XML 28 R18.htm IDEA: XBRL DOCUMENT v3.21.2
Segment and Related Information
 9 Months Ended
Sep. 30, 2021
Segment Reporting [Abstract]  
Segment and Related Information Segment and Related Information
We provide integrated information management solutions and services for the public sector.
We provide our software systems and services and appraisal services through seven 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 software solutions;
•courts and justice and public safety software solutions;
•data and insights solutions;
•platform technologies solutions including case management and business management processing;
•NIC digital government and payments solutions; and
•appraisal and tax software solutions, land and vital records management software solutions, and property appraisal services.
In accordance with ASC 280-10, Segment Reporting, we report our results in three segments. The financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance software solutions unit; courts and justice and public safety software solutions unit; data and insights solutions; and platform technologies solutions meet the criteria for aggregation and are presented in the Enterprise Software (“ES”) reportable segment. The ES segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: financial management and education, courts and justice, public safety, planning, regulatory and maintenance, data and insights, and platform technologies processes. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property, land and vital records management as well as provides 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. On April 21, 2021, the Company acquired NIC resulting in a new reportable segment, as its operating results meet the criteria of a reportable segment. The operating results of NIC are included with the operating results of the NIC segment from the date of acquisition.
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. Corporate segment operating income primarily consists of compensation costs for the executive management team, certain shared services 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.
As of January 1, 2021, certain administrative costs related to information technology, which were previously allocated and reported in the ES and A&T segments, were moved to the Corporate segment to reflect changes in the way in which management makes operating decisions, allocates resources, and manages the growth and profitability of the Company. Prior year amounts for all segments have been adjusted to reflect the segment change.
For the three months ended September 30, 2021    
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues    
Software licenses and royalties$21,238 $1,435 $— $— $22,673 
Subscriptions102,285 8,311 142,346 — 252,942 
Software services41,985 4,603 8,036 — 54,624 
Maintenance110,231 7,399 203 — 117,833 
Appraisal services— 7,146 — — 7,146 
Hardware and other4,558 9 — 88 4,655 
Intercompany5,123 20 — (5,143)— 
Total revenues$285,420 $28,923 $150,585 $(5,055)$459,873 
Segment operating income$97,378 $6,928 $34,586 $(55,629)$83,263 
For the three months ended September 30, 2020
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$17,798 $2,139 $— $— $19,937 
Subscriptions82,972 6,318 — — 89,290 
Software services42,640 5,306 — — 47,946 
Maintenance108,270 9,709 — — 117,979 
Appraisal services— 5,394 — — 5,394 
Hardware and other5,131 69 — — 5,200 
Intercompany5,128 38 — (5,166)— 
Total revenues$261,939 $28,973 $— $(5,166)$285,746 
Segment operating income$92,964 $9,938 $— $(39,889)$63,013 
For the nine months ended September 30, 2021
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$50,064 $5,146 $— $— $55,210 
Subscriptions295,523 23,829 235,627 — 554,979 
Software services127,517 14,405 13,679 — 155,601 
Maintenance330,024 26,184 358 — 356,566 
Appraisal services— 19,876 — — 19,876 
Hardware and other13,412 79 — 3,027 16,518 
Intercompany15,989 51 — (16,040)— 
Total revenues$832,529 $89,570 $249,664 $(13,013)$1,158,750 
Segment operating income$284,813 $24,876 $57,517 $(170,825)$196,381 
For the nine months ended September 30, 2020
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$48,432 $7,267 $— $— $55,699 
Subscriptions238,744 17,907 — — 256,651 
Software services126,488 17,245 — — 143,733 
Maintenance320,447 28,657 — — 349,104 
Appraisal services— 15,853 — — 15,853 
Hardware and other12,222 114 — 2 12,338 
Intercompany13,662 58 — (13,720)— 
Total revenues$759,995 $87,101 $— $(13,718)$833,378 
Segment operating income$248,711 $26,246 $— $(109,893)$165,064 
Three Months Ended September 30,Nine Months Ended September 30,
Reconciliation of reportable segment operating income to the Company's consolidated totals:2021202020212020
Total segment operating income$83,263 $63,013 $196,381 $165,064 
Amortization of acquired software(12,896)(7,965)(32,683)(23,998)
Amortization of customer and trade name intangibles(14,183)(5,392)(31,015)(16,176)
Interest expense(5,396)(254)(18,311)(757)
Other income, net445 534 1,249 2,497 
Income before income taxes$51,233 $49,936 $115,621 $126,630