Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 18, 2020 | Jun. 30, 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 | 1-10485 | ||
Entity Registrant Name | TYLER TECHNOLOGIES, INC. | ||
Entity Central Index Key | 0000860731 | ||
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 | 75-2303920 | ||
Entity Address, Address Line One | 5101 Tennyson Parkway | ||
Entity Address, City or Town | Plano, | ||
Entity Address, State or Province | TX | ||
Entity Address, Postal Zip Code | 75024 | ||
City Area Code | 972 | ||
Local Phone Number | 713-3700 | ||
Title of 12(b) Security | COMMON STOCK, $0.01 PAR VALUE | ||
Trading Symbol | TYL | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 8,172,267 | ||
Entity Common Stock, Shares Outstanding | 39,396,000 | ||
Documents Incorporated by Reference | Certain information required by Part III of this annual report is incorporated by reference from the registrant’s definitive proxy statement for its annual meeting of stockholders to be held on May 12, 2020. |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenues: | |||
Total revenues | $ 1,086,427 | $ 935,282 | $ 840,899 |
Cost of revenues: | |||
Total cost of revenues | 569,527 | 495,704 | 441,522 |
Gross profit | 516,900 | 439,578 | 399,377 |
Selling, general and administrative expenses | 257,746 | 207,605 | 175,914 |
Research and development expense | 81,342 | 63,264 | 47,324 |
Amortization of customer and trade name intangibles | 21,445 | 16,217 | 13,381 |
Operating income | 156,367 | 152,492 | 162,758 |
Other income, net | 3,471 | 3,378 | 698 |
Income before income taxes | 159,838 | 155,870 | 163,456 |
Income tax provision (benefit) | 13,311 | 8,408 | (6,115) |
Net income | $ 146,527 | $ 147,462 | $ 169,571 |
Earnings per common share: | |||
Basic (USD per share) | $ 3.79 | $ 3.84 | $ 4.55 |
Diluted (USD per share) | $ 3.65 | $ 3.68 | $ 4.32 |
Software licenses and royalties | |||
Revenues: | |||
Total revenues | $ 100,205 | $ 93,441 | $ 86,242 |
Cost of revenues: | |||
Total cost of revenues | 3,938 | 3,802 | 3,321 |
Subscriptions | |||
Revenues: | |||
Total revenues | 296,352 | 220,547 | 172,176 |
Software services | |||
Revenues: | |||
Total revenues | 213,061 | 191,269 | 180,460 |
Maintenance | |||
Revenues: | |||
Total revenues | 430,318 | 384,521 | 359,319 |
Acquired software | |||
Cost of revenues: | |||
Total cost of revenues | 30,642 | 22,972 | 21,686 |
Software services, maintenance and subscriptions | |||
Cost of revenues: | |||
Total cost of revenues | 502,138 | 438,923 | 387,634 |
Appraisal services | |||
Revenues: | |||
Total revenues | 23,479 | 21,846 | 25,023 |
Cost of revenues: | |||
Total cost of revenues | 15,337 | 14,299 | 16,286 |
Hardware and other | |||
Revenues: | |||
Total revenues | 23,012 | 23,658 | 17,679 |
Cost of revenues: | |||
Total cost of revenues | $ 17,472 | $ 15,708 | $ 12,595 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 232,682 | $ 134,279 |
Accounts receivable (less allowance for losses and sales adjustments of $5,738 in 2019 and $4,647 in 2018) | 374,089 | 298,912 |
Short-term investments | 39,399 | 44,306 |
Prepaid expenses | 24,717 | 33,258 |
Income tax receivable | 6,482 | 4,697 |
Other current assets | 2,328 | 3,406 |
Total current assets | 679,697 | 518,858 |
Accounts receivable, long-term | 22,432 | 16,020 |
Operating lease right-of-use assets | 18,992 | |
Property and equipment, net | 171,861 | 155,177 |
Other assets: | ||
Goodwill | 840,117 | 753,718 |
Other intangibles, net | 378,914 | 276,852 |
Non-current investments and other assets | 79,601 | 70,338 |
Total assets | 2,191,614 | 1,790,963 |
Current liabilities: | ||
Accounts payable | 14,977 | 6,910 |
Accrued liabilities | 75,234 | 66,480 |
Operating lease liabilities | 6,387 | |
Deferred revenue | 412,495 | 350,512 |
Total current liabilities | 509,093 | 423,902 |
Revolving line of credit | 0 | 0 |
Deferred revenue, long-term | 199 | 424 |
Deferred income taxes | 48,442 | 41,791 |
Operating lease liabilities, long-term | 16,822 | |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $10.00 par value; 1,000,000 shares authorized; none issued | 0 | 0 |
Common stock, $0.01 par value; 100,000,000 shares authorized; 48,147,969 shares issued in 2019 and 2018 | 481 | 481 |
Additional paid-in capital | 739,478 | 731,435 |
Accumulated other comprehensive loss, net of tax | (46) | (46) |
Retained earnings | 917,336 | 771,925 |
Treasury stock, at cost; 8,839,352 and 9,872,505 shares in 2019 and 2018, respectively | (40,191) | (178,949) |
Total shareholders' equity | 1,617,058 | 1,324,846 |
Liabilities and Shareholders' equity, Total | $ 2,191,614 | $ 1,790,963 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 5,738 | $ 4,647 |
Preferred stock, par value (in dollars per share) | $ 10 | $ 10 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 100,000,000 | 100,000,000 |
Common stock, shares issued | 48,147,969 | 48,147,969 |
Treasury stock, shares | 8,839,352 | 9,872,505 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 146,527 | $ 147,462 | $ 169,571 |
Adjustments to reconcile net income to cash provided by operations: | |||
Depreciation and amortization | 76,672 | 61,759 | 53,395 |
Share-based compensation expense | 59,967 | 52,740 | 37,348 |
Provision for losses and sales adjustments - accounts receivable | 1,636 | (569) | 2,031 |
Operating lease right-of-use assets - non cash | 5,397 | ||
Deferred income tax benefit | (6,088) | (5,069) | (33,664) |
Changes in operating assets and liabilities, exclusive of effects of acquired companies: | |||
Accounts receivable | (65,738) | (50,916) | (33,091) |
Income tax receivable | (1,925) | 6,642 | (8,444) |
Prepaid expenses and other current assets | (8,976) | (588) | (6,958) |
Accounts payable | 7,403 | (2,416) | 878 |
Operating lease liabilities | (6,113) | ||
Accrued liabilities | 1,516 | (2,445) | 6,050 |
Deferred revenue | 44,442 | 43,603 | 8,639 |
Net cash provided by operating activities | 254,720 | 250,203 | 195,755 |
Cash flows from investing activities: | |||
Additions to property and equipment | (37,236) | (27,424) | (43,057) |
Purchase of marketable security investments | (54,742) | (115,625) | (59,779) |
Proceeds from marketable security investments | 70,796 | 81,205 | 28,786 |
Capitalized software development costs | (4,804) | 0 | 0 |
Cost of acquisitions, net of cash acquired | (218,734) | (178,093) | (11,344) |
(Increase) decrease in other | (295) | 1,682 | (1) |
Net cash used by investing activities | (245,015) | (238,255) | (85,395) |
Cash flows from financing activities: | |||
Decrease in net borrowings on revolving line of credit | 0 | 0 | (10,000) |
Purchase of treasury shares | (17,786) | (146,553) | (7,474) |
Proceeds from exercise of stock options | 96,908 | 74,907 | 49,845 |
Contributions from employee stock purchase plan | 9,576 | 8,051 | 7,044 |
Net cash provided (used) by financing activities | 88,698 | (63,595) | 39,415 |
Net increase (decrease) in cash and cash equivalents | 98,403 | (51,647) | 149,775 |
Cash and cash equivalents at beginning of period | 134,279 | 185,926 | 36,151 |
Cash and cash equivalents at end of period | $ 232,682 | $ 134,279 | $ 185,926 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Treasury Stock |
Balance at Dec. 31, 2016 | $ 934,541 | $ 481 | $ 556,663 | $ (46) | $ 454,892 | $ (77,449) |
Balance, shares at Dec. 31, 2016 | 48,148 | 11,382 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 169,571 | 169,571 | ||||
Issuance of shares pursuant to stock compensation plan | $ 49,845 | 28,174 | $ 21,671 | |||
Issuance of shares pursuant to stock compensation plan, shares | 1,113 | 1,113 | ||||
Stock compensation | $ 37,348 | 37,348 | ||||
Issuance of shares pursuant to employee stock purchase plan | $ 7,044 | 4,682 | $ 2,362 | |||
Issuance of shares pursuant to employee stock purchase plan, shares | 51 | 51 | ||||
Treasury stock purchases | $ (6,613) | $ (6,613) | ||||
Treasury stock purchases, shares | (44) | (44) | ||||
Balance at Dec. 31, 2017 | $ 1,191,736 | $ 481 | 626,867 | (46) | 624,463 | $ (60,029) |
Balance, shares at Dec. 31, 2017 | 48,148 | 10,262 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 147,462 | 147,462 | ||||
Issuance of shares pursuant to stock compensation plan | $ 74,907 | 44,458 | $ 30,449 | |||
Issuance of shares pursuant to stock compensation plan, shares | 1,126 | 1,126 | ||||
Stock compensation | $ 52,740 | 52,740 | ||||
Issuance of shares pursuant to employee stock purchase plan | $ 8,051 | 7,370 | $ 681 | |||
Issuance of shares pursuant to employee stock purchase plan, shares | 45 | 45 | ||||
Treasury stock purchases | $ (150,050) | $ (150,050) | ||||
Treasury stock purchases, shares | (781) | (781) | ||||
Balance at Dec. 31, 2018 | $ 1,324,846 | $ 481 | 731,435 | (46) | 771,925 | $ (178,949) |
Balance, shares at Dec. 31, 2018 | 48,148 | 9,872 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 146,527 | 146,527 | ||||
Issuance of shares pursuant to stock compensation plan | $ 96,908 | (52,833) | $ 149,741 | |||
Issuance of shares pursuant to stock compensation plan, shares | 999 | 1,075 | ||||
Employee taxes paid for withheld shares for taxes upon equity award | $ (5,361) | $ (5,361) | ||||
Employee taxes paid for withheld shares for taxes upon equity award, shares | (23) | |||||
Stock compensation | 59,967 | 59,967 | ||||
Issuance of shares pursuant to employee stock purchase plan | $ 9,576 | 909 | $ 8,667 | |||
Issuance of shares pursuant to employee stock purchase plan, shares | 53 | 53 | ||||
Treasury stock purchases | $ (14,289) | $ (14,289) | ||||
Treasury stock purchases, shares | (72) | (72) | ||||
Balance at Dec. 31, 2019 | $ 1,617,058 | $ 481 | $ 739,478 | $ (46) | $ 917,336 | $ (40,191) |
Balance, shares at Dec. 31, 2019 | 48,148 | 8,839 |
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 DESCRIPTION OF BUSINESS We provide integrated software systems and related services for the public sector, with a focus on local governments. We develop and market a broad line of software solutions and services to address the information technology (“IT”) needs primarily of cities, counties, schools and other local government entities. In addition, we provide professional IT services, including software and hardware installation, data conversion, training, and for certain customers, product modifications, along with continuing maintenance and support for customers using our systems. We also provide subscription-based services such as software as a service (“SaaS”) arrangements, which primarily utilize the Tyler private cloud, and electronic document filing solutions (“e-filing”). In addition, we provide property appraisal outsourcing services for taxing jurisdictions. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our parent company and sixteen subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions, and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). We had no items of other comprehensive income (loss) during the years ended December 31, 2019 , 2018 and 2017 . CASH AND CASH EQUIVALENTS Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value. REVENUE RECOGNITION Nature of Products and Services We earn revenue from software licenses, royalties, subscription-based services, software services, post-contract customer support (“PCS” or “maintenance”), hardware, and appraisal services. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Most of our software arrangements with customers contain multiple performance obligations that range from software licenses, installation, training, and consulting to software modification and customization to meet specific customer needs (services), hosting, and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include software services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. Revenue is recognized net of allowances for sales adjustments and any taxes collected from customers, which are subsequently remitted to governmental authorities. Software Arrangements: Software Licenses and Royalties Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to "off-the-shelf" software licenses and specified upgrades at a point in time when control of the software license transfers to the customer, unless the software is not considered distinct. We consider off-the-shelf software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the customer for the customer’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where software services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often implemented over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the customer and the remainder of the fee due over a passage of time stipulated by the contract. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and are trued up when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenues we are entitled to and billed on a quarterly basis in the quarter immediately following the royalty reporting period. Software Services As noted above, some of our software arrangements include services considered highly interdependent or highly interrelated or require significant customization to meet the customer's desired functionality. For these software arrangements, both the software licenses and related software services revenue are not distinct and are recognized over time using the progress-to-completion method. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. When software services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material basis. Post-Contract Customer Support Our customers generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred. Computer Hardware Equipment Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the customer. Subscription-Based Services: Subscription-based services consist primarily of revenues derived from SaaS arrangements, typically utilizing the Tyler private cloud, and electronic filing transactions. Revenue from subscription-based services is generally recognized over time on a ratable basis over the contract term, beginning on the date that our service is made available to the customer. Our subscription contracts are generally three to five years or longer in length, billed annually in advance, and non-cancelable. For SaaS arrangements, we evaluate whether the customer has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the customer can feasibly maintain the software on the customer’s hardware or enter into another arrangement with a third-party to host the software. We allocate contract value to each performance obligation of the arrangement that qualifies for treatment as a distinct element based on estimated SSP. We recognize SaaS arrangements services ratably over the term of the arrangement, which range from one to ten years , but are typically for a period of three to five years . For software services associated with certain SaaS arrangements, we have concluded that the services are not distinct, and we recognize the revenue ratably over the remaining contractual period once we have provided the customer access to the software. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. Electronic filing transaction fees primarily pertain to documents filed with the courts by attorneys and other third-parties via our e-filing services and retrieval of filed documents via our access services. For each document filed with a court, the filer generally pays a transaction fee and a court filing fee to us and we remit a portion of the transaction fee and the filing fee to the court. We record as revenue the transaction fee, while the portion of the transaction fee remitted to the courts is recorded as cost of revenues as we are acting as a principal in the arrangement. Court filing fees collected on behalf of the courts and remitted to the courts are recorded on a net basis and thus do not affect the statement of comprehensive income. Other transaction-based fees primary relate to online payment services, which are offered with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the factors identified in ASC 606-10-55-36 through 55-40, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the customer) and record the net amount as revenue. For e-filing transaction fees and other transaction-based revenues, we have the right to charge the customer an amount that directly corresponds with the value to the customer of our performance to date. Therefore, we recognize revenue for these services over time based on the amount billable to the customer in accordance with the 'as invoiced' practical expedient in ASC 606-10-55-18. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination and set-up costs associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the useful life. Appraisal Services: For our property appraisal projects, we recognize revenue using the progress-to-completion method since many of these projects are executed over one to three -year periods and consist of various unique activities. Appraisal services require a significant level of integration and interdependency with various individual service components; therefore, the service components are not considered distinct. Appraisal services are recognized over time by measuring progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often executed over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. Significant Judgments: Our contracts with customers often include multiple performance obligations to a customer. When a software arrangement (license or subscription) includes both software licenses and software services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the software services and recognized over time. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine SSP using the expected cost-plus margin approach. For arrangements that involve significant production, modification or customization of the software, or where software services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the customer over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred, or value added. The progress-to-completion method generally results in the recognition of reasonably consistent profit margins over the life of a contract because we can provide reasonably dependable estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit margin in the range of estimates is used until the results can be estimated more precisely. These arrangements are often implemented over an extended time period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates additional revenue for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable. Refer to Note 15 - "Disaggregation of Revenue" for further information, including the economic factors that affect the nature, amount, timing, and uncertainty of revenue and cash flows of our various revenue categories. Contract Balances: Accounts receivable and allowance for doubtful accounts and sales adjustments Timing of revenue recognition may differ from the timing of invoicing to customers. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record an unbilled receivable related to revenue recognized for on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. We maintain allowances for doubtful accounts, which are provided at the time the revenue is recognized. Since most of our customers are domestic governmental entities, we rarely incur a loss resulting from credit risk associated with the inability of a customer to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for doubtful accounts may require revision include, but are not limited to, deterioration of a customer’s financial condition, failure to manage our customer’s expectations regarding the scope of the services to be delivered, and defects or errors in new versions or enhancements of our software products. The following table summarizes the changes in the allowances for doubtful accounts and sales adjustments (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 4,647 $ 5,427 $ 3,396 Provisions for losses and sales adjustments - accounts receivable 1,636 (569 ) 2,031 Collection of accounts previously written off (545 ) (211 ) — Balance at end of year $ 5,738 $ 4,647 $ 5,427 The allowance for doubtful accounts and sales adjustments reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. In connection with our appraisal services contracts and certain software services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) property appraisal services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing normally occurs subsequently and may span another accounting period; (2) software services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (3) software revenue for which we have recognized revenue at the point in time when the software is made available to the customer but the billing has not yet been submitted to the customer; (4) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 20% retention) until final and satisfactory project completion is achieved; and (5) in a limited number of cases, extended payment terms, which may be granted to customers with whom we generally have a long-term relationship and favorable collection history. As of December 31, 2019 , and December 31, 2018 , total current and long-term accounts receivable, net of allowance for doubtful accounts, was $396.5 million and $314.9 million , respectively. We have recorded unbilled receivables of $134.0 million and $104.2 million at December 31, 2019 , and December 31, 2018 , respectively. Included in unbilled receivables are retention receivables of $13.1 million and $12.2 million at December 31, 2019 , and December 31, 2018 , respectively, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings. Unbilled receivables expected to be collected within one year have been included with accounts receivable, current portion in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with accounts receivable, long-term portion in the accompanying consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days . In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront. Deferred Revenue The majority of deferred revenue consists of deferred maintenance revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under software licensing, subscription-based services, software and appraisal services and hardware installation. Refer to Note 16 - "Deferred Revenue and Performance Obligations" for further information, including deferred revenue by segment and changes in deferred revenue during the period. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three to seven years . We utilized the "portfolio approach" practical expedient in ASC 606-10-10-4, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the 'portfolio approach', we determined the period of benefit by taking into consideration our customer contracts, our technology life-cycle and other factors. Sales commissions for renewal contracts are generally not paid in connection with the renewal of a contract. In the small number of instances where a commission is paid on a renewal, it is not commensurate with the commission paid on the initial sale and is recognized over the term of renewal, which is generally one year . Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of income. Refer to Note 17 - "Deferred Commissions" for further information. Prepaid expenses and other current assets include direct and incremental costs such as commissions associated with arrangements for which revenue recognition has been deferred. Such costs are expensed at the time the related revenue is recognized. USE OF ESTIMATES The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, determining the SSP of performance obligations, variable consideration, and other obligations such as returns and refunds; loss contingencies; the estimated useful life of deferred commissions; the carrying amount and estimated useful lives of intangible assets; the carrying amount of operating lease right-of-use assets and operating lease liabilities; determining share-based compensation expense; the valuation allowance for receivables; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates. PROPERTY AND EQUIPMENT, NET Property, equipment and purchased software are recorded at original cost and increased by the cost of any significant improvements after purchase. We expense maintenance and repairs when incurred. Depreciation and amortization is calculated using the straight-line method over the shorter of the asset’s estimated useful life or the term of the lease in the case of leasehold improvements. For income tax purposes, we use accelerated depreciation methods as allowed by tax laws. RESEARCH AND DEVELOPMENT COSTS We expensed research and development expense of $81.3 million in 2019 , $63.3 million in 2018 , and $47.3 million in 2017 . INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences". We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be "realized." On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate U.S. federal tax rate from a maximum of 35% to a flat 21% rate and transitions from a worldwide tax system to a territorial tax system. Under ASC 740 Income Taxes, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. SHARE-BASED COMPENSATION We have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three to six years of continuous service from the date of grant and have a contractual term of 10 years. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation . See Note 9 – “Share-Based Compensation” for further information. GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including identifiable intangible assets, in connection with our business combinations. Upon acquisition, goodwill is assigned to the reporting unit that is expected to benefit from the synergies of the business combination, which is the reporting unit to which the related acquired technology is assigned. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by executive management. We assess goodwill for impairment annually as of April 1st, or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying value before applying the quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, the carrying value of the reporting unit's goodwill is reduced to its fair value through an adjustment to the goodwill balance, resulting in an impairment charge. The fair values calculated in our impairment tests are determined using discounted cash flow models involving several assumptions. The assumptions that are used are based upon what we believe a hypothetical marketplace participant would use in estimating fair value. We evaluate the reasonableness of the fair value calculations of our reporting units by comparing the total of the fair value of all of our reporting units to our total market capitalization. Our annual goodwill impairment analysis, which we performed qualitatively during the second quarter of 2019 , did no t result in an impairment charge. There have been no impairments of intangible assets in any of the periods presented. See Note 4 - "Goodwill and Other Intangible Assets" for additional information. Other Intangible Assets We make judgments about the recoverability of purchased intangible assets other than goodwill whenever events or changes in circumstances indicate that an impairment may exist. Customer base and acquired software each comprise approximately half of our purchased intangible assets other than goodwill. We review our customer turnover each year for indications of impairment. Our customer turnover has historically been very low. If indications of impairment are determined to exist, we measure the recoverability of assets by a comparison of the carrying amount of the asset to the estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. There have been no impairments of intangible assets in any of the periods presented. IMPAIRMENT OF LONG-LIVED ASSETS We periodically evaluate whether current facts or circumstances indicate that the carrying value of our property and equipment or other long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset or appropriate grouping of assets and the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair valu |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS 2019 On October 30, 2019, we acquired certain assets of Courthouse Technologies, Ltd ("CHT"), an industry-leading provider of jury management systems that offers a fully integrated, end-to-end SaaS solution to manage all facets of juror management, from source list generation to juror processing and payment. The total purchase price was approximately $20.5 million of which $19.1 million was paid in cash and approximately $1.4 million was accrued for working capital and indemnity holdbacks, subject to certain post-closing adjustments. On February 28, 2019, we acquired all of the capital stock of MP Holdings Parent, Inc. dba MicroPact ("MicroPact"), a leading provider of commercial off-the-shelf ("COTS") solutions, including entellitrak®, a low-code application development platform for case management and business process management used extensively in the public sector. The total purchase price, net of cash acquired of $2.0 million , was approximately $202.2 million consisting of $198.2 million paid in cash and accrued consideration of $6.0 million contingent upon the achievement of certain financial performance objectives. We have performed a valuation analysis of the fair market value of MicroPact’s assets and liabilities. The following table summarizes the final allocation of the purchase price as of the acquisition date: (In thousands) Cash $ 1,983 Accounts receivable 10,535 Other current assets 8,979 Other noncurrent assets 10,417 Identifiable intangible assets 136,143 Goodwill 76,319 Accounts payable (602 ) Accrued expenses (4,092 ) Other noncurrent liabilities (8,879 ) Deferred revenue (13,510 ) Deferred tax liabilities, net (13,125 ) Total consideration $ 204,168 In connection with this transaction, we acquired total tangible assets of $31.9 million and assumed liabilities of approximately $27.1 million . We recorded goodwill of $76.3 million , none of which is expected to be deductible for tax purposes, and other identifiable intangible assets of approximately $136.1 million . The $136.1 million of intangible assets are attributable to customer relationships, acquired software, trade name and favorable fair value of an operating lease and will be amortized over a weighted average period of approximately 11 years . We recorded deferred tax liabilities of $13.1 million related to estimated fair value allocations. The acquisition of MicroPact augments our product solutions, positions us in new practice areas such as health and human services, and presents opportunities to expand our business across new and complementary markets. We intend to expand our total addressable market through MicroPact's strong presence in the federal market. Therefore, the goodwill of $76.3 million arising from this acquisition is primarily attributed to our ability to generate increased revenues, earnings and cash flow by expanding our addressable market and client base. In 2019 , we recorded adjustments to the preliminary opening balance sheet attributed to changes in accounts receivable, deferred revenue, customer relationships, accrued expenses, working capital holdback and related deferred taxes resulting in a net decrease to goodwill of approximately $5.7 million . The following unaudited pro forma consolidated operating results information has been prepared as if the MicroPact acquisition had occurred at January 1, 2018, after giving effect to certain adjustments, including amortization of intangibles, interest, transaction costs and tax effects. Twelve Months Ended December 31,(unaudited) 2019 2018 Revenues $ 1,098,226 $ 1,009,427 Net income 146,200 146,998 Basic earnings per share $ 3.78 $ 3.82 Diluted earnings per share $ 3.65 $ 3.66 The pro forma information above does not include acquisitions that are not considered material to our results of operations. The pro forma information does not purport to represent what our results of operations actually would have been had such transaction occurred on the date specified or to project our results of operations for any future period. On February 1, 2019, we acquired all the assets of Civic, LLC ("MyCivic"), a company that provides software solutions to connect communities. The total purchase price was $3.7 million in cash. As of December 31, 2019 , the purchase price allocations for MicroPact and MyCivic are complete. As of December 31, 2019 , the purchase price allocation for CHT is not yet complete; therefore, the preliminary valuation estimates of fair value assumed at the acquisition date for intangible assets, receivables and deferred revenue and related deferred taxes are subject to change as valuations are finalized. The operating results of all 2019 acquisitions are included with the operating results of the Enterprise Software segment since their date of acquisition. Revenues from MicroPact included in Tyler's results of operations totaled approximately $63.0 million and the net loss was approximately $98,000 from the date of acquisition through December 31, 2019 . The impact of the MyCivic and CHT acquisitions, individually and in the aggregate, on our operating results, assets and liabilities is not material. In 2019 , we incurred fees of approximately $1.1 million for financial advisory, legal, accounting, due diligence, valuation and other various services necessary to complete these acquisitions. These fees were expensed in 2019 and are included in selling, general and administrative expenses on the consolidated statement of comprehensive income. Our balance sheet as of December 31, 2019 , reflects the allocation of the purchase price to the assets acquired based on their fair value at the date of each acquisition. The fair value of the assets and liabilities acquired are based on valuations using Level III, unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. At December 31, 2019 , the maximum aggregate amount of remaining contingent cash payments associated with our acquisitions is $6.0 million and are payable in fiscal year 2020 . 2018 On December 7, 2018, we acquired certain assets and intellectual property of SceneDoc, Inc., a company that provides mobile-first, SaaS field reporting for law enforcement agencies. The total purchase price was approximately $6.2 million in cash. On October 1, 2018, we acquired all of the equity interests of TradeMaster, Inc. dba MobileEyes, a company that develops SaaS software to improve public safety by supporting fire prevention and suppression, emergency response, and structural safety. The total purchase price was approximately $5.3 million in cash. On August 31, 2018, we acquired all of the assets of CaseloadPRO, L. P., a company that provides a fully featured SaaS probation case management system. The purchase price of $9.3 million was paid in cash. On April 30, 2018, we acquired all of the capital stock of Socrata, Inc. ("Socrata"), a company that provides open data and data-as-a-service solutions including cloud-based data integration, visualization, analysis, and reporting solutions for state and local government agencies. The purchase price, net of cash acquired of $1.7 million , was $147.6 million paid in cash. On April 30, 2018, we acquired all of the equity interests of Sage Data Security, LLC , a cybersecurity company offering a suite of services that supports an entire cybersecurity lifecycle, including program development, education and training, technical testing, advisory services, and digital forensics. The total purchase price was $11.6 million paid in cash. The operating results of these acquisition are included in our results of operations of the Enterprise Software segment from their respective dates of acquisition. 2017 On November 29, 2017 , we acquired audio and digital two-way radio communications technology and related assets from Radio 10-33, LLC . The total purchase price was $1.4 million , all of which was paid in cash. On August 2, 2017 , we acquired substantially all of the assets and assumed certain liabilities of Digital Health Department, Inc. , a company that provides environmental health software, offering a SaaS solution for public health compliance and inspections processes. The total purchase price, net of debt assumed, was $3.9 million , all of which was paid in cash. On May 30, 2017 , we acquired all of the capital stock of Modria.com, Inc. , a company that specializes in online dispute resolution for government and commercial entities. The total purchase price, net of debt assumed, was $6.1 million , all of which was paid in cash. The operating results of these acquisition are included in our results of operations of the Enterprise Software segment from their respective dates of acquisition. |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | PROPERTY AND EQUIPMENT, NET Property and equipment, net consists of the following at December 31: Useful Lives (years) 2019 2018 Land — $ 18,653 $ 9,958 Building and leasehold improvements 5-39 137,448 122,241 Computer equipment and purchased software 3-5 99,435 84,649 Furniture and fixtures 5 28,506 27,238 Transportation equipment 5 402 438 284,444 244,524 Accumulated depreciation and amortization (112,583 ) (89,347 ) Property and equipment, net $ 171,861 $ 155,177 Depreciation expense was $23.4 million in 2019 , $21.2 million in 2018 , and $17.3 million in 2017 . We paid $20.8 million and $2.2 million for real estate and the expansion of existing buildings in 2019 and 2018 , respectively. In 2017 , we purchased an office building in Latham, New York for approximately $2.9 million and paid $2.1 million for improvements to that building. We also paid $19.4 million for construction to expand our office building in Yarmouth, Maine. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS | GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill for the two years ended December 31, 2019 are as follows: Enterprise Software Appraisal and Tax Total Balance as of 12/31/2017 $ 651,430 $ 6,557 $ 657,987 Goodwill acquired related to the purchase of Socrata 75,657 — 75,657 Goodwill acquired related to other acquisitions 20,074 — 20,074 Balance as of 12/31/2018 747,161 6,557 753,718 Goodwill acquired related to the purchase of MicroPact 76,319 — 76,319 Goodwill acquired related to other acquisitions 10,080 — 10,080 Balance as of 12/31/2019 $ 833,560 $ 6,557 $ 840,117 Other intangible assets and related accumulated amortization consists of the following at December 31: 2019 2018 Gross carrying amount of other intangibles: Customer related intangibles $ 321,019 $ 238,219 Acquired software 262,286 202,416 Trade names 22,905 16,905 Capitalized software development costs 4,804 — Leases acquired 5,037 3,694 616,051 461,234 Accumulated amortization (237,137 ) (184,382 ) Total other intangibles, net $ 378,914 $ 276,852 Amortization expense for acquired software and capitalized software development costs are recorded to cost of revenues. Amortization expense for customer relationships and trade names are recorded to selling, general and administrative expenses. Total amortization expense for other intangibles was $52.8 million in 2019 , $39.6 million in 2018 , and $35.5 million in 2017 . The amortization periods of other intangible assets is summarized in the following table: December 31, 2019 December 31, 2018 Gross Carrying Amount Weighted Average Amortization Period Accumulated Amortization Gross Carrying Amount Weighted Average Amortization Period Accumulated Amortization Non-amortizable intangibles: Goodwill $ 840,117 — $ — $ 753,718 — $ — Amortizable intangibles: Customer related intangibles 321,019 16 years 97,320 238,219 15 years 78,120 Acquired software 262,286 7 years 130,416 202,416 7 years 99,772 Trade names 22,905 11 years 7,205 16,905 11 years 5,139 Capitalized software development costs $ 4,804 5 years $ 296 $ — — $ — Leases acquired 5,037 9 years 1,900 3,694 10 years 1,351 Estimated annual amortization expense related to acquired leases will be recorded as a reduction to hardware and other revenue and is expected to be $525,000 in 2020 , $525,000 in 2021 , $525,000 in 2022 , $525,000 in 2023 , $525,000 in 2024 , and $512,000 thereafter . Estimated annual amortization expense related to other intangibles, including customer relationships, acquired software, trade names and capitalized software development costs is as follows: 2020 $ 54,045 2021 53,687 2022 49,989 2023 31,838 2024 31,213 Thereafter $ 155,005 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consist of the following at December 31: 2019 2018 Accrued wages, bonuses and commissions $ 49,126 $ 40,100 Other accrued liabilities 26,108 26,380 $ 75,234 $ 66,480 |
Revolving Line of Credit
Revolving Line of Credit | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
REVOLVING LINE OF CREDIT | REVOLVING LINE OF CREDIT On September 30, 2019 , we entered into a $400 million credit agreement (the “Credit Facility”) with the various lenders party thereto and Wells Fargo Bank, National Association, as Administrative Agent. The Credit Agreement provides for an unsecured revolving credit facility in an aggregate principal amount of up to $ 400.0 million , including a $25.0 million sublimit for letters of credit. The Credit Facility matures on September 30, 2024 . Borrowings under the Credit Facility may be used for general corporate purposes, including working capital requirements, acquisitions and share repurchases. Borrowings under the Credit Facility bear interest at a rate of either (1) Wells Fargo Bank’s prime rate (subject to certain higher rate determinations) plus a margin of 0.125% to 0.75% or (2) the 30, 60, 90 or 180-day LIBOR rate plus a margin of 1.125% to 1.75% . As of December 31, 2019 , our interest rate was 4.88% under the prime rate option or approximately 2.89% under the 30-day LIBOR option. The Credit Facility requires us to maintain certain financial ratios and other financial conditions and prohibits us from making certain investments, advances, cash dividends or loans, and limits incurrence of additional indebtedness and liens. As of December 31, 2019 , we were in compliance with those covenants . As of December 31, 2019 , we had no outstanding borrowings and had unused borrowing capacity of $400 million under the Credit Facility . In addition, as of December 31, 2019 , we had no outstanding letter of credit. We paid interest of $1,750,000 in 2019 , $770,000 in 2018 , and $804,000 in 2017 . |
INCOME TAX
INCOME TAX | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX The Income tax provision (benefit) on income from operations consists of the following: Years Ended December 31, 2019 2018 2017 Current: Federal $ 12,814 $ 9,110 $ 22,883 State 6,585 4,367 4,666 19,399 13,477 27,549 Deferred (6,088 ) (5,069 ) (33,664 ) $ 13,311 $ 8,408 $ (6,115 ) Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows: Years Ended December 31, 2019 2018 2017 Federal income tax expense at statutory rate $ 33,566 $ 32,733 $ 57,209 State income tax, net of federal income tax benefit 6,999 7,953 4,754 Domestic production activities deduction — — (2,617 ) Excess tax benefits related to stock option exercises (29,819 ) (32,487 ) (40,624 ) Tax Act adjustments — (1,750 ) (25,992 ) Tax credits (3,446 ) (3,715 ) (3,578 ) Non-deductible business expenses 6,011 5,655 4,573 Other, net — 19 160 $ 13,311 $ 8,408 $ (6,115 ) The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are: 2019 2018 Deferred income tax assets: Operating expenses not currently deductible $ 10,214 $ 8,989 Stock option and other employee benefit plans 19,308 19,496 Loss and credit carryforwards 23,841 17,999 Total deferred income tax assets 53,363 46,484 Valuation allowance (1,923 ) (1,049 ) Total deferred income tax assets, net of valuation allowance 51,440 45,435 Deferred income tax liabilities: Intangible assets (84,019 ) (70,752 ) Property and equipment (9,265 ) (8,455 ) Prepaid expenses (4,922 ) (4,079 ) Deferred revenue (1,676 ) (3,940 ) Total deferred income tax liabilities (99,882 ) (87,226 ) Net deferred income tax liabilities $ (48,442 ) $ (41,791 ) As of December 31, 2019 , we had federal net operating loss carryforwards of approximately $85.2 million , after-tax state net operating loss carryforwards of approximately $3.1 million , and tax credit carryforwards of approximately $4.8 million . The federal net operating loss carryforward will begin to expire in 2032 if not utilized, and a portion of the state net operating loss and tax credit carryforwards begin expiring in 2020 if not utilized. The acquired carryforwards are subject to an annual limitation but are expected to be realized with the exception of certain state net operating loss and tax credit carryforwards. The valuation allowance disclosed in the table above relates to state net operating losses and tax credit carryforwards that are likely to expire before utilization. We believe it is more likely than not that all other deferred tax assets will be realized. However, the amount of the deferred tax asset considered realizable could be adjusted in the future if estimates of reversing taxable temporary differences are revised. In connection with the acquisition of Socrata in 2018, we recorded a $1.9 million liability for an uncertain tax position associated with acquired tax credit carryforwards. The unrecognized tax benefits are included in deferred income taxes in our consolidated balance sheets. The entire amount, if recognized, would affect the effective tax rate. There was no change in the balance of unrecognized tax benefits during 2019 . Based on the information currently available, we do not anticipate a significant increase or decrease to our tax contingencies for these issues for the next 12 months. We are subject to U.S. federal income tax, as well as income tax of multiple state, local and foreign jurisdictions. We are routinely subject to income tax examinations by these taxing jurisdictions, but we do not have a history of, nor do we expect any material adjustments as a result of these examinations. With few exceptions, major U.S. federal, state, local and foreign jurisdictions are no longer subject to examination for years before 2015. As of February 19, 2020 , no significant adjustments have been proposed by any taxing jurisdiction. We paid income taxes, net of refunds received, of $21.3 million in 2019 , $6.8 million in 2018 , and $36.0 million in 2017 . |
SHAREHOLDERS_ EQUITY
SHAREHOLDERS’ EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS’ EQUITY | SHAREHOLDERS’ EQUITY The following table details activity in our common stock: Years Ended December 31, 2019 2018 2017 Shares Amount Shares Amount Shares Amount Stock option exercises 999 $ 96,908 1,126 $ 74,907 1,113 $ 49,845 Purchases of common stock (72 ) (14,289 ) (781 ) (150,050 ) (44 ) (6,613 ) Employee stock plan purchases 53 9,576 45 8,051 51 7,044 Restricted stock units vested, net of withheld shares upon award settlement 53 (5,361 ) — — — — As of February 19, 2020 , we had authorization from our board of directors to repurchase up to 2.6 million additional shares of our common stock. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION Share-Based Compensation Plan In May 2018, stockholders approved the Tyler Technologies, Inc. 2018 Stock Incentive Plan ("the 2018 Plan") which amended and restated the existing Tyler Technologies, Inc. 2010 Stock Option Plan ("the 2010 Plan"). Upon stockholder approval of the 2018 Plan, the remaining shares available for grant under the 2010 Plan were added to the shares authorized for grant under the 2018 Plan. Additionally, any awards previously granted under the 2010 Plan that expire unexercised or are forfeited are added to the shares authorized for grant under the 2018 Plan. During fiscal year 2019 , we granted stock awards under the 2018 Plan in the form of stock options, restricted stock units and performance share units. Stock options generally vest after three to six years of continuous service from the date of grant and have a contractual term of 10 years . Once options become exercisable, the employee can purchase shares of our common stock at the market price on the date we granted the option. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation . As of December 31, 2019 , there were 3.1 million shares available for future grants under the plan from the 22.9 million shares previously approved by the shareholders. Determining Fair Value of Stock Compensation Valuation and Amortization Method. We estimate the fair value of stock option awards granted using the Black-Scholes option valuation model. For restricted stock unit and performance stock unit awards, we amortize the fair value of all awards on a straight-line basis over the requisite service periods, which are generally the vesting periods. Expected Life. The expected life of awards granted represents the period of time that they are expected to be outstanding. The expected life represents the weighted-average period the stock options are expected to be outstanding based primarily on the options’ vesting terms, remaining contractual life and the employees’ expected exercise based on historical patterns. Expected Volatility. Using the Black-Scholes option valuation model, we estimate the volatility of our common stock at the date of grant based on the historical volatility of our common stock. Risk-Free Interest Rate. We base the risk-free interest rate used in the Black-Scholes option valuation model on the implied yield currently available on U.S. Treasury zero-coupon issues with an equivalent remaining term equal to the expected life of the award. Expected Dividend Yield. We have not paid any cash dividends on our common stock in more than ten years and we do not anticipate paying any cash dividends in the foreseeable future. Consequently, we use an expected dividend yield of zero in the Black-Scholes option valuation model. Expected Forfeitures. We use historical data to estimate pre-vesting option forfeitures. We record share-based compensation only for those awards that are expected to vest. The following weighted average assumptions were used for options granted: Years Ended December 31, 2019 2018 2017 Expected life (in years) 6.0 6.0 6.0 Expected volatility 26.6 % 26.7 % 28.1 % Risk-free interest rate 1.8 % 2.7 % 2.0 % Expected forfeiture rate — % — % — % Share-Based Award Activity The following table summarizes restricted stock unit and performance stock unit activity during fiscal year 2019 (shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at January 1, 2018 — $ — Granted 336 221.29 Vested — — Forfeited (2 ) 229.75 Unvested at December 31, 2018 334 221.25 Granted 256 241.19 Vested (76 ) 221.15 Forfeited (14 ) 229.75 Unvested at December 31, 2019 500 $ 231.57 Options granted, exercised, forfeited and expired are summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2016 5,156 $ 83.64 Granted 824 176.26 Exercised (1,113 ) 44.80 Forfeited (50 ) 134.83 Outstanding at December 31, 2017 4,817 107.91 Granted 432 208.21 Exercised (1,126 ) 66.53 Forfeited (31 ) 158.80 Outstanding at December 31, 2018 4,092 129.51 Granted 162 251.58 Exercised (999 ) 96.92 Forfeited (29 ) 174.54 Outstanding at December 31, 2019 3,226 $ 145.27 6 $ 499,124 Exercisable at December 31, 2019 2,067 $ 121.07 6 $ 369,938 We had unvested options to purchase 1.2 million shares with a weighted average grant date exercise price of $188.48 as of December 31, 2019 , and unvested options to purchase 1.7 million shares with a weighted average grant date exercise price of $169.24 as of December 31, 2018 . Other information pertaining to option activity was as follows during the twelve months ended December 31: 2019 2018 2017 Weighted average grant-date fair value of stock options granted $ 74.54 $ 66.52 $ 55.56 Total intrinsic value of stock options exercised $ 155,899 $ 176,716 $ 137,699 Share-Based Compensation Expense The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of comprehensive income: Years Ended December 31, 2019 2018 2017 Cost of software services, maintenance and subscriptions $ 15,002 $ 13,588 $ 9,415 Selling, general and administrative expenses 44,965 39,152 27,933 Total share-based compensation expenses 59,967 52,740 37,348 Excess tax benefit (29,819 ) (32,487 ) (40,624 ) Net decrease (increase) in net income $ 30,148 $ 20,253 $ (3,276 ) As of December 31, 2019 , we had $148.7 million of total unrecognized compensation cost related to unvested options and restricted stock units, net of expected forfeitures, which is expected to be amortized over a weighted average amortization period of 2.5 years. Employee Stock Purchase Plan Under our Employee Stock Purchase Plan (“ESPP”) participants may contribute up to 15% of their annual compensation to purchase common shares of Tyler. The purchase price of the shares is equal to 85% of the closing price of Tyler shares on the last day of each quarterly offering period. As of December 31, 2019 , there were 702,000 shares available for future issuances the ESPP from the 2.0 million shares previously approved by the stockholders. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE Basic earnings and diluted earnings per share data were computed as follows: Years Ended December 31, 2019 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 146,527 $ 147,462 $ 169,571 Denominator: Weighted-average basic common shares outstanding 38,640 38,445 37,273 Assumed conversion of dilutive securities: Stock options 1,465 1,678 1,973 Denominator for diluted earnings per share - Adjusted weighted-average shares 40,105 40,123 39,246 Earnings per common share: Basic $ 3.79 $ 3.84 $ 4.55 Diluted $ 3.65 $ 3.68 $ 4.32 Share-based awards representing the right to purchase common stock of 633,000 shares in 2019 , 888,000 shares in 2018 , and 1,343,000 shares in 2017 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
LEASES | LEASES We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire in one year to eight years . Some of these leases include options to extend for up to 10 years . We had no finance leases and no related party lease agreements as of December 31, 2019 . Operating lease costs were approximately $9.9 million in 2019 , $7.4 million in 2018 , and $6.9 million in 2017 . The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended 2019 Operating lease cost Selling, general and administrative expenses $ 6,379 Short-term lease cost Selling, general and administrative expenses 2,269 Variable lease cost Selling, general and administrative expenses 1,274 Net lease cost $ 9,922 As of December 31, 2019 , ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): December 31, 2019 Assets: Operating lease right-of-use assets $ 18,992 Liabilities: Operating leases, short-term 6,387 Operating leases, long-term 16,822 Total lease liabilities $ 23,209 Supplemental information related to leases was as follows: Other Information For the year ended 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 4 Weighted average discount rate 4.00 % As of December 31, 2019 , maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2020 $ 7,684 2021 6,246 2022 3,960 2023 2,923 2024 2,478 Thereafter 2,042 Total lease payments 25,333 Less: Interest (2,124 ) Present value of operating lease liabilities $ 23,209 As of December 31, 2018 , the future minimum lease commitments related to lease agreements under Topic 840, the predecessor of Topic 842, were as follows (in thousands): Year ending December 31, Amount 2019 $ 5,994 2020 5,146 2021 3,976 2022 1,925 2023 1,164 Thereafter 2,132 Total $ 20,337 Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2020 and 2025 , some of which have options to extend the lease for up to five years . We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants was $1.1 million in 2019 , $1.2 million in 2018 , and $1.5 million in 2017 . Rental income is included in Hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2020 $ 1,341 2021 1,372 2022 1,402 2023 1,432 2024 1,462 Thereafter 857 Total $ 7,866 As of December 31, 2019 , we had no additional significant operating or finance leases that had not yet commenced. |
LEASES | LEASES We lease office facilities for use in our operations, as well as transportation and other equipment. Most of our leases are non-cancelable operating lease agreements and they expire in one year to eight years . Some of these leases include options to extend for up to 10 years . We had no finance leases and no related party lease agreements as of December 31, 2019 . Operating lease costs were approximately $9.9 million in 2019 , $7.4 million in 2018 , and $6.9 million in 2017 . The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended 2019 Operating lease cost Selling, general and administrative expenses $ 6,379 Short-term lease cost Selling, general and administrative expenses 2,269 Variable lease cost Selling, general and administrative expenses 1,274 Net lease cost $ 9,922 As of December 31, 2019 , ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): December 31, 2019 Assets: Operating lease right-of-use assets $ 18,992 Liabilities: Operating leases, short-term 6,387 Operating leases, long-term 16,822 Total lease liabilities $ 23,209 Supplemental information related to leases was as follows: Other Information For the year ended 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 4 Weighted average discount rate 4.00 % As of December 31, 2019 , maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2020 $ 7,684 2021 6,246 2022 3,960 2023 2,923 2024 2,478 Thereafter 2,042 Total lease payments 25,333 Less: Interest (2,124 ) Present value of operating lease liabilities $ 23,209 As of December 31, 2018 , the future minimum lease commitments related to lease agreements under Topic 840, the predecessor of Topic 842, were as follows (in thousands): Year ending December 31, Amount 2019 $ 5,994 2020 5,146 2021 3,976 2022 1,925 2023 1,164 Thereafter 2,132 Total $ 20,337 Rental Income from third parties We own office buildings in Bangor, Falmouth and Yarmouth, Maine; Lubbock and Plano, Texas; Troy, Michigan; Latham, New York; and Moraine, Ohio. We lease space in some of these buildings to third-party tenants. The property we lease to others under operating leases consists primarily of specific facilities where one tenant obtains substantially all of the economic benefit from the asset and has the right to direct the use of the asset. These non-cancelable leases expire between 2020 and 2025 , some of which have options to extend the lease for up to five years . We determine if an arrangement is a lease at inception. None of our leases allow the lessee to purchase the leased asset. Rental income from third-party tenants was $1.1 million in 2019 , $1.2 million in 2018 , and $1.5 million in 2017 . Rental income is included in Hardware and other revenue on the consolidated statements of comprehensive income. Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2020 $ 1,341 2021 1,372 2022 1,402 2023 1,432 2024 1,462 Thereafter 857 Total $ 7,866 As of December 31, 2019 , we had no additional significant operating or finance leases that had not yet commenced. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS We provide a defined contribution plan for the majority of our employees meeting minimum service requirements. Eligible employees can contribute up to 30% of their current compensation to the plan subject to certain statutory limitations. We contribute up to a maximum of 3% of an employee’s compensation to the plan. We made contributions to the plan and charged operating results $11.5 million in 2019 , $9.3 million in 2018 , and $7.9 million in 2017 . |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Other than routine litigation incidental to our business, there are no material legal proceedings pending to which we are party or to which any of our properties are subject. |
SEGMENT AND RELATED INFORMATION
SEGMENT AND RELATED INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT AND RELATED INFORMATION | SEGMENT AND RELATED INFORMATION We provide integrated information management solutions and services for the public sector, with a focus on local governments. We provide our software systems and services and appraisal services through six business units, which focus on the following products: • financial management, education and planning, regulatory and maintenance software solutions; • financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions; • courts and justice and public safety software solutions; • data and insights solutions; • case management and business management solutions; and • appraisal and tax software solutions and property appraisal services. In accordance with ASC 280-10, Segment Reporting , the financial management, education and planning, regulatory and maintenance software solutions unit; financial management, municipal courts, planning, regulatory and maintenance, and land and vital records management software solutions unit; courts and justice and public safety software solutions unit; the data and insights solutions unit; and case management and business management solutions unit meet the criteria for aggregation and are presented in one reportable segment, Enterprise Software (“ES”). The ES segment provides public sector entities with software systems and services to meet their information technology and automation needs for mission-critical “back-office” functions such as: financial management and education, courts and justice, public safety, planning, regulatory and maintenance, land and vital records management, data and insights and case management and business management processes. The Appraisal and Tax (“A&T”) segment provides systems and software that automate the appraisal and assessment of real and personal property as well as property appraisal outsourcing services for local governments and taxing authorities. Property appraisal outsourcing services include: the physical inspection of commercial and residential properties; data collection and processing; computer analysis for property valuation; preparation of tax rolls; community education; and arbitration between taxpayers and the assessing jurisdiction. We evaluate performance based on several factors, of which the primary financial measure is business segment operating income. We define segment operating income for our business units as income before noncash amortization of intangible assets associated with their acquisition, interest expense and income taxes. Segment operating income includes intercompany transactions. The majority of intercompany transactions relate to contracts involving more than one unit and are valued based on the contractual arrangement. Segment operating income for corporate primarily consists of compensation costs for the executive management team and certain accounting and administrative staff and share-based compensation expense for the entire company. Corporate segment operating income also includes revenues and expenses related to a company-wide user conference. The accounting policies of the reportable segments are the same as those described in Note 1, “Summary of Significant Accounting Policies.” Segment assets include net accounts receivable, prepaid expenses and other current assets and net property and equipment. Corporate assets consist of cash and investments, prepaid insurance, intangibles associated with acquisitions, capitalized software development costs, deferred income taxes and net property and equipment mainly related to unallocated information and technology assets. ES segment capital expenditures included $12.6 million in 2019 and $2.2 million in 2018 for the expansion of existing buildings and purchases of buildings and land. A&T segment capital expenditures included $8.2 million in 2019 for the expansion of existing buildings. For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 92,567 $ 7,638 $ — $ 100,205 Subscriptions 285,092 11,260 — 296,352 Software services 185,892 27,169 — 213,061 Maintenance 405,063 25,255 — 430,318 Appraisal services — 23,479 — 23,479 Hardware and other 16,735 21 6,256 23,012 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 Depreciation and amortization expense 64,289 926 11,457 76,672 Segment operating income 261,494 20,789 (73,829 ) 208,454 Capital expenditures 19,335 8,384 10,379 38,098 Segment assets $ 834,010 $ 90,536 $ 1,267,068 $ 2,191,614 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 83,735 $ 9,706 $ — $ 93,441 Subscriptions 210,740 9,807 — 220,547 Software services 166,921 24,348 — 191,269 Maintenance 359,904 24,617 — 384,521 Appraisal services — 21,846 — 21,846 Hardware and other 18,745 32 4,881 23,658 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 Depreciation and amortization expense 50,130 914 10,715 61,759 Segment operating income 237,159 23,094 (68,572 ) 191,681 Capital expenditures 13,973 782 10,377 25,132 Segment assets $ 556,100 $ 63,670 $ 1,171,193 $ 1,790,963 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 78,388 $ 7,854 $ — $ 86,242 Subscriptions 164,317 7,859 — 172,176 Software services 161,245 19,215 — 180,460 Maintenance 337,701 21,618 — 359,319 Appraisal services — 25,023 — 25,023 Hardware and other 13,057 10 4,612 17,679 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 Depreciation and amortization expense 43,987 760 8,648 53,395 Segment operating income 229,001 20,788 (51,964 ) 197,825 Capital expenditures 28,096 1,181 16,341 45,618 Segment assets $ 365,736 $ 46,279 $ 1,199,336 $ 1,611,351 Reconciliation of reportable segment operating Years Ended December 31, income to the Company's consolidated totals: 2019 2018 2017 Total segment operating income $ 208,454 $ 191,681 $ 197,825 Amortization of acquired software (30,642 ) (22,972 ) (21,686 ) Amortization of customer and trade name intangibles (21,445 ) (16,217 ) (13,381 ) Other income (expense), net 3,471 3,378 698 Income before income taxes $ 159,838 $ 155,870 $ 163,456 |
DISAGGREGATION OF REVENUE
DISAGGREGATION OF REVENUE | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
DISAGGREGATION OF REVENUE | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 For the year ended December 31, 2017 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 69,167 $ 17,075 $ 86,242 Subscriptions — 172,176 172,176 Software services — 180,460 180,460 Maintenance — 359,319 359,319 Appraisal services — 25,023 25,023 Hardware and other 17,679 — 17,679 Total $ 86,846 $ 754,053 $ 840,899 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years . Non-recurring revenues are derived from all other revenue categories. Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 690,156 $ 36,514 $ — $ 726,670 Non-recurring revenues 295,193 58,308 6,256 359,757 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 570,645 $ 34,424 $ — $ 605,069 Non-recurring revenues 269,400 55,932 4,881 330,213 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 502,018 $ 29,477 $ — $ 531,495 Non-recurring revenues 252,690 52,102 4,612 309,404 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS Total deferred revenue, including long-term, by segment is as follows: December 31, 2019 December 31, 2018 Enterprise Software $ 386,115 $ 327,521 Appraisal and Tax 25,210 20,018 Corporate 1,369 3,397 Totals $ 412,694 $ 350,936 Changes in total deferred revenue, including long-term, were as follows: 2019 Balance at beginning of year $ 350,936 Deferral of revenue 993,109 Recognition of deferred revenue (931,351 ) Balance at end of year $ 412,694 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2019 was $1.46 billion , of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years . Deferred commissions were $29.8 million , $21.9 million , as of December 31, 2019, and 2018 respectively. Amortization expense was $17.8 million $15.6 million , $11.2 million for the twelve months ended December 31, 2019 , 2018 , and 2017 , respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. |
DEFERRED REVENUE AND PERFORMANC
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 For the year ended December 31, 2017 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 69,167 $ 17,075 $ 86,242 Subscriptions — 172,176 172,176 Software services — 180,460 180,460 Maintenance — 359,319 359,319 Appraisal services — 25,023 25,023 Hardware and other 17,679 — 17,679 Total $ 86,846 $ 754,053 $ 840,899 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years . Non-recurring revenues are derived from all other revenue categories. Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 690,156 $ 36,514 $ — $ 726,670 Non-recurring revenues 295,193 58,308 6,256 359,757 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 570,645 $ 34,424 $ — $ 605,069 Non-recurring revenues 269,400 55,932 4,881 330,213 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 502,018 $ 29,477 $ — $ 531,495 Non-recurring revenues 252,690 52,102 4,612 309,404 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS Total deferred revenue, including long-term, by segment is as follows: December 31, 2019 December 31, 2018 Enterprise Software $ 386,115 $ 327,521 Appraisal and Tax 25,210 20,018 Corporate 1,369 3,397 Totals $ 412,694 $ 350,936 Changes in total deferred revenue, including long-term, were as follows: 2019 Balance at beginning of year $ 350,936 Deferral of revenue 993,109 Recognition of deferred revenue (931,351 ) Balance at end of year $ 412,694 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2019 was $1.46 billion , of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years . Deferred commissions were $29.8 million , $21.9 million , as of December 31, 2019, and 2018 respectively. Amortization expense was $17.8 million $15.6 million , $11.2 million for the twelve months ended December 31, 2019 , 2018 , and 2017 , respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. |
DEFERRED COMMISSIONS
DEFERRED COMMISSIONS | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
DEFERRED COMMISSIONS | DISAGGREGATION OF REVENUE The tables below show disaggregation of revenue into categories that reflect how economic factors affect the nature, amount, timing, and uncertainty of revenue and cash flows. Timing of Revenue Recognition Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 For the year ended December 31, 2017 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 69,167 $ 17,075 $ 86,242 Subscriptions — 172,176 172,176 Software services — 180,460 180,460 Maintenance — 359,319 359,319 Appraisal services — 25,023 25,023 Hardware and other 17,679 — 17,679 Total $ 86,846 $ 754,053 $ 840,899 Recurring Revenue The majority of our revenue is comprised of recurring revenues from maintenance and subscriptions. Virtually all of our on-premises software clients contract with us for maintenance and support, which provides us with a significant source of recurring revenue. We generally provide maintenance and support for our on-premises clients under annual, or in some cases, multi-year contracts. The contract terms for subscription arrangements range from one to 10 years but are typically contracted for initial periods of three to five years . Non-recurring revenues are derived from all other revenue categories. Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 690,156 $ 36,514 $ — $ 726,670 Non-recurring revenues 295,193 58,308 6,256 359,757 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 570,645 $ 34,424 $ — $ 605,069 Non-recurring revenues 269,400 55,932 4,881 330,213 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 502,018 $ 29,477 $ — $ 531,495 Non-recurring revenues 252,690 52,102 4,612 309,404 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 DEFERRED REVENUE AND PERFORMANCE OBLIGATIONS Total deferred revenue, including long-term, by segment is as follows: December 31, 2019 December 31, 2018 Enterprise Software $ 386,115 $ 327,521 Appraisal and Tax 25,210 20,018 Corporate 1,369 3,397 Totals $ 412,694 $ 350,936 Changes in total deferred revenue, including long-term, were as follows: 2019 Balance at beginning of year $ 350,936 Deferral of revenue 993,109 Recognition of deferred revenue (931,351 ) Balance at end of year $ 412,694 Transaction Price Allocated to the Remaining Performance Obligations The aggregate amount of transaction price allocated to the remaining performance obligations represents contracted revenue that has not yet been recognized ("Backlog"), which includes deferred revenue and amounts that will be invoiced and recognized as revenue in future periods. Backlog as of December 31, 2019 was $1.46 billion , of which we expect to recognize approximately 49% as revenue over the next 12 months and the remainder thereafter. Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized commensurate with the recognition of associated revenue over a period of benefit that we have determined to be three to seven years . Deferred commissions were $29.8 million , $21.9 million , as of December 31, 2019, and 2018 respectively. Amortization expense was $17.8 million $15.6 million , $11.2 million for the twelve months ended December 31, 2019 , 2018 , and 2017 , respectively. There were no indicators of impairment in relation to the costs capitalized for the periods presented. Deferred commissions have been included with prepaid expenses in the accompanying consolidated balance sheets. Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of comprehensive income. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS There are no material events or transactions that have occurred subsequent to December 31, 2019 . |
QUARTERLY FINANCIAL INFORMATION
QUARTERLY FINANCIAL INFORMATION (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY FINANCIAL INFORMATION (unaudited) | QUARTERLY FINANCIAL INFORMATION (unaudited) The following table contains selected financial information from unaudited statements of income for each quarter of 2019 and 2018 : Quarters Ended 2019 2018 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 288,837 $ 275,400 $ 275,124 $ 247,066 $ 241,981 $ 236,067 $ 236,060 $ 221,174 Gross profit 142,275 130,717 127,860 116,048 115,871 111,626 109,276 102,805 Income before income taxes 47,790 40,552 36,419 35,077 40,107 38,626 37,700 39,437 Net income 46,790 40,390 31,999 27,348 31,552 38,924 39,161 37,825 Earnings per diluted share $ 1.15 $ 1.00 $ 0.80 $ 0.69 $ 0.79 $ 0.96 $ 0.97 $ 0.95 Shares used in computing diluted earnings per share 40,736 40,280 39,813 39,585 39,891 40,528 40,224 39,836 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include our parent company and sixteen subsidiaries, which are wholly-owned. All significant intercompany balances and transactions have been eliminated in consolidation. Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions, and other events and circumstances from non-owner sources and includes all components of net income (loss) and other comprehensive income (loss). We had no items of other comprehensive income (loss) during the years ended December 31, 2019 , 2018 and 2017 . |
Cash and Cash Equivalents | CASH AND CASH EQUIVALENTS Cash in excess of that necessary for operating requirements is invested in short-term, highly liquid, income-producing investments. Investments with original maturities of three months or less are classified as cash and cash equivalents, which primarily consist of cash on deposit with several banks and money market funds. Cash and cash equivalents are stated at cost, which approximates market value. |
Revenue Recognition | REVENUE RECOGNITION Nature of Products and Services We earn revenue from software licenses, royalties, subscription-based services, software services, post-contract customer support (“PCS” or “maintenance”), hardware, and appraisal services. Revenue is recognized upon transfer of control of promised products or services to customers in an amount that reflects the consideration we expect to receive in exchange for those products or services. We determine revenue recognition through the following steps: • Identification of the contract, or contracts, with a customer • Identification of the performance obligations in the contract • Determination of the transaction price • Allocation of the transaction price to the performance obligations in the contract • Recognition of revenue when, or as, we satisfy a performance obligation Most of our software arrangements with customers contain multiple performance obligations that range from software licenses, installation, training, and consulting to software modification and customization to meet specific customer needs (services), hosting, and PCS. For these contracts, we account for individual performance obligations separately when they are distinct. We evaluate whether separate performance obligations can be distinct or should be accounted for as one performance obligation. Arrangements that include software services, such as training or installation, are evaluated to determine whether those services are highly interdependent or interrelated to the product’s functionality. The transaction price is allocated to the distinct performance obligations on a relative standalone selling price (“SSP”) basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. Revenue is recognized net of allowances for sales adjustments and any taxes collected from customers, which are subsequently remitted to governmental authorities. Software Arrangements: Software Licenses and Royalties Many of our software arrangements involve “off-the-shelf” software. We recognize the revenue allocable to "off-the-shelf" software licenses and specified upgrades at a point in time when control of the software license transfers to the customer, unless the software is not considered distinct. We consider off-the-shelf software to be distinct when it can be added to an arrangement with minor changes in the underlying code, it can be used by the customer for the customer’s purpose upon installation, and remaining services such as training are not considered highly interdependent or interrelated to the product's functionality. For arrangements that involve significant production, modification or customization of the software, or where software services are otherwise not considered distinct, we recognize revenue over time by measuring progress-to-completion. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often implemented over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Software license fees are billed in accordance with the contract terms. Typically, a majority of the fee is due when access to the software license is made available to the customer and the remainder of the fee due over a passage of time stipulated by the contract. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. We recognize royalty revenue when the sale occurs under the terms of our third-party royalty arrangements. Currently, our third-party royalties are recognized on an estimated basis and are trued up when we receive notice of amounts we are entitled to receive. We typically receive notice of royalty revenues we are entitled to and billed on a quarterly basis in the quarter immediately following the royalty reporting period. Software Services As noted above, some of our software arrangements include services considered highly interdependent or highly interrelated or require significant customization to meet the customer's desired functionality. For these software arrangements, both the software licenses and related software services revenue are not distinct and are recognized over time using the progress-to-completion method. We measure progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. When software services are distinct, the fee allocable to the service element is recognized over the time we perform the services and is billed on a time and material basis. Post-Contract Customer Support Our customers generally enter into PCS agreements when they purchase our software licenses. PCS includes telephone support, bug fixes, and rights to upgrades on a when-and-if available basis. PCS is considered distinct when purchased with our software licenses. Our PCS agreements are typically renewable annually. PCS is recognized over time on a straight-line basis over the period the PCS is provided. All significant costs and expenses associated with PCS are expensed as incurred. Computer Hardware Equipment Revenue allocable to computer hardware equipment is recognized at a point in time when control of the equipment is transferred to the customer. Subscription-Based Services: Subscription-based services consist primarily of revenues derived from SaaS arrangements, typically utilizing the Tyler private cloud, and electronic filing transactions. Revenue from subscription-based services is generally recognized over time on a ratable basis over the contract term, beginning on the date that our service is made available to the customer. Our subscription contracts are generally three to five years or longer in length, billed annually in advance, and non-cancelable. For SaaS arrangements, we evaluate whether the customer has the contractual right to take possession of our software at any time during the hosting period without significant penalty and whether the customer can feasibly maintain the software on the customer’s hardware or enter into another arrangement with a third-party to host the software. We allocate contract value to each performance obligation of the arrangement that qualifies for treatment as a distinct element based on estimated SSP. We recognize SaaS arrangements services ratably over the term of the arrangement, which range from one to ten years , but are typically for a period of three to five years . For software services associated with certain SaaS arrangements, we have concluded that the services are not distinct, and we recognize the revenue ratably over the remaining contractual period once we have provided the customer access to the software. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. Electronic filing transaction fees primarily pertain to documents filed with the courts by attorneys and other third-parties via our e-filing services and retrieval of filed documents via our access services. For each document filed with a court, the filer generally pays a transaction fee and a court filing fee to us and we remit a portion of the transaction fee and the filing fee to the court. We record as revenue the transaction fee, while the portion of the transaction fee remitted to the courts is recorded as cost of revenues as we are acting as a principal in the arrangement. Court filing fees collected on behalf of the courts and remitted to the courts are recorded on a net basis and thus do not affect the statement of comprehensive income. Other transaction-based fees primary relate to online payment services, which are offered with the assistance of third-party vendors. In general, when we are the principal in a transaction based on the factors identified in ASC 606-10-55-36 through 55-40, we record the revenue and related costs on a gross basis. Otherwise, we net the cost of revenue associated with the service against the gross revenue (amount billed to the customer) and record the net amount as revenue. For e-filing transaction fees and other transaction-based revenues, we have the right to charge the customer an amount that directly corresponds with the value to the customer of our performance to date. Therefore, we recognize revenue for these services over time based on the amount billable to the customer in accordance with the 'as invoiced' practical expedient in ASC 606-10-55-18. In some cases, we are paid on a fixed fee basis and recognize the revenue ratably over the contractual period. Costs of performing services under subscription-based arrangements are expensed as incurred, except for certain direct and incremental contract origination and set-up costs associated with SaaS arrangements. Such direct and incremental costs are capitalized and amortized ratably over the useful life. Appraisal Services: For our property appraisal projects, we recognize revenue using the progress-to-completion method since many of these projects are executed over one to three -year periods and consist of various unique activities. Appraisal services require a significant level of integration and interdependency with various individual service components; therefore, the service components are not considered distinct. Appraisal services are recognized over time by measuring progress-to-completion primarily using labor hours incurred as it best depicts the transfer of control to the customer which occurs as we incur costs on our contracts. These arrangements are often executed over an extended period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Contract fees are typically billed on a milestone basis as defined within contract terms. We record amounts that have been invoiced in accounts receivable and in deferred revenue or revenues, depending on whether the revenue recognition criteria have been met. Significant Judgments: Our contracts with customers often include multiple performance obligations to a customer. When a software arrangement (license or subscription) includes both software licenses and software services, judgment is required to determine whether the software license is considered distinct and accounted for separately, or not distinct and accounted for together with the software services and recognized over time. The transaction price is allocated to the separate performance obligations on a relative SSP basis. We determine the SSP based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of our contracts, the applications sold, customer demographics, and the number and types of users within our contracts. We use a range of amounts to estimate SSP when we sell each of the products and services separately and need to determine whether there is a discount to be allocated based on the relative SSP of the various products and services. In instances where SSP is not directly observable, such as when we do not sell the product or service separately, we determine SSP using the expected cost-plus margin approach. For arrangements that involve significant production, modification or customization of the software, or where software services otherwise cannot be considered distinct, we recognize revenue as control is transferred to the customer over time using progress-to-completion methods. Depending on the contract, we measure progress-to-completion primarily using labor hours incurred, or value added. The progress-to-completion method generally results in the recognition of reasonably consistent profit margins over the life of a contract because we can provide reasonably dependable estimates of contract billings and contract costs. We use the level of profit margin that is most likely to occur on a contract. If the most likely profit margin cannot be precisely determined, the lowest probable level of profit margin in the range of estimates is used until the results can be estimated more precisely. These arrangements are often implemented over an extended time period and occasionally require us to revise total cost estimates. Amounts recognized in revenue are calculated using the progress-to-completion measurement after giving effect to any changes in our cost estimates. Changes to total estimated contract costs, if any, are recorded in the period they are determined. Estimated losses on uncompleted contracts are recorded in the period in which we first determine that a loss is apparent. Typically, the structure of our arrangements does not give rise to variable consideration. However, in those instances whereby variable consideration exists, we include in our estimates additional revenue for variable consideration when we believe we have an enforceable right, the amount can be estimated reliably and its realization is probable. Refer to Note 15 - "Disaggregation of Revenue" for further information, including the economic factors that affect the nature, amount, timing, and uncertainty of revenue and cash flows of our various revenue categories. Contract Balances: Accounts receivable and allowance for doubtful accounts and sales adjustments Timing of revenue recognition may differ from the timing of invoicing to customers. We record an unbilled receivable when revenue is recognized prior to invoicing, or deferred revenue when revenue is recognized subsequent to invoicing. For multi-year agreements, we generally invoice customers annually at the beginning of each annual coverage period. We record an unbilled receivable related to revenue recognized for on-premises licenses as we have an unconditional right to invoice and receive payment in the future related to those licenses. We maintain allowances for doubtful accounts, which are provided at the time the revenue is recognized. Since most of our customers are domestic governmental entities, we rarely incur a loss resulting from credit risk associated with the inability of a customer to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for doubtful accounts may require revision include, but are not limited to, deterioration of a customer’s financial condition, failure to manage our customer’s expectations regarding the scope of the services to be delivered, and defects or errors in new versions or enhancements of our software products. The following table summarizes the changes in the allowances for doubtful accounts and sales adjustments (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 4,647 $ 5,427 $ 3,396 Provisions for losses and sales adjustments - accounts receivable 1,636 (569 ) 2,031 Collection of accounts previously written off (545 ) (211 ) — Balance at end of year $ 5,738 $ 4,647 $ 5,427 The allowance for doubtful accounts and sales adjustments reflects our best estimate of probable losses inherent in the accounts receivable balance. We determine the allowance based on known troubled accounts, historical experience, and other currently available evidence. In connection with our appraisal services contracts and certain software services contracts, we may perform work prior to when the software and services are billable and/or payable pursuant to the contract. Unbilled revenue is not billable at the balance sheet date but is recoverable over the remaining life of the contract through billings made in accordance with contractual agreements. The termination clauses in most of our contracts provide for the payment for the value of products delivered or services performed in the event of early termination. We have historically recorded such unbilled receivables (costs and estimated profit in excess of billings) in connection with (1) property appraisal services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing normally occurs subsequently and may span another accounting period; (2) software services contracts accounted for using progress-to-completion method of revenue recognition using labor hours as a measure of progress towards completion in which the services are performed in one accounting period but the billing for the software element of the arrangement may be based upon the specific phase of the implementation; (3) software revenue for which we have recognized revenue at the point in time when the software is made available to the customer but the billing has not yet been submitted to the customer; (4) some of our contracts which provide for an amount to be withheld from a progress billing (generally between 5% and 20% retention) until final and satisfactory project completion is achieved; and (5) in a limited number of cases, extended payment terms, which may be granted to customers with whom we generally have a long-term relationship and favorable collection history. As of December 31, 2019 , and December 31, 2018 , total current and long-term accounts receivable, net of allowance for doubtful accounts, was $396.5 million and $314.9 million , respectively. We have recorded unbilled receivables of $134.0 million and $104.2 million at December 31, 2019 , and December 31, 2018 , respectively. Included in unbilled receivables are retention receivables of $13.1 million and $12.2 million at December 31, 2019 , and December 31, 2018 , respectively, which become payable upon the completion of the contract or completion of our fieldwork and formal hearings. Unbilled receivables expected to be collected within one year have been included with accounts receivable, current portion in the accompanying consolidated balance sheets. Unbilled receivables and retention receivables expected to be collected past one year have been included with accounts receivable, long-term portion in the accompanying consolidated balance sheets. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 90 days . In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined our contracts generally do not include a significant financing component. The primary purpose of our invoicing terms is to provide customers with simplified and predictable ways of purchasing our products and services, not to receive financing from our customers or to provide customers with financing. Examples include invoicing at the beginning of a subscription term with revenue recognized ratably over the contract period, and multi-year on-premises term licenses that are invoiced annually with revenue recognized upfront. Deferred Revenue The majority of deferred revenue consists of deferred maintenance revenue that has been billed based on contractual terms in the underlying arrangement, with the remaining balance consisting of payments received in advance of revenue being earned under software licensing, subscription-based services, software and appraisal services and hardware installation. Refer to Note 16 - "Deferred Revenue and Performance Obligations" for further information, including deferred revenue by segment and changes in deferred revenue during the period. Deferred Commissions Sales commissions earned by our sales force are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions for initial contracts are deferred and then amortized on a straight-line basis over a period of benefit that we have determined to be three to seven years . We utilized the "portfolio approach" practical expedient in ASC 606-10-10-4, which allows entities to apply the guidance to a portfolio of contracts with similar characteristics because the effects on the financial statements of this approach would not differ materially from applying the guidance to individual contracts. Using the 'portfolio approach', we determined the period of benefit by taking into consideration our customer contracts, our technology life-cycle and other factors. Sales commissions for renewal contracts are generally not paid in connection with the renewal of a contract. In the small number of instances where a commission is paid on a renewal, it is not commensurate with the commission paid on the initial sale and is recognized over the term of renewal, which is generally one year . Amortization expense related to deferred commissions is included in selling, general and administrative expenses in the accompanying consolidated statements of income. Refer to Note 17 - "Deferred Commissions" for further information. Prepaid expenses and other current assets include direct and incremental costs such as commissions associated with arrangements for which revenue recognition has been deferred. Such costs are expensed at the time the related revenue is recognized. |
Use of Estimates | USE OF ESTIMATES The preparation of our financial statements in conformity with accounting principles generally accepted in the United States (“GAAP”) requires us to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant items subject to such estimates and assumptions include revenue recognition, determining the nature and timing of satisfaction of performance obligations, determining the SSP of performance obligations, variable consideration, and other obligations such as returns and refunds; loss contingencies; the estimated useful life of deferred commissions; the carrying amount and estimated useful lives of intangible assets; the carrying amount of operating lease right-of-use assets and operating lease liabilities; determining share-based compensation expense; the valuation allowance for receivables; and determining the potential outcome of future tax consequences of events that have been recognized on our consolidated financial statements or tax returns. Actual results could differ from estimates. |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET |
Research and Development Costs | RESEARCH AND DEVELOPMENT COSTS We expensed research and development expense of $81.3 million in 2019 , $63.3 million in 2018 , and $47.3 million in 2017 |
Income Taxes | INCOME TAXES Income taxes are accounted for under the asset and liability method. Deferred taxes arise because of different treatment between financial statement accounting and tax accounting, known as “temporary differences". We record the tax effect of these temporary differences as “deferred tax assets” (generally items that can be used as a tax deduction or credit in the future periods) and “deferred tax liabilities” (generally items that we received a tax deduction for, which have not yet been recorded in the income statement). The deferred tax assets and liabilities are measured using enacted tax rules and laws that are expected to be in effect when the temporary differences are expected to be recovered or settled. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be "realized." On December 22, 2017, the Tax Cuts and Jobs Act (the “Tax Act”) was enacted into law. The Tax Act amends the Internal Revenue Code to reduce tax rates and modify policies, credits and deductions for individuals and businesses. For businesses, the Tax Act reduces the corporate U.S. federal tax rate from a maximum of 35% to a flat 21% rate and transitions from a worldwide tax system to a territorial tax system. Under ASC 740 Income Taxes, the effects of changes in tax rates and laws are recognized in the period in which the new legislation is enacted. |
Share-Based Compensation | SHARE-BASED COMPENSATION We have a share-based award plan that provides for the grant of stock options, restricted stock units, and performance share units to key employees, directors and non-employee consultants. Stock options generally vest after three to six years of continuous service from the date of grant and have a contractual term of 10 years. Restricted stock unit grants generally vest ratably over three to five years of continuous service from the date of grant. Each performance share unit represents the right to receive one share of our common stock based on our achievement of certain financial performance targets during applicable performance periods. We account for share-based compensation utilizing the fair value recognition pursuant to ASC 718, Stock Compensation . See Note 9 – “Share-Based Compensation” for further information. |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS Goodwill Goodwill represents the excess of the purchase price over the fair value of net assets acquired, including identifiable intangible assets, in connection with our business combinations. Upon acquisition, goodwill is assigned to the reporting unit that is expected to benefit from the synergies of the business combination, which is the reporting unit to which the related acquired technology is assigned. A reporting unit is the operating segment, or a business unit one level below that operating segment, for which discrete financial information is prepared and regularly reviewed by executive management. We assess goodwill for impairment annually as of April 1st, or more frequently whenever events or changes in circumstances indicate its carrying value may not be recoverable. We begin with the qualitative assessment of whether it is more likely than not that a reporting unit's fair value is less than its carrying value before applying the quantitative assessment described below. If it is determined through the evaluation of events or circumstances that the carrying value may not be recoverable, we perform a comparison of the estimated fair value of the reporting unit to which the goodwill has been assigned to the sum of the carrying value of the assets and liabilities of that unit. If the sum of the carrying value of the assets and liabilities of a reporting unit exceeds the estimated fair value of that reporting unit, the carrying value of the reporting unit's goodwill is reduced to its fair value through an adjustment to the goodwill balance, resulting in an impairment charge. The fair values calculated in our impairment tests are determined using discounted cash flow models involving several assumptions. The assumptions that are used are based upon what we believe a hypothetical marketplace participant would use in estimating fair value. We evaluate the reasonableness of the fair value calculations of our reporting units by comparing the total of the fair value of all of our reporting units to our total market capitalization. Our annual goodwill impairment analysis, which we performed qualitatively during the second quarter of 2019 , did no t result in an impairment charge. There have been no impairments of intangible assets in any of the periods presented. See Note 4 - "Goodwill and Other Intangible Assets" for additional information. Other Intangible Assets |
Impairment of Long-Lived Assets | IMPAIRMENT OF LONG-LIVED ASSETS We periodically evaluate whether current facts or circumstances indicate that the carrying value of our property and equipment or other long-lived assets to be held and used may not be recoverable. If such circumstances are determined to exist, we measure the recoverability of assets to be held and used by a comparison of the carrying amount of the asset or appropriate grouping of assets and the estimated undiscounted future cash flows expected to be generated by the assets. If the carrying amount of the assets exceeds their estimated future cash flows, an impairment charge is recognized for the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of would be separately presented in the balance sheet and reported at the lower of the carrying amount or fair value less costs to sell and would no longer be depreciated. The assets and liabilities of a disposed group or classified as held for sale would be presented separately in the appropriate asset and liability sections of the balance sheet. There have been no significant impairments of long-lived assets in any of the periods presented. |
Costs of Computer Software | COSTS OF COMPUTER SOFTWARE We capitalize software development costs upon the establishment of technological feasibility and prior to the availability of the product for general release to customers. Software development costs primarily consist of personnel costs and rent for related office space. We capitalized approximately $4.8 million of software development costs in 2019 . We begin to amortize capitalized costs when a product is available for general release to customers. Amortization expense is determined on a product-by-product basis at a rate not less than straight-line basis over the product’s remaining estimated economic life of, generally, five years. Amortization of software development costs was approximately $296,000 in 2019 , and is included in cost of software license revenue in the accompanying consolidated statements of comprehensive income. We have not capitalized any internal use software development costs in any of the periods presented. |
Contingent Purchase Consideration | CONTINGENT PURCHASE CONSIDERATION Contingent future cash payments related to acquisitions are recognized at fair value as of the acquisition date and included in the determination of the acquisition date purchase price. Subsequent changes in the fair value of the contingent future cash payments are recognized in earnings in the period that the change occurs. |
Fair Value of Financial Instruments | FAIR VALUE OF FINANCIAL INSTRUMENTS Cash and cash equivalents, accounts receivables, accounts payables, short-term obligations and certain other assets at cost approximate fair value because of the short maturity of these instruments. The fair value of our revolving line of credit would approximate book value as of December 31, 2019 , because our interest rates reset approximately every 30 days or less. See Note 6 – “Revolving Line of Credit” for further discussion. As of December 31, 2019 , we have $81.6 million in investment grade corporate bonds, municipal bonds and asset-backed securities with maturity dates ranging from 2020 through 2023 . We intend to hold these bonds to maturity and have classified them as such. We believe cost approximates fair value. The fair values of these securities are considered Level II as they are based on inputs from quoted prices in markets that are not active or from other observable market data. These investments are included in short-term investments and non-current investments and other assets. As of December 31, 2019 , we have $15.0 million invested in convertible preferred stock representing a 20% interest in Record Holdings Pty Limited, a privately held Australian company specializing in digitizing the spoken word in court and legal proceedings. The investment in convertible preferred stock is accounted under the cost method because we do not have the ability to exercise significant influence over the investee and the securities do not have readily determinable fair values. Our investment is carried at cost less any impairment write-downs. Our cost method investments are assessed annually for impairment. We do not reassess the fair value of cost method investments if there are no identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investments. There has been no impairment of our cost method investment for the periods presented. This investment is included in non-current investments and other assets in the accompanying consolidated balance sheets. |
Concentrations of Credit Risk | CONCENTRATIONS OF CREDIT RISK Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash and cash equivalents, accounts receivable from trade customers, and investments in marketable securities. Our cash and cash equivalents primarily consist of operating account balances and money market funds, which are maintained at several major domestic financial institutions and the balances often exceed insured amounts. As of December 31, 2019 , we had cash and cash equivalents of $232.7 million . We perform periodic evaluations of the credit standing of these financial institutions. Concentrations of credit risk with respect to receivables are limited due to the size and geographical diversity of our customer base. Historically, our credit losses have not been significant. As a result, we do not believe we have any significant concentrations of credit risk as of December 31, 2019 . We maintain allowances for doubtful accounts, which are provided at the time the revenue is recognized. Since most of our customers are domestic governmental entities, we rarely incur a loss resulting from the inability of a customer to make required payments. Events or changes in circumstances that indicate the carrying amount for the allowances for doubtful accounts may require revision include, but are not limited to, deterioration of a customer’s financial condition, failure to manage our customer’s expectations regarding the scope of the services to be delivered, and defects or errors in new versions or enhancements of our software products. |
Leases | LEASES We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and operating lease liabilities, current and long-term, on our consolidated balance sheets. We currently do not have any finance lease arrangements. Operating lease ROU assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date of the lease in determining the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our lease terms may include options to extend or terminate the lease when it is reasonably certain that we will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for as a single lease component. |
Indemnification | INDEMNIFICATION Most of our software license agreements indemnify our customers in the event that the software sold infringes upon the intellectual property rights of a third-party. These agreements typically provide that in such event we will either modify or replace the software so that it becomes non-infringing or procure for the customer the right to use the software. We have recorded no liability associated with these indemnifications, as we are not aware of any pending or threatened infringement actions that are possible losses. We believe the estimated fair value of these intellectual property indemnification clauses is minimal. We have also agreed to indemnify our officers and board members if they are named or threatened to be named as a party to any proceeding by reason of the fact that they acted in such capacity. We maintain directors’ and officers’ liability insurance coverage to protect against any such losses. We have recorded no liability associated with these indemnifications. Because of our insurance coverage, we believe the estimated fair value of these indemnification agreements is minimal. |
Reclassifications | RECLASSIFICATIONS Certain amounts for previous years have been reclassified to conform to the current year presentation. |
Recently Adopted Accounting Pronouncements and New Accounting Pronouncements | RECENTLY ADOPTED ACCOUNTING PRONOUNCEMENTS Leases. We adopted ASU No. 2016-02, Leases ("Topic 842") using the transition method that allows us to initially apply the guidance at the adoption date of January 1, 2019, and recognized a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. We used the package of practical expedients that allows us to not reassess: (1) lease classification for any expired or existing leases and (2) initial direct costs for any expired or existing leases. We did not elect to use the hindsight application for evaluating the life of the lease arrangement. The impact of adoption is reflected in the financial information herein. For additional details, see Note 11 to our consolidated financial statements. The impact of Topic 842 on our consolidated balance sheet beginning January 1, 2019, included the recognition of ROU assets and operating lease liabilities, while our accounting for finance leases remained substantially unchanged. We had no finance leases prior to the adoption of Topic 842 and continue to have none as of December 31, 2019 . NEW ACCOUNTING PRONOUNCEMENTS In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses, |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | The following table summarizes the changes in the allowances for doubtful accounts and sales adjustments (in thousands): Years Ended December 31, 2019 2018 2017 Balance at beginning of year $ 4,647 $ 5,427 $ 3,396 Provisions for losses and sales adjustments - accounts receivable 1,636 (569 ) 2,031 Collection of accounts previously written off (545 ) (211 ) — Balance at end of year $ 5,738 $ 4,647 $ 5,427 |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | Amounts recognized at January 1, 2019, for operating leases were as follow (in thousands): Operating lease right-of-use assets $ 15,633 Operating lease liabilities (4,344 ) Operating lease liabilities, long-term (12,405 ) Retained earnings $ (1,116 ) |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Schedule of the allocation of the purchase price as of the acquisition date | We have performed a valuation analysis of the fair market value of MicroPact’s assets and liabilities. The following table summarizes the final allocation of the purchase price as of the acquisition date: (In thousands) Cash $ 1,983 Accounts receivable 10,535 Other current assets 8,979 Other noncurrent assets 10,417 Identifiable intangible assets 136,143 Goodwill 76,319 Accounts payable (602 ) Accrued expenses (4,092 ) Other noncurrent liabilities (8,879 ) Deferred revenue (13,510 ) Deferred tax liabilities, net (13,125 ) Total consideration $ 204,168 |
Schedule of pro forma information | The following unaudited pro forma consolidated operating results information has been prepared as if the MicroPact acquisition had occurred at January 1, 2018, after giving effect to certain adjustments, including amortization of intangibles, interest, transaction costs and tax effects. Twelve Months Ended December 31,(unaudited) 2019 2018 Revenues $ 1,098,226 $ 1,009,427 Net income 146,200 146,998 Basic earnings per share $ 3.78 $ 3.82 Diluted earnings per share $ 3.65 $ 3.66 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Summary of Property and Equipment, Net | Property and equipment, net consists of the following at December 31: Useful Lives (years) 2019 2018 Land — $ 18,653 $ 9,958 Building and leasehold improvements 5-39 137,448 122,241 Computer equipment and purchased software 3-5 99,435 84,649 Furniture and fixtures 5 28,506 27,238 Transportation equipment 5 402 438 284,444 244,524 Accumulated depreciation and amortization (112,583 ) (89,347 ) Property and equipment, net $ 171,861 $ 155,177 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Changes in Carrying Amount of Goodwill | The changes in the carrying amount of goodwill for the two years ended December 31, 2019 are as follows: Enterprise Software Appraisal and Tax Total Balance as of 12/31/2017 $ 651,430 $ 6,557 $ 657,987 Goodwill acquired related to the purchase of Socrata 75,657 — 75,657 Goodwill acquired related to other acquisitions 20,074 — 20,074 Balance as of 12/31/2018 747,161 6,557 753,718 Goodwill acquired related to the purchase of MicroPact 76,319 — 76,319 Goodwill acquired related to other acquisitions 10,080 — 10,080 Balance as of 12/31/2019 $ 833,560 $ 6,557 $ 840,117 |
Summary of Other Intangible Assets and Related Accumulated Amortization | Other intangible assets and related accumulated amortization consists of the following at December 31: 2019 2018 Gross carrying amount of other intangibles: Customer related intangibles $ 321,019 $ 238,219 Acquired software 262,286 202,416 Trade names 22,905 16,905 Capitalized software development costs 4,804 — Leases acquired 5,037 3,694 616,051 461,234 Accumulated amortization (237,137 ) (184,382 ) Total other intangibles, net $ 378,914 $ 276,852 |
Summary of Allocation of Acquisition Intangible Assets | : December 31, 2019 December 31, 2018 Gross Carrying Amount Weighted Average Amortization Period Accumulated Amortization Gross Carrying Amount Weighted Average Amortization Period Accumulated Amortization Non-amortizable intangibles: Goodwill $ 840,117 — $ — $ 753,718 — $ — Amortizable intangibles: Customer related intangibles 321,019 16 years 97,320 238,219 15 years 78,120 Acquired software 262,286 7 years 130,416 202,416 7 years 99,772 Trade names 22,905 11 years 7,205 16,905 11 years 5,139 Capitalized software development costs $ 4,804 5 years $ 296 $ — — $ — Leases acquired 5,037 9 years 1,900 3,694 10 years 1,351 |
Summary of Estimated Annual Amortization Expense | Estimated annual amortization expense related to other intangibles, including customer relationships, acquired software, trade names and capitalized software development costs is as follows: 2020 $ 54,045 2021 53,687 2022 49,989 2023 31,838 2024 31,213 Thereafter $ 155,005 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accrued Liabilities, Current [Abstract] | |
Summary of Accrued Liabilities | Accrued liabilities consist of the following at December 31: 2019 2018 Accrued wages, bonuses and commissions $ 49,126 $ 40,100 Other accrued liabilities 26,108 26,380 $ 75,234 $ 66,480 |
Income Tax (Tables)
Income Tax (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Provision (Benefit) on Income from Operations | The Income tax provision (benefit) on income from operations consists of the following: Years Ended December 31, 2019 2018 2017 Current: Federal $ 12,814 $ 9,110 $ 22,883 State 6,585 4,367 4,666 19,399 13,477 27,549 Deferred (6,088 ) (5,069 ) (33,664 ) $ 13,311 $ 8,408 $ (6,115 ) |
Reconciliation of U.S. Statutory Income Tax Rate to Effective Income Tax Expense Rate | Reconciliation of the U.S. statutory income tax rate to our effective income tax expense rate for operations follows: Years Ended December 31, 2019 2018 2017 Federal income tax expense at statutory rate $ 33,566 $ 32,733 $ 57,209 State income tax, net of federal income tax benefit 6,999 7,953 4,754 Domestic production activities deduction — — (2,617 ) Excess tax benefits related to stock option exercises (29,819 ) (32,487 ) (40,624 ) Tax Act adjustments — (1,750 ) (25,992 ) Tax credits (3,446 ) (3,715 ) (3,578 ) Non-deductible business expenses 6,011 5,655 4,573 Other, net — 19 160 $ 13,311 $ 8,408 $ (6,115 ) |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of the major items recorded as deferred tax assets and liabilities as of December 31 are: 2019 2018 Deferred income tax assets: Operating expenses not currently deductible $ 10,214 $ 8,989 Stock option and other employee benefit plans 19,308 19,496 Loss and credit carryforwards 23,841 17,999 Total deferred income tax assets 53,363 46,484 Valuation allowance (1,923 ) (1,049 ) Total deferred income tax assets, net of valuation allowance 51,440 45,435 Deferred income tax liabilities: Intangible assets (84,019 ) (70,752 ) Property and equipment (9,265 ) (8,455 ) Prepaid expenses (4,922 ) (4,079 ) Deferred revenue (1,676 ) (3,940 ) Total deferred income tax liabilities (99,882 ) (87,226 ) Net deferred income tax liabilities $ (48,442 ) $ (41,791 ) |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Summary of Activities in Common Stock | The following table details activity in our common stock: Years Ended December 31, 2019 2018 2017 Shares Amount Shares Amount Shares Amount Stock option exercises 999 $ 96,908 1,126 $ 74,907 1,113 $ 49,845 Purchases of common stock (72 ) (14,289 ) (781 ) (150,050 ) (44 ) (6,613 ) Employee stock plan purchases 53 9,576 45 8,051 51 7,044 Restricted stock units vested, net of withheld shares upon award settlement 53 (5,361 ) — — — — |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Weighted Average Assumptions Used for Options Granted | The following weighted average assumptions were used for options granted: Years Ended December 31, 2019 2018 2017 Expected life (in years) 6.0 6.0 6.0 Expected volatility 26.6 % 26.7 % 28.1 % Risk-free interest rate 1.8 % 2.7 % 2.0 % Expected forfeiture rate — % — % — % |
Summarizes Restricted Stock Unit and Performance Share Activity | The following table summarizes restricted stock unit and performance stock unit activity during fiscal year 2019 (shares in thousands): Number of Shares Weighted Average Grant Date Fair Value per Share Unvested at January 1, 2018 — $ — Granted 336 221.29 Vested — — Forfeited (2 ) 229.75 Unvested at December 31, 2018 334 221.25 Granted 256 241.19 Vested (76 ) 221.15 Forfeited (14 ) 229.75 Unvested at December 31, 2019 500 $ 231.57 |
Stock Option Activity | Other information pertaining to option activity was as follows during the twelve months ended December 31: 2019 2018 2017 Weighted average grant-date fair value of stock options granted $ 74.54 $ 66.52 $ 55.56 Total intrinsic value of stock options exercised $ 155,899 $ 176,716 $ 137,699 Options granted, exercised, forfeited and expired are summarized as follows: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding at December 31, 2016 5,156 $ 83.64 Granted 824 176.26 Exercised (1,113 ) 44.80 Forfeited (50 ) 134.83 Outstanding at December 31, 2017 4,817 107.91 Granted 432 208.21 Exercised (1,126 ) 66.53 Forfeited (31 ) 158.80 Outstanding at December 31, 2018 4,092 129.51 Granted 162 251.58 Exercised (999 ) 96.92 Forfeited (29 ) 174.54 Outstanding at December 31, 2019 3,226 $ 145.27 6 $ 499,124 Exercisable at December 31, 2019 2,067 $ 121.07 6 $ 369,938 |
Summary of Share-Based Compensation Expense Related to Share-Based Awards | The following table summarizes share-based compensation expense related to share-based awards which is recorded in the consolidated statements of comprehensive income: Years Ended December 31, 2019 2018 2017 Cost of software services, maintenance and subscriptions $ 15,002 $ 13,588 $ 9,415 Selling, general and administrative expenses 44,965 39,152 27,933 Total share-based compensation expenses 59,967 52,740 37,348 Excess tax benefit (29,819 ) (32,487 ) (40,624 ) Net decrease (increase) in net income $ 30,148 $ 20,253 $ (3,276 ) |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Computation of Basic Earnings and Diluted Earnings Per Share Data | Basic earnings and diluted earnings per share data were computed as follows: Years Ended December 31, 2019 2018 2017 Numerator for basic and diluted earnings per share: Net income $ 146,527 $ 147,462 $ 169,571 Denominator: Weighted-average basic common shares outstanding 38,640 38,445 37,273 Assumed conversion of dilutive securities: Stock options 1,465 1,678 1,973 Denominator for diluted earnings per share - Adjusted weighted-average shares 40,105 40,123 39,246 Earnings per common share: Basic $ 3.79 $ 3.84 $ 4.55 Diluted $ 3.65 $ 3.68 $ 4.32 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of lease cost | Supplemental information related to leases was as follows: Other Information For the year ended 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 4 Weighted average discount rate 4.00 % The components of operating lease expense were as follows (in thousands): Lease Costs Financial Statement Classification For the year ended 2019 Operating lease cost Selling, general and administrative expenses $ 6,379 Short-term lease cost Selling, general and administrative expenses 2,269 Variable lease cost Selling, general and administrative expenses 1,274 Net lease cost $ 9,922 |
Schedule of leases assets and liabilities | As of December 31, 2019 , ROU lease assets and lease liabilities for our operating leases were recorded in the consolidated balance sheet as follows (in thousands): December 31, 2019 Assets: Operating lease right-of-use assets $ 18,992 Liabilities: Operating leases, short-term 6,387 Operating leases, long-term 16,822 Total lease liabilities $ 23,209 |
Schedule of supplemental information related to leases | Supplemental information related to leases was as follows: Other Information For the year ended 2019 Cash Flows (in thousands): Cash paid amounts included in the measurement of lease liabilities: Operating cash outflows from operating leases $ 7,267 Right-of-use assets obtained in exchange for lease obligations (non-cash): Operating leases $ 3,466 Lease Term and Discount Rate: Weighted average remaining lease term (years) 4 Weighted average discount rate 4.00 % |
Schedule of operating lease maturity | As of December 31, 2019 , maturities of lease liabilities were as follows (in thousands): Year ending December 31, Amount 2020 $ 7,684 2021 6,246 2022 3,960 2023 2,923 2024 2,478 Thereafter 2,042 Total lease payments 25,333 Less: Interest (2,124 ) Present value of operating lease liabilities $ 23,209 |
Schedule of future minimum lease commitments related to lease agreements under Topic 840 | As of December 31, 2018 , the future minimum lease commitments related to lease agreements under Topic 840, the predecessor of Topic 842, were as follows (in thousands): Year ending December 31, Amount 2019 $ 5,994 2020 5,146 2021 3,976 2022 1,925 2023 1,164 Thereafter 2,132 Total $ 20,337 |
Schedule of future minimum operating rental income | Future minimum operating rental income based on contractual agreements is as follows (in thousands): Year ending December 31, Amount 2020 $ 1,341 2021 1,372 2022 1,402 2023 1,432 2024 1,462 Thereafter 857 Total $ 7,866 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Segment Revenues and Operations | For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 92,567 $ 7,638 $ — $ 100,205 Subscriptions 285,092 11,260 — 296,352 Software services 185,892 27,169 — 213,061 Maintenance 405,063 25,255 — 430,318 Appraisal services — 23,479 — 23,479 Hardware and other 16,735 21 6,256 23,012 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 Depreciation and amortization expense 64,289 926 11,457 76,672 Segment operating income 261,494 20,789 (73,829 ) 208,454 Capital expenditures 19,335 8,384 10,379 38,098 Segment assets $ 834,010 $ 90,536 $ 1,267,068 $ 2,191,614 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 83,735 $ 9,706 $ — $ 93,441 Subscriptions 210,740 9,807 — 220,547 Software services 166,921 24,348 — 191,269 Maintenance 359,904 24,617 — 384,521 Appraisal services — 21,846 — 21,846 Hardware and other 18,745 32 4,881 23,658 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 Depreciation and amortization expense 50,130 914 10,715 61,759 Segment operating income 237,159 23,094 (68,572 ) 191,681 Capital expenditures 13,973 782 10,377 25,132 Segment assets $ 556,100 $ 63,670 $ 1,171,193 $ 1,790,963 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Revenues Software licenses and royalties $ 78,388 $ 7,854 $ — $ 86,242 Subscriptions 164,317 7,859 — 172,176 Software services 161,245 19,215 — 180,460 Maintenance 337,701 21,618 — 359,319 Appraisal services — 25,023 — 25,023 Hardware and other 13,057 10 4,612 17,679 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 Depreciation and amortization expense 43,987 760 8,648 53,395 Segment operating income 229,001 20,788 (51,964 ) 197,825 Capital expenditures 28,096 1,181 16,341 45,618 Segment assets $ 365,736 $ 46,279 $ 1,199,336 $ 1,611,351 |
Reconciliation of Operating Income from Segments to Consolidated | Reconciliation of reportable segment operating Years Ended December 31, income to the Company's consolidated totals: 2019 2018 2017 Total segment operating income $ 208,454 $ 191,681 $ 197,825 Amortization of acquired software (30,642 ) (22,972 ) (21,686 ) Amortization of customer and trade name intangibles (21,445 ) (16,217 ) (13,381 ) Other income (expense), net 3,471 3,378 698 Income before income taxes $ 159,838 $ 155,870 $ 163,456 |
Disaggregation of Revenue (Tabl
Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregation of revenue | Timing of revenue recognition by revenue category during the period is as follows: For the year ended December 31, 2019 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 84,900 $ 15,305 $ 100,205 Subscriptions — 296,352 296,352 Software services — 213,061 213,061 Maintenance — 430,318 430,318 Appraisal services — 23,479 23,479 Hardware and other 23,012 — 23,012 Total $ 107,912 $ 978,515 $ 1,086,427 For the year ended December 31, 2018 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 75,188 $ 18,253 $ 93,441 Subscriptions — 220,547 220,547 Software services — 191,269 191,269 Maintenance — 384,521 384,521 Appraisal services — 21,846 21,846 Hardware and other 23,658 — 23,658 Total $ 98,846 $ 836,436 $ 935,282 For the year ended December 31, 2017 Products and services transferred at a point in time Products and services transferred over time Total Revenues: Software licenses and royalties $ 69,167 $ 17,075 $ 86,242 Subscriptions — 172,176 172,176 Software services — 180,460 180,460 Maintenance — 359,319 359,319 Appraisal services — 25,023 25,023 Hardware and other 17,679 — 17,679 Total $ 86,846 $ 754,053 $ 840,899 Recurring revenues and non-recurring revenues recognized during the period are as follows: For the year ended December 31, 2019 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 690,156 $ 36,514 $ — $ 726,670 Non-recurring revenues 295,193 58,308 6,256 359,757 Intercompany 15,496 — (15,496 ) — Total revenues $ 1,000,845 $ 94,822 $ (9,240 ) $ 1,086,427 For the year ended December 31, 2018 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 570,645 $ 34,424 $ — $ 605,069 Non-recurring revenues 269,400 55,932 4,881 330,213 Intercompany 13,155 — (13,155 ) — Total revenues $ 853,200 $ 90,356 $ (8,274 ) $ 935,282 For the year ended December 31, 2017 Enterprise Software Appraisal and Tax Corporate Totals Recurring revenues $ 502,018 $ 29,477 $ — $ 531,495 Non-recurring revenues 252,690 52,102 4,612 309,404 Intercompany 10,425 — (10,425 ) — Total revenues $ 765,133 $ 81,579 $ (5,813 ) $ 840,899 |
Deferred Revenue and Performa_2
Deferred Revenue and Performance Obligations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Changes in deferred revenue | Total deferred revenue, including long-term, by segment is as follows: December 31, 2019 December 31, 2018 Enterprise Software $ 386,115 $ 327,521 Appraisal and Tax 25,210 20,018 Corporate 1,369 3,397 Totals $ 412,694 $ 350,936 Changes in total deferred revenue, including long-term, were as follows: 2019 Balance at beginning of year $ 350,936 Deferral of revenue 993,109 Recognition of deferred revenue (931,351 ) Balance at end of year $ 412,694 |
Quarterly Financial Informati_2
Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | The following table contains selected financial information from unaudited statements of income for each quarter of 2019 and 2018 : Quarters Ended 2019 2018 Dec. 31 Sept. 30 June 30 Mar. 31 Dec. 31 Sept. 30 June 30 Mar. 31 Revenues $ 288,837 $ 275,400 $ 275,124 $ 247,066 $ 241,981 $ 236,067 $ 236,060 $ 221,174 Gross profit 142,275 130,717 127,860 116,048 115,871 111,626 109,276 102,805 Income before income taxes 47,790 40,552 36,419 35,077 40,107 38,626 37,700 39,437 Net income 46,790 40,390 31,999 27,348 31,552 38,924 39,161 37,825 Earnings per diluted share $ 1.15 $ 1.00 $ 0.80 $ 0.69 $ 0.79 $ 0.96 $ 0.97 $ 0.95 Shares used in computing diluted earnings per share 40,736 40,280 39,813 39,585 39,891 40,528 40,224 39,836 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Jun. 30, 2019USD ($) | Sep. 30, 2018 | Dec. 31, 2019USD ($)subsidiary | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
Accounting Policies [Line Items] | ||||||
Goodwill impairment | $ 0 | |||||
Number of wholly-owned subsidiaries | subsidiary | 16 | |||||
Accounts receivable, net | $ 396,500,000 | $ 314,900,000 | ||||
Sales commission, renewal period | 1 year | |||||
Research and development expense | $ 81,342,000 | 63,264,000 | $ 47,324,000 | |||
Impairments of intangible assets | 0 | 0 | 0 | |||
Impairments of long-lived assets | 0 | 0 | 0 | |||
Capitalized post acquisition software development costs | $ 4,800,000 | |||||
Remaining estimated economic life | 5 years | |||||
Amortization of software development costs | $ 296,000 | |||||
Purchase of held to maturity securities | 81,600,000 | |||||
Cost-method investment impairment | 0 | 0 | 0 | |||
Cash and cash equivalents | 232,682,000 | 134,279,000 | $ 185,926,000 | $ 36,151,000 | ||
Convertible Preferred Stock | Record Holdings Pty Limited | ||||||
Accounting Policies [Line Items] | ||||||
Cost method investment | $ 15,000,000 | |||||
Investment percentage | 20.00% | |||||
Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Typical contract term | 3 years | |||||
Contract term | 1 year | |||||
Progress billing retention percentage | 5.00% | |||||
Payment term | 30 days | |||||
Sales commissions amortization period | 3 years | |||||
Vesting period | 3 years | |||||
Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Typical contract term | 5 years | |||||
Contract term | 10 years | |||||
Progress billing retention percentage | 20.00% | |||||
Payment term | 90 days | |||||
Sales commissions amortization period | 7 years | |||||
Vesting period | 6 years | |||||
Stock Option Plan | ||||||
Accounting Policies [Line Items] | ||||||
Contractual term | 10 years | |||||
Stock Option Plan | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Vesting period | 3 years | |||||
Stock Option Plan | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Vesting period | 6 years | |||||
Restricted Stock Units (RSUs) | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Vesting period | 3 years | |||||
Restricted Stock Units (RSUs) | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Vesting period | 5 years | |||||
Unbilled Revenues | ||||||
Accounting Policies [Line Items] | ||||||
Accounts receivable, net | $ 134,000,000 | 104,200,000 | ||||
Unbilled Revenues | Retention Receivable | ||||||
Accounting Policies [Line Items] | ||||||
Accounts receivable, net | $ 13,100,000 | $ 12,200,000 | ||||
SaaS arrangements services | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Typical contract term | 3 years | |||||
Contract term | 1 year | |||||
SaaS arrangements services | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Typical contract term | 5 years | |||||
Contract term | 10 years | |||||
Appraisal services | Minimum | ||||||
Accounting Policies [Line Items] | ||||||
Contract term | 1 year | |||||
Appraisal services | Maximum | ||||||
Accounting Policies [Line Items] | ||||||
Contract term | 3 years |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Allowances for Doubtful Accounts and Sales Adjustments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of year | $ 4,647 | $ 5,427 | $ 3,396 |
Provisions for losses and sales adjustments - accounts receivable | 1,636 | (569) | 2,031 |
Collection of accounts previously written off | (545) | (211) | 0 |
Balance at end of year | 4,647 | $ 5,427 | |
Accounts receivable, allowance for losses | $ 5,738 | $ 4,647 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of New Accounting Pronouncements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 18,992 | ||
Operating lease liabilities | (6,387) | ||
Operating lease liabilities, long-term | (16,822) | ||
Retained earnings | $ (917,336) | $ (771,925) | |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 15,633 | ||
Operating lease liabilities | (4,344) | ||
Operating lease liabilities, long-term | (12,405) | ||
Retained earnings | $ (1,116) |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Detail) - USD ($) $ in Thousands | Oct. 30, 2019 | Feb. 28, 2019 | Feb. 01, 2019 | Dec. 07, 2018 | Oct. 01, 2018 | Aug. 31, 2018 | Apr. 30, 2018 | Nov. 29, 2017 | Aug. 02, 2017 | May 30, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | |||||||||||||
Contingent consideration | $ 6,000 | ||||||||||||
Goodwill | 840,117 | $ 753,718 | $ 657,987 | ||||||||||
Courthouse Technologies, Ltd | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price to acquire business | $ 20,500 | ||||||||||||
Cash to acquire business | 19,100 | ||||||||||||
Accrued purchase price | $ 1,400 | ||||||||||||
MicroPact | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price to acquire business | $ 202,200 | ||||||||||||
Cash to acquire business | 198,200 | ||||||||||||
Net cash acquired | 1,983 | ||||||||||||
Contingent consideration | 6,000 | ||||||||||||
Tangible assets acquired | 31,900 | ||||||||||||
Liabilities assumed | 27,100 | ||||||||||||
Goodwill | 76,319 | ||||||||||||
Identifiable intangible assets | $ 136,143 | ||||||||||||
Weighted average useful life (in years) | 11 years | ||||||||||||
Deferred tax liabilities, net | $ (13,125) | ||||||||||||
Business acquisition consideration adjustment | 5,700 | ||||||||||||
Loss of acquiree, actual | (98) | ||||||||||||
Revenue of acquiree, actual | 63,000 | ||||||||||||
MyCivic | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 3,700 | ||||||||||||
MicroPact And MyCivic | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition related fees | $ 1,100 | ||||||||||||
SceneDoc. Inc | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price to acquire business | $ 6,200 | ||||||||||||
TradeMaster Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price to acquire business | $ 5,300 | ||||||||||||
CaseloadPRO, LP | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 9,300 | ||||||||||||
Socrata, Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 147,600 | ||||||||||||
Net cash acquired | 1,700 | ||||||||||||
Sage Data Security, LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Total purchase price to acquire business | $ 11,600 | ||||||||||||
Radio 1033, LLC | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 1,400 | ||||||||||||
Digital Health Department, Inc. | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 3,900 | ||||||||||||
Modria.com | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Cash to acquire business | $ 6,100 |
Acquisitions - Assets and Liabi
Acquisitions - Assets and Liabilities Acquired (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Feb. 28, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 840,117 | $ 753,718 | $ 657,987 | |
MicroPact | ||||
Business Acquisition [Line Items] | ||||
Cash | $ 1,983 | |||
Accounts receivable | 10,535 | |||
Other current assets | 8,979 | |||
Other noncurrent assets | 10,417 | |||
Identifiable intangible assets | 136,143 | |||
Goodwill | 76,319 | |||
Accounts payable | (602) | |||
Accrued expenses | (4,092) | |||
Other noncurrent liabilities | (8,879) | |||
Deferred revenue | (13,510) | |||
Deferred tax liabilities, net | (13,125) | |||
Total consideration | $ 204,168 |
Acquisitions - Pro-forma Inform
Acquisitions - Pro-forma Information (Details) - MicroPact - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Revenues | $ 1,098,226 | $ 1,009,427 |
Net income | $ 146,200 | $ 146,998 |
Basic earnings per share (usd per share) | $ 3.78 | $ 3.82 |
Diluted earnings per share (usd per share) | $ 3.65 | $ 3.66 |
Property and Equipment, Net - S
Property and Equipment, Net - Summary of Property and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 284,444 | $ 244,524 |
Accumulated depreciation and amortization | (112,583) | (89,347) |
Property and equipment, net | 171,861 | 155,177 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 18,653 | 9,958 |
Building and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 137,448 | 122,241 |
Building and leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 5 years | |
Building and leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 39 years | |
Computer equipment and purchased software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 99,435 | 84,649 |
Computer equipment and purchased software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 3 years | |
Computer equipment and purchased software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 5 years | |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 28,506 | 27,238 |
Furniture and fixtures | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 5 years | |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 402 | $ 438 |
Transportation equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Useful lives | 5 years |
Property and Equipment, Net - A
Property and Equipment, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 23.4 | $ 21.2 | $ 17.3 |
Payment for construction to expand building | $ 20.8 | $ 2.2 | |
Latham, New York | |||
Property, Plant and Equipment [Line Items] | |||
Payment for construction to expand building | 2.1 | ||
Payment to acquire building | 2.9 | ||
Yarmouth, Maine | |||
Property, Plant and Equipment [Line Items] | |||
Payment for construction to expand building | $ 19.4 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Summary of Changes in Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill [Roll Forward] | ||
Goodwill Beginning Balance | $ 753,718 | $ 657,987 |
Goodwill Ending Balance | 840,117 | 753,718 |
Socrata, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 75,657 | |
Other acquisitions | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 10,080 | 20,074 |
MicroPact | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 76,319 | |
Enterprise Software | ||
Goodwill [Roll Forward] | ||
Goodwill Beginning Balance | 747,161 | 651,430 |
Goodwill Ending Balance | 833,560 | 747,161 |
Enterprise Software | Socrata, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 75,657 | |
Enterprise Software | Other acquisitions | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 10,080 | 20,074 |
Enterprise Software | MicroPact | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 76,319 | |
Appraisal and Tax | ||
Goodwill [Roll Forward] | ||
Goodwill Beginning Balance | 6,557 | 6,557 |
Goodwill Ending Balance | 6,557 | 6,557 |
Appraisal and Tax | Socrata, Inc. | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 0 | |
Appraisal and Tax | Other acquisitions | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | 0 | $ 0 |
Appraisal and Tax | MicroPact | ||
Goodwill [Roll Forward] | ||
Goodwill acquired | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Other Intangible Assets and Related Accumulated Amortization (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | $ 616,051 | $ 461,234 |
Accumulated amortization | (237,137) | (184,382) |
Total other intangibles, net | 378,914 | 276,852 |
Customer related intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | 321,019 | 238,219 |
Accumulated amortization | (97,320) | (78,120) |
Acquired software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | 262,286 | 202,416 |
Accumulated amortization | (130,416) | (99,772) |
Trade names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | 22,905 | 16,905 |
Accumulated amortization | (7,205) | (5,139) |
Capitalized software development costs | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | 4,804 | 0 |
Accumulated amortization | (296) | 0 |
Leases acquired | ||
Finite-Lived Intangible Assets [Line Items] | ||
Acquisition intangibles, gross | 5,037 | 3,694 |
Accumulated amortization | $ (1,900) | $ (1,351) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total amortization expense | $ 52,800 | $ 39,600 | $ 35,500 |
Amortization expense, 2020 | 54,045 | ||
Amortization expense, 2021 | 53,687 | ||
Amortization expense, 2022 | 49,989 | ||
Amortization expense, 2023 | 31,838 | ||
Amortization expense, 2024 | 31,213 | ||
Amortization expense, thereafter | 155,005 | ||
Leases acquired | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense, 2020 | 525 | ||
Amortization expense, 2021 | 525 | ||
Amortization expense, 2022 | 525 | ||
Amortization expense, 2023 | 525 | ||
Amortization expense, 2024 | 525 | ||
Amortization expense, thereafter | $ 512 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Summary of Allocation of Acquisition Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite Lived Intangible Assets [Line Items] | |||
Goodwill | $ 840,117 | $ 753,718 | $ 657,987 |
Amortizable intangibles, Gross carrying amount | 616,051 | 461,234 | |
Amortizable intangibles, Accumulated Amortization | 237,137 | 184,382 | |
Customer related intangibles | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangibles, Gross carrying amount | $ 321,019 | $ 238,219 | |
Amortizable intangibles, Weighted Average Amortization Period | 16 years | 15 years | |
Amortizable intangibles, Accumulated Amortization | $ 97,320 | $ 78,120 | |
Acquired software | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangibles, Gross carrying amount | $ 262,286 | $ 202,416 | |
Amortizable intangibles, Weighted Average Amortization Period | 7 years | 7 years | |
Amortizable intangibles, Accumulated Amortization | $ 130,416 | $ 99,772 | |
Trade names | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangibles, Gross carrying amount | $ 22,905 | $ 16,905 | |
Amortizable intangibles, Weighted Average Amortization Period | 11 years | 11 years | |
Amortizable intangibles, Accumulated Amortization | $ 7,205 | $ 5,139 | |
Capitalized software development costs | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangibles, Gross carrying amount | $ 4,804 | 0 | |
Amortizable intangibles, Weighted Average Amortization Period | 5 years | ||
Amortizable intangibles, Accumulated Amortization | $ 296 | 0 | |
Leases acquired | |||
Acquired Finite Lived Intangible Assets [Line Items] | |||
Amortizable intangibles, Gross carrying amount | $ 5,037 | $ 3,694 | |
Amortizable intangibles, Weighted Average Amortization Period | 9 years | 10 years | |
Amortizable intangibles, Accumulated Amortization | $ 1,900 | $ 1,351 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Summary of Estimated Annual Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 54,045 |
2021 | 53,687 |
2022 | 49,989 |
2023 | 31,838 |
2024 | 31,213 |
Thereafter | $ 155,005 |
Accrued Liabilities - Summary o
Accrued Liabilities - Summary of Accrued Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accrued Liabilities, Current [Abstract] | ||
Accrued wages, bonuses and commissions | $ 49,126 | $ 40,100 |
Other accrued liabilities | 26,108 | 26,380 |
Accrued liabilities | $ 75,234 | $ 66,480 |
Revolving Line of Credit - Addi
Revolving Line of Credit - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($)letters_of_credit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Line Of Credit Facility [Line Items] | ||||
Outstanding borrowings | $ 0 | $ 0 | ||
Number of outstanding letter of credit | letters_of_credit | 0 | |||
Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Interest paid | $ 1,750,000 | $ 770,000 | $ 804,000 | |
Revolving Credit Facility | Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 400,000,000 | |||
Debt instrument, interest rate, stated percentage | 4.88% | |||
Outstanding borrowings | $ 0 | |||
Line of credit facility, unused borrowing capacity | $ 400,000,000 | |||
Revolving Credit Facility | Credit Agreement | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Debt instrument, interest rate, effective percentage | 2.89% | |||
Revolving Credit Facility | Credit Agreement | Minimum | Prime Commercial Lending Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate | 0.125% | |||
Revolving Credit Facility | Credit Agreement | Minimum | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate | 1.125% | |||
Revolving Credit Facility | Credit Agreement | Maximum | Prime Commercial Lending Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate | 0.75% | |||
Revolving Credit Facility | Credit Agreement | Maximum | LIBOR Rate | ||||
Line Of Credit Facility [Line Items] | ||||
Line of credit facility interest rate | 1.75% | |||
Letter of Credit | Revolving Credit Facility | Credit Agreement | ||||
Line Of Credit Facility [Line Items] | ||||
Revolving credit facility, maximum borrowing capacity | $ 25,000,000 |
Income Tax - Income Tax Provisi
Income Tax - Income Tax Provision (Benefit) on Income From Operations (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal | $ 12,814 | $ 9,110 | $ 22,883 |
State | 6,585 | 4,367 | 4,666 |
Current income tax expense benefit | 19,399 | 13,477 | 27,549 |
Deferred | (6,088) | (5,069) | (33,664) |
Income tax expense benefit | $ 13,311 | $ 8,408 | $ (6,115) |
Income Tax - Reconciliation of
Income Tax - Reconciliation of U.S. Statutory Income Tax Rate to Effective Income Tax Rate (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Federal income tax expense at statutory rate | $ 33,566 | $ 32,733 | $ 57,209 |
State income tax, net of federal income tax benefit | 6,999 | 7,953 | 4,754 |
Domestic production activities deduction | 0 | 0 | (2,617) |
Excess tax benefits related to stock option exercises | (29,819) | (32,487) | (40,624) |
Tax Act adjustments | 0 | (1,750) | (25,992) |
Tax credits | (3,446) | (3,715) | (3,578) |
Non-deductible business expenses | 6,011 | 5,655 | 4,573 |
Other, net | 0 | 19 | 160 |
Income tax expense benefit | $ 13,311 | $ 8,408 | $ (6,115) |
Income Tax - Schedule of Deferr
Income Tax - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Operating expenses not currently deductible | $ 10,214 | $ 8,989 |
Stock option and other employee benefit plans | 19,308 | 19,496 |
Loss and credit carryforwards | 23,841 | 17,999 |
Total deferred income tax assets | 53,363 | 46,484 |
Valuation allowance | (1,923) | (1,049) |
Total deferred income tax assets, net of valuation allowance | 51,440 | 45,435 |
Intangible assets | (84,019) | (70,752) |
Property and equipment | (9,265) | (8,455) |
Prepaid expenses | (4,922) | (4,079) |
Deferred revenue | (1,676) | (3,940) |
Total deferred income tax liabilities | (99,882) | (87,226) |
Net deferred income tax liabilities | $ (48,442) | $ (41,791) |
Income Tax - Additional Informa
Income Tax - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Loss Carryforwards [Line Items] | |||
Tax credit carryforwards | $ 4.8 | ||
Increase of liability for an uncertain tax position | $ 1.9 | ||
Income taxes, net of refunds | 21.3 | $ 6.8 | $ 36 |
Federal | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | 85.2 | ||
State | |||
Operating Loss Carryforwards [Line Items] | |||
Operating loss carryforwards | $ 3.1 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Activities in Common Stock (Detail) - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Equity [Abstract] | |||
Stock option exercises, Shares | 999 | 1,126 | 1,113 |
Purchases of common stock, Shares | (72) | (781) | (44) |
Employee stock plan purchases, Shares | 53 | 45 | 51 |
Restricted stock units vested, net of withheld shares upon award settlement, Shares | 53 | 0 | 0 |
Issuance of shares pursuant to stock compensation plan | $ 96,908 | $ 74,907 | $ 49,845 |
Purchases of common stock | (14,289) | (150,050) | (6,613) |
Employee stock plan purchases | 9,576 | 8,051 | 7,044 |
Restricted stock units vested, net of withheld shares upon award settlement | $ (5,361) | $ 0 | $ 0 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Detail) shares in Millions | Feb. 19, 2020shares |
Subsequent Event | |
Class Of Stock [Line Items] | |
Number of shares authorized to be repurchased, shares | 2.6 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 3,100,000 | |
Shares reserved for future issuance | 22,900,000 | |
Weighted average grant date value (in dollars per share) | $ 188.48 | $ 169.24 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares available for grant | 702,000 | |
Shares reserved for future issuance | 2,000,000 | |
Percentage of annual compensation participants may contribute | 15.00% | |
Purchase price as a percentage of closing price on the last day of the quarter for ESPP transactions | 85.00% | |
Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Contractual term | 10 years | |
Unvested options to purchase (in shares) | 1,200,000 | 1,700,000 |
Total unrecognized compensation cost | $ 148.7 | |
Weighted average amortization period | 2 years 6 months | |
Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Minimum | Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Minimum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 6 years | |
Maximum | Stock Option Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 6 years | |
Maximum | Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 5 years |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Weighted Average Assumptions Used for Options Granted (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield (in percentage) | 0.00% | ||
Stock Option Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life (in years) | 6 years | 6 years | 6 years |
Expected volatility (in percentage) | 26.60% | 26.70% | 28.10% |
Risk-free interest rate (in percentage) | 1.80% | 2.70% | 2.00% |
Expected forfeiture rate (in percentage) | 0.00% | 0.00% | 0.00% |
Share-Based Compensation - RSU
Share-Based Compensation - RSU and PSU Activity (Details) - Restricted stock unit and performance stock unit - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Number of Shares | ||
Beginning balance, shares | 334 | 0 |
Granted, shares | 256 | 336 |
Vested, shares | (76) | 0 |
Forfeited, shares | (14) | (2) |
Ending balance, shares | 500 | 334 |
Weighted Average Grant Date Fair Value per Share | ||
Beginning balance (dollar per share) | $ 221.25 | $ 0 |
Granted (dollar per share) | 241.19 | 221.29 |
Vested (dollar per share) | 221.15 | 0 |
Forfeited (dollar per share) | 229.75 | 229.75 |
Ending balance (dollar per share) | $ 231.57 | $ 221.25 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Shares | |||
Outstanding Beginning Balance (in shares) | 4,092 | 4,817 | 5,156 |
Granted (in shares) | 162 | 432 | 824 |
Exercised (in shares) | (999) | (1,126) | (1,113) |
Forfeited (in shares) | (29) | (31) | (50) |
Outstanding Ending Balance (in shares) | 3,226 | 4,092 | 4,817 |
Exercisable (in shares) | 2,067 | ||
Weighted Average Exercise Price | |||
Outstanding Beginning Balance (in dollar per share) | $ 129.51 | $ 107.91 | $ 83.64 |
Granted (in dollars per share) | 251.58 | 208.21 | 176.26 |
Exercised (in dollars per share) | 96.92 | 66.53 | 44.80 |
Forfeited (in dollars per share) | 174.54 | 158.80 | 134.83 |
Outstanding Ending Balance (in dollars per share) | 145.27 | $ 129.51 | $ 107.91 |
Exercisable (in dollars per share) | $ 121.07 | ||
Weighted Average Remaining Contractual Life (Years), Outstanding | 6 years | ||
Weighted Average Remaining Contractual Life (Years), Exercisable | 6 years | ||
Aggregate Intrinsic Value, Outstanding | $ 499,124 | ||
Aggregate Intrinsic Value, Exercisable | $ 369,938 |
Share-Based Compensation - Othe
Share-Based Compensation - Other Information Pertaining to Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 74.54 | $ 66.52 | $ 55.56 |
Total intrinsic value of stock options exercised | $ 155,899 | $ 176,716 | $ 137,699 |
Share-Based Compensation - Su_2
Share-Based Compensation - Summary of Share-Based Compensation Expense Related to Share-Based Awards (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 59,967 | $ 52,740 | $ 37,348 |
Excess tax benefit | (29,819) | (32,487) | (40,624) |
Net decrease (increase) in net income | 30,148 | 20,253 | (3,276) |
Cost of software services, maintenance and subscriptions | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | 15,002 | 13,588 | 9,415 |
Selling, general and administrative expenses | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Share-based compensation expense | $ 44,965 | $ 39,152 | $ 27,933 |
Earnings Per Share - Computatio
Earnings Per Share - Computation of Basic Earnings and Diluted Earnings Per Share Data (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 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 for basic and diluted earnings per share: | |||||||||||
Net income | $ 46,790 | $ 40,390 | $ 31,999 | $ 27,348 | $ 31,552 | $ 38,924 | $ 39,161 | $ 37,825 | $ 146,527 | $ 147,462 | $ 169,571 |
Denominator: | |||||||||||
Weighted-average basic common shares outstanding | 38,640 | 38,445 | 37,273 | ||||||||
Assumed conversion of dilutive securities: | |||||||||||
Stock options (in shares) | 1,465 | 1,678 | 1,973 | ||||||||
Denominator for diluted earnings per share - Adjusted weighted-average shares | 40,736 | 40,280 | 39,813 | 39,585 | 39,891 | 40,528 | 40,224 | 39,836 | 40,105 | 40,123 | 39,246 |
Earnings per common share: | |||||||||||
Basic (USD per share) | $ 3.79 | $ 3.84 | $ 4.55 | ||||||||
Diluted (USD per share) | $ 1.15 | $ 1 | $ 0.80 | $ 0.69 | $ 0.79 | $ 0.96 | $ 0.97 | $ 0.95 | $ 3.65 | $ 3.68 | $ 4.32 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 633 | 888 | 1,343 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leased Assets [Line Items] | |||
Operating lease renewal term (up to) | 10 years | ||
Operating lease, cost | $ 9,922 | $ 7,400 | $ 6,900 |
Lessor, operating lease renewal term | 5 years | ||
Rental income | $ 1,100 | $ 1,200 | $ 1,500 |
Minimum | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 1 year | ||
Maximum | |||
Operating Leased Assets [Line Items] | |||
Operating lease term | 8 years |
Leases - Schedule of lease cost
Leases - Schedule of lease cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Leases [Abstract] | |||
Operating lease cost | $ 6,379 | ||
Short-term lease cost | 2,269 | ||
Variable lease cost | 1,274 | ||
Net lease cost | $ 9,922 | $ 7,400 | $ 6,900 |
Leases - Schedule of leases ass
Leases - Schedule of leases assets and liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Assets: | |
Operating lease right-of-use assets | $ 18,992 |
Liabilities: | |
Operating leases, short-term | 6,387 |
Operating leases, long-term | 16,822 |
Total lease liabilities | $ 23,209 |
Leases - Schedule of other info
Leases - Schedule of other information related to leases (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash outflows from operating leases | $ 7,267 |
Operating leases | $ 3,466 |
Weighted average remaining lease term (years) | 4 years |
Weighted average discount rate | 4.00% |
Leases - Maturity of lease liab
Leases - Maturity of lease liabilities (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 7,684 |
2021 | 6,246 |
2022 | 3,960 |
2023 | 2,923 |
2024 | 2,478 |
Thereafter | 2,042 |
Total lease payments | 25,333 |
Less: Interest | (2,124) |
Present value of operating lease liabilities | $ 23,209 |
Leases - Schedule of future min
Leases - Schedule of future minimum lease commitments related to lease agreements under Topic 840 (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 5,994 |
2020 | 5,146 |
2021 | 3,976 |
2022 | 1,925 |
2023 | 1,164 |
Thereafter | 2,132 |
Total | $ 20,337 |
Leases - Schedule of future m_2
Leases - Schedule of future minimum operating rental income (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 1,341 |
2021 | 1,372 |
2022 | 1,402 |
2023 | 1,432 |
2024 | 1,462 |
Thereafter | 857 |
Total | $ 7,866 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employee contribution | 30.00% | ||
Defined contribution plan, cost recognized | $ 11.5 | $ 9.3 | $ 7.9 |
Maximum | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of employer contribution | 3.00% |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) | Dec. 31, 2019legal_matter |
Commitments and Contingencies Disclosure [Abstract] | |
Number of material legal proceedings pending | 0 |
Segment and Related Informati_3
Segment and Related Information - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Dec. 31, 2019USD ($)segmentbusiness_unit | Dec. 31, 2018USD ($) | |
Segment Reporting Information [Line Items] | ||
Number of business units | business_unit | 6 | |
Payment for construction to expand building | $ 20.8 | $ 2.2 |
Enterprise Software | ||
Segment Reporting Information [Line Items] | ||
Number of reportable segment | segment | 1 | |
Payment for construction to expand building | $ 12.6 | $ 2.2 |
Appraisal and Tax | ||
Segment Reporting Information [Line Items] | ||
Payment for construction to expand building | $ 8.2 |
Segment and Related Informati_4
Segment and Related Information - Schedule of Segment Revenues and Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 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 Information [Line Items] | |||||||||||
Total revenues | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 241,981 | $ 236,067 | $ 236,060 | $ 221,174 | $ 1,086,427 | $ 935,282 | $ 840,899 |
Depreciation and amortization expense | 76,672 | 61,759 | 53,395 | ||||||||
Total segment operating income | 156,367 | 152,492 | 162,758 | ||||||||
Capital expenditures | 38,098 | 25,132 | 45,618 | ||||||||
Total assets | 2,191,614 | 1,790,963 | 2,191,614 | 1,790,963 | 1,611,351 | ||||||
Intercompany | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (15,496) | (13,155) | (10,425) | ||||||||
Intercompany | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (15,496) | (13,155) | (10,425) | ||||||||
Intercompany | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 1,000,845 | 853,200 | 765,133 | ||||||||
Depreciation and amortization expense | 64,289 | 50,130 | 43,987 | ||||||||
Total segment operating income | 261,494 | 237,159 | 229,001 | ||||||||
Capital expenditures | 19,335 | 13,973 | 28,096 | ||||||||
Total assets | 834,010 | 556,100 | 834,010 | 556,100 | 365,736 | ||||||
Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 94,822 | 90,356 | 81,579 | ||||||||
Depreciation and amortization expense | 926 | 914 | 760 | ||||||||
Total segment operating income | 20,789 | 23,094 | 20,788 | ||||||||
Capital expenditures | 8,384 | 782 | 1,181 | ||||||||
Total assets | 90,536 | 63,670 | 90,536 | 63,670 | 46,279 | ||||||
Corporate and Elimination | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | (9,240) | (8,274) | (5,813) | ||||||||
Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Depreciation and amortization expense | 11,457 | 10,715 | 8,648 | ||||||||
Total segment operating income | (73,829) | (68,572) | (51,964) | ||||||||
Capital expenditures | 10,379 | 10,377 | 16,341 | ||||||||
Total assets | $ 1,267,068 | $ 1,171,193 | 1,267,068 | 1,171,193 | 1,199,336 | ||||||
Operating Segments And Corporate Non Segment | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total segment operating income | 208,454 | 191,681 | 197,825 | ||||||||
Software licenses and royalties | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 100,205 | 93,441 | 86,242 | ||||||||
Software licenses and royalties | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 92,567 | 83,735 | 78,388 | ||||||||
Software licenses and royalties | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 7,638 | 9,706 | 7,854 | ||||||||
Software licenses and royalties | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 296,352 | 220,547 | 172,176 | ||||||||
Subscriptions | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 285,092 | 210,740 | 164,317 | ||||||||
Subscriptions | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 11,260 | 9,807 | 7,859 | ||||||||
Subscriptions | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 213,061 | 191,269 | 180,460 | ||||||||
Software services | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 185,892 | 166,921 | 161,245 | ||||||||
Software services | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 27,169 | 24,348 | 19,215 | ||||||||
Software services | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 430,318 | 384,521 | 359,319 | ||||||||
Maintenance | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 405,063 | 359,904 | 337,701 | ||||||||
Maintenance | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 25,255 | 24,617 | 21,618 | ||||||||
Maintenance | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 23,479 | 21,846 | 25,023 | ||||||||
Appraisal services | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 23,479 | 21,846 | 25,023 | ||||||||
Appraisal services | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Hardware and other | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 23,012 | 23,658 | 17,679 | ||||||||
Hardware and other | Operating segments | Enterprise Software | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 16,735 | 18,745 | 13,057 | ||||||||
Hardware and other | Operating segments | Appraisal and Tax | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | 21 | 32 | 10 | ||||||||
Hardware and other | Corporate | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Total revenues | $ 6,256 | $ 4,881 | $ 4,612 |
Segment and Related Informati_5
Segment and Related Information - Reconciliation of Operating Income from Segments to Consolidated (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating income | $ 156,367 | $ 152,492 | $ 162,758 |
Amortization of customer and trade name intangibles | (52,800) | (39,600) | (35,500) |
Other income (expense), net | 3,471 | 3,378 | 698 |
Income before income taxes | 159,838 | 155,870 | 163,456 |
Operating Segments And Corporate Non Segment | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total segment operating income | 208,454 | 191,681 | 197,825 |
Segment Reconciling Items | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Amortization of acquired software | (30,642) | (22,972) | (21,686) |
Amortization of customer and trade name intangibles | (21,445) | (16,217) | (13,381) |
Other income (expense), net | $ 3,471 | $ 3,378 | $ 698 |
Disaggregation of Revenue (Deta
Disaggregation of 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 | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 241,981 | $ 236,067 | $ 236,060 | $ 221,174 | $ 1,086,427 | $ 935,282 | $ 840,899 |
Intercompany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (15,496) | (13,155) | (10,425) | ||||||||
Corporate and Elimination | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (9,240) | (8,274) | (5,813) | ||||||||
Enterprise Software | Intercompany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | (15,496) | (13,155) | (10,425) | ||||||||
Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 1,000,845 | 853,200 | 765,133 | ||||||||
Appraisal and Tax | Intercompany | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 94,822 | 90,356 | 81,579 | ||||||||
Recurring revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 726,670 | 605,069 | 531,495 | ||||||||
Recurring revenues | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Recurring revenues | Enterprise Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 690,156 | 570,645 | 502,018 | ||||||||
Recurring revenues | Appraisal and Tax | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 36,514 | 34,424 | 29,477 | ||||||||
Non-recurring revenues | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 359,757 | 330,213 | 309,404 | ||||||||
Non-recurring revenues | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 6,256 | 4,881 | 4,612 | ||||||||
Non-recurring revenues | Enterprise Software | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 295,193 | 269,400 | 252,690 | ||||||||
Non-recurring revenues | Appraisal and Tax | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 58,308 | 55,932 | 52,102 | ||||||||
Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 1 year | ||||||||||
Typical contract term | 3 years | ||||||||||
Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 10 years | ||||||||||
Typical contract term | 5 years | ||||||||||
Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 107,912 | 98,846 | 86,846 | ||||||||
Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 978,515 | 836,436 | 754,053 | ||||||||
Software licenses and royalties | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 100,205 | 93,441 | 86,242 | ||||||||
Software licenses and royalties | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software licenses and royalties | Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 92,567 | 83,735 | 78,388 | ||||||||
Software licenses and royalties | Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 7,638 | 9,706 | 7,854 | ||||||||
Software licenses and royalties | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 84,900 | 75,188 | 69,167 | ||||||||
Software licenses and royalties | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 15,305 | 18,253 | 17,075 | ||||||||
Subscriptions | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 296,352 | 220,547 | 172,176 | ||||||||
Subscriptions | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 285,092 | 210,740 | 164,317 | ||||||||
Subscriptions | Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 11,260 | 9,807 | 7,859 | ||||||||
Subscriptions | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Subscriptions | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 296,352 | 220,547 | 172,176 | ||||||||
Software services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 213,061 | 191,269 | 180,460 | ||||||||
Software services | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 185,892 | 166,921 | 161,245 | ||||||||
Software services | Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 27,169 | 24,348 | 19,215 | ||||||||
Software services | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Software services | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 213,061 | 191,269 | 180,460 | ||||||||
Maintenance | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 430,318 | 384,521 | 359,319 | ||||||||
Maintenance | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 405,063 | 359,904 | 337,701 | ||||||||
Maintenance | Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 25,255 | 24,617 | 21,618 | ||||||||
Maintenance | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Maintenance | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 430,318 | 384,521 | 359,319 | ||||||||
Appraisal services | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 23,479 | 21,846 | 25,023 | ||||||||
Appraisal services | Corporate | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Enterprise Software | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 0 | 0 | 0 | ||||||||
Appraisal services | Appraisal and Tax | Operating segments | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 23,479 | 21,846 | 25,023 | ||||||||
Appraisal services | Minimum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 1 year | ||||||||||
Appraisal services | Maximum | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Contract term | 3 years | ||||||||||
Appraisal services | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 0 | 0 | 0 | ||||||||
Appraisal services | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 23,479 | 21,846 | 25,023 | ||||||||
Hardware and other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 23,012 | 23,658 | 17,679 | ||||||||
Hardware and other | Products and services transferred at a point in time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | 23,012 | 23,658 | 17,679 | ||||||||
Hardware and other | Products and services transferred over time | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Total revenues | $ 0 | $ 0 | $ 0 |
Deferred Revenue and Performa_3
Deferred Revenue and Performance Obligations - Deferred Revenue (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Disaggregation of Revenue [Line Items] | |
Deferred revenue | $ 412,694 |
Contract With Customer Liability [Roll Forward] | |
Balance at beginning of year | 350,936 |
Deferral of revenue | 993,109 |
Recognition of deferred revenue | (931,351) |
Balance at end of year | 412,694 |
Operating segments | Enterprise Software | |
Disaggregation of Revenue [Line Items] | |
Deferred revenue | 327,521 |
Contract With Customer Liability [Roll Forward] | |
Balance at beginning of year | 327,521 |
Balance at end of year | 386,115 |
Operating segments | Appraisal and Tax | |
Disaggregation of Revenue [Line Items] | |
Deferred revenue | 20,018 |
Contract With Customer Liability [Roll Forward] | |
Balance at beginning of year | 20,018 |
Balance at end of year | 25,210 |
Corporate | |
Disaggregation of Revenue [Line Items] | |
Deferred revenue | 3,397 |
Contract With Customer Liability [Roll Forward] | |
Balance at beginning of year | 3,397 |
Balance at end of year | $ 1,369 |
Deferred Revenue and Performa_4
Deferred Revenue and Performance Obligations - Narrative (Details) $ in Millions | Dec. 31, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Remaining performance obligations | $ 1,460 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, remaining performance obligation, percentage | 49.00% |
Expected timing of satisfaction period | 12 months |
Deferred Commissions (Details)
Deferred Commissions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Capitalized Contract Cost [Line Items] | |||
Deferred commissions | $ 29.8 | $ 21.9 | |
Deferred commissions amortization | $ 17.8 | $ 15.6 | $ 11.2 |
Minimum | |||
Capitalized Contract Cost [Line Items] | |||
Sales commissions amortization period | 3 years | ||
Maximum | |||
Capitalized Contract Cost [Line Items] | |||
Sales commissions amortization period | 7 years |
QUARTERLY FINANCIAL INFORMATI_3
QUARTERLY FINANCIAL INFORMATION (unaudited) - Summary of Selected Financial Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 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 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenues | $ 288,837 | $ 275,400 | $ 275,124 | $ 247,066 | $ 241,981 | $ 236,067 | $ 236,060 | $ 221,174 | $ 1,086,427 | $ 935,282 | $ 840,899 |
Gross profit | 142,275 | 130,717 | 127,860 | 116,048 | 115,871 | 111,626 | 109,276 | 102,805 | 516,900 | 439,578 | 399,377 |
Income before income taxes | 47,790 | 40,552 | 36,419 | 35,077 | 40,107 | 38,626 | 37,700 | 39,437 | |||
Net income | $ 46,790 | $ 40,390 | $ 31,999 | $ 27,348 | $ 31,552 | $ 38,924 | $ 39,161 | $ 37,825 | $ 146,527 | $ 147,462 | $ 169,571 |
Earnings per diluted share (USD per share) | $ 1.15 | $ 1 | $ 0.80 | $ 0.69 | $ 0.79 | $ 0.96 | $ 0.97 | $ 0.95 | $ 3.65 | $ 3.68 | $ 4.32 |
Shares used in computing diluted earnings per share | 40,736 | 40,280 | 39,813 | 39,585 | 39,891 | 40,528 | 40,224 | 39,836 | 40,105 | 40,123 | 39,246 |
Tax Act tax benefit | $ 0 | $ 1,750 | $ 25,992 |
Uncategorized Items - tyl123120
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,116,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,116,000) |