View Filing Data

$ 262,256

$ 232,361

Operating expenses:

Cost of revenues

^[1]

76,066

74,432

Research and development

35,426

28,974

Amortization of intangible assets

^[1]

100,258

90,342

^[1]

1,502

1,788

Restructuring and acquisition-related

Total operating expenses

213,252

195,536

Other income (expense), net

49,004

36,825

Interest expense, net

(9,676)

(6,460)

(2,172)

513

Income before income taxes

37,156

30,878

(2,851)

(2,001)

Foreign currency translation adjustments

40,007

32,879

Other comprehensive income (loss):

(3,265)

3,071

$ 36,742

$ 35,950

Earnings per share:

$ 1.38

$ 1.09

Shares used in computing earnings per share:

$ 1.32

$ 1.04

Basic (in shares)

28,961

30,078

Diluted (in shares)

30,336

31,561

Transactional and Maintenance

$ 194,193

$ 170,403

Technology Service

40,808

43,128

License

$ 27,255

$ 18,830

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

CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Dec. 31, 2018 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Paid-in-Capital	Treasury Stock	Retained Earnings	Accumulated Other Comprehensive Loss
Beginning Balance (in shares) at Sep. 30, 2018		29,015
Beginning Balance at Sep. 30, 2018	$ 287,437	$ 290	$ 1,211,051	$ (2,612,007)	$ 1,764,524	$ (76,421)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation	21,854		21,854
Issuance of treasury stock under employee stock plans (in shares)		466
Issuance of treasury stock under employee stock plans	(35,438)	$ 5	(56,135)	20,692
Repurchases of common stock (in shares)		(425)
Repurchases of common stock	(82,700)	$ (4)		(82,696)
Net income	40,007				40,007
Foreign currency translation adjustments	(3,265)					(3,265)
Ending Balance (in shares) at Dec. 31, 2018		29,056
Ending Balance at Dec. 31, 2018	$ 227,895	$ 291	$ 1,176,770	$ (2,674,011)	$ 1,804,531	$ (79,686)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 40,007	$ 32,879
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	7,967	7,731
Share-based compensation	21,854	16,510
Deferred income taxes	(50)	(1,942)
Net (gain) loss on marketable securities	3,050	(90)
Provision for doubtful accounts, net	180	0
Net (gain) loss on sales of property and equipment	(22)	9
Changes in operating assets and liabilities:
Accounts receivable	18,191	4,516
Prepaid expenses and other assets	(10,787)	(6,315)
Accounts payable	1,671	(119)
Accrued compensation and employee benefits	(28,918)	(28,672)
Other liabilities	(4,848)	(1,267)
Deferred revenue	562	5,537
Net cash provided by operating activities	48,857	28,777
Cash flows from investing activities:
Purchases of property and equipment	(6,474)	(4,044)
Proceeds from sales of marketable securities	102	8
Purchases of marketable securities	(2,303)	(1,943)
Net cash used in investing activities	(8,675)	(5,979)
Cash flows from financing activities:
Proceeds from revolving line of credit	103,000	79,000
Payments on revolving line of credit	(35,000)	(20,000)
Payments on debt issuance costs	0	(240)
Proceeds from issuance of treasury stock under employee stock plans	7,550	693
Taxes paid related to net share settlement of equity awards	(42,987)	(38,867)
Repurchases of common stock	(82,700)	(55,263)
Net cash used in financing activities	(50,137)	(34,677)
Effect of exchange rate changes on cash	(172)	474
Decrease in cash and cash equivalents	(10,127)	(11,405)
Cash and cash equivalents, beginning of period	90,023	105,618
Cash and cash equivalents, end of period	79,896
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds	1,394	2,221
Cash paid for interest	13,439	7,087
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable	$ 433	$ 1,482

Nature of Business

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Nature of Business

Fair Isaac Corporation

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

In these condensed consolidated financial statements, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.”

Principles of Consolidation and Basis of Presentation

We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the year ended September 30, 2018. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year.

Effective October 1, 2018, we adopted Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”) using the full retrospective method. In connection with this adoption, the results and related disclosures for the comparative fiscal 2018 periods presented in this Form 10-Q were adjusted to be presented as if ASU 2014‑09 had been in effect during such fiscal 2018 periods. See New Accounting Pronouncements below and Note 8. All amounts and disclosures set forth in this Form 10-Q reflect these changes.

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

Use of Estimates

We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the collectability of accounts receivable; the appropriate levels of various accruals; labor hours in connection with fixed-fee service contracts; the amount of our tax provision and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates.

Revenue Recognition

Revenue is recognized when control of the promised goods or services is transferred to our customers, in an amount that reflects the consideration to which we expect to be entitled to in exchange for those goods or services.

See Note 8 for further discussion on revenues.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU 2014-09. The standard’s core principle is that a reporting entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from the contracts with customers. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (“full retrospective method”), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (“modified retrospective method”).

We adopted ASU 2014-09 in the first quarter of our fiscal 2019 using the full retrospective method which required us to adjust each prior reporting period presented. This adoption primarily affected timing of revenue recognition of license revenue on term licenses and transactional revenue on guaranteed minimum fees related to our on-premises software products. Under the new standard, we recognize revenue when control of the license is transferred to the customer, rather than at the date payments become due and payable when there are extended payment terms, or ratably over the term of the contract as required under the previous standard. In addition, revenue attributable to a software license renewal is recognized at the beginning of the applicable renewal period rather than at the signing of the renewal agreement as required under the previous standard. Additionally, under the new standard, when we enter into noncancellable contracts that provide unconditional rights to payment from our customers for services we have not yet completed or services we will provide in the near future, we present receivables — our unconditional rights to payments — and deferred revenues on a gross basis, rather than on a net basis. Finally, under the new standard we capitalize and amortize contract acquisition costs such as commissions paid for SaaS cloud services contracts in excess of one year. Following the adoption of ASU 2014-09, the revenue recognition for our other sales arrangements remained materially consistent with our historical practice.

Upon adoption of ASU 2014-09, we applied the standard’s practical expedients that permit the omission of prior-period information about our performance obligations.

Adoption of the standard impacted our previously reported results as follows:

Condensed Consolidated Balance Sheets



	September 30, 2018
	As Previously Reported	Adjustment		As Adjusted
	(In thousands)
Accounts receivable, net	208,865	57,877		266,742
Deferred income taxes	20,117	(6,312	)	13,805
Other assets	12,431	23,823		36,254
Other accrued liabilities	30,457	568		31,025
Deferred revenue	52,215	51,120		103,335
Stockholders’ equity	263,737	23,700		287,437

Condensed Consolidated Statements of Income and Comprehensive Income



	Quarter Ended December 31, 2017
	As Previously Reported	Adjustment		As Adjusted
	(In thousands, except per share amounts)
Revenues	235,321	(2,960	)	232,361
Cost of revenues	74,359	73		74,432
Selling, general and administrative	90,296	46		90,342
Provision for income taxes	6,658	(8,659	)	(2,001	)
Net income	27,299	5,580		32,879
Comprehensive income	30,370	5,580		35,950
Basic earnings per share	0.91	0.18		1.09
Diluted earnings per share	0.86	0.18		1.04

Condensed Consolidated Statement of Cash Flows



	Quarter Ended December 31, 2017
	As Previously Reported		Adjustment		As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	27,299		5,580		32,879
Deferred income taxes	6,717		(8,659	)	(1,942	)
Changes in operating assets and liabilities	(29,399	)	3,079		(26,320	)

Recent Accounting Pronouncements Not Yet Adopted

In February 2018, the FASB issued ASU No. 2018-02, “Income Statement — Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income” (“ASU 2018-02”). ASU 2018-02 allows reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act (defined below) and requires certain disclosures about stranded tax effects. The guidance is effective for fiscal years and interim periods beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. ASU 2018-02 should be applied either in the period of adoption or retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Act is recognized. We do not believe that adoption of ASU 2018-02 will have a significant impact on our consolidated financial statements.

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)” and subsequent amendments to the initial guidance: ASU 2017-13, ASU 2018-10, ASU 2018-11 and ASU 2018-20 (collectively, Topic 842). Topic 842 requires companies to generally recognize on the balance sheet operating and financing lease liabilities and corresponding right-of-use assets. Topic 842 is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2018, which means it will be effective for our fiscal year beginning October 1, 2019. Early adoption is permitted. We are currently evaluating the impact of our pending adoption of Topic 842 on our consolidated financial statements. We expect that most of our operating leases will be recognized as right-of-use assets and corresponding lease liabilities on our consolidated balance sheets, which will increase our total assets and total liabilities upon adoption.

Fair Value Measurements

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.


•	Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets are comprised of money market funds and certain equity securities.

•

Level 2 - uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We do not have any assets that are valued using inputs identified under a Level 2 hierarchy as of December 31, 2018 and September 30, 2018.

•

Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We do not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of December 31, 2018 and September 30, 2018.

The following tables represent financial assets that we measured at fair value on a recurring basis at December 31, 2018 and September 30, 2018:



December 31, 2018	Active Markets for Identical Instruments (Level 1)		Fair Value as of December 31, 2018
	(In thousands)
Assets:
Cash equivalents (1)	$	18,417	$	18,417
Marketable securities (2)	17,210		17,210
Total	$	35,627	$	35,627

September 30, 2018	Active Markets for Identical Instruments (Level 1)		Fair Value as of September 30, 2018
	(In thousands)
Assets:
Cash equivalents (1)	$	18,413	$	18,413
Marketable securities (2)	18,059		18,059
Total	$	36,472	$	36,472


(1)	Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018. Not included in these tables are cash deposits of $61.5 million and $71.6 million at December 31, 2018 and September 30, 2018, respectively.


(2)	Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018.

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

For the fair value of our derivative instruments and senior notes, see Note 3 and Note 7, respectively.

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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

+ References + Details

Derivative Financial Instruments

3 Months Ended

Dec. 31, 2018

Derivative Financial Instruments

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

Foreign-currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income, 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 remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months.

The following tables summarize our outstanding foreign currency forward contracts, by currency, at December 31, 2018 and September 30, 2018:



	December 31, 2018
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	10,750	$	12,312	$	—
Buy foreign currency:
British pound (GBP)	GBP	8,592	$	11,000	$	—
Singapore dollar (SGD)	SGD	7,211	$	5,300	$	—



	September 30, 2018
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	9,000	$	10,372	$	—
Buy foreign currency:
British pound (GBP)	GBP	8,598	$	11,200	$	—
Singapore dollar (SGD)	SGD	9,580	$	7,000	$	—

The foreign currency forward contracts were entered into on December 31, 2018 and September 30, 2018, respectively; therefore, their fair value was $0 on each of these dates.

Gains (losses) on derivative financial instruments are recorded in our condensed consolidated statements of income and comprehensive income as a component of other income, net, and consisted of the following:



	Quarter Ended December 31,
	2018			2017
	(In thousands)
Gains (losses) on foreign currency forward contracts	$	(404	)	$	194

Goodwill and Intangible Assets

3 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

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



	Quarter Ended December 31,
	2018		2017
	(In thousands)
Cost of revenues	$	494	$	706
Selling, general and administrative expenses	1,008		1,082
Total	$	1,502	$	1,788

Cost of revenues reflects our amortization of completed technology and selling, general and administrative expenses reflects our amortization of other intangible assets. Intangible assets, gross were $110.2 million and $111.0 million as of December 31, 2018 and September 30, 2018, respectively.

Estimated future intangible asset amortization expense associated with intangible assets existing at December 31, 2018 was as follows (in thousands):



Year Ending September 30,
2019 (excluding the quarter ended December 31, 2018)	$	4,427
2020	3,618
2021	2,396
2022	2,252
2023	217
	$	12,910

The following table summarizes changes to goodwill during the quarter ended December 31, 2018, both in total and as allocated to our segments:



	Applications			Scores		Decision Management Software			Total
	(In thousands)
Balance at September 30, 2018	$	585,161		$	146,648	$	69,081		$	800,890
Addition from acquisitions	980			—		—			980
Foreign currency translation adjustment	(2,820		)	—		(257		)	(3,077		)
Balance at December 31, 2018	$	583,321		$	146,648	$	68,824		$	798,793

Composition of Certain Financial Statement Captions

3 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Composition of Certain Financial Statement Captions

The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at December 31, 2018 and September 30, 2018:



	December 31, 2018			September 30, 2018
	(In thousands)
Property and equipment	$	159,956		$	156,154
Less: accumulated depreciation and amortization	(113,092		)	(107,317		)
	$	46,864		$	48,837

Revolving Line of Credit	3 Months Ended
Revolving Line of Credit	Dec. 31, 2018
Debt Disclosure [Abstract]
Revolving Line of Credit	Revolving Line of Credit We have a $400 million unsecured revolving line of credit with a syndicate of banks that expires on May 8, 2023 with an option to increase it by another $100 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 our common stock. Interest on amounts borrowed under the credit facility is based on (i) a base rate, which is the greater of (a) the prime rate, (b) the Federal Funds rate plus 0.500% and (c) the one-month LIBOR rate plus 1.000%, plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.875% and for LIBOR borrowings ranges from 1.000% to 1.875%, and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including maintaining a maximum consolidated leverage ratio of 3.25, subject to a step up to 3.75 following certain permitted acquisitions; and a minimum fixed charge ratio of 2.50 through the maturity of our 2010 Senior Notes in July 2020, upon which maintaining a minimum interest coverage ratio of 3.00. The credit agreement also contains other covenants typical of unsecured facilities. As of December 31, 2018, we had $325.0 million in borrowings outstanding at a weighted average interest rate of 3.839%, of which $125.0 million was classified as a long-term liability and recorded in long-term debt within the accompanying condensed consolidated balance sheets. We were in compliance with all financial covenants under this credit facility as of December 31, 2018.

Senior Notes

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Senior Notes

On July 14, 2010, we issued $245 million of senior notes in a private placement to a group of institutional investors (the “2010 Senior Notes”). The 2010 Senior Notes were issued in four series with maturities ranging from 6 to 10 years. The outstanding 2010 Senior Notes’ weighted average interest rate is 5.6% and the weighted average maturity is 9.8 years. The 2010 Senior Notes require interest payments semi-annually and contain certain restrictive covenants, including the maintenance of a maximum consolidated net debt to consolidated EBITDA ratio of 3.00 and a minimum fixed charge coverage ratio of 2.50. As of December 31, 2018, we were in compliance with all financial covenants.

On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”, and with the 2010 Senior Notes, the “Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026. The purchase agreements for the 2010 Senior Notes and the indenture for the 2018 Senior Notes contain certain covenants typical of unsecured obligations.

The following table presents the carrying amounts and fair values for the Senior Notes at December 31, 2018 and September 30, 2018:



	December 31, 2018				September 30, 2018
	Carrying Amounts (1)		Fair Value		Carrying Amounts (1)		Fair Value
	(In thousands)
The 2010 Senior Notes	113,000		114,144		113,000		114,413
The 2018 Senior Notes	400,000		388,000		400,000		404,000
Total	$	513,000	$	502,144	$	513,000	$	518,413

(1) Amounts exclusive of net debt issuance cost of $5.8 million and $6.1 million at December 31, 2018 and September 30, 2018, respectively.

We measure the fair value of the Senior Notes based on Level 2 inputs, which include quoted market prices and interest rate spreads of similar securities.

Revenue from Contracts with Customers

3 Months Ended

Dec. 31, 2018

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

Revenue from Contracts with Customers

Contracts with Customers

Our revenue is primarily derived from term-based or perpetual licensing of software and scoring products and solutions, and associated maintenance; SaaS subscription services; scoring and credit monitoring services for consumers; and professional services. For contracts with customers that contain various combinations of products and services, we evaluate whether the products or services are distinct — distinct products or services will be accounted for as separate performance obligations, while non-distinct products or services are combined with others to form a single performance obligation. For contracts with multiple performance obligations, the transaction price is allocated to each performance obligation on a relative standalone selling price (“SSP”) basis. Revenue is recognized when control of the promised goods or services is transferred to our customers.

License revenue is derived from contracts in which we grant our direct customers or distributors the right to deploy or resell our software and scoring products and solutions on-premises. Our software offerings often include a perpetual or term-based license and post-contract support or maintenance, both of which generally represent distinct performance obligations and are accounted for separately. The transaction price is either in the form of a fixed consideration with separate stated prices for license and maintenance, or a sales or usage-based royalty — sometimes subject to a guaranteed minimum — for the license and maintenance bundle. When the amount is in the form of a fixed consideration, including the guaranteed minimum in sales or usage-based royalty, license revenue from distinct on-premises license is recognized at the point in time when the software or scoring solution is made available to the customer or distributor. Any royalties not subject to the guaranteed minimum or earned in excess of the minimum amount are recognized as transactional revenue when the subsequent sales or usage occurs. Revenue allocated to maintenance is generally recognized ratably over the contract period as customers simultaneously consume and receive benefits.

In addition to sales or usage-based royalty on our software and scoring products, transactional revenue is also derived from SaaS contracts in which we provide customers with access to and standard support for our software application either in the FICO^® Analytic Cloud or Amazon Web Services (“AWS”), our primary cloud infrastructure provider, on a subscription basis. The transaction price typically includes a fixed consideration in the form of a guaranteed minimum that allows up to a certain level of usage and a variable consideration in the form of usage or transaction-based fees in excess of the minimum threshold; or usage or transaction-based variable amount not subject to a minimum threshold. We determined the nature of our SaaS arrangements is to provide continuous access to our hosted application in the cloud, i.e., a stand-ready obligation that comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). We estimate the total variable consideration at contract inception — subject to any constraints that may apply — and update the estimates as new information becomes available and recognize the amount ratably over the SaaS service period, unless we determine it is appropriate to allocate the variable amount to each distinct service period and recognize revenue as each distinct service period is performed.

We also derive transactional revenue from credit scoring and monitoring services that provide consumers access to their credit reports and enable them to monitor their credit. These are provided as either a one-time or ongoing subscription service renewed monthly or annually, all with a fixed consideration. We determined the nature of the subscription service is a stand-ready obligation to generate credit reports, provide credit monitoring and other services for our customers, which comprises a series of distinct service periods (e.g., a series of distinct daily, monthly or annual periods of service). Revenue from one-time or monthly subscription services is recognized during the period when service is performed. Revenue from annual subscription services is recognized ratably over the subscription period.

Professional services include software or SaaS implementation, consulting, model development, training services and premium cloud support. They are sold either standalone, or together with other products or services and generally represent distinct performance obligations. The transaction price can be a fixed amount or on a time and materials basis. Revenue on fixed-price services is recognized using an input method based on labor hours expended which we believe provides a faithful depiction of the transfer of services. Revenue on services provided on a time and materials basis is recognized applying the “right-to-invoice” practical expedient as the amount to which we have a right to invoice the customer corresponds directly with the value of our performance to the customer. In addition, we sell premium cloud support on a subscription basis for a fixed amount, and revenue is recognized ratably over the contract term.

Disaggregation of Revenue

The following table provides information about disaggregated revenue by primary geographical market, and timing of revenue recognition, and includes a reconciliation of the disaggregated revenue with reportable segments:



	Reportable Segments
	Quarter Ended December 31, 2018								Quarter Ended December 31, 2017 (As Adjusted)
	Applications		Scores		Decision Management Software		Total		Applications		Scores		Decision Management Software		Total
	(In thousands)
Primary Geographical Markets
North America	$	80,949	$	82,073	$	13,824	$	176,846	$	83,739	$	66,613	$	13,066	$	163,418
Latin America	18,253		514		5,225		23,992		5,633		709		1,344		7,686
Europe, Middle East and Africa	32,562		1,534		6,124		40,220		36,216		858		5,722		42,796
Asia Pacific	15,895		1,562		3,741		21,198		14,586		251		3,624		18,461
Total	$	147,659	$	85,683	$	28,914	$	262,256	$	140,174	$	68,431	$	23,756	$	232,361



	Reportable Segments
	Quarter Ended December 31, 2018								Quarter Ended December 31, 2017 (As Adjusted)
	Applications		Scores		Decision Management Software		Total		Applications		Scores		Decision Management Software		Total
	(In thousands)
Timing of revenue recognition
Products and services transferred over time*	$	128,627	$	85,522	$	20,852	$	235,001	$	126,500	$	68,293	$	18,738	$	213,531
Products and services transferred at a point in time	19,032		161		8,062		27,255		13,674		138		5,018		18,830
Total	$	147,659	$	85,683	$	28,914	$	262,256	$	140,174	$	68,431	$	23,756	$	232,361

* Includes license to intellectual property (“IP”) where right to functional IP transfers at a point in time but royalty revenue is only recognized upon subsequent sales or usage (i.e., guaranteed minimums excluded from this line).

Contract Balances

We record a receivable when we satisfy a performance obligation prior to invoicing if only the passage of time is required before payment is due or if we have an unconditional right to consideration before we satisfy a performance obligation. We record a contract asset when we satisfy a performance obligation prior to invoicing but our right to consideration is conditional. We record deferred revenue when the payment is made or due before we satisfy a performance obligation.

The following table provides information about receivables and deferred revenue from contracts with customers.



	December 31, 2018		September 30, 2018
			(As Adjusted)
	(In thousands)
Receivables, which are included in “Accounts receivable, net”	$	250,960	$	270,181
Deferred revenue*	$	108,167	$	108,118

* Included in both deferred revenue and other liabilities on our condensed balance sheet at December 31, 2018 and September 30, 2018.

Impairment loss recognized on receivables from contracts with customers during the quarter ended December 31, 2018 and 2017 was immaterial.

Contract assets balance at December 31, 2018 and September 30, 2018 was immaterial.

Deferred revenue primarily relates to our maintenance and SaaS contracts billed annually in advance and generally recognized ratably over the term of the service period. Significant changes in the deferred revenues balances during the quarter ended December 31, 2018 are as follows:



	Quarter Ended December 31, 2018
	(In thousands)
Deferred revenues, beginning balance	$	108,118
Revenue recognized that was included in the deferred revenues balance at the beginning of the period	(53,339		)
Increases due to billings, excluding amounts recognized as revenue during the period	53,388
Deferred revenues, ending balance	$	108,167

Revenue recognized in the quarter ended December 31, 2018 from performance obligations satisfied in previous periods was immaterial.

Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront, and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period.

Performance Obligations

The following table includes estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:



	Remaining of Fiscal 2019		Fiscal 2020		Fiscal 2021		Fiscal 2022		Thereafter		Total
	(In thousands)
Applications	$	53,507	$	42,951	$	20,902	$	8,203	$	7,535	$	133,098
Decision Management Software	10,116		7,363		4,787		2,978		1,818		27,062
Total	$	63,623	$	50,314	$	25,689	$	11,181	$	9,353	$	160,160

We apply the optional exemption that permits the omission of information about remaining performance obligations that have original expected durations of one year or less. We also applied the transition practical expedient that permits the omission of prior-period information about our performance obligations.

Significant Judgments

Our contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct and should be accounted for separately may require significant judgment. Specifically, when implementation service is included in the original software or SaaS offerings, judgment is required to determine if the implementation service significantly modifies or customizes the software or SaaS service in such a way that the risks of providing it and the customization service are inseparable. In rare instances, contracts may include significant modification or customization of the software of SaaS service and will result in the combination of software or SaaS service and implementation service as one performance obligation.

We determine the SSPs using data from our historical standalone sales, or, in instances where such information is not available (such as when we do not sell the product or service separately), we consider factors such as the stated contract prices, our overall pricing practices and objectives, go-to-market strategy, size and type of the transactions, and effects of the geographic area on pricing, among others. When the selling price of a product or service is highly variable, we may use the residual approach to determine the SSP of that product or service. Significant judgment may be required to determine the SSP for each distinct performance obligation when it involves the consideration of many market conditions and entity-specific factors discussed above.

Significant judgement may be required to determine the timing of satisfaction of a performance obligation in certain professional services contracts with a fixed consideration, in which we measure progress using an input method based on labor hours expended. In order to estimate the total hours of the project, we make assumptions about labor utilization, efficiency of processes, the customer’s specification and IT environment, among others. For certain complex projects, due to the risks and uncertainties inherent with the estimation process and factors relating to the assumptions, actual progress may differ due to the change in estimated total hours. Adjustments to estimates are made in the period in which the facts requiring such revisions become known and, accordingly, recognized revenues are subject to revisions as the contract progresses to completion.

Capitalized Commission Costs

We capitalize incremental commission fees paid as a result of obtaining customer contracts. Capitalized commission costs, which are recorded in other assets within the accompanying condensed consolidated balance sheets, were $28.5 million and $27.1 million at December 31, 2018 and September 30, 2018, respectively.

Capitalized commission costs are amortized on a straight-line basis over ten years — determined using a portfolio approach — based on the transfer of goods or services to which the assets relate, taking into consideration both the initial and future contracts as we do not typically pay a commission on a contract renewal. The amortization costs are included in selling, general, and administrative expenses of our condensed consolidated statements of income and comprehensive income. The amount of amortization was $1.2 million and $1.1 million during the quarters ended December 31, 2018 and 2017, respectively, and there was no impairment loss in relation to the costs capitalized.

We apply a practical expedient to recognize the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets that we otherwise would have recognized is one year or less. These costs are recorded within selling, general, and administrative expenses.

Income Taxes	3 Months Ended
Income Taxes	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes Effective Tax Rate The effective income tax rate was (7.7)% and (6.5)% during the quarters ended December 31, 2018 and 2017, respectively. The provision for income taxes during interim quarterly reporting periods is based on our estimates of the effective tax rates for the full fiscal year. The effective tax rate in any quarter can also be affected positively or negatively by adjustments that are required to be reported in the specific quarter of resolution. The effective tax rate for the three months ended December 31, 2018 and 2017 was both impacted by recording of excess tax benefits relating to stock awards that vested in December of both years. In addition, the quarter ended December 31, 2017 was affected by recording the impact of the Tax Cuts and Jobs Act (the “Tax Act”), enacted on December 22, 2017 by the U.S. government. The Tax Act makes broad and complex changes to the U.S. tax code that affect our fiscal year ended September 30, 2018 and fiscal year ended September 30, 2019, including, but not limited to: (1) reducing the U.S. federal corporate tax rate; (2) requiring a one-time transition tax on certain un-repatriated earnings of foreign subsidiaries; (3) repealing the performance-based compensation exception for certain employees; (4) instituting the concept of Global Intangible Low-Taxed Income (“GILTI”); and (5) instituting the concept of Foreign Derived Intangible Income. The SEC staff issued Staff Accounting Bulletin No. 118 (“SAB 118”) in December 2017, which provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the accounting under FASB Accounting Standards Codification (“ASC”) 740, “Accounting for Income Taxes” (“ASC 740”). Information regarding our adoption and prospective impacts of the Tax Act is included in our Annual Report on Form 10-K for our fiscal year ended September 30, 2018. We have completed our analysis consistent with the guidance provided in SAB 118 related to the tax effects of the transition tax and the excessive employee remuneration, which resulted in no additional charges recorded during the quarter ended December 31, 2018. The Tax Act subjects U.S. corporations to tax on their GILTI. Due to the complexity of the new GILTI tax rules, we are continuing to evaluate this provision of the Tax Act and the application of GAAP. Under GAAP, we can make an accounting policy election to either treat taxes due on the GILTI inclusion as a current period expense or factor such amounts into our measurement of deferred taxes. We have not yet adopted an accounting policy in regard to GILTI. The total unrecognized tax benefit for uncertain tax positions is estimated to be $6.5 million and $6.1 million at December 31, 2018 and September 30, 2018, respectively. We recognize interest expense related to unrecognized tax benefits and penalties as part of the provision for income taxes in our condensed consolidated statements of income and comprehensive income. We have accrued interest of $0.4 million and $0.3 million related to unrecognized tax benefits as of December 31, 2018 and September 30, 2018, respectively.

Share-Based Payments

3 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-Based Payments

We maintain the 2012 Long-Term Incentive Plan (the “2012 Plan”) under which we grant equity awards, including stock options, stock appreciation rights, restricted stock awards, stock unit awards and other stock-based awards. All employees, consultants and advisors of FICO or any subsidiary, as well as all non-employee directors are eligible to receive awards under the 2012 Plan. We also have awards currently outstanding under the 1992 Long-term Incentive Plan, which was adopted in February 1992 and expired in February 2012. Stock option awards have a maximum term of seven years. In general, stock option awards and restricted stock unit awards not subject to market or performance conditions vest annually over four years. Restricted stock unit awards subject to market or performance conditions vest annually over three years based on the achievement of specified criteria.

Stock Options

The following table summarizes option activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Exercise Price		Weighted-average Remaining Contractual Term	Aggregate Intrinsic Value
	(In thousands)				(In years)	(In thousands)
Outstanding at October 1, 2018	996		$	63.13
Granted	66		185.05
Exercised	(138	)	54.69
Outstanding at December 31, 2018	924		$	73.16	2.72	$	105,207
Exercisable at December 31, 2018	836		$	61.99	2.30	$	104,507
Vested and expected to vest at December 31, 2018	918		$	72.39	2.70	$	105,161

Restricted Stock Units

The following table summarizes restricted stock unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	1,113		$	127.34
Granted	313		185.99
Released	(339	)	112.42
Forfeited	(4	)	149.46
Outstanding at December 31, 2018	1,083		$	148.90

Performance Share Units

The following table summarizes performance share unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	210		$	133.76
Granted	45		185.05
Released	(105	)	123.04
Outstanding at December 31, 2018	150		$	156.83

Market Share Units

The following table summarizes market share unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	114		$	159.34
Granted	105		169.46
Released	(119	)	143.57
Outstanding at December 31, 2018	100		$	188.63

Earnings per Share

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Earnings per Share

The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters ended December 31, 2018 and 2017:



	Quarter Ended December 31,
	2018		2017
			As Adjusted
	(In thousands, except per share data)
Numerator for diluted and basic earnings per share:
Net Income	$	40,007	$	32,879
Denominator - share:
Basic weighted-average shares	28,961		30,078
Effect of dilutive securities	1,375		1,483
Diluted weighted-average shares	30,336		31,561
Earnings per share:
Basic	$	1.38	$	1.09
Diluted	$	1.32	$	1.04

We exclude the options to purchase shares of common stock in the computation of the diluted EPS where the exercise price of the options exceeds the average market price of our common stock as their inclusion would be antidilutive. There were no options excluded for the quarter ended December 31, 2018. There were approximately 3,000 options excluded for the quarter ended December 31, 2017.

Segment Information

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Segment Information

We are organized into the following three operating segments, each of which is a reportable segment, to align with internal management of our worldwide business operations based on product offerings.

•

Applications. This segment includes pre-configured decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud detection, collections and insurance claims management — as well as associated professional services. These applications are available to our customers as on-premises software, and many are available as hosted, software-as-a-service (“SaaS”) applications through the FICO^® Analytic Cloud.

•

Scores. This segment includes our business-to-business credit scoring solutions, our myFICO^® solutions for consumers (enabling consumer-level access to and understanding of their credit scores) and associated professional services. Our credit scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our credit scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly.


•	Decision Management Software. This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our new FICO^® Decision Management Suite, as well as associated professional services. These tools are available to our customers as on-premises software or through the FICO^® Analytic Cloud.

Our Chief Executive Officer evaluates segment financial performance based on segment revenues and segment operating income. Segment operating expenses consist of direct and indirect costs principally related to personnel, facilities, consulting, travel and depreciation. Indirect costs are allocated to the segments generally based on relative segment revenues, fixed rates established by management based upon estimated expense contribution levels and other assumptions that management considers reasonable. We do not allocate broad-based incentive expense, share-based compensation expense, restructuring expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets, nor capital expenditures where depreciation amounts are allocated to the segments from their internal cost centers as described above.

The following tables summarize segment information for the quarters ended December 31, 2018 and 2017:



	Quarter Ended December 31, 2018
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	97,165		$	84,821		$	12,207		$	—		$	194,193
Professional services	31,462			701			8,645			—			40,808
License	19,032			161			8,062			—			27,255
Total segment revenues	147,659			85,683			28,914			—			262,256
Segment operating expense	(107,598		)	(13,482		)	(39,562		)	(29,254		)	(189,896		)
Segment operating income (loss)	$	40,061		$	72,201		$	(10,648	)	$	(29,254	)	72,360
Unallocated share-based compensation expense													(21,854		)
Unallocated amortization expense													(1,502		)
Operating income													49,004
Unallocated interest expense, net													(9,676		)
Unallocated other expense, net													(2,172		)
Income before income taxes													$	37,156
Depreciation expense	$	4,797		$	125		$	989		$	233		$	6,144



	Quarter Ended December 31, 2017 (As Adjusted)
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	91,126		$	67,996		$	11,281		$	—		$	170,403
Professional services	35,374			297			7,457			—			43,128
License	13,674			138			5,018			—			18,830
Total segment revenues	140,174			68,431			23,756			—			232,361
Segment operating expense	(102,726		)	(15,888		)	(31,863		)	(26,761		)	(177,238		)
Segment operating income (loss)	$	37,448		$	52,543		$	(8,107	)	$	(26,761	)	55,123
Unallocated share-based compensation expense													(16,510		)
Unallocated amortization expense													(1,788		)
Operating income													36,825
Unallocated interest expense, net													(6,460		)
Unallocated other income, net													513
Income before income taxes													$	30,878
Depreciation expense	$	3,943		$	155		$	1,412		$	284		$	5,794

Contingencies	3 Months Ended
Contingencies	Dec. 31, 2018
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies We are in disputes with certain customers regarding amounts owed in connection with the sale of certain of our products and services. We also have had claims asserted by former employees relating to compensation and other employment matters. We are also involved in various other claims and legal actions arising in the ordinary course of business. We record litigation accruals for legal matters which are both probable and estimable. For legal proceedings for which there is a reasonable possibility of loss (meaning those losses for which the likelihood is more than remote but less than probable), we have determined we do not have material exposure on an aggregate basis.

Nature of Business (Policies)

3 Months Ended

Dec. 31, 2018

Accounting Policies [Abstract]

Fair Isaac Corporation

In these condensed consolidated financial statements, Fair Isaac Corporation is referred to as “FICO,” “we,” “us,” “our,” or “the Company.”

Principles of Consolidation and Basis of Presentation

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

Use of Estimates

Revenue Recognition

See Note 8 for further discussion on revenues.

Contracts with Customers

Contract Balances

Significant Judgments

Capitalized Commission Costs

Significant Judgments

Capitalized Commission Costs

In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to provide customers with financing or to receive financing from our customers. Examples include multi-year on-premises licenses that are invoiced annually with revenue recognized upfront, and invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period.

New Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Upon adoption of ASU 2014-09, we applied the standard’s practical expedients that permit the omission of prior-period information about our performance obligations.

Adoption of the standard impacted our previously reported results as follows:

Condensed Consolidated Balance Sheets



	September 30, 2018
	As Previously Reported	Adjustment		As Adjusted
	(In thousands)
Accounts receivable, net	208,865	57,877		266,742
Deferred income taxes	20,117	(6,312	)	13,805
Other assets	12,431	23,823		36,254
Other accrued liabilities	30,457	568		31,025
Deferred revenue	52,215	51,120		103,335
Stockholders’ equity	263,737	23,700		287,437

Condensed Consolidated Statements of Income and Comprehensive Income



	Quarter Ended December 31, 2017
	As Previously Reported	Adjustment		As Adjusted
	(In thousands, except per share amounts)
Revenues	235,321	(2,960	)	232,361
Cost of revenues	74,359	73		74,432
Selling, general and administrative	90,296	46		90,342
Provision for income taxes	6,658	(8,659	)	(2,001	)
Net income	27,299	5,580		32,879
Comprehensive income	30,370	5,580		35,950
Basic earnings per share	0.91	0.18		1.09
Diluted earnings per share	0.86	0.18		1.04

Condensed Consolidated Statement of Cash Flows



	Quarter Ended December 31, 2017
	As Previously Reported		Adjustment		As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	27,299		5,580		32,879
Deferred income taxes	6,717		(8,659	)	(1,942	)
Changes in operating assets and liabilities	(29,399	)	3,079		(26,320	)

Recent Accounting Pronouncements Not Yet Adopted

Nature of Business Recently Adopted ASU 2014-09 Revenue from Contracts with Customers (Tables)

3 Months Ended

Dec. 31, 2018

Accounting Changes and Error Corrections [Abstract]

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

Condensed Consolidated Statement of Cash Flows



	Quarter Ended December 31, 2017
	As Previously Reported		Adjustment		As Adjusted
	(In thousands)
Cash flows from operating activities:
Net income	27,299		5,580		32,879
Deferred income taxes	6,717		(8,659	)	(1,942	)
Changes in operating assets and liabilities	(29,399	)	3,079		(26,320	)

Condensed Consolidated Statements of Income and Comprehensive Income



	Quarter Ended December 31, 2017
	As Previously Reported	Adjustment		As Adjusted
	(In thousands, except per share amounts)
Revenues	235,321	(2,960	)	232,361
Cost of revenues	74,359	73		74,432
Selling, general and administrative	90,296	46		90,342
Provision for income taxes	6,658	(8,659	)	(2,001	)
Net income	27,299	5,580		32,879
Comprehensive income	30,370	5,580		35,950
Basic earnings per share	0.91	0.18		1.09
Diluted earnings per share	0.86	0.18		1.04

Adoption of the standard impacted our previously reported results as follows:

Condensed Consolidated Balance Sheets



	September 30, 2018
	As Previously Reported	Adjustment		As Adjusted
	(In thousands)
Accounts receivable, net	208,865	57,877		266,742
Deferred income taxes	20,117	(6,312	)	13,805
Other assets	12,431	23,823		36,254
Other accrued liabilities	30,457	568		31,025
Deferred revenue	52,215	51,120		103,335
Stockholders’ equity	263,737	23,700		287,437

Fair Value Measurements (Tables)

3 Months Ended

Dec. 31, 2018

Fair Value Disclosures [Abstract]

Financial Assets Measured on a Recurring Basis

The following tables represent financial assets that we measured at fair value on a recurring basis at December 31, 2018 and September 30, 2018:



December 31, 2018	Active Markets for Identical Instruments (Level 1)		Fair Value as of December 31, 2018
	(In thousands)
Assets:
Cash equivalents (1)	$	18,417	$	18,417
Marketable securities (2)	17,210		17,210
Total	$	35,627	$	35,627

September 30, 2018	Active Markets for Identical Instruments (Level 1)		Fair Value as of September 30, 2018
	(In thousands)
Assets:
Cash equivalents (1)	$	18,413	$	18,413
Marketable securities (2)	18,059		18,059
Total	$	36,472	$	36,472


(1)	Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018. Not included in these tables are cash deposits of $61.5 million and $71.6 million at December 31, 2018 and September 30, 2018, respectively.


(2)	Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018.

Derivative Financial Instruments (Tables)

3 Months Ended

Dec. 31, 2018

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Outstanding Foreign Currency Forward Contracts

The following tables summarize our outstanding foreign currency forward contracts, by currency, at December 31, 2018 and September 30, 2018:



	December 31, 2018
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	10,750	$	12,312	$	—
Buy foreign currency:
British pound (GBP)	GBP	8,592	$	11,000	$	—
Singapore dollar (SGD)	SGD	7,211	$	5,300	$	—



	September 30, 2018
	Contract Amount				Fair Value
	Foreign Currency		US$		US$
	(In thousands)
Sell foreign currency:
Euro (EUR)	EUR	9,000	$	10,372	$	—
Buy foreign currency:
British pound (GBP)	GBP	8,598	$	11,200	$	—
Singapore dollar (SGD)	SGD	9,580	$	7,000	$	—

Losses on Derivative Financial Instruments



	Quarter Ended December 31,
	2018			2017
	(In thousands)
Gains (losses) on foreign currency forward contracts	$	(404	)	$	194

Goodwill and Intangible Assets (Tables)

3 Months Ended

Dec. 31, 2018

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Amortization Expense



	Quarter Ended December 31,
	2018		2017
	(In thousands)
Cost of revenues	$	494	$	706
Selling, general and administrative expenses	1,008		1,082
Total	$	1,502	$	1,788

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated future intangible asset amortization expense associated with intangible assets existing at December 31, 2018 was as follows (in thousands):



Year Ending September 30,
2019 (excluding the quarter ended December 31, 2018)	$	4,427
2020	3,618
2021	2,396
2022	2,252
2023	217
	$	12,910

Schedule of Goodwill

The following table summarizes changes to goodwill during the quarter ended December 31, 2018, both in total and as allocated to our segments:



	Applications			Scores		Decision Management Software			Total
	(In thousands)
Balance at September 30, 2018	$	585,161		$	146,648	$	69,081		$	800,890
Addition from acquisitions	980			—		—			980
Foreign currency translation adjustment	(2,820		)	—		(257		)	(3,077		)
Balance at December 31, 2018	$	583,321		$	146,648	$	68,824		$	798,793

Composition of Certain Financial Statement Captions (Tables)

3 Months Ended

Dec. 31, 2018

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Summary of Property and Equipment

The following table summarizes property and equipment, and the related accumulated depreciation and amortization, at December 31, 2018 and September 30, 2018:



	December 31, 2018			September 30, 2018
	(In thousands)
Property and equipment	$	159,956		$	156,154
Less: accumulated depreciation and amortization	(113,092		)	(107,317		)
	$	46,864		$	48,837

Senior Notes (Tables)

3 Months Ended

Dec. 31, 2018

Debt Disclosure [Abstract]

Carrying Amounts and Fair Values of Senior Notes

The following table presents the carrying amounts and fair values for the Senior Notes at December 31, 2018 and September 30, 2018:



	December 31, 2018				September 30, 2018
	Carrying Amounts (1)		Fair Value		Carrying Amounts (1)		Fair Value
	(In thousands)
The 2010 Senior Notes	113,000		114,144		113,000		114,413
The 2018 Senior Notes	400,000		388,000		400,000		404,000
Total	$	513,000	$	502,144	$	513,000	$	518,413

(1) Amounts exclusive of net debt issuance cost of $5.8 million and $6.1 million at December 31, 2018 and September 30, 2018, respectively.

Revenue from Contract with Customer [Abstract]

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

+ References

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

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28541-108399

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644

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

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 45
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=114775744&loc=d3e28551-108399

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644

Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644

Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 470
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=75038535&loc=d3e64711-112823

Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 835
-SubTopic 30
-Section 55
-Paragraph 8
-URI http://asc.fasb.org/extlink&oid=114775985&loc=d3e28878-108400

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644

+ Details

Revenue from Contracts with Customers Revenue from Contract with Customer (Table)

3 Months Ended

Dec. 31, 2018

Disaggregation of Revenue



	Reportable Segments
	Quarter Ended December 31, 2018								Quarter Ended December 31, 2017 (As Adjusted)
	Applications		Scores		Decision Management Software		Total		Applications		Scores		Decision Management Software		Total
	(In thousands)
Primary Geographical Markets
North America	$	80,949	$	82,073	$	13,824	$	176,846	$	83,739	$	66,613	$	13,066	$	163,418
Latin America	18,253		514		5,225		23,992		5,633		709		1,344		7,686
Europe, Middle East and Africa	32,562		1,534		6,124		40,220		36,216		858		5,722		42,796
Asia Pacific	15,895		1,562		3,741		21,198		14,586		251		3,624		18,461
Total	$	147,659	$	85,683	$	28,914	$	262,256	$	140,174	$	68,431	$	23,756	$	232,361



	Reportable Segments
	Quarter Ended December 31, 2018								Quarter Ended December 31, 2017 (As Adjusted)
	Applications		Scores		Decision Management Software		Total		Applications		Scores		Decision Management Software		Total
	(In thousands)
Timing of revenue recognition
Products and services transferred over time*	$	128,627	$	85,522	$	20,852	$	235,001	$	126,500	$	68,293	$	18,738	$	213,531
Products and services transferred at a point in time	19,032		161		8,062		27,255		13,674		138		5,018		18,830
Total	$	147,659	$	85,683	$	28,914	$	262,256	$	140,174	$	68,431	$	23,756	$	232,361

Contract with Customer, Asset and Liability

Significant changes in the deferred revenues balances during the quarter ended December 31, 2018 are as follows:



	Quarter Ended December 31, 2018
	(In thousands)
Deferred revenues, beginning balance	$	108,118
Revenue recognized that was included in the deferred revenues balance at the beginning of the period	(53,339		)
Increases due to billings, excluding amounts recognized as revenue during the period	53,388
Deferred revenues, ending balance	$	108,167

The following table provides information about receivables and deferred revenue from contracts with customers.



	December 31, 2018		September 30, 2018
			(As Adjusted)
	(In thousands)
Receivables, which are included in “Accounts receivable, net”	$	250,960	$	270,181
Deferred revenue*	$	108,167	$	108,118

* Included in both deferred revenue and other liabilities on our condensed balance sheet at December 31, 2018 and September 30, 2018.

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction



	Remaining of Fiscal 2019		Fiscal 2020		Fiscal 2021		Fiscal 2022		Thereafter		Total
	(In thousands)
Applications	$	53,507	$	42,951	$	20,902	$	8,203	$	7,535	$	133,098
Decision Management Software	10,116		7,363		4,787		2,978		1,818		27,062
Total	$	63,623	$	50,314	$	25,689	$	11,181	$	9,353	$	160,160

Share-Based Payments (Tables)

3 Months Ended

Dec. 31, 2018

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Option Activity

The following table summarizes option activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Exercise Price		Weighted-average Remaining Contractual Term	Aggregate Intrinsic Value
	(In thousands)				(In years)	(In thousands)
Outstanding at October 1, 2018	996		$	63.13
Granted	66		185.05
Exercised	(138	)	54.69
Outstanding at December 31, 2018	924		$	73.16	2.72	$	105,207
Exercisable at December 31, 2018	836		$	61.99	2.30	$	104,507
Vested and expected to vest at December 31, 2018	918		$	72.39	2.70	$	105,161

Summary of Restricted Stock Unit Activity

The following table summarizes restricted stock unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	1,113		$	127.34
Granted	313		185.99
Released	(339	)	112.42
Forfeited	(4	)	149.46
Outstanding at December 31, 2018	1,083		$	148.90

Summary of Performance Share Unit Activity

The following table summarizes performance share unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	210		$	133.76
Granted	45		185.05
Released	(105	)	123.04
Outstanding at December 31, 2018	150		$	156.83

Summary of Market Share Unit Activity

The following table summarizes market share unit activity during the quarter ended December 31, 2018:



	Shares		Weighted-average Grant-date Fair Value
	(In thousands)
Outstanding at October 1, 2018	114		$	159.34
Granted	105		169.46
Released	(119	)	143.57
Outstanding at December 31, 2018	100		$	188.63

Earnings per Share (Tables)

3 Months Ended

Dec. 31, 2018

Earnings Per Share [Abstract]

Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share

The following table presents reconciliations for the numerators and denominators of basic and diluted earnings per share (“EPS”) for the quarters ended December 31, 2018 and 2017:



	Quarter Ended December 31,
	2018		2017
			As Adjusted
	(In thousands, except per share data)
Numerator for diluted and basic earnings per share:
Net Income	$	40,007	$	32,879
Denominator - share:
Basic weighted-average shares	28,961		30,078
Effect of dilutive securities	1,375		1,483
Diluted weighted-average shares	30,336		31,561
Earnings per share:
Basic	$	1.38	$	1.09
Diluted	$	1.32	$	1.04

Segment Information (Tables)

3 Months Ended

Dec. 31, 2018

Segment Reporting [Abstract]

Summary of Segment Information

The following tables summarize segment information for the quarters ended December 31, 2018 and 2017:



	Quarter Ended December 31, 2018
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	97,165		$	84,821		$	12,207		$	—		$	194,193
Professional services	31,462			701			8,645			—			40,808
License	19,032			161			8,062			—			27,255
Total segment revenues	147,659			85,683			28,914			—			262,256
Segment operating expense	(107,598		)	(13,482		)	(39,562		)	(29,254		)	(189,896		)
Segment operating income (loss)	$	40,061		$	72,201		$	(10,648	)	$	(29,254	)	72,360
Unallocated share-based compensation expense													(21,854		)
Unallocated amortization expense													(1,502		)
Operating income													49,004
Unallocated interest expense, net													(9,676		)
Unallocated other expense, net													(2,172		)
Income before income taxes													$	37,156
Depreciation expense	$	4,797		$	125		$	989		$	233		$	6,144



	Quarter Ended December 31, 2017 (As Adjusted)
	Applications			Scores			Decision Management Software			Unallocated Corporate Expenses			Total
	(In thousands)
Segment revenues:
Transactional and maintenance	$	91,126		$	67,996		$	11,281		$	—		$	170,403
Professional services	35,374			297			7,457			—			43,128
License	13,674			138			5,018			—			18,830
Total segment revenues	140,174			68,431			23,756			—			232,361
Segment operating expense	(102,726		)	(15,888		)	(31,863		)	(26,761		)	(177,238		)
Segment operating income (loss)	$	37,448		$	52,543		$	(8,107	)	$	(26,761	)	55,123
Unallocated share-based compensation expense													(16,510		)
Unallocated amortization expense													(1,788		)
Operating income													36,825
Unallocated interest expense, net													(6,460		)
Unallocated other income, net													513
Income before income taxes													$	30,878
Depreciation expense	$	3,943		$	155		$	1,412		$	284		$	5,794

Nature of Business Prior Year Restated (Details) - USD ($)
$ / shares in Units, $ in Thousands

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Sep. 30, 2018

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Accounts receivable, net

$ 247,566

$ 266,742

Other accrued liabilities

14,066

13,805

Other assets

38,262

36,254

26,079

31,025

Deferred revenue

103,527

103,335

Stockholders’ equity

227,895

287,437

262,256

$ 232,361

Cost of revenues

^[1]

76,066

74,432

^[1]

100,258

90,342

(2,851)

(2,001)

40,007

32,879

$ 36,742

$ 35,950

$ 1.38

$ 1.09

$ 1.32

$ 1.04

Changes in operating assets and liabilities

$ (50)

$ (1,942)

(26,320)

Previously Reported

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Accounts receivable, net

208,865

Other accrued liabilities

20,117

Other assets

12,431

30,457

52,215

263,737

235,321

74,359

90,296

6,658

27,299

$ 30,370

$ 0.91

$ 0.86

Changes in operating assets and liabilities

$ 6,717

(29,399)

Accounting Standards Update 2014-09 | Restatement Adjustment

Error Corrections and Prior Period Adjustments Restatement [Line Items]

Accounts receivable, net

57,877

Other accrued liabilities

(6,312)

Other assets

23,823

568

51,120

$ 23,700

(2,960)

(8,659)

5,580

$ 5,580

$ 0.18

$ 0.18

Changes in operating assets and liabilities

$ (8,659)

$ 3,079

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

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

Dec. 31, 2018

Sep. 30, 2018

Assets:

Marketable securities

$ 18,059

Cash deposits

$ 61,500

71,600

Fair Value, Measurements, Recurring

Assets:

Cash equivalents

^[1]

18,417

18,413

Marketable securities

^[2]

17,210

18,059

Total

35,627

36,472

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

Assets:

Cash equivalents

^[1]

18,417

18,413

Marketable securities

^[2]

17,210

18,059

Total

$ 35,627

$ 36,472

[1]	Included in cash and cash equivalents on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018. Not included in these tables are cash deposits of $61.5 million and $71.6 million at December 31, 2018 and September 30, 2018, respectively.
[2]	Represents securities held under a supplemental retirement and savings plan for senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheet at December 31, 2018 and September 30, 2018.

Derivative Financial Instruments - Additional Information (Detail) - USD ($)	3 Months Ended
	Dec. 31, 2018	Sep. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Short-term forward contracts, average maturities at inception (less than)	3 months
Foreign currency forward contracts
Derivative [Line Items]
Forward foreign currency contracts fair value	$ 0	$ 0

Derivative Financial Instruments - Summary of Outstanding Forward Foreign Currency Contracts by Currency (Detail) € in Thousands, £ in Thousands, $ in Thousands, $ in Thousands	Dec. 31, 2018 GBP (£)	Dec. 31, 2018 SGD ($)	Dec. 31, 2018 EUR (€)	Dec. 31, 2018 USD ($)	Sep. 30, 2018 GBP (£)	Sep. 30, 2018 SGD ($)	Sep. 30, 2018 EUR (€)	Sep. 30, 2018 USD ($)
Foreign Exchange Contracts To Sell European Euro for US Dollar
Derivative [Line Items]
Fair value of forward foreign currency contracts to sell and buy foreign currency				$ 0				$ 0
Foreign Exchange Contracts To Sell European Euro for US Dollar \| Foreign currency forward contracts \| Short \| Not Designated as Hedging Instrument
Derivative [Line Items]
Contract amount of forward foreign currency contracts			€ 10,750	12,312			€ 9,000	10,372
Foreign Exchange Contracts To Purchase British Pounds With US Dollars
Derivative [Line Items]
Fair value of forward foreign currency contracts to sell and buy foreign currency				0				0
Foreign Exchange Contracts To Purchase British Pounds With US Dollars \| Foreign currency forward contracts \| Short \| Not Designated as Hedging Instrument
Derivative [Line Items]
Contract amount of forward foreign currency contracts	£ 8,592			11,000	£ 8,598			11,200
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars
Derivative [Line Items]
Fair value of forward foreign currency contracts to sell and buy foreign currency				0				0
Foreign Exchange Contracts To Purchase Singapore Dollars With US Dollars \| Foreign currency forward contracts \| Short \| Not Designated as Hedging Instrument
Derivative [Line Items]
Contract amount of forward foreign currency contracts		$ 7,211		$ 5,300		$ 9,580		$ 7,000

Derivative Financial Instruments - Gains (Losses) on Derivative Financial Instruments Recorded in Consolidated Statements of Income (Detail) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Foreign currency forward contracts
Derivative [Line Items]
Gains (losses) on foreign currency forward contracts	$ (404)	$ 194

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

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

^[1]

$ 1,502

$ 1,788

Cost of revenues

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

494

706

Selling, general and administrative expenses

Finite-Lived Intangible Assets [Line Items]

Amortization expense of intangible assets

$ 1,008

$ 1,082

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

Goodwill and Intangible Assets - Additional Information (Detail) - USD ($) $ in Millions	Dec. 31, 2018	Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible assets, gross	$ 110.2	$ 111.0

Goodwill and Intangible Assets - Estimated Future Intangible Asset Amortization Expense (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Estimated future intangible asset amortization expense
2019 (excluding the quarter ended December 31, 2018)	$ 4,427
2020	3,618
2021	2,396
2022	2,252
2023	217
Total	$ 12,910	$ 14,536

Goodwill and Intangible Assets - Summary of Changes to Goodwill (Detail) $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($)
Goodwill [Roll Forward]
Balance at September 30, 2018	$ 800,890
Addition from acquisitions	980
Foreign currency translation adjustment	(3,077)
Balance at December 31, 2018	798,793
Applications
Goodwill [Roll Forward]
Balance at September 30, 2018	585,161
Addition from acquisitions	980
Foreign currency translation adjustment	(2,820)
Balance at December 31, 2018	583,321
Scores
Goodwill [Roll Forward]
Balance at September 30, 2018	146,648
Addition from acquisitions	0
Foreign currency translation adjustment	0
Balance at December 31, 2018	146,648
Decision Management Software
Goodwill [Roll Forward]
Balance at September 30, 2018	69,081
Addition from acquisitions	0
Foreign currency translation adjustment	(257)
Balance at December 31, 2018	$ 68,824

Composition of Certain Financial Statement Captions - Property and Equipment (Detail) - USD ($) $ in Thousands	Dec. 31, 2018	Sep. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Property and equipment	$ 159,956	$ 156,154
Less: accumulated depreciation and amortization	(113,092)	(107,317)
Total	$ 46,864	$ 48,837

Revolving Line of Credit (Detail)	May 08, 2018 USD ($)	Dec. 31, 2018 USD ($)
Line of Credit Facility [Line Items]
Unsecured revolving line of credit	$ 400,000,000
Revolving credit facility, expiration date	May 08, 2023
Line of credit facility-option to increase borrowing capacity	$ 100,000,000
Credit facility restrictive covenant, maximum consolidated leverage ratio	3.25
Credit facility restrictive covenant, maximum consolidated leverage ratio step up	3.75
Fixed charge coverage ratio minimum	2.5
Interest coverage ratio	3.00
Borrowings outstanding		$ 325,000,000
Interest rate of borrowings outstanding		3.839%
Long-term Debt
Line of Credit Facility [Line Items]
Borrowings outstanding		$ 125,000,000
Federal Fund Rate
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.50%
LIBOR
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.00%
LIBOR \| Minimum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.00%
LIBOR \| Maximum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	1.875%
Base Rate \| Minimum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.00%
Base Rate \| Maximum
Line of Credit Facility [Line Items]
Debt instrument basis spread on variable rate	0.875%

Senior Notes (Detail)	May 08, 2018 USD ($)	Jul. 14, 2010 USD ($) Contract	Dec. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2017 USD ($)
Debt Instrument [Line Items]
Senior Notes, weighted average interest rate			3.839%
Carrying value of Senior Notes			$ 513,000,000	$ 513,000,000
Fair value of Senior Notes			502,144,000	518,413,000
Debt issuance costs			(5,800,000)	(6,100,000)
July 2010 Senior Notes
Debt Instrument [Line Items]
Senior Notes issued in a private placement to a group of institutional investors		$ 245,000,000
Number of series of Senior Notes issued \| Contract		4
Senior Notes, weighted average interest rate		5.60%
Senior Notes, weighted average maturity (in years)		9 years 10 months
Net debt to EBITDA ratio maximum		3.00
Fixed charge coverage ratio minimum		2.50
Carrying value of Senior Notes			113,000,000	113,000,000
Fair value of Senior Notes			114,144,000	$ 114,413,000
July 2010 Senior Notes \| Minimum
Debt Instrument [Line Items]
Senior Notes, maturity (in years)		6 years
July 2010 Senior Notes \| Maximum
Debt Instrument [Line Items]
Senior Notes, maturity (in years)		10 years
May 2018 Senior Notes
Debt Instrument [Line Items]
Senior Notes issued in a private placement to a group of institutional investors	$ 400,000,000
Carrying value of Senior Notes			400,000,000		$ 400,000,000
Fair value of Senior Notes			$ 388,000,000		$ 404,000,000
Debt instrument, maturity date	May 15, 2026
Debt Instrument, Interest Rate, Stated Percentage	5.25%

Revenue from Contracts with Customers Disaggregation of Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Disaggregation of Revenue [Line Items]
Revenues	$ 262,256	$ 232,361
Transferred over Time
Disaggregation of Revenue [Line Items]
Revenues	235,001	213,531
Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenues	27,255	18,830
Applications
Disaggregation of Revenue [Line Items]
Revenues	147,659	140,174
Applications \| Transferred over Time
Disaggregation of Revenue [Line Items]
Revenues	128,627	126,500
Applications \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenues	19,032	13,674
Scores
Disaggregation of Revenue [Line Items]
Revenues	85,683	68,431
Scores \| Transferred over Time
Disaggregation of Revenue [Line Items]
Revenues	85,522	68,293
Scores \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenues	161	138
Decision Management Software
Disaggregation of Revenue [Line Items]
Revenues	28,914	23,756
Decision Management Software \| Transferred over Time
Disaggregation of Revenue [Line Items]
Revenues	20,852	18,738
Decision Management Software \| Transferred at Point in Time
Disaggregation of Revenue [Line Items]
Revenues	8,062	5,018
North America
Disaggregation of Revenue [Line Items]
Revenues	176,846	163,418
North America \| Applications
Disaggregation of Revenue [Line Items]
Revenues	80,949	83,739
North America \| Scores
Disaggregation of Revenue [Line Items]
Revenues	82,073	66,613
North America \| Decision Management Software
Disaggregation of Revenue [Line Items]
Revenues	13,824	13,066
Latin America
Disaggregation of Revenue [Line Items]
Revenues	23,992	7,686
Latin America \| Applications
Disaggregation of Revenue [Line Items]
Revenues	18,253	5,633
Latin America \| Scores
Disaggregation of Revenue [Line Items]
Revenues	514	709
Latin America \| Decision Management Software
Disaggregation of Revenue [Line Items]
Revenues	5,225	1,344
Europe, Middle East and Africa
Disaggregation of Revenue [Line Items]
Revenues	40,220	42,796
Europe, Middle East and Africa \| Applications
Disaggregation of Revenue [Line Items]
Revenues	32,562	36,216
Europe, Middle East and Africa \| Scores
Disaggregation of Revenue [Line Items]
Revenues	1,534	858
Europe, Middle East and Africa \| Decision Management Software
Disaggregation of Revenue [Line Items]
Revenues	6,124	5,722
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues	21,198	18,461
Asia Pacific \| Applications
Disaggregation of Revenue [Line Items]
Revenues	15,895	14,586
Asia Pacific \| Scores
Disaggregation of Revenue [Line Items]
Revenues	1,562	251
Asia Pacific \| Decision Management Software
Disaggregation of Revenue [Line Items]
Revenues	$ 3,741	$ 3,624

Revenue from Contracts with Customers Contract Balances (Details) - USD ($) $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2018	Sep. 30, 2018
Contract with Customer, Asset and Liability [Abstract]
Receivables, which are included in “Accounts receivable, net”		$ 250,960	$ 270,181
Deferred revenue	$ 108,118	$ 108,167	$ 108,118
Contract With Customer, Liability [Roll Forward]
Deferred revenues, beginning balance	108,118
Revenue recognized that was included in the deferred revenues balance at the beginning of the period	(53,339)
Increases due to billings, excluding amounts recognized as revenue during the period	53,388
Deferred revenues, ending balance	$ 108,167
Minimum
Disaggregation of Revenue [Line Items]
Payment term	30 days
Maximum
Disaggregation of Revenue [Line Items]
Payment term	60 days

Revenue from Contracts with Customers Capitalized Commission Costs (Details) - USD ($)	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Capitalized Contract Cost [Abstract]
Capitalized Contract Cost, Net	$ 28,500,000		$ 27,100,000
Capitalized Contract Cost, Amortization	1,200,000	$ 1,100,000
Capitalized Contract Cost, Impairment Loss	$ 0	$ 0

Income Taxes -Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017	Sep. 30, 2018
Income Tax Disclosure [Abstract]
Effective income tax rate	(7.70%)	(6.50%)
Unrecognized tax benefits, uncertain tax positions	$ 6.5		$ 6.1
Unrecognized tax benefits, accrued interest	$ 0.4		$ 0.3

Share-Based Payments - Additional Information (Details)	3 Months Ended
Share-Based Payments - Additional Information (Details)	Dec. 31, 2018
Employee stock option \| Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock option awards term	7 years
Restricted stock units not subject to market or performance conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	4 years
Restricted stock units subject to market or performance conditions
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period	3 years

Share-Based Payments - Summary of Option Activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018 USD ($) $ / shares shares
Shares
Outstanding at October 1, 2018 \| shares	996
Granted \| shares	66
Exercised \| shares	(138)
Outstanding at December 31, 2018 \| shares	924
Exercisable at December 31, 2018 \| shares	836
Vested and expected to vest at December 31, 2018 \| shares	918
Weighted-average Exercise Price
Outstanding at October 1, 2017 (in dollars per share) \| $ / shares	$ 63.13
Granted (in dollars per share) \| $ / shares	185.05
Exercised (in dollars per share) \| $ / shares	54.69
Outstanding at December 31, 2017 (in dollars per share) \| $ / shares	73.16
Exercisable at December 31, 2017 (in dollars per share) \| $ / shares	61.99
Vested and expected to vest at December 31, 2016 (in dollars per share) \| $ / shares	$ 72.39
Weighted-average Remaining Contractual Term
Outstanding at December 31, 2018	2 years 8 months 20 days
Exercisable at December 31, 2018	2 years 3 months 20 days
Vested and expected to vest at December 31, 2018	2 years 8 months 13 days
Aggregate Intrinsic Value
Outstanding at December 31, 2018 \| $	$ 105,207
Exercisable at December 31, 2018 \| $	104,507
Vested and expected to vest at December 31, 2018 \| $	$ 105,161

Share-Based Payments - Summary of Restricted Stock Unit Activity (Details) - Restricted Stock Units shares in Thousands	3 Months Ended
	Dec. 31, 2018 $ / shares shares
Shares
Outstanding at October 1, 2018 \| shares	1,113
Granted \| shares	313
Released \| shares	(339)
Forfeited \| shares	(4)
Outstanding at December 31, 2018 \| shares	1,083
Weighted- average Grant-date Fair Value
Outstanding at October 1, 2016 (in dollars per share) \| $ / shares	$ 127.34
Granted (in dollars per share) \| $ / shares	185.99
Released (in dollars per share) \| $ / shares	112.42
Forfeited (in dollars per share) \| $ / shares	149.46
Outstanding at December 31, 2016 (in dollars per share) \| $ / shares	$ 148.90

Share-Based Payments - Summary of Performance Share Unit and Market Share Unit Activity (Details) shares in Thousands	3 Months Ended
	Dec. 31, 2018 $ / shares shares
Performance Share Units
Shares
Outstanding at October 1, 2018 \| shares	210
Granted \| shares	45
Released \| shares	(105)
Outstanding at December 31, 2018 \| shares	150
Weighted- average Grant-date Fair Value
Outstanding at October 1, 2016 (in dollars per share) \| $ / shares	$ 133.76
Granted (in dollars per share) \| $ / shares	185.05
Released (in dollars per share) \| $ / shares	123.04
Outstanding at December 31, 2016 (in dollars per share) \| $ / shares	$ 156.83
Market Share Units
Shares
Outstanding at October 1, 2018 \| shares	114
Granted \| shares	105
Released \| shares	(119)
Outstanding at December 31, 2018 \| shares	100
Weighted- average Grant-date Fair Value
Outstanding at October 1, 2016 (in dollars per share) \| $ / shares	$ 159.34
Granted (in dollars per share) \| $ / shares	169.46
Released (in dollars per share) \| $ / shares	143.57
Outstanding at December 31, 2016 (in dollars per share) \| $ / shares	$ 188.63

Earnings per Share - Reconciliation of Numerators and Denominators of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Numerator for diluted and basic earnings per share:
Net income	$ 40,007	$ 32,879
Denominator - share:
Basic weighted-average shares (in shares)	28,961	30,078
Effect of dilutive securities (in shares)	1,375	1,483
Diluted weighted-average shares (in shares)	30,336	31,561
Earnings per share:
Basic (in dollars per share)	$ 1.38	$ 1.09
Diluted (in dollars per share)	$ 1.32	$ 1.04

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

+ References

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+ Details

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

+ References

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+ Details

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

Earnings per Share - Additional Information (Detail) - shares	3 Months Ended
	Dec. 31, 2018	Dec. 31, 2017
Earnings Per Share [Abstract]
Options to purchase shares of common stock excluded in the computation of diluted earnings per share because their inclusion would be antidilutive (in shares)	0	3,000

Segment Information - Additional Information (Detail)	3 Months Ended
Segment Information - Additional Information (Detail)	Dec. 31, 2018 Segment
Segment Reporting [Abstract]
Number of operating segments	3
Number of reportable segments	3

Segment Information - Summary of Segment Information (Detail) - USD ($)
$ in Thousands

3 Months Ended

Dec. 31, 2018

Dec. 31, 2017

$ 262,256

$ 232,361

(213,252)

(195,536)

Unallocated share-based compensation expense

49,004

36,825

(21,854)

(16,510)

Unallocated amortization expense

^[1]

(1,502)

(1,788)

Unallocated restructuring and acquisition-related

Unallocated interest expense

(9,676)

(6,460)

Unallocated other expense, net

(2,172)

513

Income before income taxes

37,156

30,878

6,144

5,794

Operating Segments

(189,896)

(177,238)

Unallocated Corporate Expenses

72,360

55,123

(29,254)

(26,761)

(29,254)

(26,761)

233

284

Applications

Applications | Operating Segments

147,659

140,174

147,659

140,174

(107,598)

(102,726)

40,061

37,448

4,797

3,943

Scores

Scores | Operating Segments

85,683

68,431

85,683

68,431

(13,482)

(15,888)

72,201

52,543

Decision Management Software

125

155

Decision Management Software | Operating Segments

28,914

23,756

28,914

23,756

(39,562)

(31,863)

(10,648)

(8,107)

Transactional and Maintenance

989

1,412

Transactional and Maintenance | Applications | Operating Segments

194,193

170,403

Transactional and Maintenance | Scores | Operating Segments

97,165

91,126

Transactional and Maintenance | Decision Management Software | Operating Segments

84,821

67,996

12,207

11,281

Technology Service

Technology Service | Applications | Operating Segments

40,808

43,128

Technology Service | Scores | Operating Segments

31,462

35,374

Technology Service | Decision Management Software | Operating Segments

701

297

8,645

7,457

License

License | Applications | Operating Segments

27,255

18,830

License | Scores | Operating Segments

19,032

13,674

License | Decision Management Software | Operating Segments

161

138