XML 24 R22.htm IDEA: XBRL DOCUMENT
v3.19.3

Segment Information | 12 Months Ended
--- | ---
Sep. 30, 2019
Segment Reporting [Abstract] |
Segment Information | Segment Information We are organized into the following three operating segments, each of which is a reportable segment, to align with internal management of our worldwide business operations based on product offerings.
• | Applications. This segment includes pre-configured decision management applications designed for a specific type of business problem or process — such as marketing, account origination, customer management, fraud, collections and insurance claims management — as well as associated professional services. These applications are available to our customers as on-premises software, and many are available as hosted, SaaS applications through the FICO® Analytic Cloud or third-party public clouds, such as those provided by AWS.
• | Scores. This segment includes our business-to-business scoring solutions, our myFICO® solutions for consumers and associated professional services. Our scoring solutions give our clients access to analytics that can be easily integrated into their transaction streams and decision-making processes. Our scoring solutions are distributed through major credit reporting agencies, as well as services through which we provide our scores to clients directly.
• | Decision Management Software. This segment is composed of analytic and decision management software tools that clients can use to create their own custom decision management applications, our 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 or third-party public clouds, such as those provided by AWS.
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 and acquisition-related expense, amortization expense, various corporate charges and certain other income and expense measures to our segments. These income and expense items are not allocated because they are not considered in evaluating the segment’s operating performance. Our Chief Executive Officer does not evaluate the financial performance of each segment based on its respective assets or capital expenditures; rather, depreciation amounts are allocated to the segments from their internal cost centers as described above. The following tables summarize segment information for fiscal 2019, 2018 and 2017:
| Year Ended September 30, 2019
| Applications |  | Scores |  | Decision Management Software |  | Unallocated Corporate Expenses |  | Total
| (In thousands)
Segment revenues: |  |  |  |  |  |  |  |  |
Transactional and maintenance | $ | 395,398 |  |  | $ | 415,288 |  |  | $ | 50,262 |  |  | $ | — |  |  | $ | 860,948 |
Professional services | 137,258 |  |  | 2,157 |  |  | 44,680 |  |  | — |  |  | 184,095 |
License | 72,378 |  |  | 3,732 |  |  | 38,930 |  |  | — |  |  | 115,040 |
Total segment revenues | 605,034 |  |  | 421,177 |  |  | 133,872 |  |  | — |  |  | 1,160,083 |
Segment operating expense | (443,872 | ) |  | (59,821 | ) |  | (168,988 | ) |  | (144,755 | ) |  | (817,436 | )
Segment operating income (loss) | $ | 161,162 |  |  | $ | 361,356 |  |  | $ | (35,116 | ) |  | $ | (144,755 | ) |  | $ | 342,647 |
Unallocated share-based compensation expense |  |  |  |  |  |  |  |  | (82,973 | )
Unallocated amortization expense |  |  |  |  |  |  |  |  | (6,126 | )
Operating income |  |  |  |  |  |  |  |  | 253,548 |
Unallocated interest expense, net |  |  |  |  |  |  |  |  | (39,752 | )
Unallocated other income, net |  |  |  |  |  |  |  |  | 2,276 |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 216,072 |
Depreciation expense | $ | 18,766 |  |  | $ | 498 |  |  | $ | 4,036 |  |  | $ | 904 |  |  | $ | 24,204 |
| Year Ended September 30, 2018 (As Adjusted)
| Applications |  | Scores |  | Decision Management Software |  | Unallocated Corporate Expenses |  | Total
| (In thousands)
Segment revenues: |  |  |  |  |  |  |  |  |
Transactional and maintenance | $ | 372,283 |  |  | $ | 331,662 |  |  | $ | 46,658 |  |  | $ | — |  |  | $ | 750,603 |
Professional services | 142,736 |  |  | 1,900 |  |  | 32,274 |  |  | — |  |  | 176,910 |
License | 49,356 |  |  | 2,308 |  |  | 20,969 |  |  | — |  |  | 72,633 |
Total segment revenues | 564,375 |  |  | 335,870 |  |  | 99,901 |  |  | — |  |  | 1,000,146 |
Segment operating expense | (420,411 | ) |  | (63,452 | ) |  | (134,261 | ) |  | (125,255 | ) |  | (743,379 | )
Segment operating income (loss) | $ | 143,964 |  |  | $ | 272,418 |  |  | $ | (34,360 | ) |  | $ | (125,255 | ) |  | 256,767 |
Unallocated share-based compensation expense |  |  |  |  |  |  |  |  | (74,814 | )
Unallocated amortization expense |  |  |  |  |  |  |  |  | (6,594 | )
Operating income |  |  |  |  |  |  |  |  | 175,359 |
Unallocated interest expense, net |  |  |  |  |  |  |  |  | (31,311 | )
Unallocated other income, net |  |  |  |  |  |  |  |  | 12,884 |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 156,932 |
Depreciation expense | $ | 15,651 |  |  | $ | 555 |  |  | $ | 5,471 |  |  | $ | 956 |  |  | $ | 22,633 |
| Year Ended September 30, 2017 (As Adjusted)
| Applications |  | Scores |  | Decision Management Software |  | Unallocated Corporate Expenses |  | Total
| (In thousands)
Segment revenues: |  |  |  |  |  |  |  |  |
Transactional and maintenance | $ | 335,560 |  |  | $ | 254,424 |  |  | $ | 43,943 |  |  | $ | — |  |  | $ | 633,927 |
Professional services | 140,990 |  |  | 2,869 |  |  | 34,045 |  |  | — |  |  | 177,904 |
License | 84,084 |  |  | 2,244 |  |  | 36,824 |  |  | — |  |  | 123,152 |
Total segment revenues | 560,634 |  |  | 259,537 |  |  | 114,812 |  |  | — |  |  | 934,983 |
Segment operating expense | (392,307 | ) |  | (54,369 | ) |  | (122,839 | ) |  | (104,907 | ) |  | (674,422 | )
Segment operating income (loss) | $ | 168,327 |  |  | $ | 205,168 |  |  | $ | (8,027 | ) |  | $ | (104,907 | ) |  | 260,561 |
Unallocated share-based compensation expense |  |  |  |  |  |  |  |  | (61,222 | )
Unallocated amortization expense |  |  |  |  |  |  |  |  | (12,709 | )
Unallocated restructuring and acquisition-related expenses |  |  |  |  |  |  |  |  | (4,471 | )
Operating income |  |  |  |  |  |  |  |  | 182,159 |
Unallocated interest expense, net |  |  |  |  |  |  |  |  | (25,790 | )
Unallocated other expense, net |  |  |  |  |  |  |  |  | (86 | )
Income before income taxes |  |  |  |  |  |  |  |  | $ | 156,283 |
Depreciation expense | $ | 15,857 |  |  | $ | 991 |  |  | $ | 4,783 |  |  | $ | 1,349 |  |  | $ | 22,980 |
Information about disaggregated revenue by product deployment methods was as follows:
| Year Ended September 30, 2019
Reportable Segments | On-Premises |  | SaaS |  | Scores |  | Total |  | Percentage
| (Dollars in thousands)
Applications | $ | 360,105 |  |  | $ | 244,929 |  |  | $ | — |  |  | $ | 605,034 |  |  | 52 | %
Scores | — |  |  | — |  |  | 421,177 |  |  | 421,177 |  |  | 36 | %
Decision Management Software | 108,447 |  |  | 25,425 |  |  | — |  |  | 133,872 |  |  | 12 | %
Total | $ | 468,552 |  |  | $ | 270,354 |  |  | $ | 421,177 |  |  | $ | 1,160,083 |  |  | 100 | %
| Year Ended September 30, 2018 (As Adjusted)
Reportable Segments | On-Premises |  | SaaS |  | Scores |  | Total |  | Percentage
| (Dollars in thousands)
Applications | $ | 337,162 |  |  | $ | 227,213 |  |  | $ | — |  |  | $ | 564,375 |  |  | 56 | %
Scores | — |  |  | — |  |  | 335,870 |  |  | 335,870 |  |  | 34 | %
Decision Management Software | 86,172 |  |  | 13,729 |  |  | — |  |  | 99,901 |  |  | 10 | %
Total | $ | 423,334 |  |  | $ | 240,942 |  |  | $ | 335,870 |  |  | $ | 1,000,146 |  |  | 100 | %
| Year Ended September 30, 2017 (As Adjusted)
Reportable Segments | On-Premises |  | SaaS |  | Scores |  | Total |  | Percentage
| (Dollars in thousands)
Applications | $ | 367,944 |  |  | $ | 192,690 |  |  | $ | — |  |  | $ | 560,634 |  |  | 60 | %
Scores | — |  |  | — |  |  | 259,537 |  |  | 259,537 |  |  | 28 | %
Decision Management Software | 104,995 |  |  | 9,817 |  |  | — |  |  | 114,812 |  |  | 12 | %
Total | $ | 472,939 |  |  | $ | 202,507 |  |  | $ | 259,537 |  |  | $ | 934,983 |  |  | 100 | %
We derive a significant portion of revenues internationally, and 34%, 35%, and 37% of total consolidated revenues were derived from clients outside the U.S. during fiscal 2019, 2018 and 2017, respectively. Information about disaggregated revenue by primary geographical markets was as follows:
| Year Ended September 30, 2019
Reportable Segments | North America |  | Latin America |  | Europe, Middle East and Africa |  | Asia Pacific |  | Total
| (In thousands)
Applications | $ | 338,990 |  |  | $ | 42,656 |  |  | $ | 155,539 |  |  | $ | 67,849 |  |  | $ | 605,034 |
Scores | 404,778 |  |  | 4,591 |  |  | 6,359 |  |  | 5,449 |  |  | 421,177 |
Decision Management Software | 63,397 |  |  | 18,040 |  |  | 33,288 |  |  | 19,147 |  |  | 133,872 |
Total | $ | 807,165 |  |  | $ | 65,287 |  |  | $ | 195,186 |  |  | $ | 92,445 |  |  | $ | 1,160,083 |
| Year Ended September 30, 2018 (As Adjusted)
Reportable Segments | North America |  | Latin America |  | Europe, Middle East and Africa |  | Asia Pacific |  | Total
| (In thousands)
Applications | $ | 318,836 |  |  | $ | 39,136 |  |  | $ | 141,358 |  |  | $ | 65,045 |  |  | $ | 564,375 |
Scores | 328,990 |  |  | 1,366 |  |  | 3,989 |  |  | 1,525 |  |  | 335,870 |
Decision Management Software | 53,184 |  |  | 5,035 |  |  | 24,245 |  |  | 17,437 |  |  | 99,901 |
Total | $ | 701,010 |  |  | $ | 45,537 |  |  | $ | 169,592 |  |  | $ | 84,007 |  |  | $ | 1,000,146 |
| Year Ended September 30, 2017 (As Adjusted)
Reportable Segments | North America |  | Latin America |  | Europe, Middle East and Africa |  | Asia Pacific |  | Total
| (In thousands)
Applications | $ | 327,226 |  |  | $ | 34,678 |  |  | $ | 139,765 |  |  | $ | 58,965 |  |  | $ | 560,634 |
Scores | 250,260 |  |  | 1,573 |  |  | 3,831 |  |  | 3,873 |  |  | 259,537 |
Decision Management Software | 62,758 |  |  | 7,112 |  |  | 30,222 |  |  | 14,720 |  |  | 114,812 |
Total | $ | 640,244 |  |  | $ | 43,363 |  |  | $ | 173,818 |  |  | $ | 77,558 |  |  | $ | 934,983 |
Within our Applications segment our fraud solutions accounted for 18%, 17% and 19% of total revenues in each of fiscal 2019, 2018 and 2017, respectively, our customer communication services accounted for 9%, 10% and 10% of total revenues in each of these periods, respectively; and our customer management solutions accounted for 6%, 8% and 8% of total revenues in each of these periods, respectively. Revenue generated from a single customer or a group of customers which represented 10% or greater of total revenue are summarized below for fiscal 2019, 2018 and 2017:
| Year Ended September 30,
| 2019 |  | 2018 |  | 2017
|  |  | As Adjusted |  | As Adjusted
| (Dollars in thousands)
Experian | $ | 148,037 |  |  | 13 | % |  | $ | 109,097 |  |  | 11 | % |  | $ | 80,096 |  |  | 9 | %
TransUnion and Equifax | 183,523 |  |  | 16 | % |  | 142,179 |  |  | 14 | % |  | 99,735 |  |  | 11 | %
Other customers | 828,523 |  |  | 71 | % |  | 748,870 |  |  | 75 | % |  | 755,152 |  |  | 80 | %
Total | $ | 1,160,083 |  |  | 100 | % |  | $ | 1,000,146 |  |  | 100 | % |  | $ | 934,983 |  |  | 100 | %
At September 30, 2019 and 2018, no individual customer accounted for 10% or more of total consolidated receivables. Our property and equipment, net, on a geographical basis are summarized below at September 30, 2019 and 2018:
| September 30,
| 2019 |  | 2018
| (Dollars in thousands)
United States | $ | 38,058 |  |  | 72 | % |  | $ | 39,593 |  |  | 81 | %
United Kingdom | 7,801 |  |  | 15 | % |  | 4,296 |  |  | 9 | %
Other countries | 7,168 |  |  | 13 | % |  | 4,948 |  |  | 10 | %
Total | $ | 53,027 |  |  | 100 | % |  | $ | 48,837 |  |  | 100 | %

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration