Segment and Related Information

3 Months Ended

Mar. 31, 2016

Segment Reporting [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, 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, 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.

For the three months ended March 31, 2016
	Enterprise Software Solutions		Appraisaland Tax Software Solutions and Services		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
For the three months ended March 31, 2015
	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses and royalties	$	12,327	$	1,973	$	—		$	14,300
Subscriptions		24,309		979		—			25,288
Software services		29,168		1,636		—			30,804
Maintenance		53,014		4,334		—			57,348
Appraisal services		—		6,089		—			6,089
Hardware and other		1,138		—		(1	)		1,137
Intercompany		926		—		(926	)		—
Total revenues	$	120,882	$	15,011	$	(927	)	$	134,966
Segment operating income	$	32,254	$	3,067	$	(6,535	)	$	28,786

	Three months ended March 31,
Reconciliation of reportable segment operating income to the Company's consolidated totals:	2016			2015
Total segment operating income	$	36,862		$	28,786
Amortization of acquired software		(5,459	)		(456	)
Amortization of customer and trade name intangibles		(3,362	)		(1,152	)
Other income (expense), net		(467	)		181
Income before income taxes	$	27,574		$	27,359