18,318 |
Disaggregation of Revenue [Table Text Block] | Information about disaggregated revenue by product deployment methods was as follows: Quarter Ended June 30, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 76,493 $ 64,967 $ — $ 141,460 45 % Scores — — 131,550 131,550 42 % Decision Management Software 29,063 11,658 — 40,721 13 % Total $ 105,556 $ 76,625 $ 131,550 $ 313,731 100 % Quarter Ended June 30, 2019 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 102,673 $ 62,964 $ — $ 165,637 53 % Scores — — 115,146 115,146 37 % Decision Management Software 27,138 6,328 — 33,466 10 % Total $ 129,811 $ 69,292 $ 115,146 $ 314,249 100 % Nine Months Ended June 30, 2020 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 238,812 $ 195,105 $ — $ 433,917 47 % Scores — — 375,836 375,836 41 % Decision Management Software 81,589 28,864 — 110,453 12 % Total $ 320,401 $ 223,969 $ 375,836 $ 920,206 100 % Nine Months Ended June 30, 2019 Reportable Segments On-Premises SaaS Scores Total Percentage (Dollars in thousands) Applications $ 273,579 $ 181,532 $ — $ 455,111 53 % Scores — — 305,232 305,232 36 % Decision Management Software 76,472 17,924 — 94,396 11 % Total $ 350,051 $ 199,456 $ 305,232 $ 854,739 100 % Information about disaggregated revenue by primary geographical markets was as follows: Quarter Ended June 30, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 78,639 $ 12,069 $ 34,175 $ 16,577 $ 141,460 Scores 128,686 113 1,505 1,246 131,550 Decision Management Software 23,164 4,626 8,427 4,504 40,721 Total $ 230,489 $ 16,808 $ 44,107 $ 22,327 $ 313,731 Quarter Ended June 30, 2019 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 88,210 $ 7,088 $ 54,171 $ 16,168 $ 165,637 Scores 110,728 768 2,191 1,459 115,146 Decision Management Software 14,930 5,448 8,680 4,408 33,466 Total $ 213,868 $ 13,304 $ 65,042 $ 22,035 $ 314,249 Nine Months Ended June 30, 2020 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 243,005 $ 31,258 $ 108,230 $ 51,424 $ 433,917 Scores 362,132 3,016 4,763 5,925 375,836 Decision Management Software 59,758 14,876 22,612 13,207 110,453 Total $ 664,895 $ 49,150 $ 135,605 $ 70,556 $ 920,206 Nine Months Ended June 30, 2019 Reportable Segments North America Latin America Europe, Middle East and Africa Asia Pacific Total (In thousands) Applications $ 256,385 $ 32,011 $ 119,971 $ 46,744 $ 455,111 Scores 293,292 2,650 5,197 4,093 305,232 Decision Management Software 45,354 14,000 21,977 13,065 94,396 Total $ 595,031 $ 48,661 $ 147,145 $ 63,902 $ 854,739 |
Contract Balances and Perform_2
Contract Balances and Performance Obligation Revenue from Contract with Customer (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Contract with Customer, Asset and Liability | Significant changes in the deferred revenues balances during the nine months ended June 30, 2020 were as follows: Nine Months Ended (In thousands) Deferred revenues at September 30, 2019 $ 116,320 Revenue recognized that was included in the deferred revenues balance at the beginning of the period (91,337 ) Increases due to billings, excluding amounts recognized as revenue during the period 86,749 Deferred revenues at June 30, 2020 $ 111,732 (*) Deferred revenues at September 30, 2019 included current portion of $111.0 million and long-term portion of $5.3 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Deferred revenues at June 30, 2020 included current portion of $105.8 million and long-term portion of $5.9 million that were recorded in deferred revenue and other liabilities, respectively, within the condensed consolidated balance sheets. Receivables at June 30, 2020 and September 30, 2019 consisted of the following: June 30, September 30, (In thousands) Billed $ 195,159 $ 206,714 Unbilled 154,365 127,651 349,524 334,365 Less: allowance for doubtful accounts (4,753 ) (2,568 ) Net receivables 344,771 331,797 Less: long-term receivables * (41,213 ) (34,370 ) Short-term receivables * $ 303,558 $ 297,427 (*) Short-term receivables and long-term receivables were recorded in accounts receivable, net and other assets, respectively, within the accompanying condensed consolidated balance sheets. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Schedule of Operating & Finance Lease Assets and Liabilities | The following table presents the lease balances within the condensed consolidated balance sheets: Balance Sheet Location June 30, 2020 (In thousands) Assets Operating leases Operating lease right-of-use assets $ 84,106 Finance leases (*) Property and equipment, net 9,810 Total lease assets $ 93,916 Liabilities Current: Operating leases Other accrued liabilities $ 20,012 Finance leases Other accrued liabilities 5,248 Non-current: Operating leases Operating lease liabilities 74,000 Finance leases Other liabilities 5,857 Total lease liabilities $ 105,117 (*) Finance leases are recorded net of accumulated depreciation of $3.1 million . |
Schedule of Lease Expenses, Weighted Average Lease Term and Weighted Average Discount Rates, and Supplemental Cash Flow Information | The components of our operating and finance lease expenses were as follows: Quarter Ended Nine Months Ended June 30, 2020 (In thousands) Operating lease cost $ 5,763 $ 17,689 Finance lease cost: Depreciation of lease assets 1,048 2,316 Interest on lease liabilities 87 235 Short-term lease cost 244 1,051 Variable lease cost 758 2,578 Total lease cost $ 7,900 $ 23,869 The following table presents weighted average lease term and weighted average discount rates related to our operating and finance leases: June 30, 2020 Operating Leases Finance Leases Weighted-average remaining lease term (in months) 65 30 Weighted average discount rate 3.98 % 3.43 % Supplemental cash flow information related to our operating and finance leases was as follows: Nine Months Ended June 30, 2020 (In thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash outflow for operating leases $ 14,194 Operating cash outflow for finance leases 235 Financing cash outflow for finance leases 811 Lease assets obtained in exchange for new lease liabilities: Operating leases 10,437 Finance leases 6,489 |
Schedule of Future Lease Payments, Operating Leases | Future lease payments under our non-cancellable leases as of June 30, 2020 were as follows: (In thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 5,455 $ 2,384 Fiscal 2021 23,669 4,175 Fiscal 2022 19,271 4,174 Fiscal 2023 17,312 784 Fiscal 2024 14,741 — Fiscal 2025 8,361 — Thereafter 15,267 — Total future undiscounted lease payments 104,076 11,517 Less imputed interest (10,064 ) (412 ) Total reported lease liability $ 94,012 $ 11,105 |
Schedule of Future Lease Payments, Finance Leases | Future lease payments under our non-cancellable leases as of June 30, 2020 were as follows: (In thousands) Operating Leases Finance Leases Remainder of fiscal 2020 $ 5,455 $ 2,384 Fiscal 2021 23,669 4,175 Fiscal 2022 19,271 4,174 Fiscal 2023 17,312 784 Fiscal 2024 14,741 — Fiscal 2025 8,361 — Thereafter 15,267 — Total future undiscounted lease payments 104,076 11,517 Less imputed interest (10,064 ) (412 ) Total reported lease liability $ 94,012 $ 11,105 |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments by fiscal year as determined prior to the adoption of Topic 842 under our previously designated capital and operating leases as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, were as follows: (In thousands) Operating Leases Capital Leases Fiscal 2020 $ 19,842 $ 1,935 Fiscal 2021 19,969 1,934 Fiscal 2022 17,677 1,934 Fiscal 2023 16,940 — Fiscal 2024 14,887 — Thereafter 24,431 — Total minimum lease payments $ 113,746 5,803 Less amount representing interest (379 ) Present value of minimum lease payments $ 5,424 |
Schedule of Future Minimum Lease Payments for Capital Leases | The future minimum lease payments by fiscal year as determined prior to the adoption of Topic 842 under our previously designated capital and operating leases as disclosed in our Annual Report on Form 10-K for the fiscal year ended September 30, 2019, were as follows: (In thousands) Operating Leases Capital Leases Fiscal 2020 $ 19,842 $ 1,935 Fiscal 2021 19,969 1,934 Fiscal 2022 17,677 1,934 Fiscal 2023 16,940 — Fiscal 2024 14,887 — Thereafter 24,431 — Total minimum lease payments $ 113,746 5,803 Less amount representing interest (379 ) Present value of minimum lease payments $ 5,424 |
Nature of Business Additional (
Nature of Business Additional (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Oct. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating leases | $ 84,106 | |
Total reported lease liability | $ 94,012 | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating leases | $ 89,800 | |
Total reported lease liability | $ 98,900 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 | |
Assets: | |||
Marketable securities | $ 23,549 | $ 20,222 | |
Cash deposits | 101,300 | 77,500 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | [1] | 24,334 | 28,901 |
Marketable securities | [2] | 23,549 | 20,222 |
Total | 47,883 | 49,123 | |
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | |||
Assets: | |||
Cash equivalents | [1] | 24,334 | 28,901 |
Marketable securities | [2] | 23,549 | 20,222 |
Total | $ 47,883 | $ 49,123 | |
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . Not included in these tables are cash deposits of $101.3 million and $77.5 million at June 30, 2020 and September 30, 2019 , respectively. | ||
[2] | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2020 and September 30, 2019 . |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Short-term forward contracts, average maturities at inception (less than) | 3 months | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Forward foreign currency contracts fair value | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands | Jun. 30, 2020GBP (£) | Jun. 30, 2020SGD ($) | Jun. 30, 2020EUR (€) | Jun. 30, 2020USD ($) | Sep. 30, 2019GBP (£) | Sep. 30, 2019SGD ($) | Sep. 30, 2019EUR (€) | Sep. 30, 2019USD ($) |
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 | € 10,400 | 11,629 | € 10,800 | 11,723 | ||||
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 | £ 19,434 | 23,900 | £ 5,200 | 6,400 | ||||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | ||||||||
Derivative [Line Items] | ||||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | 0 | 0 | ||||||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||||
Derivative [Line Items] | ||||||||
Contract amount of forward foreign currency contracts | $ 9,895 | $ 7,100 | $ 5,798 | $ 4,200 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Foreign currency forward contracts | ||||
Derivative [Line Items] | ||||
Losses on foreign currency forward contracts | $ 380 | $ 928 | $ 1,429 | $ 612 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 1,048 | $ 1,448 | $ 4,046 | $ 4,453 |
Completed Technology | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 406 | 452 | 1,444 | 1,440 |
Customer Contracts [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 561 | 996 | 2,359 | 3,013 |
Trade Names [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | 37 | 0 | 112 | 0 |
Noncompete Agreements [Member] | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization expense of intangible assets | $ 44 | $ 0 | $ 131 | $ 0 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Estimated future intangible asset amortization expense | ||
2020 (excluding the nine months ended June 30, 2020) | $ 938 | |
2021 | 3,617 | |
2022 | 3,330 | |
2023 | 1,317 | |
2024 | 917 | |
Total | $ 10,119 | $ 14,139 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 30, 2019 | $ 803,542 |
Foreign currency translation adjustment | 986 |
Balance at June 30, 2020 | 804,528 |
Applications | |
Goodwill [Roll Forward] | |
Balance at September 30, 2019 | 588,614 |
Foreign currency translation adjustment | 986 |
Balance at June 30, 2020 | 589,600 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2019 | 146,648 |
Foreign currency translation adjustment | 0 |
Balance at June 30, 2020 | 146,648 |
Decision Management Software | |
Goodwill [Roll Forward] | |
Balance at September 30, 2019 | 68,280 |
Foreign currency translation adjustment | 0 |
Balance at June 30, 2020 | $ 68,280 |
Composition of Certain Financ_3
Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property and equipment | $ 190,932 | |
Property and equipment | $ 172,075 | |
Less: accumulated depreciation and amortization | (130,596) | |
Less: accumulated depreciation and amortization | (119,048) | |
Total | $ 60,336 | |
Total | $ 53,027 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Detail) | May 08, 2018USD ($) | Jun. 30, 2020USD ($) |
Line of Credit Facility [Line Items] | ||
Unsecured revolving line of credit | $ 400,000,000 | |
Revolving credit facility, expiration date | May 8, 2023 | |
Line of credit facility-option to increase borrowing capacity | $ 100,000,000 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio | 3.25 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio step up | 3.75 | |
Fixed charge coverage ratio minimum | 2.50 | |
Interest coverage ratio | 3 | |
Borrowings outstanding | $ 103,000,000 | |
Interest rate of borrowings outstanding | 1.313% | |
Federal Fund Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.50% | |
LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.875% | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.00% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.875% |
Senior Notes (Detail)
Senior Notes (Detail) | Dec. 06, 2019USD ($) | May 08, 2018USD ($) | Jul. 14, 2010USD ($)Contract | Jun. 30, 2020USD ($) | Sep. 30, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Carrying value of Senior Notes | $ 835,000,000 | $ 485,000,000 | |||
Fair value of Senior Notes | 873,085,000 | 514,121,000 | |||
Debt issuance costs | 11,000,000 | 5,200,000 | |||
July 2010 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Notes issued in a private placement to a group of institutional investors | $ 245,000,000 | ||||
Number of series of Senior Notes issued | Contract | 4 | ||||
Senior Notes, weighted average interest rate | 5.60% | ||||
Senior Notes, weighted average maturity (in years) | 10 years | ||||
Net debt to EBITDA ratio maximum | 3 | ||||
Fixed charge coverage ratio minimum | 2.50 | ||||
Carrying value of Senior Notes | 85,000,000 | 85,000,000 | |||
Fair value of Senior Notes | 85,085,000 | 86,121,000 | |||
July 2010 Senior Notes | Minimum | |||||
Debt Instrument [Line Items] | |||||
Senior Notes, maturity (in years) | 6 years | ||||
July 2010 Senior Notes | Maximum | |||||
Debt Instrument [Line Items] | |||||
Senior Notes, maturity (in years) | 10 years | ||||
May 2018 Senior Notes | |||||
Debt Instrument [Line Items] | |||||
Senior Notes issued in a private placement to a group of institutional investors | $ 400,000,000 | ||||
Carrying value of Senior Notes | 400,000,000 | 400,000,000 | |||
Fair value of Senior Notes | 438,000,000 | 428,000,000 | |||
Debt instrument, maturity date | May 15, 2026 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 5.25% | ||||
Senior Notes December Six [Member] | |||||
Debt Instrument [Line Items] | |||||
Senior Notes issued in a private placement to a group of institutional investors | $ 350,000,000 | ||||
Carrying value of Senior Notes | 350,000,000 | 0 | |||
Fair value of Senior Notes | $ 350,000,000 | $ 0 | |||
Debt instrument, maturity date | Jun. 15, 2028 | ||||
Debt Instrument, Interest Rate, Stated Percentage | 4.00% |
Restructuring Expenses - Summar
Restructuring Expenses - Summary of Restructuring Accruals and Certain Facility Closures (Detail) - USD ($) | Oct. 01, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Restructuring Reserve [Roll Forward] | |||||
Accrual at September 30, 2019 | $ 1,378,000 | $ 1,378,000 | |||
Expense Additions | $ 0 | $ 0 | 3,104,000 | $ 0 | |
Cash Payments | (3,007,000) | ||||
Adjustment | (1,378,000) | ||||
Accrual at March 31, 2020 | 97,000 | 97,000 | |||
Reclassification of accrued lease exit obligations to operating lease liabilities | 1,378,000 | ||||
Facilities charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrual at September 30, 2019 | 1,378,000 | 1,378,000 | |||
Expense Additions | 0 | ||||
Cash Payments | 0 | ||||
Adjustment | (1,378,000) | ||||
Accrual at March 31, 2020 | 0 | 0 | |||
Reclassification of accrued lease exit obligations to operating lease liabilities | 1,378,000 | ||||
Employee separation | |||||
Restructuring Reserve [Roll Forward] | |||||
Accrual at September 30, 2019 | 0 | 0 | |||
Expense Additions | 3,104,000 | ||||
Cash Payments | (3,007,000) | ||||
Adjustment | 0 | ||||
Accrual at March 31, 2020 | $ 97,000 | 97,000 | |||
Reclassification of accrued lease exit obligations to operating lease liabilities | $ 0 | ||||
Accounting Standards Update 2016-02 | Facilities charges | |||||
Restructuring Reserve [Roll Forward] | |||||
Adjustment | (1,400,000) | ||||
Reclassification of accrued lease exit obligations to operating lease liabilities | $ 1,400,000 |
Restructuring Expenses - Additi
Restructuring Expenses - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)position | Jun. 30, 2019USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||||
Expense Additions | $ 0 | $ 0 | $ 3,104,000 | $ 0 |
Number of positions eliminated | position | 69 | |||
Facilities charges | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expense Additions | $ 0 | |||
Employee separation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Expense Additions | $ 3,104,000 |
Income Taxes -Additional Inform
Income Taxes -Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 15.90% | 17.80% | 1.80% | 11.40% | |
Unrecognized tax benefits, uncertain tax positions | $ 6.8 | $ 6.8 | $ 5.8 | ||
Unrecognized tax benefits, accrued interest | $ 0.4 | $ 0.4 | $ 0.3 |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator for diluted and basic earnings per share: | ||||
Net income | $ 64,076 | $ 64,152 | $ 177,285 | $ 137,540 |
Denominator - share: | ||||
Basic weighted-average shares (in shares) | 29,005 | 28,967 | 29,075 | 29,000 |
Effect of dilutive securities (in shares) | 739 | 1,325 | 891 | 1,295 |
Diluted weighted-average shares (in shares) | 29,744 | 30,292 | 29,966 | 30,295 |
Earnings per share: | ||||
Basic (in dollars per share) | $ 2.21 | $ 2.21 | $ 6.10 | $ 4.74 |
Diluted (in dollars per share) | $ 2.15 | $ 2.12 | $ 5.92 | $ 4.54 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
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) | 13,000 | 0 | 14,000 | 5,000 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 9 Months Ended |
Jun. 30, 2020Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Segment revenues: | ||||
Revenues | $ 313,731 | $ 314,249 | $ 920,206 | $ 854,739 |
Segment operating expense | (230,860) | (228,541) | (709,727) | (671,478) |
Operating income | 82,871 | 85,708 | 210,479 | 183,261 |
Unallocated share-based compensation expense | (22,264) | (19,595) | (68,197) | (61,931) |
Unallocated amortization expense | (1,048) | (1,448) | (4,046) | (4,453) |
Unallocated restructuring and acquisition-related | 0 | 0 | (3,104) | 0 |
Unallocated interest expense | (11,223) | (10,111) | (32,245) | (29,795) |
Unallocated other income, net | 4,560 | 2,457 | 2,333 | 1,718 |
Income before income taxes | 76,208 | 78,054 | 180,567 | 155,184 |
Depreciation expense | 6,451 | 6,179 | 18,087 | 18,318 |
Operating Segments | ||||
Segment revenues: | ||||
Segment operating expense | (207,548) | (207,498) | (634,380) | (605,094) |
Operating income | 106,183 | 106,751 | 285,826 | 249,645 |
Unallocated Corporate Expenses | ||||
Segment revenues: | ||||
Segment operating expense | (31,315) | (36,019) | (99,310) | (104,779) |
Operating income | (31,315) | (36,019) | (99,310) | (104,779) |
Depreciation expense | 28 | 222 | 361 | 684 |
Applications | ||||
Segment revenues: | ||||
Revenues | 141,460 | 165,637 | 433,917 | 455,111 |
Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 141,460 | 165,637 | 433,917 | 455,111 |
Segment operating expense | (111,061) | (113,400) | (338,527) | (332,641) |
Operating income | 30,399 | 52,237 | 95,390 | 122,470 |
Depreciation expense | 5,091 | 4,800 | 13,993 | 14,259 |
Scores | ||||
Segment revenues: | ||||
Revenues | 131,550 | 115,146 | 375,836 | 305,232 |
Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 131,550 | 115,146 | 375,836 | 305,232 |
Segment operating expense | (21,333) | (15,850) | (54,705) | (45,499) |
Operating income | 110,217 | 99,296 | 321,131 | 259,733 |
Depreciation expense | 176 | 130 | 433 | 387 |
Decision Management Software | ||||
Segment revenues: | ||||
Revenues | 40,721 | 33,466 | 110,453 | 94,396 |
Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 40,721 | 33,466 | 110,453 | 94,396 |
Segment operating expense | (43,839) | (42,229) | (141,838) | (122,175) |
Operating income | (3,118) | (8,763) | (31,385) | (27,779) |
Depreciation expense | 1,156 | 1,027 | 3,300 | 2,988 |
Transactional and Maintenance | ||||
Segment revenues: | ||||
Revenues | 246,829 | 226,040 | 707,905 | 632,012 |
Transactional and Maintenance | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 98,476 | 100,385 | 295,102 | 294,624 |
Transactional and Maintenance | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 130,268 | 112,949 | 365,324 | 300,133 |
Transactional and Maintenance | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 18,085 | 12,706 | 47,479 | 37,255 |
Technology Service | ||||
Segment revenues: | ||||
Revenues | 43,633 | 44,594 | 135,563 | 135,957 |
Technology Service | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 32,364 | 33,989 | 101,521 | 101,432 |
Technology Service | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 58 | 392 | 1,141 | 1,994 |
Technology Service | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 11,211 | 10,213 | 32,901 | 32,531 |
License | ||||
Segment revenues: | ||||
Revenues | 23,269 | 43,615 | 76,738 | 86,770 |
License | Applications | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 10,620 | 31,263 | 37,294 | 59,055 |
License | Scores | Operating Segments | ||||
Segment revenues: | ||||
Revenues | 1,224 | 1,805 | 9,371 | 3,105 |
License | Decision Management Software | Operating Segments | ||||
Segment revenues: | ||||
Revenues | $ 11,425 | $ 10,547 | $ 30,073 | $ 24,610 |
Segment Information - Disaggreg
Segment Information - Disaggregation of revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 313,731 | $ 314,249 | $ 920,206 | $ 854,739 |
North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 230,489 | 213,868 | 664,895 | 595,031 |
Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,808 | 13,304 | 49,150 | 48,661 |
EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 44,107 | 65,042 | 135,605 | 147,145 |
Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,327 | 22,035 | 70,556 | 63,902 |
On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 105,556 | 129,811 | 320,401 | 350,051 |
SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76,625 | 69,292 | 223,969 | 199,456 |
Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 131,550 | 115,146 | 375,836 | 305,232 |
Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 131,550 | 115,146 | 375,836 | 305,232 |
Scores | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 128,686 | 110,728 | 362,132 | 293,292 |
Scores | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 113 | 768 | 3,016 | 2,650 |
Scores | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,505 | 2,191 | 4,763 | 5,197 |
Scores | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,246 | 1,459 | 5,925 | 4,093 |
Scores | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Scores | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Scores | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 131,550 | 115,146 | 375,836 | 305,232 |
Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 40,721 | 33,466 | 110,453 | 94,396 |
Decision Management Software | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,164 | 14,930 | 59,758 | 45,354 |
Decision Management Software | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,626 | 5,448 | 14,876 | 14,000 |
Decision Management Software | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,427 | 8,680 | 22,612 | 21,977 |
Decision Management Software | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,504 | 4,408 | 13,207 | 13,065 |
Decision Management Software | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 29,063 | 27,138 | 81,589 | 76,472 |
Decision Management Software | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 11,658 | 6,328 | 28,864 | 17,924 |
Decision Management Software | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 0 | 0 | 0 | 0 |
Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 141,460 | 165,637 | 433,917 | 455,111 |
Applications | North America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 78,639 | 88,210 | 243,005 | 256,385 |
Applications | Latin America [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,069 | 7,088 | 31,258 | 32,011 |
Applications | EMEA [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 34,175 | 54,171 | 108,230 | 119,971 |
Applications | Asia Pacific [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 16,577 | 16,168 | 51,424 | 46,744 |
Applications | On-Premises Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 76,493 | 102,673 | 238,812 | 273,579 |
Applications | SaaS Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 64,967 | 62,964 | 195,105 | 181,532 |
Applications | Scores Products [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 0 | $ 0 | $ 0 | $ 0 |
Revenue from Contract with Customer Benchmark [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 100.00% | 100.00% | 100.00% | 100.00% |
Revenue from Contract with Customer Benchmark [Member] | Scores | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 42.00% | 37.00% | 41.00% | 36.00% |
Revenue from Contract with Customer Benchmark [Member] | Decision Management Software | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 13.00% | 10.00% | 12.00% | 11.00% |
Revenue from Contract with Customer Benchmark [Member] | Applications | ||||
Disaggregation of Revenue [Line Items] | ||||
Concentration Risk, Percentage | 45.00% | 53.00% | 47.00% | 53.00% |
Contract Balances and Perform_3
Contract Balances and Performance Obligation - Receivables (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Billed | $ 195,159 | $ 206,714 |
Unbilled | 154,365 | 127,651 |
Receivables Gross | 349,524 | 334,365 |
Less: allowance for doubtful accounts | (4,753) | (2,568) |
Net receivables | 344,771 | 331,797 |
Less: long-term receivables | (41,213) | (34,370) |
Short-term receivables | $ 303,558 | $ 297,427 |
Contract Balances and Perform_4
Contract Balances and Performance Obligation - Contract Balances (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2020 | Sep. 30, 2019 | |
Contract With Customer, Liability [Roll Forward] | ||
Deferred revenues at September 30, 2019 | $ 116,320 | |
Revenue recognized that was included in the deferred revenues balance at the beginning of the period | (91,337) | |
Increases due to billings, excluding amounts recognized as revenue during the period | 86,749 | |
Deferred revenues at June 30, 2020 | 111,732 | |
Deferred revenue and other liabilities, current portion | 105,800 | $ 111,000 |
Deferred revenue and other liabilities, noncurrent | $ 5,900 | $ 5,300 |
Contract Balances and Perform_5
Contract Balances and Performance Obligation - Performance Obligations (Details) $ in Millions | Jun. 30, 2020USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, amount | $ 247.2 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 18 months |
Revenue, Remaining Performance Obligation, Percentage | 54.00% |
Contract Balances and Perform_6
Contract Balances and Performance Obligation - Additional (Details) $ in Millions | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Revenue from External Customer [Line Items] | |
Revenue, remaining performance obligation, amount | $ 247.2 |
Minimum | |
Revenue from External Customer [Line Items] | |
Contract With Customer, Payment Term | 30 days |
Maximum | |
Revenue from External Customer [Line Items] | |
Contract With Customer, Payment Term | 60 days |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) $ in Thousands | Jun. 30, 2020USD ($) | |
Assets | ||
Operating leases | $ 84,106 | |
Finance leases | 9,810 | [1] |
Total lease assets | 93,916 | |
Current: | ||
Operating leases | 20,012 | |
Finance leases | 5,248 | |
Non-current: | ||
Operating leases | 74,000 | |
Finance leases | 5,857 | |
Total lease liabilities | 105,117 | |
Finance leases, accumulated depreciation | $ 3,100 | |
[1] | Finance leases are recorded net of accumulated depreciation of $3.1 million . |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) $ in Thousands | 3 Months Ended | 9 Months Ended |
Jun. 30, 2020USD ($) | Jun. 30, 2020USD ($) | |
Leases [Abstract] | ||
Operating lease cost | $ 5,763 | $ 17,689 |
Finance lease cost, depreciation of lease assets | 1,048 | 2,316 |
Finance lease cost, interest on lease liabilities | 87 | 235 |
Short-term lease cost | 244 | 1,051 |
Variable lease cost | 758 | 2,578 |
Total lease cost | $ 7,900 | $ 23,869 |
Operating leases, weighted average remaining lease term (in months) | 65 months | 65 months |
Operating leases, weighted average discount rate | 3.98% | 3.98% |
Finance leases, weighted average remaining lease term (in months) | 30 months | 30 months |
Finance leases, weighted average discount rate | 3.43% | 3.43% |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Thousands | 9 Months Ended |
Jun. 30, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash outflow for operating leases | $ 14,194 |
Operating cash outflow for finance leases | 235 |
Financing cash outflow for finance leases | 811 |
Lease assets obtained in exchange for new lease liabilities: | |
Operating leases | 10,437 |
Finance leases | $ 6,489 |
Leases - Lease Liabilities, Mat
Leases - Lease Liabilities, Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Sep. 30, 2019 |
Operating Leases, After Adoption of 842 | ||
Remainder of fiscal 2020 | $ 5,455 | |
Fiscal 2021 | 23,669 | |
Fiscal 2022 | 19,271 | |
Fiscal 2023 | 17,312 | |
Fiscal 2024 | 14,741 | |
Fiscal 2025 | 8,361 | |
Thereafter | 15,267 | |
Total future undiscounted lease payments | 104,076 | |
Less imputed interest | (10,064) | |
Total reported lease liability | 94,012 | |
Finance Leases, After Adoption of 842 | ||
Remainder of fiscal 2020 | 2,384 | |
Fiscal 2021 | 4,175 | |
Fiscal 2022 | 4,174 | |
Fiscal 2023 | 784 | |
Fiscal 2024 | 0 | |
Fiscal 2025 | 0 | |
Thereafter | 0 | |
Total future undiscounted lease payments | 11,517 | |
Less imputed interest | (412) | |
Total reported lease liability | $ 11,105 | |
Operating Leases, Before Adoption of 842 | ||
Fiscal 2020 | $ 19,842 | |
Fiscal 2021 | 19,969 | |
Fiscal 2022 | 17,677 | |
Fiscal 2023 | 16,940 | |
Fiscal 2024 | 14,887 | |
Thereafter | 24,431 | |
Total minimum lease payments | 113,746 | |
Capital Leases, Before Adoption of 842 | ||
Fiscal 2020 | 1,935 | |
Fiscal 2021 | 1,934 | |
Fiscal 2022 | 1,934 | |
Fiscal 2023 | 0 | |
Fiscal 2024 | 0 | |
Thereafter | 0 | |
Total minimum lease payments | 5,803 | |
Less amount representing interest | (379) | |
Present value of minimum lease payments | $ 5,424 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Details) $ in Millions | Jul. 31, 2020USD ($) |
Subsequent Event | |
Subsequent Event [Line Items] | |
Stock repurchase program, authorized amount | $ 250 |