Segment And Related Information

12 Months Ended

Dec. 31, 2012

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, and land and vital records 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 and land and vital records 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 for our business units as income before noncash amortization of intangible assets associated with their acquisition, 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 and net property and equipment.  Corporate assets consist of cash and investments, prepaid insurance, intangibles associated with acquisitions, deferred income taxes and net property and equipment mainly related to unallocated information and technology assets.  Segment assets reported in 2011 and 2010 have been reclassified to conform to current year presentation. 

ESS segment capital expenditures in 2012 and 2011 included $3.0 million and $6.6 million, respectively for the construction of a new building and purchase of an existing building and land in connection with plans to consolidate workforces and support long-term growth.  ATSS segment capital expenditures in 2012 included $2.6 million for the purchase of a building and land to support long-term growth.

As of and year ended December 31, 2012
	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate		Totals
Revenues
Software licenses	$	31,304	$	1,868	$	-	$	33,172
Subscriptions		43,319		1,299		-		44,618
Software services		76,103		7,305		-		83,408
Maintenance		155,290		16,561		-		171,851
Appraisal services		-		22,543		-		22,543
Hardware and other		6,053		-		1,659		7,712
Intercompany		2,249		-		(2,249)		-
Total revenues	$	314,318	$	49,576	$	(590)	$	363,304
Depreciation and amortization expense		9,929		958		1,824		12,711
Segment operating income		71,135		8,498		(16,889)		62,744
Capital expenditures		5,469		3,382		1,865		10,716
Segment assets	$	134,220	$	18,464	$	185,631	$	338,315

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	$	119,595	$	20,535	$	155,261	$	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	$	100,508	$	23,929	$	139,595	$	264,032

Reconciliation of reportable segment operating income to the Company's consolidated totals:	2012		2011		2010
Total segment operating income	$	62,744	$	50,973	$	46,458
Amortization of acquired software		(1,888)		(1,125)		(1,592)
Amortization of customer and trade name intangibles		(4,279)		(3,331)		(3,225)
Other expense, net		(2,709)		(2,404)		(1,742)
Income before income taxes	$	53,868	$	44,113	$	39,899