Fair Isaac Corp 8-K, filed Sep 16, 2020
Fair Isaac Corp (FICO)
About this 8-K
Fair Isaac Corp filed this 8-K on September 16, 2020, reporting on events of September 14, 2020.
Items reported
- Item 2.05: Exit or restructuring costs
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CURRENT REPORT
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| Item 2.05. | Costs Associated with Exit of Disposal Activities |
On September 14, 2020, Fair Isaac Corporation (the “Company”) committed to a course of action designed to reduce its operating costs in lower value, less strategic areas of the Company’s business in order to facilitate incremental investment in higher value, more strategic areas while also adjusting the Company’s facilities footprint in light of post-pandemic workforce patterns. The Company expects this course of action to result in an aggregate of approximately $36 million in annual expense savings beginning in fiscal 2021, consisting of $8.7 million in reduced facilities expense and $27.3 million in reduced employee expense.
Specifically, the Company will close certain non-core offices and reduce office space in other locations to better align with anticipated needs, and reduce its global workforce by 3.5%, affecting approximately 140 positions. The Company expects these actions to result in an aggregate pre-tax charge of approximately $42 million in the fourth quarter of fiscal 2020, substantially all of which will result in future cash expenditures. This aggregate pre-tax charge will consist of approximately $34 million in costs related to future cash lease obligations for the closed or consolidated locations, net of anticipated sublease income, and approximately $8 million in severance and related pre-tax costs for the headcount reduction.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FAIR ISAAC CORPORATION | ||
| By | /s/ Mark R. Scadina | |
| Mark R. Scadina | ||
| Executive Vice President, General Counsel and Secretary | ||
Date: September 16, 2020