Segment and Related Information

6 Months Ended

Jun. 30, 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 non-cash 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 June 30, 2016
	Enterprise Software Solutions		Appraisaland Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses and royalties	$	16,439	$	1,112	$	—		$	17,551
Subscriptions		32,316		1,652		—			33,968
Software services		42,159		3,881		—			46,040
Maintenance		74,110		4,633		—			78,743
Appraisal services		—		6,984		—			6,984
Hardware and other		2,942		—		2,744			5,686
Intercompany		1,612		—		(1,612	)		—
Total revenues	$	169,578	$	18,262	$	1,132		$	188,972
Segment operating income	$	46,109	$	3,990	$	(10,051	)	$	40,048
For the six months ended June 30, 2016
	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses and royalties	$	32,093	$	2,308	$	—		$	34,401
Subscriptions		64,301		3,756		—			68,057
Software services		80,763		7,707		—			88,470
Maintenance		145,510		9,265		—			154,775
Appraisal services		—		13,542		—			13,542
Hardware and other		5,977		16		3,027			9,020
Intercompany		2,772		—		(2,772	)		—
Total revenues	$	331,416	$	36,594	$	255		$	368,265
Segment operating income	$	86,778	$	8,821	$	(18,689	)	$	76,910

For the three months ended June 30, 2015
	Enterprise Software Solutions		Appraisaland Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses and royalties	$	13,556	$	1,030	$	—		$	14,586
Subscriptions		25,733		1,216		—			26,949
Software services		31,826		2,737		—			34,563
Maintenance		54,992		4,471		—			59,463
Appraisal services		—		6,691		—			6,691
Hardware and other		1,330		11		2,702			4,043
Intercompany		979		—		(979	)		—
Total revenues	$	128,416	$	16,156	$	1,723		$	146,295
Segment operating income	$	34,408	$	3,903	$	(7,108	)	$	31,203
For the six months ended June 30, 2015
	Enterprise Software Solutions		Appraisal and Tax Software Solutions and Services		Corporate			Totals
Revenues
Software licenses and royalties	$	25,883	$	3,003	$	—		$	28,886
Subscriptions		50,042		2,195		—			52,237
Software services		60,994		4,373		—			65,367
Maintenance		108,007		8,804		—			116,811
Appraisal services		—		12,780		—			12,780
Hardware and other		2,468		11		2,701			5,180
Intercompany		1,905		—		(1,905	)		—
Total revenues	$	249,299	$	31,166	$	796		$	281,261
Segment operating income	$	66,660	$	6,971	$	(13,642	)	$	59,989

	Three months ended June 30,						Six months ended June 30,
Reconciliation of reportable segment operating income to the Company's consolidated totals:	2016			2015			2016			2015
Total segment operating income	$	40,048		$	31,203		$	76,910		$	59,989
Amortization of acquired software		(5,680	)		(456	)		(11,139	)		(912	)
Amortization of customer and trade name intangibles		(3,453	)		(1,151	)		(6,815	)		(2,303	)
Other (expense) income, net		(720	)		185			(1,187	)		366
Income before income taxes	$	30,195		$	29,781		$	57,769		$	57,140