Cover and table of contents

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Cover and table of contents

10-K 1 csgp20171231-10k.htm 2017 10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-K

ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the fiscal year ended December 31, 2017

Commission file number 0-24531

csgp-logoa01a09.jpg

CoStar Group, Inc.
(Exact name of registrant as specified in its charter)
Delaware52-2091509
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1331 L Street, NW, Washington, DC 20005
(Address of principal executive offices) (zip code)
(202) 346-6500
(Registrant’s telephone number, including area code)
(877) 739-0486
(Registrant’s facsimile number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each ClassName of Each Exchange on Which Registered
Common Stock, $.01 par valueNASDAQ Global Select Market

Securities registered pursuant to Section 12(g) of the Act:

None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes x No ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes ¨ No x

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that registrant was required to submit and post such files.) Yes x No ¨

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Securities Exchange Act of 1934.

Large accelerated filer xAccelerated filer ¨
Non-accelerated filer ¨Smaller reporting company ¨
Emerging growth company ¨

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No x

Based on the closing price of the common stock on June 30, 2017 on the Nasdaq Global Select Market, the aggregate market value of registrant’s common stock held by non-affiliates of the registrant as of June 30, 2017 was approximately $8 billion.

As of February 16, 2018, there were 36,094,701 shares of the registrant’s common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s definitive proxy statement, which is expected to be filed with the Securities and Exchange Commission within 120 days after the end of the registrant’s fiscal year ended December 31, 2017, are incorporated by reference into Part III of this Report.

TABLE OF CONTENTS

PART I
Item 1.Business4
Item 1A.Risk Factors21
Item 1B.Unresolved Staff Comments37
Item 2.Properties37
Item 3.Legal Proceedings37
Item 4.Mine Safety Disclosures37
PART II
Item 5.Market for the Registrant’s Common Stock, Related Stockholder Matters and Issuer Purchases of Equity Securities38
Item 6.Selected Consolidated Financial and Operating Data40
Item 7.Management’s Discussion and Analysis of Financial Condition and Results of Operations41
Item 7A.Quantitative and Qualitative Disclosures about Market Risk63
Item 8.Financial Statements and Supplementary Data64
Item 9.Changes in and Disagreements with Accountants on Accounting and Financial Disclosure64
Item 9A.Controls and Procedures64
Item 9B.Other Information66
PART III
Item 10.Directors, Executive Officers and Corporate Governance66
Item 11.Executive Compensation66
Item 12.Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters66
Item 13.Certain Relationships and Related Transactions, and Director Independence66
Item 14.Principal Accountant Fees and Services66
PART IV
Item 15.Exhibits and Financial Statement Schedules67
Signatures70
Index to Consolidated Financial StatementsF-1
Item 16.Form 10-K Summary70

PART I

Next: Item 1. Business