10-Q 1 fico-20220630.htm 10-Q fico-20220630
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 (Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2022
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission File Number 1-11689  
Fair Isaac Corporation
(Exact name of registrant as specified in its charter) 
Delaware94-1499887
(State or other jurisdiction of(I.R.S. Employer
incorporation or organization)Identification No.)
5 West Mendenhall, Suite 10559715
Bozeman,Montana
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code: 406-982-7276  
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.01 par value per shareFICONew York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act:
Large accelerated filerAccelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes
No
The number of shares of common stock outstanding on July 22, 2022 was 25,252,514 (excluding 63,604,269 shares held by us as treasury stock).


TABLE OF CONTENTS
 
 


i

PART I – FINANCIAL INFORMATION
Item 1. Financial Statements
FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
June 30,
2022
September 30, 2021
 (In thousands, except par value data)
Assets
Current assets:
Cash and cash equivalents$155,062 $195,354 
Accounts receivable, net286,341 312,107 
Prepaid expenses and other current assets31,854 43,513 
Total current assets473,257 550,974 
Marketable securities25,347 31,884 
Other investments1,213 1,312 
Property and equipment, net20,449 27,913 
Operating lease right-of-use assets39,711 47,275 
Goodwill772,673 788,185 
Intangible assets, net2,459 4,099 
Deferred income taxes18,268 20,549 
Other assets 103,459 95,585 
Total assets$1,456,836 $1,567,776 
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable$17,399 $20,749 
Accrued compensation and employee benefits80,194 103,506 
Other accrued liabilities57,776 79,535 
Deferred revenue98,486 105,417 
Current maturities on debt130,000 250,000 
Total current liabilities383,855 559,207 
Long-term debt 1,826,671 1,009,018 
Operating lease liabilities42,970 53,670 
Other liabilities50,812 56,823 
Total liabilities2,304,308 1,678,718 
Commitments and contingencies
Stockholders’ deficit:
Preferred stock ($0.01 par value; 1,000 shares authorized; none issued and outstanding)
  
Common stock ($0.01 par value; 200,000 shares authorized, 88,857 shares issued and 25,252 and 27,568 shares outstanding at June 30, 2022 and September 30, 2021, respectively)
253 276 
Additional paid-in-capital1,269,289 1,237,348 
Treasury stock, at cost (63,605 and 61,289 shares at June 30, 2022 and September 30, 2021, respectively)
(4,881,304)(3,857,855)
Retained earnings2,867,985 2,585,143 
Accumulated other comprehensive loss(103,695)(75,854)
Total stockholders’ deficit(847,472)(110,942)
Total liabilities and stockholders’ deficit$1,456,836 $1,567,776 
See accompanying notes.
1

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)

 Quarter Ended June 30,Nine Months Ended June 30,
 2022202120222021
 (In thousands, except per share data)
Revenues:
On-premises and SaaS software$142,537 $130,230 $417,963 $382,236 
Professional services27,074 35,752 77,975 114,151 
Scores179,355 172,202 532,584 485,572 
Total revenues348,966 338,184 1,028,522 981,959 
Operating expenses:
Cost of revenues78,691 82,240 219,688 260,101 
Research and development35,880 45,826 111,247 130,089 
Selling, general and administrative93,248 107,729 287,710 298,912 
Amortization of intangible assets532 810 1,619 2,692 
Gains on product line asset sales and business divestiture (92,805) (100,139)
Total operating expenses208,351 143,800 620,264 591,655 
Operating income140,615 194,384 408,258 390,304 
Interest expense, net(18,721)(10,018)(48,127)(29,602)
Other income (expense), net(1,000)3,526 (1,932)6,974 
Income before income taxes120,894 187,892 358,199 367,676 
Provision for income taxes27,394 36,694 75,357 61,312 
Net income93,500 151,198 282,842 306,364 
Other comprehensive income (loss):
Foreign currency translation adjustments(22,496)4,243 (27,841)19,445 
Comprehensive income$71,004 $155,441 $255,001 $325,809 
Earnings per share:
Basic$3.65 $5.27 $10.75 $10.58 
Diluted$3.61 $5.18 $10.63 $10.38 
Shares used in computing earnings per share:
Basic25,634 28,687 26,319 28,967 
Diluted25,867 29,195 26,608 29,505 

See accompanying notes.

2

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (DEFICIT)
(Unaudited)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at March 31, 202225,982 $260 $1,242,280 $(4,599,242)$2,774,485 $(81,199)$(663,416)
Share-based compensation— — 28,549 — — — 28,549 
Issuance of treasury stock under employee stock plans5 1 (1,540)361 — — (1,178)
Repurchases of common stock(735)(8)— (282,423)— — (282,431)
Net income— — — — 93,500 — 93,500 
Foreign currency translation adjustments— — — — — (22,496)(22,496)
Balance at June 30, 202225,252 $253 $1,269,289 $(4,881,304)$2,867,985 $(103,695)$(847,472)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(In thousands) SharesPar Value
Balance at March 31, 202128,829 $288 $1,181,692 $(3,239,109)$2,348,225 $(67,793)$223,303 
Share-based compensation— — 30,004 — — — 30,004 
Issuance of treasury stock under employee stock plans46 1 (532)2,604 — — 2,073 
Repurchases of common stock(489)(5)(40,000)(245,978)— — (285,983)
Net income— — — — 151,198 — 151,198 
Foreign currency translation adjustments— — — — — 4,243 4,243 
Balance at June 30, 202128,386 $284 $1,171,164 $(3,482,483)$2,499,423 $(63,550)$124,838 
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Deficit
(In thousands) SharesPar Value
Balance at September 30, 202127,568 $276 $1,237,348 $(3,857,855)$2,585,143 $(75,854)$(110,942)
Share-based compensation— — 86,363 — — — 86,363 
Issuance of treasury stock under employee stock plans242 3 (54,422)16,509 — — (37,910)
Repurchases of common stock(2,558)(26)— (1,039,958)— — (1,039,984)
Net income— — — — 282,842 — 282,842 
Foreign currency translation adjustments— — — — — (27,841)(27,841)
Balance at June 30, 202225,252 $253 $1,269,289 $(4,881,304)$2,867,985 $(103,695)$(847,472)
Common StockAdditional
Paid-in-Capital
Treasury StockRetained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’ Equity
(In thousands) SharesPar Value
Balance at September 30, 202029,096 $291 $1,218,583 $(2,997,856)$2,193,059 $(82,995)$331,082 
Share-based compensation— — 83,342 — — — 83,342 
Issuance of treasury stock under employee stock plans321 3 (90,761)16,568 — — (74,190)
Repurchases of common stock(1,031)(10)(40,000)(501,195)— — (541,205)
Net income— — — — 306,364 — 306,364 
Foreign currency translation adjustments— — — — — 19,445 19,445 
Balance at June 30, 202128,386 $284 $1,171,164 $(3,482,483)$2,499,423 $(63,550)$124,838 
See accompanying notes.
3

FAIR ISAAC CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
 Nine Months Ended June 30,
 20222021
 (In thousands)
Cash flows from operating activities:
Net income$282,842 $306,364 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization15,819 20,066 
Share-based compensation86,363 84,099 
Deferred income taxes1,825 (11,064)
Net (gain) loss on marketable securities7,985 (4,706)
Non-cash operating lease costs12,094 12,056 
Provision for doubtful accounts975 551 
Gains on product line asset sales and business divestiture (100,139)
Net loss on sales and abandonment of property and equipment210 107 
Changes in operating assets and liabilities:
Accounts receivable12,134 56,655 
Prepaid expenses and other assets4,945 5,172 
Accounts payable(2,978)(4,165)
Accrued compensation and employee benefits(22,355)(24,990)
Other liabilities(33,166)(5,388)
Deferred revenue(2,069)(2,556)
Net cash provided by operating activities 364,624 332,062 
Cash flows from investing activities:
Purchases of property and equipment(5,232)(5,792)
Proceeds from sales of marketable securities6,575 2,294 
Purchases of marketable securities(8,022)(5,121)
Proceeds from product line asset sales and business divestiture2,257 146,428 
Purchase of equity investment (210)
Net cash provided by (used in) investing activities(4,422)137,599 
Cash flows from financing activities:
Proceeds from revolving line of credit and term loan1,010,000 429,000 
Payments on revolving line of credit and term loan(855,500)(208,000)
Proceeds from issuance of senior notes550,000  
Payments on debt issuance costs(8,819) 
Payments on finance leases (177)
Proceeds from issuance of treasury stock under employee stock plans11,117 14,580 
Taxes paid related to net share settlement of equity awards(49,027)(88,770)
Repurchases of common stock(1,048,027)(541,205)
Net cash used in financing activities (390,256)(394,572)
Effect of exchange rate changes on cash(10,238)5,129 
Increase (decrease) in cash and cash equivalents(40,292)80,218 
Cash and cash equivalents, beginning of period195,354 157,394 
Cash and cash equivalents, end of period$155,062 $237,612 
Supplemental disclosures of cash flow information:
Cash paid for income taxes, net of refunds of $1,021 and $289 during the nine-month periods ended June 30, 2022 and 2021, respectively
$45,984 $34,465 
Cash paid for interest$52,058 $36,764 
Supplemental disclosures of non-cash investing and financing activities:
Purchase of property and equipment included in accounts payable$11 $564 
See accompanying notes.
4

FAIR ISAAC CORPORATION
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. Nature of Business
Fair Isaac Corporation
Fair Isaac Corporation (NYSE: FICO) (together with its consolidated subsidiaries, the “Company,” which may also be referred to in this report as “we,” “us,” “our,” or “FICO”) is a leading applied analytics company. We were founded in 1956 on the premise that data, used intelligently, can improve business decisions. Today, FICO’s software and the widely used FICO® Score operationalize analytics, enabling thousands of businesses in nearly 120 countries to uncover new opportunities, make timely decisions that matter, and execute them at scale. Most leading banks and credit card issuers rely on our solutions, as do insurers, retailers, telecommunications providers, automotive companies, public agencies, and organizations in other industries. We also serve consumers through online services that enable people to access and understand their FICO Scores — the standard measure in the U.S. of consumer credit risk — empowering them to increase financial literacy and manage their financial health.
Principles of Consolidation and Basis of Presentation
We have prepared the accompanying unaudited interim condensed consolidated financial statements in accordance with the instructions to Form 10-Q and the applicable accounting guidance. Consequently, we have not necessarily included all information and footnotes required for audited financial statements. In our opinion, the accompanying unaudited interim condensed consolidated financial statements reflect all adjustments (consisting only of normal recurring adjustments, except as otherwise indicated) necessary for a fair presentation of our financial position and results of operations. These unaudited condensed consolidated financial statements and notes thereto should be read in conjunction with our audited consolidated financial statements and notes thereto presented in our Annual Report on Form 10-K for the fiscal year ended September 30, 2021. The interim financial information contained in this report is not necessarily indicative of the results to be expected for any other interim period or for the entire fiscal year.
The condensed consolidated financial statements include the accounts of FICO and its subsidiaries. All intercompany accounts and transactions have been eliminated.
During the fourth quarter of fiscal 2021, we consolidated our operating segment structure from three to two by merging Applications and Decision Management Software segments into the new Software segment. As a result, we modified the presentation of our segment financial information with retrospective application to all prior periods presented. Refer to Note 18 - Segment Information to the consolidated financial statements included in Part II, Item 8 of our 2021 Annual Report on Form 10-K for further information.

In addition, effective beginning in the fourth quarter of fiscal 2021, we changed the classification of revenue from transactional and maintenance, professional services, and license to on-premises and SaaS software, professional services and scores, which is reflected in our condensed consolidated statements of income and comprehensive income, as well as our disclosures on disaggregation of revenue, to better align with our business strategy. Previously reported amounts in the condensed consolidated statements of income and comprehensive income and notes to the condensed consolidated financial statements were adjusted to conform to the current presentation.
Use of Estimates
We make estimates and assumptions that affect the amounts reported in the financial statements and the disclosures made in the accompanying notes. For example, we use estimates in determining the appropriate levels of various accruals; variable considerations included in the transaction price and standalone selling price of each performance obligation for our customer contracts; labor hours in connection with fixed-fee service contracts; the amount of our tax provision; and the realizability of deferred tax assets. We also use estimates in determining the remaining economic lives and carrying values of acquired intangible assets, property and equipment, and other long-lived assets. In addition, we use assumptions to estimate the fair value of reporting units and share-based compensation. Actual results may differ from our estimates.

5

As the impact of the COVID-19 pandemic continues to evolve, estimates and assumptions about future events and their effects cannot be determined with certainty and therefore require increased judgment. These estimates and assumptions may change in future periods and will be recognized in the condensed consolidated financial statements as new events occur and additional information becomes known. To the extent our actual results differ materially from those estimates and assumptions, our future financial statements could be affected. For more information, see Part II, Item 1A “Risk Factors” of this Quarterly Report on Form 10-Q.
New Accounting Pronouncements
Recent Accounting Pronouncements Not Yet Adopted
In October 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2021-08, “Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers” (“ASU 2021-08”). ASU 2021-08 requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities from acquired contracts using the revenue recognition guidance under Accounting Standards Codification Topic 606, Revenue from Contacts with Customers, in order to align the recognition of a contract liability with the definition of a performance obligation. The standard is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, which means that it will be effective for our fiscal year beginning October 1, 2023. Early adoption is permitted. We do not believe that adoption of ASU 2021-08 will have a significant impact on our condensed consolidated financial statements.
We do not expect that any other recently issued accounting pronouncements will have a significant effect on our financial statements.
2. Fair Value Measurements
Fair value is defined as the price that would be received from the sale of an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The accounting guidance establishes a three-level hierarchy for disclosure that is based on the extent and level of judgment used to estimate the fair value of assets and liabilities.
Level 1 - uses unadjusted quoted prices that are available in active markets for identical assets or liabilities. Our Level 1 assets were comprised of money market funds and certain marketable securities and our Level 1 liabilities included senior notes as of June 30, 2022 and September 30, 2021.
Level 2 - uses inputs other than quoted prices included in Level 1 that are either directly or indirectly observable through correlation with market data. These include quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets or liabilities in markets that are not active; and inputs to valuation models or other pricing methodologies that do not require significant judgment because the inputs used in the model, such as interest rates and volatility, can be corroborated by readily observable market data. We did not have any assets or liabilities that are valued using inputs identified under a Level 2 hierarchy as of June 30, 2022 and September 30, 2021.
Level 3 - uses one or more significant inputs that are unobservable and supported by little or no market activity, and that reflect the use of significant management judgment. Level 3 assets and liabilities include those whose fair value measurements are determined using pricing models, discounted cash flow methodologies or similar valuation techniques, and significant management judgment or estimation. We did not have any assets or liabilities that are valued using inputs identified under a Level 3 hierarchy as of June 30, 2022 and September 30, 2021.
6

The following tables represent financial assets that we measured at fair value on a recurring basis at June 30, 2022 and September 30, 2021:
June 30, 2022Active Markets for
Identical Instruments
(Level 1)
Fair Value as of
June 30, 2022
(In thousands)
Assets:
Cash equivalents (1)
$30,718 $30,718 
Marketable securities (2)
25,347 25,347 
Total$56,065 $56,065 
September 30, 2021Active Markets for
Identical Instruments
(Level 1)
Fair Value as of September 30, 2021
(In thousands)
Assets:
Cash equivalents (1)
$194 $194 
Marketable securities (2)
31,884 31,884 
Total$32,078 $32,078 
(1)Included in cash and cash equivalents on our condensed consolidated balance sheets at June 30, 2022 and September 30, 2021. Not included in these tables are cash deposits of $124.3 million and $195.2 million at June 30, 2022 and September 30, 2021, respectively.
(2)Represents securities held under a supplemental retirement and savings plan for certain officers and senior management employees, which are distributed upon termination or retirement of the employees. Included in marketable securities on our condensed consolidated balance sheets at June 30, 2022 and September 30, 2021.
See Note 7 for the fair value of our senior notes.
There were no transfers between Level 1, Level 2, and Level 3 of the fair value hierarchy during the quarters and nine-month periods ended June 30, 2022 and 2021.
3. Derivative Financial Instruments
We use derivative instruments to manage risks caused by fluctuations in foreign exchange rates. The primary objective of our derivative instruments is to protect the value of foreign-currency-denominated receivable and cash balances from the effects of volatility in foreign exchange rates that might occur prior to conversion to their functional currencies. We principally utilize foreign currency forward contracts, which enable us to buy and sell foreign currencies in the future at fixed exchange rates and economically offset changes in foreign exchange rates. We routinely enter into contracts to offset exposures denominated in the British pound, Euro, and Singapore dollar.
Foreign currency-denominated receivable and cash balances are remeasured at foreign exchange rates in effect on the balance sheet date with the effects of changes in foreign exchange rates reported in other income (expense), net. The forward contracts are not designated as hedges and are marked to market through other income (expense), net. Fair value changes in the forward contracts help mitigate the changes in the value of the remeasured receivable and cash balances attributable to changes in foreign exchange rates. The forward contracts are short-term in nature and typically have average maturities at inception of less than three months.
7

The following tables summarize our outstanding foreign currency forward contracts, by currency, at June 30, 2022 and September 30, 2021:
 June 30, 2022
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 15,800 $16,372 $ 
Buy foreign currency:
British pound (GBP)GBP 8,100 $9,800 $ 
Singapore dollar (SGD)SGD4,315 $3,100 $ 
 September 30, 2021
 Contract AmountFair Value
 Foreign
Currency
USDUSD
 (In thousands)
Sell foreign currency:
Euro (EUR)EUR 17,100 $19,829 $ 
Buy foreign currency:
British pound (GBP)GBP 11,467 $15,400 $ 
Singapore dollar (SGD)SGD6,650 $4,900 $ 
The foreign currency forward contracts were entered into on June 30, 2022 and September 30, 2021, respectively; therefore, their fair value was $0 on each of these dates.
Gains (losses) on derivative financial instruments were recorded in our condensed consolidated statements of income and comprehensive income as a component of other income (expense), net, and consisted of the following: 
 Quarter Ended June 30,Nine Months Ended June 30,
 2022202120222021
 (In thousands)
Gains (losses) on foreign currency forward contracts$(1,272)$88 $(1,286)$3,003 

4. Goodwill and Intangible Assets
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 condensed consolidated statements of income and comprehensive income. Amortization expense consisted of the following: 
 Quarter Ended June 30,Nine Months Ended June 30,
 2022202120222021
 (In thousands)
Completed technology$125 $257 $375 $902 
Customer contracts and relationships407 510 1,244 1,659 
Non-compete agreements 43  131 
       Total$532 $810 $1,619 $2,692 

8

Estimated future intangible asset amortization expense associated with intangible assets existing at June 30, 2022 was as follows:
Year Ending September 30,(In thousands)
2022 (excluding the nine months ended June 30, 2022)$442 
20231,100 
2024917 
       Total$2,459 
The following table summarizes changes to goodwill during the nine months ended June 30, 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 (15,512)(15,512)
Balance at June 30, 2022$146,648 $626,025 $772,673 

5. Composition of Certain Financial Statement Captions
The following table presents the composition of property and equipment, net at June 30, 2022 and September 30, 2021:
June 30,
2022
September 30,
2021
 (In thousands)
Property and equipment, net:
       Property and equipment$121,907 $124,966 
       Less: accumulated depreciation and amortization(101,458)(97,053)
           Total$20,449 $27,913 

6. Revolving Line of Credit and Term Loan
We have a $600 million unsecured revolving line of credit with a syndicate of banks that expires on August 19, 2026. Borrowings under the credit facility can be used for working capital and general corporate purposes and may also be used for the refinancing of existing debt, acquisitions, and the repurchase of our common stock. Interest on amounts borrowed under the credit facility is based on (i) an adjusted base rate, which is the greatest of (a) the prime rate, (b) the Federal Funds rate plus 0.500%, and (c) the one-month LIBOR rate plus 1.000%, plus, in each case, an applicable margin, or (ii) an adjusted LIBOR rate plus an applicable margin. The applicable margin for base rate borrowings ranges from 0% to 0.750% and for LIBOR borrowings ranges from 1.000% to 1.750%, and is determined based on our consolidated leverage ratio. In addition, we must pay credit facility fees. The credit facility contains certain restrictive covenants including a maximum consolidated leverage ratio of 3.50, subject to a step up to 4.00 following certain permitted acquisitions; and a minimum interest coverage ratio of 3.00. The credit agreement also contains other covenants typical of unsecured facilities.
In addition, we have a term loan in an initial principal amount of $300 million. The term loan is subject to the same pricing and covenants as the revolving line of credit and matures at the expiration of the facility on August 19, 2026. The term loan requires principal payments in consecutive quarterly installments of $3.75 million on the last business day of each quarter.
As of June 30, 2022, we had $380.0 million in borrowings outstanding under the revolving credit facility at a weighted-average interest rate of 2.974%, and $292.5 million in outstanding balance of the term loan at an interest rate of 2.684%, of which $542.5 million was classified as a long-term liability and recorded in long-term debt within the accompanying condensed consolidated balance sheets. We were in compliance with all financial covenants under this credit facility as of June 30, 2022.
9

7. Senior Notes
On May 8, 2018, we issued $400 million of senior notes in a private offering to qualified institutional investors (the “2018 Senior Notes”). The 2018 Senior Notes require interest payments semi-annually at a rate of 5.25% per annum and will mature on May 15, 2026.
On December 6, 2019, we issued $350 million of senior notes in a private offering to qualified institutional investors (the “2019 Senior Notes”). The 2019 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028.
On December 17, 2021, we issued $550 million of additional senior notes of the same class as the 2019 Senior Notes in a private offering to qualified institutional investors (the “2021 Senior Notes,” and collectively with the 2018 Senior Notes and the 2019 Senior Notes, the “Senior Notes”). The 2021 Senior Notes require interest payments semi-annually at a rate of 4.00% per annum and will mature on June 15, 2028, the same date as the 2019 Senior Notes.
The indentures for the Senior Notes contain certain covenants typical of unsecured obligations.
The following table presents the face values and fair values for the Senior Notes at June 30, 2022 and September 30, 2021:
 June 30, 2022September 30, 2021
 Face Value (*)Fair ValueFace Value (*) Fair Value
 (In thousands)
The 2018 Senior Notes$400,000 $388,000 $400,000 $453,000 
The 2019 Senior Notes and the 2021 Senior Notes900,000 801,000 350,000 357,000 
       Total $1,300,000 $1,189,000 $750,000 $810,000 
(*) The carrying value of the Senior Notes was the face value reduced by the net debt issuance costs of $15.0 million and $9.0 million at June 30, 2022 and September 30, 2021, respectively.
8. Revenue from Contracts with Customers
Disaggregation of Revenue
The following tables provide information about disaggregated revenue by primary geographical market:

Quarter Ended June 30, 2022
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$177,892 $115,331 $293,223 84 %
Europe, Middle East and Africa1,051 36,324 37,375 11 %
Asia Pacific412 17,956 18,368 5 %
      Total$179,355 $169,611 $348,966 100 %

Quarter Ended June 30, 2021
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$165,539 $103,627 $269,166 80 %
Europe, Middle East and Africa2,988 44,881 47,869 14 %
Asia Pacific3,675 17,474 21,149 6 %
      Total$172,202 $165,982 $338,184 100 %

10

Nine Months Ended June 30, 2022
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$518,695 $319,180 $837,875 81 %
Europe, Middle East and Africa3,796 107,850 111,646 11 %
Asia Pacific10,093 68,908 79,001 8 %
      Total$532,584 $495,938 $1,028,522 100 %
Nine Months Ended June 30, 2021
ScoresSoftwareTotalPercentage
(Dollars in thousands)
Americas$468,039 $311,323 $779,362 79 %
Europe, Middle East and Africa10,343 132,749 143,092 15 %
Asia Pacific7,190 52,315 59,505 6 %
Total$485,572 $496,387 $981,959 100 %
The following table provides information about disaggregated revenue for our Software segment by deployment method:
Quarter Ended June 30,Percentage of revenuesNine Months Ended June 30,Percentage of revenues
20222021202220212022202120222021
(Dollars in thousands)
On-premises software$70,689 $63,536 50 %49 %$205,943 $193,449 49 %51 %
SaaS software71,848 66,694 50 %51 %212,020