Segment and Related Information

3 Months Ended

Mar. 31, 2017

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information

We provide integrated information management solutions and services for the public sector, with a focus on local governments.

We provide our software systems and services and appraisal services through four business units, which focus on the following products:

• financial management, education and planning, regulatory and maintenance software solutions;

• financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions;

• courts and justice and public safety software solutions; and

• appraisal and tax software solutions and property appraisal services.

In accordance with ASC 280-10, Segment Reporting, the financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions unit; and the courts and justice and public safety software solutions unit meet the criteria for aggregation and are presented in one reportable segment, the Enterprise Software (“ES”) segment. The ES segment provides municipal and county governments and schools with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as financial management and courts and justice processes; public safety; planning, regulatory and maintenance; and land and vital records management. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property as well as property appraisal outsourcing services for local governments and taxing authorities. Property appraisal outsourcing services include: the physical inspection of commercial and residential properties; data collection and processing; computer analysis for property valuation; preparation of tax rolls; community education; and arbitration between taxpayers and the assessing jurisdiction.

We evaluate performance based on several factors, of which the primary financial measure is business segment operating income. We define segment operating income for our business units as income before non-cash amortization of intangible assets associated with their acquisitions, interest expense and income taxes. Segment operating income includes intercompany transactions. The majority of intercompany transactions relate to contracts involving more than one unit and are valued based on the contractual arrangement. Segment operating income for corporate primarily consists of compensation costs for the executive management team and certain accounting and administrative staff and share-based compensation expense for the entire company. Corporate segment operating income also includes revenues and expenses related to a company-wide user conference.

For the three months ended March 31, 2017
	Enterprise Software		Appraisal and Tax		Corporate			Totals
Revenues
Software licenses and royalties	$	16,574	$	1,649	$	—		$	18,223
Subscriptions	38,313		1,789		—			40,102
Software services	40,668		4,350		—			45,018
Maintenance	82,166		4,693		—			86,859
Appraisal services	—		6,612		—			6,612
Hardware and other	2,728		—		—			2,728
Intercompany	2,163		—		(2,163		)	—
Total revenues	$	182,612	$	19,093	$	(2,163	)	$	199,542
Segment operating income	$	52,051	$	4,214	$	(11,248	)	$	45,017

For the three months ended March 31, 2016
	Enterprise Software		Appraisal and Tax		Corporate			Totals
Revenues
Software licenses and royalties	$	15,654	$	1,196	$	—		$	16,850
Subscriptions	31,985		2,104		—			34,089
Software services	38,605		3,825		—			42,430
Maintenance	71,400		4,632		—			76,032
Appraisal services	—		6,558		—			6,558
Hardware and other	3,036		15		283			3,334
Intercompany	1,160		—		(1,160		)	—
Total revenues	$	161,840	$	18,330	$	(877	)	$	179,293
Segment operating income	$	40,669	$	4,830	$	(8,637	)	$	36,862

	Three Months ended March 31,
Reconciliation of reportable segment operating income to the Company's consolidated totals:	2017			2016
Total segment operating income	$	45,017		$	36,862
Amortization of acquired software	(5,410		)	(5,459		)
Amortization of customer and trade name intangibles	(3,458		)	(3,362		)
Other expense, net	(190		)	(467		)
Income before income taxes	$	35,959		$	27,574