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Segment and Related Information
 6 Months Ended
Jun. 30, 2021
Segment Reporting [Abstract]  
Segment and Related Information Segment and Related Information
We provide 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 seven 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 software solutions;
•courts and justice and public safety software solutions;
•data and insights solutions;
•platform technologies solutions including case management and business management processing;
•NIC digital government and payments solutions; and
•appraisal and tax software solutions, land and vital records management software solutions, and property appraisal services.
In accordance with ASC 280-10, Segment Reporting, we report our results in three segments. The financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance software solutions unit; courts and justice and public safety software solutions unit; data and insights solutions; and platform technologies solutions meet the criteria for aggregation and are presented in the Enterprise Software (“ES”) reportable segment. The ES segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: financial management and education, courts and justice, public safety, planning, regulatory and maintenance, data and insights, and platform technologies processes. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property, land and vital records management as well as provides 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. On April 21, 2021, the Company acquired NIC resulting in a new reportable segment, as its operating results meet the criteria of a reportable segment. The operating results of NIC are included with the operating results of the NIC segment from the date of acquisition.
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 acquisitions, 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. Corporate segment operating income 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.
As of January 1, 2021, certain administrative costs related to information technology, which were previously allocated and reported in the ES and A&T segments, were moved to the Corporate segment to reflect changes in the way in which management makes operating decisions, allocates resources, and manages the growth and profitability of the Company. Prior year amounts for all segments have been adjusted to reflect the segment change.
For the three months ended June 30, 2021    
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues    
Software licenses and royalties$15,779 $1,825 $— $— $17,604 
Subscriptions98,407 7,870 93,281 — 199,558 
Software services42,972 4,722 5,643 — 53,337 
Maintenance110,010 9,456 155 — 119,621 
Appraisal services— 6,265 — — 6,265 
Hardware and other4,728 23 — 2,939 7,690 
Intercompany5,605 16 — (5,621)— 
Total revenues$277,501 $30,177 $99,079 $(2,682)$404,075 
Segment operating income$94,561 $8,689 $22,931 $(64,647)$61,534 
For the three months ended June 30, 2020
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$14,683 $2,342 $— $— $17,025 
Subscriptions79,128 6,510 — — 85,638 
Software services38,899 4,755 — — 43,654 
Maintenance107,336 9,424 — — 116,760 
Appraisal services— 4,696 — — 4,696 
Hardware and other3,300 18 — — 3,318 
Intercompany4,533 2 — (4,535)— 
Total revenues$247,879 $27,747 $— $(4,535)$271,091 
Segment operating income$82,080 $7,767 $— $(35,108)$54,739 
For the six months ended June 30, 2021
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$28,826 $3,711 $— $— $32,537 
Subscriptions193,238 15,518 93,281 — 302,037 
Software services85,532 9,802 5,643 — 100,977 
Maintenance219,793 18,785 155 — 238,733 
Appraisal services— 12,730 — — 12,730 
Hardware and other8,854 70 — 2,939 11,863 
Intercompany10,866 31 — (10,897)— 
Total revenues$547,109 $60,647 $99,079 $(7,958)$698,877 
Segment operating income$187,435 $17,948 $22,931 $(115,196)$113,118 
For the six months ended June 30, 2020
Enterprise
Software		Appraisal and TaxNICCorporateTotals
Revenues
Software licenses and royalties$30,634 $5,128 $— $— $35,762 
Subscriptions155,772 11,589 — — 167,361 
Software services83,848 11,939 — — 95,787 
Maintenance212,177 18,948 — — 231,125 
Appraisal services— 10,459 — — 10,459 
Hardware and other7,091 45 — 2 7,138 
Intercompany8,534 20 — (8,554)— 
Total revenues$498,056 $58,128 $— $(8,552)$547,632 
Segment operating income$155,747 $16,309 $— $(70,005)$102,051 
Three Months Ended June 30,Six Months Ended June 30,
Reconciliation of reportable segment operating income to the Company's consolidated totals:2021202020212020
Total segment operating income$61,534 $54,739 $113,118 $102,051 
Amortization of acquired software(11,823)(8,006)(19,787)(16,033)
Amortization of customer and trade name intangibles(11,420)(5,392)(16,832)(10,784)
Other (expense) income including interest expense, net(12,199)470 (12,111)1,460 
Income before income taxes$26,092 $41,811 $64,388 $76,694