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Reportable Segment Information (Text Block)

9 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

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 JKHY cloud-based 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, Automated Clearing House ("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 and many can be 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.

During the second quarter of fiscal 2021, Jack Henry's call center was consolidated into the Complementary segment. As a result of this consolidation, an immaterial adjustment was made during the third quarter of fiscal 2021 to reclassify revenue and related costs recognized during the three and nine months ended March 31, 2020 from the Core to the Complementary segment. The revenue amounts reclassified were $5,320 for the three months ended March 31, 2020, and $14,795 for the nine months ended March 31, 2020. The cost of revenue amounts reclassified were $3,442 for the three months ended March 31, 2020, and $8,992 for the nine months ended March 31, 2020. An additional immaterial adjustment was made after the quarter ended December 31, 2019 to reclassify cost of revenue recognized in the year-to-date period of fiscal 2020 from the Corporate & Other to the Payments segment to be consistent with the current allocation of cost of revenue by segment. There was no amount reclassified for the three months ended March 31, 2020 and $131 for the nine months ended March 31, 2020.

			Three Months Ended
			March 31, 2021
			Core						Payments						Complementary						Corporate & Other						Total
REVENUE
Services and Support			$	126,400					$	15,978					$	100,421					$	11,840					$	254,639
Processing			8,749						144,863						25,010						515						179,137
Total Revenue			135,149						160,841						125,431						12,355						433,776
Cost of Revenue			63,259						87,628						54,207						62,676						267,770
Research and Development																											27,395
Selling, General, and Administrative																											47,408
Total Expenses																											342,573
SEGMENT INCOME			$	71,890					$	73,213					$	71,224					$	(50,321)
OPERATING INCOME																											91,203
INTEREST INCOME (EXPENSE)																											(266)
INCOME BEFORE INCOME TAXES																											$	90,937

			Three Months Ended
			March 31, 2020
			Core						Payments						Complementary						Corporate & Other						Total
REVENUE
Services and Support			$	133,362					$	19,506					$	103,680					$	13,656					$	270,204
Processing			7,758						130,854						20,304						286						159,202
Total Revenue			141,120						150,360						123,984						13,942						429,406
Cost of Revenue			62,699						80,836						52,133						62,903						258,571
Research and Development																											28,308
Selling, General, and Administrative																											50,589
Total Expenses																											337,468
SEGMENT INCOME			$	78,421					$	69,524					$	71,851					$	(48,961)
OPERATING INCOME																											91,938
INTEREST INCOME (EXPENSE)																											32
INCOME BEFORE INCOME TAXES																											$	91,970

			Nine Months Ended
			March 31, 2021
			Core						Payments						Complementary						Corporate & Other						Total
REVENUE
Services and Support			397,744						47,089						307,799						33,877						786,509
Processing			25,509						425,667						69,394						859						521,429
Total Revenue			423,253						472,756						377,193						34,736						1,307,938
Cost of Revenue			185,668						260,411						158,638						183,764						788,481
Research and Development																											80,233
Selling, General, and Administrative																											136,801
Total Expenses																											1,005,515
SEGMENT INCOME			$	237,585					$	212,345					$	218,555					$	(149,028)
OPERATING INCOME																											302,423
INTEREST INCOME (EXPENSE)																											(381)
INCOME BEFORE INCOME TAXES																											$	302,042

			Nine Months Ended
			March 31, 2020
			Core						Payments						Complementary						Corporate & Other						Total
REVENUE
Services and Support			$	402,759					$	51,643					$	306,083					$	43,731					$	804,216
Processing			23,150						400,508						58,054						602						482,314
Total Revenue			425,909						452,151						364,137						44,333						1,286,530
Cost of Revenue			181,697						236,725						152,376						182,831						753,629
Research and Development																											80,086
Selling, General, and Administrative																											148,985
Total Expenses																											982,700
SEGMENT INCOME			$	244,212					$	215,426					$	211,761					$	(138,498)
OPERATING INCOME																											303,830
INTEREST INCOME (EXPENSE)																											573
INCOME BEFORE INCOME TAXES																											$	304,403

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

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- References

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- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 280
-URI http://asc.fasb.org/topic&trid=2134510

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