Tyler (TYL) 10-Q 26 Apr 17 2017 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	3 Months Ended
	Mar. 31, 2017	Apr. 25, 2017
Document And Entity Information [Abstract]
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	TYL
Entity Registrant Name	TYLER TECHNOLOGIES INC
Entity Central Index Key	860,731
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding		37,082,941

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Revenues:
Software licenses and royalties	$ 18,223	$ 16,850
Subscriptions	40,102	34,089
Software services	45,018	42,430
Maintenance	86,859	76,032
Appraisal services	6,612	6,558
Hardware and other	2,728	3,334
Total revenues	199,542	179,293
Cost of revenues:
Software licenses and royalties	731	638
Acquired software	5,410	5,459
Software services, maintenance and subscriptions	93,540	85,270
Appraisal services	4,197	3,962
Hardware and other	1,316	1,846
Total cost of revenues	105,194	97,175
Gross profit	94,348	82,118
Selling, general and administrative expenses	43,142	40,759
Research and development expense	11,599	9,956
Amortization of customer and trade name intangibles	3,458	3,362
Operating income	36,149	28,041
Other (expense) income, net	(190)	(467)
Income before income taxes	35,959	27,574
Income tax provision	3,653	9,350
Net income	$ 32,306	$ 18,224
Earnings per common share:
Basic (USD per share)	$ 0.88	$ 0.50
Diluted (USD per share)	$ 0.83	$ 0.47

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 63,731	$ 36,151
Accounts receivable (less allowance for losses of $4,105 in 2017 and $3,396 in 2016)	163,723	200,334
Short-term investments	20,056	20,273
Prepaid expenses	21,445	21,039
Income tax receivable	0	2,895
Other current assets	2,620	2,268
Total current assets	271,575	282,960
Accounts receivable, long-term	2,577	2,480
Property and equipment, net	142,109	124,268
Other assets:
Goodwill	650,237	650,237
Other intangibles, net	258,280	267,259
Non-current investments and other assets	30,903	30,741
Total assets	1,355,681	1,357,945
Current liabilities:
Accounts payable	6,130	7,295
Accrued liabilities	41,226	55,989
Deferred revenue	270,208	298,217
Current income tax payable	4,681	0
Total current liabilities	322,245	361,501
Revolving line of credit	0	10,000
Deferred revenue, long-term	1,908	2,140
Deferred income taxes	64,691	68,779
Commitments and contingencies
Shareholders' equity:
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued	0	0
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued and outstanding as of March 31, 2017 and December 31, 2016	481	481
Additional paid-in capital	569,763	556,663
Accumulated other comprehensive loss, net of tax	(46)	(46)
Retained earnings	468,182	435,876
Treasury stock, at cost; 11,086,018 and 11,381,733 shares in 2017 and 2016, respectively	(71,543)	(77,449)
Total shareholders' equity	966,837	915,525
Liabilities and Shareholders' equity, Total	$ 1,355,681	$ 1,357,945

CONDENSED CONSOLIDATED BALANCE4

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Accounts receivable, allowance for losses	$ 4,105	$ 3,396
Preferred stock, par value	$ 10	$ 10
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 0.01	$ 0.01
Common stock, shares authorized	100,000,000	100,000,000
Common stock, shares issued	48,147,969	48,147,969
Common stock, shares outstanding	48,147,969	48,147,969
Treasury stock, shares	11,086,018	11,381,733

CONDENSED CONSOLIDATED STATEME5

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Cash flows from operating activities:
Net income	$ 32,306	$ 18,224
Adjustments to reconcile net income to cash provided (used) by operations:
Depreciation and amortization	13,099	12,176
Share-based compensation expense	8,676	6,480
Deferred income tax (benefit) expense	(4,089)	92
Changes in operating assets and liabilities, exclusive of effects of acquired companies:
Accounts receivable	36,514	35,750
Income taxes	7,576	9,187
Prepaid expenses and other current assets	(557)	2,074
Accounts payable	(1,166)	(473)
Accrued liabilities	(15,939)	(11,738)
Deferred revenue	(28,241)	(30,451)
Net cash provided by operating activities	48,179	41,321
Cash flows from investing activities:
Additions to property and equipment	(19,820)	(16,722)
Purchase of marketable security investments	(7,128)	(6,410)
Sale of marketable security investments	6,896	3,025
Cost of acquisitions, net of cash acquired	0	(2,000)
Increase in other	(16)	(49)
Net cash used by investing activities	(20,068)	(22,156)
Cash flows from financing activities:
(Decrease) increase in net borrowings on revolving line of credit	(10,000)	74,000
Purchase of treasury shares	(7,032)	(93,930)
Proceeds from exercise of stock options	14,851	1,781
Contributions from employee stock purchase plan	1,650	1,238
Net cash used by financing activities	(531)	(16,911)
Net increase in cash and cash equivalents	27,580	2,254
Cash and cash equivalents at beginning of period	36,151	33,087
Cash and cash equivalents at end of period	$ 63,731	$ 35,341

Basis of Presentation

Basis of Presentation	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation We prepared the accompanying condensed consolidated financial statements following the requirements of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States, or GAAP, for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted for interim periods. Balance sheet amounts are as of March 31, 2017 , and December 31, 2016 , and operating result amounts are for the three months ended March 31, 2017 and 2016 , and include all normal and recurring adjustments that we considered necessary for the fair summarized presentation of our financial position and operating results. As these are condensed financial statements, one should also read the financial statements and notes included in our latest Form 10-K for the year ended December 31, 2016 . Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). We had no items of other comprehensive income (loss) for the three months ended March 31, 2017 and 2016 . Certain amounts for the previous year have been reclassified to conform to the current year presentation.

Shareholders' Equity

Shareholders' Equity	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Shareholders' Equity	Shareholders’ Equity The following table details activity in our common stock: Three Months ended March 31, 2017 2016 Shares Amount Shares Amount Purchases of treasury shares (42 ) $ (6,171 ) (758 ) $ (94,497 ) Stock option exercises 324 14,851 79 1,781 Employee stock plan purchases 14 1,650 8 1,238 As of March 31, 2017 , we had authorization from our board of directors to repurchase up to 2.0 million additional shares of Tyler common stock.

Other Assets

Other Assets	3 Months Ended
	Mar. 31, 2017
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Other Assets	Other Assets Cash and cash equivalents consist of cash on deposit with several domestic banks and money market funds. As of March 31, 2017 , we have $33.5 million in investment grade corporate and municipal bonds with maturity dates ranging from 2017 through early-2019 . We intend to hold these bonds to maturity and have classified them as such. We believe cost approximates fair value because of the relatively short duration of these investments. The fair value of these securities are considered Level II as they are based on inputs from quoted prices in markets that are not active or other observable market data. These investments are included in short-term investments and non-current investments and other assets. We have a $15.0 million investment in convertible preferred stock representing a 20% interest in Record Holdings Pty Limited, a privately held Australian company specializing in digitizing the spoken word in court and legal proceedings. The investment in convertible preferred stock is accounted under the cost method because the Company does not have the ability to exercise significant influence over the investee and the securities do not have readily determinable fair values. Our investment is carried at cost less any impairment write-downs. Annually, the Company’s cost method investments are assessed for impairment. The Company does not reassess the fair value of cost method investments if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. This investment is included in non-current investments and other assets.

Revolving Line of Credit

Revolving Line of Credit	3 Months Ended
	Mar. 31, 2017
Debt Disclosure [Abstract]
Revolving Line of Credit	(4) Revolving Line of Credit On November 16, 2015, we entered into a $300.0 million Credit Agreement (the “Credit Facility”) with the various lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. The Credit Facility provides for a revolving credit line up to $300.0 million , including a $10.0 million sublimit for letters of credit. The Credit Facility matures on November 16, 2020 . Borrowings under the Credit Facility may be used for general corporate purposes, including working capital requirements, acquisitions and share repurchases. Borrowings under the Credit Facility bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.25% to 1.00% or (2) the 30, 60, 90 or 180 day LIBOR rate plus a margin of 1.25% to 2.00% . As of March 31, 2017 , the interest rates were 4.04% under the Wells Fargo Bank's prime rate and 2.23% under a 30-day LIBOR contract. The Credit Facility is secured by substantially all of our assets. The Credit Facility requires us to maintain certain financial ratios and other financial conditions and prohibits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens. As of March 31, 2017 , we were in compliance with those covenants. As of March 31, 2017 , we had no outstanding borrowings and two outstanding letters of credit totaling $2.2 million . Unused borrowing capacity under the Credit Facility was $297.8 million .

Income Tax Provision

Income Tax Provision	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Income Tax Provision	Income Tax Provision For the three months ended March 31, 2017 and March 31, 2016 , we had effective income tax rates of 10.2% and 33.9% , respectively. The effective income tax rates for the periods presented were different from the statutory United States federal income tax rate of 35% principally due to excess tax benefits related to stock option exercises. The excess tax benefits related to stock option exercises realized were $10.1 million and $1.2 million for the three months ended March 31, 2017 and March 31, 2016 , respectively. Excluding the excess tax benefits, the effective rates were 38.2% for both periods. Other differences from our federal statutory income tax rate included state income taxes, non-deductible business expenses, and the tax benefit of the domestic production activities deduction. We made tax payments of $161,000 and $71,000 in the three months ended March 31, 2017 and March 31, 2016 , respectively.

Earnings Per Share

Earnings Per Share	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Earnings Per Share	Earnings Per Share The following table details the reconciliation of basic earnings per share to diluted earnings per share: Three Months ended March 31, 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 32,306 $ 18,224 Denominator: Weighted-average basic common shares outstanding 36,845 36,549 Assumed conversion of dilutive securities: Stock options 2,087 2,522 Denominator for diluted earnings per share - Adjusted weighted-average shares 38,932 39,071 Earnings per common share: Basic $ 0.88 $ 0.50 Diluted $ 0.83 $ 0.47 For the three months ended March 31, 2017 , and March 31, 2016 , stock options representing the right to purchase common stock of approximately 1,160,000 shares and 762,000 shares, respectively, were not included in the computation of diluted earnings per share because their inclusion would have had an anti-dilutive effect.

Share-Based Compensation

Share-Based Compensation	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Share-Based Compensation	Share-Based Compensation The following table summarizes share-based compensation expense related to share-based awards recorded in the statements of income, pursuant to Accounting Standards Codification (“ASC”) 718, Stock Compensation: Three Months ended March 31, 2017 2016 Cost of software services, maintenance and subscriptions $ 2,097 $ 1,317 Selling, general and administrative expenses 6,579 5,163 Total share-based compensation expense $ 8,676 $ 6,480

Segment and Related Information

Segment and Related Information	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Segment and Related Information	Segment and Related Information We provide integrated information management solutions and services for the public sector, with a focus on local governments. We provide our software systems and services and appraisal services through four business units, which focus on the following products: • financial management, education and planning, regulatory and maintenance software solutions; • financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions; • courts and justice and public safety software solutions; and • appraisal and tax software solutions and property appraisal services. In accordance with ASC 280-10, Segment Reporting, the financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions unit; and the courts and justice and public safety software solutions unit meet the criteria for aggregation and are presented in one reportable segment, the Enterprise Software (“ES”) segment. The ES segment provides municipal and county governments and schools with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as financial management and courts and justice processes; public safety; planning, regulatory and maintenance; and land and vital records management. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property as well as property appraisal outsourcing services for local governments and taxing authorities. Property appraisal outsourcing services include: the physical inspection of commercial and residential properties; data collection and processing; computer analysis for property valuation; preparation of tax rolls; community education; and arbitration between taxpayers and the assessing jurisdiction. We evaluate performance based on several factors, of which the primary financial measure is business segment operating income. We define segment operating income for our business units as income before non-cash amortization of intangible assets associated with their acquisitions, interest expense and income taxes. Segment operating income includes intercompany transactions. The majority of intercompany transactions relate to contracts involving more than one unit and are valued based on the contractual arrangement. Segment operating income for corporate primarily consists of compensation costs for the executive management team and certain accounting and administrative staff and share-based compensation expense for the entire company. Corporate segment operating income also includes revenues and expenses related to a company-wide user conference. For the three months ended March 31, 2017 Enterprise Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 16,574 $ 1,649 $ — $ 18,223 Subscriptions 38,313 1,789 — 40,102 Software services 40,668 4,350 — 45,018 Maintenance 82,166 4,693 — 86,859 Appraisal services — 6,612 — 6,612 Hardware and other 2,728 — — 2,728 Intercompany 2,163 — (2,163 ) — Total revenues $ 182,612 $ 19,093 $ (2,163 ) $ 199,542 Segment operating income $ 52,051 $ 4,214 $ (11,248 ) $ 45,017 For the three months ended March 31, 2016 Enterprise Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 15,654 $ 1,196 $ — $ 16,850 Subscriptions 31,985 2,104 — 34,089 Software services 38,605 3,825 — 42,430 Maintenance 71,400 4,632 — 76,032 Appraisal services — 6,558 — 6,558 Hardware and other 3,036 15 283 3,334 Intercompany 1,160 — (1,160 ) — Total revenues $ 161,840 $ 18,330 $ (877 ) $ 179,293 Segment operating income $ 40,669 $ 4,830 $ (8,637 ) $ 36,862 Three Months ended March 31, Reconciliation of reportable segment operating income to the Company's consolidated totals: 2017 2016 Total segment operating income $ 45,017 $ 36,862 Amortization of acquired software (5,410 ) (5,459 ) Amortization of customer and trade name intangibles (3,458 ) (3,362 ) Other expense, net (190 ) (467 ) Income before income taxes $ 35,959 $ 27,574

Commitments and Contingencies

Commitments and Contingencies	3 Months Ended
	Mar. 31, 2017
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Other than routine litigation incidental to our business, there are no material legal proceedings pending to which we are party or to which any of our properties are subject.

New Accounting Pronouncements

New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2017
Accounting Changes and Error Corrections [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Revenue from Contracts with Customer s. On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This ASU is the result of a convergence project between the FASB and the International Accounting Standards Board. The core principle behind ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering those goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when (or as) the entity satisfies the performance obligations. The ASU allows two methods of adoption: a full retrospective approach where three years of financial information are presented in accordance with the new standard, and a modified retrospective approach where the ASU is applied to the most current period presented in the financial statements. We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. Our ability to adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements. The new standard requires application no later than annual reporting periods beginning after December 15, 2017, including interim reporting periods therein; however, public entities are permitted to elect to early adopt the new standard. We are assessing the financial impact of adopting the new standard and the methods of adoption; however, we are currently unable to provide a reasonable estimate regarding the financial impact. We will adopt the new standard in fiscal year 2018. We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license fees, installation fees, and incremental cost of obtaining a contract. Specifically, under the new standard we expect software license fees under perpetual agreements will no longer be subject to 100% discount allocations from other elements in the contract. Discounts in arrangements will be allocated across all deliverables increasing license revenues and decreasing revenues allocated to other performance obligations. In addition, in most cases, net license fees (total license fees less any allocated discounts) will be recognized at the point in time that control of the software license transfers to the customer versus our current policy of recognizing revenue only to the extent billable per the contractual terms. Time-based license fees currently recognized over the license term will no longer be recognized over the period of the license and will instead be recognized at the point in time that control of the software license transfers to the customer. We expect revenue related to our SaaS offerings and professional services to remain substantially unchanged. Due to the complexity of certain contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms and may vary in some instances from recognition at the time of billing. Application of the new standard requires that incremental costs directly related to obtaining a contract (typically sales commissions plus any associated fringe benefits) must be recognized as an asset and expensed on a systematic basis that is consistent with the transfer to the customer of the goods and services to which the asset relates, unless that life is less than one year. Currently, we defer sales commissions and recognize expense over the relevant initial contractual term. With the adoption of the new standard, we expect amortization periods to extend past the initial term. Leases. On February 25, 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early application is permitted for all business entities upon issuance. We are assessing the financial impact of adopting the new standard, however; we are currently unable to provide a reasonable estimate regarding the financial impact. We expect to adopt the new standard in fiscal year 2019.

New Accounting Pronouncements N

New Accounting Pronouncements New Accounting Pronouncements (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
New Accounting Pronouncements	New Accounting Pronouncements Revenue from Contracts with Customer s. On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU No. 2014-09, “Revenue from Contracts with Customers.” This ASU is the result of a convergence project between the FASB and the International Accounting Standards Board. The core principle behind ASU No. 2014-09 is that an entity should recognize revenue to depict the transfer of promised goods and services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for delivering those goods and services. This model involves a five-step process that includes identifying the contract with the customer, identifying the performance obligations in the contract, determining the transaction price, allocating the transaction price to the performance obligations in the contract and recognizing revenue when (or as) the entity satisfies the performance obligations. The ASU allows two methods of adoption: a full retrospective approach where three years of financial information are presented in accordance with the new standard, and a modified retrospective approach where the ASU is applied to the most current period presented in the financial statements. We currently anticipate adopting the standard using the full retrospective method to restate each prior reporting period presented. Our ability to adopt using the full retrospective method is dependent on system readiness, including software procured from third-party providers, and the completion of our analysis of information necessary to restate prior period financial statements. The new standard requires application no later than annual reporting periods beginning after December 15, 2017, including interim reporting periods therein; however, public entities are permitted to elect to early adopt the new standard. We are assessing the financial impact of adopting the new standard and the methods of adoption; however, we are currently unable to provide a reasonable estimate regarding the financial impact. We will adopt the new standard in fiscal year 2018. We anticipate this standard will have a material impact on our consolidated financial statements. While we are continuing to assess all potential impacts of the standard, we currently believe the most significant impact relates to our accounting for software license fees, installation fees, and incremental cost of obtaining a contract. Specifically, under the new standard we expect software license fees under perpetual agreements will no longer be subject to 100% discount allocations from other elements in the contract. Discounts in arrangements will be allocated across all deliverables increasing license revenues and decreasing revenues allocated to other performance obligations. In addition, in most cases, net license fees (total license fees less any allocated discounts) will be recognized at the point in time that control of the software license transfers to the customer versus our current policy of recognizing revenue only to the extent billable per the contractual terms. Time-based license fees currently recognized over the license term will no longer be recognized over the period of the license and will instead be recognized at the point in time that control of the software license transfers to the customer. We expect revenue related to our SaaS offerings and professional services to remain substantially unchanged. Due to the complexity of certain contracts, the actual revenue recognition treatment required under the standard will be dependent on contract-specific terms and may vary in some instances from recognition at the time of billing. Application of the new standard requires that incremental costs directly related to obtaining a contract (typically sales commissions plus any associated fringe benefits) must be recognized as an asset and expensed on a systematic basis that is consistent with the transfer to the customer of the goods and services to which the asset relates, unless that life is less than one year. Currently, we defer sales commissions and recognize expense over the relevant initial contractual term. With the adoption of the new standard, we expect amortization periods to extend past the initial term. Leases. On February 25, 2016, the FASB issued its new lease accounting guidance in ASU No. 2016-02, “Leases (Topic 842).” Under the new guidance, lessees will be required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: • A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and • A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early application is permitted for all business entities upon issuance. We are assessing the financial impact of adopting the new standard, however; we are currently unable to provide a reasonable estimate regarding the financial impact. We expect to adopt the new standard in fiscal year 2019.

Shareholders' Equity (Tables)

Shareholders' Equity (Tables)	3 Months Ended
	Mar. 31, 2017
Equity [Abstract]
Summary of Activities in Common Stock	The following table details activity in our common stock: Three Months ended March 31, 2017 2016 Shares Amount Shares Amount Purchases of treasury shares (42 ) $ (6,171 ) (758 ) $ (94,497 ) Stock option exercises 324 14,851 79 1,781 Employee stock plan purchases 14 1,650 8 1,238

Earnings Per Share (Tables)

Earnings Per Share (Tables)	3 Months Ended
	Mar. 31, 2017
Earnings Per Share [Abstract]
Computation of Basic Earnings and Diluted Earnings Per Share Data	The following table details the reconciliation of basic earnings per share to diluted earnings per share: Three Months ended March 31, 2017 2016 Numerator for basic and diluted earnings per share: Net income $ 32,306 $ 18,224 Denominator: Weighted-average basic common shares outstanding 36,845 36,549 Assumed conversion of dilutive securities: Stock options 2,087 2,522 Denominator for diluted earnings per share - Adjusted weighted-average shares 38,932 39,071 Earnings per common share: Basic $ 0.88 $ 0.50 Diluted $ 0.83 $ 0.47

Share-Based Compensation (Table

Share-Based Compensation (Tables)	3 Months Ended
	Mar. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Share-Based Compensation Expense Related to Share-Based Awards	The following table summarizes share-based compensation expense related to share-based awards recorded in the statements of income, pursuant to Accounting Standards Codification (“ASC”) 718, Stock Compensation: Three Months ended March 31, 2017 2016 Cost of software services, maintenance and subscriptions $ 2,097 $ 1,317 Selling, general and administrative expenses 6,579 5,163 Total share-based compensation expense $ 8,676 $ 6,480

Segment and Related Informati20

Segment and Related Information (Tables)	3 Months Ended
	Mar. 31, 2017
Segment Reporting [Abstract]
Schedule of Segment Revenues and Operations	For the three months ended March 31, 2017 Enterprise Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 16,574 $ 1,649 $ — $ 18,223 Subscriptions 38,313 1,789 — 40,102 Software services 40,668 4,350 — 45,018 Maintenance 82,166 4,693 — 86,859 Appraisal services — 6,612 — 6,612 Hardware and other 2,728 — — 2,728 Intercompany 2,163 — (2,163 ) — Total revenues $ 182,612 $ 19,093 $ (2,163 ) $ 199,542 Segment operating income $ 52,051 $ 4,214 $ (11,248 ) $ 45,017 For the three months ended March 31, 2016 Enterprise Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 15,654 $ 1,196 $ — $ 16,850 Subscriptions 31,985 2,104 — 34,089 Software services 38,605 3,825 — 42,430 Maintenance 71,400 4,632 — 76,032 Appraisal services — 6,558 — 6,558 Hardware and other 3,036 15 283 3,334 Intercompany 1,160 — (1,160 ) — Total revenues $ 161,840 $ 18,330 $ (877 ) $ 179,293 Segment operating income $ 40,669 $ 4,830 $ (8,637 ) $ 36,862
Reconciliation of Operating Income from Segments to Consolidated	Three Months ended March 31, Reconciliation of reportable segment operating income to the Company's consolidated totals: 2017 2016 Total segment operating income $ 45,017 $ 36,862 Amortization of acquired software (5,410 ) (5,459 ) Amortization of customer and trade name intangibles (3,458 ) (3,362 ) Other expense, net (190 ) (467 ) Income before income taxes $ 35,959 $ 27,574

Shareholders' Equity - Summary

Shareholders' Equity - Summary of Activities in Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Equity [Abstract]
Purchases of common stock, Shares	(42)	(758)
Stock option exercises, Shares	324	79
Employee stock plan purchases, Shares	14	8
Purchases of common stock, Amount	$ (6,171)	$ (94,497)
Stock option exercises, Amount	14,851	1,781
Employee stock plan purchases, Amount	$ 1,650	$ 1,238

Shareholders' Equity - Addition

Shareholders' Equity - Additional Information (Detail)	Mar. 31, 2017shares
Equity [Abstract]
Number of shares authorized to be repurchased	1,976,160

Other Assets - Additional Infor

Other Assets - Additional Information (Detail) $ in Millions	3 Months Ended
	Mar. 31, 2017USD ($)
Schedule Of Other Assets [Line Items]
Purchase of held to maturity securities	$ 33.5
Grade corporate and municipal bonds, maturity date	2017 through early-2019
Convertible Preferred Stock | Record Holdings Pty Limited
Schedule Of Other Assets [Line Items]
Cost method investment	$ 15
Investment percentage	20.00%

Revolving Line of Credit - Addi

Revolving Line of Credit - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017USD ($)letters_of_credit	Dec. 31, 2016USD ($)	Nov. 16, 2015USD ($)
Line Of Credit Facility [Line Items]
Outstanding borrowings	$ 0	$ 10,000,000
Number of letters of credit | letters_of_credit	2
Revolving Credit Facility | Credit Agreement
Line Of Credit Facility [Line Items]
Revolving credit facility, maximum borrowing capacity			$ 300,000,000
Revolving line of credit maturity date	Nov. 16, 2020
Debt instrument, description of variable rate basis	Borrowings under the Credit Facility bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.25% to 1.00% or (2) the 30, 60, 90 or 180 day LIBOR rate plus a margin of 1.25% to 2.00%.
Outstanding borrowings	$ 0
Line of credit facility, unused borrowing capacity	$ 297,800,000
Revolving Credit Facility | Credit Agreement | Prime Commercial Lending Rate
Line Of Credit Facility [Line Items]
Effective percentage interest rate	4.04%
Revolving Credit Facility | Credit Agreement | Libor Rate
Line Of Credit Facility [Line Items]
Effective percentage interest rate	2.23%
Revolving Credit Facility | Credit Agreement | Minimum | Prime Commercial Lending Rate
Line Of Credit Facility [Line Items]
Line of credit facility interest rate	0.25%
Revolving Credit Facility | Credit Agreement | Minimum | Libor Rate
Line Of Credit Facility [Line Items]
Line of credit facility interest rate	1.25%
Revolving Credit Facility | Credit Agreement | Maximum | Prime Commercial Lending Rate
Line Of Credit Facility [Line Items]
Line of credit facility interest rate	1.00%
Revolving Credit Facility | Credit Agreement | Maximum | Libor Rate
Line Of Credit Facility [Line Items]
Line of credit facility interest rate	2.00%
Letter of Credit | Credit Agreement
Line Of Credit Facility [Line Items]
Letters of credit, outstanding	$ 2,200,000
Letter of Credit | Revolving Credit Facility | Credit Agreement
Line Of Credit Facility [Line Items]
Revolving credit facility, maximum borrowing capacity			$ 10,000,000

Income Tax Provision - Addition

Income Tax Provision - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Effective income tax rates	10.20%	33.90%
Federal income tax rate	35.00%	35.00%
Excess tax benefit	$ 10,100	$ 1,200
Income tax payments	$ 161	$ 71

Earnings Per Share - Computatio

Earnings Per Share - Computation of Basic Earnings and Diluted Earnings Per Share Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Net income	$ 32,306	$ 18,224
Weighted-average basic common shares outstanding (in shares)	36,845	36,549
Stock options (in shares)	2,087	2,522
Denominator for diluted earnings per share - Adjusted weighted-average shares (in shares)	38,932	39,071
Basic (USD per share)	$ 0.88	$ 0.50
Diluted (USD per share)	$ 0.83	$ 0.47

Earnings Per Share - Additional

Earnings Per Share - Additional Information (Detail) - shares shares in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share [Abstract]
Antidilutive securities excluded from computation of earnings per shares (in shares)	1,160	762

Share-Based Compensation - Summ

Share-Based Compensation - Summary of Share-Based Compensation Expense Related to Share-Based Awards (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 8,676	$ 6,480
Cost of software services, maintenance and subscriptions
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	2,097	1,317
Selling, general and administrative expenses
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Share-based compensation expense	$ 6,579	$ 5,163

Segment and Related Informati29

Segment and Related Information - Additional Information (Detail)	3 Months Ended
	Mar. 31, 2017Business_UnitSegment
Segment Reporting Information [Line Items]
Number of business units | Business_Unit	4
Enterprise Software
Segment Reporting Information [Line Items]
Number of reportable segment | Segment	1

Segment and Related Informati30

Segment and Related Information - Schedule of Segment Revenues and Operations (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting Information [Line Items]
Software licenses and royalties	$ 18,223	$ 16,850
Subscriptions	40,102	34,089
Software services	45,018	42,430
Maintenance	86,859	76,032
Appraisal services	6,612	6,558
Hardware and other	2,728	3,334
Total revenues	199,542	179,293
Segment operating income	45,017	36,862
Operating segments | Enterprise Software
Segment Reporting Information [Line Items]
Software licenses and royalties	16,574	15,654
Subscriptions	38,313	31,985
Software services	40,668	38,605
Maintenance	82,166	71,400
Hardware and other	2,728	3,036
Intercompany	2,163	1,160
Total revenues	182,612	161,840
Segment operating income	52,051	40,669
Operating segments | Appraisal and Tax
Segment Reporting Information [Line Items]
Software licenses and royalties	1,649	1,196
Subscriptions	1,789	2,104
Software services	4,350	3,825
Maintenance	4,693	4,632
Appraisal services	6,612	6,558
Hardware and other	0	15
Total revenues	19,093	18,330
Segment operating income	4,214	4,830
Corporate
Segment Reporting Information [Line Items]
Hardware and other	0	283
Intercompany	(2,163)	(1,160)
Total revenues	(2,163)	(877)
Segment operating income	$ (11,248)	$ (8,637)

Segment and Related Informati31

Segment and Related Information - Reconciliation of Operating Income from Segments to Consolidated (Detail) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Total segment operating income	$ 45,017	$ 36,862
Amortization of acquired software	(5,410)	(5,459)
Amortization of customer and trade name intangibles	(3,458)	(3,362)
Other expense, net	(190)	(467)
Income before income taxes	35,959	27,574
Segment Reconciling Items
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items]
Amortization of acquired software	(5,410)	(5,459)
Amortization of customer and trade name intangibles	(3,458)	(3,362)
Other expense, net	$ (190)	$ (467)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail)	Mar. 31, 2017LegalMatter
Commitments and Contingencies Disclosure [Abstract]
Number of material legal proceedings pending	0