Reportable Segment Information (Text Block)

6 Months Ended

Dec. 31, 2019

Reportable Segment Information Disclosure [Text Block]

REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for on-premise installations or outsourced services) for banks and credit unions.

The Company’s operations are classified into four reportable segments: Core, Payments, Complementary, and Corporate & 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 transaction processing services; online and mobile bill pay solutions; ACH origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Core solutions or used independently. The Corporate & Other segment includes hardware revenue and costs, 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.

An immaterial adjustment was made during the first quarter of fiscal 2020 to reclassify revenue recognized in fiscal 2019 from the Complementary to the Core segment to be consistent with the current year's allocation of revenue by segment. The amount reclassified totaled $1,603 and is reflected in the segment table below for the six months ended December 31, 2018 .



	Three Months Ended
	December 31, 2019
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	130,782	$	14,829	$	94,478	$	15,115		$	255,204
Processing	7,587		137,215		19,006		107			163,915
Total Revenue	138,369		152,044		113,484		15,222			419,119

Cost of Revenue	61,243		79,135		48,019		60,870			249,267
Research and Development										27,187
Selling, General, and Administrative										48,961
Total Expenses										325,415

SEGMENT INCOME	$	77,126	$	72,909	$	65,465	$	(45,648	)

OPERATING INCOME										93,704

INTEREST INCOME (EXPENSE)										190

INCOME BEFORE INCOME TAXES										$	93,894



	Three Months Ended
	December 31, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	122,721	$	13,108	$	86,386	$	15,107		$	237,322
Processing	7,008		124,911		16,864		170			148,953
Total Revenue	129,729		138,019		103,250		15,277			386,275

Cost of Revenue	60,288		65,100		44,167		57,729			227,284
Research and Development										23,990
Selling, General, and Administrative										46,797
Total Expenses										298,071

SEGMENT INCOME	$	69,441	$	72,919	$	59,083	$	(42,452	)

OPERATING INCOME										88,204

INTEREST INCOME (EXPENSE)										104

INCOME BEFORE INCOME TAXES										$	88,308



	Six Months Ended
	December 31, 2019
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	278,873	$	32,137	$	192,929	$	30,073		$	534,012
Processing	15,392		269,654		37,750		316			323,112
Total Revenue	294,265		301,791		230,679		30,389			857,124

Cost of Revenue	124,549		155,759		94,693		120,057			495,058
Research and Development										51,778
Selling, General, and Administrative										98,396
Total Expenses										645,232

SEGMENT INCOME	$	169,716	$	146,032	$	135,986	$	(89,668	)

OPERATING INCOME										211,892

INTEREST INCOME (EXPENSE)										541

INCOME BEFORE INCOME TAXES										$	212,433



	Six Months Ended
	December 31, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	254,712	$	25,878	$	174,846	$	28,454		$	483,890
Processing	14,172		246,338		34,109		309			294,928
Total Revenue	268,884		272,216		208,955		28,763			778,818

Cost of Revenue	119,504		130,807		85,998		111,087			447,396
Research and Development										48,016
Selling, General, and Administrative										91,979
Total Expenses										587,391

SEGMENT INCOME	$	149,380	$	141,409	$	122,957	$	(82,324	)

OPERATING INCOME										191,427

INTEREST INCOME (EXPENSE)										247

INCOME BEFORE INCOME TAXES										$	191,674

The Company has not disclosed any additional asset information by segment, as the information is not generated for internal management reporting to the Chief Operating Decision Maker.