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Segment Information
 6 Months Ended
Mar. 31, 2021
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 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 and six-month periods ended March 31, 2021 and 2020:
 Quarter Ended March 31, 2021
 ApplicationsScoresDecision Management SoftwareUnallocated
Corporate
Expenses		Total
 (In thousands)
Segment revenues:
Transactional and maintenance$96,687 $167,212 $17,020 $— $280,919 
Professional services27,627 703 9,464 — 37,794 
License5,200 804 6,644 — 12,648 
Total segment revenues129,514 168,719 33,128 — 331,361 
Segment operating expense(102,142)(22,177)(43,300)(33,392)(201,011)
Segment operating income (loss)$27,372 $146,542 $(10,172)$(33,392)130,350 
Unallocated share-based compensation expense(28,206)
Unallocated amortization expense(945)
Operating income101,199 
Unallocated interest expense, net(9,943)
Unallocated other income, net568 
Income before income taxes$91,824 
Depreciation expense$4,110 $167 $902 $45 $5,224 
 Quarter Ended March 31, 2020
 ApplicationsScoresDecision Management SoftwareUnallocated
Corporate
Expenses		Total
 (In thousands)
Segment revenues:
Transactional and maintenance$97,789 $127,610 $15,303 $— $240,702 
Professional services35,134 819 11,952 — 47,905 
License7,356 719 11,289 — 19,364 
Total segment revenues140,279 129,148 38,544 — 307,971 
Segment operating expense(111,456)(15,660)(47,354)(33,785)(208,255)
Segment operating income (loss)$28,823 $113,488 $(8,810)$(33,785)99,716 
Unallocated share-based compensation expense(22,788)
Unallocated amortization expense(1,202)
Operating income75,726 
Unallocated interest expense, net(11,254)
Unallocated other expense, net(2,008)
Income before income taxes$62,464 
Depreciation expense$4,553 $141 $1,158 $108 $5,960 

 Six Months Ended March 31, 2021
 ApplicationsScoresDecision Management SoftwareUnallocated
Corporate
Expenses		Total
 (In thousands)
Segment revenues:
Transactional and maintenance$194,418 $305,802 $32,849 $— $533,069 
Professional services58,232 820 20,167 — 79,219 
License12,225 6,748 12,514 — 31,487 
Total segment revenues264,875 313,370 65,530 — 643,775 
Segment operating expense(202,001)(43,803)(90,520)(63,645)(399,969)
Segment operating income (loss)$62,874 $269,567 $(24,990)$(63,645)243,806 
Unallocated share-based compensation expense(53,338)
Unallocated amortization expense(1,882)
Unallocated gain on sale of product line assets7,334 
Operating income195,920 
Unallocated interest expense, net(19,584)
Unallocated other income, net3,448 
Income before income taxes$179,784 
Depreciation expense$8,484 $361 $1,886 $78 $10,809 
 Six Months Ended March 31, 2020
 ApplicationsScoresDecision Management SoftwareUnallocated
Corporate
Expenses		Total
 (In thousands)
Segment revenues:
Transactional and maintenance$196,626 $235,056 $29,394 $— $461,076 
Professional services69,157 1,083 21,690 — 91,930 
License26,674 8,147 18,648 — 53,469 
Total segment revenues292,457 244,286 69,732 — 606,475 
Segment operating expense(227,466)(33,372)(97,999)(67,995)(426,832)
Segment operating income (loss)$64,991 $210,914 $(28,267)$(67,995)179,643 
Unallocated share-based compensation expense(45,933)
Unallocated amortization expense(2,998)
Unallocated restructuring and impairment charges(3,104)
Operating income127,608 
Unallocated interest expense, net(21,022)
Unallocated other expense, net(2,227)
Income before income taxes$104,359 
Depreciation expense$8,902 $257 $2,144 $333 $11,636 
Information about disaggregated revenue by product deployment methods was as follows:
Quarter Ended March 31, 2021
Reportable SegmentsOn-PremisesSaaSScoresTotalPercentage
(Dollars in thousands)
Applications$66,182 $63,332 $— $129,514 39 %
Scores— — 168,719 168,719 51 %
Decision Management Software22,287 10,841 — 33,128 10 %
      Total$88,469 $74,173 $168,719 $331,361 100 %
Quarter Ended March 31, 2020
Reportable SegmentsOn-PremisesSaaSScoresTotalPercentage
(Dollars in thousands)
Applications$76,341 $63,938 $— $140,279 46 %
Scores— — 129,148 129,148 42 %
Decision Management Software28,847 9,697 — 38,544 12 %
      Total$105,188 $73,635 $129,148 $307,971 100 %
Six Months Ended March 31, 2021
Reportable SegmentsOn-PremisesSaaSScoresTotalPercentage
(Dollars in thousands)
Applications$137,402 $127,473 $— $264,875 41 %
Scores— — 313,370 313,370 49 %
Decision Management Software45,065 20,465 — 65,530 10 %
      Total$182,467 $147,938 $313,370 $643,775 100 %
Six Months Ended March 31, 2020
Reportable SegmentsOn-PremisesSaaSScoresTotalPercentage
(Dollars in thousands)
Applications$162,319 $130,138 $— $292,457 48 %
Scores— — 244,286 244,286 40 %
Decision Management Software52,526 17,206 — 69,732 12 %
      Total$214,845 $147,344 $244,286 $606,475 100 %
Information about disaggregated revenue by primary geographical markets was as follows:
Quarter Ended March 31, 2021
Reportable SegmentsNorth AmericaLatin AmericaEurope, Middle East and AfricaAsia PacificTotal
(In thousands)
Applications$70,117 $9,112 $34,913 $15,372 $129,514 
Scores159,047 2,740 5,642 1,290 168,719 
Decision Management Software17,514 2,929 9,120 3,565 33,128 
      Total$246,678 $14,781 $49,675 $20,227 $331,361 
Quarter Ended March 31, 2020
Reportable SegmentsNorth AmericaLatin AmericaEurope, Middle East and AfricaAsia PacificTotal
(In thousands)
Applications$78,900 $9,672 $34,271 $17,436 $140,279 
Scores123,249 2,619 1,720 1,560 129,148 
Decision Management Software21,007 5,917 6,920 4,700 38,544 
      Total$223,156 $18,208 $42,911 $23,696 $307,971 
Six Months Ended March 31, 2021
Reportable SegmentsNorth AmericaLatin AmericaEurope, Middle East and AfricaAsia PacificTotal
(In thousands)
Applications$149,454 $18,339 $70,170 $26,912 $264,875 
Scores299,457 3,043 7,355 3,515 313,370 
Decision Management Software34,061 5,842 17,698 7,929 65,530 
      Total$482,972 $27,224 $95,223 $38,356 $643,775 
Six Months Ended March 31, 2020
Reportable SegmentsNorth AmericaLatin AmericaEurope, Middle East and AfricaAsia PacificTotal
(In thousands)
Applications$164,366 $19,189 $74,055 $34,847 $292,457 
Scores233,446 2,903 3,258 4,679 244,286 
Decision Management Software36,594 10,250 14,185 8,703 69,732 
      Total$434,406 $32,342 $91,498 $48,229 $606,475