Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2016 | Jul. 22, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | TYL | |
Entity Registrant Name | TYLER TECHNOLOGIES INC | |
Entity Central Index Key | 860,731 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 36,340,400 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Revenues: | ||||
Software licenses and royalties | $ 17,551 | $ 14,586 | $ 34,401 | $ 28,886 |
Subscriptions | 33,968 | 26,949 | 68,057 | 52,237 |
Software services | 46,040 | 34,563 | 88,470 | 65,367 |
Maintenance | 78,743 | 59,463 | 154,775 | 116,811 |
Appraisal services | 6,984 | 6,691 | 13,542 | 12,780 |
Hardware and other | 5,686 | 4,043 | 9,020 | 5,180 |
Total revenues | 188,972 | 146,295 | 368,265 | 281,261 |
Cost of revenues: | ||||
Software licenses and royalties | 666 | 483 | 1,304 | 1,036 |
Acquired software | 5,680 | 456 | 11,139 | 912 |
Software services, maintenance and subscriptions | 86,717 | 69,678 | 171,987 | 135,055 |
Appraisal services | 4,458 | 4,278 | 8,420 | 8,413 |
Hardware and other | 4,515 | 3,147 | 6,361 | 3,713 |
Total cost of revenues | 102,036 | 78,042 | 199,211 | 149,129 |
Gross profit | 86,936 | 68,253 | 169,054 | 132,132 |
Selling, general and administrative expenses | 42,232 | 30,396 | 82,991 | 58,941 |
Research and development expense | 10,336 | 7,110 | 20,292 | 14,114 |
Amortization of customer and trade name intangibles | 3,453 | 1,151 | 6,815 | 2,303 |
Operating income | 30,915 | 29,596 | 58,956 | 56,774 |
Other (expense) income, net | (720) | 185 | (1,187) | 366 |
Income before income taxes | 30,195 | 29,781 | 57,769 | 57,140 |
Income tax provision | 11,323 | 10,945 | 21,818 | 21,031 |
Net income | $ 18,872 | $ 18,836 | $ 35,951 | $ 36,109 |
Earnings per common share: | ||||
Basic | $ 0.52 | $ 0.56 | $ 0.99 | $ 1.07 |
Diluted | $ 0.49 | $ 0.52 | $ 0.94 | $ 1 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 41,327 | $ 33,087 |
Accounts receivable (less allowance for losses of $1,560 in 2016 and $1,640 in 2015) | 209,483 | 176,360 |
Short-term investments | 22,642 | 13,423 |
Prepaid expenses | 22,976 | 22,334 |
Income tax receivable | 23,994 | 21,080 |
Other current assets | 3,529 | 1,931 |
Total current assets | 323,951 | 268,215 |
Accounts receivable, long-term | 2,579 | 2,777 |
Property and equipment, net | 115,886 | 101,112 |
Other assets: | ||
Goodwill | 655,393 | 653,666 |
Other intangibles, net | 285,491 | 295,378 |
Non-current investments and other assets | 29,752 | 35,422 |
Total assets | 1,413,052 | 1,356,570 |
Current liabilities: | ||
Accounts payable | 6,574 | 6,789 |
Accrued liabilities | 49,875 | 49,156 |
Deferred revenue | 296,481 | 281,627 |
Total current liabilities | 352,930 | 337,572 |
Revolving line of credit | 135,000 | 66,000 |
Deferred revenue, long-term | 3,704 | 3,115 |
Deferred income taxes | 92,110 | 91,026 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued | ||
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued and outstanding as of June 30, 2016 and December 31, 2015 | 481 | 481 |
Additional paid-in capital | 605,179 | 607,755 |
Accumulated other comprehensive loss, net of tax | (46) | (46) |
Retained earnings | 361,970 | 326,019 |
Treasury stock, at cost; 11,867,051 and 11,373,666 shares in 2016 and 2015, respectively | (138,276) | (75,352) |
Total shareholders' equity | 829,308 | 858,857 |
Liabilities and Shareholders' equity, Total | $ 1,413,052 | $ 1,356,570 |
CONDENSED CONSOLIDATED BALANCE4
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2016 | Dec. 31, 2015 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for losses | $ 1,560 | $ 1,640 |
Preferred stock, par value | $ 10 | $ 10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 48,147,969 | 48,147,969 |
Common stock, shares outstanding | 48,147,969 | 48,147,969 |
Treasury stock, shares | 11,867,051 | 11,373,666 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 35,951 | $ 36,109 |
Adjustments to reconcile net income to cash provided (used) by operations: | ||
Depreciation and amortization | 24,850 | 7,484 |
Share-based compensation expense | 13,692 | 8,861 |
Excess tax benefit from exercises of share-based arrangements | (6,694) | (8,827) |
Changes in operating assets and liabilities, exclusive of effects of acquired companies: | ||
Accounts receivable | (35,530) | (36,624) |
Income taxes | 4,207 | 2,735 |
Prepaid expenses and other current assets | (1,435) | (549) |
Accounts payable | (236) | (371) |
Accrued liabilities | 4,883 | (5,685) |
Deferred revenue | 14,459 | 11,680 |
Net cash provided by operating activities | 54,147 | 14,813 |
Cash flows from investing activities: | ||
Additions to property and equipment | (21,959) | (6,126) |
Purchase of marketable security investments | (10,607) | (6,449) |
Proceeds from marketable security investments | 6,526 | |
Investment in Record Holdings Pty Limited | (15,000) | |
Cost of acquisitions, net of cash acquired | (9,394) | (6,447) |
Increase in other | (281) | (9) |
Net cash used by investing activities | (35,715) | (34,031) |
Cash flows from financing activities: | ||
Increase in net borrowings on revolving line of credit | 69,000 | |
Purchase of treasury shares | (94,497) | (645) |
Proceeds from exercise of stock options | 5,793 | 6,729 |
Contributions from employee stock purchase plan | 2,818 | 2,243 |
Excess tax benefit from exercises of share-based arrangements | 6,694 | 8,827 |
Net cash (used) provided by financing activities | (10,192) | 17,154 |
Net increase (decrease) in cash and cash equivalents | 8,240 | (2,064) |
Cash and cash equivalents at beginning of period | 33,087 | 206,167 |
Cash and cash equivalents at end of period | $ 41,327 | $ 204,103 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation We prepared the accompanying condensed consolidated financial statements following the requirements of the Securities and Exchange Commission (“SEC”) and accounting principles generally accepted in the United States, or GAAP, for interim reporting. As permitted under those rules, certain footnotes or other financial information that are normally required by GAAP can be condensed or omitted for interim periods. Balance sheet amounts are as of June 30, 2016 and December 31, 2015 and operating result amounts are for the three and six months ended June 30, 2016 and 2015, respectively, and include all normal and recurring adjustments that we considered necessary for the fair summarized presentation of our financial position and operating results. As these are condensed financial statements, one should also read the financial statements and notes included in our latest Form 10-K for the year ended December 31, 2015. Revenues, expenses, assets and liabilities can vary during each quarter of the year. Therefore, the results and trends in these interim financial statements may not be the same as those for the full year. Comprehensive income (loss) is defined as the change in equity of a business enterprise during a period from transactions, and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). We had no items of other comprehensive income (loss) for the three and six months ended June 30, 2016 and 2015. Certain amounts for the previous year have been reclassified to conform to the current year presentation. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | (2) Acquisitions In November 2015, we acquired all of the capital stock of New World Systems Corporation (“NWS”), which provides public safety and financial solutions for local governments. In the six months ended June 30, 2016, we paid $2.0 million related to the working capital holdback of $4.0 million, which was accrued at December 31, 2015. We reduced the remaining working capital accrued liability and also recorded several miscellaneous adjustments to the preliminary opening balance sheet related to additional reserves for receivables and contingencies and other miscellaneous items for a net decrease to goodwill of approximately $2.4 million. As of June 30, 2016, the purchase price allocation for NWS is not yet complete. The preliminary estimates of fair value assumed at the acquisition date for intangibles, liabilities, deferred revenue, and related deferred taxes are subject to change as valuations are finalized. The operating results of NWS are included with the operating results of the Enterprise Software Solutions segment, since the date of acquisition. |
Other Assets
Other Assets | 6 Months Ended |
Jun. 30, 2016 | |
Deferred Costs Capitalized Prepaid And Other Assets Disclosure [Abstract] | |
Other Assets | (3) Other Assets Cash and cash equivalents consist of cash on deposit with several domestic banks and money market funds. As of June 2016, we have $34.4 million in investment grade corporate and municipal bonds with maturity dates ranging from 2016 through mid-2018. We intend to hold these bonds to maturity and have classified them as such. We believe cost approximates fair value because of the relatively short duration of these investments. The fair value of these securities are considered Level II as they are based on inputs from quoted prices in markets that are not active or other observable market data. These investments are included in short-term investments and non-current investments and other assets. We have a $15.0 million investment in convertible preferred stock representing a 20% interest in Record Holdings Pty Limited, a privately held Australian company specializing in digitizing the spoken word in court and legal proceedings. The fair value of this investment is based on valuations using Level III, unobservable inputs that are supported by little or no market value activity and that are significant to the fair value of the investment. This investment is included in non-current investments and other assets. |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Shareholders' Equity | (4) Shareholders’ Equity The following table details activity in our common stock: Six months ended June 30, 2016 2015 Shares Amount Shares Amount Purchases of common stock (758 ) $ (94,497 ) (5 ) (645 ) Stock option exercises 241 5,793 355 $ 6,729 Employee stock plan purchases 23 2,818 23 2,243 Shares issued for acquisition — — 13 1,519 As of June 30, 2016, we had authorization from our board of directors to repurchase up to 2.1 million additional shares of Tyler common stock. |
Revolving Line of Credit
Revolving Line of Credit | 6 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Revolving Line of Credit | (5) Revolving Line of Credit On November 16, 2015, we entered into a $300.0 million Credit Agreement (the “Credit Facility”) with the various lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. The Credit Facility provides for a revolving credit line up to $300.0 million, including a $10.0 million sublimit for letters of credit. The Credit Facility matures on November 16, 2020. Borrowings under the Credit Facility may be used for general corporate purposes, including working capital requirements, acquisitions and share repurchases. Borrowings under the Credit Facility bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.25% to 1.00% or (2) the 30, 60, 90 or 180 day LIBOR rate plus a margin of 1.25% to 2.00%. As of June 30, 2016, our interest rate was 1.7%. The Credit Facility is secured by substantially all of our assets. The Credit Facility requires us to maintain certain financial ratios and other financial conditions and prohibits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens. As of June 30, 2016, we were in compliance with those covenants. As of June 30, 2016, we had $135.0 million in outstanding borrowings and two outstanding letters of credit totaling $2.2 million. Unused borrowing capacity under the Credit Facility was $162.8 million. |
Income Tax Provision
Income Tax Provision | 6 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision | (6) Income Tax Provision For the three and six months ended June 30, 2016, respectively, we had effective income tax rates of 37.5% and 37.8%, respectively, compared to 36.8% for the three and six months ended June 30, 2015. The effective income tax rates for the periods presented were different from the statutory United States federal income tax rate of 35% principally due to state income taxes, non-deductible share-based compensation expense, the qualified manufacturing activities deduction, disqualifying incentive stock option dispositions and non-deductible meals and entertainment costs. We made tax payments of $17.6 million and $18.3 million in the six months ended June 30, 2016 and June 30, 2015, respectively. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | (7) Earnings Per Share The following table details the reconciliation of basic earnings per share to diluted earnings per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ 18,872 $ 18,836 $ 35,951 $ 36,109 Denominator: Weighted-average basic common shares outstanding 36,160 33,751 36,316 33,756 Assumed conversion of dilutive securities: Stock options 2,036 2,346 2,023 2,340 Denominator for diluted earnings per share - Adjusted weighted-average shares 38,196 36,097 38,339 36,096 Earnings per common share: Basic $ 0.52 $ 0.56 $ 0.99 $ 1.07 Diluted $ 0.49 $ 0.52 $ 0.94 $ 1.00 For the three and six months ended June 30, 2016, stock options representing the right to purchase common stock of approximately 708,000 shares and 735,000 shares, respective |
Share-Based Compensation
Share-Based Compensation | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | (8) Share-Based Compensation The following table summarizes share-based compensation expense related to share-based awards recorded in the statements of income, pursuant to Accounting Standards Codification (“ASC”) 718, Stock Compensation: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of software services, maintenance and subscriptions $ 1,571 $ 746 $ 2,888 $ 1,447 Selling, general and administrative expenses 5,641 3,857 10,804 7,414 Total share-based compensation expenses $ 7,212 $ 4,603 $ 13,692 $ 8,861 |
Segment and Related Information
Segment and Related Information | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Segment and Related Information | (9) Segment and Related Information We are a major provider of integrated information management solutions and services for the public sector, with a focus on local governments. We provide our software systems and services and appraisal services through four business units, which focus on the following products: · financial management, education and planning, regulatory and maintenance software solutions; · financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions; · courts and justice and public safety software solutions; and · appraisal and tax software solutions and property appraisal services. In accordance with ASC 280-10, Segment Reporting, the financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions unit; and the courts and justice and public safety software solutions unit meet the criteria for aggregation and are presented in one reportable segment, Enterprise Software Solutions (“ESS”). The ESS segment provides municipal and county governments and schools with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as financial management and courts and justice processes. The Appraisal and Tax Software Solutions and Services (“ATSS”) segment provides systems and software that automate the appraisal and assessment of real and personal property as well as property appraisal outsourcing services for local governments and taxing authorities. Property appraisal outsourcing services include: the physical inspection of commercial and residential properties; data collection and processing; computer analysis for property valuation; preparation of tax rolls; community education; and arbitration between taxpayers and the assessing jurisdiction. We evaluate performance based on several factors, of which the primary financial measure is business segment operating income. We define segment operating income for our business units as income before non-cash amortization of intangible assets associated with their 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. For the three months ended June 30, 2016 Enterprise Software Solutions Appraisal Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 16,439 $ 1,112 $ — $ 17,551 Subscriptions 32,316 1,652 — 33,968 Software services 42,159 3,881 — 46,040 Maintenance 74,110 4,633 — 78,743 Appraisal services — 6,984 — 6,984 Hardware and other 2,942 — 2,744 5,686 Intercompany 1,612 — (1,612 ) — Total revenues $ 169,578 $ 18,262 $ 1,132 $ 188,972 Segment operating income $ 46,109 $ 3,990 $ (10,051 ) $ 40,048 For the six months ended June 30, 2016 Enterprise Software Solutions Appraisal and Tax Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 32,093 $ 2,308 $ — $ 34,401 Subscriptions 64,301 3,756 — 68,057 Software services 80,763 7,707 — 88,470 Maintenance 145,510 9,265 — 154,775 Appraisal services — 13,542 — 13,542 Hardware and other 5,977 16 3,027 9,020 Intercompany 2,772 — (2,772 ) — Total revenues $ 331,416 $ 36,594 $ 255 $ 368,265 Segment operating income $ 86,778 $ 8,821 $ (18,689 ) $ 76,910 For the three months ended June 30, 2015 Enterprise Software Solutions Appraisal Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 13,556 $ 1,030 $ — $ 14,586 Subscriptions 25,733 1,216 — 26,949 Software services 31,826 2,737 — 34,563 Maintenance 54,992 4,471 — 59,463 Appraisal services — 6,691 — 6,691 Hardware and other 1,330 11 2,702 4,043 Intercompany 979 — (979 ) — Total revenues $ 128,416 $ 16,156 $ 1,723 $ 146,295 Segment operating income $ 34,408 $ 3,903 $ (7,108 ) $ 31,203 For the six months ended June 30, 2015 Enterprise Software Solutions Appraisal and Tax Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 25,883 $ 3,003 $ — $ 28,886 Subscriptions 50,042 2,195 — 52,237 Software services 60,994 4,373 — 65,367 Maintenance 108,007 8,804 — 116,811 Appraisal services — 12,780 — 12,780 Hardware and other 2,468 11 2,701 5,180 Intercompany 1,905 — (1,905 ) — Total revenues $ 249,299 $ 31,166 $ 796 $ 281,261 Segment operating income $ 66,660 $ 6,971 $ (13,642 ) $ 59,989 Three months ended June 30, Six months ended June 30, Reconciliation of reportable segment operating income to the Company's consolidated totals: 2016 2015 2016 2015 Total segment operating income $ 40,048 $ 31,203 $ 76,910 $ 59,989 Amortization of acquired software (5,680 ) (456 ) (11,139 ) (912 ) Amortization of customer and trade name intangibles (3,453 ) (1,151 ) (6,815 ) (2,303 ) Other (expense) income, net (720 ) 185 (1,187 ) 366 Income before income taxes $ 30,195 $ 29,781 $ 57,769 $ 57,140 |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | (10) Commitments and Contingencies Other than routine litigation incidental to our business, there are no material legal proceedings pending to which we are party or to which any of our properties are subject. |
New Accounting Pronouncements
New Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2016 | |
Accounting Changes And Error Corrections [Abstract] | |
New Accounting Pronouncements | (11) New Accounting Pronouncements Revenue from Contracts with Customers. On August 12, 2015, the FASB voted for a one-year deferral of the effective date of the new standard and now requires application of the new standard no later than annual reporting periods beginning after December 15, 2017, including interim reporting periods therein. However, under the proposal, public entities would be permitted to elect to early adopt the new standard as of the original effective date. We are currently assessing the financial impact of adopting the new standard and the methods of adoption, however, we are currently unable to provide a reasonable estimate regarding the financial impact or which method of adoption of the new standard we will elect. We currently expect to adopt the new standard in fiscal year 2018 in accordance with the revised effective date. Leases. · A lease liability, which is a lessee‘s obligation to make lease payments arising from a lease, measured on a discounted basis; and · A right-of-use asset, which is an asset that represents the lessee’s right to use, or control the use of, a specified asset for the lease term. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods therein. Early application is permitted for all business entities upon issuance. We are currently assessing the financial impact of adopting the new standard, however; we are currently unable to provide a reasonable estimate regarding the financial impact. We currently expect to adopt the new standard in fiscal year 2019. Compensation-Stock Compensation. |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Summary of Activities in Common Stock | The following table details activity in our common stock: Six months ended June 30, 2016 2015 Shares Amount Shares Amount Purchases of common stock (758 ) $ (94,497 ) (5 ) (645 ) Stock option exercises 241 5,793 355 $ 6,729 Employee stock plan purchases 23 2,818 23 2,243 Shares issued for acquisition — — 13 1,519 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic Earnings and Diluted Earnings Per Share Data | The following table details the reconciliation of basic earnings per share to diluted earnings per share: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Numerator for basic and diluted earnings per share: Net income $ 18,872 $ 18,836 $ 35,951 $ 36,109 Denominator: Weighted-average basic common shares outstanding 36,160 33,751 36,316 33,756 Assumed conversion of dilutive securities: Stock options 2,036 2,346 2,023 2,340 Denominator for diluted earnings per share - Adjusted weighted-average shares 38,196 36,097 38,339 36,096 Earnings per common share: Basic $ 0.52 $ 0.56 $ 0.99 $ 1.07 Diluted $ 0.49 $ 0.52 $ 0.94 $ 1.00 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Share-Based Compensation Expense Related to Share-Based Awards | The following table summarizes share-based compensation expense related to share-based awards recorded in the statements of income, pursuant to Accounting Standards Codification (“ASC”) 718, Stock Compensation: Three months ended June 30, Six months ended June 30, 2016 2015 2016 2015 Cost of software services, maintenance and subscriptions $ 1,571 $ 746 $ 2,888 $ 1,447 Selling, general and administrative expenses 5,641 3,857 10,804 7,414 Total share-based compensation expenses $ 7,212 $ 4,603 $ 13,692 $ 8,861 |
Segment and Related Informati20
Segment and Related Information (Tables) | 6 Months Ended |
Jun. 30, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues and Operations | For the three months ended June 30, 2016 Enterprise Software Solutions Appraisal Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 16,439 $ 1,112 $ — $ 17,551 Subscriptions 32,316 1,652 — 33,968 Software services 42,159 3,881 — 46,040 Maintenance 74,110 4,633 — 78,743 Appraisal services — 6,984 — 6,984 Hardware and other 2,942 — 2,744 5,686 Intercompany 1,612 — (1,612 ) — Total revenues $ 169,578 $ 18,262 $ 1,132 $ 188,972 Segment operating income $ 46,109 $ 3,990 $ (10,051 ) $ 40,048 For the six months ended June 30, 2016 Enterprise Software Solutions Appraisal and Tax Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 32,093 $ 2,308 $ — $ 34,401 Subscriptions 64,301 3,756 — 68,057 Software services 80,763 7,707 — 88,470 Maintenance 145,510 9,265 — 154,775 Appraisal services — 13,542 — 13,542 Hardware and other 5,977 16 3,027 9,020 Intercompany 2,772 — (2,772 ) — Total revenues $ 331,416 $ 36,594 $ 255 $ 368,265 Segment operating income $ 86,778 $ 8,821 $ (18,689 ) $ 76,910 For the three months ended June 30, 2015 Enterprise Software Solutions Appraisal Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 13,556 $ 1,030 $ — $ 14,586 Subscriptions 25,733 1,216 — 26,949 Software services 31,826 2,737 — 34,563 Maintenance 54,992 4,471 — 59,463 Appraisal services — 6,691 — 6,691 Hardware and other 1,330 11 2,702 4,043 Intercompany 979 — (979 ) — Total revenues $ 128,416 $ 16,156 $ 1,723 $ 146,295 Segment operating income $ 34,408 $ 3,903 $ (7,108 ) $ 31,203 For the six months ended June 30, 2015 Enterprise Software Solutions Appraisal and Tax Software Solutions and Services Corporate Totals Revenues Software licenses and royalties $ 25,883 $ 3,003 $ — $ 28,886 Subscriptions 50,042 2,195 — 52,237 Software services 60,994 4,373 — 65,367 Maintenance 108,007 8,804 — 116,811 Appraisal services — 12,780 — 12,780 Hardware and other 2,468 11 2,701 5,180 Intercompany 1,905 — (1,905 ) — Total revenues $ 249,299 $ 31,166 $ 796 $ 281,261 Segment operating income $ 66,660 $ 6,971 $ (13,642 ) $ 59,989 |
Reconciliation of Operating Income from Segments to Consolidated | Three months ended June 30, Six months ended June 30, Reconciliation of reportable segment operating income to the Company's consolidated totals: 2016 2015 2016 2015 Total segment operating income $ 40,048 $ 31,203 $ 76,910 $ 59,989 Amortization of acquired software (5,680 ) (456 ) (11,139 ) (912 ) Amortization of customer and trade name intangibles (3,453 ) (1,151 ) (6,815 ) (2,303 ) Other (expense) income, net (720 ) 185 (1,187 ) 366 Income before income taxes $ 30,195 $ 29,781 $ 57,769 $ 57,140 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) - New World Systems Corporation [Member] - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||
Accrued purchase price | $ 4 | |
Payment related to working capital holdback | $ 2 | |
Net decrease to goodwill arising from adjusted contingencies | $ 2.4 |
Other Assets - Additional Infor
Other Assets - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2016USD ($) | |
Schedule Of Other Assets [Line Items] | |
Purchase of held to maturity securities | $ 34.4 |
Grade corporate and municipal bonds, maturity date | 2016 through mid-2018 |
Convertible Preferred Stock [Member] | Record Holdings Pty Limited [Member] | |
Schedule Of Other Assets [Line Items] | |
Cost method investment | $ 15 |
Investment percentage | 20.00% |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activities in Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands | 6 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Equity [Abstract] | ||
Purchases of common stock, Shares | (758) | (5) |
Stock option exercises, Shares | 241 | 355 |
Employee stock plan purchases, Shares | 23 | 23 |
Shares issued for acquisition, Shares | 13 | |
Purchases of common stock, Amount | $ (94,497) | $ (645) |
Stock option exercises, Amount | 5,793 | 6,729 |
Employee stock plan purchases, Amount | $ 2,818 | 2,243 |
Shares issued for acquisition, Amount | $ 1,519 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) | Jun. 30, 2016shares |
Equity [Abstract] | |
Number of shares authorized to be repurchased | 2,100,000 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) - USD ($) | 6 Months Ended | ||
Jun. 30, 2016 | Dec. 31, 2015 | Nov. 16, 2015 | |
Line Of Credit Facility [Line Items] | |||
Outstanding borrowings | $ 135,000,000 | $ 66,000,000 | |
Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | $ 300,000,000 | ||
Revolving line of credit maturity date | Nov. 16, 2020 | ||
Debt instrument, interest rate | 1.70% | ||
Debt instrument, description of variable rate basis | Borrowings under the Credit Facility bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.25% to 1.00% or (2) the 30, 60, 90 or 180 day LIBOR rate plus a margin of 1.25% to 2.00%. | ||
Outstanding borrowings | $ 135,000,000 | ||
Line of credit facility, unused borrowing capacity | $ 162,800,000 | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Minimum [Member] | Prime Commercial Lending Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility interest rate | 0.25% | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Minimum [Member] | Libor Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility interest rate | 1.25% | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Maximum [Member] | Prime Commercial Lending Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility interest rate | 1.00% | ||
Revolving Credit Facility [Member] | Credit Agreement [Member] | Maximum [Member] | Libor Rate [Member] | |||
Line Of Credit Facility [Line Items] | |||
Line of credit facility interest rate | 2.00% | ||
Letter of Credit [Member] | Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Letters of credit, outstanding | $ 2,200,000 | ||
Letter of Credit [Member] | Revolving Credit Facility [Member] | Credit Agreement [Member] | |||
Line Of Credit Facility [Line Items] | |||
Revolving credit facility, maximum borrowing capacity | $ 10,000,000 |
Income Tax Provision - Addition
Income Tax Provision - Additional Information (Detail) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | ||||
Effective income tax rates | 37.50% | 36.80% | 37.80% | 36.80% |
Federal income tax rate | 35.00% | |||
Income tax payments | $ 17.6 | $ 18.3 |
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 | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 18,872 | $ 18,836 | $ 35,951 | $ 36,109 |
Weighted-average basic common shares outstanding | 36,160 | 33,751 | 36,316 | 33,756 |
Stock options | 2,036 | 2,346 | 2,023 | 2,340 |
Denominator for diluted earnings per share - Adjusted weighted-average shares | 38,196 | 36,097 | 38,339 | 36,096 |
Basic | $ 0.52 | $ 0.56 | $ 0.99 | $ 1.07 |
Diluted | $ 0.49 | $ 0.52 | $ 0.94 | $ 1 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 708 | 492 | 735 | 570 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Share-Based Compensation Expense Related to Share-Based Awards (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 7,212 | $ 4,603 | $ 13,692 | $ 8,861 |
Cost of software services, maintenance and subscriptions [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | 1,571 | 746 | 2,888 | 1,447 |
Selling, general and administrative expenses [Member] | ||||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Share-based compensation expense | $ 5,641 | $ 3,857 | $ 10,804 | $ 7,414 |
Segment and Related Informati30
Segment and Related Information - Additional Information (Detail) | 6 Months Ended |
Jun. 30, 2016Business_UnitSegment | |
Segment Reporting Information [Line Items] | |
Number of business units | Business_Unit | 4 |
Enterprise Software Solutions [Member] | |
Segment Reporting Information [Line Items] | |
Number of reportable segment | Segment | 1 |
Segment and Related Informati31
Segment and Related Information - Schedule of Segment Revenues and Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting Information [Line Items] | ||||
Software licenses and royalties | $ 17,551 | $ 14,586 | $ 34,401 | $ 28,886 |
Subscriptions | 33,968 | 26,949 | 68,057 | 52,237 |
Software services | 46,040 | 34,563 | 88,470 | 65,367 |
Maintenance | 78,743 | 59,463 | 154,775 | 116,811 |
Appraisal services | 6,984 | 6,691 | 13,542 | 12,780 |
Hardware and other | 5,686 | 4,043 | 9,020 | 5,180 |
Total revenues | 188,972 | 146,295 | 368,265 | 281,261 |
Segment operating income | 40,048 | 31,203 | 76,910 | 59,989 |
Operating segments [Member] | Enterprise Software Solutions [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Software licenses and royalties | 16,439 | 13,556 | 32,093 | 25,883 |
Subscriptions | 32,316 | 25,733 | 64,301 | 50,042 |
Software services | 42,159 | 31,826 | 80,763 | 60,994 |
Maintenance | 74,110 | 54,992 | 145,510 | 108,007 |
Hardware and other | 2,942 | 1,330 | 5,977 | 2,468 |
Intercompany | 1,612 | 979 | 2,772 | 1,905 |
Total revenues | 169,578 | 128,416 | 331,416 | 249,299 |
Segment operating income | 46,109 | 34,408 | 86,778 | 66,660 |
Operating segments [Member] | Appraisal and Tax Software Solutions and Services [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Software licenses and royalties | 1,112 | 1,030 | 2,308 | 3,003 |
Subscriptions | 1,652 | 1,216 | 3,756 | 2,195 |
Software services | 3,881 | 2,737 | 7,707 | 4,373 |
Maintenance | 4,633 | 4,471 | 9,265 | 8,804 |
Appraisal services | 6,984 | 6,691 | 13,542 | 12,780 |
Hardware and other | 11 | 16 | 11 | |
Total revenues | 18,262 | 16,156 | 36,594 | 31,166 |
Segment operating income | 3,990 | 3,903 | 8,821 | 6,971 |
Corporate [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Hardware and other | 2,744 | 2,702 | 3,027 | 2,701 |
Intercompany | (1,612) | (979) | (2,772) | (1,905) |
Total revenues | 1,132 | 1,723 | 255 | 796 |
Segment operating income | $ (10,051) | $ (7,108) | $ (18,689) | $ (13,642) |
Segment and Related Informati32
Segment and Related Information - Reconciliation of Operating Income from Segments to Consolidated (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2016 | Jun. 30, 2015 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Total segment operating income | $ 40,048 | $ 31,203 | $ 76,910 | $ 59,989 |
Amortization of acquired software | (5,680) | (456) | (11,139) | (912) |
Amortization of customer and trade name intangibles | (3,453) | (1,151) | (6,815) | (2,303) |
Other (expense) income, net | (720) | 185 | (1,187) | 366 |
Income before income taxes | 30,195 | 29,781 | 57,769 | 57,140 |
Segment Reconciling Items [Member] | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||||
Amortization of acquired software | (5,680) | (456) | (11,139) | (912) |
Amortization of customer and trade name intangibles | (3,453) | (1,151) | (6,815) | (2,303) |
Other (expense) income, net | $ (720) | $ 185 | $ (1,187) | $ 366 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Jun. 30, 2016LegalMatter |
Commitments And Contingencies Disclosure [Abstract] | |
Number of material legal proceedings pending | 0 |