10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

(X)	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the quarterly period ended December 31, 2015
OR
( )	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
	For the transition period from ______________ to ________________

Commission file number 0-14112

JACK HENRY & ASSOCIATES, INC.

(Exact name of registrant as specified in its charter)

Delaware	43-1128385
(State or Other Jurisdiction of Incorporation)	(I.R.S Employer Identification No.)

663 Highway 60, P.O. Box 807, Monett, MO 65708

(Address of Principle Executive Offices)

(Zip Code)

417-235-6652

(Registrant’s telephone number, including area code)

N/A

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes [ X ]  No [  ]

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).

Yes [ X ]  No [  ]

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” ”accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	[X]		Accelerated filer	[ ]
Non-accelerated filer	[  ]	(Do not check if a smaller reporting company)	Smaller reporting company	[ ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act)  

Yes [  ] No [ X ]

APPLICABLE ONLY TO CORPORATE ISSUERS

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

As of February 2, 2016, the Registrant had 78,861,707 shares of Common Stock outstanding ($0.01 par value).

TABLE OF CONTENTS

		Page Reference
PART I	FINANCIAL INFORMATION
ITEM 1.	Condensed Consolidated Balance Sheets as of December 31, 2015 and June 30, 2015 (Unaudited)	5
	Condensed Consolidated Statements of Income for the Three and Six Months Ended December 31, 2015 and 2014 (Unaudited)	6
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended December 31, 2015 and 2014 (Unaudited)	7
	Notes to Condensed Consolidated Financial Statements (Unaudited)	8
ITEM 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	16
ITEM 3.	Quantitative and Qualitative Disclosures about Market Risk	22
ITEM 4.	Controls and Procedures	23
PART II	OTHER INFORMATION	23
ITEM 2.	Unregistered Sales Of Equity Securities And Use Of Proceeds	23
ITEM 6.	Exhibits	24
	Signatures	24

In this report, all references to “JHA”, the “Company”, “we”, “us”, and “our”, refer to Jack Henry & Associates, Inc., and its wholly owned subsidiaries.

FORWARD LOOKING STATEMENTS

Certain statements in this report, other than purely historical information, including estimates, projections, statements relating to our business plans, objectives and expected operating results, and the assumptions upon which those statements are based, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements may appear throughout this report, including without limitation, in Management's Discussion and Analysis of Financial Condition and Results of Operations. Forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” and similar expressions. Forward-looking statements are based on current expectations and assumptions that are subject to risks and uncertainties which may cause actual results to differ materially from the forward-looking statements. Risks and uncertainties that could cause actual results and events to differ materially from such forward-looking statements are identified at “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended June 30, 2015. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events, or otherwise.

3

PART I. FINANCIAL INFORMATION

ITEM I. FINANCIAL STATEMENTS

4

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In Thousands, Except Share and Per Share Data)
(Unaudited)
	December 31, 2015			June 30, 2015
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	55,126		$	148,313
Receivables, net	147,091			245,387
Income tax receivable	3,116			2,753
Prepaid expenses and other	74,941			69,096
Deferred costs	39,743			27,950
Total current assets	320,017			493,499
PROPERTY AND EQUIPMENT, net	302,091			296,332
OTHER ASSETS:
Non-current deferred costs	101,276			96,423
Computer software, net of amortization	214,992			191,541
Other non-current assets	57,364			52,432
Customer relationships, net of amortization	118,461			122,204
Other intangible assets, net of amortization	38,408			34,038
Goodwill	556,256			550,366
Total other assets	1,086,757			1,047,004
Total assets	$	1,708,865		$	1,836,835
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable	$	5,653		$	9,933
Accrued expenses	74,469			78,962
Accrued income taxes	—			5,543
Deferred income tax liability	7,034			7,034
Notes payable and current maturities of long term debt	323			2,595
Deferred revenues	246,272			339,544
Total current liabilities	333,751			443,611
LONG TERM LIABILITIES:
Non-current deferred revenues	193,873			192,443
Non-current deferred income tax liability	158,419			150,223
Debt, net of current maturities	100,000			50,102
Other long-term liabilities	10,348			8,922
Total long term liabilities	462,640			401,690
Total liabilities	796,391			845,301
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	—			—
Common stock - $0.01 par value; 250,000,000 shares authorized; 102,817,013 shares issued at December 31, 2015; 102,695,214 shares issued at June 30, 2015	1,028			1,027
Additional paid-in capital	429,855			424,536
Retained earnings	1,337,185			1,266,443
Less treasury stock at cost 23,962,117 shares at December 31, 2015; 21,842,632 shares at June 30, 2015	(855,594		)	(700,472		)
Total stockholders' equity	912,474			991,534
Total liabilities and equity	$	1,708,865		$	1,836,835

See notes to condensed consolidated financial statements

5

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In Thousands, Except Per Share Data)
(Unaudited)
	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2015			2014			2015			2014
REVENUE
License	$	634		$	491		$	2,237		$	994
Support and service	320,219			296,905			627,966			585,121
Hardware	12,019			13,898			24,287			26,652
Total revenue	332,872			311,294			654,490			612,767
COST OF SALES
Cost of license	498			308			680			717
Cost of support and service	181,989			170,377			356,703			335,467
Cost of hardware	7,958			9,574			16,726			18,959
Total cost of sales	190,445			180,259			374,109			355,143
GROSS PROFIT	142,427			131,035			280,381			257,624
OPERATING EXPENSES
Selling and marketing	22,231			22,175			43,982			43,838
Research and development	18,862			17,681			37,416			34,472
General and administrative	16,547			11,514			33,659			28,025
Total operating expenses	57,640			51,370			115,057			106,335
OPERATING INCOME	84,787			79,665			165,324			151,289
INTEREST INCOME (EXPENSE)
Interest income	91			28			204			85
Interest expense	(276		)	(337		)	(496		)	(603		)
Total interest income (expense)	(185		)	(309		)	(292		)	(518		)
INCOME BEFORE INCOME TAXES	84,602			79,356			165,032			150,771
PROVISION FOR INCOME TAXES	25,254			25,474			54,318			50,802
NET INCOME	$	59,348		$	53,882		$	110,714		$	99,969
Basic earnings per share	$	0.75		$	0.66		$	1.38		$	1.22
Basic weighted average shares outstanding	79,473			81,432			80,009			81,813
Diluted earnings per share	$	0.74		$	0.66		$	1.38		$	1.22
Diluted weighted average shares outstanding	79,770			81,634			80,252			82,112

See notes to condensed consolidated financial statements

6

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In Thousands)
(Unaudited)
	Six Months Ended
	December 31,
	2015			2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	110,714		$	99,969
Adjustments to reconcile net income from operations      to net cash from operating activities:
Depreciation	25,973			27,471
Amortization	37,012			31,945
Change in deferred income taxes	6,267			(4,527		)
Excess tax benefits from stock-based compensation	(301		)	(4,006		)
Expense for stock-based compensation	5,112			4,583
(Gain)/loss on disposal of assets	(290		)	(5,315		)
Changes in operating assets and liabilities:
Change in receivables	98,487			76,151
Change in prepaid expenses, deferred costs and other	(27,913		)	(31,555		)
Change in accounts payable	(4,280		)	(2,627		)
Change in accrued expenses	(6,687		)	1,263
Change in income taxes	(4,204		)	11,878
Change in deferred revenues	(92,911		)	(78,332		)
Net cash from operating activities	146,979			126,898
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(8,275		)	—
Capital expenditures	(31,506		)	(27,389		)
Proceeds from sale of assets	2,747			8,242
Internal use software	(8,183		)	(7,432		)
Computer software developed	(47,903		)	(36,820		)
Net cash from investing activities	(93,120		)	(63,399		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	100,000			70,000
Repayments on credit facilities	(52,374		)	(4,669		)
Purchase of treasury stock	(155,122		)	(112,803		)
Dividends paid	(39,972		)	(35,961		)
Excess tax benefits from stock-based compensation	301			4,006
Proceeds from issuance of common stock upon exercise of stock options	1			402
Minimum tax withholding payments related to share based compensation	(2,501		)	(7,680		)
Proceeds from sale of common stock, net	2,621			2,161
Net cash from financing activities	(147,046		)	(84,544		)
NET CHANGE IN CASH AND CASH EQUIVALENTS	$	(93,187	)	$	(21,045	)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	$	148,313		$	70,377
CASH AND CASH EQUIVALENTS, END OF PERIOD	$	55,126		$	49,332

See notes to condensed consolidated financial statements

7

JACK HENRY & ASSOCIATES, INC. AND SUBSIDIARIES

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(In Thousands, Except Per Share Amounts)

(Unaudited)

NOTE 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the Company

Jack Henry & Associates, Inc. and subsidiaries (“JHA” or the “Company”) is a provider of integrated computer systems and services that has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide together with computer equipment (hardware), by providing the conversion and implementation services for financial institutions to utilize JHA systems, and by providing other related services. JHA also provides continuing support and services to customers using in-house or outsourced systems.

Consolidation

The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated.

Comprehensive Income

Comprehensive income for the three and six months ended December 31, 2015 and 2014 equals the Company’s net income.

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At December 31, 2015, there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at December 31, 2015 is $855,594. During the first six months of fiscal 2016, the Company repurchased 2,120 treasury shares for $155,122. At June 30, 2015, there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares.

Dividends declared per share were $0.25 and $0.22, for thethree months ended December 31, 2015 and 2014, respectively. For the six months ended December 31, 2015 and 2014, dividends declared per share were $0.50 and $0.44, respectively.

Interim Financial Statements

The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K  (“Form 10-K”) for the fiscal year endedJune 30, 2015. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2015.

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company as of December 31, 2015, the results of its operations for the three and six months ending December 31, 2015 and 2014, and its cash flows for the six months ending December 31, 2015 and 2014. The condensed consolidated balance sheet at June 30, 2015 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements.

The results of operations for the period ended December 31, 2015 are not necessarily indicative of the results to be expected for the entire year.

8

Litigation

We are subject to various routine legal proceedings and claims, including the following:

In 2013 a patent infringement lawsuit entitled DataTreasury Corporation v. Jack Henry & Associates, Inc. et. al. was filed against the Company, several subsidiaries and a number of customer financial institutions in the US District Court for the Eastern District of Texas.  The complaint seeks damages, interest, injunctive relief, and attorneys' fees for the alleged infringement of two patents, as well as trebling of damage awards for alleged willful infringement.  We believe we have strong defenses and have defended the lawsuit vigorously.  A part of that defense has been the filing of challenges to the validity of plaintiff's patents in post-grant proceedings at the Patent Trial and Appeal Board ("PTAB") of the U.S. Patent and Trademark Office. On April 29, July 8, and September 1 2015, the PTAB issued decisions holding that all relevant claims of the plaintiff's patents are unpatentable and invalid.  DataTreasury has appealed the PTAB decisions to the U.S. Court of Appeals for the Federal Circuit.  At this stage, we cannot make a reasonable estimate of possible loss or range of loss, if any, arising from this lawsuit.

NOTE 2.    FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, amounts receivable or payable and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The fair value of long term debt also approximates carrying value as estimated using discounted cash flows based on the Company’s current incremental borrowing rates.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

Fair value of financial assets, included in cash and cash equivalents, and financial liabilities is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
December 31, 2015
Financial Assets:
Money market funds	$	23,854	$	—	$	—	$	23,854
Financial Liabilities:
Revolving credit facility	$	—	$	100,000	$	—	$	100,000
June 30, 2015
Financial Assets:
Money market funds	$	98,888	$	—	$	—	$	98,888
Financial Liabilities:
Revolving credit facility	$	—	$	50,000	$	—	$	50,000

NOTE 3: RECENT ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in May 2014. The new standard will supersede much of the existing authoritative literature for revenue recognition. In August 2015, the FASB also issued ASU No. 2015-14 which deferred the effective date of the new standard by one year. The standard and related amendments will be effective for the Company for its annual reporting period beginning July 1, 2018, including interim periods within that reporting period. Along with the deferral of the effective date, ASU No. 2015-14 allows early application as of the original effective date. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect as of the beginning of the period of adoption. The Company is currently evaluating the newly issued guidance,

9

including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability (same treatment as debt discounts). ASU No. 2015-03 will be effective for the Company in its fiscal year ended June 30, 2017. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company currently classifies debt issuance costs as an asset, and will adopt these changes beginning July 1, 2016.

ASU No. 2015-17 was issued by the FASB in November 2015 as part of the Simplification Initiative. This ASU eliminates the requirement to separate deferred income tax liabilities and assets into non-current and current amounts. ASU No. 2015-17 is effective for the Company for its annual reporting period beginning July 1, 2017 and early adoption is permitted. Management is currently considering options with regard to early adoption but has yet to conclude on an adoption date. Upon adoption, the Company will report all deferred income tax assets and liabilities as non-current.

NOTE 4.    DEBT

The Company’s outstanding long and short term debt is as follows:

	December 31,		June 30,
	2015		2015
LONG TERM DEBT
Revolving credit facility	$	100,000	$	50,000
Capital leases	—		816
	100,000		50,816
Less current maturities	—		714
Debt, net of current maturities	$	100,000	$	50,102

SHORT TERM DEBT
Capital leases	$	323	$	1,881
Current maturities of long-term debt	—		714
Notes payable and current maturities of long term debt	$	323	$	2,595

Capital leases

The Company has entered into various capital lease obligations for the use of certain computer equipment. The Company currently has short term capital lease obligations totaling $323 at December 31, 2015.

Revolving credit facility

The revolving credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $600,000. The credit facility bears interest at a variable rate equal to (a) a rate based on LIBOR or (b) an alternate base rate (the highest of (i) the Prime Rate for such day, (ii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iii) the Eurocurrency Rate for a one month Interest Period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company. The credit facility is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the agreement. As of December 31, 2015, the Company was in compliance with all such covenants. The revolving loan terminates February 20, 2020 and at December 31, 2015, the outstanding revolving loan balance was $100,000.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires April 30, 2017. At December 31, 2015, no amount was outstanding.

Interest

The Company paid interest of $333 and $415 during the six months endedDecember 31, 2015 and 2014, respectively.

Property and Equipment

Property and equipment included $1,940 and $3,897 in accrued liabilities or acquired via capital lease at December 31, 2015 and 2014, respectively. These amounts were excluded from capital expenditures on the statement of cash flows.

10

NOTE 5.    INCOME TAXES

The effective tax rate was 29.9% of income before income taxes for the quarter ended December 31, 2015, compared to 32.1% for the same quarter in fiscal 2015. The decrease in effective tax rate was primarily due to the Research and Experimentation Credit ("R&E Credit"), which was retroactively and permanently extended in December 2015.

The Company paid income taxes of $52,254 and $43,450 in the six months endedDecember 31, 2015 and 2014, respectively.

At December 31, 2015, the Company had $8,438 of gross unrecognized tax benefits, $6,917 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,415 and $1,652 related to uncertain tax positions at December 31, 2015 and 2014, respectively.

The U.S. federal and state income tax returns for Fiscal 2012 and all subsequent years remain subject to examination as of December 31, 2015 under statute of limitations rules. We anticipate potential changes could reduce the unrecognized tax benefits balance by $1,500 - $2,500 within twelve months of December 31, 2015.

NOTE 6.    STOCK-BASED COMPENSATION

Our pre-tax operating income for the three months endedDecember 31, 2015 and 2014 includes $3,142 and $2,516 of equity-based compensation costs, respectively. For the six months endedDecember 31, 2015 and 2014, equity-based compensation costs totaled $5,112 and $4,583, respectively.

2005 NSOP and 1996 SOP

The Company previously issued options to employees under the 1996 Stock Option Plan (“1996 SOP”) and to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No stock options were issued by the Company during the three months endedDecember 31, 2015.

A summary of option plan activity under these plans are as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2015	100	23.07
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding December 31, 2015	100	$	23.07	$	5,499
Vested December 31, 2015	100	$	23.07	$	5,499
Exercisable December 31, 2015	100	$	23.07	$	5,499

Compensation cost related to outstanding options has now been fully recognized. The weighted average remaining contractual term on options currently exercisable as of December 31, 2015 was 2.66 years.

Restricted Stock Plan

The Company issues both share awards and unit awards under the Restricted Stock Plan. The following table summarizes non-vested share awards as of December 31, 2015, as well as activity for the six months then ended:

Share awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	72		34.28
Granted	22		65.77
Vested	(21	)	41.89
Forfeited	(11	)	22.51
Outstanding December 31, 2015	62		$	44.70

At December 31, 2015, there was $1,505 of compensation expense that has yet to be recognized related to non-vested restricted stock share awards, which will be recognized over a weighted-average period of 1.12 years.

11

The following table summarizes non-vested unit awards as of December 31, 2015, as well as activity for the six months then ended:

Unit awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	499		48.13
Granted	130		75.99
Vested	(97	)	43.74
Forfeited	(101	)	45.89
Outstanding December 31, 2015	431		$	58.06

The Company utilized a Monte Carlo pricing model customized to the specific provisions of the Company’s plan design to value unit awards subject to performance targets on the grant dates. The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 118 unit awards granted in fiscal 2016 are as follows:

Volatility	15.6	%
Risk free interest rate	1.06	%
Dividend yield	1.5	%
Stock Beta	0.741

The remaining 12 unit awards granted are not subject to performance targets, and therefore the estimated fair value at measurement date is valued in the same manner as restricted stock award grants.

At December 31, 2015, there was $14,838 of compensation expense that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted-average period of 1.58 years.

NOTE 7.    EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Net Income	$	59,348	$	53,882	$	110,714	$	99,969
Common share information:
Weighted average shares outstanding for basic earnings per share	79,473		81,432		80,009		81,813
Dilutive effect of stock options and restricted stock	297		202		243		299
Weighted average shares outstanding for diluted earnings per share	79,770		81,634		80,252		82,112
Basic earnings per share	$	0.75	$	0.66	$	1.38	$	1.22
Diluted earnings per share	$	0.74	$	0.66	$	1.38	$	1.22

Per share information is based on the weighted average number of common shares outstanding for the three and six months ended December 31, 2015 and 2014. Stock options and restricted stock have been included in the calculation of earnings per share to the extent they are dilutive. There were no anti-dilutive stock options and restricted stock shares excluded for the three month period endedDecember 31, 2015 (170  shares were excluded for the three month period endedDecember 31, 2014). For the six months endedDecember 31, 2015, there were no anti-dilutive stock options and restricted stock shares excluded, and there were 134 excluded for the six months endedDecember 31, 2014.

12

NOTE 8.    BUSINESS ACQUISITION

Bayside Business Solutions, Inc.

Effective July 1, 2015, the Company acquired all of the equity interests of Bayside Business Solutions, an Alabama-based company that provides technology solutions and payment processing services primarily for the financial services industry, for $10,000 paid in cash. This acquisition was funded using existing operating cash. The acquisition of Bayside Business Solutions expanded the Company’s presence in commercial lending within the industry.

Management has completed a preliminary purchase price allocation of Bayside Business Solutions and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of July 1, 2015 are set forth below:

Current assets	$	1,922
Long-term assets	253
Identifiable intangible assets	5,005
Total liabilities assumed	(3,064		)
Total identifiable net assets	4,116
Goodwill	5,884
Net assets acquired	$	10,000

The amounts shown above may change in the near term as management continues to evaluate the income tax implications of this business combination.

The goodwill of $5,884 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Bayside Business Solutions, together with the value of Bayside Business Solutions’ assembled workforce. Goodwill from this acquisition, none of which is expected to be deductible for income tax purposes, has been allocated in our Banking Systems and Services segment, as we have commenced our integration of this company within that reporting unit.

Identifiable intangible assets from this acquisition consist of customer relationships of $3,402, $659 of computer software and other intangible assets of $944. The weighted average amortization period for acquired customer relationships, acquired computer software, and other intangible assets is 15 years, 5 years, and 20 years, respectively.

Current assets were inclusive of cash acquired of $1,725. The fair value of current assets acquired included accounts receivable of $178. The gross amount of receivables was $178, none of which was expected to be uncollectible.

During fiscal year 2016, the Company incurred $55 in costs related to the acquisition of Bayside Business Solutions.These costs included fees for legal, valuation and other fees. These costs were included within general and administrative expenses.

The results of Bayside Business Solutions’ operations included in the Company’s consolidated statement of operations for the six months ended December 31, 2015 included revenue of $1,730 and after-tax net loss of $310.

The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.

NOTE 9.    REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. The Company’s operations are classified into two reportable segments: bank systems and services (“Bank”) and credit union systems and services (“Credit Union”). The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue.

13

	Three Months Ended							Three Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	563	$	71	$	634		$	288	$	203	$	491
Support and service	232,731		87,488		320,219			229,107		67,798		296,905
Hardware	7,735		4,284		12,019			10,130		3,768		13,898
Total revenue	241,029		91,843		332,872			239,525		71,769		311,294
COST OF SALES
Cost of license	448		50		498			184		124		308
Cost of support and service	137,787		44,202		181,989			134,034		36,343		170,377
Cost of hardware	4,979		2,979		7,958			6,887		2,687		9,574
Total cost of sales	143,214		47,231		190,445			141,105		39,154		180,259
GROSS PROFIT	$	97,815	$	44,612	142,427			98,420		32,615		131,035
OPERATING EXPENSES					57,640							51,370
INTEREST INCOME (EXPENSE)					(185		)					(309		)
INCOME BEFORE INCOME TAXES					$	84,602						$	79,356

	Six Months Ended							Six Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	1,809	$	428	$	2,237		$	729	$	265	$	994
Support and service	460,354		167,612		627,966			450,322		134,799		585,121
Hardware	15,579		8,708		24,287			19,874		6,778		26,652
Total revenue	477,742		176,748		654,490			470,925		141,842		612,767
COST OF SALES
Cost of license	562		118		680			550		167		717
Cost of support and service	273,153		83,550		356,703			262,920		72,547		335,467
Cost of hardware	10,532		6,194		16,726			14,058		4,901		18,959
Total cost of sales	284,247		89,862		374,109			277,528		77,615		355,143
GROSS PROFIT	$	193,495	$	86,886	$	280,381		$	193,397	$	64,227	257,624
OPERATING EXPENSES					115,057							106,335
INTEREST INCOME (EXPENSE)					(292		)					(518		)
INCOME BEFORE INCOME TAXES					$	165,032						$	150,771

14

	December 31,		June 30,
	2015		2015
Property and equipment, net
Bank systems and services	$	269,682	$	263,231
Credit Union systems and services	32,409		33,101
Total	$	302,091	$	296,332
Intangible assets, net
Bank systems and services	$	699,015	$	664,231
Credit Union systems and services	229,102		233,918
Total	$	928,117	$	898,149

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

15

ITEM 2.   MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

This discussion and analysis should be read in conjunction with the condensed consolidated financial statements and the accompanying notes to the condensed consolidated financial statements included in this Form 10-Q for the quarter ended December 31, 2015.

OVERVIEW

Jack Henry & Associates, Inc. (JHA) is a leading provider of technology solutions and payment processing services primarily for financial services organizations. Its solutions are marketed and supported through three primary brands. Jack Henry Banking® supports banks ranging from community to multi-billion dollar institutions with information and transaction processing solutions. Symitar® is a leading provider of information and transaction processing solutions for credit unions of all sizes. ProfitStars® provides specialized products and services that enable financial institutions of every asset size and charter, and diverse corporate entities outside the financial services industry, to mitigate and control risks, optimize revenue and growth opportunities, and contain costs. JHA's integrated solutions are available for in-house installation and outsourced and hosted delivery.

A significant portion of our revenue is derived from recurring outsourcing fees and transaction processing fees that predominantly have contract terms of five years or greater at inception. Support and service fees also include in-house maintenance fees on primarily annual contract terms. Less predictable software license fees and hardware sales complement our primary revenue sources. We continually seek opportunities to increase revenue while at the same time containing costs to expand margins.

RESULTS OF OPERATIONS

In the second quarter of fiscal 2016, revenues increased 7% or $21,578 compared to the same period in the prior year, with strong growth continuing in our support and service revenues, particularly our electronic payment services and our bundled services revenue. Cost of sales increased 6%, as the Company continues to focus on cost management, which contributed to a 9% increase in gross margin. Operating expenses increased 12% compared to the second quarter of fiscal 2015. Operating expenses in the prior year quarter were lower due mainly to the gain on sale of the TeleWeb suite of products in the prior year quarter, resulting in the increase this year. The provision for income taxes decreased 1% compared to the prior quarter. The increased revenue and above changes resulted in a combined 10% increase in net income for the second quarter of fiscal 2016.

In the six months endedDecember 31, 2015, revenues increased 7% or $41,723 compared to the same six months last year, with strong growth continuing in our support & service revenue, particularly electronic payment services and outsourcing services. Cost of sales increased 5% and operating expenses increased 8% for the six month period ended December 31, 2015. Provision for income taxes increased 7% compared to the prior year-to-date period. The increased revenue and above changes resulted in an 11% increase in net income for the six month period.

We move into the third quarter of fiscal 2016 following strong performance in the second quarter. Significant portions of our business continue to come from recurring revenue and our healthy sales pipeline is also encouraging. Our customers continue to face regulatory and operational challenges which our products and services address, and in these times they have an even greater need for our solutions that directly address institutional profitability and efficiency. Our strong balance sheet, access to extensive lines of credit, the strength of our existing product line and an unwavering commitment to superior customer service position us well to address current and future opportunities.

A detailed discussion of the major components of the results of operations for the three and six months ending December 31, 2015 follows. All dollar amounts are in thousands and discussions compare the current three and six months ending December 31, 2015 to the prior year three and six months ending December 31, 2014.

REVENUE

License Revenue	Three Months Ended December 31,				% Change		Six Months Ended December 31,				% Change
	2015		2014				2015		2014
License	$	634	$	491	29	%	$	2,237	$	994	125	%
Percentage of total revenue	<1%		<1%				<1%		<1%

Non-bundled license revenue increased for both the quarter-to-date and year-to-date periods due mainly to an increase in standalone license sales in both our Banking and Credit Union segments. Such license fees will fluctuate as non-bundled license sales are sporadic in nature.

16

Support and Service Revenue	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Support and service	$	320,219		$	296,905		8	%	$	627,966		$	585,121		7	%
Percentage of total revenue	96		%	95		%			96		%	95		%
	Qtr over Qtr								Year over Year
	$ Change			% Change					$ Change			% Change
In-House Support & Other Services	$	3,792		5		%			$	8,047		5		%
Electronic Payment Services	8,975			7		%			16,141			7		%
Outsourcing Services	5,005			7		%			12,691			10		%
Implementation Services	(3,524		)	(18		)%			(5,001		)	(13		)%
Bundled Products & Services	9,066			97		%			10,967			67		%
Total Increase	$	23,314							$	42,845

There was growth in most support and service revenue components in the second quarter of fiscal 2016 compared to the same quarter last year, as well as in the year-to-date period ended December 31, 2015.

In-house support and other services revenue increased due to annual maintenance renewal fee increases for both core and complementary products as our customers’ assets grow.

Electronic payment services continue to experience significant dollar growth. The revenue increase in both the quarter and year-to-date periods is attributable to strong performance across debit/credit card transaction processing services, online bill payment services and ACH processing. There has also been an increase in termination revenues, which are fees charged on agreements canceled prior to the end of the contracted term.

Outsourcing services for banks and credit unions continue to drive revenue growth as customers continue to show a preference for outsourced delivery of our solutions. We expect the trend towards outsourced product delivery to benefit outsourcing services revenue for the foreseeable future. Revenues from outsourcing services are typically earned under multi-year service contracts and therefore provide a long-term stream of recurring revenues.

Implementation services include implementation services for our electronic payment services customers as well as standalone customization services, merger conversion services, image conversion services and network monitoring services. Implementation services revenue decreased due to a decrease in both banking and credit union standalone implementations compared to the prior year given increases in implementation services related to our bundled arrangements.

Bundled products and services revenue is combined revenue from the multiple elements in our bundled arrangements, including license, implementation services and maintenance, which cannot be recognized separately due to a lack of vendor-specific objective evidence of fair value. Bundled products and services revenue increased quarter-to-date and year-to-date over last year mainly due to increased revenues from our core and complementary credit union arrangements.

Hardware Revenue	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Hardware	$	12,019		$	13,898		(14	)%	$	24,287		$	26,652		(9	)%
Percentage of total revenue	4		%	4		%			4		%	4		%

Hardware revenue decreased over both time frames due to a decrease in complementary hardware products delivered. Although there will be quarterly fluctuations, we expect an overall decreasing trend in hardware sales to continue due to the change in sales mix towards outsourcing contracts, which typically do not include hardware, and the general deflationary trend of computer prices.

17

COST OF SALES AND GROSS PROFIT

	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Cost of License	$	498		$	308		62	%	$	680		$	717		(5	)%
Percentage of total revenue	<1%			<1%					<1%			<1%
License Gross Profit	$	136		$	183		(26	)%	$	1,557		$	277		462	%
Gross Profit Margin	21		%	37		%			70		%	28		%
Cost of support and service	$	181,989		$	170,377		7	%	$	356,703		$	335,467		6	%
Percentage of total revenue	55		%	55		%			55		%	55		%
Support and Service Gross Profit	$	138,230		$	126,528		9	%	$	271,263		$	249,654		9	%
Gross Profit Margin	43		%	43		%			43		%	43		%
Cost of hardware	$	7,958		$	9,574		(17	)%	$	16,726		$	18,959		(12	)%
Percentage of total revenue	2		%	3		%			3		%	3		%
Hardware Gross Profit	$	4,061		$	4,324		(6	)%	$	7,561		$	7,693		(2	)%
Gross Profit Margin	34		%	31		%			31		%	29		%
TOTAL COST OF SALES	$	190,445		$	180,259		6	%	$	374,109		$	355,143		5	%
Percentage of total revenue	57		%	58		%			57		%	58		%
TOTAL GROSS PROFIT	$	142,427		$	131,035		9	%	$	280,381		$	257,624		9	%
Gross Profit Margin	43		%	42		%			43		%	42		%

Cost of license consists of the direct costs of third party software that are a part of a non-bundled arrangement. Non-bundled license sales are sporadic in nature, and shifts in the sales mix between the products that make up the associated costs cause fluctuations in the margins from period to period.

Gross profit margins in support and service remained consistent with the prior year in both the quarter and year-to-date periods.

In general, changes in cost of hardware trend consistently with hardware revenue. For the current period, margins were slightly higher due to increased sales of higher margin hardware upgrade products.

OPERATING EXPENSES

Selling and Marketing	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Selling and marketing	$	22,231		$	22,175		—	%	$	43,982		$	43,838		—	%
Percentage of total revenue	7		%	7		%			7		%	7		%

Selling and marketing expenses for fiscal 2016 remained consistent compared to the same periods in fiscal 2015 and remained a consistent percentage of total revenue in both periods.

Research and Development	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Research and development	$	18,862		$	17,681		7	%	$	37,416		$	34,472		9	%
Percentage of total revenue	6		%	6		%			6		%	6		%

Research and development expenses have increased for both the quarter and year-to-date, primarily due to increased headcount and related personnel costs, however remained consistent with the prior year as a percentage of total revenue.

18

General and Administrative	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
General and administrative	$	16,547		$	11,514		44	%	$	33,659		$	28,025		20	%
Percentage of total revenue	5		%	4		%			5		%	5		%

General and administrative expenses in the current quarter were higher than in the same quarter of fiscal 2015. General and administrative expenses in the prior year quarter were lower due mainly to the gain on sale of the TeleWeb suite of Internet and mobile banking software products to Data Center, Inc in the prior year quarter, resulting in the increase this year. Increased headcount and related personnel costs also contributed to the quarter-to-date and year-to-date increases.

INTEREST INCOME AND EXPENSE	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Interest Income	$	91		$	28		225	%	$	204		$	85		140	%
Interest Expense	$	(276	)	$	(337	)	(18	)%	$	(496	)	$	(603	)	(18	)%

Interest income fluctuated due to changes in invested balances and yields on invested balances. Interest expense remained low for both the current and prior periods.

PROVISION FOR INCOME TAXES	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Provision For Income Taxes	$	25,254		$	25,474		(1	)%	$	54,318		$	50,802		7	%
Effective Rate	29.9		%	32.1		%			32.9		%	33.7		%

The decrease in effective tax rate was primarily due to the Research and Experimentation Credit ("R&E Credit"), which was retroactively and permanently extended in December 2015.

NET INCOME

Net income increased 10% to $59,348 for the second quarter of fiscal 2016, compared to $53,882 in the same period of fiscal 2015. Year-to-date net income increased from $99,969, or $1.22 per diluted share, in fiscal 2015 to $110,714, or $1.38 per diluted share, in fiscal 2016 through the second quarter. This translates to an increase of 11% in net income year-to-date over the last fiscal year.

REPORTABLE SEGMENT DISCUSSION

The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. The Company’s operations are classified into two reportable segments: bank systems and services (“Bank”) and credit union systems and services (“Credit Union”). The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue.

Bank Systems and Services
	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Revenue	$	241,029		$	239,525		1	%	$	477,742		$	470,925		1	%
Gross profit	$	97,815		$	98,420		(1	)%	$	193,495		$	193,397		—	%
Gross profit margin	41		%	41		%			41		%	41		%

Revenue in the Bank segment increased 1% compared to the equivalent quarter last fiscal year, with increased support & services revenues being partially offset by reduced hardware and implementation revenue. The increase in support & service revenue was driven by a 6% increase in outsourcing services.

19

Year-to-date revenue also increased 1% over the same six month period in the prior fiscal year, due mainly to growth in the support and services category, driven by a 9% increase in outsourcing revenue. The increase was partially offset by a decrease in hardware revenues compared to the prior year-to-date period.

Gross profit margins remained consistent in both the quarter-to-date and year-to-date periods.

Credit Union Systems and Services
	Three Months Ended December 31,						% Change		Six Months Ended December 31,						% Change
	2015			2014					2015			2014
Revenue	$	91,843		$	71,769		28	%	$	176,748		$	141,842		25	%
Gross profit	$	44,612		$	32,615		37	%	$	86,886		$	64,227		35	%
Gross profit margin	49		%	45		%			49		%	45		%

Revenue in the Credit Union segment for the three months ended December 31, 2015 increased 28% due mainly to increases in support & service revenue. Support & service revenues grew 29% through increases in electronic payment services and bundled services.

Revenue also grew 25% in the Credit Union segment for the six months of fiscal 2016 compared to the same period in fiscal 2015. This was driven by a 24% increase in support and service revenue through increases in electronic payment services, in-house maintenance renewals, and bundled services.

Gross profit margins for the Credit Union segment increased mainly due to economies of scale realized from growing transaction volume in our payment processing services.

LIQUIDITY AND CAPITAL RESOURCES

The Company's cash and cash equivalents decreased to $55,126 at December 31, 2015 from $148,313 at June 30, 2015. The decrease from June 30, 2015 is primarily due to repurchases of treasury stock during the first half of fiscal 2016.

The following table summarizes net cash from operating activities in the statement of cash flows:

	Six Months Ended
	December 31,
	2015			2014
Net income	$	110,714		$	99,969
Non-cash expenses	73,773			50,151
Change in receivables	98,487			76,151
Change in deferred revenue	(92,911		)	(78,332		)
Change in other assets and liabilities	(43,084		)	(21,041		)
Net cash provided by operating activities	$	146,979		$	126,898

Cash provided by operating activities increased 16% compared to the same period last year. Cash from operations is primarily used to repay debt, pay dividends, repurchase stock, and for capital expenditures.

Cash used in investing activities for the first six months of fiscal 2016 totaled $93,120 and included capital expenditures on facilities and equipment of $31,506, mainly for the purchase of computer equipment and aircraft, $47,903 for the ongoing enhancements and development of existing and new product service offerings, $8,275, net of cash acquired, for the acquisition of Bayside Business Solutions, and $8,183 for the purchase and development of internal use software. This was partially offset by $2,747 proceeds from the sale of assets. Cash used in investing activities for the first six months of fiscal 2015 totaled $63,399 and included capital expenditures of $27,389, $36,820 for the development of software and $7,432 for the purchase and development of internal use software, partially offset by $8,242 proceeds from the sale of assets, mainly related to the TeleWeb suite of Internet and mobile banking software products to Data Center Inc. (DCI).

Financing activities used cash of $147,046 for the first six months of fiscal 2016. Cash used was $155,122 for the purchase of treasury shares, repayment of the revolving credit facility and capital leases of $52,374, and dividends paid to stockholders of $39,972. This was partially offset by borrowings of $100,000 against our revolving credit facility

20

and $422 net cash inflow from the issuance of stock and tax related to stock-based compensation. Financing activities used cash in the first six months of fiscal 2015 of $84,544. Cash used was $112,803 for the purchase of treasury shares, dividends paid to stockholders of $35,961, repayments of capital leases of $4,669, and $1,111 net cash outflow from the issuance of stock and tax related to stock-based compensation. Cash used was offset by $70,000 of borrowings on our revolving credit facility.

At December 31, 2015, the Company had negative working capital of $13,734, however, the largest component of current liabilities was deferred revenue of $246,272, which primarily relates to our annual in-house maintenance agreements and deferred bundled product and service arrangements. The cash outlay necessary to provide the services related to these deferred revenues is significantly less than this recorded balance. In addition, we have not experienced any significant issues with our current collection efforts and we have access to remaining lines of credit in excess of $200,000. We continue to generate substantial cash inflows from operations. Therefore, we do not anticipate any liquidity problems arising from this condition.

Capital Requirements and Resources

The Company generally uses existing resources and funds generated from operations to meet its capital requirements.Capital expenditures totaling $31,506 and $27,389 for the six months ending December 31, 2015 and December 31, 2014, respectively, were made primarily for additional equipment and the improvement of existing facilities. These additions were funded from cash generated by operations. Total consolidated capital expenditures on facilities and equipment for the Company for fiscal year 2016 are not expected to exceed $50,000 and will be funded from cash generated by operations.

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At December 31, 2015, there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at December 31, 2015 is $855,594. During the first six months of fiscal 2016, the Company repurchased 2,120 treasury shares for $155,122. At June 30, 2015, there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares.

Capital leases

The Company has entered into various capital lease obligations for the use of certain computer equipment. The Company currently has short term capital lease obligations totaling $323 at December 31, 2015.

Revolving credit facility

The revolving credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $600,000. The credit facility bears interest at a variable rate equal to (a) a rate based on LIBOR or (b) an alternate base rate (the highest of (i) the Prime Rate for such day, (ii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iii) the Eurocurrency Rate for a one month Interest Period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company. The credit facility is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the agreement. As of December 31, 2015, the Company was in compliance with all such covenants. The revolving loan terminates February 20, 2020 and at December 31, 2015, the outstanding revolving loan balance was $100,000.

Other lines of credit

The Company has an unsecured bank credit line on which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires April 30, 2017. At December 31, 2015, no amount was outstanding.

21

ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk refers to the risk that a change in the level of one or more market prices, interest rates, indices, volatilities, correlations or other market factors such as liquidity, will result in losses for a certain financial instrument or group of financial instruments. We are currently exposed to credit risk on credit extended to customers and interest risk on outstanding debt. We do not currently use any derivative financial instruments. We actively monitor these risks through a variety of controlled procedures involving senior management.

Based on the controls in place and the credit worthiness of the customer base, we believe the credit risk associated with the extension of credit to our customers will not have a material adverse effect on our consolidated financial position, results of operations, or cash flows.

Based on our outstanding debt with variable interest rates as of December 31, 2015, a 1% increase in our borrowing rate would increase our annual interest expense by $1,000.

22

ITEM 4. CONTROLS AND PROCEDURES

An evaluation was carried out under the supervision and with the participation of our management, including the Company's Chief Executive Officer ("CEO") and Chief Financial Officer ("CFO"), of the effectiveness of the design and operation of our disclosure controls and procedures pursuant to Exchange Act Rules 13a-15 and 15d-15. Based upon that evaluation, the CEO and CFO concluded that, due to the material weakness discussed in Management's Annual Report on Internal Control over Financial Reporting related to our accounting for multiple element software arrangements, our disclosure controls and procedures were not effective to ensure that information we are required to disclose in reports that we file or submit under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in SEC rules and forms. For this purpose, disclosure controls and procedures include controls and procedures designed to ensure that information that is required to be disclosed under the Exchange Act is accumulated and communicated to the Company's management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

For additional information regarding the restatements of certain of the company’s historical financial results and the material weakness identified by management, see “Item 9A. Controls and Procedures” and Management's Annual Report on Internal Control over Financial Reporting in the Company’s Amendment No. 1 to its Annual Report on Form 10-K/A for the year ended June 30, 2014, filed on June 2, 2015 with the SEC. Notwithstanding the material weakness identified by Company management, each of the Company's CEO and CFO has concluded, based on his knowledge, that the consolidated financial statements included in this Form 10-Q fairly present in all material respects the Company's financial condition, results of operations and cash flows of the Company as of, and for the periods presented in this report, in conformity with accounting principles generally accepted in the United States.

Changes in Internal Control over Financial Reporting

During the fiscal quarter ending December 31, 2015, there was no change in internal control over financial reporting that has materially affected, or is reasonably likely to affect, the Company's internal control over financial reporting. However, the Company is implementing a number of remediation steps to address the material weakness discussed in Management's Annual Report on Internal Control over Financial Reporting. With respect to the control deficiencies discussed therein, the following steps have been initiated.

i. Improve our risk assessment processes to identify inherent risks and complexities in accounting that could have financial reporting implications.

ii. Increase training and knowledge development for the individuals tasked with understanding various technical accounting matters associated with the Company's multiple element arrangement revenue recognition policies. Additionally, engage and retain experienced external advisors for technical assistance.

iii. Review and update our revenue recognition policies on a regular basis to incorporate changes in our business and accounting standards.

iv. Redesign of our contract review controls, focusing on key areas that may significantly impact revenue recognition.

v. Enhance the functionality of our systems and controls over reporting from the systems to account for bundled software arrangements properly.

vi. Develop improved internal audit programs and training for individuals tasked with monitoring our accounting for revenue recognition for multiple element software arrangements.

The Company expects that the measures described above should remediate the material weakness identified and strengthen our internal control over financial reporting. Management is committed to improving the Company's internal control processes. As the Company continues to evaluate and improve its internal controls, additional measures to address the material weakness or modifications to certain of the remediation procedures described above may be identified, which will be subject to audit procedures. The Company expects to complete the required remedial actions during fiscal 2016.

PART II. OTHER INFORMATION

ITEM 2.        UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

Issuer Purchases of Equity Securities

The following shares of the Company were repurchased during the quarter ended December 31, 2015:

23

	Total Number of Shares Purchased (1)	Average Price of Share		Total Number of Shares Purchased as Part of Publicly Announced Plans (1)	Maximum Number of Shares that May Yet Be Purchased Under the Plans (2)
October 1 - October 31, 2015	83	$	76.10	—	7,129,765
November 1 - November 30, 2015	508,413	78.01		508,252	6,621,513
December 1 - December 31, 2015	593,552	77.96		593,014	6,028,499
Total	1,102,048	77.98		1,101,266	6,028,499

⁽¹⁾1,101,266 shares were purchased through a publicly announced repurchase plan. There were 782 shares surrendered to the Company to satisfy tax withholding obligations in connection with employee restricted stock awards.

⁽²⁾ Total stock repurchase authorizations approved by the Company's Board of Directors as of February 17, 2015 were for 30.0 million shares. These authorizations have no specific dollar or share price targets and no expiration dates.

ITEM 6.        EXHIBITS

10.57 Form of Restricted Stock Unit Agreement under Jack Henry & Associates, Inc. 2015 Equity Incentive Plan(Non-Employee Directors).

31.1 Certification of the Chief Executive Officer.

31.2 Certification of the Chief Financial Officer.

32.1 Certification of the Chief Executive Officer Pursuant to 18 U.S.C. Section 1350.

32.2 Certification of the Chief Financial Officer Pursuant to 18 U.S.C. Section 1350.

101.INS* XBRL Instance Document

101.SCH* XBRL Taxonomy Extension Schema Document

101.CAL* XBRL Taxonomy Extension Calculation Linkbase Document

101.DEF* XBRL Taxonomy Extension Definition Linkbase Document

101.LAB* XBRL Taxonomy Extension Label Linkbase Document

101.PRE* XBRL Taxonomy Extension Presentation Linkbase Document

* Furnished with this quarterly report on Form 10-Q are the following documents formatted in XBRL (Extensible Business Reporting Language): (i) the Condensed Consolidated Balance Sheets at December 31, 2015 and June 30, 2015, (ii) the Condensed Consolidated Statements of Income for the three and sixDecember 31, 2015 and 2014, (iii) the Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2015 and 2014, and (iv) Notes to Condensed Consolidated Financial Statements.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this quarterly report of Form 10-Q to be signed on its behalf by the undersigned, thereunto duly authorized.

24

		JACK HENRY & ASSOCIATES, INC.
Date:	February 5, 2016	/s/ John F. Prim
		John F. Prim
		Chief Executive Officer and Chairman
Date:	February 5, 2016	/s/ Kevin D. Williams
		Kevin D. Williams
		Chief Financial Officer and Treasurer

25

EX-10.57

EXHIBIT 10.57

RESTRICTED STOCK UNIT AGREEMENT

UNDER

JACK HENRY & ASSOCIATES, INC. 2015 EQUITY INCENTIVE PLAN

(Non-Employee Directors)

THIS AGREEMENT is made as of the __ day of _________, ____, and is between Jack Henry & Associates, Inc., a Delaware corporation (hereinafter called the “Company”), and _______________ (hereinafter called “Awardee”).

WHEREAS, the Board of Directors of the Company ("Board") and the stockholders of the Company have adopted the Jack Henry & Associates, Inc. 2015 Equity Incentive Plan (“Plan”) pursuant to which restricted stock units may be granted to directors of the Company; and

WHEREAS, the Company desires to make a restricted stock unit award to Awardee pertaining to ____________________(____) shares of the Company’s Common Stock (“Award”) under the terms hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and of the mutual agreements hereinafter set forth, the parties to this Agreement agree as follows:

1.Award Subject to Plan. This Award is made under and is expressly subject to all the terms and provisions of the Plan, a copy of which Awardee acknowledges has been given to Awardee, and which terms are incorporated herein by reference. Awardee agrees to be bound by all the terms and provisions of the Plan. Terms not defined herein shall have the meaning ascribed thereto in the Plan.

2.Grant of Award. Pursuant to the action of the Board, which action was taken to be effective on ____________, ____ (“Date of Award”), the Company awards to Awardee ____________________(_____) Restricted Stock Units (which directly relate to that same number of shares of Common Stock). Subject to the other terms and conditions of the Plan and this Agreement, settlement of each RSU as provided in Section 4 entitles Awardee to the issuance of one share of Common Stock, or, if permitted under the Plan and where the Board elects to settle an RSU for cash, a cash payment equal to the fair market value of the share underlying the RSU the Board elects to settle for cash.

3.Restrictions. Except as may be permitted under the Plan or by the Board, the RSUs are not transferable by sale, assignment, disposition, gift, exchange, pledge, hypothecation, or otherwise. Any attempted disposition of the RSUs, or the levy of any execution, attachment or similar process upon the RSUs prior to settlement, shall be null and void and without effect. Holding RSUs does not give Awardee the rights of a shareholder (including without limitation the right to vote or receive dividends or other distributions) with respect to shares of Common Stock underlying the RSUs that the Company may issue under the terms and conditions of this Agreement.

EXHIBIT 10.57

4.Settlement, Forfeiture and Share Issuance.

(a)Settlement Date. For purposes of this Agreement the Awardee’s “Settlement Date” shall be the earlier of (1) the day before the Company’s ____ Annual Meeting of the Stockholders or (2)____________, ____. During the period ending on the Settlement Date, the RSUs will be subject to the risk of forfeiture and will be nontransferable by the Awardee. If the Awardee’s directorship is terminated before the Vesting Date, except as provided below at (c), the Awardee shall forfeit all the RSUs.

(b)Form of Settlement.To the extent permissible under the Plan, the Committee, in its sole discretion, may elect to settle an RSU by issuing shares of Common Stock or by making a cash payment to Awardee in an amount equal to the then fair market value of the share of Common Stock underlying the RSU being settled, less any amounts necessary to satisfy the Company's tax withholding obligations.

(c) Other Settlement.

(i)Effect of Change in Control on Settlement. Upon a Change in Control of the Company, all RSUs shall be settled. In such event, settlement of the RSUs shall occur at the time of the Change in Control.

(ii)Effect of Death, Incapacity and Retirement on Settlement. Upon Awardee's death or termination of directorship due to Incapacity or “Retirement”, no forfeiture or accelerated settlement of the RSUs shall occur. Rather, on the Settlement Date, a pro rata portion of the RSUs subject to this Agreement shall be settled based on the portion of the year that elapsed from the Date of Award prior to Awardee's termination of directorship. For purposes of this Agreement, a "Retirement" means an Awardee's termination of directorship for the express reason of retirement, as determined by the Board or Committee in its sole discretion.

d. Forfeiture. Subject to the other provisions of this Section 4, all non-settled RSUs shall be forfeited if Awardee ceases to be a director of the Company prior to the Settlement Date. Upon any such forfeiture, under no circumstances will the Company be obligated to make any payment to Awardee, and no shares of Common Stock shall be issued, as a result of such forfeited RSUs.

e.Share Issuance. Except as otherwise provided herein, upon the settlement of a specific number of RSUs for shares of Common Stock as provided in this Section, the Company shall issue a corresponding number of shares of Common Stock to Awardee on the Settlement Date or change in

EXHIBIT 10.57

Control, provided that tax withholding obligations have been satisfied as provided in Section 5. The Company’s transfer agent may issue shares of Common Stock in certificated or book entry form as determined by the Company’s Corporate Secretary. Upon issuance of the Shares, Awardee shall have all rights of a shareholder with respect thereto including the right to vote and receive all dividends or other distributions made or paid with respect to the shares of Common Stock.

f.Payments to Third Party. On the Settlement Date following the death of Awardee, the shares of Common Stock, to the extent eligible to be issued, shall be issued to Awardee’s beneficiary named in a written beneficiary designation filed with the Company’s Corporate Secretary on a form for the Plan or, if there is no such designated beneficiary, to Awardee’s executor or administrator or other personal representative acceptable to the Corporate Secretary. Any request to pay any person or persons other than Awardee shall be accompanied by such documentation as the Company may reasonably require, including without limitation, evidence satisfactory to the Company of the authority of such person or persons to receive the payment.

5.Tax Withholding. Awardee understands and agrees that, at the time any tax withholding obligation arises in connection with the issuance of a share of Common Stock or, if permitted under the Plan, a cash payment, the Company may withhold, in shares of Common Stock if a valid election applies under this Section 5 or in cash from amounts the Company owes or will owe Awardee, any applicable minimum withholding, payroll and other required tax amounts due upon the issuance of shares of Common Stock or cash payment. Tax withholding may be made by any means permitted under the Plan, as approved by the Committee, and as permitted under the law. The valuation of the RSUs, and any shares of Common Stock that the Company may issue attributable to RSUs, for tax and other purposes shall be determined in accordance with all applicable laws and regulations. In the absence of the satisfaction of tax obligations, the Company may refuse to issue shares of Common Stock or make any other payment hereunder.

6.Dividends and Voting. Prior to an RSU settlement date, Awardee shall have no right to receive any dividends or dividend equivalent payments with respect to the RSUs. Awardee will have no voting rights with respect to any of the RSUs or the shares of Common Stock underlying the RSUs.

7.Administration. This Award has been made pursuant to a determination made by the Board, or a committee authorized by the Board, subject to the express terms of this Agreement, and the Board or such committee shall have plenary authority to interpret any provision of this Agreement and to make any determinations necessary or advisable for the administration of this Agreement and may waive or amend any provisions hereof in any manner not adversely affecting the rights granted to Awardee by the express terms hereof.

EXHIBIT 10.57

8. Choice of Law. This Agreement shall be governed by the laws of the State of Delaware, excluding any conflicts or choice of law rule or principle that might otherwise refer construction or interpretation of the Agreement to the substantive law of another jurisdiction. Awardee is deemed to submit to the exclusive jurisdiction and venue of the federal or state courts of Missouri to resolve any and all issues that may arise out of or relate to this agreement.

The Company has caused this Agreement to be executed on its behalf, and Awardee has signed this Agreement to evidence Awardee’s acceptance of the terms hereof, all as of the date first above written.

JACK HENRY & ASSOCIATES, INC.

By:

Title: CFO

AWARDEE

Name: _____________________

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, John F. Prim, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jack Henry & Associates, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter, (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the  registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 5, 2016

/s/ John F. Prim

John F. Prim

Chief Executive Officer

EX-31.2

EXHIBIT 31.2

CERTIFICATION

I, Kevin D. Williams, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Jack Henry & Associates, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter, (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the  registrant's auditors and the audit committee of registrant's board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal controls over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal controls over financial reporting.

Date: February 5, 2016

/s/ Kevin D. Williams

Kevin D. Williams

Chief Financial Officer

EX-32.1

EXHIBIT 32.1

Certification of the Chief Executive Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Executive Officer of Jack Henry & Associates, Inc. (the "Company"), hereby certify that the Quarterly Report on Form 10-Q of the Company for the six month period ended ended December 31, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  February 5, 2016

*/s/ John F. Prim

John F. Prim

Chief Executive Officer

*A signed original of this written statement required by Section 906 has been provided to Jack Henry & Associates, Inc. and will be retained by Jack Henry & Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2

EXHIBIT 32.2

Certification of the Chief Financial Officer

Pursuant to 18 U.S.C. Section 1350

Solely for the purposes of complying with 18 U.S.C. Section 1350, I, the undersigned Chief Financial Officer of Jack Henry & Associates, Inc. (the "Company"), hereby certify that the Quarterly Report on Form 10-Q of the Company for the six month period ended ended December 31, 2015 (the "Report") fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended, and that information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Dated:  February 5, 2016

*/s/ Kevin D. Williams

Kevin D. Williams

Chief Financial Officer

*A signed original of this written statement required by Section 906 has been provided to Jack Henry & Associates, Inc. and will be retained by Jack Henry & Associates, Inc. and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2015	Feb. 02, 2016
Document and Entity Information [Abstract]
Entity Registrant Name	HENRY JACK & ASSOCIATES INC
Entity Central Index Key	0000779152
Current Fiscal Year End Date	--06-30
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Dec. 31, 2015
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		78,861,707
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
CURRENT ASSETS:
Cash and cash equivalents	$ 55,126	$ 148,313
Receivables, net	147,091	245,387
Income tax receivable	3,116	2,753
Prepaid expenses and other	74,941	69,096
Deferred costs	39,743	27,950
Total current assets	320,017	493,499
PROPERTY AND EQUIPMENT, net	302,091	296,332
OTHER ASSETS:
Deferred Costs, Noncurrent	101,276	96,423
Computer software, net of amortization	214,992	191,541
Other non-current assets	57,364	52,432
Other intangible assets, net of amortization	38,408	34,038
Goodwill	556,256	550,366
Total other assets	1,086,757	1,047,004
Total assets	1,708,865	1,836,835
CURRENT LIABILITIES:
Accounts payable	5,653	9,933
Accrued expenses	74,469	78,962
Accrued income taxes	0	5,543
Deferred income tax liability	7,034	7,034
Notes payable and current maturities of long term debt	323	2,595
Deferred revenues	246,272	339,544
Total current liabilities	333,751	443,611
LONG TERM LIABILITIES:
Non-current deferred revenues	193,873	192,443
Non-current deferred income tax liability	158,419	150,223
Debt, net of current maturities	100,000	50,102
Other long-term liabilities	10,348	8,922
Total long term liabilities	462,640	401,690
Total liabilities	796,391	845,301
STOCKHOLDERS' EQUITY
Preferred stock - $1 par value; 500,000 shares authorized, none issued	0	0
Common stock - $0.01 par value; 250,000,000 shares authorized; 102,817,013 shares issued at December 31, 2015; 102,695,214 shares issued at June 30, 2015	1,028	1,027
Additional paid-in capital	429,855	424,536
Retained earnings	1,337,185	1,266,443
Less treasury stock at cost; 23,962,117 shares at December 31, 2015; 21,842,632 shares at June 30, 2015	(855,594)	(700,472)
Total stockholders' equity	912,474	991,534
Total liabilities and equity	1,708,865	1,836,835
Customer Relationships [Member]
OTHER ASSETS:
Customer Relationships, Net of Amortization	$ 118,461	$ 122,204

XML

CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares	Dec. 31, 2015	Jun. 30, 2015
Common stock, par value	$ 0.01	$ 0.01
Common stock, authorized shares	250,000,000	250,000,000
Common stock, issued shares	102,817,013	102,695,214
Preferred stock, par value	$ 1.00	$ 1.00
Preferred stock, authorized shares	500,000	500,000
Preferred stock, issued shares	0	0
Treasury Stock, Shares	23,962,117	21,842,632

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
REVENUE
License	$ 634	$ 491	$ 2,237	$ 994
Support and service	320,219	296,905	627,966	585,121
Hardware	12,019	13,898	24,287	26,652
Total revenue	332,872	311,294	654,490	612,767
COST OF SALES
License Costs	498	308	680	717
Cost of support and service	181,989	170,377	356,703	335,467
Cost of hardware	7,958	9,574	16,726	18,959
Total cost of sales	190,445	180,259	374,109	355,143
GROSS PROFIT	142,427	131,035	280,381	257,624
OPERATING EXPENSES
Selling and marketing	22,231	22,175	43,982	43,838
Research and development	18,862	17,681	37,416	34,472
General and administrative	16,547	11,514	33,659	28,025
Total operating expenses	57,640	51,370	115,057	106,335
OPERATING INCOME	84,787	79,665	165,324	151,289
INTEREST INCOME (EXPENSE)
Interest income	91	28	204	85
Interest expense	(276)	(337)	(496)	(603)
Total interest income (expense)	(185)	(309)	(292)	(518)
INCOME BEFORE INCOME TAXES	84,602	79,356	165,032	150,771
PROVISION FOR INCOME TAXES	25,254	25,474	54,318	50,802
NET INCOME	$ 59,348	$ 53,882	$ 110,714	$ 99,969
Earnings Per Share
Diluted earnings per share	$ 0.74	$ 0.66	$ 1.38	$ 1.22
Diluted weighted average shares outstanding	79,770	81,634	80,252	82,112
Basic earnings per share	$ 0.75	$ 0.66	$ 1.38	$ 1.22
Basic weighted average shares outstanding	79,473	81,432	80,009	81,813

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 110,714	$ 99,969
Adjustments to reconcile net income to net cash from operating activities:
Depreciation	25,973	27,471
Amortization	37,012	31,945
Change in deferred income taxes	6,267	(4,527)
Excess tax benefits from stock-based compensation, Operating Activities	(301)	(4,006)
Expense for stock-based compensation	5,112	4,583
Gain/loss on disposal of assets	(290)	(5,315)
Changes in operating assets and liabilities:
Change in receivables	98,487	76,151
Change in prepaid expenses, deferred costs and other	(27,913)	(31,555)
Change in accounts payable	(4,280)	(2,627)
Change in accrued expenses	(6,687)	1,263
Change in income taxes	(4,204)	11,878
Change in deferred revenues	(92,911)	(78,332)
Net cash from operating activities	146,979	126,898
CASH FLOWS FROM INVESTING ACTIVITIES:
Payment for acquisitions, net of cash acquired	(8,275)	0
Capital expenditures	(31,506)	(27,389)
Proceeds from sale of assets	2,747	8,242
Internal use software	(8,183)	(7,432)
Computer software developed	(47,903)	(36,820)
Net cash from investing activities	(93,120)	(63,399)
CASH FLOWS FROM FINANCING ACTIVITIES:
Borrowings on credit facilities	100,000	70,000
Repayments on credit facilities	(52,374)	(4,669)
Purchase of treasury stock	(155,122)	(112,803)
Dividends paid	(39,972)	(35,961)
Excess tax benefits from stock-based compensation, Financing Activities	301	4,006
Proceeds from issuance of common stock upon exercise of stock options	1	402
Minimum tax withholding payments related to option exercises	(2,501)	(7,680)
Proceeds from sale of common stock, net	2,621	2,161
Net cash from financing activities	(147,046)	(84,544)
NET CHANGE IN CASH AND CASH EQUIVALENTS	(93,187)	(21,045)
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD	148,313	70,377
CASH AND CASH EQUIVALENTS, END OF PERIOD	$ 55,126	$ 49,332

XML

Nature of Operations and Summary of Significant Accounting Policies (Text Block)

6 Months Ended

Dec. 31, 2015

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Operations and Summary of Significant Accounting Policies [Text Block]

NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Description of the Company

Jack Henry & Associates, Inc. and subsidiaries (“JHA” or the “Company”) is a provider of integrated computer systems and services that has developed and acquired a number of banking and credit union software systems. The Company's revenues are predominately earned by marketing those systems to financial institutions nationwide together with computer equipment (hardware), by providing the conversion and implementation services for financial institutions to utilize JHA systems, and by providing other related services. JHA also provides continuing support and services to customers using in-house or outsourced systems.

Consolidation

The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated.

Comprehensive Income

Comprehensive income for the three and six months ended December 31, 2015 and 2014 equals the Company’s net income.

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At December 31, 2015, there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at December 31, 2015 is $855,594. During the first six months of fiscal 2016, the Company repurchased 2,120 treasury shares for $155,122. At June 30, 2015, there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares.

Dividends declared per share were $0.25 and $0.22, for thethree months ended December 31, 2015 and 2014, respectively. For the six months ended December 31, 2015 and 2014, dividends declared per share were $0.50 and $0.44, respectively.

Interim Financial Statements

The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions to Form 10-Q of the Securities and Exchange Commission and in accordance with accounting principles generally accepted in the United States of America applicable to interim condensed consolidated financial statements, and do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete consolidated financial statements. The condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and accompanying notes, which are included in its Annual Report on Form 10-K  (“Form 10-K”) for the fiscal year endedJune 30, 2015. The accounting policies followed by the Company are set forth in Note 1 to the Company's consolidated financial statements included in its Form 10-K for the fiscal year ended June 30, 2015.

In the opinion of the management of the Company, the accompanying unaudited condensed consolidated financial statements reflect all adjustments necessary (consisting of normal recurring adjustments) to state fairly the financial position of the Company as of December 31, 2015, the results of its operations for the three and six months ending December 31, 2015 and 2014, and its cash flows for the six months ending December 31, 2015 and 2014. The condensed consolidated balance sheet at June 30, 2015 was derived from audited annual financial statements, but does not contain all of the footnote disclosures from the annual financial statements.

The results of operations for the period ended December 31, 2015 are not necessarily indicative of the results to be expected for the entire year.

Litigation

We are subject to various routine legal proceedings and claims, including the following:

In 2013 a patent infringement lawsuit entitled DataTreasury Corporation v. Jack Henry & Associates, Inc. et. al. was filed against the Company, several subsidiaries and a number of customer financial institutions in the US District Court for the Eastern District of Texas.  The complaint seeks damages, interest, injunctive relief, and attorneys' fees for the alleged infringement of two patents, as well as trebling of damage awards for alleged willful infringement.  We believe we have strong defenses and have defended the lawsuit vigorously.  A part of that defense has been the filing of challenges to the validity of plaintiff's patents in post-grant proceedings at the Patent Trial and Appeal Board ("PTAB") of the U.S. Patent and Trademark Office. On April 29, July 8, and September 1 2015, the PTAB issued decisions holding that all relevant claims of the plaintiff's patents are unpatentable and invalid.  DataTreasury has appealed the PTAB decisions to the U.S. Court of Appeals for the Federal Circuit.  At this stage, we cannot make a reasonable estimate of possible loss or range of loss, if any, arising from this lawsuit.

XML

Fair Value of Financial Instruments Fair Value of Financial Instruments (Text Block)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE OF FINANCIAL INSTRUMENTS

For cash equivalents, amounts receivable or payable and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The fair value of long term debt also approximates carrying value as estimated using discounted cash flows based on the Company’s current incremental borrowing rates.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

Fair value of financial assets, included in cash and cash equivalents, and financial liabilities is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
December 31, 2015
Financial Assets:
Money market funds	$	23,854	$	—	$	—	$	23,854
Financial Liabilities:
Revolving credit facility	$	—	$	100,000	$	—	$	100,000
June 30, 2015
Financial Assets:
Money market funds	$	98,888	$	—	$	—	$	98,888
Financial Liabilities:
Revolving credit facility	$	—	$	50,000	$	—	$	50,000

XML

Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block)

6 Months Ended

Dec. 31, 2015

New Accounting Pronouncements and Changes in Accounting Principles [Abstract]

New Accounting Pronouncements, Policy [Policy Text Block]

RECENT ACCOUNTING PRONOUNCEMENTS

The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2014-09, Revenue from Contracts with Customers in May 2014. The new standard will supersede much of the existing authoritative literature for revenue recognition. In August 2015, the FASB also issued ASU No. 2015-14 which deferred the effective date of the new standard by one year. The standard and related amendments will be effective for the Company for its annual reporting period beginning July 1, 2018, including interim periods within that reporting period. Along with the deferral of the effective date, ASU No. 2015-14 allows early application as of the original effective date. Entities are allowed to transition to the new standard by either recasting prior periods or recognizing the cumulative effect as of the beginning of the period of adoption. The Company is currently evaluating the newly issued guidance, including which transition approach will be applied and the estimated impact it will have on our consolidated financial statements.

In April 2015, the FASB issued ASU No. 2015-03, Interest-Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs. This ASU requires that debt issuance costs be presented in the balance sheet as a direct deduction from the carrying amount of the related debt liability (same treatment as debt discounts). ASU No. 2015-03 will be effective for the Company in its fiscal year ended June 30, 2017. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. The Company currently classifies debt issuance costs as an asset, and will adopt these changes beginning July 1, 2016.

ASU No. 2015-17 was issued by the FASB in November 2015 as part of the Simplification Initiative. This ASU eliminates the requirement to separate deferred income tax liabilities and assets into non-current and current amounts. ASU No. 2015-17 is effective for the Company for its annual reporting period beginning July 1, 2017 and early adoption is permitted. Management is currently considering options with regard to early adoption but has yet to conclude on an adoption date. Upon adoption, the Company will report all deferred income tax assets and liabilities as non-current.

XML

Debt (Text Block)

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Debt and Capital Leases Disclosures [Text Block]

DEBT

The Company’s outstanding long and short term debt is as follows:

	December 31,		June 30,
	2015		2015
LONG TERM DEBT
Revolving credit facility	$	100,000	$	50,000
Capital leases	—		816
	100,000		50,816
Less current maturities	—		714
Debt, net of current maturities	$	100,000	$	50,102

SHORT TERM DEBT
Capital leases	$	323	$	1,881
Current maturities of long-term debt	—		714
Notes payable and current maturities of long term debt	$	323	$	2,595

Capital leases

The Company has entered into various capital lease obligations for the use of certain computer equipment. The Company currently has short term capital lease obligations totaling $323 at December 31, 2015.

Revolving credit facility

The revolving credit facility allows for borrowings of up to $300,000, which may be increased by the Company at any time until maturity to $600,000. The credit facility bears interest at a variable rate equal to (a) a rate based on LIBOR or (b) an alternate base rate (the highest of (i) the Prime Rate for such day, (ii) the sum of the Federal Funds Effective Rate for such day plus 0.50% and (iii) the Eurocurrency Rate for a one month Interest Period on such day for dollars plus 1.0%), plus an applicable percentage in each case determined by the Company's leverage ratio. The credit facility is guaranteed by certain subsidiaries of the Company. The credit facility is subject to various financial covenants that require the Company to maintain certain financial ratios as defined in the agreement. As of December 31, 2015, the Company was in compliance with all such covenants. The revolving loan terminates February 20, 2020 and at December 31, 2015, the outstanding revolving loan balance was $100,000.

Other lines of credit

The Company has an unsecured bank credit line which provides for funding of up to $5,000 and bears interest at the prime rate less 1%. The credit line expires April 30, 2017. At December 31, 2015, no amount was outstanding.

Interest

The Company paid interest of $333 and $415 during the six months endedDecember 31, 2015 and 2014, respectively.

Property and Equipment

Property and equipment included $1,940 and $3,897 in accrued liabilities or acquired via capital lease at December 31, 2015 and 2014, respectively. These amounts were excluded from capital expenditures on the statement of cash flows.

XML

Income Taxes (Text Block)

6 Months Ended

Dec. 31, 2015

Income Tax Disclosure [Abstract]

Income Tax Disclosure [Text Block]

INCOME TAXES

The effective tax rate was 29.9% of income before income taxes for the quarter ended December 31, 2015, compared to 32.1% for the same quarter in fiscal 2015. The decrease in effective tax rate was primarily due to the Research and Experimentation Credit ("R&E Credit"), which was retroactively and permanently extended in December 2015.

The Company paid income taxes of $52,254 and $43,450 in the six months endedDecember 31, 2015 and 2014, respectively.

At December 31, 2015, the Company had $8,438 of gross unrecognized tax benefits, $6,917 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,415 and $1,652 related to uncertain tax positions at December 31, 2015 and 2014, respectively.

The U.S. federal and state income tax returns for Fiscal 2012 and all subsequent years remain subject to examination as of December 31, 2015 under statute of limitations rules. We anticipate potential changes could reduce the unrecognized tax benefits balance by $1,500 - $2,500 within twelve months of December 31, 2015.

XML

Stock Based Compensation (Text Block)

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK-BASED COMPENSATION

Our pre-tax operating income for the three months endedDecember 31, 2015 and 2014 includes $3,142 and $2,516 of equity-based compensation costs, respectively. For the six months endedDecember 31, 2015 and 2014, equity-based compensation costs totaled $5,112 and $4,583, respectively.

2005 NSOP and 1996 SOP

The Company previously issued options to employees under the 1996 Stock Option Plan (“1996 SOP”) and to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No stock options were issued by the Company during the three months endedDecember 31, 2015.

A summary of option plan activity under these plans are as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2015	100	23.07
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding December 31, 2015	100	$	23.07	$	5,499
Vested December 31, 2015	100	$	23.07	$	5,499
Exercisable December 31, 2015	100	$	23.07	$	5,499

Compensation cost related to outstanding options has now been fully recognized. The weighted average remaining contractual term on options currently exercisable as of December 31, 2015 was 2.66 years.

Restricted Stock Plan

The Company issues both share awards and unit awards under the Restricted Stock Plan. The following table summarizes non-vested share awards as of December 31, 2015, as well as activity for the six months then ended:

Share awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	72		34.28
Granted	22		65.77
Vested	(21	)	41.89
Forfeited	(11	)	22.51
Outstanding December 31, 2015	62		$	44.70

At December 31, 2015, there was $1,505 of compensation expense that has yet to be recognized related to non-vested restricted stock share awards, which will be recognized over a weighted-average period of 1.12 years.

The following table summarizes non-vested unit awards as of December 31, 2015, as well as activity for the six months then ended:

Unit awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	499		48.13
Granted	130		75.99
Vested	(97	)	43.74
Forfeited	(101	)	45.89
Outstanding December 31, 2015	431		$	58.06

The Company utilized a Monte Carlo pricing model customized to the specific provisions of the Company’s plan design to value unit awards subject to performance targets on the grant dates. The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 118 unit awards granted in fiscal 2016 are as follows:

Volatility	15.6	%
Risk free interest rate	1.06	%
Dividend yield	1.5	%
Stock Beta	0.741

The remaining 12 unit awards granted are not subject to performance targets, and therefore the estimated fair value at measurement date is valued in the same manner as restricted stock award grants.

At December 31, 2015, there was $14,838 of compensation expense that has yet to be recognized related to non-vested restricted stock unit awards, which will be recognized over a weighted-average period of 1.58 years.

XML

Earnings Per Share Earnings Per Share (Text Block)

6 Months Ended

Dec. 31, 2015

Earnings Per Share [Abstract]

Earnings Per Share [Text Block]

EARNINGS PER SHARE

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Net Income	$	59,348	$	53,882	$	110,714	$	99,969
Common share information:
Weighted average shares outstanding for basic earnings per share	79,473		81,432		80,009		81,813
Dilutive effect of stock options and restricted stock	297		202		243		299
Weighted average shares outstanding for diluted earnings per share	79,770		81,634		80,252		82,112
Basic earnings per share	$	0.75	$	0.66	$	1.38	$	1.22
Diluted earnings per share	$	0.74	$	0.66	$	1.38	$	1.22

Per share information is based on the weighted average number of common shares outstanding for the three and six months ended December 31, 2015 and 2014. Stock options and restricted stock have been included in the calculation of earnings per share to the extent they are dilutive. There were no anti-dilutive stock options and restricted stock shares excluded for the three month period endedDecember 31, 2015 (170  shares were excluded for the three month period endedDecember 31, 2014). For the six months endedDecember 31, 2015, there were no anti-dilutive stock options and restricted stock shares excluded, and there were 134 excluded for the six months endedDecember 31, 2014.

XML

Business Acquisitions (Text Block)

6 Months Ended

Dec. 31, 2015

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Business Combination Disclosure [Text Block]

BUSINESS ACQUISITION

Bayside Business Solutions, Inc.

Effective July 1, 2015, the Company acquired all of the equity interests of Bayside Business Solutions, an Alabama-based company that provides technology solutions and payment processing services primarily for the financial services industry, for $10,000 paid in cash. This acquisition was funded using existing operating cash. The acquisition of Bayside Business Solutions expanded the Company’s presence in commercial lending within the industry.

Management has completed a preliminary purchase price allocation of Bayside Business Solutions and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of July 1, 2015 are set forth below:

Current assets	$	1,922
Long-term assets	253
Identifiable intangible assets	5,005
Total liabilities assumed	(3,064		)
Total identifiable net assets	4,116
Goodwill	5,884
Net assets acquired	$	10,000

The amounts shown above may change in the near term as management continues to evaluate the income tax implications of this business combination.

The goodwill of $5,884 arising from this acquisition consists largely of the growth potential, synergies and economies of scale expected from combining the operations of the Company with those of Bayside Business Solutions, together with the value of Bayside Business Solutions’ assembled workforce. Goodwill from this acquisition, none of which is expected to be deductible for income tax purposes, has been allocated in our Banking Systems and Services segment, as we have commenced our integration of this company within that reporting unit.

Identifiable intangible assets from this acquisition consist of customer relationships of $3,402, $659 of computer software and other intangible assets of $944. The weighted average amortization period for acquired customer relationships, acquired computer software, and other intangible assets is 15 years, 5 years, and 20 years, respectively.

Current assets were inclusive of cash acquired of $1,725. The fair value of current assets acquired included accounts receivable of $178. The gross amount of receivables was $178, none of which was expected to be uncollectible.

During fiscal year 2016, the Company incurred $55 in costs related to the acquisition of Bayside Business Solutions.These costs included fees for legal, valuation and other fees. These costs were included within general and administrative expenses.

The results of Bayside Business Solutions’ operations included in the Company’s consolidated statement of operations for the six months ended December 31, 2015 included revenue of $1,730 and after-tax net loss of $310.

The impact of this acquisition was considered immaterial to both the current and prior periods of our consolidated financial statements and pro forma financial information has not been provided.

XML

Business Segment Information (Text Block)

6 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for in-house installations or outsourced services) for banks and credit unions. The Company’s operations are classified into two reportable segments: bank systems and services (“Bank”) and credit union systems and services (“Credit Union”). The Company evaluates the performance of its segments and allocates resources to them based on various factors, including prospects for growth, return on investment, and return on revenue.

	Three Months Ended							Three Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	563	$	71	$	634		$	288	$	203	$	491
Support and service	232,731		87,488		320,219			229,107		67,798		296,905
Hardware	7,735		4,284		12,019			10,130		3,768		13,898
Total revenue	241,029		91,843		332,872			239,525		71,769		311,294
COST OF SALES
Cost of license	448		50		498			184		124		308
Cost of support and service	137,787		44,202		181,989			134,034		36,343		170,377
Cost of hardware	4,979		2,979		7,958			6,887		2,687		9,574
Total cost of sales	143,214		47,231		190,445			141,105		39,154		180,259
GROSS PROFIT	$	97,815	$	44,612	142,427			98,420		32,615		131,035
OPERATING EXPENSES					57,640							51,370
INTEREST INCOME (EXPENSE)					(185		)					(309		)
INCOME BEFORE INCOME TAXES					$	84,602						$	79,356

	Six Months Ended							Six Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	1,809	$	428	$	2,237		$	729	$	265	$	994
Support and service	460,354		167,612		627,966			450,322		134,799		585,121
Hardware	15,579		8,708		24,287			19,874		6,778		26,652
Total revenue	477,742		176,748		654,490			470,925		141,842		612,767
COST OF SALES
Cost of license	562		118		680			550		167		717
Cost of support and service	273,153		83,550		356,703			262,920		72,547		335,467
Cost of hardware	10,532		6,194		16,726			14,058		4,901		18,959
Total cost of sales	284,247		89,862		374,109			277,528		77,615		355,143
GROSS PROFIT	$	193,495	$	86,886	$	280,381		$	193,397	$	64,227	257,624
OPERATING EXPENSES					115,057							106,335
INTEREST INCOME (EXPENSE)					(292		)					(518		)
INCOME BEFORE INCOME TAXES					$	165,032						$	150,771

	December 31,		June 30,
	2015		2015
Property and equipment, net
Bank systems and services	$	269,682	$	263,231
Credit Union systems and services	32,409		33,101
Total	$	302,091	$	296,332
Intangible assets, net
Bank systems and services	$	699,015	$	664,231
Credit Union systems and services	229,102		233,918
Total	$	928,117	$	898,149

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

XML

Nature of Operations and Summary of Significant Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2015

Accounting Policies [Abstract]

Consolidation

Consolidation

The condensed consolidated financial statements include the accounts of JHA and all of its subsidiaries, which are wholly-owned, and all intercompany accounts and transactions have been eliminated.

Common Stock

Common Stock

The Board of Directors has authorized the Company to repurchase shares of its common stock. Under this authorization, the Company may finance its share repurchases with available cash reserves or short-term borrowings on its existing credit facilities. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At December 31, 2015, there were 23,962 shares in treasury stock and the Company had the remaining authority to repurchase up to 6,028 additional shares. The total cost of treasury shares at December 31, 2015 is $855,594. During the first six months of fiscal 2016, the Company repurchased 2,120 treasury shares for $155,122. At June 30, 2015, there were 21,843 shares in treasury stock and the Company had authority to repurchase up to 8,148 additional shares.

Dividends declared per share were $0.25 and $0.22, for thethree months ended December 31, 2015 and 2014, respectively.

XML

Fair Value of Financial Instruments Fair Value of Financial Instruments (Policies)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments, Policy [Policy Text Block]

For cash equivalents, amounts receivable or payable and short-term borrowings, fair values approximate carrying value, based on the short-term nature of the assets and liabilities. The fair value of long term debt also approximates carrying value as estimated using discounted cash flows based on the Company’s current incremental borrowing rates.

The Company's estimates of the fair value for financial assets and financial liabilities are based on the framework established in the fair value accounting guidance. The framework is based on the inputs used in valuation, gives the highest priority to quoted prices in active markets, and requires that observable inputs be used in the valuations when available. The three levels of the hierarchy are as follows:

Level 1: inputs to the valuation are quoted prices in an active market for identical assets

Level 2: inputs to the valuation include quoted prices for similar assets in active markets that are observable either directly or indirectly

Level 3: valuation is based on significant inputs that are unobservable in the market and the Company's own estimates of assumptions that we believe market participants would use in pricing the asset

XML

Fair Value of Financial Instruments Fair Value of Financial Instruments (Tables)

6 Months Ended

Dec. 31, 2015

Fair Value Disclosures [Abstract]

Fair Value, Assets Measured on Recurring Basis [Table Text Block]

Fair value of financial assets, included in cash and cash equivalents, and financial liabilities is as follows:

	Estimated Fair Value Measurements						Total Fair
	Level 1		Level 2		Level 3		Value
December 31, 2015
Financial Assets:
Money market funds	$	23,854	$	—	$	—	$	23,854
Financial Liabilities:
Revolving credit facility	$	—	$	100,000	$	—	$	100,000
June 30, 2015
Financial Assets:
Money market funds	$	98,888	$	—	$	—	$	98,888
Financial Liabilities:
Revolving credit facility	$	—	$	50,000	$	—	$	50,000

XML

Debt (Tables)

6 Months Ended

Dec. 31, 2015

Debt Disclosure [Abstract]

Schedule of Long-term Debt Instruments [Table Text Block]

The Company’s outstanding long and short term debt is as follows:

	December 31,		June 30,
	2015		2015
LONG TERM DEBT
Revolving credit facility	$	100,000	$	50,000
Capital leases	—		816
	100,000		50,816
Less current maturities	—		714
Debt, net of current maturities	$	100,000	$	50,102

Schedule of Short-term Debt [Table Text Block]

SHORT TERM DEBT
Capital leases	$	323	$	1,881
Current maturities of long-term debt	—		714
Notes payable and current maturities of long term debt	$	323	$	2,595

XML

Stock Based Compensation (Tables)

6 Months Ended

Dec. 31, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]

A summary of option plan activity under these plans are as follows:

	Number of Shares	Weighted Average Exercise Price		Aggregate  Intrinsic  Value
Outstanding July 1, 2015	100	23.07
Granted	—	—
Forfeited	—	—
Exercised	—	—
Outstanding December 31, 2015	100	$	23.07	$	5,499
Vested December 31, 2015	100	$	23.07	$	5,499
Exercisable December 31, 2015	100	$	23.07	$	5,499

Schedule of Nonvested Restricted Stock Activity [Table Text Block]

The following table summarizes non-vested share awards as of December 31, 2015, as well as activity for the six months then ended:

Share awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	72		34.28
Granted	22		65.77
Vested	(21	)	41.89
Forfeited	(11	)	22.51
Outstanding December 31, 2015	62		$	44.70

Schedule of Nonvested Restricted Stock Units Activity [Table Text Block]

The following table summarizes non-vested unit awards as of December 31, 2015, as well as activity for the six months then ended:

Unit awards	Shares		Weighted Average Grant Date Fair Value
Outstanding July 1, 2015	499		48.13
Granted	130		75.99
Vested	(97	)	43.74
Forfeited	(101	)	45.89
Outstanding December 31, 2015	431		$	58.06

ScheduleOfShareBasedPaymentAwardRSUValuationAssumptionsTableTextBlock [Table Text Block]

The weighted average assumptions used in this model to estimate fair value at the measurement date and resulting values for 118 unit awards granted in fiscal 2016 are as follows:

Volatility	15.6	%
Risk free interest rate	1.06	%
Dividend yield	1.5	%
Stock Beta	0.741

XML

Earnings Per Share Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2015

Earnings Per Share, Basic and Diluted [Abstract]

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

The following table reflects the reconciliation between basic and diluted earnings per share.

	Three Months Ended December 31,				Six Months Ended December 31,
	2015		2014		2015		2014
Net Income	$	59,348	$	53,882	$	110,714	$	99,969
Common share information:
Weighted average shares outstanding for basic earnings per share	79,473		81,432		80,009		81,813
Dilutive effect of stock options and restricted stock	297		202		243		299
Weighted average shares outstanding for diluted earnings per share	79,770		81,634		80,252		82,112
Basic earnings per share	$	0.75	$	0.66	$	1.38	$	1.22
Diluted earnings per share	$	0.74	$	0.66	$	1.38	$	1.22

XML

Business Acquisitions (Tables)

6 Months Ended

Dec. 31, 2015

Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]

Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]

The recognized amounts of identifiable assets acquired and liabilities assumed, based upon their preliminary fair values as of July 1, 2015 are set forth below:

Current assets	$	1,922
Long-term assets	253
Identifiable intangible assets	5,005
Total liabilities assumed	(3,064		)
Total identifiable net assets	4,116
Goodwill	5,884
Net assets acquired	$	10,000

XML

Business Segment Information (Tables)

6 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block]

	Three Months Ended							Three Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	563	$	71	$	634		$	288	$	203	$	491
Support and service	232,731		87,488		320,219			229,107		67,798		296,905
Hardware	7,735		4,284		12,019			10,130		3,768		13,898
Total revenue	241,029		91,843		332,872			239,525		71,769		311,294
COST OF SALES
Cost of license	448		50		498			184		124		308
Cost of support and service	137,787		44,202		181,989			134,034		36,343		170,377
Cost of hardware	4,979		2,979		7,958			6,887		2,687		9,574
Total cost of sales	143,214		47,231		190,445			141,105		39,154		180,259
GROSS PROFIT	$	97,815	$	44,612	142,427			98,420		32,615		131,035
OPERATING EXPENSES					57,640							51,370
INTEREST INCOME (EXPENSE)					(185		)					(309		)
INCOME BEFORE INCOME TAXES					$	84,602						$	79,356

	Six Months Ended							Six Months Ended
	December 31, 2015							December 31, 2014
	Bank		Credit Union		Total			Bank		Credit Union		Total
REVENUE
License	$	1,809	$	428	$	2,237		$	729	$	265	$	994
Support and service	460,354		167,612		627,966			450,322		134,799		585,121
Hardware	15,579		8,708		24,287			19,874		6,778		26,652
Total revenue	477,742		176,748		654,490			470,925		141,842		612,767
COST OF SALES
Cost of license	562		118		680			550		167		717
Cost of support and service	273,153		83,550		356,703			262,920		72,547		335,467
Cost of hardware	10,532		6,194		16,726			14,058		4,901		18,959
Total cost of sales	284,247		89,862		374,109			277,528		77,615		355,143
GROSS PROFIT	$	193,495	$	86,886	$	280,381		$	193,397	$	64,227	257,624
OPERATING EXPENSES					115,057							106,335
INTEREST INCOME (EXPENSE)					(292		)					(518		)
INCOME BEFORE INCOME TAXES					$	165,032						$	150,771

Reconciliation of Assets from Segment to Consolidated [Table Text Block]

	December 31,		June 30,
	2015		2015
Property and equipment, net
Bank systems and services	$	269,682	$	263,231
Credit Union systems and services	32,409		33,101
Total	$	302,091	$	296,332
Intangible assets, net
Bank systems and services	$	699,015	$	664,231
Credit Union systems and services	229,102		233,918
Total	$	928,117	$	898,149

XML

Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Class of Stock Disclosures [Abstract]
Treasury Stock, Value	$ 855,594		$ 700,472
Treasury Stock, Shares, Acquired	2,120,000
Payments for Repurchase of Common Stock	$ 155,122	$ 112,803
Treasury Stock, Shares	23,962,117		21,842,632
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased	6,028,000		8,148,000

XML

Nature of Operations and Summary of Significant Accounting Policies Dividends Paid Per Share (Details) - $ / shares	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Equity [Abstract]
Dividends declared per share	$ 0.25	$ 0.22	$ 0.50	$ 0.44

XML

Nature of Operations and Summary of Significant Accounting Policies Litigation (Details)	1 Months Ended
	May. 31, 2013 patent
DataTreasury Corporation Lawsuit [Member]
Loss Contingencies [Line Items]
Loss Contingency, Patents Allegedly Infringed, Number	2

XML

Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) - Fair Value, Measurements, Recurring [Member] - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	$ 23,854	$ 98,888
Lines of Credit, Fair Value Disclosure	100,000	50,000
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	23,854	98,888
Lines of Credit, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Lines of Credit, Fair Value Disclosure	100,000	50,000
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and Cash Equivalents, Fair Value Disclosure	0	0
Lines of Credit, Fair Value Disclosure	$ 0	$ 0

XML

Debt Long Term (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
LONG TERM DEBT
Capital leases	$ 0	$ 816
Long Term Debt	100,000	50,816
Less current maturities	0	714
Debt, net of current maturities	100,000	50,102
Revolving Credit Facility [Member] | Line of Credit [Member]
LONG TERM DEBT
Revolving credit facility	$ 100,000	$ 50,000

XML

Debt Short Term (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Short-term Debt [Abstract]
Capital leases	$ 323	$ 1,881
Current maturities of long-term debt	0	714
Notes payable and current maturities of long term debt	$ 323	$ 2,595

XML

Debt Narrative (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Jun. 30, 2015
Debt Instrument [Line Items]
Capital leases - short term	$ 323		$ 1,881
Interest Paid	333	$ 415
Capital Expenditures Incurred but Not yet Paid	1,940	$ 3,897
Unsecured Debt [Member]
Debt Instrument [Line Items]
Unsecured Loan, Unused Borrowing Capacity	$ 5,000
Unsecured Loan, Maturity Date	Apr. 30, 2017
Unsecured Loan, Amount Outstanding	$ 0
Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Revolving Credit Facility, Current Borrowing Capacity	300,000
Revolving Credit Facility, Maximum Borrowing Capacity	$ 600,000
Revolving Credit Facility, Expiration Date	Feb. 20, 2020
Long-term Debt	$ 100,000		$ 50,000
Federal Funds Effective Swap Rate [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	0.50%
London Interbank Offered Rate (LIBOR) [Member] | Revolving Credit Facility [Member] | Line of Credit [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	1.00%
Prime Rate [Member] | Unsecured Debt [Member]
Debt Instrument [Line Items]
Basis Spread on Variable Rate	1.00%

XML

Income Taxes Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Percent	29.90%	32.10%
Income Taxes Paid			$ 52,254	$ 43,450
Unrecognized Tax Benefits	$ 8,438		8,438
Unrecognized Tax Benefits that Would Impact Effective Tax Rate	6,917		6,917
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued	1,415	$ 1,652	1,415	$ 1,652
Minimum [Member]
Expiration of statutes of limitations impact on UTB balance	1,500		1,500
Maximum [Member]
Expiration of statutes of limitations impact on UTB balance	$ 2,500		$ 2,500

XML

Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based Compensation	$ 3,142	$ 2,516	$ 5,112	$ 4,583
Employee Stock Option [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average remaining contractual term			2 years 241 days
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense yet to be recognized	14,838		$ 14,838
Compensation expense yet to be recognized, period for recognition			1 year 212 days
Granted, number of shares			130
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation expense yet to be recognized	$ 1,505		$ 1,505
Compensation expense yet to be recognized, period for recognition			1 year 44 days
Granted, number of shares			22
Fair value under Monte Carlo [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares			118
Fair value on grant date less PV of dividends [Member] | Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted, number of shares			12

XML

Stock Based Compensation Stock Options (Details) - Stock Options [Member] $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Dec. 31, 2015 USD ($) $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Outstanding, period start, number of shares | shares	100
Granted, number of shares | shares	0
Forfeited, number of shares | shares	0
Exercised, number of shares | shares	0
Outstanding, period end, number of shares | shares	100
Outstanding, period start, weighted average exercise price | $ / shares	$ 23.07
Granted, weighted average exercise price | $ / shares	0.00
Forfeited, weighted average exercise price | $ / shares	0.00
Exercised, weighted average exercise price | $ / shares	0.00
Outstanding, period end, weighted average exercise price | $ / shares	$ 23.07
Outstanding, period end, intrinsic value | $	$ 5,499
Vested, period end, number of shares | shares	100
Vested, period end, weighted average exercise price | $ / shares	$ 23.07
Vested, period end, intrinsic value | $	$ 5,499
Exercisable, period end, number of shares | shares	100
Exercisable, period end, weighted average exercise price | $ / shares	$ 23.07
Exercisable, period end, intrinsic value | $	$ 5,499

XML

Stock Based Compensation Restricted Stock Share Awards (Details) - Restricted Stock [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, period start, number of shares | shares	72
Granted, number of shares | shares	22
Vested, number of shares | shares	(21)
Forfeited, number of shares | shares	(11)
Outstanding, period end, number of shares | shares	62
Outstanding, period start, weighted average grant date fair value | $ / shares	$ 34.28
Granted, weighted average grant date fair value | $ / shares	65.77
Vested, weighted average grant date fair value | $ / shares	41.89
Forfeited, weighted average grant date fair value | $ / shares	22.51
Outstanding, period end, weighted average grant date fair value | $ / shares	$ 44.70

XML

Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] shares in Thousands	6 Months Ended
	Dec. 31, 2015 $ / shares shares
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Outstanding, period start, number of shares | shares	499
Granted, number of shares | shares	130
Vested, number of shares | shares	(97)
Forfeited, number of shares | shares	(101)
Outstanding, period end, number of shares | shares	431
Outstanding, period start, weighted average grant date fair value | $ / shares	$ 48.13
Granted, weighted average grant date fair value | $ / shares	75.99
Vested, weighted average grant date fair value | $ / shares	43.74
Forfeited, weighted average grant date fair value | $ / shares	45.89
Outstanding, period end, weighted average grant date fair value | $ / shares	$ 58.06

XML

Stock Based Compensation RSU Measurement Date Assumptions (Details) - Restricted Stock Units (RSUs) [Member]	6 Months Ended
	Dec. 31, 2015
RSU grant date weighted average fair value assumptions
Volatility	15.60%
Risk free interest rate	1.06%
Dividend yield	1.50%
Stock Beta	0.741

XML

Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]
Net Income	$ 59,348	$ 53,882	$ 110,714	$ 99,969
Common share information:
Weighted average shares outstanding for basic earnings per share	79,473	81,432	80,009	81,813
Dilutive effect of stock options and restricted stock	297	202	243	299
Weighted average shares outstanding for diluted earnings per share	79,770	81,634	80,252	82,112
Basic earnings per share	$ 0.75	$ 0.66	$ 1.38	$ 1.22
Diluted earnings per share	$ 0.74	$ 0.66	$ 1.38	$ 1.22
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	170	0	134

XML

Business Acquisitions (Details) - USD ($) $ in Thousands	Jul. 01, 2015	Dec. 31, 2015	Jun. 30, 2015
Business Acquisition [Line Items]
Goodwill		$ 556,256	$ 550,366
Business Acquisition, Bayside Business Solutions [Member]
Business Acquisition [Line Items]
Business Acquisition, Effective Date of Acquisition	Jul. 01, 2015
Payments to Acquire Businesses, Gross	$ 10,000
Current assets	1,922
Long-term assets	253
Identifiable intangible assets	5,005
Total liabilities assumed	(3,064)
Total identifiable net assets	4,116
Goodwill	5,884
Net assets acquired	$ 10,000
Business Acquisition, Purchase Price Allocation, Goodwill, Expected Tax Deductible Percent	0.00%
Cash Acquired from Acquisition	$ 1,725
Business Combination, Acquired Receivables, Fair Value	178
Business Combination, Acquired Receivables, Gross Contractual Amount	178
Business Combination, Acquired Receivables, Estimated Uncollectible	0
Business Acquisition, Transaction Costs	55
Business Combination, Pro Forma Information, Revenue of Acquiree since Acquisition Date, Actual	1,730
Business Combination, Pro Forma Information, Earnings or Loss of Acquiree since Acquisition Date, Actual	(310)
Customer Relationships [Member] | Business Acquisition, Bayside Business Solutions [Member]
Business Acquisition [Line Items]
Finite-lived Intangible Assets Acquired	$ 3,402
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	15 years
Computer Software, Intangible Asset [Member] | Business Acquisition, Bayside Business Solutions [Member]
Business Acquisition [Line Items]
Finite-lived Intangible Assets Acquired	$ 659
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	5 years
Other Intangible Assets [Member] | Business Acquisition, Bayside Business Solutions [Member]
Business Acquisition [Line Items]
Finite-lived Intangible Assets Acquired	$ 944
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life	20 years

XML

Business Segment Information Narrative (Details)	6 Months Ended
	Dec. 31, 2015 segment
Segment Reporting [Abstract]
Number of Reportable Segments	2

XML

Business Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2015	Dec. 31, 2014	Dec. 31, 2015	Dec. 31, 2014
REVENUE
License	$ 634	$ 491	$ 2,237	$ 994
Support and service	320,219	296,905	627,966	585,121
Hardware	12,019	13,898	24,287	26,652
Total revenue	332,872	311,294	654,490	612,767
COST OF SALES
Cost of license	498	308	680	717
Cost of support and service	181,989	170,377	356,703	335,467
Cost of hardware	7,958	9,574	16,726	18,959
Total cost of sales	190,445	180,259	374,109	355,143
GROSS PROFIT	142,427	131,035	280,381	257,624
Total operating expenses	57,640	51,370	115,057	106,335
Total interest income (expense)	(185)	(309)	(292)	(518)
INCOME BEFORE INCOME TAXES	84,602	79,356	165,032	150,771
Banking Systems and Services [Member]
REVENUE
License	563	288	1,809	729
Support and service	232,731	229,107	460,354	450,322
Hardware	7,735	10,130	15,579	19,874
Total revenue	241,029	239,525	477,742	470,925
COST OF SALES
Cost of license	448	184	562	550
Cost of support and service	137,787	134,034	273,153	262,920
Cost of hardware	4,979	6,887	10,532	14,058
Total cost of sales	143,214	141,105	284,247	277,528
GROSS PROFIT	97,815	98,420	193,495	193,397
Credit Union Systems and Services [Member]
REVENUE
License	71	203	428	265
Support and service	87,488	67,798	167,612	134,799
Hardware	4,284	3,768	8,708	6,778
Total revenue	91,843	71,769	176,748	141,842
COST OF SALES
Cost of license	50	124	118	167
Cost of support and service	44,202	36,343	83,550	72,547
Cost of hardware	2,979	2,687	6,194	4,901
Total cost of sales	47,231	39,154	89,862	77,615
GROSS PROFIT	$ 44,612	$ 32,615	$ 86,886	$ 64,227

XML

Business Segment Information Reconciliation of Assets from Segment to Consolidated (Details) - USD ($) $ in Thousands	Dec. 31, 2015	Jun. 30, 2015
Segment Reporting, Asset Reconciling Items
Property and equipment, net	$ 302,091	$ 296,332
Intangible assets, net	928,117	898,149
Banking Systems and Services [Member]
Segment Reporting, Asset Reconciling Items
Property and equipment, net	269,682	263,231
Intangible assets, net	699,015	664,231
Credit Union Systems and Services [Member]
Segment Reporting, Asset Reconciling Items
Property and equipment, net	32,409	33,101
Intangible assets, net	$ 229,102	$ 233,918