Nic (EGOV) 10-K 23 Feb 16 2015 FY Annual report Financial data

Document and Entity Information

Document and Entity Information - USD ($)	12 Months Ended
	Dec. 31, 2015	Feb. 02, 2016	Jun. 30, 2015
Document Information [Line Items]
Document Type	10-K
Amendment Flag	false
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	FY
Trading Symbol	EGOV
Entity Registrant Name	NIC INC
Entity Central Index Key	1,065,332
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		65,652,223
Entity Public Float			$ 1,126,290,996

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Current assets:
Cash	$ 98,388,249	$ 87,983,398
Cash restricted for payment of dividend	36,455,955
Trade accounts receivable, net (Note 2)	80,362,227	57,467,548
Prepaid expenses & other current assets	12,583,536	11,501,338
Total current assets	227,789,967	156,952,284
Property and equipment, net	9,332,791	12,247,240
Intangible assets, net	2,266,675	2,393,704
Deferred income taxes, net (Note 2)	1,421,453
Other assets	426,484	446,051
Total assets	241,237,370	172,039,279
Current liabilities:
Accounts payable	61,132,765	41,402,523
Accrued expenses	20,985,853	19,750,737
Dividend payable	36,455,955
Other current liabilities	2,597,602	2,902,879
Total current liabilities	121,172,175	64,056,139
Deferred income taxes, net (Note 2)		496,542
Other long-term liabilities	4,259,175	3,349,820
Total liabilities	$ 125,431,350	$ 67,902,501
Commitments and contingencies (Notes 2, 3, 6, 7 and 9)
Stockholders' equity:
Common stock, $0.0001 par, 200,000,000 shares authorized, 65,636,707 and 65,303,205 shares issued and outstanding	$ 6,564	$ 6,531
Additional paid-in capital	100,929,461	94,689,650
Retained earnings	14,869,995	9,440,597
Total stockholders' equity	115,806,020	104,136,778
Total liabilities and stockholders' equity	$ 241,237,370	$ 172,039,279

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Dec. 31, 2015	Dec. 31, 2014
Common stock, par	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	65,636,707	65,303,205
Common stock, shares outstanding	65,636,707	65,303,205

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Portal revenues	$ 66,435,417	$ 70,122,162	$ 71,030,846	$ 65,913,898	$ 62,148,395	$ 65,304,664	$ 66,807,907	$ 61,482,452	$ 273,502,323	$ 255,743,418	$ 235,183,005
Software & services revenues	4,723,198	4,924,120	4,781,930	4,444,725	3,869,507	4,222,534	4,345,879	3,915,233	18,873,973	16,353,153	14,095,660
Total revenues	71,158,615	75,046,282	75,812,776	70,358,623	66,017,902	69,527,198	71,153,786	65,397,685	292,376,296	272,096,571	249,278,665
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization (Note 2)	42,798,666	41,057,942	42,815,102	41,494,301	39,984,873	39,090,865	39,550,094	37,559,503	168,166,011	156,185,335	147,007,246
Cost of software & services revenues, exclusive of depreciation & amortization	1,456,122	1,364,726	1,321,259	1,289,860	1,258,356	1,287,083	1,244,843	993,324	5,431,967	4,783,606	4,498,233
Selling & administrative	11,165,707	10,576,445	10,818,680	10,537,491	9,490,401	10,396,876	9,840,579	9,208,685	43,098,323	38,936,541	36,881,346
Depreciation & amortization	1,673,405	2,116,319	2,303,571	2,292,118	2,357,854	2,292,382	2,277,048	2,249,734	8,385,413	9,177,018	8,333,089
Total operating expenses	57,093,900	55,115,432	57,258,612	55,613,770	53,091,484	53,067,206	52,912,564	50,011,246	225,081,714	209,082,500	196,719,914
Operating income (loss) before income taxes									67,294,582	63,014,071	52,558,751
Income tax provision	5,080,726	7,180,660	7,250,724	5,803,949	4,634,174	6,098,567	7,213,057	6,010,054	25,316,059	23,955,852	20,520,660
Net income	$ 8,983,989	$ 12,750,190	$ 11,303,440	$ 8,940,904	$ 8,292,244	$ 10,361,425	$ 11,028,165	$ 9,376,385	$ 41,978,523	$ 39,058,219	$ 32,038,091
Basic net income per share (Note 2)	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49
Diluted net income per share (Note 2)	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49
Weighted average shares outstanding:
Basic	65,621,684	65,617,812	65,587,822	65,387,427	65,301,797	65,287,702	65,244,575	65,056,725	65,554,655	65,223,549	64,888,978
Diluted	65,715,951	65,636,436	65,587,822	65,387,427	65,363,104	65,287,702	65,244,575	65,056,725	65,639,682	65,277,758	64,954,366

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)	Total	Common Stock	Additional Paid-in Capital	Retained Earnings
Beginning Balance (in shares) at Dec. 31, 2012		64,628,105
Beginning Balance at Dec. 31, 2012	$ 78,924,370	$ 6,463	$ 84,308,249	$ (5,390,342)
Net income	32,038,091			32,038,091
Dividends declared	(22,982,447)			(22,982,447)
Dividend equivalents on performance-based restricted stock awards	(132,215)			(132,215)
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards	49,909		49,909
Restricted stock vestings (in shares)		401,794
Restricted stock vestings	82,620	$ 40	82,580
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares)		(124,890)
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings	(2,276,163)	$ (12)	(2,276,151)
Stock-based compensation	4,025,960		4,025,960
Tax deductions relating to stock-based compensation	1,302,005		1,302,005
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards	(314)		(314)
Issuance of common stock under employee stock purchase plan (in shares)		87,578
Issuance of common stock under employee stock purchase plan	904,471	$ 9	904,462
Ending Balance at Dec. 31, 2013	91,936,287	$ 6,500	88,396,700	3,533,087
Ending Balance (in shares) at Dec. 31, 2013		64,992,587
Net income	39,058,219			39,058,219
Dividends declared	(32,977,016)			(32,977,016)
Dividend equivalents on performance-based restricted stock awards	(173,693)			(173,693)
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards	35,496		35,496
Restricted stock vestings (in shares)		357,960
Restricted stock vestings	72,519	$ 36	72,483
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares)		(115,443)
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings	(2,276,247)	$ (12)	(2,276,235)
Stock-based compensation	6,103,898		6,103,898
Tax deductions relating to stock-based compensation	1,184,860		1,184,860
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards	65,678		65,678
Issuance of common stock under employee stock purchase plan (in shares)		68,101
Issuance of common stock under employee stock purchase plan	1,106,777	$ 7	1,106,770
Ending Balance at Dec. 31, 2014	$ 104,136,778	$ 6,531	94,689,650	9,440,597
Ending Balance (in shares) at Dec. 31, 2014	65,303,205	65,303,205
Net income	$ 41,978,523			41,978,523
Dividends declared	(36,455,955)			(36,455,955)
Dividend equivalents on performance-based restricted stock awards	(158,652)			(158,652)
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards	82,423		16,941	65,482
Restricted stock vestings (in shares)		364,380
Restricted stock vestings	73,941	$ 36	73,905
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares)		(106,206)
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings	(1,838,173)	$ (11)	(1,838,162)
Stock-based compensation	6,440,841		6,440,841
Tax deductions relating to stock-based compensation	412,617		412,617
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards	2,288		2,288
Issuance of common stock under employee stock purchase plan (in shares)		75,328
Issuance of common stock under employee stock purchase plan	1,131,389	$ 8	1,131,381
Ending Balance at Dec. 31, 2015	$ 115,806,020	$ 6,564	$ 100,929,461	$ 14,869,995
Ending Balance (in shares) at Dec. 31, 2015	65,636,707	65,636,707

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Cash flows from operating activities:
Net income	$ 41,978,523	$ 39,058,219	$ 32,038,091
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation & amortization	8,385,413	9,177,018	8,333,089
Provision for losses on accounts receivable (Note 2)	289,666	414,042	5,229,277
Stock-based compensation expense	6,440,841	6,103,898	4,025,960
Deferred income taxes	(3,814,774)	(2,461,240)	(1,069,988)
Loss on disposal of property and equipment	98,181	174,497	51,301
Changes in operating assets and liabilities:
(Increase) in trade accounts receivable, net	(23,184,345)	(5,063,238)	(2,786,606)
(Increase) decrease in prepaid expenses & other current assets	814,581	1,631,159	(927,644)
(Increase) decrease in other assets	19,567	(156,083)	(37,203)
Increase (decrease) in accounts payable	19,730,242	2,326,103	(4,502,022)
(Decrease) in accrued expenses	(603,735)	(3,450,041)	(586,798)
Increase (decrease) in other current liabilities	(305,277)	2,627,655	222,786
Increase in other long-term liabilities	909,355	900,344	863,096
Net cash provided by operating activities	50,758,238	51,282,333	40,853,339
Cash flows from investing activities:
Purchases of property and equipment	(4,453,495)	(5,380,800)	(6,717,034)
Proceeds from sale of property and equipment	3,600	400	16,153
Capitalized internal use software development costs	(991,543)	(1,478,623)	(1,489,286)
Net cash used in investing activities	(5,441,438)	(6,859,023)	(8,190,167)
Cash flows from financing activities:
Cash dividends on common stock		(32,977,016)
Cash restricted for payment of dividend	(36,455,955)		(22,982,447)
Proceeds from employee common stock purchases	1,131,389	1,106,777	904,471
Tax deductions related to stock-based compensation	412,617	1,184,860	1,302,005
Net cash used in financing activities	(34,911,949)	(30,685,379)	(20,775,971)
Net increase in cash and cash equivalents	10,404,851	13,737,931	11,887,201
Cash and cash equivalents, beginning of period	87,983,398	74,245,467	62,358,266
Cash and cash equivalents, end of period	98,388,249	87,983,398	74,245,467
Non-cash investing activities:
Capital expenditures accrued but not yet paid	678	102,088	185,001
Cash payments:
Income taxes paid	$ 27,222,391	25,059,316	$ 15,939,214
Cash dividends on common stock previously restricted for payment of dividend		$ 22,982,447

THE COMPANY

THE COMPANY	12 Months Ended
	Dec. 31, 2015
THE COMPANY	1. THE COMPANY NIC Inc. (the “Company” or “NIC”) is a leading provider of digital government services that help governments use technology to reduce internal costs, increase efficiencies and provide a higher level of service to businesses and citizens. The Company accomplishes this currently through two channels: its primary outsourced portal businesses and its software & services businesses. In its primary outsourced portal businesses, the Company generally designs, builds, and operates Internet-based portals on an enterprise-wide basis on behalf of state and local governments desiring to provide access to government information and to complete secure government-based transactions through multiple online channels, including mobile devices. These portals consist of websites and applications the Company has built that allow businesses and citizens to access government information online and complete transactions, such as applying for a permit, retrieving government records, or filing a government-mandated form or report. Operating under multiple-year contracts (see Note 3), NIC markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting users to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company typically manages operations for each contractual relationship through separate local subsidiaries that operate as decentralized businesses with a high degree of autonomy. NIC’s self-funded business model allows the Company to generate revenues by sharing in the fees the Company collects from online transactions. The Company’s government partners benefit by reducing their financial and technological risks, increasing their operational efficiencies, and gaining a centralized, customer-focused presence on the Internet, while businesses and citizens receive a faster, more convenient, and more cost-effective means to interact with governments. The Company is typically responsible for funding the up-front investments and ongoing operations and maintenance costs of the outsourced government portals. The Company’s software & services businesses primarily include its subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies (see Note 3).

SUMMARY OF SIGNIFICANT ACCOUNTI

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
	Dec. 31, 2015
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating outsourced portals on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, gains and losses on disposal of assets and all other costs associated with the provision of dedicated client service such as dedicated facilities. Basis of consolidation The accompanying consolidated financial statements consolidate the Company together with all of its direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Cash and cash equivalents Cash and cash equivalents primarily include cash on hand in the form of bank deposits. For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all non-restricted highly liquid instruments purchased with an original maturity of one month or less to be cash equivalents. Cash restricted for payment of dividend Restricted cash represents cash which is restricted for use by NIC. On November 2, 2015, the Company’s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, totaling approximately $36.5 million, was paid on January 4, 2016 out of the Company’s available cash. Cash used to pay the special dividend was classified as restricted at December 31, 2015. Trade accounts receivable The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. As previously disclosed in prior filings with the SEC, in September 2013, the Company elected not to pursue collection of outstanding accounts receivable from the Commonwealth of Pennsylvania (the “Commonwealth”) and recorded a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) in the third quarter of 2013 to write-off amounts due from the Commonwealth through June 30, 2013. The charge is included in cost of portal revenues in the Company’s consolidated statements of income for the year ended December 31, 2013. The Company continued to provide eGovernment solutions under the contract with the Commonwealth, but did not recognize revenues under the contract subsequent to June 30, 2013 until the contract became self-funded in October 2013. The Company’s allowance for doubtful accounts at both December 31, 2015 and 2014 was approximately $0.5 million. Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 8 years for furniture and fixtures, 3-10 years for equipment, 3-5 years for purchased software, and the lesser of the term of the lease or 5 years for leasehold improvements. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in results of operations for the period. The cost of maintenance and repairs is charged to expense as incurred. Significant betterments are capitalized. The Company periodically evaluates the carrying value of property and equipment to be held and used when events and circumstances warrant such a review. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flow from the asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined primarily using the anticipated cash flow discounted at a rate commensurate with the risk involved. Losses on assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. The Company did not record any material impairment losses on property and equipment during the periods presented. Software development costs and intangible assets The Company expenses as incurred all employee costs to start up, operate, and maintain government portals on an outsourced basis as costs of performance under the contracts because, after the completion of a defined contract term, the government entity with which the Company contracts typically receives a perpetual, royalty-free license to the applications the Company developed, excluding applications provided on a SaaS basis. Such costs are included in cost of portal revenues in the consolidated statements of income. The Company accounts for the costs of developing internal use computer software in accordance with authoritative accounting guidance for internal use computer software, whereby certain costs of developing internal use computer software are capitalized and amortized over their estimated useful life. For internal use computer software, the estimated economic life is typically 36 months from the date the software is placed in production. At December 31, 2015 and 2014, such costs are included in intangible assets in the consolidated balance sheets. The Company carries intangible assets at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over estimated economic lives of the respective assets. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any material impairment losses on intangible assets during the periods presented. Accrued expenses As of each balance sheet date, the Company estimates expenses which have been incurred but not yet paid or for which invoices have not yet been received. Significant components of accrued expenses consist primarily of employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, payment processing fees, and miscellaneous other accruals. Revenue recognition Portal revenues The Company recognizes revenue from providing outsourced digital government services (primarily transaction-based information access fees and filing fees) net of the transaction fees due to the government when the services are provided at the time of the transactions. The fees that the Company must remit to state agencies for data access and other statutory fees are accrued as accounts payable when the services are provided at the time of the transactions. The Company must remit a certain amount or percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. Revenue from service contracts to provide portal consulting, application development, and management services to governments is recognized as the services are provided at rates provided for in the contract. Amounts received prior to providing services are recorded as unearned revenue. At each balance sheet date, the Company makes a determination as to the portion of unearned revenue that will be earned within one year and records that amount in other current liabilities in the consolidated balance sheets. The remainder, if any, is recorded in other long-term liabilities. Unearned revenues at December 31, 2015 and 2014 were approximately $0.9 million and $1.3 million, respectively, and were recorded in other current liabilities in the consolidated balance sheets. Software & services revenues The Company’s software & services revenues primarily include revenues from subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The Company’s subsidiary, NIC Federal, LLC (“NIC Federal”) currently earns a significant portion of its revenues from its contract with the Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a self-funded, transaction-based business model. NIC Federal recognizes revenue from its contract with the FMCSA (primarily transaction-based information access fees) when the services are provided at the time of the transactions. NIC Federal also earns a portion of its revenues from fixed fee and time and materials application development and outsourced maintenance contracts with other government agencies and recognizes revenues as the services are provided. Stock-based compensation The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award, and recognizes an expense over the employee’s requisite service period (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures (See Note 10). Income taxes The Company, along with its wholly owned subsidiaries, files a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company does not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable, based on its technical merits. If the recognition threshold is met, the Company recognizes a tax benefit based upon the largest amount of the tax benefit that is greater than 50% likely to be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income. Fair value of financial instruments The carrying values of the Company’s accounts receivable and accounts payable approximate fair value. Comprehensive income The Company has no components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is the same as its net income for all periods presented. Earnings per share Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. The two-class method is an earnings allocation formula that treats a participating security as having rights to undistributed earnings that would otherwise have been available to common stockholders. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered participating securities. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled approximately 0.6 million, 0.6 million and 0.7 million, respectively, at December 31, 2015, 2014 and 2013. Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: December 31, 2015 2014 2013 Numerator: Net income $ 41,978,523 $ 39,058,219 $ 32,038,091 Less: Income allocated to participating securities (384,246 ) (368,668 ) (325,182 ) Net income available to common stockholders $ 41,594,277 $ 38,689,551 $ 31,712,909 Denominator: Weighted average shares - basic 65,554,655 65,223,549 64,888,978 Performance-based restricted stock awards 85,027 54,209 65,388 Weighted average shares - diluted 65,639,682 65,277,758 64,954,366 Basic net income per share: Net income $ 0.63 $ 0.59 $ 0.49 Diluted net income per share: Net income $ 0.63 $ 0.59 $ 0.49 Concentration of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At December 31, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.2 million, and approximately $88.2 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable. Segment reporting The Company reports segment information in accordance with authoritative accounting guidance for segment disclosures based upon the “management” approach, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company’s segments. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers (See Note 11). Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Recently adopted accounting pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Balance Sheet Classification of Deferred Taxes, to simplify the financial statement presentation of deferred taxes in the balance sheet. The standard requires that all deferred tax assets and liabilities be classified as noncurrent. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period, and early adoption is permitted as of the beginning of any interim or annual reporting period. The standard may be adopted either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company adopted the standard on a retrospective basis effective for the year ended December 31, 2015. The adoption of the standard resulted in a decrease in current net deferred tax assets of approximately $1.0 million and a corresponding decrease in noncurrent net deferred tax liabilities in the Company’s consolidated balance sheet at December 31, 2014. Recently issued accounting pronouncements In May 2014, the FASB issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by the FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and thereby improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements.

OUTSOURCED GOVERNMENT CONTRACTS

OUTSOURCED GOVERNMENT CONTRACTS	12 Months Ended
	Dec. 31, 2015
OUTSOURCED GOVERNMENT CONTRACTS	3. OUTSOURCED GOVERNMENT CONTRACTS Outsourced portal contracts The Company’s outsourced government portal contracts generally have an initial multi-year term with provisions for renewals for various periods at the option of the government. The Company’s primary business obligation under these contracts is generally to design, build, and operate Internet-based portals on an enterprise-wide basis on behalf of governments desiring to provide access to government information and to complete government-based transactions online. NIC typically markets the services and solicits users to complete government-based transactions and to enter into subscriber contracts permitting the user to access the portal and the government information contained therein in exchange for transactional and/or subscription user fees. The Company enters into separate agreements with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These agreements preliminarily establish the pricing of the online transactions and data access services the Company provides and the division of revenues between the Company and the government agency. The government oversight authority must approve prices and revenue sharing agreements. The Company has limited control over the level of fees it is permitted to retain. Any changes made to the amount or percentage of fees retained by NIC, or to the amounts charged for the services offered, could materially affect the profitability of the respective contract. The Company is typically responsible for funding the up-front investments and ongoing operations and maintenance costs of the government portals, and generally owns all of the intellectual property in connection with the applications developed under these contracts. After completion of a defined contract term, the government partner typically receives a perpetual, royalty-free license to use the software only in its own portal. However, certain customer management, billing and payment processing software applications that the Company has developed and standardized centrally and that are utilized by the Company’s portal businesses, are being provided to a number of government partners on a software-as-a-service (“SaaS”) basis, and thus would not be included in any royalty-free license. If the Company’s contract is not renewed after a defined term or if its contract is terminated by a government partner for cause, the government agency would be entitled to take over the portal in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. Any renewal of these contracts beyond the initial term by the government is optional and a government may terminate its contract prior to the expiration date if the Company breaches a material contractual obligation and fails to cure such breach within a specified period or upon the occurrence of other events or circumstances specified in the contract. In addition, 18 contracts under which the Company provides outsourced portal services, software development and digital government services can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 64% of the Company’s total consolidated revenues for the year ended December 31, 2015. In the event that any of these contracts is terminated without cause, the terms of the respective contract may require the government to pay the Company a fee in order to continue to use the Company’s software in its portal. In addition, the loss of one or more of the Company’s larger state portal partners, such as Alabama, Arkansas, Colorado, Indiana, Kentucky, New Jersey, Pennsylvania, South Carolina, Tennessee, Texas, or Utah, as a result of the expiration, termination or failure to renew the respective contract, if such partner is not replaced, could significantly reduce the Company’s revenues and profitability. See the discussion below under “Expiring Contracts” regarding the expiration of the Company’s contracts with the states of Arizona and Delaware. Under a typical portal contract, the Company is required to fully indemnify its government clients against claims that the Company’s services infringe upon the intellectual property rights of others and against claims arising from the Company’s performance or the performance of the Company’s subcontractors under the contract. At December 31, 2015, the Company was bound by performance bond commitments totaling approximately $6.1 million on certain outsourced portal contracts. The Company has never had any defaults resulting in draws on performance bonds (See Note 6). The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (Renewal Options Through) Connecticut Interactive, LLC www.ct.gov (Connecticut) 2014 1/9/2017 (1/9/2020) Wisconsin Interactive Network, LLC www.wisconsin.gov (Wisconsin) 2013 5/13/2018 (5/13/2023) Pennsylvania Interactive, LLC www.pa.gov (Pennsylvania) 2012 11/30/2017 (11/30/2022) NICUSA, OR Division www.oregon.gov (Oregon) 2011 11/22/2021 NICUSA, MD Division www.maryland.gov (Maryland) 2011 8/10/2017 (8/10/2019) Mississippi Interactive, LLC www.ms.gov (Mississippi) 2011 12/31/2017 (12/31/2021) New Jersey Interactive, LLC www.nj.gov (New Jersey) 2009 5/1/2020 (5/1/2022) Texas NICUSA, LLC www.Texas.gov (Texas) 2009 8/31/2018 West Virginia Interactive, LLC www.WV.gov (West Virginia) 2007 3/31/2016 Vermont Information Consortium, LLC www.Vermont.gov (Vermont) 2006 6/8/2016 (6/8/2019) Colorado Interactive, LLC www.Colorado.gov (Colorado) 2005 4/30/2019 (4/30/2023) South Carolina Interactive, LLC www.SC.gov (South Carolina) 2005 7/15/2019 (7/15/2021) Kentucky Interactive, LLC www.Kentucky.gov (Kentucky) 2003 8/31/2016 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/1/2016 (3/1/2017) Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2016 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2017 (12/31/2020) NICUSA, TN Division www.TN.gov (Tennessee) 2000 3/31/2017 Hawaii Information Consortium, LLC www.eHawaii.gov (Hawaii) 2000 1/3/2019 (3-year renewal options) Idaho Information Consortium, LLC www.Idaho.gov (Idaho) 2000 6/30/2017 Utah Interactive, LLC www.Utah.gov (Utah) 1999 6/5/2019 Maine Information Network, LLC www.Maine.gov (Maine) 1999 7/1/2018 Arkansas Information Consortium, LLC www.Arkansas.gov (Arkansas) 1997 6/30/2018 Iowa Interactive, LLC www.Iowa.gov (Iowa) 1997 6/30/2016 (6/30/2020) Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2016 Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2021 (annual 1-year renewal options) During the first quarter of 2015, the Company received two-year contract extensions from the states of Montana and Idaho. In addition, the Company executed one-year contract extensions with the states of Alabama and Tennessee. During the second quarter of 2015, the Company signed a new one-year contract with the state of Oklahoma, which includes four one-year renewal options. In addition, the Company was awarded a new five-year contract with the state of New Jersey, which includes two one-year renewal options. The Company also executed a three-year contract extension with the state of Utah. During the third quarter of 2015, the Company executed one-year contract extensions with the Commonwealth of Kentucky and the state of Maryland. During the fourth quarter of 2015, the Company executed a two-year contract extension with the state of Maine and a one-year contract extension with the state of Texas. In addition, the Company signed a new three-year contract with the state of Nebraska, which includes two one-year renewal options. The Company also executed a three-year contract extension with the state of Hawaii and a two-year contract extension with the state of Mississippi. Other outsourced state contracts During the third quarter of 2014, the Company’s subsidiary, Louisiana Interactive, LLC, signed a master contract with the state of Louisiana Division of Administration, Office of Technology Services (“Louisiana Division”) that creates a framework to provide certain digital government services for a pilot period. The pilot period commenced during the first quarter of 2015 and the Company anticipates it will conclude within approximately 18 months after the commencement of the pilot period. Subsequent to the pilot period, the Louisiana Division has the option to receive enterprise-wide eGovernment solutions pursuant to the master contract. The Company’s subsidiary, New Mexico Interactive, LLC, has a contract to manage digital government services for the New Mexico Motor Vehicle Division and its parent, the New Mexico Taxation and Revenue Department. The current contract runs through June 30, 2016 and includes two one-year renewal options. During the third quarter of 2015, the Company’s subsidiary, Virginia Interactive, LLC (“VI”) extended its agreement with the Office of the Executive Secretary of the Supreme Court of Virginia to provide digital government services through August 31, 2016. The agreement includes seven one-year renewal options. During the third quarter of 2015, VI extended its agreement with the Virginia Department of Game and Inland Fisheries (“DGIF”) to provide digital government services through August 31, 2016. During the fourth quarter of 2015, DGIF informed VI it does not intend to renew its contract with VI when the contract term expires on August 31, 2016. VI will provide transition services as required by the contract through the August 31, 2016 expiration date of the contract. The Company does not believe the expiration of its contract with DGIF will have a material impact on the Company’s consolidated results of operations, cash flows or financial condition. Outsourced federal contracts NIC Federal has a contract with the FMCSA to develop and manage the FMCSA’s Pre-Employment Screening Program for motor carriers nationwide, using the self-funded, transaction-based business model. During the third quarter of 2015, the Company signed a new one-year contract with the FMCSA that runs through August 31, 2016, which includes two one-year renewal options. Any renewal of the contract with the FMCSA beyond the current term is at the option of the FMCSA and the contract can be terminated by the FMCSA without cause on a specified period of notice. The loss of the contract as a result of the expiration, termination or failure to renew the contract, if not replaced, could significantly reduce the Company’s revenues and profitability. In addition, the Company has limited control over the level of fees it is permitted to retain under the contract with the FMCSA. Any changes made to the amount or percentage of fees retained by the Company, or to the amounts charged for the services offered, could materially affect the profitability of this contract. Expiring contracts As of December 31, 2015, there were 10 contracts under which the Company provides outsourced portal services, software development and digital government services that have expiration dates within the 12-month period following December 31, 2015. Collectively, revenues generated from these contracts represented approximately 22% of the Company’s total consolidated revenues for the year ended December 31, 2015. As described above, if a contract is not renewed after a defined term, the government partner would be entitled to take over the portal in place, and NIC would have no future revenue from, or obligation to, such former government partner, except as otherwise provided in the contract. During the first quarter of 2013, the Company’s subsidiary, NICUSA, Inc. (“NICUSA”), chose not to respond to a request for proposal issued by the state of Arizona for a new contract. NICUSA provided transition services as required by the contract through the March 26, 2014 final expiration date of the contract. The costs incurred in transitioning out of NICUSA’s contract with the state of Arizona, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the years ended December 31, 2014 and 2013 revenues from the legacy Arizona portal contract were approximately $0.8 million and $3.7 million, respectively. The contract under which the Company’s subsidiary, Delaware Interactive, LLC (“DI”), managed the state of Delaware’s official government portal expired on March 31, 2015. The primary revenue source for DI under the contract was an annual portal management fee paid to DI by the state. During the second quarter of 2014, the state informed DI that due to fiscal constraints, it did not intend to renew its contract with DI when the contract term expired. The costs incurred in transitioning out of DI’s contract with the state of Delaware, including employee retention bonuses, operating lease termination costs, and fixed asset impairment, did not have a material impact on the Company’s consolidated results of operations, cash flows, or financial condition. For the years ended December 31, 2015, 2014 and 2013 revenues from the Delaware portal contract were approximately $0.6 million, $2.4 million, and $2.2 million, respectively.

INTANGIBLE ASSETS, NET

INTANGIBLE ASSETS, NET	12 Months Ended
	Dec. 31, 2015
INTANGIBLE ASSETS, NET	4. INTANGIBLE ASSETS, NET Intangible assets, net consisted of the following at December 31: December 31, 2015 December 31, 2014 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Internal use capitalized $ 7,657,843 $ (5,391,168 ) $ 2,266,675 $ 6,666,300 $ (4,272,596 ) $ 2,393,704 Amortization expense for internal use capitalized software totaling approximately $1.1 million, $1.0 million and $0.6 million for the years ended December 31, 2015, 2014 and 2013, respectively, is included in depreciation & amortization in the consolidated statements of income. The total estimated intangible asset amortization expense in future years related to assets that have been placed in production is as follows: Fiscal Year 2016 $ 899,629 2017 468,474 2018 101,867 $ 1,469,970

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
	Dec. 31, 2015
PROPERTY AND EQUIPMENT, NET	5. PROPERTY AND EQUIPMENT, NET Property and equipment, net consisted of the following at December 31: 2015 2014 Equipment $ 29,573,499 $ 28,714,059 Purchased software 11,269,384 10,972,449 Furniture and fixtures 5,127,814 4,924,108 Leasehold improvements 1,956,822 1,402,487 47,927,519 46,013,103 Less accumulated depreciation (38,594,728 ) (33,765,863 ) Property and equipment, net $ 9,332,791 $ 12,247,240 Depreciation expense for the years ended December 31, 2015, 2014 and 2013 was $7.3 million, $8.2 million and $7.7 million, respectively.

DEBT OBLIGATIONS AND COLLATERAL

DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS	12 Months Ended
	Dec. 31, 2015
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS	6. DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS On July 9, 2015, the Company entered into Amendment No. 1 to Amended and Restated Credit Agreement (the “First Amendment’), which amends the Amended and Restated Credit Agreement, dated as of August 6, 2014, by and between the Company and Bank of America, N.A. (the “Credit Agreement”). The material amendments to the Credit Agreement made by the First Amendment include (a) extending the maturity date to May 1, 2017; and (b) decreasing the margin added to the LIBOR rate for any amounts selected by the Company to be borrowed at the LIBOR rate, and the fees payable on outstanding letters of credit, to either 1.15% (if the Company’s consolidated leverage ratio is less than 1.50:1) or 1.25% (if the Company’s consolidated leverage ratio is greater than or equal to 1.50:1) of face value per annum. On December 14, 2015, the Company entered into Amendment No. 2 to the Credit Agreement (the “Second Amendment”), which amends the Credit Agreement dated as of August 6, 2014, as amended by the First Amendment. The Second Amendment provides that the interest rate on any amounts borrowed by the Company under the Credit Agreement will be at an annual rate benchmarked to LIBOR with a term equivalent to such borrowing or at an annual rate adjusted daily and benchmarked to LIBOR for a one-month term, in each event plus a margin of 1.15% or 1.25% depending on the Company’s consolidated leverage ratio, as discussed above. The Second Amendment also decreases the fees payable by the Company on outstanding letters of credit to 1.00% times the daily amount available to be drawn under any letter of credit. The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default. The Credit Agreement also continues to require the Company to maintain compliance with the following financial covenants (in each case, as defined in the Credit Agreement): ● Consolidated tangible net worth of at least $36 million (plus the amount of net proceeds from equity issued, or debt converted to equity, in each case after the date of the Credit Agreement); and ● Consolidated maximum leverage ratio of 1.5:1 (the ratio of total funded debt to EBITDA). The Company was in compliance with each of these covenants at December 31, 2015. The Company issues letters of credit mainly as collateral for certain office leases, and to a much lesser extent, as collateral for performance on one of its outsourced government portal contracts. These irrevocable letters of credit are generally in force for one year. In total, the Company and its subsidiaries had unused outstanding letters of credit of approximately $1.2 million at December 31, 2015. The Company is not currently required to cash collateralize these letters of credit. The Company had $3.8 million in available capacity to issue additional letters of credit and $8.8 million of unused borrowing capacity at December 31, 2015 under the Credit Agreement. Letters of credit may have an expiration date of up to one year beyond the expiration date of the Credit Agreement. The Credit Agreement also includes an accordion feature that allows the Company to increase the available capacity under the Credit Agreement to $50.0 million, subject to securing additional commitments from the bank. The Company has a $1.0 million line of credit with a bank in conjunction with a corporate credit card agreement. At December 31, 2015, the Company was bound by performance bond commitments totaling approximately $6.1 million on certain outsourced government portal contracts. The Company has never had any defaults resulting in draws on performance bonds. Had the Company been required to post 100% cash collateral at December 31, 2015 for the face value of all performance bonds, letters of credit and its line of credit in conjunction with a corporate credit card agreement, unrestricted cash would have decreased by approximately $8.3 million and would have been classified as restricted cash.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	12 Months Ended
	Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES	7. COMMITMENTS AND CONTINGENCIES Operating leases The Company and its subsidiaries lease office space and certain equipment under noncancellable operating leases. Future minimum lease payments under all noncancellable operating leases at December 31, 2015 are as follows: Fiscal Year 2016 $ 4,343,767 2017 3,775,439 2018 3,460,437 2019 1,723,802 2020 551,542 Thereafter 205,749 Total minimum lease payments $ 14,060,736 Rent expense for operating leases for the years ended December 31, 2015, 2014 and 2013 was approximately $4.5 million, $4.3 million, and $4.2 million, respectively. Litigation The Company is involved from time to time in legal proceedings and litigation arising in the ordinary course of business. However, the Company is not currently a party to any material legal proceedings.

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	12 Months Ended
	Dec. 31, 2015
STOCKHOLDERS' EQUITY	8. STOCKHOLDERS’ EQUITY Dividends On November 2, 2015, the Company’s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, totaling approximately $36.5 million, was paid on January 4, 2016 on 65,618,141 outstanding shares of common stock. A dividend equivalent of $0.55 per share was also paid simultaneously on 665,414 unvested shares of service-based restricted stock. The dividend was paid out of the Company’s available cash. On October 27, 2014, the Company’s Board of Directors declared a special cash dividend of $0.50 per share, payable to stockholders of record as of November 7, 2014. The dividend, totaling approximately $33.0 million, was paid on November 20, 2014 on 65,298,472 outstanding shares of common stock. A dividend equivalent of $0.50 per share was also paid simultaneously on 655,499 unvested shares of service-based restricted stock. The dividend was paid out of the Company’s available cash. On October 28, 2013, the Company’s Board of Directors declared a special cash dividend of $0.35 per share, payable to stockholders of record as of November 8, 2013. The dividend, totaling approximately $23.0 million, was paid on January 2, 2014 on 64,987,854 outstanding shares of common stock. A dividend equivalent of $0.35 per share was also paid simultaneously on 676,281 unvested shares of service-based restricted stock. The dividend was paid out of the Company’s available cash. In addition, holders of performance-based restricted stock accrued dividend equivalents, for each of the dividends declared noted above, that could be earned and become payable in the form of shares of common stock at the end of the respective performance period to the extent that the underlying shares of restricted stock were earned.

INCOME TAXES

INCOME TAXES	12 Months Ended
	Dec. 31, 2015
INCOME TAXES	9. INCOME TAXES The provision for income taxes consists of the following: Year Ended December 31, 2015 2014 2013 Current income taxes: Federal $ 25,608,500 $ 23,161,061 $ 18,436,209 State 3,522,333 3,256,031 3,154,439 Total 29,130,833 26,417,092 21,590,648 Deferred income taxes: Federal (3,485,844 ) (2,295,450 ) (1,111,536 ) State (328,930 ) (165,790 ) 41,548 Total (3,814,774 ) (2,461,240 ) (1,069,988 ) Total income tax provision $ 25,316,059 $ 23,955,852 $ 20,520,660 Deferred income taxes on the balance sheet result from temporary differences between the amount of assets and liabilities recognized for financial reporting and tax purposes. Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31: 2015 2014 Deferred tax assets: Stock-based compensation $ 2,175,291 $ 1,836,673 Amortization of internal use software development costs 1,999,641 1,755,520 Federal benefit of state uncertain tax positions 1,110,917 767,867 Accrued vacation 894,591 854,463 State net operating loss carryforwards 457,485 341,794 Deferred rent 233,326 224,187 Allowance for doubtful accounts 178,015 184,675 Other 326,138 48,529 7,375,404 6,013,708 Less: Valuation allowance (412,821 ) (332,863 ) Total 6,962,583 5,680,845 Deferred tax liabilities: Depreciation & capitalized internal use software and development costs (4,421,900 ) (5,056,061 ) Nonrecurring gain on acquisition of business (1,119,230 ) (1,121,326 ) Total (5,541,130 ) (6,177,387 ) Net deferred tax asset (liability) $ 1,421,453 $ (496,542 ) The Company has identified certain estimated state net operating loss (“NOL”) carryforwards that it might be unable to use. Based on a review of applicable state tax statutes, the Company concluded that there is substantial doubt it would be able to realize the full amount of certain estimated NOL carryforwards in states where the Company cannot file a consolidated income tax return or where future taxable income will not be sufficient to utilize the state NOL before it expires. As a result, the Company recorded a deferred tax asset valuation allowance totaling approximately $0.4 million and $0.3 million respectively at December 31, 2015 and 2014. The Company’s net deferred tax asset at December 31, 2015 is primarily attributable to cumulative timing differences between book and tax stock-based compensation expense. The Company’s net deferred tax liability at December 31, 2014 is primarily attributable to timing differences between book and tax depreciation on property and equipment purchased during 2014 and 2013. See Note 10 for discussion of the accounting for income tax deductions relating to the vesting of restricted stock. The following table reconciles the statutory federal income tax rate and the effective income tax rate indicated by the consolidated statements of income: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes 2.1 2.2 3.2 Nondeductible expenses 1.0 1.2 1.4 Uncertain tax positions 0.9 1.1 1.2 Federal and state tax credits (1.2 ) (1.2 ) (2.0 ) Other (0.2 ) (0.3 ) 0.2 Effective federal and state income tax rate 37.6 % 38.0 % 39.0 % On December 18, 2015, the Protecting Americans from Tax Hikes Act (the “2015 Act”) was signed into law. The 2015 Act includes a provision making permanent the federal research and development credit (which previously expired at the end of 2014). For the 2015 tax year, the Company recognized a favorable benefit related to the federal research and development tax credit totaling approximately $0.4 million, which was recognized by the Company in the fourth quarter of 2015, the period in which the legislation was enacted. On December 19, 2014, the Tax Increase Prevention Act of 2014 (the “2014 Act”) was signed into law. The 2014 Act retroactively extended the federal research and development credit (which previously expired at the end of 2013). For the 2014 tax year, the Company recognized a favorable benefit related to the federal research and development tax credit totaling approximately $0.4 million, which was recognized by the Company in the fourth quarter of 2014, the period in which the legislation was enacted. On January 2, 2013, the American Taxpayer Relief Act of 2012 (the “2012 Act”) was signed into law. The 2012 Act retroactively extended the federal research and development credit (which previously expired at the end of 2011) through the end of 2013. In accordance with authoritative accounting guidance, the Company recognized the impact of this legislation for the 2012 tax year in 2013, when the Act was signed into law. For the 2013 and 2012 tax years, the Company recognized a favorable benefit related to the federal research and development tax credit totaling approximately $0.8 million, which was recognized in 2013. The following table provides a reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits (included in other long-term liabilities in the consolidated balance sheets) for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Balance at January 1 $ 2,797,671 $ 1,760,434 $ 688,575 Additions for tax positions of current years 1,093,963 1,072,333 632,309 Additions for tax positions of prior years 338,123 112,459 439,550 Expiration of the statute of limitations (365,762 ) (126,918 ) - Reductions for tax positions of prior years (142,973 ) (20,637 ) - Balance at December 31 $ 3,721,022 $ 2,797,671 $ 1,760,434 At December 31, 2015, 2014 and 2013, there were approximately $2.6 million, $2.0 million and $1.3 million, respectively, of unrecognized tax benefits that if recognized would affect the annual effective tax rate. It is reasonably possible that events will occur during the next 12 months that would cause the total amount of unrecognized tax benefits to increase or decrease. However, the Company does not expect such increases or decreases to be material to its financial condition or results of operations. The Company, along with its wholly owned subsidiaries, files a consolidated U.S. federal income tax return and separate income tax returns in many states throughout the U.S. The Company remains subject to U.S. federal examination for the tax years ended on or after December 31, 2013. State income tax returns are generally subject to examination for a period of three to five years after filing of the respective return. The Company recognizes accrued interest and penalties associated with uncertain tax positions as part of income tax expense in the consolidated statements of income. At December 31, 2015, 2014 and 2013, accrued interest and penalty amounts were not material.

STOCK-BASED COMPENSATION AND EM

STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS	12 Months Ended
	Dec. 31, 2015
STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS	10. STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS The following table presents stock-based compensation expense included in the Company’s consolidated statements of income: Year Ended December 31, 2015 2014 2013 Cost of portal revenues, exclusive of depreciation & amortization $ 1,404,093 $ 1,311,827 $ 1,100,396 Cost of software & services revenues, exclusive of depreciation & amortization 82,814 47,105 48,128 Selling & administrative 4,953,934 4,744,966 2,877,436 Stock-based compensation expense before income taxes 6,440,841 6,103,898 4,025,960 Income tax benefit (2,423,029 ) (2,320,499 ) (1,571,867 ) Net stock-based compensation expense $ 4,017,812 $ 3,783,399 $ 2,454,093 Stock option and restricted stock plans The Company has a formal stock compensation plan (the “NIC plan”) to provide for the granting of incentive stock options, non-qualified stock options, or restricted stock awards to encourage certain employees of the Company and its subsidiaries, and directors of the Company to participate in the ownership of the Company and to provide additional incentive for such employees and directors to promote the success of its business through sharing in the future growth of such business. The NIC plan was amended and restated in May 2014. The May 2014 amendment and restatement, as approved by the Company’s Board of Directors and stockholders, modified the NIC plan to increase the number of shares the Company is authorized to grant under the NIC plan from 14,286,754 to 15,825,223 common shares. At December 31, 2015, a total of 4,681,841 shares were available for future grants under the NIC plan. The Company did not grant any stock options in 2015, 2014, or 2013, and does not currently anticipate granting stock options in the future. Instead, the Company currently expects to continue to grant only restricted stock awards. Restricted stock During 2015, the Board of Directors of the Company granted to certain management-level employees and executive officers, service-based restricted stock awards totaling 273,327 shares with a grant-date fair value totaling approximately $4.6 million. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. In addition, non-employee directors of the Company were granted service-based restricted stock awards totaling 45,619 shares with a grant-date fair value totaling approximately $0.8 million. Such restricted stock awards vest one year from the date of grant. During 2015, the Board of Directors of the Company also granted to certain executive officers performance-based restricted stock awards pursuant to the terms of the Company’s executive compensation program totaling 109,705 shares with a grant-date fair value totaling approximately $1.9 million, which represents the maximum number of shares able to be earned by the executive officers at the end of a three-year performance period ending December 31, 2017. The actual number of shares earned will be based on the Company’s performance related to the following performance criteria over the performance period: ● ● ● Cash flow return on invested capital, excluding income taxes paid (three-year average). At the end of the three-year period, the executive officers are eligible to receive up to a specified number of shares based upon the Company’s performance relative to these performance criteria over the performance period. In addition, the executive officers will accrue dividend equivalents for any cash dividend declared during the performance period, payable in the form of shares of Company common stock, based upon the maximum number of shares to be earned by the executive officers for each performance-based restricted stock award. Such hypothetical cash dividend payment shall be divided by the fair value of the Company’s common stock on the dividend payment date to determine the maximum number of notional shares to be awarded. At the end of the three-year performance period and on the date some or all of the shares are paid under the agreement, a pro rata number of notional dividend shares will be converted into an equivalent number of dividend shares paid and granted to the executive officers based upon the actual number of underlying shares earned during the performance period. At December 31, 2015, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 5, 2013 ended. Based on the Company’s actual financial results from 2013 through 2015, 96,732 of the shares subject to the awards and 6,990 dividend shares were earned and vested on February 5, 2016. At December 31, 2014, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on January 30, 2012 ended. Based on the Company’s actual financial results from 2012 through 2014, 67,239 of the shares subject to the awards and 4,043 dividend shares were earned and vested on January 30, 2015. At December 31, 2013, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on March 7, 2011 ended. Based on the Company’s actual financial results from 2011 through 2013, 85,365 of the shares subject to the awards and 4,350 dividend shares were earned and vested on March 7, 2014. A summary of restricted stock activity for the year ended December 31, 2015 is presented below: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 993,453 $ 16.28 Granted 432,694 16.80 Vested (364,380 ) 15.02 Canceled (136,737 ) 15.27 Outstanding at December 31, 2015 925,030 17.17 The fair value of restricted stock vested during the years ended December 31, 2015, 2014 and 2013 was approximately $5.5 million, $4.1 million and $3.5 million, respectively. The weighted average grant date fair value per share of restricted stock granted during the years ended December 31, 2015, 2014 and 2013 was $16.80, $19.05 and $16.54, respectively. At December 31, 2015, the Company had approximately $6.9 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested restricted stock awards. The Company expects to recognize this cost over the next 2.4 years from December 31, 2015. As previously disclosed in prior filings with the SEC, the Company’s former Executive Vice President, Chief Administrative Officer, General Counsel and Secretary (“EVP”), retired effective December 31, 2015. In connection with the EVP’s retirement, the Compensation Committee of the Board of Directors of the Company authorized the accelerated vesting of a portion of the EVP’s unvested service-based restricted stock representing 21,813 shares. The EVP forfeited his remaining balance of 5,269 shares of unvested service-based restricted stock and 33,651 shares of performance-based restricted stock, granted in 2014 and 2015, upon his retirement. The incremental cost to the Company to accelerate the vesting of a portion the EVP’s unvested service-based restricted stock, net of all performance-based and service-based restricted stock forfeited upon his retirement, was insignificant. Income taxes The Company is permitted to recognize a credit to additional paid-in capital for federal income tax deductions, or windfall tax benefits, resulting from the vesting of restricted stock if such windfall tax benefits reduce income taxes payable. Following the with-and-without approach for utilization of tax attributes, the Company increased additional paid-in capital for windfall tax benefits totaling approximately $0.4 million, $1.2 million and $1.3 million, respectively, during the years ended December 31, 2015, 2014 and 2013. Earnings per share In calculating diluted earnings per share, the assumed proceeds in the treasury stock calculation are adjusted for any restricted stock windfall tax benefits or shortfalls that would be credited or debited, respectively, to additional paid-in capital. Upon adoption of authoritative accounting guidance for share-based payments, the Company elected to exclude the impact of pro forma deferred tax assets (i.e., the windfall or shortfall that would be recognized in the financial statements upon exercise of an award) when calculating diluted earnings per share. Employee stock purchase plan In 1999, the Company’s Board of Directors approved an employee stock purchase plan (“ESPP”) intended to qualify as an “employee stock purchase plan” under Section 423 of the Internal Revenue Code. A total of 2,321,688 shares of NIC common stock have been reserved for issuance under this plan. Terms of the plan permit eligible employees to purchase NIC common stock through payroll deductions up to the lesser of 15% of each employee’s compensation or $25,000. Amounts deducted and accumulated by the participant are used to purchase shares of NIC’s common stock at 85% of the lower of the fair value of the common stock at the beginning or the end of the offering period, as defined in the plan. In the offering period commencing on April 1, 2014 and ending on March 31, 2015, 75,328 shares were purchased at a price of $15.02 per share, resulting in total cash proceeds to the Company of approximately $1.1 million. In the offering period commencing on April 1, 2013 and ending on March 31, 2014, 68,101 shares were purchased at a price of $16.25 per share, resulting in total cash proceeds to the Company of approximately $1.1 million. In the offering period commencing on April 1, 2012 and ending on March 31, 2013, 87,578 shares were purchased at a price of $10.33 per share, resulting in total cash proceeds to the Company of approximately $0.9 million. The next offering period under this plan commenced on April 1, 2015. The closing fair market value of NIC common stock on the first day of the current offering period was $17.48 per share. The fair values of the offerings were estimated on the dates of grant using the Black-Scholes model using the assumptions in the following table. March 31, 2016 Offering March 31, 2015 Offering March 31, 2014 Offering Risk-free interest rate 0.27 % 0.13 % 0.14 % Expected dividend yield 3.07 % 3.08 % 3.73 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 37.86 % 35.97 % 28.84 % Weighted average fair value of ESPP rights $ 4.88 $ 5.38 $ 4.59 The Black-Scholes option-pricing model was not developed for use in valuing employee ESPP rights, but was developed for use in estimating the fair value of traded stock options that have no vesting restrictions and are fully transferable. In addition, it requires the use of subjective assumptions including expectations of future dividends and stock price volatility. Such assumptions are only used for making the required fair value estimate and should not be considered as indicators of future dividend policy or stock price appreciation, or should not be used to predict the value ultimately realized by employees who receive equity awards. Because changes in the subjective assumptions can materially affect the fair value estimate and because employee stock options have characteristics significantly different from those of traded options, the use of the Black-Scholes option-pricing model may not provide a reliable estimate of the fair value of employee ESPP rights. Defined contribution 401(k) profit sharing plan The Company and its subsidiaries sponsor a defined contribution 401(k) profit sharing plan. In accordance with the plan, all full-time employees are eligible immediately upon employment and non-full time employees are eligible upon reaching 1,000 hours of service in the relevant period. A discretionary match by the Company of an employee’s contribution of up to 5% of base salary and a discretionary contribution may be made to the plan as determined by the Board of Directors. Expense related to Company matching contributions totaled approximately $2.2 million, $2.1 million and $1.8 million for the years ended December 31, 2015, 2014 and 2013, respectively.

REPORTABLE SEGMENTS AND RELATED

REPORTABLE SEGMENTS AND RELATED INFORMATION	12 Months Ended
	Dec. 31, 2015
REPORTABLE SEGMENTS AND RELATED INFORMATION	11. REPORTABLE SEGMENTS AND RELATED INFORMATION The Outsourced Portals segment is the Company’s only reportable segment and generally includes the Company’s subsidiaries operating outsourced state and local government portals. The Other Software & Services category primarily includes the Company’s subsidiaries that provide software development and digital government services, other than outsourced portal services, to state and local governments as well as federal agencies. Each of the Company’s businesses within the Other Software & Services category is an operating segment and has been grouped together to form the Other Software & Services category, as none of the operating segments meets the quantitative threshold of a separately reportable segment. Beginning in the fourth quarter of 2015, certain corporate divisions that support the Company’s portal businesses, which were previously reported in the Outsourced Portals segment, are now reported with all other corporate divisions as unallocated corporate-level expenses and reported in the reconciliation of the segments totals to the related consolidated totals as “Other Reconciling Items.” The new presentation is consistent with the manner by which information is presently used internally by the Company’s chief operating decision maker to evaluate performance and make resource allocation decisions. All prior periods presented have been recast to conform to the current segment reporting. These changes had no impact on total consolidated revenues, total operating expenses or total operating income before income taxes. There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all reportable and operating segments. The measure of profitability by which management, including the Company’s chief operating decision maker, evaluates the performance of its segments and allocates resources to them is operating income (loss) before income taxes. Segment assets or other segment balance sheet information is not presented to the Company’s chief operating decision maker. Accordingly, the Company has not presented information relating to segment assets. The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31: Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2015 Revenues $ 273,502,323 $ 18,873,973 $ - $ 292,376,296 Costs & expenses 168,166,011 5,431,967 43,098,323 216,696,301 Depreciation & amortization 4,648,870 47,015 3,689,528 8,385,413 Operating income (loss) before income taxes $ 100,687,442 $ 13,394,991 $ (46,787,851 ) $ 67,294,582 2014 Revenues $ 255,743,418 $ 16,353,153 $ - $ 272,096,571 Costs & expenses 156,185,335 4,783,606 38,936,541 199,905,482 Depreciation & amortization 5,305,302 36,999 3,834,717 9,177,018 Operating income (loss) before income taxes $ 94,252,781 $ 11,532,548 $ (42,771,258 ) $ 63,014,071 2013 Revenues $ 235,183,005 $ 14,095,660 $ - $ 249,278,665 Costs & expenses 147,007,246 4,498,233 36,881,346 188,386,825 Depreciation & amortization 4,962,692 53,475 3,316,922 8,333,089 Operating income (loss) before income taxes $ 83,213,067 $ 9,543,952 $ (40,198,268 ) $ 52,558,751 The highest volume, most commercially valuable service the Company offers is access to motor vehicle driver history records, referred to as DHR, through the Company’s outsourced government portals. This service accounted for approximately 35%, 35% and 34% of the Company’s total consolidated revenues in 2015, 2014 and 2013, respectively. In addition, the Company offers a service in several states for online motor vehicle registration and licensing. This service accounted for approximately 13%, 12% and 13% of the Company’s total consolidated revenues in 2015, 2014 and 2013, respectively. No other services accounted for 10% or more of the Company’s total consolidated revenues for the years ended December 31, 2015, 2014 or 2013. A primary source of revenue is derived from data resellers, who use the Company’s government portals to access DHR records for the auto insurance industry. For the years ended December 31, 2015, 2014 and 2013, one of these data resellers accounted for approximately 23%, 24% and 22% of the Company’s total consolidated revenues, respectively. At December 31, 2015 and 2014, this one data reseller accounted for approximately 17% and 24%, respectively, of the Company’s accounts receivable. For the years ended December 31, 2015, 2014 and 2013, the Company’s Texas portal accounted for approximately 21%, 22% and 23% of the Company’s total consolidated revenues, respectively. No other state portal contract accounted for more than 10% of the Company’s total consolidated revenues for the years ended December 31, 2015, 2014 or 2013.

UNAUDITED QUARTERLY OPERATING R

UNAUDITED QUARTERLY OPERATING RESULTS	12 Months Ended
	Dec. 31, 2015
UNAUDITED QUARTERLY OPERATING RESULTS	12. UNAUDITED QUARTERLY OPERATING RESULTS The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year (on an individual portal basis, and excluding revenues from new outsourced government portal contracts awarded or acquired during the year), due to the lower number of business days in the quarter and a lower volume of business-to-government and citizen-to-government transactions during the holiday periods. 2015 Three Months Ended Year Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 Revenues: Portal revenues $ 65,913,898 $ 71,030,846 $ 70,122,162 $ 66,435,417 $ 273,502,323 Software & services revenues 4,444,725 4,781,930 4,924,120 4,723,198 18,873,973 Total revenues 70,358,623 75,812,776 75,046,282 71,158,615 292,376,296 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 41,494,301 42,815,102 41,057,942 42,798,666 168,166,011 Cost of software & services revenues, exclusive of depreciation & amortization 1,289,860 1,321,259 1,364,726 1,456,122 5,431,967 Selling & administrative 10,537,491 10,818,680 10,576,445 11,165,707 43,098,323 Depreciation & amortization 2,292,118 2,303,571 2,116,319 1,673,405 8,385,413 Total operating expenses 55,613,770 57,258,612 55,115,432 57,093,900 225,081,714 Operating income before income taxes 14,744,853 18,554,164 19,930,850 14,064,715 67,294,582 Income tax provision 5,803,949 7,250,724 7,180,660 5,080,726 25,316,059 Net income $ 8,940,904 $ 11,303,440 $ 12,750,190 $ 8,983,989 $ 41,978,523 Basic net income per share $ 0.14 $ 0.17 $ 0.19 $ 0.13 $ 0.63 Diluted net income per share $ 0.14 $ 0.17 $ 0.19 $ 0.13 $ 0.63 Weighted average shares outstanding: Basic 65,387,427 65,587,822 65,617,812 65,621,684 65,554,655 Diluted 65,387,427 65,587,822 65,636,436 65,715,951 65,639,682 2014 Three Months Ended Year Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 December 31, 2014 Revenues: Portal revenues $ 61,482,452 $ 66,807,907 $ 65,304,664 $ 62,148,395 $ 255,743,418 Software & services revenues 3,915,233 4,345,879 4,222,534 3,869,507 16,353,153 Total revenues 65,397,685 71,153,786 69,527,198 66,017,902 272,096,571 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 37,559,503 39,550,094 39,090,865 39,984,873 156,185,335 Cost of software & services revenues, exclusive of depreciation & amortization 993,324 1,244,843 1,287,083 1,258,356 4,783,606 Selling & administrative 9,208,685 9,840,579 10,396,876 9,490,401 38,936,541 Depreciation & amortization 2,249,734 2,277,048 2,292,382 2,357,854 9,177,018 Total operating expenses 50,011,246 52,912,564 53,067,206 53,091,484 209,082,500 Operating income before income taxes 15,386,439 18,241,222 16,459,992 12,926,418 63,014,071 Income tax provision 6,010,054 7,213,057 6,098,567 4,634,174 23,955,852 Net income $ 9,376,385 $ 11,028,165 $ 10,361,425 $ 8,292,244 $ 39,058,219 Basic net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59 Diluted net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59 Weighted average shares outstanding: Basic 65,056,725 65,244,575 65,287,702 65,301,797 65,223,549 Diluted 65,056,725 65,244,575 65,287,702 65,363,104 65,277,758

SUMMARY OF SIGNIFICANT ACCOUN19

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
	Dec. 31, 2015
Basis of presentation	Basis of presentation The Company classifies its revenues and cost of revenues into two categories: (1) portal and (2) software & services. The portal category generally includes revenues and cost of revenues from the Company’s subsidiaries operating outsourced portals on behalf of state and local governments. The software & services category primarily includes revenues and cost of revenues from the Company’s subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The primary categories of operating expenses include: cost of portal revenues, cost of software & services revenues, selling & administrative and depreciation & amortization. Cost of portal revenues consists of all direct costs associated with operating government portals on an outsourced basis including employee compensation and benefits (including stock-based compensation), fees required to process credit/debit card and automated clearinghouse transactions, subcontractor labor costs, telecommunications, provision for losses on accounts receivable, gains and losses on disposal of assets and all other costs associated with the provision of dedicated client service such as dedicated facilities.
Basis of consolidation	Basis of consolidation The accompanying consolidated financial statements consolidate the Company together with all of its direct and indirect wholly owned subsidiaries. All intercompany balances and transactions have been eliminated.
Cash and cash equivalents	Cash and cash equivalents Cash and cash equivalents primarily include cash on hand in the form of bank deposits. For purposes of the consolidated balance sheets and consolidated statements of cash flows, the Company considers all non-restricted highly liquid instruments purchased with an original maturity of one month or less to be cash equivalents.
Cash restricted for payment of dividend	Cash restricted for payment of dividend Restricted cash represents cash which is restricted for use by NIC. On November 2, 2015, the Company’s Board of Directors declared a special cash dividend of $0.55 per share, payable to stockholders of record as of November 13, 2015. The dividend, totaling approximately $36.5 million, was paid on January 4, 2016 out of the Company’s available cash. Cash used to pay the special dividend was classified as restricted at December 31, 2015.
Trade accounts receivable	Trade accounts receivable The Company records trade accounts receivable at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The Company calculates this allowance based on its history of write-offs, the level of past-due accounts, and its relationship with, and the economic status of, its customers. Trade accounts receivable are written off when deemed uncollectible. Recoveries of receivables previously written off are recorded when received. As previously disclosed in prior filings with the SEC, in September 2013, the Company elected not to pursue collection of outstanding accounts receivable from the Commonwealth of Pennsylvania (the “Commonwealth”) and recorded a non-cash pre-tax charge of approximately $5.1 million (approximately $0.05 per share on an after-tax basis) in the third quarter of 2013 to write-off amounts due from the Commonwealth through June 30, 2013. The charge is included in cost of portal revenues in the Company’s consolidated statements of income for the year ended December 31, 2013. The Company continued to provide eGovernment solutions under the contract with the Commonwealth, but did not recognize revenues under the contract subsequent to June 30, 2013 until the contract became self-funded in October 2013. The Company’s allowance for doubtful accounts at both December 31, 2015 and 2014 was approximately $0.5 million.
Property and equipment	Property and equipment Property and equipment are carried at cost less accumulated depreciation. Depreciation is computed using the straight-line method over estimated useful lives of 8 years for furniture and fixtures, 3-10 years for equipment, 3-5 years for purchased software, and the lesser of the term of the lease or 5 years for leasehold improvements. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in results of operations for the period. The cost of maintenance and repairs is charged to expense as incurred. Significant betterments are capitalized. The Company periodically evaluates the carrying value of property and equipment to be held and used when events and circumstances warrant such a review. The carrying value of property and equipment is considered impaired when the anticipated undiscounted cash flow from the asset is separately identifiable and is less than its carrying value. In that event, a loss is recognized based on the amount by which the carrying value exceeds the fair value of the asset. Fair value is determined primarily using the anticipated cash flow discounted at a rate commensurate with the risk involved. Losses on assets to be disposed of are determined in a similar manner, except that fair values are reduced for the cost to dispose. The Company did not record any material impairment losses on property and equipment during the periods presented.
Software development costs and intangible assets	Software development costs and intangible assets The Company expenses as incurred all employee costs to start up, operate, and maintain government portals on an outsourced basis as costs of performance under the contracts because, after the completion of a defined contract term, the government entity with which the Company contracts typically receives a perpetual, royalty-free license to the applications the Company developed, excluding applications provided on a SaaS basis. Such costs are included in cost of portal revenues in the consolidated statements of income. The Company accounts for the costs of developing internal use computer software in accordance with authoritative accounting guidance for internal use computer software, whereby certain costs of developing internal use computer software are capitalized and amortized over their estimated useful life. For internal use computer software, the estimated economic life is typically 36 months from the date the software is placed in production. At December 31, 2015 and 2014, such costs are included in intangible assets in the consolidated balance sheets. The Company carries intangible assets at cost less accumulated amortization. Intangible assets are generally amortized on a straight-line basis over estimated economic lives of the respective assets. At each balance sheet date, or whenever events or changes in circumstances warrant, the Company assesses the carrying value of intangible assets for possible impairment based primarily on the ability to recover the balances from expected future cash flows on an undiscounted basis. If the sum of the expected future cash flows on an undiscounted basis were to be less than the carrying amount of the intangible asset, an impairment loss would be recognized for the amount by which the carrying value of the intangible asset exceeds its estimated fair value. Fair value is determined primarily using the anticipated cash flows discounted at a rate commensurate with the risk involved. The Company has not recorded any material impairment losses on intangible assets during the periods presented.
Accrued expenses	Accrued expenses As of each balance sheet date, the Company estimates expenses which have been incurred but not yet paid or for which invoices have not yet been received. Significant components of accrued expenses consist primarily of employee compensation and benefits (including incentive compensation, bonuses, vacation, health insurance and employer 401(k) contributions), third-party professional service fees, payment processing fees, and miscellaneous other accruals.
Revenue recognition	Revenue recognition Portal revenues The Company recognizes revenue from providing outsourced digital government services (primarily transaction-based information access fees and filing fees) net of the transaction fees due to the government when the services are provided at the time of the transactions. The fees that the Company must remit to state agencies for data access and other statutory fees are accrued as accounts payable when the services are provided at the time of the transactions. The Company must remit a certain amount or percentage of these fees to government agencies regardless of whether the Company ultimately collects the fees. As a result, trade accounts receivable and accounts payable reflect the gross amounts outstanding at the balance sheet dates. Revenue from service contracts to provide portal consulting, application development, and management services to governments is recognized as the services are provided at rates provided for in the contract. Amounts received prior to providing services are recorded as unearned revenue. At each balance sheet date, the Company makes a determination as to the portion of unearned revenue that will be earned within one year and records that amount in other current liabilities in the consolidated balance sheets. The remainder, if any, is recorded in other long-term liabilities. Unearned revenues at December 31, 2015 and 2014 were approximately $0.9 million and $1.3 million, respectively, and were recorded in other current liabilities in the consolidated balance sheets. Software & services revenues The Company’s software & services revenues primarily include revenues from subsidiaries that provide software development and services, other than outsourced portal services, to state and local governments as well as federal agencies. The Company’s subsidiary, NIC Federal, LLC (“NIC Federal”) currently earns a significant portion of its revenues from its contract with the Federal Motor Carrier Safety Administration (“FMCSA”) to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a self-funded, transaction-based business model. NIC Federal recognizes revenue from its contract with the FMCSA (primarily transaction-based information access fees) when the services are provided at the time of the transactions. NIC Federal also earns a portion of its revenues from fixed fee and time and materials application development and outsourced maintenance contracts with other government agencies and recognizes revenues as the services are provided.
Stock-based compensation	Stock-based compensation The Company measures stock-based compensation cost for service-based restricted stock awards at the grant date based on the calculated fair value of the award, and recognizes an expense over the employee’s requisite service period (generally the vesting period of the grant). The Company measures stock-based compensation cost for performance-based restricted stock awards at the date of grant, based on the fair value of shares expected to be earned at the end of the performance period, and recognizes an expense over the performance period based upon the probable number of shares expected to vest. The Company estimates and excludes compensation cost related to awards not expected to vest based upon estimated forfeitures (See Note 10).
Income taxes	Income taxes The Company, along with its wholly owned subsidiaries, files a consolidated federal income tax return. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted laws and statutory tax rates applicable to the periods in which the differences are expected to affect taxable income. Valuation allowances are established, when necessary, to reduce deferred tax assets to the amounts expected to be realized. The Company does not recognize a tax benefit for uncertain tax positions unless management’s assessment concludes that it is “more likely than not” that the position is sustainable, based on its technical merits. If the recognition threshold is met, the Company recognizes a tax benefit based upon the largest amount of the tax benefit that is greater than 50% likely to be realized. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense in the consolidated statements of income.
Fair value of financial instruments	Fair value of financial instruments The carrying values of the Company’s accounts receivable and accounts payable approximate fair value.
Comprehensive income	Comprehensive income The Company has no components of other comprehensive income or loss and, accordingly, the Company’s comprehensive income is the same as its net income for all periods presented.
Earnings per share	Earnings per share Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share pursuant to the two-class method for all periods presented. The two-class method is an earnings allocation formula that treats a participating security as having rights to undistributed earnings that would otherwise have been available to common stockholders. The Company’s service-based restricted stock awards contain non-forfeitable rights to dividends and are considered participating securities. Accordingly, service-based restricted stock awards were included in the calculation of earnings per share using the two-class method for all periods presented. Unvested service-based restricted shares totaled approximately 0.6 million, 0.6 million and 0.7 million, respectively, at December 31, 2015, 2014 and 2013. Basic earnings per share is calculated by first allocating earnings between common stockholders and participating securities. Earnings attributable to common stockholders are divided by the weighted average number of common shares outstanding during the period. Diluted earnings per share is calculated by giving effect to dilutive potential common shares outstanding during the period. The dilutive effect of shares related to the Company’s employee stock purchase plan is determined based on the treasury stock method. The dilutive effect of service-based restricted stock awards is based on the more dilutive of the treasury stock method or the two-class method assuming a reallocation of undistributed earnings to common stockholders after considering the dilutive effect of potential common shares other than the participating unvested restricted stock awards. The dilutive effect of performance-based restricted stock awards is based on the treasury stock method. The following table sets forth the computation of basic and diluted earnings per share: December 31, 2015 2014 2013 Numerator: Net income $ 41,978,523 $ 39,058,219 $ 32,038,091 Less: Income allocated to participating securities (384,246 ) (368,668 ) (325,182 ) Net income available to common stockholders $ 41,594,277 $ 38,689,551 $ 31,712,909 Denominator: Weighted average shares - basic 65,554,655 65,223,549 64,888,978 Performance-based restricted stock awards 85,027 54,209 65,388 Weighted average shares - diluted 65,639,682 65,277,758 64,954,366 Basic net income per share: Net income $ 0.63 $ 0.59 $ 0.49 Diluted net income per share: Net income $ 0.63 $ 0.59 $ 0.49
Concentration of credit risk	Concentration of credit risk Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash and accounts receivable. The Company limits its exposure to credit loss by depositing its cash with high credit quality financial institutions and monitoring the financial stability of those institutions. The Federal Deposit Insurance Corporation (“FDIC”) provides deposit insurance coverage up to $250,000 per depositor for deposit accounts at each FDIC-insured depository institution. At December 31, 2015, the amount of cash covered by FDIC deposit insurance was approximately $10.2 million, and approximately $88.2 million of cash was above the FDIC deposit insurance limit. The Company performs ongoing credit evaluations of its customers and generally requires no collateral to secure accounts receivable.
Segment reporting	Segment reporting The Company reports segment information in accordance with authoritative accounting guidance for segment disclosures based upon the “management” approach, which designates the internal organization that is used by management for making operating decisions and assessing performance as the source of the Company’s segments. Authoritative guidance for segment disclosures also requires disclosures about products and services and major customers (See Note 11).
Use of estimates	Use of estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
Recent Accounting Pronouncements	Recently adopted accounting pronouncements In November 2015, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Balance Sheet Classification of Deferred Taxes, to simplify the financial statement presentation of deferred taxes in the balance sheet. The standard requires that all deferred tax assets and liabilities be classified as noncurrent. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period, and early adoption is permitted as of the beginning of any interim or annual reporting period. The standard may be adopted either prospectively to all deferred tax assets and liabilities or retrospectively to all periods presented. The Company adopted the standard on a retrospective basis effective for the year ended December 31, 2015. The adoption of the standard resulted in a decrease in current net deferred tax assets of approximately $1.0 million and a corresponding decrease in noncurrent net deferred tax liabilities in the Company’s consolidated balance sheet at December 31, 2014. Recently issued accounting pronouncements In May 2014, the FASB issued new authoritative literature, Revenue from Contracts with Customers, as part of a joint effort by the FASB and the International Accounting Standards Board to enhance financial reporting by creating common revenue recognition guidance and thereby improve the consistency of requirements, comparability of practices and usefulness of disclosures. The new standard will supersede much of the existing authoritative literature for revenue recognition. The standard and related amendments will be effective for the Company for its annual reporting period beginning January 1, 2018, including interim periods within that reporting period. Entities are allowed to transition to the new standard by either recasting prior periods presented or recognizing the cumulative effect of the change in accounting principle in beginning stockholders’ equity. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on the Company’s consolidated financial statements.

SUMMARY OF SIGNIFICANT ACCOUN20

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
	Dec. 31, 2015
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share: December 31, 2015 2014 2013 Numerator: Net income $ 41,978,523 $ 39,058,219 $ 32,038,091 Less: Income allocated to participating securities (384,246 ) (368,668 ) (325,182 ) Net income available to common stockholders $ 41,594,277 $ 38,689,551 $ 31,712,909 Denominator: Weighted average shares - basic 65,554,655 65,223,549 64,888,978 Performance-based restricted stock awards 85,027 54,209 65,388 Weighted average shares - diluted 65,639,682 65,277,758 64,954,366 Basic net income per share: Net income $ 0.63 $ 0.59 $ 0.49 Diluted net income per share: Net income $ 0.63 $ 0.59 $ 0.49

OUTSOURCED GOVERNMENT CONTRAC21

OUTSOURCED GOVERNMENT CONTRACTS (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies	The following is a summary of the portals in each state through which the Company provides enterprise-wide outsourced portal services to multiple government agencies: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (Renewal Options Through) Connecticut Interactive, LLC www.ct.gov (Connecticut) 2014 1/9/2017 (1/9/2020) Wisconsin Interactive Network, LLC www.wisconsin.gov (Wisconsin) 2013 5/13/2018 (5/13/2023) Pennsylvania Interactive, LLC www.pa.gov (Pennsylvania) 2012 11/30/2017 (11/30/2022) NICUSA, OR Division www.oregon.gov (Oregon) 2011 11/22/2021 NICUSA, MD Division www.maryland.gov (Maryland) 2011 8/10/2017 (8/10/2019) Mississippi Interactive, LLC www.ms.gov (Mississippi) 2011 12/31/2017 (12/31/2021) New Jersey Interactive, LLC www.nj.gov (New Jersey) 2009 5/1/2020 (5/1/2022) Texas NICUSA, LLC www.Texas.gov (Texas) 2009 8/31/2018 West Virginia Interactive, LLC www.WV.gov (West Virginia) 2007 3/31/2016 Vermont Information Consortium, LLC www.Vermont.gov (Vermont) 2006 6/8/2016 (6/8/2019) Colorado Interactive, LLC www.Colorado.gov (Colorado) 2005 4/30/2019 (4/30/2023) South Carolina Interactive, LLC www.SC.gov (South Carolina) 2005 7/15/2019 (7/15/2021) Kentucky Interactive, LLC www.Kentucky.gov (Kentucky) 2003 8/31/2016 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/1/2016 (3/1/2017) Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2016 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2017 (12/31/2020) NICUSA, TN Division www.TN.gov (Tennessee) 2000 3/31/2017 Hawaii Information Consortium, LLC www.eHawaii.gov (Hawaii) 2000 1/3/2019 (3-year renewal options) Idaho Information Consortium, LLC www.Idaho.gov (Idaho) 2000 6/30/2017 Utah Interactive, LLC www.Utah.gov (Utah) 1999 6/5/2019 Maine Information Network, LLC www.Maine.gov (Maine) 1999 7/1/2018 Arkansas Information Consortium, LLC www.Arkansas.gov (Arkansas) 1997 6/30/2018 Iowa Interactive, LLC www.Iowa.gov (Iowa) 1997 6/30/2016 (6/30/2020) Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2016 Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2021 (annual 1-year renewal options)

INTANGIBLE ASSETS, NET (Tables)

INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
	Dec. 31, 2015
Intangible Assets, Net	Intangible assets, net consisted of the following at December 31: December 31, 2015 December 31, 2014 Gross Carrying Value Accumulated Amortization Net Book Value Gross Carrying Value Accumulated Amortization Net Book Value Internal use capitalized $ 7,657,843 $ (5,391,168 ) $ 2,266,675 $ 6,666,300 $ (4,272,596 ) $ 2,393,704
Estimated Amortization Expense in Future Years	The total estimated intangible asset amortization expense in future years related to assets that have been placed in production is as follows: Fiscal Year 2016 $ 899,629 2017 468,474 2018 101,867 $ 1,469,970

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
	Dec. 31, 2015
Property and Equipment, Net	Property and equipment, net consisted of the following at December 31: 2015 2014 Equipment $ 29,573,499 $ 28,714,059 Purchased software 11,269,384 10,972,449 Furniture and fixtures 5,127,814 4,924,108 Leasehold improvements 1,956,822 1,402,487 47,927,519 46,013,103 Less accumulated depreciation (38,594,728 ) (33,765,863 ) Property and equipment, net $ 9,332,791 $ 12,247,240

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Tables)	12 Months Ended
	Dec. 31, 2015
Future Minimum Lease Payments Under All Noncancellable Operating Leases	Future minimum lease payments under all noncancellable operating leases at December 31, 2015 are as follows: Fiscal Year 2016 $ 4,343,767 2017 3,775,439 2018 3,460,437 2019 1,723,802 2020 551,542 Thereafter 205,749 Total minimum lease payments $ 14,060,736

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
	Dec. 31, 2015
Provision for Income Taxes	The provision for income taxes consists of the following: Year Ended December 31, 2015 2014 2013 Current income taxes: Federal $ 25,608,500 $ 23,161,061 $ 18,436,209 State 3,522,333 3,256,031 3,154,439 Total 29,130,833 26,417,092 21,590,648 Deferred income taxes: Federal (3,485,844 ) (2,295,450 ) (1,111,536 ) State (328,930 ) (165,790 ) 41,548 Total (3,814,774 ) (2,461,240 ) (1,069,988 ) Total income tax provision $ 25,316,059 $ 23,955,852 $ 20,520,660
Deferred Income Tax Assets and Liabilities	Significant components of the Company’s deferred tax assets and liabilities were as follows at December 31: 2015 2014 Deferred tax assets: Stock-based compensation $ 2,175,291 $ 1,836,673 Amortization of internal use software development costs 1,999,641 1,755,520 Federal benefit of state uncertain tax positions 1,110,917 767,867 Accrued vacation 894,591 854,463 State net operating loss carryforwards 457,485 341,794 Deferred rent 233,326 224,187 Allowance for doubtful accounts 178,015 184,675 Other 326,138 48,529 7,375,404 6,013,708 Less: Valuation allowance (412,821 ) (332,863 ) Total 6,962,583 5,680,845 Deferred tax liabilities: Depreciation & capitalized internal use software and development costs (4,421,900 ) (5,056,061 ) Nonrecurring gain on acquisition of business (1,119,230 ) (1,121,326 ) Total (5,541,130 ) (6,177,387 ) Net deferred tax asset (liability) $ 1,421,453 $ (496,542 )
Statutory Federal Income Tax Rate and Effective Income Tax Rate Reconciliation	The following table reconciles the statutory federal income tax rate and the effective income tax rate indicated by the consolidated statements of income: Year Ended December 31, 2015 2014 2013 Statutory federal income tax rate 35.0 % 35.0 % 35.0 % State income taxes 2.1 2.2 3.2 Nondeductible expenses 1.0 1.2 1.4 Uncertain tax positions 0.9 1.1 1.2 Federal and state tax credits (1.2 ) (1.2 ) (2.0 ) Other (0.2 ) (0.3 ) 0.2 Effective federal and state income tax rate 37.6 % 38.0 % 39.0 %
Reconciliation of Unrecognized Income Tax Benefits	The following table provides a reconciliation of the beginning and ending amount of the consolidated liability for unrecognized income tax benefits (included in other long-term liabilities in the consolidated balance sheets) for the years ended December 31, 2015, 2014 and 2013: 2015 2014 2013 Balance at January 1 $ 2,797,671 $ 1,760,434 $ 688,575 Additions for tax positions of current years 1,093,963 1,072,333 632,309 Additions for tax positions of prior years 338,123 112,459 439,550 Expiration of the statute of limitations (365,762 ) (126,918 ) - Reductions for tax positions of prior years (142,973 ) (20,637 ) - Balance at December 31 $ 3,721,022 $ 2,797,671 $ 1,760,434

STOCK-BASED COMPENSATION AND 26

STOCK-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS (Tables)	12 Months Ended
	Dec. 31, 2015
Stock-based Compensation Expense	The following table presents stock-based compensation expense included in the Company’s consolidated statements of income: Year Ended December 31, 2015 2014 2013 Cost of portal revenues, exclusive of depreciation & amortization $ 1,404,093 $ 1,311,827 $ 1,100,396 Cost of software & services revenues, exclusive of depreciation & amortization 82,814 47,105 48,128 Selling & administrative 4,953,934 4,744,966 2,877,436 Stock-based compensation expense before income taxes 6,440,841 6,103,898 4,025,960 Income tax benefit (2,423,029 ) (2,320,499 ) (1,571,867 ) Net stock-based compensation expense $ 4,017,812 $ 3,783,399 $ 2,454,093
Restricted Stock Activity	A summary of restricted stock activity for the year ended December 31, 2015 is presented below: Restricted Shares Weighted Average Grant Date Fair Value Outstanding at January 1, 2015 993,453 $ 16.28 Granted 432,694 16.80 Vested (364,380 ) 15.02 Canceled (136,737 ) 15.27 Outstanding at December 31, 2015 925,030 17.17
Assumptions Used to Estimate Grant Date Fair Value Using Black-Scholes Model	The fair values of the offerings were estimated on the dates of grant using the Black-Scholes model using the assumptions in the following table. March 31, 2016 Offering March 31, 2015 Offering March 31, 2014 Offering Risk-free interest rate 0.27 % 0.13 % 0.14 % Expected dividend yield 3.07 % 3.08 % 3.73 % Expected life 1.0 year 1.0 year 1.0 year Expected stock price volatility 37.86 % 35.97 % 28.84 % Weighted average fair value of ESPP rights $ 4.88 $ 5.38 $ 4.59

REPORTABLE SEGMENTS AND RELAT27

REPORTABLE SEGMENTS AND RELATED INFORMATION (Tables)	12 Months Ended
	Dec. 31, 2015
Summary of Financial Information for Reportable Segments	The table below reflects summarized financial information for the Company’s reportable and operating segments for the years ended December 31: Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2015 Revenues $ 273,502,323 $ 18,873,973 $ - $ 292,376,296 Costs & expenses 168,166,011 5,431,967 43,098,323 216,696,301 Depreciation & amortization 4,648,870 47,015 3,689,528 8,385,413 Operating income (loss) before income taxes $ 100,687,442 $ 13,394,991 $ (46,787,851 ) $ 67,294,582 2014 Revenues $ 255,743,418 $ 16,353,153 $ - $ 272,096,571 Costs & expenses 156,185,335 4,783,606 38,936,541 199,905,482 Depreciation & amortization 5,305,302 36,999 3,834,717 9,177,018 Operating income (loss) before income taxes $ 94,252,781 $ 11,532,548 $ (42,771,258 ) $ 63,014,071 2013 Revenues $ 235,183,005 $ 14,095,660 $ - $ 249,278,665 Costs & expenses 147,007,246 4,498,233 36,881,346 188,386,825 Depreciation & amortization 4,962,692 53,475 3,316,922 8,333,089 Operating income (loss) before income taxes $ 83,213,067 $ 9,543,952 $ (40,198,268 ) $ 52,558,751

UNAUDITED QUARTERLY OPERATING28

UNAUDITED QUARTERLY OPERATING RESULTS (Tables)	12 Months Ended
	Dec. 31, 2015
Quarterly Operating Results	The unaudited quarterly information below is subject to seasonal fluctuations resulting in lower portal revenues in the fourth quarter of each calendar year (on an individual portal basis, and excluding revenues from new outsourced government portal contracts awarded or acquired during the year), due to the lower number of business days in the quarter and a lower volume of business-to-government and citizen-to-government transactions during the holiday periods. 2015 Three Months Ended Year Ended March 31, 2015 June 30, 2015 September 30, 2015 December 31, 2015 December 31, 2015 Revenues: Portal revenues $ 65,913,898 $ 71,030,846 $ 70,122,162 $ 66,435,417 $ 273,502,323 Software & services revenues 4,444,725 4,781,930 4,924,120 4,723,198 18,873,973 Total revenues 70,358,623 75,812,776 75,046,282 71,158,615 292,376,296 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 41,494,301 42,815,102 41,057,942 42,798,666 168,166,011 Cost of software & services revenues, exclusive of depreciation & amortization 1,289,860 1,321,259 1,364,726 1,456,122 5,431,967 Selling & administrative 10,537,491 10,818,680 10,576,445 11,165,707 43,098,323 Depreciation & amortization 2,292,118 2,303,571 2,116,319 1,673,405 8,385,413 Total operating expenses 55,613,770 57,258,612 55,115,432 57,093,900 225,081,714 Operating income before income taxes 14,744,853 18,554,164 19,930,850 14,064,715 67,294,582 Income tax provision 5,803,949 7,250,724 7,180,660 5,080,726 25,316,059 Net income $ 8,940,904 $ 11,303,440 $ 12,750,190 $ 8,983,989 $ 41,978,523 Basic net income per share $ 0.14 $ 0.17 $ 0.19 $ 0.13 $ 0.63 Diluted net income per share $ 0.14 $ 0.17 $ 0.19 $ 0.13 $ 0.63 Weighted average shares outstanding: Basic 65,387,427 65,587,822 65,617,812 65,621,684 65,554,655 Diluted 65,387,427 65,587,822 65,636,436 65,715,951 65,639,682 2014 Three Months Ended Year Ended March 31, 2014 June 30, 2014 September 30, 2014 December 31, 2014 December 31, 2014 Revenues: Portal revenues $ 61,482,452 $ 66,807,907 $ 65,304,664 $ 62,148,395 $ 255,743,418 Software & services revenues 3,915,233 4,345,879 4,222,534 3,869,507 16,353,153 Total revenues 65,397,685 71,153,786 69,527,198 66,017,902 272,096,571 Operating expenses: Cost of portal revenues, exclusive of depreciation & amortization 37,559,503 39,550,094 39,090,865 39,984,873 156,185,335 Cost of software & services revenues, exclusive of depreciation & amortization 993,324 1,244,843 1,287,083 1,258,356 4,783,606 Selling & administrative 9,208,685 9,840,579 10,396,876 9,490,401 38,936,541 Depreciation & amortization 2,249,734 2,277,048 2,292,382 2,357,854 9,177,018 Total operating expenses 50,011,246 52,912,564 53,067,206 53,091,484 209,082,500 Operating income before income taxes 15,386,439 18,241,222 16,459,992 12,926,418 63,014,071 Income tax provision 6,010,054 7,213,057 6,098,567 4,634,174 23,955,852 Net income $ 9,376,385 $ 11,028,165 $ 10,361,425 $ 8,292,244 $ 39,058,219 Basic net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59 Diluted net income per share $ 0.14 $ 0.17 $ 0.16 $ 0.12 $ 0.59 Weighted average shares outstanding: Basic 65,056,725 65,244,575 65,287,702 65,301,797 65,223,549 Diluted 65,056,725 65,244,575 65,287,702 65,363,104 65,277,758

The Company - Additional Inform

The Company - Additional Information (Detail)	Dec. 31, 2015Categories
Nature Of Operations [Line Items]
Number of business channels	2

Summary of Significant Accoun30

Summary of Significant Accounting Policies - Additional Information (Detail) $ / shares in Units, shares in Millions

Nov. 02, 2015USD ($)$ / shares

Oct. 27, 2014USD ($)$ / shares

Oct. 28, 2013USD ($)$ / shares

Dec. 31, 2015USD ($)Categories

Sep. 30, 2015USD ($)

Jun. 30, 2015USD ($)

Mar. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Sep. 30, 2014USD ($)

Jun. 30, 2014USD ($)

Mar. 31, 2014USD ($)

Dec. 31, 2015USD ($)Categoriesshares

Dec. 31, 2014USD ($)shares

Dec. 31, 2013USD ($)$ / sharesshares

Significant Accounting Policies [Line Items]

Number of revenue and cost categories | Categories

2

2

Provision for losses on accounts receivable

$ 289,666

$ 414,042

$ 5,229,277

Non-cash charge per share after-tax | $ / shares

$ 0.05

Selling & administrative

$ 11,165,707

$ 10,576,445

$ 10,818,680

$ 10,537,491

$ 9,490,401

$ 10,396,876

$ 9,840,579

$ 9,208,685

43,098,323

38,936,541

$ 36,881,346

Special cash dividend declared, date

Nov. 2, 2015

Oct. 27, 2014

Oct. 28, 2013

Special cash dividend declared per share | $ / shares

$ 0.55

$ 0.50

$ 0.35

Special cash dividend record, date

Nov. 13, 2015

Nov. 7, 2014

Nov. 8, 2013

Special cash dividend paid

$ 36,455,955

$ 32,977,016

$ 22,982,447

36,455,955

32,977,016

$ 22,982,447

Special cash dividend paid, date

Jan. 4, 2016

Nov. 20, 2014

Jan. 2, 2014

Allowance for doubtful accounts

500,000

500,000

$ 500,000

500,000

Depreciation method

Depreciation is computed using the straight-line method over estimated useful live

Unearned revenues

900,000

$ 1,300,000

$ 900,000

$ 1,300,000

Unvested service-based restricted stock awards included in the calculation of earnings per share | shares

0.6

0.6

0.7

Decrease in current net deferred tax assets

$ 1,000,000

Internal use capitalized software

Significant Accounting Policies [Line Items]

Estimated economic useful life, in months

36 months

36 months

Legal Fees and Other Third Party Costs

Significant Accounting Policies [Line Items]

Selling & administrative

$ 4,000,000

Deposits Assets

Significant Accounting Policies [Line Items]

Cash subject to FDIC insurance

10,200,000

$ 10,200,000

Cash not subject to FDIC insurance

$ 88,200,000

$ 88,200,000

Furniture and Fixtures

Significant Accounting Policies [Line Items]

Estimated useful lives

8 years

8 years

8 years

Equipment | Minimum

Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

3 years

3 years

Equipment | Maximum

Significant Accounting Policies [Line Items]

Estimated useful lives

10 years

10 years

10 years

Purchased Software | Minimum

Significant Accounting Policies [Line Items]

Estimated useful lives

3 years

3 years

3 years

Purchased Software | Maximum

Significant Accounting Policies [Line Items]

Estimated useful lives

5 years

5 years

5 years

Leasehold Improvements

Significant Accounting Policies [Line Items]

Estimated life

The lesser of the term of the lease or 5 years

Leasehold Improvements | Maximum

Significant Accounting Policies [Line Items]

Estimated useful lives

5 years

5 years

5 years

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings per Share (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Numerator:
Net income	$ 8,983,989	$ 12,750,190	$ 11,303,440	$ 8,940,904	$ 8,292,244	$ 10,361,425	$ 11,028,165	$ 9,376,385	$ 41,978,523	$ 39,058,219	$ 32,038,091
Less: Income allocated to participating securities									(384,246)	(368,668)	(325,182)
Net income available to common stockholders									$ 41,594,277	$ 38,689,551	$ 31,712,909
Denominator:
Weighted average shares - basic	65,621,684	65,617,812	65,587,822	65,387,427	65,301,797	65,287,702	65,244,575	65,056,725	65,554,655	65,223,549	64,888,978
Performance-based restricted stock awards									85,027	54,209	65,388
Weighted average shares - diluted	65,715,951	65,636,436	65,587,822	65,387,427	65,363,104	65,287,702	65,244,575	65,056,725	65,639,682	65,277,758	64,954,366
Basic net income per share:
Net income	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49
Diluted net income per share:
Net income	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49

Outsourced Government Contrac32

Outsourced Government Contracts - Additional Information (Detail)

3 Months Ended

9 Months Ended

12 Months Ended

Dec. 31, 2015USD ($)ContractRenewalOptions

Sep. 30, 2015USD ($)

Jun. 30, 2015USD ($)RenewalOptions

Mar. 31, 2015USD ($)

Dec. 31, 2014USD ($)

Sep. 30, 2014USD ($)

Jun. 30, 2014USD ($)

Mar. 31, 2014USD ($)

Sep. 30, 2015

Dec. 31, 2015USD ($)ContractRenewalOptions

Dec. 31, 2014USD ($)

Dec. 31, 2013USD ($)

Contracts [Line Items]

Number of portal outsourcing contracts that can be terminated by the other party without cause on period of notice | Contract

18

18

Performance bond commitments

$ 6,100,000

$ 6,100,000

Number of outsourced portal services or software development and services contracts with expiration date within a 12-month period | Contract

10

10

Revenues

$ 71,158,615

$ 75,046,282

$ 75,812,776

$ 70,358,623

$ 66,017,902

$ 69,527,198

$ 71,153,786

$ 65,397,685

$ 292,376,296

$ 272,096,571

$ 249,278,665

Portal revenues

$ 66,435,417

$ 70,122,162

$ 71,030,846

$ 65,913,898

$ 62,148,395

$ 65,304,664

$ 66,807,907

$ 61,482,452

$ 273,502,323

255,743,418

235,183,005

New Mexico Interactive, LLC

Contracts [Line Items]

Contract period

1 year

Contract renewal option | RenewalOptions

2

NICUSA, AZ Division

Contracts [Line Items]

Contract Expiration Date

Mar. 26, 2014

NICUSA, AZ Division | Consolidated Revenues

Contracts [Line Items]

Revenues

800,000

3,700,000

Delaware Interactive, LLC

Contracts [Line Items]

Portal revenues

$ 600,000

$ 2,400,000

$ 2,200,000

Customer Concentration Risk | Consolidated Revenues

Contracts [Line Items]

Concentration risk percentage

64.00%

Government Contracts Concentration Risk | Consolidated Revenues

Contracts [Line Items]

Concentration risk percentage

22.00%

Montana | Extended Term

Contracts [Line Items]

Contract period

2 years

IDAHO | Extended Term

Contracts [Line Items]

Contract period

2 years

State of Alabama | Extended Term

Contracts [Line Items]

Contract period

1 year

TENNESSEE | Extended Term

Contracts [Line Items]

Contract period

1 year

State of Oklahoma

Contracts [Line Items]

Contract period

1 year

Contract renewal option | RenewalOptions

4

State of Oklahoma | Renewal Term

Contracts [Line Items]

Contract period

1 year

State of New Jersey

Contracts [Line Items]

Contract period

5 years

Contract renewal option | RenewalOptions

2

State of New Jersey | Renewal Term

Contracts [Line Items]

Contract period

1 year

State of Utah | Extended Term

Contracts [Line Items]

Contract period

3 years

KENTUCKY | Extended Term

Contracts [Line Items]

Contract period

1 year

State of Maryland | Extended Term

Contracts [Line Items]

Contract period

1 year

US Department of Transportation, Federal Motor Carrier Safety Administration

Contracts [Line Items]

Contract Expiration Date

Aug. 31, 2016

State of Maine | Extended Term

Contracts [Line Items]

Contract period

2 years

State of Texas | Extended Term

Contracts [Line Items]

Contract period

1 year

State of Nebraska

Contracts [Line Items]

Contract period

3 years

Contract renewal option | RenewalOptions

2

State of Nebraska | Renewal Term

Contracts [Line Items]

Contract period

1 year

State of Hawaii | Extended Term

Contracts [Line Items]

Contract period

3 years

State of Mississippi | Extended Term

Contracts [Line Items]

Contract period

2 years

Summary of Enterprise-Wide Port

Summary of Enterprise-Wide Portal Outsourcing Services to Multiple Governments Agencies (Detail)	12 Months Ended
	Dec. 31, 2015
Connecticut Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.ct.gov (Connecticut)
Year Service Commenced	2,014
Contract Expiration Date	Jan. 9, 2017
Connecticut Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jan. 9, 2020
Wisconsin Interactive Network, LLC
Contracts [Line Items]
Portal Website (State)	www.wisconsin.gov (Wisconsin)
Year Service Commenced	2,013
Contract Expiration Date	May 13, 2018
Wisconsin Interactive Network, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	May 13, 2023
Pennsylvania Interactive LLC
Contracts [Line Items]
Portal Website (State)	www.pa.gov (Pennsylvania)
Year Service Commenced	2,012
Contract Expiration Date	Nov. 30, 2017
Pennsylvania Interactive LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Nov. 30, 2022
NICUSA, OR Division
Contracts [Line Items]
Portal Website (State)	www.oregon.gov (Oregon)
Year Service Commenced	2,011
Contract Expiration Date	Nov. 22, 2021
NICUSA, MD Division
Contracts [Line Items]
Portal Website (State)	www.maryland.gov (Maryland)
Year Service Commenced	2,011
Contract Expiration Date	Aug. 10, 2017
NICUSA, MD Division | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Aug. 10, 2019
Mississippi Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.ms.gov (Mississippi)
Year Service Commenced	2,011
Contract Expiration Date	Dec. 31, 2017
Mississippi Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Dec. 31, 2021
New Jersey Interactive LLC
Contracts [Line Items]
Portal Website (State)	www.nj.gov (New Jersey)
Year Service Commenced	2,009
Contract Expiration Date	May 1, 2020
New Jersey Interactive LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	May 1, 2022
Texas NICUSA, LLC
Contracts [Line Items]
Portal Website (State)	www.Texas.gov (Texas)
Year Service Commenced	2,009
Contract Expiration Date	Aug. 31, 2018
West Virginia Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.WV.gov (West Virginia)
Year Service Commenced	2,007
Contract Expiration Date	Mar. 31, 2016
Vermont Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.Vermont.gov (Vermont)
Year Service Commenced	2,006
Contract Expiration Date	Jun. 8, 2016
Vermont Information Consortium, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jun. 8, 2019
Colorado Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Colorado.gov (Colorado)
Year Service Commenced	2,005
Contract Expiration Date	Apr. 30, 2019
Colorado Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Apr. 30, 2023
South Carolina Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.SC.gov (South Carolina)
Year Service Commenced	2,005
Contract Expiration Date	Jul. 15, 2019
South Carolina Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jul. 15, 2021
Kentucky Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Kentucky.gov (Kentucky)
Year Service Commenced	2,003
Contract Expiration Date	Aug. 31, 2016
Alabama Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Alabama.gov (Alabama)
Year Service Commenced	2,002
Contract Expiration Date	Mar. 1, 2016
Alabama Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Mar. 1, 2017
Rhode Island Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.RI.gov (Rhode Island)
Year Service Commenced	2,001
Contract Expiration Date	Jul. 1, 2017
Rhode Island Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jul. 1, 2019
Oklahoma Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.OK.gov (Oklahoma)
Year Service Commenced	2,001
Contract Expiration Date	Mar. 31, 2016
Oklahoma Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Mar. 31, 2020
Montana Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.MT.gov (Montana)
Year Service Commenced	2,001
Contract Expiration Date	Dec. 31, 2017
Montana Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Dec. 31, 2020
NICUSA, TN Division
Contracts [Line Items]
Portal Website (State)	www.TN.gov (Tennessee)
Year Service Commenced	2,000
Contract Expiration Date	Mar. 31, 2017
Hawaii Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.eHawaii.gov (Hawaii)
Year Service Commenced	2,000
Contract Expiration Date	Jan. 3, 2019
Hawaii Information Consortium, LLC | Renewal Term
Contracts [Line Items]
Term of contract	3-year renewal options
Idaho Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.Idaho.gov (Idaho)
Year Service Commenced	2,000
Contract Expiration Date	Jun. 30, 2017
Utah Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Utah.gov (Utah)
Year Service Commenced	1,999
Contract Expiration Date	Jun. 5, 2019
Maine Information Network, LLC
Contracts [Line Items]
Portal Website (State)	www.Maine.gov (Maine)
Year Service Commenced	1,999
Contract Expiration Date	Jul. 1, 2018
Arkansas Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.Arkansas.gov (Arkansas)
Year Service Commenced	1,997
Contract Expiration Date	Jun. 30, 2018
Iowa Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Iowa.gov (Iowa)
Year Service Commenced	1,997
Contract Expiration Date	Jun. 30, 2016
Iowa Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jun. 30, 2020
Indiana Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.IN.gov (Indiana)
Year Service Commenced	1,995
Contract Expiration Date	Jul. 31, 2016
Nebraska Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Nebraska.gov (Nebraska)
Year Service Commenced	1,995
Contract Expiration Date	Apr. 1, 2019
Nebraska Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Apr. 1, 2021
Kansas Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.Kansas.gov (Kansas)
Year Service Commenced	1,992
Contract Expiration Date	Dec. 31, 2021
Kansas Information Consortium, LLC | Renewal Term
Contracts [Line Items]
Term of contract	annual 1-year renewal options

Intangible Assets, Net (Detail)

Intangible Assets, Net (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Finite-Lived Intangible Assets [Line Items]
Finite Lived Intangible Assets Future Amortization Expense Total	$ 1,469,970
Internal use capitalized software
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	7,657,843	$ 6,666,300
Accumulated Amortization	(5,391,168)	(4,272,596)
Finite Lived Intangible Assets Future Amortization Expense Total	$ 2,266,675	$ 2,393,704

Intangible Assets, Net - Additi

Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Internal use capitalized software
Finite-Lived Intangible Assets [Line Items]
Amortization of internal use capitalized software	$ 1.1	$ 1	$ 0.6

Estimated Amortization Expense

Estimated Amortization Expense in Future Years (Detail)	Dec. 31, 2015USD ($)
Finite-Lived Intangible Assets [Line Items]
2,016	$ 899,629
2,017	468,474
2,018	101,867
Finite Lived Intangible Assets Future Amortization Expense Total	$ 1,469,970

Property and Equipment, Net (De

Property and Equipment, Net (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Property, Plant and Equipment [Line Items]
Equipment	$ 29,573,499	$ 28,714,059
Purchased software	11,269,384	10,972,449
Furniture and fixtures	5,127,814	4,924,108
Leasehold improvements	1,956,822	1,402,487
Property and equipment, Gross	47,927,519	46,013,103
Less accumulated depreciation	(38,594,728)	(33,765,863)
Property and equipment, net	$ 9,332,791	$ 12,247,240

Property and Equipment, Net - A

Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 7.3	$ 8.2	$ 7.7

Debt Obligations and Collater39

Debt Obligations and Collateral Requirements - Additional Information (Detail) - USD ($) $ in Millions	Dec. 14, 2015	Jul. 09, 2015	Dec. 31, 2015
Debt Instrument [Line Items]
Debt instrument, covenant compliance			The Company was in compliance with each of these covenants at December 31, 2015.
Letters of credit, maximum effective in force period			1 year
Performance bond commitments			$ 6.1
Amount that unrestricted cash would have decreased had the Company been required to post 100% cash collateral for the face value of all performance bonds, letters of credit and its line of credit in conjunction with a corporate credit card agreement			8.3
First Amendment | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, amended expiration date		May 1, 2017
First Amendment | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is less than or equal to 1.25:1
Debt Instrument [Line Items]
Fees on outstanding letters of credit		1.15%
Consolidated leverage ratio		150.00%
First Amendment | Revolving Credit Facility | Letter of Credit | If the Company's consolidated leverage ratio is greater than 1.25:1
Debt Instrument [Line Items]
Fees on outstanding letters of credit		1.25%
Consolidated leverage ratio		150.00%
Unsecured Credit Agreement | Letter of Credit
Debt Instrument [Line Items]
Credit facility, available borrowing capacity			3.8
Unsecured Credit Agreement | Covenant Requirement
Debt Instrument [Line Items]
Consolidated leverage ratio		150.00%
Consolidated tangible net worth required		$ 36
Unsecured Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, outstanding letters of credit			1.2
Credit facility, available borrowing capacity			8.8
Credit facility, increase available capacity under the credit agreement			50
Credit card
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 1
Second Amendment | Revolving Credit Facility
Debt Instrument [Line Items]
Fees payable on outstanding letters of credit to daily amount available to be drawn under any letter of credit	1.00%
Second Amendment | Revolving Credit Facility | London Interbank Offered Rate (LIBOR)
Debt Instrument [Line Items]
Debt instrument, term			One-month term
Second Amendment | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Minimum
Debt Instrument [Line Items]
Debt instrument, variable rate	1.15%
Second Amendment | Revolving Credit Facility | London Interbank Offered Rate (LIBOR) | Maximum
Debt Instrument [Line Items]
Debt instrument, variable rate	1.25%

Future Minimum Lease Payments U

Future Minimum Lease Payments Under All Noncancellable Operating Leases (Detail)	Dec. 31, 2015USD ($)
Operating Leased Assets [Line Items]
2,016	$ 4,343,767
2,017	3,775,439
2,018	3,460,437
2,019	1,723,802
2,020	551,542
Thereafter	205,749
Total minimum lease payments	$ 14,060,736

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Commitments and Contingencies Disclosure [Line Items]
Rent expense for operating leases	$ 4.5	$ 4.3	$ 4.2

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($)	Nov. 02, 2015	Oct. 27, 2014	Oct. 28, 2013	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Stockholders Equity Note [Line Items]
Special cash dividend declared, date	Nov. 2, 2015	Oct. 27, 2014	Oct. 28, 2013
Special cash dividend record, date	Nov. 13, 2015	Nov. 7, 2014	Nov. 8, 2013
Special cash dividend declared per share	$ 0.55	$ 0.50	$ 0.35
Special cash dividend paid	$ 36,455,955	$ 32,977,016	$ 22,982,447	$ 36,455,955	$ 32,977,016	$ 22,982,447
Special cash dividend paid, date	Jan. 4, 2016	Nov. 20, 2014	Jan. 2, 2014
Common stock, shares outstanding	65,618,141	65,298,472	64,987,854	65,636,707	65,303,205
Dividend equivalent paid per share on unvested shares of restricted stock outstanding on the dividend record date granted under the Company's 2006 Stock Option and Incentive Plan	$ 0.55	$ 0.50	$ 0.35
Unvested shares of restricted stock on the dividend record date	665,414	655,499	676,281

Provision for Income Taxes (Det

Provision for Income Taxes (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Current income taxes:
Federal									$ 25,608,500	$ 23,161,061	$ 18,436,209
State									3,522,333	3,256,031	3,154,439
Total									29,130,833	26,417,092	21,590,648
Deferred income taxes:
Federal									(3,485,844)	(2,295,450)	(1,111,536)
State									(328,930)	(165,790)	41,548
Total									(3,814,774)	(2,461,240)	(1,069,988)
Total income tax provision	$ 5,080,726	$ 7,180,660	$ 7,250,724	$ 5,803,949	$ 4,634,174	$ 6,098,567	$ 7,213,057	$ 6,010,054	$ 25,316,059	$ 23,955,852	$ 20,520,660

Deferred Income Tax Assets and

Deferred Income Tax Assets and Liabilities (Detail) - USD ($)	Dec. 31, 2015	Dec. 31, 2014
Deferred tax assets:
Stock-based compensation	$ 2,175,291	$ 1,836,673
Amortization of internal use software development costs	1,999,641	1,755,520
Federal benefit of state uncertain tax positions	1,110,917	767,867
Accrued vacation	894,591	854,463
State net operating loss carryforwards	457,485	341,794
Deferred rent	233,326	224,187
Allowance for doubtful accounts	178,015	184,675
Other	326,138	48,529
Deferred Tax Assets, Gross, Total	7,375,404	6,013,708
Less: Valuation allowance	(412,821)	(332,863)
Total	6,962,583	5,680,845
Total	6,962,583	5,680,845
Deferred tax liabilities:
Depreciation & capitalized internal use software and development costs	(4,421,900)	(5,056,061)
Nonrecurring gain on acquisition of business	(1,119,230)	(1,121,326)
Total	(5,541,130)	(6,177,387)
Total	(5,541,130)	(6,177,387)
Net deferred tax liability		$ (496,542)
Net Deferred tax asset	$ 1,421,453

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Income Taxes [Line Items]
Deferred tax asset valuation allowance	$ 412,821	$ 332,863
Federal research and development tax credit	400,000	400,000	$ 800,000
Unrecognized tax benefits that if recognized would affect the annual effective tax rate	$ 2,600,000	$ 2,000,000	$ 1,300,000
Internal Revenue Service (IRS)
Income Taxes [Line Items]
Tax examinations	2,013
Remaining years subject to tax examination	The Company remains subject to U.S. federal examination for the tax years ended on or after December 31, 2013.
State income tax returns | Minimum
Income Taxes [Line Items]
Tax examination period	3 years
State income tax returns | Maximum
Income Taxes [Line Items]
Tax examination period	5 years

Statutory Federal Income Tax Ra

Statutory Federal Income Tax Rate and the Effective Income Tax Rate Reconciliation (Detail)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Statutory Federal Tax Rate [Line Items]
Statutory federal income tax rate	35.00%	35.00%	35.00%
State income taxes	2.10%	2.20%	3.20%
Nondeductible expenses	1.00%	1.20%	1.40%
Uncertain tax positions	0.90%	1.10%	1.20%
Federal and state tax credits	(1.20%)	(1.20%)	(2.00%)
Other	(0.20%)	(0.30%)	0.20%
Effective federal and state income tax rate	37.60%	38.00%	39.00%

Reconciliation of Unrecognized

Reconciliation of Unrecognized Income Tax Benefits (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Reconciliation of Unrecognized Tax Benefits [Line Items]
Beginning balance	$ 2,797,671	$ 1,760,434	$ 688,575
Additions for tax positions of current years	1,093,963	1,072,333	632,309
Additions for tax positions of prior years	338,123	112,459	439,550
Expiration of the statute of limitations	(365,762)	(126,918)
Reductions for tax positions of prior years	(142,973)	(20,637)
Ending balance	$ 3,721,022	$ 2,797,671	$ 1,760,434

Stock Based Compensation Expens

Stock Based Compensation Expenses (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	$ 6,440,841	$ 6,103,898	$ 4,025,960
Income tax benefit	(2,423,029)	(2,320,499)	(1,571,867)
Net stock-based compensation expense	4,017,812	3,783,399	2,454,093
Cost of portal revenues, exclusive of depreciation & amortization
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	1,404,093	1,311,827	1,100,396
Cost of software & services revenues, exclusive of depreciation & amortization
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	82,814	47,105	48,128
Selling & administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	$ 4,953,934	$ 4,744,966	$ 2,877,436

Stock-Based Compensation and 49

Stock-Based Compensation and Employee Benefit Plans - Additional Information (Detail) - USD ($)	12 Months Ended
	Dec. 31, 2015	Mar. 31, 2015	Dec. 31, 2014	Mar. 31, 2014	Dec. 31, 2013	Mar. 31, 2013	May. 31, 2014	May. 30, 2014
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation shares authorized for future grant	4,681,841
Share based compensation shares authorized							15,825,223	14,286,754
Effective date of retirement	Dec. 31, 2015
Tax deductions relating to stock-based compensation	$ 412,617		$ 1,184,860		$ 1,302,005
Percentage of compensation that eligible employees can use to purchase common stock, maximum	15.00%		15.00%		15.00%
Compensation Amount that eligible employees can use to purchase common stock	$ 25,000		$ 25,000		$ 25,000
Percentage of fair market value eligible employees can purchase common stock as defined, minimum	85.00%		85.00%		85.00%
Proceeds from employee common stock purchases	$ 1,131,389		$ 1,106,777		$ 904,471
Employee Stock Purchase Plan
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation shares authorized	2,321,688
Employee stock purchase plan, shares purchased		75,328		68,101		87,578
Employee stock purchase plan, per share price		$ 15.02		$ 16.25		$ 10.33
Proceeds from employee common stock purchases		$ 1,100,000		$ 1,100,000		$ 900,000
Closing fair market value of common stock on first day of current offering period		$ 17.48
Defined Contribution 401(k) Profit Sharing Plan
Stock Based Compensation And Employee Benefit Plans [Line Items]
Matching contribution to 401k, maximum	5.00%
Company matching contribution expense	$ 2,200,000		$ 2,100,000		$ 1,800,000
Performance Shares
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares granted in period	109,705
Share based compensation award granted in period grant-date fair value	$ 1,900,000
Share based compensation award vesting period from date of grant	3 years
Share based compensation award end date of the a three-year performance period	Dec. 31, 2017
Performance criteria over the performance period	The actual number of shares earned will be based on the Company's performance related to the following performance criteria over the performance period Operating income growth (three-year compound annual growth rate); Total consolidated revenue growth (three-year compound annual growth rate); and Cash flow return on invested capital, excluding income taxes paid (three-year average).
Performance Shares | Performance Period 2012 to 2014
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares earned in period			67,239
Share based compensation dividend earned on shares subject to the awards, shares			4,043
Share based compensation performance-based restricted stock awards, vesting date			Jan. 30, 2015
Share based compensation performance-based restricted stock awards, grant date			Jan. 30, 2012
Performance Shares | Performance Period 2013 to 2015
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares earned in period	96,732
Share based compensation dividend earned on shares subject to the awards, shares	6,990
Share based compensation performance-based restricted stock awards, vesting date	Feb. 5, 2016
Share based compensation performance-based restricted stock awards, grant date	Feb. 5, 2013
Performance Shares | Performance Period 2011 to 2013
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares earned in period					85,365
Share based compensation dividend earned on shares subject to the awards, shares					4,350
Share based compensation performance-based restricted stock awards, vesting date					Mar. 7, 2014
Share based compensation performance-based restricted stock awards, grant date					Mar. 7, 2011
Restricted Stock
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares granted in period	432,694
Share based compensation fair value of restricted stock vested	$ 5,500,000		$ 4,100,000		$ 3,500,000
Share based compensation award granted in period weighted average fair value at grant date, per share	$ 16.80		$ 19.05		$ 16.54
Unrecognized compensation related to equity-based awards that have yet to vest	$ 6,900,000
Unrecognized compensation costs are expected to be recognized over a weighted average period (years)	2 years 4 months 24 days
Number of forfeited shares	136,737
Restricted Stock | Service Based Awards | Employees And Executives
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares granted in period	273,327
Share based compensation award granted in period grant-date fair value	$ 4,600,000
Share based compensation award vesting period from date of grant	1 year
Restricted Stock | Service Based Awards | Employees And Executives | Annual installment
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award annual installment vesting rate	25.00%
Restricted Stock | Service Based Awards | Non Employee Directors
Stock Based Compensation And Employee Benefit Plans [Line Items]
Share based compensation award shares granted in period	45,619
Share based compensation award granted in period grant-date fair value	$ 800,000
Share based compensation award vesting period from date of grant	1 year
Service Based Restricted Stock
Stock Based Compensation And Employee Benefit Plans [Line Items]
Accelerated vesting of unvested service-based restricted stock	21,813
Number of forfeited shares	5,269
Performance Based Restricted Stock
Stock Based Compensation And Employee Benefit Plans [Line Items]
Number of forfeited shares	33,651

Restricted Stock Activity (Deta

Restricted Stock Activity (Detail) - Restricted Stock - $ / shares	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Number of Shares
Outstanding beginning of period	993,453
Granted	432,694
Vested	(364,380)
Canceled	(136,737)
Outstanding at end of period	925,030	993,453
Weighted-Average Grant Date Fair Value
Outstanding beginning of period	$ 16.28
Granted	16.80	$ 19.05	$ 16.54
Vested	15.02
Canceled	15.27
Outstanding at end of period	$ 17.17	$ 16.28

Assumptions Used to Estimate Gr

Assumptions Used to Estimate Grant Date Fair Value Using the Black-Scholes Model (Detail) - $ / shares	12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Mar. 31, 2014
Employee Stock Purchase Plan, Fair Value Assumptions, Method Used [Line Items]
Risk-free interest rate		0.13%	0.14%
Expected dividend yield		3.08%	3.73%
Expected life		1 year	1 year
Expected stock price volatility		35.97%	28.84%
Weighted average fair value of ESPP rights		$ 5.38	$ 4.59
Scenario, Forecast
Employee Stock Purchase Plan, Fair Value Assumptions, Method Used [Line Items]
Risk-free interest rate	0.27%
Expected dividend yield	3.07%
Expected life	1 year
Expected stock price volatility	37.86%
Weighted average fair value of ESPP rights	$ 4.88

Reportable Segments and Relat52

Reportable Segments and Related Information - Additional Information (Detail) - Segment	12 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Number of reportable segments	1
Customer Concentration Risk | Consolidated Revenues
Segment Reporting Information [Line Items]
Concentration risk percentage	64.00%
Customer Concentration Risk | Consolidated Revenues | Data Resellers
Segment Reporting Information [Line Items]
Concentration risk percentage	23.00%	24.00%	22.00%
Customer Concentration Risk | Accounts Receivable | Data Resellers
Segment Reporting Information [Line Items]
Concentration risk percentage	17.00%	24.00%
Product Concentration Risk | Consolidated Revenues | Outsourced Portals - DMV Transaction - Based
Segment Reporting Information [Line Items]
Concentration risk percentage	35.00%	35.00%	34.00%
Product Concentration Risk | Consolidated Revenues | Motor Vehicle Registration And Licensing
Segment Reporting Information [Line Items]
Concentration risk percentage	13.00%	12.00%	13.00%
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues
Segment Reporting Information [Line Items]
Concentration risk percentage	21.00%	22.00%	23.00%

Summary of Financial Informatio

Summary of Financial Information for Reportable Segments (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Segment Reporting Information [Line Items]
Revenues	$ 71,158,615	$ 75,046,282	$ 75,812,776	$ 70,358,623	$ 66,017,902	$ 69,527,198	$ 71,153,786	$ 65,397,685	$ 292,376,296	$ 272,096,571	$ 249,278,665
Costs & expenses									216,696,301	199,905,482	188,386,825
Depreciation & amortization	$ 1,673,405	$ 2,116,319	$ 2,303,571	$ 2,292,118	$ 2,357,854	$ 2,292,382	$ 2,277,048	$ 2,249,734	8,385,413	9,177,018	8,333,089
Operating income (loss) before income taxes									67,294,582	63,014,071	52,558,751
Total segment operating income | Outsourced Portals
Segment Reporting Information [Line Items]
Revenues									273,502,323	255,743,418	235,183,005
Costs & expenses									168,166,011	156,185,335	147,007,246
Depreciation & amortization									4,648,870	5,305,302	4,962,692
Operating income (loss) before income taxes									100,687,442	94,252,781	83,213,067
Total segment operating income | Other Software & Services
Segment Reporting Information [Line Items]
Revenues									18,873,973	16,353,153	14,095,660
Costs & expenses									5,431,967	4,783,606	4,498,233
Depreciation & amortization									47,015	36,999	53,475
Operating income (loss) before income taxes									13,394,991	11,532,548	9,543,952
Other Reconciling Items
Segment Reporting Information [Line Items]
Costs & expenses									43,098,323	38,936,541	36,881,346
Depreciation & amortization									3,689,528	3,834,717	3,316,922
Operating income (loss) before income taxes									$ (46,787,851)	$ (42,771,258)	$ (40,198,268)

Quarterly Operating Results (De

Quarterly Operating Results (Detail) - USD ($)	3 Months Ended								12 Months Ended
	Dec. 31, 2015	Sep. 30, 2015	Jun. 30, 2015	Mar. 31, 2015	Dec. 31, 2014	Sep. 30, 2014	Jun. 30, 2014	Mar. 31, 2014	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2013
Revenues:
Portal revenues	$ 66,435,417	$ 70,122,162	$ 71,030,846	$ 65,913,898	$ 62,148,395	$ 65,304,664	$ 66,807,907	$ 61,482,452	$ 273,502,323	$ 255,743,418	$ 235,183,005
Software & services revenues	4,723,198	4,924,120	4,781,930	4,444,725	3,869,507	4,222,534	4,345,879	3,915,233	18,873,973	16,353,153	14,095,660
Total revenues	71,158,615	75,046,282	75,812,776	70,358,623	66,017,902	69,527,198	71,153,786	65,397,685	292,376,296	272,096,571	249,278,665
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization	42,798,666	41,057,942	42,815,102	41,494,301	39,984,873	39,090,865	39,550,094	37,559,503	168,166,011	156,185,335	147,007,246
Cost of software & services revenues, exclusive of depreciation & amortization	1,456,122	1,364,726	1,321,259	1,289,860	1,258,356	1,287,083	1,244,843	993,324	5,431,967	4,783,606	4,498,233
Selling & administrative	11,165,707	10,576,445	10,818,680	10,537,491	9,490,401	10,396,876	9,840,579	9,208,685	43,098,323	38,936,541	36,881,346
Depreciation & amortization	1,673,405	2,116,319	2,303,571	2,292,118	2,357,854	2,292,382	2,277,048	2,249,734	8,385,413	9,177,018	8,333,089
Total operating expenses	57,093,900	55,115,432	57,258,612	55,613,770	53,091,484	53,067,206	52,912,564	50,011,246	225,081,714	209,082,500	196,719,914
Operating income before income taxes	14,064,715	19,930,850	18,554,164	14,744,853	12,926,418	16,459,992	18,241,222	15,386,439	67,294,582	63,014,071
Income tax provision	5,080,726	7,180,660	7,250,724	5,803,949	4,634,174	6,098,567	7,213,057	6,010,054	25,316,059	23,955,852	20,520,660
Net income	$ 8,983,989	$ 12,750,190	$ 11,303,440	$ 8,940,904	$ 8,292,244	$ 10,361,425	$ 11,028,165	$ 9,376,385	$ 41,978,523	$ 39,058,219	$ 32,038,091
Basic net income per share	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49
Diluted net income per share	$ 0.13	$ 0.19	$ 0.17	$ 0.14	$ 0.12	$ 0.16	$ 0.17	$ 0.14	$ 0.63	$ 0.59	$ 0.49
Weighted average shares outstanding:
Basic	65,621,684	65,617,812	65,587,822	65,387,427	65,301,797	65,287,702	65,244,575	65,056,725	65,554,655	65,223,549	64,888,978
Diluted	65,715,951	65,636,436	65,587,822	65,387,427	65,363,104	65,287,702	65,244,575	65,056,725	65,639,682	65,277,758	64,954,366