Revenue and Deferred Costs Revenue and Deferred Costs (Notes)

9 Months Ended

Mar. 31, 2021

Revenue from Contract with Customer [Abstract]

REVENUE AND DEFERRED COSTS

Revenue Recognition

The Company generates revenue from data processing, transaction processing, software licensing and related services, professional services, and hardware sales.

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.


	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
Private & Public Cloud1	$	128,703	$	120,443	$	374,160	$	344,922
Product Delivery & Services	49,235		72,891		154,547		205,962
On-Premise Support2	76,701		76,870		257,802		253,332
Services & Support	254,639		270,204		786,509		804,216

Processing	179,137		159,202		521,429		482,314

Total Revenue	$	433,776	$	429,406	$	1,307,938	$	1,286,530

1 The name of this revenue stream was changed in third quarter fiscal 2021 from "outsourcing and cloud" to "private and public cloud" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

2 The name of this revenue stream was changed in third quarter fiscal 2021 from "in-house support" to "on-premise support" to better reflect the nature of the related revenue. However, the nature of the revenue included within this caption has not changed and is the same in the current quarter and year-to-date period as it was in the comparative periods of fiscal 2020 and prior.

Contract Balances

The following table provides information about contract assets and contract liabilities from contracts with customers.


	March 31, 2021		June 30, 2020
Receivables, net	$	207,736	$	300,945
Contract Assets- Current	18,439		21,609
Contract Assets- Non-current	52,920		54,293
Contract Liabilities (Deferred Revenue)- Current	141,110		318,161
Contract Liabilities (Deferred Revenue)- Non-current	70,928		71,461

Contract assets primarily result from revenue being recognized when or as control of a solution or service is transferred to the customer, but where invoicing is contingent upon the completion of other performance obligations or payment terms differ from the provisioning of services. The current portion of contract assets is reported within prepaid expenses and other in the condensed consolidated balance sheet, and the non-current portion is included in other non-current assets. Contract liabilities (deferred revenue) primarily relate to consideration received from customers in advance of delivery of the related goods and services to the customer. Contract balances are reported in a net contract asset or liability position on a contract-by-contract basis at the end of each reporting period.

The Company analyzes contract language to identify if a significant financing component does exist, and would adjust the transaction price for any material effects of the time value of money if the timing of payments provides either party to the contract with a significant benefit of financing the transaction.

During the three months ended March 31, 2021 and 2020, the Company recognized revenue of $77,911 and $87,768, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods. For the nine months ended March 31, 2021 and 2020, the Company recognized revenue of $207,804 and $216,684, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

Amounts recognized that relate to performance obligations satisfied (or partially satisfied) in prior periods were immaterial for each period presented. These adjustments are primarily the result of transaction price re-allocations due to changes in estimates of variable consideration.

Transaction Price Allocated to Remaining Performance Obligations

As of March 31, 2021, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $4,189,051. The Company expects to recognize approximately 26% over the next 12 months, 20% in 13-24 months, and the balance thereafter.

Contract Costs

The Company incurs incremental costs to obtain a contract as well as costs to fulfill contracts with customers that are expected to be recovered. These costs consist primarily of sales commissions, which are incurred only if a contract is obtained, and customer conversion or implementation-related costs. Capitalized costs are amortized based on the transfer of goods or services to which the asset relates, in line with the percentage of revenue recognized for each performance obligation to which the costs are allocated.

Capitalized costs totaled $299,413 and $271,010, at March 31, 2021 and June 30, 2020, respectively.

For the three months ended March 31, 2021 and 2020, amortization of deferred contract costs was $29,384 and $28,849, respectively. During the nine months ended March 31, 2021 and 2020, amortization of deferred contract costs totaled $92,004 and $88,063, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.