Segment And Related Information

12 Months Ended

Dec. 31, 2011

Segment And Related Information [Abstract]

Segment And Related Information

(15) SEGMENT AND RELATED INFORMATION

We are a major provider of integrated information management solutions and services for the public sector, with a focus on local and state governments.

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

following products:

• financial management and education software solutions;

• financial management and municipal courts software solutions;

• courts and justice software solutions; and

• appraisal and tax software solutions and property appraisal services.

In accordance with ASC 280-10, Segment Reporting, the financial management and education software solutions unit, financial management and municipal courts software solutions unit and the courts and justice software solutions unit meet the criteria for aggregation and are presented in one reportable segment, Enterprise Software Solutions ("ESS"). The ESS 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. The Appraisal and Tax Software Solutions and Services ("ATSS") 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 as income before noncash amortization of intangible assets associated with their acquisition, share-based compensation expense, 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. The accounting policies of the reportable segments are the same as those described in Note 1, "Summary of Significant Accounting Policies."

Segment assets include net accounts receivable, prepaid expenses and other current assets, net property and equipment and intangibles associated with their acquisition. Corporate assets consist of cash and investments, prepaid insurance, deferred income taxes and net property and equipment mainly related to unallocated information and technology assets.

ESS segment capital expenditures in 2011 and 2009 included $6.6 million and $11.2 million, respectively for the purchase of buildings and land in connection with plans to consolidate workforces and support long-term growth.

In 2009 the ATSS segment had one appraisal services customer which accounted for 10.4% of this segment's total revenues. The ATSS segment did not have any customers in 2011 and 2010 that accounted for 10% or more of their total revenues.

As of and year ended December 31, 2011

	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses	$	30,194	$	2,400	$	—		$	32,594
Subscriptions		30,400		760		—			31,160
Software services		60,840		8,777		—			69,617
Maintenance		130,999		15,499		—			146,498
Appraisal services		—		23,228		—			23,228
Hardware and other		5,199		—		1,095			6,294
Intercompany		2,103		—		(2,103	)		—
Total revenues	$	259,735	$	50,664	$	(1,008	)	$	309,391
Depreciation and amortization expense		8,516		650		1,510			10,676
Segment operating income		56,856		9,786		(15,669	)		50,973
Capital expenditures		11,143		137		998			12,278
Segment assets	$	448,015	$	56,389	$	(209,013	)	$	295,391

As of and year ended December 31, 2010

	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses	$	32,757	$	2,156	$	—		$	34,913
Subscriptions		22,975		323		—			23,298
Software services		58,371		9,969		—			68,340
Maintenance		120,764		14,891		—			135,655
Appraisal services		—		20,554		—			20,554
Hardware and other		5,727		6		135			5,868
Intercompany		1,978		—		(1,978	)		—
Total revenues	$	242,572	$	47,899	$	(1,843	)	$	288,628
Depreciation and amortization expense		8,903		683		1,202			10,788
Segment operating income		51,942		8,883		(14,367	)		46,458
Capital expenditures		2,960		350		310			3,620
Segment assets	$	373,432	$	45,957	$	(155,357	)	$	264,032

F-25

As of and year ended December 31, 2009

	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses	$	39,484	$	2,647	$	—		$	42,131
Subscriptions		16,870		311		—			17,181
Software services		70,041		10,364		—			80,405
Maintenance		110,404		14,108		—			124,512
Appraisal services		—		18,740		—			18,740
Hardware and other		6,113		135		1,069			7,317
Intercompany		1,618		—		(1,618	)		—
Total revenues	$	244,530	$	46,305	$	(549	)	$	290,286
Depreciation and amortization expense		8,031		608		858			9,497
Segment operating income		54,825		7,763		(13,688	)		48,900
Capital expenditures		13,361		192		614			14,167
Segment assets	$	220,135	$	25,597	$	24,938		$	270,670

Reconciliation of reportable segment operating income to the Company's consolidated totals:	2011			2010			2009
Total segment operating income	$	50,973		$	46,458		$	48,900
Amortization of acquired software		(1,125	)		(1,592	)		(1,411	)
Amortization of customer and trade name intangibles		(3,331	)		(3,225	)		(2,705	)
Other expense, net		(2,404	)		(1,742	)		(146	)
Income before income taxes	$	44,113		$	39,899		$	44,638