2017 Q2 Form 10-Q Financial Statement

#000105735217000045 Filed on July 27, 2017

View on sec.gov

Income Statement

Concept 2017 Q2 2016 Q2
Revenue $237.2M $206.9M
YoY Change 14.64% 21.22%
Cost Of Revenue $55.27M $42.68M
YoY Change 29.51% -4.38%
Gross Profit $181.9M $164.2M
YoY Change 10.77% 30.29%
Gross Profit Margin 76.69% 79.37%
Selling, General & Admin $126.3M $110.7M
YoY Change 14.08% -9.52%
% of Gross Profit 69.43% 67.42%
Research & Development $23.14M $19.55M
YoY Change 18.4% 16.05%
% of Gross Profit 12.72% 11.91%
Depreciation & Amortization $15.90M $5.924M
YoY Change 168.4% 15.41%
% of Gross Profit 8.74% 3.61%
Operating Expenses $154.0M $136.1M
YoY Change 13.17% -6.9%
Operating Profit $27.88M $28.12M
YoY Change -0.84% -239.69%
Interest Expense $2.693M $2.455M
YoY Change 9.69% 4.29%
% of Operating Profit 9.66% 8.73%
Other Income/Expense, Net -$2.000M -$1.700M
YoY Change 17.65% 13.33%
Pretax Income $25.80M $25.82M
YoY Change -0.11% -1874.78%
Income Tax $3.611M $10.25M
% Of Pretax Income 14.0% 39.68%
Net Earnings $22.18M $15.58M
YoY Change 42.42% -204.08%
Net Earnings / Revenue 9.35% 7.53%
Basic Earnings Per Share $0.68 $0.48
Diluted Earnings Per Share $0.68 $0.48
COMMON SHARES
Basic Shares Outstanding 32.41M shares 32.19M shares
Diluted Shares Outstanding 32.74M shares 32.45M shares

Balance Sheet

Concept 2017 Q2 2016 Q2
SHORT-TERM ASSETS
Cash & Short-Term Investments $564.6M $465.3M
YoY Change 21.34% 32.26%
Cash & Equivalents $564.6M $464.2M
Short-Term Investments $1.100M
Other Short-Term Assets $19.80M $12.90M
YoY Change 53.49% -70.14%
Inventory
Prepaid Expenses
Receivables $51.51M $45.89M
Other Receivables $0.00 $100.0K
Total Short-Term Assets $636.0M $524.2M
YoY Change 21.32% 16.4%
LONG-TERM ASSETS
Property, Plant & Equipment $85.78M $86.51M
YoY Change -0.84% 1.25%
Goodwill $1.280B $1.257B
YoY Change 1.86% 0.81%
Intangibles $198.1M $218.5M
YoY Change -9.34% -17.18%
Long-Term Investments $10.00M $9.900M
YoY Change 1.01% -38.13%
Other Assets $9.900M $11.20M
YoY Change -11.61% -2.61%
Total Long-Term Assets $1.584B $1.583B
YoY Change 0.06% -2.5%
TOTAL ASSETS
Total Short-Term Assets $636.0M $524.2M
Total Long-Term Assets $1.584B $1.583B
Total Assets $2.220B $2.107B
YoY Change 5.35% 1.61%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $16.69M $14.04M
YoY Change 18.92% 107.11%
Accrued Expenses $36.20M $38.57M
YoY Change -6.14% -19.93%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $21.95M $11.81M
YoY Change 85.79% -40.94%
Total Short-Term Liabilities $150.9M $132.8M
YoY Change 13.6% -6.01%
LONG-TERM LIABILITIES
Long-Term Debt $282.9M $324.9M
YoY Change -12.94% -8.48%
Other Long-Term Liabilities $49.30M $56.00M
YoY Change -11.96% -2.44%
Total Long-Term Liabilities $282.9M $324.9M
YoY Change -12.94% -8.48%
TOTAL LIABILITIES
Total Short-Term Liabilities $150.9M $132.8M
Total Long-Term Liabilities $282.9M $324.9M
Total Liabilities $503.3M $521.3M
YoY Change -3.45% -8.19%
SHAREHOLDERS EQUITY
Retained Earnings
YoY Change
Common Stock
YoY Change
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $1.717B $1.586B
YoY Change
Total Liabilities & Shareholders Equity $2.220B $2.107B
YoY Change 5.35% 1.61%

Cashflow Statement

Concept 2017 Q2 2016 Q2
OPERATING ACTIVITIES
Net Income $22.18M $15.58M
YoY Change 42.42% -204.08%
Depreciation, Depletion And Amortization $15.90M $5.924M
YoY Change 168.4% 15.41%
Cash From Operating Activities $30.80M $38.80M
YoY Change -20.62% -1312.5%
INVESTING ACTIVITIES
Capital Expenditures -$6.600M -$3.600M
YoY Change 83.33% -41.94%
Acquisitions
YoY Change
Other Investing Activities -$31.40M -$10.30M
YoY Change 204.85% -94.01%
Cash From Investing Activities -$37.90M -$13.90M
YoY Change 172.66% -92.2%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities -1.300M -21.90M
YoY Change -94.06% 143.33%
NET CHANGE
Cash From Operating Activities 30.80M 38.80M
Cash From Investing Activities -37.90M -13.90M
Cash From Financing Activities -1.300M -21.90M
Net Change In Cash -8.400M 3.000M
YoY Change -380.0% -101.58%
FREE CASH FLOW
Cash From Operating Activities $30.80M $38.80M
Capital Expenditures -$6.600M -$3.600M
Free Cash Flow $37.40M $42.40M
YoY Change -11.79% 1313.33%

Facts In Submission

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CY2017Q1 us-gaap Fair Value Measurement With Unobservable Inputs Reconciliation Recurring Basis Asset Value
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap Foreign Currency Transaction Gain Loss Before Tax
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us-gaap General And Administrative Expense
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us-gaap Goodwill Foreign Currency Translation Gain Loss
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Income Loss From Continuing Operations Before Income Taxes Minority Interest And Income Loss From Equity Method Investments
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Payable And Accrued Liabilities
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Accounts Receivable
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us-gaap Increase Decrease In Deferred Revenue
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us-gaap Increase Decrease In Deferred Revenue
IncreaseDecreaseInDeferredRevenue
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us-gaap Increase Decrease In Deposits
IncreaseDecreaseInDeposits
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us-gaap Increase Decrease In Deposits
IncreaseDecreaseInDeposits
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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us-gaap Increase Decrease In Prepaid Deferred Expense And Other Assets
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CY2016Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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CY2017Q2 us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
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us-gaap Incremental Common Shares Attributable To Share Based Payment Arrangements
IncrementalCommonSharesAttributableToShareBasedPaymentArrangements
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CY2016Q4 us-gaap Intangible Assets Net Excluding Goodwill
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us-gaap Interest Expense
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CY2017Q2 us-gaap Intangible Assets Net Excluding Goodwill
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CY2016Q2 us-gaap Interest Expense
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CY2017Q2 us-gaap Interest Expense
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us-gaap Interest Expense
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CY2016Q2 us-gaap Interest Expense Debt
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us-gaap Interest Expense Debt
InterestExpenseDebt
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CY2017Q2 us-gaap Interest Expense Debt
InterestExpenseDebt
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us-gaap Interest Expense Debt
InterestExpenseDebt
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CY2016Q2 us-gaap Interest Paid
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us-gaap Interest Paid
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CY2017Q2 us-gaap Interest Paid
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us-gaap Interest Paid
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CY2016Q4 us-gaap Liabilities
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CY2017Q2 us-gaap Liabilities
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CY2016Q4 us-gaap Liabilities And Stockholders Equity
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CY2017Q2 us-gaap Liabilities And Stockholders Equity
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CY2016Q4 us-gaap Liabilities Current
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CY2017Q2 us-gaap Liabilities Current
LiabilitiesCurrent
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us-gaap Line Of Credit Facility Collateral
LineOfCreditFacilityCollateral
The obligations under the 2014 Credit Agreement are guaranteed by all material subsidiaries of the Company and are secured by a lien on substantially all of the assets of the Company and those of its material subsidiaries, in each case subject to certain exceptions, pursuant to security and guarantee documents entered into on the Closing Date.
CY2016Q4 us-gaap Long Term Debt
LongTermDebt
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CY2017Q2 us-gaap Long Term Debt
LongTermDebt
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CY2016Q4 us-gaap Long Term Debt Current
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CY2017Q2 us-gaap Long Term Debt Current
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CY2016Q4 us-gaap Long Term Debt Noncurrent
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CY2017Q2 us-gaap Long Term Debt Noncurrent
LongTermDebtNoncurrent
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CY2016Q4 us-gaap Long Term Investments
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9952000 USD
CY2017Q2 us-gaap Long Term Investments
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9952000 USD
us-gaap Net Cash Provided By Used In Financing Activities
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us-gaap Net Cash Provided By Used In Financing Activities
NetCashProvidedByUsedInFinancingActivities
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us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-13489000 USD
us-gaap Net Cash Provided By Used In Investing Activities
NetCashProvidedByUsedInInvestingActivities
-57742000 USD
us-gaap Net Cash Provided By Used In Operating Activities
NetCashProvidedByUsedInOperatingActivities
86694000 USD
us-gaap Net Cash Provided By Used In Operating Activities
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CY2016Q2 us-gaap Net Income Loss
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15576000 USD
us-gaap Net Income Loss
NetIncomeLoss
32297000 USD
CY2017Q2 us-gaap Net Income Loss
NetIncomeLoss
22184000 USD
us-gaap Net Income Loss
NetIncomeLoss
44314000 USD
us-gaap Number Of Operating Segments
NumberOfOperatingSegments
2 operating_segments
CY2016Q2 us-gaap Operating Expenses
OperatingExpenses
136071000 USD
us-gaap Operating Expenses
OperatingExpenses
262609000 USD
CY2017Q2 us-gaap Operating Expenses
OperatingExpenses
153997000 USD
us-gaap Operating Expenses
OperatingExpenses
291542000 USD
CY2016Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
28119000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
58420000 USD
CY2017Q2 us-gaap Operating Income Loss
OperatingIncomeLoss
27883000 USD
CY2016Q4 us-gaap Other Long Term Debt Current
OtherLongTermDebtCurrent
35000000 USD
us-gaap Operating Income Loss
OperatingIncomeLoss
65545000 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-1925000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
-2458000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
1831000 USD
us-gaap Other Comprehensive Income Loss Foreign Currency Transaction And Translation Adjustment Net Of Tax
OtherComprehensiveIncomeLossForeignCurrencyTransactionAndTranslationAdjustmentNetOfTax
2242000 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-1925000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
-2229000 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
1831000 USD
us-gaap Other Comprehensive Income Loss Net Of Tax
OtherComprehensiveIncomeLossNetOfTax
2242000 USD
CY2016Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
CY2017Q2 us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
us-gaap Other Comprehensive Income Loss Reclassification Adjustment From Aoci For Sale Of Securities Before Tax
OtherComprehensiveIncomeLossReclassificationAdjustmentFromAOCIForSaleOfSecuritiesBeforeTax
0 USD
CY2016Q2 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
229000 USD
CY2017Q2 us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
us-gaap Other Comprehensive Income Unrealized Holding Gain Loss On Securities Arising During Period Net Of Tax
OtherComprehensiveIncomeUnrealizedHoldingGainLossOnSecuritiesArisingDuringPeriodNetOfTax
0 USD
CY2016Q2 us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
5924000 USD
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
11526000 USD
CY2017Q2 us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
6520000 USD
us-gaap Other Depreciation And Amortization
OtherDepreciationAndAmortization
12925000 USD
CY2017Q2 us-gaap Other Long Term Debt Current
OtherLongTermDebtCurrent
25000000 USD
CY2016Q2 us-gaap Other Nonoperating Income
OtherNonoperatingIncome
159000 USD
us-gaap Other Nonoperating Income
OtherNonoperatingIncome
243000 USD
CY2017Q2 us-gaap Other Nonoperating Income
OtherNonoperatingIncome
605000 USD
us-gaap Other Nonoperating Income
OtherNonoperatingIncome
1034000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
13967000 USD
us-gaap Payments Related To Tax Withholding For Share Based Compensation
PaymentsRelatedToTaxWithholdingForShareBasedCompensation
13456000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
10795000 USD
us-gaap Payments To Acquire Businesses Net Of Cash Acquired
PaymentsToAcquireBusinessesNetOfCashAcquired
45068000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
7394000 USD
us-gaap Payments To Acquire Productive Assets
PaymentsToAcquireProductiveAssets
12674000 USD
CY2016Q4 us-gaap Prepaid Expense And Other Assets Current
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CY2017Q2 us-gaap Prepaid Expense And Other Assets Current
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us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
4700000 USD
us-gaap Proceeds From Sale Maturity And Collections Of Investments
ProceedsFromSaleMaturityAndCollectionsOfInvestments
0 USD
CY2016Q4 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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CY2017Q2 us-gaap Property Plant And Equipment Net
PropertyPlantAndEquipmentNet
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us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
5108000 USD
us-gaap Provision For Doubtful Accounts
ProvisionForDoubtfulAccounts
2349000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
20000000 USD
us-gaap Repayments Of Long Term Debt
RepaymentsOfLongTermDebt
35000000 USD
CY2016Q2 us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
19547000 USD
us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
37182000 USD
CY2017Q2 us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
23144000 USD
us-gaap Research And Development Expense Software Excluding Acquired In Process Cost
ResearchAndDevelopmentExpenseSoftwareExcludingAcquiredInProcessCost
45518000 USD
CY2016Q2 us-gaap Revenues
Revenues
206869000 USD
us-gaap Revenues
Revenues
406608000 USD
CY2017Q2 us-gaap Revenues
Revenues
237153000 USD
us-gaap Revenues
Revenues
463706000 USD
CY2016Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
80468000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
155672000 USD
CY2017Q2 us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
91726000 USD
us-gaap Selling And Marketing Expense
SellingAndMarketingExpense
168128000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
17670000 USD
us-gaap Share Based Compensation
ShareBasedCompensation
19460000 USD
CY2016Q2 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
16211 shares
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
20711 shares
CY2017Q2 us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
69993 shares
us-gaap Stock Issued During Period Shares Stock Options Exercised
StockIssuedDuringPeriodSharesStockOptionsExercised
78283 shares
CY2016Q4 us-gaap Stockholders Equity
StockholdersEquity
1654213000 USD
CY2017Q2 us-gaap Stockholders Equity
StockholdersEquity
1716735000 USD
CY2016Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
32448000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
32415000 shares
CY2017Q2 us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
32739000 shares
us-gaap Weighted Average Number Of Diluted Shares Outstanding
WeightedAverageNumberOfDilutedSharesOutstanding
32651000 shares
CY2016Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
32186000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
32135000 shares
CY2017Q2 us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
32406000 shares
us-gaap Weighted Average Number Of Shares Outstanding Basic
WeightedAverageNumberOfSharesOutstandingBasic
32341000 shares
us-gaap Concentration Risk Credit Risk
ConcentrationRiskCreditRisk
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Concentration of Credit Risk and Financial Instruments</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company performs ongoing assessments of its customers&#8217; respective financial conditions and generally does not require that its customers&#8217; obligations to the Company be secured. The Company maintains reserves for estimated inherent credit losses, and such losses have been within management&#8217;s expectations. The large size and widespread nature of the Company&#8217;s customer base and the Company&#8217;s lack of dependence on any individual customer mitigates the risk of nonpayment of the Company&#8217;s accounts receivable. The carrying amount of the accounts receivable approximates the net realizable value. The carrying value of the accounts receivable, accounts payable, accrued expenses and long-term debt approximates fair value.</font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company holds cash at major financial institutions in amounts that often exceed Federal Deposit Insurance Corporation insured limits. The Company manages its credit risk associated with cash concentrations by concentrating its cash deposits in high quality financial institutions and by periodically evaluating the credit quality of the primary financial institutions holding such deposits. The carrying value of cash approximates fair value. Historically, the Company has not experienced any losses due to such cash concentrations. </font></div></div>
us-gaap Nature Of Operations
NatureOfOperations
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">ORGANIZATION</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">CoStar Group, Inc. (the &#8220;Company&#8221; or &#8220;CoStar&#8221;) provides information, analytics and online marketplace services to the commercial real estate and related business community through its comprehensive, proprietary database of commercial real estate information covering the United States (&#8220;U.S.&#8221;), the United Kingdom (&#8220;U.K.&#8221;), and parts of Canada, Spain, Germany and France. The Company provides online marketplaces for commercial real estate, apartment rentals, lands for sale and businesses for sale. The Company operates within </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;"> operating segments, North America and International, and its services are typically distributed to its clients under subscription-based license agreements that renew automatically, a majority of which have a term of </font><font style="font-family:inherit;font-size:10pt;color:#000000;text-decoration:none;">one year</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div>
us-gaap Use Of Estimates
UseOfEstimates
<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;text-align:justify;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Use of Estimates</font></div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br clear="none"/></font></div><div style="line-height:120%;text-align:justify;text-indent:24px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. On an ongoing basis, the Company evaluates its estimates and assumptions, including those related to revenue recognition, allowance for doubtful accounts, useful lives of property and equipment and intangible assets, recoverability of long-lived assets and intangible assets with definite lives, goodwill, income taxes, fair value of equity instruments, fair value of auction rate securities ("ARS"), accounting for business combinations and contingencies, among others. The Company bases these estimates on historical and anticipated results, trends, and various other assumptions that it believes are reasonable, including assumptions as to future events. These estimates form the basis for making judgments about the carrying values of assets and liabilities and recorded revenues and expenses. Actual results could differ from these estimates.</font></div></div>

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