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Table of Contents
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 (Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2023
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-11689  
Fair Isaac Corporation
(Exact name of registrant as specified in its charter) 
Delaware94-1499887
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
5 West Mendenhall, Suite 10559715
Bozeman,Montana
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: 406-982-7276  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareFICONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Table of Contents
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
No
The number of shares of common stock outstanding on April 14, 2023 was 24,993,116 (excluding 63,863,667 shares held by us as treasury stock).


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TABLE OF CONTENTS
 
Item 1.
Item 2.
Item 3.
Item 4.
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 


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Table of Contents
PART I – FINANCIAL INFORMATION
Item 1. Unaudited Financial Statements
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31,
2023
September 30, 2022
 (In thousands, except par value data)
Assets
Current assets:
Cash and cash equivalents137,771 133,202
Accounts receivable, net338,239 322,410 
Prepaid expenses and other current assets45,316 29,103
Total current assets521,326484,715
Marketable securities29,580 24,515
Other investments1,232 1,135 
Property and equipment, net13,664 17,580 
Operating lease right-of-use assets29,638 36,688 
Goodwill774,330 761,067 
Intangible assets, net1,467 2,017 
Deferred income taxes30,618 11,803 
Other assets 100,576 102,514 
Total assets$1,502,431 $1,442,034 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable13,915 $17,273 
Accrued compensation and employee benefits65,863 97,893 
Other accrued liabilities68,152 66,248 
Deferred revenue118,348 120,045 
Current maturities on debt107,000 30,000 
Total current liabilities373,278 331,459 
Long-term debt 1,817,663 1,823,669 
Operating lease liabilities28,825 39,192 
Other liabilities53,458 49,661 
Total liabilities2,273,224 2,243,981 
Commitments and contingencies
Stockholders’ deficit:
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding)
  
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 25,016 and 25,154 shares outstanding at March 31, 2023 and September 30, 2022, respectively)
250 252 
Additional paid-in-capital1,281,270 1,299,588 
Treasury stock, at cost (63,841 and 63,703 shares at March 31, 2023 and September 30, 2022, respectively)
(5,110,421)(4,935,769)
Retained earnings3,157,877 2,958,684 
Accumulated other comprehensive loss(99,769)(124,702)
Total stockholders’ deficit(770,793)(801,947)
Total liabilities and stockholders’ deficit$1,502,431 $1,442,034 
See accompanying notes.
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FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

 Quarter Ended March 31,Six Months Ended March 31,
 2023202220232022
 (In thousands, except per share data)
Revenues:
On-premises and SaaS software$154,584 $149,088 $299,144 $275,426 
Professional services27,175 24,365 49,497 50,901 
Scores198,507 183,742 376,495 353,229 
Total revenues380,266 357,195 725,136 679,556 
Operating expenses:
Cost of revenues79,806 71,794 156,375 140,997 
Research and development40,266 36,387 76,899 75,367 
Selling, general and administrative100,158 96,414 193,153 194,462 
Amortization of intangible assets275 543 550 1,087 
Gain on product line asset sale  (1,941) 
Total operating expenses220,505 205,138 425,036 411,913 
Operating income159,761 152,057 300,100 267,643 
Interest expense, net(23,897)(17,211)(46,697)(29,406)
Other income (expense), net1,605 (2,361)1,969 (932)
Income before income taxes137,469 132,485 255,372 237,305 
Provision for income taxes35,919 28,102 56,179 47,963 
Net income101,550 104,383 199,193 189,342 
Other comprehensive income (loss):
Foreign currency translation adjustments6,552 (3,207)24,933 (5,345)
Comprehensive income$108,102 $101,176 $224,126 $183,997 
Earnings per share:
Basic$4.04 $3.99 $7.94 $7.10 
Diluted$4.00 $3.95 $7.83 $7.02 
Shares used in computing earnings per share:
Basic25,116 26,145 25,080 26,662 
Diluted25,419 26,421 25,431 26,978 

See accompanying notes.

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FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ DEFICIT
(Unaudited)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at December 31, 202225,155 $252 $1,244,271 $(4,996,624)$3,056,327 $(106,321)$(802,095)
Share-based compensation— — 27,053 — — — 27,053 
Issuance of treasury stock under employee stock plans32  9,946 2,468 — — 12,414 
Repurchases of common stock(171)(2)— (116,265)— — (116,267)
Net income— — — — 101,550 — 101,550 
Foreign currency translation adjustments— — — — — 6,552 6,552 
Balance at March 31, 202325,016 $250 $1,281,270 $(5,110,421)$3,157,877 $(99,769)$(770,793)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at December 31, 202126,509 $265 $1,208,365 $(4,339,039)$2,670,102 $(77,992)$(538,299)
Share-based compensation— — 27,936 — — — 27,936 
Issuance of treasury stock under employee stock plans52 1 5,979 3,762 — — 9,742 
Repurchases of common stock(579)(6) (263,965)— — (263,971)
Net income— — — — 104,383 — 104,383 
Foreign currency translation adjustments— — — — — (3,207)(3,207)
Balance at March 31, 202225,982 $260 $1,242,280 $(4,599,242)$2,774,485 $(81,199)$(663,416)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at September 30, 202225,154 $252 $1,299,588 $(4,935,769)$2,958,684 $(124,702)$(801,947)
Share-based compensation— — 56,755 — — — 56,755 
Issuance of treasury stock under employee stock plans212 2 (75,073)16,615 — — (58,456)
Repurchases of common stock(350)(4)— (191,267)— — (191,271)
Net income— — — — 199,193 — 199,193 
Foreign currency translation adjustments— — — — — 24,933 24,933 
Balance at March 31, 202325,016 $250 $1,281,270 $(5,110,421)$3,157,877 $(99,769)$(770,793)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(In thousands) SharesPar Value
Balance at September 30, 202127,568 $276 $1,237,348 $(3,857,855)$2,585,143 $(75,854)$(110,942)
Share-based compensation— — 57,814 — — — 57,814 
Issuance of treasury stock under employee stock plans237 2 (52,882)16,148 — — (36,732)
Repurchases of common stock(1,823)(18) (757,535)— — (757,553)
Net income— — — — 189,342 — 189,342 
Foreign currency translation adjustments— — — — — (5,345)(5,345)
Balance at March 31, 202225,982 $260 $1,242,280 $(4,599,242)$2,774,485 $(81,199)$(663,416)
See accompanying notes.
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FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Six Months Ended March 31,
 20232022
 (In thousands)
Cash flows from operating activities:
Net income$199,193 $189,342 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization8,294 10,656 
Share-based compensation56,755 57,814 
Deferred income taxes(18,360)3,004 
Net (gain) loss on marketable securities(1,681)3,209 
Non-cash operating lease costs7,613 8,166 
Provision for doubtful accounts738 650 
Gain on product line asset sale(1,941) 
Net loss on sales and abandonment of property and equipment24 166 
Changes in operating assets and liabilities:
Accounts receivable(13,789)33,098 
Prepaid expenses and other assets(17,078)5,179 
Accounts payable(2,810)(4,105)
Accrued compensation and employee benefits(32,318)(41,745)
Other liabilities(2,425)(14,159)
Deferred revenue29 (3,791)
Net cash provided by operating activities 182,244 247,484 
Cash flows from investing activities:
Purchases of property and equipment(2,377)(3,293)
Proceeds from sales of marketable securities4,631 3,354 
Purchases of marketable securities(8,015)(5,982)
Proceeds from product line asset sales, net of cash transferred(6,126)2,257 
Net cash used in investing activities(11,887)(3,664)
Cash flows from financing activities:
Proceeds from revolving line of credit and term loan228,000 800,000 
Payments on revolving line of credit and term loan(158,500)(806,750)
Proceeds from issuance of senior notes 550,000 
Payments on debt issuance costs (8,819)
Proceeds from issuance of treasury stock under employee stock plans15,217 11,117 
Taxes paid related to net share settlement of equity awards(73,672)(47,849)
Repurchases of common stock(184,290)(760,861)
Net cash used in financing activities (173,245)(263,162)
Effect of exchange rate changes on cash7,457 (1,793)
Increase (decrease) in cash and cash equivalents4,569 (21,135)
Cash and cash equivalents, beginning of period133,202 195,354 
Cash and cash equivalents, end of period$137,771 $174,219 
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds of $548 and $1,003 during the six-month periods ended March 31, 2023 and 2022, respectively
$72,800 $30,788 
Cash paid for interest$46,801 $21,368 
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable$9 $139 
Unsettled repurchases of common stock$6,981 $4,735 
See accompanying notes.
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FAIR ISAAC CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Business
Fair Isaac Corporation
Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” or “FICO”) is a leading applied analytics company. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO® Score operationalize analytics, enabling thousands of businesses in nearly 120 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive lenders, consumer reporting agencies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO® Scores — the standard measure in the U.S. of consumer credit risk — empowering them to increase financial literacy and manage their financial health.
Principles of Consolidation and Basis of Presentation
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2022. 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 appropriate levels of various accruals; variable considerations included in the transaction price and standalone selling price of each performance obligation for our customer contracts; 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
Recent Accounting Pronouncements Not Yet Adopted
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606, Revenue from Contacts with Customers, in order to align the recognition of a contract liability with the definition of a performance obligation. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which means that it will be effective for our fiscal year beginning October 1, 2023. Early adoption is permitted. We do not believe that adoption of ASU 2021-08 will have a significant impact on our condensed consolidated financial statements.
We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements.
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2. Fair Value Measurements
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.
Level 1 — uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of March 31, 2023 and September 30, 2022.
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 did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of March 31, 2023 and September 30, 2022.
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 did not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of March 31, 2023 and September 30, 2022.
The following tables represent financial assets that we measured at fair value on a recurring basis at March 31, 2023 and September 30, 2022:
March 31, 2023Active Markets for
Identical Instruments
(Level 1)
Fair Value as of
March 31, 2023
(In thousands)
Assets:
Cash equivalents (1)
$23,501 $23,501 
Marketable securities (2)
29,580 29,580 
Total$53,081 $53,081 
September 30, 2022Active Markets for
Identical Instruments
(Level 1)
Fair Value as of September 30, 2022
(In thousands)
Assets:
Cash equivalents (1)
$19,314 $19,314 
Marketable securities (2)
24,515 24,515 
Total$43,829 $43,829 
(1)Included in cash and cash equivalents on our condensed consolidated balance sheets at March 31, 2023 and September 30, 2022. Not included in these tables are cash deposits of $114.3 million and $113.9 million at March 31, 2023 and September 30, 2022, respectively.
(2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at March 31, 2023 and September 30, 2022.
See Note 7 for the fair value of our senior notes.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and six-month periods ended March 31, 2023 and 2022.
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3. Derivative Financial Instruments
We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar.
Foreign currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income (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, 2023 and September 30, 2022:
 March 31, 2023
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 11,500 $12,519 $ 
Buy foreign currency:
British pound (GBP)GBP 8,245 $10,200 $ 
Singapore dollar (SGD)SGD6,247 $4,700 $ 
 September 30, 2022
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 13,500 $13,158 $ 
Buy foreign currency:
British pound (GBP)GBP 11,848 $13,100 $ 
Singapore dollar (SGD)SGD6,169 $4,300 $ 
The foreign currency forward contracts were entered into on March 31, 2023 and September 30, 2022; therefore, their fair value was $0 on each of these dates.
Gains (losses) on derivative financial instruments were 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,
 2023202220232022
 (In thousands)
Gains (losses) on foreign currency forward contracts
$309 $(576)$1,613 $(14)

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4. Goodwill and Intangible Assets
Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is excluded from cost of revenues and selling, general and administrative expenses within the accompanying condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: 
 Quarter Ended March 31,Six Months Ended March 31,
 2023202220232022
 (In thousands)
Completed technology$125 $125 $250 $250 
Customer contracts and relationships150 418 300 837 
       Total$275 $543 $550 $1,087 

Estimated future intangible asset amortization expense associated with intangible assets existing at March 31, 2023 was as follows:
Year Ending September 30,(In thousands)
2023 (excluding the six months ended March 31, 2023)$550 
2024917 
       Total$1,467 
The following table summarizes changes to goodwill during the six months ended March 31, 2023, both in total and as allocated to our segments. We have not recognized any goodwill impairment losses to date. 
ScoresSoftwareTotal
 (In thousands)
Balance at September 30, 2022$146,648 $614,419 $761,067 
Foreign currency translation adjustment 13,263 13,263 
Balance at March 31, 2023$146,648 $627,682 $774,330 
5. Composition of Certain Financial Statement Captions
The following table presents the composition of property and equipment, net and other accrued liabilities at March 31, 2023 and September 30, 2022:
March 31,
2023
September 30,
2022
 (In thousands)
Property and equipment, net:
       Property and equipment$113,465 $112,411 
       Less: accumulated depreciation and amortization(99,801)(94,831)
           Total$13,664 $17,580 
Other accrued liabilities:
Interest payable$21,261 $21,314 
Current operating leases17,972 19,369 
Other28,919 25,565 
     Total$68,152 $66,248 
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6. Revolving Line of Credit and Term Loan
We have a $600 million unsecured revolving line of credit and a $300 million unsecured term loan with a syndicate of banks that mature on August 19, 2026. Borrowings under the revolving line of credit and term loan 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. The term loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter. In November 2022, we amended our credit agreement to replace the LIBOR reference rate with the Secured Overnight Financing Rate (“SOFR”) reference rate. Interest rates on amounts borrowed under the revolving line of credit and term loan are based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.5%, and (c) one-month adjusted term SOFR rate plus 1%, plus, in each case, an applicable margin, or (ii) an adjusted term SOFR rate plus an applicable margin. The applicable margin for base rate borrowings and for SOFR borrowings is determined based on our consolidated leverage ratio. The applicable margin for base rate borrowings ranges from 0% to 0.75% per annum and for SOFR borrowings ranges from 1% to 1.75% per annum. In addition, we must pay certain credit facility fees. The revolving line of credit and term loan contain certain restrictive covenants including a maximum consolidated leverage ratio of 3.5 to 1.0, subject to a step up to 4.0 to 1.0 following certain permitted acquisitions and subject to certain conditions, and a minimum interest coverage ratio of 3.0 to 1.0. The credit agreement also contains other covenants typical of unsecured credit facilities.
As of March 31, 2023, we had $357.0 million in borrowings outstanding under the revolving line of credit at a weighted-average interest rate of 6.343%, and $281.3 million in outstanding balance of the term loan at an interest rate of 6.529%, of which $531.3 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 agreement as of March 31, 2023.
7. Senior Notes
On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026.
On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028.
On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes,” and collectively with the 2018 Senior Notes and the 2019 Senior Notes, the “Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes.
The indentures for the Senior Notes contain certain covenants typical of unsecured obligations and we were in compliance as of March 31, 2023.
The following table presents the face values and fair values for the Senior Notes at March 31, 2023 and September 30, 2022:
 March 31, 2023September 30, 2022
 Face Value (*)Fair ValueFace Value (*) Fair Value
 (In thousands)
The 2018 Senior Notes$400,000 $393,000 $400,000 $381,500 
The 2019 Senior Notes and the 2021 Senior Notes900,000 823,500 900,000 767,250 
       Total $1,300,000 $1,216,500 $1,300,000 $1,148,750 
(*) The carrying value of the Senior Notes was the face value reduced by the net debt issuance costs of $12.9 million and $14.3 million at March 31, 2023 and September 30, 2022, respectively.
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8. Revenue from Contracts with Customers
Disaggregation of Revenue
The following tables provide information about disaggregated revenue by primary geographical market:

Quarter Ended March 31, 2023
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$197,039 $121,264 $318,303 84 %
Europe, Middle East and Africa1,154 40,199 41,353 11 %
Asia Pacific314 20,296 20,610 5 %
      Total$198,507 $181,759 $380,266 100 %

Quarter Ended March 31, 2022
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$175,091 $104,664 $279,755 78 %
Europe, Middle East and Africa1,252 34,128 35,380 10 %
Asia Pacific7,399 34,661 42,060 12 %
      Total$183,742 $173,453 $357,195 100 %

Six Months Ended March 31, 2023
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$370,336 $239,094 $609,430 84 %
Europe, Middle East and Africa2,502 71,191 73,693 10 %
Asia Pacific3,657 38,356 42,013 6 %
      Total$376,495 $348,641 $725,136 100 %
Six Months Ended March 31, 2022
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$340,803 $203,849 $544,652 80 %
Europe, Middle East and Africa2,745 71,526 74,271 11 %
Asia Pacific9,681 50,952 60,633 9 %
      Total$353,229 $326,327 $679,556 100 %
The following table provides information about disaggregated revenue for our Software segment by deployment method:
Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20232022202320222023202220232022
(Dollars in thousands)
On-premises software$73,473 $77,959 48 %52 %$138,395 $135,254 46 %49 %
SaaS software81,111 71,129 52 %48 %160,749 140,172 54 %51 %
Total on-premises and SaaS software$154,584 $149,088 100 %100 %$299,144 $275,426 100 %100 %
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The following table provides information about disaggregated revenue for our Software segment by product features:
Quarter Ended March 31,Percentage of revenuesSix Months Ended March 31,Percentage of revenues
20232022202320222023202220232022
(Dollars in thousands)
Platform software (*)$38,682 $