View Filing Data

Print Document View Excel Document

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Mar. 31, 2017	Apr. 14, 2017
Document And Entity Information [Abstract]
Entity Registrant Name	FAIR ISAAC CORP
Trading Symbol	FICO
Entity Central Index Key	0000814547
Current Fiscal Year End Date	--09-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		30,965,124

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Current assets:
Cash and cash equivalents	$ 115,848	$ 75,926
Accounts receivable, net	141,394	167,786
Prepaid expenses and other current assets	51,987	23,926
Total current assets	309,229	267,638
Marketable securities available for sale	12,224	11,016
Other investments	10,920	10,920
Property and equipment, net	42,728	45,122
Goodwill	792,420	798,415
Intangible assets, net	26,311	33,619
Deferred income taxes	47,761	47,598
Other assets	5,475	6,348
Total assets	1,247,068	1,220,676
Current liabilities:
Accounts payable	18,692	22,952
Accrued compensation and employee benefits	48,154	71,216
Other accrued liabilities	25,527	27,780
Deferred revenue	64,906	47,129
Current maturities on debt	107,000	77,000
Total current liabilities	264,279	246,077
Long-term debt	518,720	493,624
Other liabilities	36,968	34,147
Total liabilities	819,967	773,848
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 30,962 and 30,935 shares outstanding at March 31, 2017 and September 30, 2016, respectively)	310	309
Paid-in-capital	1,162,936	1,185,076
Treasury stock, at cost (57,895 and 57,922 shares at March 31, 2017 and September 30, 2016, respectively)	(2,187,837)	(2,136,760)
Retained earnings	1,536,961	1,475,214
Accumulated other comprehensive loss	(85,269)	(77,011)
Total stockholders’ equity	427,101	446,828
Total liabilities and stockholders’ equity	$ 1,247,068	$ 1,220,676

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Sep. 30, 2016
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	30,962,000	30,935,000
Treasury stock, shares	57,895,000	57,922,000

CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($)
shares in Thousands, $ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2017

Mar. 31, 2016

Mar. 31, 2017

Mar. 31, 2016

Revenues:

Transactional and maintenance

$ 161,249

$ 150,743

$ 314,909

$ 297,815

Professional services

41,284

39,342

84,827

73,494

License

25,845

16,593

48,242

35,445

Total revenues

228,378

206,678

447,978

406,754

Operating expenses:

Cost of revenues

^[1]

72,131

62,298

142,128

124,491

Research and development

26,663

24,848

52,805

49,479

Selling, general and administrative

^[1]

86,231

77,501

171,445

156,339

Amortization of intangible assets

^[1]

3,312

3,507

6,632

7,087

Total operating expenses

188,337

168,154

373,010

337,396

Operating income

40,041

38,524

74,968

69,358

Interest expense, net

(6,578)

(6,815)

(12,750)

(13,539)

Other income (expense), net

(327)

435

(427)

101

Income before income taxes

33,136

32,144

61,791

55,920

Provision for income taxes

8,052

9,028

(1,194)

13,563

Net income

25,084

23,116

62,985

42,357

Other comprehensive income (loss):

Foreign currency translation adjustments

6,089

(905)

(8,258)

(7,024)

Comprehensive income

$ 31,173

$ 22,211

$ 54,727

$ 35,333

Earnings per share:

Basic (in dollars per share)

$ 0.81

$ 0.74

$ 2.03

$ 1.36

Diluted (in dollars per share)

$ 0.78

$ 0.72

$ 1.94

$ 1.31

Shares used in computing earnings per share:

Basic (in shares)

31,017

31,268

31,003

31,226

Diluted (in shares)

32,260

32,262

32,398

32,349

[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4.

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 6 months ended Mar. 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, 2016		30,935
Beginning Balance at Sep. 30, 2016	$ 446,828	$ 309	$ 1,185,076	$ (2,136,760)	$ 1,475,214	$ (77,011)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	29,231		29,231
Issuance of treasury stock under employee stock plans (in shares)		633
Issuance of treasury stock under employee stock plans	(27,800)	$ 7	(51,371)	23,564
Repurchases of common stock (in shares)		(606)
Repurchases of common stock	(74,647)	$ (6)		(74,641)
Dividends paid	(1,238)				(1,238)
Net income	62,985				62,985
Foreign currency translation adjustments	(8,258)					(8,258)
Ending Balance (in shares) at Mar. 31, 2017		30,962
Ending Balance at Mar. 31, 2017	$ 427,101	$ 310	$ 1,162,936	$ (2,187,837)	$ 1,536,961	$ (85,269)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 62,985	$ 42,357
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	18,236	15,168
Share-based compensation	29,231	28,300
Deferred income taxes	0	(2,056)
Tax effect from share-based payment arrangements	0	13,508
Provision for doubtful accounts, net	925	870
Net loss on sales of property and equipment	10	0
Changes in operating assets and liabilities:
Accounts receivable	23,710	566
Prepaid expenses and other assets	(27,415)	532
Accounts payable	(3,534)	233
Accrued compensation and employee benefits	(22,671)	(9,836)
Other liabilities	(3,487)	(6,901)
Deferred revenue	21,407	9,593
Net cash provided by operating activities	99,397	92,334
Cash flows from investing activities:
Purchases of property and equipment	(9,604)	(7,807)
Net cash used in investing activities	(9,604)	(7,807)
Cash flows from financing activities:
Proceeds from revolving line of credit	79,000	44,000
Payments on revolving line of credit	(24,000)	(41,000)
Proceeds from issuance of treasury stock under employee stock plans	9,114	6,757
Taxes paid related to net share settlement of equity awards	(36,914)	(25,881)
Dividends paid	(1,238)	(1,245)
Repurchases of common stock	(74,647)	(68,390)
Net cash used in financing activities	(48,685)	(85,759)
Effect of exchange rate changes on cash	(1,186)	486
Increase (decrease) in cash and cash equivalents	39,922	(746)
Cash and cash equivalents, beginning of period	75,926	86,120
Cash and cash equivalents, end of period	115,848	85,374
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds	21,557	2,648
Cash paid for interest	12,377	13,273
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	$ 2,757	$ 1,028

Nature of Business	6 Months Ended
Nature of Business	Mar. 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, 2016. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year. The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated. Use of Estimates We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectibility of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates. New Accounting Pronouncements Recently Adopted Accounting Pronouncements Effective October 1, 2016, we early adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. As a result of the adoption, we recognized $3.6 million and $20.9 million of excess tax benefits related to share-based payments in our provision for income taxes for the quarter and six months ended March 31, 2017, respectively. These items were historically recorded as additional paid-in capital. We elected to apply the change retrospectively in presentation to our condensed consolidated statements of cash flows and no longer classified the excess tax benefits from employee stock plans as a reduction from operating cash flows, which resulted in increases to both net cash provided by operating activities and net cash used in financing activities of $14.0 million for the six months ended March 31, 2016. Our adoption of ASU 2016-09 also impacted the calculation of diluted weighted-average shares under the treasury stock method as we no longer increase or decrease the assumed proceeds from an employee vesting in, or exercising, a share-based payment award by the amount of excess tax benefits or deficiencies taken to additional paid-in capital. For the quarter and six months ended March 31, 2017, the impact was immaterial. Given our historical practice of including employee withholding taxes paid within financing activities in the statement of cash flows, no prior period reclassifications are required by the clarifications on classification provided by ASU 2016-09. Furthermore, we elected to continue to estimate expected forfeitures of employee equity awards to determine the amount of compensation expense to be recognized in each period. Effective October 1, 2016, we retrospectively adopted ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance” (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs related to a recognized debt liability, other than those relating to line-of-credit arrangements, in the balance sheet as a direct deduction from the related debt liability rather than as an asset. As a result of the adoption, at March 31, 2017, the amount of debt issuance costs reflected as a deduction of long-term debt was $0.3 million. At September 30, 2016, the amount of debt issuance costs reclassified from other assets to a deduction of long-term debt was $0.4 million. Recent Accounting Pronouncements Not Yet Adopted 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. Preliminarily, we plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method, and are continuing to evaluate the impact our pending adoption of Topic 606 will have on our consolidated financial statements. 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 in the first interim period of an entity's annual financial statements. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.

Fair Value Measurements

6 Months Ended

Mar. 31, 2017

Fair Value Disclosures [Abstract]

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, 2017 and September 30, 2016.

•

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, 2017 and September 30, 2016.

The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2017 and September 30, 2016:



March 31, 2017	Active Markets for Identical Instruments (Level 1)		Fair Value as of March 31, 2017
	(In thousands)
Assets:
Cash equivalents (1)	$	441	$	441
Marketable securities (2)	12,224		12,224
Total	$	12,665	$	12,665

September 30, 2016	Active Markets for Identical Instruments (Level 1)		Fair Value as of September 30, 2016
	(In thousands)
Assets:
Cash equivalents (1)	$	440	$	440
Marketable securities (2)	11,016		11,016
Total	$	11,456	$	11,456


(1)	Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2017 and September 30, 2016. Not included in these tables are cash deposits of $115.4 million and $75.5 million at March 31, 2017 and September 30, 2016, 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, 2017 and September 30, 2016.

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.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivative Financial Instruments

6 Months Ended

Mar. 31, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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 March 31, 2017 and September 30, 2016:



	March 31, 2017
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	5,700	$	6,113	$	—
Buy foreign currency:
British pound (GBP)	GBP	4,479	$	5,600	$	—



	September 30, 2016
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	7,850	$	8,743	$	—
Buy foreign currency:
British pound (GBP)	GBP	7,721	$	10,000	$	—

The foreign currency forward contracts were entered into on March 31, 2017 and September 30, 2016, 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,
	2017		2016			2017			2016
	(In thousands)
Gains (losses) on foreign currency forward contracts	$	55	$	(956	)	$	(505	)	$	(1,255	)

- Definition

The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 45
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4C
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4D
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4H
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 30
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4K
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4J
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4A
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959

Reference 15: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959

Reference 16: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4E
-URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959

Reference 17: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 25
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986

Reference 18: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959

Reference 19: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(n))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

+ Details

Goodwill and Intangible Assets

6 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

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,
	2017		2016		2017		2016
	(In thousands)
Cost of revenues	$	1,687	$	1,840	$	3,373	$	3,747
Selling, general and administrative expenses	1,625		1,667		3,259		3,340
	$	3,312	$	3,507	$	6,632	$	7,087

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 $147.8 million and $149.4 million as of March 31, 2017 and September 30, 2016, respectively.

Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2017 was as follows (in thousands):



Year Ended September 30,
2017 (excluding the six months ended March 31, 2017)	$	5,923
2018	6,254
2019	5,741
2020	3,555
2021	2,382
Thereafter	2,456
	$	26,311

The following table summarizes changes to goodwill during the six months ended March 31, 2017, both in total and as allocated to our segments:



	Applications			Scores		Decision Management Software			Total
	(In thousands)
Balance at September 30, 2016	$	582,720		$	146,648	$	69,047		$	798,415
Foreign currency translation adjustment	(5,538		)	—		(457		)	(5,995		)
Balance at March 31, 2017	$	577,182		$	146,648	$	68,590		$	792,420

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Composition of Certain Financial Statement Captions

6 Months Ended

Mar. 31, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Captions

The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at March 31, 2017 and September 30, 2016:



	March 31, 2017			September 30, 2016
	(In thousands)
Property and equipment	$	127,721		$	126,760
Less: accumulated depreciation and amortization	(84,993		)	(81,638		)
	$	42,728		$	45,122

Revolving Line of Credit	6 Months Ended
Revolving Line of Credit	Mar. 31, 2017
Debt Disclosure [Abstract]
Revolving Line of Credit	Revolving Line of Credit We have a $400 million unsecured revolving line of credit with a syndicate of banks that expires on December 30, 2019. Proceeds from the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions and the repurchase of our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate, (b) the Federal Funds rate plus 0.500% and (c) the one-month LIBOR rate plus 1.000%, plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.875% and for LIBOR borrowings ranges from 1.000% to 1.875%, and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including maintaining a minimum fixed charge ratio of 2.5 and a maximum consolidated leverage ratio of 3.0, subject to a step up to 3.5 following certain permitted acquisitions. The credit agreement also contains other covenants typical of unsecured facilities. As of March 31, 2017, we had $310.0 million in borrowings outstanding at a weighted average interest rate of 2.326%, of which $275.0 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 March 31, 2017.

Senior Notes

6 Months Ended

Mar. 31, 2017

Debt Disclosure [Abstract]

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 5.4% and the weighted average maturity is 8.7 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 March 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 March 31, 2017 and September 30, 2016:



	March 31, 2017						September 30, 2016
	Carrying Amounts			Fair Value			Carrying Amounts (1)			Fair Value (1)
	(In thousands)
The 2008 Senior Notes	$	131,000		$	136,675		$	131,000		$	139,902
The 2010 Senior Notes	185,000			191,669			185,000			195,715
Debt issuance costs	(280		)	(280		)	(376		)	(376		)
Total	$	315,720		$	328,064		$	315,624		$	335,241

(1) Balances as of September 30, 2016 have been recast as a result of the adoption of ASU 2015-03 to present debt issuance costs of $0.4 million as a direct deduction from the carrying amount of the Senior Notes.

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

6 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Restructuring Expenses

The following table summarizes our restructuring accruals related to certain FICO facility closures. The current portion and non-current portion is recorded in other accrued current liabilities and other long-term liabilities, respectively, within the accompanying condensed consolidated balance sheets. The balance for all the facilities charges will be paid by the end of our fiscal 2020.



	Accrual at			Cash Payments			Accrual at
	September 30, 2016			Cash Payments			March 31, 2017
	(In thousands)
Facilities charges	$	9,233		$	(1,458	)	$	7,775
Less: current portion	(4,266		)				(3,856		)
Non-current	$	4,967					$	3,919

Income Taxes	6 Months Ended
Income Taxes	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate The effective income tax rate was 24.3% and 28.1% during the quarters ended March 31, 2017 and 2016, respectively and (1.9)% and 24.3% during the six months ended March 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 six months ended March 31, 2017 was significantly impacted by the recording of excess tax benefits relating to stock awards that vested in December 2016. As a result of the adoption of ASU 2016-09 on October 1, 2016, we no longer record excess tax benefits as an increase to additional paid-in capital, but record such excess tax benefits on a prospective basis as a reduction of income tax expense, which amounted to $20.9 million for the six months ended March 31, 2017. We also anticipate the potential for increased periodic volatility in future effective tax rates as the impact of the continued application of ASU 2016-09 is dependent upon our future grants of stock-based compensation, our future stock price in relation to the fair value of awards on grant date and the exercise behavior of our stock option holders. The total unrecognized tax benefit for uncertain tax positions is estimated to be approximately $7.5 million and $6.8 million at March 31, 2017 and September 30, 2016, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.4 million and $0.3 million related to unrecognized tax benefits as of March 31, 2017 and September 30, 2016, respectively.

Earnings per Share

6 Months Ended

Mar. 31, 2017

Earnings Per Share [Abstract]

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, 2017 and 2016:



	Quarter Ended March 31,				Six Months Ended March 31,
	2017		2016		2017		2016
	(In thousands, except per share data)
Numerator for diluted and basic earnings per share:
Net Income	$	25,084	$	23,116	$	62,985	$	42,357
Denominator - share:
Basic weighted-average shares	31,017		31,268		31,003		31,226
Effect of dilutive securities	1,243		994		1,395		1,123
Diluted weighted-average shares	32,260		32,262		32,398		32,349
Earnings per share:
Basic	$	0.81	$	0.74	$	2.03	$	1.36
Diluted	$	0.78	$	0.72	$	1.94	$	1.31

We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were approximately 34,000 and 21,000 options excluded for the quarters ended March 31, 2017 and 2016, respectively. There were approximately 17,000 and 18,000 options excluded for the six months ended March 31, 2017 and 2016, respectively.

Segment Information

6 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

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 and six months ended March 31, 2017 and 2016:



	Quarter Ended March 31, 2017
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	86,013		$	63,628		$	11,608		$	—		$	161,249
Professional services	32,640			994			7,650			—			41,284
License	15,684			811			9,350			—			25,845
Total segment revenues	134,337			65,433			28,608			—			228,378
Segment operating expense	(99,454		)	(14,484		)	(31,152		)	(25,223		)	(170,313		)
Segment operating income (loss)	$	34,883		$	50,949		$	(2,544	)	$	(25,223	)	58,065
Unallocated share-based compensation expense													(14,712		)
Unallocated amortization expense													(3,312		)
Operating income													40,041
Unallocated interest expense, net													(6,578		)
Unallocated other expense, net													(327		)
Income before income taxes													$	33,136
Depreciation expense	$	3,959		$	236		$	1,202		$	341		$	5,738



	Quarter Ended March 31, 2016
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	80,751		$	59,265		$	10,727		$	—		$	150,743
Professional services	31,719			1,112			6,511			—			39,342
License	9,447			739			6,407			—			16,593
Total segment revenues	121,917			61,116			23,645			—			206,678
Segment operating expense	(87,955		)	(14,090		)	(27,120		)	(21,882		)	(151,047		)
Segment operating income (loss)	$	33,962		$	47,026		$	(3,475	)	$	(21,882	)	55,631
Unallocated share-based compensation expense													(13,600		)
Unallocated amortization expense													(3,507		)
Operating income													38,524
Unallocated interest expense, net													(6,815		)
Unallocated other expense, net													435
Income before income taxes													$	32,144
Depreciation expense	$	2,708		$	185		$	1,000		$	327		$	4,220



	Six Months Ended March 31, 2017
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	170,894		$	121,880		$	22,135		$	—		$	314,909
Professional services	66,981			1,515			16,331			—			84,827
License	31,227			1,420			15,595			—			48,242
Total segment revenues	269,102			124,815			54,061			—			447,978
Segment operating expense	(199,251		)	(27,803		)	(60,237		)	(49,856		)	(337,147		)
Segment operating income (loss)	$	69,851		$	97,012		$	(6,176	)	$	(49,856	)	110,831
Unallocated share-based compensation expense													(29,231		)
Unallocated amortization expense													(6,632		)
Operating income													74,968
Unallocated interest expense, net													(12,750		)
Unallocated other expense, net													(427		)
Income before income taxes													$	61,791
Depreciation expense	$	7,827		$	502		$	2,328		$	690		$	11,347



	Six Months Ended March 31, 2016
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	161,734		$	114,482		$	21,599		$	—		$	297,815
Professional services	58,845			1,860			12,789			—			73,494
License	21,479			776			13,190			—			35,445
Total segment revenues	242,058			117,118			47,578			—			406,754
Segment operating expense	(175,392		)	(28,259		)	(52,414		)	(45,944		)	(302,009		)
Segment operating income (loss)	$	66,666		$	88,859		$	(4,836	)	$	(45,944	)	104,745
Unallocated share-based compensation expense													(28,300		)
Unallocated amortization expense													(7,087		)
Operating income													69,358
Unallocated interest expense, net													(13,539		)
Unallocated other expense, net													101
Income before income taxes													$	55,920
Depreciation expense	$	5,452		$	362		$	1,635		$	632		$	8,081

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 34
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 41
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 33
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 12
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 32
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 26
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 35
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 40
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 42
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599

Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 29
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599

Reference 13: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 31
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-SubTopic 10
-Section 50
-Paragraph 30
-URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599

+ Details

Contingencies	6 Months Ended
Contingencies	Mar. 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.

Nature of Business (Policies)	6 Months Ended
Nature of Business (Policies)	Mar. 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, 2016. 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 Recently Adopted Accounting Pronouncements Effective October 1, 2016, we early adopted ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting” (“ASU 2016-09”). ASU 2016-09 simplifies several aspects of the accounting for share-based payment transactions, including income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. As a result of the adoption, we recognized $3.6 million and $20.9 million of excess tax benefits related to share-based payments in our provision for income taxes for the quarter and six months ended March 31, 2017, respectively. These items were historically recorded as additional paid-in capital. We elected to apply the change retrospectively in presentation to our condensed consolidated statements of cash flows and no longer classified the excess tax benefits from employee stock plans as a reduction from operating cash flows, which resulted in increases to both net cash provided by operating activities and net cash used in financing activities of $14.0 million for the six months ended March 31, 2016. Our adoption of ASU 2016-09 also impacted the calculation of diluted weighted-average shares under the treasury stock method as we no longer increase or decrease the assumed proceeds from an employee vesting in, or exercising, a share-based payment award by the amount of excess tax benefits or deficiencies taken to additional paid-in capital. For the quarter and six months ended March 31, 2017, the impact was immaterial. Given our historical practice of including employee withholding taxes paid within financing activities in the statement of cash flows, no prior period reclassifications are required by the clarifications on classification provided by ASU 2016-09. Furthermore, we elected to continue to estimate expected forfeitures of employee equity awards to determine the amount of compensation expense to be recognized in each period. Effective October 1, 2016, we retrospectively adopted ASU No. 2015-03, “Simplifying the Presentation of Debt Issuance” (“ASU 2015-03”). ASU 2015-03 requires an entity to present debt issuance costs related to a recognized debt liability, other than those relating to line-of-credit arrangements, in the balance sheet as a direct deduction from the related debt liability rather than as an asset. As a result of the adoption, at March 31, 2017, the amount of debt issuance costs reflected as a deduction of long-term debt was $0.3 million. At September 30, 2016, the amount of debt issuance costs reclassified from other assets to a deduction of long-term debt was $0.4 million. Recent Accounting Pronouncements Not Yet Adopted 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. Preliminarily, we plan to adopt Topic 606 in the first quarter of our fiscal 2019 using the retrospective transition method, and are continuing to evaluate the impact our pending adoption of Topic 606 will have on our consolidated financial statements. 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 in the first interim period of an entity's annual financial statements. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements. In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” (“ASU 2016-02”), which requires lessees to put most leases on their balance sheets but recognize the expenses on their income statements in a manner similar to current practice. ASU 2016-02 states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. ASU 2016-02 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the timing of our adoption and the impact that the updated standard will have on our consolidated financial statements.

Fair Value Measurements (Tables)

6 Months Ended

Mar. 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 March 31, 2017 and September 30, 2016:



March 31, 2017	Active Markets for Identical Instruments (Level 1)		Fair Value as of March 31, 2017
	(In thousands)
Assets:
Cash equivalents (1)	$	441	$	441
Marketable securities (2)	12,224		12,224
Total	$	12,665	$	12,665

September 30, 2016	Active Markets for Identical Instruments (Level 1)		Fair Value as of September 30, 2016
	(In thousands)
Assets:
Cash equivalents (1)	$	440	$	440
Marketable securities (2)	11,016		11,016
Total	$	11,456	$	11,456


(1)	Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2017 and September 30, 2016. Not included in these tables are cash deposits of $115.4 million and $75.5 million at March 31, 2017 and September 30, 2016, 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, 2017 and September 30, 2016.

Derivative Financial Instruments (Tables)

6 Months Ended

Mar. 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 March 31, 2017 and September 30, 2016:



	March 31, 2017
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	5,700	$	6,113	$	—
Buy foreign currency:
British pound (GBP)	GBP	4,479	$	5,600	$	—



	September 30, 2016
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	7,850	$	8,743	$	—
Buy foreign currency:
British pound (GBP)	GBP	7,721	$	10,000	$	—

Losses on Derivative Financial Instruments

osses) 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,
	2017		2016			2017			2016
	(In thousands)
Gains (losses) on foreign currency forward contracts	$	55	$	(956	)	$	(505	)	$	(1,255	)

Goodwill and Intangible Assets (Tables)

6 Months Ended

Mar. 31, 2017

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortization Expense



	Quarter Ended March 31,				Six Months Ended March 31,
	2017		2016		2017		2016
	(In thousands)
Cost of revenues	$	1,687	$	1,840	$	3,373	$	3,747
Selling, general and administrative expenses	1,625		1,667		3,259		3,340
	$	3,312	$	3,507	$	6,632	$	7,087

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2017 was as follows (in thousands):



Year Ended September 30,
2017 (excluding the six months ended March 31, 2017)	$	5,923
2018	6,254
2019	5,741
2020	3,555
2021	2,382
Thereafter	2,456
	$	26,311

Schedule of Goodwill

The following table summarizes changes to goodwill during the six months ended March 31, 2017, both in total and as allocated to our segments:



	Applications			Scores		Decision Management Software			Total
	(In thousands)
Balance at September 30, 2016	$	582,720		$	146,648	$	69,047		$	798,415
Foreign currency translation adjustment	(5,538		)	—		(457		)	(5,995		)
Balance at March 31, 2017	$	577,182		$	146,648	$	68,590		$	792,420

Composition of Certain Financial Statement Captions (Tables)

6 Months Ended

Mar. 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 March 31, 2017 and September 30, 2016:



	March 31, 2017			September 30, 2016
	(In thousands)
Property and equipment	$	127,721		$	126,760
Less: accumulated depreciation and amortization	(84,993		)	(81,638		)
	$	42,728		$	45,122

Senior Notes (Tables)

6 Months Ended

Mar. 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 March 31, 2017 and September 30, 2016:



	March 31, 2017						September 30, 2016
	Carrying Amounts			Fair Value			Carrying Amounts (1)			Fair Value (1)
	(In thousands)
The 2008 Senior Notes	$	131,000		$	136,675		$	131,000		$	139,902
The 2010 Senior Notes	185,000			191,669			185,000			195,715
Debt issuance costs	(280		)	(280		)	(376		)	(376		)
Total	$	315,720		$	328,064		$	315,624		$	335,241

- Definition

Tabular disclosure of long-debt instruments or arrangements, including identification, terms, features, collateral requirements and other information necessary to a fair presentation. These are debt arrangements that originally required repayment more than twelve months after issuance or greater than the normal operating cycle of the entity, if longer.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.22)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21475-112644

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6479336&loc=d3e64711-112823

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(e),(f))
-URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=64930739&loc=d3e28878-108400

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21538-112644

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21506-112644

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28541-108399

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=64930785&loc=d3e28551-108399

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6928386&loc=d3e21521-112644

+ Details

Restructuring Expenses (Tables)

6 Months Ended

Mar. 31, 2017

Restructuring and Related Activities [Abstract]

Schedule of Restructuring Accruals



	Accrual at			Cash Payments			Accrual at
	September 30, 2016			Cash Payments			March 31, 2017
	(In thousands)
Facilities charges	$	9,233		$	(1,458	)	$	7,775
Less: current portion	(4,266		)				(3,856		)
Non-current	$	4,967					$	3,919

Earnings per Share (Tables)

6 Months Ended

Mar. 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 and six months ended March 31, 2017 and 2016:



	Quarter Ended March 31,				Six Months Ended March 31,
	2017		2016		2017		2016
	(In thousands, except per share data)
Numerator for diluted and basic earnings per share:
Net Income	$	25,084	$	23,116	$	62,985	$	42,357
Denominator - share:
Basic weighted-average shares	31,017		31,268		31,003		31,226
Effect of dilutive securities	1,243		994		1,395		1,123
Diluted weighted-average shares	32,260		32,262		32,398		32,349
Earnings per share:
Basic	$	0.81	$	0.74	$	2.03	$	1.36
Diluted	$	0.78	$	0.72	$	1.94	$	1.31

Segment Information (Tables)

6 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Summary of Segment Information

The following tables summarize segment information for the quarters and six months ended March 31, 2017 and 2016:



	Quarter Ended March 31, 2017
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	86,013		$	63,628		$	11,608		$	—		$	161,249
Professional services	32,640			994			7,650			—			41,284
License	15,684			811			9,350			—			25,845
Total segment revenues	134,337			65,433			28,608			—			228,378
Segment operating expense	(99,454		)	(14,484		)	(31,152		)	(25,223		)	(170,313		)
Segment operating income (loss)	$	34,883		$	50,949		$	(2,544	)	$	(25,223	)	58,065
Unallocated share-based compensation expense													(14,712		)
Unallocated amortization expense													(3,312		)
Operating income													40,041
Unallocated interest expense, net													(6,578		)
Unallocated other expense, net													(327		)
Income before income taxes													$	33,136
Depreciation expense	$	3,959		$	236		$	1,202		$	341		$	5,738



	Quarter Ended March 31, 2016
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	80,751		$	59,265		$	10,727		$	—		$	150,743
Professional services	31,719			1,112			6,511			—			39,342
License	9,447			739			6,407			—			16,593
Total segment revenues	121,917			61,116			23,645			—			206,678
Segment operating expense	(87,955		)	(14,090		)	(27,120		)	(21,882		)	(151,047		)
Segment operating income (loss)	$	33,962		$	47,026		$	(3,475	)	$	(21,882	)	55,631
Unallocated share-based compensation expense													(13,600		)
Unallocated amortization expense													(3,507		)
Operating income													38,524
Unallocated interest expense, net													(6,815		)
Unallocated other expense, net													435
Income before income taxes													$	32,144
Depreciation expense	$	2,708		$	185		$	1,000		$	327		$	4,220



	Six Months Ended March 31, 2017
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	170,894		$	121,880		$	22,135		$	—		$	314,909
Professional services	66,981			1,515			16,331			—			84,827
License	31,227			1,420			15,595			—			48,242
Total segment revenues	269,102			124,815			54,061			—			447,978
Segment operating expense	(199,251		)	(27,803		)	(60,237		)	(49,856		)	(337,147		)
Segment operating income (loss)	$	69,851		$	97,012		$	(6,176	)	$	(49,856	)	110,831
Unallocated share-based compensation expense													(29,231		)
Unallocated amortization expense													(6,632		)
Operating income													74,968
Unallocated interest expense, net													(12,750		)
Unallocated other expense, net													(427		)
Income before income taxes													$	61,791
Depreciation expense	$	7,827		$	502		$	2,328		$	690		$	11,347



	Six Months Ended March 31, 2016
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	161,734		$	114,482		$	21,599		$	—		$	297,815
Professional services	58,845			1,860			12,789			—			73,494
License	21,479			776			13,190			—			35,445
Total segment revenues	242,058			117,118			47,578			—			406,754
Segment operating expense	(175,392		)	(28,259		)	(52,414		)	(45,944		)	(302,009		)
Segment operating income (loss)	$	66,666		$	88,859		$	(4,836	)	$	(45,944	)	104,745
Unallocated share-based compensation expense													(28,300		)
Unallocated amortization expense													(7,087		)
Operating income													69,358
Unallocated interest expense, net													(13,539		)
Unallocated other expense, net													101
Income before income taxes													$	55,920
Depreciation expense	$	5,452		$	362		$	1,635		$	632		$	8,081

Nature of Business - New Accounting Pronouncements (Detail) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2017	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs, net	$ 280	$ 280		$ 376
Accounting Standards Update 2015-03 \| Other Noncurrent Assets
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs, net				(400)
Accounting Standards Update 2015-03 \| Long-term Debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt issuance costs, net				$ 400
New Accounting Pronouncement, Early Adoption, Effect
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Employee service share-based compensation, tax benefit from compensation expense	$ 3,600	$ 20,900
New Accounting Pronouncement, Early Adoption, Effect \| Accounting Standard Updates 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Excess tax benefit from share-based compensation, operating activities			$ 14,000
Excess tax benefits from share-based compensation, financing activities			$ 14,000

Fair Value Measurements - Financial Assets Measured at Fair Value on Recurring Basis (Detail) - USD ($)
$ in Thousands

Mar. 31, 2017

Sep. 30, 2016

Assets:

Marketable securities

$ 12,224

$ 11,016

Cash deposits

115,400

75,500

Fair Value, Measurements, Recurring

Assets:

Cash equivalents

^[1]

441

440

Marketable securities

^[2]

12,224

11,016

Total

12,665

11,456

Fair Value, Measurements, Recurring | Active Markets for Identical Instruments (Level 1)

Assets:

Cash equivalents

^[1]

441

440

Marketable securities

^[2]

12,224

11,016

Total

$ 12,665

$ 11,456

[1]	Included in cash and cash equivalents on our condensed consolidated balance sheet at March 31, 2017 and September 30, 2016. Not included in these tables are cash deposits of $115.4 million and $75.5 million at March 31, 2017 and September 30, 2016, 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, 2017 and September 30, 2016.

- Definition

Investments in debt and equity securities which are categorized neither as held-to-maturity nor trading and which are intended to be sold or mature more than one year from the balance sheet date or operating cycle, if longer. Such securities are reported at fair value; unrealized gains (losses) related to Available-for-sale Securities are excluded from earnings and reported in a separate component of shareholders' equity (other comprehensive income), unless the Available-for-sale security is designated as a hedge or is determined to have had an other than temporary decline in fair value below its amortized cost basis. All or a portion of the unrealized holding gain (loss) of an Available-for-sale security that is designated as being hedged in a fair value hedge is recognized in earnings during the period of the hedge, as are other than temporary declines in fair value below the cost basis for investments in equity securities and debt securities that an entity intends to sell or it is more likely than not that it will be required to sell before the recovery of its amortized cost basis. Other than temporary declines in fair value below the cost basis for debt securities categorized as Available-for-sale that an entity does not intend to sell and for which it is not more likely than not that the entity will be required to sell before the recovery of its amortized cost basis are bifurcated into credit losses and losses related to all other factors. Other than temporary declines in fair value below cost basis related to credit losses are recognized in earnings, and losses related to all other factors are recognized in other comprehensive income.

+ References + Details

Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
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 Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, $ in Thousands	Mar. 31, 2017 GBP (£)	Mar. 31, 2017 EUR (€)	Mar. 31, 2017 USD ($)	Sep. 30, 2016 GBP (£)	Sep. 30, 2016 EUR (€)	Sep. 30, 2016 USD ($)
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		€ 5,700	6,113		€ 7,850	8,743
Foreign Exchange Contracts To Purchase British Pounds With US Dollars
Derivative [Line Items]
Fair value of forward foreign currency contracts to sell and buy foreign currency			0			0
Foreign Exchange Contracts To Purchase British Pounds With US Dollars \| Foreign currency forward contracts \| Short \| Not Designated as Hedging Instrument
Derivative [Line Items]
Contract amount of forward foreign currency contracts	£ 4,479		$ 5,600	£ 7,721		$ 10,000

Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Foreign currency forward contracts
Derivative [Line Items]
Gains (losses) on foreign currency forward contracts	$ 55	$ (956)	$ (505)	$ (1,255)

Goodwill and Intangible Assets - Amortization Expense Associated with Intangible Assets (Detail) - USD ($)
$ in Thousands

3 Months Ended

6 Months Ended

Mar. 31, 2017

Mar. 31, 2016

Mar. 31, 2017

Mar. 31, 2016

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

^[1]

$ 3,312

$ 3,507

$ 6,632

$ 7,087

Cost of revenues

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

1,687

1,840

3,373

3,747

Selling, general and administrative expenses

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

$ 1,625

$ 1,667

$ 3,259

$ 3,340

[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 4.

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Sep. 30, 2016
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross	$ 147.8	$ 149.4

Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Estimated future intangible asset amortization expense
2017 (excluding the six months ended March 31, 2017)	$ 5,923
2018	6,254
2019	5,741
2020	3,555
2021	2,382
Thereafter	2,456
Total	$ 26,311	$ 33,619

Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands	6 Months Ended
	Mar. 31, 2017 USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2016	$ 798,415
Foreign currency translation adjustment	(5,995)
Balance at March 31, 2017	792,420
Applications
Goodwill [Roll Forward]
Balance at September 30, 2016	582,720
Foreign currency translation adjustment	(5,538)
Balance at March 31, 2017	577,182
Scores
Goodwill [Roll Forward]
Balance at September 30, 2016	146,648
Foreign currency translation adjustment	0
Balance at March 31, 2017	146,648
Decision Management Software
Goodwill [Roll Forward]
Balance at September 30, 2016	69,047
Foreign currency translation adjustment	(457)
Balance at March 31, 2017	$ 68,590

Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands	Mar. 31, 2017	Sep. 30, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and equipment	$ 127,721	$ 126,760
Less: accumulated depreciation and amortization	(84,993)	(81,638)
Total	$ 42,728	$ 45,122

Revolving Line of Credit (Detail)	6 Months Ended
Revolving Line of Credit (Detail)	Mar. 31, 2017 USD ($)
Line of Credit Facility [Line Items]
Unsecured revolving line of credit	$ 400,000,000
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	3.0
Credit facility restrictive covenant, maximum consolidated leverage ratio step up	3.5
Borrowings outstanding	$ 310,000,000
Interest rate of borrowings outstanding	2.326%
Long-term Debt
Line of Credit Facility [Line Items]
Borrowings outstanding	$ 275,000,000
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)	Jul. 14, 2010 USD ($) Contract	May 07, 2008 USD ($) Contract	Mar. 31, 2017 USD ($)	Sep. 30, 2016 USD ($)
Debt Instrument [Line Items]
Senior Notes, weighted average interest rate			2.326%
Carrying value of Senior Notes			$ 315,720,000	$ 315,624,000
Fair value of Senior Notes			328,064,000	335,241,000
Debt issuance costs			(280,000)	(376,000)
Debt issuance costs, net			280,000	376,000
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			136,675,000	139,902,000
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	5.40%
Senior Notes, weighted average maturity (in years)	8 years 8 months
Carrying value of Senior Notes			185,000,000	185,000,000
Fair value of Senior Notes			$ 191,669,000	$ 195,715,000
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 - Summary of Restructuring Accruals and Certain Facility Closures (Detail) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2017	Sep. 30, 2016
Restructuring Reserve [Roll Forward]
Less: current portion	$ (3,856)	$ (4,266)
Non-current	3,919	$ 4,967
Facilities charges
Restructuring Reserve [Roll Forward]
Accrual at September 30, 2016	9,233
Cash Payments	(1,458)
Accrual at March 31, 2017	$ 7,775

Income Taxes (Detail) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
Income Taxes (Detail) - USD ($) $ in Millions	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016	Sep. 30, 2016
Income Tax Disclosure [Abstract]
Effective income tax rate	24.30%	28.10%	(1.90%)	24.30%
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized tax benefits, uncertain tax positions	$ 7.5		$ 7.5		$ 6.8
Unrecognized tax benefits, accrued interest	0.4		0.4		$ 0.3
New Accounting Pronouncement, Early Adoption, Effect
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Employee service share-based compensation, tax benefit from compensation expense	$ 3.6		$ 20.9

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		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 31, 2016
Numerator for diluted and basic earnings per share:
Net income	$ 25,084	$ 23,116	$ 62,985	$ 42,357
Denominator - share:
Basic weighted-average shares (in shares)	31,017	31,268	31,003	31,226
Effect of dilutive securities (in shares)	1,243	994	1,395	1,123
Diluted weighted-average shares (in shares)	32,260	32,262	32,398	32,349
Earnings per share:
Basic (in dollars per share)	$ 0.81	$ 0.74	$ 2.03	$ 1.36
Diluted (in dollars per share)	$ 0.78	$ 0.72	$ 1.94	$ 1.31

Earnings per Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Mar. 31, 2017	Mar. 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)	34	21	17	18

Segment Information - Additional Information (Detail)	6 Months Ended
Segment Information - Additional Information (Detail)	Mar. 31, 2017 Segment
Segment Reporting [Abstract]
Number of operating segments	3
Number of reportable segments	3