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SEGMENT AND RELATED INFORMATION | 12 Months Ended
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Dec. 31, 2021
Segment Reporting [Abstract] |
SEGMENT AND RELATED INFORMATION | SEGMENT AND RELATED INFORMATION We provide integrated information management solutions and services for the public sector. 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, we acquired NIC, resulting in the addition of 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, certain shared services 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 primarily consist of net accounts receivable, prepaid expenses and other current assets and net property and equipment, and capitalized software development costs. Corporate assets primarily 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. The ES segment capital expenditures included $12.8 million in 2021 and $6.6 million in 2020 for the expansion of existing buildings and purchases of buildings. The A&T segment had no capital expenditures in 2021 and $3.3 million in 2020 for the expansion of existing buildings. The NIC segment had no capital expenditures in 2021 for the expansion of existing buildings. 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 year ended December 31, 2021 | Enterprise Software |  | Appraisal and Tax |  | NIC |  | Corporate |  | Totals
Revenues |  |  |  |  |  |  |  |  |
Software licenses and royalties | $ | 68,101 |  |  | $ | 6,351 |  |  | $ | — |  |  | $ | — |  |  | $ | 74,452 |
Subscriptions | 406,494 |  |  | 33,249 |  |  | 344,692 |  |  | — |  |  | 784,435 |
Software services | 167,065 |  |  | 18,661 |  |  | 23,665 |  |  | — |  |  | 209,391 |
Maintenance | 438,726 |  |  | 35,001 |  |  | 560 |  |  | — |  |  | 474,287 |
Appraisal services | — |  |  | 27,788 |  |  | — |  |  | — |  |  | 27,788 |
Hardware and other | 18,766 |  |  | 141 |  |  | — |  |  | 3,027 |  |  | 21,934 |
Intercompany | 22,921 |  |  | 67 |  |  | — |  |  | (22,988) |  |  | — |
Total revenues | $ | 1,122,073 |  |  | $ | 121,258 |  |  | $ | 368,917 |  |  | $ | (19,961) |  |  | $ | 1,592,287 |
Depreciation and amortization expense | 69,728 |  |  | 1,491 |  |  | 38,851 |  |  | 25,554 |  |  | 135,624 |
Segment operating income | 377,984 |  |  | 33,524 |  |  | 82,305 |  |  | (222,628) |  |  | 271,185 |
Capitalized software expenditures | 9,041 |  |  | — |  |  | 6,796 |  |  | 5,856 |  |  | 21,693 |
Capital expenditures | 19,520 |  |  | 988 |  |  | 3,165 |  |  | 10,246 |  |  | 33,919 |
Segment assets | $ | 965,966 |  |  | $ | 230,177 |  |  | $ | 303,146 |  |  | $ | 3,232,872 |  |  | $ | 4,732,161 |
For the year ended December 31, 2020 | Enterprise Software |  | Appraisal and Tax |  | NIC |  | Corporate |  | Totals
Revenues |  |  |  |  |  |  |  |  |
Software licenses and royalties | $ | 64,200 |  |  | $ | 8,964 |  |  | $ | — |  |  | $ | — |  |  | $ | 73,164 |
Subscriptions | 326,284 |  |  | 24,364 |  |  | — |  |  | — |  |  | 350,648 |
Software services | 164,520 |  |  | 21,889 |  |  | — |  |  | — |  |  | 186,409 |
Maintenance | 429,224 |  |  | 38,289 |  |  | — |  |  | — |  |  | 467,513 |
Appraisal services | — |  |  | 21,127 |  |  | — |  |  | — |  |  | 21,127 |
Hardware and other | 17,670 |  |  | 121 |  |  | — |  |  | 11 |  |  | 17,802 |
Intercompany | 19,061 |  |  | 70 |  |  | — |  |  | (19,131) |  |  | — |
Total revenues | $ | 1,020,959 |  |  | $ | 114,824 |  |  | $ | — |  |  | $ | (19,120) |  |  | $ | 1,116,663 |
Depreciation and amortization expense | 67,411 |  |  | 1,055 |  |  | — |  |  | 13,191 |  |  | 81,657 |
Segment operating income | 337,627 |  |  | 33,875 |  |  | — |  |  | (144,952) |  |  | 226,550 |
Capitalized software expenditures | 5,776 |  |  | — |  |  | — |  |  | — |  |  | 5,776 |
Capital expenditures | 11,099 |  |  | 3,823 |  |  | — |  |  | 6,826 |  |  | 21,748 |
Segment assets | $ | 847,672 |  |  | $ | 94,149 |  |  | — |  |  | $ | 1,665,453 |  |  | $ | 2,607,274 |
For the year ended December 31, 2019 | Enterprise Software |  | Appraisal and Tax |  | NIC |  | Corporate |  | Totals
Revenues |  |  |  |  |  |  |  |  |
Software licenses and royalties | $ | 90,808 |  |  | $ | 9,397 |  |  | $ | — |  |  | $ | — |  |  | $ | 100,205 |
Subscriptions | 279,282 |  |  | 17,070 |  |  | — |  |  | — |  |  | 296,352 |
Software services | 179,865 |  |  | 33,196 |  |  | — |  |  | — |  |  | 213,061 |
Maintenance | 393,521 |  |  | 36,797 |  |  | — |  |  | — |  |  | 430,318 |
Appraisal services | — |  |  | 23,479 |  |  | — |  |  | — |  |  | 23,479 |
Hardware and other | 16,553 |  |  | 203 |  |  | — |  |  | 6,256 |  |  | 23,012 |
Intercompany | 15,290 |  |  | 206 |  |  | — |  |  | (15,496) |  |  | — |
Total revenues | $ | 975,319 |  |  | $ | 120,348 |  |  | $ | — |  |  | $ | (9,240) |  |  | $ | 1,086,427 |
Depreciation and amortization expense | 64,245 |  |  | 970 |  |  | — |  |  | 11,457 |  |  | 76,672 |
Segment operating income | 298,305 |  |  | 33,730 |  |  | — |  |  | (123,581) |  |  | 208,454 |
Capitalized software expenditures | 4,804 |  |  | — |  |  | — |  |  | — |  |  | 4,804 |
Capital expenditures | 19,283 |  |  | 8,436 |  |  | — |  |  | 10,379 |  |  | 38,098 |
Segment assets | $ | 833,203 |  |  | $ | 91,343 |  |  | — |  |  | $ | 1,267,068 |  |  | $ | 2,191,614 |
Reconciliation of reportable segment operating |  | Years Ended December 31,
income to the Company's consolidated totals: |  | 2021 |  | 2020 |  | 2019
Total segment operating income |  | $ | 271,185 |  |  | $ | 226,550 |  |  | $ | 208,454 |
Amortization of acquired software |  | (45,601) |  |  | (31,962) |  |  | (30,642) |
Amortization of customer and trade name intangibles |  | (44,849) |  |  | (21,662) |  |  | (21,445) |
Interest expense |  | (23,298) |  |  | (1,013) |  |  | (2,027) |
Other income, net |  | 1,544 |  |  | 3,129 |  |  | 5,498 |
Income before income taxes |  | $ | 158,981 |  |  | $ | 175,042 |  |  | $ | 159,838 |

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=123359005&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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