Reportable Segment Information (Text Block)

12 Months Ended

Jun. 30, 2020

Reportable Segment Information [Text Block]

REPORTABLE SEGMENT INFORMATION

The Company is a leading provider of technology solutions and payment processing services primarily for financial services organizations.

Beginning in the first quarter of fiscal 2018, JHA changed its reportable segment structure from two customer-centric segments, Bank and Credit Union, to four product-centric segments. The change was made based on the view of its Chief Executive Officer, who is also the Chief Operating Decision Maker, that the Company could be more effectively managed using a product-centric approach and was driven by the first budgetary process under his administration.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate and Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including ATM, debit, and credit card processing services, online and mobile bill pay solutions, and risk management products and services. The Complementary segment provides additional software and services that can be integrated with the Company's core solutions or used independently. The Corporate and Other segment includes revenue and costs from hardware and other products not attributable to the other three segments, as well as operating costs not directly attributable to the other three segments.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.

During fiscal 2020, immaterial adjustments were made to reclassify revenue recognized in fiscal 2019 from the Complementary to the Core segment and from the Complementary to the Payments segment to be consistent with the current year's allocation of revenue by segment. For the fiscal year ended June 30, 2019, the amount reclassified totaled $2,614.


	Year Ended
	June 30, 2020
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	550,794	$	66,920	$	380,842	$	52,895	$	1,051,451
Processing	31,372		530,773		82,507		964		645,616
Total Revenue	582,166		597,693		463,349		53,859		1,697,067

Cost of Revenue	252,878		319,739		191,577		244,270		1,008,464
Research and Development									109,988
Selling, General, and Administrative									197,988
Gain on Disposal of Businesses									—
Total Expenses									1,316,440

SEGMENT INCOME	$	329,288	$	277,954	$	271,772	$	(190,411)

OPERATING INCOME									380,627

INTEREST INCOME (EXPENSE)									449

INCOME BEFORE INCOME TAXES									$	381,076


	Year Ended
	June 30, 2019
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	507,610	$	52,756	$	347,028	$	51,095	$	958,489
Processing	28,422		496,574		68,573		633		594,202
Total Revenue	536,032		549,330		415,601		51,728		1,552,691

Cost of Revenue	243,989		273,261		175,737		230,043		923,030
Research and Development									96,378
Selling, General, and Administrative									185,998
Gain on Disposal of Businesses									—
Total Expenses									1,205,406

SEGMENT INCOME	$	292,043	$	276,069	$	239,864	$	(178,315)

OPERATING INCOME									347,285

INTEREST INCOME (EXPENSE)									(50)

INCOME BEFORE INCOME TAXES									$	347,235


	Year Ended
	June 30, 2018
	Core		Payments		Complementary		Corporate and Other		Total
REVENUE
Services and Support	$	482,216	$	47,641	$	333,812	$	57,070	$	920,739
Processing	27,605		460,690		61,607		156		550,058
Total Revenue	509,821		508,331		395,419		57,226		1,470,797

Cost of Revenue	232,868		245,269		163,905		211,096		853,138
Research and Development									90,340
Selling, General, and Administrative									171,710
Gain on Disposal of Businesses									(1,894)
Total Expenses									1,113,294

SEGMENT INCOME	$	276,953	$	263,062	$	231,514	$	(153,870)

OPERATING INCOME									357,503

INTEREST INCOME (EXPENSE)									(1,345)

INCOME BEFORE INCOME TAXES									$	356,158

The Company has not disclosed any additional asset information by segment, as the information is not produced internally and its preparation is impracticable.