FAIR ISAAC CORPFICO

FAIR ISAAC CORP Goodwill & Intangibles Disclosure

10-KFiled Nov 8, 20232 min read
Goodwill and Intangible Assets
Intangible assets that are subject to amortization consisted of the following at September 30, 2023 and 2022: 
 September 30, 2023September 30, 2022
 Gross
Carrying
Amount		Accumulated
Amortization		NetWeighted Average
Life in Years		Gross
Carrying
Amount		Accumulated
Amortization		NetWeighted Average
Life in Years
 (In thousands, except average life)
Completed technology$69,706 $(69,289)$417 5$67,760 $(66,843)$917 5
Customer contracts and relationships3,000 (2,500)500 53,000 (1,900)1,100 5
$72,706 $(71,789)$917 5$70,760 $(68,743)$2,017 5
Amortization expense associated with our intangible assets is reflected as a separate operating expense caption — amortization of intangible assets — and is excluded from cost of revenues and selling, general and administrative expenses within the accompanying consolidated statements of income and comprehensive income. Amortization expense consisted of the following:
 Year Ended September 30,
 202320222021
 (In thousands)
Completed technology$500 $500 $1,027 
Customer contracts and relationships600 1,561 2,082 
Non-compete agreements— — 146 
Total$1,100 $2,061 $3,255 
At September 30, 2023, estimated future intangible asset amortization expense was $0.9 million, which will be recognized in fiscal 2024. 
The following table summarizes changes to goodwill during fiscal 2023 and 2022, both in total and as allocated to our segments. We have not recognized any goodwill impairment losses to date. 
ScoresSoftwareTotal
 (In thousands)
Balance at September 30, 2021$146,648 $641,537 $788,185 
Foreign currency translation adjustment— (27,118)(27,118)
Balance at September 30, 2022146,648 614,419 761,067 
Foreign currency translation adjustment— 12,260 12,260 
Balance at September 30, 2023$146,648 $626,679 $773,327 

Historical Timeline

Fiscal YearFiled
2023Nov 8, 2023Showing above
2022Nov 9, 2022
2021Nov 10, 2021
2020Nov 12, 2020
2019Nov 8, 2019
2018Nov 9, 2018
2017Nov 9, 2017
2016Nov 10, 2016
2015Nov 10, 2015

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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