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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Sep. 30, 2010	Oct. 31, 2010	Mar. 31, 2010
Document and Entity Information [Abstract]
Entity Registrant Name	FAIR ISAAC CORP
Entity Central Index Key	0000814547
Document Type	10-K
Document Period End Date	Sep. 30, 2010
Amendment Flag	false
Document Fiscal Year Focus	2010
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--09-30
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Public Float			$ 770,150,790
Entity Common Stock, Shares Outstanding		39,887,143

Consolidated Balance Sheets - USD ($) $ in Thousands	12 Months Ended
Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2010	Sep. 30, 2009
Current assets:
Cash and cash equivalents	$ 146,199	$ 178,157
Marketable securities available for sale, current portion	68,615	139,673
Accounts receivable, net	113,187	101,742
Prepaid expenses and other current assets	19,174	22,986
Total current assets	347,175	442,558
Marketable securities available for sale, less current portion	4,367	61,371
Other investments	11,074	11,074
Property and equipment, net	30,975	34,340
Goodwill	665,953	667,640
Intangible assets, net	27,244	38,255
Deferred income taxes	27,774	38,100
Other assets	9,154	10,550
Total assets	1,123,716	1,303,888
Current liabilities:
Accounts payable	8,765	8,593
Accrued compensation and employee benefits	33,697	28,139
Other accrued liabilities	28,732	38,183
Deferred revenue	42,953	39,673
Current maturties on long-term debt	8,000	0
Total current liabilities	122,147	114,588
Revolving line of credit	0	295,000
Senior notes	512,000	275,000
Other liabilities	14,655	19,031
Total liabilities	$ 648,802	$ 703,619
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 39,882 and 48,156 shares outstanding at September 30, 2010 and 2009, respectively)	399	482
Paid-in-capital	1,103,244	1,106,292
Treasury stock, at cost (48,975 and 40,701 shares at September 30, 2010 and 2009, respectively)	(1,556,253)	(1,375,400)
Retained earnings	947,202	886,324
Accumulated other comprehensive loss	(19,678)	(17,429)
Total stockholders' equity	474,914	600,269
Total liabilities and stockholders' equity	$ 1,123,716	$ 1,303,888

Consolidated Balance Sheets (Parenthetical) - USD ($) shares in Thousands	Sep. 30, 2010	Sep. 30, 2009
Stockholders' equity:
Preferred stock, par value	$ 0.01	$ 0.01
Preferred stock, shares authorized	1,000	1,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	200,000	200,000
Common stock, shares issued	88,857	88,857
Common stock, shares outstanding	39,882	48,156
Treasury stock, shares	48,975	40,701

Consolidated Statements of Income - USD ($)
shares in Thousands, $ in Thousands

12 Months Ended

Sep. 30, 2010

Sep. 30, 2009

Sep. 30, 2008

Revenues:

Transactional and maintenance

$ 455,487

$ 478,702

$ 535,955

Professional services

102,878

112,413

147,914

License

47,278

39,620

60,973

Total revenues

605,643

630,735

744,842

Operating expenses:

Cost of revenues

^[1]

180,932

206,448

274,917

Research and development

73,581

73,626

77,794

Selling, general and administrative

^[1]

225,263

209,319

245,639

Amortization of intangible assets

^[1]

10,901

12,891

14,043

Restructuring

1,617

8,711

10,166

Loss on sale of product line assets

2,993

Total operating expenses

492,294

513,988

622,559

Operating income

113,349

116,747

122,283

Interest income

1,688

4,717

8,802

Interest expense

(24,124)

(25,481)

(20,335)

Other income, net

1,391

1,587

2,245

Income from continuing operations before income taxes

92,304

97,570

112,995

Provision for income taxes

27,847

32,105

31,809

Income from continuing operations

64,457

65,465

81,186

Income (loss) from discontinued operations

(363)

2,766

Net income

$ 64,457

$ 65,102

$ 83,952

Basic earnings (loss) per share:

Continuing operations

$ 1.44

$ 1.35

$ 1.66

Discontinued operations

(0.01)

0.06

Total

1.44

1.34

1.72

Diluted earnings (loss) per share:

Continuing operations

1.42

1.34

1.64

Discontinued operations

(0.01)

0.06

Total

$ 1.42

$ 1.33

$ 1.7

Shares used in computing earnings (loss) per share:

Basic

44,903

48,658

48,940

Diluted

45,308

48,776

49,373

[1]	Cost of revenues and selling, general and administrative expenses exclude the amortization of intangible assets. See Note 9 to consolidated financial statements.

Consolidated Statements of Stockholders' Equity and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Statement [Line Items]
Beginning Balance	$ 600,269	$ 561,941	$ 566,314
Beginning Balance, shares	48,156
Share-based compensation	$ 17,305	19,935	27,981
Exercise of stock options	3,992	1,831	12,289
Tax effect from share based payment arrangements	(4,717)	(9,545)	(2,375)
Repurchases of common stock	(197,982)	(18,500)	(116,642)
Issuance of ESPP shares from treasury	37	2,800	8,454
Issuance of restricted stock to employees from treasury	(2,619)	(1,342)	(957)
Dividends paid ($0.08 per share)	(3,579)	(3,887)	(3,897)
Net income	64,457	65,102	83,952
Unrealized gains (losses) on investments, net of tax (benefit) of ($250), 232 and 25 during the years ended September 2010, 2009 and 2008 repsectively	(387)	359	38
Cumulative translation adjustments	(1,862)	(18,425)	(13,216)
Ending Balance	$ 474,914	$ 600,269	561,941
Ending Balance, shares	39,882	48,156
Common Stock
Statement [Line Items]
Beginning Balance	$ 482	$ 485	$ 511
Beginning Balance, shares	48,156	48,473	51,064
Exercise of stock options	$ 3	$ 1	$ 5
Exercise of stock options, shares	288	148	523
Forfeitures of restricted stock, shares		(2)	(35)
Repurchases of common stock	$ (88)	$ (8)	$ (35)
Repurchases of common stock, shares	(8,790)	(832)	(3,540)
Issuance of ESPP shares from treasury		$ 2	$ 3
Issuance of ESPP shares from treasury, shares	2	195	384
Issuance of restricted stock to employees from treasury	$ 2	$ 2	$ 1
Issuance of restricted stock to employees from treasury, shares	226	174	77
Ending Balance	$ 399	$ 482	$ 485
Ending Balance, shares	39,882	48,156	48,473
Paid-in-Capital
Statement [Line Items]
Beginning Balance	$ 1,106,292	$ 1,110,165	$ 1,097,327
Share-based compensation	17,305	19,935	27,981
Exercise of stock options	(5,539)	(3,197)	(5,594)
Tax effect from share based payment arrangements	(4,717)	(9,545)	(2,375)
Forfeitures of restricted stock		64	1,114
Issuance of ESPP shares from treasury	(18)	(3,848)	(4,691)
Issuance of restricted stock to employees from treasury	(10,079)	(7,282)	(3,597)
Ending Balance	1,103,244	1,106,292	1,110,165
Treasury Stock
Statement [Line Items]
Beginning Balance	(1,375,400)	(1,374,455)	(1,290,393)
Exercise of stock options	9,528	5,027	17,878
Forfeitures of restricted stock		(64)	(1,114)
Repurchases of common stock	(197,894)	(18,492)	(116,607)
Issuance of ESPP shares from treasury	55	6,646	13,142
Issuance of restricted stock to employees from treasury	7,458	5,938	2,639
Ending Balance	(1,556,253)	(1,375,400)	(1,374,455)
Retained Earnings
Statement [Line Items]
Beginning Balance	886,324	825,109	745,054
Dividends paid ($0.08 per share)	(3,579)	(3,887)	(3,897)
Net income	64,457	65,102	83,952
Ending Balance	947,202	886,324	825,109
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Beginning Balance	(17,429)	637	13,815
Unrealized gains (losses) on investments, net of tax (benefit) of ($250), 232 and 25 during the years ended September 2010, 2009 and 2008 repsectively	(387)	359	38
Cumulative translation adjustments	(1,862)	(18,425)	(13,216)
Ending Balance	(19,678)	(17,429)	637
Comprehensive Income
Statement [Line Items]
Beginning Balance	47,036	70,774
Net income	64,457	65,102	83,952
Unrealized gains (losses) on investments, net of tax (benefit) of ($250), 232 and 25 during the years ended September 2010, 2009 and 2008 repsectively	(387)	359	38
Cumulative translation adjustments	(1,862)	(18,425)	(13,216)
Ending Balance	$ 62,208	$ 47,036	$ 70,774

Consolidated Statements of Stockholders' Equity and Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Statement [Line Items]
Tax amount on unrealized gain (loss) on investment	$ (250)	$ 232	$ 25
Dividends paid, per share	$ 0.08	$ 0.08	$ 0.08
Accumulated Other Comprehensive Income (Loss)
Statement [Line Items]
Tax amount on unrealized gain (loss) on investment	$ (250)	$ 232	$ 25
Retained Earnings
Statement [Line Items]
Dividends paid, per share	$ 0.08	$ 0.08	$ 0.08
Comprehensive Income
Statement [Line Items]
Tax amount on unrealized gain (loss) on investment	$ (250)	$ 232	$ 25

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Cash flows from operating activities:
Net income	$ 64,457	$ 65,102	$ 83,952
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	30,918	38,419	39,494
Share-based compensation	17,305	19,935	27,981
Deferred income taxes	6,761	(5,031)	(23,095)
Tax effect from share based payment arrangements	(4,717)	(9,545)	(2,375)
Excess tax benefits from share-based payment arrangements	(1,158)	(280)	(1,342)
Gain on repurchase of senior convertible notes			(896)
Net amortization of premium on marketable securities	2,174	1,057	579
(Benefit from) Provision for doubtful accounts	(118)	499	3,414
Loss on sale of business unit			6,952
Loss on sale of product line assets		2,993
Net loss on sales of property and equipment	694	115	39
Changes in operating assets and liabilities, net of acquisition and disposition effects:
Accounts receivable	(11,561)	31,316	20,153
Prepaid expenses and other assets	315	36	1,766
Accounts payable	(317)	(2,519)	(1,569)
Accrued compensation and employee benefits	5,413	(976)	(13,363)
Other liabilities	(3,290)	3,214	14,033
Deferred revenue	(1,096)	7,298	3,427
Net cash provided by operating activities	105,780	151,633	159,150
Cash flows from investing activities:
Purchases of property and equipment	(17,453)	(13,958)	(22,780)
Cash proceeds from sales of property and equipment	50		1,527
Cash proceeds from sales of product line assets	2,182	4,000
Cash paid for acquisition, net of cash acquired			(33,336)
Cash proceeds from sale of business unit			15,581
Purchases of marketable securities	(71,749)	(197,274)	(161,803)
Proceeds from sale of marketable securities	10,014	7,400	2,008
Proceeds from maturities of marketable securities	187,593	116,585	167,684
Distribution from cost method investees		1,300
Net cash provided by (used in) investing activities	110,637	(81,947)	(31,119)
Cash flows from financing activities:
Proceeds from revolving line of credit			300,000
Payments on revolving line of credit	(295,000)		(175,000)
Proceeds from issuance of senior notes	245,000		275,000
Repayments of convertible debt			(390,067)
Debt issuance costs	(1,343)		(1,477)
Proceeds from issuances of common stock under employee stock option and purchase plans	1,410	3,289	19,786
Dividends paid	(3,579)	(3,887)	(3,897)
Repurchases of common stock	(196,119)	(18,500)	(116,642)
Excess tax benefits from share-based payment arrangements	1,158	280	1,342
Net cash used in financing activities	(248,473)	(18,818)	(90,955)
Effect of exchange rate changes on cash	98	(2,389)	(2,682)
Increase (Decrease) in cash and cash equivalents	(31,958)	48,479	34,394
Cash and cash equivalents, beginning of year	178,157	129,678	95,284
Cash and cash equivalents, end of year	146,199	178,157	129,678
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds of $457, $2,742 and $1,447 during the years ended September 30, 2010, 2009 and 2008, respectively	26,885	28,364	20,074
Cash paid for interest	$ 21,048	$ 26,189	$ 13,009

Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Sep. 30, 2010	Sep. 30, 2009	Sep. 30, 2008
Supplemental disclosures of cash flow information:
Income taxes refunds	$ 457	$ 2,742	$ 1,447

Nature of Business and Summary of Significant Accounting Policies

12 Months Ended

Sep. 30, 2010

Nature of Business and Summary of Significant Accounting Policies [Abstract]

Nature of Business and Summary of Significant Accounting Policies


1.	Nature of Business and Summary of Significant Accounting Policies

Fair Isaac Corporation

Incorporated under the laws of the State of Delaware, Fair Isaac Corporation (“FICO”) is a provider of analytic, software and data management products and services that enable businesses to automate, improve and connect decisions. FICO provides a range of analytical solutions, credit scoring and credit account management products and services to banks, credit reporting agencies, credit card processing agencies, insurers, retailers and healthcare organizations.

In these consolidated financial statements, FICO is referred to as “we,” “us,” “our,” or “FICO”.

Principles of Consolidation and Basis of Presentation

The consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. These estimates and assumptions include, but are not limited to, assessing the following: the recoverability of accounts receivable, goodwill and other intangible assets, software development costs, deferred tax assets, the benefits related to uncertain tax positions, the determination of the fair value of stock-based compensation, the ability to estimate hours in connection with fixed-fee service contracts, the ability to estimate transactional-based revenues for which actual transaction volumes have not yet been received, and the determination of whether fees are fixed or determinable and collection is probable or reasonably assured.

Cash and Cash Equivalents

Cash and cash equivalents consist of cash in banks and investments with a maturity of 90 days or less at time of purchase.

Fair Value of Financial Instruments

The fair value of certain of our financial instruments, including cash and cash equivalents, receivables, other current assets, accounts payable, accrued compensation and employee benefits, other accrued liabilities and amounts outstanding under our revolving line of credit, approximate their carrying amounts because of the short-term maturity of these instruments. The fair values of our cash and cash equivalents and marketable security investments are disclosed in Note 5. The fair value of our Senior Notes is disclosed in Note 12.

Investments

Management determines the appropriate classification of our investments in marketable debt and equity securities at the time of purchase, and re-evaluates this designation at each balance sheet date. While it is our intent to hold debt securities to maturity, our investments in U.S. government obligations and marketable equity and debt securities that have readily determinable fair values are classified as available-for-sale, as the sale of such securities may be required prior to maturity to implement management strategies. Therefore, such securities are carried at fair value with unrealized gains or losses related to these securities included in accumulated other comprehensive income (loss). The fair value of marketable securities is based upon inputs including quoted prices for identical or similar assets. Realized gains and losses are included in other income, net on the consolidated statements of income. The cost of investments sold is based on the specific identification method. Losses resulting from other than temporary declines in fair value are charged to operations. Investments with remaining maturities over one year are classified as long-term investments.

Our investments in equity securities of companies over which we do not have significant influence are accounted for under the cost method. Investments in which we own 20% to 50% and exercise significant influence over operating and financial policies are accounted for using the equity method. Under the equity method, the investment is originally recorded at cost and adjusted to recognize our share of net earnings or losses of the investee, limited to the extent of our investment in, advances to, and financial guarantees for the investee. Under the cost method, the investment is originally recorded at cost and adjusted for additional contributions or distributions. Management periodically reviews equity-method and cost-method investments for instances where fair value is less than the carrying amount and the decline in value is determined to be other than temporary. If the decline in value is judged to be other than temporary, the carrying amount of the security is written down to fair value and the resulting loss is charged to operations.

Concentration of Risk

Financial instruments that potentially expose us to concentrations of risk consist primarily of cash and cash equivalents, marketable securities and accounts receivable, which are generally not collateralized. Our policy is to place our cash, cash equivalents, and marketable securities with high quality financial institutions, commercial corporations and government agencies in order to limit the amount of credit exposure. We have established guidelines relative to diversification and maturities for maintaining safety and liquidity. We generally do not require collateral from our customers, but our credit extension and collection policies include analyzing the financial condition of potential customers, establishing credit limits, monitoring payments, and aggressively pursuing delinquent accounts. We maintain allowances for potential credit losses.

A significant portion of our revenues are derived from the sales of products and services to the consumer credit, banking and insurance industries.

Property and Equipment

Property and equipment are recorded at cost less accumulated depreciation and amortization. Major renewals and improvements are capitalized, while repair and maintenance costs are expensed as incurred. Depreciation and amortization charges are calculated using the straight-line method over the following estimated useful lives:


		Estimated Useful Life

Data processing equipment and software		2 to 3 years
Office furniture and equipment		3 to 7 years
Leasehold improvements		Shorter of estimated useful life or lease term

The cost and accumulated depreciation for property and equipment sold, retired or otherwise disposed of are removed from the applicable accounts and resulting gains or losses are recorded in our consolidated statement of operations. Depreciation and amortization on property and equipment totaled $20.0 million, $25.5 million and $24.1 million during fiscal 2010, 2009 and 2008, respectively.

Internal-use Software

Costs incurred to develop internal-use software during the application development stage are capitalized and reported at cost, subject to an impairment test as described below. Application development stage costs generally include costs associated with internal-use software configuration, coding, installation and testing. Costs of significant upgrades and enhancements that result in additional functionality are also capitalized whereas costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. Capitalized costs are amortized using the straight-line method over two to three years.

We assess potential impairment of capitalized internal-use software whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset group to the future undiscounted net cash flows that are expected to be generated by the asset group. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of the carrying amount or fair value less costs to sell. During fiscal 2010, we impaired $0.6 million of previously capitalized internal-use software. We did not capitalize any internal use software in fiscal 2010 while capitalizing $0.3 million in fiscal 2009 and 2008. We did not amortize any internal-use software in fiscal 2010 while amortizing $0.3 million and $0.6 million in fiscal 2009 and 2008, respectively.

Capitalized Software and Research and Development Costs

All costs incurred prior to the resolution of unproven functionality and features, including new technologies, are expensed as research and development costs. Software development costs incurred between completion of a working prototype and general availability of the related products have not been significant and have been expensed as incurred. Technological feasibility for our products occurs approximately concurrently with the general release of our products, accordingly, we have not capitalized any development or production costs. Costs we incur to maintain and support our existing products after the general release of the product are expensed in the period they are incurred and included in research and development costs in our statements of operations. Research and development costs totaled $73.6 million, $73.6 million and $77.8 million in fiscal 2010, 2009 and 2008, respectively.

Goodwill and Intangible Assets

Goodwill represents the excess of the purchase price over the fair value of net assets acquired in connection with our business combinations accounted for by the purchase method of accounting (see Note 9). We test goodwill for impairment at the reporting unit level at least annually during the fourth quarter of each fiscal year and more frequently if impairment indicators are identified. We have determined that our reporting units are the same as our reportable segments. The first step of the goodwill impairment test is a comparison of the fair value of a reporting unit to its carrying value. We estimate the fair values of our reporting units using discounted cash flow valuation models and by comparing our reporting units to guideline publicly-traded companies. These methods require estimates of our future revenues, profits, capital expenditures, working capital, and other relevant factors, as well as selecting appropriate guideline publicly-traded companies for each reporting unit. We estimate these amounts by evaluating historical trends, current budgets, operating plans, industry data, and other relevant factors.

Definite-lived intangible assets are tested for impairment if impairment indicators arise. We amortize our definite-lived intangible assets, which result from our acquisitions accounted for under the purchase method of accounting, using the straight-line method or based on the forecasted cash flows associated with the assets over the following estimated useful lives:


		Estimated Useful Life

Completed technology		4 to 6 years
Customer contracts and relationships		2 to 15 years
Trade names		5 years

Revenue Recognition

Software Licenses

Software license fee revenue is recognized when persuasive evidence of an arrangement exists, software is made available to our customers, the fee is fixed or determinable and collection is probable. The determination of whether fees are fixed or determinable and collection is probable involves the use of assumptions. If at the outset of an arrangement we determine that the arrangement fee is not fixed or determinable, revenue is deferred until the arrangement fee becomes fixed or determinable, assuming all other revenue recognition criteria have been met. If at the outset of an arrangement we determine that collectability is not probable, revenue is deferred until the earlier of when collectability becomes probable or the receipt of payment. If there is uncertainty as to the customer’s acceptance of our deliverables, revenue is not recognized until the earlier of receipt of customer acceptance, expiration of the acceptance period, or when we can demonstrate we meet the acceptance criteria. We evaluate contract terms and customer information to ensure that these criteria are met prior to our recognition of license fee revenue.

We use the residual method to recognize revenue when an arrangement includes one or more elements to be delivered at a future date and vendor-specific objective evidence (“VSOE”) of the fair value of all undelivered elements exists. VSOE of fair value is based on the normal pricing practices for those products and services when sold separately by us and customer renewal rates for post-contract customer support services. Under the residual method, the fair value of the undelivered elements is deferred and the remaining portion of the arrangement fee is recognized as revenue. If evidence of the fair value of one or more undelivered elements does not exist, the revenue is deferred and recognized when delivery of those elements occurs or when fair value can be established. Changes to the elements in a software arrangement, the ability to identify VSOE for those elements, the fair value of the respective elements, and change to a product’s estimated life cycle could materially impact the amount of earned and unearned revenue.

When software licenses are sold together with implementation or consulting services, license fees are recognized upon delivery provided that the above criteria are met, payment of the license fees is not dependent upon the performance of the services, and the services do not provide significant customization or modification of the software products and are not essential to the functionality of the software that was delivered. For arrangements with services that are essential to the functionality of the software, the license and related service revenues are recognized using contract accounting as described below.

Revenues from post-contract customer support services, such as software maintenance, are recognized on a straight-line basis over the term of the support period. The majority of our software maintenance agreements provide technical support as well as unspecified software product upgrades and releases when and if made available by us during the term of the support period.

Transactional-based Revenues

Transactional-based revenue is recognized when persuasive evidence of an arrangement exists, fees are fixed or determinable, and collection is reasonably assured. Revenues from our credit scoring, data processing, data management and internet delivery services are recognized as these services are performed. Revenues from transactional or unit-based license fees under software license arrangements, network service and internally-hosted software agreements are recognized based on minimum contractual amounts or on system usage that exceeds minimum contractual amounts. Certain of our transactional-based revenues are based on transaction or active account volumes as reported by our clients. In instances where volumes are reported to us in arrears, we estimate volumes based on preliminary customer transaction information or average actual reported volumes for an immediate trailing period. Differences between our estimates and actual final volumes reported are recorded in the period in which actual volumes are reported. We have not experienced significant variances between our estimates and actual reported volumes in the past and anticipate that we will be able to continue to make reasonable estimates in the future. If for some reason we were unable to reasonably estimate transaction volumes in the future, revenue may be deferred until actual customer data is received, and this could have a material impact on our consolidated results of operations.

Consulting Services

We provide consulting, training, model development and software integration services under both hourly-based time and materials and fixed-priced contracts. Revenues from these services are generally recognized as the services are performed. For fixed-price service contracts, we apply the percentage-of-completion method of contract accounting to determine progress towards completion, which requires the use of estimates. In such instances, management is required to estimate the input measures, generally based on hours incurred to date compared to total estimated hours of the project, with consideration also given to output measures, such as contract milestones, when applicable. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues and profits are subject to revisions as the contract progresses to completion. Estimated losses, if any, are recorded in the period in which current estimates of total contract revenue and contract costs indicate a loss. If substantive uncertainty related to customer acceptance of services exists, we apply the completed contract method of accounting and defer the associated revenue until the contract is completed. If we are unable to accurately estimate the input measures used for percentage-of-completion accounting, revenue would be deferred until the contract is complete, and this could have a material impact on our consolidated results of operations.

Hosting Services

We are an application service provider (“ASP”), where we provide hosting services that allow customers access to software that resides on our servers. The ASP model typically includes an up-front fee and a monthly commitment from the customer that commences upon completion of the implementation through the remainder of the contractual term. The up-front fee is the initial setup fee, or the implementation fee. The monthly commitment includes, but is not limited to, a fixed monthly fee or a transactional fee based on system usage that exceeds monthly minimums. Revenue is recognized from ASP when there is persuasive evidence of an arrangement, the service has been provided to the customer, the amount of fees is fixed or determinable and the collection of the Company’s fees is probable. We do not view the activities of signing the contract or providing initial setup services as discrete earnings events. Revenue is deferred until the date the customer commences use of our services at which point the up-front fees are recognized ratably over the contractual term of the customer arrangement. ASP transactional fees are recorded monthly as earned.

Non-Software Multiple-Deliverable Arrangements

Each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting if the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We consider a deliverable to have standalone value if we sell this item separately or if the item is sold by another vendor or could be resold by the customer. Further, our revenue arrangements generally do not include a general right of return relative to delivered products. Revenue for multiple element arrangements is allocated to the software and non-software deliverables based on a relative selling price. We use VSOE in our allocation of arrangement consideration when it is available. We define VSOE as a median price of recent standalone transactions that are priced within a narrow range, as defined by us. If a product or service is seldom sold separately, it is unlikely that we can determine VSOE. In circumstances when VSOE does not exist, we then assess whether we can obtain third-party evidence (“TPE”) of the selling price. It may be difficult for us to obtain sufficient information on competitor pricing to substantiate TPE and therefore we may not always be able to use TPE. When we are unable to establish selling price using VSOE or TPE, we use estimated selling price (“ESP”) in its allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact if the product or service were sold by us on a standalone basis. Our determination of ESP involves weighting several factors based on the specific facts and circumstances of each arrangement. The factors include, but are not limited to, geographies, market conditions, gross margin objectives, pricing practices and controls and customer segment pricing strategies and the product lifecycle. We analyze selling prices used in our allocation of arrangement consideration on an annual basis, or more frequently if necessary. Selling prices will be analyzed more frequently if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices.

Gross vs. Net Revenue Reporting

We apply accounting guidance to determine whether we report revenue for certain transactions based upon the gross amount billed to the customer, or the net amount retained by us. In accordance with the guidance we record revenue on a gross basis for sales in which we have acted as the principal and on a net basis for those sales in which we have in substance acted as an agent or broker in the transaction.

Allowance for Doubtful Accounts

We make estimates regarding the collectability of our accounts receivable. When we evaluate the adequacy of our allowance for doubtful accounts, we analyze specific accounts receivable balances, historical bad debts, customer creditworthiness, current economic trends and changes in our customer payment cycles. Material differences may result in the amount and timing of expense for any period if we were to make different judgments or utilize different estimates. If the financial condition of our customers deteriorates resulting in an impairment of their ability to make payments, additional allowances might be required.

Income Taxes

Income taxes are recognized during the year in which transactions enter into the determination of financial statement income, with deferred taxes being provided for temporary differences between amounts of assets and liabilities for financial reporting purposes and such amounts as measured by tax laws. A deferred income tax asset or liability is computed for the expected future impact of differences between the financial reporting and tax bases of assets and liabilities as well as the expected future tax benefit to be derived from tax loss and tax credit carryforwards. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amount “more likely than not” to be realized in future tax returns. Tax rate changes are reflected in income during the period the changes are enacted. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our consolidated statements of income.

Earnings per Share

Basic earnings per share are computed on the basis of the weighted-average number of common shares outstanding during the period under measurement. Diluted earnings per share are based on the weighted-average number of common shares outstanding and potential common shares. Potential common shares result from the assumed exercise of outstanding stock options or other potentially dilutive equity instruments, when they are dilutive under the treasury stock method or the if-converted method.

Comprehensive Income

Comprehensive income is the change in our equity (net assets) during each period from transactions and other events and circumstances from non-owner sources. It includes net income, foreign currency translation adjustments and unrealized gains and losses, net of tax, on our investments in marketable securities.

Foreign Currency

We have determined that the functional currency of each foreign operation is the local currency. Assets and liabilities denominated in their local foreign currencies are translated into U.S. dollars at the exchange rate on the balance sheet date. Revenues and expenses are translated at average rates of exchange prevailing during the period. Translation adjustments are accumulated as a separate component of consolidated stockholders’ equity.

At the end of the reporting period, foreign currency denominated receivables and liabilities are remeasured into the functional currency of the reporting entities at current market rates. The change in value from this remeasurement is reported as a foreign exchange gain or loss for that period in other income, net in the accompanying consolidated statements of income. We recorded ($1.2) million, $2.5 million and $2.0 million of transactional foreign currency exchange gains (losses) during 2010, 2009 and 2008, respectively.

Derivative Financial Instruments

From time to time, we utilize forward contract instruments to manage market risks associated with fluctuations in certain foreign currency exchange rates as they relate to specific balances of accounts receivable and cash denominated in foreign currencies. It is our policy to use derivative financial instruments to protect against market risks arising in the normal course of business. Our policies prohibit the use of derivative instruments for the sole purpose of trading for profit on price fluctuations or to enter into contracts that intentionally increase our underlying exposure. All of our forward foreign currency contracts have maturity periods of less than three months. Gains or losses from forward foreign currency contracts are included in other income, net.

Share-Based Compensation Expense

We amortize share-based compensation expense based upon the fair value of share-based awards on a straight-line basis over the requisite vesting period as defined in the applicable plan documents. Corporate income tax benefits realized upon exercise or vesting of an award in excess of that previously recognized in earnings, referred to as an excess tax benefit, is presented in the consolidated statements of cash flow as a financing activity. Realized excess tax benefits are credited to paid-in capital in the consolidated balance sheets. Realized shortfall tax benefits, amounts which are less than that previously recognized in earnings, are first offset against the cumulative balance of excess tax benefits, if any, and then charged directly to income tax expense. See Note 17 for further discussion of our share-based employee benefit plans.

Impairment of Long-Lived Assets

We assess potential impairment to long-lived assets and certain identifiable intangible assets with finite lives whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted net cash flows that are expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. We determined that our long-lived assets were not impaired at September 30, 2010, 2009 and 2008. Assets to be disposed are reported at the lower of the carrying amount or fair value less costs to sell.

Advertising and Promotion Costs

Advertising and promotion costs are expensed as incurred. Advertising and promotion costs totaled $3.0 million, $6.8 million and $1.9 million in fiscal 2010, 2009 and 2008, respectively, and are included in selling, general and administrative expenses in the accompanying consolidated statements of income.

Recently Issued Accounting Standards

Recently Adopted Accounting Standards

In January 2010, the Financial Accounting Standards Board (“FASB”) issued guidance to amend the disclosure requirements related to recurring and nonrecurring fair value measurements. The guidance requires new disclosures on the transfers of assets and liabilities between Level 1 (quoted prices in an active market for identical assets or liabilities) and Level 2 (significant other observable inputs) of the fair value measurement hierarchy, including the reasons and the timing of the transfers. Additionally, the guidance requires a roll forward of activities on purchases, sales, issuances, and settlements of the assets and liabilities measured using significant unobservable inputs (Level 3 fair value measurements). We adopted this guidance on January 1, 2010, except for the disclosure on the roll forward activities for Level 3 fair value measurements, which will become effective for us with the reporting period beginning October 1, 2011. Other than requiring additional disclosures, adoption of this new guidance does not have a material impact on our consolidated financial statements.

In October 2009, the FASB issued two new accounting standards that removed certain tangible products from the scope of software revenue recognition guidance and altered the accounting for revenue arrangements with non-software multiple deliverables. The new guidance narrows the definition of products subject to software accounting rules to exclude certain tangible products that contain software and non-software elements that function together to deliver the combined product’s essential functionality. As such, certain products that were previously accounted for under the scope of software revenue recognition guidance will no longer be accounted for as software. In addition, the guidance amended the accounting standards for non-software multiple deliverable revenue arrangements to: (i) provide updated guidance on whether multiple deliverables exist, how the deliverables in an arrangement should be separated, and how the consideration should be allocated; (ii) require an entity to allocate revenue in an arrangement using estimated selling prices (“ESP”) of deliverables if a vendor does not have vendor-specific objective evidence of selling price (“VSOE”) or third-party evidence of selling price (“TPE”); and (iii) eliminate the use of the residual method and require an entity to allocate revenue using the relative selling price method.

We elected to early adopt this accounting guidance and we have applied these standards to all applicable revenue arrangements entered into or materially modified beginning October 1, 2009. The adoption of these standards had an immaterial effect on our revenues, pre-tax income, net income and earnings per share during the year ended September 30, 2010.

When a sales arrangement contains multiple deliverables we allocate revenue to each deliverable based on a selling price hierarchy. The selling price for a deliverable is based on its VSOE if available, TPE if VSOE is not available, or ESP if neither VSOE nor TPE is available. VSOE is generally limited to the price charged when the same or similar product is sold separately. If a product or service is seldom sold separately, it is unlikely that we can determine VSOE for the product or service. We define VSOE as a median price of recent standalone transactions that are priced within a narrow range, as defined by us. TPE is determined based on the prices charged by our competitors for a similar deliverable when sold separately. It may be difficult for us to obtain sufficient information on competitor pricing to substantiate TPE and therefore we may not always be able to use TPE.

When we are unable to establish selling price using VSOE or TPE, we use ESP in its allocation of arrangement consideration. The objective of ESP is to determine the price at which we would transact if the product or service were sold by us on a standalone basis. Our determination of ESP involves weighting several factors based on the specific facts and circumstances of each arrangement. The factors include, but are not limited to, geographies, market conditions, gross margin objectives, pricing practices and controls and customer segment pricing strategies and the product lifecycle. We analyze selling prices used in our allocation of arrangement consideration on an annual basis, or more frequently if necessary. Selling prices will be analyzed more frequently if a significant change in our business necessitates a more timely analysis or if we experience significant variances in our selling prices.

Each deliverable within a multiple-deliverable revenue arrangement is accounted for as a separate unit of accounting under the guidance if both of the following criteria are met: (i) the delivered item or items have value to the customer on a standalone basis and (ii) for an arrangement that includes a general right of return relative to the delivered item(s), delivery or performance of the undelivered item(s) is considered probable and substantially in our control. We consider a deliverable to have standalone value if we sell this item separately or if the item is sold by another vendor or could be resold by the customer. Further, our revenue arrangements generally do not include a general right of return relative to delivered products. Revenue from multiple element arrangements is allocated to the software and non-software deliverables based on the relative selling prices of all of the deliverables in the arrangement using the hierarchy in the new revenue accounting guidance. In circumstances where we cannot determine VSOE or TPE of the selling price for all of the deliverables in the arrangement, including the software deliverable, ESP is used for the purposes of performing this allocation.

The adoption of this guidance did not result in a material change in our units of accounting or in how we allocate arrangement consideration to our units of accounting. In addition, we do not anticipate material changes in the pattern and timing of revenue recognition nor do we expect a material effect on our condensed financial statements in periods subsequent to adoption. However, the new guidance may facilitate our efforts to optimize our offerings due to better alignment between the economics of an arrangement and the accounting. This may lead to engaging in new go-to-market practices in the future. In particular, we expect that the new accounting standards will enable us to better integrate products and services without VSOE into existing offerings and solutions. As these go-to-market strategies evolve, we may modify pricing practices in the future which could result in changes in selling prices, including both VSOE and ESP.

On October 1, 2009 we adopted new guidance on the accounting for business combinations. The guidance states that business combinations will result in all assets and liabilities of an acquired business being recorded at their fair values including contingent assets and liabilities. It also requires the capitalization of in-process research and development at fair value and requires the expensing of acquisition-related costs as incurred. This guidance has been applied to all acquisitions contemplated subsequent to October 1, 2009.

In December 2007, the FASB issued new accounting guidance on non-controlling interests in consolidated financial statements. The guidance clarifies that a non-controlling or minority interest in a subsidiary is considered an ownership interest and, accordingly, requires all entities to report such interests in subsidiaries as equity in the consolidated financial statements. We adopted this guidance on October 1, 2009. The adoption of this guidance had an immaterial effect on our consolidated financial statements.

On October 1, 2009, we adopted the authoritative guidance on fair value measurement for nonfinancial assets and liabilities, except for items that are recognized or disclosed at fair value in the financial statements on a recurring basis (at least annually). Adoption of the new guidance did not impact our consolidated financial statements.

On October 1, 2009, we adopted new accounting guidance for measuring liabilities at fair value. This guidance clarifies that the quoted price for an identical liability is a Level 1 measurement when no adjustments to the quoted price are necessary. If quoted prices for identical liabilities are not available, the guidance provides valuation techniques to be used in determining the fair value of the liability. The adoption of this standard did not impact our consolidated financial statements during the year ended September 30, 2010.

In May 2008, the FASB issued new guidance on the accounting for convertible instruments that may be settled in cash upon conversion. The guidance requires that proceeds from the issuance of convertible debt instruments be allocated between debt (at a discount) and an equity component. The debt discount is amortized over the period the convertible debt is expected to be outstanding as additional non-cash interest expense. We adopted this guidance on October 1, 2009. The guidance changed the accounting treatment for our Senior Convertible Notes, which were issued in August 2003; however, the only retrospective adjustment to our financial statements is a reclassification between equity accounts. The guidance does not require retrospective adoption if the instruments were not outstanding during any of the periods presented in the annual financial statements for the period of adoption, or if restatement would only lead to a reclassification between its opening equity accounts for periods presented in the annual financial statements. As a result, the adoption of this guidance did not impact our consolidated financial statements.

On October 1, 2009, we adopted new guidance to be used in determining the useful life of intangible assets. The guidance amended the factors that should be considered in developing renewal or extension assumptions used to determine the useful life of a recognized intangible asset. This new guidance is intended to improve the consistency between the useful life of a recognized intangible asset and the period of expected cash flows used to measure the fair value of the asset. The adoption of this guidance did not affect our consolidated financial statements.

Accounting Standards not yet Adopted

In June 2009, the FASB issued new accounting guidance related to the consolidation of variable interest entities. The guidance requires revised evaluations of whether entities represent variable interest entities, ongoing assessments of control over such entities, and additional disclosures for variable interests. We do not believe the adoption of this guidance will have a material impact on our consolidated financial statements.

Acquisition

12 Months Ended

Sep. 30, 2010

Acquisition [Abstract]

Acquisition


2.	Acquisition

In January 2008, we acquired Dash Optimization (“Dash”), a leading provider of decision modeling and optimization software, for an aggregate cash purchase price of approximately $34.1 million. The acquisition of Dash was consummated principally to augment our decision management analytic tools. We accounted for this transaction using the purchase method of accounting and allocated the associated goodwill to our Tools segment. The results of Dash have been included in our operating results since the date of acquisition. The pro forma effects of this acquisition on our Consolidated Financial Statements were not material.

Discontinued Operations

12 Months Ended

Sep. 30, 2010

Discontinued Operations [Abstract]

Discontinued Operations


3.	Discontinued Operations

In April 2008, we completed the sale of our Insurance Bill Review business unit for $16.0 million in cash. At the time of the disposition, we recorded a $6.9 million pre-tax loss, but a $3.4 million after-tax gain on the sale as the amount of goodwill disposed of for income tax purposes exceeded the amount determined for financial reporting purposes. During fiscal 2009, we recorded an additional charge of $0.4 million, net of tax, as a result of an unfavorable final working capital adjustment.

The decision to sell the Insurance Bill Review business was the result of management’s decision to divest non-strategic businesses and focus resources on our core products and services. Insurance Bill Review was primarily associated with the Applications segment.

We determined that the Insurance Bill Review business was a discontinued operation and as a result we have segregated the net assets, net liabilities and operating results from continuing operations in our consolidated balance sheets and statements of income for all periods prior to the sale. Revenues from discontinued operations were $22.9 million for the year ended September 30, 2008. Pre-tax losses from discontinued operations were $1.1 million for the year ended September 30, 2008.

Sale of Product Line Assets

12 Months Ended

Sep. 30, 2010

Sale of Product Line Assets [Abstract]

Sale of Product Line Assets


4.	Sales of Product Line Assets

In June 2009, we sold the assets associated with our LiquidCredit^® for Telecom (“LCT”) and RoamEx^® product lines. LCT and RoamEx solutions were included in our Applications segment. The LCT sale, which was for $3.5 million, included a $0.5 million receivable for post-closing working capital adjustments. All post-closing working capital amounts were received in fiscal 2010. The primary assets sold included accounts receivable and goodwill. Included in the results of operations for fiscal 2009 were a $1.5 million pre-tax loss and a $2.1 million after-tax loss on the sale as the goodwill associated with the LCT solution product line was not deductible for income tax purposes. Revenues attributable to the LCT solutions product line were $9.1 million and $13.4 million during fiscal 2009 and 2008, respectively. The RoamEx sale, which was for $2.7 million, included a $1.4 million escrow balance and a $0.3 million receivable for post-closing working capital adjustments. All amounts included in escrow and applicable post-closing working capital adjustments were received in fiscal 2010. The primary assets sold included accounts receivable and goodwill. We recognized a $1.5 million pre-tax loss, and a $1.8 million after-tax loss on the sale as the goodwill associated with the RoamEx product line was not deductible for income tax purposes. Revenues attributable to the RoamEx product line were $6.6 million and $11.5 million in fiscal 2009 and 2008, respectively.

Cash, Cash Equivalents and Marketable Securities Available for Sale

12 Months Ended

Sep. 30, 2010

Cash, Cash Equivalents and Marketable Securities Available for Sale [Abstract]

Cash, Cash Equivalents and Marketable Securities Available for Sale


5.	Cash, Cash Equivalents and Marketable Securities Available for Sale

The following is a summary of cash, cash equivalents and marketable securities available for sale at September 30, 2010 and 2009:


	2010									2009
			Gross		Gross							Gross		Gross
	Amortized		Unrealized		Unrealized			Fair		Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value		Cost		Gains		Losses			Value
	(In thousands)

Cash and Cash Equivalents:
Cash	$	63,654	$	—	$	—		$	63,654	$	64,689	$	—	$	—		$	64,689
Money market funds		82,545		—		—			82,545		113,468		—		—			113,468

	$	146,199	$	—	$	—		$	146,199	$	178,157	$	—	$	—		$	178,157

Short-term Marketable Securities:
U.S. government obligations	$	48,325	$	42	$	—		$	48,367	$	102,575	$	460	$	—		$	103,035
U.S. corporate debt		2,972		9		—			2,981		8,735		31		—			8,766
Non U.S. corporate debt		17,257		13		(3	)		17,267		27,839		33		—			27,872

	$	68,554	$	64	$	(3	)	$	68,615	$	139,149	$	524	$	—		$	139,673

Long-term Marketable Securities:
U.S. government obligations	$	—	$	—	$	—		$	—	$	43,423	$	174	$	(22	)	$	43,575
U.S. corporate debt		—		—		—			—		2,928		3		—			2,931
Non U.S. corporate debt		—		—		—			—		11,086		19		—			11,105
Marketable equity securities		4,847		—		(480	)		4,367		4,580		—		(820	)		3,760

	$	4,847	$	—	$	(480	)	$	4,367	$	62,017	$	196	$	(842	)	$	61,371

Short-term marketable securities mature at various dates over the course of the next twelve months. Typically, our long-term U.S. government obligations and corporate debt investments have matured at various dates over a one to three year period. During fiscal 2010, 2009 and 2008, we did not recognize any material realized gains or losses on investments.

The long-term marketable equity securities represent 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.

The following table shows the gross unrealized losses and fair value of our investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2010 and 2009:


	2010
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(In thousands)

Description of Securities:
U.S. government obligations	$	—	$	—		$	—	$	—	$	—	$	—
Non U.S. corporate debt		2,255		(3	)		—		—		2,255		(3	)

	$	2,255	$	(3	)	$	—	$	—	$	2,255	$	(3	)


	2009
	Less Than 12 Months					12 Months or Greater				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(In thousands)

Description of Securities:
U.S. government obligations	$	1,253	$	(21	)	$	—	$	—	$	1,253	$	(21	)
Non U.S. corporate debt		2,076		(1	)		—		—		2,076		(1	)

	$	3,329	$	(22	)	$	—	$	—	$	3,329	$	(22	)

- Definition

The entire cash and cash equivalents footnote disclosure, which may include the types of deposits and money market instruments, applicable carrying amounts, restricted amounts and compensating balance arrangements. Cash and equivalents include: (1) currency on hand (2) demand deposits with banks or financial institutions (3) other kinds of accounts that have the general characteristics of demand deposits (4) short-term, highly liquid investments that are both readily convertible to known amounts of cash and so near their maturity that they present insignificant risk of changes in value because of changes in interest rates. Generally, only investments maturing within three months from the date of acquisition qualify. In addition, this item represents the entire disclosure related to Investments in Certain Debt and Equity Securities (and certain other trading assets) which include all debt and equity securities (other than those equity securities accounted for under the equity or cost methods of accounting) with readily determinable fair values. Other trading assets include assets that are carried on the balance sheet at fair value and held for trading purposes. A debt security represents a creditor relationship with an enterprise that is in the form of a security. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An ent ity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities (and other trading assets).

+ References + Details

Derivative Financial Instruments

12 Months Ended

Sep. 30, 2010

Derivative Financial Instruments [Abstract]

Derivative Financial Instruments


6.	Derivative Financial Instruments

We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign currency denominated accounts receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their functional currency. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign currency exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro and Canadian dollar.

Foreign currency denominated accounts receivable, liabilities and cash balances are re-measured at foreign currency rates in effect on the balance sheet date with the effects of changes in foreign currency rates reported in other income, net. The forward contracts are not designated as hedges and are marked to market through other income, net. Fair value changes in the forward contracts help mitigate the changes in the value of the re-measured accounts receivable and cash balances attributable to changes in foreign currency exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months.

The following table summarizes the fair value of our derivative instruments and their location in the consolidated balance sheet:

September 30, 2010

Assets

Liabilities

Derivatives not Designated as Hedging Instruments

Balance Sheet Location

Amount

Balance Sheet Location

Amount

(In thousands)

Foreign currency forward contracts

Other current assets

—

Other current liabilities

$—

The following table summarizes our outstanding forward foreign currency contracts, by currency at September 30, 2010 and 2009:

September 30, 2010

Contract Amount

Fair Value

Foreign

Currency

US$

(In thousands)

Sell foreign currency:

Canadian dollar (CAD)

CAD 1,300

1,258

—

Euro (EUR)

EUR 5,460

7,446

—

Buy foreign currency:

British pound (GBP)

GBP 3,672

5,800

—


	September 30, 2009
	Contract Amount				Fair Value
	Foreign
	Currency		US$		US$
	(In thousands)

Sell foreign currency:
Canadian dollar (CAD)		CAD 1,100	$	1,022	$	—
Euro (EUR)		EUR 6,100	$	8,908		—
Japanese yen (JPY)		JPY 61,000	$	679
Buy foreign currency:
British pound (GBP)		GBP 2,866	$	4,600		—

The forward foreign currency contracts were all entered into on September 30, 2010; therefore, the fair value was $0 on that date.

Gains (losses) on derivative financial instruments are recorded in our consolidated statements of income as a component of other income, net. These amounts are shown for the years ended September 30, 2010, 2009 and 2009:


	Year Ended September 30,
	2010		2009			2008
	(In thousands)

Foreign currency forward contracts	$	319	$	(2,064	)	$	(1,556	)

Fair Value Measurements

12 Months Ended

Sep. 30, 2010

Fair Value Measurements [Abstract]

Fair Value Measurements


7.	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 securities are comprised of money market funds and certain equity securities.

	•	Level 2 — uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. Our Level 2 securities are comprised of U.S. government and corporate debt obligations that are generally held to maturity.

	•	Level 3 — uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table represents financial assets that we measured at fair value on a recurring basis at September 30, 2010 and 2009, respectively:


	Active Markets for		Significant Other
	Identical Instruments		Observable Inputs		Fair Value as of
September 30, 2010	(Level 1)		(Level 2)		September 30, 2010

Assets:
Cash equivalents(1)	$	82,545	$	—	$	82,545
U.S. corporate debt(2)		—		2,981		2,981
Non U.S. corporate debt(2)		—		17,267		17,267
U.S. government obligations(2)		—		39,452		39,452
U.S. municipal obligations(2)		—		8,915		8,915
Marketable securities(3)		4,367		—		4,367

Total	$	86,912	$	68,615	$	155,527


	Active Markets for		Significant Other
	Identical Instruments		Observable Inputs		Fair Value as of
September 30, 2009	(Level 1)		(Level 2)		September 30, 2009

Assets:
Cash equivalents(1)	$	113,468	$	—	$	113,468
U.S. corporate debt(2)		—		11,697		11,697
Non U.S. corporate debt(2)		—		38,977		38,977
U.S. government obligations(2)		—		119,031		119,031
U.S. municipal obligations(2)		—		27,579		27,579
Marketable securities(3)		3,760		—		3,760

Total	$	117,228	$	197,284	$	314,512


(1)		Included in cash and cash equivalents on our balance sheet at September 30, 2010 and September 30, 2009. Not included in this table are cash deposits of $63.7 million and $64.7 million at September 30, 2010 and September 30, 2009, respectively.

(2)		Included in marketable securities (current and non-current) on our balance sheet at September 30, 2010 and 2009.

(3)		Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in long-term marketable securities on our balance sheet at September 30, 2010 and 2009.

Where applicable, we use quoted prices in active markets for identical assets or liabilities to determine fair value. This pricing applies to our Level 1 investments. To the extent quoted prices in active markets for assets or liabilities are not available, the valuation techniques used to measure the fair values of our financial assets incorporate market inputs, which include reported trades, broker/dealer quotes, benchmark yields, issuer spreads, benchmark securities and other inputs derived from or corroborated by observable market data. This methodology applies to our Level 2 investments. The Company has not changed its valuation techniques in measuring the fair value of any financial assets and liabilities during the period.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

We adopted the remaining provisions of the fair value measurement accounting and disclosure guidance related to non-financial assets and liabilities recognized or disclosed at fair value on a nonrecurring basis as of October 1, 2009. Assets and liabilities subject to this new guidance primarily includes goodwill and indefinite-lived intangible assets measured at fair value for the purposes of our annual impairment assessment.

Receivables

12 Months Ended

Sep. 30, 2010

Receivables [Abstract]

Receivables


8.	Receivables

Receivables at September 30, 2010 and 2009 consisted of the following:


	2010			2009
	(In thousands)

Billed	$	92,305		$	81,835
Unbilled		26,863			26,808

		119,168			108,643
Less: allowance for doubtful accounts		(5,981	)		(6,901	)

Receivables, net	$	113,187		$	101,742

Unbilled receivables represent revenue recorded in excess of amounts billable pursuant to contract provisions and generally become billable at contractually specified dates or upon the attainment of milestones. Unbilled amounts are expected to be realized within one year. During fiscal 2010, 2009 and 2008, we increased (decreased) our allowance for the provision for doubtful accounts by ($0.1) million, $0.5 million and $3.4 million, respectively, and wrote off receivables (net of recoveries) of $0.9 million, $1.4 million and $2.8 million, respectively. The remaining change to the allowance for doubtful accounts in fiscal 2010 of $0.1 million was due to an unfavorable change in foreign exchange rates.

Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2010

Goodwill and Intangible Assets [Abstract]

Goodwill and Intangible Assets


9.	Goodwill and Intangible Assets

Goodwill and intangible assets with indefinite lives are tested for impairment at least annually or more frequently if impairment indicators arise. Our other intangible assets have definite lives and are being amortized using the straight-line method or based on the forecasted cash flows associated with the assets over their estimated useful lives.

We have determined that our reporting units are the same as our reportable segments (see Note 20). We performed our annual goodwill impairment test, and determined that goodwill was not impaired as of July 1, 2010 and 2009.

Intangible assets that are subject to amortization consisted of the following at September 30, 2010 and 2009:


	2010										2009
	Gross										Gross
	Carrying		Accumulated						Average		Carrying		Accumulated					Average
	Amount		Amortization			Net			Life		Amount		Amortization			Net		Life
	(In thousands)

Completed technology	$	66,037	$	(63,344	)	$	2,693			4	$	75,287	$	(67,179	)	$	8,108		6
Customer contracts and relationships		60,756		(36,463	)		24,293			12		63,956		(34,315	)		29,641		12
Trade names		9,291		(8,972	)		319			5		9,291		(8,834	)		457		5

	$	136,084	$	(108,779	)		27,305			11	$	148,534	$	(110,328	)		38,206		10

Foreign currency translation adjustments							(61	)									49

Intangible assets, net						$	27,244									$	38,255

Amortization expense associated with our intangible assets, which has been reflected as a separate operating expense caption within the accompanying consolidated statements of income, consisted of the following during fiscal 2010, 2009 and 2008:


	2010		2009		2008
	(In thousands)

Cost of revenues	$	5,415	$	6,827	$	7,358
Selling, general and administrative expenses		5,486		6,064		6,685

	$	10,901	$	12,891	$	14,043

In the table above, cost of revenues reflects our amortization of completed technology, and selling, general and administrative expenses reflect our amortization of other intangible assets.

Estimated future intangible asset amortization expense associated with intangible assets existing at September 30, 2010, was as follows (in thousands):


Fiscal year

2011	$	7,721
2012		6,143
2013		4,136
2014		2,407
2015		2,407
Thereafter		4,430

	$	27,244

The following table summarizes changes to goodwill during fiscal 2010 and 2009, both in total and as allocated to our operating segments.


							Tools
	Applications						(Previously
	(Previously			Scores			Analytic
	Strategy			(Previously			Software			Professional
	Machines)			Scoring)			Tools)			Services			Total
							(In thousands)

Balance at September 30, 2008	$	516,785		$	88,192		$	68,240		$	12,865		$	686,082
Disposition of product lines		(4,145	)		(1,084	)		(139	)		—			(5,368	)
Foreign currency translation adjustment		(10,785	)		—			(2,289	)		—			(13,074	)

Balance at September 30, 2009	$	501,855		$	87,108		$	65,812		$	12,865		$	667,640
Segment reorganization (see Note 20)		(48,215	)		59,540			1,540			(12,865	)		—
Foreign currency translation adjustment		(1,392	)		—			(295	)		—			(1,687	)

Balance at September 30, 2010	$	452,248		$	146,648		$	67,057		$	—		$	665,953

During fiscal 2009 we sold our LCT and RoamEx^® product lines, which included goodwill of $3.0 million and $2.4 million, respectively (See Note 4).

Composition of Certain Financial Statement Captions

12 Months Ended

Sep. 30, 2010

Composition of Certain Financial Statement Captions [Abstract]

Composition of Certain Financial Statement Captions


10.	Composition of Certain Financial Statement Captions


	2010			2009
	(In thousands)

Property and equipment:
Data processing equipment and software	$	175,590		$	161,515
Office furniture and equipment		19,685			19,608
Leasehold improvements		22,850			24,945
Less: accumulated depreciation and amortization		(187,150	)		(171,728	)

	$	30,975		$	34,340

Other accrued liabilities:
Interest payable	$	10,152		$	7,539
Income taxes payable		3,797			18,695
Other		14,783			11,949

	$	28,732		$	38,183

Credit Agreement

12 Months Ended

Sep. 30, 2010

Credit Agreement [Abstract]

Credit Agreement


11.	Revolving Line of Credit

In October 2006, we entered into a five-year unsecured revolving credit facility with a syndicate of banks. The principal amount outstanding will be due and payable in full at maturity, on October 20, 2011. In July 2007, we entered into an amended and restated credit agreement that increased the revolving credit facility from $300 million to $600 million. Proceeds from the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of the Company’s common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate and (b) the Federal Funds rate plus 0.50% or (ii) LIBOR plus an applicable margin. The margin on LIBOR borrowings ranges from 0.30% to 0.55% and is determined based on our consolidated leverage ratio. In addition, we must pay utilization fees if borrowings and commitments under the credit facility exceed 50% of the total credit facility commitment, as well as facility fees. The credit facility contains certain restrictive covenants, including maintenance of consolidated leverage and fixed charge coverage ratios. The credit facility also contains covenants typical of unsecured facilities. We had $295.0 million of borrowings outstanding on this facility as of September 30, 2009. On July 14, 2010, we repaid all outstanding obligations under the revolving line of credit using proceeds from the issuance of $245.0 million of Senior Notes in a private placement to a group of institutional investors. As of September 30, 2010, we had no borrowings outstanding under the credit facility.

Senior Notes

12 Months Ended

Sep. 30, 2010

Senior Notes [Abstract]

Senior Notes


12.	Senior Notes

On May 7, 2008, we issued $275 million of Senior Notes in a private placement to a group of institutional investors. The Senior Notes were issued in four series as follows:


Series	Amount	Interest Rate			Maturity Date

A	$41 million		6.37	%	May 7, 2013
B	$40 million		6.37	%	May 7, 2015
C	$63 million		6.71	%	May 7, 2015
D	$131 million		7.18	%	May 7, 2018

We are required to pay the entire unpaid principal balances of each note series on its maturity date except for Series B notes, which requires five annual principal payments of $8.0 million starting on May 7, 2011 and ending on May 7, 2015.

On July 14, 2010, we issued $245 million of Senior Notes in a private placement to a group of institutional investors. The Senior Notes were issued in four series as follows:


Series	Amount	Interest Rate			Maturity Date

E	$60 million		4.72	%	July 14, 2016
F	$72 million		5.04	%	July 14, 2017
G	$28 million		5.42	%	July 14, 2019
H	$85 million		5.59	%	July 14, 2020

Interest is paid on the Senior Notes semi-annually and each of the Notes are subject to certain restrictive covenants including the maintenance of consolidated net debt to consolidated EBITDA and a fixed charge coverage ratio. The issuance of the Senior Notes also required us to make certain covenants typical of unsecured facilities. The fair value of the $275 million Senior Notes and the $245 million Senior Notes was $315.0 million and $258.7 million at September 30, 2010, respectively. We determined fair value based on quoted market prices and interest rate spreads of similar securities.

Future principal payments for the Senior Notes are as follows (in thousands):


Fiscal Year

2011	$	8,000
2012		8,000
2013		49,000
2014		8,000
2015		71,000
Thereafter		376,000

	$	520,000

Employee Benefit Plans

12 Months Ended

Sep. 30, 2010

Employee Benefit Plans [Abstract]

Employee Benefit Plans


13.	Employee Benefit Plans

Defined Contribution Plans

We sponsor the Fair Isaac Corporation 401(k) plan for eligible employees. Under this plan, eligible employees may contribute up to 25% of compensation, not to exceed statutory limits. We also provide a company matching contribution. Investment in FICO common stock is not an option under this plan. Our contributions into all 401(k) plans, including former acquired company sponsored plans that have since merged into the Fair Isaac Corporation 401(k) plan or have been frozen, totaled $5.4 million, $5.7 million and $7.1 million during fiscal 2010, 2009 and 2008, respectively.

Employee Incentive Plans

We maintain various employee incentive plans for the benefit of eligible employees, including officers. The awards generally are based on the achievement of certain financial and performance objectives subject to the discretion of management. Total expenses under our employee incentive plans were $5.4 million, $5.5 million and $2.1 million during fiscal 2010, 2009 and 2008, respectively.

Restructuring Expenses

12 Months Ended

Sep. 30, 2010

Restructuring Expenses [Abstract]

Restructuring Expenses


14.	Restructuring Expenses

During fiscal 2010, we incurred charges totaling $1.6 million as a result of $0.9 million in facilities charges from adjusting two lease exit accruals due to a reduction in estimated sublease income and $0.7 million in severance charges due to the elimination of 35 positions in the U.S., U.K. and India.

During fiscal 2009, we incurred net charges totaling $8.7 million consisting mainly of $5.9 million for severance costs associated with the reduction of 255 positions throughout the company and $2.6 million associated with vacating excess leased space. We also recognized a $1.2 million charge due to unfavorable sublease arrangements we entered into for lease space previously vacated. In addition, we reversed $0.6 million of accrued expenses as a result of a favorable lease termination agreement that we entered into for office space that was previously vacated and $0.4 million of previously recognized severance costs due to favorable adjustments. Cash payments for the severance costs were paid during fiscal 2009.

During fiscal 2008, we eliminated 280 positions across the company and incurred charges of $7.4 million for severance costs. Cash payments for the majority of the severance costs were paid in fiscal 2008. We also recognized charges of $2.7 million associated with vacating excess leased space. The charge represents future cash lease payments, net of sublease income, which will be paid out over the next four years. In addition, we recognized a net charge of $0.1 million as a result of unfavorable sublease arrangements associated with office space we vacated in prior years.

The following table summarizes our restructuring accruals associated with the above actions. The current portion and non-current portion was recorded in other accrued current liabilities and other liabilities, respectively, within the accompanying consolidated balance sheets.


	Accrual at											Accrual at
	September 30,			Expense		Cash			Expense			September 30,
	2007			Additions		Payments			Reversals			2008
	(In thousands)

Facilities charges	$	10,294		$	3,258	$	(3,419	)	$	(445	)	$	9,688
Employee separation		1,012			7,353		(7,435	)		—			930

		11,306		$	10,611	$	(10,854	)	$	(445	)		10,618

Less: current portion		(4,051	)										(4,224	)

Non-current	$	7,255										$	6,394


	Accrual at											Accrual at
	September 30,			Expense		Cash			Expense			September 30,
	2008			Additions		Payments			Reversals			2009
	(In thousands)

Facilities charges	$	9,688		$	3,876	$	(9,143	)	$	(650	)	$	3,771
Employee separation		930			5,860		(6,415	)		(375	)		—

		10,618		$	9,736	$	(15,558	)	$	(1,025	)		3,771

Less: current portion		(4,224	)										(1,361	)

Non-current	$	6,394										$	2,410


	Accrual at										Accrual at
	September 30,			Expense		Cash			Expense		September 30,
	2009			Additions		Payments			Reversals		2010
	(In thousands)

Facilities charges	$	3,771		$	875	$	(1,810	)	$	—	$	2,836
Employee separation		—			742		—			—		742

		3,771		$	1,617	$	(1,810	)	$	—		3,578

Less: current portion		(1,361	)									(1,474	)

Non-current	$	2,410									$	2,104

Income Taxes

12 Months Ended

Sep. 30, 2010

Income Taxes [Abstract]

Income Taxes


15.	Income Taxes

The provision for income taxes was as follows during fiscal 2010, 2009 and 2008:


	2010			2009			2008
	(In thousands)

Current:
Federal	$	10,190			16,704		$	42,070
State		4,406			4,979			6,816
Foreign		6,490			15,453			6,018

		21,086			37,136			54,904

Deferred:
Federal		7,761			(2,317	)		(26,203	)
State		(644	)		(2,018	)		(2,032	)
Foreign		(356	)		(696	)		5,140

		6,761			(5,031	)		(23,095	)

Total provision	$	27,847		$	32,105		$	31,809

The foreign provision was based on foreign pretax earnings of $25.3 million, $30.8 million and $25.3 million in fiscal 2010, 2009 and 2008, respectively. Current foreign tax expense related to foreign tax withholdings was $2.3 million, $5.0 million and $4.8 million in fiscal year 2010, 2009 and 2008, respectively.

Deferred tax assets and liabilities at September 30, 2010 and 2009 were as follows:


	2010			2009
	(In thousands)

Deferred tax assets:
Net operating loss carryforwards	$	10,004		$	10,449
Research credit carryforwards		1,028			4,333
Capital loss carryforwards		134			8,482
Investments		1,260			1,138
Accrued compensation		2,176			2,221
Share-based compensation		23,531			25,673
Deferred revenue		2,345			3,677
Accrued lease costs		1,611			1,909
Property and equipment		5,890			6,323
Capitalized R&D		323			1,593
Other		11,356			15,094

		59,658			80,892
Less valuation allowance		(3,540	)		(11,558	)

		56,118			69,334

Deferred tax liabilities:
Intangible assets		(19,732	)		(19,515	)
Prepaid expense		(4,534	)		(2,966	)
Other		(2,865	)		(2,865	)

		(27,131	)		(25,346	)

Deferred tax assets, net	$	28,987		$	43,988

Based upon the level of historical taxable income and projections for future taxable income over the periods that the deferred tax assets will reverse, management believes it is more likely than not that we will realize the benefits of the deferred tax asset, net of the existing valuation allowance at September 30, 2010.

For fiscal 2010, the decrease in the valuation allowance was largely due to the expiration of a significant portion of the U.S. capital loss carryforward. The remaining valuation allowance is associated with operations where the company has capital loss carryforwards where realization remains uncertain.

During fiscal 2010, the change in our net operating loss carryforwards were due to utilization of federal net operating loss that was partially offset by an increase to the foreign net operating loss. The decrease in the research credit carryforward was due to fiscal 2010 utilization. We acquired NOL and research credit carryforwards in connection with our acquisitions of Braun, London Bridge and HNC in fiscal 2005, 2004 and 2002, respectively. As of September 30, 2010, we had available U.S. federal, state and foreign NOL carryforwards of approximately $16.3 million, $4.9 million and $13.6 million, respectively. We also have available excess CA state research credit of approximately $1.0 million. The U.S. federal NOL carryforwards will expire at various dates beginning in fiscal 2021 through fiscal 2024, if not utilized. The state NOL carryforwards will begin to expire in fiscal 2021 through fiscal 2024, if not utilized. The U.S. federal research credit carryforwards will begin to expire in fiscal 2019 through 2022, if not utilized. Utilization of the U.S. federal and state NOL are subject to an annual limitation due to the “change in ownership” provisions of the Internal Revenue Code of 1986 (the “Code”), as amended, and similar state provisions.

The reconciliation between the U.S. federal statutory income tax rate of 35% and our effective tax rate is shown below for fiscal 2010, 2009 and 2008:


	2010			2009			2008
	(In thousands)

Income tax provision at U.S. federal statutory rate	$	32,306		$	34,150		$	39,549
State income taxes, net of U.S. federal benefit		2,452			1,383			2,723
Foreign taxes		(4,721	)		(3,469	)		(4,205	)
Research credits		(353	)		(1,950	)		(2,365	)
Domestic production deduction		(1,204	)		(1,421	)		(2,202	)
Reduction in valuation allowance		—			(148	)		(2,604	)
Other		(633	)		3,560			913

Recorded income tax provision	$	27,847		$	32,105		$	31,809

The decrease in our effective tax rate in fiscal 2010 compared with fiscal 2009 was largely due to a positive adjustment in our tax reserves and a benefit from the completion of a research and development credit study related to the acquisition of HNC Software. These benefits were partially offset by an adverse effect from the expiration of the US federal research credit. In addition, there were two large one-time adverse adjustments during fiscal 2009 associated with the finalization of UK statutory audits from prior years and the sale of our Roamex and Liquid Credit Telecom product lines.

Unrecognized Tax Benefit for Uncertain Tax Positions

We conduct business globally and, as a result, file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions. In the normal course of business, we are subject to examination by taxing authorities. With few exceptions, we are no longer subject to U.S. federal, state, local, or foreign income tax examinations for fiscal years prior to 2007. We are currently under audit by the IRS for tax returns filed for fiscal 2008 and by California Franchise Tax Board for fiscal 2003 through 2005. We do not anticipate any adjustments related to those audits that will result in a material change to our financial position.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:


	2010			2009			2008
	(In thousands)

Gross unrecognized tax benefits upon adoption on October 1	$	18,587		$	26,265		$	26,465
Gross increases for tax positions in prior periods		—			3,566			754
Gross decreases for tax positions in prior periods		(7,025	)		(2,141	)		(990	)
Gross increases based on tax positions related to the current year		724			1,802			2,099
Decreases for settlements and payments		—			(10,905	)		(2,063	)
Decreases due to statute expiration		—			—			—

Gross unrecognized tax benefits at September 30	$	12,286		$	18,587		$	26,265

We had $12.3 million of total unrecognized tax benefits as of September 30, 2010 of which we expect to recognize $8.9 million in fiscal 2011. Included in the $12.3 million of total gross unrecognized tax benefits as of September 30, 2010 was $9.6 million of tax benefits that, if recognized, would impact the effective tax rate.

We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our consolidated statements of income. We recognize interest earned related to income tax matters as interest income in our consolidated statements of income. As of September 30, 2010, we have accrued interest of $1.4 million related to the unrecognized tax benefits.

Stockholders' Equity

12 Months Ended

Sep. 30, 2010

Stockholders' Equity [Abstract]

Stockholders' Equity


16.	Stockholders’ Equity

Common Stock

From time to time, we repurchase our common stock in the open market pursuant to programs approved by our Board of Directors. During fiscal 2010, 2009 and 2008, we expended $198.0 million, $18.5 million and $116.6 million, respectively, in connection with our repurchase of common stock under such programs.

We paid quarterly dividends on common stock of two cents per share, or eight cents per year, during each of fiscal 2010, 2009 and 2008.

Stockholder Rights Plan

We maintain a stockholder rights plan pursuant to which one right to purchase preferred stock was distributed for each outstanding share of common stock held of record on August 21, 2001. Since this distribution, all newly issued shares of common stock have been accompanied by a preferred stock purchase right. In general, the rights will become exercisable and trade independently from the common stock if a person or group acquires or obtains the right to acquire 15 percent or more of the outstanding shares of common stock or commences a tender or exchange offer that would result in that person or group acquiring 15 percent or more of the outstanding shares of common stock, either event occurring without the consent of the Board of Directors. Each right represents a right to purchase Series A Participating Preferred Stock in an amount and at an exercise price that are subject to adjustment. The person or group who acquired 15 percent or more of the outstanding shares of common stock would not be entitled to make this purchase. The rights will expire in August 2011, or they may be redeemed by the Company at a price of $0.001 per right prior to that date.

Stock Based Employee Benefit Plans

12 Months Ended

Sep. 30, 2010

Stock-Based Employee Benefit Plans [Abstract]

Stock-Based Employee Benefit Plans


17.	Stock-Based Employee Benefit Plans

Description of Stock Option and Share Plans

We maintain the 1992 Long-term Incentive Plan (the “1992 Plan”) under which we may grant stock options, stock appreciation rights, restricted stock, restricted stock units and common stock to officers, key employees and non-employee directors. As of September 30, 2010, 5,756,253 shares remained available for grants under this plan. The 1992 Plan will terminate in February 2012. In November 2003, our Board of Directors approved the adoption of the 2003 Employment Inducement Award Plan (the “2003 Plan”). The 2003 Plan reserves 2,250,000 shares of common stock solely for the granting of inducement stock options and other awards, as defined, that meet the “employment inducement award” exception to the New York Stock Exchange’s listing standards requiring shareholder approval of equity-based inducement incentive plans. Except for the employment inducement award criteria, awards under the 2003 Plan will be generally consistent with those made under our 1992 Plan. As of September 30, 2010, 1,784,181 shares remained available for grants under this plan. The 2003 Plan shall remain in effect until terminated by the Board of Directors. Stock option awards typically had a maximum term of seven years and vested ratably over four years. Stock option awards granted prior to October 1, 2005, typically had a maximum term of ten years and vested ratably over four years.

We assumed all outstanding stock options held by former employees and non-employee directors of HNC Software, Inc. (“HNC”), who as of our acquisition date in fiscal 2002, held unexpired and unexercised stock option grants under the various HNC stock option plans. As of September 30, 2010, 827,723 shares remained available for future grant under these option plans.

Description of Employee Stock Purchase Plan

Under our Employee Stock Purchase Plan (“Purchase Plan”), we are authorized to issue up to 5,062,500 shares of common stock to eligible employees. Employees may have up to 10% of their base salary withheld through payroll deductions to purchase FICO common stock during semi-annual offering periods. The purchase price of the stock is 85% of the fair market value on the exercise date (the last day of each offering period). Offering period means approximately six-month periods commencing (a) on the first trading day on or after January 1 and terminating on the last trading day in the following June, and (b) on the first trading day on or after July 1 and terminating on the last trading day in the following December. The Purchase Plan was suspended effective January 1, 2009 and employees cannot contribute to the Purchase Plan until the suspension is repealed.

A total of approximately 192,000 and 384,000 shares of our common stock with a weighted average purchase price of $14.33 and $21.98 per share were issued under the Purchase Plan during fiscal 2009 and 2008, respectively. At September 30, 2010, 2,707,966 shares remained available for issuance.

Share-Based Compensation Expense

We recorded $17.3 million, $19.9 million and $27.7 million of share-based compensation expense for stock options, restricted stock units, non-vested shares and purchases under the Purchase Plan in fiscal years 2010, 2009 and 2008, respectively. The total tax benefit related to this share-based compensation expense was $6.6 million, $7.5 million and $10.3 million in fiscal 2010, 2009 and 2008, respectively. As of September 30, 2010, there was $29.7 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all equity compensation plans. Total unrecognized compensation cost will be adjusted for future changes in estimated forfeitures. We expect to recognize that cost over a weighted average period of 2.7 years.

Determining Fair Value

We estimate the fair value of stock options granted using the Black-Scholes option valuation model and we amortize the fair value on a straight-line basis over the vesting period. We used the following assumptions to estimate the fair value of our stock options during fiscal 2010, 2009 and 2008:


	2010			2009			2008

Stock Options:
Average expected term (years)		4.22			4.31			4.89
Expected volatility (range)		35-42	%		45-48	%		32-44	%
Weighted average volatility		41	%		47	%		34	%
Risk-free interest rate (range)		0.2-3.1	%		1.1-2.3	%		2.5-4.4	%
Average expected dividend yield		0.4	%		0.4	%		0.2	%
Expected dividend yield (range)		0.4-0.5	%		0.4	%		0.2-0.3	%

The fair value of restricted stock units and non-vested shares granted is the fair value of our common stock on the date of grant adjusted for the expected dividend yield. We amortize the fair value on a straight-line basis over the vesting period.

Expected Volatility. We estimate the volatility of our common stock at the date of grant based on a combination of the implied volatility of publicly traded options on our common stock and our historical volatility rate. Our decision to use implied volatility was based upon the availability of actively traded options on our common stock and our assessment that implied volatility is more representative of future stock price trends than historical volatility.

Expected Term. The expected term represents the period that our stock options are expected to be outstanding. We estimate the expected term based on historical experience of similar awards, giving consideration to the contractual terms of the stock-based awards, vesting schedules and expectations of future employee behavior.

Dividends. The dividend yield assumption is based on historical dividend payouts.

Risk-Free Interest Rate. The risk-free interest rate assumption is based on observed interest rates appropriate for the term of our employee options.

Forfeitures. We use historical data to estimate pre-vesting option forfeitures and record share-based compensation expense only for those awards that are expected to vest.

Stock-Based Activity

The following table summarizes option activity during fiscal 2010:


						Weighted-
				Weighted-		average
				average		Remaining		Aggregate
				Exercise		Contractual		Intrinsic
	Shares			Price		Term		Value
	(In thousands)					(In years)		(In thousands)

Outstanding at October 1, 2009		7,354		$	31.60
Granted		1,035			21.76
Exercised		(288	)		13.87
Forfeited		(241	)		24.53
Expired		(1,287	)		35.86

Outstanding at September 30, 2010		6,573		$	30.25		4.00	$	13,147

Options exercisable at September 30, 2010		4,685		$	33.66		3.31	$	3,847

The weighted average fair value of options granted during fiscal 2010, 2009 and 2008 were $7.58, $5.40 and $10.72, respectively. The aggregate intrinsic value of options outstanding at September 30, 2010 was calculated as the difference between the exercise price of the underlying options and the market price of our common stock for the 2.0 million shares that had exercise prices that were lower than the $24.66 market price of our common stock at September 30, 2010. The total intrinsic value of options exercised during fiscal 2010, 2009 and 2008 was $2.7 million, $0.8 million and $5.1 million, respectively, determined as of the date of exercise.

The following table summarizes restricted stock unit activity during fiscal 2010:


				Weighted-
				average
	Shares			Price
	(In thousands)

Outstanding at October 1, 2009		1,113		$	23.83
Granted		624			22.42
Released		(347	)		25.24
Forfeited		(179	)		23.36

Outstanding at September 30, 2010		1,211			22.78

The weighted average fair value of restricted stock units and non-vested shares granted during fiscal 2010, 2009 and 2008 were $22.05, $17.80 and $26.32, respectively. The total intrinsic value of restricted stock units and non-vested shares that vested during fiscal 2010, 2009 and 2008 was $7.7 million, $4.1 million and $4.1 million, respectively, determined as of the date of exercise.

We received $1.4 million in cash from stock option exercises and the issuance of stock under the Purchase Plan in fiscal 2010. The actual tax benefit that we realized for the tax deductions from option exercises totaled $1.1 million for that period.

Due primarily to our ongoing program of repurchasing shares on the open market; we had approximately 49.0 million treasury shares at September 30, 2010. We satisfy stock option exercises, Purchase Plan issuances and vesting of restricted stock units from this pool of treasury shares.

Earnings Per Share

12 Months Ended

Sep. 30, 2010

Earnings Per Share [Abstract]

Earnings Per Share


18.	Earnings Per Share

The following reconciles the numerators and denominators of basic and diluted earnings per share (“EPS”) from continuing operations during fiscal 2010, 2009 and 2008:


	2010		2009		2008
	(In thousands, except per share data)

Numerator for basic earnings per share: income from continuing operations	$	64,457	$	65,465	$	81,186
Interest expense on senior convertible notes, net of tax		—		—		3

Numerator for diluted earnings per share from continuing operations	$	64,457	$	65,465	$	81,189

Denominator — share:
Basic weighted-average shares		44,903		48,658		48,940
Effect of dilutive securities		405		118		433

Diluted weighted-average shares		45,308		48,776		49,373

Earnings per share from continuing operations:
Basic	$	1.44	$	1.35	$	1.66

Diluted	$	1.42	$	1.34	$	1.64

The computation of diluted EPS for fiscal 2010, 2009 and 2008 excludes options to purchase approximately 4,939,000, 7,189,000 and 7,769,000 shares of common stock, respectively, because the options’ exercise prices exceeded the average market price of our common stock in these fiscal years and their inclusion would be antidilutive.

Related Party Transactions

12 Months Ended

Sep. 30, 2010

Related Party Transactions


19.	Related Party Transactions

We have a $10 million investment in convertible preferred stock in a private company. The company is developing a range of products focused on revenue cycle activities for hospitals and healthcare providers. Related party revenues for the year ended September 30, 2010 included $0.1 million in transactional revenue and $0.3 million in professional services revenue. Related party revenues for the year ended September 30, 2009 included $0.3 million in maintenance revenue and $0.3 million in professional services revenue. Related party revenues for the year ended September 30, 2008 included $2.5 million in software license revenue, $0.1 million in maintenance revenue and $2.4 million in professional services revenue. The accounts receivable balance from this company was not significant as of September 30, 2010.

Segment Information

12 Months Ended

Sep. 30, 2010

Segment Information [Abstract]

Segment Information


20.	Segment Information

Effective October 1, 2009, we implemented an organizational restructuring resulting in a consolidation of our current operating segment structure from four segments to three. Also, in fiscal 2010, we changed our segment operating income reporting measure to exclude certain corporate general and administrative expenses. Previously, corporate expenses, which mainly include finance, legal and human resource related expenses, were allocated to the segments. In addition, amortization expense is no longer allocated to the individual segments. All periods presented have been restated to reflect these changes. The new segments are as follows:


	•	Applications. This segment includes the former Strategy Machine Solutions^TM segment, excluding our myFICO^® solutions for consumers, and associated professional services. Our Applications products are pre-configured Decision Management applications designed for a specific type of business problem or process, such as marketing, account origination, customer management, fraud and insurance claims management.

	•	Scores. This segment includes our business-to-business scoring solutions, our myFICO^® solutions for consumers (previously included in the Strategy Machine^tm Solutions segment) and associated professional services. Our scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly.

	•	Tools. This segment includes the former Analytic Software Tools segment and associated professional services. The Tools segment is composed of software tools that clients can use to create their own custom Decision Management applications.

The former Professional Services segment, which represents delivery and integration services, has been included within the applicable segment to which the services relate and is no longer its own segment.

Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above.

The following tables summarize segment information for fiscal 2010, 2009 and 2008:


	2010
										Unallocated
										Corporate
	Applications			Scores			Tools			Expenses			Total
	(In thousands)

Segment revenues:
Transactional and maintenance	$	257,275		$	170,141		$	28,071		$	—		$	455,487
Professional services		86,097			2,042			14,739			—			102,878
License		23,886			156			23,236			—			47,278

Total segment revenues		367,258			172,339			66,046			—			605,643
Segment operating expense		(273,983	)		(61,688	)		(57,634	)		(69,166	)		(462,471	)

Segment operating income	$	93,275		$	110,651		$	8,412		$	(69,166	)		143,172

Unallocated share-based compensation expense														(17,305	)
Unallocated amortization expense														(10,901	)
Unallocated restructuring expense														(1,617	)

Operating income														113.349
Unallocated interest income														1,688
Unallocated interest expense														(24,124	)
Unallocated other income, net														1,391

Income before income taxes													$	92,304

Depreciation expense	$	14,998		$	1,339		$	2,147		$	1,533		$	20,017


	2009
										Unallocated
										Corporate
	Applications			Scores			Tools			Expenses			Total
	(In thousands)

Segment revenues:
Transactional and maintenance	$	274,123		$	178,048		$	26,531		$	—		$	478,702
Professional services		92,000			1,527			18,886			—			112,413
License		17,007			—			22,613			—			39,620

Total segment revenues		383,130			179,575			68,030			—			630,735
Segment operating expense		(270,541	)		(57,373	)		(60,676	)		(80,868	)		(469,458	)

Segment operating income	$	112,589		$	122,202		$	7,354		$	(80,868	)		161,277

Unallocated share-based compensation expense														(19,935	)
Unallocated amortization expense														(12,891	)
Unallocated restructuring expense														(8,711	)
Unallocated loss on sale of product line assets														(2,993	)

Operating income														116,747
Unallocated interest income														4,717
Unallocated interest expense														(25,481	)
Unallocated other income, net														1,587

Income before income taxes													$	97,570

Depreciation expense	$	19,569		$	1,827		$	2,248		$	1,884		$	25,528


	2008
										Unallocated
										Corporate
	Applications			Scores			Tools			Expenses			Total
	(In thousands)

Segment revenues:
Transactional and maintenance	$	299,569		$	210,280		$	26,106		$	—		$	535,955
Professional services		115,855			1,622			30,437			—			147,914
License		35,026			—			25,947			—			60,973

Total segment revenues		450,450			211,902			82,490			—			744,842
Segment operating expense		(329,464	)		(68,264	)		(78,839	)		(94,059	)		(570,626	)

Segment operating income	$	120,986		$	143,638		$	3,651		$	(94,059	)		174,216

Unallocated share-based compensation expense														(27,724	)
Unallocated amortization expense														(14,043	)
Unallocated restructuring expense														(10,166	)

Operating income														122,283
Unallocated interest income														8,802
Unallocated interest expense														(20,335	)
Unallocated other income, net														2,245

Income before income taxes													$	112,995

Depreciation expense	$	18,636		$	1,282		$	2,042		$	2,138		$	24,098

Our revenues and percentage of revenues by reportable market segments were as follows for fiscal 2010, 2009 and 2008, the majority of which were derived from the sale of products and services within the banking and insurance industries:


	2010				2009				2008
	(Dollars in thousands)

Applications	$	367,258	61	%	$	383,130	61	%	$	450,450	61	%
Scores		172,339	28	%		179,575	28	%		211,902	28	%
Tools		66,046	11	%		68,030	11	%		82,490	11	%

	$	605,643	100	%	$	630,735	100	%	$	744,842	100	%

Within our Applications segment our customer management solutions accounted for 14%, 15% and 15% of total revenues in each of fiscal 2010, 2009 and 2008, respectively, our fraud solutions accounted for 20%, 20% and 18% of total revenues in each of these periods, respectively, and our marketing solutions accounted for 11%, 9% and 7% for each of these periods, respectively.

Our revenues and percentage of revenues on a geographical basis are summarized below for fiscal 2010, 2009 and 2008. No individual country outside of the United States accounted for 10% or more of revenue in any of these years.


	2010				2009				2008
	(Dollars in thousands)

United States	$	396,036	65	%	$	430,958	68	%	$	498,526	67	%
Other International		209,607	35	%		199,777	32	%		246,316	33	%

	$	605,643	100	%	$	630,735	100	%	$	744,842	100	%

During fiscal 2010, 2009 and 2008, no individual customer accounted for 10% or more of our total revenues; however, we derive a substantial portion of our revenues from our contracts with the three major credit reporting agencies, TransUnion, Equifax and Experian. Revenues collectively generated by agreements with these customers accounted for 20% of our total revenues in fiscal 2010. At September 30, 2010 and 2009, no individual customer accounted for 10% or more of total consolidated receivables.

Our property and equipment, net, on a geographical basis are summarized below at September 30, 2010 and 2009. At September 30, 2010 and 2009, no individual country outside of the United States accounted for 10% or more of total consolidated net property and equipment.


	2010				2009
	(Dollars in thousands)

United States	$	27,452	89	%	$	31,183	91	%
International		3,523	11	%		3,157	9	%

	$	30,975	100	%	$	34,340	100	%

Commitments

12 Months Ended

Sep. 30, 2010

Commitments [Abstract]

Commitments


21.	Commitments

Minimum future commitments under non-cancelable operating leases and other obligations were as follows at September 30, 2010:


	Future
	Minimum
	Lease		Other
Fiscal Year	Commitments		Commitments
	(In thousands)

2011	$	19,759	$	6,100
2012		16,687		5,100
2013		13,892		4,400
2014		13,758		2,600
2015		11,881		—
Thereafter		40,770		—

	$	116,747	$	18,200

Lease Commitments

The above amounts have been reduced by contractual sublease commitments totaling $0.9 million, $0.5 million, $0.2 million and $0.1 million, in fiscal 2011 through 2014, respectively. We occupy the majority of our facilities under non-cancelable operating leases with lease terms in excess of one year. Such facility leases generally provide for annual increases based upon the Consumer Price Index or fixed increments. Rent expense under operating leases, including month-to-month leases, totaled $22.6 million, $24.4 million and $28.6 million during fiscal 2010, 2009 and 2008, respectively.

Other Commitments

In the ordinary course of business, we enter into contractual purchase obligations and other agreements that are legally binding and specify certain minimum payment terms.

We are also a party to a management agreement with 23 of our executives providing for certain payments and other benefits in the event of a qualified change in control of FICO, coupled with a termination of the officer during the following year.

Contingencies

12 Months Ended

Sep. 30, 2010

Contingencies [Abstract]

Contingencies


22.	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 believe that none of these aforementioned claims or actions will result in a material adverse impact to our consolidated results of operations, liquidity or financial condition. However, the amount or range of any potential liabilities associated with these claims and actions, if any, cannot be determined with certainty. Set forth below are additional details concerning certain ongoing litigation.

Braun Consulting, Inc.

Braun (which we acquired in November 2004) was a defendant in a lawsuit filed on November 26, 2001, in the United States District Court for the Southern District of New York (Case No. 01 CV 10629) that alleges violations of federal securities laws in connection with Braun’s initial public offering in August 1999. This lawsuit is among approximately 300 coordinated putative class actions against certain issuers, their officers and directors, and underwriters with respect to such issuers’ initial public offerings. As successor-in-interest to Braun, we entered into a Stipulation and Agreement of Settlement along with most of the other defendant issuers in this coordinated litigation, where such issuers and their officers and directors would be dismissed with prejudice, subject to the satisfaction of certain conditions, including approval of the Court. Under the terms of this Agreement, we would not pay any amount of the settlement. However, since December 2006, certain procedural matters concerning the class status have been decided in the district and appellate courts of the Second Circuit, ultimately determining that no class status exists for the plaintiffs. Since there is no class status, there could be no agreement, thus the District Court entered an order formally denying the motion for final approval of the settlement agreement.

On April 2, 2009, a stipulation and agreement of settlement between the plaintiffs, issuer defendants and underwriter defendants was submitted to the United States District Court for the Southern District of New York for preliminary approval. This settlement requires no financial contribution from us. The Court granted the plaintiffs’ motion for preliminary approval and preliminarily certified the settlement classes on June 10, 2009. The settlement “fairness” hearing was held on September 10, 2009. The Court granted the plaintiffs’ motion for final approval of the settlement and certified the settlement classes on October 5, 2009. The Court determined that the settlement is fair to the class members, approved the settlement and dismissed, with prejudice, the case against the Company and its individual defendants. Notices of appeal of the opinion granting final approval have been filed. Due to the inherent uncertainties of litigation and because the settlement remains subject to appeal, the ultimate outcome of the matter is uncertain.

Guarantees

12 Months Ended

Sep. 30, 2010

Guarantees [Abstract]

Guarantees


23.	Guarantees

In the ordinary course of business, we are not subject to potential obligations under guarantees, except for standard indemnification and warranty provisions that are contained within many of our customer license and service agreements and certain supplier agreements, including underwriter agreements, as well as standard indemnification agreements that we have executed with certain of our officers and directors, and give rise only to the disclosure in the consolidated financial statements. In addition, we continue to monitor the conditions that are subject to the guarantees and indemnifications to identify whether it is probable that a loss has occurred, and would recognize any such losses under the guarantees and indemnifications when those losses are estimable.

Indemnification and warranty provisions contained within our customer license and service agreements and certain supplier agreements are generally consistent with those prevalent in our industry. The duration of our product warranties generally does not exceed 90 days following delivery of our products. We have not incurred significant obligations under customer indemnification or warranty provisions historically and do not expect to incur significant obligations in the future. Accordingly, we do not maintain accruals for potential customer indemnification or warranty-related obligations. The indemnification agreements that we have executed with certain of our officers and directors would require us to indemnify such officers and directors in certain instances. We have not incurred obligations under these indemnification agreements historically and do not expect to incur significant obligations in the future. Accordingly, we do not maintain accruals for potential officer or director indemnification obligations. The maximum potential amount of future payments that we could be required to make under the indemnification provisions in our customer license and service agreements, and officer and director agreements is unlimited.

Supplementary Financial Data (Unaudited)

12 Months Ended

Sep. 30, 2010

Supplementary Financial Data (Unaudited) [Abstract]

Supplementary Financial Data (Unaudited)


24.	Supplementary Financial Data (Unaudited)

The following table presents selected unaudited consolidated financial results for each of the eight quarters in the two-year period ended September 30, 2010. In the opinion of management, this unaudited information has been prepared on the same basis as the audited information and includes all adjustments (consisting of only normal recurring adjustments, except as noted below) necessary for a fair statement of the consolidated financial information for the period presented.


	December 31,		March 31,		June 30,		September 30,
	2009		2010		2010		2010
	(In thousands, except per share data)

Revenues	$	151,496	$	143,720	$	155,329	$	155,098
Cost of revenues(2)		42,519		44,641		45,316		48,456

Gross profit		108,977		99,079		110,013		106,642

Net income(3)		17,686		12,992		17,938		15,841

Earnings per share(1):
Basic	$	0.37	$	0.28	$	0.40	$	0.39

Diluted		0.37		0.28		0.40		0.38

Shares used in computing earnings per share:
Basic		47,606		46,447		44,446		41,141
Diluted		47,915		46,870		44,885		41,590


	December 31,		March 31,			June 30,		September 30,
	2008		2009			2009		2009
	(In thousands, except per share data)

Revenues	$	163,460	$	159,335		$	156,018	$	151,922
Cost of revenues(2)		59,019		53,476			48,160		45,793

Gross profit		104,441		105,859			107,858		106,129

Income from continuing operations		12,110		18,108			18,139		17,108
Loss from discontinued operations		—		(363	)		—		—

Net income(3)	$	12,110	$	17,745		$	18,139	$	17,108

Basic earnings (loss) per share(1):
Continuing operations	$	0.25	$	0.37		$	0.37	$	0.35
Discontinued operations		—		(0.01	)		—		—

Total	$	0.25	$	0.36		$	0.37	$	0.35

Diluted earnings (loss) per share(1):
Continuing operations	$	0.25	$	0.37		$	0.37	$	0.35
Discontinued operations		—		(0.01	)		—		—

Total	$	0.25	$	0.36		$	0.37	$	0.35

Shares used in computing earnings (loss) per share:
Basic		48,478		48,813			48,835		48,513
Diluted		48,522		48,828			48,986		48,772


(1)		Earnings per share is computed independently for each of the quarters presented. Therefore, the sum of the quarterly per share amounts may not equal the totals for the respective years.

(2)		Cost of revenues excludes amortization expense for the quarters ended December 31, 2008, March 31, 2009, June 30, 2009, September, 30, 2009, December 31, 2009, March 31, 2010, June 30, 2010 and September 30, 2010 of $1.7 million, $1.7 million, $1.7 million, $1.7 million, $1.7 million, $1.7 million, $1.3 million and $0.7 million, respectively.

(3)		Net income includes restructuring expenses (income) for the quarters ended December 31, 2008, March 31, 2009, June 30, 2009 and September 30, 2010 of $8.1 million, $0.9 million, ($0.2) million and $1.6 million, respectively.

Subsequent Events

12 Months Ended

Sep. 30, 2010

Subsequent Events [Abstract]

Subsequent Events


25.	Subsequent Events

For the year ended September 30, 2010, we have evaluated subsequent events for potential recognition and disclosure through the date of this filing.