Cover page
Cover page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 21, 2020 | Jun. 28, 2019 | |
Cover page. | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 0-24531 | ||
Entity Registrant Name | COSTAR GROUP INC | ||
Entity Central Index Key | 0001057352 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-2091509 | ||
Entity Address, Address Line One | 1331 L Street, NW | ||
Entity Address, City or Town | Washington, | ||
Entity Address, State or Province | DC | ||
Entity Address, Postal Zip Code | 20005 | ||
City Area Code | 202) | ||
Local Phone Number | 346-6500 | ||
Title of 12(b) Security | Common Stock ($0.01 par value) | ||
Trading Symbol | CSGP | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Small Business Entity | false | ||
Emerging Growth | false | ||
Entity Shell Company | false | ||
Public Float | $ 20 | ||
Entity Common Stock, Shares Outstanding | 36,644,734 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement, which is expected to be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2019 , are incorporated by reference into Part III of this Report. |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Revenues | $ 1,399,719 | $ 1,191,832 | $ 965,230 |
Cost of revenues | 289,239 | 269,933 | 220,403 |
Gross profit | 1,110,480 | 921,899 | 744,827 |
Operating expenses: | |||
Selling and marketing (excluding customer base amortization) | 408,596 | 359,858 | 318,362 |
Software development | 125,602 | 100,937 | 88,850 |
General and administrative | 178,740 | 156,659 | 146,128 |
Customer base amortization | 33,995 | 30,881 | 17,671 |
Total operating expenses | 746,933 | 648,335 | 571,011 |
Income from operations | 363,547 | 273,564 | 173,816 |
Interest and other income | 30,017 | 13,281 | 4,044 |
Interest and other expense | (2,615) | (2,830) | (9,014) |
Loss on debt extinguishment | 0 | 0 | (3,788) |
Income before income taxes | 390,949 | 284,015 | 165,058 |
Income tax expense | 75,986 | 45,681 | 42,363 |
Net income | $ 314,963 | $ 238,334 | $ 122,695 |
Net income (loss) per share — basic (in dollars per share) | $ 8.67 | $ 6.61 | $ 3.70 |
Net income (loss) per share — diluted (in dollars per share) | $ 8.60 | $ 6.54 | $ 3.66 |
Weighted average outstanding shares — basic (in shares) | 36,310 | 36,058 | 33,200 |
Weighted average outstanding shares — diluted (in shares) | 36,630 | 36,448 | 33,559 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 314,963 | $ 238,334 | $ 122,695 |
Other comprehensive income (loss), net of tax | |||
Foreign currency translation adjustment | 3,103 | (2,668) | 3,901 |
Net decrease in unrealized loss on investments | 0 | 0 | 118 |
Total other comprehensive income (loss) | 3,103 | (2,668) | 4,019 |
Total comprehensive income | $ 318,066 | $ 235,666 | $ 126,714 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,070,731 | $ 1,100,416 |
Accounts receivable, less allowance of $5,097 and $5,709 as of December 31, 2019 and December 31, 2018, respectively | 92,240 | 89,192 |
Prepaid expenses and other current assets | 36,194 | 23,690 |
Total current assets | 1,199,165 | 1,213,298 |
Long-term investments | 10,070 | 10,070 |
Deferred income taxes, net | 5,408 | 7,469 |
Lease right-of-use assets | 115,084 | |
Property and equipment, net | 107,529 | 83,303 |
Goodwill | 1,882,020 | 1,611,535 |
Intangible assets, net | 421,196 | 288,911 |
Deferred commission costs, net | 89,374 | 76,031 |
Deposits and other assets | 9,232 | 7,432 |
Income tax receivable | 14,908 | 14,908 |
Total assets | 3,853,986 | 3,312,957 |
Current liabilities: | ||
Accounts payable | 7,640 | 6,327 |
Accrued wages and commissions | 53,087 | 45,588 |
Accrued expenses | 38,680 | 29,821 |
Deferred gain on the sale of building | 0 | 2,523 |
Income taxes payable | 10,705 | 14,288 |
Deferred rent | 0 | 4,153 |
Lease liabilities | 29,670 | |
Deferred revenue | 67,274 | 51,459 |
Total current liabilities | 207,056 | 154,159 |
Deferred gain on the sale of building | 0 | 13,669 |
Deferred rent | 0 | 31,944 |
Deferred income taxes, net | 87,096 | 69,857 |
Income taxes payable | 20,521 | 17,386 |
Lease and other long-term liabilities | 133,720 | 4,000 |
Total liabilities | 448,393 | 291,015 |
Commitments and contingencies (Note 13) | ||
Stockholders’ equity: | ||
Preferred stock, $0.01 par value; 2,000 shares authorized; none outstanding | 0 | 0 |
Common stock, $0.01 par value; 60,000 shares authorized; 36,668 and 36,446 issued and outstanding as of December 31, 2019 and 2018, respectively | 366 | 364 |
Additional paid-in capital | 2,473,338 | 2,419,812 |
Accumulated other comprehensive loss | (8,585) | (11,688) |
Retained earnings | 940,474 | 613,454 |
Total stockholders’ equity | 3,405,593 | 3,021,942 |
Total liabilities and stockholders’ equity | $ 3,853,986 | $ 3,312,957 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 5,097 | $ 5,709 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued, (in shares) | 36,668,000 | 36,446,000 |
Common stock, shares outstanding (in shares) | 36,668,000 | 36,446,000 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Balance (in shares) at Dec. 31, 2016 | 32,606,000 | ||||
Balance at Dec. 31, 2016 | $ 1,654,213 | $ 326 | $ 1,471,127 | $ (13,039) | $ 195,799 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 122,695 | 122,695 | |||
Other comprehensive income | 4,019 | 4,019 | |||
Exercise of stock options (in shares) | 82,000 | ||||
Exercise of stock options | 6,797 | $ 1 | 6,796 | ||
Restricted stock grants (in shares) | 187,000 | ||||
Restricted stock grants | 0 | $ 2 | (2) | ||
Restricted stock grants surrendered (in shares) | (99,000) | ||||
Restricted stock grants surrendered | (14,902) | $ (1) | (14,901) | ||
Stock compensation expense, net of forfeitures | 38,921 | 38,921 | |||
Stock issued for equity offering (in shares) | 3,317,000 | ||||
Stock issued for equity offering | 833,911 | $ 33 | 833,878 | ||
Employee stock purchase plan (in shares) | 14,000 | ||||
Employee stock purchase plan | 3,434 | $ 0 | 3,434 | ||
Balance (in shares) at Dec. 31, 2017 | 36,107,000 | ||||
Balance at Dec. 31, 2017 | 2,651,250 | $ 361 | 2,339,253 | (9,020) | 320,656 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 238,334 | 238,334 | |||
Other comprehensive income | (2,668) | (2,668) | |||
Exercise of stock options (in shares) | 177,000 | ||||
Exercise of stock options | 21,993 | $ 2 | 21,991 | ||
Restricted stock grants (in shares) | 160,000 | ||||
Restricted stock grants | 0 | $ 1 | (1) | ||
Restricted stock grants surrendered (in shares) | (116,000) | ||||
Restricted stock grants surrendered | (24,327) | $ (1) | (24,326) | ||
Stock compensation expense, net of forfeitures | 40,889 | 40,889 | |||
Employee stock purchase plan (in shares) | 15,000 | ||||
Employee stock purchase plan | 5,641 | $ 0 | 5,641 | ||
Stock issued for acquisitions (in shares) | 103,000 | ||||
Stock issued for acquisitions | 36,366 | $ 1 | 36,365 | ||
Balance (in shares) at Dec. 31, 2018 | 36,446,000 | ||||
Balance at Dec. 31, 2018 | 3,021,942 | $ 364 | 2,419,812 | (11,688) | 613,454 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 314,963 | 314,963 | |||
Other comprehensive income | 3,103 | 3,103 | |||
Exercise of stock options (in shares) | 116,000 | ||||
Exercise of stock options | 18,652 | $ 1 | 18,651 | ||
Restricted stock grants (in shares) | 168,000 | ||||
Restricted stock grants | 0 | $ 2 | (2) | ||
Restricted stock grants surrendered (in shares) | (76,000) | ||||
Restricted stock grants surrendered | (27,577) | $ (1) | (27,576) | ||
Stock compensation expense, net of forfeitures | 51,818 | 51,818 | |||
Management stock purchase plan | 3,491 | 3,491 | |||
Employee stock purchase plan (in shares) | 14,000 | ||||
Employee stock purchase plan | 7,144 | $ 0 | 7,144 | ||
Balance (in shares) at Dec. 31, 2019 | 36,668,000 | ||||
Balance at Dec. 31, 2019 | $ 3,405,593 | $ 366 | $ 2,473,338 | $ (8,585) | $ 940,474 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities: | |||
Net income | $ 314,963 | $ 238,334 | $ 122,695 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 81,165 | 77,743 | 63,643 |
Amortization of deferred commissions costs | 53,421 | 48,313 | 0 |
Amortization of debt issuance costs | 876 | 876 | 2,303 |
Non-cash lease expense | 22,748 | 0 | 0 |
Loss on extinguishment of debt | 0 | 0 | 3,788 |
Loss on disposal of property and equipment | 105 | 73 | 129 |
Stock-based compensation expense | 52,255 | 41,214 | 39,030 |
Deferred income taxes, net | 8,220 | 3,666 | (2,903) |
Bad debt expense | 10,978 | 6,542 | 5,690 |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable | (5,014) | (27,819) | (17,524) |
Prepaid expenses and other current assets | (14,244) | (1,651) | (3,672) |
Deferred commissions | (66,688) | (53,497) | 0 |
Income tax receivable | 0 | (1,927) | (12,981) |
Accounts payable and other liabilities | 17,751 | (14,132) | 11,525 |
Lease liabilities | (25,442) | 0 | 0 |
Income taxes payable | (577) | 9,632 | 16,937 |
Deferred revenue | 7,911 | 7,879 | 6,004 |
Other assets | (648) | 212 | 39 |
Net cash provided by operating activities | 457,780 | 335,458 | 234,703 |
Investing activities: | |||
Purchases of property and equipment and other assets | (46,197) | (29,632) | (24,499) |
Cash paid for acquisitions, net of cash acquired | (437,556) | (418,369) | (47,768) |
Net cash used in investing activities | (483,753) | (448,001) | (72,267) |
Financing activities: | |||
Payments of long-term debt | 0 | 0 | (345,000) |
Payments of debt issuance costs | 0 | 0 | (3,467) |
Repurchase of restricted stock to satisfy tax withholding obligations | (27,577) | (24,327) | (14,902) |
Proceeds from equity offering, net of transaction costs | 0 | 0 | 833,911 |
Proceeds from exercise of stock options and employee stock purchase plan | 25,080 | 27,071 | 9,888 |
Other financing activities | (1,657) | 0 | 0 |
Net cash (used in) provided by financing activities | (4,154) | 2,744 | 480,430 |
Effect of foreign currency exchange rates on cash and cash equivalents | 442 | (1,248) | 1,374 |
Net (decrease) increase in cash and cash equivalents | (29,685) | (111,047) | 644,240 |
Cash and cash equivalents at beginning of year | 1,100,416 | 1,211,463 | 567,223 |
Cash and cash equivalents at end of year | 1,070,731 | 1,100,416 | 1,211,463 |
Supplemental cash flow disclosures: | |||
Interest paid | 1,998 | 1,421 | 6,445 |
Income taxes paid | 68,935 | 35,980 | 41,283 |
Supplemental non-cash investing and financing activities: | |||
Stock issued in connection with acquisition - ForRent | 0 | 36,366 | 0 |
Consideration owed for acquisitions | $ 1,650 | $ 1,534 | $ 0 |
ORGANIZATION
ORGANIZATION | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION | ORGANIZATION CoStar Group, Inc. (the “Company” or “CoStar”) provides information, analytics and online marketplace services to the commercial real estate and related business community through its comprehensive, proprietary database of commercial real estate information. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for-sale and businesses for-sale, and its services are typically distributed to its clients under subscription-based license agreements that renew automatically, a majority of which have a term of at least one year . The Company operates within two operating segments, North America, which includes the United States (“U.S.”) and Canada, and International, which primarily includes Europe, Asia-Pacific and Latin America. On October 22, 2019, the Company acquired STR, Inc. and STR Global, Ltd. (together with STR, Inc., referred to as "STR"). STR provides benchmarking and analytics for the hospitality industry. See Note 4 to the accompanying Notes to the Consolidated Financial Statements for further discussion of this acquisition. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Accounting policies are consistent for each operating segment. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts, the useful lives and recoverability of long-lived and intangible assets, and goodwill; income taxes, the fair value of auction rate securities, accounting for business combinations, stock-based compensation, estimating the Company's incremental borrowing rate for its leases, and contingencies, among others. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ from these estimates. Revenue Recognition The Company derives revenues primarily by (i) providing access to its proprietary database of commercial real estate information and (ii) providing online marketplaces for professional property management companies, property owners, brokers and landlords, in each case typically through a fixed monthly fee for its subscription-based services. The Company's subscription-based services consist primarily of information, analytics and online marketplace services offered over the Internet to commercial real estate industry and related professionals. Subscription contract rates are based on the number of sites, number of users, organization size, the client’s business focus, geography, the number and types of services to which a client subscribes, the number of properties a client advertises and the prominence and placement of a client's advertised properties in the search results. The Company’s subscription-based license agreements typically renew automatically, and a majority have a term of at least one year . The Company also provides market research, portfolio and debt analysis, management and reporting capabilities, and real estate and lease management solutions, including lease administration and abstraction services, to commercial customers, real estate investors, lenders and hospitality customers via our other service offerings. The Company analyzes contracts to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers, (ii) identification of distinct performance obligations in the contract, (iii) determination of contract transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation(s). The Company recognizes revenues upon the satisfaction of its performance obligation(s) (upon transfer of control of promised services to its customers) in an amount that reflects the consideration to which it expects to be entitled to in exchange for those services. Revenues from subscription-based services are recognized on a straight-line basis over the term of the agreement. In limited circumstances, the Company's contracts with customers include promises to transfer multiple services, such as contracts for its subscription-based services and professional services. For these contracts, the Company accounts for individual performance obligations separately if they are distinct, which involves the determination of the standalone selling price for each distinct performance obligation. Deferred revenue results from amounts billed in advance to customers or cash received from customers in advance of the Company's fulfillment of its performance obligation(s) and is recognized over the term of the license agreement. Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Contract assets are generated when contractual billing schedules differ from revenue recognition timing. Certain sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions incurred for obtaining new contracts are deferred and then amortized as selling and marketing expenses on a straight-line basis over a period of benefit that the Company has determined to be three years . The three-year amortization period was determined based on several factors, including the nature of the technology and proprietary data underlying the services being purchased, customer contract renewal rates and industry competition. Certain commission costs are not capitalized as they do not represent incremental costs of obtaining a contract. See Note 3 for further discussion of the Company's revenue recognition. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU") 2014-09, Revenue from Contracts with Customers , later codified as Accounting Standards Codification 606 (" ASC 606 ") using the modified retrospective method. Operating results for periods subsequent to December 31, 2017 are presented under ASC 606 , while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting policies prior to adoption. For details about the Company’s revenue recognition policy prior to the adoption of ASC 606 , refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission on February 23, 2018. Cost of Revenues Cost of revenues principally consists of salaries, benefits, bonuses, and stock-based compensation expenses for the Company’s researchers who collect and analyze the commercial real estate data that is the basis for the Company’s information, analytics and online marketplaces. Additionally, cost of revenues includes the cost of data from third-party data sources, credit card and other transaction fees relating to processing customer transactions, which are expensed as incurred, operating lease costs and the amortization of acquired trade names, technology and other intangible assets. Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency for the majority of its operations is the local currency, with the exception of certain international locations of STR for which the functional currency is the British Pound. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect as of the balance sheet date. Gains and losses resulting from translation are included in accumulated other comprehensive loss. Currency g ains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature are also included in accumulated other comprehensive loss. Net gains or losses resulting from transactions denominated in a currency other than the functional currency of the entity are included in interest and other income (expense) in the consolidated statements of operations using the average exchange rates in effect during the period. There were no material gains or losses from foreign currency exchange transactions for the years ended December 31, 2019 , 2018 , and 2017 . Accumulated Other Comprehensive Loss The components of accumulated other comprehensive loss, net of tax were as follows (in thousands): As of December 31, 2019 2018 Foreign currency translation adjustment $ (7,855 ) $ (10,958 ) Net unrealized loss on investments (730 ) (730 ) Total accumulated other comprehensive loss $ (8,585 ) $ (11,688 ) There were no amounts reclassified out of accumulated other comprehensive loss to the consolidated statements of operations for the years ended December 31, 2019 , December 31, 2018 and December 31, 2017 . See Note 5 for additional information regarding unrealized gains and losses recognized on investments. Advertising Costs The Company expenses advertising costs as incurred. Advertising costs include e-commerce, television, radio, print and other media advertising. Advertising costs were approximately $164 million , $124 million and $104 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. Income Taxes Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in the Company’s consolidated financial statements. Deferred tax liabilities and assets are determined based on the difference between the financial statement and the tax basis of assets and liabilities using enacted rates in effect during the year in which the Company expects differences to reverse. Valuation allowances are provided against assets, including net operating losses, if the Company determines it is more likely than not that some portion or all of an asset may not be realized. Interest and penalties related to income tax matters are recognized in income tax expense. The Company has elected to record the global intangible low taxed income inclusion ("GILTI") under the current-period cost method. See Note 12 for additional information regarding income taxes. Net Income Per Share Net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period on a basic and diluted basis. The weighted-average number of common shares outstanding during the period used for purposes of calculating basic earnings per share excludes stock options and stock-based awards which include restricted stock awards that vest over a specific service period, restricted stock awards that vest based on achievement of a performance condition, restricted stock awards with a performance and a market condition, restricted stock units and Matching restricted stock units ("Matching RSUs) awarded under the Company's Management Stock Purchase Plan (the “MSPP”). The Company’s potentially dilutive securities include outstanding stock options and unvested restricted stock-based awards. Shares underlying unvested restricted stock-based awards that vest based on performance and market conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. Diluted net income per share considers the impact of potentially dilutive securities except when the inclusion of the potentially dilutive securities would have an anti-dilutive effect. See Note 16 for additional information on the Company's calculation of net income per share. Stock-Based Compensation Equity instruments issued in exchange for services performed by officers, employees, and directors of the Company are accounted for using a fair-value based method and the fair value of such equity instruments is recognized as expense in the consolidated statements of operations. For stock-based awards that vest over a specific service period, compensation expense is measured based on the fair value of the awards at the grant date, and is recognized on a straight-line basis over the vesting period of the awards, net of an estimated forfeiture rate. For equity instruments that vest based on achievement of a performance condition, stock-based compensation expense is recognized based on the expected achievement of the related performance conditions at the end of each reporting period over the vesting period of the awards. If the Company's initial estimates of the achievement of the performance conditions change, the related stock-based compensation expense and timing may fluctuate from period to period based on those estimates. If the performance conditions are not met, no stock-based compensation expense will be recognized, and any previously recognized stock-based compensation expense will be reversed. For awards with both a performance and a market condition, the Company estimates the fair value of each equity instrument granted on the date of grant using a Monte-Carlo simulation model. This pricing model uses multiple simulations to evaluate the probability of achieving the market condition to calculate the fair value of the awards. Stock-based compensation expense for stock options and restricted stock awards issued under equity incentive plans and stock purchases under the Employee Stock Purchase Plan ("ESPP") included in the Company’s results of operations were as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cost of revenues (1) $ 9,273 $ 7,688 $ 4,971 Selling and marketing (excluding customer base amortization) 6,809 6,881 7,086 Software development 8,985 7,454 7,071 General and administrative 27,188 20,695 19,902 Total stock-based compensation $ 52,255 $ 42,718 $ 39,030 __________________________ (1) For the year ended December 31, 2018, stock-based compensation expense includes $1.5 million of expense related to the cash settlement of stock options in connection with the acquisition of Cozy Services, Ltd. See Note 4 for details of the acquisition. Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 consisted of money market funds. Investments The Company determines the appropriate classification of debt and equity investments at the time of purchase and re-evaluates such designation as of each balance sheet date. The Company's investments consist of long-term variable rate debt instruments with an auction reset feature, referred to as auction rate securities, and are classified as available-for-sale. The Company's auction rate security investments are carried at fair value and any changes in unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss in stockholders’ equity until realized. A decline in market value of any investment below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Dividend and interest income are recognized when earned. Concentration of Credit Risk and Financial Instruments The Company’s customer base creates a lack of dependence on any individual customer that mitigates the risk of nonpayment of the Company’s accounts receivable. No single customer accounted for more than 5% of the Company’s revenues for each of the years ended December 31, 2019 , 2018 , and 2017 . The carrying amount of the accounts receivable approximates the net realizable value. The Company holds cash at major financial institutions that often exceed Federal Deposit Insurance Corporation insured limits. The Company manages its credit risk associated with cash concentrations by concentrating its cash deposits in high quality financial institutions and by periodically evaluating the credit quality of the primary financial institutions holding such deposits. The carrying value of cash approximates fair value. Historically, the Company has not experienced any losses due to such cash concentrations. Accounts Receivable, Net of Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount net of credits due. Accounts receivable payment terms vary and amounts due from customers are stated in the financial statements net of an allowance for doubtful accounts. When evaluating the adequacy of the allowance for doubtful accounts, the Company analyzes historical collection experience, changes in customer payment profiles and the aging of receivable balances, as well as current economic conditions, all of which may affect a customer’s ability to pay. Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases , later codified as Accounting Standards Codification ("ASC") 842 ( "ASC 842" ), using the modified retrospective method. For periods presented prior to the adoption date, the Company continues to follow its previous policy under ASC 840, Leases . For details about the Company’s lease policy prior to the adoption of ASC 842 , refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission on February 23, 2018 . The determination of whether an arrangement contains a lease and the classification of a lease, if applicable, is made at lease commencement, at which time the Company also measures and recognizes a right-of-use ("ROU") asset, representing the Company’s right to use the underlying asset, and a lease liability, representing the Company’s obligation to make lease payments under the terms of the arrangement. For the purposes of recognizing ROU assets and lease liabilities associated with the Company’s leases, the Company has elected the practical expedient to not recognize a ROU asset or lease liability for short-term leases, which are leases with a term of twelve months or less. The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease if it is reasonably certain that that the option will be exercised. In determining the amount of lease payments used in measuring ROU assets and lease liabilities, the Company has elected the practical expedient not to separate non-lease components from lease components for all classes of underlying assets. Consideration considered part of the lease payments used to measure ROU assets and lease liabilities generally includes fixed payments and variable payments based on either an index or a rate. The ROU asset also includes any lease prepayments, offset by lease incentives. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The rates implicit within the Company's leases are generally not determinable, therefore, the Company's incremental borrowing rate is used to determine the present value of lease payments. The determination of the Company’s incremental borrowing rate requires judgment. Because the Company currently has no outstanding debt, the incremental borrowing rate for each lease is primarily based on publicly available information for companies within the same industry and with similar credit profiles as the Company. The rate is then adjusted for the impact of collateralization, the lease term and other specific terms included in the Company’s lease arrangements. The incremental borrowing rate is determined at lease commencement, or as of January 1, 2019 for operating leases in existence upon adoption of ASC 842 . The incremental borrowing rate is subsequently reassessed upon a modification to the lease arrangement. ROU assets are subsequently assessed for impairment in accordance with the Company’s accounting policy for long-lived assets. Lease costs related to the Company's operating leases are generally recognized as a single ratable lease cost over the lease term. See Note 7 for further discussion of the Company’s accounting for leases. Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and amortization. All repairs and maintenance costs are expensed as incurred. Costs related to acquisition of additional aircraft components or the replacement of existing aircraft components are capitalized and depreciated over the estimated useful life of the aircraft or the added or replaced component, whichever is less. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives of the assets: Leasehold improvements Shorter of lease term or useful life Computer hardware and software Three to five years Furniture and office equipment Five to ten years Vehicles Five years Aircraft Ten to twenty years Qualifying internal-use software costs incurred during the application development stage, which consist primarily of internal product development costs, outside services and purchased software license costs are capitalized and amortized over the estimated useful life of the asset. All other costs are expensed as incurred. Long-Lived Assets, Intangible Assets and Goodwill Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Acquired technology and data, customer base assets, trade names and other intangible assets are related to the Company’s acquisitions (see Notes 4 , 9 and 10 ). Acquired technology and data is amortized on a straight-line basis over periods ranging from one year to eight years . Acquired intangible assets characterized as customer base assets consist of acquired customer contracts and the related customer relationships and are amortized over periods ranging from five years to thirteen years . Acquired customer bases are amortized on an accelerated or straight-line basis depending on the expected economic benefit of the intangible asset. Acquired trade names and other intangible assets are amortized on a straight-line basis over periods ranging from one year to fifteen years . Goodwill represents the future economic benefits arising from a business combination and is calculated as the excess of the purchase consideration paid in a business combination over the fair value of assets acquired. Goodwill is not amortized, but instead is assigned to each of the Company's reporting units and tested for impairment at least annually on October 1, or more frequently if an event or other circumstance indicates that the fair value of a reporting unit may be below its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or the Company elects to bypass such assessment, the Company then determines the fair value of each reporting unit. The estimate of the fair value of each reporting unit is based on a projected discounted cash flow model that includes significant assumptions and estimates including the discount rate, growth rate and future financial performance. Assumptions about the discount rate are based on a weighted average cost of capital for comparable companies. Assumptions about the growth rate and future financial performance of a reporting unit are based on the Company's forecasts, business plans, economic projections and anticipated future cash flows. The fair value of each reporting unit is compared to the carrying amount of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference. Debt Issuance Costs Costs incurred in connection with the issuance of long-term debt are deferred and amortized as interest expense over the term of the related debt using the effective interest method for term debt and on a straight-line basis for revolving debt. To the extent that debt is outstanding, these amounts are reflected in the consolidated balance sheets as direct deductions from a combination of the current and long-term portions of debt for term debt and as current and long-term assets for costs related to revolving debt. Upon a refinancing or amendment, previously capitalized debt issuance costs are expensed and included in loss on extinguishment of debt if the Company determines that there has been a substantial modification of the related debt. If the Company determines that there has not been a substantial modification of the related debt, any previously capitalized debt issuance costs are amortized as interest expense over the term of the new debt instrument. See Note 11 for additional information on the Company's long-term debt and related debt issuance costs. Business Combinations The Company allocates the purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities incurred and equity interests issued, after considering any transactions that are separate from the business combination. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and contingent liabilities. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer bases, acquired technology and acquired trade names, useful lives, royalty rates and discount rates. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period in order to obtain sufficient information to assess whether the Company includes these contingencies as a part of the fair value estimates of assets acquired and liabilities assumed and, if so, to determine their estimated amounts. If the Company cannot reasonably determine the fair value of a pre-acquisition contingency (non-income tax related) by the end of the measurement period, which is generally the case given the nature of such matters, the Company will recognize an asset or a liability for such pre-acquisition contingency if: (i) it is probable that an asset existed or a liability had been assumed at the acquisition date and (ii) the amount of the asset or liability can be reasonably estimated. Subsequent to the measurement period, changes in the Company's estimates of such contingencies will affect earnings and could have a material effect on its results of operations and financial position. In addition, uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items based upon facts and circumstances that existed as of the acquisition date, with any adjustments to its preliminary estimates being recorded to goodwill provided that the Company is within the measurement period. Subsequent to the measurement period, changes to these uncertain tax positions and tax related valuation allowances will affect the Company's provision for income taxes in its consolidated statements of operations and comprehensive income and could have a material impact on its results of operations and financial position. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU 2016-02, Leases , using the modified retrospective method which allows for the application of the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these consolidated financial statements. As permitted by the guidance, the Company elected to retain the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date and did not reassess contracts entered into prior to the adoption date for the existence of a lease. The Company also did not recognize ROU assets and lease liabilities for short-term leases, which are leases in existence as of the adoption date with an original term of twelve months or less. As a result of the adoption of the standard, the Company recognized ROU assets of $116 million , including prepaid rent and deferred rent that was reclassified and recognized as of the adoption date as a component of the ROU assets, as well as lease liabilities of $150 million on its consolidated balance sheet. The assets and liabilities recognized upon application of the transition provisions were primarily associated with existing office leases. The Company also recognized a cumulative-effect adjustment to beginning retained earnings of $12 million , net of tax, as of January 1, 2019, to recognize the remaining deferred gain on the sale-leaseback of the Company's corporate headquarters building, pursuant to the guidance in ASC 842 . Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740, Income Tax and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for public business entities for annual reporting periods beginning after December 15, 2020, and interim periods within those periods. Early adoption is permitted. The Company evaluated the impact of this guidance on its financial statements and related disclosures and has elected to early adopt the guidance as of January 1, 2020. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. The exceptions removed as part of the standard were determined to be not applicable to the Company. The primary impact from adopting the standard will result in a reclassification of franchise taxes, which previously had been classified as a component of income from operations but will now be classified as a component of income tax expense beginning January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (subsequent to adoption of ASU 2018-13, Fair Value Measurement) . The ASU was issued to eliminate certain disclosure requirements for fair value measurements, and add and modify other disclosure requirements, as part of its disclosure framework project, including additional requirements for public companies to disclose certain information about the significant unobservable inputs for Level 3 fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. When determining such expected credit losses, the guidance r |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | REVENUE FROM CONTRACTS WITH CUSTOMERS Disaggregated Revenue The Company provides information, analytics and online marketplaces to the commercial real estate industry and related professionals. The revenues by operating segment and type of service consist of the following (in thousands): Year Ended December 31, 2019 2018 North America International Total North America International Total Information and analytics CoStar Suite $ 590,222 $ 27,576 $ 617,798 $ 519,661 $ 25,534 $ 545,195 Information services 76,950 11,496 88,446 58,708 8,916 67,624 Online marketplaces Multifamily 490,631 — 490,631 405,795 — 405,795 Commercial property and land 202,264 580 202,844 173,137 81 173,218 Total revenues $ 1,360,067 $ 39,652 $ 1,399,719 $ 1,157,301 $ 34,531 $ 1,191,832 Deferred Revenue Changes in deferred revenue for the period were as follows (in thousands): Balance at December 31, 2018 $ 51,459 Revenue recognized in the current period from the amounts in the beginning balance (49,937 ) New deferrals, net of amounts recognized in the current period 68,814 Effects of foreign currency 284 Balance at December 31, 2019 (1) $ 70,620 __________________________ (1) Deferred revenue was comprised of $67 million of current liabilities and $3 million of noncurrent liabilities classified within lease and other long-term liabilities on the Company’s consolidated balance sheet as of December 31, 2019 . The balance includes $11 million of net new deferrals recognized in connection with business acquisitions made in 2019. See Note 4 for details. Contract Assets The Company had contract assets of $4 million and $2 million as of December 31, 2019 and December 31, 2018 , respectively; which are generated when contractual billing schedules differ from revenue recognition timing. Contract assets represent a conditional right to consideration for satisfied performance obligations that becomes a receivable when the conditions are satisfied. Current contract assets are included in prepaid expenses and other current assets and non-current contract assets are included in deposits and other assets on the Company's consolidated balance sheets. Commissions Commissions expense is included in selling and marketing expense in the Company's consolidated statements of operations. The Company determined that no deferred commissions were impaired as of December 31, 2019 . Commissions expense activity as of December 31, 2019 and December 31, 2018 was as follows (in thousands): Year Ended December 31, 2019 2018 Commissions incurred $ 87,043 $ 72,899 Commissions capitalized in the current period (66,688 ) (53,497 ) Amortization of deferred commissions costs 53,421 48,313 Total commissions expense $ 73,776 $ 67,715 Refer to Note 2 for the Company's policy on accounting for commissions. Unsatisfied Performance Obligations Remaining contract consideration for which revenue had not been recognized due to unsatisfied performance obligations was approximately $257 million at December 31, 2019 , which the Company expects to recognize over the next five years . This amount does not include contract consideration for contracts with a duration of one year or less. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS STR, Inc. and STR Global Ltd. On October 22, 2019, the Company acquired all of the issued and outstanding equity interests of STR for a purchase price of $435 million . STR is a global provider of benchmarking and analytics for the hospitality industry. The combination of STR's and CoStar's offerings is expected to allow for the creation of valuable new and improved tools for industry participants. The Company applied the acquisition method to account for the STR transaction, which requires that assets acquired and liabilities assumed be recorded at their fair values as of the acquisition date. The following table summarizes the amounts recorded for acquired assets and assumed liabilities recorded at their fair values as of the acquisition date (in thousands): Preliminary: October 22, 2019 Cash and cash equivalents $ 11,710 Accounts receivable 8,067 Lease right-of-use assets 7,306 Goodwill 261,436 Intangible assets 178,000 Lease liabilities (7,306 ) Deferred revenue (10,966 ) Deferred tax liabilities (7,980 ) Other assets and liabilities (4,815 ) Fair value of identifiable net assets acquired $ 435,452 The net assets of STR were recorded at their estimated fair values. In valuing the acquired assets and assumed liabilities, fair value estimates were based primarily on future expected cash flows, market rate assumptions for contractual obligations and appropriate discount rates. The purchase price allocation is preliminary, subject to the final determination of net working capital as of the acquisition date and the Company's assessment of certain tax matters. The customer base assets incorporated significant assumptions that had a material impact on the estimated fair value, such as discount rates, projected revenue growth rates, customer attrition rates and projected profit margins. The following table summarizes the fair values (in thousands) of the identifiable intangible assets included in each of the Company's operating segments, their related estimated useful lives (in years) and their respective amortization methods: North America International Estimated Fair Value Estimated Useful Life Estimated Fair Value Estimated Useful Life Amortization Method Customer base $ 97,000 13 $ 42,000 10 Accelerated Trade name 24,000 15 Straight-line Other intangible assets 10,000 5 5,000 5 Straight-line Total intangible assets $ 131,000 $ 47,000 Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the STR acquisition includes but is not limited to: (i) the expected synergies and other benefits that the Company believes will result from combining its operations with STR's operations; and (ii) any intangible assets that do not qualify for separate recognition, such as the assembled workforce. Goodwill recorded in connection with this acquisition is not amortized, but is subject to an annual impairment test. Of the $261 million of goodwill recorded as part of the acquisition, $159 million and $102 million are associated with the Company's North America and International operating segments, respectively. The goodwill recognized in the North America operating segment is expected to be deductible for income tax purposes in future periods. As part of the STR acquisition, the Company incurred $2 million of transaction costs. Additionally, the Company paid $15 million cash into a cash escrow account for deferred compensation for certain STR employees, to be paid to active employees after a defined one year period following the acquisition or when earlier terminated without cause or terminated for good reason. In the event some or all of those employees are not entitled to their retention bonus, the funds will be remitted to the seller. The Company is recognizing compensation expense for the deferred compensation over the one year post-combination period. ForRent On February 21, 2018, the Company acquired all of the issued and outstanding capital stock of DE Holdings, Inc., including its ForRent division ("ForRent"), a wholly owned subsidiary of Dominion Enterprises ("Seller"), for a purchase price of approximately $376 million . The purchase price was comprised of approximately $340 million in cash and 103,280 shares of Company common stock, valued at approximately $36 million . ForRent's primary service is digital advertising provided through a network of four multifamily websites. The acquisition has yielded increased revenue, significant cost synergies and an improved competitive position in the industry. The Company applied the acquisition method to account for the ForRent transaction, which requires that assets acquired and liabilities assumed be recorded at their fair values as of the acquisition date. The following table summarizes the amounts recorded for acquired assets and assumed liabilities recorded at their fair values as of the acquisition date (in thousands): Final: February 21, 2018 Cash and cash equivalents $ 59 Accounts receivable 8,769 Indemnification asset 5,443 Goodwill 266,595 Intangible assets 141,300 Deferred tax liabilities (34,032 ) Contingent sales tax liability (6,260 ) State uncertain income tax position liability (2,047 ) Other assets and liabilities (3,535 ) Fair value of identifiable net assets acquired $ 376,292 The net assets of ForRent were recorded at their estimated fair values. In valuing acquired assets and assumed liabilities, fair value estimates were based primarily on future expected cash flows, market rate assumptions for contractual obligations and appropriate discount rates. Measurement period adjustments related to the determination of working capital as of the acquisition date and recognized in 2018 were not material. The acquired customer base for the acquisition is composed of acquired customer contracts and the related customer relationships, and has a weighted average estimated useful life of ten years . The acquired technology has an estimated useful life of three years . The acquired trade name has a weighted average estimated useful life of ten years . The acquired building photography had an estimated useful life of one year . Amortization of the acquired customer base is recognized on an accelerated basis related to the expected economic benefit of the intangible asset, while amortization of the acquired technology, acquired building photography and acquired trade names and other intangible assets is recognized on a straight-line basis over their respective estimated useful lives. Goodwill recorded in connection with this acquisition is not amortized, but is subject to an annual impairment test. The $267 million of goodwill recorded as part of the acquisition is associated with the Company's North America operating segment. $8 million of goodwill that was recognized is expected to be deductible for income tax purposes in future periods. Goodwill is calculated as the excess of the consideration transferred over the net assets recognized and represents the future economic benefits arising from other assets acquired that could not be individually identified and separately recognized. Specifically, the goodwill recorded as part of the ForRent acquisition includes but is not limited to: (i) the expected synergies and other benefits that the Company believes will result from combining its operations with ForRent's operations; and (ii) any intangible assets that do not qualify for separate recognition, such as the assembled workforce. Upon acquisition, the Company assessed the (i) probability of a contingent sales tax liability and (ii) a state uncertain income tax position liability due to apportionment factors, and recorded accruals of $6 million and $2 million , respectively. The Company could not determine the fair value for the pre-acquisition state sales tax liability and therefore estimated a liability in accordance with ASC 450, Contingencies , using a state-by-state assessment. The uncertain income tax position was determined in accordance with the provisions of ASC 740, Income Tax, and was recorded as part of the purchase price allocation. The Seller has provided an indemnity for tax liabilities related to periods prior to the acquisition. The Seller's indemnification obligation for sales taxes in the state of Texas is limited to approximately $2 million . The total sales tax and uncertain income tax indemnification assets established as of the acquisition date were $5 million and $2 million , respectively. $0.9 million and $0.5 million of the contingent sales tax liability and related indemnification asset recognized as of the acquisition date were reversed during 2019 and 2018 , respectively, upon expiration of the statute of limitations applicable to the contingent sales tax liability. $0.6 million and $0.9 million of the uncertain income tax position liability and related indemnification asset recognized as of the acquisition date were reversed during 2019 and 2018 , respectively, upon expiration of the statute of limitations applicable to the uncertain income tax position. As part of the ForRent acquisition, the Company incurred $3 million of transaction costs. Additionally, the Company paid $12 million cash into a cash escrow account for retention compensation for certain ForRent employees, payable if they remained employed by the Company for a defined six-month period following the acquisition or were earlier terminated without cause or resigned for good reason. In the event funds remained in the escrow account after the employees were compensated and the defined six-month period ended, those funds were remitted to the Seller. The Company expensed all of the retention compensation as the services were performed in the post-combination period in 2018. Other Acquisitions On June 12, 2019, the Company acquired Off Campus Partners, LLC ("OCP"), a provider of student housing marketplace content and technology to U.S. universities for $16 million . The purchase agreement required an initial payment of $14 million , net of cash acquired, at the time of closing, with the remainder of the purchase price payable one year following the acquisition date, subject to offset for indemnification claims or adjustments to the purchase price after final determination of closing net working capital. As part of the acquisition, the Company recorded goodwill and intangibles assets of $8 million and $9 million , respectively. The net assets of OCP were recorded at their estimated fair value. The estimated fair values are preliminary, subject to the Company's assessment of certain tax matters. Measurement period adjustments recognized in 2019 were not material. On November 8, 2018, the Company acquired Cozy Services, Ltd. ("Cozy"), a provider of online rental solutions that provides a broad spectrum of services to both landlords and tenants, for $65 million , net of cash acquired. As part of the acquisition, the Company recorded goodwill and intangible assets of $52 million and $11 million , respectively. The net assets of Cozy were recorded at their estimated fair value. Measurement period adjustments recognized in 2019 were not material. On October 12, 2018, the Company acquired Realla Ltd. ("Realla"), the operator of a commercial property listings and data management platform in the U.K. for £12 million ( $15 million ). The purchase agreement required an initial payment of £10 million ( $13 million ), net of cash acquired, at the time of closing, with the remainder of the purchase price paid one year following the acquisition date, subject to offset for claims under the purchase agreement. In connection with the acquisition, the Company recorded goodwill and intangible assets of £8 million ( $10 million ) and £4 million ( $5 million ), respectively. The net assets of Realla were recorded at their estimated fair value. Measurement period adjustments recognized in 2019 were not material. Pro Forma Financial Information The unaudited pro forma financial information presented below summarizes the combined results of operations for the Company, ForRent and STR as though the companies were combined as of January 1, 2017 and January 1, 2018, respectively. The impact of Realla, Cozy and OCP on the pro forma financial information was not material and therefore those acquisitions were not included. The unaudited pro forma financial information for all periods presented includes amortization charges from acquired intangible assets, retention compensation, as referenced above, and the related tax effects, along with certain other accounting effects, but excludes the impacts of any expected operational synergies. The unaudited pro forma financial information as presented below is for informational purposes only and is not necessarily indicative of the results of operations that would have been achieved if the acquisitions of ForRent and STR had taken place on January 1, 2017 and January 1, 2018, respectively. The unaudited pro forma financial information for the years ended December 31, 2019 , 2018 and 2017 combine the historical results of the Company for the years ended December 31, 2019 , 2018 and 2017 , the historical results of ForRent and STR for the periods prior to the acquisition dates, and the effects of the pro forma adjustments listed above. The unaudited pro forma financial information, in aggregate, was as follows (in thousands, except per share data): Year Ended 2019 2018 2017 Revenue $ 1,450,954 $ 1,264,696 $ 1,067,742 Net income $ 306,755 $ 226,305 $ 103,000 Net income per share - basic $ 8.45 $ 6.28 $ 3.09 Net income per share - diluted $ 8.37 $ 6.21 $ 3.06 Revenue and net loss attributable to STR from October 22, 2019 through December 31, 2019 was not material. The Company began integrating the sales force and operations of ForRent after the closing of the acquisition in an effort to create operating synergies. As a result of these integration activities, it is impracticable to disclose revenue and earnings from ForRent from the acquisition date through December 31, 2018. |
INVESTMENTS
INVESTMENTS | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENTS | INVESTMENTS The Company's investments consist of long-term variable rate debt instruments with an auction reset feature, referred to as auction rate securities ("ARS"), and are classified as available-for-sale and are carried at fair value. Scheduled maturities of investments classified as available-for-sale as of December 31, 2019 are as follows (in thousands): Maturity Fair Value Due in: 2020 $ — 2021 — 2024 — 2025 — 2029 — 2030 and thereafter 10,070 Available-for-sale investments $ 10,070 The Company had no realized gains or losses on its investments during the years ended December 31, 2019 , 2018 and 2017 . Realized gains and losses from the sale of available-for-sale securities are determined on a specific-identification basis. As of December 31, 2019 , the amortized cost basis and fair value of investments classified as available-for-sale were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Auction rate securities $ 10,800 $ — $ (730 ) $ 10,070 Available-for-sale investments $ 10,800 $ — $ (730 ) $ 10,070 As of December 31, 2018 , the amortized cost basis and fair value of investments classified as available-for-sale were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Auction rate securities $ 10,800 $ — $ (730 ) $ 10,070 Available-for-sale investments $ 10,800 $ — $ (730 ) $ 10,070 The unrealized losses on the Company’s investments as of December 31, 2019 and 2018 were generated primarily from changes in interest rates and ARS that failed to settle at auction, due to adverse conditions in the global credit markets. The losses are considered temporary, as the contractual terms of these investments do not permit the issuer to settle the security at a price less than the amortized cost of the investment. Because the Company does not intend to sell these instruments and it is not more likely than not that the Company will be required to sell these instruments prior to anticipated recovery, which may be at maturity, the Company does not consider these investments to be other-than-temporarily impaired as of December 31, 2019 and 2018 . See Note 6 for further discussion of the fair value of the Company’s financial assets. The components of the Company’s investments in an unrealized loss position for twelve months or longer were as follows (in thousands): December 31, 2019 2018 Aggregate Fair Value Gross Unrealized Losses Aggregate Fair Value Gross Unrealized Losses Auction rate securities $ 10,070 $ (730 ) $ 10,070 $ (730 ) Investments in an unrealized loss position $ 10,070 $ (730 ) $ 10,070 $ (730 ) The Company did not have any investments in an unrealized loss position for less than twelve months as of December 31, 2019 and 2018 , respectively. |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE Fair value is defined as the price that would be received in the sale of an asset or paid to transfer a liability in an orderly transaction between market participants. There is a three-tier fair value hierarchy, which categorizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets for identical assets or liabilities; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Money market funds $ 576,761 $ — $ — $ 576,761 Auction rate securities — — 10,070 10,070 Total assets measured at fair value $ 576,761 $ — $ 10,070 $ 586,831 The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of December 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets: Money market funds $ 590,567 $ — $ — $ 590,567 Auction rate securities — — 10,070 10,070 Total assets measured at fair value $ 590,567 $ — $ 10,070 $ 600,637 The carrying value of accounts receivable, accounts payable and accrued expenses approximates fair value. The Company’s Level 3 assets consist of ARS, whose underlying assets are primarily student loan securities supported by guarantees from the Federal Family Education Loan Program (“FFELP”) of the U.S. Department of Education. The following table summarizes changes in fair value of the Company’s Level 3 assets from December 31, 2017 to December 31, 2019 (in thousands): Auction Rate Securities Balance at December 31, 2017 $ 10,070 Decrease in unrealized loss included in accumulated other comprehensive loss — Balance at December 31, 2018 10,070 Decrease in unrealized loss included in accumulated other comprehensive loss — Balance at December 31, 2019 $ 10,070 ARS are variable rate debt instruments whose interest rates are reset approximately every 28 days . The underlying securities have contractual maturities greater than twenty years . The ARS are recorded at fair value. As of December 31, 2019 , the Company held ARS with $11 million par value, all of which failed to settle at auction. The majority of these investments are of high credit quality and are primarily student loan securities supported by guarantees from the FFELP of the U.S. Department of Education. The Company may not be able to liquidate and fully recover the carrying value of the ARS in the near term. As a result, these securities are classified as long-term investments in the Company’s consolidated balance sheet as of December 31, 2019 . See Note 5 for further discussion of the scheduled maturities of investments classified as available-for-sale. While the Company continues to earn interest on its ARS investments at the contractual rate, these investments are not currently actively trading and therefore do not currently have a readily determinable market value. The estimated fair value of the ARS no longer approximates par value. The Company used a discounted cash flow model to determine the estimated fair value of its investment in ARS as of December 31, 2019 . The assumptions used in preparing the discounted cash flow model include estimates for interest rates, credit spreads, timing and amount of contractual cash flows, liquidity risk premiums, expected holding periods and default risk. The Company updates the discounted cash flow model on a quarterly basis to reflect any changes in the assumptions used in the model and settlements of ARS investments that occurred during the period. The only significant unobservable input in the discounted cash flow model is the discount rate. The discount rate used represents the Company's estimate of the yield expected by a market participant from the ARS investments. The weighted average discount rate used in the discounted cash flow models as of December 31, 2019 and 2018 was approximately 5% and 6% , respectively. Selecting another discount rate within the range used in the discounted cash flow model would not result in a significant change to the fair value of the ARS. Based on this assessment of fair value, as of December 31, 2019 , the Company determined there was no decline in the fair value of its ARS investments. In addition, the ARS are of high credit quality, if the issuers are unable to successfully close future auctions and/or their credit ratings deteriorate, the Company may be required to record additional unrealized losses in accumulated other comprehensive loss or an other-than-temporary impairment charge to earnings on these investments. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company has operating leases for its office facilities, data centers and certain vehicles, as well as finance leases for office equipment. The Company's leases have remaining terms of less than one year to nine years . The leases contain various renewal and termination options. The period which is subject to an option to extend the lease is included in the lease term if it is reasonably certain that the option will be exercised. The period which is subject to an option to terminate the lease is included if it is reasonably certain that the option will not be exercised. Lease costs related to the Company's operating leases included in the consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2019 2018 2017 Operating lease costs: Cost of revenues $ 11,407 $ 11,926 $ 10,214 Software development 4,209 3,335 2,721 Selling and marketing (excluding customer base amortization) 8,678 9,068 8,279 General and administrative 3,299 3,789 4,467 Total operating lease costs $ 27,593 $ 28,118 $ 25,681 The impact of lease costs related to finance leases and short-term leases was not material for the years ended December 31, 2019 , 2018 and 2017 . Supplemental balance sheet information related to operating leases was as follows (in thousands): Balance Balance Sheet Location December 31, 2019 Long-term lease liabilities Lease and other long-term liabilities $ 120,153 Weighted-average remaining lease term in years 5.0 Weighted-average discount rate 4.0 % Balance sheet information related to finance leases was not material as of December 31, 2019 . Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 30,287 ROU assets obtained in exchange for lease obligations: Operating leases $ 22,629 Maturities of operating lease liabilities at December 31, 2019 were as follows (in thousands): January 1, 2020 - December 31, 2020 $ 34,976 January 1, 2021 - December 31, 2021 33,760 January 1, 2022 - December 31, 2022 30,938 January 1, 2023 - December 31, 2023 29,663 January 1, 2024 - December 31, 2024 23,972 Thereafter 12,233 Total lease payments 165,542 Less imputed interest (15,719 ) Present value of lease liabilities $ 149,823 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment consists of the following (in thousands): December 31, 2019 2018 Leasehold improvements $ 73,918 $ 65,332 Furniture, office equipment and vehicles 60,768 50,224 Computer hardware and software 80,947 74,742 Aircraft 27,657 2,796 Property and equipment, gross 243,290 193,094 Accumulated depreciation and amortization (135,761 ) (109,791 ) Property and equipment, net $ 107,529 $ 83,303 Depreciation expense for property and equipment was approximately $26 million , $26 million and $26 million , for the years ended December 31, 2019 , 2018 and 2017 |
GOODWILL
GOODWILL | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill by operating segment consist of the following (in thousands): North America International Total Goodwill, December 31, 2017 $ 1,253,494 $ 29,963 $ 1,283,457 Acquisition 319,594 10,344 329,938 Effect of foreign currency translation — (1,860 ) (1,860 ) Goodwill, December 31, 2018 1,573,088 38,447 1,611,535 Acquisitions 165,272 102,532 267,804 Effect of foreign currency translation — 2,681 2,681 Goodwill, December 31, 2019 $ 1,738,360 $ 143,660 $ 1,882,020 The Company recorded goodwill of approximately $261 million in connection with the October 22, 2019 acquisition of STR. The Company recorded goodwill of approximately $8 million in connection with the June 2019 acquisition of OCP. The Company recorded goodwill of approximately $53 million in connection with the November 8, 2018 acquisition of Cozy, a provider of online rental solutions that provides a broad spectrum of services to both landlords and tenants, including property listings, rent estimates, rental applications, tenant screening, online rent payments and expense tracking. The Company recorded a measurement period adjustment during 2019 which resulted in a $1 million reduction to the initial amount of goodwill recognized in connection with this acquisition. The Company recorded goodwill of approximately $10 million in connection with the October 12, 2018 acquisition of Realla. The Company recorded goodwill of approximately $267 million in connection with the February 21, 2018 acquisition of ForRent. The total amount of goodwill that is expected to be deductible for tax purposes is approximately $166 million as of December 31, 2019 . No impairments of the Company's goodwill were recognized during the years ended December 31, 2019 , 2018 and 2017 . |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets consist of the following (in thousands, except amortization period data): December 31, Weighted- Average Amortization Period (in years) 2019 2018 Acquired technology and data 105,168 103,128 5 Accumulated amortization (90,542 ) (85,344 ) Acquired technology, net 14,626 17,784 Acquired customer base 487,532 339,574 11 Accumulated amortization (233,202 ) (199,405 ) Acquired customer base, net 254,330 140,169 Acquired trade names and other intangible assets 236,358 199,752 12 Accumulated amortization (84,118 ) (68,794 ) Acquired trade names and other intangible assets, net 152,240 130,958 Intangible assets, net $ 421,196 $ 288,911 Amortization expense for intangible assets was approximately $55 million , $52 million and $37 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. In the aggregate, the Company expects the future amortization expense for intangible assets existing as of December 31, 2019 to be approximately $72 million , $61 million , $51 million , $45 million and $39 million for the years ending December 31, 2020, 2021, 2022, 2023 and 2024, respectively. Intangible assets are reviewed for impairment at least annually and more frequently whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. No impairments of the Company's intangible assets were recognized during the years ended December 31, 2019 , 2018 and 2017 . |
LONG-TERM DEBT
LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT On October 19, 2017, the Company entered into an amended and restated credit agreement (the ‘‘2017 Credit Agreement’’), which amended and restated in its entirety the then-existing credit agreement dated April 1, 2014 (the "2014 Credit Agreement"). The 2017 Credit Agreement provides for a $750 million revolving credit facility with a term of five years from a syndicate of financial institutions as lenders and issuing banks. The 2017 facility may be used for working capital and other general corporate purposes of the Company and its subsidiaries. Up to $20 million of the revolving credit facility is available for the issuance of letters of credit. The Company had an irrevocable standby letter of credit outstanding totaling $0.2 million as of December 31, 2019 and December 31, 2018 , which was required to secure its San Francisco office lease. The letter of credit was established in 2014 and automatically renews through January 31, 2025. The loans under the 2017 Credit Agreement bear interest during any interest period selected by the Company, at either (i) the London interbank offered rate for deposits in U.S. dollars with a maturity comparable to such interest period, adjusted for statutory reserves (“LIBOR”), plus an initial spread of 1.25% per annum, subject to adjustment based on the First Lien Secured Leverage Ratio (as defined in the 2017 Credit Agreement) of the Company, or (ii) at the greatest of (x) the prime rate from time to time announced by JPMorgan Chase Bank, N.A., (y) the federal funds effective rate plus half of 1% and (z) LIBOR for a one-month interest period plus 1.00% , plus an initial spread of 0.25% per annum, subject to adjustment based on the First Lien Secured Leverage Ratio of the Company. If an event of default occurs under the 2017 Credit Agreement, the interest rate on overdue amounts will increase by 2.00% per annum. The obligations under the 2017 Credit Agreement are guaranteed by all material subsidiaries of the Company and are secured by a lien on substantially all of the assets of the Company and its material subsidiaries, in each case subject to certain exceptions, pursuant to security and guarantee agreements entered into on the closing date of the 2017 Credit Agreement. LIBOR may not always be available to the Company as a base interest rate for the credit facility, and the transition away from LIBOR is anticipated to begin in 2021, though it may become unavailable even earlier. The Company may need or seek to negotiate with its lenders for an alternative rate. In doing so, the Company may not be able to agree with its lenders on a replacement reference rate that was favorable as LIBOR, which may increase our capital costs. The 2017 Credit Agreement requires the Company to maintain (i) a First Lien Secured Leverage Ratio not exceeding 3.50 to 1.00 and (ii) after the incurrence of additional indebtedness under certain specified exceptions in the 2017 Credit Agreement, a Total Leverage Ratio (as defined in the 2017 Credit Agreement) not exceeding 4.50 to 1.00 . The 2017 Credit Agreement also includes other covenants, including ones that subject to certain exceptions, restrict the ability of the Company and its subsidiaries to (i) incur additional indebtedness, (ii) create, incur, assume or permit to exist any liens, (iii) enter into mergers, consolidations or similar transactions, (iv) make investments and acquisitions, (v) make certain dispositions of assets, (vi) make dividends, distributions and prepayments of certain indebtedness, and (vii) enter into certain transactions with affiliates. The Company was in compliance with the covenants in the 2017 Credit Agreement as of December 31, 2019 . The Company had no outstanding long-term debt at December 31, 2019 and December 31, 2018 . For the years ended December 31, 2019 , 2018 and 2017 , the Company recognized interest expense of $3 million , $3 million and $9 million , including amortized debt issuance costs of approximately $0.9 million , $1 million and $2 million , respectively. The Company had $2 million and $3 million of deferred debt issuance costs included in deposits and other assets at December 31, 2019 and December 31, 2018 , respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the provision for income taxes attributable to operations consist of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ 53,039 $ 36,167 $ 41,453 State 13,422 5,140 3,518 Foreign 1,305 708 295 Total current 67,766 42,015 45,266 Deferred: Federal 6,881 6,576 (7,917 ) State 2,424 (2,582 ) 4,695 Foreign (1,085 ) (328 ) 319 Total deferred 8,220 3,666 (2,903 ) Total provision for income taxes $ 75,986 $ 45,681 $ 42,363 The components of deferred tax assets and liabilities consist of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Reserve for bad debts 1,312 1,457 Accrued compensation 4,297 4,803 Stock compensation 13,877 10,041 Net operating losses 20,555 26,349 Accrued reserve and other 4,177 1,773 Lease liabilities 36,472 — Deferred rent — 5,928 Deferred gain on the sale of building — 4,140 Research and development credits 6,341 6,331 Total deferred tax assets, prior to valuation allowance 87,031 60,822 Valuation allowance (13,553 ) (14,246 ) Total deferred tax assets, net of valuation allowance 73,478 46,576 Deferred tax liabilities: Deferred commission costs, net (22,612 ) (19,314 ) Lease right-of-use assets (30,830 ) — Prepaid expenses (1,548 ) (2,204 ) Property and equipment, net (8,891 ) (5,367 ) Intangible assets, net (91,285 ) (82,079 ) Total deferred tax liabilities (155,166 ) (108,964 ) Net deferred tax assets (liabilities) $ (81,688 ) $ (62,388 ) As of December 31, 2019 and 2018 , a valuation allowance has been established for certain deferred tax assets due to the uncertainty of realization. The valuation allowance as of December 31, 2019 and 2018 includes an allowance for unrealized losses on ARS investments, foreign deferred tax assets and state net operating losses and tax credits. The valuation allowance for the deferred tax asset for unrealized losses on ARS has been recorded as an adjustment to accumulated other comprehensive loss. The Company established the valuation allowance because it is more likely than not that a portion of the deferred tax asset for certain items will not be realized based on the weight of available evidence. A valuation allowance was established for the unrealized losses on securities as the Company has not historically generated capital gains, and it is uncertain whether the Company will generate sufficient capital gains in the future to absorb the capital losses. A valuation allowance was established for the foreign deferred tax assets due to the cumulative loss in recent years in those jurisdictions. The Company has not had sufficient taxable income historically to utilize the foreign deferred tax assets, and it is uncertain whether the Company will generate sufficient taxable income in the future to utilize the deferred tax assets. Similarly, the Company has established a valuation allowance for net operating losses and tax credits in certain states where it is uncertain whether the Company will generate sufficient taxable income to utilize the net operating losses and tax credits before they expire. The Company’s change in valuation allowance was a decrease of approximately $0.7 million for the year ended December 31, 2019 and an increase of approximately $1 million for the year ended December 31, 2018 . The decrease for the year ended December 31, 2019 is due to a decrease in foreign net operating loss deferred tax assets for which a full valuation allowance of approximately $1.1 million had been established, partially offset by an increase in the valuation allowance for state tax credits related to the D.C. qualified high technology company credit of approximately $0.4 million . The increase for the year ended December 31, 2018 is due to an increase in the valuation allowance for state tax credits related to the D.C. qualified high technology company credit of approximately $1 million . The Company had U.S. income before income taxes of approximately $403 million , $294 million and $167 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company had foreign losses before income taxes of approximately $12 million , $10 million , and $2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company’s provision for income taxes resulted in effective tax rates that varied from the statutory federal income tax rate as follows (in thousands): Year Ended December 31, 2019 2018 2017 Expected federal income tax provision at statutory rate $ 82,099 $ 59,643 $ 57,770 State income taxes, net of federal benefit 14,884 10,312 4,776 Foreign income taxes, net effect 1,515 (315 ) (3,540 ) Increase (decrease) in valuation allowance (693 ) 1,214 3,624 Tax rate changes (13 ) 141 (7,340 ) Research credits (12,188 ) (15,373 ) (20,547 ) Excess tax benefit (15,282 ) (14,227 ) (7,010 ) Tax reserves 3,135 1,870 12,646 Other adjustments 2,529 2,416 1,984 Income tax expense $ 75,986 $ 45,681 $ 42,363 Certain of the Company’s U.K. subsidiaries with foreign losses are disregarded entities for U.S. income tax purposes. Accordingly, the losses from these disregarded entities are included in the Company’s consolidated federal income tax provision at the statutory rate. Federal income taxes attributable to income from these disregarded entities are reduced by foreign taxes paid by those disregarded entities. The Company has net operating loss carryforwards for international income tax purposes of approximately $45 million , which do not expire. The Company has federal net operating loss carryforwards of approximately $28 million that begin to expire in 2020, state net operating loss carryforwards with a tax value of approximately $2 million that begin to expire in 2020 and state income tax credit carryforwards with a tax value of approximately $11 million primarily relating to state research and development credits and the D.C. qualified high technology company tax credit that begin to expire in 2020. The Company realized a cash benefit relating to the use of its tax loss carryforwards of approximately $6 million , $6 million and $7 million in December 31, 2019 , 2018 and 2017 , respectively. The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands): Unrecognized tax benefit as of December 31, 2016 $ 1,843 Increase for current year tax positions 12,620 Decrease for prior year tax positions (34 ) Expiration of the statute of limitation for assessment of taxes (66 ) Unrecognized tax benefit as of December 31, 2017 14,363 Increase for current year tax positions 9,561 Decrease for prior year tax positions (70 ) Expiration of the statute of limitation for assessment of taxes (1,482 ) Unrecognized tax benefit as of December 31, 2018 22,372 Increase for current year tax positions 3,487 Increase for prior year tax positions 440 Expiration of the statute of limitation for assessment of taxes (832 ) Unrecognized tax benefit as of December 31, 2019 $ 25,467 Approximately $25 million and $22 million of the unrecognized tax benefits as of December 31, 2019 and 2018 , respectively, would favorably affect the annual effective tax rate, if recognized in future periods. The increase for current year and prior year tax positions of $4 million for the year ended December 31, 2019 is primarily attributable to research credits. The decrease for expiration of the statute of limitation of $1 million for the year ended December 31, 2019 is primarily attributable to a state apportionment methodology reserve. The Company recognized $0.2 million , $0.2 million , and $0.1 million for interest and penalties in its consolidated statement of operations for the years ended December 31, 2019 , 2018 , 2017 respectively. The Company had liabilities of $0.6 million , $0.4 million , and $0.2 million for interest and penalties in its consolidated balance sheets as of December 31, 2019 , 2018 , 2017 respectively. The Company does not anticipate the amount of the unrecognized tax benefits will change significantly over the next twelve months. The Company is subject to taxation in the U.S. federal jurisdiction and various states and foreign jurisdictions. The Company’s federal income tax returns for tax years 2013 through 2018 remain open to examination. The Company is under Internal Revenue Service examination for tax year 2013 related to the research and development credit. Most of the Company’s state income tax returns for tax years 2016 through 2018 remain open to examination. For states that have a four-year statute of limitations, the state income tax returns for tax years 2015 through 2018 remain open to examination. The Company’s U.K. income tax returns for tax years 2014 through 2018 remain open to examination. The Company believes that an adequate provision has been made for any adjustments that may result from tax examinations. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES The Company leases office facilities under various non-cancelable operating leases. The leases contain various renewal options. See Note 7 for further discussion of the Company's operating lease commitments. . Currently, and from time to time, the Company is involved in litigation incidental to the conduct of its business. In accordance with GAAP, the Company records a provision for a liability when it is both probable that a liability has been incurred and the amount can be reasonably estimated. While it is reasonably possible that an unfavorable outcome may occur as a result of one or more of the Company’s current litigation matters, at this time management has concluded that the resolutions of these matters are not expected to have a material effect on the Company's consolidated financial position, future results of operations or liquidity. Legal defense costs are expensed as incurred. During the year ended December 31, 2019 , the Company received $11 million of legal settlement proceeds, which have been included in interest and other income on the Company's consolidated statements of operations. |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING Segment Information The Company manages its business geographically in two operating segments, with the primary areas of measurement and decision-making being North America, which includes the U.S. and Canada, and International, which primarily includes Europe, Asia-Pacific and Latin America. Management relies on an internal management reporting process that provides revenue and operating segment net income before interest and other income (expense), loss on debt extinguishment, income taxes, depreciation and amortization (“EBITDA”). Management believes that operating segment EBITDA is an appropriate measure for evaluating the operational performance of the Company’s operating segments. EBITDA is used by management to internally measure operating and management performance and to evaluate the performance of the business. However, this measure should be considered in addition to, not as a substitute for or superior to, income from operations or other measures of financial performance prepared in accordance with GAAP. Summarized information by operating segment consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 EBITDA North America $ 451,699 $ 358,036 $ 236,906 International (6,987 ) (6,729 ) 553 Total EBITDA $ 444,712 $ 351,307 $ 237,459 The reconciliation of net income to EBITDA consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 Net income $ 314,963 $ 238,334 $ 122,695 Amortization of acquired intangible assets in cost of revenues 21,357 20,586 19,707 Amortization of acquired intangible assets in operating expenses 33,995 30,881 17,684 Depreciation and other amortization 25,813 26,276 26,252 Interest and other income (30,017 ) (13,281 ) (4,044 ) Interest and other expense 2,615 2,830 9,014 Loss on debt extinguishment — — 3,788 Income tax expense 75,986 45,681 42,363 EBITDA $ 444,712 $ 351,307 $ 237,459 Summarized information by operating segment consists of the following (in thousands): December 31, 2019 2018 Property and equipment, net North America $ 103,383 $ 79,493 International 4,146 3,810 Total property and equipment, net $ 107,529 $ 83,303 Goodwill North America $ 1,738,360 $ 1,573,088 International 143,660 38,447 Total goodwill $ 1,882,020 $ 1,611,535 Assets North America $ 3,615,258 $ 3,253,035 International 238,728 59,922 Total assets $ 3,853,986 $ 3,312,957 Liabilities North America $ 402,759 $ 272,776 International 45,634 18,239 Total liabilities $ 448,393 $ 291,015 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY Preferred Stock The Company has 2 million shares of preferred stock, $0.01 par value, authorized for issuance as of December 31, 2019 . The Board of Directors may issue the preferred stock from time to time as shares of one or more classes or series. Common Stock The Company has 60 million shares of common stock, $0.01 par value, authorized for issuance. Dividends may be declared and paid on the common stock, subject in all cases to the rights and preferences of the holders of preferred stock and authorization by the Board of Directors. In the event of liquidation or winding up of the Company and after the payment of all preferential amounts required to be paid to the holders of any series of preferred stock, any remaining funds shall be distributed among the holders of the issued and outstanding common stock. Equity Offering In October 2017, the Company completed a public equity offering of 3.3 million shares of common stock for $260 per share. Net proceeds from the public equity offering were approximately $834 million , after deducting approximately $29 million of underwriting discounts and other fees. The Company used net proceeds from the public equity offering to fund the costs of strategic acquisitions, to finance business growth and for working capital and other general corporate purposes. The Company expects to use any remaining net proceeds from the equity offering to fund all or a portion of the costs of any additional strategic acquisitions the Company determines to pursue, to finance the growth of its business and for working capital and other general corporate purposes. General corporate purposes may include additions to working capital, capital expenditures, repayment of debt, investments in the Company’s subsidiaries, possible acquisitions and the repurchase, redemption or retirement of securities, including the Company’s common stock. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE The following table sets forth the calculation of basic and diluted net income per share (in thousands except per share data): Year Ended December 31, 2019 2018 2017 Numerator: Net income $ 314,963 $ 238,334 $ 122,695 Denominator: Denominator for basic net income per share — weighted-average outstanding shares 36,310 36,058 33,200 Effect of dilutive securities: Stock options, restricted stock awards and restricted stock units 320 390 359 Denominator for diluted net income per share — weighted-average outstanding shares 36,630 36,448 33,559 Net income per share — basic $ 8.67 $ 6.61 $ 3.70 Net income per share — diluted $ 8.60 $ 6.54 $ 3.66 The Company’s potentially dilutive securities include outstanding stock options, unvested stock-based awards which include restricted stock awards that vest over a specific service period, restricted stock awards that vest based on achievement of a performance condition, restricted stock awards with a performance and a market condition, restricted stock units and Matching RSUs awarded under the Company's Management Stock Purchase Plan. Shares underlying unvested restricted stock awards that vest based on performance and market conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. Diluted net income per share considers the impact of potentially dilutive securities except when the inclusion of the potentially dilutive securities would have an anti-dilutive effect. The following table summarizes the shares underlying the unvested performance-based restricted stock and anti-dilutive securities excluded from the basic and diluted earnings per share calculations (in thousands): Year Ended December 31, 2019 2018 2017 Performance-based restricted stock awards 60 53 58 Anti-dilutive securities 42 100 126 |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS In April 2007, the Company’s Board of Directors adopted the CoStar Group, Inc. 2007 Stock Incentive Plan (as amended, the “2007 Plan”), subject to stockholder approval, which was obtained on June 7, 2007. In April 2016, the Company’s Board of Directors adopted the CoStar Group, Inc. 2016 Stock Incentive Plan (as amended, the “2016 Plan”), subject to stockholder approval, which was obtained on June 9, 2016. All shares of common stock that were authorized for issuance under the 2007 Plan that, as of June 9, 2016, remained available for issuance under the 2007 Plan (excluding shares subject to outstanding awards) were rolled into the 2016 Plan and, as of that date, no shares of common stock were available for new awards under the 2007 Plan. The 2007 Plan continues to govern unexercised and unexpired awards issued under the 2007 Plan prior to June 9, 2016. The 2007 Plan provided for the grant of stock options, restricted stock, restricted stock units and stock appreciation rights to officers, directors and employees of the Company and its subsidiaries. Stock options granted under the 2007 Plan could be incentive or non-qualified, and except in limited circumstances related to a merger or other acquisition, the exercise price for a stock option may not be less than the fair market value of the Company’s common stock on the date of grant. The vesting period of the options, restricted stock and restricted stock unit grants under the 2007 Plan was determined by the Board of Directors or a committee thereof and was generally three to four years . In some cases, vesting of restricted stock awards under the 2007 Plan is subject to performance conditions. Upon the occurrence of a Change of Control, as defined in the 2007 Plan, all outstanding unexercisable options and restricted stock grants under the 2007 Plan immediately become exercisable. The 2016 Plan provides for the grant of stock options, restricted stock, restricted stock units, and stock appreciation rights to officers, directors and employees of the Company and its subsidiaries. Stock options granted under the 2016 Plan may be non-qualified or may qualify as incentive stock options. Except in limited circumstances related to a merger or other acquisition, the exercise price for an option may not be less than the fair market value of the Company’s common stock on the date of grant. The vesting period for each grant of options, restricted stock, restricted stock units and stock appreciation rights under the 2016 Plan is determined by the Board of Directors or a committee thereof and is generally three to four years , subject to minimum vesting periods for restricted stock and restricted stock units of at least one year . In some cases, vesting of awards under the 2016 Plan may be based on performance conditions. The Company has issued and/or reserved the following shares of common stock for issuance under the 2016 Plan: (a) 1,450,000 shares of common stock, plus (b) 815,464 shares of common stock that were authorized for issuance under the 2007 Plan that, as of June 9, 2016, remained available for issuance under the 2007 Plan (not including any Shares that were subject as of such date to outstanding awards under the 2007 Plan), and (c) any shares of common stock subject to outstanding awards under the 2007 Plan as of June 9, 2016, that on or after such date cease for any reason to be subject to such awards (other than by reason of exercise or settlement of the awards to the extent they are exercised for or settled in vested and nonforfeitable shares). Unless terminated sooner, the 2016 Plan will terminate in June 2026, but will continue to govern unexercised and unexpired awards issued under the 2016 Plan prior to that date. Approximately 2 million shares were available for future grant under the 2016 Plan as of December 31, 2019 . At December 31, 2019 , there was approximately $82 million of unrecognized compensation cost related to stock incentive plans, net of estimated forfeitures, which the Company expects to recognize over a weighted-average-period of 2.5 years . Stock Options Option activity was as follows: Number of Shares Range of Weighted- Average Exercise Price Weighted- Average Remaining Contract Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 440,158 $36.48 - $201.04 $ 132.08 Granted 95,500 $204.91 $ 204.91 Exercised (81,815 ) $36.48 - $201.04 $ 83.07 Outstanding at December 31, 2017 453,843 $36.73 - $204.91 $ 156.24 Granted 82,500 $342.13 $ 342.13 Exercised (177,299 ) $36.73 - $204.91 $ 125.16 Canceled or expired (14,768 ) $182.75 - $342.13 $ 261.20 Outstanding at December 31, 2018 344,276 $ 212.28 Granted 48,300 $398.15 $ 398.15 Exercised (116,918 ) $54.51 - $342.13 $ 159.52 Outstanding at December 31, 2019 275,658 $54.51 - $398.15 $ 267.23 6.98 $ 91,262 Exercisable at December 31, 2017 278,239 $36.73 - $201.04 $ 130.91 Exercisable at December 31, 2018 185,405 $54.51 - $204.91 $ 165.31 Exercisable at December 31, 2019 147,620 $102.16 - $342.13 $ 210.96 5.84 $ 57,180 The aggregate intrinsic value is calculated as the difference between (i) the closing price of the common stock at the end of the period and (ii) the exercise prices of the underlying awards, multiplied by the shares underlying options as of the end of the period that had an exercise price less than the closing price on that date. Options to purchase 116,918 , 177,299 , and 81,815 , shares were exercised during the years ended 2019 , 2018 and 2017 , respectively. The aggregate intrinsic value of options exercised, determined as of the date of option exercise, was approximately $40 million , $45 million and $13 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The weighted-average grant date fair value of each option granted during the years ended December 31, 2019 , 2018 and 2017 using the Black-Scholes option-pricing model was $115.17 , $101.02 and $59.06 , respectively. The Company estimated the fair value of each option granted on the date of grant using the Black-Scholes option-pricing model, using the assumptions in the following table: Year Ended December 31, 2019 2018 2017 Dividend yield 0 % 0 % 0 % Expected volatility 27 % 28 % 28 % Risk-free interest rate 2 % 3 % 2 % Expected life (in years) 5 5 5 The expected dividend yield is determined based on the Company's past cash dividend history and anticipated future cash dividend payments. The Company has never declared or paid any dividends on its common stock and does not anticipate paying any dividends on its common stock during the foreseeable future, but intends to retain any earnings for future growth of its business. Expected volatility is calculated based on historical volatility of the daily closing price of the Company's common stock over a period consistent with the expected life of the options granted. The risk-free interest rate is based on the U.S. Treasury rate with terms similar to the expected life of the options granted. The expected life for the options is determined based on multiple factors, including historical employee behavior patterns of exercising options and post-employment termination behavior as well as expected future employee option exercise patterns. The following table summarizes information regarding options outstanding at December 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Price Number of Shares Weighted-Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price $102.16 - $142.45 3,522 3.19 $ 102.16 3,522 $ 102.16 $142.46 - $188.22 36,600 6.19 $ 182.75 36,600 $ 182.75 $188.23 - $197.37 32,200 5.17 $ 193.69 32,200 $ 193.69 $197.38 - $202.98 33,600 4.16 $ 201.04 33,600 $ 201.04 $202.99 - $273.52 52,135 7.16 $ 204.91 23,066 $ 204.91 $273.53 - $370.14 69,301 8.16 $ 342.13 18,632 $ 342.13 $370.15 - $398.15 48,300 9.10 $ 398.15 — $ — 275,658 $ 267.23 147,620 $ 210.96 Restricted Stock Awards The Compensation Committee of the Board of Directors of the Company historically approved grants of restricted common stock to employees and directors of the Company that vest over a specific service period and to executive officers that vest based on the achievement of certain performance conditions, primarily, the achievement of a three-year cumulative revenue goal established at the grant date, and are subject to forfeiture in the event the foregoing performance condition is not met by the end of each respective three-year period. These awards support the Company’s goals of aligning executive incentives with long-term stockholder value and ensuring that executive officers have a continuing stake in the long-term success of the Company. The vesting of restricted common stock is subject to continuing employment requirements. Certain performance-based restricted common stock awards are also subject to a market condition such that the actual number of shares that vest at the end of the respective three-year period is determined based on the Company’s achievement of performance goals and an established Company specific TSR factor relative to the Russell 1000 Index over the same three-year performance period. At the end of the three-year performance period, if the performance condition is achieved at or above the pre-established threshold, the number of shares earned is further adjusted by a TSR payout percentage, which ranges between 80% and 120% , based on the Company’s TSR performance relative to that of the Russell 1000 Index over the respective three-year period. The Company granted a total of 36,364 , 26,160 , and 32,160 shares of performance-based restricted common stock during the years ended December 31, 2019 , 2018 and 2017 , respectively. The Company estimates the fair value of its equity awards with both a performance and market condition on the date of grant using a Monte-Carlo simulation valuation model. This pricing model uses multiple simulations to evaluate the probability of achieving the market condition to calculate the fair value of the awards. Expense is only recorded for awards that are expected to vest, net of estimated forfeitures. The assumptions used to estimate the fair value of awards with both a performance and a market condition were as follows: Year Ended December 31, 2019 2018 2017 Dividend yield 0 % 0 % 0 % Expected volatility 27 % 28 % 28 % Risk-free interest rate 2 % 2 % 2 % Expected life (in years) 3 3 3 Weighted-average grant date fair value $ 398.15 $ 342.13 $ 218.59 The expected dividend yield is determined based on the Company's past cash dividend history and anticipated future cash dividend payments. The Company has never declared or paid any dividends on its common stock and does not anticipate paying any dividends on its common stock during the foreseeable future, but intends to retain any earnings for future growth of its business. Expected volatility is calculated based on historical volatility of the daily closing price of the common stock of the companies within the Russell 1000 Index over a period consistent with the expected life of the performance-based restricted common stock awards with a market condition. The risk-free interest rate is based on the U.S. Treasury rate with terms similar to the expected life of the performance-based restricted common stock awards with a market condition. The expected life is consistent with the performance measurement period of the performance-based restricted common stock awards with a market condition. As of December 31, 2019 , the Company determined that it was probable that the performance goals associated with restricted stock awards with performance and market conditions granted during 2019, 2018 and 2017 would be met by their forfeiture dates. The Company recorded a total of approximately $8 million , $5 million and $5 million of stock-based compensation expense related to restricted stock awards with a market condition for the years ended December 31, 2019 , 2018 and 2017 , respectively. As of December 31, 2019 , the Company expects to record an aggregate stock-based compensation expense of approximately $11 million for restricted stock awards with a market condition over the periods 2020, 2021 and 2022. The following table presents unvested restricted stock awards activity for the year ended December 31, 2019 : Restricted Stock Awards — without Market Condition Restricted Stock Awards — with Market Condition Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested restricted stock awards at December 31, 2018 304,161 $ 272.95 76,320 $ 193.44 Granted 115,722 $ 456.51 36,000 $ 429.63 Vested (134,361 ) $ 241.65 (23,040 ) $ 184.97 Canceled (18,303 ) $ 315.39 — $ — Unvested restricted stock awards at December 31, 2019 267,219 $ 365.27 89,280 $ 290.87 Restricted Stock Units The following table presents unvested restricted stock units activity for the year ended December 31, 2019 : Number of Units Weighted-Average Grant Date Fair Value per Share Unvested restricted stock units at December 31, 2018 852 $ 228.86 Granted 413 $ 459.41 Vested (411 ) $ 221.08 Canceled — $ — Unvested restricted stock units at December 31, 2019 854 $ 344.10 Management Stock Purchase Plan The Board of Directors adopted the Company’s Management Stock Purchase Plan in December 2017 with the intent of providing selected key employees of the Company and its subsidiaries, including the Company's executive officers, the opportunity to defer a portion of their cash incentive compensation and to align management and stockholder interests through awards of Deferred Stock Units (“DSUs”) under the MSPP and awards of Matching RSUs issued under the Company 2016 Plan. Under this plan, participants are permitted to elect to defer up to 100% of their annual incentive bonus or commissions earned during the year by submitting an irrevocable election in accordance with Section 409A of the Internal Revenue Code, as amended. On the date the incentive bonus or commission would otherwise be paid in cash (typically during the following calendar year), the Company awards the participant DSUs representing the number of shares of common stock with an aggregate fair market value on that date equal to the amount of compensation elected to be deferred under the MSPP. On the same date the DSUs are awarded, the participant receives a grant of Matching RSUs covering the number of shares of common stock equal up to 100% of the DSUs granted. The expense related to the DSUs is recognized on a straight-line basis during the period that the related incentive bonus or commission is earned. The stock-based compensation expense for 7,441 DSUs awarded during 2019 was fully recognized as of December 31, 2018 . The expense related to the Matching RSUs is recognized over the four years vesting period following the grant date. The following tables presents the RSU activity for the year ended December 31, 2019 : Number of Matching RSU Shares Weighted-Average Grant Date Fair Value per Share Unvested MSPP restricted stock units at December 31, 2018 — $ — Granted 7,441 469.13 Vested — — Canceled (275 ) 469.13 Unvested MSPP restricted stock units at December 31, 2019 7,166 $ 469.13 Employee 401(k) Plan The Company maintains a 401(k) Plan (the “401(k)”) as a defined contribution retirement plan for all eligible employees. The 401(k) provides for tax-deferred contributions of employees’ salaries, limited to a maximum annual amount as established by the IRS. In addition to the traditional 401(k), effective January 1, 2015, eligible employees have the option of making an after-tax contribution to a Roth 401(k) plan or a combination of both. In 2019 , 2018 and 2017 , the Company matched 100% of employee contributions up to a maximum of 4% of total compensation. Amounts contributed to the 401(k) by the Company to match employee contributions for the years ended December 31, 2019 , 2018 and 2017 were approximately $12 million , $12 million and $10 million , respectively. The Company had no administrative expenses in connection with the 401(k) plan for the years ended December 31, 2019 , 2018 and 2017 , respectively. Employee Pension Plan The Company maintains a Group Personal Pension Plan (the “Plan”) for all eligible employees in the Company’s U.K. offices. The Plan is a defined contribution plan. Employees are eligible to contribute a portion of their salaries, subject to a maximum annual amount as established by Her Majesty's Revenue and Customs. In 2019 , 2018 and 2017 , the Company's matching contribution was based on the percentage contributed by the employee, up to a maximum of 6% of total compensation. Amounts contributed to the Plan by the Company to match employee contributions for the years ended December 31, 2019 , 2018 and 2017 , were approximately $0.6 million , $0.5 million and $0.4 million , respectively. Registered Retirement Savings Plan As of January 1, 2015, the Company introduced a registered retirement savings plan (“RRSP”) for all eligible employees in the Company’s Canadian offices. In 2017, 2016 and 2015, the Company matched 100% of employee contributions up to a maximum of 4% of total compensation. Amounts contributed to the RRSP by the Company to match employee contributions for the years ended December 31, 2019 , 2018 and 2017 were approximately $70 thousand , $58 thousand and $43 thousand , respectively. Employee Stock Purchase Plan As of August 1, 2006, the Company introduced an Employee Stock Purchase Plan (“ESPP”), pursuant to which eligible employees participating in the plan authorize the Company to withhold specified amounts from the employees’ compensation and use the withheld amounts to purchase shares of the Company's common stock at 90% of the market price. Participating employees are able to purchase common stock under this plan during each offering period. An offering period begins the second Saturday before each of the Company’s regular pay dates and ends on each of the Company’s regular pay dates. On June 3, 2015, the Company’s stockholders approved an amendment to the ESPP to increase the number of shares available for purchase under the ESPP by 100,000 shares. On September 14, 2015, the Company registered the issuance of these additional shares under the ESPP pursuant to the registration statement filed September 14, 2015. There were 51,584 and 65,174 shares available for purchase under the ESPP as of December 31, 2019 and 2018 , respectively, and approximately 13,590 and 14,848 shares of the Company’s common stock were purchased under the ESPP during 2019 and 2018 , respectively. |
QUARTERLY RESULTS OF OPERATIONS
QUARTERLY RESULTS OF OPERATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
QUARTERLY RESULTS OF OPERATIONS | QUARTERLY RESULTS OF OPERATIONS The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 . Information about prior period acquisitions and the adoption of recent accounting pronouncements that may affect the comparability of the quarterly financial information presented below are included in Note 2 and Note 4 . 2019 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Revenues $ 328,425 $ 343,760 $ 352,808 $ 374,726 Cost of revenues 71,153 71,918 71,172 74,996 Gross profit 257,272 271,842 281,636 299,730 Operating expenses 163,780 197,042 187,367 198,744 Income from operations 93,492 74,800 94,269 100,986 Interest and other income 4,945 5,913 5,358 13,801 Interest and other expense (732 ) (697 ) (704 ) (482 ) Income before income taxes 97,705 80,016 98,923 114,305 Income tax expense 12,536 16,768 20,304 26,378 Net income $ 85,169 $ 63,248 $ 78,619 $ 87,927 Net income per share — basic $ 2.35 $ 1.74 $ 2.16 $ 2.42 Net income per share — diluted $ 2.33 $ 1.73 $ 2.15 $ 2.39 2018 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Revenues $ 273,718 $ 297,018 $ 305,525 $ 315,571 Cost of revenues 62,477 67,136 72,072 68,248 Gross profit 211,241 229,882 233,453 247,323 Operating expenses 157,796 186,108 162,765 141,666 Income from operations 53,445 43,774 70,688 105,657 Interest and other income 2,987 2,652 3,035 4,607 Interest and other expense (690 ) (728 ) (717 ) (695 ) Income before income taxes 55,742 45,698 73,006 109,569 Income tax expense 3,511 1,863 14,247 26,060 Net income $ 52,231 $ 43,835 $ 58,759 $ 83,509 Net income per share — basic $ 1.46 $ 1.22 $ 1.63 $ 2.31 Net income per share — diluted $ 1.44 $ 1.20 $ 1.61 $ 2.29 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On February 11, 2020, CSGP Holdings, LLC (“CSGP”), an indirect wholly owned subsidiary of the Company, RentPath Holdings, Inc. (“RentPath”), certain direct or indirect wholly-owned subsidiaries of RentPath (together with RentPath, the “Sellers”), and, solely for the purposes set forth therein, the Company, entered into an asset purchase agreement (the “Asset Purchase Agreement”) dated as of February 12, 2020. Pursuant to the Asset Purchase Agreement, and subject to the terms and conditions set forth therein, CSGP has agreed to acquire for $588 million in cash all of the equity interests of RentPath, as reorganized following an internal restructuring of the Sellers (“Reorganized RentPath") pursuant to and under the joint chapter 11 plan of reorganization of the Sellers and certain of their affiliates to be filed in the U.S. Bankruptcy Court for the District of Delaware. Under the terms of the Asset Purchase Agreement, the Company has agreed to guarantee the full and timely performance of CSGP’s obligations under the Asset Purchase Agreement. The completion of the transaction is subject to customary conditions, including the expiration or termination of any applicable waiting period under applicable antitrust laws and bankruptcy court approvals. The purchase agreement requires the Company to pay a $59 million fee in the event the purchase agreement is terminated under specified circumstances in which certain antitrust approvals are not obtained, or a governmental order related to antitrust or competition matters prohibits the consummation of the transaction. RentPath is a provider of digital marketing solutions for rental properties through a network of Internet listing websites, including Rent.com, ApartmentsGuide.com, Rentals.com and LiveLovely.com. |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2019 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts The table below details the activity of the allowance for doubtful accounts and sales credits (1) for the years ended December 31, 2019 , 2018 , and 2017 (in thousands): Balance at Beginning of Year Charged to Expense Reductions Balance at End of Year Year ended December 31, 2017 $ 6,344 $ 5,690 $ 5,565 $ 6,469 Year ended December 31, 2018 $ 6,469 $ 6,542 $ 7,302 $ 5,709 Year ended December 31, 2019 $ 5,709 $ 10,978 $ 11,590 $ 5,097 __________________________ (1) Additions to the allowance for doubtful accounts are charged to bad debt expense. Additions to the allowance for sales credits are charged against revenues. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Accounting policies are consistent for each operating segment. |
Use of Estimates | Use of Estimates |
Revenue Recognition | Revenue Recognition The Company derives revenues primarily by (i) providing access to its proprietary database of commercial real estate information and (ii) providing online marketplaces for professional property management companies, property owners, brokers and landlords, in each case typically through a fixed monthly fee for its subscription-based services. The Company's subscription-based services consist primarily of information, analytics and online marketplace services offered over the Internet to commercial real estate industry and related professionals. Subscription contract rates are based on the number of sites, number of users, organization size, the client’s business focus, geography, the number and types of services to which a client subscribes, the number of properties a client advertises and the prominence and placement of a client's advertised properties in the search results. The Company’s subscription-based license agreements typically renew automatically, and a majority have a term of at least one year . The Company also provides market research, portfolio and debt analysis, management and reporting capabilities, and real estate and lease management solutions, including lease administration and abstraction services, to commercial customers, real estate investors, lenders and hospitality customers via our other service offerings. The Company analyzes contracts to determine the appropriate revenue recognition using the following steps: (i) identification of contracts with customers, (ii) identification of distinct performance obligations in the contract, (iii) determination of contract transaction price, (iv) allocation of contract transaction price to the performance obligations, and (v) determination of revenue recognition based on timing of satisfaction of the performance obligation(s). The Company recognizes revenues upon the satisfaction of its performance obligation(s) (upon transfer of control of promised services to its customers) in an amount that reflects the consideration to which it expects to be entitled to in exchange for those services. Revenues from subscription-based services are recognized on a straight-line basis over the term of the agreement. In limited circumstances, the Company's contracts with customers include promises to transfer multiple services, such as contracts for its subscription-based services and professional services. For these contracts, the Company accounts for individual performance obligations separately if they are distinct, which involves the determination of the standalone selling price for each distinct performance obligation. Deferred revenue results from amounts billed in advance to customers or cash received from customers in advance of the Company's fulfillment of its performance obligation(s) and is recognized over the term of the license agreement. Contract assets represent a conditional right to consideration for satisfied performance obligations that become a receivable when the conditions are satisfied. Contract assets are generated when contractual billing schedules differ from revenue recognition timing. Certain sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions incurred for obtaining new contracts are deferred and then amortized as selling and marketing expenses on a straight-line basis over a period of benefit that the Company has determined to be three years . The three-year amortization period was determined based on several factors, including the nature of the technology and proprietary data underlying the services being purchased, customer contract renewal rates and industry competition. Certain commission costs are not capitalized as they do not represent incremental costs of obtaining a contract. See Note 3 for further discussion of the Company's revenue recognition. On January 1, 2018, the Company adopted Accounting Standards Update (“ASU") 2014-09, Revenue from Contracts with Customers , later codified as Accounting Standards Codification 606 (" ASC 606 ") using the modified retrospective method. Operating results for periods subsequent to December 31, 2017 are presented under ASC 606 , while prior period amounts are not adjusted and continue to be reported in accordance with the Company’s historical accounting policies prior to adoption. For details about the Company’s revenue recognition policy prior to the adoption of ASC 606 , refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission on February 23, 2018. Cost of Revenues Cost of revenues principally consists of salaries, benefits, bonuses, and stock-based compensation expenses for the Company’s researchers who collect and analyze the commercial real estate data that is the basis for the Company’s information, analytics and online marketplaces. Additionally, cost of revenues includes the cost of data from third-party data sources, credit card and other transaction fees relating to processing customer transactions, which are expensed as incurred, operating lease costs and the amortization of acquired trade names, technology and other intangible assets. |
Foreign Currency Translation | Foreign Currency Translation The Company’s reporting currency is the U.S. dollar. The functional currency for the majority of its operations is the local currency, with the exception of certain international locations of STR for which the functional currency is the British Pound. Assets and liabilities denominated in a foreign currency are translated into U.S. dollars using the exchange rates in effect as of the balance sheet date. Gains and losses resulting from translation are included in accumulated other comprehensive loss. Currency g ains and losses on the translation of intercompany loans made to foreign subsidiaries that are of a long-term investment nature are also included |
Advertising Costs | Advertising Costs |
Income Taxes | Income Taxes Deferred income taxes result from temporary differences between the tax basis of assets and liabilities and the basis reported in the Company’s consolidated financial statements. Deferred tax liabilities and assets are determined based on the difference between the financial statement and the tax basis of assets and liabilities using enacted rates in effect during the year in which the Company expects differences to reverse. Valuation allowances are provided against assets, including net operating losses, if the Company determines it is more likely than not that some portion or all of an asset may not be realized. Interest and penalties related to income tax matters are recognized in income tax expense. The Company has elected to record the global intangible low taxed income inclusion ("GILTI") under the current-period cost method. |
Net Income Per Share | Net Income Per Share Net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period on a basic and diluted basis. The weighted-average number of common shares outstanding during the period used for purposes of calculating basic earnings per share excludes stock options and stock-based awards which include restricted stock awards that vest over a specific service period, restricted stock awards that vest based on achievement of a performance condition, restricted stock awards with a performance and a market condition, restricted stock units and Matching restricted stock units ("Matching RSUs) awarded under the Company's Management Stock Purchase Plan (the “MSPP”). The Company’s potentially dilutive securities include outstanding stock options and unvested restricted stock-based awards. Shares underlying unvested restricted stock-based awards that vest based on performance and market conditions that have not been achieved as of the end of the period are not included in the computation of basic or diluted earnings per share. Diluted net income per share considers the impact of potentially dilutive securities except when the inclusion of the potentially dilutive securities would have an anti-dilutive effect. See Note 16 for additional information on the Company's calculation of net income per share. |
Stock-Based Compensation | Stock-Based Compensation Equity instruments issued in exchange for services performed by officers, employees, and directors of the Company are accounted for using a fair-value based method and the fair value of such equity instruments is recognized as expense in the consolidated statements of operations. For stock-based awards that vest over a specific service period, compensation expense is measured based on the fair value of the awards at the grant date, and is recognized on a straight-line basis over the vesting period of the awards, net of an estimated forfeiture rate. For equity instruments that vest based on achievement of a performance condition, stock-based compensation expense is recognized based on the expected achievement of the related performance conditions at the end of each reporting period over the vesting period of the awards. If the Company's initial estimates of the achievement of the performance conditions change, the related stock-based compensation expense and timing may fluctuate from period to period based on those estimates. If the performance conditions are not met, no stock-based compensation expense will be recognized, and any previously recognized stock-based compensation expense will be reversed. For awards with both a performance and a market condition, the Company estimates the fair value of each equity instrument granted on the date of grant using a Monte-Carlo simulation model. This pricing model uses multiple simulations to evaluate the probability of achieving the market condition to calculate the fair value of the awards. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments purchased with an original maturity of three months or less to be cash equivalents. Cash equivalents as of December 31, 2019 and 2018 consisted of money market funds. |
Investments | Investments The Company determines the appropriate classification of debt and equity investments at the time of purchase and re-evaluates such designation as of each balance sheet date. The Company's investments consist of long-term variable rate debt instruments with an auction reset feature, referred to as auction rate securities, and are classified as available-for-sale. The Company's auction rate security investments are carried at fair value and any changes in unrealized holding gains and losses, net of the related tax effect, are excluded from earnings and are reported as a separate component of accumulated other comprehensive loss in stockholders’ equity until realized. A decline in market value of any investment below cost that is deemed to be other-than-temporary results in a reduction in carrying amount to fair value. The impairment is charged to earnings and a new cost basis for the security is established. Dividend and interest income are recognized when earned. The Company's investments consist of long-term variable rate debt instruments with an auction reset feature, referred to as auction rate securities ("ARS"), and are classified as available-for-sale and are carried at fair value. |
Cost of Revenues | Concentration of Credit Risk and Financial Instruments The Company’s customer base creates a lack of dependence on any individual customer that mitigates the risk of nonpayment of the Company’s accounts receivable. No single customer accounted for more than 5% of the Company’s revenues for each of the years ended December 31, 2019 , 2018 , and 2017 . The carrying amount of the accounts receivable approximates the net realizable value. |
Accounts Receivable, Net of Allowance for Doubtful Accounts | Accounts Receivable, Net of Allowance for Doubtful Accounts Accounts receivable are recorded at the invoiced amount net of credits due. Accounts receivable payment terms vary and amounts due from customers are stated in the financial statements net of an allowance for doubtful accounts. When evaluating the adequacy of the allowance for doubtful accounts, the Company analyzes historical collection experience, changes in customer payment profiles and the aging of receivable balances, as well as current economic conditions, all of which may affect a customer’s ability to pay. |
Leases | Leases On January 1, 2019, the Company adopted Accounting Standards Update (“ASU”) 2016-02, Leases , later codified as Accounting Standards Codification ("ASC") 842 ( "ASC 842" ), using the modified retrospective method. For periods presented prior to the adoption date, the Company continues to follow its previous policy under ASC 840, Leases . For details about the Company’s lease policy prior to the adoption of ASC 842 , refer to the Company’s Annual Report on Form 10-K for the year ended December 31, 2017 , filed with the Securities and Exchange Commission on February 23, 2018 . The determination of whether an arrangement contains a lease and the classification of a lease, if applicable, is made at lease commencement, at which time the Company also measures and recognizes a right-of-use ("ROU") asset, representing the Company’s right to use the underlying asset, and a lease liability, representing the Company’s obligation to make lease payments under the terms of the arrangement. For the purposes of recognizing ROU assets and lease liabilities associated with the Company’s leases, the Company has elected the practical expedient to not recognize a ROU asset or lease liability for short-term leases, which are leases with a term of twelve months or less. The lease term is defined as the noncancelable portion of the lease term plus any periods covered by an option to extend the lease if it is reasonably certain that that the option will be exercised. In determining the amount of lease payments used in measuring ROU assets and lease liabilities, the Company has elected the practical expedient not to separate non-lease components from lease components for all classes of underlying assets. Consideration considered part of the lease payments used to measure ROU assets and lease liabilities generally includes fixed payments and variable payments based on either an index or a rate. The ROU asset also includes any lease prepayments, offset by lease incentives. ROU assets and liabilities are recognized at the lease commencement date based on the present value of lease payments over the lease term. The rates implicit within the Company's leases are generally not determinable, therefore, the Company's incremental borrowing rate is used to determine the present value of lease payments. The determination of the Company’s incremental borrowing rate requires judgment. Because the Company currently has no outstanding debt, the incremental borrowing rate for each lease is primarily based on publicly available information for companies within the same industry and with similar credit profiles as the Company. The rate is then adjusted for the impact of collateralization, the lease term and other specific terms included in the Company’s lease arrangements. The incremental borrowing rate is determined at lease commencement, or as of January 1, 2019 for operating leases in existence upon adoption of ASC 842 . The incremental borrowing rate is subsequently reassessed upon a modification to the lease arrangement. ROU assets are subsequently assessed for impairment in accordance with the Company’s accounting policy for long-lived assets. Lease costs related to the Company's operating leases are generally recognized as a single ratable lease cost over the lease term. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost, net of accumulated depreciation and amortization. All repairs and maintenance costs are expensed as incurred. Costs related to acquisition of additional aircraft components or the replacement of existing aircraft components are capitalized and depreciated over the estimated useful life of the aircraft or the added or replaced component, whichever is less. Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives of the assets: Leasehold improvements Shorter of lease term or useful life Computer hardware and software Three to five years Furniture and office equipment Five to ten years Vehicles Five years Aircraft Ten to twenty years Qualifying internal-use software costs incurred during the application development stage, which consist primarily of internal product development costs, outside services and purchased software license costs are capitalized and amortized over the estimated useful life of the asset. All other costs are expensed as incurred. |
Goodwill and Intangible Assets | Long-Lived Assets, Intangible Assets and Goodwill Long-lived assets, such as property and equipment, and purchased intangibles subject to amortization, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset or asset group. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized in the amount by which the carrying amount of the asset exceeds the fair value of the asset. Acquired technology and data, customer base assets, trade names and other intangible assets are related to the Company’s acquisitions (see Notes 4 , 9 and 10 ). Acquired technology and data is amortized on a straight-line basis over periods ranging from one year to eight years . Acquired intangible assets characterized as customer base assets consist of acquired customer contracts and the related customer relationships and are amortized over periods ranging from five years to thirteen years . Acquired customer bases are amortized on an accelerated or straight-line basis depending on the expected economic benefit of the intangible asset. Acquired trade names and other intangible assets are amortized on a straight-line basis over periods ranging from one year to fifteen years . Goodwill represents the future economic benefits arising from a business combination and is calculated as the excess of the purchase consideration paid in a business combination over the fair value of assets acquired. Goodwill is not amortized, but instead is assigned to each of the Company's reporting units and tested for impairment at least annually on October 1, or more frequently if an event or other circumstance indicates that the fair value of a reporting unit may be below its carrying amount. If it is determined that it is more likely than not that the fair value of a reporting unit is less than its carrying value, or the Company elects to bypass such assessment, the Company then determines the fair value of each reporting unit. The estimate of the fair value of each reporting unit is based on a projected discounted cash flow model that includes significant assumptions and estimates including the discount rate, growth rate and future financial performance. Assumptions about the discount rate are based on a weighted average cost of capital for comparable companies. Assumptions about the growth rate and future financial performance of a reporting unit are based on the Company's forecasts, business plans, economic projections and anticipated future cash flows. The fair value of each reporting unit is compared to the carrying amount of the reporting unit. If the carrying value of the reporting unit exceeds the fair value, then an impairment loss is recognized for the difference. |
Debt Issuance Costs | Debt Issuance Costs |
Business Combinations | Business Combinations The Company allocates the purchase consideration to the tangible assets acquired, liabilities assumed and intangible assets acquired based on their estimated fair values. The purchase price is determined based on the fair value of the assets transferred, liabilities incurred and equity interests issued, after considering any transactions that are separate from the business combination. The excess of the fair value of purchase consideration over the fair values of these identifiable assets and liabilities is recorded as goodwill. Such valuations require management to make significant estimates and assumptions, especially with respect to intangible assets and contingent liabilities. Significant estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from acquired customer bases, acquired technology and acquired trade names, useful lives, royalty rates and discount rates. Any adjustments to provisional amounts that are identified during the measurement period are recorded in the reporting period in which the adjustment amounts are determined. Upon the conclusion of the measurement period, any subsequent adjustments are recorded to earnings. For a given acquisition, the Company may identify certain pre-acquisition contingencies as of the acquisition date and may extend its review and evaluation of these pre-acquisition contingencies throughout the measurement period in order to obtain sufficient information to assess whether the Company includes these contingencies as a part of the fair value estimates of assets acquired and liabilities assumed and, if so, to determine their estimated amounts. If the Company cannot reasonably determine the fair value of a pre-acquisition contingency (non-income tax related) by the end of the measurement period, which is generally the case given the nature of such matters, the Company will recognize an asset or a liability for such pre-acquisition contingency if: (i) it is probable that an asset existed or a liability had been assumed at the acquisition date and (ii) the amount of the asset or liability can be reasonably estimated. Subsequent to the measurement period, changes in the Company's estimates of such contingencies will affect earnings and could have a material effect on its results of operations and financial position. In addition, uncertain tax positions and tax related valuation allowances assumed in connection with a business combination are initially estimated as of the acquisition date. The Company reevaluates these items based upon facts and circumstances that existed as of the acquisition date, with any adjustments to its preliminary estimates being recorded to goodwill provided that the Company is within the measurement period. Subsequent to the measurement period, changes to these uncertain tax positions and tax related valuation allowances will affect the Company's provision for income taxes in its consolidated statements of operations and comprehensive income and could have a material impact on its results of operations and financial position. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements On January 1, 2019, the Company adopted ASU 2016-02, Leases , using the modified retrospective method which allows for the application of the transition provisions at the beginning of the period of adoption, rather than at the beginning of the earliest comparative period presented in these consolidated financial statements. As permitted by the guidance, the Company elected to retain the original lease classification and historical accounting for initial direct costs for leases existing prior to the adoption date and did not reassess contracts entered into prior to the adoption date for the existence of a lease. The Company also did not recognize ROU assets and lease liabilities for short-term leases, which are leases in existence as of the adoption date with an original term of twelve months or less. As a result of the adoption of the standard, the Company recognized ROU assets of $116 million , including prepaid rent and deferred rent that was reclassified and recognized as of the adoption date as a component of the ROU assets, as well as lease liabilities of $150 million on its consolidated balance sheet. The assets and liabilities recognized upon application of the transition provisions were primarily associated with existing office leases. The Company also recognized a cumulative-effect adjustment to beginning retained earnings of $12 million , net of tax, as of January 1, 2019, to recognize the remaining deferred gain on the sale-leaseback of the Company's corporate headquarters building, pursuant to the guidance in ASC 842 . Recent Accounting Pronouncements Not Yet Adopted In December 2019, the FASB issued ASU 2019-12, Simplifying the Accounting for Income Taxes, which is intended to simplify various aspects related to accounting for income taxes. ASU 2019-12 removes certain exceptions to the general principles in ASC 740, Income Tax and also clarifies and amends existing guidance to improve consistent application. ASU 2019-12 will be effective for public business entities for annual reporting periods beginning after December 15, 2020, and interim periods within those periods. Early adoption is permitted. The Company evaluated the impact of this guidance on its financial statements and related disclosures and has elected to early adopt the guidance as of January 1, 2020. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. The exceptions removed as part of the standard were determined to be not applicable to the Company. The primary impact from adopting the standard will result in a reclassification of franchise taxes, which previously had been classified as a component of income from operations but will now be classified as a component of income tax expense beginning January 1, 2020. In August 2018, the FASB issued ASU 2018-13, Fair Value Measurements (subsequent to adoption of ASU 2018-13, Fair Value Measurement) . The ASU was issued to eliminate certain disclosure requirements for fair value measurements, and add and modify other disclosure requirements, as part of its disclosure framework project, including additional requirements for public companies to disclose certain information about the significant unobservable inputs for Level 3 fair value measurements. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. In August 2018, the FASB issued ASU 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . ASU 2018-15 requires a customer in a cloud computing arrangement that is a service contract to follow the internal-use software guidance in ASC 350-40 to determine which implementation costs to defer and recognize as an asset. This guidance is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. In June 2016, the FASB issued ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which is designed to provide financial statement users with more information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. When determining such expected credit losses, the guidance requires companies to apply a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This guidance is effective on a modified retrospective basis for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The guidance is not expected to have a material impact on the Company's financial statements and related disclosures. |
Commitments and Contingencies | Currently, and from time to time, the Company is involved in litigation incidental to the conduct of its business. In accordance with GAAP, the Company records a provision for a liability when it is both probable that a liability has been incurred and the amount can be reasonably estimated. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of accumulated other comprehensive loss | The components of accumulated other comprehensive loss, net of tax were as follows (in thousands): As of December 31, 2019 2018 Foreign currency translation adjustment $ (7,855 ) $ (10,958 ) Net unrealized loss on investments (730 ) (730 ) Total accumulated other comprehensive loss $ (8,585 ) $ (11,688 ) |
Stock-based compensation expense for stock options and restricted stock | Stock-based compensation expense for stock options and restricted stock awards issued under equity incentive plans and stock purchases under the Employee Stock Purchase Plan ("ESPP") included in the Company’s results of operations were as follows (in thousands): Year Ended December 31, 2019 2018 2017 Cost of revenues (1) $ 9,273 $ 7,688 $ 4,971 Selling and marketing (excluding customer base amortization) 6,809 6,881 7,086 Software development 8,985 7,454 7,071 General and administrative 27,188 20,695 19,902 Total stock-based compensation $ 52,255 $ 42,718 $ 39,030 __________________________ (1) For the year ended December 31, 2018, stock-based compensation expense includes $1.5 million of expense related to the cash settlement of stock options in connection with the acquisition of Cozy Services, Ltd. See Note 4 for details of the acquisition. |
Schedule of property and equipment | Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives of the assets: Leasehold improvements Shorter of lease term or useful life Computer hardware and software Three to five years Furniture and office equipment Five to ten years Vehicles Five years Aircraft Ten to twenty years Property and equipment consists of the following (in thousands): December 31, 2019 2018 Leasehold improvements $ 73,918 $ 65,332 Furniture, office equipment and vehicles 60,768 50,224 Computer hardware and software 80,947 74,742 Aircraft 27,657 2,796 Property and equipment, gross 243,290 193,094 Accumulated depreciation and amortization (135,761 ) (109,791 ) Property and equipment, net $ 107,529 $ 83,303 |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company provides information, analytics and online marketplaces to the commercial real estate industry and related professionals. The revenues by operating segment and type of service consist of the following (in thousands): Year Ended December 31, 2019 2018 North America International Total North America International Total Information and analytics CoStar Suite $ 590,222 $ 27,576 $ 617,798 $ 519,661 $ 25,534 $ 545,195 Information services 76,950 11,496 88,446 58,708 8,916 67,624 Online marketplaces Multifamily 490,631 — 490,631 405,795 — 405,795 Commercial property and land 202,264 580 202,844 173,137 81 173,218 Total revenues $ 1,360,067 $ 39,652 $ 1,399,719 $ 1,157,301 $ 34,531 $ 1,191,832 |
Contract with Customer, Asset and Liability | Changes in deferred revenue for the period were as follows (in thousands): Balance at December 31, 2018 $ 51,459 Revenue recognized in the current period from the amounts in the beginning balance (49,937 ) New deferrals, net of amounts recognized in the current period 68,814 Effects of foreign currency 284 Balance at December 31, 2019 (1) $ 70,620 __________________________ (1) Deferred revenue was comprised of $67 million of current liabilities and $3 million of noncurrent liabilities classified within lease and other long-term liabilities on the Company’s consolidated balance sheet as of December 31, 2019 . The balance includes $11 million of net new deferrals recognized in connection with business acquisitions made in 2019. See Note 4 for details. |
Schedule of Commissions Expense | Commissions expense activity as of December 31, 2019 and December 31, 2018 was as follows (in thousands): Year Ended December 31, 2019 2018 Commissions incurred $ 87,043 $ 72,899 Commissions capitalized in the current period (66,688 ) (53,497 ) Amortization of deferred commissions costs 53,421 48,313 Total commissions expense $ 73,776 $ 67,715 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the amounts recorded for acquired assets and assumed liabilities recorded at their fair values as of the acquisition date (in thousands): Preliminary: October 22, 2019 Cash and cash equivalents $ 11,710 Accounts receivable 8,067 Lease right-of-use assets 7,306 Goodwill 261,436 Intangible assets 178,000 Lease liabilities (7,306 ) Deferred revenue (10,966 ) Deferred tax liabilities (7,980 ) Other assets and liabilities (4,815 ) Fair value of identifiable net assets acquired $ 435,452 The following table summarizes the amounts recorded for acquired assets and assumed liabilities recorded at their fair values as of the acquisition date (in thousands): Final: February 21, 2018 Cash and cash equivalents $ 59 Accounts receivable 8,769 Indemnification asset 5,443 Goodwill 266,595 Intangible assets 141,300 Deferred tax liabilities (34,032 ) Contingent sales tax liability (6,260 ) State uncertain income tax position liability (2,047 ) Other assets and liabilities (3,535 ) Fair value of identifiable net assets acquired $ 376,292 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the fair values (in thousands) of the identifiable intangible assets included in each of the Company's operating segments, their related estimated useful lives (in years) and their respective amortization methods: North America International Estimated Fair Value Estimated Useful Life Estimated Fair Value Estimated Useful Life Amortization Method Customer base $ 97,000 13 $ 42,000 10 Accelerated Trade name 24,000 15 Straight-line Other intangible assets 10,000 5 5,000 5 Straight-line Total intangible assets $ 131,000 $ 47,000 |
Business Acquisition, Pro Forma Information | The unaudited pro forma financial information, in aggregate, was as follows (in thousands, except per share data): Year Ended 2019 2018 2017 Revenue $ 1,450,954 $ 1,264,696 $ 1,067,742 Net income $ 306,755 $ 226,305 $ 103,000 Net income per share - basic $ 8.45 $ 6.28 $ 3.09 Net income per share - diluted $ 8.37 $ 6.21 $ 3.06 |
INVESTMENTS (Tables)
INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Scheduled maturities of investments classified as available-for-sale | Scheduled maturities of investments classified as available-for-sale as of December 31, 2019 are as follows (in thousands): Maturity Fair Value Due in: 2020 $ — 2021 — 2024 — 2025 — 2029 — 2030 and thereafter 10,070 Available-for-sale investments $ 10,070 |
Schedule of available for sale securities reconciliation | As of December 31, 2019 , the amortized cost basis and fair value of investments classified as available-for-sale were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Auction rate securities $ 10,800 $ — $ (730 ) $ 10,070 Available-for-sale investments $ 10,800 $ — $ (730 ) $ 10,070 As of December 31, 2018 , the amortized cost basis and fair value of investments classified as available-for-sale were as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Auction rate securities $ 10,800 $ — $ (730 ) $ 10,070 Available-for-sale investments $ 10,800 $ — $ (730 ) $ 10,070 |
Schedule of unrealized loss on investments | The components of the Company’s investments in an unrealized loss position for twelve months or longer were as follows (in thousands): December 31, 2019 2018 Aggregate Fair Value Gross Unrealized Losses Aggregate Fair Value Gross Unrealized Losses Auction rate securities $ 10,070 $ (730 ) $ 10,070 $ (730 ) Investments in an unrealized loss position $ 10,070 $ (730 ) $ 10,070 $ (730 ) |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Summary of fair value hierarchy for the company's financial assets and liabilities measured at fair value on a recurring basis | The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of December 31, 2019 (in thousands): Level 1 Level 2 Level 3 Total Assets: Money market funds $ 576,761 $ — $ — $ 576,761 Auction rate securities — — 10,070 10,070 Total assets measured at fair value $ 576,761 $ — $ 10,070 $ 586,831 The following table represents the Company's fair value hierarchy for its financial assets (cash equivalents and investments) measured at fair value on a recurring basis as of December 31, 2018 (in thousands): Level 1 Level 2 Level 3 Total Assets: Money market funds $ 590,567 $ — $ — $ 590,567 Auction rate securities — — 10,070 10,070 Total assets measured at fair value $ 590,567 $ — $ 10,070 $ 600,637 |
Summary of changes in the fair value of the company's level 3 assets | The following table summarizes changes in fair value of the Company’s Level 3 assets from December 31, 2017 to December 31, 2019 (in thousands): Auction Rate Securities Balance at December 31, 2017 $ 10,070 Decrease in unrealized loss included in accumulated other comprehensive loss — Balance at December 31, 2018 10,070 Decrease in unrealized loss included in accumulated other comprehensive loss — Balance at December 31, 2019 $ 10,070 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | Lease costs related to the Company's operating leases included in the consolidated statements of operations were as follows (in thousands): Year Ended December 31, 2019 2018 2017 Operating lease costs: Cost of revenues $ 11,407 $ 11,926 $ 10,214 Software development 4,209 3,335 2,721 Selling and marketing (excluding customer base amortization) 8,678 9,068 8,279 General and administrative 3,299 3,789 4,467 Total operating lease costs $ 27,593 $ 28,118 $ 25,681 |
Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to operating leases was as follows (in thousands): Balance Balance Sheet Location December 31, 2019 Long-term lease liabilities Lease and other long-term liabilities $ 120,153 Weighted-average remaining lease term in years 5.0 Weighted-average discount rate 4.0 % |
Schedule of Supplemental Cash Flow Information for Leases | Supplemental cash flow information related to leases was as follows (in thousands): December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows used in operating leases $ 30,287 ROU assets obtained in exchange for lease obligations: Operating leases $ 22,629 |
Lessee, Operating Lease, Liability, Maturity | Maturities of operating lease liabilities at December 31, 2019 were as follows (in thousands): January 1, 2020 - December 31, 2020 $ 34,976 January 1, 2021 - December 31, 2021 33,760 January 1, 2022 - December 31, 2022 30,938 January 1, 2023 - December 31, 2023 29,663 January 1, 2024 - December 31, 2024 23,972 Thereafter 12,233 Total lease payments 165,542 Less imputed interest (15,719 ) Present value of lease liabilities $ 149,823 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | Depreciation and amortization are calculated on a straight-line basis over the following estimated useful lives of the assets: Leasehold improvements Shorter of lease term or useful life Computer hardware and software Three to five years Furniture and office equipment Five to ten years Vehicles Five years Aircraft Ten to twenty years Property and equipment consists of the following (in thousands): December 31, 2019 2018 Leasehold improvements $ 73,918 $ 65,332 Furniture, office equipment and vehicles 60,768 50,224 Computer hardware and software 80,947 74,742 Aircraft 27,657 2,796 Property and equipment, gross 243,290 193,094 Accumulated depreciation and amortization (135,761 ) (109,791 ) Property and equipment, net $ 107,529 $ 83,303 |
GOODWILL (Tables)
GOODWILL (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill [Abstract] | |
Schedule of goodwill | The changes in the carrying amount of goodwill by operating segment consist of the following (in thousands): North America International Total Goodwill, December 31, 2017 $ 1,253,494 $ 29,963 $ 1,283,457 Acquisition 319,594 10,344 329,938 Effect of foreign currency translation — (1,860 ) (1,860 ) Goodwill, December 31, 2018 1,573,088 38,447 1,611,535 Acquisitions 165,272 102,532 267,804 Effect of foreign currency translation — 2,681 2,681 Goodwill, December 31, 2019 $ 1,738,360 $ 143,660 $ 1,882,020 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of acquired finite-lived intangible assets by major class | Intangible assets consist of the following (in thousands, except amortization period data): December 31, Weighted- Average Amortization Period (in years) 2019 2018 Acquired technology and data 105,168 103,128 5 Accumulated amortization (90,542 ) (85,344 ) Acquired technology, net 14,626 17,784 Acquired customer base 487,532 339,574 11 Accumulated amortization (233,202 ) (199,405 ) Acquired customer base, net 254,330 140,169 Acquired trade names and other intangible assets 236,358 199,752 12 Accumulated amortization (84,118 ) (68,794 ) Acquired trade names and other intangible assets, net 152,240 130,958 Intangible assets, net $ 421,196 $ 288,911 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of components of income tax expense | The components of the provision for income taxes attributable to operations consist of the following (in thousands): Year Ended December 31, 2019 2018 2017 Current: Federal $ 53,039 $ 36,167 $ 41,453 State 13,422 5,140 3,518 Foreign 1,305 708 295 Total current 67,766 42,015 45,266 Deferred: Federal 6,881 6,576 (7,917 ) State 2,424 (2,582 ) 4,695 Foreign (1,085 ) (328 ) 319 Total deferred 8,220 3,666 (2,903 ) Total provision for income taxes $ 75,986 $ 45,681 $ 42,363 |
Schedule of deferred tax assets and liabilities | The components of deferred tax assets and liabilities consist of the following (in thousands): December 31, 2019 2018 Deferred tax assets: Reserve for bad debts 1,312 1,457 Accrued compensation 4,297 4,803 Stock compensation 13,877 10,041 Net operating losses 20,555 26,349 Accrued reserve and other 4,177 1,773 Lease liabilities 36,472 — Deferred rent — 5,928 Deferred gain on the sale of building — 4,140 Research and development credits 6,341 6,331 Total deferred tax assets, prior to valuation allowance 87,031 60,822 Valuation allowance (13,553 ) (14,246 ) Total deferred tax assets, net of valuation allowance 73,478 46,576 Deferred tax liabilities: Deferred commission costs, net (22,612 ) (19,314 ) Lease right-of-use assets (30,830 ) — Prepaid expenses (1,548 ) (2,204 ) Property and equipment, net (8,891 ) (5,367 ) Intangible assets, net (91,285 ) (82,079 ) Total deferred tax liabilities (155,166 ) (108,964 ) Net deferred tax assets (liabilities) $ (81,688 ) $ (62,388 ) |
Schedule of effective income tax rate reconciliation | The Company’s provision for income taxes resulted in effective tax rates that varied from the statutory federal income tax rate as follows (in thousands): Year Ended December 31, 2019 2018 2017 Expected federal income tax provision at statutory rate $ 82,099 $ 59,643 $ 57,770 State income taxes, net of federal benefit 14,884 10,312 4,776 Foreign income taxes, net effect 1,515 (315 ) (3,540 ) Increase (decrease) in valuation allowance (693 ) 1,214 3,624 Tax rate changes (13 ) 141 (7,340 ) Research credits (12,188 ) (15,373 ) (20,547 ) Excess tax benefit (15,282 ) (14,227 ) (7,010 ) Tax reserves 3,135 1,870 12,646 Other adjustments 2,529 2,416 1,984 Income tax expense $ 75,986 $ 45,681 $ 42,363 |
Schedule of unrecognized tax benefits | The following table summarizes the activity related to the Company’s unrecognized tax benefits (in thousands): Unrecognized tax benefit as of December 31, 2016 $ 1,843 Increase for current year tax positions 12,620 Decrease for prior year tax positions (34 ) Expiration of the statute of limitation for assessment of taxes (66 ) Unrecognized tax benefit as of December 31, 2017 14,363 Increase for current year tax positions 9,561 Decrease for prior year tax positions (70 ) Expiration of the statute of limitation for assessment of taxes (1,482 ) Unrecognized tax benefit as of December 31, 2018 22,372 Increase for current year tax positions 3,487 Increase for prior year tax positions 440 Expiration of the statute of limitation for assessment of taxes (832 ) Unrecognized tax benefit as of December 31, 2019 $ 25,467 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Summarized information by operating segment | Summarized information by operating segment consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 EBITDA North America $ 451,699 $ 358,036 $ 236,906 International (6,987 ) (6,729 ) 553 Total EBITDA $ 444,712 $ 351,307 $ 237,459 |
Reconciliation of net income to EBITDA | The reconciliation of net income to EBITDA consists of the following (in thousands): Year Ended December 31, 2019 2018 2017 Net income $ 314,963 $ 238,334 $ 122,695 Amortization of acquired intangible assets in cost of revenues 21,357 20,586 19,707 Amortization of acquired intangible assets in operating expenses 33,995 30,881 17,684 Depreciation and other amortization 25,813 26,276 26,252 Interest and other income (30,017 ) (13,281 ) (4,044 ) Interest and other expense 2,615 2,830 9,014 Loss on debt extinguishment — — 3,788 Income tax expense 75,986 45,681 42,363 EBITDA $ 444,712 $ 351,307 $ 237,459 |
Summarized information by operating segment, assets and liabilities | Summarized information by operating segment consists of the following (in thousands): December 31, 2019 2018 Property and equipment, net North America $ 103,383 $ 79,493 International 4,146 3,810 Total property and equipment, net $ 107,529 $ 83,303 Goodwill North America $ 1,738,360 $ 1,573,088 International 143,660 38,447 Total goodwill $ 1,882,020 $ 1,611,535 Assets North America $ 3,615,258 $ 3,253,035 International 238,728 59,922 Total assets $ 3,853,986 $ 3,312,957 Liabilities North America $ 402,759 $ 272,776 International 45,634 18,239 Total liabilities $ 448,393 $ 291,015 |
NET INCOME (LOSS) PER SHARE (Ta
NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Calculation of basic and diluted net income (loss) per share | The following table sets forth the calculation of basic and diluted net income per share (in thousands except per share data): Year Ended December 31, 2019 2018 2017 Numerator: Net income $ 314,963 $ 238,334 $ 122,695 Denominator: Denominator for basic net income per share — weighted-average outstanding shares 36,310 36,058 33,200 Effect of dilutive securities: Stock options, restricted stock awards and restricted stock units 320 390 359 Denominator for diluted net income per share — weighted-average outstanding shares 36,630 36,448 33,559 Net income per share — basic $ 8.67 $ 6.61 $ 3.70 Net income per share — diluted $ 8.60 $ 6.54 $ 3.66 |
Schedule of anti-dilutive securities excluded from computation of earnings per share | The following table summarizes the shares underlying the unvested performance-based restricted stock and anti-dilutive securities excluded from the basic and diluted earnings per share calculations (in thousands): Year Ended December 31, 2019 2018 2017 Performance-based restricted stock awards 60 53 58 Anti-dilutive securities 42 100 126 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Compensation Related Costs [Abstract] | |
Schedule of option activity | Option activity was as follows: Number of Shares Range of Weighted- Average Exercise Price Weighted- Average Remaining Contract Life (in years) Aggregate Intrinsic Value (in thousands) Outstanding at December 31, 2016 440,158 $36.48 - $201.04 $ 132.08 Granted 95,500 $204.91 $ 204.91 Exercised (81,815 ) $36.48 - $201.04 $ 83.07 Outstanding at December 31, 2017 453,843 $36.73 - $204.91 $ 156.24 Granted 82,500 $342.13 $ 342.13 Exercised (177,299 ) $36.73 - $204.91 $ 125.16 Canceled or expired (14,768 ) $182.75 - $342.13 $ 261.20 Outstanding at December 31, 2018 344,276 $ 212.28 Granted 48,300 $398.15 $ 398.15 Exercised (116,918 ) $54.51 - $342.13 $ 159.52 Outstanding at December 31, 2019 275,658 $54.51 - $398.15 $ 267.23 6.98 $ 91,262 Exercisable at December 31, 2017 278,239 $36.73 - $201.04 $ 130.91 Exercisable at December 31, 2018 185,405 $54.51 - $204.91 $ 165.31 Exercisable at December 31, 2019 147,620 $102.16 - $342.13 $ 210.96 5.84 $ 57,180 |
Fair value assumption for options granted | The Company estimated the fair value of each option granted on the date of grant using the Black-Scholes option-pricing model, using the assumptions in the following table: Year Ended December 31, 2019 2018 2017 Dividend yield 0 % 0 % 0 % Expected volatility 27 % 28 % 28 % Risk-free interest rate 2 % 3 % 2 % Expected life (in years) 5 5 5 Year Ended December 31, 2019 2018 2017 Dividend yield 0 % 0 % 0 % Expected volatility 27 % 28 % 28 % Risk-free interest rate 2 % 2 % 2 % Expected life (in years) 3 3 3 Weighted-average grant date fair value $ 398.15 $ 342.13 $ 218.59 |
Summarized information regarding options outstanding | The following table summarizes information regarding options outstanding at December 31, 2019 : Options Outstanding Options Exercisable Range of Exercise Price Number of Shares Weighted-Average Remaining Contractual Life (in years) Weighted- Average Exercise Price Number of Shares Weighted- Average Exercise Price $102.16 - $142.45 3,522 3.19 $ 102.16 3,522 $ 102.16 $142.46 - $188.22 36,600 6.19 $ 182.75 36,600 $ 182.75 $188.23 - $197.37 32,200 5.17 $ 193.69 32,200 $ 193.69 $197.38 - $202.98 33,600 4.16 $ 201.04 33,600 $ 201.04 $202.99 - $273.52 52,135 7.16 $ 204.91 23,066 $ 204.91 $273.53 - $370.14 69,301 8.16 $ 342.13 18,632 $ 342.13 $370.15 - $398.15 48,300 9.10 $ 398.15 — $ — 275,658 $ 267.23 147,620 $ 210.96 |
Unvested restricted stock awards activity | The following table presents unvested restricted stock units activity for the year ended December 31, 2019 : Number of Units Weighted-Average Grant Date Fair Value per Share Unvested restricted stock units at December 31, 2018 852 $ 228.86 Granted 413 $ 459.41 Vested (411 ) $ 221.08 Canceled — $ — Unvested restricted stock units at December 31, 2019 854 $ 344.10 The following tables presents the RSU activity for the year ended December 31, 2019 : Number of Matching RSU Shares Weighted-Average Grant Date Fair Value per Share Unvested MSPP restricted stock units at December 31, 2018 — $ — Granted 7,441 469.13 Vested — — Canceled (275 ) 469.13 Unvested MSPP restricted stock units at December 31, 2019 7,166 $ 469.13 The following table presents unvested restricted stock awards activity for the year ended December 31, 2019 : Restricted Stock Awards — without Market Condition Restricted Stock Awards — with Market Condition Number of Shares Weighted-Average Grant Date Fair Value per Share Number of Shares Weighted-Average Grant Date Fair Value per Share Unvested restricted stock awards at December 31, 2018 304,161 $ 272.95 76,320 $ 193.44 Granted 115,722 $ 456.51 36,000 $ 429.63 Vested (134,361 ) $ 241.65 (23,040 ) $ 184.97 Canceled (18,303 ) $ 315.39 — $ — Unvested restricted stock awards at December 31, 2019 267,219 $ 365.27 89,280 $ 290.87 |
QUARTERLY RESULTS OF OPERATIO_2
QUARTERLY RESULTS OF OPERATIONS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Selected Quarterly Financial Information [Abstract] | |
Quarterly Financial Information | The following is a summary of the unaudited quarterly results of operations for the years ended December 31, 2019 and 2018 . Information about prior period acquisitions and the adoption of recent accounting pronouncements that may affect the comparability of the quarterly financial information presented below are included in Note 2 and Note 4 . 2019 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Revenues $ 328,425 $ 343,760 $ 352,808 $ 374,726 Cost of revenues 71,153 71,918 71,172 74,996 Gross profit 257,272 271,842 281,636 299,730 Operating expenses 163,780 197,042 187,367 198,744 Income from operations 93,492 74,800 94,269 100,986 Interest and other income 4,945 5,913 5,358 13,801 Interest and other expense (732 ) (697 ) (704 ) (482 ) Income before income taxes 97,705 80,016 98,923 114,305 Income tax expense 12,536 16,768 20,304 26,378 Net income $ 85,169 $ 63,248 $ 78,619 $ 87,927 Net income per share — basic $ 2.35 $ 1.74 $ 2.16 $ 2.42 Net income per share — diluted $ 2.33 $ 1.73 $ 2.15 $ 2.39 2018 Mar. 31 Jun. 30 Sep. 30 Dec. 31 Revenues $ 273,718 $ 297,018 $ 305,525 $ 315,571 Cost of revenues 62,477 67,136 72,072 68,248 Gross profit 211,241 229,882 233,453 247,323 Operating expenses 157,796 186,108 162,765 141,666 Income from operations 53,445 43,774 70,688 105,657 Interest and other income 2,987 2,652 3,035 4,607 Interest and other expense (690 ) (728 ) (717 ) (695 ) Income before income taxes 55,742 45,698 73,006 109,569 Income tax expense 3,511 1,863 14,247 26,060 Net income $ 52,231 $ 43,835 $ 58,759 $ 83,509 Net income per share — basic $ 1.46 $ 1.22 $ 1.63 $ 2.31 Net income per share — diluted $ 1.44 $ 1.20 $ 1.61 $ 2.29 |
ORGANIZATION (Details)
ORGANIZATION (Details) | 12 Months Ended |
Dec. 31, 2019operating_segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of business segments | 2 |
Term of subscription-based license agreements (in years) | 1 year |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Revenue Recognition and Advertising Costs) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounting Policies [Abstract] | |||
Term of subscription-based license agreements (in years) | 1 year | ||
Advertising costs | $ 164 | $ 124 | $ 104 |
Amortization period of deferred sales commissions | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Foreign Currency Translation and Accumulated Other Comprehensive Loss) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) Net of Tax [Abstract] | |||
Material gains or losses from foreign currency exchange transactions | $ 0 | $ 0 | $ 0 |
Foreign currency translation adjustment | (7,855,000) | (10,958,000) | |
Net unrealized loss on investments | (730,000) | (730,000) | |
Total accumulated other comprehensive loss | (8,585,000) | (11,688,000) | |
Reclassifications out of accumulated other comprehensive loss | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock-Based Compensation Expense [Abstract] | |||
Compensation expense | $ 52,255 | $ 42,718 | $ 39,030 |
Expense related to stock options settled | 1,500 | ||
Cost of revenues | |||
Stock-Based Compensation Expense [Abstract] | |||
Compensation expense | 9,273 | 7,688 | 4,971 |
Selling and marketing (excluding customer base amortization) | |||
Stock-Based Compensation Expense [Abstract] | |||
Compensation expense | 6,809 | 6,881 | 7,086 |
Software development | |||
Stock-Based Compensation Expense [Abstract] | |||
Compensation expense | 8,985 | 7,454 | 7,071 |
General and administrative | |||
Stock-Based Compensation Expense [Abstract] | |||
Compensation expense | $ 27,188 | $ 20,695 | $ 19,902 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Property and Equipment) (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Computer Hardware and Software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 3 years | |
Computer Hardware and Software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Office Equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Furniture and Office Equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 5 years | |
Aircraft | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 10 years | |
Aircraft | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Useful Life | 20 years |
SUMMARY OF SIGNIFICANT ACCOUN_8
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Long-Lived Assets, Intangible Assets and Goodwill) (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Acquired Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 1 year |
Acquired Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 8 years |
Acquired Customer Base | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 5 years |
Acquired Customer Base | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 13 years |
Trade name | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 1 year |
Trade name | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life | 15 years |
SUMMARY OF SIGNIFICANT ACCOUN_9
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Recent Accounting Pronouncements) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease right-of-use assets | $ 115,084 | |||
Lease liability | $ 149,823 | |||
Cumulative effect of adoption of new accounting standard, net of tax | $ 12,057 | $ 54,464 | $ 2,162 | |
Accounting Standards Update 2016-02 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Lease right-of-use assets | 116,000 | |||
Lease liability | 150,000 | |||
Cumulative effect of adoption of new accounting standard, net of tax | $ 12,000 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Disaggregated Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 374,726 | $ 352,808 | $ 343,760 | $ 328,425 | $ 315,571 | $ 305,525 | $ 297,018 | $ 273,718 | $ 1,399,719 | $ 1,191,832 | $ 965,230 |
Information And Analytics | CoStar Suite | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 617,798 | 545,195 | |||||||||
Information And Analytics | Information services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 88,446 | 67,624 | |||||||||
Online Marketplaces | Multifamily Online Marketplace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 490,631 | 405,795 | |||||||||
Online Marketplaces | Commercial property and land | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 202,844 | 173,218 | |||||||||
North America | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,360,067 | 1,157,301 | |||||||||
North America | Information And Analytics | CoStar Suite | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 590,222 | 519,661 | |||||||||
North America | Information And Analytics | Information services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 76,950 | 58,708 | |||||||||
North America | Online Marketplaces | Multifamily Online Marketplace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 490,631 | 405,795 | |||||||||
North America | Online Marketplaces | Commercial property and land | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 202,264 | 173,137 | |||||||||
International | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 39,652 | 34,531 | |||||||||
International | Information And Analytics | CoStar Suite | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 27,576 | 25,534 | |||||||||
International | Information And Analytics | Information services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 11,496 | 8,916 | |||||||||
International | Online Marketplaces | Multifamily Online Marketplace | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | |||||||||
International | Online Marketplaces | Commercial property and land | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 580 | $ 81 |
REVENUE FROM CONTRACTS WITH C_4
REVENUE FROM CONTRACTS WITH CUSTOMERS (Contract Assets and Liabilities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Change in Contract with Customer, Liability [Roll Forward] | ||
Beginning balance | $ 51,459 | |
Revenue recognized in the current period from the amounts in the beginning balance | (49,937) | |
New deferrals, net of amounts recognized in the current period | 68,814 | |
Effects of foreign currency | 284 | |
Ending balance | 70,620 | |
Current liability | 67,274 | $ 51,459 |
Noncurrent liability | 3,000 | |
New deferrals recognized in connection with business acquisitions made in 2019 | $ 11,000 |
REVENUE FROM CONTRACTS WITH C_5
REVENUE FROM CONTRACTS WITH CUSTOMERS (Contract Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue from Contract with Customer [Abstract] | ||
Contract with customer, asset, gross | $ 4 | $ 2 |
REVENUE FROM CONTRACTS WITH C_6
REVENUE FROM CONTRACTS WITH CUSTOMERS (Commissions) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from Contract with Customer [Abstract] | |||
Commissions incurred | $ 87,043 | $ 72,899 | |
Commissions capitalized in the current period | 66,688 | 53,497 | |
Amortization of deferred commissions costs | 53,421 | 48,313 | $ 0 |
Total commissions expense | $ 73,776 | $ 67,715 |
REVENUE FROM CONTRACTS WITH C_7
REVENUE FROM CONTRACTS WITH CUSTOMERS (Unsatisfied Performance Obligations) (Details) - Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 $ in Millions | Dec. 31, 2019USD ($) |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Remaining performance obligation | $ 257 |
Revenue, remaining performance obligation, expected timing of satisfaction, period | 5 years |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) | Oct. 22, 2019 | Feb. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,882,020,000 | $ 1,611,535,000 | $ 1,283,457,000 | ||
Goodwill, expected tax deductible amount | $ 166,000,000 | ||||
Trade name | |||||
Business Acquisition [Line Items] | |||||
Weighted-average amortization period | 12 years | ||||
STR Inc and STR Global Ltd | |||||
Business Acquisition [Line Items] | |||||
Aggregate purchase price | $ 435,000,000 | ||||
Goodwill | 261,436,000 | ||||
Transaction costs | 2,000,000 | ||||
Employee retention bonus | $ 15,000,000 | ||||
Period for retention payments | 1 year | ||||
STR Inc and STR Global Ltd | North America | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 159,000,000 | ||||
STR Inc and STR Global Ltd | International | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 102,000,000 | ||||
ForRent, Division Of DE Holdings, Inc. | |||||
Business Acquisition [Line Items] | |||||
Aggregate purchase price | $ 376,000,000 | ||||
Goodwill | 266,595,000 | ||||
Transaction costs | 3,000,000 | ||||
Employee retention bonus | 12,000,000 | ||||
Cash payment | $ 340,000,000 | ||||
Investment owned (shares) | 103,280 | ||||
Purchase price, shares issued | $ 36,000,000 | ||||
Goodwill, expected tax deductible amount | 8,000,000 | ||||
Indemnification asset | 6,260,000 | ||||
State uncertain income tax position liability | 2,047,000 | ||||
Sales taxes | 5,000,000 | ||||
Reversed tax liabilities due to time lapse | $ 900,000 | 500,000 | |||
Uncertain income tax position liability and related indemnification asset recognized as of the acquisition | $ 600,000 | $ 900,000 | |||
ForRent, Division Of DE Holdings, Inc. | Maximum | |||||
Business Acquisition [Line Items] | |||||
State uncertain income tax position liability | 2,000,000 | ||||
ForRent, Division Of DE Holdings, Inc. | North America | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 267,000,000 | ||||
ForRent, Division Of DE Holdings, Inc. | Customer base | |||||
Business Acquisition [Line Items] | |||||
Weighted-average amortization period | 10 years | ||||
ForRent, Division Of DE Holdings, Inc. | Database Rights | |||||
Business Acquisition [Line Items] | |||||
Weighted-average amortization period | 3 years | ||||
ForRent, Division Of DE Holdings, Inc. | Trade name | |||||
Business Acquisition [Line Items] | |||||
Weighted-average amortization period | 10 years | ||||
ForRent, Division Of DE Holdings, Inc. | Building Photography | |||||
Business Acquisition [Line Items] | |||||
Weighted-average amortization period | 1 year |
ACQUISITIONS (Schedule of Recog
ACQUISITIONS (Schedule of Recognized Identified Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Oct. 22, 2019 | Dec. 31, 2018 | Feb. 21, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 1,882,020 | $ 1,611,535 | $ 1,283,457 | ||
STR Inc and STR Global Ltd | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 11,710 | ||||
Accounts receivable | 8,067 | ||||
Lease right-of-use assets | 7,306 | ||||
Goodwill | 261,436 | ||||
Intangible assets | 178,000 | ||||
Lease liabilities | (7,306) | ||||
Deferred revenue | (10,966) | ||||
Deferred tax liabilities | (7,980) | ||||
Other assets and liabilities | (4,815) | ||||
Fair value of identifiable net assets acquired | $ 435,452 | ||||
ForRent, Division Of DE Holdings, Inc. | |||||
Business Acquisition [Line Items] | |||||
Cash and cash equivalents | $ 59 | ||||
Accounts receivable | 8,769 | ||||
Indemnification asset | 5,443 | ||||
Goodwill | 266,595 | ||||
Intangible assets | 141,300 | ||||
Deferred tax liabilities | (34,032) | ||||
Contingent sales tax liability | (6,260) | ||||
State uncertain income tax position liability | (2,047) | ||||
Other assets and liabilities | (3,535) | ||||
Fair value of identifiable net assets acquired | $ 376,292 |
ACQUISITIONS (Intangible Assets
ACQUISITIONS (Intangible Assets Acquired) (Details) - STR Inc and STR Global Ltd | Oct. 22, 2019USD ($) |
North America | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 131,000 |
North America | Customer base | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 97,000 |
Estimated Useful Life | 13 years |
North America | Trade name | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 24,000 |
Estimated Useful Life | 15 years |
North America | Other intangible assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 10,000 |
Estimated Useful Life | 5 years |
International | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 47,000 |
International | Customer base | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 42,000 |
Estimated Useful Life | 10 years |
International | Other intangible assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Estimated Fair Value | $ 5,000 |
Estimated Useful Life | 5 years |
ACQUISITIONS (Other - Narrative
ACQUISITIONS (Other - Narrative) (Details) $ in Thousands, £ in Millions | Jun. 12, 2019USD ($) | Nov. 08, 2018USD ($) | Oct. 12, 2018GBP (£) | Oct. 12, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) |
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | $ 437,556 | $ 418,369 | $ 47,768 | ||||
Goodwill acquired | $ 267,804 | $ 329,938 | |||||
Off Campus Partners | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | $ 16,000 | ||||||
Initial payment for acquisition | 14,000 | ||||||
Goodwill acquired | 8,000 | ||||||
Estimated Fair Value | $ 9,000 | ||||||
Cozy Services Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | $ 65,000 | ||||||
Goodwill acquired | 52,000 | ||||||
Estimated Fair Value | $ 11,000 | ||||||
Realla Ltd | |||||||
Business Acquisition [Line Items] | |||||||
Cash paid for acquisitions, net of cash acquired | £ 12 | $ 15,000 | |||||
Initial payment for acquisition | 10 | 13,000 | |||||
Goodwill acquired | 8 | 10,000 | |||||
Estimated Fair Value | £ 4 | $ 5,000 |
ACQUISITIONS (Business Acquisit
ACQUISITIONS (Business Acquisition, Pro Forma Information) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combinations [Abstract] | |||
Revenue | $ 1,450,954 | $ 1,264,696 | $ 1,067,742 |
Net income | $ 306,755 | $ 226,305 | $ 103,000 |
Net income per share - basic (usd per share) | $ 8.45 | $ 6.28 | $ 3.09 |
Net income per share - diluted (usd per share) | $ 8.37 | $ 6.21 | $ 3.06 |
INVESTMENTS (Scheduled Maturiti
INVESTMENTS (Scheduled Maturities of Investments Classified as Available-for-sale) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gain on investments | $ 0 | $ 0 | $ 0 |
Realized loss on investments | 0 | 0 | $ 0 |
Debt Maturities Fair Value [Abstract] | |||
2020 | 0 | ||
2021 — 2024 | 0 | ||
2025 — 2029 | 0 | ||
2030 and thereafter | 10,070,000 | ||
Available-for-sale investments | $ 10,070,000 | $ 10,070,000 |
INVESTMENTS (Available For Sale
INVESTMENTS (Available For Sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 10,800 | $ 10,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (730) | (730) |
Fair Value | 10,070 | 10,070 |
Aggregate Fair Value | 10,070 | 10,070 |
Gross Unrealized Losses | (730) | (730) |
Auction Rate Securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,800 | 10,800 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (730) | (730) |
Fair Value | 10,070 | 10,070 |
Aggregate Fair Value | 10,070 | 10,070 |
Gross Unrealized Losses | $ (730) | $ (730) |
FAIR VALUE (Details)
FAIR VALUE (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Assets: | ||
Total assets measured at fair value | $ 586,831,000 | $ 600,637,000 |
Unobservable inputs assets (level 3) [Roll forward] | ||
Temporary impairment of the auction rates security investments | (730,000) | (730,000) |
Money Market Funds | ||
Assets: | ||
Total assets measured at fair value | 576,761,000 | 590,567,000 |
Auction Rate Securities | ||
Assets: | ||
Total assets measured at fair value | 10,070,000 | 10,070,000 |
Fair Value, Inputs, Level 1 | ||
Assets: | ||
Total assets measured at fair value | 576,761,000 | 590,567,000 |
Fair Value, Inputs, Level 1 | Money Market Funds | ||
Assets: | ||
Total assets measured at fair value | 576,761,000 | 590,567,000 |
Fair Value, Inputs, Level 1 | Auction Rate Securities | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Money Market Funds | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 2 | Auction Rate Securities | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Assets: | ||
Total assets measured at fair value | 10,070,000 | 10,070,000 |
Fair Value, Inputs, Level 3 | Money Market Funds | ||
Assets: | ||
Total assets measured at fair value | 0 | 0 |
Fair Value, Inputs, Level 3 | Auction Rate Securities | ||
Assets: | ||
Total assets measured at fair value | 10,070,000 | 10,070,000 |
Auction Rate Securities | ||
Unobservable inputs assets (level 3) [Roll forward] | ||
Beginning balance | 10,070,000 | 10,070,000 |
Decrease in unrealized loss included in accumulated other comprehensive loss | 0 | 0 |
Ending balance | $ 10,070,000 | $ 10,070,000 |
Auction rate securities variable rate debt instruments interest rate reset period | 28 days | |
The minimum contractual maturities on the underlying securities involved in the auction rate securities (in years) | 20 years | |
Par value of company held auction rate securities | $ 11,000,000 | |
Temporary impairment of the auction rates security investments | $ 0 | |
Weighted Average | Measurement Input, Discount Rate | ||
Unobservable inputs assets (level 3) [Roll forward] | ||
Debt securities, measurement input | 0.05 | 0.06 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | Dec. 31, 2019 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 1 year |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Term of contract | 9 years |
LEASES (Lease Cost) (Details)
LEASES (Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease costs: | $ 27,593 | $ 28,118 | $ 25,681 |
Cost of Revenues | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs: | 11,407 | 11,926 | 10,214 |
Software Development | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs: | 4,209 | 3,335 | 2,721 |
Selling and Marketing Expense | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs: | 8,678 | 9,068 | 8,279 |
General and Administrative Expense | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease costs: | $ 3,299 | $ 3,789 | $ 4,467 |
LEASES (Supplemental Balance Sh
LEASES (Supplemental Balance Sheet Information Related to Leases) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases, Operating [Abstract] | |
Long-term lease liabilities | $ 120,153 |
Weighted-average remaining lease term in years | 5 years |
Weighted-average discount rate | 4.00% |
LEASES (Supplemental Cash Flow
LEASES (Supplemental Cash Flow Information Related to Leases) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash Paid For Amounts Included In Measurement Of Lease Liabilities [Abstract] | |
Operating cash flows used in operating leases | $ 30,287 |
Right Of Use Assets Obtained In Exchange For Lease Obligations [Abstract] | |
Operating leases | $ 22,629 |
LEASES (Maturities of Operating
LEASES (Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
January 1, 2020 - December 31, 2020 | $ 34,976 |
January 1, 2021 - December 31, 2021 | 33,760 |
January 1, 2022 - December 31, 2022 | 30,938 |
January 1, 2023 - December 31, 2023 | 29,663 |
January 1, 2024 - December 31, 2024 | 23,972 |
Thereafter | 12,233 |
Total lease payments | 165,542 |
Less imputed interest | (15,719) |
Present value of lease liabilities | $ 149,823 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 243,290 | $ 193,094 | |
Accumulated depreciation and amortization | (135,761) | (109,791) | |
Property and equipment, net | 107,529 | 83,303 | |
Depreciation expense for property and equipment | 26,000 | 26,000 | $ 26,000 |
Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 73,918 | 65,332 | |
Furniture, Office Equipment and Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 60,768 | 50,224 | |
Computer Hardware and Software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 80,947 | 74,742 | |
Aircraft | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 27,657 | $ 2,796 |
GOODWILL (Goodwill by Segment)
GOODWILL (Goodwill by Segment) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 1,611,535 | $ 1,283,457 |
Acquisitions | 267,804 | 329,938 |
Effect of foreign currency translation | 2,681 | (1,860) |
Goodwill, ending balance | 1,882,020 | 1,611,535 |
North America | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 1,573,088 | 1,253,494 |
Acquisitions | 165,272 | 319,594 |
Effect of foreign currency translation | 0 | 0 |
Goodwill, ending balance | 1,738,360 | 1,573,088 |
International | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 38,447 | 29,963 |
Acquisitions | 102,532 | 10,344 |
Effect of foreign currency translation | 2,681 | (1,860) |
Goodwill, ending balance | $ 143,660 | $ 38,447 |
GOODWILL (Narrative) (Details)
GOODWILL (Narrative) (Details) £ in Millions | Jun. 12, 2019USD ($) | Nov. 08, 2018USD ($) | Oct. 12, 2018GBP (£) | Oct. 12, 2018USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Feb. 21, 2018USD ($) |
Goodwill [Line Items] | ||||||||
Goodwill | $ 1,882,020,000 | $ 1,611,535,000 | $ 1,283,457,000 | |||||
Acquisitions of realla | 267,804,000 | 329,938,000 | ||||||
Goodwill, expected tax deductible amount | 166,000,000 | |||||||
Goodwill, impairment | 0 | $ 0 | $ 0 | |||||
Off Campus Partners | ||||||||
Goodwill [Line Items] | ||||||||
Acquisitions of realla | $ 8,000,000 | |||||||
Cozy Services Ltd | ||||||||
Goodwill [Line Items] | ||||||||
Acquisitions of realla | $ 52,000,000 | |||||||
Acquisition of cozy | $ 53,000,000 | |||||||
Initial amount of cozy goodwill recognized | $ (1,000,000) | |||||||
Realla Ltd | ||||||||
Goodwill [Line Items] | ||||||||
Acquisitions of realla | £ 8 | $ 10,000,000 | ||||||
ForRent, Division Of DE Holdings, Inc. | ||||||||
Goodwill [Line Items] | ||||||||
Goodwill | $ 266,595,000 | |||||||
Goodwill, expected tax deductible amount | $ 8,000,000 |
INTANGIBLE ASSETS (Details)
INTANGIBLE ASSETS (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, net | $ 421,196,000 | $ 288,911,000 | |
Amortization of intangible assets | 55,000,000 | 52,000,000 | $ 37,000,000 |
Impairment of intangible assets | 0 | 0 | $ 0 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |||
Amortization expense for 2020 | 72,000,000 | ||
Amortization expense for 2021 | 61,000,000 | ||
Amortization expense for 2022 | 51,000,000 | ||
Amortization expense for 2023 | 45,000,000 | ||
Amortization expense for 2024 | 39,000,000 | ||
Acquired Technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | 105,168,000 | 103,128,000 | |
Finite-lived intangible assets, accumulated amortization | (90,542,000) | (85,344,000) | |
Finite-lived intangible assets, net | $ 14,626,000 | 17,784,000 | |
Weighted-average amortization period (in years} | 5 years | ||
Acquired Customer Base | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 487,532,000 | 339,574,000 | |
Finite-lived intangible assets, accumulated amortization | (233,202,000) | (199,405,000) | |
Finite-lived intangible assets, net | $ 254,330,000 | 140,169,000 | |
Weighted-average amortization period (in years} | 11 years | ||
Trade name | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross | $ 236,358,000 | 199,752,000 | |
Finite-lived intangible assets, accumulated amortization | (84,118,000) | (68,794,000) | |
Finite-lived intangible assets, net | $ 152,240,000 | $ 130,958,000 | |
Weighted-average amortization period (in years} | 12 years |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) - USD ($) | Oct. 19, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 0 | $ 0 | ||
Interest expense, debt | 3,000,000 | 3,000,000 | $ 9,000,000 | |
Amortization of debt issuance costs | 900,000 | 1,000,000 | $ 2,000,000 | |
Debt issuance costs, net | 2,000,000 | 3,000,000 | ||
Letter of Credit | ||||
Debt Instrument [Line Items] | ||||
Long-term debt | $ 200,000 | $ 200,000 | ||
Letter of Credit | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving credit sub-facility for swing-line loans and issuances of letters of credit | $ 20,000,000 | |||
Interest rate increase (in case of default) | 2.00% | |||
Revolving Credit Facility | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Revolving credit sub-facility for swing-line loans and issuances of letters of credit | $ 750,000,000 | |||
Term of facility | 5 years | |||
Line of credit, covenant compliance, Secured Leverage Ratio | 3.50 | |||
Line of credit, covenant compliance, Total Leverage Ratio | 4.50 | |||
Federal Funds Rate | Letter of Credit | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
London Interbank Offered Rate (LIBOR) | Letter of Credit | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
London Interbank Offered Rate (LIBOR) | Initial Basis Spread | Letter of Credit | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.25% | |||
London Interbank Offered Rate (LIBOR) | Initial Basis Spread One Month LIBOR | Letter of Credit | 2017 Credit Agreement | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.25% |
INCOME TAXES (Components for Pr
INCOME TAXES (Components for Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | |||||||||||
Federal | $ 53,039 | $ 36,167 | $ 41,453 | ||||||||
State | 13,422 | 5,140 | 3,518 | ||||||||
Foreign | 1,305 | 708 | 295 | ||||||||
Total current | 67,766 | 42,015 | 45,266 | ||||||||
Deferred: | |||||||||||
Federal | 6,881 | 6,576 | (7,917) | ||||||||
State | 2,424 | (2,582) | 4,695 | ||||||||
Foreign | (1,085) | (328) | 319 | ||||||||
Total deferred | 8,220 | 3,666 | (2,903) | ||||||||
Income tax expense | $ 26,378 | $ 20,304 | $ 16,768 | $ 12,536 | $ 26,060 | $ 14,247 | $ 1,863 | $ 3,511 | $ 75,986 | $ 45,681 | $ 42,363 |
INCOME TAXES (Components of Def
INCOME TAXES (Components of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Reserve for bad debts | $ 1,312 | $ 1,457 |
Accrued compensation | 4,297 | 4,803 |
Stock compensation | 13,877 | 10,041 |
Net operating losses | 20,555 | 26,349 |
Accrued reserve and other | 4,177 | 1,773 |
Lease liabilities | 36,472 | 0 |
Deferred rent | 0 | 5,928 |
Deferred gain on the sale of building | 0 | 4,140 |
Research and development credits | 6,341 | 6,331 |
Total deferred tax assets, prior to valuation allowance | 87,031 | 60,822 |
Valuation allowance | (13,553) | (14,246) |
Total deferred tax assets, net of valuation allowance | 73,478 | 46,576 |
Deferred tax liabilities: | ||
Deferred commission costs, net | (22,612) | (19,314) |
Lease right-of-use assets | (30,830) | 0 |
Prepaid expenses | (1,548) | (2,204) |
Property and equipment, net | (8,891) | (5,367) |
Intangible assets, net | (91,285) | (82,079) |
Total deferred tax liabilities | (155,166) | (108,964) |
Net deferred tax assets (liabilities) | $ (81,688) | $ (62,388) |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Provision for Income Taxes) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective tax rate reconciliation [Abstract] | |||||||||||
Expected federal income tax provision at statutory rate | $ 82,099 | $ 59,643 | $ 57,770 | ||||||||
State income taxes, net of federal benefit | 14,884 | 10,312 | 4,776 | ||||||||
Foreign income taxes, net effect | 1,515 | (315) | (3,540) | ||||||||
Increase (decrease) in valuation allowance | (693) | 1,214 | 3,624 | ||||||||
Tax rate changes | (13) | 141 | (7,340) | ||||||||
Research credits | (12,188) | (15,373) | (20,547) | ||||||||
Excess tax benefit | (15,282) | (14,227) | (7,010) | ||||||||
Tax reserves | 3,135 | 1,870 | 12,646 | ||||||||
Other adjustments | 2,529 | 2,416 | 1,984 | ||||||||
Income tax expense | $ 26,378 | $ 20,304 | $ 16,768 | $ 12,536 | $ 26,060 | $ 14,247 | $ 1,863 | $ 3,511 | $ 75,986 | $ 45,681 | $ 42,363 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Increase for current year tax positions | $ 3,487 | $ 9,561 | $ 12,620 |
Change in valuation allowance | (700) | 1,000 | |
Foreign net operating loss deferred tax assets | 1,100 | ||
Income from U.S. sources | 403,000 | 294,000 | 167,000 |
Income from foreign sources | 12,000 | 10,000 | 2,000 |
Research credits | 12,188 | 15,373 | 20,547 |
Cash tax benefits resulting in net operating loss carryforward | 6,000 | 6,000 | 7,000 |
Expiration of the statute of limitation for assessment of taxes | 832 | $ 1,482 | $ 66 |
Foreign Country | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 45,000 | ||
Domestic Country | |||
Operating Loss Carryforwards [Line Items] | |||
Net operating loss carryforward | 28,000 | ||
State and Local Jurisdiction | |||
Operating Loss Carryforwards [Line Items] | |||
Increase for current year tax positions | 4,000 | ||
Change in valuation allowance | 400 | ||
Net operating loss carryforward | 2,000 | ||
Income tax credit carryforward | 11,000 | ||
Expiration of the statute of limitation for assessment of taxes | $ 1,000 |
INCOME TAXES (Unrecognized Tax
INCOME TAXES (Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Unrecognized Tax Benefits [Roll Forward] | |||
Unrecognized tax benefits beginning balance | $ 22,372 | $ 14,363 | $ 1,843 |
Increase for current year tax positions | 3,487 | 9,561 | 12,620 |
Decrease for prior period tax positions | (70) | (34) | |
Increase for prior year tax positions | 440 | ||
Expiration of the statute of limitation for assessment of taxes | (832) | (1,482) | (66) |
Unrecognized tax benefits ending balance | 25,467 | 22,372 | 14,363 |
Unrecognized tax benefits that would favorably affect the annual effective tax rate if recognized in future periods | 25,000 | 22,000 | |
Interest and penalties on income taxes recognized | 200 | 200 | |
Interest and penalties on income taxes reversal | 100 | ||
Interest and penalties accrued on income taxes | 600 | $ 400 | $ 200 |
State and Local Jurisdiction | |||
Unrecognized Tax Benefits [Roll Forward] | |||
Increase for current year tax positions | 4,000 | ||
Expiration of the statute of limitation for assessment of taxes | $ (1,000) |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Proceeds from legal settlements | $ 11 |
SEGMENT REPORTING (Narrative) (
SEGMENT REPORTING (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2019operating_segments | |
Segment Reporting [Abstract] | |
Number of operating segments | 2 |
SEGMENT REPORTING (EBITDA) (Det
SEGMENT REPORTING (EBITDA) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||
Total EBITDA | $ 444,712 | $ 351,307 | $ 237,459 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Total EBITDA | 451,699 | 358,036 | 236,906 |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Total EBITDA | $ (6,987) | $ (6,729) | $ 553 |
SEGMENT REPORTING (Reconciliati
SEGMENT REPORTING (Reconciliation of Net Income (Loss) to EBITDA) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting [Abstract] | |||||||||||
Net income | $ 87,927 | $ 78,619 | $ 63,248 | $ 85,169 | $ 83,509 | $ 58,759 | $ 43,835 | $ 52,231 | $ 314,963 | $ 238,334 | $ 122,695 |
Amortization of acquired intangible assets in cost of revenues | 21,357 | 20,586 | 19,707 | ||||||||
Amortization of acquired intangible assets in operating expenses | 33,995 | 30,881 | 17,684 | ||||||||
Depreciation and other amortization | 25,813 | 26,276 | 26,252 | ||||||||
Interest and other income | (13,801) | (5,358) | (5,913) | (4,945) | (4,607) | (3,035) | (2,652) | (2,987) | (30,017) | (13,281) | (4,044) |
Interest and other expense | 482 | 704 | 697 | 732 | 695 | 717 | 728 | 690 | 2,615 | 2,830 | 9,014 |
Loss on extinguishment of debt | 0 | 0 | 3,788 | ||||||||
Income tax expense | $ 26,378 | $ 20,304 | $ 16,768 | $ 12,536 | $ 26,060 | $ 14,247 | $ 1,863 | $ 3,511 | 75,986 | 45,681 | 42,363 |
EBITDA | $ 444,712 | $ 351,307 | $ 237,459 |
SEGMENT REPORTING (Summarized I
SEGMENT REPORTING (Summarized Information) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Segment Reporting Information [Line Items] | |||
Property and equipment, net | $ 107,529 | $ 83,303 | |
Goodwill | 1,882,020 | 1,611,535 | $ 1,283,457 |
Total assets | 3,853,986 | 3,312,957 | |
Total liabilities | 448,393 | 291,015 | |
North America | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 1,738,360 | 1,573,088 | 1,253,494 |
International | |||
Segment Reporting Information [Line Items] | |||
Goodwill | 143,660 | 38,447 | $ 29,963 |
Operating Segments | North America | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 103,383 | 79,493 | |
Goodwill | 1,738,360 | 1,573,088 | |
Total assets | 3,615,258 | 3,253,035 | |
Total liabilities | 402,759 | 272,776 | |
Operating Segments | International | |||
Segment Reporting Information [Line Items] | |||
Property and equipment, net | 4,146 | 3,810 | |
Goodwill | 143,660 | 38,447 | |
Total assets | 238,728 | 59,922 | |
Total liabilities | $ 45,634 | $ 18,239 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Preferred stock | ||||
Preferred stock authorized for issuance (in shares) | 2,000,000 | 2,000,000 | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Common stock | ||||
Common stock authorized for issuance (in shares) | 60,000,000 | 60,000,000 | ||
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 | ||
Equity offering | ||||
Equity offering in period, new shares (in shares) | 3,300,000 | |||
New shares issued, price per share (in dollars per share) | $ 260 | |||
Proceeds from equity offering, net of transaction costs | $ 834,000 | $ 0 | $ 0 | $ 833,911 |
Payments for underwriting expense | $ 29,000 |
NET INCOME (LOSS) PER SHARE (De
NET INCOME (LOSS) PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 87,927 | $ 78,619 | $ 63,248 | $ 85,169 | $ 83,509 | $ 58,759 | $ 43,835 | $ 52,231 | $ 314,963 | $ 238,334 | $ 122,695 |
Denominator: | |||||||||||
Denominator for basic net income (loss) per share — weighted-average outstanding shares | 36,310 | 36,058 | 33,200 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock options, restricted stock awards and restricted stock units (in shares) | 320 | 390 | 359 | ||||||||
Denominator for diluted net income (loss) per share — weighted-average outstanding shares | 36,630 | 36,448 | 33,559 | ||||||||
Net income (loss) per share — basic (in dollars per share) | $ 2.42 | $ 2.16 | $ 1.74 | $ 2.35 | $ 2.31 | $ 1.63 | $ 1.22 | $ 1.46 | $ 8.67 | $ 6.61 | $ 3.70 |
Net income (loss) per share — diluted (in dollars per share) | $ 2.39 | $ 2.15 | $ 1.73 | $ 2.33 | $ 2.29 | $ 1.61 | $ 1.20 | $ 1.44 | $ 8.60 | $ 6.54 | $ 3.66 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 42 | 100 | 126 | ||||||||
Performance-based restricted stock awards | |||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 60 | 53 | 58 |
EMPLOYEE BENEFIT PLANS (Stock I
EMPLOYEE BENEFIT PLANS (Stock Incentive Plans - Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 09, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense | $ 52,255 | $ 42,718 | $ 39,030 | |
Performance service period | 3 years | |||
CoStar Group, Inc. 2007 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant under the plan (in shares) | 0 | |||
Shares of common stock authorized for issuance under the plan (in shares) | 815,464 | |||
CoStar Group, Inc. 2007 Stock Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of options and restricted stock grants | 3 years | |||
CoStar Group, Inc. 2007 Stock Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of options and restricted stock grants | 4 years | |||
CoStar Group, Inc. 2016 Stock Incentive Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares available for future grant under the plan (in shares) | 2,000,000 | |||
Shares of common stock authorized for issuance under the plan (in shares) | 1,450,000 | |||
CoStar Group, Inc. 2016 Stock Incentive Plan | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of options and restricted stock grants | 3 years | |||
CoStar Group, Inc. 2016 Stock Incentive Plan | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of options and restricted stock grants | 4 years | |||
Management Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average-period expected to recognize the unrecognized compensation cost (in years) | 4 years | |||
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period of options and restricted stock grants | 1 year | |||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost expected to be recognized in future years | $ 82,000 | |||
Weighted-average-period expected to recognize the unrecognized compensation cost (in years) | 2 years 6 months | |||
Exercise of stock options (in shares) | 116,918 | 177,299 | 81,815 | |
Aggregate intrinsic value of options exercised | $ 40,000 | $ 45,000 | $ 13,000 | |
Weighted-average grant date fair value of each option granted during the period (in dollars per share) | $ 115.17 | $ 101.02 | $ 59.06 | |
Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 26,160 | 32,160 | ||
Performance Shares | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, award vesting rights, percentage | 80.00% | |||
Performance Shares | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based compensation arrangement, award vesting rights, percentage | 120.00% | |||
Performance-based RSAs - with Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation cost expected to be recognized in future years | $ 11,000 | |||
Compensation expense | $ 8,000 | $ 5,000 | $ 5,000 | |
Performance Based RSAs Without Market Condition | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 115,722 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Granted (in shares) | 413 |
EMPLOYEE BENEFIT PLANS (Stock O
EMPLOYEE BENEFIT PLANS (Stock Option Activity) (Details) - Stock Options - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Outstanding at beginning of period (in shares) | 344,276 | 453,843 | 440,158 |
Granted (in shares) | 48,300 | 82,500 | 95,500 |
Exercised (in shares) | (116,918) | (177,299) | (81,815) |
Canceled or expired (in shares) | (14,768) | ||
Outstanding at end of period (in shares) | 275,658 | 344,276 | 453,843 |
Exercisable at end of period (in shares) | 147,620 | 185,405 | 278,239 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted-average exercise price, outstanding at beginning of period (in dollars per share) | $ 212.28 | $ 156.24 | $ 132.08 |
Weighted-average exercise price, granted (in dollars per share) | 398.15 | 342.13 | 204.91 |
Weighted-average exercise price, exercised (in dollars per share) | 159.52 | 125.16 | 83.07 |
Weighted-average exercise price, canceled or expired (in dollars per share) | 261.20 | ||
Weighted-average exercise price, outstanding at end of period (in dollars per share) | 267.23 | 212.28 | 156.24 |
Weighted-average exercise price, exercisable at end of period (in dollars per share) | $ 210.96 | 165.31 | 130.91 |
Weighted-average remaining contract life of options outstanding at end of period | 6 years 11 months 23 days | ||
Weighted-average remaining contract life of options exercisable at end of period | 5 years 10 months 2 days | ||
Aggregate intrinsic value of options outstanding at end of period | $ 91,262 | ||
Aggregate intrinsic value of options exercisable at end of period | $ 57,180 | ||
Share Based Compensation Exercisable Range [Abstract] | |||
Granted (dollars per share) | 342.13 | 204.91 | |
Exercised (dollars per share) | $ 398.15 | ||
Minimum | |||
Share Based Compensation Exercisable Range [Abstract] | |||
Outstanding (dollars per share) | 182.75 | 36.73 | 36.48 |
Exercised (dollars per share) | 36.73 | 36.48 | |
Canceled or expired (dollars per share) | 54.51 | ||
Outstanding (dollars per share) | 54.51 | 182.75 | 36.73 |
Exercisable at end of period (dollars per share) | 54.51 | 36.73 | 36.48 |
Maximum | |||
Share Based Compensation Exercisable Range [Abstract] | |||
Outstanding (dollars per share) | 342.13 | 204.91 | 201.04 |
Exercised (dollars per share) | 204.91 | 201.04 | |
Canceled or expired (dollars per share) | 342.13 | ||
Outstanding (dollars per share) | 398.15 | 342.13 | 204.91 |
Exercisable at end of period (dollars per share) | $ 204.91 | $ 201.04 | $ 201.04 |
EMPLOYEE BENEFIT PLANS (Assumpt
EMPLOYEE BENEFIT PLANS (Assumptions) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 27.00% | 28.00% | 28.00% |
Risk-free interest rate | 2.00% | 3.00% | 2.00% |
Expected life (in years) | 5 years | 5 years | 5 years |
Performance-based RSAs - with Market Condition | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 27.00% | 28.00% | 28.00% |
Risk-free interest rate | 2.00% | 2.00% | 2.00% |
Expected life (in years) | 3 years | 3 years | 3 years |
Granted (in dollars per share) | $ 398.15 | $ 342.13 | $ 218.59 |
EMPLOYEE BENEFIT PLANS (Informa
EMPLOYEE BENEFIT PLANS (Information Regarding Stock Options) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 275,658 |
Weighted- average exercise price (in dollars per share) | $ 267.23 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 147,620 |
Weighted-average exercise price (in dollars per share) | $ 210.96 |
$102.16 - $142.45 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 102.16 |
Range of exercise price, maximum, (in dollars per share) | $ 142.45 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 3,522 |
Weighted-average remaining contractual life (in years) | 3 years 2 months 8 days |
Weighted- average exercise price (in dollars per share) | $ 102.16 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 3,522 |
Weighted-average exercise price (in dollars per share) | $ 102.16 |
$142.46 - $188.22 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 142.46 |
Range of exercise price, maximum, (in dollars per share) | $ 188.22 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 36,600 |
Weighted-average remaining contractual life (in years) | 6 years 2 months 8 days |
Weighted- average exercise price (in dollars per share) | $ 182.75 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 36,600 |
Weighted-average exercise price (in dollars per share) | $ 182.75 |
$188.23 - $197.37 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 188.23 |
Range of exercise price, maximum, (in dollars per share) | $ 197.37 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 32,200 |
Weighted-average remaining contractual life (in years) | 5 years 2 months 1 day |
Weighted- average exercise price (in dollars per share) | $ 193.69 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 32,200 |
Weighted-average exercise price (in dollars per share) | $ 193.69 |
$197.38 - $202.98 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 197.38 |
Range of exercise price, maximum, (in dollars per share) | $ 202.98 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 33,600 |
Weighted-average remaining contractual life (in years) | 4 years 1 month 28 days |
Weighted- average exercise price (in dollars per share) | $ 201.04 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 33,600 |
Weighted-average exercise price (in dollars per share) | $ 201.04 |
$202.99 - $273.52 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 202.99 |
Range of exercise price, maximum, (in dollars per share) | $ 273.52 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 52,135 |
Weighted-average remaining contractual life (in years) | 7 years 1 month 28 days |
Weighted- average exercise price (in dollars per share) | $ 204.91 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 23,066 |
Weighted-average exercise price (in dollars per share) | $ 204.91 |
$273.53 - $370.14 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 273.53 |
Range of exercise price, maximum, (in dollars per share) | $ 370.14 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 69,301 |
Weighted-average remaining contractual life (in years) | 8 years 1 month 28 days |
Weighted- average exercise price (in dollars per share) | $ 342.13 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 18,632 |
Weighted-average exercise price (in dollars per share) | $ 342.13 |
$370.15 - $398.15 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Range of exercise price, minimum, (in dollars per share) | 370.15 |
Range of exercise price, maximum, (in dollars per share) | $ 398.15 |
Share-based Payment Arrangement, Option, Exercise Price Range, End of Period [Abstract] | |
Number of shares (in shares) | shares | 48,300 |
Weighted-average remaining contractual life (in years) | 9 years 1 month 6 days |
Weighted- average exercise price (in dollars per share) | $ 398.15 |
Options Exercisable [Abstract] | |
Number of shares (in shares) | shares | 0 |
Weighted-average exercise price (in dollars per share) | $ 0 |
EMPLOYEE BENEFIT PLANS (Restric
EMPLOYEE BENEFIT PLANS (Restrictive Stock Award Activity) (Details) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Performance Based RSAs Without Market Condition | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock at beginning of period (in shares) | shares | 304,161 |
Granted (in shares) | shares | 115,722 |
Vested (in shares) | shares | (134,361) |
Canceled (in shares) | shares | (18,303) |
Unvested restricted stock at end of period (in shares) | shares | 267,219 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested restricted stock at beginning of period (in dollars per share) | $ 272.95 |
Granted (in dollars per share) | 456.51 |
Vested (in dollars per share) | 241.65 |
Canceled (in dollars per share) | 315.39 |
Unvested restricted stock at end of period (in dollars per share) | $ 365.27 |
Performance-based RSAs - with Market Condition | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock at beginning of period (in shares) | shares | 76,320 |
Vested (in shares) | shares | (23,040) |
Canceled (in shares) | shares | 0 |
Unvested restricted stock at end of period (in shares) | shares | 89,280 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested restricted stock at beginning of period (in dollars per share) | $ 193.44 |
Granted (in dollars per share) | 429.63 |
Vested (in dollars per share) | 184.97 |
Canceled (in dollars per share) | 0 |
Unvested restricted stock at end of period (in dollars per share) | $ 290.87 |
EMPLOYEE BENEFIT PLANS (Restr_2
EMPLOYEE BENEFIT PLANS (Restrictive Stock Units) (Details) - Restricted Stock Units (RSUs) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock at beginning of period (in shares) | shares | 852 |
Granted (in shares) | shares | 413 |
Vested (in shares) | shares | (411) |
Canceled (in shares) | shares | 0 |
Unvested restricted stock at end of period (in shares) | shares | 854 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested restricted stock at beginning of period (in dollars per share) | $ / shares | $ 228.86 |
Granted (in dollars per share) | $ / shares | 459.41 |
Vested (in dollars per share) | $ / shares | 221.08 |
Canceled (in dollars per share) | $ / shares | 0 |
Unvested restricted stock at end of period (in dollars per share) | $ / shares | $ 344.10 |
EMPLOYEE BENEFIT PLANS (MSU and
EMPLOYEE BENEFIT PLANS (MSU and DSU Activity) (Details) - MSPP RSUs | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract] | |
Unvested restricted stock at beginning of period (in shares) | shares | 0 |
Granted (in shares) | shares | 7,441 |
Vested (in shares) | shares | 0 |
Canceled (in shares) | shares | (275) |
Unvested restricted stock at end of period (in shares) | shares | 7,166 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Unvested restricted stock at beginning of period (in dollars per share) | $ / shares | $ 0 |
Granted (in dollars per share) | $ / shares | 469.13 |
Vested (in dollars per share) | $ / shares | 0 |
Canceled (in dollars per share) | $ / shares | 469.13 |
Unvested restricted stock at end of period (in dollars per share) | $ / shares | $ 469.13 |
EMPLOYEE BENEFIT PLANS (Employe
EMPLOYEE BENEFIT PLANS (Employee 401(k) Plan, Employee Pension Plan, Registered Retirement Savings Plan and Employee Stock Purchase Plan) (Details) - USD ($) | Sep. 15, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Maximum annual employee contribution | 4.00% | 4.00% | 4.00% | |
Company match to employee contributions | $ 12,000,000 | $ 12,000,000 | $ 10,000,000 | |
Administrative expense | $ 0 | 0 | 0 | |
Maximum percentage of employee total compensation matched by employer (in hundredths) | 100.00% | |||
Registered Retirement Savings Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Maximum annual employee contribution | 4.00% | |||
Company match to employee contributions | $ 70,000 | $ 58,000 | $ 43,000 | |
Maximum percentage of employee total compensation matched by employer (in hundredths) | 100.00% | 100.00% | 100.00% | |
Employee Stock Purchase Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Percentage of purchase price of company's common stock to the market price | 90.00% | |||
Increase in shares of common stock issued pursuant to stock plan (in shares) | 100,000 | |||
Shares available, employee stock purchase plan (in shares) | 51,584 | 65,174 | ||
Shares of Company's common stock purchased during the period (in shares) | 13,590 | 14,848 | ||
Foreign Plan | Pension Plan | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Company match to employee contributions | $ 600,000 | $ 500,000 | $ 400,000 | |
Maximum percentage of employee total compensation matched by employer (in hundredths) | 6.00% | 6.00% | 6.00% |
QUARTERLY RESULTS OF OPERATIO_3
QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Selected Quarterly Financial Information [Abstract] | |||||||||||
Revenues | $ 374,726 | $ 352,808 | $ 343,760 | $ 328,425 | $ 315,571 | $ 305,525 | $ 297,018 | $ 273,718 | $ 1,399,719 | $ 1,191,832 | $ 965,230 |
Cost of revenues | 74,996 | 71,172 | 71,918 | 71,153 | 68,248 | 72,072 | 67,136 | 62,477 | |||
Gross profit | 299,730 | 281,636 | 271,842 | 257,272 | 247,323 | 233,453 | 229,882 | 211,241 | 1,110,480 | 921,899 | 744,827 |
Operating expenses | 198,744 | 187,367 | 197,042 | 163,780 | 141,666 | 162,765 | 186,108 | 157,796 | 746,933 | 648,335 | 571,011 |
Income from operations | 100,986 | 94,269 | 74,800 | 93,492 | 105,657 | 70,688 | 43,774 | 53,445 | 363,547 | 273,564 | 173,816 |
Interest and other income | 13,801 | 5,358 | 5,913 | 4,945 | 4,607 | 3,035 | 2,652 | 2,987 | 30,017 | 13,281 | 4,044 |
Interest and other expense | (482) | (704) | (697) | (732) | (695) | (717) | (728) | (690) | (2,615) | (2,830) | (9,014) |
Loss on debt extinguishment | 0 | 0 | (3,788) | ||||||||
Income before income taxes | 114,305 | 98,923 | 80,016 | 97,705 | 109,569 | 73,006 | 45,698 | 55,742 | 390,949 | 284,015 | 165,058 |
Income tax expense | 26,378 | 20,304 | 16,768 | 12,536 | 26,060 | 14,247 | 1,863 | 3,511 | 75,986 | 45,681 | 42,363 |
Net income | $ 87,927 | $ 78,619 | $ 63,248 | $ 85,169 | $ 83,509 | $ 58,759 | $ 43,835 | $ 52,231 | $ 314,963 | $ 238,334 | $ 122,695 |
Net income (loss) per share — basic (in dollars per share) | $ 2.42 | $ 2.16 | $ 1.74 | $ 2.35 | $ 2.31 | $ 1.63 | $ 1.22 | $ 1.46 | $ 8.67 | $ 6.61 | $ 3.70 |
Net income (loss) per share — diluted (in dollars per share) | $ 2.39 | $ 2.15 | $ 1.73 | $ 2.33 | $ 2.29 | $ 1.61 | $ 1.20 | $ 1.44 | $ 8.60 | $ 6.54 | $ 3.66 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - RentPath - Subsequent Event $ in Millions | Feb. 11, 2020USD ($) |
Subsequent Event [Line Items] | |
Cash payment | $ 588 |
Contract termination fee | $ 59 |
Schedule II Valuation and Qua_2
Schedule II Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at beginning of year | $ 5,709 | $ 6,469 | $ 6,344 |
Charged to expense | 10,978 | 6,542 | 5,690 |
Write-offs, net of recoveries | 11,590 | 7,302 | 5,565 |
Balance at end of year | $ 5,097 | $ 5,709 | $ 6,469 |
Uncategorized Items - csgp20191
Label | Element | Value |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 2,705,714,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 3,033,999,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (9,020,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (11,688,000) |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 364,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 361,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 36,107,000 |
Shares, Outstanding | us-gaap_SharesOutstanding | 36,446,000 |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 2,162,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 54,464,000 |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 12,057,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 375,120,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 625,511,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,419,812,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 2,339,253,000 |