Reportable Segment Information (Text Block)

9 Months Ended

Mar. 31, 2020

Reportable Segment Information Disclosure [Text Block]

REPORTABLE SEGMENT INFORMATION

The Company is a provider of integrated computer systems that perform data processing (available for on-premise installations or 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.

During fiscal 2020, immaterial adjustments were made to reclassify revenue recognized in fiscal 2019 from the Complementary to the Core segment and from the Complementary to the Payments segment to be consistent with the current year's allocation of revenue by segment. The amounts reclassified for the three and nine months ended March 31, 2019 totaled $473 and $2,076, respectively, and are reflected in the segment tables below for the three and nine months ended March 31, 2019.


	Three Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	138,682	$	19,506	$	98,360	$	13,656	$	270,204
Processing	7,758		130,854		20,304		286		159,202
Total Revenue	146,440		150,360		118,664		13,942		429,406

Cost of Revenue	66,141		80,836		48,691		62,903		258,571
Research and Development									28,308
Selling, General, and Administrative									47,391
Loss on disposal of assets, net									3,198

Total Expenses									337,468

SEGMENT INCOME	$	80,299	$	69,524	$	69,973	$	(48,961)

OPERATING INCOME									91,938

INTEREST INCOME (EXPENSE)									32

INCOME BEFORE INCOME TAXES									$	91,970


	Three Months Ended
	March 31, 2019
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	123,694	$	13,126	$	85,095	$	12,208	$	234,123
Processing	6,910		122,365		16,966		—		146,241
Total Revenue	130,604		135,491		102,061		12,208		380,364

Cost of Revenue	63,977		68,700		45,733		57,184		235,594
Research and Development									23,442
Selling, General, and Administrative									44,682
Loss on disposal of assets, net									205

Total Expenses									303,923

SEGMENT INCOME	$	66,627	$	66,791	$	56,328	$	(44,976)

OPERATING INCOME									76,441

INTEREST INCOME (EXPENSE)									(69)

INCOME BEFORE INCOME TAXES									$	76,372


	Nine Months Ended
	March 31, 2020
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	417,554	$	51,643	$	291,288	$	43,731	$	804,216
Processing	23,150		400,508		58,054		602		482,314
Total Revenue	440,704		452,151		349,342		44,333		1,286,530

Cost of Revenue	190,689		236,725		143,384		182,831		753,629
Research and Development									80,086
Selling, General, and Administrative									145,890
Loss on disposal of assets, net									3,095

Total Expenses									982,700

SEGMENT INCOME	$	250,015	$	215,426	$	205,958	$	(138,498)

OPERATING INCOME									303,830

INTEREST INCOME (EXPENSE)									573

INCOME BEFORE INCOME TAXES									$	304,403


	Nine Months Ended
	March 31, 2019
	Core		Payments		Complementary		Corporate & Other		Total
REVENUE
Services and Support	$	378,406	$	39,004	$	259,942	$	40,662	$	718,014
Processing	21,082		368,702		51,075		309		441,168
Total Revenue	399,488		407,706		311,017		40,971		1,159,182

Cost of Revenue	183,481		199,506		131,731		168,272		682,990
Research and Development									71,458
Selling, General, and Administrative									136,683
Loss on disposal of assets, net									183

Total Expenses									891,314

SEGMENT INCOME	$	216,007	$	208,200	$	179,286	$	(127,301)

OPERATING INCOME									267,868

INTEREST INCOME (EXPENSE)									177

INCOME BEFORE INCOME TAXES									$	268,045

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.