Cover Page
Cover Page - shares | 3 Months Ended | |
Sep. 30, 2019 | Oct. 28, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2019 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-30 | |
Entity Registrant Name | HENRY JACK & ASSOCIATES INC | |
Entity Central Index Key | 0000779152 | |
Entity File Number | 0-14112 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 43-1128385 | |
Entity Address, Address Line One | 663 Highway 60, P.O. Box 807 | |
Entity Address, City or Town | Monett | |
Entity Address, State or Province | MO | |
Entity Address, Postal Zip Code | 65708 | |
City Area Code | 417 | |
Local Phone Number | 235-6652 | |
Title of 12(b) Security | Common Stock ($0.01 par value) | |
Trading Symbol | JKHY | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 76,936,904 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 96,679 | $ 93,628 |
Receivables, net | 234,362 | 310,080 |
Income tax receivable | 0 | 17,817 |
Prepaid expenses and other | 102,189 | 106,466 |
Deferred costs | 44,347 | 35,102 |
Assets held for sale | 6,546 | 6,355 |
Total current assets | 484,123 | 569,448 |
PROPERTY AND EQUIPMENT, net | 274,531 | 272,474 |
OTHER ASSETS: | ||
Non-current deferred costs | 96,813 | 90,084 |
Computer software, net of amortization | 331,470 | 318,969 |
Other non-current assets | 212,253 | 134,743 |
Other intangible assets, net of amortization | 34,056 | 31,514 |
Goodwill | 686,030 | 666,944 |
Total other assets | 1,467,324 | 1,342,907 |
Total assets | 2,225,978 | 2,184,829 |
CURRENT LIABILITIES: | ||
Accounts payable | 13,621 | 9,850 |
Accrued expenses | 106,752 | 120,360 |
Accrued income taxes | 5,874 | 0 |
Deferred revenues | 266,831 | 339,752 |
Total current liabilities | 393,078 | 469,962 |
LONG TERM LIABILITIES: | ||
Non-current deferred revenues | 58,723 | 54,554 |
Non-current deferred income tax liability | 221,962 | 217,010 |
Other long-term liabilities | 75,555 | 14,290 |
Total long term liabilities | 356,240 | 285,854 |
Total liabilities | 749,318 | 755,816 |
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; 103,535,828 shares issued at September 30, 2019; 103,496,026 shares issued at June 30, 2019 | 1,035 | 1,035 |
Additional paid-in capital | 475,222 | 472,029 |
Retained earnings | 2,124,672 | 2,066,073 |
Less treasury stock at cost; 26,607,603 shares at September 30, 2019; 26,507,903 shares at June 30, 2019 | (1,124,269) | (1,110,124) |
Total stockholders' equity | 1,476,660 | 1,429,013 |
Total liabilities and equity | 2,225,978 | 2,184,829 |
Customer Relationships [Member] | ||
OTHER ASSETS: | ||
Customer relationships, net of amortization | $ 106,702 | $ 100,653 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Sep. 30, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 500,000 | 500,000 |
Preferred stock, issued shares | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, authorized shares | 250,000,000 | 250,000,000 |
Common stock, issued shares | 103,535,828 | 103,496,026 |
Treasury Stock, Shares | 26,608,000 | 26,508,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||
REVENUE | $ 438,005 | $ 392,543 |
EXPENSES | ||
Cost of Revenue | 245,791 | 220,112 |
Research and Development | 24,591 | 24,026 |
Selling, General and Administrative | 49,436 | 45,183 |
Total Expenses | 319,818 | 289,321 |
OPERATING INCOME | 118,187 | 103,222 |
INTEREST INCOME (EXPENSE) | ||
Interest income | 508 | 291 |
Interest expense | (156) | (147) |
Total Interest Income (Expense) | 352 | 144 |
INCOME BEFORE INCOME TAXES | 118,539 | 103,366 |
PROVISION/ (BENEFIT) FOR INCOME TAXES | 29,169 | 19,815 |
NET INCOME | $ 89,370 | $ 83,551 |
Earnings Per Share | ||
Basic earnings per share | $ 1.16 | $ 1.08 |
Basic weighted average shares outstanding | 76,972 | 77,188 |
Diluted earnings per share | $ 1.16 | $ 1.08 |
Diluted weighted average shares outstanding | 77,067 | 77,537 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY Statement - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Balance, beginning of period (value) at Jun. 30, 2018 | $ 1,033 | $ 464,138 | $ 1,912,933 | $ (1,055,260) | ||
Shares, beginning of period at Jun. 30, 2018 | 103,278,562 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (value) | $ (1) | (1) | ||||
Shares issued for equity-based payment arrangements (shares) | 102,094 | |||||
Tax withholding related to share-based compensation | (13,256) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 2,217 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 17,845 | |||||
Stock-based compensation expense | 1,771 | |||||
Net Income | $ 83,551 | 83,551 | ||||
Dividends (value) | (28,563) | |||||
Purchase of treasury shares | 0 | |||||
Balance, end of period (value) at Sep. 30, 2018 | $ 1,368,564 | $ 1,034 | 454,869 | 1,967,921 | (1,055,260) | |
Shares, end of period at Sep. 30, 2018 | 103,398,501 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.37 | |||||
Preferred Shares | 0 | |||||
Balance, beginning of period (value) at Jun. 30, 2019 | $ 1,429,013 | $ 1,035 | 472,030 | 2,066,073 | (1,110,124) | |
Shares, beginning of period at Jun. 30, 2019 | 103,496,026 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Shares issued for equity-based payment arrangements (value) | $ 0 | (1) | ||||
Shares issued for equity-based payment arrangements (shares) | 19,888 | |||||
Tax withholding related to share-based compensation | (2,072) | |||||
Shares issued for Employee Stock Purchase Plan (value) | 2,412 | |||||
Shares issued for Employee Stock Purchase Plan (shares) | 19,914 | |||||
Stock-based compensation expense | 2,853 | |||||
Net Income | 89,370 | 89,370 | ||||
Dividends (value) | (30,771) | |||||
Purchase of treasury shares | (14,145) | |||||
Balance, end of period (value) at Sep. 30, 2019 | $ 1,476,660 | $ 1,035 | $ 475,222 | $ 2,124,672 | $ (1,124,269) | |
Shares, end of period at Sep. 30, 2019 | 103,535,828 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Dividends declared per share | $ 0.40 | |||||
Preferred Shares | 0 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net Income | $ 89,370 | $ 83,551 |
Adjustments to reconcile net income to net cash from operating activities: | ||
Depreciation | 12,708 | 10,903 |
Amortization | 29,380 | 27,827 |
Change in deferred income taxes | 2,359 | 730 |
Expense for stock-based compensation | 2,853 | 1,771 |
(Gain)/ loss on disposal of assets and businesses | (8) | (30) |
Changes in operating assets and liabilities: | ||
Change in receivables | 77,123 | 98,708 |
Change in prepaid expenses, deferred costs and other | (13,486) | (33,076) |
Change in accounts payable | 1,865 | (5,782) |
Change in accrued expenses | (35,270) | (4,278) |
Change in income taxes | 25,081 | 18,501 |
Change in deferred revenues | (68,939) | (52,151) |
Net cash from operating activities | 123,052 | 146,734 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Payment for acquisitions, net of cash acquired | (30,285) | 0 |
Capital expenditures | (13,101) | (24,001) |
Proceeds from sale of assets | 10 | 33 |
Purchased software | (2,424) | (1,626) |
Computer software developed | (28,475) | (26,669) |
Purchase of investments | 1,150 | 0 |
Net cash from investing activities | (75,425) | (52,263) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Purchase of treasury stock | (14,145) | 0 |
Dividends paid | (30,771) | 0 |
Proceeds from issuance of common stock upon exercise of stock options | 0 | 1 |
Tax withholding payments related to share based compensation | (2,072) | (13,257) |
Proceeds from sale of common stock | 2,412 | 2,217 |
Net cash from financing activities | (44,576) | (11,039) |
NET CHANGE IN CASH AND CASH EQUIVALENTS | 3,051 | 83,432 |
CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD | 93,628 | 31,440 |
CASH AND CASH EQUIVALENTS, END OF PERIOD | $ 96,679 | $ 114,872 |
Nature of Operations and Summar
Nature of Operations and Summary of Significant Accounting Policies (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
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 months ended September 30, 2019 and 2018 equals the Company’s net income. Property and Equipment Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. Accumulated depreciation at September 30, 2019 totaled $384,896 and at June 30, 2019 totaled $388,481 . Intangible Assets Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years . Accumulated amortization of intangible assets totaled $736,825 and $707,518 at September 30, 2019 and June 30, 2019 , respectively. Purchase of Investments During fiscal 2018, the Company made an investment of $5,000 for the purchase of preferred stock of Automated Bookkeeping, Inc ("Autobooks"). During the first quarter of fiscal 2020 , the Company made an additional investment in Autobooks of $1,000 , for a total investment at September 30, 2019 of $6,000 , representing a non-controlling share of the voting equity as of that date. The total investment was recorded at cost and is included within other non-current assets on the Company's balance sheet. The fair value of the investment has not been estimated, as estimation is not practicable. There have been no events or changes in circumstances that would indicate an impairment and no price changes resulting from observing a similar or identical investment. An impairment and/or an observable price change would be an adjustment to recorded cost. Fair value will not be estimated unless there are identified events or changes in circumstances that may have a significant adverse effect on the fair value of the investment. During the first quarter of fiscal 2020 , the Company invested $150 for interests in a renewable energy investment tax credit fund. The investment is included within other non-current assets on the Company's balance sheet. At September 30, 2019 , the Company had commitments to invest an additional $14,850 for interests in the renewable energy investment tax credit fund that it expects to fund during the remainder of fiscal 2020 . 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 borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. At September 30, 2019 , there were 26,608 shares in treasury stock and the Company had the remaining authority to repurchase up to 3,383 additional shares. The total cost of treasury shares at September 30, 2019 is $1,124,269 . During the first three months of fiscal 2020 , the Company repurchased 100 treasury shares. At June 30, 2019 , there were 26,508 shares in treasury stock and the Company had authority to repurchase up to 3,483 additional shares. Income Taxes Deferred tax liabilities and assets are recognized for the tax effects of differences between the financial statement and tax basis of assets and liabilities. A valuation allowance would be established to reduce deferred tax assets if it is more likely than not that a deferred tax asset will not be realized. The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based upon the technical merits of the position. The tax benefit recognized in the financial statements from such a position is measured based on the largest benefit that has a greater than 50% likelihood of being realized upon ultimate settlement. Also, interest and penalties expense are recognized on the full amount of deferred benefits for uncertain tax positions. The Company's policy is to include interest and penalties related to unrecognized tax benefits in income tax expense. 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 ("SEC") and in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP") 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 ended June 30, 2019 . 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, 2019 , with updates to certain policies included in this Note 1. 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 in all material respects the financial position of the Company as of September 30, 2019 , the results of its operations for the three months ended September 30, 2019 and 2018 , changes in stockholders' equity for the three months ended September 30, 2019 and 2018 , and its cash flows for the three months ended September 30, 2019 and 2018 . The condensed consolidated balance sheet at June 30, 2019 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 three months ended September 30, 2019 are not necessarily indicative of the results to be expected for the entire year. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements Recent Accounting Pronouncements (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Adopted Accounting Guidance [Text Block] | Recently Adopted Accounting Guidance The FASB issued Accounting Standards Update (ASU) No. 2016-02, Leases, in February 2016. This ASU aims to increase transparency and comparability among organizations by recognizing lease assets and liabilities on the balance sheet and requiring disclosure of key information regarding leasing arrangements to enable users of financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. Specifically, the standard requires operating lease commitments to be recorded on the balance sheet as operating lease liabilities and right-of-use assets, and the cost of those operating leases to be amortized on a straight-line basis. The Company adopted the new standard effective July 1, 2019 using the optional transition method in ASU 2018-11. Under this method, the Company did not adjust its comparative period financial statements for the effects of the new standard or make the new, expanded required disclosures for periods prior to the effective date. The Company elected the package of practical expedients permitted under the new standard, which among other things, allows it to carry forward its historical lease classifications. In addition, the Company has made a policy election to keep leases with an initial term of twelve months or less off of the balance sheet. The Company also elected the practical expedient to not separate the non-lease components of a contract from the lease component to which they relate. The adoption of standard resulted in the recognition of lease liabilities of $77,393 and right-to-use assets of $74,084 as of July 1, 2019. Adoption of the standard did not have a material impact on the Company’s condensed consolidated statements of income or condensed consolidated statements of cash flows. |
Not Yet Adopted [Text Block] | Not Yet Adopted In August of 2018, the FASB issued ASU No. 2018-15, Intangibles, Goodwill and Other - Internal-Use Software (Subtopic 350-40), which broadens the scope of Subtopic 350-40 to include costs incurred to implement a hosting arrangement that is a service contract. The costs are capitalized or expensed depending on the nature of the costs and the project stage during which they are incurred, consistent with costs for internal-use software. The amendments in this update can be applied either retrospectively or prospectively to all implementation costs incurred after the date of adoption. The ASU will be effective for the Company on July 1, 2020, with early adoption permitted. The Company plans to early adopt ASU No. 2018-15 on January 1, 2020 and does not expect the adoption to have a material impact on its consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment (“ASU 2017-04”), which eliminates Step 2 of the goodwill impairment test that had required a hypothetical purchase price allocation. Rather, entities should apply the same impairment assessment to all reporting units and recognize an impairment loss for the amount by which a reporting unit’s carrying amount exceeds its fair value, without exceeding the total amount of goodwill allocated to that reporting unit. Entities will continue to have the option to perform a qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 will be effective prospectively for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019, with early adoption permitted. The Company plans to adopt ASU No. 2017-04 when required and does not expect the adoption to have a material impact on its consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, which requires financial assets measured at amortized cost basis to be presented at the net amount expected to be collected, with an allowance for credit losses valuation account that is deducted to present the net carrying value at the amount expected to be collected. The amendments in this update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years, with early adoption permitted. The Company plans to adopt ASU No. 2016-13 when required and is evaluating the impact on its consolidated financial statements. |
Revenue and Deferred Costs Reve
Revenue and Deferred Costs Revenue and Deferred Costs (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
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 11, 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, 2019 2018 Processing $ 159,197 $ 145,975 Outsourcing & Cloud 108,583 97,359 Product Delivery & Services 71,361 57,964 In-House Support 98,864 91,245 Services & Support 278,808 246,568 Total Revenue $ 438,005 $ 392,543 Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. September 30, June 30, Receivables, net $ 234,362 $ 310,080 Contract Assets- Current 21,233 21,446 Contract Assets- Non-current 54,330 50,640 Contract Liabilities (Deferred Revenue)- Current 266,831 339,752 Contract Liabilities (Deferred Revenue)- Non-current $ 58,723 $ 54,554 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. During the three months ended September 30, 2019 and 2018 , the Company recognized revenue of $94,054 and $88,121 , 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, 2019 , 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 $3,691,321 . The Company expects to recognize approximately 28% over the next 12 months , 19% 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 $246,387 and $231,273 , at September 30, 2019 and June 30, 2019 , respectively. For the three months ended September 30, 2019 and 2018 , amortization of deferred contract costs was $31,393 and $26,821 , respectively. There were no impairment losses in relation to capitalized costs for the periods presented. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments Fair Value of Financial Instruments (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments[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 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 September 30, 2019 Financial Assets: Money market funds $ 87,308 $ — $ — $ 87,308 June 30, 2019 Financial Assets: Money market funds $ 81,945 $ — $ — $ 81,945 Non-Recurring Fair Value Measurements September 30, 2019 Long-lived assets held for sale $ — $ 1,300 $ — $ 1,300 June 30, 2019 Long-lived assets held for sale (a) $ — $ 1,300 $ — $ 1,300 (a) In accordance with ASC Subtopic 360-10, long-lived assets held for sale with a carrying value of $4,575 were written down to their fair value of $1,300 , resulting in an impairment totaling $3,275 , which was included in earnings for the period ended June 30, 2017. These assets are expected to be disposed of by sale in the third quarter of fiscal 2020. |
Leases Leases (Notes)
Leases Leases (Notes) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | LEASES The Company adopted ASU 2016-02 and its related amendments (collectively known as “ASC 842”) on July 1, 2019 using the optional transition method in ASU 2018-11. Therefore, the reported results for the three months ended September 30, 2019 reflect the application of ASC 842 while the reported results for the three months ended September 30, 2018 were not adjusted and continue to be reported under the accounting guidance, ASC 840, Leases (“ASC 840”), in effect for the prior period. The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases. The Company elected the package of practical expedients permitted under the transition guidance within ASU 2016-02 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at commencement date based upon the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company leases certain office space, data centers and equipment. The Company’s leases have remaining terms of 1 to 11 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The depreciable life of the ROU asset and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. At September 30, 2019 , the Company had operating lease assets of $70,976 . Total operating lease liabilities of $74,230 were comprised of current operating lease liabilities of $12,042 and noncurrent operating lease liabilities of $62,188 . Operating lease assets are included within other non-current assets and operating lease liabilities are included with accrued expenses (current portion) and other long-term liabilities (noncurrent portion) in the Company’s condensed consolidated balance sheet. Operating lease assets were recorded net of accumulated amortization of $3,436 as of September 30, 2019 . Operating lease costs for the three months ended September 30, 2019 were $4,007 and included approximately $879 of variable lease costs. Operating lease expense is included within cost of services, research and development and selling, general & administrative expense, dependent upon the nature and use of the ROU asset, in the Company’s condensed consolidated statement of income. Operating cash flows from operating leases for the three months ended September 30, 2019 were $3,927 and right-of-use assets obtained in exchange for operating lease liabilities were $1,370 . As of September 30, 2019 , the weighted-average remaining lease term for the Company's operating leases was 84 months and the weighted-average discount rate was 2.96% . Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at September 30, 2019 : Due dates Future Minimum Rental Payments 2020 (remaining period) $ 10,609 2021 13,847 2022 12,442 2023 10,785 2024 8,635 Thereafter 26,608 Total lease payments $ 82,926 Less: interest (8,696 ) Present value of lease liabilities $ 74,230 Operating lease payments include $8,976 related to options to extend lease terms that are reasonably certain of being exercised. At September 30, 2019 , there were no legally binding lease payments for leases signed but not yet commenced. Maturity of Lease Liabilities under ASC 840 Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, 2019 : Due dates Future Minimum Rental Payments 2020 $ 15,559 2021 13,539 2022 11,860 2023 10,169 2024 8,835 Thereafter 11,671 Total lease payments $ 71,633 Rent expense for all operating leases was $15,196 during the year ended June 30, 2019 . |
Debt (Text Block)
Debt (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Debt and Capital Leases Disclosures [Text Block] | DEBT 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 September 30, 2019 , the Company was in compliance with all such covenants. The revolving credit facility terminates February 20, 2020 . There was no outstanding credit facility balance at either September 30, 2019 or at June 30, 2019 . 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 was renewed in May 2019 and expires on April 30, 2021 . At September 30, 2019 , no amount was outstanding. There was also no balance outstanding at June 30, 2019 . Interest The Company paid interest of $97 and $65 during the three months ended September 30, 2019 and 2018 , respectively. |
Income Taxes (Text Block)
Income Taxes (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | INCOME TAXES The effective tax rate was 24.6% of income before income taxes for the quarter ended September 30, 2019 , compared to 19.2% for the same quarter of the prior fiscal year. The increase to the Company's tax rate was primarily due to the difference in impact of stock-based compensation. A significant excess tax benefit was recognized in the prior year quarter from stock-based compensation. The stock-based compensation resulted in an excess tax deficiency in the current quarter. The Company paid income taxes, net of refunds, of $1,090 in the three months ended September 30, 2019 and paid income taxes of $388 and received refunds of $679 in the three months ended September 30, 2018 . At September 30, 2019 , the Company had $11,596 of gross unrecognized tax benefits, $10,815 of which, if recognized, would affect our effective tax rate. We had accrued interest and penalties of $1,771 and $1,413 related to uncertain tax positions at September 30, 2019 and 2018 , respectively. The U.S. federal and state income tax returns for fiscal 2016 and all subsequent years remain subject to examination as of September 30, 2019 under statute of limitations rules. We anticipate potential changes due to lapsing statutes of limitations and examination closures could reduce the unrecognized tax benefits balance by $3,000 - $4,000 within twelve months of September 30, 2019 . |
Stock Based Compensation (Text
Stock Based Compensation (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | STOCK-BASED COMPENSATION Our operating income for the three months ended September 30, 2019 and 2018 included $2,853 and $1,771 of stock-based compensation costs, respectively. Stock Options On November 10, 2015 , the Company adopted the 2015 Equity Incentive Plan ("2015 EIP") for its employees and non-employee directors. The plan allows for grants of stock options, stock appreciation rights, restricted stock shares or units, and performance shares or units. The maximum number of shares authorized for issuance under the plan is 3,000 . For stock options, terms and vesting periods of the options are determined by the Compensation Committee of the Board of Directors when granted. The option period must expire not more than ten years from the option grant date. The options granted under this plan are exercisable beginning three years after the grant date at an exercise price equal to 100% of the fair market value of the stock at the grant date. The options terminate upon surrender of the option, ninety days after termination of employment, upon the expiration of one year following notification of a deceased optionee, or ten years after grant. The Company previously issued options to outside directors under the 2005 Non-Qualified Stock Option Plan (“2005 NSOP”). No additional stock options may be issued under this plan. A summary of option plan activity under these plans is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2019 32 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding September 30, 2019 32 $ 87.27 $ 1,860 Vested and Expected to Vest September 30, 2019 32 $ 87.27 $ 1,860 Exercisable September 30, 2019 32 $ 87.27 $ 1,860 At September 30, 2019 , there was no compensation cost yet to be recognized related to outstanding options. For options currently exercisable, the weighted average remaining contractual term (remaining period of exercisability) as of September 30, 2019 was 6.75 years . Restricted Stock Awards The Company issues both share awards and unit awards under the 2015 EIP, and previously issued these awards through the 2005 Restricted Stock Plan. The following table summarizes non-vested share awards as of September 30, 2019 , as well as activity for the three months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2019 6 $ 87.27 Granted — — Vested (6 ) 87.27 Forfeited — — Outstanding September 30, 2019 — $ — At September 30, 2019 , there was no compensation expense yet to be recognized related to non-vested restricted stock share awards. The following table summarizes non-vested restricted stock unit awards as of September 30, 2019 , as well as activity for the three months then ended: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2019 298 $ 107.00 Granted 3 130.61 Vested (31 ) 75.34 Forfeited (51 ) 74.59 Outstanding September 30, 2019 219 $ 119.42 $ 31,910 The 3 unit awards granted in fiscal 2020 were valued at the weighted-average fair value of the non-vested unit awards based on the fair market value of the Company’s equity shares on the grant date, less the present value of expected future dividends to be declared during the vesting period, consistent with the methodology for calculating compensation expense on such awards. At September 30, 2019 , there was $10,841 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 1.17 years . |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 2018 Net Income $ 89,370 $ 83,551 Common share information: Weighted average shares outstanding for basic earnings per share 76,972 77,188 Dilutive effect of stock options and restricted stock 95 349 Weighted average shares outstanding for diluted earnings per share 77,067 77,537 Basic earnings per share $ 1.16 $ 1.08 Diluted earnings per share $ 1.16 $ 1.08 Per share information is based on the weighted average number of common shares outstanding for the three months ended September 30, 2019 and 2018 . 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 or restricted stock shares excluded for the quarter ended September 30, 2019 and no anti-dilutive stock options or restricted stock shares excluded for the quarter ended September 30, 2018 |
Business Acquisitions (Text Blo
Business Acquisitions (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | |
Business Acquisition Disclosure [Text Block] | BUSINESS ACQUISITIONS Geezeo On July 1, 2019 , the Company acquired all of the equity interest of Geezeo for $37,776 paid in cash. The primary reason for the acquisition was to expand the Company's digital financial management solutions and was funded by cash generated from operations. Geezeo is a Boston-based provider of retail and business digital financial management solutions. Management has completed a preliminary purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below: Current assets $ 9,018 Long-term assets 397 Identifiable intangible assets 19,114 Non-current deferred income tax liability (2,593 ) Total other liabilities assumed (7,247 ) Total identifiable net assets 18,689 Goodwill 19,087 Net assets acquired $ 37,776 The amounts shown above may change as management finalizes its assessment of the fair value of acquired assets and liabilities and continues to evaluate the income tax implications of this business combination. The goodwill of $19,087 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 Geezeo, together with the value of Geezeo assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is not deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $10,522 , computer software of $5,791 , and other intangible assets of $2,801 . The amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years for each. Current assets were inclusive of cash acquired of $7,492 . The fair value of current assets acquired included accounts receivable of $1,373 , none of which were expected to be uncollectible. Costs incurred related to the acquisition of Geezeo in fiscal 2020 totaled $25 for professional services, travel, and other fees, and were expensed as incurred and reported within cost of revenue and selling, general, and administrative expense. The Company's condensed consolidated statements of income for the first quarter of fiscal 2020 included revenue of $2,392 and after-tax net income of $38 resulting from Geezeo's operations. The accompanying condensed consolidated statements of income for the three months ended September 30, 2019 and 2018 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided. BOLTS Technologies, Inc On October 5, 2018 , the Company acquired all of the equity interest of BOLTS Technologies, Inc. for $15,046 paid in cash. The acquisition was funded by cash generated from operations. BOLTS Technologies is the developer of boltsOPEN, a next-generation digital account opening solution. Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of October 5, 2018 are set forth below: Current assets $ 1,384 Identifiable intangible assets 2,274 Total other liabilities assumed (1,505 ) Total identifiable net assets 2,153 Goodwill 12,893 Net assets acquired $ 15,046 The amounts shown above include measurement period adjustments made during fiscal 2019 related to income taxes. The goodwill of $12,893 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 BOLTS, together with the value of BOLTS' assembled workforce. The goodwill from this acquisition has been allocated to our Complementary segment and is not deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $567 , computer software of $1,409 , and other intangible assets of $298 . The weighted average amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years , 10 years , and 10 years , respectively. Current assets were inclusive of cash acquired of $1,365 . The fair value of current assets acquired included accounts receivable of $14 , none of which were expected to be uncollectible. Costs incurred related to the acquisition of BOLTS in fiscal 2019 totaled $23 for legal, valuation, and other fees, and were expensed as incurred within selling, general, and administrative expense. The Company's condensed consolidated statements of income for the first quarter of fiscal 2020 included revenue of $44 and after-tax net loss of $175 resulting from BOLTS' operations. The accompanying condensed consolidated statements of income for the three months ended September 30, 2019 and 2018 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided. Agiletics, Inc. On October 1, 2018 , the Company acquired all of the equity interest of Agiletics, Inc. for $7,649 paid in cash. The acquisition was funded by cash generated from operations. Agiletics is a provider of escrow, investment, and liquidity management solutions for banks serving commercial customers. Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of October 1, 2018 are set forth below: Current assets $ 2,170 Identifiable intangible assets 3,090 Non-current deferred income tax liability (872 ) Total other liabilities assumed (738 ) Total identifiable net assets 3,650 Goodwill 3,999 Net assets acquired $ 7,649 The amounts shown above include measurement period adjustments made during fiscal 2019 related to income taxes. The goodwill of $3,999 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 Agiletics. The goodwill from this acquisition has been allocated to our Core segment and is not deductible for income tax purposes. Identifiable intangible assets from this acquisition consist of customer relationships of $2,198 , computer software of $701 , and other intangible assets of $191 . The weighted average amortization period for acquired customer relationships, computer software, and other intangible assets is 15 years , 10 years , and 10 years , respectively. Current assets were inclusive of cash acquired of $1,349 . The fair value of current assets acquired included accounts receivable of $302 , none of which were expected to be uncollectible. Costs incurred related to the acquisition of Agiletics in fiscal 2019 totaled $36 for legal, valuation, and other fees, and were expensed as incurred within selling, general, and administrative expense. The Company's condensed consolidated statements of income for the first quarter of fiscal 2020 included revenue of $549 and after-tax net income of $165 resulting from Agiletics' operations. The accompanying condensed consolidated statements of income for the three months ended September 30, 2019 and 2018 do not include any revenues and expenses related to this acquisition prior to the acquisition date. The impact of this acquisition was considered immaterial to both the current and prior periods of our condensed consolidated financial statements and pro forma financial information has not been provided. |
Reportable Segment Information
Reportable Segment Information (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reportable Segment Information Disclosure [Text Block] | REPORTABLE SEGMENT INFORMATION The Company is a provider of integrated computer systems that perform data processing (available for 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 2019 from the Complementary to the Core Segment to be consistent with the current year's allocation of revenue by segment. For the three months ended September 30, 2019 , the amount reclassified totaled $1,603 . Three Months Ended September 30, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 148,090 $ 17,308 $ 98,451 $ 14,959 $ 278,808 Processing 7,806 132,438 18,744 209 159,197 Total Revenue 155,896 149,746 117,195 15,168 438,005 Cost of Revenue 63,306 76,624 46,674 59,187 245,791 Research and Development 24,591 Selling, General, and Administrative 49,436 Total Expenses 319,818 SEGMENT INCOME $ 92,590 $ 73,122 $ 70,521 $ (44,019 ) OPERATING INCOME 118,187 INTEREST INCOME (EXPENSE) 352 INCOME BEFORE INCOME TAXES $ 118,539 Three Months Ended September 30, 2018 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 131,991 $ 12,770 $ 88,460 $ 13,347 $ 246,568 Processing 7,164 121,427 17,245 139 145,975 Total Revenue 139,155 134,197 105,705 13,486 392,543 Cost of Revenue 59,216 65,707 41,830 53,359 220,112 Research and Development 24,026 Selling, General, and Administrative 45,183 Total Expenses 289,321 SEGMENT INCOME $ 79,939 $ 68,490 $ 63,875 $ (39,873 ) OPERATING INCOME 103,222 INTEREST INCOME (EXPENSE) 144 INCOME BEFORE INCOME TAXES $ 103,366 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. |
Subsequent Events Subsequent Ev
Subsequent Events Subsequent Events (Text Block) | 3 Months Ended |
Sep. 30, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS None. |
Nature of Operations and Summ_2
Nature of Operations and Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
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. |
Property, Plant and Equipment | Property and equipment is recorded at cost and depreciated using the straight-line method over the estimated useful lives of the assets. |
Intangible Assets | Intangible assets consist of goodwill, customer relationships, computer software, and trade names acquired in business acquisitions in addition to internally developed computer software. The amounts are amortized, with the exception of those intangible assets with an indefinite life (such as goodwill), over an estimated economic benefit period, generally three to twenty years |
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 borrowings on its existing line-of-credit. The share repurchase program does not include specific price targets or timetables and may be suspended at any time. |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments Fair Value of Financial Instruments (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
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 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 |
Leases Leases (Policies)
Leases Leases (Policies) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Lessee, Leases [Policy Text Block] | The Company determines if an arrangement is a lease at inception. The lease term begins on the commencement date, which is the date the Company takes possession of the property, and may include options to extend or terminate the lease when it is reasonably certain that the option will be exercised. The lease term is used to determine lease classification as an operating or finance lease and is used to calculate straight-line expense for operating leases. The Company elected the package of practical expedients permitted under the transition guidance within ASU 2016-02 to not reassess prior conclusions related to contracts containing leases, lease classification and initial direct costs. Right-of-use (“ROU”) assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. As a practical expedient, lease agreements with lease and non-lease components are accounted for as a single lease component for all asset classes, which are comprised of real estate leases and equipment leases. ROU assets and lease liabilities are recognized at commencement date based upon the present value of lease payments over the lease term. ROU assets also include prepaid lease payments and exclude lease incentives received. The Company estimates contingent lease incentives when it is probable that the Company is entitled to the incentive at lease commencement. Since the Company’s leases do not typically provide an implicit rate, the Company uses its incremental borrowing rate based upon the information available at commencement date for both real estate and equipment leases. The determination of the incremental borrowing rate requires judgment. The Company determines the incremental borrowing rate using the Company’s current unsecured borrowing rate, adjusted for various factors such as collateralization and term to align with the terms of the lease. The Company elected the short-term lease recognition exemption for all leases that qualify. Therefore, leases with an initial term of 12 months or less are not recorded on the balance sheet; instead, lease payments are recognized as lease expense on a straight-line basis over the lease term. The Company leases certain office space, data centers and equipment. The Company’s leases have remaining terms of 1 to 11 years. Certain leases contain renewal options for varying periods, which are at the Company’s sole discretion. For leases where the Company is reasonably certain to exercise a renewal option, such option periods have been included in the determination of the Company’s ROU assets and lease liabilities. Certain leases require the Company to pay taxes, insurance, maintenance, and other operating expenses associated with the leased asset. Such amounts are not included in the measurement of the lease liability to the extent they are variable in nature. These variable lease costs are recognized as a variable lease expense when incurred. Certain leases include options to purchase the leased asset at the end of the lease term, which is assessed as a part of the Company’s lease classification determination. The depreciable life of the ROU asset and leasehold improvements are limited by the expected lease term unless the Company is reasonably certain of a transfer of title or purchase option. |
Revenue and Deferred Costs Re_2
Revenue and Deferred Costs Revenue and Deferred Costs (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue [Table Text Block] | Disaggregation of Revenue The tables below present the Company's revenue disaggregated by type of revenue. Refer to Note 11, 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, 2019 2018 Processing $ 159,197 $ 145,975 Outsourcing & Cloud 108,583 97,359 Product Delivery & Services 71,361 57,964 In-House Support 98,864 91,245 Services & Support 278,808 246,568 Total Revenue $ 438,005 $ 392,543 |
Contract with Customer, Asset and Liability [Table Text Block] | Contract Balances The following table provides information about contract assets and contract liabilities from contracts with customers. September 30, June 30, Receivables, net $ 234,362 $ 310,080 Contract Assets- Current 21,233 21,446 Contract Assets- Non-current 54,330 50,640 Contract Liabilities (Deferred Revenue)- Current 266,831 339,752 Contract Liabilities (Deferred Revenue)- Non-current $ 58,723 $ 54,554 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Recurring Fair Value Measurements[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 September 30, 2019 Financial Assets: Money market funds $ 87,308 $ — $ — $ 87,308 June 30, 2019 Financial Assets: Money market funds $ 81,945 $ — $ — $ 81,945 |
Non-Recurring Fair Value Measurements [Table Text Block] | Non-Recurring Fair Value Measurements September 30, 2019 Long-lived assets held for sale $ — $ 1,300 $ — $ 1,300 June 30, 2019 Long-lived assets held for sale (a) $ — $ 1,300 $ — $ 1,300 (a) In accordance with ASC Subtopic 360-10, long-lived assets held for sale with a carrying value of $4,575 were written down to their fair value of $1,300 , resulting in an impairment totaling $3,275 , which was included in earnings for the period ended June 30, 2017. These assets are expected to be disposed of by sale in the third quarter of fiscal 2020. |
Leases Leases (Tables)
Leases Leases (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Maturity of Lease Liabilities Under ASC 842 [Table Text Block] | Maturity of Lease Liabilities under ASC 842 Future minimum rental payments on leases with initial non-cancellable lease terms in excess of one year were due as follows at September 30, 2019 : Due dates Future Minimum Rental Payments 2020 (remaining period) $ 10,609 2021 13,847 2022 12,442 2023 10,785 2024 8,635 Thereafter 26,608 Total lease payments $ 82,926 Less: interest (8,696 ) Present value of lease liabilities $ 74,230 Operating lease payments include $8,976 related to options to extend lease terms that are reasonably certain of being exercised. At September 30, 2019 , there were no legally binding lease payments for leases signed but not yet commenced. |
Maturity of Lease Liabilities Under ASC 840 [Table Text Block] | Future minimum rental payments on operating leases with initial non-cancellable lease terms in excess of one year were due as follows at June 30, 2019 : Due dates Future Minimum Rental Payments 2020 $ 15,559 2021 13,539 2022 11,860 2023 10,169 2024 8,835 Thereafter 11,671 Total lease payments $ 71,633 Rent expense for all operating leases was $15,196 during the year ended June 30, 2019 . |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | A summary of option plan activity under these plans is as follows: Number of Shares Weighted Average Exercise Price Aggregate Intrinsic Value Outstanding July 1, 2019 32 $ 87.27 Granted — — Forfeited — — Exercised — — Outstanding September 30, 2019 32 $ 87.27 $ 1,860 Vested and Expected to Vest September 30, 2019 32 $ 87.27 $ 1,860 Exercisable September 30, 2019 32 $ 87.27 $ 1,860 |
Schedule of Nonvested Restricted Stock Activity [Table Text Block] | The following table summarizes non-vested share awards as of September 30, 2019 , as well as activity for the three months then ended: Share awards Shares Weighted Average Grant Date Fair Value Outstanding July 1, 2019 6 $ 87.27 Granted — — Vested (6 ) 87.27 Forfeited — — Outstanding September 30, 2019 — $ — |
Schedule of Nonvested Restricted Stock Units Activity [Table Text Block] | The following table summarizes non-vested restricted stock unit awards as of September 30, 2019 , as well as activity for the three months then ended: Unit awards Units Weighted Average Grant Date Fair Value Aggregate Intrinsic Value Outstanding July 1, 2019 298 $ 107.00 Granted 3 130.61 Vested (31 ) 75.34 Forfeited (51 ) 74.59 Outstanding September 30, 2019 219 $ 119.42 $ 31,910 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
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 September 30, 2019 2018 Net Income $ 89,370 $ 83,551 Common share information: Weighted average shares outstanding for basic earnings per share 76,972 77,188 Dilutive effect of stock options and restricted stock 95 349 Weighted average shares outstanding for diluted earnings per share 77,067 77,537 Basic earnings per share $ 1.16 $ 1.08 Diluted earnings per share $ 1.16 $ 1.08 |
Business Acquisitions (Tables)
Business Acquisitions (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Geezeo [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Management has completed a preliminary purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of July 1, 2019 are set forth below: Current assets $ 9,018 Long-term assets 397 Identifiable intangible assets 19,114 Non-current deferred income tax liability (2,593 ) Total other liabilities assumed (7,247 ) Total identifiable net assets 18,689 Goodwill 19,087 Net assets acquired $ 37,776 The amounts shown above may change as management finalizes its assessment of the fair value of acquired assets and liabilities and continues to evaluate the income tax implications of this business combination. |
BOLTS Technologies, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of October 5, 2018 are set forth below: Current assets $ 1,384 Identifiable intangible assets 2,274 Total other liabilities assumed (1,505 ) Total identifiable net assets 2,153 Goodwill 12,893 Net assets acquired $ 15,046 The amounts shown above include measurement period adjustments made during fiscal 2019 related to income taxes. |
Agiletics, Inc. [Member] | |
Business Acquisition [Line Items] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Management has completed a purchase price allocation and its assessment of the fair value of acquired assets and liabilities assumed. The recognized amounts of identifiable assets acquired and liabilities assumed, based on their fair values as of October 1, 2018 are set forth below: Current assets $ 2,170 Identifiable intangible assets 3,090 Non-current deferred income tax liability (872 ) Total other liabilities assumed (738 ) Total identifiable net assets 3,650 Goodwill 3,999 Net assets acquired $ 7,649 The amounts shown above include measurement period adjustments made during fiscal 2019 related to income taxes. |
Reportable Segment Informatio_2
Reportable Segment Information (Tables) | 3 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended September 30, 2019 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 148,090 $ 17,308 $ 98,451 $ 14,959 $ 278,808 Processing 7,806 132,438 18,744 209 159,197 Total Revenue 155,896 149,746 117,195 15,168 438,005 Cost of Revenue 63,306 76,624 46,674 59,187 245,791 Research and Development 24,591 Selling, General, and Administrative 49,436 Total Expenses 319,818 SEGMENT INCOME $ 92,590 $ 73,122 $ 70,521 $ (44,019 ) OPERATING INCOME 118,187 INTEREST INCOME (EXPENSE) 352 INCOME BEFORE INCOME TAXES $ 118,539 Three Months Ended September 30, 2018 Core Payments Complementary Corporate & Other Total REVENUE Services and Support $ 131,991 $ 12,770 $ 88,460 $ 13,347 $ 246,568 Processing 7,164 121,427 17,245 139 145,975 Total Revenue 139,155 134,197 105,705 13,486 392,543 Cost of Revenue 59,216 65,707 41,830 53,359 220,112 Research and Development 24,026 Selling, General, and Administrative 45,183 Total Expenses 289,321 SEGMENT INCOME $ 79,939 $ 68,490 $ 63,875 $ (39,873 ) OPERATING INCOME 103,222 INTEREST INCOME (EXPENSE) 144 INCOME BEFORE INCOME TAXES $ 103,366 |
Nature of Operations and Summ_3
Nature of Operations and Summary of Significant Accounting Policies Property and Equipment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||
Accumulated Depreciation, Property and Equipment | $ 384,896 | $ 388,481 |
Nature of Operations and Summ_4
Nature of Operations and Summary of Significant Accounting Policies Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Assets, Accumulated Amortization | $ 736,825 | $ 707,518 |
Minimum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Maximum [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-Lived Intangible Asset, Useful Life | 20 years |
Nature of Operations and Summ_5
Nature of Operations and Summary of Significant Accounting Policies Purchase of Investments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | |
Purchase of investments | $ 1,150 | $ 0 | |
Automated Bookkeeping, Inc. [Member] | Preferred Stock [Member] | |||
Cost Method Investments, Original Cost | 6,000 | $ 5,000 | |
Purchase of investments | 1,000 | ||
Renewable Energy Tax Credit Fund [Member] | |||
Purchase of investments | 150 | ||
Other Commitment | $ 14,850 |
Nature of Operations and Summ_6
Nature of Operations and Summary of Significant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Jun. 30, 2019 | |
Class of Stock Disclosures [Abstract] | ||
Treasury Stock, Shares | 26,608,000 | 26,508,000 |
Stock Repurchase Program, Remaining Number of Shares Authorized to be Repurchased | 3,383,000 | 3,483,000 |
Treasury Stock, Value | $ 1,124,269 | $ 1,110,124 |
Treasury Stock, Shares, Acquired | 100,000 |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements Recently Adopted Accounting Guidance (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jul. 01, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease Liability | $ 74,230 | |
Operating Lease, Right-of-Use Asset | $ 70,976 | |
Accounting Standards Update 2016-02 [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating Lease Liability | $ 77,393 | |
Operating Lease, Right-of-Use Asset | $ 74,084 |
Revenue and Deferred Costs Disa
Revenue and Deferred Costs Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 438,005 | $ 392,543 |
Processing [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 159,197 | 145,975 |
Outsourcing & Cloud [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 108,583 | 97,359 |
Product Delivery & Service [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 71,361 | 57,964 |
In-House Support [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 98,864 | 91,245 |
Services & Support [Member] | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 278,808 | $ 246,568 |
Revenue and Deferred Costs Cont
Revenue and Deferred Costs Contract Balances (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Revenue from Contract with Customer [Abstract] | ||
Receivables, net | $ 234,362 | $ 310,080 |
Contract Assets- Current | 21,233 | 21,446 |
Contract Asset- Non-current | 54,330 | 50,640 |
Contract Liabilities (Deferred Revenue)- Current | 266,831 | 339,752 |
Contract Liabilities (Deferred Revenue)- Non- current | $ 58,723 | $ 54,554 |
Revenue and Deferred Costs Re_3
Revenue and Deferred Costs Revenue Recognition Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | ||
Contract with Customer, Liability, Revenue Recognized | $ 94,054 | $ 88,121 |
Revenue, Remaining Performance Obligation, Amount | $ 3,691,321 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 28.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-10-01 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Revenue, Remaining Performance Obligation, Percentage | 19.00% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue and Deferred Costs Co_2
Revenue and Deferred Costs Contract Costs (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Revenue from Contract with Customer [Abstract] | |||
Capitalized Contract Cost, Net | $ 246,387 | $ 231,273 | |
Capitalized Contract Cost, Amortization | $ 31,393 | $ 26,821 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2017 | Sep. 30, 2019 | Jun. 30, 2019 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held for sale, carrying value prior to impairment | $ 4,575 | ||
Impairment of Long-Lived Assets to be Disposed of | $ 3,275 | ||
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held-for-sale | $ 1,300 | $ 1,300 | |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held-for-sale | 0 | 0 | |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held-for-sale | 1,300 | 1,300 | |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held-for-sale | 0 | 0 | |
Money Market Funds [Member] | Fair Value, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and Cash Equivalents, Fair Value Disclosure | 87,308 | 81,945 | |
Money Market Funds [Member] | Fair Value, Recurring [Member] | 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 | 87,308 | 81,945 | |
Money Market Funds [Member] | Fair Value, Recurring [Member] | 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 | |
Money Market Funds [Member] | Fair Value, Recurring [Member] | 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 |
Leases Leases (Details)
Leases Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 30, 2019 | Jun. 30, 2019 | |
Operating Leases, Rent Expense | $ 15,196 | |
Operating Lease, Right-of-Use Asset | $ 70,976 | |
Operating Lease Liability | 74,230 | |
Operating Lease, Liability, Current | 12,042 | |
Operating Lease, Liability, Noncurrent | 62,188 | |
Accumulated Amortization Operating Lease Right-of-use asset | 3,436 | |
Operating Lease, Cost | 4,007 | |
Variable Lease, Cost | 879 | |
Operating Lease, Payments | 3,927 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | $ 1,370 | |
Operating Lease, Weighted Average Remaining Lease Term | 84 months | |
Operating Lease, Weighted Average Discount Rate, Percent | 2.96% | |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 11 years |
Leases Lease Maturity (Details)
Leases Lease Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 |
Leases [Abstract] | ||
2020 (remaining period) | $ 10,609 | |
2021 | 13,847 | |
2022 | 12,442 | |
2023 | 10,785 | |
2024 | 8,635 | |
Thereafter | 26,608 | |
Total lease payments | 82,926 | |
Less: interest | (8,696) | |
Present value of lease liabilities | 74,230 | |
Operating Lease Liability Option To Extend Amounts | $ 8,976 | |
2020 | $ 15,559 | |
2021 | 13,539 | |
2022 | 11,860 | |
2023 | 10,169 | |
2024 | 8,835 | |
Thereafter | 11,671 | |
Total Lease Payments | $ 71,633 |
Debt Narrative (Details)
Debt Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | |||
Interest Paid, Including Capitalized Interest, Operating and Investing Activities | $ 97 | $ 65 | |
Unsecured Debt [Member] | |||
Debt Instrument [Line Items] | |||
Unsecured Loan, Unused Borrowing Capacity | $ 5,000 | ||
Unsecured Loan, Maturity Date | Apr. 30, 2021 | ||
Unsecured Loan, Amount Outstanding | $ 0 | $ 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 | $ 0 | ||
Fed Funds Effective Rate Overnight Index 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%) |
Income Taxes Narrative (Details
Income Taxes Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Effective Tax Rate | 24.60% | 19.20% |
Income Taxes Paid, Net | $ 1,090 | |
Income Taxes Paid | $ 388 | |
Proceeds from Income Tax Refunds | (679) | |
Unrecognized Tax Benefits | 11,596 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 10,815 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,771 | $ 1,413 |
Minimum [Member] | ||
Expiration of statutes of limitations impact on UTB balance | 3,000 | |
Maximum [Member] | ||
Expiration of statutes of limitations impact on UTB balance | $ 4,000 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expense for stock-based compensation | $ 2,853 | $ 1,771 |
Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense not yet recognized, stock options | $ 0 | |
Weighted average remaining contractual term, stock options | 6 years 9 months | |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense yet to be recognized | $ 0 | |
Granted, number of shares | 0 | |
Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Compensation expense yet to be recognized | $ 10,841 | |
Compensation expense yet to be recognized, period for recognition | 1 year 2 months 1 day | |
Granted, number of shares | 3 | |
2015 EIP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Shares Authorized for Issuance | 3,000 | |
2015 EIP [Member] | Share-based Payment Arrangement, Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Requisite Service Period | 3 years | |
Termination Period After Termination of Employment | 90 days | |
Termination Period After Death | 1 year | |
Termination After Grant Date | 10 years | |
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 | 3 |
Stock Based Compensation Stock
Stock Based Compensation Stock Options (Details) - Share-based Payment Arrangement, Option [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding, period start, number of shares | shares | 32 |
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 | 32 |
Outstanding, period start, weighted average exercise price | $ / shares | $ 87.27 |
Granted, weighted average exercise price | $ / shares | 0 |
Forfeited, weighted average exercise price | $ / shares | 0 |
Exercised, weighted average exercise price | $ / shares | 0 |
Outstanding, period end, weighted average exercise price | $ / shares | $ 87.27 |
Outstanding, period end, intrinsic value | $ | $ 1,860 |
Vested and expected to vest, period end, number of shares | shares | 32 |
Vested and expected to vest, period end, weighted average exercise price | $ / shares | $ 87.27 |
Vested and expected to vest, period end, intrinsic value | $ | $ 1,860 |
Exercisable, period end, number of shares | shares | 32 |
Exercisable, period end, weighted average exercise price | $ / shares | $ 87.27 |
Exercisable, period end, intrinsic value | $ | $ 1,860 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Share Awards (Details) - Restricted Stock [Member] shares in Thousands | 3 Months Ended |
Sep. 30, 2019$ / sharesshares | |
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 | 6 |
Granted, number of shares | shares | 0 |
Vested, number of shares | shares | (6) |
Forfeited, number of shares | shares | 0 |
Outstanding, period end, number of shares | shares | 0 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 87.27 |
Granted, weighted average grant date fair value | $ / shares | 0 |
Vested, weighted average grant date fair value | $ / shares | 87.27 |
Forfeited, weighted average grant date fair value | $ / shares | 0 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 0 |
Stock Based Compensation Rest_2
Stock Based Compensation Restricted Stock Unit Awards (Details) - Restricted Stock Units (RSUs) [Member] $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($)$ / sharesshares | |
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 | 298 |
Granted, number of shares | shares | 3 |
Vested, number of shares | shares | (31) |
Forfeited, number of shares | shares | (51) |
Outstanding, period end, number of shares | shares | 219 |
Outstanding, period start, weighted average grant date fair value | $ / shares | $ 107 |
Granted, weighted average grant date fair value | $ / shares | 130.61 |
Vested, weighted average grant date fair value | $ / shares | 75.34 |
Forfeited, weighted average grant date fair value | $ / shares | 74.59 |
Outstanding, period end, weighted average grant date fair value | $ / shares | $ 119.42 |
Restricted Stock Units, Aggregate Intrinsic Value, Outstanding | $ | $ 31,910 |
Earnings Per Share Earnings P_3
Earnings Per Share Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Earnings Per Share, Basic and Diluted [Abstract] | ||
Net Income | $ 89,370 | $ 83,551 |
Common share information: | ||
Weighted average shares outstanding for basic earnings per share | 76,972 | 77,188 |
Dilutive effect of stock options and restricted stock | 95 | 349 |
Weighted average shares outstanding for diluted earnings per share | 77,067 | 77,537 |
Basic earnings per share | $ 1.16 | $ 1.08 |
Diluted earnings per share | $ 1.16 | $ 1.08 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Business Acquisitions (Details)
Business Acquisitions (Details) - USD ($) $ in Thousands | Jul. 01, 2019 | Oct. 05, 2018 | Oct. 01, 2018 | Sep. 30, 2019 | Jun. 30, 2019 |
Business Acquisition [Line Items] | |||||
Goodwill | $ 686,030 | $ 666,944 | |||
Geezeo [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Jul. 1, 2019 | ||||
Payments to Acquire Businesses, Gross | $ 37,776 | ||||
Current assets | 9,018 | ||||
Long-term assets | 397 | ||||
Identifiable intangible assets | 19,114 | ||||
Non-current deferred income tax liability | (2,593) | ||||
Total other liabilities assumed | (7,247) | ||||
Total identifiable net assets | 18,689 | ||||
Net assets acquired | 37,776 | ||||
Acquisition goodwill expected to be tax deductible | 0 | ||||
Cash Acquired from Acquisition | 7,492 | ||||
Acquired Receivable, Fair Value | 1,373 | ||||
Acquired Receivables, Estimated Uncollectible | 0 | ||||
Business Acquisition, Transaction Costs | 25 | ||||
Revenue of Acquiree since Acquisition Date, Actual | 2,392 | ||||
Earnings or Loss of Acquiree since Acquisition Date, Actual | 38 | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 1,373 | ||||
BOLTS Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 5, 2018 | ||||
Payments to Acquire Businesses, Gross | $ 15,046 | ||||
Current assets | 1,384 | ||||
Identifiable intangible assets | 2,274 | ||||
Total other liabilities assumed | (1,505) | ||||
Total identifiable net assets | 2,153 | ||||
Net assets acquired | 15,046 | ||||
Acquisition goodwill expected to be tax deductible | 0 | ||||
Cash Acquired from Acquisition | 1,365 | ||||
Acquired Receivable, Fair Value | 14 | ||||
Acquired Receivables, Estimated Uncollectible | 0 | ||||
Business Acquisition, Transaction Costs | 23 | ||||
Revenue of Acquiree since Acquisition Date, Actual | 44 | ||||
Earnings or Loss of Acquiree since Acquisition Date, Actual | (175) | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 14 | ||||
Agiletics, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Effective Date of Acquisition | Oct. 1, 2018 | ||||
Payments to Acquire Businesses, Gross | $ 7,649 | ||||
Current assets | 2,170 | ||||
Identifiable intangible assets | 3,090 | ||||
Non-current deferred income tax liability | (872) | ||||
Total other liabilities assumed | (738) | ||||
Total identifiable net assets | 3,650 | ||||
Net assets acquired | 7,649 | ||||
Acquisition goodwill expected to be tax deductible | 0 | ||||
Cash Acquired from Acquisition | 1,349 | ||||
Acquired Receivable, Fair Value | 302 | ||||
Acquired Receivables, Estimated Uncollectible | 0 | ||||
Business Acquisition, Transaction Costs | 36 | ||||
Revenue of Acquiree since Acquisition Date, Actual | 549 | ||||
Earnings or Loss of Acquiree since Acquisition Date, Actual | $ 165 | ||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 302 | ||||
Customer Relationships [Member] | Geezeo [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 10,522 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Customer Relationships [Member] | BOLTS Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 567 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Customer Relationships [Member] | Agiletics, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 2,198 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Computer Software, Intangible Asset [Member] | Geezeo [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 5,791 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Computer Software, Intangible Asset [Member] | BOLTS Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 1,409 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Computer Software, Intangible Asset [Member] | Agiletics, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 701 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Other Intangible Assets [Member] | Geezeo [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 2,801 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 15 years | ||||
Other Intangible Assets [Member] | BOLTS Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 298 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Other Intangible Assets [Member] | Agiletics, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Identifiable Intangible Assets Acquired | $ 191 | ||||
Identifiable Intangible Assets, Weighted Average Useful Life | 10 years | ||||
Core [Member] | Agiletics, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 3,999 | ||||
Complementary [Member] | Geezeo [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 19,087 | ||||
Complementary [Member] | BOLTS Technologies, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Goodwill | $ 12,893 |
Reportable Segment Informatio_3
Reportable Segment Information Narrative (Details) $ in Thousands | 3 Months Ended |
Sep. 30, 2019USD ($)segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | segment | 4 |
Reclassification of Revenue Between Reportable Segments | $ | $ 1,603 |
Reportable Segment Informatio_4
Reportable Segment Information Reconciliation of Operating Profit by Segment to Consolidated (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | $ 438,005 | $ 392,543 |
Cost of Revenue | 245,791 | 220,112 |
Research and Development | 24,591 | 24,026 |
Selling, General and Administrative | 49,436 | 45,183 |
Total Expenses | 319,818 | 289,321 |
OPERATING INCOME | 118,187 | 103,222 |
INTEREST INCOME (EXPENSE) | 352 | 144 |
INCOME BEFORE INCOME TAXES | 118,539 | 103,366 |
Core [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 155,896 | 139,155 |
Cost of Revenue | 63,306 | 59,216 |
SEGMENT INCOME | 92,590 | 79,939 |
Payments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 149,746 | 134,197 |
Cost of Revenue | 76,624 | 65,707 |
SEGMENT INCOME | 73,122 | 68,490 |
Complementary [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 117,195 | 105,705 |
Cost of Revenue | 46,674 | 41,830 |
SEGMENT INCOME | 70,521 | 63,875 |
Corporate and Other [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 15,168 | 13,486 |
Cost of Revenue | 59,187 | 53,359 |
SEGMENT INCOME | (44,019) | (39,873) |
Services & Support [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 278,808 | 246,568 |
Services & Support [Member] | Core [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 148,090 | 131,991 |
Services & Support [Member] | Payments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 17,308 | 12,770 |
Services & Support [Member] | Complementary [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 98,451 | 88,460 |
Services & Support [Member] | Corporate and Other [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 14,959 | 13,347 |
Processing [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 159,197 | 145,975 |
Processing [Member] | Core [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 7,806 | 7,164 |
Processing [Member] | Payments [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 132,438 | 121,427 |
Processing [Member] | Complementary [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | 18,744 | 17,245 |
Processing [Member] | Corporate and Other [Member] | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ||
Revenue | $ 209 | $ 139 |