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 four reportable segments: Core, Payments, Complementary, and Corporate & Other. The Core segment provides core information processing platforms to banks and credit unions, which consist of integrated applications required to process deposit, loan, and general ledger transactions, and maintain centralized customer/member information. The Payments segment provides secure payment processing tools and services, including: ATM, debit, and credit card transaction processing services; online and mobile bill pay solutions; ACH origination and remote deposit capture processing; and risk management products and services. The Complementary segment provides additional software and services that can be integrated with our Core solutions or used independently. The Corporate & Other segment includes hardware revenue and costs, as well as operating costs not directly attributable to the other three segments.

The Company evaluates the performance of its segments and allocates resources to them based on various factors, including performance against trend, budget, and forecast. Only revenue and costs of revenue are considered in the evaluation for each segment.

An immaterial adjustment was made to reclassify revenue recognized in fiscal 2018 from the Core to the Corporate and Other Segment. For the three and six months ended December 31, 2017, the amount reclassified totaled $744 and $1,482, respectively.



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

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

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

OPERATING INCOME										88,204

INTEREST INCOME (EXPENSE)										104

INCOME BEFORE INCOME TAXES										$	88,308



	Three Months Ending
	December 31, 2017
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	116,614	$	9,212	$	81,329	$	15,863		$	223,018
Processing	6,682		112,168		15,327		14			134,191
Total Revenue	123,296		121,380		96,656		15,877			357,209

Cost of Revenue	55,364		59,304		40,209		52,223			207,100
Research and Development										22,414
Selling, General, and Administrative										43,094
Gain on Disposal of Businesses										(189		)
Total Expenses										272,419

SEGMENT INCOME	$	67,932	$	62,076	$	56,447	$	(36,346	)

OPERATING INCOME										84,790

INTEREST INCOME (EXPENSE)										(104		)

INCOME BEFORE INCOME TAXES										$	84,686



	Six Months Ended
	December 31, 2018
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	253,109	$	25,878	$	176,449	$	28,454		$	483,890
Processing	14,172		246,338		34,109		309			294,928
Total Revenue	267,281		272,216		210,558		28,763			778,818

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

SEGMENT INCOME	$	147,777	$	141,409	$	124,560	$	(82,324	)

OPERATING INCOME										191,427

INTEREST INCOME (EXPENSE)										247

INCOME BEFORE INCOME TAXES										$	191,674



	Six Months Ended
	December 31, 2017
	Core		Payments		Complementary		Corporate & Other			Total
REVENUE
Services and Support	$	237,091	$	19,176	$	161,626	$	31,877		$	449,770
Processing	13,550		225,098		30,057		18			268,723
Total Revenue	250,641		244,274		191,683		31,895			718,493

Cost of Revenue	110,949		116,627		80,201		103,239			411,016
Research and Development										43,343
Selling, General, and Administrative										84,181
Gain on Disposal of Businesses										(1,894		)
Total Expenses										536,646

SEGMENT INCOME	$	139,692	$	127,647	$	111,482	$	(71,344	)

OPERATING INCOME										181,847

INTEREST INCOME (EXPENSE)										(146		)

INCOME BEFORE INCOME TAXES										$	181,701

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