XML 39 R26.htm IDEA: XBRL DOCUMENT v3.22.2.2
Segment Information
12 Months Ended
Sep. 30, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
We are organized into two reportable segments: Scores and Software. Although we sell solutions and services into a large number of end user product and industry markets, our reportable business segments reflect the primary method in which management organizes and evaluates internal financial information to make operating decisions and assess performance.
Scores. This segment includes our business-to-business (“B2B”) scoring solutions and services which give our clients access to predictive credit and other scores that can be easily integrated into their transaction streams and decision-making processes. This segment also includes our business-to-consumer (“B2C”) scoring solutions, including our myFICO.com subscription offerings.
Software. This segment includes pre-configured analytic and decision management solutions designed for a specific type of business need or process — such as account origination, customer management, customer engagement, fraud detection, financial crimes compliance, and marketing — as well as associated professional services. This segment also includes FICO® Platform, a modular software offering designed to support advanced analytic and decision use cases, as well as stand-alone analytic and decisioning software that can be configured by our customers to address a wide variety of business use cases. These offerings are available to our customers as SaaS or as on-premises software.
Our chief operating decision maker (“CODM”), who is 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, IT infrastructure, 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 CODM 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 2022, 2021 and 2020: 
 Year Ended September 30, 2022
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$— $564,751 $— $564,751 
Professional services— 105,876 — 105,876 
Scores706,643 — — 706,643 
Total segment revenues706,643 670,627 — 1,377,270 
Segment operating expense(83,837)(485,175)(148,428)(717,440)
Segment operating income$622,806 $185,452 $(148,428)$659,830 
Unallocated share-based compensation expense(115,355)
Unallocated amortization expense(2,061)
Operating income542,414 
Unallocated interest expense, net(68,967)
Unallocated other expense, net(2,138)
Income before income taxes$471,309 
Depreciation expense$723 $14,412 $107 $15,242 
 
 Year Ended September 30, 2021
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$— $517,888 $— $517,888 
Professional services— 144,501 — 144,501 
Scores654,147 — — 654,147 
Total segment revenues654,147 662,389 — 1,316,536 
Segment operating expense(93,463)(557,242)(136,812)(787,517)
Segment operating income$560,684 $105,147 $(136,812)529,019 
Unallocated share-based compensation expense(112,457)
Unallocated amortization expense(3,255)
Unallocated restructuring and impairment charges(7,957)
Unallocated gains on product line asset sales and business divestiture100,139 
Operating income505,489 
Unallocated interest expense, net(40,092)
Unallocated other income, net7,745 
Income before income taxes$473,142 
Depreciation expense$667 $19,505 $147 $20,319 

 
 Year Ended September 30, 2020
 ScoresSoftwareUnallocated
Corporate
Expenses
Total
 (In thousands)
Segment revenues:
On-premises and SaaS software$— $584,576 $— $584,576 
Professional services— 181,439 — 181,439 
Scores528,547 — — 528,547 
Total segment revenues528,547 766,015 — 1,294,562 
Segment operating expense(74,237)(635,949)(144,704)(854,890)
Segment operating income$454,310 $130,066 $(144,704)439,672 
Unallocated share-based compensation expense(93,681)
Unallocated amortization expense(4,993)
Unallocated restructuring and impairment charges(45,029)
Operating income295,969 
Unallocated interest expense, net(42,177)
Unallocated other income, net3,208 
Income before income taxes$257,000 
Depreciation expense$617 $22,418 $418 $23,453