Segment And Related Information

9 Months Ended

Sep. 30, 2013

Segment And Related Information [Abstract]

Segment And Related Information

(9)  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 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, 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, 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 segment, Enterprise Software Solutions (“ESS”).   The ESS segment provides municipal and county governments and schools with software systems 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, 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 September 30, 2013
	Enterprise		Appraisal and Tax
	Software		Software Solutions
	Solutions		and Services		Corporate		Totals
Revenues
Software licenses and royalties	$	10,126	$	369	$	-	$	10,495
Subscriptions		14,537		677		-		15,214
Software services		22,615		2,245		-		24,860
Maintenance		45,182		4,109		-		49,291
Appraisal services		-		5,207		-		5,207
Hardware and other		1,958		-		(4)		1,954
Intercompany		686		-		(686)		-
Total revenues	$	95,104	$	12,607	$	(690)	$	107,021
Segment operating income	$	22,776	$	2,441	$	(5,718)	$	19,499

For the nine months ended September 30, 2013
	Enterprise		Appraisal and Tax
	Software		Software Solutions
	Solutions		and Services		Corporate		Totals
Revenues
Software licenses and royalties	$	27,849	$	1,566	$	-	$	29,415
Subscriptions		40,527		2,023		-		42,550
Software services		63,308		6,098		-		69,406
Maintenance		129,630		12,350		-		141,980
Appraisal services		-		15,854		-		15,854
Hardware and other		4,917		-		1,786		6,703
Intercompany		2,023		-		(2,023)		-
Total revenues	$	268,254	$	37,891	$	(237)	$	305,908
Segment operating income	$	60,930	$	7,071	$	(15,352)	$	52,649

For the three months ended September 30, 2012
	Enterprise		Appraisal and Tax
	Software		Software Solutions
	Solutions		and Services		Corporate		Totals
Revenues
Software licenses and royalties	$	8,576	$	397	$	-	$	8,973
Subscriptions		10,960		375		-		11,335
Software services		20,213		1,886		-		22,099
Maintenance		40,282		4,170		-		44,452
Appraisal services		-		5,594		-		5,594
Hardware and other		1,392		-		-		1,392
Intercompany		559		-		(559)		-
Total revenues	$	81,982	$	12,422	$	(559)	$	93,845
Segment operating income	$	21,851	$	2,517	$	(4,128)	$	20,240

For the nine months ended September 30, 2012
	Enterprise		Appraisal and Tax
	Software		Software Solutions
	Solutions		and Services		Corporate		Totals
Revenues
Software licenses and royalties	$	23,513	$	1,445	$	-	$	24,958
Subscriptions		30,969		887		-		31,856
Software services		56,659		5,707		-		62,366
Maintenance		114,012		12,350		-		126,362
Appraisal services		-		17,047		-		17,047
Hardware and other		3,688		-		1,659		5,347
Intercompany		1,663		-		(1,663)		-
Total revenues	$	230,504	$	37,436	$	(4)	$	267,936
Segment operating income	$	51,101	$	6,893	$	(12,280)	$	45,714

	Three months ended				Nine months ended
Reconciliation of reportable segment operating	September 30,				September 30,
income to the Company's consolidated totals:	2013		2012			2013		2012
Total segment operating income	$	19,499	$	20,240	$	52,649	$	45,714
Amortization of acquired software		(513)		(478)		(1,585)		(1,370)
Amortization of customer and trade name intangibles		(1,129)		(1,103)		(3,388)		(3,186)
Other expense, net		(285)		(849)		(919)		(2,325)
Income before income taxes	$	17,572	$	17,810	$	46,757	$	38,833