Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Oct. 31, 2013 | Mar. 31, 2013 | |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 30-Sep-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Trading Symbol | 'FICO | ' | ' |
Entity Registrant Name | 'FAIR ISAAC CORP | ' | ' |
Entity Central Index Key | '0000814547 | ' | ' |
Current Fiscal Year End Date | '--09-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 34,567,208 | ' |
Entity Public Float | ' | ' | $1,031,516,584 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $83,178 | $71,609 |
Marketable securities available for sale, current portion | ' | 22,008 |
Accounts receivable, net | 143,733 | 142,595 |
Prepaid expenses and other current assets | 22,277 | 23,113 |
Total current assets | 249,188 | 259,325 |
Marketable securities available for sale, less current portion | 7,107 | 5,417 |
Other investments | 11,033 | 11,083 |
Property and equipment, net | 45,155 | 41,080 |
Goodwill | 773,931 | 757,504 |
Intangible assets, net | 57,361 | 52,299 |
Deferred income taxes | 11,132 | 22,856 |
Other assets | 6,640 | 9,047 |
Total assets | 1,161,547 | 1,158,611 |
Current liabilities: | ' | ' |
Accounts payable | 19,216 | 18,958 |
Accrued compensation and employee benefits | 39,281 | 50,043 |
Other accrued liabilities | 35,202 | 43,645 |
Deferred revenue | 49,181 | 47,959 |
Current maturities on debt | 23,000 | 49,000 |
Total current liabilities | 165,880 | 209,605 |
Senior notes | 447,000 | 455,000 |
Other liabilities | 17,990 | 19,600 |
Total liabilities | 630,870 | 684,205 |
Commitments and contingencies | ' | ' |
Stockholders' equity: | ' | ' |
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding) | ' | ' |
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 34,786 and 34,839 shares outstanding at September 30, 2013 and 2012, respectively) | 348 | 348 |
Paid-in-capital | 1,110,198 | 1,103,611 |
Treasury stock, at cost (54,071 and 54,018 shares at September 30, 2013 and 2012, respectively) | -1,751,057 | -1,718,570 |
Retained earnings | 1,192,096 | 1,104,825 |
Accumulated other comprehensive loss | -20,908 | -15,808 |
Total stockholders' equity | 530,677 | 474,406 |
Total liabilities and stockholders' equity | $1,161,547 | $1,158,611 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, except Per Share data, unless otherwise specified | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 1,000 | 1,000 |
Preferred stock, issued | ' | ' |
Preferred stock, outstanding | ' | ' |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 88,857 | 88,857 |
Common stock, shares outstanding | 34,786 | 34,839 |
Treasury stock, shares | 54,071 | 54,018 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Revenues: | ' | ' | ' | |||
Transactional and maintenance | $514,304 | $466,175 | $453,430 | |||
Professional services | 135,194 | 124,971 | 115,941 | |||
License | 93,946 | 85,277 | 50,312 | |||
Total revenues | 743,444 | 676,423 | 619,683 | |||
Operating expenses: | ' | ' | ' | |||
Cost of revenues | 229,468 | [1] | 197,947 | [1] | 186,470 | [1] |
Research and development | 66,967 | 59,527 | 62,129 | |||
Selling, general and administrative | 268,395 | [1] | 238,522 | [1] | 223,615 | [1] |
Amortization of intangible assets | 13,535 | [1] | 6,944 | [1] | 7,741 | [1] |
Restructuring and acquisition-related | 3,486 | 5,125 | 12,391 | |||
Total operating expenses | 581,851 | 508,065 | 492,346 | |||
Operating income | 161,593 | 168,358 | 127,337 | |||
Interest income | 54 | 317 | 2,192 | |||
Interest expense | -30,281 | -31,734 | -32,364 | |||
Other income (expense), net | 618 | -698 | 290 | |||
Income before income taxes | 131,984 | 136,243 | 97,455 | |||
Provision for income taxes | 41,889 | 44,239 | 25,893 | |||
Net income | 90,095 | 92,004 | 71,562 | |||
Other comprehensive income (loss): | ' | ' | ' | |||
Unrealized losses on investments, net of tax benefit of $3 and $23, for the years ended September 30, 2012 and 2011, respectively | ' | -4 | -33 | |||
Foreign currency translation adjustments | -5,100 | 5,905 | -1,998 | |||
Comprehensive income | $84,995 | $97,905 | $69,531 | |||
Basic earnings per share | $2.55 | $2.64 | $1.82 | |||
Shares used in computing basic earnings per share | 35,332 | 34,909 | 39,359 | |||
Diluted earnings per share | $2.48 | $2.55 | $1.79 | |||
Shares used in computing diluted earnings per share | 36,292 | 36,063 | 39,988 | |||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 7 to consolidated financial statements. |
CONSOLIDATED_STATEMENTS_OF_INC1
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (Parenthetical) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2012 | Sep. 30, 2011 |
Unrealized losses on investments, tax benefit | $3 | $23 |
CONSOLIDATED_STATEMENTS_OF_STO
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-in- Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands | ||||||
Beginning Balance at Sep. 30, 2010 | $474,914 | $399 | $1,103,244 | ($1,556,253) | $947,202 | ($19,678) |
Beginning Balance (in shares) at Sep. 30, 2010 | ' | 39,882 | ' | ' | ' | ' |
Share-based compensation | 15,500 | ' | 15,500 | ' | ' | ' |
Issuance of treasury stock under employee stock plans (in shares) | ' | 800 | ' | ' | ' | ' |
Issuance of treasury stock under employee stock plans | 7,613 | 8 | -17,757 | 25,362 | ' | ' |
Tax effect from share-based payment arrangements | -2,599 | ' | -2,599 | ' | ' | ' |
Repurchases of common stock (shares) | ' | -3,598 | ' | ' | ' | ' |
Repurchases of common stock | -96,325 | -36 | ' | -96,289 | ' | ' |
Dividends paid ($0.08 per share) | -3,140 | ' | ' | ' | -3,140 | ' |
Net income | 71,562 | ' | ' | ' | 71,562 | ' |
Unrealized losses on investments, net of tax benefit ($23 for 2011 & $3 for 2012) | -33 | ' | ' | ' | ' | -33 |
Foreign currency translation adjustments | -1,998 | ' | ' | ' | ' | -1,998 |
Ending Balance at Sep. 30, 2011 | 465,494 | 371 | 1,098,388 | -1,627,180 | 1,015,624 | -21,709 |
Ending Balance (in shares) at Sep. 30, 2011 | ' | 37,084 | ' | ' | ' | ' |
Share-based compensation | 21,229 | ' | 21,229 | ' | ' | ' |
Issuance of treasury stock under employee stock plans (in shares) | ' | 2,942 | ' | ' | ' | ' |
Issuance of treasury stock under employee stock plans | 70,793 | 29 | -22,085 | 92,849 | ' | ' |
Tax effect from share-based payment arrangements | 6,079 | ' | 6,079 | ' | ' | ' |
Repurchases of common stock (shares) | ' | -5,187 | ' | ' | ' | ' |
Repurchases of common stock | -184,291 | -52 | ' | -184,239 | ' | ' |
Dividends paid ($0.08 per share) | -2,803 | ' | ' | ' | -2,803 | ' |
Net income | 92,004 | ' | ' | ' | 92,004 | ' |
Unrealized losses on investments, net of tax benefit ($23 for 2011 & $3 for 2012) | -4 | ' | ' | ' | ' | -4 |
Foreign currency translation adjustments | 5,905 | ' | ' | ' | ' | 5,905 |
Ending Balance at Sep. 30, 2012 | 474,406 | 348 | 1,103,611 | -1,718,570 | 1,104,825 | -15,808 |
Ending Balance (in shares) at Sep. 30, 2012 | ' | 34,839 | ' | ' | ' | ' |
Share-based compensation | 25,850 | ' | 25,850 | ' | ' | ' |
Issuance of treasury stock under employee stock plans (in shares) | ' | 1,642 | ' | ' | ' | ' |
Issuance of treasury stock under employee stock plans | 30,256 | 17 | -22,150 | 52,389 | ' | ' |
Tax effect from share-based payment arrangements | 2,887 | ' | 2,887 | ' | ' | ' |
Repurchases of common stock (shares) | ' | -1,695 | ' | ' | ' | ' |
Repurchases of common stock | -84,893 | -17 | ' | -84,876 | ' | ' |
Dividends paid ($0.08 per share) | -2,824 | ' | ' | ' | -2,824 | ' |
Net income | 90,095 | ' | ' | ' | 90,095 | ' |
Foreign currency translation adjustments | -5,100 | ' | ' | ' | ' | -5,100 |
Ending Balance at Sep. 30, 2013 | $530,677 | $348 | $1,110,198 | ($1,751,057) | $1,192,096 | ($20,908) |
Ending Balance (in shares) at Sep. 30, 2013 | ' | 34,786 | ' | ' | ' | ' |
CONSOLIDATED_STATEMENTS_OF_STO1
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Dividends paid, per share | $0.08 | $0.08 | $0.08 |
Unrealized losses on investments, tax benefit | ' | $3 | $23 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Cash flows from operating activities: | ' | ' | ' |
Net income | $90,095 | $92,004 | $71,562 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 33,214 | 21,549 | 24,197 |
Share-based compensation | 25,850 | 21,229 | 15,500 |
Deferred income taxes | 3,671 | -7,121 | 1,252 |
Tax effect from share-based payment arrangements | 2,887 | 6,079 | -2,599 |
Excess tax benefits from share-based payment arrangements | -6,362 | -8,079 | -1,664 |
Net amortization of premium on marketable securities | 8 | 221 | 554 |
Provision of (benefit from) doubtful accounts | 327 | -122 | -583 |
Net loss on sales of property and equipment | 351 | 63 | 169 |
Changes in operating assets and liabilities: | ' | ' | ' |
Accounts receivable | 1,286 | -26,490 | 8,571 |
Prepaid expenses and other assets | -822 | 802 | 2,060 |
Accounts payable | -590 | 6,810 | -1,749 |
Accrued compensation and employee benefits | -11,729 | 11,314 | 3,154 |
Other liabilities | 1,823 | 1,455 | 18,727 |
Deferred revenue | -3,889 | 10,032 | -2,995 |
Net cash provided by operating activities | 136,120 | 129,746 | 136,156 |
Cash flows from investing activities: | ' | ' | ' |
Purchases of property and equipment | -24,147 | -25,483 | -14,020 |
Purchases of marketable securities | ' | -48,067 | -144,224 |
Proceeds from sale of marketable securities | ' | ' | 13,644 |
Proceeds from maturities of marketable securities | 22,000 | 131,659 | 92,759 |
Cash paid for acquisitions, net of cash acquired | -32,874 | -123,631 | ' |
Distribution from (purchase of) cost method investees | 50 | -148 | 140 |
Net cash used in investing activities | -34,971 | -65,670 | -51,701 |
Cash flows from financing activities: | ' | ' | ' |
Proceeds from revolving line of credit | 30,000 | ' | ' |
Payments on revolving line of credit and other short-term loans | -18,676 | -5,466 | ' |
Payments on senior notes | -49,000 | -8,000 | -8,000 |
Debt issuance costs | ' | ' | -736 |
Proceeds from issuance of treasury stock under employee stock plans | 30,256 | 70,793 | 7,613 |
Dividends paid | -2,824 | -2,803 | -3,140 |
Repurchases of common stock | -82,752 | -191,056 | -91,422 |
Excess tax benefits from share-based payment arrangements | 6,362 | 8,079 | 1,664 |
Net cash used in financing activities | -86,634 | -128,453 | -94,021 |
Effect of exchange rate changes on cash | -2,946 | 234 | -881 |
Increase (decrease) in cash and cash equivalents | 11,569 | -64,143 | -10,447 |
Cash and cash equivalents, beginning of year | 71,609 | 135,752 | 146,199 |
Cash and cash equivalents, end of year | 83,178 | 71,609 | 135,752 |
Supplemental disclosures of cash flow information: | ' | ' | ' |
Cash paid for income taxes, net of refunds of $2,471, $584 and $207 during the years ended September 30, 2013, 2012 and 2011, respectively | 24,141 | 36,852 | 11,460 |
Cash paid for interest | 31,011 | 31,421 | 31,974 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' | ' |
Unsettled repurchases of common stock | 2,141 | ' | 6,765 |
Purchase of property and equipment included in accounts payable | $681 | $641 | $4,790 |
CONSOLIDATED_STATEMENTS_OF_CAS1
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Cash paid for income taxes, refunds | $2,471 | $584 | $207 |
Nature_of_Business_and_Summary
Nature of Business and Summary of Significant Accounting Policies | 12 Months Ended | ||
Sep. 30, 2013 | |||
Nature of Business and Summary of Significant Accounting Policies | ' | ||
1. Nature of Business and Summary of Significant Accounting Policies | |||
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 and healthcare organizations. | |||
In these consolidated financial statements, FICO is referred to as “we,” “us,” “our,” or “FICO.” | |||
Principles of Consolidation and Basis of Presentation | |||
The consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |||
Use of Estimates | |||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to: revenue recognition; recoverability of accounts receivable; valuation of goodwill and intangible assets, including impairment assessment; valuation of share-based compensation; and realizability of deferred tax assets. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of cash in banks and investments with an original maturity of 90 days or less at time of purchase. | |||
Fair Value of Financial Instruments | |||
The fair value of certain of our financial instruments, including cash and cash equivalents, receivables, other current assets, accounts payable, accrued compensation and employee benefits, other accrued liabilities and amounts outstanding under our revolving line of credit, approximate their carrying amounts because of the short-term maturity of these instruments. The fair values of our cash and cash equivalents and marketable security investments are disclosed in Note 4. The fair value of our derivative instruments is disclosed in Note 5. The fair value of our Senior Notes is disclosed in Note 10. | |||
Investments | |||
Management determines the appropriate classification of our investments in marketable debt and equity securities at the time of purchase, and re-evaluates this designation at each balance sheet date. While it is our intent to hold debt securities to maturity, our investments in U.S. government obligations and marketable equity and debt securities that have readily determinable fair values are classified as available-for-sale, as the sale of such securities may be required prior to maturity to implement management strategies. Therefore, such securities are carried at fair value with unrealized gains or losses related to these securities included in accumulated other comprehensive income (loss). The fair value of marketable securities is based upon inputs including quoted prices for identical or similar assets. Realized gains and losses are included in other income (expense), net on the consolidated statements of income and comprehensive income. The cost of investments sold is based on the specific identification method. Losses resulting from other than temporary declines in fair value are charged to operations. Investments with remaining maturities over one year are classified as long-term investments. | |||
Our investments in equity securities of companies over which we do not have significant influence are accounted for under the cost method. The investment is originally recorded at cost and adjusted for additional contributions or distributions. Management periodically reviews cost-method investments for instances where fair value is less than the carrying amount and the decline in value is determined to be other than temporary. If the decline in value is judged to be other than temporary, the carrying amount of the security is written down to fair value and the resulting loss is charged to operations. We currently do not have investments in which we own 20% to 50% and exercise significant influence over operating and financial policies, therefore we do not account for any investment under the equity method. | |||
Concentration of Risk | |||
Financial instruments that potentially expose us to concentrations of risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable, which are generally not collateralized. Our policy is to place our cash, cash equivalents, and marketable securities with high quality financial institutions, commercial corporations and government agencies in order to limit the amount of credit exposure. We have established guidelines relative to diversification and maturities for maintaining safety and liquidity. We generally do not require collateral from our customers, but our credit extension and collection policies include analyzing the financial condition of potential customers, establishing credit limits, monitoring payments, and aggressively pursuing delinquent accounts. We maintain allowances for potential credit losses. | |||
A significant portion of our revenues are derived from the sales of products and services to the consumer credit and banking industries. | |||
Property and Equipment | |||
Property and equipment are recorded at cost less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while repair and maintenance costs are expensed as incurred. Depreciation and amortization charges are calculated using the straight-line method over the following estimated useful lives: | |||
Estimated Useful Life | |||
Data processing equipment and software | 3 years | ||
Office furniture and equipment | 3 to 7 years | ||
Leasehold improvements | Shorter of estimated | ||
useful life or lease term | |||
The cost and accumulated depreciation for property and equipment sold, retired or otherwise disposed of are removed from the applicable accounts and resulting gains or losses are recorded in our consolidated statements of income and comprehensive income. Depreciation and amortization on property and equipment totaled $19.7 million, $14.6 million and $16.5 million during fiscal 2013, 2012 and 2011, respectively. | |||
Internal-use Software | |||
Costs incurred to develop internal-use software during the application development stage are capitalized and reported at cost. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized costs are amortized using the straight-line method over two to three years. Software development costs required to be capitalized for internal-use software have not been material to date. | |||
Capitalized Software and Research and Development Costs | |||
Software development costs relating to products to be sold in the normal course of business are expensed as incurred as research and development costs until technological feasibility is established. Technological feasibility for our products occurs approximately concurrently with the general release of our products; accordingly, we have not capitalized any development or production costs. Costs we incur to maintain and support our existing products after the general release of the product are expensed in the period they are incurred and included in research and development costs in our consolidated statements of income and comprehensive income. | |||
Goodwill and Intangible Assets | |||
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with our business combinations. We test goodwill for impairment at the reporting unit level at least annually during the fourth quarter of each fiscal year and more frequently if impairment indicators are identified. We have determined that our reporting units are the same as our reportable segments. The first step of the goodwill impairment test is a comparison of the fair value of a reporting unit to its carrying value. We estimate the fair values of our reporting units using discounted cash flow valuation models and by comparing our reporting units to guideline publicly-traded companies. These methods require estimates of our future revenues, profits, capital expenditures, working capital, and other relevant factors, as well as selecting appropriate guideline publicly-traded companies for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans, industry data, and other relevant factors. We performed our annual goodwill impairment tests as of July 1, 2013 and 2012, and determined our goodwill was not impaired. | |||
Finite-lived intangible assets are tested for impairment if impairment indicators arise. We amortize our finite-lived intangible assets which result from our acquisitions over the following estimated useful lives: | |||
Estimated Useful Life | |||
Completed technology | 4 to 10 years | ||
Customer contracts and relationships | 5 to 15 years | ||
Trade names | 1 to 5 years | ||
Revenue Recognition | |||
Software Licenses | |||
Software license fee revenue is recognized when persuasive evidence of an arrangement exists, software is made available to our customers, the fee is fixed or determinable and collection is probable. The determination of whether fees are fixed or determinable and collection is probable involves the use of judgment. If at the outset of an arrangement we determine that the arrangement fee is not fixed or determinable, revenue is deferred until the arrangement fee becomes fixed or determinable, assuming all other revenue recognition criteria have been met. If at the outset of an arrangement we determine that collectability is not probable, revenue is deferred until the earlier of when collectability becomes probable or the receipt of payment. If there is uncertainty as to the customer’s acceptance of our deliverables, revenue is not recognized until the earlier of receipt of customer acceptance, expiration of the acceptance period, or when we can demonstrate we meet the acceptance criteria. We evaluate contract terms and customer information to ensure that these criteria are met prior to our recognition of license fee revenue. | |||
We use the residual method to recognize revenue when a software arrangement includes one or more elements to be delivered at a future date provided the following criteria are met: (i) vendor-specific objective evidence (“VSOE”) of the fair value does not exist for one or more of the delivered items but exists for all undelivered elements, (ii) all other applicable revenue recognition criteria are met and (iii) the fair value of all of the undelivered elements is less than the arrangement fee. VSOE of fair value is based on the normal pricing practices for those products and services when sold separately by us and customer renewal rates for post-contract customer support services. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. If evidence of the fair value of one or more undelivered elements does not exist, the revenue is deferred and recognized when delivery of those elements occurs or when fair value can be established. Changes to the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and change to a product’s estimated life cycle could materially impact the amount of earned and unearned revenue. | |||
Revenues from post-contract customer support services, such as software maintenance, are recognized on a straight-line basis over the term of the support period. The majority of our software maintenance agreements provide technical support as well as unspecified software product upgrades and releases when and if made available by us during the term of the support period. | |||
Transactional-based Revenues | |||
Transactional-based revenue is recognized when persuasive evidence of an arrangement exists, fees are fixed or determinable, and collection is reasonably assured. Revenues from our credit scoring, data processing, data management and internet delivery services are recognized as these services are performed. Revenues from transactional or unit-based license fees under software license arrangements, network service and internally-hosted software agreements are recognized based on minimum contractual amounts or on system usage that exceeds minimum contractual amounts. Certain of our transactional-based revenues are based on transaction or active account volumes as reported by our clients. In instances where volumes are reported to us in arrears, we estimate volumes based on preliminary customer transaction information or average actual reported volumes for an immediate trailing period. Differences between our estimates and actual final volumes reported are recorded in the period in which actual volumes are reported. We have not experienced significant variances between our estimates and actual reported volumes in the past and anticipate that we will be able to continue to make reasonable estimates in the future. If for some reason we were unable to reasonably estimate transaction volumes in the future, revenue may be deferred until actual customer data is received, and this could have a material impact on our consolidated results of operations. | |||
Consulting Services | |||
We provide consulting, training, model development and software integration services under both hourly-based time and materials and fixed-priced contracts. Revenues from these services are generally recognized as the services are performed. For fixed-price service contracts, we use a proportionate performance model with hours as the input method of attribution to determine progress towards completion, with consideration also given to output measures, such as contract milestones, when applicable. In such instances, management is required to estimate the total estimated hours of the project. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues and profits are subject to revisions as the contract progresses to completion. Estimated losses, if any, are recorded in the period in which current estimates of total contract revenue and contract costs indicate a loss. If substantive uncertainty related to customer acceptance of services exists, we defer the associated revenue until the contract is completed. We have not experienced significant variances between our estimates and actual hours in the past and anticipate that we will be able to continue to make reasonable estimates in the future. If for some reason we are unable to accurately estimate the input measures, revenue would be deferred until the contract is complete, and this could have a material impact on our consolidated results of operations. | |||
Services that are sold in connection with software license arrangements generally qualify for separate accounting from the license element because they do not involve significant production, modification or customization of our products and are not otherwise considered to be essential to the functionality of our software. In arrangements where the professional services do not qualify for separate accounting from the license element, the combined software license and professional services revenue are recognized based on contract accounting using either the percentage-of-completion or completed-contract method. | |||
Hosting Services | |||
We are an application service provider (“ASP”), where we provide hosting services that allow customers access to software that resides on our servers. The ASP model typically includes an up-front fee and a monthly commitment from the customer that commences upon completion of the implementation through the remainder of the customer life. The up-front fee is the initial setup fee, or the implementation fee. The monthly commitment includes, but is not limited to, a fixed monthly fee or a transactional fee based on system usage that exceeds monthly minimums. Revenue is recognized from ASP transactions when there is persuasive evidence of an arrangement, the service has been provided to the customer, the amount of fees is fixed or determinable and the collection of the Company’s fees is probable. We do not view the activities of signing the contract or providing initial setup services as discrete earnings events. Revenue is typically deferred until the date the customer commences use of our services, at which point the up-front fees are recognized ratably over the expected life of the customer relationship. ASP transactional fees are recorded monthly as earned. | |||
Multiple-Deliverable Arrangements including Non-Software | |||
When we enter into a multiple-deliverable arrangement that includes non-software, each deliverable is accounted for as a separate unit of accounting if the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We consider a deliverable to have standalone value if we sell this item separately or if the item is sold by another vendor or could be resold by the customer. Further, our revenue arrangements generally do not include a general right of return relative to delivered products. Revenue for multiple element arrangements is allocated to the software and non-software deliverables based on a relative selling price. We use VSOE in our allocation of arrangement consideration when it is available. We define VSOE as a median price of recent standalone transactions that are priced within a narrow range, as defined by us. If a product or service is seldom sold separately, it is unlikely that we can determine VSOE. In circumstances when VSOE does not exist, we then assess whether we can obtain third-party evidence (“TPE”) of the selling price. It may be difficult for us to obtain sufficient information on competitor pricing to substantiate TPE and therefore we may not always be able to use TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling price (“ESP”) in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact if the product or service were sold by us on a standalone basis. Our determination of ESP involves weighting several factors based on the specific facts and circumstances of each arrangement. The factors include, but are not limited to, geographies, market conditions, gross margin objectives, pricing practices and controls, customer segment pricing strategies and the product lifecycle. | |||
Gross vs. Net Revenue Reporting | |||
We apply accounting guidance to determine whether we report revenue for certain transactions based upon the gross amount billed to the customer, or the net amount retained by us. In accordance with the guidance we record revenue on a gross basis for sales in which we have acted as the principal and on a net basis for those sales in which we have in substance acted as an agent or broker in the transaction. | |||
Business Combinations | |||
Accounting for our acquisitions requires us to recognize, separately from goodwill, the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income and comprehensive income. | |||
Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date including our estimates for intangible assets, contractual obligations assumed, pre-acquisition contingencies and contingent consideration, where applicable. If we cannot reasonably determine the fair value of a pre-acquisition contingency (non-income tax related) by the end of the measurement period, we will recognize an asset or a liability for such pre-acquisition contingency if: (i) it is probable that an asset existed or a liability had been incurred at the acquisition date and (ii) the amount of the asset or liability can be reasonably estimated. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Subsequent to the measurement period, changes in our estimates of such contingencies will affect earnings and could have a material effect on our results of operations and financial position. | |||
Examples of critical estimates in valuing certain of the intangible assets we have acquired include but are not limited to: (i) future expected cash flows from software license sales, support agreements, consulting contracts, other customer contracts and acquired developed technologies and patents; (ii) expected costs to develop the in-process research and development into commercially viable products and estimated cash flows from the projects when completed, and; (iii) the acquired company’s brand and competitive position, as well as assumptions about the period of time the acquired brand will continue to be used in the combined company’s product portfolio. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. | |||
In addition, uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We reevaluate these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to our preliminary estimates being recorded to goodwill provided that we are within the measurement period. Subsequent to the measurement period or our final determination of the tax allowance’s or contingency’s estimated value, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect our provision for income taxes in our consolidated statements of income and comprehensive income and could have a material impact on our results of operations and financial position. | |||
Income Taxes | |||
We estimate our income taxes based on the various jurisdictions where we conduct business, which involves significant judgment in determining our income tax provision. We estimate our current tax liability using currently enacted tax rates and laws and assess temporary differences that result from differing treatments of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities recorded on our balance sheet using the currently enacted tax rates and laws that will apply to taxable income for the years in which those tax assets are expected to be realized or settled. We then assess the likelihood our deferred tax assets will be realized and to the extent we believe realization is not likely, we establish a valuation allowance. When we establish a valuation allowance or increase this allowance in an accounting period, we record a corresponding income tax expense in our consolidated statements of income and comprehensive income. In assessing the need for the valuation allowance, we consider future taxable income in the jurisdictions we operate; an analysis of our deferred tax assets and the periods over which they will be realizable; and ongoing prudent and feasible tax planning strategies. An increase in the valuation allowance would have an adverse impact, which could be material, on our income tax provision and net income in the period in which we record the increase. | |||
We recognize and measure benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the technical merits of the tax position indicate it is more likely than not that the tax position will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions more likely than not of being sustained upon audit, the second step is to measure the tax benefit as the largest amount more than 50% likely of being realized upon settlement. Significant judgment is required to evaluate uncertain tax positions and they are evaluated on a quarterly basis. Our evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our income tax expense in the period in which we make the change, which could have a material impact on our effective tax rate and operating results. | |||
A description of our accounting policies associated with tax-related contingencies and valuation allowances assumed as part of a business combination is provided under “Business Combinations” above. | |||
Earnings per Share | |||
Basic earnings per share are computed on the basis of the weighted-average number of common shares outstanding during the period under measurement. Diluted earnings per share are based on the weighted-average number of common shares outstanding and potential common shares. Potential common shares result from the assumed exercise of outstanding stock options or other potentially dilutive equity instruments, when they are dilutive under the treasury stock method. | |||
Comprehensive Income | |||
Comprehensive income is the change in our equity (net assets) during each period from transactions and other events and circumstances from non-owner sources. It includes net income, foreign currency translation adjustments and unrealized gains and losses on our investments in marketable securities, net of tax. | |||
Foreign Currency and Derivative Financial Instruments | |||
We have determined that the functional currency of each foreign operation is the local currency. Assets and liabilities denominated in their local foreign currencies are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates of exchange prevailing during the period. Foreign currency translation adjustments are accumulated as a separate component of consolidated stockholders’ equity. | |||
We utilize derivative instruments to manage market risks associated with fluctuations in certain foreign currency exchange rates as they relate to specific balances of accounts receivable and cash denominated in foreign currencies. We principally utilize foreign currency forward contracts to protect against market risks arising in the normal course of business. Our policies prohibit the use of derivative instruments for the sole purpose of trading for profit on price fluctuations or to enter into contracts that intentionally increase our underlying exposure. All of our forward foreign currency contracts have maturity periods of less than three months. | |||
At the end of the reporting period, foreign currency denominated assets and liabilities are remeasured into the functional currencies of the reporting entities at current market rates. The change in value from this remeasurement is reported as a foreign exchange gain or loss for that period in other income (expense), net in the accompanying consolidated statements of income and comprehensive income. We recorded transactional foreign currency exchange losses of $0.8 million, $1.5 million and $1.0 million during fiscal 2013, 2012 and 2011, respectively. | |||
Share-Based Compensation | |||
We account for share-based compensation using the fair value recognition provisions as required in the accounting literature. We estimate the fair value of options granted using the Black-Scholes option valuation model. We estimate the volatility of our common stock at the date of grant based on a combination of the implied volatility of publicly traded options on our common stock and our historical volatility rate. We estimate the expected term of options granted based on historical exercise patterns. The dividend yield assumption is based on historical dividend payouts. The risk-free interest rate assumption is based on observed interest rates appropriate for the term of our employee options. We use historical data to estimate pre-vesting option forfeitures and record share-based compensation expense only for those awards that are expected to vest. For options granted, we amortize the fair value on a straight-line basis. All options are amortized over the requisite service periods of the awards, which are generally the vesting periods. If factors change we may decide to use different assumptions under the Black-Scholes option valuation model in the future, which could materially affect our share-based compensation expense, net income and earnings per share. See Note 14 for further discussion of our share-based employee benefit plans. | |||
Impairment of Long-Lived Assets | |||
We assess potential impairment of long-lived assets and certain identifiable intangible assets with finite lives whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows that are expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We determined that our long-lived assets were not impaired at September 30, 2013 and 2012. | |||
Advertising and Promotion Costs | |||
Advertising and promotion costs are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of income and comprehensive income. Advertising and promotion costs totaled $2.5 million, $1.8 million and $1.0 million in fiscal 2013, 2012 and 2011, respectively. | |||
New Accounting Pronouncements Recently Issued or Adopted | |||
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” (ASU 2011-11). ASU 2011-11 provides for additional disclosures of both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” (ASU 2013-01). ASU 2013-01 clarifies that ordinary trade receivables and payables are not in the scope of ASU 2011-11. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ or subject to a master netting arrangement or similar agreement. Both ASU 2013-01 and ASU 2011-11 are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013, which means that they will be effective for our fiscal year beginning October 1, 2013. Retrospective adoption is required. We do not believe that adoption of ASU 2013-01 or ASU 2011-11 will have a significant impact on our consolidated financial statements. | |||
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” (ASU 2013-02). ASU 2013-02 requires reporting entities to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, reporting entities will be required to present, either on the face of the statement of income and comprehensive income or in the footnotes to the financial statements, significant amounts reclassified from accumulated other comprehensive income by statements of income and comprehensive income line item. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012, which means that it will be effective for our fiscal year beginning October 1, 2013. Early adoption is permitted. We do not believe that adoption of ASU 2013-02 will have a significant impact on our consolidated financial statements. | |||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” (ASU 2013-11). ASU 2013-11 provides guidance for presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit. ASU 2013-11 provides that a benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2013, which means it will be effective for our fiscal year beginning October 1, 2014. We do not believe that adoption of ASU 2013-11 will have a significant impact on our consolidated financial statements. |
Business_Combinations
Business Combinations | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Business Combinations | ' | ||||
2. Business Combinations | |||||
CR Software | |||||
On November 21, 2012, we acquired 100% of the ownership interest of CR Software, LLC (“CR Software”), a provider of enterprise-class collections and recovery solutions for credit issuers, government organizations, collection agencies, retailers, healthcare and other leading enterprises. The primary objective of the acquisition was to help us accelerate the delivery of robust collections and recovery capabilities to clients across multiple industries and organization sizes. | |||||
The following table summarizes the consideration paid for CR Software and the allocation of purchase price to assets acquired and liabilities assumed, recognized based on a valuation at the acquisition date: | |||||
(In thousands) | |||||
Consideration | |||||
Cash | $ | 29,649 | |||
Acquisition-related costs (included in the company’s consolidated statement of income and comprehensive income for the year ended September 30, 2013 as a component of restructuring and acquisition-related expense) | $ | 306 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | $ | 1,211 | |||
Accounts receivable, net | 2,943 | ||||
Prepaid expenses and other current assets | 119 | ||||
Property and equipment, net | 238 | ||||
Intangible assets: | |||||
Completed technology | 10,800 | ||||
Customer relationships | 5,500 | ||||
Trade names | 200 | ||||
Other assets | 28 | ||||
Accounts payable | (400 | ) | |||
Accrued compensation and employee benefits | (506 | ) | |||
Other accrued liabilities | (1,057 | ) | |||
Deferred revenue | (178 | ) | |||
Notes payable to affiliate | (2,925 | ) | |||
Total identifiable net assets | 15,973 | ||||
Goodwill | 13,676 | ||||
Total | $ | 29,649 | |||
The acquired identifiable intangible assets have a weighted average useful life of approximately 8.8 years and are being amortized using the straight-line method over their estimated useful lives as follows: completed technology, five to ten years, customer relationships, ten years, and trade names, one year. The goodwill of $13.7 million arising from the acquisition consists largely of the revenue synergies created by market expansion and increasingly rapid innovation for our collections & recovery solutions. The goodwill was allocated to our Applications segment and is not deductible for tax purposes. CR Software has been included in our operating results since the acquisition date. | |||||
Infoglide | |||||
On April 1, 2013, we acquired 100% of the common stock of Infoglide Software, Inc. (“Infoglide”) for $4.4 million in cash. Infoglide is a provider of entity resolution and social network analysis solutions used primarily to improve fraud detection, security and compliance. Infoglide’s solutions expedite fraud investigations and will further differentiate FICO’s fraud solutions in banking, insurance, retail and healthcare, as well as enabling FICO analytics to be applied to fraud, security and compliance challenges across multiple industries, including telecommunications and cyber-security. Infoglide has been included in our operating results since the acquisition date. | |||||
The pro forma impact of these acquisitions was not deemed material to our results of operations for the periods presented. |
Cash_Cash_Equivalents_and_Mark
Cash, Cash Equivalents and Marketable Securities Available for Sale | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Cash, Cash Equivalents and Marketable Securities Available for Sale | ' | ||||||||||||||||||||||||||||||||
3. Cash, Cash Equivalents and Marketable Securities Available for Sale | |||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and marketable securities available for sale at September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 82,493 | $ | — | $ | — | $ | 82,493 | $ | 70,965 | $ | — | $ | — | $ | 70,965 | |||||||||||||||||
Money market funds | 439 | — | — | 439 | 397 | — | — | 397 | |||||||||||||||||||||||||
Non U.S. money market funds | 246 | — | — | 246 | 247 | — | — | 247 | |||||||||||||||||||||||||
Total | $ | 83,178 | $ | — | $ | — | $ | 83,178 | $ | 71,609 | $ | — | $ | — | $ | 71,609 | |||||||||||||||||
Short-term Marketable Securities: | |||||||||||||||||||||||||||||||||
U.S. government obligations | $ | — | $ | — | $ | — | $ | — | $ | 20,001 | $ | — | $ | (1 | ) | $ | 20,000 | ||||||||||||||||
U.S. corporate debt | — | — | — | — | 2,007 | 1 | — | 2,008 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 22,008 | $ | 1 | $ | (1 | ) | $ | 22,008 | ||||||||||||||||
Long-term Marketable Securities: | |||||||||||||||||||||||||||||||||
Marketable equity securities | $ | 6,006 | $ | 1,101 | $ | — | $ | 7,107 | $ | 5,016 | $ | 401 | $ | — | $ | 5,417 | |||||||||||||||||
Short-term marketable securities mature at various dates over the course of the next twelve months. The long-term marketable equity securities represent securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. | |||||||||||||||||||||||||||||||||
The following table shows the gross unrealized losses and fair value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Description of Securities: | |||||||||||||||||||||||||||||||||
U.S. government obligations | $ | 15,000 | $ | (1 | ) | $ | — | $ | — | $ | 15,000 | $ | (1 | ) | |||||||||||||||||||
Total | $ | 15,000 | $ | (1 | ) | $ | — | $ | — | $ | 15,000 | $ | (1 | ) | |||||||||||||||||||
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value Measurements | ' | ||||||||||||
4. Fair Value Measurements | |||||||||||||
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. | |||||||||||||
• | Level 1 — uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities. | ||||||||||||
• | Level 2 — uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. Our Level 2 assets are comprised of U.S. government and corporate debt obligations that are generally held to maturity. | ||||||||||||
• | 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. | ||||||||||||
The following table represents financial assets that we measured at fair value on a recurring basis at September 30, 2013 and 2012: | |||||||||||||
September 30, 2013 | Active Markets for | Significant Other | Fair Value as of | ||||||||||
Identical Instruments | Observable Inputs | September 30, 2013 | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents (1) | $ | 685 | $ | — | $ | 685 | |||||||
Marketable securities (3) | 7,107 | — | 7,107 | ||||||||||
Total | $ | 7,792 | $ | — | $ | 7,792 | |||||||
September 30, 2012 | Active Markets for | Significant Other | Fair Value as of | ||||||||||
Identical Instruments | Observable Inputs | September 30, 2012 | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents (1) | $ | 644 | $ | — | $ | 644 | |||||||
U.S. corporate debt (2) | — | 2,008 | 2,008 | ||||||||||
U.S. government obligations (2) | — | 20,000 | 20,000 | ||||||||||
Marketable securities (3) | 5,417 | — | 5,417 | ||||||||||
Total | $ | 6,061 | $ | 22,008 | $ | 28,069 | |||||||
-1 | Included in cash and cash equivalents on our balance sheet at September 30, 2013 and 2012. Not included in this table are cash deposits of $82.5 million and $71.0 million at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Included in current marketable securities on our balance sheet at September 30, 2012. | ||||||||||||
-3 | Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in long-term marketable securities on our balance sheet at September 30, 2013 and 2012. | ||||||||||||
Where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing applies to our Level 1 investments. To the extent quoted prices in active markets for assets or liabilities are not available, the valuation techniques used to measure the fair values of our financial assets incorporate market inputs, which include reported trades, broker/dealer quotes, benchmark yields, issuer spreads, benchmark securities and other inputs derived from or corroborated by observable market data. This methodology applies to our Level 2 investments. The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period. | |||||||||||||
For the fair value of our derivative instruments and Senior Notes, see Note 5 and Note 10 to the consolidated financial statements, respectively. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Derivative Financial Instruments | ' | ||||||||||||
5. 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 accounts receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their 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 currency exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro and Canadian dollar. | |||||||||||||
Foreign currency denominated accounts receivable and cash balances are remeasured at foreign currency rates in effect on the balance sheet date with the effects of changes in foreign currency rates reported in other income (expense), net. The forward contracts are not designated as hedges and are marked to market through other income (expense), net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured accounts receivable and cash balances attributable to changes in foreign currency exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months. | |||||||||||||
The following table summarizes our outstanding forward foreign currency contracts, by currency at September 30, 2013 and 2012: | |||||||||||||
September 30, 2013 | |||||||||||||
Contract Amount | Fair Value | ||||||||||||
Foreign | US$ | US$ | |||||||||||
Currency | |||||||||||||
(In thousands) | |||||||||||||
Sell foreign currency: | |||||||||||||
Canadian dollar (CAD) | CAD 4,700 | $ | 4,542 | $ | — | ||||||||
Euro (EUR) | EUR 5,400 | $ | 7,307 | — | |||||||||
Buy foreign currency: | |||||||||||||
British pound (GBP) | GBP 6,513 | $ | 10,500 | — | |||||||||
September 30, 2012 | |||||||||||||
Contract Amount | Fair Value | ||||||||||||
Foreign | US$ | US$ | |||||||||||
Currency | |||||||||||||
(In thousands) | |||||||||||||
Sell foreign currency: | |||||||||||||
Canadian dollar (CAD) | CAD 2,750 | $ | 2,794 | $ | — | ||||||||
Euro (EUR) | EUR 4,060 | $ | 5,255 | — | |||||||||
Buy foreign currency: | |||||||||||||
British pound (GBP) | GBP 6,131 | $ | 9,950 | — | |||||||||
The forward foreign currency contracts were entered into on September 30 of each fiscal year; therefore, their fair value was $0 at September 30, 2013 and 2012. | |||||||||||||
Gains on derivative financial instruments are recorded in our consolidated statements of income and comprehensive income as a component of other income (expense), net. These amounts are shown below for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Foreign currency forward contracts | $ | 25 | $ | 453 | $ | — |
Receivables
Receivables | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables | ' | ||||||||
6. Receivables | |||||||||
Receivables at September 30, 2013 and 2012 consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Billed | $ | 115,640 | $ | 113,514 | |||||
Unbilled (1) | 31,250 | 32,487 | |||||||
146,890 | 146,001 | ||||||||
Less: allowance for doubtful accounts | (3,157 | ) | (3,406 | ) | |||||
Receivables, net | $ | 143,733 | $ | 142,595 | |||||
-1 | Represents revenue recorded in excess of amounts billable pursuant to contract provisions and generally become billable at contractually specified dates or upon the attainment of milestones. Unbilled amounts are expected to be realized within one year. | ||||||||
Activity in the allowance for doubtful accounts was as follows: | |||||||||
Year Ended September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance, beginning of year | $ | 3,406 | $ | 3,714 | |||||
Add: expense | 327 | (122 | ) | ||||||
Less: write-offs (net of recoveries) | (576 | ) | (186 | ) | |||||
Balance, end of year | $ | 3,157 | $ | 3,406 | |||||
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||||||||||||||||||
7. Goodwill and Intangible Assets | |||||||||||||||||||||||||||||||||
Intangible assets that are subject to amortization consisted of the following at September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(In thousands, except average life) | |||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Average | Gross | Accumulated | Net | Average | ||||||||||||||||||||||||||
Carrying | Amortization | Life | Carrying | Amortization | Life | ||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Completed technology | $ | 84,604 | $ | (53,347 | ) | $ | 31,257 | 5 | $ | 92,437 | $ | (66,950 | ) | $ | 25,487 | 5 | |||||||||||||||||
Customer contracts and relationships | 56,321 | (30,422 | ) | 25,899 | 13 | 73,046 | (47,224 | ) | 25,822 | 12 | |||||||||||||||||||||||
Trade names | 230 | (182 | ) | 48 | 1 | 9,801 | (9,290 | ) | 511 | 3 | |||||||||||||||||||||||
$ | 141,155 | $ | (83,951 | ) | 57,204 | 8 | $ | 175,284 | $ | (123,464 | ) | 51,820 | 11 | ||||||||||||||||||||
Foreign currency translation adjustments | 157 | 479 | |||||||||||||||||||||||||||||||
Intangible assets, net | $ | 57,361 | $ | 52,299 | |||||||||||||||||||||||||||||
Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying consolidated statements of income and comprehensive income, consisted of the following during fiscal 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cost of revenues | $ | 6,630 | $ | 1,332 | $ | 2,274 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 6,905 | 5,612 | 5,467 | ||||||||||||||||||||||||||||||
Total | $ | 13,535 | $ | 6,944 | $ | 7,741 | |||||||||||||||||||||||||||
In the table above, cost of revenues reflects our amortization of completed technology, and selling, general and administrative expenses reflect our amortization of other intangible assets. | |||||||||||||||||||||||||||||||||
Estimated future intangible asset amortization expense associated with intangible assets existing at September 30, 2013, was as follows (in thousands): | |||||||||||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | $ | 11,557 | |||||||||||||||||||||||||||||||
2015 | 11,409 | ||||||||||||||||||||||||||||||||
2016 | 11,180 | ||||||||||||||||||||||||||||||||
2017 | 10,044 | ||||||||||||||||||||||||||||||||
2018 | 2,866 | ||||||||||||||||||||||||||||||||
Thereafter | 10,305 | ||||||||||||||||||||||||||||||||
Total | $ | 57,361 | |||||||||||||||||||||||||||||||
The following table summarizes changes to goodwill during fiscal 2013 and 2012, both in total and as allocated to our operating segments. We have not recognized any goodwill impairment losses to date. | |||||||||||||||||||||||||||||||||
Applications | Scores | Tools | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 451,205 | $ | 146,648 | $ | 66,835 | $ | 664,688 | |||||||||||||||||||||||||
Addition from acquisition | 87,280 | — | — | 87,280 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | 4,458 | — | 1,078 | 5,536 | |||||||||||||||||||||||||||||
Balance at September 30, 2012 | 542,943 | 146,648 | 67,913 | 757,504 | |||||||||||||||||||||||||||||
Addition from acquisition | 17,457 | — | — | 17,457 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (862 | ) | — | (168 | ) | (1,030 | ) | ||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 559,538 | $ | 146,648 | $ | 67,745 | $ | 773,931 | |||||||||||||||||||||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Composition of Certain Financial Statement Captions | ' | ||||||||
8. Composition of Certain Financial Statement Captions | |||||||||
The following table presents the composition of property and equipment and other accrued liabilities at September 30, 2013 and 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Property and equipment: | |||||||||
Data processing equipment and software | $ | 139,035 | $ | 161,215 | |||||
Office furniture and equipment | 11,670 | 6,963 | |||||||
Leasehold improvements | 24,117 | 21,341 | |||||||
Less: accumulated depreciation and amortization | (129,667 | ) | (148,439 | ) | |||||
Total | $ | 45,155 | $ | 41,080 | |||||
Other accrued liabilities: | |||||||||
Interest payable | $ | 8,519 | $ | 9,747 | |||||
Income taxes payable | 6,821 | 11,754 | |||||||
Other | 19,862 | 22,144 | |||||||
Total | $ | 35,202 | $ | 43,645 | |||||
Revolving_Line_of_Credit
Revolving Line of Credit | 12 Months Ended |
Sep. 30, 2013 | |
Revolving Line of Credit | ' |
9. Revolving Line of Credit | |
We have a $200 million unsecured revolving line of credit with a syndicate of banks that expires on September 28, 2016. 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 the Company’s 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 and (b) the Federal Funds rate plus 0.50% or (ii) LIBOR plus an applicable margin. The margin on LIBOR borrowings ranges from 1.000% to 1.625% and is determined based on our consolidated leverage ratio. In addition, we must pay utilization fees if borrowings and commitments under the credit facility exceed 50% of the total credit facility commitment, as well as facility fees. The credit facility contains certain restrictive covenants including maintaining a maximum consolidated leverage ratio of 3.0 and a minimum fixed charge ratio of 2.5, and also contains other covenants typical of unsecured facilities. As of September 30, 2013, we had $15.0 million in borrowings outstanding at an interest rate of 1.3125% and were in compliance with all financial covenants under this credit facility. |
Senior_Notes
Senior Notes | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Senior Notes | ' | ||||||||||||||||||||||||
10. Senior Notes | |||||||||||||||||||||||||
On May 7, 2008, we issued $275 million of Senior Notes in a private placement to a group of institutional investors (the “2008 Senior Notes”). The 2008 Senior Notes were issued in four series as follows: | |||||||||||||||||||||||||
Series | Amount | Interest Rate | Maturity Date | ||||||||||||||||||||||
A | $41 million | 6.37 | % | May 7, 2013 | |||||||||||||||||||||
B | $40 million | 6.37 | % | 7-May-15 | |||||||||||||||||||||
C | $63 million | 6.71 | % | 7-May-15 | |||||||||||||||||||||
D | $131 million | 7.18 | % | 7-May-18 | |||||||||||||||||||||
On July 14, 2010, we issued $245 million of Senior Notes in a private placement to a group of institutional investors (the “2010 Senior Notes” and, with the 2008 Senior Notes, the “Senior Notes”). The 2010 Senior Notes were issued in four series as follows: | |||||||||||||||||||||||||
Series | Amount | Interest Rate | Maturity Date | ||||||||||||||||||||||
E | $60 million | 4.72 | % | July 14, 2016 | |||||||||||||||||||||
F | $72 million | 5.04 | % | 14-Jul-17 | |||||||||||||||||||||
G | $28 million | 5.42 | % | 14-Jul-19 | |||||||||||||||||||||
H | $85 million | 5.59 | % | 14-Jul-20 | |||||||||||||||||||||
We are required to pay the entire unpaid principal balances of each note series on its maturity date except for Series B notes, which required annual principal payments of $8.0 million starting on May 7, 2011 and ending on May 7, 2015. The Series A note matured on May 7, 2013 and the entire $41 million principal balance was repaid. The Senior Notes require interest payments semi-annually and also include certain restrictive covenants. As of September 30, 2013, we were in compliance with all financial covenants which include the maintenance of consolidated net debt to consolidated EBITDA ratio and a fixed charge coverage ratio. The issuance of the Senior Notes also required us to make certain covenants typical of unsecured facilities. | |||||||||||||||||||||||||
The following table presents the principal amounts, carrying amounts, and fair values for our Senior Notes at September 30, 2013 and 2012: | |||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||
Principal | Carrying | Fair Value | Principal | Carrying | Fair Value | ||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
May 2008 $275 million Senior Notes | $ | 210,000 | $ | 210,000 | $ | 221,393 | $ | 259,000 | $ | 259,000 | $ | 275,201 | |||||||||||||
July 2010 $245 million Senior Notes | $ | 245,000 | $ | 245,000 | $ | 241,035 | $ | 245,000 | $ | 245,000 | $ | 243,866 | |||||||||||||
We measure the fair value of our Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. | |||||||||||||||||||||||||
Future principal payments for the Senior Notes are as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2014 | $ | 8,000 | |||||||||||||||||||||||
2015 | 71,000 | ||||||||||||||||||||||||
2016 | 60,000 | ||||||||||||||||||||||||
2017 | 72,000 | ||||||||||||||||||||||||
2018 | 131,000 | ||||||||||||||||||||||||
Thereafter | 113,000 | ||||||||||||||||||||||||
Total | $ | 455,000 | |||||||||||||||||||||||
Employee_Benefit_Plans
Employee Benefit Plans | 12 Months Ended |
Sep. 30, 2013 | |
Employee Benefit Plans | ' |
11. Employee Benefit Plans | |
Defined Contribution Plans | |
We sponsor the Fair Isaac Corporation 401(k) plan for eligible employees. Under this plan, eligible employees may contribute up to 25% of compensation, not to exceed statutory limits. We also provide a company matching contribution. Investment in FICO common stock is not an option under this plan. Our contributions into all 401(k) plans, including former acquired company sponsored plans that have since merged into the Fair Isaac Corporation 401(k) plan or have been frozen, totaled $6.3 million, $5.5 million and $5.1 million during fiscal 2013, 2012 and 2011, respectively. | |
Employee Incentive Plans | |
We maintain various employee incentive plans for the benefit of eligible employees, including officers. The awards generally are based on the achievement of certain financial and performance objectives subject to the discretion of management. Total expenses under our employee incentive plans were $10.5 million, $17.4 million and $10.1 million during fiscal 2013, 2012 and 2011, respectively. |
Restructuring_Expenses
Restructuring Expenses | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Restructuring Expenses | ' | ||||||||||||||||||||
12. Restructuring Expenses | |||||||||||||||||||||
During fiscal 2013, we incurred net charges totaling $2.5 million consisting of $1.6 million in facilities charges associated with vacating excess leased space in Minnesota, $1.1 million in severance charges due to the elimination of 52 positions primarily in the U.S., and a reversal of $0.2 million of previously recognized severance costs due to favorable adjustments. Cash payments for all the severance costs were paid during fiscal 2013. Cash payments for substantially all the facilities charges will be paid by the end of fiscal 2014. | |||||||||||||||||||||
During fiscal 2012, we incurred $4.0 million in severance charges due to the elimination of 85 positions mainly within the product and technology organization of the Company. Cash payments for all the severance costs have been paid by the end of fiscal 2013. | |||||||||||||||||||||
During fiscal 2011, we incurred charges totaling $12.4 million as a result of $8.2 million in severance charges due to the elimination of 177 positions throughout the company, and $4.2 million in facilities charges associated with vacating excess leased space primarily in Minnesota and Georgia. Cash payments for all the severance costs were paid during fiscal 2011. Cash payments for substantially all the facilities charges have been paid by the end of fiscal 2013. | |||||||||||||||||||||
The following table summarizes our restructuring accruals associated with the above actions. The current portion and non-current portion was recorded in other accrued current liabilities and other liabilities, respectively, within the accompanying consolidated balance sheets. | |||||||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2010 | 2011 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 2,836 | $ | 4,226 | $ | (1,700 | ) | $ | — | $ | 5,362 | ||||||||||
Employee separation | 742 | 8,165 | (7,873 | ) | — | 1,034 | |||||||||||||||
3,578 | $ | 12,391 | $ | (9,573 | ) | $ | — | 6,396 | |||||||||||||
Less: current portion | (1,474 | ) | (3,062 | ) | |||||||||||||||||
Non-current | $ | 2,104 | $ | 3,334 | |||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2011 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 5,362 | $ | — | $ | (2,029 | ) | $ | — | $ | 3,333 | ||||||||||
Employee separation | 1,034 | 3,978 | (2,541 | ) | — | 2,471 | |||||||||||||||
6,396 | $ | 3,978 | $ | (4,570 | ) | $ | — | 5,804 | |||||||||||||
Less: current portion | (3,062 | ) | (4,944 | ) | |||||||||||||||||
Non-current | $ | 3,334 | $ | 860 | |||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 3,333 | $ | 1,624 | $ | (3,225 | ) | $ | — | $ | 1,732 | ||||||||||
Employee separation | 2,471 | 1,095 | (3,313 | ) | (253 | ) | — | ||||||||||||||
5,804 | $ | 2,719 | $ | (6,538 | ) | $ | (253 | ) | 1,732 | ||||||||||||
Less: current portion | (4,944 | ) | (1,732 | ) | |||||||||||||||||
Non-current | $ | 860 | $ | — | |||||||||||||||||
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Income Taxes | ' | ||||||||||||
13. Income Taxes | |||||||||||||
The provision for income taxes was as follows during fiscal 2013, 2012, and 2011: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 31,469 | $ | 42,502 | $ | 22,019 | |||||||
State | 2,755 | 4,899 | 2,873 | ||||||||||
Foreign | 3,994 | 3,959 | (251 | ) | |||||||||
38,218 | 51,360 | 24,641 | |||||||||||
Deferred: | |||||||||||||
Federal | (468 | ) | (6,843 | ) | 59 | ||||||||
State | 2,069 | (925 | ) | (112 | ) | ||||||||
Foreign | 2,070 | 647 | 1,305 | ||||||||||
3,671 | (7,121 | ) | 1,252 | ||||||||||
Total provision | $ | 41,889 | $ | 44,239 | $ | 25,893 | |||||||
The foreign provision was based on foreign pretax earnings of $24.3 million, $26.9 million and $20.6 million in fiscal 2013, 2012, and 2011, respectively. Current foreign tax expense related to foreign tax withholdings was $4.8 million, $6.3 million and $5.4 million in fiscal 2013, 2012, and 2011, respectively. Foreign withholding tax and related foreign tax credits are included in federal current tax expense above. | |||||||||||||
Deferred tax assets and liabilities at September 30, 2013 and 2012 were as follows: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforward | $ | 21,529 | $ | 22,120 | |||||||||
Research credit carryforward | 4,074 | 2,310 | |||||||||||
Capital loss carryforward | 165 | 91 | |||||||||||
Investments | 1,101 | 1,141 | |||||||||||
Accrued compensation | 1,662 | 1,297 | |||||||||||
Share-based compensation | 16,443 | 20,109 | |||||||||||
Deferred revenue | 2,139 | 3,577 | |||||||||||
Accrued lease costs | 1,127 | 1,774 | |||||||||||
Property and equipment | 2,155 | 3,629 | |||||||||||
Other | 7,093 | 14,183 | |||||||||||
57,488 | 70,231 | ||||||||||||
Less valuation allowance | (8,712 | ) | (5,425 | ) | |||||||||
Total deferred tax assets | 48,776 | 64,806 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (29,912 | ) | (31,364 | ) | |||||||||
Prepaid expense | (3,526 | ) | (3,405 | ) | |||||||||
Other | (1,515 | ) | (1,019 | ) | |||||||||
Total deferred tax liabilities | (34,953 | ) | (35,788 | ) | |||||||||
Deferred tax assets, net | $ | 13,823 | $ | 29,018 | |||||||||
Based upon the level of historical taxable income and projections for future taxable income over the periods that the deferred tax assets will reverse, management believes it is more likely than not that we will realize the benefits of the deferred tax assets, net of the existing valuation allowance at September 30, 2013. | |||||||||||||
For fiscal 2013, the increase in the valuation allowance was due to a change in the California tax law in which FICO adopted the single sales factor election that will result in lower income apportioned to California. The lower income apportioned to California in the future will result in FICO not being able to utilize the existing Research & Development Tax credits it had recorded as deferred tax assets. The remaining valuation allowance is associated with operations where the Company has a Net Operating Loss (“NOL”) carryforward where realization remains uncertain. | |||||||||||||
As of September 30, 2013, we had available U.S. federal, state and foreign NOL carryforwards of approximately $31.5 million, $6.2 million, and $10.2 million, respectively. The NOLs were acquired in connection with our acquisitions of Braun in fiscal 2005, Adeptra and Entiera in fiscal 2012, and Infoglide in fiscal 2013. The change in NOL during fiscal 2013 was due to utilization of federal NOL and acquisition of Infoglide. The U.S. federal NOL carryforward will expire at various dates beginning in fiscal 2024, if not utilized. The state NOL carryforward will begin to expire at various dates beginning in fiscal 2021, if not utilized. The UK NOL carryforward does not have an expiration date. Utilization of the U.S. federal and state NOL are subject to an annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 (the “Code”), as amended, and similar state provisions. We also have available excess California state research credit of approximately $3.4 million. The California state research credit does not have an expiration date; however, due to the adoption of the single sales factor election, FICO has recorded a valuation allowance of $3.4 million. | |||||||||||||
The reconciliation between the U.S. federal statutory income tax rate of 35% and our effective tax rate is shown below for fiscal 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Income tax provision at U.S. federal statutory rate | $ | 46,194 | $ | 47,685 | $ | 34,117 | |||||||
State income taxes, net of U.S. federal benefit | 2,689 | 3,663 | 2,770 | ||||||||||
Foreign taxes | (2,855 | ) | (3,616 | ) | (9,867 | ) | |||||||
Intercompany dividend | (32 | ) | 2,692 | 3,822 | |||||||||
Research credits | (2,412 | ) | (375 | ) | (2,559 | ) | |||||||
Domestic production deduction | (2,168 | ) | (3,054 | ) | (2,494 | ) | |||||||
Tax audit settlements | — | (1,203 | ) | 1,524 | |||||||||
CA Valuation | 2,310 | — | — | ||||||||||
Other | (1,837 | ) | (1,553 | ) | (1,420 | ) | |||||||
Recorded income tax provision | $ | 41,889 | $ | 44,239 | $ | 25,893 | |||||||
The 2013 effective tax rate was positively impacted by the reenactment of the U.S. Federal Research and Development Credit. The 2012 effective tax rate was negatively impacted by the expiration of the U.S. Federal Research and Development credit and a one-time tax impact of a legal entity restructuring charge. | |||||||||||||
In 2013 and 2012, the foreign taxes consist of tax rate differentials, local country permanent items, and prior years’ true ups. | |||||||||||||
In general, it is the practice and intention of the Company to reinvest the earnings of its non-U.S. subsidiaries in those operations. As of September 30, 2013, the Company has not made a provision for U.S. or additional foreign withholding taxes on approximately $48.6 million of the excess of the amount for financial reporting over the tax basis of investments in foreign subsidiaries that are essentially permanent in duration. Generally, such amounts become subject to U.S. taxation upon the remittance of dividends and under certain other circumstances. It is not practicable to estimate the amount of deferred tax liability related to investments in these foreign subsidiaries. | |||||||||||||
Unrecognized Tax Benefit for Uncertain Tax Positions | |||||||||||||
We conduct business globally and, as a result, file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities. With a few exceptions, we are no longer subject to U.S. federal, state, local, or foreign income tax examinations for fiscal years prior to 2008. We are currently under audit by the IRS for tax returns filed for fiscal years 2008 through 2012 and by California Franchise Tax Board for fiscal 2006 through 2011. We do not anticipate any adjustments related to those audits that will result in a material change to our consolidated financial statements. | |||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Gross unrecognized tax benefits at beginning of year | $ | 7,501 | $ | 9,539 | $ | 12,286 | |||||||
Gross increases for tax positions in prior years | 508 | 64 | 547 | ||||||||||
Gross decreases for tax positions in prior years | — | (2,035 | ) | — | |||||||||
Gross increases based on tax positions related to the current year | 1,000 | 681 | 1,000 | ||||||||||
Decreases for settlements and payments | — | (748 | ) | (4,294 | ) | ||||||||
Gross unrecognized tax benefits at end of year | $ | 9,009 | $ | 7,501 | $ | 9,539 | |||||||
We had $9.0 million of total unrecognized tax benefits as of September 30, 2013. Included in the $9.0 million of total gross unrecognized tax benefits as of September 30, 2013 was $7.2 million of tax benefits that, if recognized, would impact the effective tax rate. Although the timing and outcome of audit settlements are uncertain, it is reasonably possible that a $7.0 million reduction of the uncertain tax benefits will occur in the next 12 months. | |||||||||||||
We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our consolidated statements of income and comprehensive income. We recognize interest earned related to income tax matters as interest income in our consolidated statements of income and comprehensive income. As of September 30, 2013, we have accrued interest of $0.9 million related to the unrecognized tax benefits. |
StockBased_Employee_Benefit_Pl
Stock-Based Employee Benefit Plans | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Stock-Based Employee Benefit Plans | ' | ||||||||||||||||
14. Stock-Based Employee Benefit Plans | |||||||||||||||||
Description of Stock Option and Share Plans | |||||||||||||||||
We maintained the 1992 Long-term Incentive Plan (the “1992 Plan”) under which we could grant stock options, stock appreciation rights, restricted stock, restricted stock units and common stock to officers, key employees and non-employee directors. The 1992 Plan expired by its terms on February 4, 2012. | |||||||||||||||||
In November 2003, our Board of Directors approved the adoption of the 2003 Employment Inducement Award Plan (the “2003 Plan”). The 2003 Plan reserved 2,250,000 shares of common stock solely for the granting of inducement stock options and other awards, as defined, that met the “employment inducement award” exception to the New York Stock Exchange’s listing standards requiring shareholder approval of equity-based inducement incentive plans. Except for the employment inducement award criteria, awards under the 2003 Plan were generally consistent with those made under our 1992 Plan. The Compensation Committee terminated the 2003 Plan, effective February 7, 2012. | |||||||||||||||||
On February 7, 2012 our shareholders approved the adoption of the 2012 Long-Term Incentive Plan (the “2012 Plan”). The 2012 Plan authorizes the issuance of 6,000,000 shares of our common stock. Unused shares under the 1992 Plan and the 2003 Plan will not be available for grants under the 2012 Plan. Under the terms of the 2012 Plan, the pool of shares available for issuance may be used for all types of equity awards available under the 2012 Plan, which include stock options, stock appreciation rights, restricted stock awards, stock unit awards and other stock-based awards. All employees, consultants and advisors of FICO or any subsidiary, as well as all non-employee directors will be eligible to receive awards under the 2012 Plan. As of September 30, 2013, 1,731,492 shares remained available for grants under this plan. The 2012 Plan will terminate on the tenth anniversary of its adoption by our Board of Directors. Stock option awards granted typically have a maximum term of seven years and vest ratably over four years. Stock option awards granted prior to October 1, 2005 under the 1992 Plan typically had a maximum term of ten years and vested ratably over four years. | |||||||||||||||||
Description of Employee Stock Purchase Plan | |||||||||||||||||
Under our Employee Stock Purchase Plan (“Purchase Plan”), we are authorized to issue up to 5,062,500 shares of common stock to eligible employees. Employees may have up to 10% of their base salary withheld through payroll deductions to purchase FICO common stock during semi-annual offering periods. The purchase price of the stock is 85% of the fair market value on the exercise date (the last day of each offering period). Offering period means approximately six-month periods commencing (a) on the first trading day on or after January 1 and terminating on the last trading day in the following June, and (b) on the first trading day on or after July 1 and terminating on the last trading day in the following December. The Purchase Plan was suspended effective January 1, 2009 and employees cannot contribute to the Purchase Plan until the suspension is repealed. | |||||||||||||||||
At September 30, 2013, 2,707,966 shares remained available for issuance. | |||||||||||||||||
Share-Based Compensation Expense | |||||||||||||||||
We recorded share-based compensation expense of $25.9 million, $21.2 million and $15.5 million in fiscal years 2013, 2012 and 2011, respectively. The total tax benefit related to this share-based compensation expense was $9.2 million, $7.8 million and $5.8 million in fiscal 2013, 2012 and 2011, respectively. As of September 30, 2013, there was $54.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all equity compensation plans. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average period of 2.67 years. | |||||||||||||||||
Determining Fair Value | |||||||||||||||||
We estimate the fair value of stock options granted using the Black-Scholes option valuation model and we amortize the fair value on a straight-line basis over the vesting period. We used the following assumptions to estimate the fair value of our stock options during fiscal 2013, 2012 and 2011: | |||||||||||||||||
Year Ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Options: | |||||||||||||||||
Average expected term (years) | 4.1 | 4.31 | 4.27 | ||||||||||||||
Expected volatility (range) | 35-37 | % | 38-41 | % | 39-41 | % | |||||||||||
Weighted average volatility | 37 | % | 40 | % | 40 | % | |||||||||||
Risk-free interest rate (range) | 0.5-1.1 | % | 0.5-1.5 | % | 0.6-2.1 | % | |||||||||||
Average expected dividend yield | 0.2 | % | 0.3 | % | 0.3 | % | |||||||||||
Expected dividend yield (range) | 0.2 | % | 0.2-0.3 | % | 0.3 | % | |||||||||||
Expected Volatility. We estimate the volatility of our common stock at the date of grant based on a combination of the implied volatility of publicly traded options on our common stock and our historical volatility rate. | |||||||||||||||||
Expected Term. The expected term represents the period that our stock options are expected to be outstanding. We estimate the expected term based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior. | |||||||||||||||||
Dividends. The dividend yield assumption is based on historical dividend payouts. | |||||||||||||||||
Risk-Free Interest Rate. The risk-free interest rate assumption is based on observed interest rates appropriate for the term of our employee options. | |||||||||||||||||
Forfeitures. We use historical data to estimate pre-vesting option forfeitures and record share-based compensation expense only for those awards that are expected to vest. | |||||||||||||||||
The fair value of restricted stock units granted is the fair value of our common stock on the date of grant adjusted for the expected dividend yield. We amortize the fair value on a straight-line basis over the vesting period. | |||||||||||||||||
Stock-Based Activity | |||||||||||||||||
The following table summarizes option activity during fiscal 2013: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
average | average | Intrinsic Value | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding at October 1, 2012 | 4,034 | $ | 33.01 | ||||||||||||||
Granted | 757 | 42.86 | |||||||||||||||
Exercised | (1,360 | ) | 31.79 | ||||||||||||||
Forfeited | (334 | ) | 26.03 | ||||||||||||||
Expired | (410 | ) | 44.73 | ||||||||||||||
Outstanding at September 30, 2013 | 2,687 | $ | 35.48 | 4.86 | $ | 53,203 | |||||||||||
Options exercisable at September 30, 2013 | 942 | $ | 32.57 | 3.57 | $ | 21,388 | |||||||||||
Vested and expected to vest at September 30, 2013 | 2,435 | $ | 35.03 | 4.78 | $ | 49,312 | |||||||||||
The weighted average fair value of options granted were $12.53, $12.32 and $8.02 during fiscal 2013, 2012 and 2011, respectively. The aggregate intrinsic value of options outstanding at September 30, 2013 was calculated as the difference between the exercise price of the underlying options and the market price of our common stock for all 2.7 million outstanding shares, which had exercise prices lower than the $55.28 market price of our common stock at September 30, 2013. The total intrinsic value of options exercised was $19.8 million, $31.2 million and $4.4 million during fiscal 2013, 2012 and 2011, respectively, determined as of the date of exercise. | |||||||||||||||||
The following table summarizes restricted stock unit activity during fiscal 2013: | |||||||||||||||||
Shares | Weighted- | ||||||||||||||||
average | |||||||||||||||||
Price | |||||||||||||||||
(In thousands) | |||||||||||||||||
Outstanding at October 1, 2012 | 1,732 | $ | 33.31 | ||||||||||||||
Granted | 782 | 42.59 | |||||||||||||||
Released | (603 | ) | 30.08 | ||||||||||||||
Forfeited | (195 | ) | 34.57 | ||||||||||||||
Outstanding at September 30, 2013 | 1,716 | 38.54 | |||||||||||||||
The weighted average fair value of restricted stock units granted were $42.27, $37.8 and $24.38 during fiscal 2013, 2012 and 2011, respectively. The total intrinsic value of restricted stock units that vested was $26.7 million, $15.5 million and $9.7 million during fiscal 2013, 2012 and 2011, respectively, determined as of the date of vesting. | |||||||||||||||||
In fiscal 2013 we received $30.3 million in cash from stock option exercises, with the tax benefit realized for the tax deductions from these exercises of $6.8 million. | |||||||||||||||||
Due primarily to our ongoing program of repurchasing shares on the open market, we had approximately 54.1 million treasury shares at September 30, 2013. We satisfy stock option exercises, Purchase Plan issuances and vesting of restricted stock units from this pool of treasury shares. |
Earnings_Per_Share
Earnings Per Share | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Earnings Per Share | ' | ||||||||||||
15. Earnings Per Share | |||||||||||||
The following table reconciles the numerators and denominators of basic and diluted earnings per share (“EPS”) during fiscal 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator for basic and diluted earnings per share — net income | $ | 90,095 | $ | 92,004 | $ | 71,562 | |||||||
Denominator — share: | |||||||||||||
Basic weighted-average shares | 35,332 | 34,909 | 39,359 | ||||||||||
Effect of dilutive securities | 960 | 1,154 | 629 | ||||||||||
Diluted weighted-average shares | 36,292 | 36,063 | 39,988 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 2.55 | $ | 2.64 | $ | 1.82 | |||||||
Diluted | $ | 2.48 | $ | 2.55 | $ | 1.79 | |||||||
The computation of diluted EPS excludes options to purchase approximately 111,000, 1,420,000, and 3,598,000 shares of common stock for fiscal 2013, 2012 and 2011, respectively, because the options’ exercise prices exceeded the average market price of our common stock in these fiscal years and their inclusion would be antidilutive. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Sep. 30, 2013 | |
Related Party Transactions | ' |
16. Related Party Transactions | |
We have a $10 million investment in convertible preferred stock of a private company. The company is developing a range of products focused on revenue cycle activities for hospitals and healthcare providers. Related party revenue was immaterial for the years ended September 30, 2013, 2012 and 2011. The accounts receivable balance from this company was not significant as of September 30, 2013 and 2012. |
Segment_Information
Segment Information | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||||||
17. Segment Information | |||||||||||||||||||||||||
We are organized into the following three reportable segments to align with internal management of our worldwide business operations based on product offerings. | |||||||||||||||||||||||||
• | Applications. Our Applications products are pre-configured Decision Management applications and associated professional services, designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud and insurance claims management. | ||||||||||||||||||||||||
• | Scores. This segment includes our business-to-business scoring solutions, our myFICO® solutions for consumers and associated professional services. Our scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly. | ||||||||||||||||||||||||
• | Tools. The Tools segment is composed of software tools and associated professional services that clients can use to create their own custom Decision Management applications. | ||||||||||||||||||||||||
Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate share-based compensation expense, restructuring and acquisition-related expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above. | |||||||||||||||||||||||||
The following tables summarize segment information for fiscal 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended September 30, 2013 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 306,738 | $ | 175,281 | $ | 32,285 | $ | — | $ | 514,304 | |||||||||||||||
Professional services | 110,081 | 4,012 | 21,101 | — | 135,194 | ||||||||||||||||||||
License | 59,265 | 1,520 | 33,161 | — | 93,946 | ||||||||||||||||||||
Total segment revenues | 476,084 | 180,813 | 86,547 | — | 743,444 | ||||||||||||||||||||
Segment operating expense | (346,222 | ) | (51,781 | ) | (70,011 | ) | (70,966 | ) | (538,980 | ) | |||||||||||||||
Segment operating income | $ | 129,862 | $ | 129,032 | $ | 16,536 | $ | (70,966 | ) | 204,464 | |||||||||||||||
Unallocated share-based compensation expense | (25,850 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (13,535 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,486 | ) | |||||||||||||||||||||||
Operating income | 161,593 | ||||||||||||||||||||||||
Unallocated interest income | 54 | ||||||||||||||||||||||||
Unallocated interest expense | (30,281 | ) | |||||||||||||||||||||||
Unallocated other expense, net | 618 | ||||||||||||||||||||||||
Income before income taxes | $ | 131,984 | |||||||||||||||||||||||
Depreciation expense | $ | 14,171 | $ | 867 | $ | 1,998 | $ | 2,643 | $ | 19,679 | |||||||||||||||
Year Ended September 30, 2012 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 263,726 | $ | 172,218 | $ | 30,231 | $ | — | $ | 466,175 | |||||||||||||||
Professional services | 104,637 | 2,382 | 17,952 | — | 124,971 | ||||||||||||||||||||
License | 56,241 | 1,023 | 28,013 | — | 85,277 | ||||||||||||||||||||
Total segment revenues | 424,604 | 175,623 | 76,196 | — | 676,423 | ||||||||||||||||||||
Segment operating expense | (291,778 | ) | (52,687 | ) | (58,597 | ) | (71,705 | ) | (474,767 | ) | |||||||||||||||
Segment operating income | $ | 132,826 | $ | 122,936 | $ | 17,599 | $ | (71,705 | ) | 201,656 | |||||||||||||||
Unallocated share-based compensation expense | (21,229 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (6,944 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (5,125 | ) | |||||||||||||||||||||||
Operating income | 168,358 | ||||||||||||||||||||||||
Unallocated interest income | 317 | ||||||||||||||||||||||||
Unallocated interest expense | (31,734 | ) | |||||||||||||||||||||||
Unallocated other expense, net | (698 | ) | |||||||||||||||||||||||
Income before income taxes | $ | 136,243 | |||||||||||||||||||||||
Depreciation expense | $ | 11,321 | $ | 724 | $ | 1,258 | $ | 1,302 | $ | 14,605 | |||||||||||||||
Year Ended September 30, 2011 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 258,736 | $ | 164,918 | $ | 29,776 | $ | — | $ | 453,430 | |||||||||||||||
Professional services | 100,921 | 2,102 | 12,918 | — | 115,941 | ||||||||||||||||||||
License | 23,371 | 1,547 | 25,394 | — | 50,312 | ||||||||||||||||||||
Total segment revenues | 383,028 | 168,567 | 68,088 | — | 619,683 | ||||||||||||||||||||
Segment operating expense | (276,467 | ) | (55,169 | ) | (54,398 | ) | (70,680 | ) | (456,714 | ) | |||||||||||||||
Segment operating income | $ | 106,561 | $ | 113,398 | $ | 13,690 | $ | (70,680 | ) | 162,969 | |||||||||||||||
Unallocated share-based compensation expense | (15,500 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (7,741 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (12,391 | ) | |||||||||||||||||||||||
Operating income | 127,337 | ||||||||||||||||||||||||
Unallocated interest income | 2,192 | ||||||||||||||||||||||||
Unallocated interest expense | (32,364 | ) | |||||||||||||||||||||||
Unallocated other income, net | 290 | ||||||||||||||||||||||||
Income before income taxes | $ | 97,455 | |||||||||||||||||||||||
Depreciation expense | $ | 12,784 | $ | 1,007 | $ | 1,667 | $ | 998 | $ | 16,456 | |||||||||||||||
Our revenues and percentage of revenues by reportable market segments were as follows for fiscal 2013, 2012 and 2011, the majority of which were derived from the sale of products and services within the banking (including consumer credit) industry: | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Applications | $ | 476,084 | 64 | % | $ | 424,604 | 63 | % | $ | 383,028 | 62 | % | |||||||||||||
Scores | 180,813 | 24 | % | 175,623 | 26 | % | 168,567 | 27 | % | ||||||||||||||||
Tools | 86,547 | 12 | % | 76,196 | 11 | % | 68,088 | 11 | % | ||||||||||||||||
Total | $ | 743,444 | 100 | % | $ | 676,423 | 100 | % | $ | 619,683 | 100 | % | |||||||||||||
Within our Applications segment our fraud solutions accounted for 22%, 25% and 23% of total revenues in each of fiscal 2013, 2012 and 2011, respectively; our customer management solutions accounted for 11%, 13% and 13% of total revenues, in each of these periods, respectively; and our collections & recovery solutions accounted for 9%, 8% and 8% for each of these periods, respectively. | |||||||||||||||||||||||||
Our revenues and percentage of revenues on a geographical basis are summarized below for fiscal 2013, 2012 and 2011. | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
United States | $ | 449,437 | 60 | % | $ | 410,178 | 61 | % | $ | 389,676 | 63 | % | |||||||||||||
United Kingdom | 79,238 | 11 | % | 66,964 | 10 | % | 58,941 | 9 | % | ||||||||||||||||
Other countries | 214,769 | 29 | % | 199,281 | 29 | % | 171,066 | 28 | % | ||||||||||||||||
Total | $ | 743,444 | 100 | % | $ | 676,423 | 100 | % | $ | 619,683 | 100 | % | |||||||||||||
During fiscal 2013, 2012 and 2011, no individual customer accounted for 10% or more of our total revenues; however, we derive a substantial portion of revenues from our contracts with the three major credit reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 16%, 18% and 18% of our total revenues in fiscal 2013, 2012 and 2011, respectively. At September 30, 2013 and 2012, no individual customer accounted for 10% or more of total consolidated receivables. | |||||||||||||||||||||||||
Our property and equipment, net, on a geographical basis are summarized below at September 30, 2013 and 2012. At September 30, 2013 and 2012, no individual country outside of the United States accounted for 10% or more of total consolidated net property and equipment. | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
United States | $ | 39,737 | 88 | % | $ | 35,571 | 87 | % | |||||||||||||||||
International | 5,418 | 12 | % | 5,509 | 13 | % | |||||||||||||||||||
Total | $ | 45,155 | 100 | % | $ | 41,080 | 100 | % | |||||||||||||||||
Commitments
Commitments | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Commitments | ' | ||||
18. Commitments | |||||
Minimum future commitments under non-cancelable operating leases and other obligations were as follows at September 30, 2013: | |||||
Year Ended September 30, | Future | ||||
Minimum | |||||
Lease | |||||
Commitments | |||||
(In thousands) | |||||
2014 | $ | 24,676 | |||
2015 | 19,173 | ||||
2016 | 16,267 | ||||
2017 | 12,628 | ||||
2018 | 11,104 | ||||
Thereafter | 21,350 | ||||
Total | $ | 105,198 | |||
Lease Commitments | |||||
The above amounts have contractual sublease commitments totaling $1.1 million in fiscal 2014. We occupy the majority of our facilities under non-cancelable operating leases with lease terms in excess of one year. Such facility leases generally provide for annual increases based upon the Consumer Price Index or fixed increments. Rent expense under operating leases, including month-to-month leases, totaled $22.1 million, $21.3 million and $21.1 million during fiscal 2013, 2012 and 2011, respectively. | |||||
Other Commitments | |||||
In the ordinary course of business, we enter into contractual purchase obligations and other agreements that are legally binding and specify certain minimum payment terms. | |||||
We are also a party to a management agreement with 25 of our executives providing for certain payments and other benefits in the event of a qualified change in control of FICO, coupled with a termination of the officer during the following year. |
Contingencies
Contingencies | 12 Months Ended |
Sep. 30, 2013 | |
Contingencies | ' |
19. 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. |
Guarantees
Guarantees | 12 Months Ended |
Sep. 30, 2013 | |
Guarantees | ' |
20. Guarantees | |
In the ordinary course of business, we are not subject to potential obligations under guarantees, except for standard indemnification and warranty provisions that are contained within many of our customer license and service agreements and certain supplier agreements, including underwriter agreements, as well as standard indemnification agreements that we have executed with certain of our officers and directors, and give rise only to the disclosure in the consolidated financial statements. In addition, we continue to monitor the conditions that are subject to the guarantees and indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses under the guarantees and indemnifications when those losses are estimable. | |
Indemnification and warranty provisions contained within our customer license and service agreements and certain supplier agreements are generally consistent with those prevalent in our industry. The duration of our product warranties generally does not exceed 90 days following delivery of our products. We have not incurred significant obligations under customer indemnification or warranty provisions historically and do not expect to incur significant obligations in the future. Accordingly, we do not maintain accruals for potential customer indemnification or warranty-related obligations. The indemnification agreements that we have executed with certain of our officers and directors would require us to indemnify such officers and directors in certain instances. We have not incurred obligations under these indemnification agreements historically and do not expect to incur significant obligations in the future. Accordingly, we do not maintain accruals for potential officer or director indemnification obligations. The maximum potential amount of future payments that we could be required to make under the indemnification provisions in our customer license and service agreements, and officer and director agreements is unlimited. |
Supplementary_Financial_Data_U
Supplementary Financial Data (Unaudited) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Supplementary Financial Data (Unaudited) | ' | ||||||||||||||||
21. Supplementary Financial Data (Unaudited) | |||||||||||||||||
The following table presents selected unaudited consolidated financial results for each of the eight quarters in the two-year period ended September 30, 2013. In the opinion of management, this unaudited information has been prepared on the same basis as the audited information and includes all adjustments (consisting of only normal recurring adjustments, except as noted below) necessary for a fair statement of the consolidated financial information for the period presented. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2012 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 190,327 | $ | 183,772 | $ | 179,325 | $ | 190,020 | |||||||||
Cost of revenues (2) | 56,809 | 57,655 | 58,856 | 56,148 | |||||||||||||
Gross profit | 133,518 | 126,117 | 120,469 | 133,872 | |||||||||||||
Net income | $ | 28,557 | $ | 19,622 | $ | 18,495 | $ | 23,421 | |||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 0.81 | $ | 0.55 | $ | 0.52 | $ | 0.67 | |||||||||
Diluted | $ | 0.79 | $ | 0.54 | $ | 0.51 | $ | 0.65 | |||||||||
Shares used in computing earnings per share: | |||||||||||||||||
Basic | 35,132 | 35,499 | 35,664 | 35,043 | |||||||||||||
Diluted | 36,151 | 36,385 | 36,492 | 36,151 | |||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2011 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 186,075 | $ | 160,478 | $ | 159,521 | $ | 170,349 | |||||||||
Cost of revenues (2) | 55,327 | 47,832 | 48,814 | 45,974 | |||||||||||||
Gross profit | 130,748 | 112,646 | 110,707 | 124,375 | |||||||||||||
Net income | $ | 21,246 | $ | 20,749 | $ | 20,012 | $ | 29,997 | |||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 0.62 | $ | 0.61 | $ | 0.57 | $ | 0.83 | |||||||||
Diluted | $ | 0.6 | $ | 0.59 | $ | 0.55 | $ | 0.81 | |||||||||
Shares used in computing earnings per share: | |||||||||||||||||
Basic | 34,262 | 34,004 | 35,331 | 36,034 | |||||||||||||
Diluted | 35,513 | 35,293 | 36,552 | 36,887 | |||||||||||||
-1 | Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the totals for the respective years. | ||||||||||||||||
-2 | Cost of revenues excludes amortization expense of $1.7 million, $1.7 million, $1.7 million, $1.5 million, $0.5 million, $0.1 million, $0.1 million and $0.6 million for the quarters ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively. |
Nature_of_Business_and_Summary1
Nature of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | ||
Sep. 30, 2013 | |||
Principles of Consolidation and Basis of Presentation | ' | ||
Principles of Consolidation and Basis of Presentation | |||
The 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 | |||
The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Significant items subject to such estimates and assumptions include, but are not limited to: revenue recognition; recoverability of accounts receivable; valuation of goodwill and intangible assets, including impairment assessment; valuation of share-based compensation; and realizability of deferred tax assets. | |||
Cash and Cash Equivalents | ' | ||
Cash and Cash Equivalents | |||
Cash and cash equivalents consist of cash in banks and investments with an original maturity of 90 days or less at time of purchase. | |||
Fair Value of Financial Instruments | ' | ||
Fair Value of Financial Instruments | |||
The fair value of certain of our financial instruments, including cash and cash equivalents, receivables, other current assets, accounts payable, accrued compensation and employee benefits, other accrued liabilities and amounts outstanding under our revolving line of credit, approximate their carrying amounts because of the short-term maturity of these instruments. The fair values of our cash and cash equivalents and marketable security investments are disclosed in Note 4. The fair value of our derivative instruments is disclosed in Note 5. The fair value of our Senior Notes is disclosed in Note 10. | |||
Investments | ' | ||
Investments | |||
Management determines the appropriate classification of our investments in marketable debt and equity securities at the time of purchase, and re-evaluates this designation at each balance sheet date. While it is our intent to hold debt securities to maturity, our investments in U.S. government obligations and marketable equity and debt securities that have readily determinable fair values are classified as available-for-sale, as the sale of such securities may be required prior to maturity to implement management strategies. Therefore, such securities are carried at fair value with unrealized gains or losses related to these securities included in accumulated other comprehensive income (loss). The fair value of marketable securities is based upon inputs including quoted prices for identical or similar assets. Realized gains and losses are included in other income (expense), net on the consolidated statements of income and comprehensive income. The cost of investments sold is based on the specific identification method. Losses resulting from other than temporary declines in fair value are charged to operations. Investments with remaining maturities over one year are classified as long-term investments. | |||
Our investments in equity securities of companies over which we do not have significant influence are accounted for under the cost method. The investment is originally recorded at cost and adjusted for additional contributions or distributions. Management periodically reviews cost-method investments for instances where fair value is less than the carrying amount and the decline in value is determined to be other than temporary. If the decline in value is judged to be other than temporary, the carrying amount of the security is written down to fair value and the resulting loss is charged to operations. We currently do not have investments in which we own 20% to 50% and exercise significant influence over operating and financial policies, therefore we do not account for any investment under the equity method. | |||
Concentration of Risk | ' | ||
Concentration of Risk | |||
Financial instruments that potentially expose us to concentrations of risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable, which are generally not collateralized. Our policy is to place our cash, cash equivalents, and marketable securities with high quality financial institutions, commercial corporations and government agencies in order to limit the amount of credit exposure. We have established guidelines relative to diversification and maturities for maintaining safety and liquidity. We generally do not require collateral from our customers, but our credit extension and collection policies include analyzing the financial condition of potential customers, establishing credit limits, monitoring payments, and aggressively pursuing delinquent accounts. We maintain allowances for potential credit losses. | |||
A significant portion of our revenues are derived from the sales of products and services to the consumer credit and banking industries. | |||
Property and Equipment | ' | ||
Property and Equipment | |||
Property and equipment are recorded at cost less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while repair and maintenance costs are expensed as incurred. Depreciation and amortization charges are calculated using the straight-line method over the following estimated useful lives: | |||
Estimated Useful Life | |||
Data processing equipment and software | 3 years | ||
Office furniture and equipment | 3 to 7 years | ||
Leasehold improvements | Shorter of estimated | ||
useful life or lease term | |||
The cost and accumulated depreciation for property and equipment sold, retired or otherwise disposed of are removed from the applicable accounts and resulting gains or losses are recorded in our consolidated statements of income and comprehensive income. Depreciation and amortization on property and equipment totaled $19.7 million, $14.6 million and $16.5 million during fiscal 2013, 2012 and 2011, respectively. | |||
Internal-use Software | ' | ||
Internal-use Software | |||
Costs incurred to develop internal-use software during the application development stage are capitalized and reported at cost. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized costs are amortized using the straight-line method over two to three years. Software development costs required to be capitalized for internal-use software have not been material to date. | |||
Capitalized Software and Research and Development Costs | ' | ||
Capitalized Software and Research and Development Costs | |||
Software development costs relating to products to be sold in the normal course of business are expensed as incurred as research and development costs until technological feasibility is established. Technological feasibility for our products occurs approximately concurrently with the general release of our products; accordingly, we have not capitalized any development or production costs. Costs we incur to maintain and support our existing products after the general release of the product are expensed in the period they are incurred and included in research and development costs in our consolidated statements of income and comprehensive income. | |||
Goodwill and Intangible Assets | ' | ||
Goodwill and Intangible Assets | |||
Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with our business combinations. We test goodwill for impairment at the reporting unit level at least annually during the fourth quarter of each fiscal year and more frequently if impairment indicators are identified. We have determined that our reporting units are the same as our reportable segments. The first step of the goodwill impairment test is a comparison of the fair value of a reporting unit to its carrying value. We estimate the fair values of our reporting units using discounted cash flow valuation models and by comparing our reporting units to guideline publicly-traded companies. These methods require estimates of our future revenues, profits, capital expenditures, working capital, and other relevant factors, as well as selecting appropriate guideline publicly-traded companies for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans, industry data, and other relevant factors. We performed our annual goodwill impairment tests as of July 1, 2013 and 2012, and determined our goodwill was not impaired. | |||
Finite-lived intangible assets are tested for impairment if impairment indicators arise. We amortize our finite-lived intangible assets which result from our acquisitions over the following estimated useful lives: | |||
Estimated Useful Life | |||
Completed technology | 4 to 10 years | ||
Customer contracts and relationships | 5 to 15 years | ||
Trade names | 1 to 5 years | ||
Revenue Recognition | ' | ||
Revenue Recognition | |||
Software Licenses | |||
Software license fee revenue is recognized when persuasive evidence of an arrangement exists, software is made available to our customers, the fee is fixed or determinable and collection is probable. The determination of whether fees are fixed or determinable and collection is probable involves the use of judgment. If at the outset of an arrangement we determine that the arrangement fee is not fixed or determinable, revenue is deferred until the arrangement fee becomes fixed or determinable, assuming all other revenue recognition criteria have been met. If at the outset of an arrangement we determine that collectability is not probable, revenue is deferred until the earlier of when collectability becomes probable or the receipt of payment. If there is uncertainty as to the customer’s acceptance of our deliverables, revenue is not recognized until the earlier of receipt of customer acceptance, expiration of the acceptance period, or when we can demonstrate we meet the acceptance criteria. We evaluate contract terms and customer information to ensure that these criteria are met prior to our recognition of license fee revenue. | |||
We use the residual method to recognize revenue when a software arrangement includes one or more elements to be delivered at a future date provided the following criteria are met: (i) vendor-specific objective evidence (“VSOE”) of the fair value does not exist for one or more of the delivered items but exists for all undelivered elements, (ii) all other applicable revenue recognition criteria are met and (iii) the fair value of all of the undelivered elements is less than the arrangement fee. VSOE of fair value is based on the normal pricing practices for those products and services when sold separately by us and customer renewal rates for post-contract customer support services. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. If evidence of the fair value of one or more undelivered elements does not exist, the revenue is deferred and recognized when delivery of those elements occurs or when fair value can be established. Changes to the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and change to a product’s estimated life cycle could materially impact the amount of earned and unearned revenue. | |||
Revenues from post-contract customer support services, such as software maintenance, are recognized on a straight-line basis over the term of the support period. The majority of our software maintenance agreements provide technical support as well as unspecified software product upgrades and releases when and if made available by us during the term of the support period. | |||
Transactional-based Revenues | |||
Transactional-based revenue is recognized when persuasive evidence of an arrangement exists, fees are fixed or determinable, and collection is reasonably assured. Revenues from our credit scoring, data processing, data management and internet delivery services are recognized as these services are performed. Revenues from transactional or unit-based license fees under software license arrangements, network service and internally-hosted software agreements are recognized based on minimum contractual amounts or on system usage that exceeds minimum contractual amounts. Certain of our transactional-based revenues are based on transaction or active account volumes as reported by our clients. In instances where volumes are reported to us in arrears, we estimate volumes based on preliminary customer transaction information or average actual reported volumes for an immediate trailing period. Differences between our estimates and actual final volumes reported are recorded in the period in which actual volumes are reported. We have not experienced significant variances between our estimates and actual reported volumes in the past and anticipate that we will be able to continue to make reasonable estimates in the future. If for some reason we were unable to reasonably estimate transaction volumes in the future, revenue may be deferred until actual customer data is received, and this could have a material impact on our consolidated results of operations. | |||
Consulting Services | |||
We provide consulting, training, model development and software integration services under both hourly-based time and materials and fixed-priced contracts. Revenues from these services are generally recognized as the services are performed. For fixed-price service contracts, we use a proportionate performance model with hours as the input method of attribution to determine progress towards completion, with consideration also given to output measures, such as contract milestones, when applicable. In such instances, management is required to estimate the total estimated hours of the project. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues and profits are subject to revisions as the contract progresses to completion. Estimated losses, if any, are recorded in the period in which current estimates of total contract revenue and contract costs indicate a loss. If substantive uncertainty related to customer acceptance of services exists, we defer the associated revenue until the contract is completed. We have not experienced significant variances between our estimates and actual hours in the past and anticipate that we will be able to continue to make reasonable estimates in the future. If for some reason we are unable to accurately estimate the input measures, revenue would be deferred until the contract is complete, and this could have a material impact on our consolidated results of operations. | |||
Services that are sold in connection with software license arrangements generally qualify for separate accounting from the license element because they do not involve significant production, modification or customization of our products and are not otherwise considered to be essential to the functionality of our software. In arrangements where the professional services do not qualify for separate accounting from the license element, the combined software license and professional services revenue are recognized based on contract accounting using either the percentage-of-completion or completed-contract method. | |||
Hosting Services | |||
We are an application service provider (“ASP”), where we provide hosting services that allow customers access to software that resides on our servers. The ASP model typically includes an up-front fee and a monthly commitment from the customer that commences upon completion of the implementation through the remainder of the customer life. The up-front fee is the initial setup fee, or the implementation fee. The monthly commitment includes, but is not limited to, a fixed monthly fee or a transactional fee based on system usage that exceeds monthly minimums. Revenue is recognized from ASP transactions when there is persuasive evidence of an arrangement, the service has been provided to the customer, the amount of fees is fixed or determinable and the collection of the Company’s fees is probable. We do not view the activities of signing the contract or providing initial setup services as discrete earnings events. Revenue is typically deferred until the date the customer commences use of our services, at which point the up-front fees are recognized ratably over the expected life of the customer relationship. ASP transactional fees are recorded monthly as earned. | |||
Multiple-Deliverable Arrangements including Non-Software | |||
When we enter into a multiple-deliverable arrangement that includes non-software, each deliverable is accounted for as a separate unit of accounting if the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We consider a deliverable to have standalone value if we sell this item separately or if the item is sold by another vendor or could be resold by the customer. Further, our revenue arrangements generally do not include a general right of return relative to delivered products. Revenue for multiple element arrangements is allocated to the software and non-software deliverables based on a relative selling price. We use VSOE in our allocation of arrangement consideration when it is available. We define VSOE as a median price of recent standalone transactions that are priced within a narrow range, as defined by us. If a product or service is seldom sold separately, it is unlikely that we can determine VSOE. In circumstances when VSOE does not exist, we then assess whether we can obtain third-party evidence (“TPE”) of the selling price. It may be difficult for us to obtain sufficient information on competitor pricing to substantiate TPE and therefore we may not always be able to use TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling price (“ESP”) in our allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact if the product or service were sold by us on a standalone basis. Our determination of ESP involves weighting several factors based on the specific facts and circumstances of each arrangement. The factors include, but are not limited to, geographies, market conditions, gross margin objectives, pricing practices and controls, customer segment pricing strategies and the product lifecycle. | |||
Gross vs. Net Revenue Reporting | |||
We apply accounting guidance to determine whether we report revenue for certain transactions based upon the gross amount billed to the customer, or the net amount retained by us. In accordance with the guidance we record revenue on a gross basis for sales in which we have acted as the principal and on a net basis for those sales in which we have in substance acted as an agent or broker in the transaction. | |||
Business Combinations | ' | ||
Business Combinations | |||
Accounting for our acquisitions requires us to recognize, separately from goodwill, the assets acquired and the liabilities assumed at their acquisition date fair values. Goodwill as of the acquisition date is measured as the excess of consideration transferred and the net of the acquisition date fair values of the assets acquired and the liabilities assumed. While we use our best estimates and assumptions to accurately value assets acquired and liabilities assumed at the acquisition date, our estimates are inherently uncertain and subject to refinement. As a result, during the measurement period, which may be up to one year from the acquisition date, we record adjustments to the assets acquired and liabilities assumed with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to our consolidated statements of income and comprehensive income. | |||
Accounting for business combinations requires our management to make significant estimates and assumptions, especially at the acquisition date including our estimates for intangible assets, contractual obligations assumed, pre-acquisition contingencies and contingent consideration, where applicable. If we cannot reasonably determine the fair value of a pre-acquisition contingency (non-income tax related) by the end of the measurement period, we will recognize an asset or a liability for such pre-acquisition contingency if: (i) it is probable that an asset existed or a liability had been incurred at the acquisition date and (ii) the amount of the asset or liability can be reasonably estimated. Although we believe the assumptions and estimates we have made in the past have been reasonable and appropriate, they are based in part on historical experience and information obtained from the management of the acquired companies and are inherently uncertain. Subsequent to the measurement period, changes in our estimates of such contingencies will affect earnings and could have a material effect on our results of operations and financial position. | |||
Examples of critical estimates in valuing certain of the intangible assets we have acquired include but are not limited to: (i) future expected cash flows from software license sales, support agreements, consulting contracts, other customer contracts and acquired developed technologies and patents; (ii) expected costs to develop the in-process research and development into commercially viable products and estimated cash flows from the projects when completed, and; (iii) the acquired company’s brand and competitive position, as well as assumptions about the period of time the acquired brand will continue to be used in the combined company’s product portfolio. Unanticipated events and circumstances may occur that may affect the accuracy or validity of such assumptions, estimates or actual results. | |||
In addition, uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. We reevaluate these items quarterly based upon facts and circumstances that existed as of the acquisition date with any adjustments to our preliminary estimates being recorded to goodwill provided that we are within the measurement period. Subsequent to the measurement period or our final determination of the tax allowance’s or contingency’s estimated value, whichever comes first, changes to these uncertain tax positions and tax related valuation allowances will affect our provision for income taxes in our consolidated statements of income and comprehensive income and could have a material impact on our results of operations and financial position. | |||
Income Taxes | ' | ||
Income Taxes | |||
We estimate our income taxes based on the various jurisdictions where we conduct business, which involves significant judgment in determining our income tax provision. We estimate our current tax liability using currently enacted tax rates and laws and assess temporary differences that result from differing treatments of certain items for tax and accounting purposes. These differences result in deferred tax assets and liabilities recorded on our balance sheet using the currently enacted tax rates and laws that will apply to taxable income for the years in which those tax assets are expected to be realized or settled. We then assess the likelihood our deferred tax assets will be realized and to the extent we believe realization is not likely, we establish a valuation allowance. When we establish a valuation allowance or increase this allowance in an accounting period, we record a corresponding income tax expense in our consolidated statements of income and comprehensive income. In assessing the need for the valuation allowance, we consider future taxable income in the jurisdictions we operate; an analysis of our deferred tax assets and the periods over which they will be realizable; and ongoing prudent and feasible tax planning strategies. An increase in the valuation allowance would have an adverse impact, which could be material, on our income tax provision and net income in the period in which we record the increase. | |||
We recognize and measure benefits for uncertain tax positions using a two-step approach. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the technical merits of the tax position indicate it is more likely than not that the tax position will be sustained upon audit, including resolution of any related appeals or litigation processes. For tax positions more likely than not of being sustained upon audit, the second step is to measure the tax benefit as the largest amount more than 50% likely of being realized upon settlement. Significant judgment is required to evaluate uncertain tax positions and they are evaluated on a quarterly basis. Our evaluations are based upon a number of factors, including changes in facts or circumstances, changes in tax law, correspondence with tax authorities during the course of audits and effective settlement of audit issues. Changes in the recognition or measurement of uncertain tax positions could result in material increases or decreases in our income tax expense in the period in which we make the change, which could have a material impact on our effective tax rate and operating results. | |||
A description of our accounting policies associated with tax-related contingencies and valuation allowances assumed as part of a business combination is provided under “Business Combinations” above. | |||
Earnings per Share | ' | ||
Earnings per Share | |||
Basic earnings per share are computed on the basis of the weighted-average number of common shares outstanding during the period under measurement. Diluted earnings per share are based on the weighted-average number of common shares outstanding and potential common shares. Potential common shares result from the assumed exercise of outstanding stock options or other potentially dilutive equity instruments, when they are dilutive under the treasury stock method. | |||
Comprehensive Income | ' | ||
Comprehensive Income | |||
Comprehensive income is the change in our equity (net assets) during each period from transactions and other events and circumstances from non-owner sources. It includes net income, foreign currency translation adjustments and unrealized gains and losses on our investments in marketable securities, net of tax. | |||
Foreign Currency and Derivative Financial Instruments | ' | ||
Foreign Currency and Derivative Financial Instruments | |||
We have determined that the functional currency of each foreign operation is the local currency. Assets and liabilities denominated in their local foreign currencies are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates of exchange prevailing during the period. Foreign currency translation adjustments are accumulated as a separate component of consolidated stockholders’ equity. | |||
We utilize derivative instruments to manage market risks associated with fluctuations in certain foreign currency exchange rates as they relate to specific balances of accounts receivable and cash denominated in foreign currencies. We principally utilize foreign currency forward contracts to protect against market risks arising in the normal course of business. Our policies prohibit the use of derivative instruments for the sole purpose of trading for profit on price fluctuations or to enter into contracts that intentionally increase our underlying exposure. All of our forward foreign currency contracts have maturity periods of less than three months. | |||
At the end of the reporting period, foreign currency denominated assets and liabilities are remeasured into the functional currencies of the reporting entities at current market rates. The change in value from this remeasurement is reported as a foreign exchange gain or loss for that period in other income (expense), net in the accompanying consolidated statements of income and comprehensive income. We recorded transactional foreign currency exchange losses of $0.8 million, $1.5 million and $1.0 million during fiscal 2013, 2012 and 2011, respectively. | |||
Share-Based Compensation | ' | ||
Share-Based Compensation | |||
We account for share-based compensation using the fair value recognition provisions as required in the accounting literature. We estimate the fair value of options granted using the Black-Scholes option valuation model. We estimate the volatility of our common stock at the date of grant based on a combination of the implied volatility of publicly traded options on our common stock and our historical volatility rate. We estimate the expected term of options granted based on historical exercise patterns. The dividend yield assumption is based on historical dividend payouts. The risk-free interest rate assumption is based on observed interest rates appropriate for the term of our employee options. We use historical data to estimate pre-vesting option forfeitures and record share-based compensation expense only for those awards that are expected to vest. For options granted, we amortize the fair value on a straight-line basis. All options are amortized over the requisite service periods of the awards, which are generally the vesting periods. If factors change we may decide to use different assumptions under the Black-Scholes option valuation model in the future, which could materially affect our share-based compensation expense, net income and earnings per share. See Note 14 for further discussion of our share-based employee benefit plans. | |||
Impairment of Long-Lived Assets | ' | ||
Impairment of Long-Lived Assets | |||
We assess potential impairment of long-lived assets and certain identifiable intangible assets with finite lives whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows that are expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured as the amount by which the carrying amount of the assets exceeds the fair value of the assets. We determined that our long-lived assets were not impaired at September 30, 2013 and 2012. | |||
Advertising and Promotion Costs | ' | ||
Advertising and Promotion Costs | |||
Advertising and promotion costs are expensed as incurred and are included in selling, general and administrative expenses in the accompanying consolidated statements of income and comprehensive income. Advertising and promotion costs totaled $2.5 million, $1.8 million and $1.0 million in fiscal 2013, 2012 and 2011, respectively. | |||
New Accounting Pronouncements Recently Issued or Adopted | ' | ||
New Accounting Pronouncements Recently Issued or Adopted | |||
In December 2011, the Financial Accounting Standards Board (FASB) issued ASU No. 2011-11, “Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities.” (ASU 2011-11). ASU 2011-11 provides for additional disclosures of both gross information and net information about both instruments and transactions eligible for offset in the statement of financial position and instruments and transactions subject to an agreement similar to a master netting arrangement. In January 2013, the FASB issued ASU No. 2013-01, “Balance Sheet (Topic 210): Clarifying the Scope of Disclosures about Offsetting Assets and Liabilities.” (ASU 2013-01). ASU 2013-01 clarifies that ordinary trade receivables and payables are not in the scope of ASU 2011-11. Specifically, ASU 2011-11 applies only to derivatives, repurchase agreements and reverse purchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with specific criteria contained in the FASB Accounting Standards Codification™ or subject to a master netting arrangement or similar agreement. Both ASU 2013-01 and ASU 2011-11 are effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013, which means that they will be effective for our fiscal year beginning October 1, 2013. Retrospective adoption is required. We do not believe that adoption of ASU 2013-01 or ASU 2011-11 will have a significant impact on our consolidated financial statements. | |||
In February 2013, the FASB issued ASU No. 2013-02, “Comprehensive Income (Topic 220): Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income.” (ASU 2013-02). ASU 2013-02 requires reporting entities to provide information about the amounts reclassified from accumulated other comprehensive income by component. In addition, reporting entities will be required to present, either on the face of the statement of income and comprehensive income or in the footnotes to the financial statements, significant amounts reclassified from accumulated other comprehensive income by statements of income and comprehensive income line item. ASU 2013-02 is effective for fiscal years, and interim periods within those years, beginning on or after December 15, 2012, which means that it will be effective for our fiscal year beginning October 1, 2013. Early adoption is permitted. We do not believe that adoption of ASU 2013-02 will have a significant impact on our consolidated financial statements. | |||
In July 2013, the FASB issued ASU No. 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” (ASU 2013-11). ASU 2013-11 provides guidance for presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit. ASU 2013-11 provides that a benefit should be presented in the financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward, except as follows. To the extent a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position or the tax law of the applicable jurisdiction does not require the entity to use, and the entity does not intend to use, the deferred tax asset for such purpose, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years and interim periods within those years, beginning on or after December 15, 2013, which means it will be effective for our fiscal year beginning October 1, 2014. We do not believe that adoption of ASU 2013-11 will have a significant impact on our consolidated financial statements. |
Nature_of_Business_and_Summary2
Nature of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended | ||
Sep. 30, 2013 | |||
Estimated Useful Life of Property and Equipment | ' | ||
Depreciation and amortization charges are calculated using the straight-line method over the following estimated useful lives: | |||
Estimated Useful Life | |||
Data processing equipment and software | 3 years | ||
Office furniture and equipment | 3 to 7 years | ||
Leasehold improvements | Shorter of estimated | ||
useful life or lease term | |||
Estimated Useful Life of Definite-Lived Intangible Assets | ' | ||
We amortize our finite-lived intangible assets which result from our acquisitions over the following estimated useful lives: | |||
Estimated Useful Life | |||
Completed technology | 4 to 10 years | ||
Customer contracts and relationships | 5 to 15 years | ||
Trade names | 1 to 5 years |
Business_Combinations_Tables
Business Combinations (Tables) (CR Software, LLC) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
CR Software, LLC | ' | ||||
Consideration Paid and Amounts for Assets Acquired and Liabilities Assumed | ' | ||||
The following table summarizes the consideration paid for CR Software and the allocation of purchase price to assets acquired and liabilities assumed, recognized based on a valuation at the acquisition date: | |||||
(In thousands) | |||||
Consideration | |||||
Cash | $ | 29,649 | |||
Acquisition-related costs (included in the company’s consolidated statement of income and comprehensive income for the year ended September 30, 2013 as a component of restructuring and acquisition-related expense) | $ | 306 | |||
Recognized amounts of identifiable assets acquired and liabilities assumed | |||||
Cash and cash equivalents | $ | 1,211 | |||
Accounts receivable, net | 2,943 | ||||
Prepaid expenses and other current assets | 119 | ||||
Property and equipment, net | 238 | ||||
Intangible assets: | |||||
Completed technology | 10,800 | ||||
Customer relationships | 5,500 | ||||
Trade names | 200 | ||||
Other assets | 28 | ||||
Accounts payable | (400 | ) | |||
Accrued compensation and employee benefits | (506 | ) | |||
Other accrued liabilities | (1,057 | ) | |||
Deferred revenue | (178 | ) | |||
Notes payable to affiliate | (2,925 | ) | |||
Total identifiable net assets | 15,973 | ||||
Goodwill | 13,676 | ||||
Total | $ | 29,649 | |||
Cash_Cash_Equivalents_and_Mark1
Cash, Cash Equivalents and Marketable Securities Available for Sale (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Summary of Cash, Cash Equivalents and Marketable Securities Available for Sale | ' | ||||||||||||||||||||||||||||||||
The following is a summary of cash, cash equivalents and marketable securities available for sale at September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
Amortized | Gross | Gross | Fair Value | Amortized | Gross | Gross | Fair Value | ||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Cost | Unrealized | Unrealized | ||||||||||||||||||||||||||||
Gains | Losses | Gains | Losses | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash and Cash Equivalents: | |||||||||||||||||||||||||||||||||
Cash | $ | 82,493 | $ | — | $ | — | $ | 82,493 | $ | 70,965 | $ | — | $ | — | $ | 70,965 | |||||||||||||||||
Money market funds | 439 | — | — | 439 | 397 | — | — | 397 | |||||||||||||||||||||||||
Non U.S. money market funds | 246 | — | — | 246 | 247 | — | — | 247 | |||||||||||||||||||||||||
Total | $ | 83,178 | $ | — | $ | — | $ | 83,178 | $ | 71,609 | $ | — | $ | — | $ | 71,609 | |||||||||||||||||
Short-term Marketable Securities: | |||||||||||||||||||||||||||||||||
U.S. government obligations | $ | — | $ | — | $ | — | $ | — | $ | 20,001 | $ | — | $ | (1 | ) | $ | 20,000 | ||||||||||||||||
U.S. corporate debt | — | — | — | — | 2,007 | 1 | — | 2,008 | |||||||||||||||||||||||||
Total | $ | — | $ | — | $ | — | $ | — | $ | 22,008 | $ | 1 | $ | (1 | ) | $ | 22,008 | ||||||||||||||||
Long-term Marketable Securities: | |||||||||||||||||||||||||||||||||
Marketable equity securities | $ | 6,006 | $ | 1,101 | $ | — | $ | 7,107 | $ | 5,016 | $ | 401 | $ | — | $ | 5,417 | |||||||||||||||||
Gross Unrealized Losses and Fair Value of Investments | ' | ||||||||||||||||||||||||||||||||
The following table shows the gross unrealized losses and fair value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2012: | |||||||||||||||||||||||||||||||||
September 30, 2012 | |||||||||||||||||||||||||||||||||
Less than 12 months | 12 months or greater | Total | |||||||||||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Description of Securities: | |||||||||||||||||||||||||||||||||
U.S. government obligations | $ | 15,000 | $ | (1 | ) | $ | — | $ | — | $ | 15,000 | $ | (1 | ) | |||||||||||||||||||
Total | $ | 15,000 | $ | (1 | ) | $ | — | $ | — | $ | 15,000 | $ | (1 | ) | |||||||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||||||
The following table represents financial assets that we measured at fair value on a recurring basis at September 30, 2013 and 2012: | |||||||||||||
September 30, 2013 | Active Markets for | Significant Other | Fair Value as of | ||||||||||
Identical Instruments | Observable Inputs | September 30, 2013 | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents (1) | $ | 685 | $ | — | $ | 685 | |||||||
Marketable securities (3) | 7,107 | — | 7,107 | ||||||||||
Total | $ | 7,792 | $ | — | $ | 7,792 | |||||||
September 30, 2012 | Active Markets for | Significant Other | Fair Value as of | ||||||||||
Identical Instruments | Observable Inputs | September 30, 2012 | |||||||||||
(Level 1) | (Level 2) | ||||||||||||
(In thousands) | |||||||||||||
Assets: | |||||||||||||
Cash equivalents (1) | $ | 644 | $ | — | $ | 644 | |||||||
U.S. corporate debt (2) | — | 2,008 | 2,008 | ||||||||||
U.S. government obligations (2) | — | 20,000 | 20,000 | ||||||||||
Marketable securities (3) | 5,417 | — | 5,417 | ||||||||||
Total | $ | 6,061 | $ | 22,008 | $ | 28,069 | |||||||
-1 | Included in cash and cash equivalents on our balance sheet at September 30, 2013 and 2012. Not included in this table are cash deposits of $82.5 million and $71.0 million at September 30, 2013 and 2012, respectively. | ||||||||||||
-2 | Included in current marketable securities on our balance sheet at September 30, 2012. | ||||||||||||
-3 | Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in long-term marketable securities on our balance sheet at September 30, 2013 and 2012. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||
The following table summarizes our outstanding forward foreign currency contracts, by currency at September 30, 2013 and 2012: | |||||||||||||
September 30, 2013 | |||||||||||||
Contract Amount | Fair Value | ||||||||||||
Foreign | US$ | US$ | |||||||||||
Currency | |||||||||||||
(In thousands) | |||||||||||||
Sell foreign currency: | |||||||||||||
Canadian dollar (CAD) | CAD 4,700 | $ | 4,542 | $ | — | ||||||||
Euro (EUR) | EUR 5,400 | $ | 7,307 | — | |||||||||
Buy foreign currency: | |||||||||||||
British pound (GBP) | GBP 6,513 | $ | 10,500 | — | |||||||||
September 30, 2012 | |||||||||||||
Contract Amount | Fair Value | ||||||||||||
Foreign | US$ | US$ | |||||||||||
Currency | |||||||||||||
(In thousands) | |||||||||||||
Sell foreign currency: | |||||||||||||
Canadian dollar (CAD) | CAD 2,750 | $ | 2,794 | $ | — | ||||||||
Euro (EUR) | EUR 4,060 | $ | 5,255 | — | |||||||||
Buy foreign currency: | |||||||||||||
British pound (GBP) | GBP 6,131 | $ | 9,950 | — | |||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||
Gains on derivative financial instruments are recorded in our consolidated statements of income and comprehensive income as a component of other income (expense), net. These amounts are shown below for the years ended September 30, 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(in thousands) | |||||||||||||
Foreign currency forward contracts | $ | 25 | $ | 453 | $ | — |
Receivables_Tables
Receivables (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Receivables | ' | ||||||||
Receivables at September 30, 2013 and 2012 consisted of the following: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Billed | $ | 115,640 | $ | 113,514 | |||||
Unbilled (1) | 31,250 | 32,487 | |||||||
146,890 | 146,001 | ||||||||
Less: allowance for doubtful accounts | (3,157 | ) | (3,406 | ) | |||||
Receivables, net | $ | 143,733 | $ | 142,595 | |||||
-1 | Represents revenue recorded in excess of amounts billable pursuant to contract provisions and generally become billable at contractually specified dates or upon the attainment of milestones. Unbilled amounts are expected to be realized within one year. | ||||||||
Activity of Allowance for Doubtful Accounts | ' | ||||||||
Activity in the allowance for doubtful accounts was as follows: | |||||||||
Year Ended September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Balance, beginning of year | $ | 3,406 | $ | 3,714 | |||||
Add: expense | 327 | (122 | ) | ||||||
Less: write-offs (net of recoveries) | (576 | ) | (186 | ) | |||||
Balance, end of year | $ | 3,157 | $ | 3,406 | |||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||||||||||
Intangible Assets Subject to Amortization | ' | ||||||||||||||||||||||||||||||||
Intangible assets that are subject to amortization consisted of the following at September 30, 2013 and 2012: | |||||||||||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||||||||||
(In thousands, except average life) | |||||||||||||||||||||||||||||||||
Gross | Accumulated | Net | Average | Gross | Accumulated | Net | Average | ||||||||||||||||||||||||||
Carrying | Amortization | Life | Carrying | Amortization | Life | ||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Completed technology | $ | 84,604 | $ | (53,347 | ) | $ | 31,257 | 5 | $ | 92,437 | $ | (66,950 | ) | $ | 25,487 | 5 | |||||||||||||||||
Customer contracts and relationships | 56,321 | (30,422 | ) | 25,899 | 13 | 73,046 | (47,224 | ) | 25,822 | 12 | |||||||||||||||||||||||
Trade names | 230 | (182 | ) | 48 | 1 | 9,801 | (9,290 | ) | 511 | 3 | |||||||||||||||||||||||
$ | 141,155 | $ | (83,951 | ) | 57,204 | 8 | $ | 175,284 | $ | (123,464 | ) | 51,820 | 11 | ||||||||||||||||||||
Foreign currency translation adjustments | 157 | 479 | |||||||||||||||||||||||||||||||
Intangible assets, net | $ | 57,361 | $ | 52,299 | |||||||||||||||||||||||||||||
Schedule of Amortization Expense | ' | ||||||||||||||||||||||||||||||||
Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying consolidated statements of income and comprehensive income, consisted of the following during fiscal 2013, 2012 and 2011: | |||||||||||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cost of revenues | $ | 6,630 | $ | 1,332 | $ | 2,274 | |||||||||||||||||||||||||||
Selling, general and administrative expenses | 6,905 | 5,612 | 5,467 | ||||||||||||||||||||||||||||||
Total | $ | 13,535 | $ | 6,944 | $ | 7,741 | |||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||||||||||||||||||
Estimated future intangible asset amortization expense associated with intangible assets existing at September 30, 2013, was as follows (in thousands): | |||||||||||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||||||||||
2014 | $ | 11,557 | |||||||||||||||||||||||||||||||
2015 | 11,409 | ||||||||||||||||||||||||||||||||
2016 | 11,180 | ||||||||||||||||||||||||||||||||
2017 | 10,044 | ||||||||||||||||||||||||||||||||
2018 | 2,866 | ||||||||||||||||||||||||||||||||
Thereafter | 10,305 | ||||||||||||||||||||||||||||||||
Total | $ | 57,361 | |||||||||||||||||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||||||||||||||||||
The following table summarizes changes to goodwill during fiscal 2013 and 2012, both in total and as allocated to our operating segments. We have not recognized any goodwill impairment losses to date. | |||||||||||||||||||||||||||||||||
Applications | Scores | Tools | Total | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Balance at September 30, 2011 | $ | 451,205 | $ | 146,648 | $ | 66,835 | $ | 664,688 | |||||||||||||||||||||||||
Addition from acquisition | 87,280 | — | — | 87,280 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | 4,458 | — | 1,078 | 5,536 | |||||||||||||||||||||||||||||
Balance at September 30, 2012 | 542,943 | 146,648 | 67,913 | 757,504 | |||||||||||||||||||||||||||||
Addition from acquisition | 17,457 | — | — | 17,457 | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | (862 | ) | — | (168 | ) | (1,030 | ) | ||||||||||||||||||||||||||
Balance at September 30, 2013 | $ | 559,538 | $ | 146,648 | $ | 67,745 | $ | 773,931 | |||||||||||||||||||||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 12 Months Ended | ||||||||
Sep. 30, 2013 | |||||||||
Property, Plant and Equipment | ' | ||||||||
The following table presents the composition of property and equipment and other accrued liabilities at September 30, 2013 and 2012: | |||||||||
September 30, | |||||||||
2013 | 2012 | ||||||||
(In thousands) | |||||||||
Property and equipment: | |||||||||
Data processing equipment and software | $ | 139,035 | $ | 161,215 | |||||
Office furniture and equipment | 11,670 | 6,963 | |||||||
Leasehold improvements | 24,117 | 21,341 | |||||||
Less: accumulated depreciation and amortization | (129,667 | ) | (148,439 | ) | |||||
Total | $ | 45,155 | $ | 41,080 | |||||
Other Accrued Liabilities | ' | ||||||||
Other accrued liabilities: | |||||||||
Interest payable | $ | 8,519 | $ | 9,747 | |||||
Income taxes payable | 6,821 | 11,754 | |||||||
Other | 19,862 | 22,144 | |||||||
Total | $ | 35,202 | $ | 43,645 | |||||
Senior_Notes_Tables
Senior Notes (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Senior Notes | ' | ||||||||||||||||||||||||
The 2008 Senior Notes were issued in four series as follows: | |||||||||||||||||||||||||
Series | Amount | Interest Rate | Maturity Date | ||||||||||||||||||||||
A | $41 million | 6.37 | % | May 7, 2013 | |||||||||||||||||||||
B | $40 million | 6.37 | % | 7-May-15 | |||||||||||||||||||||
C | $63 million | 6.71 | % | 7-May-15 | |||||||||||||||||||||
D | $131 million | 7.18 | % | 7-May-18 | |||||||||||||||||||||
Series | Amount | Interest Rate | Maturity Date | ||||||||||||||||||||||
E | $60 million | 4.72 | % | July 14, 2016 | |||||||||||||||||||||
F | $72 million | 5.04 | % | 14-Jul-17 | |||||||||||||||||||||
G | $28 million | 5.42 | % | 14-Jul-19 | |||||||||||||||||||||
H | $85 million | 5.59 | % | 14-Jul-20 | |||||||||||||||||||||
Principal Amounts Carrying amounts and Fair Values of Senior Notes | ' | ||||||||||||||||||||||||
The following table presents the principal amounts, carrying amounts, and fair values for our Senior Notes at September 30, 2013 and 2012: | |||||||||||||||||||||||||
September 30, 2013 | September 30, 2012 | ||||||||||||||||||||||||
Principal | Carrying | Fair Value | Principal | Carrying | Fair Value | ||||||||||||||||||||
Amounts | Amounts | ||||||||||||||||||||||||
(In thousands) | (In thousands) | ||||||||||||||||||||||||
May 2008 $275 million Senior Notes | $ | 210,000 | $ | 210,000 | $ | 221,393 | $ | 259,000 | $ | 259,000 | $ | 275,201 | |||||||||||||
July 2010 $245 million Senior Notes | $ | 245,000 | $ | 245,000 | $ | 241,035 | $ | 245,000 | $ | 245,000 | $ | 243,866 | |||||||||||||
Future Principal Payments For the Senior Notes | ' | ||||||||||||||||||||||||
Future principal payments for the Senior Notes are as follows (in thousands): | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2014 | $ | 8,000 | |||||||||||||||||||||||
2015 | 71,000 | ||||||||||||||||||||||||
2016 | 60,000 | ||||||||||||||||||||||||
2017 | 72,000 | ||||||||||||||||||||||||
2018 | 131,000 | ||||||||||||||||||||||||
Thereafter | 113,000 | ||||||||||||||||||||||||
Total | $ | 455,000 | |||||||||||||||||||||||
Restructuring_Expenses_Tables
Restructuring Expenses (Tables) | 12 Months Ended | ||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||||||
The following table summarizes our restructuring accruals associated with the above actions. The current portion and non-current portion was recorded in other accrued current liabilities and other liabilities, respectively, within the accompanying consolidated balance sheets. | |||||||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2010 | 2011 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 2,836 | $ | 4,226 | $ | (1,700 | ) | $ | — | $ | 5,362 | ||||||||||
Employee separation | 742 | 8,165 | (7,873 | ) | — | 1,034 | |||||||||||||||
3,578 | $ | 12,391 | $ | (9,573 | ) | $ | — | 6,396 | |||||||||||||
Less: current portion | (1,474 | ) | (3,062 | ) | |||||||||||||||||
Non-current | $ | 2,104 | $ | 3,334 | |||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2011 | 2012 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 5,362 | $ | — | $ | (2,029 | ) | $ | — | $ | 3,333 | ||||||||||
Employee separation | 1,034 | 3,978 | (2,541 | ) | — | 2,471 | |||||||||||||||
6,396 | $ | 3,978 | $ | (4,570 | ) | $ | — | 5,804 | |||||||||||||
Less: current portion | (3,062 | ) | (4,944 | ) | |||||||||||||||||
Non-current | $ | 3,334 | $ | 860 | |||||||||||||||||
Accrual at | Expense | Cash | Expense | Accrual at | |||||||||||||||||
September 30, | Additions | Payments | Reversals | September 30, | |||||||||||||||||
2012 | 2013 | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Facilities charges | $ | 3,333 | $ | 1,624 | $ | (3,225 | ) | $ | — | $ | 1,732 | ||||||||||
Employee separation | 2,471 | 1,095 | (3,313 | ) | (253 | ) | — | ||||||||||||||
5,804 | $ | 2,719 | $ | (6,538 | ) | $ | (253 | ) | 1,732 | ||||||||||||
Less: current portion | (4,944 | ) | (1,732 | ) | |||||||||||||||||
Non-current | $ | 860 | $ | — | |||||||||||||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Provision for Income Taxes | ' | ||||||||||||
The provision for income taxes was as follows during fiscal 2013, 2012, and 2011: | |||||||||||||
Year ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Current: | |||||||||||||
Federal | $ | 31,469 | $ | 42,502 | $ | 22,019 | |||||||
State | 2,755 | 4,899 | 2,873 | ||||||||||
Foreign | 3,994 | 3,959 | (251 | ) | |||||||||
38,218 | 51,360 | 24,641 | |||||||||||
Deferred: | |||||||||||||
Federal | (468 | ) | (6,843 | ) | 59 | ||||||||
State | 2,069 | (925 | ) | (112 | ) | ||||||||
Foreign | 2,070 | 647 | 1,305 | ||||||||||
3,671 | (7,121 | ) | 1,252 | ||||||||||
Total provision | $ | 41,889 | $ | 44,239 | $ | 25,893 | |||||||
Deferred Tax Assets and Liabilities | ' | ||||||||||||
Deferred tax assets and liabilities at September 30, 2013 and 2012 were as follows: | |||||||||||||
September 30, | |||||||||||||
2013 | 2012 | ||||||||||||
(In thousands) | |||||||||||||
Deferred tax assets: | |||||||||||||
Net operating loss carryforward | $ | 21,529 | $ | 22,120 | |||||||||
Research credit carryforward | 4,074 | 2,310 | |||||||||||
Capital loss carryforward | 165 | 91 | |||||||||||
Investments | 1,101 | 1,141 | |||||||||||
Accrued compensation | 1,662 | 1,297 | |||||||||||
Share-based compensation | 16,443 | 20,109 | |||||||||||
Deferred revenue | 2,139 | 3,577 | |||||||||||
Accrued lease costs | 1,127 | 1,774 | |||||||||||
Property and equipment | 2,155 | 3,629 | |||||||||||
Other | 7,093 | 14,183 | |||||||||||
57,488 | 70,231 | ||||||||||||
Less valuation allowance | (8,712 | ) | (5,425 | ) | |||||||||
Total deferred tax assets | 48,776 | 64,806 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Intangible assets | (29,912 | ) | (31,364 | ) | |||||||||
Prepaid expense | (3,526 | ) | (3,405 | ) | |||||||||
Other | (1,515 | ) | (1,019 | ) | |||||||||
Total deferred tax liabilities | (34,953 | ) | (35,788 | ) | |||||||||
Deferred tax assets, net | $ | 13,823 | $ | 29,018 | |||||||||
Reconciliation Between Federal Statutory Income Tax Rate and Effective Tax Rate | ' | ||||||||||||
The reconciliation between the U.S. federal statutory income tax rate of 35% and our effective tax rate is shown below for fiscal 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Income tax provision at U.S. federal statutory rate | $ | 46,194 | $ | 47,685 | $ | 34,117 | |||||||
State income taxes, net of U.S. federal benefit | 2,689 | 3,663 | 2,770 | ||||||||||
Foreign taxes | (2,855 | ) | (3,616 | ) | (9,867 | ) | |||||||
Intercompany dividend | (32 | ) | 2,692 | 3,822 | |||||||||
Research credits | (2,412 | ) | (375 | ) | (2,559 | ) | |||||||
Domestic production deduction | (2,168 | ) | (3,054 | ) | (2,494 | ) | |||||||
Tax audit settlements | — | (1,203 | ) | 1,524 | |||||||||
CA Valuation | 2,310 | — | — | ||||||||||
Other | (1,837 | ) | (1,553 | ) | (1,420 | ) | |||||||
Recorded income tax provision | $ | 41,889 | $ | 44,239 | $ | 25,893 | |||||||
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits | ' | ||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands) | |||||||||||||
Gross unrecognized tax benefits at beginning of year | $ | 7,501 | $ | 9,539 | $ | 12,286 | |||||||
Gross increases for tax positions in prior years | 508 | 64 | 547 | ||||||||||
Gross decreases for tax positions in prior years | — | (2,035 | ) | — | |||||||||
Gross increases based on tax positions related to the current year | 1,000 | 681 | 1,000 | ||||||||||
Decreases for settlements and payments | — | (748 | ) | (4,294 | ) | ||||||||
Gross unrecognized tax benefits at end of year | $ | 9,009 | $ | 7,501 | $ | 9,539 | |||||||
StockBased_Employee_Benefit_Pl1
Stock-Based Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
AssumptionsUsed to Estimate Fair Value of Stock Options | ' | ||||||||||||||||
We estimate the fair value of stock options granted using the Black-Scholes option valuation model and we amortize the fair value on a straight-line basis over the vesting period. We used the following assumptions to estimate the fair value of our stock options during fiscal 2013, 2012 and 2011: | |||||||||||||||||
Year Ended September 30, | |||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||
Stock Options: | |||||||||||||||||
Average expected term (years) | 4.1 | 4.31 | 4.27 | ||||||||||||||
Expected volatility (range) | 35-37 | % | 38-41 | % | 39-41 | % | |||||||||||
Weighted average volatility | 37 | % | 40 | % | 40 | % | |||||||||||
Risk-free interest rate (range) | 0.5-1.1 | % | 0.5-1.5 | % | 0.6-2.1 | % | |||||||||||
Average expected dividend yield | 0.2 | % | 0.3 | % | 0.3 | % | |||||||||||
Expected dividend yield (range) | 0.2 | % | 0.2-0.3 | % | 0.3 | % | |||||||||||
Summary of Option Activity | ' | ||||||||||||||||
The following table summarizes option activity during fiscal 2013: | |||||||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||||||
average | average | Intrinsic Value | |||||||||||||||
Exercise | Remaining | ||||||||||||||||
Price | Contractual | ||||||||||||||||
Term | |||||||||||||||||
(In thousands) | (In years) | (In thousands) | |||||||||||||||
Outstanding at October 1, 2012 | 4,034 | $ | 33.01 | ||||||||||||||
Granted | 757 | 42.86 | |||||||||||||||
Exercised | (1,360 | ) | 31.79 | ||||||||||||||
Forfeited | (334 | ) | 26.03 | ||||||||||||||
Expired | (410 | ) | 44.73 | ||||||||||||||
Outstanding at September 30, 2013 | 2,687 | $ | 35.48 | 4.86 | $ | 53,203 | |||||||||||
Options exercisable at September 30, 2013 | 942 | $ | 32.57 | 3.57 | $ | 21,388 | |||||||||||
Vested and expected to vest at September 30, 2013 | 2,435 | $ | 35.03 | 4.78 | $ | 49,312 | |||||||||||
Summary of Restricted Stock Unit Activity | ' | ||||||||||||||||
The following table summarizes restricted stock unit activity during fiscal 2013: | |||||||||||||||||
Shares | Weighted- | ||||||||||||||||
average | |||||||||||||||||
Price | |||||||||||||||||
(In thousands) | |||||||||||||||||
Outstanding at October 1, 2012 | 1,732 | $ | 33.31 | ||||||||||||||
Granted | 782 | 42.59 | |||||||||||||||
Released | (603 | ) | 30.08 | ||||||||||||||
Forfeited | (195 | ) | 34.57 | ||||||||||||||
Outstanding at September 30, 2013 | 1,716 | 38.54 | |||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 12 Months Ended | ||||||||||||
Sep. 30, 2013 | |||||||||||||
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | ' | ||||||||||||
The following table reconciles the numerators and denominators of basic and diluted earnings per share (“EPS”) during fiscal 2013, 2012 and 2011: | |||||||||||||
Year Ended September 30, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
(In thousands, except per share data) | |||||||||||||
Numerator for basic and diluted earnings per share — net income | $ | 90,095 | $ | 92,004 | $ | 71,562 | |||||||
Denominator — share: | |||||||||||||
Basic weighted-average shares | 35,332 | 34,909 | 39,359 | ||||||||||
Effect of dilutive securities | 960 | 1,154 | 629 | ||||||||||
Diluted weighted-average shares | 36,292 | 36,063 | 39,988 | ||||||||||
Earnings per share: | |||||||||||||
Basic | $ | 2.55 | $ | 2.64 | $ | 1.82 | |||||||
Diluted | $ | 2.48 | $ | 2.55 | $ | 1.79 | |||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||||||||||
The following tables summarize segment information for fiscal 2013, 2012 and 2011: | |||||||||||||||||||||||||
Year Ended September 30, 2013 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 306,738 | $ | 175,281 | $ | 32,285 | $ | — | $ | 514,304 | |||||||||||||||
Professional services | 110,081 | 4,012 | 21,101 | — | 135,194 | ||||||||||||||||||||
License | 59,265 | 1,520 | 33,161 | — | 93,946 | ||||||||||||||||||||
Total segment revenues | 476,084 | 180,813 | 86,547 | — | 743,444 | ||||||||||||||||||||
Segment operating expense | (346,222 | ) | (51,781 | ) | (70,011 | ) | (70,966 | ) | (538,980 | ) | |||||||||||||||
Segment operating income | $ | 129,862 | $ | 129,032 | $ | 16,536 | $ | (70,966 | ) | 204,464 | |||||||||||||||
Unallocated share-based compensation expense | (25,850 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (13,535 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,486 | ) | |||||||||||||||||||||||
Operating income | 161,593 | ||||||||||||||||||||||||
Unallocated interest income | 54 | ||||||||||||||||||||||||
Unallocated interest expense | (30,281 | ) | |||||||||||||||||||||||
Unallocated other expense, net | 618 | ||||||||||||||||||||||||
Income before income taxes | $ | 131,984 | |||||||||||||||||||||||
Depreciation expense | $ | 14,171 | $ | 867 | $ | 1,998 | $ | 2,643 | $ | 19,679 | |||||||||||||||
Year Ended September 30, 2012 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 263,726 | $ | 172,218 | $ | 30,231 | $ | — | $ | 466,175 | |||||||||||||||
Professional services | 104,637 | 2,382 | 17,952 | — | 124,971 | ||||||||||||||||||||
License | 56,241 | 1,023 | 28,013 | — | 85,277 | ||||||||||||||||||||
Total segment revenues | 424,604 | 175,623 | 76,196 | — | 676,423 | ||||||||||||||||||||
Segment operating expense | (291,778 | ) | (52,687 | ) | (58,597 | ) | (71,705 | ) | (474,767 | ) | |||||||||||||||
Segment operating income | $ | 132,826 | $ | 122,936 | $ | 17,599 | $ | (71,705 | ) | 201,656 | |||||||||||||||
Unallocated share-based compensation expense | (21,229 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (6,944 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (5,125 | ) | |||||||||||||||||||||||
Operating income | 168,358 | ||||||||||||||||||||||||
Unallocated interest income | 317 | ||||||||||||||||||||||||
Unallocated interest expense | (31,734 | ) | |||||||||||||||||||||||
Unallocated other expense, net | (698 | ) | |||||||||||||||||||||||
Income before income taxes | $ | 136,243 | |||||||||||||||||||||||
Depreciation expense | $ | 11,321 | $ | 724 | $ | 1,258 | $ | 1,302 | $ | 14,605 | |||||||||||||||
Year Ended September 30, 2011 | |||||||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||||||
Corporate | |||||||||||||||||||||||||
Expenses | |||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||||||
Transactional and maintenance | $ | 258,736 | $ | 164,918 | $ | 29,776 | $ | — | $ | 453,430 | |||||||||||||||
Professional services | 100,921 | 2,102 | 12,918 | — | 115,941 | ||||||||||||||||||||
License | 23,371 | 1,547 | 25,394 | — | 50,312 | ||||||||||||||||||||
Total segment revenues | 383,028 | 168,567 | 68,088 | — | 619,683 | ||||||||||||||||||||
Segment operating expense | (276,467 | ) | (55,169 | ) | (54,398 | ) | (70,680 | ) | (456,714 | ) | |||||||||||||||
Segment operating income | $ | 106,561 | $ | 113,398 | $ | 13,690 | $ | (70,680 | ) | 162,969 | |||||||||||||||
Unallocated share-based compensation expense | (15,500 | ) | |||||||||||||||||||||||
Unallocated amortization expense | (7,741 | ) | |||||||||||||||||||||||
Unallocated restructuring and acquisition-related | (12,391 | ) | |||||||||||||||||||||||
Operating income | 127,337 | ||||||||||||||||||||||||
Unallocated interest income | 2,192 | ||||||||||||||||||||||||
Unallocated interest expense | (32,364 | ) | |||||||||||||||||||||||
Unallocated other income, net | 290 | ||||||||||||||||||||||||
Income before income taxes | $ | 97,455 | |||||||||||||||||||||||
Depreciation expense | $ | 12,784 | $ | 1,007 | $ | 1,667 | $ | 998 | $ | 16,456 | |||||||||||||||
Revenues and Percentage of Revenues by Reportable Market Segments | ' | ||||||||||||||||||||||||
Our revenues and percentage of revenues by reportable market segments were as follows for fiscal 2013, 2012 and 2011, the majority of which were derived from the sale of products and services within the banking (including consumer credit) industry: | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Applications | $ | 476,084 | 64 | % | $ | 424,604 | 63 | % | $ | 383,028 | 62 | % | |||||||||||||
Scores | 180,813 | 24 | % | 175,623 | 26 | % | 168,567 | 27 | % | ||||||||||||||||
Tools | 86,547 | 12 | % | 76,196 | 11 | % | 68,088 | 11 | % | ||||||||||||||||
Total | $ | 743,444 | 100 | % | $ | 676,423 | 100 | % | $ | 619,683 | 100 | % | |||||||||||||
Revenues and Percentage of Revenues on Geographical Basis | ' | ||||||||||||||||||||||||
Our revenues and percentage of revenues on a geographical basis are summarized below for fiscal 2013, 2012 and 2011. | |||||||||||||||||||||||||
Year Ended September 30, | |||||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
United States | $ | 449,437 | 60 | % | $ | 410,178 | 61 | % | $ | 389,676 | 63 | % | |||||||||||||
United Kingdom | 79,238 | 11 | % | 66,964 | 10 | % | 58,941 | 9 | % | ||||||||||||||||
Other countries | 214,769 | 29 | % | 199,281 | 29 | % | 171,066 | 28 | % | ||||||||||||||||
Total | $ | 743,444 | 100 | % | $ | 676,423 | 100 | % | $ | 619,683 | 100 | % | |||||||||||||
Property and Equipment Net on Geographical Basis | ' | ||||||||||||||||||||||||
At September 30, 2013 and 2012, no individual country outside of the United States accounted for 10% or more of total consolidated net property and equipment. | |||||||||||||||||||||||||
September 30, | |||||||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
United States | $ | 39,737 | 88 | % | $ | 35,571 | 87 | % | |||||||||||||||||
International | 5,418 | 12 | % | 5,509 | 13 | % | |||||||||||||||||||
Total | $ | 45,155 | 100 | % | $ | 41,080 | 100 | % | |||||||||||||||||
Commitments_Tables
Commitments (Tables) | 12 Months Ended | ||||
Sep. 30, 2013 | |||||
Minimum Future Commitments Under Non-Cancelable Operating Leases and Other Obligations | ' | ||||
Minimum future commitments under non-cancelable operating leases and other obligations were as follows at September 30, 2013: | |||||
Year Ended September 30, | Future | ||||
Minimum | |||||
Lease | |||||
Commitments | |||||
(In thousands) | |||||
2014 | $ | 24,676 | |||
2015 | 19,173 | ||||
2016 | 16,267 | ||||
2017 | 12,628 | ||||
2018 | 11,104 | ||||
Thereafter | 21,350 | ||||
Total | $ | 105,198 | |||
Supplementary_Financial_Data_U1
Supplementary Financial Data (Unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Sep. 30, 2013 | |||||||||||||||||
Selected Unaudited Consolidated Financial Results | ' | ||||||||||||||||
In the opinion of management, this unaudited information has been prepared on the same basis as the audited information and includes all adjustments (consisting of only normal recurring adjustments, except as noted below) necessary for a fair statement of the consolidated financial information for the period presented. | |||||||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2013 | 2013 | 2013 | 2012 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 190,327 | $ | 183,772 | $ | 179,325 | $ | 190,020 | |||||||||
Cost of revenues (2) | 56,809 | 57,655 | 58,856 | 56,148 | |||||||||||||
Gross profit | 133,518 | 126,117 | 120,469 | 133,872 | |||||||||||||
Net income | $ | 28,557 | $ | 19,622 | $ | 18,495 | $ | 23,421 | |||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 0.81 | $ | 0.55 | $ | 0.52 | $ | 0.67 | |||||||||
Diluted | $ | 0.79 | $ | 0.54 | $ | 0.51 | $ | 0.65 | |||||||||
Shares used in computing earnings per share: | |||||||||||||||||
Basic | 35,132 | 35,499 | 35,664 | 35,043 | |||||||||||||
Diluted | 36,151 | 36,385 | 36,492 | 36,151 | |||||||||||||
Quarter Ended | |||||||||||||||||
September 30, | June 30, | March 31, | December 31, | ||||||||||||||
2012 | 2012 | 2012 | 2011 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Revenues | $ | 186,075 | $ | 160,478 | $ | 159,521 | $ | 170,349 | |||||||||
Cost of revenues (2) | 55,327 | 47,832 | 48,814 | 45,974 | |||||||||||||
Gross profit | 130,748 | 112,646 | 110,707 | 124,375 | |||||||||||||
Net income | $ | 21,246 | $ | 20,749 | $ | 20,012 | $ | 29,997 | |||||||||
Earnings per share (1): | |||||||||||||||||
Basic | $ | 0.62 | $ | 0.61 | $ | 0.57 | $ | 0.83 | |||||||||
Diluted | $ | 0.6 | $ | 0.59 | $ | 0.55 | $ | 0.81 | |||||||||
Shares used in computing earnings per share: | |||||||||||||||||
Basic | 34,262 | 34,004 | 35,331 | 36,034 | |||||||||||||
Diluted | 35,513 | 35,293 | 36,552 | 36,887 | |||||||||||||
-1 | Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the totals for the respective years. | ||||||||||||||||
-2 | Cost of revenues excludes amortization expense of $1.7 million, $1.7 million, $1.7 million, $1.5 million, $0.5 million, $0.1 million, $0.1 million and $0.6 million for the quarters ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively. |
Estimated_Useful_Life_of_Prope
Estimated Useful Life of Property and Equipment (Detail) | 12 Months Ended |
Sep. 30, 2013 | |
Data processing equipment and software | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful life | '3 years |
Office furniture and equipment | Minimum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful life | '3 years |
Office furniture and equipment | Maximum | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful life | '7 years |
Leasehold Improvements | ' |
Property, Plant and Equipment [Line Items] | ' |
Property and equipment, estimated useful life | 'Shorter of estimated useful life or lease term |
Nature_of_Business_and_Summary3
Nature of Business and Summary of Significant Accounting Policies - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Significant Accounting Policies [Line Items] | ' | ' | ' |
Depreciation and amortization, property and equipment | $19.70 | $14.60 | $16.50 |
Foreign currency exchange gains (losses) | -0.8 | -1.5 | -1 |
Advertising and promotion costs | $2.50 | $1.80 | $1 |
Estimated_Useful_Life_of_Defin
Estimated Useful Life of Definite-Lived Intangible Assets (Detail) | 12 Months Ended |
Sep. 30, 2013 | |
Completed technology | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '4 years |
Completed technology | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '10 years |
Customer relationships | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '5 years |
Customer relationships | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '15 years |
Trade names | Minimum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '1 year |
Trade names | Maximum | ' |
Acquired Finite-Lived Intangible Assets [Line Items] | ' |
Finite-lived intangible assets, estimated useful life | '5 years |
Business_Combinations_Addition
Business Combinations - Additional Information (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Nov. 21, 2012 | Nov. 21, 2012 | Nov. 21, 2012 | Nov. 21, 2012 | Nov. 21, 2012 | Apr. 02, 2013 |
In Thousands, unless otherwise specified | Completed technology | Completed technology | Customer relationships | Customer relationships | Trade names | Trade names | CR Software, LLC | CR Software, LLC | CR Software, LLC | CR Software, LLC | CR Software, LLC | Infoglide Software, Inc. (Infoglide) | |||
Minimum | Maximum | Minimum | Maximum | Minimum | Maximum | Completed technology | Completed technology | Customer relationships | Trade names | ||||||
Minimum | Maximum | ||||||||||||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock acquired | ' | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | ' | ' | ' | ' | 100.00% |
Acquired identifiable intangible assets weighted average useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '8 years 9 months 18 days | ' | ' | ' | ' | ' |
Estimated useful life | ' | ' | ' | '4 years | '10 years | '5 years | '15 years | '1 year | '5 years | ' | '5 years | '10 years | '10 years | '1 year | ' |
Goodwill | $773,931 | $757,504 | $664,688 | ' | ' | ' | ' | ' | ' | $13,676 | ' | ' | ' | ' | ' |
Cash consideration | ' | ' | ' | ' | ' | ' | ' | ' | ' | $29,649 | ' | ' | ' | ' | $4,400 |
Consideration_Paid_for_CR_Soft
Consideration Paid for CR Software and Amounts for Assets Acquired and Liabilities Assumed (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Nov. 21, 2012 | Nov. 21, 2012 | Nov. 21, 2012 | Nov. 21, 2012 |
In Thousands, unless otherwise specified | CR Software, LLC | CR Software, LLC | CR Software, LLC | CR Software, LLC | |||
Completed technology | Customer relationships | Trade names | |||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' | ' | ' |
Cash | ' | ' | ' | $29,649 | ' | ' | ' |
Acquisition-related costs (included in the company's consolidated statement of income and comprehensive income for the year ended September 30, 2013 as a component of restructuring and acquisition-related expense) | ' | ' | ' | 306 | ' | ' | ' |
Cash and cash equivalents | ' | ' | ' | 1,211 | ' | ' | ' |
Accounts receivable, net | ' | ' | ' | 2,943 | ' | ' | ' |
Prepaid expenses and other current assets | ' | ' | ' | 119 | ' | ' | ' |
Property and equipment, net | ' | ' | ' | 238 | ' | ' | ' |
Intangible assets: | ' | ' | ' | ' | ' | ' | ' |
Intangible assets | ' | ' | ' | ' | 10,800 | 5,500 | 200 |
Other assets | ' | ' | ' | 28 | ' | ' | ' |
Accounts payable | ' | ' | ' | -400 | ' | ' | ' |
Accrued compensation and employee benefits | ' | ' | ' | -506 | ' | ' | ' |
Other accrued liabilities | ' | ' | ' | -1,057 | ' | ' | ' |
Deferred revenue | ' | ' | ' | -178 | ' | ' | ' |
Notes payable to affiliate | ' | ' | ' | -2,925 | ' | ' | ' |
Total identifiable net assets | ' | ' | ' | 15,973 | ' | ' | ' |
Goodwill | 773,931 | 757,504 | 664,688 | 13,676 | ' | ' | ' |
Total | ' | ' | ' | $29,649 | ' | ' | ' |
Summary_of_Cash_Cash_Equivalen
Summary of Cash, Cash Equivalents and Marketable Securities Available for Sale (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Cash and Cash Equivalents | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | $83,178 | $71,609 |
Fair Value | 83,178 | 71,609 |
Cash and Cash Equivalents | Cash equivalents | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | 82,493 | 70,965 |
Fair Value | 82,493 | 70,965 |
Cash and Cash Equivalents | Money Market Funds | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | 439 | 397 |
Fair Value | 439 | 397 |
Cash and Cash Equivalents | Non U.S money market funds | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | 246 | 247 |
Fair Value | 246 | 247 |
Short-term marketable securities | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | ' | 22,008 |
Gross Unrealized Gains | ' | 1 |
Gross Unrealized Losses | ' | -1 |
Fair Value | ' | 22,008 |
Short-term marketable securities | U.S. government obligations | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | ' | 20,001 |
Gross Unrealized Losses | ' | -1 |
Fair Value | ' | 20,000 |
Short-term marketable securities | U.S. corporate debt | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | ' | 2,007 |
Gross Unrealized Gains | ' | 1 |
Fair Value | ' | 2,008 |
Long-term marketable securities | Marketable Equity Securities | ' | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' | ' |
Amortized Cost | 6,006 | 5,016 |
Gross Unrealized Gains | 1,101 | 401 |
Fair Value | $7,107 | $5,417 |
Cash_Cash_Equivalents_and_Mark2
Cash, Cash Equivalents and Marketable Securities Available for Sale - Additional Information (Detail) (Maximum) | 12 Months Ended |
Sep. 30, 2013 | |
Maximum | ' |
Cash, cash equivalents and marketable securities [Line Items] | ' |
Short-term marketable securities, maturity period | '12 months |
Gross_Unrealized_Losses_and_Fa
Gross Unrealized Losses and Fair Value of Investments (Detail) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2012 |
Investments, Unrealized Loss Position [Line Items] | ' |
Less than 12 months, Fair Value | $15,000 |
Less than 12 months, Unrealized Losses | -1 |
12 months or greater, Fair Value | ' |
12 months or greater, Unrealized Losses | ' |
Total, Fair Value | 15,000 |
Total, Unrealized Losses | -1 |
U.S. government obligations | ' |
Investments, Unrealized Loss Position [Line Items] | ' |
Less than 12 months, Fair Value | 15,000 |
Less than 12 months, Unrealized Losses | -1 |
12 months or greater, Fair Value | ' |
12 months or greater, Unrealized Losses | ' |
Total, Fair Value | 15,000 |
Total, Unrealized Losses | ($1) |
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value on Recurring Basis (Detail) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2013 | Sep. 30, 2012 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Total | $7,792 | $28,069 | ||
Cash equivalents | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 685 | [1] | 644 | [1] |
U.S. corporate debt | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | ' | 2,008 | [2] | |
U.S. government obligations | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | ' | 20,000 | [2] | |
Marketable securities | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | 7,107 | [3] | 5,417 | [3] |
Active Markets for Identical Instruments (Level 1) | ' | ' | ||
Assets: | ' | ' | ||
Total | 7,792 | 6,061 | ||
Active Markets for Identical Instruments (Level 1) | Cash equivalents | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 685 | [1] | 644 | [1] |
Active Markets for Identical Instruments (Level 1) | Marketable securities | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | 7,107 | [3] | 5,417 | [3] |
Significant Other Observable Inputs (Level 2) | ' | ' | ||
Assets: | ' | ' | ||
Total | ' | 22,008 | ||
Significant Other Observable Inputs (Level 2) | U.S. corporate debt | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | ' | 2,008 | [2] | |
Significant Other Observable Inputs (Level 2) | U.S. government obligations | ' | ' | ||
Assets: | ' | ' | ||
Marketable securities available-for-sale | ' | $20,000 | [2] | |
[1] | Included in cash and cash equivalents on our balance sheet at September 30, 2013 and 2012. Not included in this table are cash deposits of $82.5 million and $71.0 million at September 30, 2013 and 2012, respectively. | |||
[2] | Included in current marketable securities on our balance sheet at September 30, 2012. | |||
[3] | Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in long-term marketable securities on our balance sheet at September 30, 2013 and 2012. |
Financial_Assets_Measured_at_F1
Financial Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (Cash, USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Millions, unless otherwise specified | ||
Cash | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash deposits | $82.50 | $71 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2012 | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency forward contracts | Foreign currency forward contracts | ||
Derivative [Line Items] | ' | ' | ' |
Short-term forward contracts, average maturities at inception | '3 months | ' | ' |
Forward foreign currency contracts fair value | ' | $0 | $0 |
Summary_of_Outstanding_Forward
Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars |
USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | USD ($) | USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | |
Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | Short | |||||||
Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | Not Designated as Hedging Instrument | |||||||
USD ($) | CAD | USD ($) | CAD | USD ($) | EUR (€) | USD ($) | EUR (€) | USD ($) | GBP (£) | USD ($) | GBP (£) | |||||||
Derivative [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contract amount of forward foreign currency contracts | ' | ' | $4,542 | 4,700 | $2,794 | 2,750 | ' | ' | $7,307 | € 5,400 | $5,255 | € 4,060 | ' | ' | $10,500 | £ 6,513 | $9,950 | £ 6,131 |
Fair value of forward foreign currency contracts to sell and buy foreign currency | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Gains_Losses_on_Derivative_Fin
Gains Losses on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) (Foreign currency forward contracts, USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Foreign currency forward contracts | ' | ' |
Derivative [Line Items] | ' | ' |
Foreign currency forward contracts | $25 | $453 |
Receivables_Detail
Receivables (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||
In Thousands, unless otherwise specified | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' | ||
Billed | $115,640 | $113,514 | ' | ||
Unbilled | 31,250 | [1] | 32,487 | [1] | ' |
Receivables, Gross, Current, Total | 146,890 | 146,001 | ' | ||
Less: allowance for doubtful accounts | -3,157 | -3,406 | -3,714 | ||
Receivables, net | $143,733 | $142,595 | ' | ||
[1] | Represents revenue recorded in excess of amounts billable pursuant to contract provisions and generally become billable at contractually specified dates or upon the attainment of milestones. Unbilled amounts are expected to be realized within one year. |
Activity_of_Allowance_for_Doub
Activity of Allowance for Doubtful Accounts (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ' | ' | ' |
Balance, beginning of year | $3,406 | $3,714 | ' |
Add: expense | 327 | -122 | -583 |
Less: write-offs (net of recoveries) | -576 | -186 | ' |
Balance, end of year | $3,157 | $3,406 | $3,714 |
Intangible_Assets_Subject_to_A
Intangible Assets Subject to Amortization (Detail) (USD $) | 12 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, net | $57,361 | $52,299 |
Foreign currency translation adjustments | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Intangible assets, net | 157 | 479 |
Finite Lived Intangible Assets Before Translation Adjustment | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 141,155 | 175,284 |
Accumulated Amortization | -83,951 | -123,464 |
Intangible assets, net | 57,204 | 51,820 |
Average Life | '8 years | '11 years |
Finite Lived Intangible Assets Before Translation Adjustment | Completed technology | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 84,604 | 92,437 |
Accumulated Amortization | -53,347 | -66,950 |
Intangible assets, net | 31,257 | 25,487 |
Average Life | '5 years | '5 years |
Finite Lived Intangible Assets Before Translation Adjustment | Customer relationships | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 56,321 | 73,046 |
Accumulated Amortization | -30,422 | -47,224 |
Intangible assets, net | 25,899 | 25,822 |
Average Life | '13 years | '12 years |
Finite Lived Intangible Assets Before Translation Adjustment | Trade names | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Gross Carrying Amount | 230 | 9,801 |
Accumulated Amortization | -182 | -9,290 |
Intangible assets, net | $48 | $511 |
Average Life | '1 year | '3 years |
Amortization_Expense_Associate
Amortization Expense Associated with Intangible Assets (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization expense of intangible assets | $1,700 | $1,700 | $1,700 | $1,500 | $500 | $100 | $100 | $600 | $13,535 | [1] | $6,944 | [1] | $7,741 | [1] |
Cost of revenues | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization expense of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | 6,630 | 1,332 | 2,274 | |||
Selling, general and administrative expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization expense of intangible assets | ' | ' | ' | ' | ' | ' | ' | ' | $6,905 | $5,612 | $5,467 | |||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 7 to consolidated financial statements. |
Estimated_Future_Intangible_As
Estimated Future Intangible Asset Amortization Expense (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Estimated future intangible asset amortization expense | ' | ' |
2014 | $11,557 | ' |
2015 | 11,409 | ' |
2016 | 11,180 | ' |
2017 | 10,044 | ' |
2018 | 2,866 | ' |
Thereafter | 10,305 | ' |
Total | $57,361 | $52,299 |
Summary_of_Changes_to_Goodwill
Summary of Changes to Goodwill (Detail) (USD $) | 12 Months Ended | 12 Months Ended | |||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 |
Applications | Applications | Scores | Scores | Scores | Tools | Tools | |||
Goodwill [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Beginning Balance | $757,504 | $664,688 | $542,943 | $451,205 | $146,648 | $146,648 | $146,648 | $67,913 | $66,835 |
Addition from acquisition | 17,457 | 87,280 | 17,457 | 87,280 | ' | ' | ' | ' | ' |
Foreign currency translation adjustment | -1,030 | 5,536 | -862 | 4,458 | ' | ' | ' | -168 | 1,078 |
Ending Balance | $773,931 | $757,504 | $559,538 | $542,943 | $146,648 | $146,648 | $146,648 | $67,745 | $67,913 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Property and equipment: | ' | ' |
Data processing equipment and software | $139,035 | $161,215 |
Office furniture and equipment | 11,670 | 6,963 |
Leasehold improvements | 24,117 | 21,341 |
Less: accumulated depreciation and amortization | -129,667 | -148,439 |
Total | $45,155 | $41,080 |
Other_Accrued_Liabilities_Deta
Other Accrued Liabilities (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Other accrued liabilities: | ' | ' |
Interest payable | $8,519 | $9,747 |
Income taxes payable | 6,821 | 11,754 |
Other | 19,862 | 22,144 |
Total | $35,202 | $43,645 |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2013 |
Line of Credit Facility [Line Items] | ' |
Unsecured revolving line of credit | $200 |
Revolving credit facility, expiration date | 28-Sep-16 |
Revolving credit facility, interest rate description | 'Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate and (b) the Federal Funds rate plus 0.50% or (ii) LIBOR plus an applicable margin. The margin on LIBOR borrowings ranges from 1.000% to 1.625% and is determined based on our consolidated leverage ratio. |
Revolving credit facility, utilization fees, percentage of total credit facility commitment to exceed | 50.00% |
Credit facility restrictive covenant, maximum consolidated leverage ratio | 3 |
Credit facility restrictive covenant, minimum fixed charge ratio | 2.5 |
Interest rate of borrowings outstanding | 1.31% |
Borrowings outstanding | $15 |
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 | 1.63% |
Federal Fund Rate | ' |
Line of Credit Facility [Line Items] | ' |
Debt instrument basis spread on variable rate | 0.50% |
Senior_Notes_Additional_Inform
Senior Notes - Additional Information (Detail) (USD $) | 12 Months Ended | 1 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | 7-May-08 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 14, 2010 | 31-May-08 | Sep. 30, 2013 | |
May 2008 senior notes | May 2008 senior notes | May 2008 senior notes | July 2010 senior notes | July 2010 senior notes | July 2010 senior notes | Series A note | Series A note | ||||
Debt Disclosure [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes issued in a private placement to a group of institutional investors | ' | ' | ' | $210,000,000 | $259,000,000 | $275,000,000 | $245,000,000 | $245,000,000 | $245,000,000 | ' | ' |
Senior Notes issued in a private placement to a group of institutional investors, annual principal payment | ' | ' | ' | 8,000,000 | ' | ' | ' | ' | ' | ' | ' |
Senior notes maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7-May-13 | 7-May-13 |
Payments on senior notes | $49,000,000 | $8,000,000 | $8,000,000 | ' | ' | ' | ' | ' | ' | ' | $41,000,000 |
Senior_Notes_Detail
Senior Notes (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | 31-May-08 | Sep. 30, 2013 | 7-May-08 | 31-May-08 | 7-May-08 | 31-May-08 | 7-May-08 | 31-May-08 | 7-May-08 | Jul. 31, 2010 | Jul. 14, 2010 | Jul. 31, 2010 | Jul. 14, 2010 | Jul. 31, 2010 | Jul. 14, 2010 | Jul. 31, 2010 | Jul. 14, 2010 |
In Thousands, unless otherwise specified | Series A note | Series A note | Series A note | Series B | Series B | Series C | Series C | Series D | Series D | Series E | Series E | Series F | Series F | Series G | Series G | Series H | Series H | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount | $447,000 | $455,000 | ' | ' | $41,000 | ' | $40,000 | ' | $63,000 | ' | $131,000 | ' | $60,000 | ' | $72,000 | ' | $28,000 | ' | $85,000 |
Interest Rate | ' | ' | ' | ' | 6.37% | ' | 6.37% | ' | 6.71% | ' | 7.18% | ' | 4.72% | ' | 5.04% | ' | 5.42% | ' | 5.59% |
Maturity Date | ' | ' | 7-May-13 | 7-May-13 | ' | 7-May-15 | ' | 7-May-15 | ' | 7-May-18 | ' | 14-Jul-16 | ' | 14-Jul-17 | ' | 14-Jul-19 | ' | 14-Jul-20 | ' |
Principal_Amounts_Carrying_Amo
Principal Amounts Carrying Amounts and Fair Values of Senior Notes (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | 7-May-08 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 14, 2010 |
In Thousands, unless otherwise specified | May 2008 senior notes | May 2008 senior notes | May 2008 senior notes | July 2010 senior notes | July 2010 senior notes | July 2010 senior notes |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Principal | $210,000 | $259,000 | $275,000 | $245,000 | $245,000 | $245,000 |
Carrying Amounts | 210,000 | 259,000 | ' | 245,000 | 245,000 | ' |
Fair Value | $221,393 | $275,201 | ' | $241,035 | $243,866 | ' |
Principal_Amounts_Carrying_Amo1
Principal Amounts Carrying Amounts and Fair Values of Senior Notes (Parenthetical) (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 | 7-May-08 | Sep. 30, 2013 | Sep. 30, 2012 | Jul. 14, 2010 |
In Thousands, unless otherwise specified | May 2008 senior notes | May 2008 senior notes | May 2008 senior notes | July 2010 senior notes | July 2010 senior notes | July 2010 senior notes |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' |
Senior Notes issued in a private placement to a group of institutional investors | $210,000 | $259,000 | $275,000 | $245,000 | $245,000 | $245,000 |
Future_Principal_Payments_For_
Future Principal Payments For Senior Notes (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Debt Instrument [Line Items] | ' |
2014 | $8,000 |
2015 | 71,000 |
2016 | 60,000 |
2017 | 72,000 |
2018 | 131,000 |
Thereafter | 113,000 |
Total | $455,000 |
Employee_Benefit_Plans_Additio
Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Employee Benefits Disclosure [Line Items] | ' | ' | ' |
Eligible employees contribution to 401(k) plan | 25.00% | ' | ' |
Employer contributions into 401(k) plans | $6.30 | $5.50 | $5.10 |
Employee incentive plans expenses | $10.50 | $17.40 | $10.10 |
Restructuring_Expenses_Additio
Restructuring Expenses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | $2,719 | $3,978 | $12,391 |
Number of positions reduced | 52 | 85 | 177 |
Reversal of severance cost | 253 | ' | ' |
Employee separation | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | 1,095 | 3,978 | 8,165 |
Reversal of severance cost | 253 | ' | ' |
Facilities charges | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' |
Restructuring charges | $1,624 | ' | $4,226 |
Summary_of_Restructuring_Accru
Summary of Restructuring Accruals and Certain Facility Closures (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Less: current portion | ($1,732) | ($4,944) | ($3,062) | ($1,474) |
Non-current | ' | 860 | 3,334 | 2,104 |
Beginning balance | 5,804 | 6,396 | 3,578 | ' |
Expense Additions | 2,719 | 3,978 | 12,391 | ' |
Cash Payments | -6,538 | -4,570 | -9,573 | ' |
Expense reversal | -253 | ' | ' | ' |
Ending balance | 1,732 | 5,804 | 6,396 | ' |
Facilities charges | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | 3,333 | 5,362 | 2,836 | ' |
Expense Additions | 1,624 | ' | 4,226 | ' |
Cash Payments | -3,225 | -2,029 | -1,700 | ' |
Ending balance | 1,732 | 3,333 | 5,362 | ' |
Employee separation | ' | ' | ' | ' |
Restructuring Cost and Reserve [Line Items] | ' | ' | ' | ' |
Beginning balance | 2,471 | 1,034 | 742 | ' |
Expense Additions | 1,095 | 3,978 | 8,165 | ' |
Cash Payments | -3,313 | -2,541 | -7,873 | ' |
Expense reversal | -253 | ' | ' | ' |
Ending balance | ' | $2,471 | $1,034 | ' |
Provision_for_Income_Taxes_Det
Provision for Income Taxes (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Current: | ' | ' | ' |
Federal | $31,469 | $42,502 | $22,019 |
State | 2,755 | 4,899 | 2,873 |
Foreign | 3,994 | 3,959 | -251 |
Current Income Tax Expense (Benefit), Total | 38,218 | 51,360 | 24,641 |
Deferred: | ' | ' | ' |
Federal | -468 | -6,843 | 59 |
State | 2,069 | -925 | -112 |
Foreign | 2,070 | 647 | 1,305 |
Deferred income taxes | 3,671 | -7,121 | 1,252 |
Recorded income tax provision | $41,889 | $44,239 | $25,893 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | Sep. 30, 2010 | |
Income Taxes [Line Items] | ' | ' | ' | ' |
Foreign pretax earnings | $24,300,000 | $26,900,000 | $20,600,000 | ' |
Current foreign tax expense related to foreign tax withholdings | 4,800,000 | 6,300,000 | 5,400,000 | ' |
U.S. federal statutory income tax rate | 35.00% | 35.00% | 35.00% | ' |
Excess amount for financial reporting over tax basis of investments in foreign subsidiaries | 48,600,000 | ' | ' | ' |
Unrecognized tax benefits | 9,009,000 | 7,501,000 | 9,539,000 | 12,286,000 |
Unrecognized tax benefits that would impact the effective tax rate if recognized | 7,200,000 | ' | ' | ' |
Uncertain tax benefits will occur in the next 12 months | 7,000,000 | ' | ' | ' |
Unrecognized tax benefits, accrued interest | 900,000 | ' | ' | ' |
U.S. federal | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards | 31,500,000 | ' | ' | ' |
Net operating loss carryforwards expiration dates | '2024 | ' | ' | ' |
State | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards | 6,200,000 | ' | ' | ' |
Net operating loss carryforwards expiration dates | '2021 | ' | ' | ' |
Foreign NOL carryforwards | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Net operating loss carryforwards | 10,200,000 | ' | ' | ' |
CA state research credit | ' | ' | ' | ' |
Income Taxes [Line Items] | ' | ' | ' | ' |
Excess state research credit | 3,400,000 | ' | ' | ' |
Valuation allowance | $3,400,000 | ' | ' | ' |
Deferred_Tax_Assets_and_Liabil
Deferred Tax Assets and Liabilities (Detail) (USD $) | Sep. 30, 2013 | Sep. 30, 2012 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Net operating loss carryforward | $21,529 | $22,120 |
Research credit carryforward | 4,074 | 2,310 |
Capital loss carryforward | 165 | 91 |
Investments | 1,101 | 1,141 |
Accrued compensation | 1,662 | 1,297 |
Share-based compensation | 16,443 | 20,109 |
Deferred revenue | 2,139 | 3,577 |
Accrued lease costs | 1,127 | 1,774 |
Property and equipment | 2,155 | 3,629 |
Other | 7,093 | 14,183 |
Deferred Tax Assets, Gross, Total | 57,488 | 70,231 |
Less valuation allowance | -8,712 | -5,425 |
Total deferred tax assets | 48,776 | 64,806 |
Deferred tax liabilities: | ' | ' |
Intangible assets | -29,912 | -31,364 |
Prepaid expense | -3,526 | -3,405 |
Other | -1,515 | -1,019 |
Total deferred tax liabilities | -34,953 | -35,788 |
Deferred tax assets, net | $13,823 | $29,018 |
Reconciliation_Between_Federal
Reconciliation Between Federal Statutory Income Tax Rate and Effective Tax Rate (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Taxes [Line Items] | ' | ' | ' |
Income tax provision at U.S. federal statutory rate | $46,194 | $47,685 | $34,117 |
State income taxes, net of U.S. federal benefit | 2,689 | 3,663 | 2,770 |
Foreign taxes | -2,855 | -3,616 | -9,867 |
Intercompany dividend | -32 | 2,692 | 3,822 |
Research credits | -2,412 | -375 | -2,559 |
Domestic production deduction | -2,168 | -3,054 | -2,494 |
Tax audit settlements | ' | -1,203 | 1,524 |
CA Valuation | 2,310 | ' | ' |
Other | -1,837 | -1,553 | -1,420 |
Recorded income tax provision | $41,889 | $44,239 | $25,893 |
Reconciliation_of_Beginning_an
Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Income Tax Contingency [Line Items] | ' | ' | ' |
Gross unrecognized tax benefits at beginning of year | $7,501 | $9,539 | $12,286 |
Gross increases for tax positions in prior years | 508 | 64 | 547 |
Gross decreases for tax positions in prior years | ' | -2,035 | ' |
Gross increases based on tax positions related to the current year | 1,000 | 681 | 1,000 |
Decreases for settlements and payments | ' | -748 | -4,294 |
Gross unrecognized tax benefits at end of year | $9,009 | $7,501 | $9,539 |
Stock_Based_Employee_Benefit_P
Stock Based Employee Benefit Plans - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Share-based compensation | $25,850,000 | $21,229,000 | $15,500,000 |
Tax benefit related to share-based compensation expense | 9,200,000 | 7,800,000 | 5,800,000 |
Unrecognized compensation cost related to non-vested share-based compensation arrangements | 54,500,000 | ' | ' |
Unrecognized compensation cost, weighted average recognition period | '2 years 8 months 1 day | ' | ' |
Weighted average fair value of options granted | $12.53 | $12.32 | $8.02 |
Number of options that had exercise prices lower than the market price of common stock | 2,700,000 | ' | ' |
Market price of common stock | $55.28 | ' | ' |
Total intrinsic value of options exercised | 19,800,000 | 31,200,000 | 4,400,000 |
Weighted average fair value of restricted stock units and non-vested shares granted | $42.59 | ' | ' |
Cash received from stock option exercises and the issuance of stock under the Purchase Plan | 30,300,000 | ' | ' |
Tax benefit realized for tax deductions from option exercises | 6,800,000 | ' | ' |
Treasury stock, shares | 54,071,000 | 54,018,000 | ' |
Restricted stock units and non-vested shares | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Weighted average fair value of restricted stock units and non-vested shares granted | $42.27 | $37.80 | $24.38 |
Total intrinsic value of restricted stock units and non-vested shares vested | $26,700,000 | $15,500,000 | $9,700,000 |
2003 Employment Inducement Award Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Authorized shares of common stock for grant under stock plan | 2,250,000 | ' | ' |
2012 Long-Term Incentive Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Authorized shares of common stock for grant under stock plan | 6,000,000 | ' | ' |
Shares available for grants under stock plan | 1,731,492 | ' | ' |
Stock option awards vesting period | '4 years | ' | ' |
2012 Long-Term Incentive Plan | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock option awards term | '7 years | ' | ' |
2012 Long-Term Incentive Plan | Awards Granted Prior to October 1, 2005 | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock option awards vesting period | '4 years | ' | ' |
2012 Long-Term Incentive Plan | Awards Granted Prior to October 1, 2005 | Maximum | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Stock option awards term | '10 years | ' | ' |
Employee Stock Purchase Plan | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Authorized shares of common stock for grant under stock plan | 5,062,500 | ' | ' |
Shares available for grants under stock plan | 2,707,966 | ' | ' |
Employee stock purchase plans, percentage of salary withheld through payroll deductions to purchase FICO common stock | 10.00% | ' | ' |
Employee stock purchase plans, purchase price of the stock as a percentage of fair market value on the exercise date | 85.00% | ' | ' |
Employee stock purchase plans, offering period (in months) | '6 months | ' | ' |
Assumptions_Used_to_Estimate_F
Assumptions Used to Estimate Fair Value of Stock Options (Detail) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Average expected term (years) | '4 years 1 month 6 days | '4 years 3 months 22 days | '4 years 3 months 7 days |
Expected volatility (range), minimum | 35.00% | 38.00% | 39.00% |
Expected volatility (range), maximum | 37.00% | 41.00% | 41.00% |
Weighted average volatility | 37.00% | 40.00% | 40.00% |
Risk free interest rate, minimum | 0.50% | 0.50% | 0.60% |
Risk free interest rate, maximum | 1.10% | 1.50% | 2.10% |
Average expected dividend yield | 0.20% | 0.30% | 0.30% |
Expected dividend yield (range), minimum | 0.20% | 0.20% | 0.30% |
Expected dividend yield (range), maximum | ' | 0.30% | ' |
Summary_of_Option_Activity_Det
Summary of Option Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Shares | ' |
Beginning Balance | 4,034 |
Granted | 757 |
Exercised | -1,360 |
Forfeited | -334 |
Expired | -410 |
Ending Balance | 2,687 |
Options exercisable at September 30, 2013 | 942 |
Vested and expected to vest at September 30, 2013 | 2,435 |
Weighted-average Exercise Price | ' |
Beginning Balance | $33.01 |
Granted | $42.86 |
Exercised | $31.79 |
Forfeited | $26.03 |
Expired | $44.73 |
Ending Balance | $35.48 |
Options exercisable at September 30, 2013 | $32.57 |
Vested and expected to vest at September 30, 2013 | $35.03 |
Weighted-average Remaining Contractual Term | ' |
Outstanding at September 30, 2013 | '4 years 10 months 10 days |
Options exercisable at September 30, 2013 | '3 years 6 months 26 days |
Vested and expected to vest at September 30, 2013 | '4 years 9 months 11 days |
Aggregate Intrinsic Value | ' |
Outstanding at September 30, 2013 | $53,203 |
Options exercisable at September 30, 2013 | 21,388 |
Vested and expected to vest at September 30, 2013 | $49,312 |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Unit Activity (Detail) (USD $) | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 |
Shares | ' |
Beginning Balance | 1,732 |
Granted | 782 |
Released | -603 |
Forfeited | -195 |
Ending Balance | 1,716 |
Weighted-average Price | ' |
Beginning Balance | $33.31 |
Granted | $42.59 |
Released | $30.08 |
Forfeited | $34.57 |
Ending Balance | $38.54 |
Reconciliation_of_Numerators_a
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | ||||||||
Numerator for basic and diluted earnings per share | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Net income | $28,557 | $19,622 | $18,495 | $23,421 | $21,246 | $20,749 | $20,012 | $29,997 | $90,095 | $92,004 | $71,562 | ||||||||
Denominator - share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic weighted-average shares | 35,132 | 35,499 | 35,664 | 35,043 | 34,262 | 34,004 | 35,331 | 36,034 | 35,332 | 34,909 | 39,359 | ||||||||
Effect of dilutive securities | ' | ' | ' | ' | ' | ' | ' | ' | 960 | 1,154 | 629 | ||||||||
Diluted weighted-average shares | 36,151 | 36,385 | 36,492 | 36,151 | 35,513 | 35,293 | 36,552 | 36,887 | 36,292 | 36,063 | 39,988 | ||||||||
Earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic | $0.81 | [1] | $0.55 | [1] | $0.52 | [1] | $0.67 | [1] | $0.62 | [1] | $0.61 | [1] | $0.57 | [1] | $0.83 | [1] | $2.55 | $2.64 | $1.82 |
Diluted | $0.79 | [1] | $0.54 | [1] | $0.51 | [1] | $0.65 | [1] | $0.60 | [1] | $0.59 | [1] | $0.55 | [1] | $0.81 | [1] | $2.48 | $2.55 | $1.79 |
[1] | Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the totals for the respective years. |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Options to purchase shares of common stock excluded in the computation of diluted earnings per share because their inclusion would be antidilutive, shares | 111,000 | 1,420,000 | 3,598,000 |
Related_Party_Transactions_Add
Related Party Transactions - Additional Information (Detail) (USD $) | Sep. 30, 2013 |
In Millions, unless otherwise specified | |
Related Party Transaction [Line Items] | ' |
Investment in convertible preferred stock in a private company | $10 |
Summary_of_Segment_Information
Summary of Segment Information (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Transactional and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | $514,304 | $466,175 | $453,430 | |||
Professional services | ' | ' | ' | ' | ' | ' | ' | ' | 135,194 | 124,971 | 115,941 | |||
License | ' | ' | ' | ' | ' | ' | ' | ' | 93,946 | 85,277 | 50,312 | |||
Total segment revenues | 190,327 | 183,772 | 179,325 | 190,020 | 186,075 | 160,478 | 159,521 | 170,349 | 743,444 | 676,423 | 619,683 | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -581,851 | -508,065 | -492,346 | |||
Unallocated share-based compensation expense | ' | ' | ' | ' | ' | ' | ' | ' | -25,850 | -21,229 | -15,500 | |||
Unallocated amortization expense | -1,700 | -1,700 | -1,700 | -1,500 | -500 | -100 | -100 | -600 | -13,535 | [1] | -6,944 | [1] | -7,741 | [1] |
Unallocated restructuring and acquisition-related | ' | ' | ' | ' | ' | ' | ' | ' | -3,486 | -5,125 | -12,391 | |||
Unallocated restructuring and acquisition-related | ' | ' | ' | ' | ' | ' | ' | ' | -2,719 | -3,978 | -12,391 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 161,593 | 168,358 | 127,337 | |||
Unallocated interest income | ' | ' | ' | ' | ' | ' | ' | ' | 54 | 317 | 2,192 | |||
Unallocated interest expense | ' | ' | ' | ' | ' | ' | ' | ' | -30,281 | -31,734 | -32,364 | |||
Unallocated other expense, net | ' | ' | ' | ' | ' | ' | ' | ' | 618 | -698 | 290 | |||
Income before income taxes | ' | ' | ' | ' | ' | ' | ' | ' | 131,984 | 136,243 | 97,455 | |||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 19,679 | 14,605 | 16,456 | |||
Applications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Transactional and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 306,738 | 263,726 | 258,736 | |||
Professional services | ' | ' | ' | ' | ' | ' | ' | ' | 110,081 | 104,637 | 100,921 | |||
License | ' | ' | ' | ' | ' | ' | ' | ' | 59,265 | 56,241 | 23,371 | |||
Total segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 476,084 | 424,604 | 383,028 | |||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 14,171 | 11,321 | 12,784 | |||
Scores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Transactional and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 175,281 | 172,218 | 164,918 | |||
Professional services | ' | ' | ' | ' | ' | ' | ' | ' | 4,012 | 2,382 | 2,102 | |||
License | ' | ' | ' | ' | ' | ' | ' | ' | 1,520 | 1,023 | 1,547 | |||
Total segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 180,813 | 175,623 | 168,567 | |||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 867 | 724 | 1,007 | |||
Tools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Transactional and maintenance | ' | ' | ' | ' | ' | ' | ' | ' | 32,285 | 30,231 | 29,776 | |||
Professional services | ' | ' | ' | ' | ' | ' | ' | ' | 21,101 | 17,952 | 12,918 | |||
License | ' | ' | ' | ' | ' | ' | ' | ' | 33,161 | 28,013 | 25,394 | |||
Total segment revenues | ' | ' | ' | ' | ' | ' | ' | ' | 86,547 | 76,196 | 68,088 | |||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 1,998 | 1,258 | 1,667 | |||
Unallocated Corporate Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Depreciation expense | ' | ' | ' | ' | ' | ' | ' | ' | 2,643 | 1,302 | 998 | |||
Operating Segments | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -538,980 | -474,767 | -456,714 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 204,464 | 201,656 | 162,969 | |||
Operating Segments | Applications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -346,222 | -291,778 | -276,467 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 129,862 | 132,826 | 106,561 | |||
Operating Segments | Scores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -51,781 | -52,687 | -55,169 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 129,032 | 122,936 | 113,398 | |||
Operating Segments | Tools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -70,011 | -58,597 | -54,398 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | 16,536 | 17,599 | 13,690 | |||
Operating Segments | Unallocated Corporate Expenses | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment revenues: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Segment operating expense | ' | ' | ' | ' | ' | ' | ' | ' | -70,966 | -71,705 | -70,680 | |||
Operating income | ' | ' | ' | ' | ' | ' | ' | ' | ($70,966) | ($71,705) | ($70,680) | |||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 7 to consolidated financial statements. |
Revenues_And_Percentage_Of_Rev
Revenues And Percentage Of Revenues By Reportable Market Segments (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $190,327 | $183,772 | $179,325 | $190,020 | $186,075 | $160,478 | $159,521 | $170,349 | $743,444 | $676,423 | $619,683 |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% |
Applications | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 476,084 | 424,604 | 383,028 |
Applications | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 64.00% | 63.00% | 62.00% |
Scores | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 180,813 | 175,623 | 168,567 |
Scores | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 24.00% | 26.00% | 27.00% |
Tools | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $86,547 | $76,196 | $68,088 |
Tools | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 12.00% | 11.00% | 11.00% |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 12 Months Ended | ||
Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 100.00% | 100.00% | 100.00% |
Credit Concentration Risk | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 16.00% | 18.00% | 18.00% |
Sales Revenue, Services, Net | Applications | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 64.00% | 63.00% | 62.00% |
Sales Revenue, Services, Net | Applications | Fraud Solutions | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 22.00% | 25.00% | 23.00% |
Sales Revenue, Services, Net | Applications | Customer Management Solutions | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 11.00% | 13.00% | 13.00% |
Sales Revenue, Services, Net | Applications | Collections & Recovery solutions | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 9.00% | 8.00% | 8.00% |
Recovered_Sheet1
Revenues and Percentage of Revenues on Geographical Basis (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | $190,327 | $183,772 | $179,325 | $190,020 | $186,075 | $160,478 | $159,521 | $170,349 | $743,444 | $676,423 | $619,683 |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 100.00% | 100.00% | 100.00% |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 449,437 | 410,178 | 389,676 |
United States | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 60.00% | 61.00% | 63.00% |
United Kingdom | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | 79,238 | 66,964 | 58,941 |
United Kingdom | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 11.00% | 10.00% | 9.00% |
Other countries | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | ' | ' | ' | $214,769 | $199,281 | $171,066 |
Other countries | Sales Revenue, Services, Net | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Concentration of risk percentage | ' | ' | ' | ' | ' | ' | ' | ' | 29.00% | 29.00% | 28.00% |
Property_and_Equipment_Net_on_
Property and Equipment Net on Geographical Basis (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $45,155 | $41,080 | ' |
Concentration of risk percentage | 100.00% | 100.00% | 100.00% |
United States | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | 39,737 | 35,571 | ' |
United States | Property Plant and Equipment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 88.00% | 87.00% | ' |
International | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Property and equipment, net | $5,418 | $5,509 | ' |
International | Property Plant and Equipment | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' |
Concentration of risk percentage | 12.00% | 13.00% | ' |
Minimum_Future_Commitments_Und
Minimum Future Commitments Under Non Cancelable Operating Leases and Other Obligations (Detail) (USD $) | Sep. 30, 2013 |
In Thousands, unless otherwise specified | |
Future Minimum Lease Commitments | ' |
2014 | $24,676 |
2015 | 19,173 |
2016 | 16,267 |
2017 | 12,628 |
2018 | 11,104 |
Thereafter | 21,350 |
Total | $105,198 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 |
Employee | |||
Commitments and Contingencies Disclosure [Line Items] | ' | ' | ' |
Contractual sublease commitments in 2014 | $1.10 | ' | ' |
Rent expense under operating leases | $22.10 | $21.30 | $21.10 |
Number of executives in a management agreement providing for certain payments and other benefits in the event of a qualified change | 25 | ' | ' |
Guarantees_Additional_Informat
Guarantees - Additional Information (Detail) (Maximum) | 12 Months Ended |
Sep. 30, 2013 | |
Maximum | ' |
Product Warranty [Line Items] | ' |
Duration of product warranties | '90 days |
Selected_Unaudited_Consolidate
Selected Unaudited Consolidated Financial Results (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||||||||||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Revenues | $190,327 | $183,772 | $179,325 | $190,020 | $186,075 | $160,478 | $159,521 | $170,349 | $743,444 | $676,423 | $619,683 | |||||||||||
Cost of revenues | 56,809 | [1] | 57,655 | [1] | 58,856 | [1] | 56,148 | [1] | 55,327 | [1] | 47,832 | [1] | 48,814 | [1] | 45,974 | [1] | 229,468 | [2] | 197,947 | [2] | 186,470 | [2] |
Gross profit | 133,518 | 126,117 | 120,469 | 133,872 | 130,748 | 112,646 | 110,707 | 124,375 | ' | ' | ' | |||||||||||
Net income | $28,557 | $19,622 | $18,495 | $23,421 | $21,246 | $20,749 | $20,012 | $29,997 | $90,095 | $92,004 | $71,562 | |||||||||||
Earnings per share : | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic | $0.81 | [3] | $0.55 | [3] | $0.52 | [3] | $0.67 | [3] | $0.62 | [3] | $0.61 | [3] | $0.57 | [3] | $0.83 | [3] | $2.55 | $2.64 | $1.82 | |||
Diluted | $0.79 | [3] | $0.54 | [3] | $0.51 | [3] | $0.65 | [3] | $0.60 | [3] | $0.59 | [3] | $0.55 | [3] | $0.81 | [3] | $2.48 | $2.55 | $1.79 | |||
Shares used in computing earnings per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||||||||||
Basic | 35,132 | 35,499 | 35,664 | 35,043 | 34,262 | 34,004 | 35,331 | 36,034 | 35,332 | 34,909 | 39,359 | |||||||||||
Diluted | 36,151 | 36,385 | 36,492 | 36,151 | 35,513 | 35,293 | 36,552 | 36,887 | 36,292 | 36,063 | 39,988 | |||||||||||
[1] | Cost of revenues excludes amortization expense of $1.7 million, $1.7 million, $1.7 million, $1.5 million, $0.5 million, $0.1 million, $0.1 million and $0.6 million for the quarters ended September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively. | |||||||||||||||||||||
[2] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 7 to consolidated financial statements. | |||||||||||||||||||||
[3] | Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the totals for the respective years. |
Selected_Unaudited_Consolidate1
Selected Unaudited Consolidated Financial Results (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Sep. 30, 2012 | Sep. 30, 2011 | |||
Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Amortization expense | $1,700 | $1,700 | $1,700 | $1,500 | $500 | $100 | $100 | $600 | $13,535 | [1] | $6,944 | [1] | $7,741 | [1] |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 7 to consolidated financial statements. |