XML 27 R16.htm IDEA: XBRL DOCUMENT v3.21.2
Reportable Segment Information (Text Block)
 3 Months Ended
Sep. 30, 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 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 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 and 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 to reclassify revenue and related costs recognized during the three months ended September 30, 2020 from the Core to the Complementary segment. The revenue amount reclassified was $5,875 for the three months ended September 30, 2020 The cost of revenue amount reclassified was $3,699 for the three months ended September 30, 2020. An additional immaterial adjustment was made during the first quarter of fiscal 2022 to reclassify cost of revenue from the Core to the Corporate and Other segment to be consistent with the current allocation of cost of revenue by segment. The amount reclassified was $29 for the three months ended September 30, 2020.
Three Months Ended
September 30, 2021
CorePaymentsComplementaryCorporate and OtherTotal
REVENUE
Services and Support$155,838 $15,650 $114,953 $11,053 $297,494 
Processing9,447 153,972 26,528 615 190,562 
Total Revenue165,285 169,622 141,481 11,668 488,056 
Cost of Revenue66,902 93,226 55,485 61,023 276,636 
Research and Development26,754 
Selling, General, and Administrative51,071 
Total Expenses354,461 
SEGMENT INCOME$98,383 $76,396 $85,996 $(49,355)
OPERATING INCOME133,595 
INTEREST INCOME (EXPENSE)(241)
INCOME BEFORE INCOME TAXES$133,354 

Three Months Ended
September 30, 2020
CorePaymentsComplementaryCorporate and OtherTotal
REVENUE
Services and Support$144,586 $16,304 $108,550 $11,557 $280,997 
Processing8,569 140,429 21,805 — 170,803 
Total Revenue153,155 156,733 130,355 11,557 451,800 
Cost of Revenue63,861 86,328 52,024 60,716 262,929 
Research and Development26,057 
Selling, General, and Administrative45,226 
Total Expenses334,212 
SEGMENT INCOME$89,294 $70,405 $78,331 $(49,159)
OPERATING INCOME117,588 
INTEREST INCOME (EXPENSE)(49)
INCOME BEFORE INCOME TAXES$117,539 
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.