Share-Based Payments

3 Months Ended

Dec. 31, 2013

10. Share-Based Payments

We maintain the 2012 Long-Term Incentive Plan (the “2012 Plan”) under which we could 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 two other long-term incentive plans under which awards are currently outstanding: the 1992 Long-term Incentive Plan, which was adopted in February 1992 and expired in February 2012, and the 2003 Employment Inducement Award Plan, which was adopted in November 2003 and terminated in February 2012. Stock option awards granted after September 30, 2005 have a maximum term of seven years, and stock option awards granted prior to October 1, 2005 had a maximum term of ten years. Stock option awards and restricted stock unit awards not subject to market conditions vest ratably over three or four years. Restricted stock unit awards subject to market conditions vest annually over a period of three years based on achievement of specified criteria.

The following table summarizes option activity during the quarter ended December 31, 2013:


						Weighted-
						average
				Weighted-		Remaining
				average		Contractual		Aggregate
	Shares			Price		Term		Intrinsic Value
	(In thousands)					(Inyears)		(In thousands)
Outstanding at October 1, 2013		2,687		$	35.48
Granted		14			57.59
Exercised		(354	)		33.16
Forfeited		(59	)		41.46
Expired		(5	)		35.50

Outstanding at December 31, 2013		2,283		$	35.83		4.81	$	61,675

Options exercisable at December 31, 2013		965		$	32.00		3.97	$	29,761

Vested and expected to vest at December 31, 2013		2,098		$	35.42		4.74	$	57,529

In November 2013, the Compensation Committee of our Board of Directors granted 88,000 market share units (“MSUs”), a new performance based equity award, to our senior officers. MSUs will be earned based on our total shareholder return relative to the Russell 3000 Index over performance periods of one, two and three years. All 88,000 shares were outstanding at December 31, 2013.

The following table summarizes restricted stock unit activity (including MSUs) during the quarter ended December 31, 2013:


				Weighted-
				average
	Shares			Price
	(In thousands)
Outstanding at October 1, 2013		1,716		$	38.54
Granted		674			56.97
Released		(386	)		35.98
Forfeited		(64	)		36.42

Outstanding at December 31, 2013		1,940		$	45.52

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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