Nic (EGOV) 10-Q 2 May 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 14, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q1
Trading Symbol	EGOV
Entity Registrant Name	NIC INC
Entity Central Index Key	1,065,332
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		66,218,190

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash	$ 123,561	$ 127,009
Trade accounts receivable, net	83,842	82,722
Prepaid expenses & other current assets	12,572	15,033
Total current assets	219,975	224,764
Property and equipment, net	9,571	9,726
Intangible assets, net	4,104	3,588
Deferred income taxes, net	1,395	2,307
Other assets	1,970	477
Total assets	237,015	240,862
Current liabilities:
Accounts payable	63,463	73,252
Accrued expenses	19,733	23,395
Other current liabilities	3,298	3,150
Total current liabilities	86,494	99,797
Other long-term liabilities	7,745	7,162
Total liabilities	94,239	106,959
Commitments and contingencies (Notes 1 and 2)
Stockholders' equity:
Common stock, $0.0001 par, 200,000 shares authorized, 66,218 and 65,982 shares issued and outstanding	7	7
Additional paid-in capital	107,304	106,669
Retained earnings	35,465	27,227
Total stockholders' equity	142,776	133,903
Total liabilities and stockholders' equity	$ 237,015	$ 240,862

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2017	Dec. 31, 2016
Common stock, par	$ 0.0001	$ 0.0001
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	66,218,000	65,982,000
Common stock, shares outstanding	66,218,000	65,982,000

CONSOLIDATED STATEMENTS OF INCO

CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Portal revenues	$ 77,198	$ 73,197
Software & services revenues	5,979	5,193
Total revenues	83,177	78,390
Operating expenses:
Cost of portal revenues, exclusive of depreciation & amortization	47,032	43,615
Cost of software & services revenues, exclusive of depreciation & amortization	1,763	1,413
Selling & administrative	11,660	11,342
Depreciation & amortization	1,613	1,664
Total operating expenses	62,068	58,034
Operating income (loss) before income taxes	21,109	20,356
Income tax provision (Notes 1 and 6)	7,124	7,462
Net income	$ 13,985	$ 12,894
Basic net income per share	$ 0.21	$ 0.19
Diluted net income per share	$ 0.21	$ 0.19
Weighted average shares outstanding:
Basic	66,046	65,739
Diluted	66,046	65,739

CONSOLIDATED STATEMENT OF CHANG

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - 3 months ended Mar. 31, 2017 - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-in Capital	Retained Earnings
Beginning Balance (in shares) (Previously Reported) at Dec. 31, 2016		65,982
Beginning Balance (in shares) at Dec. 31, 2016	65,982	65,982
Beginning Balance (Previously Reported) at Dec. 31, 2016	$ 133,903	$ 7	$ 106,669	$ 27,227
Beginning Balance (Cumulative effect of adoption of new accounting standard)			409	(409)
Beginning Balance at Dec. 31, 2016	133,903	$ 7	107,078	26,818
Net income	13,985			13,985
Restricted stock vestings (in shares)		270
Restricted stock vestings	107		107
Dividends declared	(5,342)			(5,342)
Dividend equivalents on performance-based restricted stock awards	(27)			(27)
Dividend equivalents cancelled upon forfeiture of performance-based restricted stock awards	31			31
Shares issuable in lieu of dividend payments on unvested performance-based restricted stock awards	(111)		(111)
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings (in shares)		(121)
Shares surrendered and cancelled upon vesting of restricted stock to satisfy tax withholdings	(2,574)		(2,574)
Stock-based compensation	1,474		1,474
Issuance of common stock under employee stock purchase plan (in shares)		87
Issuance of common stock under employee stock purchase plan	1,330		1,330
Ending Balance at Mar. 31, 2017	$ 142,776	$ 7	$ 107,304	$ 35,465
Ending Balance (in shares) at Mar. 31, 2017	66,218	66,218

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 13,985	$ 12,894
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for losses on accounts receivable	425	24
Depreciation & amortization	1,613	1,664
Stock-based compensation expense	1,474	1,622
Deferred income taxes	912	593
Excess tax benefits from stock-based compensation		210
Changes in operating assets and liabilities:
(Increase) decrease in trade accounts receivable, net	(1,545)	1,151
(Increase) decrease in prepaid expenses & other current assets	2,461	(1,377)
(Increase) in other assets	(1,493)	(20)
(Decrease) in accounts payable	(9,789)	(3,390)
(Decrease) in accrued expenses	(3,838)	(3,662)
Increase in other current liabilities	148	245
Increase in other long-term liabilities	583	387
Net cash provided by operating activities	4,936	10,341
Cash flows from investing activities:
Purchases of property and equipment	(929)	(1,485)
Proceeds from sale of property and equipment	6	2
Capitalized internal use software development costs	(875)	(543)
Net cash used in investing activities	(1,798)	(2,026)
Cash flows from financing activities:
Cash dividends on common stock	(5,342)
Proceeds from employee common stock purchases	1,330	1,114
Tax withholdings related to stock-based compensation awards	(2,574)	(2,034)
Net cash used in financing activities	(6,586)	(920)
Net increase (decrease) in cash	(3,448)	7,395
Cash, beginning of period	127,009	98,388
Cash, end of period	123,561	105,783
Non-cash investing activities:
Capital expenditures accrued but not yet paid	176	23
Cash payments:
Income taxes paid	$ 3,151	6,853
Cash dividends paid on common stock previously restricted for payment of dividend		$ 36,456

THE COMPANY AND SUMMARY OF SIGN

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2017
THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	1. THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Company NIC is a leading provider of digital government services that help governments use technology to provide a higher level of service to businesses and citizens and increase efficiencies. 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. Typically operating under multiple-year contracts (See Note 2), 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 business model allows the Company to generate revenues by sharing in the fees the Company collects from online transactions. 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 digital government services, other than outsourced portal services, to state and local governments as well as federal agencies (See Note 2). 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, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all non-customer service related costs from the Company’s software & services businesses, including compensation and benefits, information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, and corporate-level expenses for market development and public relations. Certain amounts included in the unaudited consolidated statement of cash flows for the three-month period ended March 31, 2016 were reclassified to conform to the current year presentation. The reclassifications had no effect on total cash flows or the income statement for the three-month period ended March 31, 2016. Adoption of accounting standard In March 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period. The Company adopted the standard on January 1, 2017. Adoption of the standard resulted in a decrease in retained earnings of approximately $0.4 million and a corresponding increase in additional paid-in capital in the Company’s unaudited consolidated balance sheet at January 1, 2017, reflecting a associated with the Company’s policy election to account for forfeitures of awards as they occur. Previously, the Company estimated and excluded compensation cost related to awards not expected to vest based on estimated forfeitures. Furthermore, changes in presentation as a result of the adoption of ASU 2016-09 increased both cash provided by operating activities and cash used in financing activities by approximately $2.2 million in the Company’s unaudited consolidated statement of cash flows for the three-month period ended March 31, 2016. Upon adoption of ASU 2016-09, excess tax benefits or deficiencies from share-based award activity are reflected in the consolidated statement of income prospectively as a component of the provision for income taxes, whereas previously such benefits or deficiencies were recognized in additional paid-in capital in the consolidated balance sheet. Excess tax benefits resulted in a reduction of the Company’s provision for income taxes of approximately $0.5 million for the three-month period ended March 31, 2017. Earnings per share Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are 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 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 and 0.7 million at March 31, 2017 and 2016, respectively. 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 (in thousands, except per share amounts): Three months ended March 31, 2017 2016 Numerator: Net income $ 13,985 $ 12,894 Less: Income allocated to participating securities (135 ) (120 ) Net income available to common stockholders $ 13,850 $ 12,774 Denominator: Weighted average shares - basic 66,046 65,739 Performance-based restricted stock awards - - Weighted average shares - diluted 66,046 65,739 Basic net income per share: Net income $ 0.21 $ 0.19 Diluted net income per share: Net income $ 0.21 $ 0.19 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 March 31, 2017, the amount of cash covered by FDIC deposit insurance was approximately $8.5 million, and approximately $115.1 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. Recently issued accounting pronouncements Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The new standard will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s financial statements. Leases In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard is effective for the annual reporting period beginning January 1, 2019, including interim periods within that reporting period. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early application is permitted. The Company is currently evaluating the effects that the standard will have on its consolidated financial statements, which the Company anticipates could be significant, due mainly to its non-cancellable leases for office space. As further described in Note 7, Commitments and Contingencies, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 22, 2017, as of December 31, 2016, the Company had minimum lease commitments under non-cancellable operating leases totaling $17.9 million. Revenue from Contracts with Customers In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires expanded disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The standard is effective for the annual reporting period beginning January 1, 2018, including interim periods within that reporting period. The Company currently expects it will adopt the standard using the modified retrospective approach during the first quarter of 2018. The Company has established an implementation team that has completed a preliminary impact assessment of the new standard and a scoping of its revenue sources by type of service provided under its contracts with customers. The Company continues to assess the standard and is currently evaluating a sample of customer contracts for each revenue source to determine the estimated impact the standard will have on the Company’s sources of revenue and financial statements.

OUTSOURCED GOVERNMENT CONTRACTS

OUTSOURCED GOVERNMENT CONTRACTS	3 Months Ended
	Mar. 31, 2017
OUTSOURCED GOVERNMENT CONTRACTS	2. 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 statements of work with various agencies and divisions of the government to provide specific services and to conduct specific transactions. These statements of work 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. 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 applications and digital government services built by the Company only in its own state. However, certain proprietary 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 expires 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, 15 contracts under which the Company provides enterprise-wide outsourced portal and digital government services, as well as the Company’s contract with the Federal Motor Carrier Safety Administration (“FMCSA”), can be terminated by the other party without cause on a specified period of notice. Collectively, revenues generated from these contracts represented approximately 62% of the Company’s total consolidated revenues for the three-month period ended March 31, 2017. 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 applications in its portal. 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 March 31, 2017, the Company was bound by performance bond commitments totaling approximately $5.8 million on certain outsourced portal contracts. The following is a summary of the portals in each state through which the Company has the ability to provide enterprise-wide outsourced portal services to multiple government agencies: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (Renewal Options Through) Louisiana Interactive, LLC www.louisiana.gov (Louisiana) 2015 1/28/2020 Connecticut Interactive, LLC www.ct.gov (Connecticut) 2014 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 8/10/2018 (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 6/30/2021 (6/30/2024) Vermont Information Consortium, LLC www.Vermont.gov (Vermont) 2006 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 8/31/2018 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/19/2020 (3/19/2022) Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2018 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2019 (12/31/2020) 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 6/30/2018 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 Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2017 (7/31/2018) Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2022 (annual 1-year renewal options) Outsourced federal contract The Company’s subsidiary NIC Federal, LLC has a contract with the FMCSA to develop and manage the FMCSA’s Pre-Employment Screening Program (“PSP”) for motor carriers nationwide, using a transaction-based business model. During the third quarter of 2016, the FMCSA exercised the first of its two one-year renewal options, extending the current contract through August 31, 2017, and has one remaining one-year renewal option. 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. Expiring contracts There are currently 5 contracts under which the Company provides enterprise-wide outsourced portal and digital government services, as well as the Company’s contract with the FMCSA, that have expiration dates within the 12-month period following March 31, 2017. Collectively, revenues generated from these contracts represented approximately 14% of the Company’s total consolidated revenues for the three-month period ended March 31, 2017. Although certain of these contracts have renewal provisions, any renewal is at the option of the Company’s government partner. 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. The contract under which the Company’s subsidiary, NICUSA Inc. (“NICUSA”), managed the state of Tennessee’s official government portal expired on March 31, 2017. For the three-month periods ended March 31, 2017 and 2016, revenues from the Tennessee portal contract were approximately $1.8 million and $2.3 million, respectively. The contract under which the Company’s subsidiary, Iowa Interactive, LLC managed the state of Iowa’s official government portal expired on November 30, 2016. For the three-month period ended March 31, 2016, revenues from the Iowa portal contract were approximately $0.5 million.

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	3 Months Ended
	Mar. 31, 2017
STOCK BASED COMPENSATION	3. STOCK BASED COMPENSATION During the first quarter of 2017, the Compensation Committee of the Board of Directors of the Company granted to certain management-level employees and executive officers service-based restricted stock awards totaling 228,695 shares with a grant-date fair value totaling approximately $5.0 million. Such restricted stock awards vest beginning one year from the date of grant in annual installments of 25%. Restricted stock is valued at the date of grant, based on the closing market price of the Company’s common stock, and expensed using the straight-line method over the requisite service period for the entire award (generally the vesting period of the grant). During the first quarter of 2017, the Company made a policy election to account for forfeitures of awards as they occur upon the adoption of ASU 2016-09 (See Note 1). During the first quarter of 2017, the Compensation Committee of 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 110,678 shares with a grant-date fair value totaling approximately $2.4 million, which represents the maximum number of shares the executive officers can earn at the end of a three-year performance period ending December 31, 2019. 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 ● Return on invested capital (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 dividends declared during the performance period, payable in the form of additional 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, 2016, the three-year performance period related to the performance-based restricted stock awards granted to certain executive officers on February 24, 2014 ended. Based on the Company’s actual financial results from 2014 through 2016, 59,437 of the shares subject to the awards and 4,945 dividend shares were earned. The remaining 21,503 shares subject to the awards were forfeited. Stock-based compensation cost for performance-based restricted stock awards is measured at the grant date based on the fair value of shares expected to be earned at the end of the performance period, and is recognized as expense over the performance period based upon the probable number of shares expected to vest. The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands): Three months ended March 31, 2017 2016 Cost of portal revenues, exclusive of depreciation & amortization $ 312 $ 455 Cost of software & services revenues, exclusive of depreciation & amortization 17 17 Selling & administrative 1,145 1,150 Stock-based compensation expense before income taxes 1,474 1,622 Income tax benefit (497 ) (595 ) Net stock-based compensation expense $ 977 $ 1,027

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	3 Months Ended
	Mar. 31, 2017
STOCKHOLDERS' EQUITY	4. STOCKHOLDERS’ EQUITY Dividends On May 2, 2017, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.08 per share, payable to stockholders of record as of June 6, 2017. The dividend, which is expected to total approximately $5.3 million, will be paid on June 20, 2017, out of the Company’s available cash. On January 30, 2017, the Company’s Board of Directors declared a regular quarterly cash dividend of $0.08 per share, payable to stockholders of record as of March 7, 2017. The dividend, totaling approximately $5.3 million, was paid on March 21, 2017 on 66,131,192 outstanding shares of common stock. A dividend equivalent of $0.08 per share was also paid simultaneously on 643,339 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 accrue dividend equivalents for dividends declared during the respective performance period. Such dividend equivalents could be earned and become payable in the form of additional shares of common stock at the end of the respective performance period to the extent that the underlying shares of performance-based restricted stock are earned.

DEBT OBLIGATIONS AND COLLATERAL

DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS	3 Months Ended
	Mar. 31, 2017
DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS	5. DEBT OBLIGATIONS AND COLLATERAL REQUIREMENTS On April 28, 2017, NIC Inc. (the “Company”) entered into Amendment No. 3 to Amended and Restated Credit Agreement (the “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 Amendment extended the maturity date to May 1, 2019. The other material terms of the Credit Agreement remain unchanged, including customary representations and warranties, affirmative and negative covenants and events of default.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2017
INCOME TAXES	6. INCOME TAXES The Company’s effective tax rate was approximately 34% and 37%, respectively, for the three-month periods ended March 31, 2017 and 2016. The Company’s effective tax rate in the current quarter was lower than the prior year quarter mainly due to favorable benefits related to the domestic production activities deduction, which the Company began recognizing in the third quarter of 2016, and favorable benefits related to excess tax deductions for the vesting of restricted stock awards, which the Company began recognizing in the provision for income taxes in the first quarter of 2017 upon the adoption of ASU 2016-09 (See Note 1). The Company’s reserve for unrecognized income tax benefits, including interest and penalties, included in other long-term liabilities in the unaudited consolidated balance sheet at March 31, 2017 and the consolidated balance sheet at December 31, 2016 were approximately $7.2 million and $6.6 million, respectively. The increase was mainly due to a reserve for unrecognized income tax benefits related to the domestic production activities deduction recorded during the three-months period ended March 31, 2017.

REPORTABLE SEGMENT AND RELATED

REPORTABLE SEGMENT AND RELATED INFORMATION	3 Months Ended
	Mar. 31, 2017
REPORTABLE SEGMENT AND RELATED INFORMATION	7. REPORTABLE SEGMENT 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. There have been no significant intersegment transactions for the periods reported. The summary of significant accounting policies applies to all 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 three month-period ended March 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2017 Revenues $ 77,198 $ 5,979 $ - $ 83,177 Costs & expenses 47,032 1,763 11,660 60,455 Depreciation & amortization 686 23 904 1,613 Operating income (loss) before income taxes $ 29,480 $ 4,193 $ (12,564 ) $ 21,109 2016 Revenues $ 73,197 $ 5,193 $ - $ 78,390 Costs & expenses 43,615 1,413 11,342 56,370 Depreciation & amortization 850 14 800 1,664 Operating income (loss) before income taxes $ 28,732 $ 3,766 $ (12,142 ) $ 20,356 For each of the three-month periods ended March 31, 2017 and 2016, the Company’s Texas portal contract accounted for approximately 20% of the Company’s total consolidated revenues. No other contract accounted for 10% or more of the Company’s total consolidated revenues for the three-month period ended March 31, 2017 or 2016.

THE COMPANY AND SUMMARY OF SI14

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2017
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, and all other costs associated with the provision of dedicated client service such as dedicated facilities. Cost of software & services revenues consists of all direct project costs to provide software development and services such as employee compensation and benefits (including stock-based compensation), subcontractor labor costs, and all other direct project costs including hardware, software, materials, travel and other out-of-pocket expenses. Selling & administrative expenses consist primarily of corporate-level expenses relating to human resource management, administration, information technology, security, legal, finance and accounting, internal audit and all non-customer service related costs from the Company’s software & services businesses, including compensation and benefits, information systems and office rent. Selling & administrative expenses also consist of management incentive compensation, including stock-based compensation, and corporate-level expenses for market development and public relations. Certain amounts included in the unaudited consolidated statement of cash flows for the three-month period ended March 31, 2016 were reclassified to conform to the current year presentation. The reclassifications had no effect on total cash flows or the income statement for the three-month period ended March 31, 2016.
Adoption of accounting standard	Adoption of accounting standard In March 2016, the Financial Accounting Standards Board (“FASB”) issued new authoritative literature, Improvements to Employee Share-Based Payment Accounting (“ASU 2016-09”), which simplifies several aspects of accounting for employee share-based payment transactions, including accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard is effective for the annual reporting period beginning January 1, 2017, including interim periods within that reporting period. The Company adopted the standard on January 1, 2017. Adoption of the standard resulted in a decrease in retained earnings of approximately $0.4 million and a corresponding increase in additional paid-in capital in the Company’s unaudited consolidated balance sheet at January 1, 2017, reflecting a associated with the Company’s policy election to account for forfeitures of awards as they occur. Previously, the Company estimated and excluded compensation cost related to awards not expected to vest based on estimated forfeitures. Furthermore, changes in presentation as a result of the adoption of ASU 2016-09 increased both cash provided by operating activities and cash used in financing activities by approximately $2.2 million in the Company’s unaudited consolidated statement of cash flows for the three-month period ended March 31, 2016. Upon adoption of ASU 2016-09, excess tax benefits or deficiencies from share-based award activity are reflected in the consolidated statement of income prospectively as a component of the provision for income taxes, whereas previously such benefits or deficiencies were recognized in additional paid-in capital in the consolidated balance sheet. Excess tax benefits resulted in a reduction of the Company’s provision for income taxes of approximately $0.5 million for the three-month period ended March 31, 2017.
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 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 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 and 0.7 million at March 31, 2017 and 2016, respectively. 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 (in thousands, except per share amounts): Three months ended March 31, 2017 2016 Numerator: Net income $ 13,985 $ 12,894 Less: Income allocated to participating securities (135 ) (120 ) Net income available to common stockholders $ 13,850 $ 12,774 Denominator: Weighted average shares - basic 66,046 65,739 Performance-based restricted stock awards - - Weighted average shares - diluted 66,046 65,739 Basic net income per share: Net income $ 0.21 $ 0.19 Diluted net income per share: Net income $ 0.21 $ 0.19
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 March 31, 2017, the amount of cash covered by FDIC deposit insurance was approximately $8.5 million, and approximately $115.1 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.
Recently issued accounting pronouncements	Recently issued accounting pronouncements Credit Losses In June 2016, the FASB issued a new standard to replace the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For trade and other receivables, the Company will be required to use a forward-looking expected loss model rather than the incurred loss model for recognizing credit losses which reflects losses that are probable. The new standard will be effective for the Company beginning January 1, 2020, with early adoption permitted beginning January 1, 2019. Application of the amendments is through a cumulative-effect adjustment to retained earnings as of the effective date. The Company is currently evaluating the new standard and the estimated impact it will have on the Company’s financial statements. Leases In February 2016, the FASB issued a new standard related to leases to increase transparency and comparability among organizations by requiring the recognition of lease assets and lease liabilities on the balance sheet. Most prominent among the amendments is the recognition of assets and liabilities by lessees for those leases classified as operating leases under current U.S. GAAP. Under the new standard, disclosures are required to meet the objective of enabling users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The standard is effective for the annual reporting period beginning January 1, 2019, including interim periods within that reporting period. The Company will be required to recognize and measure leases at the beginning of the earliest period presented using a modified retrospective approach. Early application is permitted. The Company is currently evaluating the effects that the standard will have on its consolidated financial statements, which the Company anticipates could be significant, due mainly to its non-cancellable leases for office space. As further described in Note 7, Commitments and Contingencies, of the Company’s Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC on February 22, 2017, as of December 31, 2016, the Company had minimum lease commitments under non-cancellable operating leases totaling $17.9 million. Revenue from Contracts with Customers In May 2014, the FASB issued a new standard related to revenue recognition. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. In addition, the standard requires expanded disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The FASB has issued several amendments to the standard, including clarification on accounting for licenses of intellectual property and identifying performance obligations. The guidance permits two methods of adoption: retrospectively to each prior reporting period presented (full retrospective method), or retrospectively with the cumulative effect of initially applying the guidance recognized at the date of initial application (the modified retrospective approach). The standard is effective for the annual reporting period beginning January 1, 2018, including interim periods within that reporting period. The Company currently expects it will adopt the standard using the modified retrospective approach during the first quarter of 2018. The Company has established an implementation team that has completed a preliminary impact assessment of the new standard and a scoping of its revenue sources by type of service provided under its contracts with customers. The Company continues to assess the standard and is currently evaluating a sample of customer contracts for each revenue source to determine the estimated impact the standard will have on the Company’s sources of revenue and financial statements.

THE COMPANY AND SUMMARY OF SI15

THE COMPANY AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)	3 Months Ended
	Mar. 31, 2017
Computation of Basic and Diluted Earnings Per Share	The following table sets forth the computation of basic and diluted earnings per share (in thousands, except per share amounts): Three months ended March 31, 2017 2016 Numerator: Net income $ 13,985 $ 12,894 Less: Income allocated to participating securities (135 ) (120 ) Net income available to common stockholders $ 13,850 $ 12,774 Denominator: Weighted average shares - basic 66,046 65,739 Performance-based restricted stock awards - - Weighted average shares - diluted 66,046 65,739 Basic net income per share: Net income $ 0.21 $ 0.19 Diluted net income per share: Net income $ 0.21 $ 0.19

OUTSOURCED GOVERNMENT CONTRAC16

OUTSOURCED GOVERNMENT CONTRACTS (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Enterprise-Wide Outsourced Portal Services to Multiple Governments Agencies	The following is a summary of the portals in each state through which the Company has the ability to provide enterprise-wide outsourced portal services to multiple government agencies: NIC Portal Entity Portal Website (State) Year Services Commenced Contract Expiration Date (Renewal Options Through) Louisiana Interactive, LLC www.louisiana.gov (Louisiana) 2015 1/28/2020 Connecticut Interactive, LLC www.ct.gov (Connecticut) 2014 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 8/10/2018 (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 6/30/2021 (6/30/2024) Vermont Information Consortium, LLC www.Vermont.gov (Vermont) 2006 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 8/31/2018 Alabama Interactive, LLC www.Alabama.gov (Alabama) 2002 3/19/2020 (3/19/2022) Rhode Island Interactive, LLC www.RI.gov (Rhode Island) 2001 7/1/2017 (7/1/2019) Oklahoma Interactive, LLC www.OK.gov (Oklahoma) 2001 3/31/2018 (3/31/2020) Montana Interactive, LLC www.MT.gov (Montana) 2001 12/31/2019 (12/31/2020) 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 6/30/2018 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 Indiana Interactive, LLC www.IN.gov (Indiana) 1995 7/31/2017 (7/31/2018) Nebraska Interactive, LLC www.Nebraska.gov (Nebraska) 1995 4/1/2019 (4/1/2021) Kansas Information Consortium, LLC www.Kansas.gov (Kansas) 1992 12/31/2022 (annual 1-year renewal options)

STOCK BASED COMPENSATION (Table

STOCK BASED COMPENSATION (Tables)	3 Months Ended
	Mar. 31, 2017
Stock-based Compensation Expense	The following table presents stock-based compensation expense included in the Company’s unaudited consolidated statements of income (in thousands): Three months ended March 31, 2017 2016 Cost of portal revenues, exclusive of depreciation & amortization $ 312 $ 455 Cost of software & services revenues, exclusive of depreciation & amortization 17 17 Selling & administrative 1,145 1,150 Stock-based compensation expense before income taxes 1,474 1,622 Income tax benefit (497 ) (595 ) Net stock-based compensation expense $ 977 $ 1,027

REPORTABLE SEGMENT AND RELATE18

REPORTABLE SEGMENT AND RELATED INFORMATION (Tables)	3 Months Ended
	Mar. 31, 2017
Summary of Financial Information for Reportable Segments	The table below reflects summarized financial information for the Company’s reportable and operating segments for the three month-period ended March 31 (in thousands): Outsourced Portals Other Software & Services Other Reconciling Items Consolidated Total 2017 Revenues $ 77,198 $ 5,979 $ - $ 83,177 Costs & expenses 47,032 1,763 11,660 60,455 Depreciation & amortization 686 23 904 1,613 Operating income (loss) before income taxes $ 29,480 $ 4,193 $ (12,564 ) $ 21,109 2016 Revenues $ 73,197 $ 5,193 $ - $ 78,390 Costs & expenses 43,615 1,413 11,342 56,370 Depreciation & amortization 850 14 800 1,664 Operating income (loss) before income taxes $ 28,732 $ 3,766 $ (12,142 ) $ 20,356

The Company and Summary of Si19

The Company and Summary of Significant Accounting Policies - Additional Information (Detail) $ in Thousands, shares in Millions	3 Months Ended
	Mar. 31, 2017USD ($)Categoriesshares	Mar. 31, 2016USD ($)shares
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Number of business channels | Categories	2
Number of revenue and cost categories | Categories	2
Increased in cash provided by operating activities	$ 4,936	$ 10,341
Increased in cash used in financing activities	(6,586)	(920)
Reduction in provision for income taxes due to excess tax benefits	$ 497	$ 595
Unvested service-based restricted stock awards included in the calculation of earnings per share | shares	0.6	0.7
Total minimum lease commitments	$ 17,900
Accounting Standards Update 2016-09
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Increased in cash provided by operating activities		$ 2,200
Increased in cash used in financing activities		$ 2,200
Reduction in provision for income taxes due to excess tax benefits	500
Accounting Standards Update 2016-09 | Retained Earnings
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Adoption of ASU 2016-09	(409)
Accounting Standards Update 2016-09 | Additional Paid-in Capital
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Adoption of ASU 2016-09	409
Deposits Assets
Organization and Summary of Significant Accounting Policies Disclosure [Line Items]
Cash subject to FDIC insurance	8,500
Cash not subject to FDIC insurance	$ 115,100

Computation of Basic and Dilute

Computation of Basic and Diluted Earnings per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income	$ 13,985	$ 12,894
Less: Income allocated to participating securities	(135)	(120)
Net income available to common stockholders	$ 13,850	$ 12,774
Denominator:
Weighted average shares - basic	66,046	65,739
Performance-based restricted stock awards	0	0
Weighted average shares - diluted	66,046	65,739
Basic net income per share:
Net income	$ 0.21	$ 0.19
Diluted net income per share:
Net income	$ 0.21	$ 0.19

Outsourced Government Contrac21

Outsourced Government Contracts - Additional Information (Detail) $ in Thousands	3 Months Ended
	Mar. 31, 2017USD ($)Contract	Sep. 30, 2016RenewalOptions	Mar. 31, 2016USD ($)
Contracts [Line Items]
Number of enterprise-wide outsourced portal and digital government services and the Company's contract with the FMCSA that can be terminated by the other party without cause on period of notice | Contract	15
Performance bond commitments	$ 5,800
Number of enterprise-wide outsourced portal and digital government services and the Company's contract with the FMCSA that have expiration dates within the 12-month period | Contract	5
Portal revenues	$ 77,198		$ 73,197
NICUSA, TN Division
Contracts [Line Items]
Contract Expiration Date	Mar. 31, 2017
Portal revenues	$ 1,800		2,300
Iowa Interactive, LLC
Contracts [Line Items]
Contract Expiration Date	Nov. 30, 2016
Portal revenues			$ 500
US Department of Transportation, Federal Motor Carrier Safety Administration
Contracts [Line Items]
Contract Expiration Date	Aug. 31, 2017
Contract renewal option | RenewalOptions		2
Contract renewal remaining option | RenewalOptions		1
Contract period		1 year
Customer Concentration Risk | Consolidated Revenues
Contracts [Line Items]
Concentration risk percentage	62.00%
Government Contracts Concentration Risk | Consolidated Revenues
Contracts [Line Items]
Concentration risk percentage	14.00%

Summary of Enterprise-Wide Outs

Summary of Enterprise-Wide Outsourced Portal Services to Multiple Governments Agencies (Detail)	3 Months Ended
	Mar. 31, 2017
Louisiana Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.louisiana.gov (Louisiana)
Year Service Commenced	2,015
Contract Expiration Date	Jan. 28, 2020
Connecticut Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.ct.gov (Connecticut)
Year Service Commenced	2,014
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, 2018
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	Jun. 30, 2021
West Virginia Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jun. 30, 2024
Vermont Information Consortium, LLC
Contracts [Line Items]
Portal Website (State)	www.Vermont.gov (Vermont)
Year Service Commenced	2,006
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, 2018
Alabama Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.Alabama.gov (Alabama)
Year Service Commenced	2,002
Contract Expiration Date	Mar. 19, 2020
Alabama Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Mar. 19, 2022
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, 2018
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, 2019
Montana Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Dec. 31, 2020
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, 2018
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
Indiana Interactive, LLC
Contracts [Line Items]
Portal Website (State)	www.IN.gov (Indiana)
Year Service Commenced	1,995
Contract Expiration Date	Jul. 31, 2017
Indiana Interactive, LLC | Renewal Term
Contracts [Line Items]
Contract Expiration Date	Jul. 31, 2018
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, 2022
Kansas Information Consortium, LLC | Renewal Term
Contracts [Line Items]
Term of contract	annual 1-year renewal options

Stock Based Compensation - Addi

Stock Based Compensation - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended	12 Months Ended
	Mar. 31, 2017	Dec. 31, 2016
Service-based Restricted Stock | Service Based Awards | Employees And Executives
Stock Based Compensation [Line Items]
Share based compensation award shares granted in period	228,695
Share based compensation award granted in period grant-date fair value	$ 5
Share based compensation award vesting period from date of grant	1 year
Service-based Restricted Stock | Service Based Awards | Employees And Executives | Annual installment
Stock Based Compensation [Line Items]
Share based compensation award annual installment vesting rate	25.00%
Performance Shares
Stock Based Compensation [Line Items]
Share based compensation award shares granted in period	110,678
Share based compensation award granted in period grant-date fair value	$ 2.4
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, 2019
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 Return on invested capital (three-year average).
Performance Shares | Performance Period 2014 to 2016
Stock Based Compensation [Line Items]
Share based compensation award shares earned in period		59,437
Share based compensation dividend earned on shares subject to the awards, shares		4,945
Share based compensation performance-based restricted stock awards, grant date		Feb. 24, 2014
Number of forfeited shares		21,503

Stock Based Compensation Expens

Stock Based Compensation Expenses (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	$ 1,474	$ 1,622
Income tax benefit	(497)	(595)
Net stock-based compensation expense	977	1,027
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	312	455
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	17	17
Selling & administrative
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items]
Stock-based compensation expense before income taxes	$ 1,145	$ 1,150

Stockholders' Equity - Addition

Stockholders' Equity - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Thousands	May 02, 2017	Mar. 21, 2017	Jan. 30, 2017	Mar. 31, 2017	Dec. 31, 2016
Stockholders Equity Note [Line Items]
Cash dividend declared, date			Jan. 30, 2017
Cash dividend record, date			Mar. 7, 2017
Cash dividend paid		$ 5,300		$ 5,342
Cash dividend paid, date			Mar. 21, 2017
Common stock, shares outstanding		66,131,192		66,218,000	65,982,000
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		$ 0.08
Unvested shares of restricted stock on the dividend record date		643,339
Regular Dividends
Stockholders Equity Note [Line Items]
Cash dividends declared, per share			$ 0.08
Subsequent Event
Stockholders Equity Note [Line Items]
Cash dividend declared, date	May 2, 2017
Cash dividend record, date	Jun. 6, 2017
Cash dividend paid	$ 5,300
Cash dividend paid, date	Jun. 20, 2017
Subsequent Event | Regular Dividends
Stockholders Equity Note [Line Items]
Cash dividends declared, per share	$ 0.08

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016	Dec. 31, 2016
Income Taxes [Line Items]
Effective tax rate	34.00%	37.00%
Other Long-Term Liabilities
Income Taxes [Line Items]
Unrecognized income tax benefits	$ 7.2		$ 6.6

Reportable Segments and Related

Reportable Segments and Related Information - Additional Information (Detail) - Segment	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Number of reportable segment	1
Customer Concentration Risk | Consolidated Revenues
Segment Reporting Information [Line Items]
Concentration risk percentage	62.00%
Texas NICUSA, LLC | Customer Concentration Risk | Consolidated Revenues
Segment Reporting Information [Line Items]
Concentration risk percentage	20.00%	20.00%

Summary of Financial Informatio

Summary of Financial Information for Reportable Segments (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Revenues	$ 83,177	$ 78,390
Costs & expenses	60,455	56,370
Depreciation & amortization	1,613	1,664
Operating income (loss) before income taxes	21,109	20,356
Total segment operating income | Outsourced Portals
Segment Reporting Information [Line Items]
Revenues	77,198	73,197
Costs & expenses	47,032	43,615
Depreciation & amortization	686	850
Operating income (loss) before income taxes	29,480	28,732
Total segment operating income | Other Software & Services
Segment Reporting Information [Line Items]
Revenues	5,979	5,193
Costs & expenses	1,763	1,413
Depreciation & amortization	23	14
Operating income (loss) before income taxes	4,193	3,766
Other Reconciling Items
Segment Reporting Information [Line Items]
Costs & expenses	11,660	11,342
Depreciation & amortization	904	800
Operating income (loss) before income taxes	$ (12,564)	$ (12,142)