Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2017 | Jan. 12, 2018 | |
Document And Entity Information [Abstract] | ||
Entity Registrant Name | FAIR ISAAC CORP | |
Trading Symbol | FICO | |
Entity Central Index Key | 814,547 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2017 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 30,073,085 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 94,213 | $ 105,618 |
Accounts receivable, net | 164,660 | 168,586 |
Prepaid expenses and other current assets | 40,263 | 36,727 |
Total current assets | 299,136 | 310,931 |
Marketable Securities | 15,816 | |
Marketable securities | 13,791 | |
Other investments | 11,734 | 11,724 |
Property and equipment, net | 38,808 | 40,703 |
Goodwill | 806,332 | 804,414 |
Intangible assets, net | 19,514 | 21,185 |
Deferred income taxes | 40,699 | 47,204 |
Other assets | 8,806 | 5,668 |
Total assets | 1,240,845 | 1,255,620 |
Current liabilities: | ||
Accounts payable | 19,201 | 19,510 |
Accrued compensation and employee benefits | 49,031 | 77,610 |
Other accrued liabilities | 25,305 | 32,104 |
Deferred revenue | 58,743 | 55,431 |
Current maturities on debt | 201,000 | 142,000 |
Total current liabilities | 353,280 | 326,655 |
Long-term debt | 462,834 | 462,801 |
Other liabilities | 39,089 | 39,627 |
Total liabilities | 855,203 | 829,083 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding) | 0 | 0 |
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 30,246 and 30,243 shares outstanding at December 31, 2017 and September 30, 2017, respectively) | 302 | 302 |
Paid-in-capital | 1,160,274 | 1,195,431 |
Treasury stock, at cost (58,611 and 58,614 shares at December 31, 2017 and September 30, 2017, respectively) | (2,337,205) | (2,301,097) |
Retained earnings | 1,625,694 | 1,598,395 |
Accumulated other comprehensive loss | (63,423) | (66,494) |
Total stockholders’ equity | 385,642 | 426,537 |
Total liabilities and stockholders’ equity | $ 1,240,845 | $ 1,255,620 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2017 | Sep. 30, 2017 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in usd per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 200,000,000 | 200,000,000 |
Common stock, shares issued | 88,857,000 | 88,857,000 |
Common stock, shares outstanding | 30,246,000 | 30,243,000 |
Treasury stock, shares | 58,611,000 | 58,614,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues: | |||
Transactional and maintenance | $ 174,662 | $ 153,660 | |
Professional services | 42,626 | 43,543 | |
License | 18,033 | 22,397 | |
Total revenues | 235,321 | 219,600 | |
Operating expenses: | |||
Cost of revenues | [1] | 74,359 | 69,997 |
Research and development | 28,974 | 26,142 | |
Selling, general and administrative | [1] | 90,296 | 85,214 |
Amortization of intangible assets | [1] | 1,788 | 3,320 |
Total operating expenses | 195,417 | 184,673 | |
Operating income | 39,904 | 34,927 | |
Interest expense, net | (6,460) | (6,172) | |
Other income (expense), net | 513 | (100) | |
Income before income taxes | 33,957 | 28,655 | |
Provision for income taxes | 6,658 | (9,246) | |
Net income | 27,299 | 37,901 | |
Other comprehensive income (loss): | |||
Foreign currency translation adjustments | 3,071 | (14,347) | |
Comprehensive income | $ 30,370 | $ 23,554 | |
Earnings per share: | |||
Basic (in dollars per share) | $ 0.91 | $ 1.22 | |
Diluted (in dollars per share) | $ 0.86 | $ 1.16 | |
Shares used in computing earnings per share: | |||
Basic (in shares) | 30,078 | 30,989 | |
Diluted (in shares) | 31,561 | 32,536 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Dec. 31, 2017 - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Paid-in-Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Loss |
Beginning Balance (in shares) at Sep. 30, 2017 | 30,243 | |||||
Beginning Balance at Sep. 30, 2017 | $ 426,537 | $ 302 | $ 1,195,431 | $ (2,301,097) | $ 1,598,395 | $ (66,494) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Share-based compensation | 16,510 | 16,510 | ||||
Issuance of treasury stock under employee stock plans (in shares) | 338 | |||||
Issuance of treasury stock under employee stock plans | (38,174) | $ 3 | (51,667) | 13,490 | ||
Repurchases of common stock (in shares) | (335) | |||||
Repurchases of common stock | (49,601) | $ (3) | (49,598) | |||
Net income | 27,299 | 27,299 | ||||
Foreign currency translation adjustments | 3,071 | 3,071 | ||||
Ending Balance (in shares) at Dec. 31, 2017 | 30,246 | |||||
Ending Balance at Dec. 31, 2017 | $ 385,642 | $ 302 | $ 1,160,274 | $ (2,337,205) | $ 1,625,694 | $ (63,423) |
CONDENSED CONSOLIDATED STATEME6
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 27,299 | $ 37,901 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 7,731 | 9,058 |
Share-based compensation | 16,510 | 14,519 |
Deferred income taxes | 6,717 | 0 |
Net gain on marketable securities | (90) | 0 |
Provision for doubtful accounts, net | 0 | 463 |
Net loss on sales of property and equipment | 9 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 4,656 | 8,253 |
Prepaid expenses and other assets | (6,527) | (16,876) |
Accounts payable | (119) | (725) |
Accrued compensation and employee benefits | (28,672) | (29,030) |
Other liabilities | (1,174) | (2,091) |
Deferred revenue | 2,437 | 11,506 |
Net cash provided by operating activities | 28,777 | 32,978 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (4,044) | (4,319) |
Proceeds from sales of marketable securities | 8 | 0 |
Purchases of marketable securities | (1,943) | 0 |
Net cash used in investing activities | (5,979) | (4,319) |
Cash flows from financing activities: | ||
Proceeds from revolving line of credit | 79,000 | 60,000 |
Payments on revolving line of credit | (20,000) | (10,000) |
Payments on debt issuance costs | (240) | 0 |
Proceeds from issuance of treasury stock under employee stock plans | 693 | 3,663 |
Taxes paid related to net share settlement of equity awards | (38,867) | (35,598) |
Dividends paid | 0 | (618) |
Repurchases of common stock | (55,263) | (30,442) |
Net cash used in financing activities | (34,677) | (12,995) |
Effect of exchange rate changes on cash | 474 | (3,489) |
Increase (decrease) in cash and cash equivalents | (11,405) | 12,175 |
Cash and cash equivalents, beginning of period | 105,618 | 75,926 |
Cash and cash equivalents, end of period | 94,213 | 88,101 |
Supplemental disclosures of cash flow information: | ||
Cash paid for income taxes, net of refunds | 2,221 | 7,463 |
Cash paid for interest | 7,087 | 5,851 |
Supplemental disclosures of non-cash investing and financing activities: | ||
Purchase of property and equipment included in accounts payable | $ 1,482 | $ 3,816 |
Nature of Business
Nature of Business | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Nature of Business | Nature of Business Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. In these condensed consolidated financial statements, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.” Principles of Consolidation and Basis of Presentation We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included in this Form 10-Q all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements in this Form 10-Q reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended September 30, 2017 . The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectibility of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No 2015-14, “ Deferral of the Effective Date ” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for our fiscal year beginning October 1, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). In March 2016, the FASB issued ASU No. 2016-08, “ Principal versus Agent Considerations (Reporting Revenue versus Net) ” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “ Identifying Performance Obligations and Licensing ” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “ Narrow-Scope Improvements and Practical Expedients ” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. We have established a cross-functional implementation team consisting of representatives across the organization to address the scope of work required to implement the recognition and disclosure requirements under the new standard. This cross-functional implementation team has developed a project plan, which includes evaluating customer contracts across the organization, developing policies, processes and tools to report financial results, and implementing and evaluating our internal controls over financial reporting that will be necessary under the new standard. We currently plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method. Our ability to adopt Topic 606 using the full retrospective method is dependent on system readiness, and the completion of our analysis of information necessary to restate prior period financial statements. As we continue to assess the new standard along with industry trends and additional interpretive guidance, we may adjust our implementation plan accordingly. We are continuing to assess the impact of adopting Topic 606 on our consolidated financial statements and believe the new standard will impact the following policies and disclosures: • Timing of revenue recognition of license revenue on term licenses and transactional revenue on guaranteed minimum fees related to our on-premises software products. Under the new standard, we expect to recognize revenue when control of the license is transferred to the customer, rather than at the date payments become due and payable or ratably over the term of the contract required under the current standard; • Presentation of contract balances. Under the new standard, when we enter into noncancellable contracts that provide unconditional rights to payment from our customers for services that we have not yet completed providing or services we will provide in the near future, we expect to present the unconditional rights as receivables, regardless of whether cash has been received from customers; • Required disclosures including information about remaining transaction price and when we expect to recognize revenue; and • Accounting for commissions under the new standard will result in the deferral of incremental commission costs for obtaining contracts. We do not currently expect Topic 606 to have a significant effect on the timing of revenue recognition for our maintenance or professional services revenues, or SaaS contracts. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ” (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance is effective for fiscal years and interim periods beginning after December 15, 2017, which means it will be effective for our fiscal year beginning October 1, 2018. ASU 2016-16 should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued. We do not believe that adoption of ASU 2016-16 will have a significant impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. |
Business Combinations
Business Combinations | 3 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations On May 19, 2016, we acquired 100% of the equity of QuadMetrics, Inc. (“QuadMetrics”) for $5.7 million in cash. We recorded $2.0 million of intangible assets, which are being amortized using the straight-line method over a weighted average useful life of approximately 4.0 years . We allocated $3.9 million of goodwill to our Applications segment that was not deductible for tax purposes. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities. • Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities. • Level 2 - uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We do not have any assets that are valued using inputs identified under a Level 2 hierarchy as of December 31, 2017 and September 30, 2017 . • 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 December 31, 2017 and September 30, 2017 . The following tables represent financial assets that we measured at fair value on a recurring basis at December 31, 2017 and September 30, 2017 : December 31, 2017 Active Markets for Identical Instruments (Level 1) Fair Value as of December 31, 2017 (In thousands) Assets: Cash equivalents (1) $ 4,105 $ 4,105 Marketable securities (2) 15,816 15,816 Total $ 19,921 $ 19,921 September 30, 2017 Active Markets for Fair Value as of September 30, 2017 (In thousands) Assets: Cash equivalents (1) $ 15,295 $ 15,295 Marketable securities (2) 13,791 13,791 Total $ 29,086 $ 29,086 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017 . Not included in these tables are cash deposits of $90.1 million and $90.3 million at December 31, 2017 and September 30, 2017 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017 . 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, respectively. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their respective functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound and Euro. 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 December 31, 2017 and September 30, 2017 : December 31, 2017 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 7,350 $ 8,825 $ — Buy foreign currency: British pound (GBP) GBP 5,398 $ 7,300 $ — Singapore dollar (SGD) SGD 7,734 $ 5,800 $ — September 30, 2017 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 5,050 $ 5,968 $ — Buy foreign currency: British pound (GBP) GBP 9,341 $ 12,500 $ — The foreign currency forward contracts were entered into on December 31, 2017 and September 30, 2017 , 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 December 31, 2017 2016 (In thousands) Gains (losses) on foreign currency forward contracts $ 194 $ (560 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: Quarter Ended December 31, 2017 2016 (In thousands) Cost of revenues $ 706 $ 1,686 Selling, general and administrative expenses 1,082 1,634 $ 1,788 $ 3,320 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 $ 112.1 million and $ 114.5 million as of December 31, 2017 and September 30, 2017 , respectively. Estimated future intangible asset amortization expense associated with intangible assets existing at December 31, 2017 was as follows (in thousands): Year Ended September 30, 2018 (excluding the quarter ended December 31, 2017) $ 4,803 2019 6,085 2020 3,689 2021 2,433 2022 2,287 Thereafter 217 $ 19,514 The following table summarizes changes to goodwill during the quarter ended December 31, 2017 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2017 $ 588,288 $ 146,648 $ 69,478 $ 804,414 Foreign currency translation adjustment 1,777 — 141 1,918 Balance at December 31, 2017 $ 590,065 $ 146,648 $ 69,619 $ 806,332 |
Composition of Certain Financia
Composition of Certain Financial Statement Captions | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Composition of Certain Financial Statement Captions | Composition of Certain Financial Statement Captions The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at December 31, 2017 and September 30, 2017 : December 31, September 30, (In thousands) Property and equipment $ 139,344 $ 135,360 Less: accumulated depreciation and amortization (100,536 ) (94,657 ) $ 38,808 $ 40,703 |
Revolving Line of Credit
Revolving Line of Credit | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | Revolving Line of Credit On November 17, 2017, we amended our credit agreement with a syndicate of banks, increasing our borrowing capacity under the unsecured revolving line of credit to $600 million . The revolving line of credit expires on December 30, 2019 . Proceeds from the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions and the repurchase of our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate, (b) the Federal Funds rate plus 0.500% and (c) the one-month LIBOR rate plus 1.000% , plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.875% and for LIBOR borrowings ranges from 1.000% to 1.875% , and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including maintaining a minimum fixed charge ratio of 2.5 and a maximum consolidated leverage ratio of 3.0 , subject to a step up to 3.5 following certain permitted acquisitions. The credit agreement also contains other covenants typical of unsecured facilities. As of December 31, 2017 , we had $420.0 million in borrowings outstanding at a weighted average interest rate of 2.655% , of which $350.0 million was classified as a long-term liability and recorded in long-term debt within the accompanying condensed consolidated balance sheets. We were in compliance with all financial covenants under this credit facility as of December 31, 2017 . |
Senior Notes
Senior Notes | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Senior Notes | Senior Notes On May 7, 2008, we issued $275 million of senior notes in a private placement to a group of institutional investors (the “2008 Senior Notes”). The 2008 Senior Notes were issued in four series with maturities ranging from 5 to 10 years. The outstanding 2008 Senior Notes’ weighted average interest rate is 7.2% and the weighted average maturity is 10.0 years . On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes” and, with the 2008 Senior Notes, the “Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The outstanding 2010 Senior Notes’ weighted average interest rate is 5.6% and the weighted average maturity is 9.8 years . The Senior Notes require interest payments semi-annually and contain certain restrictive covenants, including the maintenance of consolidated net debt to consolidated EBITDA ratio and a fixed charge coverage ratio. The purchase agreements for the Senior Notes also contain certain covenants typical of unsecured facilities. As of December 31, 2017 , we were in compliance with all financial covenants. The following table presents the carrying amounts and fair values for the Senior Notes at December 31, 2017 and September 30, 2017 : December 31, 2017 September 30, 2017 Carrying Fair Value Carrying Fair Value (In thousands) The 2008 Senior Notes $ 131,000 $ 132,814 $ 131,000 $ 134,250 The 2010 Senior Notes 113,000 117,669 113,000 119,106 Debt issuance costs (166 ) (166 ) (199 ) (199 ) Total $ 243,834 $ 250,317 $ 243,801 $ 253,157 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 | 3 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Expenses | Restructuring Expenses The following table summarizes our restructuring accruals related to facility closures and employee separation charges. The current portion and non-current portion is recorded in other accrued current liabilities and other long-term liabilities, respectively, within the accompanying condensed consolidated balance sheets. The balance for all the facilities charges will be paid by the end of fiscal 2020. The balance for all the employee separation costs will be paid by the end of the second quarter of fiscal 2018. Accrual at Cash Payments Accrual at September 30, 2017 December 31, 2017 (In thousands) Facilities charges $ 8,120 $ (702 ) $ 7,418 Employee separation 185 (126 ) 59 8,305 $ (828 ) 7,477 Less: current portion (3,077 ) (3,524 ) Non-current $ 5,228 $ 3,953 |
Income Taxes
Income Taxes | 3 Months Ended |
Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Effective Tax Rate The effective income tax rate was 19.6% and (32.3)% during the quarters ended December 31, 2017 and 2016 , respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The effective tax rate for the three months ended December 31, 2017 was significantly impacted by recording the impact of the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Tax Act makes broad and complex changes to the U.S. tax code that will affect our fiscal year ended September 30, 2018, including, but not limited to, (1) reducing the U.S. federal corporate tax rate and (2) requiring a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries that is payable over eight years. The Tax Act reduces the federal corporate tax rate to 21.0% effective January 1, 2018. In accordance with Section 15 of the Internal Revenue Code, we will utilize a blended rate of 24.5% for our fiscal 2018 tax year, by applying a prorated percentage of the number of days prior to and subsequent to the January 1, 2018 effective date. We recorded provisional charges for the re-measurement of the deferred tax assets of $5.6 million to our income tax expense related to long-term deferred tax assets and $1.3 million related to short-term deferred tax assets during the quarter ended December 31, 2017. The Deemed Repatriation Transition Tax (the “Transition Tax”) is a tax on previously untaxed accumulated earnings and profits (“E&P”) of certain of our foreign subsidiaries. To determine the amount of the Transition Tax, we must determine, in addition to other factors, the amount of post-1986 E&P of the relevant subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. We are able to make a reasonable estimate and recorded a provisional Transition Tax obligation of $4.9 million . On December 22, 2017, the SEC issued Staff Accounting Bulletin (“SAB 118”), which provides guidance on accounting for tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under ASC 740. In accordance with SAB 118, a company must reflect the income tax effects of those aspects of the Act for which the accounting under ASC 740 is complete. To the extent that a company’s accounting for certain income tax effects of the Tax Act is incomplete but it is able to determine a reasonable estimate, it must record a provisional estimate to be included in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply ASC 740 on the basis of the provision of the tax laws that were in effect immediately before the enactment of the Tax Act. While we are able to make reasonable estimates of the impact of the reduction in corporate rate and the deemed repatriation transition tax, the final impact of the Tax Act may differ from these estimates, due to, among other things, changes in our interpretations and assumptions, additional guidance that may be issued by the I.R.S., and actions we may take. W e are continuing to gather additional information to determine the final impact. The total unrecognized tax benefit for uncertain tax positions is estimated to be approximately $6.1 million and $6.5 million at December 31, 2017 and September 30, 2017 , respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.4 million related to unrecognized tax benefits as of December 31, 2017 and September 30, 2017 . |
Earnings per Share
Earnings per Share | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Share | Earnings per Share The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters ended December 31, 2017 and 2016 : Quarter Ended December 31, 2017 2016 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 27,299 $ 37,901 Denominator - share: Basic weighted-average shares 30,078 30,989 Effect of dilutive securities 1,483 1,547 Diluted weighted-average shares 31,561 32,536 Earnings per share: Basic $ 0.91 $ 1.22 Diluted $ 0.86 $ 1.16 We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were 3,000 options excluded for the quarter ended December 31, 2017. There were no options excluded for the quarter ended December 31, 2016. |
Segment Information
Segment Information | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information | Segment Information We are organized into the following three operating segments, each of which is a reportable segment, to align with internal management of our worldwide business operations based on product offerings. • Applications . This segment includes pre-configured decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud, collections and insurance claims management — as well as associated professional services. These applications are available to our customers as on-premises software, and many are available as hosted, software-as-a-service (“SaaS”) applications through the FICO ® Analytic Cloud. • Scores. This segment includes our business-to-business scoring solutions, our myFICO ® solutions for consumers and associated professional services. Our scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly. • Decision Management Software. This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our new FICO ® Decision Management Suite, as well as associated professional services. These tools are available to our customers as on-premises software or through the FICO ® Analytic Cloud. Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets, nor capital expenditures where depreciation amounts are allocated to the segments from their internal cost centers as described above. The following tables summarize segment information for the quarters ended December 31, 2017 and 2016 : Quarter Ended December 31, 2017 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 93,213 $ 69,574 $ 11,875 $ — $ 174,662 Professional services 34,853 278 7,495 — 42,626 License 13,343 63 4,627 — 18,033 Total segment revenues 141,409 69,915 23,997 — 235,321 Segment operating expense (102,619 ) (15,887 ) (31,853 ) (26,760 ) (177,119 ) Segment operating income (loss) $ 38,790 $ 54,028 $ (7,856 ) $ (26,760 ) 58,202 Unallocated share-based compensation expense (16,510 ) Unallocated amortization expense (1,788 ) Operating income 39,904 Unallocated interest expense, net (6,460 ) Unallocated other income, net 513 Income before income taxes $ 33,957 Depreciation expense $ 3,943 $ 155 $ 1,412 $ 284 $ 5,794 Quarter Ended December 31, 2016 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 84,881 $ 58,252 $ 10,527 $ — $ 153,660 Professional services 34,341 521 8,681 — 43,543 License 15,543 609 6,245 — 22,397 Total segment revenues 134,765 59,382 25,453 — 219,600 Segment operating expense (99,797 ) (13,319 ) (29,085 ) (24,633 ) (166,834 ) Segment operating income (loss) $ 34,968 $ 46,063 $ (3,632 ) $ (24,633 ) 52,766 Unallocated share-based compensation expense (14,519 ) Unallocated amortization expense (3,320 ) Operating income 34,927 Unallocated interest expense, net (6,172 ) Unallocated other expense, net (100 ) Income before income taxes $ 28,655 Depreciation expense $ 3,868 $ 266 $ 1,126 $ 349 $ 5,609 |
Contingencies
Contingencies | 3 Months Ended |
Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Contingencies | Contingencies We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have material exposure on an aggregate basis. |
Share-Based Payments
Share-Based Payments | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-Based Payments | 10. Share-Based Payments We maintain the 2012 Long-Term Incentive Plan (the “2012 Plan”) under which we grant equity awards, including 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 are eligible to receive awards under the 2012 Plan. We also have awards currently outstanding under the 1992 Long-term Incentive Plan, which was adopted in February 1992 and expired in February 2012. Stock option awards have a maximum term of seven years. In general, stock option awards and restricted stock unit awards not subject to market or performance conditions vest annually over four years. Restricted stock unit awards subject to market or performance conditions vest annually over three years based on the achievement of specified criteria. Stock Options The following table summarizes option activity during the quarter ended December 31, 2017: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding at October 1, 2017 1,230 $ 56.54 Granted 3 157.31 Exercised (21 ) 33.10 Outstanding at December 31, 2017 1,212 $ 57.19 2.90 $ 116,380 Exercisable at December 31, 2017 1,051 $ 53.34 2.68 $ 105,003 Vested and expected to vest at December 31, 2017 1,207 $ 57.06 2.89 $ 116,081 Restricted Stock Units The following table summarizes restricted stock unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 1,144 $ 97.95 Granted 358 157.11 Released (351 ) 86.88 Forfeited (5 ) 109.08 Outstanding at December 31, 2017 1,146 $ 119.76 Performance Share Units The following table summarizes performance share unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 204 $ 105.37 Granted 51 157.03 Released (95 ) 98.15 Outstanding at December 31, 2017 160 $ 126.27 Market Share Units The following table summarizes market share unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 131 $ 123.82 Granted 102 151.78 Released (119 ) 113.70 Outstanding at December 31, 2017 114 $ 159.34 |
Nature of Business (Policies)
Nature of Business (Policies) | 3 Months Ended |
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Fair Isaac Corporation | Fair Isaac Corporation Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers, telecommunications providers, pharmaceutical companies, healthcare organizations, public agencies and organizations in other industries. |
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, 2017 . The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectibility of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “ Revenue from Contracts with Customers (Topic 606) ” (“ASU 2014-09”). ASU 2014-09 requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. ASU 2014-09 will replace most existing revenue recognition guidance in U.S. Generally Accepted Accounting Principles when it becomes effective and permits the use of either the retrospective or cumulative effect transition method. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts. In August 2015, the FASB issued ASU No 2015-14, “ Deferral of the Effective Date ” (“ASU 2015-14”), which defers the effective date for ASU 2014-09 by one year. For public entities, the guidance in ASU 2014-09 will be effective for annual reporting periods beginning after December 15, 2017 (including interim reporting periods within those periods), which means it will be effective for our fiscal year beginning October 1, 2018. Early adoption is permitted to the original effective date of December 15, 2016 (including interim reporting periods within those periods). In March 2016, the FASB issued ASU No. 2016-08, “ Principal versus Agent Considerations (Reporting Revenue versus Net) ” (“ASU 2016-08”), which clarifies the implementation guidance on principal versus agent considerations in the new revenue recognition standard. In April 2016, the FASB issued ASU No. 2016-10, “ Identifying Performance Obligations and Licensing ” (“ASU 2016-10”), which reduces the complexity when applying the guidance for identifying performance obligations and improves the operability and understandability of the license implementation guidance. In May 2016, the FASB issued ASU No. 2016-12 “ Narrow-Scope Improvements and Practical Expedients ” (“ASU 2016-12”), which amends the guidance on transition, collectability, noncash consideration and the presentation of sales and other similar taxes. In December 2016, the FASB further issued ASU 2016-20, “ Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers ” (“ASU 2016-20”), which makes minor corrections or minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. The amendments are intended to address implementation issues that were raised by stakeholders and provide additional practical expedients to reduce the cost and complexity of applying the new revenue standard. These amendments have the same effective date as the new revenue standard. We have established a cross-functional implementation team consisting of representatives across the organization to address the scope of work required to implement the recognition and disclosure requirements under the new standard. This cross-functional implementation team has developed a project plan, which includes evaluating customer contracts across the organization, developing policies, processes and tools to report financial results, and implementing and evaluating our internal controls over financial reporting that will be necessary under the new standard. We currently plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method. Our ability to adopt Topic 606 using the full retrospective method is dependent on system readiness, and the completion of our analysis of information necessary to restate prior period financial statements. As we continue to assess the new standard along with industry trends and additional interpretive guidance, we may adjust our implementation plan accordingly. We are continuing to assess the impact of adopting Topic 606 on our consolidated financial statements and believe the new standard will impact the following policies and disclosures: • Timing of revenue recognition of license revenue on term licenses and transactional revenue on guaranteed minimum fees related to our on-premises software products. Under the new standard, we expect to recognize revenue when control of the license is transferred to the customer, rather than at the date payments become due and payable or ratably over the term of the contract required under the current standard; • Presentation of contract balances. Under the new standard, when we enter into noncancellable contracts that provide unconditional rights to payment from our customers for services that we have not yet completed providing or services we will provide in the near future, we expect to present the unconditional rights as receivables, regardless of whether cash has been received from customers; • Required disclosures including information about remaining transaction price and when we expect to recognize revenue; and • Accounting for commissions under the new standard will result in the deferral of incremental commission costs for obtaining contracts. We do not currently expect Topic 606 to have a significant effect on the timing of revenue recognition for our maintenance or professional services revenues, or SaaS contracts. In October 2016, the FASB issued ASU No. 2016-16, “ Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other Than Inventory ” (“ASU 2016-16”). ASU 2016-16 requires an entity to recognize the income tax consequences of an intra-entity transfer of an asset, other than inventory, when the transfer occurs. The guidance is effective for fiscal years and interim periods beginning after December 15, 2017, which means it will be effective for our fiscal year beginning October 1, 2018. ASU 2016-16 should be applied on a modified retrospective basis through a cumulative-effect adjustment directly to retained earnings at the beginning of the period of adoption. Early adoption is permitted as of the beginning of an annual reporting period for which financial statements (interim or annual) have not been issued. We do not believe that adoption of ASU 2016-16 will have a significant impact on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “ Leases (Topic 842) ” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Financial Assets Measured on a Recurring Basis | The following tables represent financial assets that we measured at fair value on a recurring basis at December 31, 2017 and September 30, 2017 : December 31, 2017 Active Markets for Identical Instruments (Level 1) Fair Value as of December 31, 2017 (In thousands) Assets: Cash equivalents (1) $ 4,105 $ 4,105 Marketable securities (2) 15,816 15,816 Total $ 19,921 $ 19,921 September 30, 2017 Active Markets for Fair Value as of September 30, 2017 (In thousands) Assets: Cash equivalents (1) $ 15,295 $ 15,295 Marketable securities (2) 13,791 13,791 Total $ 29,086 $ 29,086 (1) Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017 . Not included in these tables are cash deposits of $90.1 million and $90.3 million at December 31, 2017 and September 30, 2017 , respectively. (2) Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017 . |
Derivative Financial Instrume23
Derivative Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Outstanding Foreign Currency Forward Contracts | The following tables summarize our outstanding foreign currency forward contracts, by currency, at December 31, 2017 and September 30, 2017 : December 31, 2017 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 7,350 $ 8,825 $ — Buy foreign currency: British pound (GBP) GBP 5,398 $ 7,300 $ — Singapore dollar (SGD) SGD 7,734 $ 5,800 $ — September 30, 2017 Contract Amount Fair Value Foreign Currency US$ US$ (In thousands) Sell foreign currency: Euro (EUR) EUR 5,050 $ 5,968 $ — Buy foreign currency: British pound (GBP) GBP 9,341 $ 12,500 $ — |
Losses on Derivative Financial Instruments | 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 December 31, 2017 2016 (In thousands) Gains (losses) on foreign currency forward contracts $ 194 $ (560 ) |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Amortization Expense | Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying condensed consolidated statements of income and comprehensive income, consisted of the following: Quarter Ended December 31, 2017 2016 (In thousands) Cost of revenues $ 706 $ 1,686 Selling, general and administrative expenses 1,082 1,634 $ 1,788 $ 3,320 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated future intangible asset amortization expense associated with intangible assets existing at December 31, 2017 was as follows (in thousands): Year Ended September 30, 2018 (excluding the quarter ended December 31, 2017) $ 4,803 2019 6,085 2020 3,689 2021 2,433 2022 2,287 Thereafter 217 $ 19,514 |
Schedule of Goodwill | The following table summarizes changes to goodwill during the quarter ended December 31, 2017 , both in total and as allocated to our segments: Applications Scores Decision Management Software Total (In thousands) Balance at September 30, 2017 $ 588,288 $ 146,648 $ 69,478 $ 804,414 Foreign currency translation adjustment 1,777 — 141 1,918 Balance at December 31, 2017 $ 590,065 $ 146,648 $ 69,619 $ 806,332 |
Composition of Certain Financ25
Composition of Certain Financial Statement Captions (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Property and Equipment | The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at December 31, 2017 and September 30, 2017 : December 31, September 30, (In thousands) Property and equipment $ 139,344 $ 135,360 Less: accumulated depreciation and amortization (100,536 ) (94,657 ) $ 38,808 $ 40,703 |
Senior Notes (Tables)
Senior Notes (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Debt Disclosure [Abstract] | |
Carrying Amounts and Fair Values of Senior Notes | The following table presents the carrying amounts and fair values for the Senior Notes at December 31, 2017 and September 30, 2017 : December 31, 2017 September 30, 2017 Carrying Fair Value Carrying Fair Value (In thousands) The 2008 Senior Notes $ 131,000 $ 132,814 $ 131,000 $ 134,250 The 2010 Senior Notes 113,000 117,669 113,000 119,106 Debt issuance costs (166 ) (166 ) (199 ) (199 ) Total $ 243,834 $ 250,317 $ 243,801 $ 253,157 |
Restructuring Expenses (Tables)
Restructuring Expenses (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Restructuring and Related Activities [Abstract] | |
Schedule of Restructuring Accruals | The following table summarizes our restructuring accruals related to facility closures and employee separation charges. The current portion and non-current portion is recorded in other accrued current liabilities and other long-term liabilities, respectively, within the accompanying condensed consolidated balance sheets. The balance for all the facilities charges will be paid by the end of fiscal 2020. The balance for all the employee separation costs will be paid by the end of the second quarter of fiscal 2018. Accrual at Cash Payments Accrual at September 30, 2017 December 31, 2017 (In thousands) Facilities charges $ 8,120 $ (702 ) $ 7,418 Employee separation 185 (126 ) 59 8,305 $ (828 ) 7,477 Less: current portion (3,077 ) (3,524 ) Non-current $ 5,228 $ 3,953 |
Earnings per Share (Tables)
Earnings per Share (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share | The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters ended December 31, 2017 and 2016 : Quarter Ended December 31, 2017 2016 (In thousands, except per share data) Numerator for diluted and basic earnings per share: Net Income $ 27,299 $ 37,901 Denominator - share: Basic weighted-average shares 30,078 30,989 Effect of dilutive securities 1,483 1,547 Diluted weighted-average shares 31,561 32,536 Earnings per share: Basic $ 0.91 $ 1.22 Diluted $ 0.86 $ 1.16 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Segment Reporting [Abstract] | |
Summary of Segment Information | The following tables summarize segment information for the quarters ended December 31, 2017 and 2016 : Quarter Ended December 31, 2017 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 93,213 $ 69,574 $ 11,875 $ — $ 174,662 Professional services 34,853 278 7,495 — 42,626 License 13,343 63 4,627 — 18,033 Total segment revenues 141,409 69,915 23,997 — 235,321 Segment operating expense (102,619 ) (15,887 ) (31,853 ) (26,760 ) (177,119 ) Segment operating income (loss) $ 38,790 $ 54,028 $ (7,856 ) $ (26,760 ) 58,202 Unallocated share-based compensation expense (16,510 ) Unallocated amortization expense (1,788 ) Operating income 39,904 Unallocated interest expense, net (6,460 ) Unallocated other income, net 513 Income before income taxes $ 33,957 Depreciation expense $ 3,943 $ 155 $ 1,412 $ 284 $ 5,794 Quarter Ended December 31, 2016 Applications Scores Decision Management Software Unallocated Corporate Expenses Total (In thousands) Segment revenues: Transactional and maintenance $ 84,881 $ 58,252 $ 10,527 $ — $ 153,660 Professional services 34,341 521 8,681 — 43,543 License 15,543 609 6,245 — 22,397 Total segment revenues 134,765 59,382 25,453 — 219,600 Segment operating expense (99,797 ) (13,319 ) (29,085 ) (24,633 ) (166,834 ) Segment operating income (loss) $ 34,968 $ 46,063 $ (3,632 ) $ (24,633 ) 52,766 Unallocated share-based compensation expense (14,519 ) Unallocated amortization expense (3,320 ) Operating income 34,927 Unallocated interest expense, net (6,172 ) Unallocated other expense, net (100 ) Income before income taxes $ 28,655 Depreciation expense $ 3,868 $ 266 $ 1,126 $ 349 $ 5,609 |
Share-Based Payments (Tables)
Share-Based Payments (Tables) | 3 Months Ended |
Dec. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Option Activity | Stock Options The following table summarizes option activity during the quarter ended December 31, 2017: Shares Weighted-average Exercise Price Weighted-average Remaining Contractual Term Aggregate Intrinsic Value (In thousands) (In years) (In thousands) Outstanding at October 1, 2017 1,230 $ 56.54 Granted 3 157.31 Exercised (21 ) 33.10 Outstanding at December 31, 2017 1,212 $ 57.19 2.90 $ 116,380 Exercisable at December 31, 2017 1,051 $ 53.34 2.68 $ 105,003 Vested and expected to vest at December 31, 2017 1,207 $ 57.06 2.89 $ 116,081 |
Summary of Restricted Stock Unit Activity | Restricted Stock Units The following table summarizes restricted stock unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 1,144 $ 97.95 Granted 358 157.11 Released (351 ) 86.88 Forfeited (5 ) 109.08 Outstanding at December 31, 2017 1,146 $ 119.76 |
Summary of Performance Share Unit Activity | Performance Share Units The following table summarizes performance share unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 204 $ 105.37 Granted 51 157.03 Released (95 ) 98.15 Outstanding at December 31, 2017 160 $ 126.27 |
Summary of Market Share Unit Activity | Market Share Units The following table summarizes market share unit activity during the quarter ended December 31, 2017: Shares Weighted- average Grant-date Fair Value (In thousands) Outstanding at October 1, 2017 131 $ 123.82 Granted 102 151.78 Released (119 ) 113.70 Outstanding at December 31, 2017 114 $ 159.34 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Thousands | May 19, 2016 | Dec. 31, 2017 | Sep. 30, 2017 |
Business Acquisition [Line Items] | |||
Goodwill | $ 806,332 | $ 804,414 | |
Applications | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 590,065 | $ 588,288 | |
QuadMetrics | |||
Business Acquisition [Line Items] | |||
Common stock acquired (percent) | 100.00% | ||
Cash | $ 5,700 | ||
Intangible assets | $ 2,000 | ||
Weighted average useful life | 4 years | ||
QuadMetrics | Applications | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 3,900 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 | |
Assets: | |||
Marketable securities | $ 13,791 | ||
Cash deposits | $ 90,100 | 90,300 | |
Fair Value, Measurements, Recurring | |||
Assets: | |||
Cash equivalents | [1] | 4,105 | 15,295 |
Marketable securities | [2] | 15,816 | 13,791 |
Total | 19,921 | 29,086 | |
Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1) | |||
Assets: | |||
Cash equivalents | [1] | 4,105 | 15,295 |
Marketable securities | [2] | 15,816 | 13,791 |
Total | $ 19,921 | $ 29,086 | |
[1] | Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017. Not included in these tables are cash deposits of $90.1 million and $90.3 million at December 31, 2017 and September 30, 2017, respectively. | ||
[2] | Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2017 and September 30, 2017. |
Derivative Financial Instrume33
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Short-term forward contracts, average maturities at inception (less than) | 3 months | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Forward foreign currency contracts fair value | $ 0 | $ 0 |
Derivative Financial Instrume34
Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, $ in Thousands | Dec. 31, 2017GBP (£) | Dec. 31, 2017EUR (€) | Dec. 31, 2017USD ($) | Sep. 30, 2017GBP (£) | Sep. 30, 2017EUR (€) | Sep. 30, 2017USD ($) |
Foreign Exchange Contracts To Sell European Euro for US Dollar | ||||||
Derivative [Line Items] | ||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | $ 0 | $ 0 | ||||
Foreign Exchange Contracts To Sell European Euro for US Dollar | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Contract amount of forward foreign currency contracts | € 7,350 | 8,825 | € 5,050 | 5,968 | ||
Foreign Exchange Contracts To Purchase British Pounds With US Dollars | ||||||
Derivative [Line Items] | ||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | 0 | 0 | ||||
Foreign Exchange Contracts To Purchase British Pounds With US Dollars | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Contract amount of forward foreign currency contracts | £ 5,398 | 7,300 | £ 9,341 | $ 12,500 | ||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | ||||||
Derivative [Line Items] | ||||||
Fair value of forward foreign currency contracts to sell and buy foreign currency | 0 | |||||
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars | Foreign currency forward contracts | Short | Not Designated as Hedging Instrument | ||||||
Derivative [Line Items] | ||||||
Contract amount of forward foreign currency contracts | £ 7,734 | $ 5,800 |
Derivative Financial Instrume35
Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Foreign currency forward contracts | ||
Derivative [Line Items] | ||
Gains (losses) on foreign currency forward contracts | $ 194 | $ (560) |
Goodwill and Intangible Asset36
Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | [1] | $ 1,788 | $ 3,320 |
Cost of revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | 706 | 1,686 | |
Selling, general and administrative expenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense of intangible assets | $ 1,082 | $ 1,634 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
Goodwill and Intangible Asset37
Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2017 | Sep. 30, 2017 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Intangible assets, gross | $ 112.1 | $ 114.5 |
Goodwill and Intangible Asset38
Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Estimated future intangible asset amortization expense | ||
2018 (excluding the quarter ended December 31, 2017) | $ 4,803 | |
2,018 | 6,085 | |
2,019 | 3,689 | |
2,020 | 2,433 | |
2,021 | 2,287 | |
Thereafter | 217 | |
Total | $ 19,514 | $ 21,185 |
Goodwill and Intangible Asset39
Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($) | |
Goodwill [Roll Forward] | |
Balance at September 30, 2017 | $ 804,414 |
Foreign currency translation adjustment | 1,918 |
Balance at December 31, 2017 | 806,332 |
Applications | |
Goodwill [Roll Forward] | |
Balance at September 30, 2017 | 588,288 |
Foreign currency translation adjustment | 1,777 |
Balance at December 31, 2017 | 590,065 |
Scores | |
Goodwill [Roll Forward] | |
Balance at September 30, 2017 | 146,648 |
Foreign currency translation adjustment | 0 |
Balance at December 31, 2017 | 146,648 |
Decision Management Software | |
Goodwill [Roll Forward] | |
Balance at September 30, 2017 | 69,478 |
Foreign currency translation adjustment | 141 |
Balance at December 31, 2017 | $ 69,619 |
Composition of Certain Financ40
Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2017 | Sep. 30, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Property and equipment | $ 139,344 | $ 135,360 |
Less: accumulated depreciation and amortization | (100,536) | (94,657) |
Total | $ 38,808 | $ 40,703 |
Revolving Line of Credit (Detai
Revolving Line of Credit (Detail) | Nov. 17, 2017USD ($) | Dec. 31, 2017USD ($) |
Line of Credit Facility [Line Items] | ||
Unsecured revolving line of credit | $ 600,000,000 | |
Revolving credit facility, expiration date | Dec. 30, 2019 | |
Credit facility restrictive covenant, minimum fixed charge ratio | 2.5 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio | 3 | |
Credit facility restrictive covenant, maximum consolidated leverage ratio step up | 3.5 | |
Borrowings outstanding | $ 420,000,000 | |
Interest rate of borrowings outstanding | 2.655% | |
Long-term Debt | ||
Line of Credit Facility [Line Items] | ||
Borrowings outstanding | $ 350,000,000 | |
Federal Fund Rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.50% | |
Libor | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
Libor | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.00% | |
Libor | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 1.875% | |
Base Rate | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.00% | |
Base Rate | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate | 0.875% |
Senior Notes (Detail)
Senior Notes (Detail) | Jul. 14, 2010USD ($)Contract | May 07, 2008USD ($)Contract | Dec. 31, 2017USD ($) | Sep. 30, 2017USD ($) |
Debt Instrument [Line Items] | ||||
Senior Notes, weighted average interest rate | 2.655% | |||
Carrying value of Senior Notes | $ 243,834,000 | $ 243,801,000 | ||
Fair value of Senior Notes | 250,317,000 | 253,157,000 | ||
Debt issuance costs | (166,000) | (199,000) | ||
May 2008 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $ 275,000,000 | |||
Number of series of Senior Notes issued | Contract | 4 | |||
Senior Notes, weighted average interest rate | 7.20% | |||
Senior Notes, weighted average maturity (in years) | 10 years | |||
Carrying value of Senior Notes | 131,000,000 | 131,000,000 | ||
Fair value of Senior Notes | 132,814,000 | 134,250,000 | ||
May 2008 Senior Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 5 years | |||
May 2008 Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 10 years | |||
July 2010 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Senior Notes issued in a private placement to a group of institutional investors | $ 245,000,000 | |||
Number of series of Senior Notes issued | Contract | 4 | |||
Senior Notes, weighted average interest rate | 5.60% | |||
Senior Notes, weighted average maturity (in years) | 9 years 10 months | |||
Carrying value of Senior Notes | 113,000,000 | 113,000,000 | ||
Fair value of Senior Notes | $ 117,669,000 | $ 119,106,000 | ||
July 2010 Senior Notes | Minimum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 6 years | |||
July 2010 Senior Notes | Maximum | ||||
Debt Instrument [Line Items] | ||||
Senior Notes, maturity (in years) | 10 years |
Restructuring Expenses - Summar
Restructuring Expenses - Summary of Restructuring Accruals and Certain Facility Closures (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Sep. 30, 2017 | |
Restructuring Reserve [Roll Forward] | ||
Accrual at September 30, 2017 | $ 8,305 | |
Cash Payments | (828) | |
Accrual at December 31, 2017 | 7,477 | |
Less: current portion | (3,524) | $ (3,077) |
Non-current | 3,953 | $ 5,228 |
Facilities charges | ||
Restructuring Reserve [Roll Forward] | ||
Accrual at September 30, 2017 | 8,120 | |
Cash Payments | (702) | |
Accrual at December 31, 2017 | 7,418 | |
Employee separation | ||
Restructuring Reserve [Roll Forward] | ||
Accrual at September 30, 2017 | 185 | |
Cash Payments | (126) | |
Accrual at December 31, 2017 | $ 59 |
Income Taxes -Additional Inform
Income Taxes -Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2018 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income Tax [Line Items] | |||||
Effective income tax rate | 19.60% | (32.30%) | |||
Provisional charges for the re-measurement of deferred tax assets, long-term | $ 5.6 | ||||
Provisional charges for the re-measurement of deferred tax assets, short-term | 1.3 | ||||
Transition tax obligation | 4.9 | ||||
Unrecognized tax benefits, uncertain tax positions | 6.1 | $ 6.5 | |||
Unrecognized tax benefits, accrued interest | $ 0.4 | $ 0.4 | |||
Scenario, Forecast | |||||
Income Tax [Line Items] | |||||
Federal corporate tax rate | 21.00% | 24.50% |
Earnings per Share - Reconcilia
Earnings per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Numerator for diluted and basic earnings per share: | ||
Net income | $ 27,299 | $ 37,901 |
Denominator - share: | ||
Basic weighted-average shares (in shares) | 30,078 | 30,989 |
Effect of dilutive securities (in shares) | 1,483 | 1,547 |
Diluted weighted-average shares (in shares) | 31,561 | 32,536 |
Earnings per share: | ||
Basic (in dollars per share) | $ 0.91 | $ 1.22 |
Diluted (in dollars per share) | $ 0.86 | $ 1.16 |
Earnings per Share - Additional
Earnings per Share - Additional Information (Detail) - shares | 3 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | ||
Options to purchase shares of common stock excluded in the computation of diluted earnings per share because their inclusion would be antidilutive (in shares) | 3,000 | 0 |
Segment Information - Additiona
Segment Information - Additional Information (Detail) | 3 Months Ended |
Dec. 31, 2017Segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 3 |
Number of reportable segments | 3 |
Segment Information - Summary o
Segment Information - Summary of Segment Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2016 | ||
Segment revenues: | |||
Transactional and maintenance | $ 174,662 | $ 153,660 | |
Professional services | 42,626 | 43,543 | |
License | 18,033 | 22,397 | |
Total revenues | 235,321 | 219,600 | |
Segment operating expense | (195,417) | (184,673) | |
Operating income | 39,904 | 34,927 | |
Unallocated share-based compensation expense | (16,510) | (14,519) | |
Unallocated amortization expense | [1] | (1,788) | (3,320) |
Unallocated interest expense | (6,460) | (6,172) | |
Unallocated other income, net | 513 | (100) | |
Income before income taxes | 33,957 | 28,655 | |
Depreciation expense | 5,794 | 5,609 | |
Operating Segments | |||
Segment revenues: | |||
Segment operating expense | (177,119) | (166,834) | |
Operating income | 58,202 | 52,766 | |
Unallocated Corporate Expenses | |||
Segment revenues: | |||
Segment operating expense | (26,760) | (24,633) | |
Operating income | (26,760) | (24,633) | |
Depreciation expense | 284 | 349 | |
Applications | Operating Segments | |||
Segment revenues: | |||
Transactional and maintenance | 93,213 | 84,881 | |
Professional services | 34,853 | 34,341 | |
License | 13,343 | 15,543 | |
Total revenues | 141,409 | 134,765 | |
Segment operating expense | (102,619) | (99,797) | |
Operating income | 38,790 | 34,968 | |
Depreciation expense | 3,943 | 3,868 | |
Scores | Operating Segments | |||
Segment revenues: | |||
Transactional and maintenance | 69,574 | 58,252 | |
Professional services | 278 | 521 | |
License | 63 | 609 | |
Total revenues | 69,915 | 59,382 | |
Segment operating expense | (15,887) | (13,319) | |
Operating income | 54,028 | 46,063 | |
Depreciation expense | 155 | 266 | |
Decision Management Software | Operating Segments | |||
Segment revenues: | |||
Transactional and maintenance | 11,875 | 10,527 | |
Professional services | 7,495 | 8,681 | |
License | 4,627 | 6,245 | |
Total revenues | 23,997 | 25,453 | |
Segment operating expense | (31,853) | (29,085) | |
Operating income | (7,856) | (3,632) | |
Depreciation expense | $ 1,412 | $ 1,126 | |
[1] | Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4. |
Share-Based Payments - Addition
Share-Based Payments - Additional Information (Details) | 3 Months Ended |
Dec. 31, 2017 | |
Employee stock option | Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock option awards term | 7 years |
Restricted stock units not subject to market or performance conditions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 4 years |
Restricted stock units subject to market or performance conditions | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Award vesting period | 3 years |
Share-Based Payments - Summary
Share-Based Payments - Summary of Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Dec. 31, 2017USD ($)$ / sharesshares | |
Shares | |
Outstanding at October 1, 2017 | shares | 1,230 |
Granted | shares | 3 |
Exercised | shares | (21) |
Outstanding at December 31, 2017 | shares | 1,212 |
Exercisable at December 31, 2017 | shares | 1,051 |
Vested and expected to vest at December 31, 2017 | shares | 1,207 |
Weighted-average Exercise Price | |
Outstanding at October 1, 2017 (in dollars per share) | $ / shares | $ 56.54 |
Granted (in dollars per share) | $ / shares | 157.31 |
Exercised (in dollars per share) | $ / shares | 33.10 |
Outstanding at December 31, 2017 (in dollars per share) | $ / shares | 57.19 |
Exercisable at December 31, 2017 (in dollars per share) | $ / shares | 53.34 |
Vested and expected to vest at December 31, 2016 (in dollars per share) | $ / shares | $ 57.06 |
Weighted-average Remaining Contractual Term | |
Outstanding at December 31, 2017 | 2 years 10 months 25 days |
Exercisable at December 31, 2017 | 2 years 8 months 4 days |
Vested and expected to vest at December 31, 2017 | 2 years 10 months 21 days |
Aggregate Intrinsic Value | |
Outstanding at December 31, 2017 | $ | $ 116,380 |
Exercisable at December 31, 2017 | $ | 105,003 |
Vested and expected to vest at December 31, 2017 | $ | $ 116,081 |
Share-Based Payments - Summar51
Share-Based Payments - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands | 3 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Shares | |
Outstanding at October 1, 2017 | shares | 1,144 |
Granted | shares | 358 |
Released | shares | (351) |
Forfeited | shares | (5) |
Outstanding at December 31, 2017 | shares | 1,146 |
Weighted- average Grant-date Fair Value | |
Outstanding at October 1, 2016 (in dollars per share) | $ / shares | $ 97.95 |
Granted (in dollars per share) | $ / shares | 157.11 |
Released (in dollars per share) | $ / shares | 86.88 |
Forfeited (in dollars per share) | $ / shares | 109.08 |
Outstanding at December 31, 2016 (in dollars per share) | $ / shares | $ 119.76 |
Share-Based Payments - Summar52
Share-Based Payments - Summary of Performance Share Unit and Market Share Unit Activity (Details) shares in Thousands | 3 Months Ended |
Dec. 31, 2017$ / sharesshares | |
Performance Share Units | |
Shares | |
Outstanding at October 1, 2017 | shares | 204 |
Granted | shares | 51 |
Released | shares | (95) |
Outstanding at December 31, 2017 | shares | 160 |
Weighted- average Grant-date Fair Value | |
Outstanding at October 1, 2016 (in dollars per share) | $ / shares | $ 105.37 |
Granted (in dollars per share) | $ / shares | 157.03 |
Released (in dollars per share) | $ / shares | 98.15 |
Outstanding at December 31, 2016 (in dollars per share) | $ / shares | $ 126.27 |
Market Share Units | |
Shares | |
Outstanding at October 1, 2017 | shares | 131 |
Granted | shares | 102 |
Released | shares | (119) |
Outstanding at December 31, 2017 | shares | 114 |
Weighted- average Grant-date Fair Value | |
Outstanding at October 1, 2016 (in dollars per share) | $ / shares | $ 123.82 |
Granted (in dollars per share) | $ / shares | 151.78 |
Released (in dollars per share) | $ / shares | 113.70 |
Outstanding at December 31, 2016 (in dollars per share) | $ / shares | $ 159.34 |