Revenue and Deferred Costs Revenue and Deferred Costs (Notes)

3 Months Ended

Sep. 30, 2020

Revenue from Contract with Customer [Abstract]

Revenue and Deferred Costs [Text Block]

REVENUE AND DEFERRED COSTS

Revenue Recognition

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

Disaggregation of Revenue

The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 10, Reportable Segment Information, for disaggregated revenue by type and reportable segment. The majority of the Company’s revenue is earned domestically, with revenue from customers outside the United States comprising less than 1% of total revenue.

	Three Months Ended September 30,
	2020		2019
Outsourcing & Cloud	$	120,959	$	108,583
Product Delivery & Services	56,897		71,361
In-House Support	103,141		98,864
Services & Support	280,997		278,808
Processing	170,803		159,197
Total Revenue	$	451,800	$	438,005

Contract Balances

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

	September 30, 2020		June 30, 2020
Receivables, net	$	223,013	$	300,945
Contract Assets- Current	21,136		21,609
Contract Assets- Non-current	53,788		54,293
Contract Liabilities (Deferred Revenue)- Current	254,764		318,161
Contract Liabilities (Deferred Revenue)- Non-current	67,745		71,461

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

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

For the three months ended September 30, 2020 and 2019, the Company recognized revenue of $93,047 and $94,054, respectively, that was included in the corresponding deferred revenue balance at the beginning of the periods.

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

Transaction Price Allocated to Remaining Performance Obligations

As of September 30, 2020, estimated revenue expected to be recognized in the future related to performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period totaled $4,063,582. The Company expects to recognize approximately 28.21% over the next 12 months, 19.52% in 13-24 months, and the balance thereafter.

Contract Costs

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

Capitalized costs totaled $288,917 and $271,010, at September 30, 2020 and June 30, 2020, respectively.

During the three months ended September 30, 2020 and 2019, amortization of deferred contract costs totaled $33,825 and $31,393, respectively. There were no impairment losses in relation to capitalized costs for the periods presented.