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Segment Information | 3 Months Ended
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Dec. 31, 2020
Segment Reporting [Abstract] |
Segment Information | Segment InformationWe 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, financial crimes compliance, 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 or Amazon Web Services (“AWS”). •Scores. This segment includes our business-to-business scoring solutions and services, our business-to-consumer scoring solutions and services including 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 and services are either distributed through major credit reporting agencies worldwide or sold to our 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. Some of our decision management software is currently delivered as part of the FICO® Decision Management Platform and is increasingly being adopted to connect decisioning solutions or previously disconnected use cases. These tools are available to our customers as on-premises software, through the FICO® Analytic Cloud or 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 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, 2020 and 2019:
| Quarter Ended December 31, 2020
| Applications |  | Scores |  | Decision Management Software |  | Unallocated Corporate Expenses |  | Total
| (In thousands)
Segment revenues: |  |  |  |  |  |  |  |  |
Transactional and maintenance | $ | 97,731 |  |  | $ | 138,590 |  |  | $ | 15,829 |  |  | $ | — |  |  | $ | 252,150 |
Professional services | 30,605 |  |  | 117 |  |  | 10,703 |  |  | — |  |  | 41,425 |
License | 7,025 |  |  | 5,944 |  |  | 5,870 |  |  | — |  |  | 18,839 |
Total segment revenues | 135,361 |  |  | 144,651 |  |  | 32,402 |  |  | — |  |  | 312,414 |
Segment operating expense | (99,859) |  |  | (21,626) |  |  | (47,220) |  |  | (30,253) |  |  | (198,958) |
Segment operating income (loss) | $ | 35,502 |  |  | $ | 123,025 |  |  | $ | (14,818) |  |  | $ | (30,253) |  |  | 113,456 |
Unallocated share-based compensation expense |  |  |  |  |  |  |  |  | (25,132) |
Unallocated amortization expense |  |  |  |  |  |  |  |  | (937) |
Unallocated gain on sale of product line assets |  |  |  |  |  |  |  |  | 7,334 |
Operating income |  |  |  |  |  |  |  |  | 94,721 |
Unallocated interest expense, net |  |  |  |  |  |  |  |  | (9,641) |
Unallocated other income, net |  |  |  |  |  |  |  |  | 2,880 |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 87,960 |
Depreciation expense | $ | 4,374 |  |  | $ | 194 |  |  | $ | 984 |  |  | $ | 33 |  |  | $ | 5,585 |
| Quarter Ended December 31, 2019
| Applications |  | Scores |  | Decision Management Software |  | Unallocated Corporate Expenses |  | Total
| (In thousands)
Segment revenues: |  |  |  |  |  |  |  |  |
Transactional and maintenance | $ | 98,837 |  |  | $ | 107,446 |  |  | $ | 14,091 |  |  | $ | — |  |  | $ | 220,374 |
Professional services | 34,023 |  |  | 264 |  |  | 9,738 |  |  | — |  |  | 44,025 |
License | 19,318 |  |  | 7,428 |  |  | 7,359 |  |  | — |  |  | 34,105 |
Total segment revenues | 152,178 |  |  | 115,138 |  |  | 31,188 |  |  | — |  |  | 298,504 |
Segment operating expense | (116,010) |  |  | (17,712) |  |  | (50,645) |  |  | (34,210) |  |  | (218,577) |
Segment operating income (loss) | $ | 36,168 |  |  | $ | 97,426 |  |  | $ | (19,457) |  |  | $ | (34,210) |  |  | 79,927 |
Unallocated share-based compensation expense |  |  |  |  |  |  |  |  | (23,145) |
Unallocated amortization expense |  |  |  |  |  |  |  |  | (1,796) |
Unallocated restructuring and impairment charges |  |  |  |  |  |  |  |  | (3,104) |
Operating income |  |  |  |  |  |  |  |  | 51,882 |
Unallocated interest expense, net |  |  |  |  |  |  |  |  | (9,768) |
Unallocated other expense, net |  |  |  |  |  |  |  |  | (219) |
Income before income taxes |  |  |  |  |  |  |  |  | $ | 41,895 |
Depreciation expense | $ | 4,349 |  |  | $ | 116 |  |  | $ | 986 |  |  | $ | 225 |  |  | $ | 5,676 |
Information about disaggregated revenue by product deployment methods was as follows:
| Quarter Ended December 31, 2020
Reportable Segments | On-Premises |  | SaaS |  | Scores |  | Total |  | Percentage
| (Dollars in thousands)
Applications | $ | 71,220 |  |  | $ | 64,141 |  |  | $ | — |  |  | $ | 135,361 |  |  | 43 | %
Scores | — |  |  | — |  |  | 144,651 |  |  | 144,651 |  |  | 46 | %
Decision Management Software | 22,778 |  |  | 9,624 |  |  | — |  |  | 32,402 |  |  | 11 | %
Total | $ | 93,998 |  |  | $ | 73,765 |  |  | $ | 144,651 |  |  | $ | 312,414 |  |  | 100 | %
| Quarter Ended December 31, 2019
Reportable Segments | On-Premises |  | SaaS |  | Scores |  | Total |  | Percentage
| (Dollars in thousands)
Applications | $ | 85,978 |  |  | $ | 66,200 |  |  | $ | — |  |  | $ | 152,178 |  |  | 51 | %
Scores | — |  |  | — |  |  | 115,138 |  |  | 115,138 |  |  | 39 | %
Decision Management Software | 23,679 |  |  | 7,509 |  |  | — |  |  | 31,188 |  |  | 10 | %
Total | $ | 109,657 |  |  | $ | 73,709 |  |  | $ | 115,138 |  |  | $ | 298,504 |  |  | 100 | %
Information about disaggregated revenue by primary geographical markets was as follows:
| Quarter Ended December 31, 2020
Reportable Segments | North America |  | Latin America |  | Europe, Middle East and Africa |  | Asia Pacific |  | Total
| (In thousands)
Applications | $ | 79,337 |  |  | $ | 9,227 |  |  | $ | 35,257 |  |  | $ | 11,540 |  |  | $ | 135,361 |
Scores | 140,410 |  |  | 303 |  |  | 1,713 |  |  | 2,225 |  |  | 144,651 |
Decision Management Software | 16,547 |  |  | 2,913 |  |  | 8,578 |  |  | 4,364 |  |  | 32,402 |
Total | $ | 236,294 |  |  | $ | 12,443 |  |  | $ | 45,548 |  |  | $ | 18,129 |  |  | $ | 312,414 |
| Quarter Ended December 31, 2019
Reportable Segments | North America |  | Latin America |  | Europe, Middle East and Africa |  | Asia Pacific |  | Total
| (In thousands)
Applications | $ | 85,466 |  |  | $ | 9,517 |  |  | $ | 39,784 |  |  | $ | 17,411 |  |  | $ | 152,178 |
Scores | 110,197 |  |  | 284 |  |  | 1,538 |  |  | 3,119 |  |  | 115,138 |
Decision Management Software | 15,587 |  |  | 4,333 |  |  | 7,265 |  |  | 4,003 |  |  | 31,188 |
Total | $ | 211,250 |  |  | $ | 14,134 |  |  | $ | 48,587 |  |  | $ | 24,533 |  |  | $ | 298,504 |

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- 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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=120311839&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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