Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Mar. 31, 2014 | Apr. 18, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'FICO | ' |
Entity Registrant Name | 'FAIR ISAAC CORP | ' |
Entity Central Index Key | '0000814547 | ' |
Current Fiscal Year End Date | '--09-30 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 34,272,130 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $108,176 | $83,178 |
Accounts receivable, net | 140,368 | 143,733 |
Prepaid expenses and other current assets | 21,082 | 22,277 |
Total current assets | 269,626 | 249,188 |
Marketable securities available for sale | 8,300 | 7,107 |
Other investments | 11,033 | 11,033 |
Property and equipment, net | 39,232 | 45,155 |
Goodwill | 778,177 | 773,931 |
Intangible assets, net | 52,362 | 57,361 |
Deferred income taxes | 12,361 | 11,132 |
Other assets | 6,162 | 6,640 |
Total assets | 1,177,253 | 1,161,547 |
Current liabilities: | ' | ' |
Accounts payable | 18,373 | 19,216 |
Accrued compensation and employee benefits | 36,709 | 39,281 |
Other accrued liabilities | 32,493 | 35,202 |
Deferred revenue | 55,586 | 49,181 |
Current maturities on debt | 36,000 | 23,000 |
Total current liabilities | 179,161 | 165,880 |
Senior notes | 447,000 | 447,000 |
Other liabilities | 17,511 | 17,990 |
Total liabilities | 643,672 | 630,870 |
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 34,257 and 34,786 shares outstanding at March 31, 2014 and September 30, 2013, respectively) | 343 | 348 |
Paid-in-capital | 1,113,466 | 1,110,198 |
Treasury stock, at cost (54,600 and 54,071 shares at March 31, 2014 and September 30, 2013, respectively) | -1,794,652 | -1,751,057 |
Retained earnings | 1,228,434 | 1,192,096 |
Accumulated other comprehensive loss | -14,010 | -20,908 |
Total stockholders' equity | 533,581 | 530,677 |
Total liabilities and stockholders' equity | $1,177,253 | $1,161,547 |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
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 | 34,257 | 34,786 |
Treasury stock, shares | 54,600 | 54,071 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||||
Revenues: | ' | ' | ' | ' | ||||
Transactional and maintenance | $132,369 | $126,439 | $262,024 | $256,337 | ||||
Professional services | 34,619 | 34,109 | 68,905 | 66,446 | ||||
License | 18,474 | 18,777 | 38,876 | 46,562 | ||||
Total revenues | 185,462 | 179,325 | 369,805 | 369,345 | ||||
Operating expenses: | ' | ' | ' | ' | ||||
Cost of revenues | 58,183 | [1] | 58,856 | [1] | 115,502 | [1] | 115,004 | [1] |
Research and development | 19,690 | 16,021 | 37,782 | 30,573 | ||||
Selling, general and administrative | 65,944 | [1] | 67,638 | [1] | 132,933 | [1] | 137,303 | [1] |
Amortization of intangible assets | 2,908 | [1] | 3,604 | [1] | 5,921 | [1] | 6,976 | [1] |
Restructuring and acquisition-related | ' | ' | 3,660 | 3,289 | ||||
Total operating expenses | 146,725 | 146,119 | 295,798 | 293,145 | ||||
Operating income | 38,737 | 33,206 | 74,007 | 76,200 | ||||
Interest income | 10 | 9 | 16 | 30 | ||||
Interest expense | -7,109 | -7,855 | -14,241 | -15,735 | ||||
Other income (expense), net | -351 | 27 | -1,312 | -65 | ||||
Income before income taxes | 31,287 | 25,387 | 58,470 | 60,430 | ||||
Provision for income taxes | 10,536 | 6,892 | 20,742 | 18,514 | ||||
Net income | 20,751 | 18,495 | 37,728 | 41,916 | ||||
Other comprehensive income (loss): | ' | ' | ' | ' | ||||
Foreign currency translation adjustments | 2,893 | -13,030 | 6,898 | -14,421 | ||||
Comprehensive income | $23,644 | $5,465 | $44,626 | $27,495 | ||||
Earnings per share: | ' | ' | ' | ' | ||||
Basic | $0.60 | $0.52 | $1.09 | $1.19 | ||||
Diluted | $0.59 | $0.51 | $1.06 | $1.15 | ||||
Shares used in computing earnings per share: | ' | ' | ' | ' | ||||
Basic | 34,500 | 35,664 | 34,705 | 35,350 | ||||
Diluted | 35,311 | 36,492 | 35,670 | 36,318 | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4 to the condensed consolidated financial statements. |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (USD $) | Total | Common Stock | Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
In Thousands | ||||||
Beginning Balance at Sep. 30, 2013 | $530,677 | $348 | $1,110,198 | ($1,751,057) | $1,192,096 | ($20,908) |
Beginning Balance (in shares) at Sep. 30, 2013 | ' | 34,786 | ' | ' | ' | ' |
Share-based compensation | 16,286 | ' | 16,286 | ' | ' | ' |
Issuance of treasury stock under employee stock plans (in shares) | ' | 658 | ' | ' | ' | ' |
Issuance of treasury stock under employee stock plans | 3,685 | 7 | -17,715 | 21,393 | ' | ' |
Tax effect from share-based payment arrangements | 4,697 | ' | 4,697 | ' | ' | ' |
Repurchases of common stock (shares) | ' | -1,187 | ' | ' | ' | ' |
Repurchases of common stock | -65,000 | -12 | ' | -64,988 | ' | ' |
Dividends paid ($0.04 per share) | -1,390 | ' | ' | ' | -1,390 | ' |
Net income | 37,728 | ' | ' | ' | 37,728 | ' |
Foreign currency translation adjustments | 6,898 | ' | ' | ' | ' | 6,898 |
Ending Balance at Mar. 31, 2014 | $533,581 | $343 | $1,113,466 | ($1,794,652) | $1,228,434 | ($14,010) |
Ending Balance (in shares) at Mar. 31, 2014 | ' | 34,257 | ' | ' | ' | ' |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical) (USD $) | 6 Months Ended |
Mar. 31, 2014 | |
Dividends paid, per share | $0.04 |
CONDENSED_CONSOLIDATED_STATEME3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net income | $37,728 | $41,916 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 16,012 | 16,433 |
Share-based compensation | 16,286 | 12,245 |
Deferred income taxes | -5,073 | -3,499 |
Tax effect from share-based payment arrangements | 4,697 | 1,497 |
Excess tax benefits from share-based payment arrangements | -5,078 | -4,251 |
Net amortization of premium on marketable securities | ' | 8 |
Provision for doubtful accounts, net | 591 | 274 |
Net loss on sales of property and equipment | 3 | 377 |
Changes in operating assets and liabilities: | ' | ' |
Accounts receivable | 3,687 | 9,634 |
Prepaid expenses and other assets | 930 | 2,290 |
Accounts payable | -734 | 3,009 |
Accrued compensation and employee benefits | -2,740 | -13,632 |
Other liabilities | 4,651 | 439 |
Deferred revenue | 4,127 | 2,214 |
Net cash provided by operating activities | 75,087 | 68,954 |
Cash flows from investing activities: | ' | ' |
Purchases of property and equipment | -4,296 | -17,123 |
Proceeds from maturities of marketable securities | ' | 22,000 |
Cash paid for acquisitions, net of cash acquired | ' | -28,438 |
Distribution from cost method investees | ' | 50 |
Net cash used in investing activities | -4,296 | -23,511 |
Cash flows from financing activities: | ' | ' |
Proceeds from revolving line of credit | 23,000 | ' |
Payments on revolving line of credit and other short-term loans | -10,000 | -2,933 |
Proceeds from issuance of treasury stock under employee stock plans | 3,685 | 15,998 |
Dividends paid | -1,390 | -1,416 |
Repurchases of common stock | -67,141 | ' |
Excess tax benefits from share-based payment arrangements | 5,078 | 4,251 |
Net cash provided by (used in) financing activities | -46,768 | 15,900 |
Effect of exchange rate changes on cash | 975 | -1,802 |
Increase in cash and cash equivalents | 24,998 | 59,541 |
Cash and cash equivalents, beginning of period | 83,178 | 71,609 |
Cash and cash equivalents, end of period | 108,176 | 131,150 |
Supplemental disclosures of cash flow information: | ' | ' |
Cash paid for income taxes, net of refunds | 9,819 | 18,160 |
Cash paid for interest | 13,983 | 15,474 |
Supplemental disclosures of non-cash investing and financing activities: | ' | ' |
Purchase of property and equipment included in accounts payable | $462 | $826 |
Nature_of_Business
Nature of Business | 6 Months Ended |
Mar. 31, 2014 | |
Nature of Business | ' |
1. Nature of Business | |
Fair Isaac Corporation | |
Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations and public agencies. | |
In these condensed consolidated financial statements, FICO is referred to as “we,” “us,” “our,” or “FICO”. | |
Principles of Consolidation and Basis of Presentation | |
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included in this Form 10-Q all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended September 30, 2013. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. | |
The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | |
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. | |
New Accounting Pronouncements Recently Issued or Adopted | |
In July 2013, the Financial Accounting Standards Board (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 condensed consolidated financial statements. |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value Measurements | ' | ||||||||
2. Fair Value Measurements | |||||||||
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. | |||||||||
• | Level 1 – uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities. | ||||||||
• | Level 2 – uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We do not have any assets that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2014 and September 30, 2013. | ||||||||
• | Level 3 – uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2014 and September 30, 2013. | ||||||||
The following table represents financial assets that we measured at fair value on a recurring basis at March 31, 2014 and September 30, 2013: | |||||||||
March 31, 2014 | Active Markets for | Fair Value as of | |||||||
Identical Instruments | March 31, 2014 | ||||||||
(Level 1) | |||||||||
Assets: | |||||||||
Cash equivalents (1) | $ | 8,932 | $ | 8,932 | |||||
Marketable securities (2) | 8,300 | 8,300 | |||||||
Total | $ | 17,232 | $ | 17,232 | |||||
September 30, 2013 | Active Markets for | Fair Value as of | |||||||
Identical Instruments | September 30, 2013 | ||||||||
(Level 1) | |||||||||
Assets: | |||||||||
Cash equivalents (1) | $ | 685 | $ | 685 | |||||
Marketable securities (2) | 7,107 | 7,107 | |||||||
Total | $ | 7,792 | $ | 7,792 | |||||
-1 | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. Not included in this table are cash deposits of $99.2 million and $82.5 million at March 31, 2014 and September 30, 2013, respectively. | ||||||||
-2 | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities available for sale on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. | ||||||||
Where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing applies to our Level 1 investments. To the extent quoted prices in active markets for assets or liabilities are not available, the valuation techniques used to measure the fair values of our financial assets incorporate market inputs, which include reported trades, broker/dealer quotes, benchmark yields, issuer spreads, benchmark securities and other inputs derived from or corroborated by observable market data. This methodology would apply to our Level 2 investments. We have not changed our valuation techniques in measuring the fair value of any financial assets and liabilities during the period. | |||||||||
For the fair value of our derivative instruments and senior notes, see Note 3 and Note 7 to the condensed consolidated financial statements, respectively. | |||||||||
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | |||||||||
Assets and liabilities measured at fair value on a nonrecurring basis primarily include goodwill and finite-lived intangible assets which are measured at fair value for the purposes of our annual impairment assessment. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Derivative Financial Instruments | ' | ||||||||||||||||
3. Derivative Financial Instruments | |||||||||||||||||
We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their respective functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro and Canadian dollar. | |||||||||||||||||
Foreign-currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income (expense), net. The forward contracts are not designated as hedges and are marked to market through other income (expense), net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months. | |||||||||||||||||
The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2014 and September 30, 2013: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Contract Amount | Fair Value | ||||||||||||||||
Foreign | US$ | US$ | |||||||||||||||
Currency | |||||||||||||||||
(In thousands) | |||||||||||||||||
Sell foreign currency: | |||||||||||||||||
Canadian dollar (CAD) | CAD | 7,150 | $ | 6,469 | $ | — | |||||||||||
Euro (EUR) | EUR | 4,100 | $ | 5,670 | $ | — | |||||||||||
Buy foreign currency: | |||||||||||||||||
British pound (GBP) | GBP | 5,014 | $ | 8,350 | $ | — | |||||||||||
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 | $ | — | |||||||||||
The foreign currency forward contracts were entered into on March 31, 2014 and September 30, 2013, respectively; therefore, their fair value was $0 on each of these dates. | |||||||||||||||||
Gains (losses) on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Foreign currency forward contracts | $ | 194 | $ | (728 | ) | $ | 532 | $ | (859 | ) |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||
4. Goodwill and Intangible Assets | |||||||||||||||||
Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Cost of revenues | $ | 1,823 | $ | 1,673 | $ | 3,622 | $ | 3,144 | |||||||||
Selling, general and administrative expenses | 1,085 | 1,931 | 2,299 | 3,832 | |||||||||||||
$ | 2,908 | $ | 3,604 | $ | 5,921 | $ | 6,976 | ||||||||||
Cost of revenues reflects our amortization of completed technology and selling, general and administrative expenses reflects our amortization of other intangible assets. Intangible assets, gross were $140.4 million and $141.2 million as of March 31, 2014 and September 30, 2013, respectively. | |||||||||||||||||
Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2014, was as follows (in thousands): | |||||||||||||||||
Year Ended September 30, | |||||||||||||||||
2014 (excluding the six months ended March 31, 2014) | $ | 5,810 | |||||||||||||||
2015 | 11,619 | ||||||||||||||||
2016 | 11,390 | ||||||||||||||||
2017 | 10,239 | ||||||||||||||||
2018 | 2,893 | ||||||||||||||||
Thereafter | 10,411 | ||||||||||||||||
$ | 52,362 | ||||||||||||||||
The following table summarizes changes to goodwill during the six months ended March 31, 2014, both in total and as allocated to our segments: | |||||||||||||||||
Applications | Scores | Tools | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at September 30, 2013 | $ | 559,538 | $ | 146,648 | $ | 67,745 | $ | 773,931 | |||||||||
Adjustments related to prior acquisitions | (770 | ) | — | — | (770 | ) | |||||||||||
Foreign currency translation adjustment | 4,153 | — | 863 | 5,016 | |||||||||||||
Balance at March 31, 2014 | $ | 562,921 | $ | 146,648 | $ | 68,608 | $ | 778,177 | |||||||||
Composition_of_Certain_Financi
Composition of Certain Financial Statement Captions | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Composition of Certain Financial Statement Captions | ' | ||||||||
5. Composition of Certain Financial Statement Captions | |||||||||
The following table summarizes property and equipment, and the related accumulated depreciation and amortization at March 31, 2014 and September 30, 2013: | |||||||||
March 31, | September 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Property and equipment | $ | 179,125 | $ | 174,822 | |||||
Less: accumulated depreciation and amortization | (139,893 | ) | (129,667 | ) | |||||
$ | 39,232 | $ | 45,155 | ||||||
Revolving_Line_of_Credit
Revolving Line of Credit | 6 Months Ended |
Mar. 31, 2014 | |
Revolving Line of Credit | ' |
6. 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 our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate 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 March 31, 2014, we had $28.0 million in borrowings outstanding at an interest rate of 1.285% and were in compliance with all financial covenants under this credit facility. |
Senior_Notes
Senior Notes | 6 Months Ended |
Mar. 31, 2014 | |
Senior Notes | ' |
7. Senior Notes | |
On May 7, 2008, we issued $275 million of senior notes in a private placement to a group of institutional investors (the “2008 Senior Notes”). The 2008 Senior Notes were issued in four series with maturities ranging from 5 to 10 years. The outstanding 2008 Senior Notes’ weighted average interest rate is 7.0% and the weighted average maturity is 8.8 years. On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes” and, with the 2008 Senior Notes, the “Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The 2010 Senior Notes’ weighted average interest rate is 5.2% and the weighted average maturity is 8.0 years. The Senior Notes require interest payments semi-annually and also include certain restrictive covenants. As of March 31, 2014, we were in compliance with all financial covenants which include the maintenance of consolidated net debt to consolidated EBITDA ratio and a fixed charge coverage ratio. The issuance of the Senior Notes also required us to make certain covenants typical of unsecured facilities. The carrying value of the Senior Notes was $455.0 million as of March 31, 2014 and September 30, 2013. The fair value of the Senior Notes was $466.6 million and $462.4 million as of March 31, 2014 and September 30, 2013, respectively. We measure the fair value of the Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities. |
Restructuring_Expenses
Restructuring Expenses | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Restructuring Expenses | ' | ||||||||||||||||
8. Restructuring Expenses | |||||||||||||||||
The following table summarizes our restructuring accruals and certain FICO facility closures. These balances, which are expected to be paid by the end of our fiscal 2014, are recorded in other accrued current liabilities within the accompanying condensed consolidated balance sheets. | |||||||||||||||||
Accrual at | Expense | Cash | Accrual at | ||||||||||||||
September 30, | Additions | Payments | March 31, 2014 | ||||||||||||||
2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Facilities charges | $ | 1,732 | $ | — | $ | (1,250 | ) | $ | 482 | ||||||||
Employee separation | — | 3,660 | (3,477 | ) | 183 | ||||||||||||
$ | 1,732 | $ | 3,660 | $ | (4,727 | ) | $ | 665 | |||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Mar. 31, 2014 | |
Income Taxes | ' |
9. Income Taxes | |
Effective Tax Rate | |
The effective income tax rate was 33.7% and 27.1% during the quarters ended March 31, 2014 and 2013, respectively, and 35.5% and 30.6% during the six months ended March 31, 2014 and 2013, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the respective full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. Our effective tax rate year over year was negatively impacted by: the expiration of the U.S. Federal Research and Development credit; a one-time state audit adjustment; an adjustment for deferred tax assets due to a change in the tax rate of one of our international jurisdictions; and a higher percentage of revenue expected in higher taxing jurisdictions. | |
The total unrecognized tax benefit for uncertain tax positions at March 31, 2014 and September 30, 2013 is estimated to be approximately $6.4 million and $9.0 million, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. As of March 31, 2014 and September 30, 2013, we have accrued interest of $0.4 million and $0.9 million, respectively, related to unrecognized tax benefits. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings Per Share | ' | ||||||||||||||||
10. Earnings Per Share | |||||||||||||||||
The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and six months ended March 31, 2014 and 2013: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Numerator for diluted and basic earnings per share: | |||||||||||||||||
Net Income | $ | 20,751 | $ | 18,495 | $ | 37,728 | $ | 41,916 | |||||||||
Denominator – share: | |||||||||||||||||
Basic weighted-average shares | 34,500 | 35,664 | 34,705 | 35,350 | |||||||||||||
Effect of dilutive securities | 811 | 828 | 965 | 968 | |||||||||||||
Diluted weighted-average shares | 35,311 | 36,492 | 35,670 | 36,318 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.52 | $ | 1.09 | $ | 1.19 | |||||||||
Diluted | $ | 0.59 | $ | 0.51 | $ | 1.06 | $ | 1.15 | |||||||||
We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the options’ exercise prices exceed the average market price of our common stock as their inclusion would be antidilutive. There were approximately 14,000 and 177,000 options excluded for the quarters ended March 31, 2014 and 2013, respectively. There were approximately 7,000 and 217,000 options excluded for the six months ended March 31, 2014 and 2013, respectively. |
Segment_Information
Segment Information | 6 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Segment Information | ' | ||||||||||||||||||||
11. 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 broad-based incentive expense, share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above. We have recast certain prior period amounts within this note to conform to the way we internally managed and monitored segment performance during the current fiscal year, reflecting immaterial movements of business activities between segments and changes in cost allocations. | |||||||||||||||||||||
The following tables summarize segment information for the quarters and six months ended March 31, 2014 and 2013: | |||||||||||||||||||||
Quarter Ended March 31, 2014 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 76,898 | $ | 46,560 | $ | 8,911 | $ | — | $ | 132,369 | |||||||||||
Professional services | 28,373 | 777 | 5,469 | — | 34,619 | ||||||||||||||||
License | 10,339 | 521 | 7,614 | — | 18,474 | ||||||||||||||||
Total segment revenues | 115,610 | 47,858 | 21,994 | — | 185,462 | ||||||||||||||||
Segment operating expense | (78,951 | ) | (10,939 | ) | (20,804 | ) | (24,072 | ) | (134,766 | ) | |||||||||||
Segment operating income | $ | 36,659 | $ | 36,919 | $ | 1,190 | $ | (24,072 | ) | 50,696 | |||||||||||
Unallocated share-based compensation expense | (9,051 | ) | |||||||||||||||||||
Unallocated amortization expense | (2,908 | ) | |||||||||||||||||||
Operating income | 38,737 | ||||||||||||||||||||
Unallocated interest income | 10 | ||||||||||||||||||||
Unallocated interest expense | (7,109 | ) | |||||||||||||||||||
Unallocated other expense, net | (351 | ) | |||||||||||||||||||
Income before income taxes | $ | 31,287 | |||||||||||||||||||
Depreciation expense | $ | 3,461 | $ | 198 | $ | 622 | $ | 656 | $ | 4,937 | |||||||||||
Quarter Ended March 31, 2013 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 76,012 | $ | 42,206 | $ | 8,221 | $ | — | $ | 126,439 | |||||||||||
Professional services | 27,315 | 1,624 | 5,170 | — | 34,109 | ||||||||||||||||
License | 13,888 | 232 | 4,657 | — | 18,777 | ||||||||||||||||
Total segment revenues | 117,215 | 44,062 | 18,048 | — | 179,325 | ||||||||||||||||
Segment operating expense | (86,285 | ) | (12,934 | ) | (15,438 | ) | (21,445 | ) | (136,102 | ) | |||||||||||
Segment operating income | $ | 30,930 | $ | 31,128 | $ | 2,610 | $ | (21,445 | ) | 43,223 | |||||||||||
Unallocated share-based compensation expense | (6,413 | ) | |||||||||||||||||||
Unallocated amortization expense | (3,604 | ) | |||||||||||||||||||
Operating income | 33,206 | ||||||||||||||||||||
Unallocated interest income | 9 | ||||||||||||||||||||
Unallocated interest expense | (7,855 | ) | |||||||||||||||||||
Unallocated other income, net | 27 | ||||||||||||||||||||
Income before income taxes | $ | 25,387 | |||||||||||||||||||
Depreciation expense | $ | 3,490 | $ | 223 | $ | 480 | $ | 663 | $ | 4,856 | |||||||||||
Six Months Ended March 31, 2014 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 154,677 | $ | 89,878 | $ | 17,469 | $ | — | $ | 262,024 | |||||||||||
Professional services | 55,160 | 1,366 | 12,379 | — | 68,905 | ||||||||||||||||
License | 17,689 | 3,794 | 17,393 | — | 38,876 | ||||||||||||||||
Total segment revenues | 227,526 | 95,038 | 47,241 | — | 369,805 | ||||||||||||||||
Segment operating expense | (160,913 | ) | (21,314 | ) | (41,875 | ) | (45,829 | ) | (269,931 | ) | |||||||||||
Segment operating income | $ | 66,613 | $ | 73,724 | $ | 5,366 | $ | (45,829 | ) | 99,874 | |||||||||||
Unallocated share-based compensation expense | (16,286 | ) | |||||||||||||||||||
Unallocated amortization expense | (5,921 | ) | |||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,660 | ) | |||||||||||||||||||
Operating income | 74,007 | ||||||||||||||||||||
Unallocated interest income | 16 | ||||||||||||||||||||
Unallocated interest expense | (14,241 | ) | |||||||||||||||||||
Unallocated other expense, net | (1,312 | ) | |||||||||||||||||||
Income before income taxes | $ | 58,470 | |||||||||||||||||||
Depreciation expense | $ | 7,098 | $ | 410 | $ | 1,236 | $ | 1,347 | $ | 10,091 | |||||||||||
Six Months Ended March 31, 2013 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 155,637 | $ | 84,643 | $ | 16,057 | $ | — | $ | 256,337 | |||||||||||
Professional services | 53,474 | 2,527 | 10,445 | — | 66,446 | ||||||||||||||||
License | 32,811 | 339 | 13,412 | — | 46,562 | ||||||||||||||||
Total segment revenues | 241,922 | 87,509 | 39,914 | — | 369,345 | ||||||||||||||||
Segment operating expense | (166,751 | ) | (25,480 | ) | (30,910 | ) | (47,494 | ) | (270,635 | ) | |||||||||||
Segment operating income | $ | 75,171 | $ | 62,029 | $ | 9,004 | $ | (47,494 | ) | 98,710 | |||||||||||
Unallocated share-based compensation expense | (12,245 | ) | |||||||||||||||||||
Unallocated amortization expense | (6,976 | ) | |||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,289 | ) | |||||||||||||||||||
Operating income | 76,200 | ||||||||||||||||||||
Unallocated interest income | 30 | ||||||||||||||||||||
Unallocated interest expense | (15,735 | ) | |||||||||||||||||||
Unallocated other expense, net | (65 | ) | |||||||||||||||||||
Income before income taxes | $ | 60,430 | |||||||||||||||||||
Depreciation expense | $ | 6,775 | $ | 439 | $ | 951 | $ | 1,292 | $ | 9,457 | |||||||||||
Contingencies
Contingencies | 6 Months Ended |
Mar. 31, 2014 | |
Contingencies | ' |
12. Contingencies | |
We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have material exposure on an aggregate basis. |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Mar. 31, 2014 | |
Subsequent Events | ' |
13. Subsequent Events | |
On April 1, 2014, we acquired 100% of the common stock of InfoCentricity, Inc. (“InfoCentricity”) for approximately $8.3 million in cash. InfoCentricity is a software-as-a-service-based predictive analytics software company that allows FICO to immediately broaden its offering for predictive analytics modeling and decision strategies. FICO will leverage the InfoCentricity products through availability to the FICO Analytic Cloud as well as an on premise offering for organizations across all industries. The pro forma impact of this acquisition is not expected to be material to our results of operations. | |
In April 2014, our Board of Directors approved a stock repurchase program following expiration of a similar program approved in August 2012. The new program is open-ended and authorizes repurchases of shares of our common stock up to an aggregate cost of $150.0 million in the open market or in negotiated transactions. |
Nature_of_Business_Policies
Nature of Business (Policies) | 6 Months Ended |
Mar. 31, 2014 | |
Fair Isaac Corporation | ' |
Fair Isaac Corporation | |
Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, healthcare organizations and public agencies. | |
In these condensed consolidated financial statements, FICO is referred to as “we,” “us,” “our,” or “FICO”. | |
Principles of Consolidation and Basis of Presentation | ' |
Principles of Consolidation and Basis of Presentation | |
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included in this Form 10-Q all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended September 30, 2013. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. | |
The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. | |
Use of Estimates | ' |
Use of Estimates | |
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. | |
New Accounting Pronouncements Recently Issued or Adopted | ' |
New Accounting Pronouncements Recently Issued or Adopted | |
In July 2013, the Financial Accounting Standards Board (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 condensed consolidated financial statements. |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Fair Value, Assets Measured on Recurring Basis | ' | ||||||||
The following table represents financial assets that we measured at fair value on a recurring basis at March 31, 2014 and September 30, 2013: | |||||||||
March 31, 2014 | Active Markets for | Fair Value as of | |||||||
Identical Instruments | March 31, 2014 | ||||||||
(Level 1) | |||||||||
Assets: | |||||||||
Cash equivalents (1) | $ | 8,932 | $ | 8,932 | |||||
Marketable securities (2) | 8,300 | 8,300 | |||||||
Total | $ | 17,232 | $ | 17,232 | |||||
September 30, 2013 | Active Markets for | Fair Value as of | |||||||
Identical Instruments | September 30, 2013 | ||||||||
(Level 1) | |||||||||
Assets: | |||||||||
Cash equivalents (1) | $ | 685 | $ | 685 | |||||
Marketable securities (2) | 7,107 | 7,107 | |||||||
Total | $ | 7,792 | $ | 7,792 | |||||
-1 | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. Not included in this table are cash deposits of $99.2 million and $82.5 million at March 31, 2014 and September 30, 2013, respectively. | ||||||||
-2 | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities available for sale on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. |
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | ' | ||||||||||||||||
The following tables summarize our outstanding foreign currency forward contracts, by currency, at March 31, 2014 and September 30, 2013: | |||||||||||||||||
March 31, 2014 | |||||||||||||||||
Contract Amount | Fair Value | ||||||||||||||||
Foreign | US$ | US$ | |||||||||||||||
Currency | |||||||||||||||||
(In thousands) | |||||||||||||||||
Sell foreign currency: | |||||||||||||||||
Canadian dollar (CAD) | CAD | 7,150 | $ | 6,469 | $ | — | |||||||||||
Euro (EUR) | EUR | 4,100 | $ | 5,670 | $ | — | |||||||||||
Buy foreign currency: | |||||||||||||||||
British pound (GBP) | GBP | 5,014 | $ | 8,350 | $ | — | |||||||||||
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 | $ | — | |||||||||||
Schedule of Derivative Instruments, Gain (Loss) in Statement of Financial Performance | ' | ||||||||||||||||
Gains (losses) on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Foreign currency forward contracts | $ | 194 | $ | (728 | ) | $ | 532 | $ | (859 | ) |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Schedule of Amortization Expense | ' | ||||||||||||||||
Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands) | |||||||||||||||||
Cost of revenues | $ | 1,823 | $ | 1,673 | $ | 3,622 | $ | 3,144 | |||||||||
Selling, general and administrative expenses | 1,085 | 1,931 | 2,299 | 3,832 | |||||||||||||
$ | 2,908 | $ | 3,604 | $ | 5,921 | $ | 6,976 | ||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | ' | ||||||||||||||||
Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2014, was as follows (in thousands): | |||||||||||||||||
Year Ended September 30, | |||||||||||||||||
2014 (excluding the six months ended March 31, 2014) | $ | 5,810 | |||||||||||||||
2015 | 11,619 | ||||||||||||||||
2016 | 11,390 | ||||||||||||||||
2017 | 10,239 | ||||||||||||||||
2018 | 2,893 | ||||||||||||||||
Thereafter | 10,411 | ||||||||||||||||
$ | 52,362 | ||||||||||||||||
Schedule of Goodwill | ' | ||||||||||||||||
The following table summarizes changes to goodwill during the six months ended March 31, 2014, both in total and as allocated to our segments: | |||||||||||||||||
Applications | Scores | Tools | Total | ||||||||||||||
(In thousands) | |||||||||||||||||
Balance at September 30, 2013 | $ | 559,538 | $ | 146,648 | $ | 67,745 | $ | 773,931 | |||||||||
Adjustments related to prior acquisitions | (770 | ) | — | — | (770 | ) | |||||||||||
Foreign currency translation adjustment | 4,153 | — | 863 | 5,016 | |||||||||||||
Balance at March 31, 2014 | $ | 562,921 | $ | 146,648 | $ | 68,608 | $ | 778,177 | |||||||||
Composition_of_Certain_Financi1
Composition of Certain Financial Statement Captions (Tables) | 6 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Property, Plant and Equipment | ' | ||||||||
The following table summarizes property and equipment, and the related accumulated depreciation and amortization at March 31, 2014 and September 30, 2013: | |||||||||
March 31, | September 30, | ||||||||
2014 | 2013 | ||||||||
(In thousands) | |||||||||
Property and equipment | $ | 179,125 | $ | 174,822 | |||||
Less: accumulated depreciation and amortization | (139,893 | ) | (129,667 | ) | |||||
$ | 39,232 | $ | 45,155 | ||||||
Restructuring_Expenses_Tables
Restructuring Expenses (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Schedule of Restructuring and Related Costs | ' | ||||||||||||||||
The following table summarizes our restructuring accruals and certain FICO facility closures. These balances, which are expected to be paid by the end of our fiscal 2014, are recorded in other accrued current liabilities within the accompanying condensed consolidated balance sheets. | |||||||||||||||||
Accrual at | Expense | Cash | Accrual at | ||||||||||||||
September 30, | Additions | Payments | March 31, 2014 | ||||||||||||||
2013 | |||||||||||||||||
(In thousands) | |||||||||||||||||
Facilities charges | $ | 1,732 | $ | — | $ | (1,250 | ) | $ | 482 | ||||||||
Employee separation | — | 3,660 | (3,477 | ) | 183 | ||||||||||||
$ | 1,732 | $ | 3,660 | $ | (4,727 | ) | $ | 665 | |||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | ' | ||||||||||||||||
The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters and six months ended March 31, 2014 and 2013: | |||||||||||||||||
Quarter Ended March 31, | Six Months Ended March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
(In thousands, except per share data) | |||||||||||||||||
Numerator for diluted and basic earnings per share: | |||||||||||||||||
Net Income | $ | 20,751 | $ | 18,495 | $ | 37,728 | $ | 41,916 | |||||||||
Denominator – share: | |||||||||||||||||
Basic weighted-average shares | 34,500 | 35,664 | 34,705 | 35,350 | |||||||||||||
Effect of dilutive securities | 811 | 828 | 965 | 968 | |||||||||||||
Diluted weighted-average shares | 35,311 | 36,492 | 35,670 | 36,318 | |||||||||||||
Earnings per share: | |||||||||||||||||
Basic | $ | 0.6 | $ | 0.52 | $ | 1.09 | $ | 1.19 | |||||||||
Diluted | $ | 0.59 | $ | 0.51 | $ | 1.06 | $ | 1.15 | |||||||||
Segment_Information_Tables
Segment Information (Tables) | 6 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | ' | ||||||||||||||||||||
The following tables summarize segment information for the quarters and six months ended March 31, 2014 and 2013: | |||||||||||||||||||||
Quarter Ended March 31, 2014 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 76,898 | $ | 46,560 | $ | 8,911 | $ | — | $ | 132,369 | |||||||||||
Professional services | 28,373 | 777 | 5,469 | — | 34,619 | ||||||||||||||||
License | 10,339 | 521 | 7,614 | — | 18,474 | ||||||||||||||||
Total segment revenues | 115,610 | 47,858 | 21,994 | — | 185,462 | ||||||||||||||||
Segment operating expense | (78,951 | ) | (10,939 | ) | (20,804 | ) | (24,072 | ) | (134,766 | ) | |||||||||||
Segment operating income | $ | 36,659 | $ | 36,919 | $ | 1,190 | $ | (24,072 | ) | 50,696 | |||||||||||
Unallocated share-based compensation expense | (9,051 | ) | |||||||||||||||||||
Unallocated amortization expense | (2,908 | ) | |||||||||||||||||||
Operating income | 38,737 | ||||||||||||||||||||
Unallocated interest income | 10 | ||||||||||||||||||||
Unallocated interest expense | (7,109 | ) | |||||||||||||||||||
Unallocated other expense, net | (351 | ) | |||||||||||||||||||
Income before income taxes | $ | 31,287 | |||||||||||||||||||
Depreciation expense | $ | 3,461 | $ | 198 | $ | 622 | $ | 656 | $ | 4,937 | |||||||||||
Quarter Ended March 31, 2013 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 76,012 | $ | 42,206 | $ | 8,221 | $ | — | $ | 126,439 | |||||||||||
Professional services | 27,315 | 1,624 | 5,170 | — | 34,109 | ||||||||||||||||
License | 13,888 | 232 | 4,657 | — | 18,777 | ||||||||||||||||
Total segment revenues | 117,215 | 44,062 | 18,048 | — | 179,325 | ||||||||||||||||
Segment operating expense | (86,285 | ) | (12,934 | ) | (15,438 | ) | (21,445 | ) | (136,102 | ) | |||||||||||
Segment operating income | $ | 30,930 | $ | 31,128 | $ | 2,610 | $ | (21,445 | ) | 43,223 | |||||||||||
Unallocated share-based compensation expense | (6,413 | ) | |||||||||||||||||||
Unallocated amortization expense | (3,604 | ) | |||||||||||||||||||
Operating income | 33,206 | ||||||||||||||||||||
Unallocated interest income | 9 | ||||||||||||||||||||
Unallocated interest expense | (7,855 | ) | |||||||||||||||||||
Unallocated other income, net | 27 | ||||||||||||||||||||
Income before income taxes | $ | 25,387 | |||||||||||||||||||
Depreciation expense | $ | 3,490 | $ | 223 | $ | 480 | $ | 663 | $ | 4,856 | |||||||||||
Six Months Ended March 31, 2014 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 154,677 | $ | 89,878 | $ | 17,469 | $ | — | $ | 262,024 | |||||||||||
Professional services | 55,160 | 1,366 | 12,379 | — | 68,905 | ||||||||||||||||
License | 17,689 | 3,794 | 17,393 | — | 38,876 | ||||||||||||||||
Total segment revenues | 227,526 | 95,038 | 47,241 | — | 369,805 | ||||||||||||||||
Segment operating expense | (160,913 | ) | (21,314 | ) | (41,875 | ) | (45,829 | ) | (269,931 | ) | |||||||||||
Segment operating income | $ | 66,613 | $ | 73,724 | $ | 5,366 | $ | (45,829 | ) | 99,874 | |||||||||||
Unallocated share-based compensation expense | (16,286 | ) | |||||||||||||||||||
Unallocated amortization expense | (5,921 | ) | |||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,660 | ) | |||||||||||||||||||
Operating income | 74,007 | ||||||||||||||||||||
Unallocated interest income | 16 | ||||||||||||||||||||
Unallocated interest expense | (14,241 | ) | |||||||||||||||||||
Unallocated other expense, net | (1,312 | ) | |||||||||||||||||||
Income before income taxes | $ | 58,470 | |||||||||||||||||||
Depreciation expense | $ | 7,098 | $ | 410 | $ | 1,236 | $ | 1,347 | $ | 10,091 | |||||||||||
Six Months Ended March 31, 2013 | |||||||||||||||||||||
Applications | Scores | Tools | Unallocated | Total | |||||||||||||||||
Corporate | |||||||||||||||||||||
Expenses | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Segment revenues: | |||||||||||||||||||||
Transactional and maintenance | $ | 155,637 | $ | 84,643 | $ | 16,057 | $ | — | $ | 256,337 | |||||||||||
Professional services | 53,474 | 2,527 | 10,445 | — | 66,446 | ||||||||||||||||
License | 32,811 | 339 | 13,412 | — | 46,562 | ||||||||||||||||
Total segment revenues | 241,922 | 87,509 | 39,914 | — | 369,345 | ||||||||||||||||
Segment operating expense | (166,751 | ) | (25,480 | ) | (30,910 | ) | (47,494 | ) | (270,635 | ) | |||||||||||
Segment operating income | $ | 75,171 | $ | 62,029 | $ | 9,004 | $ | (47,494 | ) | 98,710 | |||||||||||
Unallocated share-based compensation expense | (12,245 | ) | |||||||||||||||||||
Unallocated amortization expense | (6,976 | ) | |||||||||||||||||||
Unallocated restructuring and acquisition-related | (3,289 | ) | |||||||||||||||||||
Operating income | 76,200 | ||||||||||||||||||||
Unallocated interest income | 30 | ||||||||||||||||||||
Unallocated interest expense | (15,735 | ) | |||||||||||||||||||
Unallocated other expense, net | (65 | ) | |||||||||||||||||||
Income before income taxes | $ | 60,430 | |||||||||||||||||||
Depreciation expense | $ | 6,775 | $ | 439 | $ | 951 | $ | 1,292 | $ | 9,457 | |||||||||||
Financial_Assets_Measured_at_F
Financial Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 | ||
In Thousands, unless otherwise specified | ||||
Assets: | ' | ' | ||
Marketable securities available-for-sale | $8,300 | $7,107 | ||
Fair Value, Measurements, Recurring | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 8,932 | [1] | 685 | [1] |
Marketable securities available-for-sale | 8,300 | [2] | 7,107 | [2] |
Total | 17,232 | 7,792 | ||
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | ' | ' | ||
Assets: | ' | ' | ||
Cash equivalents | 8,932 | [1] | 685 | [1] |
Marketable securities available-for-sale | 8,300 | [2] | 7,107 | [2] |
Total | $17,232 | $7,792 | ||
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. Not included in this table are cash deposits of $99.2 million and $82.5 million at March 31, 2014 and September 30, 2013, respectively. | |||
[2] | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities available for sale on our condensed consolidated balance sheet at March 31, 2014 and September 30, 2013. |
Financial_Assets_Measured_at_F1
Financial Assets Measured at Fair Value on Recurring Basis (Parenthetical) (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Cash deposits | $99.20 | $82.50 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 |
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 | $0 |
Summary_of_Outstanding_Forward
Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts to Sell Canadian Dollar for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign Exchange Contracts To Purchase British Pounds With US Dollars |
USD ($) | 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 | ' | ' | $6,469 | 7,150 | $4,542 | 4,700 | ' | ' | $5,670 | € 4,100 | $7,307 | € 5,400 | ' | ' | $8,350 | £ 5,014 | $10,500 | £ 6,513 |
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 $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Foreign currency forward contracts | ' | ' | ' | ' |
Derivative [Line Items] | ' | ' | ' | ' |
Foreign currency forward contracts | $194 | ($728) | $532 | ($859) |
Amortization_Expense_Associate
Amortization Expense Associated with Intangible Assets (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ||||
Amortization expense of intangible assets | $2,908 | [1] | $3,604 | [1] | $5,921 | [1] | $6,976 | [1] |
Cost of revenues | ' | ' | ' | ' | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ||||
Amortization expense of intangible assets | 1,823 | 1,673 | 3,622 | 3,144 | ||||
Selling, general and administrative expenses | ' | ' | ' | ' | ||||
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' | ' | ||||
Amortization expense of intangible assets | $1,085 | $1,931 | $2,299 | $3,832 | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4 to the condensed consolidated financial statements. |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Line Items] | ' | ' |
Intangible assets, gross | $140.40 | $141.20 |
Estimated_Future_Intangible_As
Estimated Future Intangible Asset Amortization Expense (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Estimated future intangible asset amortization expense | ' | ' |
2014 (excluding the six months ended March 31, 2014) | $5,810 | ' |
2015 | 11,619 | ' |
2016 | 11,390 | ' |
2017 | 10,239 | ' |
2018 | 2,893 | ' |
Thereafter | 10,411 | ' |
Total | $52,362 | $57,361 |
Summary_of_Changes_to_Goodwill
Summary of Changes to Goodwill (Detail) (USD $) | 6 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2014 | Mar. 31, 2014 | Sep. 30, 2013 | Mar. 31, 2014 |
Applications | Scores | Scores | Tools | ||
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Beginning Balance | $773,931 | $559,538 | $146,648 | $146,648 | $67,745 |
Adjustments related to prior acquisitions | -770 | -770 | ' | ' | ' |
Foreign currency translation adjustment | 5,016 | 4,153 | ' | ' | 863 |
Ending Balance | $778,177 | $562,921 | $146,648 | $146,648 | $68,608 |
Property_and_Equipment_Detail
Property and Equipment (Detail) (USD $) | Mar. 31, 2014 | Sep. 30, 2013 |
In Thousands, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment | $179,125 | $174,822 |
Less: accumulated depreciation and amortization | -139,893 | -129,667 |
Total | $39,232 | $45,155 |
Revolving_Line_of_Credit_Addit
Revolving Line of Credit - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Mar. 31, 2014 |
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 | 300.00% |
Credit facility restrictive covenant, minimum fixed charge ratio | 250.00% |
Interest rate of borrowings outstanding | 1.29% |
Borrowings outstanding | $28 |
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 $) | Mar. 31, 2014 | Sep. 30, 2013 | 7-May-08 | 7-May-08 | 7-May-08 | Jul. 14, 2010 | Jul. 14, 2010 | Jul. 14, 2010 |
In Millions, 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 | ||
Contract | Minimum | Maximum | Contract | Minimum | Maximum | |||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Senior Notes issued in a private placement to a group of institutional investors | ' | ' | $275 | ' | ' | $245 | ' | ' |
Number of series of Senior Notes issued | ' | ' | 4 | ' | ' | 4 | ' | ' |
Senior Notes, maturity | ' | ' | ' | '5 years | '10 years | ' | '6 years | '10 years |
Senior Notes, weighted average interest rate | ' | ' | 7.00% | ' | ' | 5.20% | ' | ' |
Senior Notes, weighted average maturity (in years) | ' | ' | '8 years 9 months 18 days | ' | ' | '8 years | ' | ' |
Carrying value of Senior Notes | 455 | 455 | ' | ' | ' | ' | ' | ' |
Fair value of Senior Notes | $466.60 | $462.40 | ' | ' | ' | ' | ' | ' |
Summary_of_Restructuring_Accru
Summary of Restructuring Accruals and Certain Facility Closures (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning Balance | $1,732 |
Expense Additions | 3,660 |
Cash Payments | -4,727 |
Ending Balance | 665 |
Facilities charges | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Beginning Balance | 1,732 |
Cash Payments | -1,250 |
Ending Balance | 482 |
Employee separation | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Expense Additions | 3,660 |
Cash Payments | -3,477 |
Ending Balance | $183 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | Sep. 30, 2013 |
Income Taxes [Line Items] | ' | ' | ' | ' | ' |
Effective income tax rate | 33.70% | 27.10% | 35.50% | 30.60% | ' |
Unrecognized tax benefits, uncertain tax positions | $6.40 | ' | $6.40 | ' | $9 |
Unrecognized tax benefits, accrued interest | $0.40 | ' | $0.40 | ' | $0.90 |
Reconciliation_of_Numerators_a
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Numerator for diluted and basic earnings per share: | ' | ' | ' | ' |
Net income | $20,751 | $18,495 | $37,728 | $41,916 |
Denominator - share: | ' | ' | ' | ' |
Basic weighted-average shares | 34,500 | 35,664 | 34,705 | 35,350 |
Effect of dilutive securities | 811 | 828 | 965 | 968 |
Diluted weighted-average shares | 35,311 | 36,492 | 35,670 | 36,318 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.60 | $0.52 | $1.09 | $1.19 |
Diluted | $0.59 | $0.51 | $1.06 | $1.15 |
Earnings_Per_Share_Additional_
Earnings Per Share - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
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 | 14,000 | 177,000 | 7,000 | 217,000 |
Segment_Information_Additional
Segment Information - Additional Information (Detail) | 6 Months Ended |
Mar. 31, 2014 | |
Segment | |
Segment Reporting Information [Line Items] | ' |
Number of reportable segments | 3 |
Summary_of_Segment_Information
Summary of Segment Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Transactional and maintenance | $132,369 | $126,439 | $262,024 | $256,337 | ||||
Professional services | 34,619 | 34,109 | 68,905 | 66,446 | ||||
License | 18,474 | 18,777 | 38,876 | 46,562 | ||||
Total segment revenues | 185,462 | 179,325 | 369,805 | 369,345 | ||||
Segment operating expense | -146,725 | -146,119 | -295,798 | -293,145 | ||||
Unallocated share-based compensation expense | -9,051 | -6,413 | -16,286 | -12,245 | ||||
Unallocated amortization expense | -2,908 | [1] | -3,604 | [1] | -5,921 | [1] | -6,976 | [1] |
Unallocated restructuring and acquisition-related | ' | ' | -3,660 | -3,289 | ||||
Operating income | 38,737 | 33,206 | 74,007 | 76,200 | ||||
Unallocated interest income | 10 | 9 | 16 | 30 | ||||
Unallocated interest expense | -7,109 | -7,855 | -14,241 | -15,735 | ||||
Unallocated other expense, net | -351 | 27 | -1,312 | -65 | ||||
Income before income taxes | 31,287 | 25,387 | 58,470 | 60,430 | ||||
Depreciation expense | 4,937 | 4,856 | 10,091 | 9,457 | ||||
Operating Segments | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Segment operating expense | -134,766 | -136,102 | -269,931 | -270,635 | ||||
Operating income | 50,696 | 43,223 | 99,874 | 98,710 | ||||
Applications | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Transactional and maintenance | 76,898 | 76,012 | 154,677 | 155,637 | ||||
Professional services | 28,373 | 27,315 | 55,160 | 53,474 | ||||
License | 10,339 | 13,888 | 17,689 | 32,811 | ||||
Total segment revenues | 115,610 | 117,215 | 227,526 | 241,922 | ||||
Depreciation expense | 3,461 | 3,490 | 7,098 | 6,775 | ||||
Applications | Operating Segments | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Segment operating expense | -78,951 | -86,285 | -160,913 | -166,751 | ||||
Operating income | 36,659 | 30,930 | 66,613 | 75,171 | ||||
Scores | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Transactional and maintenance | 46,560 | 42,206 | 89,878 | 84,643 | ||||
Professional services | 777 | 1,624 | 1,366 | 2,527 | ||||
License | 521 | 232 | 3,794 | 339 | ||||
Total segment revenues | 47,858 | 44,062 | 95,038 | 87,509 | ||||
Depreciation expense | 198 | 223 | 410 | 439 | ||||
Scores | Operating Segments | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Segment operating expense | -10,939 | -12,934 | -21,314 | -25,480 | ||||
Operating income | 36,919 | 31,128 | 73,724 | 62,029 | ||||
Tools | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Transactional and maintenance | 8,911 | 8,221 | 17,469 | 16,057 | ||||
Professional services | 5,469 | 5,170 | 12,379 | 10,445 | ||||
License | 7,614 | 4,657 | 17,393 | 13,412 | ||||
Total segment revenues | 21,994 | 18,048 | 47,241 | 39,914 | ||||
Depreciation expense | 622 | 480 | 1,236 | 951 | ||||
Tools | Operating Segments | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Segment operating expense | -20,804 | -15,438 | -41,875 | -30,910 | ||||
Operating income | 1,190 | 2,610 | 5,366 | 9,004 | ||||
Unallocated Corporate Expenses | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Depreciation expense | 656 | 663 | 1,347 | 1,292 | ||||
Unallocated Corporate Expenses | Operating Segments | ' | ' | ' | ' | ||||
Segment revenues: | ' | ' | ' | ' | ||||
Segment operating expense | -24,072 | -21,445 | -45,829 | -47,494 | ||||
Operating income | ($24,072) | ($21,445) | ($45,829) | ($47,494) | ||||
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4 to the condensed consolidated financial statements. |
Subsequent_Events_Additional_I
Subsequent Events - Additional Information (Detail) (Subsequent Event, USD $) | 1 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Apr. 28, 2014 | Apr. 02, 2014 |
InfoCentricity Inc. | ||
Subsequent Event [Line Items] | ' | ' |
Common stock acquired | ' | 100.00% |
Business acquisition, cash paid | ' | $8.30 |
Stock repurchase program, authorized aggregate cost | $150 | ' |