Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 17, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 1-10485 | ||
Entity Registrant Name | TYLER TECHNOLOGIES, INC. | ||
Entity Incorporation, State | DE | ||
Entity Tax Identification Number | 75-2303920 | ||
Entity Address, Street | 5101 Tennyson Parkway | ||
Entity Address, City | Plano, | ||
Entity Address, State | TX | ||
Entity Address, Postal Zip Code | 75024 | ||
City Area Code | 972 | ||
Local Phone Number | 713-3700 | ||
Title of each class | COMMON STOCK, $0.01 PAR VALUE | ||
Trading symbol | TYL | ||
Name of each exchange on which registered | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 13,728,101,720 | ||
Entity Common Stock, Shares Outstanding | 40,576,730 | ||
Documents Incorporated by Reference | Certain information required by Part III of this annual report is incorporated by reference from the registrant’s definitive proxy statement for its annual meeting of stockholders to be held on May 11, 2021. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000860731 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 1,116,663 | $ 1,086,427 | $ 935,282 |
Cost of revenues: | |||
Total cost of revenues | 574,151 | 569,527 | 495,704 |
Gross profit | 542,512 | 516,900 | 439,578 |
Selling, general and administrative expenses | 259,561 | 257,746 | 207,605 |
Research and development expense | 88,363 | 81,342 | 63,264 |
Amortization of customer and trade name intangibles | 21,662 | 21,445 | 16,217 |
Operating income | 172,926 | 156,367 | 152,492 |
Other income, net | 2,116 | 3,471 | 3,378 |
Income before income taxes | 175,042 | 159,838 | 155,870 |
Income tax (benefit) provision | (19,778) | 13,311 | 8,408 |
Net income | $ 194,820 | $ 146,527 | $ 147,462 |
Earnings per common share: | |||
Basic (USD per share) | $ 4.87 | $ 3.79 | $ 3.84 |
Diluted (USD per share) | $ 4.69 | $ 3.65 | $ 3.68 |
Software licenses and royalties | |||
Revenues: | |||
Total revenues | $ 73,164 | $ 100,205 | $ 93,441 |
Cost of revenues: | |||
Total cost of revenues | 3,339 | 3,938 | 3,802 |
Subscriptions | |||
Revenues: | |||
Total revenues | 350,648 | 296,352 | 220,547 |
Software services | |||
Revenues: | |||
Total revenues | 186,409 | 213,061 | 191,269 |
Maintenance | |||
Revenues: | |||
Total revenues | 467,513 | 430,318 | 384,521 |
Acquired software | |||
Cost of revenues: | |||
Total cost of revenues | 31,962 | 30,642 | 22,972 |
Subscriptions, software services and maintenance | |||
Cost of revenues: | |||
Total cost of revenues | 510,504 | 502,138 | 438,923 |
Appraisal services | |||
Revenues: | |||
Total revenues | 21,127 | 23,479 | 21,846 |
Cost of revenues: | |||
Total cost of revenues | 15,945 | 15,337 | 14,299 |
Hardware and other | |||
Revenues: | |||
Total revenues | 17,802 | 23,012 | 23,658 |
Cost of revenues: | |||
Total cost of revenues | $ 12,401 | $ 17,472 | $ 15,708 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 603,623 | $ 232,682 |
Accounts receivable (less allowance for losses and sales adjustments of $9,255 in 2020 and $5,738 in 2019) | 382,319 | 374,089 |
Short-term investments | 72,187 | 39,399 |
Prepaid expenses | 30,864 | 24,717 |
Income tax receivable | 21,598 | 6,482 |
Other current assets | 2,479 | 2,328 |
Total current assets | 1,113,070 | 679,697 |
Accounts receivable, long-term | 21,417 | 22,432 |
Operating lease right-of-use assets | 18,734 | 18,992 |
Property and equipment, net | 168,004 | 171,861 |
Other assets: | ||
Goodwill | 838,428 | 840,117 |
Other intangibles, net | 331,189 | 378,914 |
Non-current investments | 82,640 | 42,235 |
Other non-current assets | 33,792 | 37,366 |
Total assets | 2,607,274 | 2,191,614 |
Current liabilities: | ||
Accounts payable | 14,011 | 14,977 |
Accrued liabilities | 83,084 | 75,234 |
Operating lease liabilities | 5,904 | 6,387 |
Deferred revenue | 461,278 | 412,495 |
Total current liabilities | 564,277 | 509,093 |
Revolving line of credit | 0 | 0 |
Deferred revenue, long-term | 100 | 199 |
Deferred income taxes | 40,507 | 48,442 |
Operating lease liabilities, long-term | 16,279 | 16,822 |
Commitments and contingencies | 0 | 0 |
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 in 2020 and 2019 | 481 | 481 |
Additional paid-in capital | 905,332 | 739,478 |
Accumulated other comprehensive loss, net of tax | (46) | (46) |
Retained earnings | 1,112,156 | 917,336 |
Treasury stock, at cost; 7,608,627 and 8,839,352 shares in 2020 and 2019, respectively | (31,812) | (40,191) |
Total shareholders' equity | 1,986,111 | 1,617,058 |
Liabilities and Shareholders' equity, Total | $ 2,607,274 | $ 2,191,614 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 9,255 | $ 5,738 |
Preferred stock, par value (in dollars per share) | $ 10 | $ 10 |
Preferred stock, shares authorized (shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (shares) | 48,147,969 | 48,147,969 |
Treasury stock (shares) | 7,608,627 | 8,839,352 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash flows from operating activities: | |||
Net income | $ 194,820 | $ 146,527 | $ 147,462 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization | 81,657 | 76,672 | 61,759 |
Share-based compensation expense | 67,365 | 59,967 | 52,740 |
Provision for losses and sales adjustments - accounts receivable | 3,517 | 1,636 | (569) |
Operating lease right-of-use assets - non cash | 5,782 | 5,397 | 0 |
Deferred income tax benefit | (7,936) | (6,088) | (5,069) |
Changes in operating assets and liabilities, exclusive of effects of acquired companies: | |||
Accounts receivable | (10,733) | (65,738) | (50,916) |
Income tax receivable | (15,117) | (1,925) | 6,642 |
Prepaid expenses and other current assets | (8,304) | (8,976) | (588) |
Accounts payable | (967) | 7,403 | (2,416) |
Operating lease liabilities | (6,549) | (6,113) | 0 |
Accrued liabilities | 2,870 | 1,516 | (2,445) |
Deferred revenue | 48,684 | 44,442 | 43,603 |
Net cash provided by operating activities | 355,089 | 254,720 | 250,203 |
Cash flows from investing activities: | |||
Additions to property and equipment | (22,690) | (37,236) | (27,424) |
Purchase of marketable security investments | (156,618) | (54,742) | (115,625) |
Proceeds from marketable security investments | 82,742 | 70,796 | 81,205 |
Purchase of equity investment in common shares | (10,000) | 0 | 0 |
Proceeds from the sale of equity investment in preferred shares | 15,000 | 0 | 0 |
Capitalized software development costs | (5,776) | (4,804) | 0 |
Cost of acquisitions, net of cash acquired | (1,292) | (218,734) | (178,093) |
Decrease (increase) in other | 314 | (295) | 1,682 |
Net cash used by investing activities | (98,320) | (245,015) | (238,255) |
Cash flows from financing activities: | |||
Decrease in net borrowings on revolving line of credit | 0 | 0 | 0 |
Purchase of treasury shares | (15,484) | (17,786) | (146,553) |
Payment of contingent consideration | (5,619) | 0 | 0 |
Proceeds from exercise of stock options | 124,363 | 96,908 | 74,907 |
Contributions from employee stock purchase plan | 10,912 | 9,576 | 8,051 |
Net cash provided (used) by financing activities | 114,172 | 88,698 | (63,595) |
Net increase (decrease) in cash and cash equivalents | 370,941 | 98,403 | (51,647) |
Cash and cash equivalents at beginning of period | 232,682 | 134,279 | 185,926 |
Cash and cash equivalents at end of period | $ 603,623 | $ 232,682 | $ 134,279 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsCumulative Effect, Period of Adoption, Adjustment | Treasury Stock |
Balance at Dec. 31, 2017 | $ 1,191,736 | $ 481 | $ 626,867 | $ (46) | $ 624,463 | $ (60,029) | ||
Balance, shares at Dec. 31, 2017 | 48,148 | 10,262 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 147,462 | 147,462 | ||||||
Issuance/ Exercise of stock options | $ 74,907 | 44,458 | $ 30,449 | |||||
Issuance/ Exercise of stock options (in shares) | 1,126 | 1,126 | ||||||
Stock compensation | $ 52,740 | 52,740 | ||||||
Issuance of shares pursuant to employee stock purchase plan | $ 8,051 | 7,370 | $ 681 | |||||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 45 | 45 | ||||||
Treasury stock purchases | $ (150,050) | $ (150,050) | ||||||
Treasury stock purchases (in shares) | (781) | (781) | ||||||
Balance at Dec. 31, 2018 | $ 1,324,846 | $ (1,116) | $ 481 | 731,435 | (46) | 771,925 | $ (1,116) | $ (178,949) |
Balance, shares at Dec. 31, 2018 | 48,148 | 9,872 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Accounting Standards Update | us-gaap:AccountingStandardsUpdate201602Member | |||||||
Net income | $ 146,527 | 146,527 | ||||||
Issuance/ Exercise of stock options | $ 96,908 | (52,833) | $ 149,741 | |||||
Issuance/ Exercise of stock options (in shares) | 999 | 1,075 | ||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement | $ (5,361) | $ (5,361) | ||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement (in shares) | (23) | |||||||
Stock compensation | 59,967 | 59,967 | ||||||
Issuance of shares pursuant to employee stock purchase plan | $ 9,576 | 909 | $ 8,667 | |||||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 53 | 53 | ||||||
Treasury stock purchases | $ (14,289) | $ (14,289) | ||||||
Treasury stock purchases (in shares) | (72) | (72) | ||||||
Balance at Dec. 31, 2019 | $ 1,617,058 | $ 481 | 739,478 | (46) | 917,336 | $ (40,191) | ||
Balance, shares at Dec. 31, 2019 | 48,148 | 8,839 | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Net income | 194,820 | 194,820 | ||||||
Issuance/ Exercise of stock options | $ 124,363 | 90,636 | $ 33,727 | |||||
Issuance/ Exercise of stock options (in shares) | 1,174 | 1,283 | ||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement | $ (12,923) | $ (12,923) | ||||||
Employee taxes paid for withheld shares for taxes upon equity award settlement (in shares) | (34) | |||||||
Stock compensation | 67,365 | 67,365 | ||||||
Issuance of shares pursuant to employee stock purchase plan | $ 10,912 | 7,853 | $ 3,059 | |||||
Issuance of shares pursuant to employee stock purchase plan (in shares) | 40 | 40 | ||||||
Treasury stock purchases | $ (15,484) | $ (15,484) | ||||||
Treasury stock purchases (in shares) | (59) | (59) | ||||||
Balance at Dec. 31, 2020 | $ 1,986,111 | $ 481 | $ 905,332 | $ (46) | $ 1,112,156 | $ (31,812) | ||
Balance, shares at Dec. 31, 2020 | 48,148 | 7,609 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES DESCRIPTION OF BUSINESS We provide integrated software systems and related services for the public sector, with a focus on local governments. We develop and market a broad line of software solutions and services to address the information technology (“IT”) needs primarily of cities, counties, schools and other local government entities. In addition, we provide professional IT services, including software and hardware installation, data conversion, training, and for certain customers, product modifications, along with continuing maintenance and support for customers using our systems. We also provide subscription-based services such as software as a service (“SaaS”) arrangements, which primarily utilize the Tyler private cloud, and electronic document filing solutions (“e-filing”). In addition, we provide property appraisal outsourcing services for taxing jurisdictions. Impact of the COVID-19 Pandemic In March 2020, the World Health Organization declared the outbreak of a COVID-19 pandemic ("COVID-19"), which continues to spread throughout the U.S. and the world and has resulted in authorities implementing numerous measures to contain the virus, including travel bans and restrictions, quarantines, shelter-in-place orders, and business limitations and shutdowns. While we are unable to accurately predict the full impact that COVID-19 will have on our results from operations, financial condition, liquidity and cash flows due to numerous uncertainties, including the duration and severity of the pandemic and containment measures and associated compliance, the current environment has negatively impacted our revenues for fiscal year 2020. Because an increasing portion of our revenues are considered recurring in nature, the effect of COVID-19 on our results of operations may also not be fully reflected for some time. We continue to see some impact on our business in the near term with delays in government procurement processes and uncertainty around public sector budgets, as well as delays in implementations caused by travel restrictions, closed offices, or clients shifting focus to more pressing issues. We have addressed those challenges through adapting the way we do business – encouraging web and video conferencing, conducting virtual sales demonstrations and delivering professional services remotely. Our priorities during this crisis are protecting the health and safety of our employees and our clients. Our IT systems and applications support a remote workforce. Prior to the pandemic, many of our employees worked remotely. In response to the pandemic, we encouraged all employees who are able to do so to work from home, equipping them with resources necessary to continue uninterrupted. We were able to transition the vast majority of our employees to this work-from-home posture. This reduces the number of team members in our offices to those uniquely needed for essential on-site services, such as network operations support staff, and allows for “social distancing” as directed by the Centers for Disease Control ("CDC"). The pandemic has delayed some government procurement processes and is expected to impact our ability to complete certain implementations, negatively impacting our revenue. It could also negatively impact the timing of client payments to us. We continue to monitor these trends in order to respond to the ever-changing impact of COVID-19 on our clients and Tyler’s operations. For the twelve months ended December 31, 2020, the impact of the COVID-19 pandemic resulted in lower revenues from software licenses, software services, appraisal services, and other revenues. Lower software licenses compared to prior periods are attributed to slower sales cycles as government procurement processes are delayed and contract signings have been pushed to future periods. Software services and appraisal services revenue declines are attributed to delays in implementations caused by travel restrictions and shelter-in-place orders in effect during the period. Other revenues were lower compared to prior periods primarily as a result of the cancellation of our 2020 Connect user conference. Lower revenues compared to prior periods were offset by cost savings attributed to lower spend on travel, user conferences and trade show expenses, health claims and other employee-related expenses. If, and as travel restrictions are relaxed, we expect software services and appraisal services revenues to increase as the limited number of our clients who require that all or a portion of their services be delivered onsite will be able to receive those services. Also, we are adapting by changing the way we do business, encouraging web and video conferencing, conducting virtual sales demonstrations and delivering professional services remotely, which result in increases in staff utilization rates and billable time. Revenues from subscriptions and maintenance, which we consider recurring in nature, comprised 73% of our total consolidated revenue for the twelve months ended December 31, 2020, and include transaction-based revenue streams such as e-filing and online payments. As of December 31, 2020, we had $758.5 million in cash and investments and no outstanding borrowings under our credit facility. We also have substantial additional liquidity available through our undrawn $400 million credit facility, which can be expanded through an accordion feature. During the second quarter of 2020, we completed our annual assessment of goodwill which did not result in an impairment charge. Since our assessment in the second quarter of 2020, we identified no indicators of impairment to goodwill; therefore, we have recorded no impairment as of and for the period ended December 31, 2020. We identified no indicators of impairment to long-lived and other assets and therefore, no impairment was recorded as of and for the period ended December 31, 2020. However, due to significant uncertainty surrounding COVID-19 and market conditions, there are no assurances conditions will not deteriorate in the future. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our parent company and eleven subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income 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 and other comprehensive income. We had no items of other comprehensive income during the years ended December 31, 2020, 2019, and 2018. CASH AND CASH EQUIVALENTS Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value. REVENUE RECOGNITION Nature of Products and Services We earn revenue from software licenses, royalties, subscription-based services, software services, post-contract customer support (“PCS” or “maintenance”), hardware and appraisal services. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Most of our software arrangements with customers contain multiple performance obligations that range from software licenses, installation, training, and consulting to software modification and customization to meet specific customer needs (services), hosting, and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include software services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. Revenue is recognized net of allowances for sales adjustments and any taxes collected from customers, which are subsequently remitted to governmental authorities. Software Arrangements: Software Licenses and Royalties Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to "off-the-shelf" software licenses and specified upgrades at a point in time when control of the software license transfers to the customer, unless the software is not considered distinct. We consider "off-the-shelf" software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the customer for the customer’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where software services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often implemented over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the customer and the remainder of the fee due over a passage of time stipulated by the contract. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and adjusted if needed, when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenues we are entitled to and billed on a quarterly basis in the quarter immediately following the royalty reporting period. Software Services As noted above, some of our software arrangements include services considered highly interdependent or highly interrelated or require significant customization to meet the customer's desired functionality. For these software arrangements, both the software licenses and related software services revenue are not distinct and are recognized over time using the progress-to-completion method. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. When software services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material basis. Post-Contract Customer Support Our customers generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred. Computer Hardware Equipment Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the customer. Subscription-Based Services: Subscription-based services consist primarily of revenues derived from SaaS arrangements, typically utilizing the Tyler private cloud, and electronic filing transactions. Revenue from subscription-based services is generally recognized over time on a ratable basis over the contract term, beginning on the date that our service is made available to the customer. Our subscription contracts are generally three For SaaS arrangements, we evaluate whether the customer has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the customer can feasibly maintain the software on the customer’s hardware or enter into another arrangement with a third-party to host the software. We allocate contract value to each performance obligation of the arrangement that qualifies for treatment as a distinct element based on estimated SSP. We recognize SaaS services ratably over the term of the arrangement, which range from one three Electronic filing transaction fees primarily pertain to documents filed with the courts by attorneys and other third-parties via our e-filing services and retrieval of filed documents via our access services. For each document filed with a court, the filer generally pays a transaction fee and a court filing fee to us and we remit a portion of the transaction fee and the filing fee to the court. We record as revenue the transaction fee, while the portion of the transaction fee remitted to the courts is recorded as cost of revenues as we are acting as a principal in the arrangement. Court filing fees collected on behalf of the courts and remitted to the courts are recorded on a net basis and thus do not affect the statement of comprehensive income. Other transaction-based fees primarily relate to online payment services, which are offered with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the factors identified in ASC 606-10-55-36 through 55-40, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the customer) and record the net amount as revenue. For e-filing transaction fees and certain other transaction-based revenues, we have the right to charge the customer an amount that directly corresponds with the value to the customer of our performance to date. Therefore, we recognize revenue for these services over time based on the amount billable to the customer in accordance with the 'as invoiced' practical expedient in ASC 606-10-55-18. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination and set-up costs associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the useful life. Appraisal Services: For our property appraisal projects, we recognize revenue using the progress-to-completion method since many of these projects are executed over one Significant Judgments: Our contracts with customers often include multiple performance obligations to a customer. When a software arrangement (license or subscription) includes both software licenses and software services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the software services and recognized over time. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine SSP using the expected cost-plus margin approach. For arrangements that involve significant production, modification or customization of the software, or where software services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the customer over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred, or value added. The progress-to-completion method generally results in the recognition of reasonably consistent profit margins over the life of a contract because we can provide reasonably dependable estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit margin in the range of estimates is used until the results can be estimated more precisely. These arrangements are often implemented over an extended time period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates, additional revenue for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable. Refer to Note 15 - "Disaggregation of Revenue" for further information, including the economic factors that affect the nature, amount, timing, and uncertainty of revenue and cash flows of our various revenue categories. Contract Balances: Accounts receivable and allowance for losses and sales adjustments Timing of revenue recognition may differ from the timing of invoicing to customers. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record an unbilled receivable related to revenue recognized for on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. In connection with our appraisal services contracts and certain software services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) property appraisal services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing normally occurs subsequently and may span another accounting period; (2) software services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (3) software revenue for which we have recognized revenue at the point in time when the software is made available to the customer but the billing has not yet been submitted to the customer; (4) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 20% retention) until final and satisfactory project completion is achieved; and (5) in a limited number of cases, extended payment terms, which may be granted to customers with whom we generally have a long-term relationship and favorable collection history. As of December 31, 2020, and December 31, 2019, total current and long-term accounts receivable, net of allowance for losses and sales adjustments, was $403.7 million and $396.5 million, respectively. We have recorded unbilled receivables of $140.8 million and $134.0 million at December 31, 2020, and December 31, 2019, respectively. Included in unbilled receivables are retention receivables of $13.1 million at December 31, 2020, and December 31, 2019, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings. Unbilled receivables expected to be collected within one year have been included with accounts receivable, current portion in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with accounts receivable, long-term portion in the accompanying consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront. We maintain allowances for losses and sales adjustments, which losses are recorded against revenue at the time the loss is incurred. Since most of our clients are domestic governmental entities, we rarely incur a credit loss resulting from the inability of a client to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for losses and sales adjustments may require revision, include, but are not limited to, managing our client’s expectations regarding the scope of the services to be delivered and defects or errors in new versions or enhancements of our software products. Our allowance for losses and sales adjustments of $9.3 million and $5.7 million at December 31, 2020, and December 31, 2019, respectively, does not include provisions for credit losses. As of January 1, 2020, we adopted ASU 2016-13 and primarily evaluated our historical experience with credit losses related to trade and other receivables. Because we have not experienced any historical credit losses with the majority of our clients, we have no basis to record a reserve for credit losses as defined by the standard. The following table summarizes the changes in the allowance for losses and sales adjustments: Years ended December 31, 2020 2019 2018 Balance at beginning of year $ 5,738 $ 4,647 $ 5,427 Provisions for losses and sales adjustments - accounts receivable 3,517 1,636 (569) Collections of accounts previously written off — (545) (211) Balance at end of year $ 9,255 $ 5,738 $ 4,647 Deferred Revenue The majority of deferred revenue consists of deferred maintenance revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under software licensing, subscription-based services, software and appraisal services and hardware installation. Refer to Note 16 - "Deferred Revenue and Performance Obligations" for further information, including deferred revenue by segment and changes in deferred revenue during the period. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three Prepaid expenses and other current assets include direct and incremental costs such as commissions associated with arrangements for which revenue recognition has been deferred. Such costs are expensed at the time the related revenue is recognized. USE OF ESTIMATES The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, determining the SSP of performance obligations, variable consideration, and other obligations such as returns and refunds; loss contingencies; the estimated useful life of deferred commissions; the carrying amount and estimated useful lives of intangible assets; the carrying amount of operating lease right-of-use assets and operating lease liabilities; determining share-based compensation expense; the allowance for losses and sales adjustments; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates. PROPERTY AND EQUIPMENT, NET Property, equipment and purchased software are recorded at original cost and increased by the cost of any significant improvements after purchase. We expense maintenance and repairs when incurred. Depreciation and amortization is calculated using the straight-line method over the shorter of the asset’s estimated useful life or the term of the lease in the case of leasehold improvements. For income tax purposes, we use accelerated depreciation methods as allowed by tax laws. RESEARCH AND DEVELOPMENT COSTS We expensed research and development expense of $88.4 million in 2020, $81.3 million in 2019, and $63.3 million in 2018. INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences". We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be "realized". SHARE-BASED COMPENSATION We have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three three Stock Compensation . See Note 9 – “Share-Based Compensation” for further information. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including identifiable intangible assets, in connection with our business combinations. Upon acquisition, goodwill is assigned to the reporting unit that is expected to benefit from the synergies of the business combination, which is the reporting unit to which the related acquired technology is assigned. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by executive management. We assess goodwill for impairment annually as of April 1st, or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying value before applying the quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, an impairment charge is recorded against goodwill for the amount of that excess. The impairment is limited to the amount of goodwill in that reporting unit. The fair values calculated in our impairment tests are determined using discounted cash flow models involving several assumptions. The assumptions that are used are based upon what we believe a hypothetical marketplace participant would use in estimating fair value. We evaluate the reasonableness of the fair value calculations of our reporting units by comparing the total of the fair value of all of our reporting units to our total market capitalization. As part of our annual impairment test, our qualitative assessments included our estimated effects of COVID-19 for all reporting units except for the data and insights reporting unit. As a result of these qualitative assessments, we determined that it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative impairment test. We did perform a quantitative assessment for goodwill of $75.7 million associated with our data and insights business unit and concluded no impairment existed as of our annual assessment date. For most of our reporting units, goodwill relates to a combination of legacy and acquired businesses and as a result those units have fair values that substantially exceed their underlying carry |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS 2019 On October 30, 2019, we acquired certain assets of Courthouse Technologies, Ltd ("CHT"), an industry-leading provider of jury management systems that offers a fully integrated, end-to-end SaaS solution to manage all facets of juror management, from source list generation to juror processing and payment. The total purchase price was approximately $20.4 million paid in cash. In 2020, our final valuation of the fair market value of CHT's assets and liabilities resulted in the adjustment to the preliminary opening balance sheet. These adjustments related to an increased allocation to customer related intangibles and reduction to goodwill of approximately $1.7 million. On February 28, 2019, we acquired all of the capital stock of MP Holdings Parent, Inc. dba MicroPact ("MicroPact"), a leading provider of commercial off-the-shelf ("COTS") solutions, including entellitrak®, a low-code application development platform for case management and business process management used extensively in the public sector. The total purchase price, net of cash acquired of $2.0 million, was approximately $201.8 million consisting of $198.2 million paid in cash. In 2020, we paid $5.6 million in contingent consideration. We have no contingent consideration accrued as of December 31, 2020. On February 1, 2019, we acquired all the assets of Civic, LLC ("MyCivic"), a company that provides software solutions to connect communities. The total purchase price was $3.7 million in cash. As of December 31, 2020, the purchase price allocations for CHT, MicroPact and MyCivic are complete. Our balance sheet as of December 31, 2020, reflects the allocation of the purchase price to the assets acquired based on their fair value at the date of each acquisition. The fair value of the assets and liabilities acquired are based on valuations using Level III, unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The operating results of all 2019 acquisitions are included with the operating results of the Enterprise Software segment since their date of acquisition. In 2019, we incurred fees of approximately $1.1 million for financial advisory, legal, accounting, due diligence, valuation and other various services necessary to complete these acquisitions. These fees were expensed in 2019 and are included in selling, general and administrative expenses on the consolidated statement of comprehensive income. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following at December 31: Useful 2020 2019 Land — $ 18,653 $ 18,653 Building and leasehold improvements 5-39 147,729 137,448 Computer equipment and purchased software 3-5 108,571 99,435 Furniture and fixtures 5 30,666 28,506 Transportation equipment 5 295 402 305,914 284,444 Accumulated depreciation and amortization (137,910) (112,583) Property and equipment, net $ 168,004 $ 171,861 Depreciation expense was $25.5 million in 2020, $23.4 million in 2019, and $21.2 million in 2018. We paid $9.9 million and $20.8 million for real estate and the expansion of existing buildings in 2020 and 2019, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the two years ended December 31, 2020 are as follows: Enterprise Appraisal Total Balance as of 12/31/2018 $ 739,550 $ 14,168 $ 753,718 Goodwill acquired related to the purchase of MicroPact 76,319 — 76,319 Goodwill acquired related to other acquisitions 10,080 — 10,080 Balance as of 12/31/2019 825,949 14,168 840,117 Purchase price adjustments related to CHT acquisition (1,689) — (1,689) Balance as of 12/31/2020 $ 824,260 $ 14,168 $ 838,428 Other intangible assets and related accumulated amortization consists of the following at December 31: 2020 2019 Gross carrying amount of other intangibles: Customer related intangibles $ 322,619 $ 321,019 Acquired software 262,286 262,286 Trade names 22,905 22,905 Capitalized software development costs 10,581 4,804 Leases acquired 5,037 5,037 623,428 616,051 Accumulated amortization (292,239) (237,137) Total other intangibles, net $ 331,189 $ 378,914 Amortization expense for acquired software and capitalized software development costs are recorded to cost of revenues. Amortization expense for customer relationships and trade names are recorded to selling, general and administrative expenses. Total amortization expense for other intangibles was $55.1 million in 2020, $52.8 million in 2019, and $39.6 million in 2018. The amortization periods of other intangible assets is summarized in the following table: December 31, 2020 December 31, 2019 Gross Weighted Accumulated Amortization Gross Weighted Accumulated Amortization Non-amortizable intangibles: Goodwill $ 838,428 — $ — $ 840,117 — $ — Amortizable intangibles: Customer related intangibles $ 322,619 16 years $ 116,609 $ 321,019 16 years $ 97,320 Acquired software 262,286 7 years 162,378 262,286 7 years 130,416 Trade names 22,905 11 years 9,366 22,905 11 years 7,205 Capitalized software development costs 10,581 5 years 1,460 4,804 5 years 296 Leases acquired 5,037 9 years 2,426 5,037 9 years 1,900 Estimated annual amortization expense related to acquired leases will be recorded as a reduction to hardware and other revenue and is expected to be $525,000 in 2021, $525,000 in 2022, $525,000 in 2023, $525,000 in 2024, $397,000 in 2025, and $114,000 thereafter . Estimated annual amortization expense related to other intangibles, including customer relationships, acquired software, trade names and capitalized software development costs. Capitalized software in progress of $4.5 million has been excluded from the estimated annual amortization expense table below: 2021 $ 54,411 2022 50,713 2023 32,562 2024 31,978 2025 30,622 Thereafter 123,805 $ 324,091 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following at December 31: 2020 2019 Accrued wages, bonuses and commissions $ 63,814 $ 49,126 Other accrued liabilities 19,270 26,108 $ 83,084 $ 75,234 |
REVOLVING LINE OF CREDIT
REVOLVING LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
REVOLVING LINE OF CREDIT | REVOLVING LINE OF CREDIT On September 30, 2019, we entered into a $400 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 unsecured revolving credit in an aggregate principal amount of up to $400 million, including a $25 million sublimit for letters of credit. The Credit Facility matures on September 30, 2024. 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 0.125% to 0.75% or (2) the 30, 60, 90 or 180-day LIBOR rate plus a margin of 1.125% to 1.75%. As of December 31, 2020, our interest rate was 3.38% under the prime rate option or approximately 1.27% under the 30-day LIBOR option. 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 December 31, 2020, we were in compliance with those covenants. At December 31, 2020, we had no outstanding borrowings and had unused borrowing capacity of $400 million under the Credit Facility . In addition, as of December 31, 2020, we had one outstanding standalone letter of credit totaling $2 million in favor of a client contract. The letter of credit guarantees our performance under the contract and expires in 2021. We paid interest of $610,000 in 2020, $1,750,000 in 2019, and $770,000 in 2018. |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX Income tax (benefit) provision on income from operations consists of the following: Years Ended December 31, 2020 2019 2018 Current: Federal $ (10,538) $ 12,814 $ 9,110 State (1,304) 6,585 4,367 (11,842) 19,399 13,477 Deferred (7,936) (6,088) (5,069) $ (19,778) $ 13,311 $ 8,408 Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows: Years Ended December 31, 2020 2019 2018 Federal income tax expense at statutory rate $ 36,759 $ 33,566 $ 32,733 State income tax, net of federal income tax benefit 6,677 6,999 7,953 Net operating loss carryback (3,445) — — Excess tax benefits of share-based compensation (60,190) (29,819) (32,487) Adjustments from the 2017 Tax Cuts and Jobs Act — — (1,750) Tax credits (3,867) (3,446) (3,715) Non-deductible business expenses 4,199 6,011 5,655 Other, net 89 — 19 $ (19,778) $ 13,311 $ 8,408 The Coronavirus Aid, Relief and Economic Security ("CARES") Act, which was signed into law on March 27, 2020, provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the U.S. economy. The assistance includes tax relief and government loans, and investments and grants for entities in affected industries (e.g., health care, airlines). The business tax provisions of the CARES Act include temporary changes to income and non-income based tax laws, including the ability to utilize net operating losses, interest expense deductions, alternative minimum tax credit refunds, charitable contributions, and depreciation of qualified improvement property. Measures not related to income-based taxes include (1) allowing an employer to pay its share of Social Security payroll taxes that would otherwise be due from the date of enactment through December 31, 2020, over the following two years and (2) allowing eligible employers subject to closure due to the COVID-19 pandemic to receive a 50% credit on qualified wages against their employment taxes each quarter, with any excess credits eligible for refunds. The most significant provision of the CARES Act impacting our accounting for income taxes is the five-year carryback allowance for taxable net operating losses generated in tax years in which the statutory federal income tax rate is 21.0%, to periods in which the statutory federal income tax rate is 35.0%. We intend to carry back our 2020 taxable loss into our 2015 tax year, which results in a $3.4 million income tax benefit in the current year. The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are: 2020 2019 Deferred income tax assets: Operating expenses not currently deductible $ 9,084 $ 10,214 Stock option and other employee benefit plans 17,446 19,308 Loss and credit carryforwards 27,199 23,841 Total deferred income tax assets 53,729 53,363 Valuation allowance (1,490) (1,923) Total deferred income tax assets, net of valuation allowance 52,239 51,440 Deferred income tax liabilities: Intangible assets (76,766) (84,019) Property and equipment (9,918) (9,265) Prepaid expenses (6,869) (4,922) Deferred revenue 807 (1,676) Total deferred income tax liabilities (92,746) (99,882) Net deferred income tax liabilities $ (40,507) $ (48,442) As of December 31, 2020, we had federal net operating loss carryforwards of approximately $81.5 million, after-tax state net operating loss carryforwards of approximately $3.5 million, and tax credit carryforwards of approximately $8.6 million. The federal net operating loss carryforward will begin to expire in 2032 if not utilized, and a portion of the state net operating loss and tax credit carryforwards begin expiring in 2021 if not utilized. The acquired carryforwards are subject to an annual limitation but are expected to be realized with the exception of certain state net operating loss and tax credit carryforwards. The valuation allowance disclosed in the table above relates to state net operating losses and tax credit carryforwards that are likely to expire before utilization. We believe it is more likely than not that all other deferred tax assets will be realized. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of reversing taxable temporary differences are revised. In connection with the acquisition of Socrata in 2018, we recorded a $1.9 million liability for an uncertain tax position associated with acquired tax credit carryforwards. The unrecognized tax benefits are included in deferred income taxes in our consolidated balance sheets. The entire amount, if recognized, would affect the effective tax rate. There was no change in the balance of unrecognized tax benefits during 2020. Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues for the next 12 months. We are subject to U.S. federal income tax, as well as income tax of multiple state, local and foreign jurisdictions. We are routinely subject to income tax examinations by these taxing jurisdictions, but we do not have a history of, nor do we expect, any material adjustments as a result of these examinations. With few exceptions, major U.S. federal, state, local and foreign jurisdictions are no longer subject to examination for years before 2015. As of February 19, 2021, no significant adjustments have been proposed by any taxing jurisdiction. We paid income taxes, net of refunds received, of $3.3 million in 2020, $21.3 million in 2019, and $6.8 million in 2018. |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY The following table details activity in our common stock: Years Ended December 31, 2020 2019 2018 Shares Amount Shares Amount Shares Amount Stock option exercises 1,174 $ 124,363 999 $ 96,908 1,126 $ 74,907 Purchases of common stock (59) (15,484) (72) (14,289) (781) (150,050) Employee stock plan purchases 40 10,912 53 9,576 45 8,051 Restricted stock units vested, net of withheld shares upon award settlement 76 (12,923) 53 (5,361) — — As of February 19, 2021, we had authorization from our board of directors to repurchase up to 2.5 million additional shares of our common stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Plan In May 2018, stockholders approved the Tyler Technologies, Inc. 2018 Stock Incentive Plan ("the 2018 Plan") which amended and restated the existing Tyler Technologies, Inc. 2010 Stock Option Plan ("the 2010 Plan"). Upon stockholder approval of the 2018 Plan, the remaining shares available for grant under the 2010 Plan were added to the shares authorized for grant under the 2018 Plan. Additionally, any awards previously granted under the 2010 Plan that expire unexercised or are forfeited are added to the shares authorized for grant under the 2018 Plan. During fiscal year 2020, we granted stock awards under the 2018 Plan in the form of stock options, restricted stock units and performance share units. Stock options generally vest after three three Stock Compensation . As of December 31, 2020, there were 2.5 million shares available for future grants under the plan from the 22.9 million shares previously approved by the shareholders. Determining Fair Value of Stock Compensation Valuation and Amortization Method. We estimate the fair value of stock option awards granted using the Black-Scholes option valuation model. For restricted stock unit and performance stock unit awards, we amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The expected life represents the weighted-average period the stock options are expected to be outstanding based primarily on the options’ vesting terms, remaining contractual life and the employees’ expected exercise based on historical patterns. Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock. Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. Expected Dividend Yield. We have not paid any cash dividends on our common stock in more than ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model. Expected Forfeitures. We use historical data to estimate pre-vesting option forfeitures. We record share-based compensation only for those awards that are expected to vest. The following weighted average assumptions were used for options granted: Years Ended December 31, 2020 2019 2018 Expected life (in years) 5.0 6.0 6.0 Expected volatility 27.0 % 26.6 % 26.7 % Risk-free interest rate 0.4 % 1.8 % 2.7 % Expected forfeiture rate — % — % — % Share-Based Award Activity The following table summarizes restricted stock unit and performance stock unit activity during fiscal year 2020 (shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at January 1, 2019 334 $ 221.25 Granted 256 241.19 Vested (76) 221.15 Forfeited (14) 229.75 Unvested at December 31, 2019 500 231.57 Granted 204 379.94 Vested (110) 232.59 Forfeited (7) 266.94 Unvested at December 31, 2020 587 $ 282.45 Options granted, exercised, forfeited and expired are summarized as follows: Number of Weighted Weighted Aggregate Outstanding at December 31, 2017 4,817 $ 107.91 Granted 432 208.21 Exercised (1,126) 66.53 Forfeited (31) 158.80 Outstanding at December 31, 2018 4,092 129.51 Granted 162 251.58 Exercised (999) 96.92 Forfeited (29) 174.54 Outstanding at December 31, 2019 3,226 145.27 Granted 128 403.99 Exercised (1,174) 105.97 Forfeited (3) 165.93 Outstanding at December 31, 2020 2,177 $ 181.63 6 $ 554,709 Exercisable at December 31, 2020 1,424 $ 155.06 6 $ 400,814 We had unvested options to purchase approximately 752,000 shares with a weighted average grant date exercise price of $231.93 as of December 31, 2020, and unvested options to purchase approximately 1.2 million shares with a weighted average grant date exercise price of $188.48 as of December 31, 2019. Other information pertaining to option activity was as follows during the twelve months ended December 31: 2020 2019 2018 Weighted average grant-date fair value of stock options granted $ 98.69 $ 74.54 $ 66.52 Total intrinsic value of stock options exercised $ 292,394 $ 155,899 $ 176,716 Share-Based Compensation Expense The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of comprehensive income: Years Ended December 31, 2020 2019 2018 Cost of subscriptions, software services and maintenance $ 18,125 $ 15,002 $ 13,588 Selling, general and administrative expenses 49,240 44,965 39,152 Total share-based compensation expenses 67,365 59,967 52,740 Excess tax benefit (60,190) (29,819) (32,487) Net decrease in net income $ 7,175 $ 30,148 $ 20,253 As of December 31, 2020, we had $164.0 million of total unrecognized compensation cost related to unvested options and restricted stock units, net of expected forfeitures, which is expected to be amortized over a weighted average amortization period of 3.12 years. Employee Stock Purchase Plan Under our Employee Stock Purchase Plan (“ESPP”) participants may contribute up to 15% of their annual compensation to purchase common shares of Tyler. The purchase price of the shares is equal to 85% of the closing price of Tyler shares on the last day of each quarterly offering period. As of December 31, 2020, there were 664,000 shares available for future issuances under the ESPP from the 2.0 million shares previously approved by the stockholders. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings and diluted earnings per share data were computed as follows: Years Ended December 31, 2020 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 194,820 $ 146,527 $ 147,462 Denominator: Weighted-average basic common shares outstanding 40,035 38,640 38,445 Assumed conversion of dilutive securities: Share-based awards 1,491 1,465 1,678 Denominator for diluted earnings per share - Adjusted weighted-average shares 41,526 40,105 40,123 Earnings per common share: Basic $ 4.87 $ 3.79 $ 3.84 Diluted $ 4.69 $ 3.65 $ 3.68 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
LEASES | LEASES We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire in one year to seven years. Some of these leases include options to extend for up to 10 years. We had no finance leases and no related party lease agreements as of December 31, 2020. Operating lease costs were approximately $10.2 million in 2020, $9.9 million in 2019, and $7.4 million in 2018. The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended For the year ended 2020 2019 Operating lease cost Selling, general and administrative expenses $ 6,524 $ 6,379 Short-term lease cost Selling, general and administrative expenses 1,940 2,269 Variable lease cost Selling, general and administrative expenses 1,760 1,274 Net lease cost $ 10,224 $ 9,922 As of December 31, ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): 2020 2019 Assets: Operating lease right-of-use assets $ 18,734 $ 18,992 Liabilities: Operating leases, short-term 5,904 6,387 Operating leases, long-term 16,279 16,822 Total lease liabilities $ 22,183 $ 23,209 Supplemental information related to leases was as follows: Other Information For the year ended For the year ended 2020 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 8,131 $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 5,524 $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 3 4 Weighted average discount rate 3.28 % 4.00 % As of December 31, 2020, maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2021 $ 7,015 2022 4,853 2023 3,826 2024 3,337 2025 2,198 Thereafter 2,537 Total lease payments 23,766 Less: Interest (1,583) Present value of operating lease liabilities $ 22,183 Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2021 and 2025, some of which have options to extend the lease for up to five years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants was $1.1 million in 2020, $1.1 million in 2019, and $1.2 million in 2018. Rental income is included in hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2021 $ 1,372 2022 1,402 2023 1,432 2024 1,462 2025 858 Thereafter — Total $ 6,526 As of December 31, 2020, we had no additional significant operating or finance leases that had not yet commenced. |
LEASES | LEASES We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire in one year to seven years. Some of these leases include options to extend for up to 10 years. We had no finance leases and no related party lease agreements as of December 31, 2020. Operating lease costs were approximately $10.2 million in 2020, $9.9 million in 2019, and $7.4 million in 2018. The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended For the year ended 2020 2019 Operating lease cost Selling, general and administrative expenses $ 6,524 $ 6,379 Short-term lease cost Selling, general and administrative expenses 1,940 2,269 Variable lease cost Selling, general and administrative expenses 1,760 1,274 Net lease cost $ 10,224 $ 9,922 As of December 31, ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): 2020 2019 Assets: Operating lease right-of-use assets $ 18,734 $ 18,992 Liabilities: Operating leases, short-term 5,904 6,387 Operating leases, long-term 16,279 16,822 Total lease liabilities $ 22,183 $ 23,209 Supplemental information related to leases was as follows: Other Information For the year ended For the year ended 2020 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 8,131 $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 5,524 $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 3 4 Weighted average discount rate 3.28 % 4.00 % As of December 31, 2020, maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2021 $ 7,015 2022 4,853 2023 3,826 2024 3,337 2025 2,198 Thereafter 2,537 Total lease payments 23,766 Less: Interest (1,583) Present value of operating lease liabilities $ 22,183 Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2021 and 2025, some of which have options to extend the lease for up to five years. We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants was $1.1 million in 2020, $1.1 million in 2019, and $1.2 million in 2018. Rental income is included in hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2021 $ 1,372 2022 1,402 2023 1,432 2024 1,462 2025 858 Thereafter — Total $ 6,526 As of December 31, 2020, we had no additional significant operating or finance leases that had not yet commenced. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANSWe provide a defined contribution plan for the majority of our employees meeting minimum service requirements. Eligible employees can contribute up to 30% of their current compensation to the plan subject to certain statutory limitations. We contribute up to a maximum of 3% of an employee’s compensation to the plan. We made contributions to the plan and charged operating results $12.7 million in 2020, $11.5 million in 2019, and $9.3 million in 2018. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Security Incident On September 29, 2020, we filed a Current Report on Form 8-K reporting a security incident (the "Incident") involving ransomware disrupting access to some of our internal IT systems and telephone systems. There is no evidence that the environments where we host client applications were affected, and our hosting services to those clients were not interrupted. There is also no evidence of malicious activity on client networks associated with the Incident. We contained the Incident and recovered from it, resuming normal operations with our clients. We will continue to deploy supplemental remediation efforts as necessary. As part of our immediate response to the Incident, we (1) shut down points of access to external systems and began investigating and remediating the problem; (2) engaged outside IT security and forensics experts to conduct a detailed review and help securely restore affected systems; (3) implemented targeted monitoring systems to supplement the systems we already had in place; and (4) notified law enforcement. We have cooperated with their investigation throughout. We promptly notified our clients of the Incident and provided timely updates to our clients through direct communications and updates to our website. Although we believe we have contained and recovered from the Incident, and that we have taken and will continue to take appropriate remediation steps, we are subject to risk and uncertainties as a result of the Incident. We believe we are in the final phases of our investigation, but there can be no assurance as to what the ongoing impact of the Incident will be, if any. The Incident caused an interruption in parts of our business. We have made insurance claims for lost revenue related to the Incident, (primarily software services revenue) for the year ended December 31, 2020. Insurance reimbursements pertaining to lost revenue represent a contingent gain and any recovery of these revenues will be recorded when received. We do not expect such gains to be material. We incurred $4.2 million in costs associated with the Incident as of December 31, 2020. As of December 31, 2020, we have recorded $1.1 million of accrued insurance recoveries and received $2.4 million of insurance recoveries related to the Incident. The recorded costs consisted primarily of payments to third-party service providers and consultants, including legal fees, and enhancements to our cybersecurity measures. It is expected that we will continue to incur costs related to our response, remediation, and investigatory efforts relating to the Incident. We maintain cybersecurity insurance coverage in an amount that we believe is adequate. Litigation 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. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2020 | |
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 six 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; • data and insights solutions; • platform technologies; and • appraisal and tax software solutions and property appraisal services. In accordance with ASC 280-10, Segment Reporting , we report our results in two segments. 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; courts and justice and public safety software solutions unit; the data and insights solutions unit; and platform technologies solutions unit meet the criteria for aggregation and are presented in one reportable segment, Enterprise Software (“ES”). The ES segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: financial management and education, courts and justice, public safety, planning, regulatory and maintenance, land and vital records management, data and insights and platform technologies processes. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property, land and vital records management as well as 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 noncash amortization of intangible assets associated with their acquisition, 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. Due to the shelter-in-place orders caused by the COVID-19 pandemic, we cancelled our company-wide user conference for the current year. The accounting policies of the reportable segments are the same as those described in Note 1, “Summary of Significant Accounting Policies”. As of January 1, 2020, the land and vital records management business unit, which was previously reported in the ES segment, was moved to the A&T segment to reflect changes in the way in which management makes operating decisions, allocates resources, and manages the growth and profitability of the Company. Prior year amounts for the ES and A&T segments have been adjusted to reflect the segment change. Segment assets primarily consist of net accounts receivable, prepaid expenses and other current assets and net property and equipment, and capitalized software development costs. Corporate assets primarily consist of cash and investments, prepaid insurance, intangibles associated with acquisitions, deferred income taxes and net property and equipment mainly related to unallocated information and technology assets. ES segment capital expenditures included $6.6 million in 2020 and $12.6 million in 2019 for the expansion of existing buildings and purchases of buildings and land. A&T segment capital expenditures included $3.3 million in 2020 and $8.2 million in 2019 for the expansion of existing buildings. For the year ended December 31, 2020 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 64,200 $ 8,964 $ — $ 73,164 Subscriptions 326,284 24,364 — 350,648 Software services 164,520 21,889 — 186,409 Maintenance 429,224 38,289 — 467,513 Appraisal services — 21,127 — 21,127 Hardware and other 17,670 121 11 17,802 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 Depreciation and amortization expense 67,411 1,055 13,191 81,657 Segment operating income 285,271 27,383 (86,104) 226,550 Capital expenditures 11,099 3,823 6,826 21,748 Segment assets $ 847,672 $ 94,149 $ 1,665,453 $ 2,607,274 For the year ended December 31, 2019 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 90,808 $ 9,397 $ — $ 100,205 Subscriptions 279,282 17,070 — 296,352 Software services 179,865 33,196 — 213,061 Maintenance 393,521 36,797 — 430,318 Appraisal services — 23,479 — 23,479 Hardware and other 16,553 203 6,256 23,012 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 Depreciation and amortization expense 64,245 970 11,457 76,672 Segment operating income 255,365 26,918 (73,829) 208,454 Capital expenditures 19,283 8,436 10,379 38,098 Segment assets $ 833,203 $ 91,343 $ 1,267,068 $ 2,191,614 For the year ended December 31, 2018 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 81,299 $ 12,142 $ — $ 93,441 Subscriptions 205,193 15,354 — 220,547 Software services 161,612 29,657 — 191,269 Maintenance 349,387 35,134 — 384,521 Appraisal services — 21,846 — 21,846 Hardware and other 18,387 390 4,881 23,658 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 Depreciation and amortization expense 49,921 1,123 10,715 61,759 Segment operating income 231,819 28,434 (68,572) 191,681 Capital expenditures 9,918 1,241 13,973 25,132 Segment assets $ 554,960 $ 64,810 $ 1,171,193 $ 1,790,963 Reconciliation of reportable segment operating Years Ended December 31, income to the Company's consolidated totals: 2020 2019 2018 Total segment operating income $ 226,550 $ 208,454 $ 191,681 Amortization of acquired software (31,962) (30,642) (22,972) Amortization of customer and trade name intangibles (21,662) (21,445) (16,217) Other income, net 2,116 3,471 3,378 Income before income taxes $ 175,042 $ 159,838 $ 155,870 |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
DISAGGREGATION OF REVENUE | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2020 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 62,029 $ 11,135 $ 73,164 Subscriptions — 350,648 350,648 Software services — 186,409 186,409 Maintenance — 467,513 467,513 Appraisal services — 21,127 21,127 Hardware and other 17,802 — 17,802 Total $ 79,831 $ 1,036,832 $ 1,116,663 For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one three Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2020 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 755,508 $ 62,652 $ — $ 818,160 Non-recurring revenues 246,390 52,102 11 298,503 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 For the year ended December 31, 2019 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 672,804 $ 53,866 $ — $ 726,670 Non-recurring revenues 287,225 66,276 6,256 359,757 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 For the year ended December 31, 2018 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 554,581 $ 50,488 $ — $ 605,069 Non-recurring revenues 261,297 64,035 4,881 330,213 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 Total deferred revenue, including long-term, by segment is as follows: December 31, 2020 December 31, 2019 Enterprise Software $ 422,742 $ 375,838 Appraisal and Tax 36,945 35,487 Corporate 1,691 1,369 Totals $ 461,378 $ 412,694 Changes in total deferred revenue, including long-term, were as follows: 2020 Balance at beginning of year $ 412,694 Deferral of revenue 1,094,185 Recognition of deferred revenue (1,045,501) Balance at end of year $ 461,378 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2020 was $1.59 billion, of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. three |
DEFERRED REVENUE AND PERFORMANC
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2020 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 62,029 $ 11,135 $ 73,164 Subscriptions — 350,648 350,648 Software services — 186,409 186,409 Maintenance — 467,513 467,513 Appraisal services — 21,127 21,127 Hardware and other 17,802 — 17,802 Total $ 79,831 $ 1,036,832 $ 1,116,663 For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one three Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2020 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 755,508 $ 62,652 $ — $ 818,160 Non-recurring revenues 246,390 52,102 11 298,503 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 For the year ended December 31, 2019 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 672,804 $ 53,866 $ — $ 726,670 Non-recurring revenues 287,225 66,276 6,256 359,757 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 For the year ended December 31, 2018 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 554,581 $ 50,488 $ — $ 605,069 Non-recurring revenues 261,297 64,035 4,881 330,213 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 Total deferred revenue, including long-term, by segment is as follows: December 31, 2020 December 31, 2019 Enterprise Software $ 422,742 $ 375,838 Appraisal and Tax 36,945 35,487 Corporate 1,691 1,369 Totals $ 461,378 $ 412,694 Changes in total deferred revenue, including long-term, were as follows: 2020 Balance at beginning of year $ 412,694 Deferral of revenue 1,094,185 Recognition of deferred revenue (1,045,501) Balance at end of year $ 461,378 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2020 was $1.59 billion, of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. three |
DEFERRED COMMISSIONS
DEFERRED COMMISSIONS | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED COMMISSIONS | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2020 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 62,029 $ 11,135 $ 73,164 Subscriptions — 350,648 350,648 Software services — 186,409 186,409 Maintenance — 467,513 467,513 Appraisal services — 21,127 21,127 Hardware and other 17,802 — 17,802 Total $ 79,831 $ 1,036,832 $ 1,116,663 For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one three Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2020 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 755,508 $ 62,652 $ — $ 818,160 Non-recurring revenues 246,390 52,102 11 298,503 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 For the year ended December 31, 2019 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 672,804 $ 53,866 $ — $ 726,670 Non-recurring revenues 287,225 66,276 6,256 359,757 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 For the year ended December 31, 2018 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 554,581 $ 50,488 $ — $ 605,069 Non-recurring revenues 261,297 64,035 4,881 330,213 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 Total deferred revenue, including long-term, by segment is as follows: December 31, 2020 December 31, 2019 Enterprise Software $ 422,742 $ 375,838 Appraisal and Tax 36,945 35,487 Corporate 1,691 1,369 Totals $ 461,378 $ 412,694 Changes in total deferred revenue, including long-term, were as follows: 2020 Balance at beginning of year $ 412,694 Deferral of revenue 1,094,185 Recognition of deferred revenue (1,045,501) Balance at end of year $ 461,378 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2020 was $1.59 billion, of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. three |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS The following events or transactions have occurred subsequent to December 31, 2020. NIC, Inc. On February 9, 2021, Tyler Technologies, Inc. (the “Company”) entered into an Agreement and Plan of Merger (the “Merger Agreement”) by and among the Company, Topos Acquisition, Inc., a Delaware corporation and wholly owned subsidiary of the Company (“Merger Sub”), and NIC Inc., a Delaware corporation (“NIC”). Pursuant to the Merger Agreement, and upon the terms and subject to the conditions therein, Merger Sub will merge with and into NIC (the “Merger”), with NIC surviving the Merger and continuing as a wholly owned subsidiary of the Company . Subject to the terms and conditions of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each issued and outstanding share of Common Stock prior to the Effective Time, par value $0.0001 per share, of NIC (the “NIC Common Stock”) other than (i) shares of NIC Common Stock owned directly or indirectly by the Company, NIC or any of their respective subsidiaries immediately prior to the Effective Time, including shares of NIC held as treasury stock, (ii) shares of NIC Common Stock as to which dissenters’ rights have been properly perfected, and (iii) shares of NIC Common Stock covered by unvested NIC restricted stock awards) will be converted in the Merger into the right to receive $34.00 in cash, without interest (the “Merger Consideration”). Under the terms of the Merger Agreement, the completion of the Merger is subject to certain customary closing conditions, including, among others: (i) adoption of the Merger Agreement by the affirmative vote of the holders of at least a majority of the voting power of the outstanding shares of NIC Common Stock; (ii) the accuracy of the parties’ respective representations and warranties in the Merger Agreement, subject to specified materiality qualifications; (iii) compliance by the parties with their respective covenants in the Merger Agreement in all material respects; (iv) the absence of any order restraining, enjoining, or otherwise prohibiting the consummation of the Merger; and (v) the expiration of the waiting period applicable to the Merger under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended. The Merger Consideration is expected to be financed with a combination of new debt and cash on the Company’s balance sheet. In connection with its entry into the Merger Agreement, the Company obtained a commitment from Goldman Sachs Bank USA for a $1.6 billion 364-day senior unsecured bridge loan facility, subject to customary conditions. The Merger Agreement and the consummation of the transactions contemplated thereby have been unanimously approved by the NIC board of directors, and the NIC board of directors has resolved to recommend to the stockholders of NIC to adopt the Merger Agreement, subject to its terms and conditions. The Merger Agreement provides that, at the Effective Time, with respect to NIC restricted stock awards, (i) each vested restricted stock award will be converted into the right to receive the Merger Consideration with respect to each share of NIC Common Stock subject to such awards, less applicable withholding of taxes and other authorized deductions, (ii) each outstanding unvested performance-based restricted stock award will automatically vest in full, in accordance with the terms of its award agreement, and be converted into the right to receive the Merger Consideration with respect to such number of shares of NIC Common Stock, less applicable withholding of taxes and other authorized deductions, and (iii) each outstanding unvested time-based restricted stock will be assumed by the Company and converted into corresponding awards relating to the Company’s Common Stock in accordance with the terms set forth in the Merger Agreement. The Merger Agreement contains customary representations, warranties and covenants made by each of the Company, Merger Sub, and NIC, including, among others, covenants by NIC regarding the conduct of its business during the pendency of the transactions contemplated by the Merger Agreement, public disclosures and other matters. NIC is required, among other things, not to solicit alternative business combination transactions and, subject to certain exceptions, not to engage in discussions or negotiations regarding an alternative business combination transaction. Both the Company and NIC may terminate the Merger Agreement under certain specified circumstances, including (i) if the Merger is not consummated by June 30, 2021, subject to an extension of up to three months in order to obtain required regulatory approval, (ii) if the approval of the NIC stockholders is not obtained, and (iii) if NIC’s board makes an adverse recommendation change with respect to the proposed transaction or approve or recommend a superior acquisition proposal. In certain circumstances in connection with the termination of the Merger Agreement, including if NIC’s board of directors changes or withdraws its recommendation of the Merger to its stockholders, fails to include its recommendation to shareholders in NIC’s proxy statement, or terminates the Merger Agreement to enter into an agreement with respect to a “superior proposal,” NIC will be required to pay the Company a termination fee of $55 million in cash. The foregoing description of the Merger Agreement does not purport to be complete and is qualified in its entirety by the full text of the Merger Agreement, a copy of which is filed as Exhibit 2.1 to our Form 8-K, dated February 10, 2021, is incorporated by reference herein. |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | QUARTERLY FINANCIAL INFORMATION (unaudited) The following table contains selected financial information from unaudited statements of income for each quarter of 2020 and 2019: Quarters Ended 2020 2019 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 283,285 $ 285,746 $ 271,091 $ 276,541 $ 288,837 $ 275,400 $ 275,124 $ 247,066 Gross profit 138,669 143,509 131,203 129,131 142,275 130,717 127,860 116,048 Income before income taxes 48,412 49,936 41,811 34,883 47,790 40,552 36,419 35,077 Net income 54,094 39,284 53,892 47,550 46,790 40,390 31,999 27,348 Earnings per diluted share $ 1.29 $ 0.94 $ 1.30 $ 1.16 $ 1.15 $ 1.00 $ 0.80 $ 0.69 Shares used in computing diluted 41,925 41,606 41,416 41,144 40,736 40,280 39,813 39,585 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our parent company and eleven subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income 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 and other comprehensive income. We had no items of other comprehensive income during the years ended December 31, 2020, 2019, and 2018. |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value. |
Revenue Recognition | REVENUE RECOGNITION Nature of Products and Services We earn revenue from software licenses, royalties, subscription-based services, software services, post-contract customer support (“PCS” or “maintenance”), hardware and appraisal services. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Most of our software arrangements with customers contain multiple performance obligations that range from software licenses, installation, training, and consulting to software modification and customization to meet specific customer needs (services), hosting, and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include software services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. Revenue is recognized net of allowances for sales adjustments and any taxes collected from customers, which are subsequently remitted to governmental authorities. Software Arrangements: Software Licenses and Royalties Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to "off-the-shelf" software licenses and specified upgrades at a point in time when control of the software license transfers to the customer, unless the software is not considered distinct. We consider "off-the-shelf" software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the customer for the customer’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where software services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often implemented over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the customer and the remainder of the fee due over a passage of time stipulated by the contract. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and adjusted if needed, when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenues we are entitled to and billed on a quarterly basis in the quarter immediately following the royalty reporting period. Software Services As noted above, some of our software arrangements include services considered highly interdependent or highly interrelated or require significant customization to meet the customer's desired functionality. For these software arrangements, both the software licenses and related software services revenue are not distinct and are recognized over time using the progress-to-completion method. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. When software services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material basis. Post-Contract Customer Support Our customers generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred. Computer Hardware Equipment Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the customer. Subscription-Based Services: Subscription-based services consist primarily of revenues derived from SaaS arrangements, typically utilizing the Tyler private cloud, and electronic filing transactions. Revenue from subscription-based services is generally recognized over time on a ratable basis over the contract term, beginning on the date that our service is made available to the customer. Our subscription contracts are generally three For SaaS arrangements, we evaluate whether the customer has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the customer can feasibly maintain the software on the customer’s hardware or enter into another arrangement with a third-party to host the software. We allocate contract value to each performance obligation of the arrangement that qualifies for treatment as a distinct element based on estimated SSP. We recognize SaaS services ratably over the term of the arrangement, which range from one three Electronic filing transaction fees primarily pertain to documents filed with the courts by attorneys and other third-parties via our e-filing services and retrieval of filed documents via our access services. For each document filed with a court, the filer generally pays a transaction fee and a court filing fee to us and we remit a portion of the transaction fee and the filing fee to the court. We record as revenue the transaction fee, while the portion of the transaction fee remitted to the courts is recorded as cost of revenues as we are acting as a principal in the arrangement. Court filing fees collected on behalf of the courts and remitted to the courts are recorded on a net basis and thus do not affect the statement of comprehensive income. Other transaction-based fees primarily relate to online payment services, which are offered with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the factors identified in ASC 606-10-55-36 through 55-40, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the customer) and record the net amount as revenue. For e-filing transaction fees and certain other transaction-based revenues, we have the right to charge the customer an amount that directly corresponds with the value to the customer of our performance to date. Therefore, we recognize revenue for these services over time based on the amount billable to the customer in accordance with the 'as invoiced' practical expedient in ASC 606-10-55-18. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination and set-up costs associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the useful life. Appraisal Services: For our property appraisal projects, we recognize revenue using the progress-to-completion method since many of these projects are executed over one Significant Judgments: Our contracts with customers often include multiple performance obligations to a customer. When a software arrangement (license or subscription) includes both software licenses and software services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the software services and recognized over time. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine SSP using the expected cost-plus margin approach. For arrangements that involve significant production, modification or customization of the software, or where software services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the customer over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred, or value added. The progress-to-completion method generally results in the recognition of reasonably consistent profit margins over the life of a contract because we can provide reasonably dependable estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit margin in the range of estimates is used until the results can be estimated more precisely. These arrangements are often implemented over an extended time period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates, additional revenue for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable. Refer to Note 15 - "Disaggregation of Revenue" for further information, including the economic factors that affect the nature, amount, timing, and uncertainty of revenue and cash flows of our various revenue categories. Contract Balances: Accounts receivable and allowance for losses and sales adjustments Timing of revenue recognition may differ from the timing of invoicing to customers. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record an unbilled receivable related to revenue recognized for on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. In connection with our appraisal services contracts and certain software services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) property appraisal services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing normally occurs subsequently and may span another accounting period; (2) software services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (3) software revenue for which we have recognized revenue at the point in time when the software is made available to the customer but the billing has not yet been submitted to the customer; (4) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 20% retention) until final and satisfactory project completion is achieved; and (5) in a limited number of cases, extended payment terms, which may be granted to customers with whom we generally have a long-term relationship and favorable collection history. As of December 31, 2020, and December 31, 2019, total current and long-term accounts receivable, net of allowance for losses and sales adjustments, was $403.7 million and $396.5 million, respectively. We have recorded unbilled receivables of $140.8 million and $134.0 million at December 31, 2020, and December 31, 2019, respectively. Included in unbilled receivables are retention receivables of $13.1 million at December 31, 2020, and December 31, 2019, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings. Unbilled receivables expected to be collected within one year have been included with accounts receivable, current portion in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with accounts receivable, long-term portion in the accompanying consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront. We maintain allowances for losses and sales adjustments, which losses are recorded against revenue at the time the loss is incurred. Since most of our clients are domestic governmental entities, we rarely incur a credit loss resulting from the inability of a client to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for losses and sales adjustments may require revision, include, but are not limited to, managing our client’s expectations regarding the scope of the services to be delivered and defects or errors in new versions or enhancements of our software products. Our allowance for losses and sales adjustments of $9.3 million and $5.7 million at December 31, 2020, and December 31, 2019, respectively, does not include provisions for credit losses. As of January 1, 2020, we adopted ASU 2016-13 and primarily evaluated our historical experience with credit losses related to trade and other receivables. Because we have not experienced any historical credit losses with the majority of our clients, we have no basis to record a reserve for credit losses as defined by the standard. The following table summarizes the changes in the allowance for losses and sales adjustments: Years ended December 31, 2020 2019 2018 Balance at beginning of year $ 5,738 $ 4,647 $ 5,427 Provisions for losses and sales adjustments - accounts receivable 3,517 1,636 (569) Collections of accounts previously written off — (545) (211) Balance at end of year $ 9,255 $ 5,738 $ 4,647 Deferred Revenue The majority of deferred revenue consists of deferred maintenance revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under software licensing, subscription-based services, software and appraisal services and hardware installation. Refer to Note 16 - "Deferred Revenue and Performance Obligations" for further information, including deferred revenue by segment and changes in deferred revenue during the period. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three Prepaid expenses and other current assets include direct and incremental costs such as commissions associated with arrangements for which revenue recognition has been deferred. Such costs are expensed at the time the related revenue is recognized. |
Use of Estimates | USE OF ESTIMATESThe preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, determining the SSP of performance obligations, variable consideration, and other obligations such as returns and refunds; loss contingencies; the estimated useful life of deferred commissions; the carrying amount and estimated useful lives of intangible assets; the carrying amount of operating lease right-of-use assets and operating lease liabilities; determining share-based compensation expense; the allowance for losses and sales adjustments; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates. |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NETProperty, equipment and purchased software are recorded at original cost and increased by the cost of any significant improvements after purchase. We expense maintenance and repairs when incurred. Depreciation and amortization is calculated using the straight-line method over the shorter of the asset’s estimated useful life or the term of the lease in the case of leasehold improvements. For income tax purposes, we use accelerated depreciation methods as allowed by tax laws. |
Income Taxes | INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences". We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be "realized". |
Share-Based Compensation | SHARE-BASED COMPENSATIONWe have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three three |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including identifiable intangible assets, in connection with our business combinations. Upon acquisition, goodwill is assigned to the reporting unit that is expected to benefit from the synergies of the business combination, which is the reporting unit to which the related acquired technology is assigned. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by executive management. We assess goodwill for impairment annually as of April 1st, or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying value before applying the quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, an impairment charge is recorded against goodwill for the amount of that excess. The impairment is limited to the amount of goodwill in that reporting unit. The fair values calculated in our impairment tests are determined using discounted cash flow models involving several assumptions. The assumptions that are used are based upon what we believe a hypothetical marketplace participant would use in estimating fair value. We evaluate the reasonableness of the fair value calculations of our reporting units by comparing the total of the fair value of all of our reporting units to our total market capitalization. As part of our annual impairment test, our qualitative assessments included our estimated effects of COVID-19 for all reporting units except for the data and insights reporting unit. As a result of these qualitative assessments, we determined that it was not more likely than not that an impairment existed; therefore, we did not perform a Step 1 quantitative impairment test. We did perform a quantitative assessment for goodwill of $75.7 million associated with our data and insights business unit and concluded no impairment existed as of our annual assessment date. For most of our reporting units, goodwill relates to a combination of legacy and acquired businesses and as a result those units have fair values that substantially exceed their underlying carrying values. For other reporting units, in particular our platform technologies and data and insights units, goodwill entirely relates to recently acquired businesses, and as a result those units do not have significant excess fair values over carrying values. The platform technologies and data and insights business units combined goodwill was $152.0 million, or 18%, of total goodwill as of December 31, 2020. Our annual goodwill impairment analysis did not result in an impairment charge. During 2020, we have recorded no impairment to goodwill as no triggering events or changes in circumstances indicating a potential impairment have occurred as of period-end. However, due to significant uncertainty surrounding COVID-19 and market conditions, there are no assurances conditions will not deteriorate in the future. Determining the fair value of our reporting units involves the use of significant estimates and assumptions and considerable management judgment. We base our fair value estimates on assumptions we believe to be reasonable at the time, but such assumptions are subject to inherent uncertainty. Changes in market conditions or other factors outside of our control, such as a worsening of expected impact of COVID-19, could cause us to change key assumptions and our judgment about a reporting unit’s prospects. Similarly, in a specific period, a reporting unit could significantly underperform relative to its historical or projected future operating results. Either situation could result in a meaningfully different estimate of the fair value of our reporting units, and a consequent future impairment charge. There have been no impairments to goodwill in any of the periods presented. See Note 4 - "Goodwill and Other Intangible Assets" for additional information. Other Intangible Assets |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS We periodically evaluate whether current facts or circumstances indicate that the carrying value of our property and equipment or other long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset or appropriate grouping of assets and the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposal group classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. There was no impairment of long-lived assets in any of the periods presented. |
Costs of Computer Software | COSTS OF COMPUTER SOFTWARE We capitalize software development costs upon the establishment of technological feasibility and prior to the availability of the product for general release to customers. Software development costs primarily consist of personnel costs and rent for related office space. During the twelve months period ended December 31, 2020 and 2019, respectively, we capitalized approximately $5.8 million and $4.8 million 2019 of software development costs. We begin to amortize capitalized costs when a product is available for general release to customers. Amortization expense is determined on a product-by-product basis at a rate not less than straight-line basis over the product’s remaining estimated economic life of, generally, five years. Amortization of software development costs was approximately $1.2 million in 2020 and $0.3 million in 2019, and is included in cost of software license revenue in the accompanying consolidated statements of comprehensive income. We have not capitalized any internal use software development costs in any of the periods presented. |
Contingent Purchase Consideration | CONTINGENT PURCHASE CONSIDERATION Contingent future cash payments related to acquisitions are recognized at fair value as of the acquisition date and included in the determination of the acquisition date purchase price. Subsequent changes in the fair value of the contingent future cash payments are recognized in earnings in the period that the change occurs. |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivables, accounts payables, short-term obligations and certain other assets at cost approximate fair value because of the short maturity of these instruments. The fair value of our revolving line of credit would approximate book value as of December 31, 2020, because our interest rates reset approximately every 30 days or less. See Note 6 – “Revolving Line of Credit” for further discussion. As of December 31, 2020, we have $154.8 million in investment grade corporate bonds, municipal bonds and asset-backed securities with maturity dates ranging from 2021 through 2028. 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 values 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 presented at amortized cost and are included in short-term investments and non-current investments in the accompanying condensed consolidated balance sheets. As of December 31, 2020, we have an accrued interest receivable balance of approximately $896,000 which is included in accounts receivable, net. We do not measure an allowance for credit losses for accrued interest receivables. We record any losses within the maturity period of the investment and any write-offs to accrued interest receivables are recorded as a reduction to interest income in the period of the loss. During the twelve months ended December 31, 2020, we have recorded no credit losses. Interest income and amortization of discounts and premiums are included in other income, net in the accompanying consolidated statements of income. During 2020, we sold our $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 to BFTR, LLC, a wholly owned subsidiary of Bison Capital Partners V L.P. During the same period, we purchased $10.0 million in common stock representing a 18% interest in BFTR, LLC. The investment in common stock is accounted under the cost method because we do 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. Periodically, our cost method investments are assessed for impairment. We do 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. No events or changes in circumstances have occurred during the period that require reassessment. There has been no impairment of our cost method investment for the periods presented. This investment is included in non-current investments and other assets in the accompanying consolidated balance sheets. |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, and investments in marketable securities. Our cash and cash equivalents primarily consist of operating account balances and money market funds, which are maintained at several major domestic financial institutions and the balances often exceed insured amounts. As of December 31, 2020, we had cash and cash equivalents of $603.6 million. We perform periodic evaluations of the credit standing of these financial institutions. Concentrations of credit risk with respect to receivables are limited due to the size and geographical diversity of our customer base. Historically, our credit losses have not been significant. As a result, we do not believe we have any significant concentrations of credit risk as of December 31, 2020. We maintain allowances for losses and sales adjustments, which are provided at the time the revenue is recognized. Since most of our customers are domestic governmental entities, we rarely incur a loss resulting from the inability of a customer to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for losses and sales adjustments may require revision include, but are not limited to, deterioration of a customer’s financial condition, failure to manage our customer’s expectations regarding the scope of the services to be delivered, and defects or errors in new versions or enhancements of our software products. |
Leases | LEASES We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities, current and long-term, on our consolidated balance sheets. We currently do not have any finance lease arrangements. |
Indemnification | INDEMNIFICATION Most of our software license agreements indemnify our customers in the event that the software sold infringes upon the intellectual property rights of a third-party. These agreements typically provide that in such event we will either modify or replace the software so that it becomes non-infringing or procure for the customer the right to use the software. We have recorded no liability associated with these indemnifications, as we are not aware of any pending or threatened infringement actions that are possible losses. We believe the estimated fair value of these intellectual property indemnification clauses is minimal. We have also agreed to indemnify our officers and board members if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ liability insurance coverage to protect against any such losses. We have recorded no liability associated with these indemnifications. Because of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal. |
Reclassifications | RECLASSIFICATIONSCertain amounts for previous years have been reclassified to conform to the current year presentation. As of January 1, 2020, the land and vital records management business unit, which was previously reported in the ES segment, was moved to the A&T segment to reflect changes in the way in which management makes operating decisions, allocates resources, and manages the growth and profitability of the Company. Prior year amounts for the ES and A&T segments have been adjusted to reflect the segment change. See Note 14 - "Segment and Related Information" for additional information. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, (“ASU 2016-13”). ASU 2016-13 changes the impairment model for most financial assets and certain other instruments, including trade and other receivables, available for-sale debt securities, held-to-maturity debt securities and loans, and requires entities to use a new forward-looking expected loss model that will result in the earlier recognition of an allowance for losses. This update is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted for a fiscal year beginning after December 15, 2018, including interim periods within that fiscal year. Entities apply the standard’s provisions as a cumulative-effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. As of January 1, 2020, we adopted the new standard with no material impact of credit losses to our trade and other receivables, held-to-maturity debt securities and retained earnings included in our condensed consolidated financial statements. O n January 26, 2017, the FASB issued ASU No. 2017-04, Simplifying the Test for Goodwill Impairment . The new standard eliminates Step 2 from the goodwill impairment test. An entity should recognize a goodwill impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value. This standard is effective for public business entities in fiscal years beginning after December 15, 2019, and the standard was adopted and applied prospectively by the Company as of January 1, 2020, but it did not have a significant impact on the Company's financial statements and disclosures. NEW ACCOUNTING PRONOUNCEMENTS In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes , ("ASU 2019-12") which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes , and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The new standard is effective for fiscal years beginning after December 15, 2020. Most amendments within the standard are required to be applied on a prospective basis, while certain amendments must be applied on a retrospective or modified retrospective basis. We do not expect adoption of this standard to have a material effect on our consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Allowance for credit loss rollfoward | The following table summarizes the changes in the allowance for losses and sales adjustments: Years ended December 31, 2020 2019 2018 Balance at beginning of year $ 5,738 $ 4,647 $ 5,427 Provisions for losses and sales adjustments - accounts receivable 3,517 1,636 (569) Collections of accounts previously written off — (545) (211) Balance at end of year $ 9,255 $ 5,738 $ 4,647 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Summary of property and equipment | Property and equipment, net consists of the following at December 31: Useful 2020 2019 Land — $ 18,653 $ 18,653 Building and leasehold improvements 5-39 147,729 137,448 Computer equipment and purchased software 3-5 108,571 99,435 Furniture and fixtures 5 30,666 28,506 Transportation equipment 5 295 402 305,914 284,444 Accumulated depreciation and amortization (137,910) (112,583) Property and equipment, net $ 168,004 $ 171,861 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in carrying amount of goodwill | The changes in the carrying amount of goodwill for the two years ended December 31, 2020 are as follows: Enterprise Appraisal Total Balance as of 12/31/2018 $ 739,550 $ 14,168 $ 753,718 Goodwill acquired related to the purchase of MicroPact 76,319 — 76,319 Goodwill acquired related to other acquisitions 10,080 — 10,080 Balance as of 12/31/2019 825,949 14,168 840,117 Purchase price adjustments related to CHT acquisition (1,689) — (1,689) Balance as of 12/31/2020 $ 824,260 $ 14,168 $ 838,428 |
Summary of other intangible assets and related accumulated amortization | Other intangible assets and related accumulated amortization consists of the following at December 31: 2020 2019 Gross carrying amount of other intangibles: Customer related intangibles $ 322,619 $ 321,019 Acquired software 262,286 262,286 Trade names 22,905 22,905 Capitalized software development costs 10,581 4,804 Leases acquired 5,037 5,037 623,428 616,051 Accumulated amortization (292,239) (237,137) Total other intangibles, net $ 331,189 $ 378,914 |
Summary of allocation of acquisition intangible assets | The amortization periods of other intangible assets is summarized in the following table: December 31, 2020 December 31, 2019 Gross Weighted Accumulated Amortization Gross Weighted Accumulated Amortization Non-amortizable intangibles: Goodwill $ 838,428 — $ — $ 840,117 — $ — Amortizable intangibles: Customer related intangibles $ 322,619 16 years $ 116,609 $ 321,019 16 years $ 97,320 Acquired software 262,286 7 years 162,378 262,286 7 years 130,416 Trade names 22,905 11 years 9,366 22,905 11 years 7,205 Capitalized software development costs 10,581 5 years 1,460 4,804 5 years 296 Leases acquired 5,037 9 years 2,426 5,037 9 years 1,900 |
Summary of estimated annual amortization expense | Estimated annual amortization expense related to other intangibles, including customer relationships, acquired software, trade names and capitalized software development costs. Capitalized software in progress of $4.5 million has been excluded from the estimated annual amortization expense table below: 2021 $ 54,411 2022 50,713 2023 32,562 2024 31,978 2025 30,622 Thereafter 123,805 $ 324,091 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accrued Liabilities, Current [Abstract] | |
Summary of accrued liabilities | Accrued liabilities consist of the following at December 31: 2020 2019 Accrued wages, bonuses and commissions $ 63,814 $ 49,126 Other accrued liabilities 19,270 26,108 $ 83,084 $ 75,234 |
INCOME TAX (Tables)
INCOME TAX (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of income tax (benefit) provision on income from operations | Income tax (benefit) provision on income from operations consists of the following: Years Ended December 31, 2020 2019 2018 Current: Federal $ (10,538) $ 12,814 $ 9,110 State (1,304) 6,585 4,367 (11,842) 19,399 13,477 Deferred (7,936) (6,088) (5,069) $ (19,778) $ 13,311 $ 8,408 |
Reconciliation of U.S. statutory income tax rate to effective income tax expense rate | Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows: Years Ended December 31, 2020 2019 2018 Federal income tax expense at statutory rate $ 36,759 $ 33,566 $ 32,733 State income tax, net of federal income tax benefit 6,677 6,999 7,953 Net operating loss carryback (3,445) — — Excess tax benefits of share-based compensation (60,190) (29,819) (32,487) Adjustments from the 2017 Tax Cuts and Jobs Act — — (1,750) Tax credits (3,867) (3,446) (3,715) Non-deductible business expenses 4,199 6,011 5,655 Other, net 89 — 19 $ (19,778) $ 13,311 $ 8,408 |
Schedule of deferred tax assets and liabilities | The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are: 2020 2019 Deferred income tax assets: Operating expenses not currently deductible $ 9,084 $ 10,214 Stock option and other employee benefit plans 17,446 19,308 Loss and credit carryforwards 27,199 23,841 Total deferred income tax assets 53,729 53,363 Valuation allowance (1,490) (1,923) Total deferred income tax assets, net of valuation allowance 52,239 51,440 Deferred income tax liabilities: Intangible assets (76,766) (84,019) Property and equipment (9,918) (9,265) Prepaid expenses (6,869) (4,922) Deferred revenue 807 (1,676) Total deferred income tax liabilities (92,746) (99,882) Net deferred income tax liabilities $ (40,507) $ (48,442) |
SHAREHOLDERS_ EQUITY (Tables)
SHAREHOLDERS’ EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Equity [Abstract] | |
Summary of activities in common stock | The following table details activity in our common stock: Years Ended December 31, 2020 2019 2018 Shares Amount Shares Amount Shares Amount Stock option exercises 1,174 $ 124,363 999 $ 96,908 1,126 $ 74,907 Purchases of common stock (59) (15,484) (72) (14,289) (781) (150,050) Employee stock plan purchases 40 10,912 53 9,576 45 8,051 Restricted stock units vested, net of withheld shares upon award settlement 76 (12,923) 53 (5,361) — — |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of weighted average assumptions used for options granted | The following weighted average assumptions were used for options granted: Years Ended December 31, 2020 2019 2018 Expected life (in years) 5.0 6.0 6.0 Expected volatility 27.0 % 26.6 % 26.7 % Risk-free interest rate 0.4 % 1.8 % 2.7 % Expected forfeiture rate — % — % — % |
Summarizes restricted stock unit and performance share activity | The following table summarizes restricted stock unit and performance stock unit activity during fiscal year 2020 (shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at January 1, 2019 334 $ 221.25 Granted 256 241.19 Vested (76) 221.15 Forfeited (14) 229.75 Unvested at December 31, 2019 500 231.57 Granted 204 379.94 Vested (110) 232.59 Forfeited (7) 266.94 Unvested at December 31, 2020 587 $ 282.45 |
Summary of stock option activity | Options granted, exercised, forfeited and expired are summarized as follows: Number of Weighted Weighted Aggregate Outstanding at December 31, 2017 4,817 $ 107.91 Granted 432 208.21 Exercised (1,126) 66.53 Forfeited (31) 158.80 Outstanding at December 31, 2018 4,092 129.51 Granted 162 251.58 Exercised (999) 96.92 Forfeited (29) 174.54 Outstanding at December 31, 2019 3,226 145.27 Granted 128 403.99 Exercised (1,174) 105.97 Forfeited (3) 165.93 Outstanding at December 31, 2020 2,177 $ 181.63 6 $ 554,709 Exercisable at December 31, 2020 1,424 $ 155.06 6 $ 400,814 Other information pertaining to option activity was as follows during the twelve months ended December 31: 2020 2019 2018 Weighted average grant-date fair value of stock options granted $ 98.69 $ 74.54 $ 66.52 Total intrinsic value of stock options exercised $ 292,394 $ 155,899 $ 176,716 |
Summary of share-based compensation expense related to share-based awards | The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of comprehensive income: Years Ended December 31, 2020 2019 2018 Cost of subscriptions, software services and maintenance $ 18,125 $ 15,002 $ 13,588 Selling, general and administrative expenses 49,240 44,965 39,152 Total share-based compensation expenses 67,365 59,967 52,740 Excess tax benefit (60,190) (29,819) (32,487) Net decrease in net income $ 7,175 $ 30,148 $ 20,253 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Computation of basic earnings and diluted earnings per share data | Basic earnings and diluted earnings per share data were computed as follows: Years Ended December 31, 2020 2019 2018 Numerator for basic and diluted earnings per share: Net income $ 194,820 $ 146,527 $ 147,462 Denominator: Weighted-average basic common shares outstanding 40,035 38,640 38,445 Assumed conversion of dilutive securities: Share-based awards 1,491 1,465 1,678 Denominator for diluted earnings per share - Adjusted weighted-average shares 41,526 40,105 40,123 Earnings per common share: Basic $ 4.87 $ 3.79 $ 3.84 Diluted $ 4.69 $ 3.65 $ 3.68 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of lease cost | The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended For the year ended 2020 2019 Operating lease cost Selling, general and administrative expenses $ 6,524 $ 6,379 Short-term lease cost Selling, general and administrative expenses 1,940 2,269 Variable lease cost Selling, general and administrative expenses 1,760 1,274 Net lease cost $ 10,224 $ 9,922 Supplemental information related to leases was as follows: Other Information For the year ended For the year ended 2020 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 8,131 $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 5,524 $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 3 4 Weighted average discount rate 3.28 % 4.00 % |
Schedule of leases assets and liabilities | As of December 31, ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): 2020 2019 Assets: Operating lease right-of-use assets $ 18,734 $ 18,992 Liabilities: Operating leases, short-term 5,904 6,387 Operating leases, long-term 16,279 16,822 Total lease liabilities $ 22,183 $ 23,209 |
Schedule of supplemental information related to leases | Supplemental information related to leases was as follows: Other Information For the year ended For the year ended 2020 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 8,131 $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 5,524 $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 3 4 Weighted average discount rate 3.28 % 4.00 % |
Schedule of operating lease maturity | As of December 31, 2020, maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2021 $ 7,015 2022 4,853 2023 3,826 2024 3,337 2025 2,198 Thereafter 2,537 Total lease payments 23,766 Less: Interest (1,583) Present value of operating lease liabilities $ 22,183 |
Schedule of future minimum operating rental income | Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2021 $ 1,372 2022 1,402 2023 1,432 2024 1,462 2025 858 Thereafter — Total $ 6,526 |
SEGMENT AND RELATED INFORMATI_2
SEGMENT AND RELATED INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of segment revenues and operations | For the year ended December 31, 2020 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 64,200 $ 8,964 $ — $ 73,164 Subscriptions 326,284 24,364 — 350,648 Software services 164,520 21,889 — 186,409 Maintenance 429,224 38,289 — 467,513 Appraisal services — 21,127 — 21,127 Hardware and other 17,670 121 11 17,802 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 Depreciation and amortization expense 67,411 1,055 13,191 81,657 Segment operating income 285,271 27,383 (86,104) 226,550 Capital expenditures 11,099 3,823 6,826 21,748 Segment assets $ 847,672 $ 94,149 $ 1,665,453 $ 2,607,274 For the year ended December 31, 2019 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 90,808 $ 9,397 $ — $ 100,205 Subscriptions 279,282 17,070 — 296,352 Software services 179,865 33,196 — 213,061 Maintenance 393,521 36,797 — 430,318 Appraisal services — 23,479 — 23,479 Hardware and other 16,553 203 6,256 23,012 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 Depreciation and amortization expense 64,245 970 11,457 76,672 Segment operating income 255,365 26,918 (73,829) 208,454 Capital expenditures 19,283 8,436 10,379 38,098 Segment assets $ 833,203 $ 91,343 $ 1,267,068 $ 2,191,614 For the year ended December 31, 2018 Enterprise Appraisal Corporate Totals Revenues Software licenses and royalties $ 81,299 $ 12,142 $ — $ 93,441 Subscriptions 205,193 15,354 — 220,547 Software services 161,612 29,657 — 191,269 Maintenance 349,387 35,134 — 384,521 Appraisal services — 21,846 — 21,846 Hardware and other 18,387 390 4,881 23,658 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 Depreciation and amortization expense 49,921 1,123 10,715 61,759 Segment operating income 231,819 28,434 (68,572) 191,681 Capital expenditures 9,918 1,241 13,973 25,132 Segment assets $ 554,960 $ 64,810 $ 1,171,193 $ 1,790,963 |
Reconciliation of operating income from segments to consolidated | Reconciliation of reportable segment operating Years Ended December 31, income to the Company's consolidated totals: 2020 2019 2018 Total segment operating income $ 226,550 $ 208,454 $ 191,681 Amortization of acquired software (31,962) (30,642) (22,972) Amortization of customer and trade name intangibles (21,662) (21,445) (16,217) Other income, net 2,116 3,471 3,378 Income before income taxes $ 175,042 $ 159,838 $ 155,870 |
DISAGGREGATION OF REVENUE (Tabl
DISAGGREGATION OF REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2020 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 62,029 $ 11,135 $ 73,164 Subscriptions — 350,648 350,648 Software services — 186,409 186,409 Maintenance — 467,513 467,513 Appraisal services — 21,127 21,127 Hardware and other 17,802 — 17,802 Total $ 79,831 $ 1,036,832 $ 1,116,663 For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2020 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 755,508 $ 62,652 $ — $ 818,160 Non-recurring revenues 246,390 52,102 11 298,503 Intercompany 19,061 70 (19,131) — Total revenues $ 1,020,959 $ 114,824 $ (19,120) $ 1,116,663 For the year ended December 31, 2019 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 672,804 $ 53,866 $ — $ 726,670 Non-recurring revenues 287,225 66,276 6,256 359,757 Intercompany 15,290 206 (15,496) — Total revenues $ 975,319 $ 120,348 $ (9,240) $ 1,086,427 For the year ended December 31, 2018 Enterprise Appraisal and Tax Corporate Totals Recurring revenues $ 554,581 $ 50,488 $ — $ 605,069 Non-recurring revenues 261,297 64,035 4,881 330,213 Intercompany 12,764 391 (13,155) — Total revenues $ 828,642 $ 114,914 $ (8,274) $ 935,282 |
DEFERRED REVENUE AND PERFORMA_2
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of changes in deferred revenue | Total deferred revenue, including long-term, by segment is as follows: December 31, 2020 December 31, 2019 Enterprise Software $ 422,742 $ 375,838 Appraisal and Tax 36,945 35,487 Corporate 1,691 1,369 Totals $ 461,378 $ 412,694 Changes in total deferred revenue, including long-term, were as follows: 2020 Balance at beginning of year $ 412,694 Deferral of revenue 1,094,185 Recognition of deferred revenue (1,045,501) Balance at end of year $ 461,378 |
QUARTERLY FINANCIAL INFORMATI_2
QUARTERLY FINANCIAL INFORMATION (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of quarterly financial information | The following table contains selected financial information from unaudited statements of income for each quarter of 2020 and 2019: Quarters Ended 2020 2019 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 283,285 $ 285,746 $ 271,091 $ 276,541 $ 288,837 $ 275,400 $ 275,124 $ 247,066 Gross profit 138,669 143,509 131,203 129,131 142,275 130,717 127,860 116,048 Income before income taxes 48,412 49,936 41,811 34,883 47,790 40,552 36,419 35,077 Net income 54,094 39,284 53,892 47,550 46,790 40,390 31,999 27,348 Earnings per diluted share $ 1.29 $ 0.94 $ 1.30 $ 1.16 $ 1.15 $ 1.00 $ 0.80 $ 0.69 Shares used in computing diluted 41,925 41,606 41,416 41,144 40,736 40,280 39,813 39,585 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2020USD ($)subsidiaryshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Accounting Policies | ||||
Recurring revenue percentage of total revenue (percent) | 73.00% | |||
Cash and investments | $ 758,500,000 | |||
Revolving line of credit | $ 0 | $ 0 | ||
Number of wholly-owned subsidiaries | subsidiary | 11 | |||
Accounts receivable, net | $ 403,700,000 | 396,500,000 | ||
Accounts receivable, allowance for losses | $ 9,255,000 | 5,738,000 | ||
Sales commission, renewal period | 1 year | |||
Research and development expense | $ 88,363,000 | 81,342,000 | $ 63,264,000 | |
Goodwill impairment loss | 0 | |||
Impairments of intangible assets | 0 | 0 | 0 | |
Impairments of long-lived assets | 0 | 0 | 0 | |
Capitalized post acquisition software development costs | $ 5,800,000 | 4,800,000 | ||
Remaining estimated economic life | 5 years | |||
Amortization of software development costs | $ 1,200,000 | 300,000 | ||
Purchase of held to maturity securities | 154,800,000 | |||
Interest receivable | 896,000 | |||
Cost-method investment impairment | 0 | 0 | 0 | |
Cash and cash equivalents | 603,623,000 | 232,682,000 | $ 134,279,000 | $ 185,926,000 |
Data And Insight | ||||
Accounting Policies | ||||
Goodwill assessed for impairment | 75,700,000 | |||
Case Management, Business Process Management, Data And Insight | ||||
Accounting Policies | ||||
Goodwill assessed for impairment | $ 152,000,000 | |||
Percentage of total goodwill | 18.00% | |||
BFTR, LLC | ||||
Accounting Policies | ||||
Cost method investment | $ 10,000,000 | |||
Investment percentage | 18.00% | |||
Convertible Preferred Stock | Record Holdings Pty Limited | ||||
Accounting Policies | ||||
Cost method investment | $ 15,000,000 | |||
Investment percentage | 20.00% | |||
Minimum | ||||
Accounting Policies | ||||
Typical contract term (in years) | 3 years | |||
Contract term (in years) | 1 year | |||
Progress billing retention percentage | 5.00% | |||
Payment term | 30 days | |||
Sales commissions amortization period (in years) | 3 years | |||
Vesting period (in years) | 3 years | |||
Maximum | ||||
Accounting Policies | ||||
Typical contract term (in years) | 5 years | |||
Contract term (in years) | 10 years | |||
Progress billing retention percentage | 20.00% | |||
Payment term | 90 days | |||
Sales commissions amortization period (in years) | 7 years | |||
Vesting period (in years) | 6 years | |||
Stock Option Plan | ||||
Accounting Policies | ||||
Contractual term (in years) | 10 years | |||
Stock Option Plan | Minimum | ||||
Accounting Policies | ||||
Vesting period (in years) | 3 years | |||
Stock Option Plan | Maximum | ||||
Accounting Policies | ||||
Vesting period (in years) | 6 years | |||
Restricted Stock Units (RSUs) | Minimum | ||||
Accounting Policies | ||||
Vesting period (in years) | 3 years | |||
Restricted Stock Units (RSUs) | Maximum | ||||
Accounting Policies | ||||
Vesting period (in years) | 5 years | |||
Performance Shares | ||||
Accounting Policies | ||||
Share conversion rate (shares) | shares | 1 | |||
Unbilled Revenues | ||||
Accounting Policies | ||||
Accounts receivable, net | $ 140,800,000 | 134,000,000 | ||
Unbilled Revenues | Retention Receivable | ||||
Accounting Policies | ||||
Accounts receivable, net | $ 13,100,000 | $ 13,100,000 | ||
SaaS arrangements services | Minimum | ||||
Accounting Policies | ||||
Typical contract term (in years) | 3 years | |||
Contract term (in years) | 1 year | |||
SaaS arrangements services | Maximum | ||||
Accounting Policies | ||||
Typical contract term (in years) | 5 years | |||
Contract term (in years) | 10 years | |||
Appraisal services | Minimum | ||||
Accounting Policies | ||||
Contract term (in years) | 1 year | |||
Appraisal services | Maximum | ||||
Accounting Policies | ||||
Contract term (in years) | 3 years | |||
Revolving Credit Facility | Credit Agreement | ||||
Accounting Policies | ||||
Revolving line of credit | $ 0 | |||
Line of credit facility, unused borrowing capacity | $ 400,000,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowances for credit loss rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts Receivable, Allowance for Credit Loss | |||
Balance at beginning of year | $ 5,738 | $ 4,647 | $ 5,427 |
Provisions for losses and sales adjustments - accounts receivable | 3,517 | 1,636 | (569) |
Collections of accounts previously written off | 0 | (545) | (211) |
Balance at end of year | $ 9,255 | $ 5,738 | $ 4,647 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Detail) - USD ($) | Oct. 30, 2019 | Feb. 28, 2019 | Feb. 01, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Business Acquisition | ||||||
Payment for contingent consideration | $ 5,619,000 | $ 0 | $ 0 | |||
Contingent consideration | 0 | |||||
Courthouse Technologies, Ltd | ||||||
Business Acquisition | ||||||
Cash to acquire business | $ 20,400,000 | |||||
Adjustments related to intangibles | 1,700,000 | |||||
Adjustments related to goodwill | (1,689,000) | |||||
MicroPact | ||||||
Business Acquisition | ||||||
Cash to acquire business | $ 198,200,000 | |||||
Total purchase price to acquire business | 201,800,000 | |||||
Net cash acquired | $ 2,000,000 | |||||
Payment for contingent consideration | $ 5,600,000 | |||||
MyCivic | ||||||
Business Acquisition | ||||||
Cash to acquire business | $ 3,700,000 | |||||
MicroPact And MyCivic | ||||||
Business Acquisition | ||||||
Acquisition related fees | $ 1,100,000 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment | ||
Property and equipment, gross | $ 305,914 | $ 284,444 |
Accumulated depreciation and amortization | (137,910) | (112,583) |
Property and equipment, net | 168,004 | 171,861 |
Land | ||
Property, Plant and Equipment | ||
Property and equipment, gross | 18,653 | 18,653 |
Building and leasehold improvements | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 147,729 | 137,448 |
Building and leasehold improvements | Minimum | ||
Property, Plant and Equipment | ||
Useful Lives (years) | 5 years | |
Building and leasehold improvements | Maximum | ||
Property, Plant and Equipment | ||
Useful Lives (years) | 39 years | |
Computer equipment and purchased software | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 108,571 | 99,435 |
Computer equipment and purchased software | Minimum | ||
Property, Plant and Equipment | ||
Useful Lives (years) | 3 years | |
Computer equipment and purchased software | Maximum | ||
Property, Plant and Equipment | ||
Useful Lives (years) | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 30,666 | 28,506 |
Useful Lives (years) | 5 years | |
Transportation equipment | ||
Property, Plant and Equipment | ||
Property and equipment, gross | $ 295 | $ 402 |
Useful Lives (years) | 5 years |
PROPERTY AND EQUIPMENT, NET - A
PROPERTY AND EQUIPMENT, NET - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 25.5 | $ 23.4 | $ 21.2 |
Payment for construction to expand building | $ 9.9 | $ 20.8 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Goodwill | ||
Goodwill beginning balance | $ 840,117 | $ 753,718 |
Goodwill ending balance | 838,428 | 840,117 |
MicroPact | ||
Goodwill | ||
Goodwill acquired | 76,319 | |
Other acquisitions | ||
Goodwill | ||
Goodwill acquired | 10,080 | |
Courthouse Technologies, Ltd | ||
Goodwill | ||
Purchase price adjustments related to CHT acquisition | (1,689) | |
Enterprise Software | ||
Goodwill | ||
Goodwill beginning balance | 825,949 | 739,550 |
Goodwill ending balance | 824,260 | 825,949 |
Enterprise Software | MicroPact | ||
Goodwill | ||
Goodwill acquired | 76,319 | |
Enterprise Software | Other acquisitions | ||
Goodwill | ||
Goodwill acquired | 10,080 | |
Enterprise Software | Courthouse Technologies, Ltd | ||
Goodwill | ||
Purchase price adjustments related to CHT acquisition | (1,689) | |
Appraisal and Tax | ||
Goodwill | ||
Goodwill beginning balance | 14,168 | 14,168 |
Goodwill ending balance | 14,168 | 14,168 |
Appraisal and Tax | MicroPact | ||
Goodwill | ||
Goodwill acquired | 0 | |
Appraisal and Tax | Other acquisitions | ||
Goodwill | ||
Goodwill acquired | $ 0 | |
Appraisal and Tax | Courthouse Technologies, Ltd | ||
Goodwill | ||
Purchase price adjustments related to CHT acquisition | $ 0 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Other Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | $ 623,428 | $ 616,051 |
Accumulated amortization | (292,239) | (237,137) |
Total other intangibles, net | 331,189 | 378,914 |
Customer related intangibles | ||
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | 322,619 | 321,019 |
Accumulated amortization | (116,609) | (97,320) |
Acquired software | ||
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | 262,286 | 262,286 |
Accumulated amortization | (162,378) | (130,416) |
Trade names | ||
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | 22,905 | 22,905 |
Accumulated amortization | (9,366) | (7,205) |
Capitalized software development costs | ||
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | 10,581 | 4,804 |
Accumulated amortization | (1,460) | (296) |
Leases acquired | ||
Gross carrying amount of other intangibles: | ||
Acquisition intangibles, gross | 5,037 | 5,037 |
Accumulated amortization | $ (2,426) | $ (1,900) |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets | |||
Total amortization expense | $ 55,100 | $ 52,800 | $ 39,600 |
Amortization expense, 2021 | 54,411 | ||
Amortization expense, 2022 | 50,713 | ||
Amortization expense, 2023 | 32,562 | ||
Amortization expense, 2024 | 31,978 | ||
Amortization expense, 2025 | 30,622 | ||
Amortization expense, thereafter | 123,805 | ||
Capitalized software in progress | 4,500 | ||
Leases acquired | |||
Finite-Lived Intangible Assets | |||
Amortization expense, 2021 | 525 | ||
Amortization expense, 2022 | 525 | ||
Amortization expense, 2023 | 525 | ||
Amortization expense, 2024 | 525 | ||
Amortization expense, 2025 | 397 | ||
Amortization expense, thereafter | $ 114 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Allocation of Acquisition Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Acquired Finite Lived Intangible Assets | |||
Goodwill | $ 838,428 | $ 840,117 | $ 753,718 |
Amortizable intangibles, Gross carrying amount | 623,428 | 616,051 | |
Amortizable intangibles, Accumulated Amortization | 292,239 | 237,137 | |
Customer related intangibles | |||
Acquired Finite Lived Intangible Assets | |||
Amortizable intangibles, Gross carrying amount | $ 322,619 | $ 321,019 | |
Amortizable intangibles, Weighted Average Amortization Period | 16 years | 16 years | |
Amortizable intangibles, Accumulated Amortization | $ 116,609 | $ 97,320 | |
Acquired software | |||
Acquired Finite Lived Intangible Assets | |||
Amortizable intangibles, Gross carrying amount | $ 262,286 | $ 262,286 | |
Amortizable intangibles, Weighted Average Amortization Period | 7 years | 7 years | |
Amortizable intangibles, Accumulated Amortization | $ 162,378 | $ 130,416 | |
Trade names | |||
Acquired Finite Lived Intangible Assets | |||
Amortizable intangibles, Gross carrying amount | $ 22,905 | $ 22,905 | |
Amortizable intangibles, Weighted Average Amortization Period | 11 years | 11 years | |
Amortizable intangibles, Accumulated Amortization | $ 9,366 | $ 7,205 | |
Capitalized software development costs | |||
Acquired Finite Lived Intangible Assets | |||
Amortizable intangibles, Gross carrying amount | $ 10,581 | $ 4,804 | |
Amortizable intangibles, Weighted Average Amortization Period | 5 years | 5 years | |
Amortizable intangibles, Accumulated Amortization | $ 1,460 | $ 296 | |
Leases acquired | |||
Acquired Finite Lived Intangible Assets | |||
Amortizable intangibles, Gross carrying amount | $ 5,037 | $ 5,037 | |
Amortizable intangibles, Weighted Average Amortization Period | 9 years | 9 years | |
Amortizable intangibles, Accumulated Amortization | $ 2,426 | $ 1,900 |
GOODWILL AND OTHER INTANGIBLE_7
GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Estimated Annual Amortization Expense (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity | |
2021 | $ 54,411 |
2022 | 50,713 |
2023 | 32,562 |
2024 | 31,978 |
2025 | 30,622 |
Thereafter | 123,805 |
Finite-lived intangible assets, net | $ 324,091 |
ACCRUED LIABILITIES (Detail)
ACCRUED LIABILITIES (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Accrued Liabilities, Current [Abstract] | ||
Accrued wages, bonuses and commissions | $ 63,814 | $ 49,126 |
Other accrued liabilities | 19,270 | 26,108 |
Accrued liabilities | $ 83,084 | $ 75,234 |
REVOLVING LINE OF CREDIT (Detai
REVOLVING LINE OF CREDIT (Detail) - USD ($) | Sep. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | $ 0 | ||
Letter of credit outstanding | 2,000,000 | |||
Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Interest paid | $ 610,000 | $ 1,750,000 | $ 770,000 | |
Revolving Credit Facility | Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 400,000,000 | |||
Debt instrument, interest rate, stated percentage | 3.38% | |||
Outstanding borrowings | $ 0 | |||
Line of credit facility, unused borrowing capacity | $ 400,000,000 | |||
Revolving Credit Facility | Credit Agreement | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, interest rate, effective percentage | 1.27% | |||
Revolving Credit Facility | Credit Agreement | Minimum | Prime Commercial Lending Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate (in percent) | 0.125% | |||
Revolving Credit Facility | Credit Agreement | Minimum | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate (in percent) | 1.125% | |||
Revolving Credit Facility | Credit Agreement | Maximum | Prime Commercial Lending Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate (in percent) | 0.75% | |||
Revolving Credit Facility | Credit Agreement | Maximum | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate (in percent) | 1.75% | |||
Letter of Credit | Revolving Credit Facility | Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 |
INCOME TAX - Income Tax (Benefi
INCOME TAX - Income Tax (Benefit) Provision on Income From Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ (10,538) | $ 12,814 | $ 9,110 |
State | (1,304) | 6,585 | 4,367 |
Current income tax expense benefit | (11,842) | 19,399 | 13,477 |
Deferred | (7,936) | (6,088) | (5,069) |
Income tax expense benefit | $ (19,778) | $ 13,311 | $ 8,408 |
INCOME TAX - Reconciliation of
INCOME TAX - Reconciliation of U.S. Statutory Income Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense at statutory rate | $ 36,759 | $ 33,566 | $ 32,733 |
State income tax, net of federal income tax benefit | 6,677 | 6,999 | 7,953 |
Net operating loss carryback | (3,445) | 0 | 0 |
Excess tax benefits of share-based compensation | (60,190) | (29,819) | (32,487) |
Adjustments from the 2017 Tax Cuts and Jobs Act | 0 | 0 | (1,750) |
Tax credits | (3,867) | (3,446) | (3,715) |
Non-deductible business expenses | 4,199 | 6,011 | 5,655 |
Other, net | 89 | 0 | 19 |
Income tax expense benefit | $ (19,778) | $ 13,311 | $ 8,408 |
INCOME TAX - Schedule of Deferr
INCOME TAX - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deferred income tax assets: | ||
Operating expenses not currently deductible | $ 9,084 | $ 10,214 |
Stock option and other employee benefit plans | 17,446 | 19,308 |
Loss and credit carryforwards | 27,199 | 23,841 |
Total deferred income tax assets | 53,729 | 53,363 |
Valuation allowance | (1,490) | (1,923) |
Total deferred income tax assets, net of valuation allowance | 52,239 | 51,440 |
Deferred income tax liabilities: | ||
Intangible assets | (76,766) | (84,019) |
Property and equipment | (9,918) | (9,265) |
Prepaid expenses | (6,869) | (4,922) |
Deferred revenue | 807 | |
Deferred revenue | (1,676) | |
Total deferred income tax liabilities | (92,746) | (99,882) |
Net deferred income tax liabilities | $ (40,507) | $ (48,442) |
INCOME TAX - Additional Informa
INCOME TAX - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Loss Carryforwards | |||
Net operating loss carryback | $ 3,445 | $ 0 | $ 0 |
Tax credit carryforwards | 8,600 | ||
Increase of liability for an uncertain tax position | 1,900 | ||
Income taxes, net of refunds | 3,300 | $ 21,300 | $ 6,800 |
Federal | |||
Operating Loss Carryforwards | |||
Operating loss carryforwards | 81,500 | ||
State | |||
Operating Loss Carryforwards | |||
Operating loss carryforwards | $ 3,500 |
SHAREHOLDERS_ EQUITY - Summary
SHAREHOLDERS’ EQUITY - Summary of Activities in Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Equity [Abstract] | |||
Stock option exercises (in shares) | 1,174 | 999 | 1,126 |
Issuance/ Exercise of stock options | $ 124,363 | $ 96,908 | $ 74,907 |
Purchases of common stock (in shares) | (59) | (72) | (781) |
Purchases of common stock | $ (15,484) | $ (14,289) | $ (150,050) |
Employee stock plan purchases (in shares) | 40 | 53 | 45 |
Employee stock plan purchases | $ 10,912 | $ 9,576 | $ 8,051 |
Restricted stock units vested, net of withheld shares upon award settlement (in shares) | 76 | 53 | 0 |
Restricted stock units vested, net of withheld shares upon award settlement | $ (12,923) | $ (5,361) | $ 0 |
SHAREHOLDERS_ EQUITY - Addition
SHAREHOLDERS’ EQUITY - Additional Information (Detail) shares in Millions | Feb. 19, 2021shares |
Subsequent Event | |
Class Of Stock [Line Items] | |
Number of shares authorized to be repurchased (in shares) | 2.5 |
SHARE-BASED COMPENSATION - Addi
SHARE-BASED COMPENSATION - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 2,500,000 | |
Shares reserved for future issuance (in shares) | 22,900,000 | |
Weighted average grant date value (in dollars per share) | $ 231.93 | $ 188.48 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Number of shares available for grant (in shares) | 664,000 | |
Shares reserved for future issuance (in shares) | 2,000,000 | |
Percentage of annual compensation participants may contribute | 15.00% | |
Purchase price as a percentage of closing price on the last day of the quarter for ESPP transactions | 85.00% | |
Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Contractual term (in years) | 10 years | |
Unvested options to purchase (in shares) | 752,000 | 1,200,000 |
Total unrecognized compensation cost | $ 164 | |
Weighted average amortization period | 3 years 1 month 13 days | |
Performance Shares | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Share conversion rate (shares) | 1 | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
Minimum | Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
Minimum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 3 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 6 years | |
Maximum | Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 6 years | |
Maximum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Vesting period (in years) | 5 years |
SHARE-BASED COMPENSATION - Summ
SHARE-BASED COMPENSATION - Summary of Weighted Average Assumptions Used for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Dividend yield (in percentage) | 0.00% | ||
Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Expected life (in years) | 5 years | 6 years | 6 years |
Expected volatility (in percentage) | 27.00% | 26.60% | 26.70% |
Risk-free interest rate (in percentage) | 0.40% | 1.80% | 2.70% |
Expected forfeiture rate (in percentage) | 0.00% | 0.00% | 0.00% |
SHARE-BASED COMPENSATION - RSU
SHARE-BASED COMPENSATION - RSU and PSU Activity (Details) - Restricted stock unit and performance stock unit - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Number of Shares | ||
Beginning balance (in shares) | 500 | 334 |
Granted (in shares) | 204 | 256 |
Vested (in shares) | (110) | (76) |
Forfeited (in shares) | (7) | (14) |
Ending balance (in shares) | 587 | 500 |
Weighted Average Grant Date Fair Value per Share | ||
Beginning balance (dollar per share) | $ 231.57 | $ 221.25 |
Granted (dollar per share) | 379.94 | 241.19 |
Vested (dollar per share) | 232.59 | 221.15 |
Forfeited (dollar per share) | 266.94 | 229.75 |
Ending balance (dollar per share) | $ 282.45 | $ 231.57 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | |||
Outstanding Beginning Balance (in shares) | 3,226 | 4,092 | 4,817 |
Granted (in shares) | 128 | 162 | 432 |
Exercised (in shares) | (1,174) | (999) | (1,126) |
Forfeited (in shares) | (3) | (29) | (31) |
Outstanding Ending Balance (in shares) | 2,177 | 3,226 | 4,092 |
Exercisable (in shares) | 1,424 | ||
Weighted Average Exercise Price | |||
Outstanding Beginning Balance (in dollar per share) | $ 145.27 | $ 129.51 | $ 107.91 |
Granted (in dollars per share) | 403.99 | 251.58 | 208.21 |
Exercised (in dollars per share) | 105.97 | 96.92 | 66.53 |
Forfeited (in dollars per share) | 165.93 | 174.54 | 158.80 |
Outstanding Ending Balance (in dollars per share) | 181.63 | $ 145.27 | $ 129.51 |
Exercisable (in dollars per share) | $ 155.06 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding | 6 years | ||
Weighted Average Remaining Contractual Life (Years), Exercisable | 6 years | ||
Aggregate Intrinsic Value, Outstanding | $ 554,709 | ||
Aggregate Intrinsic Value, Exercisable | $ 400,814 |
SHARE-BASED COMPENSATION - Othe
SHARE-BASED COMPENSATION - Other Information Pertaining to Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 98.69 | $ 74.54 | $ 66.52 |
Total intrinsic value of stock options exercised | $ 292,394 | $ 155,899 | $ 176,716 |
SHARE-BASED COMPENSATION - Su_2
SHARE-BASED COMPENSATION - Summary of Share-Based Compensation Expense Related to Share-Based Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | $ 67,365 | $ 59,967 | $ 52,740 |
Excess tax benefit | (60,190) | (29,819) | (32,487) |
Net decrease in net income | 7,175 | 30,148 | 20,253 |
Cost of subscriptions, software services and maintenance | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | 18,125 | 15,002 | 13,588 |
Selling, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | |||
Share-based compensation expense | $ 49,240 | $ 44,965 | $ 39,152 |
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 | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator for basic and diluted earnings per share: | |||||||||||
Net income | $ 54,094 | $ 39,284 | $ 53,892 | $ 47,550 | $ 46,790 | $ 40,390 | $ 31,999 | $ 27,348 | $ 194,820 | $ 146,527 | $ 147,462 |
Denominator: | |||||||||||
Weighted-average basic common shares outstanding | 40,035 | 38,640 | 38,445 | ||||||||
Assumed conversion of dilutive securities: | |||||||||||
Share-based awards (in shares) | 1,491 | 1,465 | 1,678 | ||||||||
Denominator for diluted earnings per share - Adjusted weighted-average shares | 41,925 | 41,606 | 41,416 | 41,144 | 40,736 | 40,280 | 39,813 | 39,585 | 41,526 | 40,105 | 40,123 |
Earnings per common share: | |||||||||||
Basic (USD per share) | $ 4.87 | $ 3.79 | $ 3.84 | ||||||||
Diluted (USD per share) | $ 1.29 | $ 0.94 | $ 1.30 | $ 1.16 | $ 1.15 | $ 1 | $ 0.80 | $ 0.69 | $ 4.69 | $ 3.65 | $ 3.68 |
EARNINGS PER SHARE - Additional
EARNINGS PER SHARE - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 132 | 633 | 888 |
LEASES - Additional Information
LEASES - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease | |||
Operating lease renewal term (up to) | 10 years | ||
Operating lease, cost | $ 10,224 | $ 9,922 | $ 7,400 |
Lessor, operating lease renewal term (in years) | 5 years | ||
Rental income | $ 1,100 | $ 1,100 | $ 1,200 |
Minimum | |||
Lessee, Lease | |||
Operating lease term (in years) | 1 year | ||
Maximum | |||
Lessee, Lease | |||
Operating lease term (in years) | 7 years |
LEASES - Schedule of lease cost
LEASES - Schedule of lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,524 | $ 6,379 | |
Short-term lease cost | 1,940 | 2,269 | |
Variable lease cost | 1,760 | 1,274 | |
Net lease cost | $ 10,224 | $ 9,922 | $ 7,400 |
LEASES - Schedule of leases ass
LEASES - Schedule of leases assets and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Operating lease right-of-use assets | $ 18,734 | $ 18,992 |
Liabilities: | ||
Operating leases, short-term | 5,904 | 6,387 |
Operating leases, long-term | 16,279 | 16,822 |
Total lease liabilities | $ 22,183 | $ 23,209 |
LEASES - Schedule of other info
LEASES - Schedule of other information related to leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 8,131 | $ 7,267 |
Operating leases | $ 5,524 | $ 3,466 |
Weighted average remaining lease term (years) | 3 years | 4 years |
Weighted average discount rate | 3.28% | 4.00% |
LEASES - Maturity of lease liab
LEASES - Maturity of lease liabilities (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Year ending December 31, | ||
2021 | $ 7,015,000 | |
2022 | 4,853,000 | |
2023 | 3,826,000 | |
2024 | 3,337,000 | |
2025 | 2,198,000 | |
Thereafter | 2,537,000 | |
Total lease payments | 23,766,000 | |
Less: Interest | (1,583,000) | |
Present value of operating lease liabilities | $ 22,183,000 | $ 23,209,000 |
LEASES - Schedule of future min
LEASES - Schedule of future minimum operating rental income (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Year ending December 31, | |
2021 | $ 1,372 |
2022 | 1,402 |
2023 | 1,432 |
2024 | 1,462 |
2025 | 858 |
Thereafter | 0 |
Total | $ 6,526 |
EMPLOYEE BENEFIT PLANS - Additi
EMPLOYEE BENEFIT PLANS - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure | |||
Percentage of employee contribution | 30.00% | ||
Defined contribution plan, cost recognized | $ 12.7 | $ 11.5 | $ 9.3 |
Maximum | |||
Defined Benefit Plan Disclosure | |||
Percentage of employer contribution | 3.00% |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2020USD ($)legalMatters | |
Commitments and Contingencies Disclosure [Abstract] | |
Unusual expenses | $ 4.2 |
Accrued insurance | 1.1 |
Insurance recoveries | $ 2.4 |
Number of material legal proceedings pending | legalMatters | 0 |
SEGMENT AND RELATED INFORMATI_3
SEGMENT AND RELATED INFORMATION - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)segmentbusiness_unit | Dec. 31, 2019USD ($) | |
Segment Reporting Information | ||
Number of business units (business units) | business_unit | 6 | |
Number of reportable segment (segment) | segment | 2 | |
Payment for construction to expand building | $ 9.9 | $ 20.8 |
Enterprise Software | ||
Segment Reporting Information | ||
Payment for construction to expand building | 6.6 | 12.6 |
Appraisal and Tax | ||
Segment Reporting Information | ||
Payment for construction to expand building | $ 3.3 | $ 8.2 |
SEGMENT AND RELATED INFORMATI_4
SEGMENT AND RELATED INFORMATION - Schedule of Segment Revenues and Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting Information | |||||||||||
Total revenues | $ 283,285 | $ 285,746 | $ 271,091 | $ 276,541 | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 1,116,663 | $ 1,086,427 | $ 935,282 |
Depreciation and amortization expense | 81,657 | 76,672 | 61,759 | ||||||||
Total segment operating income | 172,926 | 156,367 | 152,492 | ||||||||
Capital expenditures | 21,748 | 38,098 | 25,132 | ||||||||
Total assets | 2,607,274 | 2,191,614 | 2,607,274 | 2,191,614 | 1,790,963 | ||||||
Intercompany | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | (19,131) | (15,496) | (13,155) | ||||||||
Intercompany | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 19,061 | 15,290 | 12,764 | ||||||||
Intercompany | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 70 | 206 | 391 | ||||||||
Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 1,020,959 | 975,319 | 828,642 | ||||||||
Depreciation and amortization expense | 67,411 | 64,245 | 49,921 | ||||||||
Total segment operating income | 285,271 | 255,365 | 231,819 | ||||||||
Capital expenditures | 11,099 | 19,283 | 9,918 | ||||||||
Total assets | 847,672 | 833,203 | 847,672 | 833,203 | 554,960 | ||||||
Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 114,824 | 120,348 | 114,914 | ||||||||
Depreciation and amortization expense | 1,055 | 970 | 1,123 | ||||||||
Total segment operating income | 27,383 | 26,918 | 28,434 | ||||||||
Capital expenditures | 3,823 | 8,436 | 1,241 | ||||||||
Total assets | 94,149 | 91,343 | 94,149 | 91,343 | 64,810 | ||||||
Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | (19,120) | (9,240) | (8,274) | ||||||||
Depreciation and amortization expense | 13,191 | 11,457 | 10,715 | ||||||||
Total segment operating income | (86,104) | (73,829) | (68,572) | ||||||||
Capital expenditures | 6,826 | 10,379 | 13,973 | ||||||||
Total assets | $ 1,665,453 | $ 1,267,068 | 1,665,453 | 1,267,068 | 1,171,193 | ||||||
Operating segment and corporate non-segment | |||||||||||
Segment Reporting Information | |||||||||||
Total segment operating income | 226,550 | 208,454 | 191,681 | ||||||||
Software licenses and royalties | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 73,164 | 100,205 | 93,441 | ||||||||
Software licenses and royalties | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 64,200 | 90,808 | 81,299 | ||||||||
Software licenses and royalties | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 8,964 | 9,397 | 12,142 | ||||||||
Software licenses and royalties | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 350,648 | 296,352 | 220,547 | ||||||||
Subscriptions | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 326,284 | 279,282 | 205,193 | ||||||||
Subscriptions | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 24,364 | 17,070 | 15,354 | ||||||||
Subscriptions | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 186,409 | 213,061 | 191,269 | ||||||||
Software services | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 164,520 | 179,865 | 161,612 | ||||||||
Software services | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 21,889 | 33,196 | 29,657 | ||||||||
Software services | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 467,513 | 430,318 | 384,521 | ||||||||
Maintenance | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 429,224 | 393,521 | 349,387 | ||||||||
Maintenance | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 38,289 | 36,797 | 35,134 | ||||||||
Maintenance | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 21,127 | 23,479 | 21,846 | ||||||||
Appraisal services | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 21,127 | 23,479 | 21,846 | ||||||||
Appraisal services | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Hardware and other | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 17,802 | 23,012 | 23,658 | ||||||||
Hardware and other | Enterprise Software | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 17,670 | 16,553 | 18,387 | ||||||||
Hardware and other | Appraisal and Tax | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | 121 | 203 | 390 | ||||||||
Hardware and other | Corporate | |||||||||||
Segment Reporting Information | |||||||||||
Total revenues | $ 11 | $ 6,256 | $ 4,881 |
SEGMENT AND RELATED INFORMATI_5
SEGMENT AND RELATED INFORMATION - Reconciliation of Operating Income from Segments to Consolidated (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |||||||||||
Total segment operating income | $ 172,926 | $ 156,367 | $ 152,492 | ||||||||
Total cost of revenues | (574,151) | (569,527) | (495,704) | ||||||||
Amortization of customer and trade name intangibles | (21,662) | (21,445) | (16,217) | ||||||||
Other income, net | 2,116 | 3,471 | 3,378 | ||||||||
Income before income taxes | $ 48,412 | $ 49,936 | $ 41,811 | $ 34,883 | $ 47,790 | $ 40,552 | $ 36,419 | $ 35,077 | 175,042 | 159,838 | 155,870 |
Acquired software | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |||||||||||
Total cost of revenues | (31,962) | (30,642) | (22,972) | ||||||||
Operating segment and corporate non-segment | |||||||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated | |||||||||||
Total segment operating income | $ 226,550 | $ 208,454 | $ 191,681 |
DISAGGREGATION OF REVENUE (Deta
DISAGGREGATION OF REVENUE (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue | |||||||||||
Total revenues | $ 283,285 | $ 285,746 | $ 271,091 | $ 276,541 | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 1,116,663 | $ 1,086,427 | $ 935,282 |
Intercompany | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | (19,131) | (15,496) | (13,155) | ||||||||
Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | (19,120) | (9,240) | (8,274) | ||||||||
Corporate and Elimination | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | (19,120) | (9,240) | (8,274) | ||||||||
Enterprise Software | Intercompany | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 19,061 | 15,290 | 12,764 | ||||||||
Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 1,020,959 | 975,319 | 828,642 | ||||||||
Appraisal and Tax | Intercompany | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 70 | 206 | 391 | ||||||||
Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 114,824 | 120,348 | 114,914 | ||||||||
Recurring revenues | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 818,160 | 726,670 | 605,069 | ||||||||
Recurring revenues | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Recurring revenues | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 755,508 | 672,804 | 554,581 | ||||||||
Recurring revenues | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 62,652 | 53,866 | 50,488 | ||||||||
Non-recurring revenues | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 298,503 | 359,757 | 330,213 | ||||||||
Non-recurring revenues | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 11 | 6,256 | 4,881 | ||||||||
Non-recurring revenues | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 246,390 | 287,225 | 261,297 | ||||||||
Non-recurring revenues | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 52,102 | 66,276 | 64,035 | ||||||||
Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 79,831 | 107,912 | 98,846 | ||||||||
Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 1,036,832 | 978,515 | 836,436 | ||||||||
Software licenses and royalties | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 73,164 | 100,205 | 93,441 | ||||||||
Software licenses and royalties | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software licenses and royalties | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 64,200 | 90,808 | 81,299 | ||||||||
Software licenses and royalties | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 8,964 | 9,397 | 12,142 | ||||||||
Software licenses and royalties | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 62,029 | 84,900 | 75,188 | ||||||||
Software licenses and royalties | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 11,135 | 15,305 | 18,253 | ||||||||
Subscriptions | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 350,648 | 296,352 | 220,547 | ||||||||
Subscriptions | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 326,284 | 279,282 | 205,193 | ||||||||
Subscriptions | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 24,364 | 17,070 | 15,354 | ||||||||
Subscriptions | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 350,648 | 296,352 | 220,547 | ||||||||
Software services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 186,409 | 213,061 | 191,269 | ||||||||
Software services | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 164,520 | 179,865 | 161,612 | ||||||||
Software services | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 21,889 | 33,196 | 29,657 | ||||||||
Software services | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 186,409 | 213,061 | 191,269 | ||||||||
Maintenance | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 467,513 | 430,318 | 384,521 | ||||||||
Maintenance | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 429,224 | 393,521 | 349,387 | ||||||||
Maintenance | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 38,289 | 36,797 | 35,134 | ||||||||
Maintenance | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 467,513 | 430,318 | 384,521 | ||||||||
Appraisal services | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 21,127 | 23,479 | 21,846 | ||||||||
Appraisal services | Corporate | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Enterprise Software | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Appraisal and Tax | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 21,127 | 23,479 | 21,846 | ||||||||
Appraisal services | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 21,127 | 23,479 | 21,846 | ||||||||
Hardware and other | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 17,802 | 23,012 | 23,658 | ||||||||
Hardware and other | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | 17,802 | 23,012 | 23,658 | ||||||||
Hardware and other | Products and services transferred over time | |||||||||||
Disaggregation of Revenue | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 |
DISAGGREGATION OF REVENUE - Add
DISAGGREGATION OF REVENUE - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Minimum | |
Disaggregation of Revenue | |
Contract term (in years) | 1 year |
Typical contract term (in years) | 3 years |
Maximum | |
Disaggregation of Revenue | |
Contract term (in years) | 10 years |
Typical contract term (in years) | 5 years |
DEFERRED REVENUE AND PERFORMA_3
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS - Deferred Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Disaggregation of Revenue | |
Deferred revenue | $ 461,378 |
Contract With Customer Liability | |
Balance at beginning of year | 412,694 |
Deferral of revenue | 1,094,185 |
Recognition of deferred revenue | (1,045,501) |
Balance at end of year | 461,378 |
Operating segments | Enterprise Software | |
Disaggregation of Revenue | |
Deferred revenue | 375,838 |
Contract With Customer Liability | |
Balance at beginning of year | 375,838 |
Balance at end of year | 422,742 |
Operating segments | Appraisal and Tax | |
Disaggregation of Revenue | |
Deferred revenue | 35,487 |
Contract With Customer Liability | |
Balance at beginning of year | 35,487 |
Balance at end of year | 36,945 |
Corporate | |
Disaggregation of Revenue | |
Deferred revenue | 1,369 |
Contract With Customer Liability | |
Balance at beginning of year | 1,369 |
Balance at end of year | $ 1,691 |
DEFERRED REVENUE AND PERFORMA_4
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS - Narrative (Details) $ in Millions | Dec. 31, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 1,590 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | |
Revenue, remaining performance obligation, percentage | 49.00% |
Expected timing of satisfaction period | 12 months |
DEFERRED COMMISSIONS (Details)
DEFERRED COMMISSIONS (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Capitalized Contract Cost | |||
Deferred commissions | $ 32.3 | $ 29.8 | |
Deferred commissions amortization | $ 11.9 | $ 11.5 | $ 9.6 |
Minimum | |||
Capitalized Contract Cost | |||
Sales commissions amortization period (in years) | 3 years | ||
Maximum | |||
Capitalized Contract Cost | |||
Sales commissions amortization period (in years) | 7 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ / shares in Units, $ in Millions | Feb. 09, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event | |||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
Subsequent Event | Goldman Sachs Bank USA | Senior Unsecured Bridge Loan Facility | |||
Subsequent Event | |||
Long-term line of credit | $ 1,600 | ||
Subsequent Event | Goldman Sachs Bank USA | Senior Unsecured Bridge Loan Facility | Plan | |||
Subsequent Event | |||
Debt Instrument, Term | 364 days | ||
Subsequent Event | Merger Sub | |||
Subsequent Event | |||
Option conversion price (per share) | $ 34 | ||
Subsequent Event | NIC, Inc | |||
Subsequent Event | |||
Common stock, par value (in dollars per share) | $ 0.0001 | ||
Termination fee | $ 55 |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (unaudited) - Summary of Selected Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 283,285 | $ 285,746 | $ 271,091 | $ 276,541 | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 1,116,663 | $ 1,086,427 | $ 935,282 |
Gross profit | 138,669 | 143,509 | 131,203 | 129,131 | 142,275 | 130,717 | 127,860 | 116,048 | 542,512 | 516,900 | 439,578 |
Income before income taxes | 48,412 | 49,936 | 41,811 | 34,883 | 47,790 | 40,552 | 36,419 | 35,077 | 175,042 | 159,838 | 155,870 |
Net income | $ 54,094 | $ 39,284 | $ 53,892 | $ 47,550 | $ 46,790 | $ 40,390 | $ 31,999 | $ 27,348 | $ 194,820 | $ 146,527 | $ 147,462 |
Earnings per diluted share (USD per share) | $ 1.29 | $ 0.94 | $ 1.30 | $ 1.16 | $ 1.15 | $ 1 | $ 0.80 | $ 0.69 | $ 4.69 | $ 3.65 | $ 3.68 |
Shares used in computing diluted earnings per share (in shares) | 41,925 | 41,606 | 41,416 | 41,144 | 40,736 | 40,280 | 39,813 | 39,585 | 41,526 | 40,105 | 40,123 |